It has been strangely quiet on the Forge Group front since the collapsed mining services firm descended into receivership in February. But that is about to change.
And the latest instalment promises to be one of the most interesting yet.
It involves four gas turbines worth about $50 million and will be by far the biggest test of the Personal Property Securities Act, which came into force in early 2012.
The firm's receivers KordaMentha are going to the Supreme Court of NSW to try to wrest control of four gas turbines from US giant APR Energy.
APR was leasing the turbines to Forge Group for power station construction work but did not register the assets under the act.
It is not clear whether it was someone at APR or an adviser that made what could turn out to be a $50 million mistake.
Under the laws governing administrations, all assets not registered under the act vest with the lessee - which in this case was Forge. KordaMentha will seek a declaration from the court that the turbines vested in Forge at the time of the appointment of administrators. It will issue proceedings next week.
If successful, KordaMentha will deliver a $50 million windfall to Forge's creditors, led by ANZ.
GE signed over its turbine rental business in return for cash and about 16.5 per cent of APR Energy's register in October.
KordaMentha's move against APR is by far the biggest test case of the act in Australian history, with the next largest about $2 million.
It costs just $16 to register assets but that can increase to $2000 if legal fees are included.
Perth-based insolvency and restructuring expert Richard Johnson says the mining services equipment hire sector is particularly vulnerable to the quirks of the act.
"[The act] turns the concept of property ownership on its head," Mr Johnson, who is a partner at HWL Ebsworth Lawyers, says.
"It is particularly relevant in the mining space, where people derive income from deploying equipment onto sites without necessarily documenting their ownership. Maybe it will take umpteen stories of losses for the mining services equipment hire space to become aware."
Mr Johnson ran a case under the Personal Property Securities Act last year for KPMG, the creditors of collapsed BEM Equipment, against Spiers Earthworks.
The Supreme Court of WA ruled in April in favour of KPMG.
Spiers had leased about $1 million in plant equipment under a hire purchase agreement to BEM Equipment but did not register the assets under the act.
"The [act] reduces the concept of property ownership to an 'interest'," Mr Johnson says.
"Spiers owned the gear but because they didn't "perfect" their interest and put the world on notice the asset was actually theirs, they lost their interest."
