Exclusive: research for the Guardian shows ‘pre-pack’ deals with former management also pay far less to creditors
The boss whose twice-bust business appears to be back
Insolvent businesses reacquired by their previous management in “pre-pack” administrations are much more likely to fail again and tend to repay far less to creditors, research for the Guardian suggests.
The study is the latest to raise questions about the practice of “ phoenixism ” – accounting’s controversial art of liquidating companies to allow directors to return with a new entity, free of debts. Continue reading...