Independent review
Completed
Graham Pre-pack Review
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.
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
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
On a voluntary basis, the connected party complete a 'viability review' on the new company.
Recommendation 3
The Joint Insolvency Committee considers, at the earliest opportunity, the redrafted SIP16 in Annex A.
Recommendation 4
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
SIP16 be amended to the effect that valuations must be carried out by a valuer who holds professional indemnity insurance.
Recommendation 6
The Insolvency Service withdraws from monitoring SIP16 statements and that monitoring be picked up by the Recognised Professional Bodies.
No recommendations with this response.