‘Pre-pack’ deals like the one that this week saved defunct law firm Cobbetts face new scrutiny, following a critical report by MPs.
The Business, Innovation and Skills (BIS) Commons Select Committee this week said pre-pack administration deals, where the sale of an insolvent company is agreed before it goes into administration, are not transparent enough to unsecured creditors.
It called for stronger penalties against companies using pre-pack administration deals to relieve their debt.
Solicitors in Sevenoaks
