Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how many pre-pack administrations were referred to the Pre Pack Pool in each week since May.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
There were 20 referrals to the Pre-Pack Pool between 1 May 2020 and 27 October 2020.
The table below shows the number of referrals for each week where referrals were received. For all other weeks there were zero referrals.
Referrals made to the Pre-Pack Pool between 1 May 2020 and 27 October 2020
Week commencing | Number of pre-pack referrals |
1 June 2020 | 1 |
8 June 2020 | 1 |
15 June 2020 | 1 |
29 June 2020 | 1 |
6 July 2020 | 4 |
13 July 2020 | 5 |
10 Aug 2020 | 1 |
24 Aug 2020 | 2 |
28 Sept 2020 | 2 |
19 Oct 2020 | 2 |
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether they will list all the meetings or communications that have taken place between the Insolvency Service and the Pre Pack Pool.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Pre-Pack Pool was established in 2015. Since then, the Insolvency Service has had numerous meetings and communications (in the form of e-mails, letters and telephone conversations) with the directors of Pre-Pack Pool Ltd and the Pre-Pack Pool Oversight Group. The Oversight Group comprises the Pool directors and representatives from the insolvency regulatory bodies, R3 the trade body for insolvency professionals and other interested stakeholders.
My reply to the noble Lord on 3rd August 2020 to Question HL7302 advised that officials from the Insolvency Service had attended three meetings with the Pre-Pack Pool Oversight Group in 2019 and one in 2020. Since that reply, they have had one further meeting with the directors of Pre-Pack Pool Limited.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how many pre-pack administrations were referred to the Pre Pack Pool in each week since the beginning of February.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
There were 16 referrals to the Pre-Pack Pool between 1 February 2020 and 24 July 2020. The table below provides a weekly break down of referrals for the period in question.
Referrals made to the Pre-Pack Pool between 1 February 2020 and 24 July 2020
Week commencing | Number of pre-pack referrals |
9 March 2020 | 1 |
13 April 2020 | 2 |
1 June 2020 | 1 |
8 June 2020 | 1 |
15 June 2020 | 1 |
29 June 2020 | 1 |
6 July 2020 | 4 |
13 July 2020 | 5 |
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, for each of the pre-pack administrations referred to the Pre Pack Pool since the beginning of February, what was the amount owed to unsecured creditors.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Applications to the Pre-Pack Pool are made in confidence and the Insolvency Service does not hold this information. However, if a company subsequently enters administration, details of amounts owed to unsecured creditors must be set out in a statement of affairs of the company, which must be filed at Companies House and made available on the company’s public record as soon as reasonably practicable by the administrator.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what support the Pre Pack Pool has received from the Insolvency Service; and what plans they have, if any, to enhance this support.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Pre-Pack Pool’s operation is overseen by the Pre-Pack Pool Oversight Group, which comprises representatives from the creditor community, the insolvency profession, insolvency regulators and officials from the Insolvency Service. The Insolvency Service also provides secretariat support to the Oversight Group.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how many meetings have taken place between the Pre Pack Pool and the Insolvency service in (1) 2019, and (2) 2020; and what subjects were discussed.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Officials from the Insolvency Service attended three meetings of the Pre-Pack Pool Oversight Group in 2019 and one meeting so far in 2020. The Pre-Pack Pool Oversight Group includes representatives from the Pre-Pack Pool. The meetings attended by officials discussed the operation of the Pre-Pack Pool and the Insolvency Service’s review of voluntary measures to reform pre-pack sales in administration.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 26 February (HL1663), what progress they have made on the measures announced in June 2019 to strengthen the role of the Small Business Commissioner.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is fully committed on fulfilling its manifesto commitment to?strengthen the powers of the Small Business Commissioner. We?still?plan to consult on?extending?those powers, to allow the Commissioner to advocate for and support small businesses,?as soon as we?are able to do so.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of businesses using pre-pack administration processes to buy back subsidiaries at a discounted rate while failing to repay creditors.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Insolvency Service has carried out an assessment of the impact of voluntary measures introduced in 2015 to improve transparency and confidence in pre-pack sales to connected parties in administration. The findings will be published in due course.
There is some protection in insolvency legislation for unsecured creditors in the form of the “prescribed part”, which is the amount of a company’s assets that must be reserved for the benefit of unsecured creditors when it enters administration.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the use of pre-pack administrations by businesses that have previously extracted large dividends through subsidiaries based in tax havens.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
There has been no assessment by Government of the use of pre-pack administrations by businesses that have previously extracted large dividends through subsidiaries based in tax havens.
The Insolvency Service has, however, carried out an assessment of the impact of voluntary measures introduced in 2015 to improve transparency and confidence in pre-pack sales in administration. The findings will be published in due course.
Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the impact of pre-pack administrations on SME creditors.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has not carried out a specific assessment of the impact of prepacks on SMEs. However, the Insolvency Service has reviewed the impact of voluntary measures introduced in 2015 to improve transparency and confidence in pre-pack sales in administration, including the impact on creditors and its findings will be issued in due course.