Section 16 Arbitrator: assessment of “viability” and “solvency”I1

England and Wales

(1)

In assessing the viability of the business of the tenant, the arbitrator must, so far as known, have regard to—

(a)

the assets and liabilities of the tenant, including any other tenancies to which the tenant is a party,

(b)

the previous rental payments made under the business tenancy from the tenant to the landlord,

(c)

the impact of coronavirus on the business of the tenant, and

(d)

any other information relating to the financial position of the tenant that the arbitrator considers appropriate.

(2)

In assessing the solvency of the landlord, the arbitrator must, so far as known, have regard to—

(a)

the assets and liabilities of the landlord, including any other tenancies to which the landlord is a party, and

(b)

any other information relating to the financial position of the landlord that the arbitrator considers appropriate.

(3)

In making an assessment under subsection (1) or (2), the arbitrator must disregard the possibility of the tenant or the landlord (as the case may be)—

(a)

borrowing money, or

(b)

restructuring its business.

Annotations

Commencement

I1: S. 16 in force at Royal Assent, see s. 31(4)