As the first May bank holiday weekend began, the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 (the Regulations) were enacted and came into effect for all companies entering administration on or after April 30, 2021. The Regulations are, in the main, a policy response to enhance independent scrutiny of so called phoenix transactions.
The Regulations are a welcome progression from existing, non-mandatory measures that have failed to make a meaningful impact. However, as this article sets out, there is a series of missed opportunities in the Regulations that could undermine their effectiveness and should be addressed in any subsequent amendments.
The Basics
Pre-packs
A pre-pack administration is an a…
Read the full article at: https://www.sidley.com/en/insights/newsupdates/2021/05/taming-the-phoenix-new-prepack-regulations-come-into-force
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