Insolvency Service chiefs to crack down on abuse of controversial pre-pack administrations after tough criticisms from MPs
Insolvency Service chiefs have told MPs that they will crack down on insolvency specialists who abuse controversial pre-packaged administrations as the number of company failures soars during the recession.
Amid growing criticism that pre-pack administrations are secretive, lead to more job losses and give unsecured creditors a raw deal, the Insolvency Service’s chief executive Stephen Speed and his deputy Graham Horne, faced some tough questioning by MPs on the business and enterprise select committee.
They said the Insolvency Service would use new rules known as Statement of Insolvency Practice (SIP) 16 to police pre-packs.
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