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MPs’ concerns over pre-packs
BUDGET constraints risk undermining the work of the organisation responsible for investigating insolvent companies, a group of MPs warn in a report released today.
The business, innovation and skills committee said limited resources at the Insolvency Service affect its enforcement regime, sending the “the wrong message to delinquent directors”.
The committee also raised concerns about the monitoring of controversial pre-pack administrations, where a business is put into insolvency protection before being swiftly sold on to a new buyer in a pre-arranged deal.
“Greater transparency, higher levels of compliance, and a stricter regime of sanctions are needed,” said chairman Adrian Bailey MP.