The Business - 24/01/2010

Graham Stewart looks at 'pre-pack' insolvency and asks whether it's a lifeline or a loophole for bankrupt businesses. In a week that figures showed a 41 per cent increase in the number of Scottish businesses in distress, could 'pre-packs' be a way of avoiding going bust altogether and protecting some jobs in the process? Blair Nimmo, head of restructuring at KPMG, explains the process and the advantages pre-packs offer to companies in trouble. We hear from Nick Starling at the Association of British Insurers who's calling for greater transparency surrounding a process which often leaves unsecured creditors with unpaid debts. There are, of course, other options; Gavin Smith tells the story of how he bought Munro Cleaners, a company that fell into trouble at the end of 2008. And Gillian Sharpe reports on changing attitudes to corporate entertainment during a recession.