Recovery Under Administration

Recovery Under Administration

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January, 2023

As per the information provided by the client, our associate office started chasing the debtor company for the payment.

We contacted the debtor and they cited severe cash flow issues towards the non- remittance of the outstanding sum. Pursuant to our rigorous followups though the debtor assured to provide payment plan but failed to keep promise to provide. Pursuant to our rigorous follow ups and our constant pressure the debtor offered to pay in installments but we received a longer payment plan. However, Keeping in view debtor's financial condition we pushed the debtor to lessen the installments to ensure maximum recovery before the company runs out of finance and we obtained revised payment plan.

We evaluated all aspects of the case & felt that the client should accept the proposal. Accordingly, we forwarded the debtor’s proposal to the client and within a month client gave his consent on the debtor’s proposal. Accordingly, we successfully recovered approx a lac dollar from the debtor but eventually as we expected due to extremely bad financial condition the debtor voluntarily commenced business rescue and placed itself under supervision of Business Rescue Practitioner. As per the law of the company, the BRP couldn’t send money out of country so the payment was transferred to trust account of our partner in South Africa. The money was remitted to the exporter from MNS partner in South Africa- with all link letter for RBI and bank purpose.