Just for curiosity - blocking of reciever

[Clancy]

Hi, this is not a current issue, just mentioning for anyone who is interested....

Couple of years ago we took a customer (company) to court for winding up after they did not pay a debt.

Our receiver was then told by the company that they had already voluntarily appointed a receiver.

Our receiver kept asking them who is the other receiver and they refused to give any details.

Simply by refusing to give details they actually succeed in holding off our receiver!

Eventually our receiver stopped pursuing the case and we had to go down other legal avenues which i forget now.

I thought it was quite amazing!

 

[Rob Legat - SBPL]

I think that was more of a useless receiver (or disinterested one) than anything. If a court appointed receiver doesn't think there's going to be any money in it for them, they're unlikely to do more than the bare minimum they are required to do, as they will only get paid out of the funds available from the corporation.

 

[Clancy]

I think that was more of a useless receiver (or disinterested one) than anything. If a court appointed receiver doesn't think there's going to be any money in it for them, they're unlikely to do more than the bare minimum they are required to do, as they will only get paid out of the funds available from the corporation.

Sounds about rite. If your looking for an excuse not to do something, then it is very easy to find one.

We learnt all about how that works from having trade finance insurance. This is an international company that i work for, and every time it came to make a claim, there was some excuse not to pay. This trend continued even though they change insurer every time a claim was denied. Eventually they stopped insuring at all and it was up to every regional office to take their own insurance in each different country.

Our office took insurance in Australia, but then the first time we needed to make a claim they had a nice little trick up their sleeve waiting for us..... if there is any dispute, the legal costs cannot be paid until the dispute is resoled by the court.... now, even if the court eventually says the dispute was not a legitimate dispute, the insurer will still not pay the legal costs up to that point. So its absolutely possible the debtor could dispute that they don't like the way we wear our hat, and the legal costs will NOT NEVER be paid by the insurer during that period, not even after the court throws out that ridiculous dispute.

Given the legal costs evaded by the insurer this sneaky way were worth nearly 50% of the debt we were trying to recover, we shortly afterward cancelled the policy and have operated for several years without trade credit insurance..... we finally had to face the fact that trade credit insurance is utterly useless.

 

[Rob Legat - SBPL]

Which gives an important lesson for everyone: insurers are not your friends.

 

[Clancy]

Which gives an important lesson for everyone: insurers are not your friends.

There is no industry with a greater ability of how to put lipstik on a pig than insurance! Understand what it really is your really getting for your money - that is the lesson.

Another piece of advice - whatever an insurance broker tells you verbally is irrelevant, look to what is written, and if something written is not perfectly clear, assume it means the worst that is possible, because with insurance, that is what it will be. (this advice applies to pretty much every kind of deal you will ever do in life anyway).