SIP 9, fee estimates and other reporting requirements
Alison Morgan of QAD shares some key points on issues around reporting, getting approval processes right and SIP 9, based on what she and her QAD colleagues see on visits to insolvency practitioners.
First let’s recap on the basics – insolvency practitioners will be aware that legislation allows for some costs and expenses incurred before an appointment to be paid after the start of the insolvency.
For administrations, the 2010 rules stated that to be allowable as an administration expense, the insolvency practitioner’s costs must be incurred with a view to the company entering administration. This would exclude any general insolvency or other advice. Although the 2016 rules don’t repeat this terminology, until there is new case law on the matter, insolvency practitioners would be wise to follow the precedents.