Trade Credit Insurance- Best Practice and Lessons from the Crisis This new article by Igor Zax covers reasons for use of credit insurance, it’s role in transferring risk, outsourcing credit process and building financing solutions, advantages and pitfalls of using credit insurance, and the effects of the financial crisis for corporate use of credit insurance.
Published in GT News – publication of AFP (Association of Financial Professionals). Reprinted with permission.
Igor Zax, founder and MD of Tenzor Ltd., will be speaking at a major conference,
European Investment in Distressed Debt Forum, 26 – 27 October, 2010 at Le Meridian Piccadilly, London, organised by IQPC. The presentation would be part of the panel “Corporate Turnaround And Stakeholder Management Strategies” that would also include Michael Langdon from Rutland Partners and Warwick Ley from Endless LLP.
“Igor Zax is a regular speaker in my course on Mergers and Other Corporate Reorganisations at the London Business School. Through years of experience on corporate restructuring, Igor has developed a deep understanding of how to turn around businesses. Igor’s approach is truly holistic combining multidisciplinary insights from economics, finance, strategy and operation management. With these skills and experience, Igor is a valuable asset in dealing with any turn-around situations as the complexity of these situations benefits from a multidisciplinary approach: financial restructuring needs always to be combined with creative and sound operational decisions. Paolo Volpin (Associate Professor of Finance, London Business School.”
posted with kind permission from professor Paolo Volpin
Igor Zax, founder of Tenzor Ltd, was presenting again at LBS (London Business School) with a guest lecture Distressed M&A –Supply Chains and Working Capital Solutions? , as part of a course “Mergers, MBOs and Other Corporate Reorganisations” 22 April 2010.
The lecture addresses strategies distressed mergers and acquisitions, core principles for turnarounds, effect of supply chains, role of ABL (asset backed lending), working capital management, distribution structures and vertical integration.
Corporate Turnaround- looking beyond just banks and the debtor
Presentation By Igor Zax on a conference on Corporate Financial Restructuring in Russia & CIS conference, Moscow, December 1-2 2009
Igor Zax, founder and MD Tenzor Ltd., will be presenting at a major conference, Corporate Financial Restructuring in Russia & CIS, 1-2 December 2009, organised by C5.
Current outline of the topics for the presentation:
Corporate Turnaround- looking beyond just banks and the creditor.
-Company’s “ecosystem” – how does supply chain affect company’s chances of recovery. Working capital problems, role of suppliers, distribution, credit insurers and asset backed lenders-their interests and possible actions.
-Changing the model- what can turnaround manager do and what support he/she needs to seek? How can creditors help turnaround manager to help them?
-Investor’s view- where is the exit?
Taking a holistic approach to working capital- Pilot’s Log
The article analyses strategic approach to working capital, conceptual framework (outsourcing of financing), financing tools, redesigning supply chain, changing product mix and adjusting business model. It also addresses implications for private equity owned businesses
Reprinted with permission
mind-the-chain-lessons-for-firms-in-distressed-markets
The article shows how understanding of supply chain and industry models can open new opportunities for turnaround and private equity in general
Reprinted with permission from Private Equity News
restructuring-the-survivors-as-economy-melts-pe-news-may-2009
Roundtable moderated by Private Equity News editor James Mawson on corporate restructuring, covering current state and issues in distressed PE investments.
Participants:
Dell Huse, Endless
Richard Jones, Punter Southall
Paul Dacuss, Sun European Partners
Michael Langon, Ruthland Partners
Reprinted with Permission from Private Equity News
Below is a discussion on Linkedin between Igor Zax (Tenzor Ltd.) and Tony Heywood (Gilcrest Services Ltd) on effect of credit insurance withdraw and latest government support initiatives on retail industry.
TH
Withdrawal of credit insurance has a devastating effect on the fashion retail industry and is holding back recovery. Has anyone yet received or requested help under the Budget insurance scheme yet?
IZ
Tony,
Just a small note- to the best of my knowledge the particular scheme is only covering reduction of cover through providing top up, not complete withdraw. My guess is most of the cases you refer to the cover is completely withdrawned, so the scheme would not help…
TH
Hi Igor
You are correct – it only covers reduction after 1st April and then only tops up to a max of the existing cover. So if cover is reduced to 30% it will only bring it up to 60%.
My feeling is, that it is likely to be of little help to the industry and is another Government initiative which is big on headlines but of little actual help.
I was hoping that I may be wrong but the lack of replies from here and other requests re-enforces my belief.
A little more about it in my blog
http://blog.esellit.com/
IZ
Hi Tony,
I guess one shall question the relevancy of the scheme for your sector. Firstly, it is for sellers based in UK- so unless the retailer buys from UK company (manufacturer if these still exist or distributor) it is not relevant at all.
Secondly, it only applies to whole turnover policy. What it is likely to mean is that there may be an incentive for insurer to actually reduce the cover, as they are still being paid on all sales, get less exposure and plus might charge a commission for administrating government policy on top of the 2% cost. This may also substantially increase cost to supplier, that is likely to be passed to retailer.
Could not agree more with the point in your blog about importance of communication with insurers. This would focus on three areas- complete and timely information (obvious point), getting the right interpretation (often the underwriter do not understand enough about the industry or company specific factors) and getting to the right level (somebody who can make an exception to general mechanical approach based on additional facts). Two latter points require a lot of credibility that one needs to build.
Lastly, do not assume supplier cannot take uninsured risk. Unless the insurance is tight to their own financing (such as invoice discounting or factoring), there is no reason they cannot take uninsured risk. The credit controller may think they cannot- CEO might have a different view if you are a very important customer AND you can provide reasonable comfort that you will be able to pay.
TH
Excellent points Igor
Thanks