Property Auctioned For Recovery.
In May 2012 administrators were appointed to the Hastie Group. At the time the PPSR contained 995 registrations of security interests against the group as grantor. Many of the security interests had general wording and as such it was difficult for administrators to determine against which items of plant & equipment each security interest related. Furthermore, due to the relative newness of the PPSA there were also a number of transactional interests that had not been registered.
To overcome these problems, the administrator sent notices to all the secured parties requesting particulars of the items of Plant & Equipment protected by their registered or transactional interests.
A large number of creditors simply did not reply to the request, and most of those who did, failed to provide adequate information. The administrators therefore applied to the Federal Court for directions to allow them to dispose of the Plant & Equipment. The Court allowed the administrators to proceed to auction (with some conditions) treating the unclaimed plant & equipment as property of the Hastie Group….