Pre -pack: For those times when insolvency is unavoidable, we can help guide you through the daunting task of approaching pre-pack administration.
When a company is in extreme financial trouble and legal advisors or insolvency practitioners are called in, there will follow a close examination of the company, its assets and liabilities and various solutions may be advised. Pre-pack administration is one of those solutions.
Turnaround Solutions is not an insolvency practitioner and will always aim to stabilise the business and move it forward. However, if a ‘pre-pack’ is recommended, our experienced team is proficient in supporting your company through the whole process.
After analysing the current business situation, we will discreetly identify if there are any parties that may be interested in buying the company. Very often management will know the likely buyers and may even have been through a marketing process already. Discretion is crucial because of the adverse effect that the suggestions of formal insolvency has on the confidence of the company’s staff, suppliers and customers and hence, on its value.
If a potential buyer can be found, a formal valuation of the business will identify what the company is worth. Once a figure is agreed, we can help you complete the sale.
The business, usually including the workforce, is then transferred to a new company and the proceeds from the sale are used to pay back creditors in the normal order of priority – secured creditors first, followed by preferential creditors and, finally, any unsecured creditors.
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