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Updated news and real life scenarios

 

Preparing for the end of the PPS transition period 


The PPS transition period is officially ending on 30 January 2017. This is a critically important date in the calendar for secured creditors with migrated security interests.

What does the end of transition period?
 

Click here to learn more and how EDX can help you.

 


EDX join Veda 


Veda, the data analytics company and leading provider of credit information in Australia and New Zealand has acquired EDX Ltd.There is no impact on the services we provide to you – we are all still here and it is business as usual. 

From Veda’s perspective, the integration of Veda’s existing PPSR registration and search capability with the EDX hosted solution provides an even stronger offering for its customers.

Click here to read more about the acquisition.


January 2016 - Common  PPSR errors which will invalidate your security 


You may think you’re PPSA-compliant. But are you?

Imagine going to enforce your registered security interest against an insolvent customer, only to find that a defect in your PPSR registration limits your security. Worse still – imagine if your security were completely invalidated due to a simple error.

Then imagine auditing all your other registrations to check whether the defects have been repeated. Finally, imagine the daunting task of processing amendments or new registrations on to the PPSR to put it all right.
This is not a fanciful scenario. The rules for registration are very complex, and insolvency practitioners are becoming skilled at exploiting seemingly minor defects for their own ends.

EDX is here to help. We have now completed over 100 compliance reviews or remediation projects for organisations to ensure the best chance of success when it comes to enforcement. Although it seemed that every possible mistake had been made, we have managed to identify some dominant themes.

To find out the common defects that may limit or invalidate your registered security interests <click here>.


August 2015 - Enforcing your rights - what you need to know 

We are always on hand to help our clients enforce their PPSA rights when customers become insolvent. It is not unusual for liquidators to try and hold onto goods and equipment, claiming the PPSA applies when it does not.
 
We thought it might be helpful to share a few war stories so that if you come up against an insolvency practitioner who tries this on, you have some inside knowledge.
 
Click here for the full story.
 
Since we are not lawyers, we cannot give legal advice. More often than not, a quiet word from EDX to the Insolvency Practitioner can achieve a commercial outcome that is far faster and more cost-effective than a protracted legal battle.
 


June 2015 - PPSR Fee Changes 

The government is soon to announce a fee reduction for registration and search transactions on the Personal Property Securities Register (PPSR).

The new fees are effective from 1 July 2015.
 

While it may be tempting to delay registration until then, it may prove a false economy. Learn about the new charges and our analysis. <Read more>.


April 2015 - PPSA:   Proposed changes tabled in Parliament 


The statutory review of the Personal Property Securities Act (PPSA) was competed and tabled in Parliament on 18 March 2015.  Significant legislative changes are promoted that could impact your business.

Many clients have eagerly awaited the review, hoping the Act would be simplified to reduce overall compliance costs. Even if that is the case, relief will be a long time coming.

An essential role of EDX is to keep abreast of these changes, assess their impact and keep valued clients and associates informed. Learn about the current state of play. <Read more>.


January 2015 - The Importance of Timing

Doing the right thing – but still losing out.
 
Spare a thought for the people at Doka who lost over $1,000,000 of form work equipment in the recent insolvency of Relux Commercial Pty Ltd.
 
There was no dispute that Doka owned the equipment it had leased to Relux. There was no dispute that it had registered its security interest on the PPSR.
 
But Doka still lost its equipment, and even the judge called it a “seemingly draconian result”.
 
Find out why, and what you may need to do to avoid a similar fate <Read more>.

 

Newsletter 15, November 2014 - Unfair Preferences or Preferential Payments are the Scourge of a Good Credit Manager

You do an excellent job of collecting debts from delinquent debtors and slow payers. Your pro-active stance is a boon to the business.

But there is a downside – Preferential Payment claims from liquidators that claw back the money you have received and knock a hole in your recovery figures.

One credit manager in a large company reported getting at least one claim per week from liquidators. 

He has not received a claim in nearly two years. Click here to find out why.


