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16/06/2014

Graham pre-pack report an excellent contribution to debate - R3

Responding to Teresa Graham’s wide-ranging report on ‘pre-pack’ administrations, Giles Frampton, president of insolvency trade body R3, says:

“Teresa Graham’s report is an excellent contribution to the pre-pack debate. 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.”

“Debate around pre-packs has long suffered from a lack of empirical evidence. This report helps plug that gap.”

“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.”

“We very much look forward to seeing the government’s full response to the report’s recommendations, which we are keen to see developed.”

 

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.