Expert pre-packaged administration services that protect viable businesses, preserve jobs, and deliver optimal outcomes for stakeholders. Navigate complex insolvency with confidence and professional guidance.
Preserve operations & jobs
Safeguard employee futures
Fully regulated process
Maximize recovery value
A pre-packaged administration (pre-pack) is a formal insolvency procedure where the sale of a company's business or assets is arranged before an administrator is appointed, with the sale completing immediately or shortly after appointment.
Understanding how pre-packaged administrations work
In a pre-pack administration, negotiations with potential buyers take place confidentially before the formal appointment of administrators. Once appointed, the administrators immediately complete the pre-arranged sale, allowing the business to continue trading without interruption.
This process is often referred to as a "phoenix company" transaction when the existing directors purchase the business, enabling them to continue operating under a new legal entity while leaving the old company's debts in administration.
When immediate action needed to prevent business collapse or asset deterioration
When the underlying business is sound but burdened with unsustainable debt
When protecting employment is a key objective alongside creditor returns
When maintaining customer and supplier relationships is essential
When a going concern sale will achieve better returns than liquidation
Pre-pack administrations must comply with Statement of Insolvency Practice 16 (SIP 16) and be conducted by licensed insolvency practitioners. Connected party sales require additional scrutiny and disclosure.
Get expert advice on whether a pre-packaged administration could save your company
Speak to a Pre-Pack SpecialistPre-packaged administrations offer significant advantages over traditional liquidation when executed properly
Protects employee livelihoods by maintaining business continuity. Jobs transfer to the new entity under TUPE regulations, ensuring minimal disruption to staff.
85% average job retention rate
Enables the business to continue trading without interruption. Customers and suppliers experience minimal disruption, preserving valuable commercial relationships.
Zero trading interruption
Going concern sales typically generate significantly higher returns than asset break-up. Creditors often receive more through pre-packs than traditional liquidation.
40-60% higher recovery rates
Pre-arranged sales complete immediately upon administrator appointment. Avoids lengthy marketing periods and protects business value from deterioration.
Same-day completion possible
Prevents value erosion from fire sales or forced liquidation. Goodwill, intellectual property, and customer relationships maintain their worth.
Maximum asset value preserved
Suppliers can continue relationships with solvent new entity. Customers receive uninterrupted service. Community retains employment and economic activity.
Win-win for all parties
| Factor | Pre-Pack Administration | Traditional Liquidation |
|---|---|---|
| Business Continuity | Continues trading | Business ceases |
| Job Preservation | 85%+ jobs saved | All jobs lost |
| Creditor Returns | 40-60% higher | Fire sale prices |
| Timeline | Immediate completion | 3-12 months |
| Customer Impact | Minimal disruption | Relationships lost |
A step-by-step guide to how pre-packaged administrations work from initial assessment to completion
We conduct a comprehensive review of your company's financial position, viability, and restructuring options. This includes analyzing cash flow, asset values, creditor positions, and potential for business rescue.
Timeline
1-3 days
Rapid assessment to determine if pre-pack is the right solution and identify potential purchasers.
Potential purchasers (often the existing directors or management team) are identified and negotiations conducted under strict confidentiality. Sale terms, asset valuation, and employment transfers are agreed.
Timeline
1-2 weeks
Confidential discussions to structure the deal and maximize value while preserving business operations.
Licensed insolvency practitioners are formally appointed as administrators by the company directors or by court order. The company enters administration, providing immediate protection from creditor action.
Timeline
Same day
Formal appointment provides immediate legal protection and enables the pre-arranged sale to complete.
The pre-arranged sale completes immediately or within hours of administrator appointment. Business assets, contracts, and employees transfer to the purchasing entity seamlessly without trading interruption.
Timeline
Same day
Swift completion ensures zero trading interruption and maximum value preservation.
Administrators handle the old company's affairs, distribute proceeds to creditors according to statutory priority, prepare detailed reports for creditors and regulatory authorities, and provide post-sale support.
Timeline
8-12 weeks
Proper administration of the old company and full compliance with insolvency regulations.
Our licensed insolvency practitioners will guide you through every step of the process with expertise and discretion
Free Confidential ConsultationUnderstanding when directors can purchase their own business and the enhanced regulatory requirements
Legal rebirth of your business
A "phoenix company" refers to a business that rises from the ashes of an insolvent predecessor. In pre-pack administration, this typically involves directors purchasing their own company's assets and continuing operations under a new legal entity.
Phoenix transactions are perfectly legal when conducted properly. However, they face enhanced scrutiny to ensure they're not being used to unfairly advantage directors at the expense of creditors.
Statement of Insolvency Practice 16 sets out best practice for pre-packaged sales, with enhanced requirements for connected party transactions:
Evidence that the business was marketed to independent third parties, or compelling reasons why this wasn't done
Assets valued by independent expert to ensure fair market price paid by connected party
Detailed disclosure to creditors explaining rationale, alternatives considered, and why pre-pack was optimal
Opinion from independent evaluator confirming reasonableness of sale to connected party
Not all phoenix transactions are legitimate. Illegal phoenixing involves deliberate misuse of the corporate structure to avoid debts:
Transferring assets at undervalue before insolvency
Using similar company names without court permission (s216 IA86)
Deliberately trading while insolvent to creditors' detriment
We ensure full compliance with all regulations to protect directors from personal liability
Common questions about pre-pack administration answered by our licensed insolvency practitioners
Our licensed insolvency practitioners are here to provide clear, confidential answers tailored to your situation
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