Newsletter 14, October 2014 - The Six Reasons

Controlling costs is smart business practice – but sometimes it can leave you out of pocket

Clients often ask us how many of their customers they should register on the PPSR. It's a fair question, since in addition to our fees there is the Registrar's fee of $8 per registration. Some businesses seek to control costs by selecting a credit limit and only registering customers with a higher limit, or actual exposure.

However, this saving is a false economy if it leads to the loss of your equipment or a bad debt that could otherwise have been avoided.

Click here to learn about six reasons that may cause you to rethink your registration policy.


Newsletter 13, July 2014 - The Devil is in the Detail
PPSA applies to all business entities regardless of how big or small you are. To be sure that you are protected and PPSA compliant, EDX are here to provide help and consultancy. Read more.

Newsletter 12, June 2014 - Using Fire to Fight Fire: Get us on your side when recovering your property


Most of the EDX team are former liquidators, so we understand the ways of the insolvency practitioner when it comes to the PPSA.

Recently, we were able to recover a client's property from an insolvency practitioner who made a very broad interpretation of the PPSA.

Our client had left three pieces of equipment with a repairer and on returning to pick them up was surprised to find the workshop closed and empty! Surprise turned to anger when it became obvious the repair company had gone broke and the appointed insolvency practitioner had mistakenly sold the pieces of equipment at auction.

The practitioner argued that our client hadn't registered their interest in the pieces of equipment on the PPS Register. That was true but, then again, they didn't need to.

EDX had a quiet word with the practitioner and our client received an acceptable offer to settle the matter. <Read more>.

The moral - the PPSA is complex, particularly if your property is tied up with an insolvent business, and you need to understand your rights and obligations.

The solution – get EDX on your side and let us protect your property.

As Australia's only national PPSA consulting practice, EDX offers a one-stop shop for all PPSA matters. It's all we do.

  • Consulting services – What you need to do to comply and how?
  • Compliance review services – Have you got it right? We'll let you know.
  • Registration services – We'll perform your registrations and handle all the paperwork.
  • Recovery services – We'll help you get your property back.

June 2014 - EDX Submission to "Statutory Review of the Personal Property Securities Act 2009"

We write with reference to the call for submissions issued by the Attorney General on 14 April 2014, in connection with the review of the Personal Property Securities Act 2009 (PPS Act).

Read more to get an idea of the details of this review.


Newsletter 11, May 2014 - Property Losses Mount Under the PPSA
PPSA applies to all business entities regardless of how big or small you are. To be sure that you are protected and PPSA compliant, EDX are here to provide help and consultancy. Read more.

Newsletter 10, May 2014 - End of Transition Period
The 2 year grace period for the introduction of PPSA (the transition period) has ended which means the law is now in full force and effect – or put another way – if you have not registered your interests on PPSR and something goes wrong – you will be fully exposed to the forces of PPSA.

If you have not yet prepared your business for PPSA you should not continue to ignore it. The court cases and losses are starting to come thick and fast – and it does not make pretty reading for the unprepared.

For those of you who have already suffered a loss – the most important question may be “What do I have to do to make sure this does not happen again?” 

Read more about the end of the transition period.

Newsletter 9, March 2014 - PPSR Reforms

It would have been hard to miss Tony Abbott repeatedly telling us how he's going to save $1 billion in red tape for Australian business and how reform of the Personal Properties Security Act 2009 (PPSA) is going to contribute to that initiative.

Anything that reduces the complexity of the PPSA for the hire industry is to be applauded and we should recognise the intense lobbying of industry groups such as HRIA that helped achieve this. But all that glitters is not gold - you will still need to understand the limitations of the reform, and develop a PPSA registration policy for your hire business. Read more about the scope of the reform and other important information.

Newsletter 8, December 2013 - Action to take prior to end of PPSA transition on 30 January 2014
Although at this time of year your thoughts may be turning to Christmas and a well-earned summer holiday, remember that it’s also the last chance to check your PPSR position before the transition period ends on 30 January 2014.

