• Pre-packs- patronus or dementor?

      Walton, Peter (R3 Association of Business Recovery Professionals, 2018-03)
      As fans of Harry Potter will be aware, a Dementor is a dark creature which glories in decay, draining happiness and hope from people and creating an atmosphere of misery and disturbance. A Patronus, on the other hand, is a positive force of hope and happiness providing the desire to survive. The purpose of this note is to consider whether the magic of a pre-packaged administration is more Patronus than Dementor. It is widely, but not universally, accepted that pre-packs often produce the best result for a company in financial distress. They often permit an ailing business to be sold, at a higher price than in liquidation, which safeguards the future of that business as a trading entity with minimal disruption and jobs saved.