How to justify a pre pack sale
The article is a discussion of the issues that administrators must consider seriously before they can go ahead with pre pack administration. This is because many a times they are likely to face opposition from creditors who are opposed to such a move.

Many creditors may find a problem with the decision to sell a business shortly after appointing an administrator. The factors that an administrator ought to consider before making their mind on whether or not to follow this path of business remedy is an area that is still developing. This notwithstanding, an administrator will still be required to justify their actions when they have decided to take the path of a pre pack administration at the expense of other options such as business bankruptcy.

The administrator will be judged not by the most skilled professional in this profession, but by an average practitioner. There is a need to prove that the administrator has made an error which would not have been made by a moderately skilled practitioner.

The administrator is thus tasked with the duty of seeing to it that not only do they take reasonable care in selling the property of the business organization, but also that they do so at the right time.