Pre Packs

We were alerted to the controversies surrounding pre-packs by lively debate initially conducted in the professional journals last year. Criticisms were made that IPs were seeking this route for companies, which should have been offered for sale on the open market or, in some cases, when liquidation would have been more appropriate.

Critics also highlighted the conflicts of interest that could arise for IPs who had been involved in advising the company, its directors or other connected parties and subsequently became the Administrator. We discussed these issues with the IS, the JIC and with the RPBs. Several members of the IPC also attended a seminar on pre-packs organised by Ernst & Young LLP. We have made some recommendations on pre-packs earlier in this report.

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