The importance of properly detailed registration on the PPSR

Bodies corporate collapse of embedded network and billing pr

The matter of Re Carson; Hastie Group Ltd (No 3) [2012] FCA 719 relates to an application made by the administrators after the collapse of the Hastie Group.

By way of background, the Hastie Group involved 44 companies over 36 sites and was the subject of 995 registrations on the Personal Property Securities Register (PPSR) by secured creditors.

On their appointment, the administrators undertook attempts to identify the security interests of the 995 registrations held over the Hastie Group. The administrators: wrote to all secured creditors listed on the PPSR seeking particulars of the registration; published newspaper advertisements for secured creditors to contact them; wrote to 12 entities who appeared to hold security interests; and emailed a further 3,000 creditors. After taking these steps, approximately 77 of the assets remained unclaimed by creditors.

The important lessons that all secured creditors (regardless of the industry) can take from this case are: that secured creditors ought to ensure that all PPSR registrations are registered in a timely manner, and properly identify the goods that are the subject of the registration. Further, the secured creditor must ensure that it is able to properly and accurately identify its registered interests. that secured creditors should not be passive in enforcing its security interests and should be prepared to take swift action where necessary.

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