Key Points:
Australia will adopt the Cape Town Convention, which
provides creditors under a security agreement with certain rights
in the event of a debtor's default or insolvency.
Australia is set to adopt the Cape Town Convention later this
year, which will benefit Australian airlines and provide greater
security for creditors in the Australian aviation industry.
The Cape Town Convention comprises the Convention on
International Interests in Mobile Equipment and the Protocol to the
Convention on International Interests in Mobile Equipment on
Matters Specific to Aircraft Equipment.
The Convention is designed to create a global framework to
simplify the aircraft registration process and protect the security
interests of international financiers of aircraft equipment. It
does so by establishing an international registry to record
security interests and providing internationally recognised
remedies for creditors in the event of default or insolvency.
