Pre-packs—landlords’ issues and remedies
Pre-packs—landlords’ issues and remedies

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Pre-packs—landlords’ issues and remedies
  • Coronavirus (COVID-19)
  • What is a pre-pack administration sale?
  • Landlord’s issues
  • Rent
  • The period prior to the tenant company entering administration
  • The period starting when the tenant company enters administration
  • The period starting when the lease is assigned
  • Landlord’s remedies
  • Challenging the decision
  • More...

Pre-packs—landlords’ issues and remedies

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and The Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (April 2021). For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

What is a pre-pack administration sale?

A pre-pack is an arrangement under which the sale of all or part of a company’s business and assets is negotiated with a purchaser prior to the appointment of an administrator and the administrator effects the sale immediately on (or shortly after) their appointment.

Importantly, the sale is completed before any meeting of the creditors and without court approval.

Although the process has been held to be legal, pre-packs have been increasingly criticised for their lack of transparency and their failure to give proper consideration to the interests of the creditors, particularly where the sale is to the existing management team. In order to address this criticism, from 30 April 2021, where the pre-pack sale is to a person connected with the seller, there are additional statutory obligations on the administrator and the purchaser

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