PPSR Failure May Cost $50 Million
In the clearest warning yet of the potential loss that could be suffered by failing to register leased assets a company stands to lose their ownership of four gas turbines worth $50 million.
Collapsed mining services company Forge Group, which went into receivership in February, had leased the gas turbines from a US company, APR Energy. For reasons not yet apparent, APR Energy failed to register the assets on the Personal Property Securities Register.
Under the Personal Property Securities legislation all assets not registered under the Act are deemed to be the property of the lessee - Forge Group.
While the matter is currently the subject of an action in the Supreme Court of New South Wales it looks like the failure to register, at a cost of just $8 per registration, may end up costing APR Energy around $50 million.
If you have questions or concerns regarding your assets and registration under the Act contact Amanda Tolson or Peta Hewitt in our Commercial & Property team. We can assist with registration or provide training to your team to ensure your assets are properly protected.
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