As published on our Talking Recovery blog, last month the Pension Protection Fund (PPF) issued guidance relating to pre-packaged administrations (pre-packs) where the same insolvency practitioner (IP) continues in the subsequent liquidation or company voluntary arrangement (CVA).

The publication of the guidance arises as a result of the PPF’s concerns that a pre-pack can be exploited to dodge pension liabilities, with the new ‘phoenix’ company emerging post-sale and leaving these liabilities behind. The PPF is also concerned that the actions of the company’s directors, and those of the administrator, are often not adequately scrutinised in a pre-pack situation.

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This blog is intended only as a synopsis of certain recent developments. If any matter referred to in this blog is sought to be relied upon, further advice should be obtained.