Independent review
Completed
Graham Pre-pack Review
Index summary
Independent review of pre-pack administration in insolvency proceedings, examining transparency and accountability concerns among unsecured creditors and connected party purchasers, making six recommendations for voluntary industry reform.
Original evidence
Government Response
Government supported voluntary approach; all six recommendations implemented. Pre-pack Pool introduced November 2015. Pre-Pack Administration (Amendment) Regulations 2021 introduced mandatory safeguards.
Recommendations
Recommendation 1
Recommendation · source text
On a voluntary basis, connected parties approach a 'pre-pack pool' before the sale and disclose details of the deal, for the pool member to opine on.
Recommendation 2
Recommendation · source text
On a voluntary basis, the connected party complete a 'viability review' on the new company.
Recommendation 3
Recommendation · source text
The Joint Insolvency Committee considers, at the earliest opportunity, the redrafted SIP16 in Annex A.
Recommendation 4
Recommendation · source text
All marketing of businesses that pre-pack comply with six principles of good marketing and that any deviation from these principles be brought to creditors' attention.
Recommendation 5
Recommendation · source text
SIP16 be amended to the effect that valuations must be carried out by a valuer who holds professional indemnity insurance.
Recommendation 6
Recommendation · source text
The Insolvency Service withdraws from monitoring SIP16 statements and that monitoring be picked up by the Recognised Professional Bodies.
No recommendations with this response.