Moved by
Lord Stevenson of Balmacara
52ZA: After Clause 19, insert the following new Clause—
“Insolvency: pre-packs
Where a company enters pre-pack proceedings the following conditions must be met in order to protect the company’s creditors—
(a) the owners of the company must approach the company’s investors for approval prior to entering any pre-pack proceedings;
(b) any personnel advising on pre-pack proceedings shall not become the administrator in subsequent pre-pack sales;
(c) any administrator undertaking a proposed pre-pack sale to connected parties must justify that the prospective sale price represents the best value for creditors; and
(d) the administrator must make provision for at least three days’ notice to be given to creditors of the terms of any such proposed sale if there has been no open marketing of the assets.”