Creditors could be given notice ahead of pre-pack deals.
Opponents of so called pre-pack administrations have been boosted by the launch of an independent review which could see creditors finally given a grace period to challenge the controversial deals.

The Insolvency Service, the industry regulator, admitted that the review could revive a plan to give connected parties three days notice ahead of a pre-pack.

Carole Hughes, managing director of credit management business Daniel Silverman, welcomed the review. “Pre-packs [are] often grossly unfair to creditors and stronger controls are needed. I have witnessed first hand the devastating effect it causes to our clients’ businesses, some of whom have ceased trading as a result.”

Click here to read the full story