The Federal Court has made orders relieving the administrators of retailer Colette from personal liability for rent in response to the COVID-19 crisis and the current uncertainty in respect of government policy about rent relief for tenants: see Strawbridge (Administrator), in the matter of CBCH Group Pty Ltd (Administrators Appointed) (No 2)  FCA 472, a decision of Justice Markovic of 1 April 2020.
What you need to know
The decision shows that the Courts are willing to frame appropriate orders, using s447A of the Corporations Act 2001 (Cth) and section 90-15 of the Insolvency Practice Schedule (Corporations), to assist administrators of businesses forced into hibernation by the COVID 19 crisis avoid personal liability.
This position will continue to evolve as governments announce and implement their plans in respect of commercial leasing arrangements in response to the COVID-19 crisis.
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