William Ballmann, chair of insolvency trade body R3 in Yorkshire and partner at Gateley, has responded to Teresa Graham’s wide-ranging report on ‘pre-pack’ administrations, describing it as an ‘excellent contribution to the pre-pack debate’.
He said: ‘We fully support her conclusion that there is a place for pre-packs in the UK’s insolvency framework.
‘As the report says, pre-packs can help save jobs and do provide benefits for creditors too. The report will help dispel some of the myths that exist around the pre-pack procedure.’
According to Ballmann, debate around pre-packs has long suffered from a lack of empirical evidence. ‘This report helps plug that gap,’ he said.
Ballmann added: ‘The report’s recommendations are innovative, measured and worth exploring. Balancing transparency and the need to protect the value of a business in difficulty is difficult to achieve: many of the review’s proposals may help redress this balance.
‘It is also encouraging to see the report’s recommendations focus on more than just the insolvency practitioner’s role in a pre-pack. Instead — and rightly — the report turns the spotlight on directors involved in a connected party pre-pack.’