UK Announces Connected Pre-Pack Scrutiny Laws

Howard Morris spoke to Global Restructuring Review about the UK government’s plans to introduce independent scrutiny of pre-pack administration sales where connected parties – such as a company’s existing directors or shareholders – are part of the purchase.

“The simple truth is that there’s a limit to what the government can, perhaps even should, do to arrest the shock our economy is suffering,” Howard said. “The public and company stakeholders, creditors, employees, often find a pre-pack to a connected party offensive; they wake up to find their debtor or employer has filed and its business and assets have already been sold and they have been left behind.”

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