Business leases – rent – expenses of administration

Inevitably in the current difficult climate there is a focus on the complex interaction of insolvency and the commercial landlord and tenant relationship. This case is a helpful reminder of the some of the key principals regarding the payment of rent when a tenant is in administration or liquidation.

The background

The insolvent tenant company (T) was one of the largest nightclub operators in the UK and leased four properties from the landlord (L) for the purposes of its business.