10 October 2022
RED Alert - October 2022 – 1 of 5 Insights
At the time of writing, there have only been 7 published awards since the arbitration scheme created by the Commercial Rent (Coronavirus) Act 2022 (the Act) came into effect. Although each award will hinge on the individual facts and circumstances, it is useful to understand how arbitrators are applying the statutory principles. We have examined these awards and set out the takeaway points.
Signet Trading Limited Applicant and (1) Fprop Offices (Nominee) 4 Limited (2) Fprop Offices (Nominee) 5 Limited
KXDNA and 60 SA Limited
Total Arrears | Landlord proposal | Tenant proposal | Award |
---|---|---|---|
£1,805,820.30 | Pay arrears in full or, alternatively, pay £1,023,284. | £407,000 with remainder debt written off. | Pay £1,023,284 in 8 instalments i.e. 57% of the total arrears. |
Horsham District Council and Bills Restaurants Limited
Total arrears |
Landlord proposal |
Tenant proposal |
Award |
---|---|---|---|
£111,233.97, subsequently reduced to £80,000 |
Pay arrears in full with 12 month payment plan. |
£40,000 payable immediately with remainder debt written off. |
Pay £80,000 with 12 month payment plan i.e. 100% of the total arrears. |
Stratford City Shopping Centre (No.2) Nominee A Limited and Stratford City Shopping Centre (No.2 ) Nominee B Limited and Newspoint (Stratford) Limited
Total arrears |
Landlord proposal |
Tenant proposal |
Award |
---|---|---|---|
£49,297.27 plus interest. |
Pay arrears in full with monthly payment plan spread over 6-12 months. Immediate interest payment of £5,894. |
£20,729.74 with reminder debt written off. |
Pay £55,191.81 (inclusive of interest) in 9 monthly payments. |
As there have only been 3 substantive awards published that deal with the award of relief, it is difficult to establish any consistent principles in the application of the statutory principles by an arbitrator.
As the deadline to refer a dispute for arbitration under the Act elapsed on 23 September 2022, it is yet to be seen how many further awards are to be made.
10 October 2022
11 October 2022
by Emma Archer
10 October 2022