The first days of insolvency are often confusing but if you have a retention of title clause in your terms of trade, now is the time to lawfully get your goods back.

Provided you have registered your interest correctly on the PPSR you are now are a secured creditor over your property and its proceeds. This means you have: 
- Rights to possession of goods held by your customer
- Rights to proceeds
- Rights to remove accessions 
- Rights in the manufactured or commingled goods

  • Day one actions
    - Reconcile your property to your PPSR registrations
    -  Make copies of all relevant sales documents including your signed terms and conditions
    - Send a letter to the Receivers/Liquidators/Voluntary Administrators (Insolvency Practitioner) immediately providing:
    - A copy of your financing statement/verification statement evidencing your registration on the PPSR
    - Copies of your sales documents 
    - The identify/description of your property 
    - The last known location of your property (where delivered)
    - A demand to: 
    - Access the premises to identify and count your  stock (ROT claim), then for the for the immediate return of your property
  • - Access to identify and quantify any of your products that may have become accessions or commingled or part of finished products of the company (if applicable)
    - Access to the company's debtors ledger and bank accounts in order to determine and identify if you have any claims on the proceeds (if applicable)
    - A request for the Insolvency Practitioner to acknowledge your interest in your property and the validity of your PPSR registration
    - Send a representative as soon as possible to the company to do the count
  • - Take photographs
    - Agree the count with the insolvency practitioner
  • We are not lawyers, this is not legal advice. You may need the support of an expert or lawyer if he insolvency practitioner does not treat you as a secured creditor or dismisses your claim for no valid reason.

Kim Powell is co-founder of EDX, a national firm specialising in PPS registration and consulting. EDX has its roots in New Zealand where similar legislation was enacted in 2002. In his earlier career, Kim has been an insolvency practitioner, headed the commercial credit recovery division of a major bank, as well as a period as a business banker advancing funds on a secured basis. This background made the PPSA a natural area of interest. Kim moved to Australia in 2010 to lead EDX's entry in to the local market and is based in Melbourne Contact Kim: kim.powell@edxppsr.com.au or phone 0410 475 100

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