Close Menu
No.1 in UK for Limited Company Liquidations
UK Liquidators

What is a pre-pack administration?

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Understanding a Pre-pack administration


Written by Jonathan Munnery

A pre-packaged – or pre-pack – administration process involves the sale of a company to either a connected or unconnected party. A pre-pack sale will be arranged before administrators are formally appointed, which can help to minimise any disruption to trade and provide a continuation of employment to employees.

A company can be sold to a third-party buyer, or alternatively, the existing directors can set up a new company – or ‘newco’ – and purchase its assets at a fair market value. Employees will be transferred over to the newco through a process known as TUPE. Only viable businesses will be able to be sold through a pre-pack process, and the newco must have adequate funding in place to complete on the deal.

Rules surrounding pre-pack administration are extremely complex, and this can end up being a costly process, however, in some instances, it is the best way for a viable company to continue trading.

Although nobody goes into business expecting their company to fail, UK Liquidators were supportive and helpful through the whole liquidation process, and I would have no hesitation recommending them to others in the same position.
Paul Winter
|
Director
Common Liquidation Questions
What is a moratorium in administration?

When a company enters administration, it is granted a temporary moratorium. A moratorium can be seen as a legal ringfence which is placed around the company, preventing creditors from initiating litigation proceedings.

Understanding the post-administration process

A company cannot remain in administration indefinitely, however, there is not one sole route out of administration.

What happens to employees in administration?

A company going into administration does not necessarily mean that the business will cease to exist; in fact, rescuing the company as a going concern is often the main objective.

You’re in safe hands with UK Liquidators

At UK Liquidators, our service is fully partner-led and your case will always be overseen by a fully licensed insolvency practitioner.

Meet The Team
Jonathan Munnery
Partner
Marco Piacquadio
Partner
Matthew Cluer
Director
Carolynn Best
Partner
Is liquidation the right option for you?

Take our 60 second test and find out

Company health risk assessment
Types of liquidation available
Alternatives to liquidation
Understand your next steps
60 Second Liquidation Test
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice