Introduction
Many landlords are experiencing the difficulties caused by
tenants going into administration. Often their administrators seem
to ignore landlords' interests and lease terms when putting
pre-packs together and many let the buyers of the insolvent
business into the premises under informal licence arrangements,
putting the landlord entirely at the administrators' mercy when
it comes to the payment of rents. If they're lucky,
administrators will offer to pay rent on a monthly basis in
arrears.
Landlords are struck by how inappropriate it is that a
tenant's administrators can ignore the tenant company's
lease obligations in looking after the interests of the creditors.
The reason for the administrators' ability to ignore the lease
is the moratorium that a company in administration benefits from so
that creditors cannot continue to exercise their usual range of
remedies against the company in administration and this includes
landlords.
