Rent incurred during the administration period has priority over other unsecured debts - recent decision of the Federal Court of Australia

Rent incurred during the administration period has priority over other unsecured debts - recent decision of the Federal Court of Australia

In what was a welcome decision for landlords in the current climate, the Federal Court of Australia recently ruled that rent was an expense “properly incurred” by the Administrators and accordingly given priority over other unsecured debts by virtue of s.556(1) of the Corporations Act 2001 (Cth) (Act).