Gateley corporate recovery partner Tim Cooper has commented on a government-published review by Teresa Graham CBE making recommendations for change on how struggling companies should be pre-packaged and sold when entering administration. This review was commissioned by Vince Cable.
Cooper, who is also chairman of R3, the Association of Business Recovery Professionals, in Scotland, said that if adopted the changes are meant to provide greater clarity for failing businesses on practical ways to salvage healthy parts of their concerns in order to preserve jobs and bring about a turnaround. He added that for creditors it will increase transparency of the process and satisfy all parties that the fairest deal is agreed.
He said: ‘This is an opportunity for the insolvency profession to raise perception of the important work it does in helping struggling companies and their creditors achieve the best possible outcomes from a business going into administration.
‘The insolvency profession should be keen to see these recommendations developed — they are aimed at a more transparent and robust dialogue between all parties involved. This will build trust with clients, creditors and the public. These aims are to be welcomed.’