The Pre-Pack Pool has warned that it will not survive because of the “government’s relaxation of insolvency rules”.
The Pool, which is intended to provide oversight to contentious pre-pack administrations, said that referrals remain low.
The Insolvency Service was meant to publish a report into pre-packs, toughening up the powers of the Pool, in the summer, but that has now been indefinitely delayed.
Referrals have remained low since the Pool was launched. Its recent annual report shows that of the 260 connected-party pre-packs in 2019 only 21, or 8%, were referred to the Pool, the lowest referral rate.
