What are the consequences of taking money from a rent deposit if the tenant company is in administration?
If administrators use leased property for the benefit of the administration, rent is payable to the landlord for the period of occupation, as an expense of the administration.
In London Bridge Entertainment, the court considered whether the administrators were obliged to top up a rent deposit where the landlord had taken monies from the rent deposit and applied the money against rent that fell due post administration and which would otherwise have been paid as…