Corporate Tenants in Financial Difficulties Landlord Issues
By Emma Bucknall and Alex Morris
With the current turmoil in the financial markets, landlords are increasingly concerned about the financial position of their tenants and whether the next quarters rent will be forthcoming or not. The number of companies entering into administration, and other insolvency procedures, is on the increase and many landlords will find themselves with tenants who are subject to such procedures.
This article looks at and considers:
• a landlords potential exposure when a corporate tenant is facing financial difficulties;
• the legal remedies available when a corporate tenant defaults on payments in a non-insolvency situation;
• how a corporate tenants insolvency, in particular administration, impacts on such legal remedies; and
• other practical solutions available to a landlord when dealing with financially troubled corporate tenants