Pre-pack administration application (Marko Ventures Ltd v London Antiaging Clinic Ltd)
Restructuring & Insolvency analysis: The court granted an administration application made by the majority shareholder of a company (in its capacity as a creditor of the company), having been satisfied that the company was insolvent and that a proposed pre-pack sale of the company’s business and assets to a new company set up by the beneficial owners of the applicant was likely to achieve the best outcome for the company’s creditors. This case illustrates the need for a proper marketing exercise to be carried out and evidenced in a case where an administration order is sought to facilitate a proposed pre-pack sale. Written by Simon Passfield KC, barrister at Guildhall Chambers and Deputy Insolvency and Companies Court Judge.
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