London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Pre-packs good for troubled businesses

Pre-packs can be a constructive insolvency process, but they should not be used as a sticking plaster that delays an inevitable collapse.

This is the conclusion of a recent article in The Scotsman, which merits reading as a clear exposition of the issues.

Fundamental to the continuation of any distressed business is the change required to ensure that its misfortune does not recur.

Insolvency procedures are invoked, ideally, at a time and in a way that value can be preserved (if not created). Whether the right solution is a pre-pack will depend on the circumstances, but the earlier IPs are involved in a troubled business, the better chance we have to preserve value – avoiding formal insolvency if possible, but using it constructively if necessary.



Date: 29th September, 2014
Author: Chris Laughton


Articles from this Author

Contact a Partner


Lisa Spearman, Private Client Partner advises on 'Tales of the unexpected : UK tax where you didn’t think you would……

Observations on the government consultation response of 26 August 2018 by Chris Laughton, a corporate advisory part……



For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn