It can be disheartening when you are involved in a company and it is on the verge of insolvency even though the underlying business has potential. In certain circumstances, it is possible to save businesses like these provided that the law and procedure are followed carefully. The process is called a pre-pack administration. A pre-pack is a sale of a company’s business and assets, which has been arranged in advance of a company entering administration and often the sale will be to one or more of the existing directors.
Pre-packs can revive a business, but it is vital that they are considered very carefully, particularly as the law is changing on this topic. If you find yourself in a situation where you need to consider what is legally best for your company, come and speak to us. We can assist you with exploring your options, put you in touch with the right people and prepare the legal documentation.
Click here if you would like to know about opportunities with insolvent businesses.