McCain, the chip maker, frozen out by Credit insurer
The stories relating to the withdrawal of credit insurance cover on well known organisations continue to roll in. The Sunday Telegraph ran a piece this weekend relating to Euler Hermes pulling insurance cover for suppliers to the UK arm of McCains Foods. Policyholders of EH will not have any of their trade with McCains covered by insurance because the insurer has not seen later financial accounts than the 2007 statutory accounts filed at Companies Registry. Apparently, despite trying, Euler has not been able to extract more up to date info from McCain itself.
The need for up to the minute monthly management account information is growing amongst banks and credit insurers in this tough economic downturn, but even if they obtain this data, what is to say that the information is trustworthy? Management account information is not validated or audited.Its a dilemma for all credit granters , but it appears in this case that if McCain comes forward to Euler with its accounts, cover may be restored for suppliers.