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Industry bodies back pre-pack rules review By Ashleigh Wight THE

21st March 2013, Page 4
21st March 2013
Page 4
Page 4, 21st March 2013 — Industry bodies back pre-pack rules review By Ashleigh Wight THE
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ROAD Haulage Association (RHA) and the Freight Transport Association (FTA) have welcomed the government's decision to evaluate the pre-pack administration process, which aims to ensure that pre-pack sales are only completed when there is strong justification.

The review is expected to begin in late spring, once the Insolvency Service has revised the standard of information that insolvency practitioners need to provide creditors after a pre-pack sale has been made. Ministers hope this will make the process more transparent for creditors.

It is also revising the standards involving the sale of assets to connected parties and will monitor outcomes to decide whether the process has been abused.

RHA chief executive Geoff Dunning (above) said the association wants the government to look at creating a more thorough process for creditors. He also urged traffic commissioners to look at trading history before granting an 0-licence to a firm that has emerged from the process. "The review needs to look at balancing the needs of the creditors and the company. They are competing with a lot of companies that would want to write off debt," he said.

FTA chief executive Theo de Pencier told CM that each case deserved to be evaluated on its own merits, but he welcomed the decision to review the process.

The RHA said last month that any haulier that uses processes such as pre-packs and CVAs would have their membership cancelled.

• Tell us what you think about pre-packs in this month's Trucking Britain survey — conunercialmotor. com/truckingbritain


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