Pre packs are used when an off-market sale is lined up prior to the start of the Administration process and then the Administrator is appointed to conduct the sale.

Any sale involving Pre Packs must be approved by a professional valuation agent who should take into account all relevant factors in arriving at that valuation. This valuation is a cost of the Administration process.

Where the Pre Packs have been questioned is where the sale of the assets is to a connected party rather that a third party. However it is worth noting that such a sale if conducted following the correct procedure does not fall foul of legislation.

Most sales of assets by an Administrator will involve the appointment of a solicitor to prepare the sale paperwork and this again is a cost of the Administration.

No related posts.

Back to Homepage