Pre Pack Administration for Companies

Pre-packaged administration is a widely used service within the Insolvency arena. The arrangement is achieved through pre arranged appointment with one of the experienced insolvency practitioners that we recommend.

The process allows a phoenix company to purchase the assets back pre-appointment in preference to other creditors (with the exception of debenture holders). For clients who do not have access to immediate capital we are often able to arrange for funding in order for the company's assets to be brought back!

We provide an independent national advisory service to the Directors of Limited Companies. This service is focused on SME (annual turnover £ 50k - £ 25 million) company recovery. Our pre-insolvency advice ensures compliance with constantly changing Society of Insolvency Practitioners (SIP) conditions and minimises your exposure to risk.

We maintain confidentiality as required to ensure that a plan can be negotiated and considered without impacting business confidence. We attend meetings or talk anytime Mon-Sun: 9am-9pm including holidays.

Benefits of a phoenix company

A phoenix company is when the legal assets of a failed company are moved to a new legal entity i.e. a new limited company. Using our expertise it may be possible for the directors to remain the same and for the new business to have an identical or similar trading name to the previous failed business.

The purpose of a phoenix is to allow for the recovery of a company which has a viable and often very profitable core but is currently powerless to repay its outstanding debts. It is a pragmatic arrangement that protects the interests of employees and private enterprise.

• Preservation of employment for the company's Directors & other employees (in 92% of cases, a pre-pack will result in all of the old company's jobs being preserved);
• Achieves a write-off of debt arrears, (excluding debts which are subject to a personal guarantees or debentures);
• Discharges the company from contracts or leases which are no longer required;
• Evades interference to customers (companies often continue to trade in an identical fashion to the previous company) & other stakeholders.

Advantages of a pre-pack

For many companies pre-pack administration is able to provide a planned, quick & secure transition to a new phoenix company.

• The sale of the business assets & undertaking is agreed in advance;
• The personal credit history of the old company's directors is fully protected;
• The company is able to trade under an identical or similar name as the original company name;
• Minimum disruption is incurred (using our expertise and confidentiality it is often that a large proportion if not all of staff and customers are unaware of the change);
• There is not a requirement for local advertising or filing in the local courts (so as long as you don't tell anyone it is possible for our service to remain absolutely confidential from everyone).

We are here to help and 'hold your hand' through the entire process. With our help you can be sure that the entire process runs smoothly and that you are involved in every step and decision which is taken.

Read "Pre Pack Process" Next »

Read More on Pre Pack Administration

Links to other pages within expresstaxsolutions.com which are related to Pre Pack Administration:

• Pre Pack Process
• Pre Pack Code of Practice
• Pre Pack Funding
• Pre Pack Administration FAQ's
• Pre Pack Administration Case Studies