Quick answer
A pre-pack administration is where a company’s business or assets are sold immediately on, or shortly after, an administrator’s appointment, with the sale negotiated beforehand to preserve value. The administrator must justify it to creditors in a SIP 16 statement. Where the buyer is a connected party, an independent evaluator’s report is required before completion.
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① Draft it from scratch
Chris drafts your pre-pack pack — board minutes, sale heads of terms, TUPE framework, SIP 16 statement and creditor communications — from your own facts.
② Check the draft you’ve written
Already prepared minutes or a sale contract? Upload your draft and Chris reviews it against the connected-party rules before it reaches your IP.
③ You’ve had a SIP 16 or creditor query — respond
Run any disclosure issue or creditor challenge by Chris; he reads it against your own documents and shows you where you stand.
Pre-pack administration gets a bad press that often says more about the critic than the tool. When jobs are preserved, customers continue to be served, and unsecured creditors receive more than they would from a liquidation, a pre-pack has done its job. The drafting around it must bear that scrutiny.
Work alongside your Insolvency Practitioner — not against them. The IP role is statutory and cannot be replaced. What Chris replaces is the solicitor or paralegal drafting that surrounds the IP’s work. Directors who arrive with clean drafts get faster, cheaper outcomes.
Redraft to Queen’s English perfect — professional standard, within reach.
Facing this as a director?
Time matters in insolvency. Chris drafts the documents this guide describes — to a high, professional standard, the same day. For ongoing matters, Express Case covers the whole procedure, document by document.
Like a court clerk, we explain how to use the tools — we don’t advise on your case.
When pre-pack fits
- Business has value as a going concern — customer contracts, brand, workforce, trade
- That value would be destroyed by a public administration or liquidation
- A buyer is ready and the sale price is defensible against market valuation
- Existing directors (or a connected third party) are the logical buyer or a genuine third party is willing
The statutory framework
- Insolvency Act 1986 Schedule B1 — administration
- Administration (Restrictions on Disposal etc to Connected Persons) Regulations 2021 — the connected-party pre-pack rules
- SIP 16 — administrator disclosure obligations
The 2021 reforms
Post-Graham Review, connected-party pre-packs require:
- Referral to the Pre-Pack Pool, or
- A “qualifying report” from an independent evaluator
- Administrator’s SIP 16 statement within 7 days of sale
- Detailed creditors’ report justifying the course of action
Let Chris draft the document pack
Arrive at your IP meeting with proposal, statement of affairs, and creditor correspondence already drafted. The IP reviews, signs off, administers. Your total legal cost comes down.
The documents
Pre-appointment
- Directors’ board minutes documenting insolvency, consideration of alternatives, rationale for pre-pack
- Valuation evidence — independent where possible
- Sale contract heads of terms
- Pre-Pack Pool referral (if connected-party)
- Administrator’s pre-appointment advice file
Appointment and sale
- Notice of intention to appoint administrators
- Notice of appointment
- Sale contract executed
- TUPE information and consultation records
Post-sale
- SIP 16 statement — full disclosure of the sale process
- Administrators’ proposals to creditors within 8 weeks
- Creditor decision on proposals
Common criticism — and how clean drafting defeats it
Pre-packs to connected parties attract scrutiny. The three clean-drafting moves:
- Robust marketing record — evidence the business was marketed, offers invited, alternatives tested
- Independent valuation — multiple if possible
- Pre-Pack Pool or qualifying report — not optional under the 2021 reforms
What Chris drafts for the pre-pack
- Directors’ board minutes with insolvency tests applied
- Sale contract heads of terms
- TUPE consultation framework
- Creditor communication pack
- Response to SIP 16 disclosure issues
- Evidence pack for Pre-Pack Pool referral
Prepare to win. Plan not to fail.
Pre-packs that survive scrutiny are pre-packs that were drafted to survive scrutiny from the first board minute onwards.
Frequently asked questions
What is a pre-pack administration?
It is an arrangement where the sale of an insolvent business is agreed before administrators are appointed, then completed shortly after appointment. When it preserves jobs, keeps customers served and returns more to unsecured creditors than a liquidation would, it has done its job — but the drafting around it must bear that scrutiny.
Does Chris replace my Insolvency Practitioner?
No. The IP role is statutory and cannot be replaced; you work alongside your IP, not against them. What Chris replaces is the solicitor or paralegal drafting that surrounds the IP’s work, so directors arrive with clean drafts and get faster, cheaper outcomes.
What rules apply to a connected-party pre-pack?
Following the 2021 reforms, a connected-party pre-pack requires either a referral to the Pre-Pack Pool or a qualifying report from an independent evaluator, plus the administrator’s SIP 16 statement and a detailed creditors’ report justifying the course of action. The framework sits under Insolvency Act 1986 Schedule B1, the 2021 connected-persons Regulations and SIP 16.
What documents make up the pre-pack pack?
Pre-appointment: directors’ board minutes documenting insolvency and alternatives considered, valuation evidence, sale heads of terms, and a Pre-Pack Pool referral if connected. Appointment and sale: notice of intention to appoint, notice of appointment, the executed sale contract and TUPE records. Post-sale: the SIP 16 statement and administrators’ proposals to creditors.
How does clean drafting defeat criticism of connected-party sales?
Three moves: a robust marketing record evidencing that the business was marketed and offers invited; independent valuation, ideally more than one; and a Pre-Pack Pool referral or qualifying report, which is not optional under the 2021 reforms. Pre-packs that survive scrutiny are those drafted to survive it from the first board minute.
How much does it cost?
You can start drafting the pack straight away. A full pre-pack proposal pack is also available where the exposure is high and protecting the directors’ personal position is the priority.
Prepare to win. Plan not to fail.
Draft my pre-pack document pack →
One day · one matter · unlimited drafts · no subscription · you remain the litigant in person
Related guides: Individual Voluntary Arrangement (IVA) · Insolvency Statement of Affairs · The Director’s Liquidation & Restructuring Strategy · All civil court forms
See also: DIY company insolvency & rescue — every option compared, and how to cut the insolvency-practitioner fees.