For businesses facing certain closure even with the application of a recovery procedure, the Pre-Pack, i.e. a ready-made liquidation procedure, may be a remedy.
The debtor may, as early as at the time of filing for bankruptcy, present an offer from an investor for the purchase of the undertaking, an organised part thereof or certain assets having an economic value.
The Pre-Pack is designed to preserve the business as a whole or a substantial part thereof.
It can lead to a quick and profitable monetisation of the debtor’s assets and high creditor satisfaction. In certain circumstances, the Pre-Pack may give the existing owners of the business a chance to “stay in the game”.
