On 27 July 2022, the European Union (Preventative Restructuring) Regulations (the Regulations) were introduced which gave effect to EU Directive 2019/1023 on restructuring and insolvency[1] (the Directive). The Directive’s principal objective is to ensure that all member states have comparable and effective frameworks in place for early warning and prevention of corporate insolvency.

Following the liquidation of BHS Ltd, the High Court was asked to consider whether a landlord could claim full rent as an administration expense following termination of the CVA.

Background

Wright and another (Liquidators of SHB Realisations Ltd) v The Prudential Assurance Company Ltd concerned three principal insolvency processes applicable to companies under the Insolvency Act 1986: