The High Court recently allowed a secured party to amend financing statements to correct a mistake as to the identity of the debtor, without losing the benefit of its initial time of registration. 

The case was determined in the context of an application by Universal Trucks and Equipment Limited to maintain the registration of security interests.  The liquidator of Chars Transport Limited (in liquidation) had made a demand under section 162 of the PPSA that Universal register a financing change statement that excluded two industrial trailers. 

Justice Venning approved a scheme of arrangement under Part 15 of the Companies Act 1993 effecting the managed withdrawal by ACS (NZ) Limited from its insurance business in New Zealand.  The Court noted that the Scheme provided the best opportunity for an ordered and efficient run-off and management of claims with minimal disruption in relation to the company's processes.  In liquidation, the liquidators would need time to familiarise themselves with the operation of the company and would proceed on a cautious basis, which would likely result in a material delay in meeting claims.

The recent case ofBay Flight 2012 Limited v Flight Care Limited is a reminder that holders of common law liens must take care to ensure that their lien is not extinguished by giving up possession.

In a decision concerning the expiry of a subordination agreement, the High Court has indicated that the priority of competing security interests is to be determined at the time the competing interests come in to conflict.

“...we consider that the section means what it says, and that there is not much point in trying to paraphrase it.” (Supreme Court in Thompson v CIR)