Thursday, November 26, 2020
The Federal Court has today sensibly ruled that security interests do not vest in the company grantor simply because the company had at some time previously been in liquidation, administration or subject to a deed of company arrangement (DOCA). This decision should come as a great relief to secured lenders and suppliers to companies that have successfully passed through a restructuring and have resumed “business as usual”.
Many financiers and suppliers may have been, quite understandably, unaware of a legal risk that had been brewing which could, depending on the Courts’ interpretation of the vesting provision under the Personal Property Security Act (PPSA) and the relevant new provisions of the Corporations…
Read the full article at: https://www.natlawreview.com/article/much-ado-about-vesting-federal-court-clarifies-vesting-rule-security-interests
