CITATION  VSC 391
JUDGE/S ELLIOTT J
Australian Music Pty Ltd bought goods on retention of title terms from Yamaha. The liquidators of Australian Music claimed payments made to Yamaha for the goods were unfair preferences ‘in respect of an unsecured debt’: Corporations Act, s588FA. Yamaha sought to have the liquidators’ proceedings struck out on grounds that its retention of title debt was not ‘unsecured’, but failed at first instance, as a pre-PPSA ROT claim was held to be ‘unsecured’: Blakeley v Yamaha Music Australia Pty Ltd  VSC 231
The court refused the appeal. The court noted the difference of opinion between the first instance decision, and the decision in Hussain v CSR Building Products Limited  FCA 392 where a pre-PPSA ROT claim was held to be ‘secured’. But it made no difference to the outcome, because, regardless of which interpretation of ‘unsecured’ was adopted, Yamaha had not provided enough information about stock values to establish that it was a ‘secured’ creditor and so was not entitled to summary strike-out.
The summary of the pertinent points in this legal case update has been provided by Steve Pemberton, Lawyer and Consultant, as an extract from his digest of PPSA cases.