Pre-packaged Insolvency

Pre-packaged insolvency is a process where a company arranges a sale of its assets to a buyer before officially entering insolvency. This approach allows the company to quickly shift into a new business structure while minimizing disruption. The terms of the sale are agreed upon in advance, ensuring that the process is smoother and often preserving jobs. Once the company is in formal insolvency, the agreed-upon sale is completed immediately, providing a fresh start while settling debts. This method aims to protect the company's value and benefit creditors more effectively than a traditional insolvency process.