My landlord wants to kick the company out of the premises because of a proposed Company Voluntary Arrangement
For years landlords have had a protected place in insolvent situations. A landlord has, previously, been allowed to distrain or forfeit a property lease (without a court appearance) and irrespective of whether or not a Company Voluntary Arrangement (CVA) had been proposed - landlords have always been problems in insolvent situations.
This former power of landlords had meant that many possible CVA's were non-starters if there were material arrears of rent due to the landlord.
The new rules - You can now avoid landlord problems - Stop him in his tracks!
- In the moratorium period no landlord to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company (except with court permission).
- If the CVA is approved the landlord becomes bound by the agreed CVA proposal.
Because of these new rules landlords can be expected to devise new ways of operating which might include:
- Taking out debentures for sums of rent arising from time to time.
- Insisting on higher security bonds when granting leases in the first instance.
If you are considering proposing a Company Voluntary Arrangement for your company and anticipate that the landlord may be difficult contact Purnells for FREE INITIAL ADVICE.