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Pre Pack Funding

Companies undergoing financial difficulties are frequently unable to obtain further funding from their existing bank/financiers, and in the current economic climate refinance may not be commercially viable.

Almost all of the company's we work with have had previous debts and are often unable to service cash flow from operating finance lines or estimated forthcoming trading profits, However, in the case of Pre-Pack the management and Express Tax Solutions often believe that there is an underlying profitable business or a business that can become profitable through restructuring.

With expert and independent advice, it is often possible to save a business that is experiencing financial problems, preserving jobs, the business and maximising returns to creditors.

This is achieved through a pre packaged sale of the business (more commonly referred to as a pre-pack), whereby a sale of the company and assets of the floundering business is settled with a phoenix company, often set up and managed by the existing directors and/or management team, before the appointment of an Administrator, Administrative Receiver or Liquidator.

Funding for the phoenix company is supplied in advance; to enable the sale to be completed without delay after the formal insolvency appointment has been made, ensuring that the business is acquired with the minimum of disruption to existing customers and ongoing trade.

As the sale is being completed by the Administrator, Administrative Receiver or Liquidator, this guarantees that as a director of the company there can be no recrimination on you concerning the price achieved for the business and assets of the company, it can also be verified through an independent valuation that the price achieved is a fair market price.

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Read More on Pre Pack Administration

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

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