{"id":1532,"date":"2017-11-27T12:35:07","date_gmt":"2017-11-27T12:35:07","guid":{"rendered":"http:\/\/justycja.co.uk\/legal\/?p=1532"},"modified":"2017-11-27T12:35:07","modified_gmt":"2017-11-27T12:35:07","slug":"what-happens-when-a-business-is-sold-out-of-administration-or-insolvency-3","status":"publish","type":"post","link":"http:\/\/www.justycja.co.uk\/legal\/what-happens-when-a-business-is-sold-out-of-administration-or-insolvency-3\/","title":{"rendered":"What Happens When a Business Is Sold out of Administration or Insolvency (3)"},"content":{"rendered":"

Author:\u00a0Barry Stewart,\u00a0Personal and Corporate Recovery Specialist\u00a0and Director\u00a0at\u00a0180\u00a0Advisory\u00a0Solutions Limited<\/b>\u00a0(see whole article<\/span><\/a>).
\n 
\n 
\nContinued from part 2<\/span><\/a>
\n 
\nWhat about pre-pack sales?<\/strong>
\n 
\nUnfortunately, it can get even more complicated with pre-package (pre-pack) sales.
\nA pre-pack sale<\/b> is where the sale of the business has been agreed before<\/b> the insolvency and is completed immediately<\/b> upon the appointment of the insolvency practitioner.
\nThis means the business was probably not exposed to the market in a sale process and it is often the original business owners who buy the business back.
\nIt is, therefore, easy to understand why an outsider\/creditor will question whether this was the right thing to do.
\nThere are very strict rules and regulations surrounding this sort of process but rather than bore you with the technical details I’ll simply say that the insolvency practitioner, as in all insolvencies, still has to be able to prove that this provided the best outcome for creditors<\/b> and that trading the business in insolvency and taking time to market it publicly simply wasn’t possible or would have reduced the price that was achievable.
\n 
\nIs your business in trouble?<\/strong>
\n 
\nThe insolvency industry has a bad press image. Normally the press only reports the bad news in relation to insolvencies, concentrating on the jobs lost rather than the jobs saved, the shutdowns rather than the going concern sales.
\nThe successes \u2014 the businesses that have been rescued and jobs that have been saved \u2014 simply don\u2019t get column inches because that doesn’t sell papers. Also, much of the rescue work carried out by insolvency practitioners is done behind the scenes and is confidential.
\nAdministration or any type of Insolvency does not<\/b> mean the end.
\nBusinesses (or parts of them) successfully exit administration or insolvency every week, saving tens, hundreds or thousands of jobs.
\nUltimately, the success of a rescue will come down to the skill and experience of the insolvency practitioner appointed. Choose the right person and they will be able to save a business \u2014 so long as there\u2019s a viable business there.
\nThe most important thing for directors and business owners is to seek help<\/span><\/a> as soon as you suspect your business is in trouble. The more time an insolvency practitioner<\/span><\/a> has to work with you, the more likely they are to achieve a positive outcome.<\/p>\n","protected":false},"excerpt":{"rendered":"

Author:\u00a0Barry Stewart,\u00a0Personal and Corporate Recovery Specialist\u00a0and Director\u00a0at\u00a0180\u00a0Advisory\u00a0Solutions Limited\u00a0(see whole article).     Continued from part 2   What about pre-pack sales?   Unfortunately, it can get even more complicated with pre-package (pre-pack) sales. A pre-pack sale is where the sale of the business has been agreed before the insolvency and is completed immediately upon the […]<\/p>\n","protected":false},"author":2,"featured_media":1277,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_locale":"en_US","_original_post":"1532","footnotes":""},"categories":[2],"tags":[],"class_list":["post-1532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","en-US"],"acf":[],"_links":{"self":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/posts\/1532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/comments?post=1532"}],"version-history":[{"count":0,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/posts\/1532\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/"}],"wp:attachment":[{"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/media?parent=1532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/categories?post=1532"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.justycja.co.uk\/legal\/wp-json\/wp\/v2\/tags?post=1532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}