Lessons from the Crafar receivership: Part Two

Big receiverships often test legal boundaries, and the Crafar group receivership is no exception.Gibson & Stiassny v StockCo & Ors¹ is the longest decision to date on the Personal Property Securities Act 1999 (PPSA).

Although the facts are complex, the practical take-outs are fairly simple:

• check the PPSA Register before making large purchases
• update your PPSA registration immediately you have any reason to believe that your secured property might not be in the debtor's possession, and
• clearly identify any property to be bought, sold or charged.

This is the second of three Brief Counsels on the case and looks at the Judge's treatment of section 88 of the PPSA, which provides a set of rules to resolve priority disputes between secured parties when property is transferred from one debtor to the other. The first Brief Counsel is available here.