Pre-pack procedure

Pre-pack stands for 'pre-packaged sale'. The pre-pack procedure was set up in practice for companies for which insolvency is inevitable. In a pre-pack, a prospective receiver (also known as a silent administrator), under the supervision of a prospective bankruptcy judge, investigates whether a relaunch of the company is feasible after bankruptcy is declared.

The appointment of a silent administrator for a pre-pack insolvency is not announced publicly. This allows a company to quietly work on its relaunch following insolvency and to negotiate with interested parties. This is why it is sometimes referred to as a flash bankruptcy in practice. However, as a result of various (European) judgments, the position of employees in case of such relaunches is uncertain. Therefore, the pre-pack is currently no longer part of common practice. Heron Legal will be happy to advise you on the current developments and possibilities regarding the pre-pack procedure.