Hello,

**Docker version:**
Version: 1.12.2
API version: 1.24
Go version: go1.7
Git commit: 8eab29e
OS/Arch: linux/amd64

**Docker info:**
Storage Driver: btrfs
Build Version: Btrfs v4.1.2+20151002
Library Version: 101
Logging Driver: json-file
Cgroup Driver: cgroupfs
Plugins:
Volume: local
Network: host bridge null overlay
Swarm: inactive
Runtimes: oci runc
Default Runtime: oci
Security Options: apparmor
Kernel Version: 4.4.21-68-default
Operating System: SUSE Linux Enterprise Server 12 SP2
OSType: linux
Architecture: x86_64
Docker Root Dir: /var/lib/docker
Debug Mode (client): false
Debug Mode (server): false
Registry: https://index.docker.io/v1/

**Issue:**
_docker config_
/etc/sysconfig/docker
DOCKER_OPTS="--insecure-registry=0.0.0.0/0 **--bip=127.12.7.1/24** --ip-forward=false --log-level=debug"

docker run -it --rm busybox /bin/sh

It fails with the following error:

docker: Error response from daemon: invalid header field value "oci runtime error: container_linux.go:247: starting container process caused \"process_linux.go:334: running prestart hook 0 caused "error running hook: exit status 1, stdout: , stderr: time="2016-11-27T20:51:30Z " level=fatal msg="**failed to set gateway while updating gateway: route for the gateway 127.12.7.1 could not be found: invalid argument**".

Note that using --bip=172.17.0.1/16 (which is default) or if I remove the --bip option shows no such issue.

Anyone has seen this or has a suggestion?

Thanks,
JH
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