KSA Group hold debate on pre pack administration vs CVAs

With H.M. Government’s Insolvency Service planning yet another review of the ‘current practices’ regarding pre-packaged administration sales (pre-packs), this thorny subject once again comes under the spotlight. The Insolvency Service estimates that 25 per cent of all administrations are pre-packs, of which around 85 per cent are sold-on to parties already linked to the company.

At the same time the Company Voluntary Arrangement (CVA) procedure, enshrined in law since 1986, remains a powerful and effective turnaround tool, yet less than 800 were entered into last year – a surprisingly low number for an economy full of stressed and distressed, debt- laden companies.

The Turnaround Management Association and KSA Group are hosting the event.

Following this will be a presentation from a protagonist from each ‘camp’ who will argue the merits of their case accordingly.

In the pre-pack ‘corner’: David Dunckley, Partner, Grant Thornton plc and ‘standing up’ for CVAs: Keith Steven, Founder & CEO, KSA Group Ltd.

The debate will focus on which instrument is more sound commercially more effective or morally more correct? Should current legislation be amended on pre-packs? The Insolvency Service are proposing a 3-day notice period for creditors, does this negate the pre-pack concept? What is holding back the number of CVAs in use? Is the Insolvency Profession unduly biased, and if so, why?

A lively debate will no doubt ensure and attendees will be encouraged to participate during the questions & answers session.

Following this, Alan Tilley, Principal - Bryan, Mansell & Tilley and Chair of the Standards & Admissions Committee (EACTP) will update the meeting on the recently launched EACTP (European Association of Certified Turnaround Professionals) accreditation programme.

Anyone wishing to attend can email Robert Moore at robertm@ksagroup.co.uk The event is free to guests of KSA Group