Nice try guys, but the business is transferred as a 'going concern'. This means that it is being transfered from its previous state, without liabilities. I.e. it becomes a going concern from a previous position of unknown financial stability!
Otherwise, why would goodwill be transfered in Pre-Pack scenarios?
"The benefits of the pre-pack are easy to outline and there is empirical research available, that has been conducted on behalf of R3 (the trade body for the insolvency profession) which demonstrates that pre-packs will tend to deliver at least marginally better realisations on balance than administrations that trade (usually at a loss) prior to achieving a sale, whether to a third party or existing management in some form. Moreover, and this is often highlighted as one of its key benefits, pre-packs will tend to preserve the jobs of many, if not all, of the company’s existing workforce. This is partly due to the fact that (pursuant to employment legislation) the contracts of employment will transfer to the purchaser but also because the administrator will rarely have the ability to meet the monthly/weekly payroll for employees following appointment. In addition to this, there tends to be little or no interruption to the operation of a business and much less likelihood therefore of significant damage to its goodwill."
