In February 2014 the ANZ bank appointed receivers to one of its mining services customers, the Forge Group. About $300 million was owed to the ANZ and some asset insurers, substantially in connection with leased equipment which had been financed by the bank and the insurers. The Forge group is now in liquidation.

Part of Forge’s leased equipment stock included four gas turbines, estimated to be worth up to $50 million. The turbines were leased by Forge from APR Energy PLC, a global energy technology hiring group, listed on the London stock exchange but headquartered in Florida USA.

For reasons unclear APR failed to register its turbine leases (which, presumably, were longer than one year) to Forge on Australia’s Personal Property Securities Register (PPSR). In January 2012 the Personal Property Securities Act (PPSA) had come into effect requiring PPSR registration of leased and other chattels (goods) not in the possession of their true owners.

The Forge receivers (latterly liquidators) are currently in the process of seeking a declaration from the NSW Supreme Court that the four turbines have now fallen under the ANZ’s PPSR registered security interest. If the court makes the declaration the turbines will be available for sale by the liquidators, primarily for the benefit of the bank.

For more information on the impact this is having internationally click here.

Or for more information regarding your obligations under the PPSA contact Allan McDougall on a.mcdougall@pigott.com.au