After examining the use of pre-packs as an insolvency tool, the government has abandoned the idea of legislating to give notice to creditors in all pre-packs and concluded that:
"Pre-pack sales can offer a flexible and speedy means of business rescue and when used appropriately can be the best way of maximising returns for creditors."
The challenge that the Minister has laid down to insolvency regulators is to ensure that pre-packs are used "appropriately".
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