Blair Nimmo, head of KPMG’s Restructuring practice in the UK, comments on new pre-pack legislation.
Commenting on today’s announcement from the Insolvency Service that new laws will require mandatory independent scrutiny of pre-pack administration sales where connected parties are involved in the purchase, Blair Nimmo, head of KPMG’s Restructuring practice in the UK, said:
“The challenges and uncertainties posed by the current environment means that now more than ever, the pre-pack is an essential tool in the restructuring practitioner’s toolkit.
“The truth is that often, these transactions are the only basis by which a business is able to survive, and so play a key role in protecting jobs.
“We understand the concerns of those who believe that the process can sometimes appear opaque. Whilst the Pre-Pack Pool has played a useful role in ensuring transparency for creditors and other stakeholders, we hope that these new proposals for independent scrutiny will help improve confidence in the pre-pack process.”
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