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A Pune-based generic pharma company had been supplying a Spanish pharma distributor on 60-day open account terms for 2 years. The relationship was established, and the Indian exporter had not taken ECGC cover. The Spanish distributor entered insolvency proceedings in April 2025. Outstanding receivables from the Indian exporter were USD 280,000 across 4 unpaid invoices.
Review of the exporter' position confirmed: no ECGC cover, no LC, no credit insurance. The exporter engaged a Spanish lawyer to file a creditor claim in the Spanish insolvency proceedings. AJG facilitated introduction to ECGC' special assistance desk for post-default situations. Under ECGC' post-default specific policy, the exporter could obtain 50% coverage for the outstanding amount (reduced from the standard 90% because cover was not in place at shipment). ECGC Special Policy obtained at emergency premium.
ECGC claim settled: USD 140,000 (50% of USD 280,000 outstanding). Spanish insolvency proceedings estimated to return 15-20 cents on the dollar — expected additional recovery USD 42,000-56,000. Total expected recovery: approximately USD 182,000-196,000 of USD 280,000 outstanding. Exporter has since obtained ECGC Standard Policy for all EU buyers.
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