Pre-pack sale

A pre-pack sale is when a company arranges to sell its assets or business to new owners before officially declaring bankruptcy or insolvency. Essentially, the company's owners and potential buyers agree on a sale plan in advance, often with input from the company's administrators. This process helps the company quickly raise funds, preserve value, and sometimes avoid a formal insolvency process. It benefits stakeholders by facilitating a faster sale and potentially reducing disruption, but it requires careful negotiation and transparency to ensure fairness for all parties involved.