
How NOT to do a Pre-Pack Insolvency Arrangement: Bad Pre-Insolvency Advice
A recent Victorian Supreme Court case, Intellicomms, shows the dangers of poor pre-insolvency advice and entering into a pre-pack without carrying out sensible due diligence. Here we explain the implications of this case for directors, the appropriate valuation approach to avoid liquidator claims for creditor-defeating dispositions, and what all this means for pre-packs in general.