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ARTICLE · 20 JUNE 2017

A commercial solution to a re-vesting problem

Corrs Chambers Westgarth
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The Court considered the potential prejudice to creditors in extending the time for registration of security interests.

AustraliaInsolvency/Bankruptcy/Re-Structuring
David Abernethy
David Abernethy
Jade Rowarth
Jade Rowarth
Jason Salman
Jason Salman
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This week's TGIF considers Alleasing Pty Ltd, in the matter of OneSteel Manufacturing Pty Ltd in which the Court considered the potential prejudice to creditors in extending the time for registration of security interests

BACKGROUND

This case followed on from a decision of the NSW Supreme Court in In the matter of OneSteel Manufacturing Pty Ltd (administrators appointed) [2017] NSWSC 21 (discussed in our TGIF ABN but no ACN? Your PPSR Registration may be defective) and a decision of the Federal Court in In the matter of OneSteel Manufacturing Pty Ltd [2017] FCA 325 (discussed in our TGIF Not so Perfect Solution – Court Relief Sought to Avoid Automatic Vesting).

The NSW decision involved an error in the PPSR registration of a security interest in a crushing and screening plant (Crusher) which resulted in the Lessor's interest in the Crusher vesting in the Grantor when the Grantor went into administration.

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