Q&As

If a retail tenant is in administration, are the administrators liable to pay rent as an expense of the administration where the store is currently locked shut and unused due to the coronavirus (COVID-19) pandemic, but still contains stock and the administrators intend to re-open the store and begin to trade again once this is possible?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on: 16 April 2020
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An application to court for an Administration order gives rise to an Interim moratorium in respect of claims against the relevant company (paragraph 44 of Schedule B1 to the Insolvency Act 1986 (IA 1986)), save where an administrative receiver is appointed. The interim moratorium prevents creditors from bringing insolvency proceedings or claims before the court, though permission can be granted by the court to proceed with a claim. When a company enters administration, the moratorium is permanent (IA 1986, Sch B1, paras 41–42). This has the effect of dismissing any winding up petitions that are extant and preventing the company from resolving to wind up; from enforcing securities or distraining against assets without the consent of the court or the

Chris Bryden
Chris Bryden

Barrister, 4 King’s Bench Walk

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Administration order definition
What does Administration order mean?

A small scale alternative to bankruptcy or an individual voluntary arrangement whereby a debtor who is unable to pay a judgment that has been entered against him may apply for an order that the county court administer his estate.

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