ABI: Pre-packs – announcement by Insolvency Service
The Government has today announced a set of proposals to improve transparency and confidence in pre-pack sales in administration.
Responding today’s announcement by the Insolvency Service on pre-packaged administrations (Pre-packs), Nick Starling, the ABI’s Director of General Insurance and Health, said:
“The changes to the insolvency process announced today by the Insolvency Service are a welcome step forward to improving fair treatment of unsecured creditors in the first sentence and providing more transparency in a process that up until now has largely taken place behind closed doors.
“The ABI has long campaigned for the rights of unsecured creditors, whose solvency has often been jeopardised by an insolvency regime that treats them unfairly and is open to abuse. Pre-packaged administrations lack transparency, and offer few opportunities for unsecured creditors to intervene in the insolvency process. The aim of ‘pre-packs’ is corporate survival and to preserve jobs, which is something to be supported. However, this is often done while unfairly penalising unsecured creditors putting their solvency and workforce at risk.”
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Kelly Ostler-Coyle
020 7216 7415
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Association of British Insurers, 51 Gresham Street , EC2V 7HQ
Tel: 020 7600 3333 Fax: 020 7696 8999
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