Law firm partner joins pre-pack pool stakeholder group
DWF partner and head of the financial services appointed to pre-pack pool set up following government-commissioned review
ANDREW GREGORY, partner and head of the financial services sector group at law firm DWF, has been appointed as a member of the independent pre-pack pool stakeholder group, set up following a government-commissioned review into the use of the heavily-criticised administration process.
Last year, Teresa Graham, the senior accountant who led the review into the use pre-pack administrations – where the sale of the business is marketed prior to the company entering administration and subsequently sold on appointment of administrators – published a series of recommendations aimed at making the process more transparent, fair and give creditors a better deal.
Graham’s recommendations included the creation of a ‘pre-pack pool’ where deals will be scrutinised prior to a sale taking place when a connected party is involved, such as a director of the failed business.
Gregory’s appointment to the pool may allay insolvency practitioners’ concerns that the pool would struggle to attract the right standard of people. He has over 25 years’ experience in turnaround, restructuring and the formal insolvency of businesses.
“Pre-packs ensure that a viable business can continue, and help preserve jobs. But for some time now there have been concerns that the pre-pack administration process lacks clarity and transparency. The formation of an independent group that can review in advance these transactions in confidence is very welcome and clearly in the public interest,” Gregory said.