Author

Sebastian L. Busa

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In summary In our previous alert we discussed how Justice Markovic in the Federal Court of Australia had granted the administrators of retailer Colette Group relief from personal liability for rent in respect of 93 stores.On 15 April 2020, Justice Markovic in the Federal Court of Australia granted orders extending the relief for the administrators for a further three weeks until 6 May 2020. The administrators also have the benefit of a direction that they are justified…

In the matter of Bar Machiavelli Pty Ltd (Administrator Appointed) [2018] NSWSC 1395

Background

  • Bar Machiavelli Pty Ltd (Administrator Appointed) (Tenant) operated a bar and restaurant business under the name Bar Machiavelli from the leased premises.
  • In June 2018 the sole director of the Tenant appointed a voluntary administrator to the Tenant.
  • Two parties put forward proposals for deeds of company arrangement (DOCA proposals).
  • Each DOCA proposal involved an assignment of the lease to the proponent.
  • The voluntary administrator considered one DOCA proposal to be more advantageous to the other but was unable to recommend that DOCA proposal to the creditors because the landlord would not consent to assign the lease to that proponent.
  • An application was made to the court for an order the landlord consent to the assignment of the lease to the proponent with the more advantageous DOCA proposal (PPB).
  • The landlord did not consent to the assignment to PPB on the basis that it considered the financial resources and retailing skills of PPB to be inferior to those of the Tenant.