The government has revealed the members of a pool of independent experts who will review pre-pack business insolvencies – when the business is sold to a connected party.
After months of speculation, the Department for Business, Innovation and Skills (BIS) finally announced the 20 individuals who will now review applications for a pre-pack sale of an insolvent business, and give recommendations.
Directors or connected parties hoping to purchase a business out of administration, through a pre-pack sale, will now submit an application to the pool.
The application will be voluntary but connected parties will be made aware of the pool by an insolvency practitioner.
How it will work
Applications for pre-packs will be made to the pool via a secure, online portal. The reviewer will then issue one of three opinions: The pre-pack is not unreasonable; the case is not unreasonable but there are minor limitations in the evidence provided; or the case for pre-pack has not been made.
Applications will cost £800 + VAT and the opinion will be provided to creditors once the business sale has been completed.
An official launch of the pool is part of a package of reforms to improve transparency of how pre-packs work. The changes include new guidance on marketing proposed ‘pre-packed’ businesses to third parties to get a better deal for creditors.
As set out on the pre-pack pool website, the membership is as follows:
• David Abbott, MSc, FCA, AMCT
• David Blair, MA, FCA, MBA, CF
• Paddy Campbell, FCA
• Dr. Simon Chapman, C Dir
• Colin Coghlan, C Dir
• Philip Gardner, BA (Hons), FCA, Cdir, DipM
• Rodney Hare, FCA
• Len Jones, BA (Hons), FCA, MBA, MSc
• Philip Long, FCA
• Kevin C Mouatt, C Dir
• Jon Newell, FCA
• David Newman, C Dir, MBA
• Philip Oatley, FCA, BA (Hons)
• Tim Rose, C Dir, MBA
• Alec Sanderson, BA, C Dir, FBCS, CEng
• Tony Sanderson, FCA, BA (Econ)
• Philip Walter, BSc (Hons), CDir, FCMI
• Tony Wilkinson, FCMA
• Simon L Willis, C Dir, BSc
ICAEW director Bob Pinder said: “There is no price to transparency. Giving confidence to suppliers and creditors that they can continue to deal with the directors behind a new business is a big boost to improving pre-packs as a vital form of business rescue.”
He added: “We urge insolvency practitioners and directors involved in pre-pack sales to make use of the pool and other insolvency reforms from today. These changes are vital for preserving pre-packs and telling the business community, and government, that insolvency practitioners don’t work behind closed doors.”
By Marcel LeGouais