New Guidelines for ‘Pre-Pack’ Administrations

14 May 09

bridgebr

On 1st January 2009 new guidelines were introduced to regulate the disclosure of information by an administrator in pre-packaged sale of a business and assets in an administration. This procedure is often referred to as a 'pre-pack.' The new guidelines are contained within the Statement of Insolvency Practice 16 ("SIP 16") and require an administrator to explain to creditors the background to the appointment and the reasons why the 'pre-pack' was the chosen strategy. Bridge Business Recovery LLP have commented on the impact of SIP 16.