Game changer: payment of rent by administrators

By Julie Gattegno

An administrator who uses premises for the purpose of the administration must pay rent as an expense accruing on a daily basis: Game (Pillar Denton & ors v Jervis & ors [2014] EWCA Civ 180).  

Whether the liability for rent falls due before or after the date of the administration is irrelevant.

This means that administrators can no longer, tactically, put companies into administration just after a quarter day to avoid paying rent for that quarter as an expense while retaining occupation…

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