The Second-chance Culture and Beyond: Some Observations on the Pre-pack Contribution

Sandra Frisby

The pre-pack strategy has attracted considerable media attention in recent weeks, and tends to polarise opinion amongst the various stakeholders in corporate insolvency. The debate is an extremely intricate and multifaceted one, and merits rather more than a series of banner headlines: this article therefore focuses on one particular aspect of pre-packs, namely their contribution to the "second-chance culture" for both businesses and owner/managers of companies, and the consequences for insolvency stakeholders when, for whatever reason, the second chance proves to be abortive. The article draws on the author's database of actual cases of pre-packs to examine the long-term prospects for their survival and whether, in the event of a pre-pack "failure", the initial sale might nevertheless be considered to have offered the optimal outcome overall.

Law and Financial Markets Review, Vol. 3, No. 3, May 2009: 242-247.

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