David Archer discusses the rise of ‘pre-pack’ administration sales, the application of TUPE to insolvent companies, a rare misfeasance case, the application of the pari passu rule, and the latest guidelines on administrators’ breach of duty
In addition to an increasing number of administrations and liquidations the economic downturn will inevitably spawn more insolvency and recovery related cases and some interesting decisions have already been handed down.
‘Pre-packs’
‘Pre-packs’ are the current buzz word in insolvency. Although they are not a new concept, 2009 has already seen a Statement of Insolvency Practice on pre-packaged administration sales (SIP 16) released, and discussion by the House of Commons BERR committee.
A pre-packaged sale, otherwise known as a ‘pre-pack’, is an arrangement for the sale of an insolvent company’s business and assets which is lined up before the company goes into a formal insolvency process (usual...
