Pre-pack Sales to Connected Parties: Considerations for UK Administrators and Purchasers

April 2021
Region: Europe

From 30 April 2021, administrators will only be able to complete a sale of a substantial part of a company’s business or assets to a connected party in a pre-pack sale with prior creditor approval or a report from an evaluator.

This alert considers the practical implications of the new regulations that apply to both pre-packs and post-packs completed within eight weeks of an administrator’s appointment, answering questions around timing, obligations and compliance, including:

  • How does the administrator assess whether the evaluator has the relevant knowledge, experience and independence?
  • What is a substantial disposal?
  • What is the administrator’s liability for breach of the regulations?
  • What if there is more than one sale?
  • Who is a connected party?