Commercial Rent Arrears Recovery: An Insolvency Practitioner's Perspective

by DLA Piper - Noelle Petty, Associate The threat of a landlord levying distress over goods owned by a tenant in financial difficulty – entering premises and seizing goods found therein – has always caused concern for insolvency practitioners seeking to provide business rescue solutions. It has often been one of the reasons for tenants to seek the protection of a moratorium. However, ever since the courts have interpreted a walking-possession agreement to grant security rights to a landlord, sometimes even a moratorium has proved to come too late to preserve the tenant’s assets for the benefit of the company’s general body of creditors. Read more