Government makes u-turn on pre-packs

by Rachael Singh

More from this author

26 Jan 2012

  • Comments
Edward Davey MP

THE GOVERNMENT has about-turned on proposed radical changes to pre-pack administrations, claiming it does not see the benefit of making legislative changes to them.

In a ministerial statement today insolvency minister Ed Davey said the "Government is not convinced" any changes to pre-packs would outweigh the benefits it currently provides.

Previously Davey caused uproar in the insolvency community when he announced several possible changes to the process including, delaying its rapid turnaround by three days.

However, the minister said today the government will not be seeking to introduce new legislative controls on pre-packs at this time.

A pre-pack entails the whole or part of a sale arranged prior to a business entering an insolvency process and sold immediately on appointment of administrators.

It was suggested by government that any pre-pack sale to connected party, such as former directors, owners or managers, would need three days consultation before a sale could go ahead.

This three day delay in the angered many practitioners who claimed it neutered the process, while the British Property Federation argued three days was not enough time for creditors to consider their options.

The regulator of the profession, the Insolvency Service, will review existing pre-pack legislation to see how more confidence and transparency could be injected into the process.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Appointments to University Committees

University of Glasgow 120x60University of Glasgow - Glasgow - unremunerated positions

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.