We are specialists in recovering large unsecured debts (in excess of €100,000) from delinquent debtors. Due to the unique focused nature of our approach, it is not cost effective for us to collect smaller debts.

Our approach to recovering each debt is specifically tailored for the situation. We adopt a very pro-active approach, and insist on face to face meetings with the delinquent debtor to discuss the matter. We will quickly assess whether immediate legal proceedings should be instituted, or, preferably, if a negotiated settlement can be arrived at.

In deciding what approach to take we obtain extensive background information on the debtor. Invariably speaking, any accounts filed at the Companies Registration Office will be out of date, so we make extensive use of contacts which have been built up in every industry sector. We participate in a number of "Credit Circles", and are in a position to obtain up to date, confidential information.

Any settlement with a delinquent debtor will take into account their ability to pay. If the debtor does not have cash resources to discharge the debt, we will look at alternatives, such as transfers of land, property, machinery and other assets to the creditor. In the case of insolvent debtors, we will ensure that any such payments may not be successfully challenged by any subsequently appointed liquidator.

In determining the debtor’s ability to pay, we seek the same level of information that a bank would seek e.g. management accounts. We firmly believe that large creditors are entitled to such information, as they are financing the debtor’s business.

One of our objectives in dealing with delinquent debtors is to prevent them going into liquidation, as liquidations generally produce no dividends for unsecured creditors. One way to save a company from liquidation is to implement an informal scheme of arrangement. (Please see notes on such schemes on our home page).

Provided a creditor moves in a timely fashion, our experience has been that he will get most, if not all, of his money back. However, in some cases the creditor moves too late, and no recoveries are possible.

Fees

Our approach is broken down into two stages. At stage one we carry out a preliminary assessment of the delinquent debtor, and determine how much work will be required and what the likely outcome will be. This stage will usually include at least one meeting with the debtor, and will include various legal searches and liaison with industry experts. At the end of stage one we issue a report to the creditor summarising our findings and setting out a proposed recovery plan. Our fee for stage one is €1,000 (plus VAT where applicable), and is payable in advance.

Stage two involves implementation of an agreed recovery plan. Our fees for this stage is a combination of time costs and a percentage commission reflecting the difficulties involved.

For further information, contact Jim Stafford or Jonathan Foley of Credit Management Services

44 Fitzwilliam Place, Dublin 2. Tel: 01 661 4066. Fax: 01 661 4145

Email: jonathan.foley@frielstafford.ie