If they had, they might not have lost $50 million in assets recently!
Our very first newsletter featured an article warning about new risks that had emerged thanks to the PPSR and the necessity of businesses securing their interests over assets that are rented, leased or hired out to third parties.
Forge Group were a large mining services company, who entered into an agreement with GE to lease gas turbines for a Pilbara power stage. On going into receivership, Forges creditors successfully claimed ownership of the assets, said to be worth $50 million, as GE had not registered their interest over the asset.
If you are renting or supplying goods or equipment to a third party it’s essential that you register your interest in these goods to avoid losing them to creditors should that third party business be wound up.
If you have concerns, talk to us at Regfin and we will be pleased to point you in the right direction.