There is a noticeable trend among entrepreneurs, both sole proprietors and majority shareholders of insolvent but functioning companies, to agree with great reluctance to declare bankruptcy and transfer all proceeds to the trustee. They are driven by the faint hope of finding an investor, who will acquire the insolvent company from them, bail it out and pay them at least a small consideration for the shares or stocks being sold.

Such an expectation results in a prolonged crisis, increasing the amount of liabilities, and therefore leads to acting to the detriment of creditors. The consequences of such protractedness for owners and management boards of companies that do not file for bankruptcy within the deadlines set by the Bankruptcy Law are severe. Therefore, the education of entrepreneurs about the existence of the pre-pack procedure as a tool enabling the sale of a company without its debts to potential investors is, in our opinion, very valuable.

Pre-pack, or prepared decommissioning consists in the sale of the company to a purchaser, without the purchaser assuming responsibility for the debts of the insolvent company. It is also about relieving the indebted and insolvent entity from the unpleasant consequences related to its liquidation, preserving jobs, reputation developed over the years, contractors and market. A well-prepared liquidation procedure may be practically unnoticeable for economic participants, as the company does not stop its activity even for a moment.

The entire pre-pack process is carried out in a friendly manner for both employees and contractors of the debtor. In this respect, it resembles a classic takeover or sale of a business. However, what distinguishes pre-pack from the aforementioned operations is the fact that the purchaser is not liable for the liabilities of the acquired company.

If you have found a buyer who would be happy to buy back your business, however, because of the debts you have, the investor has become discouraged - a prepared liquidation may be the solution to this problem. With our help you will go through the process effortlessly.