Pre-pack receiverships: unravelled

Insolvency law's so-called "rescue culture" embodied in the pre-pack sale of insolvent businesses has recently come under criticism. The procedure is not explicitly prescribed for in statute and its evolution into an established insolvency practice can be traced back to a variety of origins, including Chapter 11 of the US Bankruptcy Code, and the policy initiatives behind the Insolvency Act 1986 and the Enterprise Act 2002. This article charts the legislative evolution of the current practice of pre-pack administrations to unravel the practice of pre-pack receiverships.