An order worth its weight in rare bank notes: Deed Administrators obtain order protecting their potential personal liability

There are not too many insolvency matters that involve more than $5 million in rare bank notes. So, when Deed Administrators have to make a court application¹ regarding such unique "assets" in order to protect their potential personal liability, then that's worth a read.

The problem

Mr Fraser and Mr McGrath of McGrathNicol are the Deed Administrators of John Pettit Pty Ltd (the Company). The Company used to trade in rare bank notes, where customers would buy them from the Company, or consign them with the Company for further sale, or the Company simply acted as a "custodian" of the notes for its customers. The problem for the Deed Administrators was that, when they were appointed Administrators on 11 October 2012, the Company held a large quantity of rare bank notes,