It has been a high octane year for anyone in business. Financial turmoil, tight credit, and the contraction of markets have contributed to an unprecedented rise in insolvencies. Insolvency is always an emotive topic, but few aspects of the downturn have polarized opinion as much as "pre-pack" administrations. Whilst there are clear benefits to pre-packs, such as maintaining jobs and re-structuring the ailing company's finances in a condensed timescale, there is also a darker side which is rapidly coming to light due to loopholes in their regulation. A pre-pack is a process that enables an insolvent business to sell off its assets before entering formal insolvency.
"Pre-pack" administrations - salvation or sufferance? Jo Aaron Credit Management; Sep 2009; Docstoc pg. 13 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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