Voluntary pre-pack reforms ‘unworkable’, say AA readers
Poll of Accountancy Age readers finds opposition to Teresa Graham's pre-pack reforms
RECOMMENDATIONS from a government-led review into controversial pre-pack recommendations will be unworkable in practice, according to Accountancy Age readers.
In June, Teresa Graham, the senior accountant who led the government-commissioned review into the use of heavily-criticised pre-pack administrations, published a series of measures aimed at cleaning up the “scuzzy nature” of pre-pack deals.
Pre-packs could be banned altogether under government backstop legislation if the voluntary measures, which include the creation of an independent pool of experts to scrutinise the sale of failed businesses back to the existing management team, are not adopted.
Nevertheless, Accountancy Age readers are unsure about how the requirements will be applied. In a poll of 74 readers, 55% said that, although in the right spirit, certain measures will be unworkable in practice.
Around a third said the measures are sensible and add transparency to the processes around pre-pack administrations, while 10% said the measures are in the right vein but more detail is needed about how they will be applied.