A Comparative Analysis of Anglo-Australian Pre-packs: Can the Means Be Made to Justify the Ends?
Whereas pre-packaged administrations have been prevalent in the UK for years, Australia's voluntary administration regime has been more restrictive of the practice. This article analyses the evolution of UK pre-packs, why UK-style pre-packs are not prevalent in Australia and the challenges for UK and Australian lawmakers in striking the right balance with pre-packs in their respective administration regimes. Building upon this analysis, the article proposes a mechanism that might make ‘connected-party’ pre-pack business sales work more fairly for stakeholders—that is, by obligating a connected-party purchaser to make a future-income contribution in favour of the insolvent company whose business has been ‘rescued’ by a pre-packaged sale in administration. Copyright © 2012 INSOL International and John Wiley & Sons, Ltd.