Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Pre-pack administration definition

What does Pre-pack administration mean? A pre-pack administration is an insolvency sale of all or part of a company’s business or assets that is negotiated before administrators are appointed and completed immediately on, or shortly after, their appointment. The term is descriptive rather than statutory, but in Great Britain it is framed by professional and regulatory requirements. Key features include: advance marketing and valuation, agreed sale terms (to a connected or unconnected buyer), and swift completion to preserve goodwill, employment and going-concern value while minimising trading costs. Administrators must act in the best interests of creditors as a whole and provide post-appointment disclosures explaining marketing, valuations,...

Pre-pack sales to connected persons: duties under the Administration (Restrictions on Disposal to Connected Persons) Regulations 2021—evaluator’s qualifying report, creditor approval, scope, filings and timing

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

A Pre-pack administration sale refers to the disposal of a company’s business and/or assets that is arranged before the company enters administration, with completion occurring immediately after the appointment—sometimes within minutes. For broader background on pre-packs, see Practice Note: What is a pre-pack administration sale? This Practice Note examines the additional requirements introduced by the Administration (Restrictions on Disposal etc to Connected persons) Regulations 2021 (the Regulations), SI 2021/427, where the buyer is connected with the company. Note that the Regulations can also extend to post-packs—ie administrations where a deal is negotiated pre-appointment but, after appointment, a marketing process is conducted to test whether a better outcome could be achieved by selling to another party.

Why were the Regulations introduced?

Pre-pack administrations have historically been contentious. In a pre-pack, the administrator can dispose of the company’s assets without prior scrutiny and before creditors have had a chance to approve or raise concerns about the transaction. In many instances, the business and assets were sold back to existing management. This fostered a view among some creditors, particularly unsecured creditors, that...

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Web page updated on 21/05/2026

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