Posted on August 19, 2014
In February this year the mining services company, Forge Group, went into receivership owing $800m.
The firm’s receivers Korda Mentha are going to the Supreme Court of NSW to try to wrest control of four gas turbines owned by US giant APR Energy.
APR was leasing the turbines to Forge Group for power station construction work but did not register the assets under the Personal Property Securities Act (PPSA) which came into force in early 2012. This could turn out to be $50 million mistake. If successful, the receivers will deliver a $50 million windfall to Forge’s creditors.
Don’t make the same mistake! If you have assets held on the premises of another party make sure that you register your interest now.
It costs just $16 to register assets but that can increase to $2000 if legal fees are included. It is well worth it if you have assets worth millions at stake!
“The Act reduces the concept of property ownership to an interest” says Perth based insolvency expert Richard Johnson who ran a case under the PPSA for KPMG, the creditors of collapsed BEM Equipment, against Spiers Earthworks. The Supreme Court of WA ruled in favour if KPMG.
Our message to you is: are your assets under threat and how prepared are you to legally protect them?
It is not too late to start now! For more information about the PPSA, read our articles published in February “Easy come, easy go: The PPSR & your business” and March “Personal Property Securities Register (PPSR) – Are you ready?”
(Quotes from SMH article written by Amanda Saunders, July 26-27)