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Welcome /  Blog /  2013-12-doc12 SIP 16 as example for future Dutch legislation

2013-12-doc12 SIP 16 as example for future Dutch legislation

What in common language in the Netherlands is called ‘pre-pack’, is spreading like wildfire. Early July 2013 I was interviewed on Dutch TV about the pro’s and con’s of such prepacks. See Archive 2006-2013, document 2013-07-doc5, containing some of my preparatory notes. There I indicated the upcoming renewal of the English Statement of Insolvency Practice 16 (or: SIP 16). The renewed rules have come into effect on 1 November 2013. Core of the new rule is that insolvency administrator should be transparent in every aspect of an pre-pack administration sales. He or she should give a clear, full and timely (7 day notification limit) statement. SIP 16 also contains pre- and other post-appointment duties. In the Netherlands a consultation has been launched in October, open till mid January 2014, on the draft for an Act on the Continuity of Businesses (WCO I), suggesting the establishment in the Dutch Bankruptcy Act of a (sort of) pre-pack proceeding. Curiously, the draft does not contain a duty for the administrator to report afterwards, but in the Explanation it is foreseen that the informal group of supervisory-judges in insolvency (Recofa) will set (binding?) guidelines. Put aside the weak legal basis of the duty to report, it seems clear that Recofa should take a look at SIP 16. SIP 16 - 1 November 2013