Statements of Insolvency Practice 16 (SIP 16)
The purpose of SIP 16 is to ensure that creditors are informed as to the reasons why a practitioner decided on a pre-packaged sale.
All insolvency practitioners are required to follow and maintain the guidance set out in Statements of Insolvency Practice (SIP), which set out required practice.
The decision as to whether a pre-packaged sale in administration (a pre-pack) is the appropriate course of action is a commercial judgement for the insolvency practitioner. The purpose of SIP 16 is to ensure that creditors are given enough information to understand the circumstances surrounding that decision and the reasons why the practitioner took that particular course of action.
The Insolvency Service carries out regular reviews of the operation of Statement of Insolvency Practice 16 (SIP 16) on pre-packaged sales in administrations.
The reports on this page examine the operation of the SIP by insolvency practitioners and the outcomes of enforcement procedures in pre-pack cases.