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We specialise in Pre Pack Administration which is the restructuring process of a business to protect the assets and employees of insolvent companies.
A pre pack administration procedure is a very popular tool used by many firms whereby the assets and business of a company are sold before the company is forced into a formal insolvency service such as liquidation.
Companies can incur sudden hefty debts which affect cash flow be it from an unpaid tax bill or an unpaid invoice from a main customer. The pre pack administration service is a solution to this troublesome problem which can resolve the issues without the need to ask or be forced into directions by the creditors.
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Advantages of Pre-Pack Administration
As directors of a firm, you appoint the insolvency practitioner, accountant or business turnaround expert whom is given the task of selling any company assets or business prior to placing the company into administration. It means as directors, you keep a degree of control throughout the whole procedure and very often you can even buy back the assets giving total protection.
Pre pack administration is a very powerful restructuring solution of selling a business on to a third party that rids debts but does not interrupt business. The new firm can continue to trade without the burden of arrears by the previous company.
Valuable members of staff can be retained, connections with suppliers can be saved ensuring future supply and customers can be kept all by servicing a pre pack administration. It is essential though that everything is dealt with in a professional and respectful manner to enable the new company thrive efficiently. At Real Business Recovery we have the knowledge and experience with liquidation matters to help you through this process and ensure your business needs are met.
Ultimately, a pre pack administration service keeps the business going allowing great continuity. The new company can flourish, jobs will be safeguarded and the firm can be reset without the burden of debts.
Disadvantages of Pre-Pack Administration
A pre pack administration can only be used for insolvent companies and those that are sold for no less than £25,000 so it is inappropriate for small businesses with no assets.
Valuable members of staff can be retained but according to European law all the employees of the old company who are transferred to the new business must be done so under the same terms and conditions of employment; so a pre pack administration cannot be implemented as a way of escaping or evading a redundancy programme.
Upon liquidation of a pre pack administration, directors of the old business are issued a director's disqualification report by the liquidator but it will be a real, relevant and realistic solution to your business recovery.
So speak to the specialists at Real Business Recovery today for free, independent advice and guidance on pre pack administration whether you are a sole trader, partnership or multinational company.
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