'A Comparative Look At Pre-Packs In Selected Jurisdictions' - Jersey

Partner Marcus Pallot discusses 'pre-packs' in Jersey in this Special Report with INSOL International.

1. What measures are available in your jurisdiction to allow struggling businesses to enter into a "pre-pack"?

Jersey does not have a formal administration regime and neither the Companies (Jersey) Law 1991 nor any other legislation provides for a specific rescue remedy equivalent or similar to administration. The one Jersey statutory route closest to administration is the remsie de biens. That requires the applicant to have Jersey situs real property, to be able to realise it to pay off secured creditors in full and is an old remedy not designed nor suited for the rescue of a going concern. Notwithstanding the lack of a specific rescue tool under Jersey law, practitioners have utilised and developed the process around the statutory just and equitable winding up (just and equitable) so that on a number of occasions it has been used in effect to conduct