No doubt you will have heard about several recent tenant
insolvencies – Roger David, Max Brenner, Maggie T, Oroton,
Marcs, David Lawrence, Pumpkin Patch, Sumo Salad, Toys 'R'
Us and Doughnut Time to name but a few. The reality for landlords
when a tenant enters bankruptcy, administration, receivership or
liquidation is that they are typically unsecured creditors and so
will usually only receive a small portion of what they are owed in
the final wash up.
However, all is not lost. The Personal Property
Securities Act (PPSA) may be used to
give a landlord the status of a secured creditor in some
cases. Interested? Read on!
In order to become a secured creditor, a landlord must have a
security interest in personal property and it must have
'perfected' that security interest. The surest way for a
landlord to perfect a security interest is to register it on the
Personal Property Securities Register
(PPSR). At the end of the day, landlords are
typically keen to re-let
