Fri, 26 Mar 2010 | ADMINISTRATION
R3, the trade body for insolvency professionals, has accused the government of undermining the public’s confidence in the practice of pre-packaged administrations.
These are where businesses are put into administration and sold at the same time.
The government has claimed that a third of all pre-packs in the last 6 months were deemed to be non-compliant with the industry code of practice. However, R3 have released their own figures that show that only seven percent of pre-packs were referred to the regulators for possible sanction.
The insolvency industry believes that pre-packed administrations save jobs and deliver greater returns to creditors.
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