UKDC - Minimising Counterparty Risk
Recent years have seen tough operating conditions for those involved in the transport of goods round the world. With the volumeof trade declining rapidly and a surplusof tonnage after the good years, earnings have plummeted and a number of companies have found themselves in financial difficulties, with high profile companies seeking financial protection from their creditors. This may involve a period of re-organisation from which the company may emerge to trade again, or the company may cease operating altogether. In either case the creditors may find themselves having to receive significantly less than the amount that they are owed by the defaulting company, or maybe nothing at all.