Rent payable in administration, Court of Appeal ruling in GAME

Lee Manning, restructuring partner at Deloitte comments:

“Today’s ruling brings to an end a period of uncertainty over what counts as a cost of administration, with rent liable on a pay-as-you-go rather than a quarterly basis. It is far more equitable for an administrator to pay for what is used during an administration and reflects how administrators have to contract with non-landlord creditors for supplies and services.

“Potentially this may even reduce the number of pre-packs where the liability for an entire quarter’s rent had forced companies and administrators to sell a business more rapidly, and creditors could see benefits from fewer pre-packs.”

                                                      End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.