In a recent example we at The Pre-Pack Pool received a jpeg of an applicant’s passport photo, a copy of a bank letter in an obscure foreign language and the name of the old company, nothing more!
Fortunately, the guidance notes issued by The Insolvency Service which accompanied the regulations actively encouraged more communication between all parties. This has helped us ensure that all applicants get a ’fair hearing’. As insolvency professionals, ICAEW insolvency practitioners (IPs) have a vital role to play in this regard. Often when our evaluator requests further information they are directed to the IP acting as the proposed administrator by either the applicant or occasionally an independent advisor such as a solicitor.
So, what are the common faults / missing information and how can you assist applicants to get it right first time?
Basic, but essential information is often missing such as:
- A business plan
- Asset schedules
- Full disclosure of assets being acquired
- Valuations
- Creditor lists
- Evidence of charges (or confirmation of none)
Where any IP advises a potential connected buyer, and is aware that they are considering using The Pool, they should direct them to thoroughly read the Quick Start Guide and the Insolvency Service's Guidance Notes. Both of which are available via the Pre-Pack Pool website.
All the information is there in simple terms, yet so often it is obvious that the applicants have just skimmed over it and submitted what they think we need, or just what they have readily available.
All information received from IPs is kept confidential from the applicants and vice versa unless we are specifically asked to circulate it. Any extra background information the IPs can send us is therefore secure and welcome, and may save the client the costs of a second application at worst.
Stuart Hopewell
Director, Pre-Pack Pool Ltd