Pre-Pack Administrationpre pack administration
Pre pack administration and pre pack liquidation essentially achieve the same results. A new company is formed and some or all of the assets of the old company are transferred to it. The mechanism that is used to achieve this result is usually administration or liquidation.
An administration would usually be used in preference of a liquidation if one or more of the following factors are relevant to the particular case.
The Company is under immediate threat from a winding up petition.
Notice has been received that bailiffs are about to visit and remove assets.
You fear that the Landlord is about to distrain on Company assets.
Less than 75% of shareholders will consent to place the Company in Liquidation (this is not necessarily needed in an Administration).
The Debenture holder has appointed Administrators
Once we have been instructed we will assess the situation of a Company and decide upon the best course of action. Each case is different and it is vital that our advisers are able to adapt to any given situation therefore it is not possible to state the exact stages of the process that would be applicable to you. However, the usual stages we would follow when arranging a pre pack administration sale.