PRE-PACK ATTACK An independent review of the of pre-pack administration
Page 10
If you've noticed an error in this article please click here to report it so we can fix it.
process was launched by the government this month after concerns were raised about the ease with which people can walk away from debt. The review will assess whether pre-packs cause detriment to any particular groups of creditor.
It follows a consultation into pre-packs by a committee of MPs earlier this year, to which the Road Haulage Association (RHA) responded, saying it was "extremely disappointed" that reforms were abandoned in 2012 after lobbying from the insolvency industry.
"Insufficient importance was, and still is, being placed on the impact of a pre-pack on competitor businesses," says the RHA. "In the road haulage sector, far from protecting jobs, pre-packs undermine quality jobs offered by operators trading sustainably for economic rates, within the rules, and following best practice."
The latest review, announced by business secretary Vince Cable on 15 July, covers administrations in Britain. The findings will be presented to ministers by the end of the year, with a final report published in spring 2014.