The pre-pack involves the sale of a business, which is pre-arranged before the formal insolvency of the company. Immediately after the formal opening of the insolvency procedure, the business sale is executed. The pre-packaged sale of a business has been subject to a lot of criticism in the Netherlands and the United Kingdom. The lack of transparency of the process, problematic valuations as well as the prospect of a biased insolvency practitioner, are often criticised aspects.
This book will provide a comparative analysis of the pre-pack procedure in the Netherlands and in the United Kingdom. It will give an overview of the similarities and differences between the Dutch proposed pre-pack procedure and the current pre-pack regime in the UK. It will identify the strengths and weaknesses of each system and assess the proposed Dutch and English reforms. It will be assessed whether the Dutch pre-pack regime can be used as an alternative to the English pre-pack in international restructurings.
In this book the author gives an introduction to the concept of corporate rescue, after which he briefly discusses the domestic procedures used in pre-packs. He will focus on the current practice and development of the pre-pack in the UK and the Netherlands, and he will give a thorough comparative analysis of the two pre-pack procedures.