SSRL Realisations Ltd – A Warning For Administrators?

An administrator? A landlord to an insolvent tenant? Consider the facts closely,

Background:

The tenant operated a restaurant (the Premises) out of The Brunswick Centre and was subject to a pre-pack administration. The first to third respondents were partners of the administrator, Zolfo Cooper LLP.

The administrators sold the assets and business of the tenant to Strada Trading Limited (STL), a newly formed subsidiary of the tenant. Subsequently the tenant granted a licence to occupy the Premises to STL, directly in breach of the alienation provisions of the lease. The administrators later sought formal permission to assign the lease, however this was (reasonably) refused by the landlord on the basis that STL had no trading history.