First, the not-so-great news in figures:

The Commercial Rent (Coronavirus) Act 2022 provided tenants in the retail and leisure sectors who had subsisting rent arrears incurred between March 2020 and August 2021 with immunity against enforcement action from landlords. However, that immunity was only for a period of 6 months from March 2022. During that window, either landlord or tenant were able to refer the matter to arbitration if they did not come to a commercial settlement.

The final date for arbitration referrals was 23 September 2022.

• Commercial rent arrears continue to accumulate as a result of the pandemic, such that arrears are estimated to reach £9 billion by March 2022 and comprise a much larger slice of the typical debt stack than they did pre-pandemic.
• The UK government has proposed a binding arbitration scheme to help resolve the arrears and further extend the existing protections from enforcement and insolvency procedures that

In addition to the extension to the commercial eviction ban until 30 June 2021, the UK Government has now also extended the moratorium on commencing winding-up proceedings until 30 June 2021.

You may view the regulation from the UK Government at gov.uk.

“Government gives businesses much-needed breathing space with extension of insolvency measures”

The UK government has announced an extension of the following temporary insolvency measures introduced by Corporate Insolvency and Governance Act (CIGA), 2020.

Highlights include:

Recent insolvencies remind us that, when a seller of goods is unpaid, the question of possession leaps to the foreground. There is little value in a claim against an insolvent buyer for damages or for the price.

We know that landlords have been waiting to find out how they can legitimately pursue arrears from their tenants. It’s been a long wait for the publication of the Corporate Insolvency and Governance Bill.

Insofar as commercial property rent claims are concerned, the crucial points are:

Obtaining a favourable arbitration award often proves to be only half of the battle. Facing obstructive counterparties refusing to honour awards, often based in jurisdictions where enforcement is slow, difficult and uncertain, is a source of regular frustration to those pursuing claims in arbitration. That is why anyone involved in international trade should be familiar with the variety of measures available to enforce their awards.

Oil price movement through 2014 and into 2015 is a consequence of market fundamentals. Europe’s continued economic woes, paired with the slowdown in China’s economy, have led to a fall in demand for oil.

At the same time, the growing U.S. shale-oil boom (over which OPEC has no control) and the pick-up in drilling in Libya have led to an excess of supply. However, in the past few months the issue has switched from how quickly oil prices have fallen, to how much further they have to fall.

Judgment in the Court of Appeal case of Pillar Denton v Game Retail- about rent due during the administration of Game was handed down yesterday. It is a landmark ruling for administrators, on the thorny issue of the payment of rent during the period of the tenant’s administration.