In this article Andrew Bowen QC looks at the case of Edenwest Ltd v CMS Cameron McKenna and in particular, the duties of care involved in Pre-Pack receiverships. Pre-packaging refers to a sale of all or part of the business and assets of a company negotiated in principle while not subject to any insolvency procedure, but on the basis that the sale will be concluded immediately after the company has entered into such a procedure. The material arrangements, including the proposed sale, are substantially in place before the actual appointment of the administrative receivers and then put into effect immediately after it. Pre-packs raise difficult legal issues in respect of the relationship between the receiver and the company. In Edenwest Ltd v CMS Cameron McKenna Judge Hildyard considered the novel issue of whether solicitors advising the receiver in a pre-pack sale owed duties of care to the company. This article was first published in Greens Business Law Bulletin, Issue 130 (published June 2014) and is reproduced here with the kind permission of W. Green, The Law Publishers more...