Pre-pack proceedings are without prejudice to workers’ rights under Union and national law, including the involvement of workers’ representatives. Pre-pack proceedings should be governed by statutory or regulatory provisions and should be understood as proceedings in which the transfer of all or part of a business is prepared with the assistance of a monitor under the supervision of the court or competent authority, prior to formal insolvency proceedings being instituted with a view to the liquidation of the assets of the debtor. While the primary objective of the pre-pack proceedings is to enable the debtor’s assets to be liquidated by means of the sale of the business, or part thereof, as a going concern in the context of insolvency proceedings in order to satisfy the claims of all the creditors to the greatest extent possible, it can also serve to preserve employment.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
