Case Studies

Debt Recovery Case Studies

Below are select case studies that illustrate a particular issue faced by a client and the outcome achieved as a result of our representation. Click on any case study heading for more information about that particular matter.

NEW YORK, USA (USA)(Textiles)

On behalf of an Asian export credit agency, we filed a lawsuit in federal court in New York for the non-payment of purchased textiles. While the textiles which the exporter had shipped were of poor quality, we were able to make a claim that as a result of the importer reselling the products without authorization from the exporter, the importer was liable to our client. Despite the challenges our client faced, we were able to obtain a favorable settlement.

MASSACHUSETTS, USA (Transportation)

On behalf of a Dutch manufacturer of boxes used to transport frozen fish, we sued a fast-freezing company operating onboard a ship moored at a Rhode Island dock in federal court in Boston. As the key witness was a fishing boat captain, we were able to have a subpoena served on him on board his boat at Portland, Maine harbor as he returned from fishing in North Atlantic waters. The suit was quickly settled.

OREGON, USA (Industrial Freezing)

On behalf of a U.S. government agency, we negotiated a global agreement involving an Oregon fishing company, its San Francisco wholesaler, and its Japanese purchaser, which provided for weekly monies to be paid toward the reduction of its outstanding government obligation. The key to this resolution was a two-day visit with the debtor, the wholesaler and the buyer at the debtor’s place of business on the coast of Oregon, which gave us information about the business practices of the debtor and enabled us to structure a four-way agreement through which monies would be paid in full.

VIRGINIA, USA (Executive Liability)

We successfully settled a local state lawsuit brought by a prominent U.S. defense contractor against a small corporation and its principals through the use of an obscure state law, which obligated the principals of a liquidated corporation to comply with certain statutory obligations. This permitted us to bring suit against both the principals as well as the liquidated corporation and resulted in a favorable resolution.

OHIO, USA

On behalf of a Sri Lankan hat manufacturer with a claim against an American wholesaler, we negotiated a settlement of approximately $130,000 on a claim of $150,000 after filing suit in an Ohio U.S. District Court. An important key to bringing this suit and favorably settling it was the research and investigation done prior to suit through which we learned from the debtor’s landlord that debtor was a profitable company in business for many years with an excellent financial reputation in the local community.

BRAZIL

A Brazilian textile manufacturer was indebted to our client in the amount of approximately $450,000, resulting from the non-payment of equipment received. The debtor company was on the verge of liquidation and was operating at 5% of its standard capacity. All creditors were providing debtor with debt reductions of over 75%; however, the debtor was not involved in a formal restructuring. We were able to negotiate a lump sum payment of $200,000, which represented a 45% recovery, which was the largest pro-rata payout of any other creditor. This recovery required two on-site meetings with the debtor company.

PERU

On behalf of a government affiliated export credit association which insured a working capital line of credit to a Peruvian airline which had defaulted on its loan, we worked through the Peruvian legal system and placed a lien on the engine of one of the debtor companies’ airplanes, which ultimately forced a large settlement. The recovery took four years and required three separate trips to Peru.

DOMINICAN REPUBLIC (The Netherlands)

On behalf of a Dutch bank which had a large claim against an unmarried couple who sailed in the Caribbean, contact was ultimately made with the couple and steps were taken in the Dominican Republic to seize their vessel which was ultimately sold to satisfy the claim.

VENEZUELA

Due to economic instability, hyperinflation and political uncertainty, and a fire at the debtor company’s facility, the debtor company ceased operations and entered bankruptcy. For the following few years our client was unable to recover. The claim was then assigned to us 7 years after the fire; despite this, we were able to recover a large portion of the original debt amount.

THE CARIBBEAN (Puerto Rico)

On behalf of a large international corporation we successfully negotiated the resolution of a $200,000 claim against the subsidiary of a U.S. based corporation and a local government entity, whereby valuable and sensitive equipment sold to the debtor and installed at its premises was recovered without the need for an expensive and protracted local lawsuit.

SOUTH AMERICA

On behalf of a South American cattle rancher who claimed he was blacklisted by a regional development, based in his home country and in the US, we presented a claim for damages to the bank, which after extensive mediation, entered into a favorable settlement for the rancher.

EL SALVADOR

An El Salvadorian garment manufacturer for multiple major U.S. brands became indebted to our client during the financial crisis of 2008. The garment factory had over $25,000,000 in legal obligations to domestic and international creditors. We were able to develop a relationship with the debtor company through multiple in person meetings and negotiated a payment plan that allowed for a full recovery and allowed the debtor company to continue operations. Despite the existence of multiple secured creditors, and our claim being unsecured, we were able to obtain payment, while some secured creditors received no payout.

MEXICO (Japan)

On behalf of a Mexican subsidiary of an international American company which claimed it was owed money from the Mexican subsidiary of a Japanese multinational, we were able to favorably resolve the claim without arbitration in Japan, the venue that had been agreed to in the contract, and in spite of the fact that the Japanese claim far exceeded the claim of our client.

ENGLAND (Southern Europe)

On behalf of a prominent English law firm which had a legal bill owed by a relative of a former prominent senior minister, whom the tabloid press labeled as a notorious deadbeat, through a carefully crafted custom demand letter with follow ups, we were able to recover the full amount of the bill from this debtor.

IRELAND (New York)

On behalf of an Irish bank which had a claim against an investment analyst, suit was brought in a federal court in New York and as a result of the Irish press picking up the filing of the suit, and the debtor being a senior financial analyst, a favorable settlement was promptly reached.

GREECE (Maritime Security)

On behalf of a private UK maritime security company, we successfully negotiated with an international shipping company, with offices in Athens, the recovery of almost $100,000, owing for security services rendered on transit through the Indian Ocean along the east coast of Africa.

ENGLAND (Malaysia)

On behalf of a Malaysian arms broker which was cut out of a deal in arranging for the sale of missiles and other weapons from a UK defense contractor to a Sovereign nation, we brought an arbitration action in the London Court of International Arbitration. After meticulous preparation and presenting our client’s case to the contractor, it paid the claim just prior to the scheduled hearing.

MIDDLE EAST (U.S. Government)

On behalf of a governmental entity, and through the assistance of local country counsel, and the assistance of the U.S. Consular Service located in this country, we negotiated a successful conclusion to a substantial claim against a government agency of this Middle Eastern country, which provided a repayment of over $400,000, on a claim which would have required protracted, expensive litigation with an uncertain outcome.