Post by andrewholgate on Jan 29, 2014 14:39:06 GMT
This has been put together by Mark Wardrop ACA JIEB. He is our Operations Director and qualified Insolvency Practitioner.
The existence of the Administration regime in UK law and in particular the ability for a company to appoint an Administrator “out of court” in a “pre-pack” Administration process has arisen from a desire by previous governments to create a “rescue culture” for business in the UK and has been in general use for over 10 years. The rationale behind this rescue culture is that if a business can be financially and operationally restructured so as to be viable (profitable) going forward then it can continue to employ staff, pay its suppliers for ongoing supplies, invest in growth, etc etc and generally contribute positively to the economy, it is better for all than if the business is simply liquidated which will negatively impact the economy (redundant employees, loss of future business for suppliers etc). The rules governing pre-pack procedure are entirely focussed on ensuring that the ethical considerations which have been raised over the years (mainly concerning potential impact on unsecured creditors) are managed to the fullest extent possible, and Assetz Capital would only consider being involved in a transaction where all these rules and regulations are met.
The existence of the Administration regime in UK law and in particular the ability for a company to appoint an Administrator “out of court” in a “pre-pack” Administration process has arisen from a desire by previous governments to create a “rescue culture” for business in the UK and has been in general use for over 10 years. The rationale behind this rescue culture is that if a business can be financially and operationally restructured so as to be viable (profitable) going forward then it can continue to employ staff, pay its suppliers for ongoing supplies, invest in growth, etc etc and generally contribute positively to the economy, it is better for all than if the business is simply liquidated which will negatively impact the economy (redundant employees, loss of future business for suppliers etc). The rules governing pre-pack procedure are entirely focussed on ensuring that the ethical considerations which have been raised over the years (mainly concerning potential impact on unsecured creditors) are managed to the fullest extent possible, and Assetz Capital would only consider being involved in a transaction where all these rules and regulations are met.
