Earlier this year, we reported on a decision limiting a secured creditor's right to credit bid purchased debt (capping the credit bid at the discounted price paid for the debt) to facilitate an auction in Fisker Automotive Holdings' chapter 11 case.1 In the weeks that followed, the debtor held a competitive (nineteen-round) auction and ultimately selected Wanxiang America Corporation, rather than the secured creditor, as the w
Pillar Denton Ltd & others v Jervis & others [2014] EWCA 180 (“Game Station”)
The outcome of this appeal has been awaited with a high degree of interest. The issue was the extent to which rent should be payable as an expense of an administration or liquidation; if it is payable as an expense, it sits near the top of the priority order for the distribution of the tenant’s assets, and will usually be paid in full. Otherwise, it is among the unsecured debts, and the landlord will have to wait for whatever dividend is ultimately payable.