Friday, March 5, 2021
On 24 February 2021, the UK government published the draft bill for the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 (the
“Regulations”), which, once in force, will require mandatory creditor approval or an evaluator report before an insolvency practitioner (
“IP”) can dispose of the company’s property by a ‘pre-pack’.
The Regulations are expected to come into effect on 30 April 2021 and we do not expect the detail in the Regulations to change significantly – but do the Regulations address concerns that stakeholders and others have expressed? To a degree, but not as far as some had hoped.
This blog sets out what an IP will need to do before a pre-pack sale can be concluded and the extent to which the Regulations have addressed concerns.