What is the SIP 6 Report For Creditors? If you are a creditor of an insolvent company or a bankruptcy, Oliver Elliot can help you address your claim and concerns arising from the insolvency.
The SIP 6 Financial Report For Creditors is a report on the company’s financial position when creditors appoint a Liquidator.
What Is A SIP 6 Report?
A SIP 6 company financial information report is the information that needs to be provided to creditors when a decision is being taken on the appointment of a Liquidator in a Creditors Voluntary Liquidation.
Creditors Voluntary Liquidation is not the only appliable Liquidation procedure. It could also be applicable in a Compulsory Liquidation but usually, this process will be undertaken by the Official Receiver who, unlike an Insolvency Practitioner, is not required to follow the Statement of Insolvency Practice Number 6.
What Information Needs Inclusion In A SIP 6 Report?
A SIP 6 financial report needs to cover two key points for creditors; the reason for the insolvency of the company and disclosure of its up-to-date financial information as follows:
- The date on which the insolvency practitioner was formally asked to help in the procedure to place the company into Creditors Voluntary Liquidation.
- The individual who issued those instructions to the Insolvency Practitioner to assist.
- Full details of the sums paid by anyone and disclosure of such parties relating to the assistance that the Insolvency Practitioner is providing to the company.
- An explanation and disclosure of the company’s recent trading and financial history that is going into Creditors Voluntary Liquidation, including its recent years’ financial accounts.
- Details of the reasons for the company needing to take insolvency advice and go into Liquidation.
- Details of the company’s structure including disclosure of connected, associated and parent companies.
- An account and explanation of any material transactions conducted in the twelve months prior to Liquidation, other than in the ordinary course of business.
- Provision of a statement of the company’s affairs which incorporates a deficiency account reconciling the position shown by the most recent company balance sheet to the deficiency in the Statement Of Affairs that will be signed by the Director(s) and which identifies specific disclosure of the names and professional qualifications of any valuers whose valuations have been relied upon for the purpose of the statement of affairs and a summary of the basis of valuation adopted.
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