Are you thinking of appointing an Independent Evaluator? You'll have some questions...
In this article, Insolvency Partner and Independent Evaluator Malcolm Niekirk discusses the process of evaluation, answering some FAQs.
Advice for business
From Friday 30th April 2021, an administrator who is selling a phoenix pre-pack to a connected or interested party will require an independent evaluation, or creditor approval.
Frettens are able to act as an evaluator in these circumstances.
Please read our 'everyting you need to know' guide to evaluation here before proceeding.
The new regulations, The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 (TARoDetCPR) can be read here.
Malcolm Niekirk, Frettens’ resident insolvency guru and head of our Insolvency team is has some three decades of experience in insolvency and is regarded as one of the leading practitioners on the south coast.
He is qualified as an insolvency practitioner as well as enrolled as a practising solicitor.
Having spent time as a practising solicitor and partner, heading the insolvency teams at two large regional firms, Malcolm set up his own consultancy in 2016. In addition to that, he was also a director at Peter Hall from 2017, getting first-hand experience in a boutique restructuring and insolvency practice.
Having worked on both sides of the insolvency process, Malcolm and his team are uniquely placed to evaluate and offer advice in these matters.
Malcolm Niekirk will act personally as evaluator in such cases.
In these circumstances, time is of the essence. We can turn around an evaluation in two business days, once we have received the relevant information from the buyer and administrator.
We offer a fixed fee for a straightforward evaluation. The fee is calculated based on transaction value and will be agreed upfront.
Frequently Asked Questions about Pre Pack Evaluations
What is a 'phoenix sale'?
A phoenix sale is the purchase of an insolvent business by its previous management. The business goes bust, and then re-opens, very quickly, looking much the same as it did before. Understandably, people owed money from the failed business often think this should not be allowed. They are likely to think the new regulations are a step in the right direction.
What are the new regulations on phoenix pre packs?
New regulations on pre-pack phoenix sales, catchily-named The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021, came into effect on 30th April.
The new regulations affect any earlly ‘substantial disposal’ to a ‘connected party’ and have broad definitions of both.
A connected party includes:
If a substantial disposal is being made to a connected party (or their company) within the first eight weeks of an administration, then administrators need to either:
We offer a free initial meeting for all new clients, which can take place at either our offices, or over the phone. We have offices in Christchurch in Dorset and Ringwood in Hampshire with many of our clients coming to us from Southampton, Bournemouth, Poole and the New Forest as well as Winchester, Salisbury and London.
To set up your initial appointment, give us a call or fill in our online enquiry form.