The good news is that it’s not too late to take action. Read more about what you can do mitigate risk as the transition period draws to a close.
Newsletter 7, October 2013 - PPSA Transition Period Ends on 30 January 2014
On 30 January 2014, the two-year transition period for businesses to register their interests on the Personal Property Securities Register (PPSR) will end.

The end of the transition period will create some risks. For instance, if you haven’t registered your business’s interests on the PPSR, you will lose those goods if any of your customers become insolvent. Even if you’ve registered a single, transitional interest on the PPSR, there is a risk that won’t be enough to protect your assets

If you’ve taken the DIY approach and registered on the www.ppsr.gov.au website without seeking appropriate advice, your business may also be at risk. For instance, your security may be invalid and in a worst-case scenario your business could also be liable for a hefty financial penalty.

Companies that have adopted a special-purpose business structure – where assets are held in an asset-owning entity and all trading is conducted through an operating entity – will be completely exposed to loss after 30 January 2014.

The good news is that it’s not too late to take action. Read more about what you can do mitigate risk as the transition period draws to a close.
Newsletter 6, July 2013 - PPSA Nightmare - Kentor Minerals
It was always going to take some time before the full effect of the Personal Property Securities Act 2009 (Cth) (PPSA) was felt, but that day has arrived – and it brings trouble for equipment owners. Let’s be clear: if your business hires or loans equipment to third parties and you don’t comply with the PPSA, it’s only a matter of time before you lose your equipment. Ownership offers no protection. The recent legal decision in Maiden Civil (P&E) Pty Ltd v Queensland Excavation Services Pty Ltd puts this beyond any shadow of doubt. If you would like to understand more about the case, read about it on this website. The collapse of Kentor Minerals (WA) Pty Ltd may be of more general interest, since it illustrates how the PPSA is working in a broader sense. In summary:

The owner of a $300,000 water tanker lost it in the insolvency and still owes the equipment financier.

One hire company had on-hired excavators to Kentor without the equipment owner’s permission. The hire company is locked in negotiations with the Administrator, and if it is not successful, it will be liable to the equipment owner for the replacement cost of the machines.

All clients of EDX were able to successfully recover their plant and equipment.

 The lessons are sobering, but very important. Read more about the insolvency proceedings on our website.
Newsletter 5, May 2013 - Horror Stories and Lucky Escapes
Faced with the cost of registration on the Personal Properties Securities Register (PPSR), many businesses have either decided not to register, or to process registrations themselves to cut down on professional fees. This can be a false economy with costly consequences. In this newsletter we highlight some of the considerations for those who may be thinking of doing it alone. We follow that with some horror stories from businesses which either chose not to register or to instead took a “DIY” approach. Read more.
Newsletter 4, April 2013 - PPSA Give New Twist on the Fixtures Debate
In our second newsletter for the year, we look how the court was influenced by the PPSR in deciding whether a multi-million dollar equipment was a fixture. Read more
Newsletter 3, February 2013 - Ausco and Moxon
In our first newsletter for 2013, we look at two businesses engaged in renting out equipment or selling goods subject to retention of title, and how registration to PPSR was worth the investment and hard work. Read more.
Newsletter 2, August 2012 - Do Nothing-Lose Everything
In this newsletter we will discuss how equipment owners who have registered on PPSR may still lose their equipment on the insolvency of a customer. The key message is that you must be vigilant and waste no time in enforcing your rights.  Read more.
Newsletter 1, May 2012 - Shockwaves from the "WOW" Audio Visual Stores Receivership
In our first newsletter we will discuss an important aspect of the transitional provisions and the stance taken by the receivers of WOW against suppliers seeking to rely on a retention of title clause. We should point out that this information comes from discussion with suppliers rather than being a published policy from the receivers.  Read more.

ABOUT US

EDX started its roots in New Zealand where EDX Limited has been consulting and providing registration services on New Zealand's equivalent of the PPSR for more than a decade. 

EDX Australia Pty Ltd commenced in 2010 and has established a network of Consultants making it the only national PPSA consulting and registration services provider in the country.

About EDX Pty Ltd

 

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CONTACT US

+61 2 9119 5065
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