When you’re a consumer, it’s easy to run into debt issues. These debt problems might require you to get consolidation, bankruptcy, or other matters to fix this issue.
Companies also run into debt problems that require rescue. If your business is dealing with these problems, you need to look into the pre-pack administration process.
Here’s what you should learn about pre-pack administration and how it can help you with your business’ financial crisis.
What is Pre Pack Administration?
So what exactly is pre-pack administration?
This process involves selling off assets when you find yourself dealing with debt that brings serious threats. Selling off these assets to an interested party can save your company from the crisis and allow you to still operate. Here’s a very interesting site that explains the process and allows you to get the best results.
What Happens During the Process
When you understand pre-pack administration it’s easier for you to get through it unscathed. Here are a few points of the process you should remember:
1. Your Company Reaches a Crisis Point Which Makes Pre-Pack Administration Necessary
So what constitutes a pre-pack administration process? Most companies move forward with this process when creditors are threatening to confiscate assets or otherwise damage your business.
Pre-pack gives you the chance to declare insolvency on your terms so that you can move forward with a strategy that works for you.
2. Get a Valuation From a Professional
Even though this procedure happens during times that your business is compromised, you still need to make certain that you’re treated fairly with a quality deal. Hire a valuation professional so that you know exactly how much your company and all its assets are worth.
When you have this information you’ll be able to move forward with negotiations to create a plan that makes sense.
3. Hold a Creditor’s Meeting and Go Through With the Process
Before moving forward you’ll have to meet with an insolvency professional that can help you facilitate the process. Start with your valuation and then crunch the numbers with these professionals.
From there, they will speak to your creditors on your behalf in a formal meeting. After this meeting, you’ll see whether the creditors will accept the plan or if they have a counteroffer in mind.
Once these terms are hammered out you can move forward with the pre-packaging process and get the results that you’re looking for.
Get the Professional Assistance That You Need
If you’re looking into pre pack administration, the tips above will get you started. This is essentially a way for your company to file bankruptcy, so you should give it the same consideration and diligence you’d give a personal bankruptcy decision.
Now that you know what this process involves, it only makes sense to find a company that can bridge the gap for you. Start reaching out to professionals that can assist you.
Consider the points mentioned above to manage your pre-packing administration process, and visit our site for the latest and greatest business news.