Adelaide Building Industry Beware (PPSR Update)
We knew about this one when the decision was handed down, but the ramifications are far reaching. How would you feel about losing equipment worth over $1.4 million dollar’s, just because you hired your equipment out? Well, it happened, read on.
(From our colleagues at Clifton Hall) With the transition period over and the PPSA now in full force, the building, construction and mining community has been eagerly awaiting further case law to clarify the application of the security provisions. In April 2014, the WA Supreme Court handed down a decision confirming the importance of registration and the consequences of a security interest not being perfected in a timely manner.
Spiers Earthworks owned earthmoving equipment but lost the items to a Receiver and Manager appointed over the hirer, BEM Equipment Pty Ltd.
Spiers hired equipment to BEM in 2010 pursuant to a hiring agreement. Administrators and Receivers were appointed to BEM in July 2013. Spiers never registered the assets hired by BEM on the PPSR.
Spiers’ failure to register led to the court making the decision that the Receiver could take control of the assets, with a total value of $1.4 million dollars.
This is a warning to Adelaide business, especially those in the building, construction and mining areas, please seek advice and register your PPSA interests.