Pre packed sale of an insolvent company’s assets present many substantial benefits that are not to be ignored if done diligently. Also, pre pack sale of the insolvent company’s assets need not attract an expensive sale price for the purchaser. With advanced planning and timely action the assets can be packaged and the deal executed for a considerably less purchase price than the convention.
If you are considering a sale and pre pack administration you should definitely consult with us first for expert advice before you reach any agreement, because we will advise exclusively in your best interest and ensure you do not pay more than is necessary for the acquisition of your company’s assets. And you can be sure the pre pack administrator you are having consultations with is obliged to obtain the best possible price for the company’s assets and act at all times in the interest of the company’s creditors and not its directors. And this is why failing to consult with us would mean you paying considerably more for the company’s assets than is necessary.
Invariably once the pre pack administration is in place and the pre pack sale has happened the administrator will be in funds from the pre pack sale proceeds. After the deduction of their typically substantial fee there will be very little funds, if any, remaining for your unsecured creditors, which is generally the rule rather than the exception.
Following on from this pre pack insolvency procedure the administrator is obliged by law to file a report to the Secretary of State for Business Innovation and Skills (BIS) on your conduct as company director and disclose any misconduct on your part. The reason for your company’s failure must also be reported by the administrator.
If gross misconduct is later uncovered it may lead to serious action being taken against you personally at a future date by either the administrator, the Secretary of State, HM Revenue and Customs or another authority or third party. Such action would usually be for your disqualification as a company director and or your financial restitution to the creditors.
Our specialist consultancy service will advise and help you prepare for pre pack administration and a pre pack sale. This will significantly improve your position personally while maximising your interest and extending you as much protection necessary. We will seek to limit your exposure to any adverse consequence that may later arise. Our expertise will help you through issues that would present you with difficulties and give rise for future action against you personally. We will also recommend one of our commercially minded insolvency practitioners to manage the pre pack administration process.
Contact us now before committing your company and yourself. We offer free, friendly and neutral advice.