The government is facing pressure to bolster the rules around pre-pack administrations after figures showed that a voluntary scheme was being shunned.
Only 11% of eligible cases were referred to the Pre Pack Pool last year, its annual report shows, with its directors acknowledging that there are no penalties to compel purchasers to make referrals.
The pool was set up in 2015 to review pre-pack administrations where companies are sold to a connected party, in an attempt to bring transparency to an insolvency process in which creditors are kept in the dark.
