Financial Times FT.com

Clampdown on misuse of pre-pack rules

By Anousha Sakoui and Sarah O’Connor

Published: December 31 2008 01:32 | Last updated: December 31 2008 01:32

As the intensifying recession pushes more and more companies into administration, a government body has warned that it will take action against company directors that misuse the process to gain at the expense of creditors.

The statement from the government’s Insolvency Service comes as the number of companies in administration hit a record peak for the third quarter of the year.

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