Tenant insolvency – disclaimer of lease

This case raised two interesting issues, first whether a binding agreement to reduce the rent payable under a lease of commercial premises had been entered into and secondly whether the lease had been validly disclaimed.

The background

MK Airlines (MK) was formerly the parent company of MK Airlines Property (MKAP). Both companies went into insolvency procedures, MK went into liquidation and MKAP went into administration following a couple of unsuccessful CVAs and spells in administration.