The Department for Business, Innovation and Skills (BIS) has delayed tackling "phoenix" companies until next spring due to industry opposition to reform.
The Insolvency Service proposed in March to reform "pre-pack" administrations by the autumn but this will be held back until April 2012, the Telegraph reports. In pre-pack administrations, companies about to go under are allowed to restructure and be sold to new owners, who are usually the company's existing management team. One of the reforms proposed by Ed Davey, minister for employment relations, consumer and postal affairs, is enforcing a three day notice period before a pre-pack deal can be struck. This would allow creditors to come forward to express concerns about any new de...
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