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13 Oct 2009
The pre-packaged administration process can be "unacceptable" and even " morally questionable", according to a report by PricewaterhouseCoopers.
The firm's Turnaround Director Panel, which consists of over 100 turnaround professionals, has found members believe that work still needs to be done to ensure pre-packs have safeguards in place to increase confidence in this system.
The panel was split on the perception of whether or not a successful turnaround of a company includes the survival of a business with the use of a pre-pack.
There was some hope for distressed businesses, with 67% of the panel believing that most current turnarounds will be successful and 85% feeling their key trading indicators have levelled out or are starting to improve.
“Turnaround directors have been at the coal-face of UK Businesses attempts to survive through the recession and to that end it is really encouraging to see that they are beginning to see some positive signs in their work with distressed companies," said Richard Boys-Stones, partner, business recovery services at PwC.
According to 56% of the panel, the biggest hindrance to a company's success is its readiness to accept that it needs help, while another 86% are finding it hard to raise funding.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
"Pre-packs"
They may be an effective way of helping companies in distress, but if the proprietors survive at the ultimate expense of creditors, who really benefits in the long-term? Bit like being the last links in a 'ponzi fraud' scheme in some ways, but then why should morality be a consideration?
Business ethics is not an abstract concept. We should live honestly with full regard for our neighbours or suffer personal loss when those who have given their trust are under just that threat.
Posted by: Mike O'Neill, 14 Oct 2009 | 00:00