The key to a successful Pre-Pack Administration is a better return to creditors and lenders. To begin with, you will have to discuss your company’s affairs with an insolvency specialist, to make sure that it is the right route to take.
When requested to go ahead, a valuation of the company’s assets by a specialist insolvency valuer is arranged. A price is then agreed and how the business is going to be sold.
Existing directors usually have knowledge of their business and will want to maintain their existing customers, so will be prepared to pay a little more for getting a “working model” without the debts.
This all usually takes between 7 to 28 days but the existing business can continue in the meantime. There is no set time-scale for a Pre-Pack Administration to complete. The urgency of the situation will dictate the time it takes.
As independent insolvency specialists, we can often help see where the problems have arisen in the past and give guidance to ensure that the same issues and errors do not arise, or are not made in the future
With a sale price agreed that will give the best return to creditors, an application is made to court to appoint an Insolvency Practitioner as Administrator.
Once the Administrator has been appointed, the sale is completed (usually the same day) and the business is moved to a new company.
If you think that finance for the new company may be difficult to obtain, Company Insolvency Advice can help you by discussing various situations and introducing you to an excellent range of finance providers. Call us now to discuss finance options on 0800 999 0666.