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Case type:

Global B2B debt portfolio.
Our client is one of the Export Credit Agencies in Europe. The aim is to support local European exporters in their shipments outside the EU through insurance. In case of export contract breach the insurer hires professional teams of debt recovery lawyers to handle cases and negotiations.

Typical debt collection case may look like the following. Creditor has signed an agreement for shipment with foreign importer. They start to do business successfully until the due date for the invoices comes. Traditionally the exporter tries to handle the case by himself. However, having an insurance company send the request to be indemnified and receive necessary funds.

By receiving such a request insurance companies try to settle disputes and to recover the debt amount before the indemnification. One of such cases was about quite big infrastructure project financing in Paraguay. Importer bought special equipment and as per the contract specifics should pay monthly installments. The overall contract value was several million USD.

However, due to some unpredictable conditions and poor project timeline planning the debt occurred. A team of international lawyers from CIS DRS was enrolled to handle the case and negotiations. The task was to recover unpaid invoices and follow up further payments in time. We understood that the mentioned case was a specific case due to many counterparties and factors influenced on payments by the debtor. Moreover, the debtor and the creditor were on two different continents and time zones. So the decision was to coordinate a team of lawyers from Europe and from Latin America. Such an approach finally led to the result.

At the first stage debt collectors have studied all documents related to the case and the debt. Information research was one of the key stages in dispute resolution as the debtor tried to avoid the communication having in mind that the creditor is far away in another country. CIS DRS team has managed to fing all necessary information about the debtor, business profile, commercial activity and financial conditions. Having this information lawyers started to build the strategy of successful debt collection.

On the next stage we have entered into communication with the debtor having analyzed the situation, having all necessary office contacts, website and corporate profiles in social networks. Following the result of such negotiations, our team has prepared an official letter of demand and sent it to the debtor. As a result - communication was established and our team managed to receive written confirmation concerning the debt coverage by the debtor. It was agreed with the client that an effective payment plan should be developed and followed. Lawyers followed up the payments from the debtor and timely informed the creditor about the installments.

Having provided such service, the client asked our team to assist them in chasing other pending invoices until the agreement is completed in full.

To sum it up our lawyers developed individual case strategy taking into account local specifics of the debtor, arranging an international team to handle the case, and delivering timely reports concerning the payment to the client. As a result payments were done successfully.

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