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Guidance on the New Pre-Pack Regulations

The Insolvency Service has recently issued guidance on the new pre-pack legislation and the requirement for independent scrutiny of disposals of company assets to a connected person.

The new Regulations prevent an administrator from disposing of a substantial part of the company’s business or assets to a connected person within the first 8 weeks of the administration without:

  • approval obtained for the transaction from the company’s creditors; or
  • a report obtained by the connected person from an evaluator, which contains a statement as to whether or not the disposal is reasonable.

The Insolvency Service guidance focuses primarily on the evaluator’s role and summarises the requirements for an evaluator. It sets out, in detail, the information needed for the evaluator to complete the report and the statements to be included in the report in respect of the reasonableness of the disposal.

The guidance outlines the provisions of connected persons, what a substantial disposal means and the timescale to provide the report. The guidance also covers the administrator’s role in deciding whether the evaluator’s report meets the requirements of the Regulations.

The guidance is an important tool if you are involved in an administration sale to a connected person and can be found here:  Requirements for independent scrutiny of the disposal of assets in administration, including pre-pack sales – GOV.UK (

For more information or advice on this or any other insolvency issue, please contact Victoria Dunstall or Annabel Whittaker directly, call us on 0115 9 100 200 or click here to send an email

Posted on June 15, 2021

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