Trading companies in rough water

Following our experiences with bankruptcies of trading companies we have put together a report with a series of recommendations for banks and liquidators.

Here are just 2 of them :

Before bankruptcy :

In these high-risk circumstances a check-up on the organization of a trading company could be very useful. In case a bank senses trouble or difficulties with a company, the bank should use its leverage with the client and get a team of individuals with relevant commodity markets experience into examine the books and control mechanisms of its client. Well managing this process can even be perceived as a very welcome support by the client.

Debt collection policy :

Engage persons with extensive experience in the commodity world to work out the debt receivable situation of a bankrupted trading company, possibly in combination of legal and collection experience. View the need to sometimes negotiate, the lead should come from those who are working on the execution of the open book.