Construction Sector Outlook

Atradius, the global credit insurance company, has published their February edition of 'Market Monitor' which concentrates on the Construction sector in the UK as well as Belguim, France, Germany, The Netherlands, Italy, Poland, Spain, USA and Mexico.

UK businesses in the sector are feeling the impact on their cashflow as payment terms are being stretched to 60 days or more, and retention payments are often being withheld. Insolvencies in the sector rose by 6.4% in 2011, with Q4 insolvencies up by 16% year on year.

Credit Insurance is in Fashion!

CMR Insurance Services will be visiting the Moda fashion exhibition at the NEC Birmingham, where some of our fashion and footwear sector customers are showing their new ranges.

Credit Insurance and Chapter 11

As predicted in our previous blog entry, Kodak has filed for Chapter 11 protection in the USA.

Under the US Bankruptcy laws, Chapter 11 gives protection against litigation for non-payment, so that the business can try to restructure, as well as some other potential rights such as being able to cancel contracts or to refinance the business, offering new lenders priority on earnings.

The timescale for a company in Chapter 11 can be a few months, or many years, depending on the individual circumstances.