Tenant insolvency – administration – rent – expense of administration

In our August 2013 issue – Commercial Leases [2013] Vol 27 Issue 6 at page 1955 we drew attention to Re: Game Station Limited (In administration) where the issue was whether rent payable on certain units which fell due for payment prior to the appointment of the administrators was to be treated as an expense of administration. The importance to the landlords was that if the rent was an expense of administration it would rank in priority and there was a prospect of some payment being made. If it was not, and the landlords were simply unsecured creditors, the prospect of a dividend was negligible. The trial judge found against the landlords but gave permission to appeal. That appeal is to be fast tracked to the Court of Appeal.