Pre Pack Liquidation
Pre-pack Liquidation is where Creditors Voluntary Liquidation procedure is used to by an insolvent company which involves the pre-packaged sale of the assets and trade of the company.
Don’t forget that the speed of process for a Pre-pack Liquidation is slower than that of a pre-pack Administration. This is principally due to the notice period required for the Creditors and Shareholders meeting for a CVL. The Insolvency Practitioner is appointed at these meeting and can only complete the sale once appointed.
The calling of the Creditors and Shareholders meetings along with the official notice in the London Gazette will lead to publicity of the Company Liquidation.
Therefore the idea of a pre-pack Liquidation is a perhaps misleading as publicity of the CVL meetings could lead to approaches for the assets of the business that an appointed Insolvency Practitioner would need to consider.