When your company goes bankrupt, you have the option to make a restart. A pre-pack deal allows you time to find out if you can make a new start after your bankruptcy.
What is pre-pack?
With a pre-pack (short for pre-packaged), you investigate whether a new start is possible when your company goes bankrupt. You do this with the help of a ‘silent administrator'. In the meantime, your business will continue as normal. Once your company has officially been declared bankrupt, it can be sold quickly or a new start
can be made. This minimises the potential damage to your company. Suppliers can continue to deliver after a bankruptcy and your staff can continue working. The silent administrator is appointed as curator
by the court after the bankruptcy has been declared.
How does a pre-pack work?
It is inevitable that your company will go bankrupt. You ask the court who will be appointed curator for your bankruptcy. This ‘silent administrator’ investigates whether you can make a restart after bankruptcy. This will not be made public. Suppliers and customers do not know about the pre-pack deal. In the meantime, you can continue to do business and negotiate the sale of (parts of) your company. As soon as you are declared bankrupt, the ‘silent administrator’ becomes the curator. He can sell your company, or parts of it. Or you make a new start.
A number of courts deal differently with pre-pack. In addition, it is not always clear with pre-pack if it concerns an actual bankruptcy or a transfer. In the event of a transfer, all employees must be taken over. But if you make a new start after bankruptcy, you do not have to re-employ your staff. Therefore, pre-packs are currently not used often, but there are plans to make the pre-pack easier. This is stated in the revised Bankruptcy Act, but it is not yet known when this revision will come into effect.