Huge Test Case for the PPS Act
For all businesses that use (or should use) the recently nationalised Personal Properties Security Register (PPSR) to help register their ownership or interest in assets that they sell or loan to others on credit, we suggest that you keep a very close eye on the outcome of a case being brought before the Supreme Court of NSW by Korda Mentha - receivers for the collapsed mining industry firm the Forge Group.
The case revolves around the supply of 4 gas turbines (under lease to the Forge Group) by US firm, APR Energy. The turbines are worth an estimated $50 million, but were not registered by APR Energy on the PPSR, which would have secured their interest in those assets and enabled the turbines to be returned to them or possibly on-leased to another business.
At the time, the cost to register these assets under the Personal Property Security Act (PPSA) was apparently a meagre $16. So, it will be a massive loss to APR Energy should Korda Mentha be successful in their action.
"Click Here":http://www.theage.com.au/business/turbine-error-could-deliver-50m-windfall-20140725-3ckrx.html for a copy of a more comprehensive article on this matter by The Age of 26 July 2014.
Call the GSCM Group on 1300 728 444 to find out how we can assist your business to register its interest in assets/property on the Personal Property Securities Register.