Pre-packs

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What is a pre-pack administration?

A pre-pack administration is a sale of a company's business or assets, or both, which has been negotiated and agreed in advance of a company entering administration. Once an administrator is appointed over the company, they will quickly close the sale (often within a few minutes).

Pre-packs are likely to be negotiated and proceed in a short period of time. Agreement is usually reached in confidence. The business is unlikely to have been advertised widely as there may be too much of a risk of key stakeholders disappearing as a result, ie key staff or suppliers.

Sales in pre-pack situations are generally subject to far less due diligence than a standard corporate sale. Warranties, indemnities or guarantees are rarely, if ever, given (as the office-holders will not have personal knowledge of matters in the way that directors might be expected to have) and assets will be sold as seen. Occasionally warranties may be requested on matters within the office-holders’ knowledge, for example relating to the validity

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Latest Restructuring & Insolvency News

Budget 2025—key Restructuring & Insolvency announcements

In the Budget 2025, on 26 November 2025, the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP announced several measures that will be of interest to restructuring and insolvency professionals. The measures include changes to business rates, recruitment of additional Insolvency Service staff to tackle abusive phoenixism and rogue directors, establishment of the Public Authorities Fraud Investigation and Enforcement Service, and reforms to National Insurance Contributions.

Supreme Court holds that a director who unlawfully transfers company assets after liquidation is liable for breach of fiduciary duty and must compensate the company for resulting loss (Mitchell and another (Joint Liquidators of MBI International & Partners Inc (In Liquidation)) v Sheikh Mohamed Bin Issa Al Jaber)

The Supreme Court has unanimously held that Sheikh Mohamed Bin Issa Al Jaber was in breach of his fiduciary duties when he effected the 2016 transfer of 891,761 shares from MBI International & Partners Inc to JJW Guernsey after the company had entered liquidation. Rejecting arguments that the company suffered no loss due to unpaid vendor’s liens, the Supreme Court ruled that the shares were not subject to such liens and that the loss should be assessed at their value at the date of the breach. Restoring the trial judge’s approach, the Supreme Court reinstated the order for equitable compensation of €67,123,403.36, emphasising that fiduciaries cannot rely on later events to escape liability without clear proof of causation.

Obtaining an English administration order in respect of a Jersey company (Re Petrofac Ltd)

Restructuring & Insolvency analysis: In the case of Petrofac Ltd, the High Court of England and Wales considered whether it was appropriate to grant an administration order for a Jersey-incorporated company with its headquarters in London. The court ultimately granted the order, and this analysis summarises the key reasons behind its decision. Practical implications written by Stephen Alexander, Stephan Venter and Ben Meggitt-Smith of Mourant Ozannes (Jersey) LLP.

Council of the EU agrees directive harmonising insolvency law across member states

The Council of the EU and European Parliament negotiators reached provisional agreement on a directive harmonising insolvency law across EU member states. The directive establishes common rules on avoidance actions, asset tracing through bank account registers, mandatory pre-pack proceedings, directors' duties to file within three months of financial distress and creditors' committees. Member states have two years and nine months to transpose the directive into national law, replacing the current system where cross-border investors must navigate up to 27 different national insolvency regimes.

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