If the lease is not deducted, the rent is treated as an unsecured debt. However, where the premises are used for the purpose of carrying out the liquidation, the rent may be claimed as a liquidation effort and shall apply at a daily rate as long as the premises are used for those purposes. This is an advantage for a lessor, as liquidation costs occupy the second place on the list of priorities. When an insolvent business cannot be sold as a bankrupt business, liquidation serves as a vehicle for the sale and liquidation of the company`s assets. There are three different types of liquidation: at the time of commencement of insolvency proceedings, leases of premises in which the debtor operates are considered to be agreements of major, or even vital, importance for restoring the debtor`s economic damage. The court administrator/liquidator is responsible for analysing the possibility of such contractual obligations taking into account the new financial environment facing the tenant and is strictly responsible for the decision to maintain/terminate the contracts, based on the consequences that such a decision would have on maximising the value of the debtor`s assets, without taking into account social or economic pressures. 1998, 1994, 1988, 1988, 1988, 1988, 1988 Once their business is liquidated, directors with a secured lease are generally liable: in accordance with the provisions of section 87, confirmed by the provisions of section 123 of the Insolvency Law, the debtor may only continue its current business during the observation period. It is therefore essential for the tenant to maintain the premises in which he currently operates, and the receiver should take this into account when deciding whether to maintain or terminate a lease. As part of the layout of their company`s premises, a director often signs a rental guarantee with the lessor. This guarantee covers the company`s obligations for things like: A landlord does not have the right to take possession of the tenants` property and sell it to cover the unpaid rent. However, some newer leases may now require the leasing company to grant a GSA at the same time as the lease was awarded.

Depending on the wording, this may give the owner the right to recover furniture and possibly housing. A well-developed document, which offers a guarantee of assets, can offer protection to the landlord in the event of the insolvency of his tenant. Problems arose in 2009, when TMG did not pay the rent due. On 21 January 2009, Ellerine Brothers TMG terminated, under the lease agreement, the correction of the infringement and the payment of the outstanding amount within 7 days, on pain of terminating the lease. Overall, a lessor`s rights depend on the terms of their lease. Always include specific provisions for liquidation, administration or administration in a commercial lease agreement. Remember that if the landlord has not given the tenant the termination indicated in a commercial lease agreement before the application of a re-entry right, the tenant can appeal against the lessor and ask the court for the circumstance. With respect to rent arrears and other amounts due under the lease, which were generated prior to liquidation, unsecured lessors are again considered unsecured creditors. The lessor is asked to provide proof of debt and, if funds are available after the liquidation of the company`s assets, they receive a dividend with the other unsecured creditors. Uns liquidated sums, such as for example. B construction claims can also be added to the proof of debt form.

Unsecured creditors are unlikely to receive the full amount owed to them. So, if you`re a manager, how can you avoid going bankrupt if your company is in liquidation? Well, it depends on whether the company is already in liquidation or not. . . .