Press Coverage - 24/03/2021
Pre-pack reforms fail to calm critics
In her role as vice-president of R3, Restructuring & Insolvency Partner Christina Fitzgerald recently spoke to The Times’ Alex Ralph, concerning new legislation tightening the governance of pre-pack sales.
An insolvency industry body has warned that weaknesses in reforms of pre-pack administrations risk “critically undermining” efforts to boost confidence in the controversial process.
Parliament yesterday approved legislation tightening the governance of pre-pack sales to connected parties, introducing mandatory independent reviews of deals by evaluators…
Christina Fitzgerald, vice-president of R3, said: “The lack of oversight around the suitability of individual evaluators risks critically undermining these reforms, as well as confidence in pre-packs more generally.
“As the legislation stands, an individual will be deemed qualified to be an evaluator if they think their knowledge and experience is sufficient. This isn’t enough and leaves these reforms potentially exposed to being exploited by rogues looking to carry out this role.”
Read the full article in The Times here (subscription may be required)