Goldacre (Offices) Limited - When Post Administration Rent Is Payable As An Expense

Facts Of This Case

Prior to administration, Nortel had entered into two long leases with the landlord, Goldacre, in respect of two properties. Following administration, Nortel continued to use part of the premises in both of the demises for the benefit of the administration. All rents were paid up-to-date, albeit late so far as the September quarter rent was concerned. This case concerned the payment of future rent and addressed three questions:

• Whether future rent was payable as an administration expense?
• If so, whether the rent so payable should be restricted by reference to the company's period of administration occupation, or whether it extended to the full amount of quarterly rental payments falling due during the administration occupation?