Rent as an expense of the administration: an update
We reported in our last newsletter that the High Court has granted permission in the Games Station administration on the question of the circumstances in which rent and service charges are to be treated as an expense of an administration.
The current position, following Goldacre and Luminar, is that rent and service charges payable in advance and which fall due before the appointment of an administrator are not considered an expense of the administration, but where such rent falls due during a period when the administrator was occupying the property for the purposes of the administration, then the whole sum ranks as an administration expense.
In the Games Station administration, the court ordered that the arrears of rent falling due before the date of the administration were not payable as an expense in the administration and therefore ranked as unsecured claims. Rent falling due during the course of the administration was payable as an administration expense. The landlords were given permission to appeal on the first point and the buyers of the business in occupation of premises under licence from the administrators were given permission to appeal on the second point…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
On 7 April, Eric Pickles and Danny Alexander announced new powers for councils that, they claim, will enable 10,000 new affordable homes to be built.
The Sentencing Council has published its definitive guideline for the sentencing of environmental offences.
Analysis from The Lawyer
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.
New EU rules and lawyers’ increased comfort with digital formats are sparking a sea-change in the way law firms manage their documents