Creditors could be given notice ahead of pre-pack deals – The Telegraph

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 […]

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.”

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