Tenant insolvency – administration – rent as an administration expense

Goldacre (Offices) Limited v Nortel Networks UK Limited (in administration) [2009] EWHC 3389 (Ch) (7 December 2009)

Although the case of Good Harvest above will have disappointed landlords, this case will please them and restore some balance. It will, however, be of concern to insolvency practitioners who use a part of demised premises for the purposes of the administration. The judge decided that the administrators must pay rent in full as it falls due, usually quarterly in advance.