In October 2020, the UK Insolvency Service announced the outcome of its review on pre-pack sales and the Government published draft regulations designed to scrutinise pre-pack sales to connected parties. The rationale behind this is the hope that it will increase creditor confidence; the same rationale behind the pre-pack pool (the ‘PPP’). In 2015, the Government introduced the PPP to address the general public’s lack of confidence in the insolvency and rescue regime. The PPP is voluntary, and the Government recently reported that applications to it are low, as such the public’s confidence in the pre-pack sale process has not improved.
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