Landlords gain ground in Colorado Group administration

The recent decision of the Supreme Court of Victoria in Re Colorado Group Limited [2011] VSC 552 has clarified the circumstances in which a court will grant leave to a landlord to recover possession of a property from a company in administration under section 440C.

Executive Summary

The decision in Re Colorado Group Limited demonstrates that a Court may grant leave to recover possession where:

• the property represents a minor part of the undertaking of the company in administration;
• by reason of the expiry of the leases, there is no goodwill to pass on to a purchaser under a DOCA (subject to a successful section 444F(4) application);