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24/02/2014

GAME administration – R3 comments

Responding to this morning’s decision in the GAME administration expenses case, Phillip Sykes, deputy vice-president of R3, the insolvency trade body, says:

 “The GAME decision provides some of the clarity insolvency practitioners have been seeking on administration and liquidation expenses.”

 “Treating rent as an administration expense may mean a smaller pot for a business’ creditors as a whole, but at least the administrator will now know, and be able to make provision for the costs involved, in an administration. Extra clarity can make the difference between a business being rescued or not.”

 “We are very pleased to see that the court has backed the common-sense ‘pay what you use’ principle on rent in administration. Recent court decisions had taken administration expenses in the opposite direction. After this decision, administration expenses should be a fairer deal for landlords and businesses.”

 

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.