Pre-packaged Administrations - Trick or Treat?

Abstract

Discusses how the US idea of pre-packaged, or execution only, administration has been approached in the UK, involving deals that have already been agreed before a company enters administration. Comments on the use of pre-packs in the US. Explores the use of pre-packs in the UK and the possible grounds for challenging their existence, focusing on: (1) whether the Insolvency Act 1986 permits pre-packed administration; (2) the possibility that pre-packs may cause administrators to act in breach of duties, including statutory duties and conflict of interest issues; and (3) whether fees for pre-administration work could be claimed as expenses of the administration. (Legal Journals Index)