Rent as an administration expense - Goldacre
Commercial landlords and insolvency practitioners are all alive to the effects of the decision of HHJ Purle QC in Goldacre (Offices) Ltd v Nortel Networks UK Ltd  EWHC 3389 (Ch) (07 December 2009), that rent is an administration expense when it falls due during the administration.
Gabriel Moss QC has however written a fascinating analysis in Insolvency Intelligence ((2010) 23 (5) Insolv. Int. 76), concluding that Goldacre failed to follow the Court of Appeal's approach to administration expenses in Re Atlantic Computer Systems plc, which he says was unaffected by the House of Lords decision in Re Toshoku Finance (UK) plc (in liquidation). Accordingly, he argues, the court retains a discretion whether or not to treat rent, a pre-administration liability arising at the time the lease was executed, as if it were an administration expense.
Goldacre's consequences were not an obvious triumph for the rescue culture and perhaps were due to a logical flaw. Can we now return to the common sense of the courts' discretion?
Date: 15th June, 2010
Articles from this Author
1st November, 2018
Budget 2018 - HMRC preferred creditor in insolvency
23rd March, 2018
20th July, 2017
Recast European Insolvency Regulation
26th June, 2017
The Recast European Insolvency Regulation (the “Recast EIR”)
Contact a Partner
Season’s Greetings and Happy New Year from everyone at Mercer & Hole pic.twitter.com/x4o1o9tbWP
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole