McDermott Comment | Pre-Packs Reform Plan is Flawed, Say Experts


Aymen Mahmoud, partner at law firm McDermott Will & Emery, said:

“As we see the legislators turn their attention to modernizing the UK insolvency regime, there has been an obvious tightrope to be walked between protecting businesses as a going concern on the one hand, and protecting sophisticated creditors on the other and these tensions continue to be pervasive. The courts will no doubt need to be vigilant in their application of new rules and ensure that stakeholders act appropriately within the new pre-pack rules but also the new insolvency laws more generally. We would expect there to be a period of consolidation where the courts will work hard to interpret new rules to their intended effect.”