The liquidation of WOW Sight & Sound was the first high-profile receiverships with significant PPSA consequences. The company went into receivership less than a month after the act came into force, which meant that this case was one of the first major trade credit disputes to be handled under the legislation.
After receivers were appointed on 27 February 2012, we were engaged to represent the interests of six trade creditors including major record labels, film companies and electronics manufacturers. Each client had significant dealings with WOW Sight & Sound, with one facing up to $650,000 in losses.
None of our clients had registered their security interests on the PPSR and all of their goods had already been sold. This situation prompted the receivers to use each client’s security interests to dispute their entitlement to the proceeds of sale.
Unwilling to back down and ready to put the new legislation to the test, we commenced legal action. A successful resolution was reached in mediation on terms that exceeded our clients’ expectations.