Pre-pack deals, where a company is immediately bought out of administration by a pre-arranged buyer, have dominated M&A in the print industry over the past 12 months leaving many creditors angry and out of pocket.

Detractors of pre-pack deals claim that best value for creditors is often not realised as administrators do not have the opportunity to test the market and search out the best offer.

Those in favour argue that it is often the only way to sell a business as a going concern and preserve the jobs of those working for the failed business.

However, from 1 January 2009, administrators should be more transparent about the sale process. In particular they should reveal why a pre-pack was the best option, providing creditors with details of rival bidders, the price paid, and, crucially, any connections that the new directors had with the former company.

The new guidelines, contained within the Statement of Insolvency Practice number 16 (SIP 16), have been hailed by the Insolvency Service as bringing greater clarity to the administration process.

Graham Horne, deputy chief executive, of the Insolvency Service said: "Pre-packs can be a good thing, as we agree with the view that in some circumstances they will improve returns to creditors. In addition they can help to preserve the business of the failed company, thereby saving jobs.

"However, we will be working closely with the bodies that regulate administrators to ensure that SIP 16 is put into practice. We will also be looking to use our enforcement powers to clamp down on any directors who misuse the administration process to disadvantage creditors or seek to gain benefit for themselves."