Lehman's adminstrator still paying rent at Canary Wharf-why?

[johnfm]

http://business.timesonline.co.uk/tol/business/ind...


Why would the administrator still be paying rent for the Lehman Brothers building? Are Lehman Brothers still trading?

If I was one of the other creditors I'd be a bit pissed off.

[NoelWatson]

johnfm said:

http://business.timesonline.co.uk/tol/business/ind...


Why would the administrator still be paying rent for the Lehman Brothers building? Are Lehman Brothers still trading?

If I was one of the other creditors I'd be a bit pissed off.

"Lehman Brothers, which has a building at Canary Wharf, collapsed in September, though the administrator is still paying the rent. Nomura, the Japanese bank that bought part of Lehmans, is debating whether to remain at the site.



I know that some Nomura people moved to Canary Wharf recently, but am not sure to which building.

[Zod]

The administrators and a large number of Lehman employees are still in the building unraveling transactions. The administrator can treat the rent as an expense of the administration.

[johnfm]

Cheers Zod.

[AndrewTait]

I know some occupants of CW have recently had their rents increased. The company I work for has just reorganised it's office space in order to reduce the SQ FT'age required, thus keeping the rent bill the same.

They moved their data centre out of CW and split it between 2 sites - one in Birmingham, the other in reading. This freed up an entire floor.

[DogChops1]

I'm in that very building right now. Theres a few different companies here (I came in after Lehmanns left, and work for one of the other companies) but I think there have been for a while. There's a lot of empty floors as well, presumably the ex-Lehmanns, although like the man said above, the administrators and a few ex-Lehmanns are still scraping up the mess. Don't really care who pays for it all as long as I get paid for my work!

Cracking view from my desk!

[NoelWatson]

http://www.ft.com/cms/s/1/20c2b660-1a70-11de-9f91-...

[johnnywb]

It's as Zod says. ONce a company goes into administration, they would clearly, normally no longer pay any rent. Where the administrators want to continue using the premises, for whatever reason, whilst they sort the company out, it becomes a cost of the administration and they continue paying the rent, the reason being that otherwise the landlord could throw them out.

[Jsys]

Arrrrrrgh, he talks just like Gordon Brown. A conspiracy I tell thee.