Great news for commercial landlords
There is always a conflict between treating creditors of an insolvent company fairly and allowing insolvency practitioners sufficient leeway to facilitate a disposal of a business as a going concern. The general view is that such a disposal will always produce a better result for the creditors than the simple asset sale approach of a liquidation. Over recent years, this conflict has given rise to increasing tension between joint administrators trying to package up the profitable elements of high-street retail businesses and commercial landlords who want the rent to be paid if the tenant business continues to trade from the landlord’s premises under the protective bubble of an administration.
Two recent decisions — Goldacre (Offices) Ltd v Nortel Networks UK Ltd  and Leisure (Norwich) II Ltd v Luminar Lava Ignite Ltd  — have swung the pendulum of convenience towards insolvency practitioners and away from commercial landlords. Enshrined principles have allowed insolvency practitioners to duck and dive using old common law rules applied to the payment of an annual rent on a quarterly basis…
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Briefings from Gateley
The court fee for issuing proceedings in money claims over £200,000 will be capped at £10,000. Will this put you off issuing a claim for a disputed debt?
Gateley asks: ”Are there any similarities between negotiating an international super fight and a simple contract requiring a landlord to carry out some building works for a tenant?”
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.