Key Point

The UK Supreme Court has refused leave to appeal in the Game Group litigation relating to when rent due under a lease is payable as an administration expense. The law remains that such rent is payable on a "pay as you go" basis explained in our earlier Update.

Comment

The decision by the Supreme Court brings to an end the argument about the principles applicable to deciding when rent is payable as an administration expense. Although there may be difficulty in ascertaining facts relevant to the claims in each case e.g. when did an administrator cease to use a property most market participants agree the result achieved in the Court of Appeal was the right one.