Speed read: Rachel Clark considers whether draft new regulations requiring scrutiny of pre-pack sales to connected parties will be enough to prevent fraud and restore confidence in the process.

Once likened to sustaining ‘Frankenstein monsters’, the use of ‘pre-packs’ is controversial.

Whilst not defined by statute, the term ‘pre-pack’ is commonly used to mean an arrangement to sell all or a substantial part of a business prior to the company entering administration, with the administrator then completing the sale.

Speed read: The wrongful trading suspension ended on 30 September 2020 and it is important that company directors keep in mind the offence in section 214 of the Insolvency Act 1986. Although it is a civil contravention, there could be implications for the anti-money laundering regime.

Speed Read:The recent decision of R v Neuberg serves to further entrench the distinction between the two classes of offences for determining benefit under the confiscation regime.Natasha Reurts provides an overview of the decision and assess the implications for corporate and financial crime cases that follow.

Case Summary

Background