Home > Legal Library > Abstract




Join Matindale-Hubbell Connected


Pre-Packs and the “New and Improved” SIP 16



by Jennifer Kafcas
Fried, Frank, Harris, Shriver & Jacobson (London) LLP - London Office

November 11, 2013

Previously published on November 12, 2013

A new Statement of Insolvency Practice 16 ("SIP 16") relating to pre-packaged sales in administration ("Pre-Packs") came into force on 1 November 2013. The changes primarily relate to the increased disclosure obligations that an Insolvency Practitioner (“IP”)/Administrator must make to creditors of the underlying company and aim: (i) to promote transparency when dealing with an IP/Administrator throughout the pre-packaged sale process; (ii) to ensure (as far as possible) that fair value is obtained for assets sold; and (iii) to ensure that all creditors and other stakeholders of the business are confident that the IP/Administrator has acted professionally and objectively. SIP 16 requires that all communications from an IP/Administrator to creditors should aim to be clear, full and timely and, in addition, explain what has happened to the assets of the company.


 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

View More Library Documents By...

 
Practice Area
 
Bankruptcy
Business Law
 
Fried, Frank, Harris, Shriver & Jacobson (London) LLP Overview