Posted: 03/03/2025
The case of SBP 2 S.À.R.L v 2 Southbank Tenant Limited [2025] EWHC 16 (Ch) highlights the importance of careful drafting and robust legal advice when looking to forfeit a lease.
Background
2 Southbank Tenant Limited is a WeWork company and the tenant in this claim. WeWork Companies LLC was a guarantor of the lease covenants. The guarantor company was essentially split following a restructuring under Delaware law, with the pre-split company referred to as the ‘dividing company’, and the two resulting corporate entities that emerged as the ‘surviving company’ and the ‘resulting company’. The ‘surviving company’ then filed a petition under chapter 11 of…
