Tenant insolvency – CVA – the landlord and tenant relationship

Thomas v Ken Thomas Ltd [2006] EWCA Civ 1504; [2007] 01 EG 94 (9 October 2006)

Tenant insolvency and the implications for landlords arising out of a company voluntary arrangement (CVA) can be complex and serious. The sector – particularly the landlord side of it – had hoped for some clarity from the litigation over the Powerhouse CVA and, in particular, the way in which parent company guarantees were sought to be avoided. See (2006) 20 Commercial Leases 1092. The subsequent administration of Powerhouse means that this issue may not now be tested in the courts.