Govt delays 'phoenix' firms reforms

clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Why good advice relies on asking difficult questions

Why good advice relies on asking difficult questions

Difficult questions a 'core feature' of good advice

Ahmed Bawa
clock 21 November 2025 • 4 min read
Advice firm revenues hit £6bn in 2024 but job numbers fall

Advice firm revenues hit £6bn in 2024 but job numbers fall

Retail investment adviser posts across all firms fell to 37,441

Isabel Baxter
clock 21 November 2025 • 2 min read
Feel Good Friday: Castlefield sponsors and takes part in annual sleepout

Feel Good Friday: Castlefield sponsors and takes part in annual sleepout

Event has raised £28,334 so far

Professional Adviser
clock 21 November 2025 • 1 min read