This publication by Insolvency Practitioners and Litigators of HWL Ebsworth explores cases and issues involving the Personal Property Securities Act 2009 (Cth) over recent years.
Does an agreement ‘provide’ for a security interest?
Determining whether an agreement ‘provides’ for a security interest to secure payment or compliance with an obligation in the context of the Personal Property Securities Act 2009 (Cth) (PPSA) is not always easy, as Besanko J of the Federal Court of Australia explained in Kirkalocka Gold SPV Pty Ltd (Receivers and Managers Appointed) v Zenith Pacific (KLK) Pty Ltd, in the matter of Kirkalocka Gold SPV Pty Ltd [2024] FCA 428. Even an owner of large-scale equipment and works may be ‘provided’ with a security interest by the transaction. The case also explores the concept of perfection by possession.
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Payment of Employee Entitlements from Circulating Assets – the Long Arm of Section 433 of the Corporations Act 2001 (Cth)
Receivers and Liquidators of companies are often confronted with the difficult task of determining what assets may constitute ‘circulating assets’ for the purposes of payment employee entitlements. This issue is explored in Department of Employment and Workplace Relations v Howell, in the Matter of Castel Electronics Pty Ltd [2024] FCA 566 (McElwaine J – Federal Court of Australia).
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The Granting of PPSA Security Interests in Corporate Insolvency Work Outs
Liquidators, voluntary administrators, deed administrators and small business restructuring practitioners who facilitate corporate restructures involving secured funding over personal property often seek Court orders ‘fixing’ a later time for registration of security interests in the Personal Property Securities Register to prevent statutory vesting under s 588FL of the Corporations Act 2001 (Cth). This issue was addressed in Cathro, in the matter of Cubic Interiors NSW Pty Ltd (in liq) [2023] FCA 694 by Cheeseman J, who explored the inherent vagueness in s 588FL of the Corporations Act 2001 (Cth).
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These articles were written by Matthew Broderick, Partner
