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ARTICLE · 13 MARCH 2017

Security interest and insolvencies: Lessons for secured parties

Colin Biggers & Paisley
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Security interests must be registered correctly to avoid assets vesting in a company if placed into administration.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Simone Farrugia
Simone Farrugia

IN BRIEF - PROPER REGISTRATION OF SECURITY INTERESTS ON THE PPSR IS A MUST

The recent decisions in OneSteel Manufacturing Pty Limited (Administrators Appointed) [2017] NSWSC 21 and Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in Liquidation) (Receivers and Managers Appointed) [2017] NSWCA 8 serve as a timely reminder of the importance of registering security interests correctly on the Personal Property Securities Register (PPSR) to avoid assets vesting in a company upon it being placed into external administration.

ALLEASING REGISTERS SECURITY INTEREST ON ONESTEEL'S ABN INSTEAD OF ACN

In the matter of OneSteel Manufacturing Pty Limited (Administrators Appointed) the facts were that Alleasing leased a crushing and screening plant and spare parts for the crusher to OneSteel.

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