Introduction
Timely registration of security interests under the Personal
Property Securities Act 2009 (Cth) (PPSA)
is essential for secured creditors to protect their rights. Failure
to register within the prescribed timeframes can result in the
creditor losing priority to unsecured creditors in the event of
insolvency.
While creditors who have failed to register on time, may seek an
extension to registration timeframes under s 588FM of the
Corporations Act 2001 (Cth) (Corps Act),
they should be aware that such avenue is not without complexities
and risks, including a possible challenge by a liquidator or
administrator appointed to the grantor.
A recent Federal Court decision, Crushing Services
International Pty Ltd v Lithium Developments (Grants NT) Pty Ltd
[2024] FCA 1138 (Crushing Services),
discusses the legislative timeframes for registering security
interests and the key factors that the Court will consider when
deciding whether to grant an extension.
