I'm Sorry Landlord But Your Tenant May Not Make It Through The Night.

Whilst everyone from heads of state to taxi drivers can (and usually will) proffer an opinion as to whether the current economic climate meets whatever technical criteria the economists consider necessary to be labelled a “recession”, these semantics matter little to the growing number of landlords now facing the reality of dealing with tenants who enter into some form of insolvency administration.

Few were surprised when the debt-laden behemoth, ABC Learning Centres Limited, finally succumbed to its long bout of financial ill-health in the early days of what threatens to be a long and bitter winter of significant discontent.

The ABC Group scenario is far from unique – the appointment of administrators will often prompt the appointment of receivers and vice versa.  Nonetheless, many challenges arise for landlords in having to deal with tenants who are under the control of both administrators and receivers and ABC represents an instructive case study. 

Contact Darrell Jardine or Paul Betros or click on the PDF file to download a full copy of this alert.