Money: Pre-packs – 31st December 2008

Andy Verity and Mickey Clark present this morning’s business stories, including:
It seems that for struggling companies pre-packs are all the rage. A pre-pack is a process where a buyer is lined up before a business goes into administration. But as more companies go under, are some companies doing it just to shake off their creditors and get out debt free?
It’s been a big year for private equity. At the start of 2008 it looked like nothing could hamper the runaway success of these serial deal makers. But is the party really over for private equity after the credit crunch kicked in? Also on the programme two separate mergers between building societies are going to be rubber stamped later today. The Chelsea and Catholic societies are tying the knot, as are the Yorkshire and Barnsley Building Societies
As the oil price dips below $40 a barrel, and petrol prices fall to a three year low, is OPEC’s warning that a sharp drop in demand will lead to a “price time bomb” accurate?

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