Further Developments In Administration Expenses

We have covered the issue of claiming rent against administrators on a number of occasions. However the issue of how much rent administrators of insolvent companies are obliged to pay remains a developing legal issue.

The Administration of the retail computer company, Game Group, has created a substantial amount of litigation (not least the earlier Charles Russell case of Game UK v Lazari [2012]). On the 1 July 2013 the High Court (Chancery Division) heard an application by administrators for directions and, when doing so, gave the landlord respondents permission to appeal to the Court of Appeal on the issue of the extent to which rent and service charges falling due both before and after the appointment of administrators were to be treated as expenses of the administration.