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LATEST NEWS & EVENTS Govt proposes corporate insolvency reform to pre-packs  Changes to the corporate insolvency regime relating to pre-pack administrations have been unveiled by the government. Announced by employment relations minister Edward Davey, the measures seek to inspire more confidence in the system by making it more transparent. He noted that pre-pack sales have been the subject of much debate, but that they offer a "flexible and speedy means of rescue". Pre-packs can be the best way of maximising returns for creditors, he explained, adding that they need to be done "fairly and reasonably". "Particular concerns have been raised about sales of assets back to the current management, or other connected party, something that is often referred to as phoenixism," Mr Davey said. Creditors can receive less than they should and competitors who pay their debts in full can suffer, if such sales are under value. The proposals will require administrators to give notice to creditors where they propose to sell a significant proportion of the assets of a company or its business to a connected party, in circumstances where there has been no open marketing of the assets. Corporate insolvency body R3 warned that while the measures will increase transparency, they could also lead to more liquidations. Posted by Alex McLean 
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