Administration — Moratorium and the Landlord's Position
Automatic moratorium: forfeiture, CRAR, and execution all require administrator's consent or court order. Rent as administration expense: if administrator uses the premises, rent is payable in priority over unsecured claims — insist on this in writing. Pre-administration arrears: only rank as an unsecured claim; focus on securing future rent as a process expense.
Liquidation — Disclaimer, Forfeiture, and Unsecured Creditor Status
No automatic moratorium in liquidation: landlord can forfeit without liquidator's consent. Disclaimer (IA 1986 s.178): liquidator can disclaim onerous lease; ends future liability; pre-disclaimer arrears provable as unsecured debt. Sub-tenant vesting order: apply within 3 months of disclaimer for new direct lease. CRAR within 3 months of winding up may be void.
CVA and IVA — Lease Compromise and Landlord Voting Rights
CVA approved by 75% of unsecured creditors by value: can bind landlords to rent reductions. Challenge within 28 days on 'unfair prejudice' grounds (IA 1986 s.6). CIGA 2020 Part 26A restructuring plan: cross-class cram-down can override dissenting landlord class. IVA: vote your proof of debt; challenge on grounds of material irregularity or unfair prejudice.
Practical Checklist for Landlords
Identify insolvency type (moratorium or not). Contact officeholder immediately — confirm arrears, ask about premises use and expense treatment. Submit proof of debt for pre-insolvency arrears promptly. Check sub-tenancies and charges. Identify guarantor/AGA — notify promptly. Consider commercial strategy: forfeit and re-let vs let liquidator disclaim.