A “Pre-Pack” administration is a fast track administration which is aimed at avoiding a failing business being sold on the open market. Instead the Insolvency Practitioner lines up an advanced purchaser to take over profitable parts of the business with the company going into administration simultaneously with the sale.
Given the current economic conditions many commercial tenants are facing real difficulty in meeting their rental obligations. As such Landlords are now more than ever having to consider what action should be taken, against whom and when. This article aims to give a whistle stop guide as to what the options might be and some of the pros and cons that apply to each.
In the current economic climate the ability to break a Lease before the contractual term expires is something of great value to a Tenant. Having managed to negotiate a break clause into the Lease why is it then that many Tenants fall into the trap of failing to exercise the break clause properly so that the Lease continues and the benefit of the break clause is lost? What follows gives a flavour of some of the pitfalls that the Tenant will face.
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