Pre Packs are the wild card in British Insolvency. Just like Elvis, you don’t know whether its in the building or out!
When a business runs into trouble and the director decides he wants to set up a Pre pack then the creditors are kept in the dark.
The relative transparency of normal trading turns to a murky opaque mystery with a Pre pack.
A deal is struck with the director of the business to purchase the assets and goodwill and move it all, without the liabilities, into a Phoenix company, sidestepping the creditors as it’s all done behind closed doors.
Without warning the process has been a done deal with the creditors left high and dry by the proactive and secretive product called a Pre pack.
This product surely must have crept out of GCHQ, such is the subterfuge involved.
It’s James Bond, Indiana Jones and Tommy Cooper all rolled into one with the title of Insolvency Practitioner that confronts the creditors with the great news that the Pre pack has just saved another business.
For more information on Pre Pack talk to TaxGone today.
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