Although there are a number of tools to track unemployment statistics here at home and abroad in the UK, there is no doubt that the current economic climate has caused thousands of workers to lose their jobs. Companies are fighting insolvency at every step of the way, and most are hard-pressed to find a way to continue staffing at their current rates.
One of the most effective ways in which company directors are saving jobs in the UK is through a process known as ‘Pre Pack Administration.’
What Exactly Is Pre Pack Administration?
Now here’s a term we don’t often hear in the United States. Pre Pack Administration as defined by Real Business Rescue, is the process of selling an insolvent (bankrupt) company to a new owner who can carry on business without carrying along the debts of the old company. The company is typically sold to one of the directors or other interested parties because they know the business and are able to pick up trading where the old company left off.
Although there were no provisions made in the Insolvency Act 1986 for Pre Pack Administrations, courts have recognized these new entities which will operate under the leadership of new owners. New owners may elect to keep the name intact or they can choose a new name under which to do business. The real benefit, other than wiping off debt, is [Read more…] about What Is Pre Pack Administration and How is it Saving Jobs in the UK?