Where a sale of all or part of a Company’s business and assets is negotiated with a purchaser prior to the appointment of an Administrator, and the Administrator completes the sale immediately upon, or shortly after, his appointment, that is known as a pre-packaged sale.
An administrator will not be able to complete a sale, hire out or dispose of all or a substantial part of a company’s assets to a connected party within 8 weeks of a company entering into administration without obtaining either the approval of creditors or an Evaluator’s independent written report. It applies to all connected party sales, including pre-packs and those entered into within 8 weeks of a company going into administration.
This new mandatory approach heralds the move away from the current system of giving the connected party purchaser the option of seeking a report from the Pre-Pack Pool.
This must be provided by an independent person (the Evaluator) to the purchaser (the connected party). The Evaluator must state whether he is satisfied that the consideration to be provided and the grounds for the substantial disposal are reasonable in the circumstances. The new regulations came into force on 30 April 2021.
Kevin Murphy is the managing director of and is a qualified, licenced (non-appointment taking) IP. With over 25 years of experience in the corporate recovery sector, he gained extensive expertise in administrations as Head of Administrations at a national IP firm.
More recently, Kevin has turned his skills to corporate finance and non-executive directorships, working with a leading buy and build acquisitions group on numerous acquisitions. Kevin considers that he has sufficient relevant knowledge and experience to provide an Evaluator’s Report.
We are discrete, professional and provide an efficient and cost-effective service. As a non-appointment taking firm, we are not in competition with your business. We will always agree on reporting timescales and fees in advance and the appropriate PI cover is in place.