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In the recent decision of Forge Group Power Pty Limited (In Liquidation) (Receivers and Managers Appointed) v General Electric International Inc  NSWSC 52 (11 February 2016) the importance of perfecting your interest under the PPSA was emphasised.
GE leased 4 Gas Turbines (electricity generators) to Forge Power who subsequently went into administration. GE did not register their interest under the PPSA.
The rental term over 2 years provided for a total of $33 million in payments. Payments commenced January 2014. Forge Power entered administration 3 months later in March 2014.
GE attempted to argue that there were two exceptions available to it under the PPSA:
The consequence of not perfecting their interest meant that the turbines became available to the liquidators and GE became an unsecured creditor.
Please note that this article does not constitute legal advice and should not be relied on as such.