Wragge Lawrence Graham & Co

UK 200 2013 position: 25

AAA: Game Station — fair play?

The Court of Appeal has decided that rent accruing during a period of administration should be treated as an expense of the administration, irrespective of the date on which it falls due for payment. Administration expenses are paid by administrators in priority to liabilities owed to holders of security.

The decision in Jervis v Pillar Denton Ltd (Game Station) and others overrules the position in Goldacre and Luminar, so that landlords receive rent as an expense during the period that an administrator uses leasehold premises for the benefit of the administration.

Wragge & Co’s restructuring experts previously considered arguments landlords could run on the principles of Atlantic Computers after the Luminar decision…

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