Debtwired! How trade credit insurers could gate crash restructurings with Horst Fuerpass
Jun 17, 2025
Horst Fuerpass, a partner at Falkensteg and debt advisory expert, joins Johannes Koch to delve into the critical yet often overlooked role of trade credit insurers. They discuss how these insurers support financial stability in the automotive sector and the risks involved in engaging them at the wrong time. Key insights reveal that miscommunication can lead to liquidity crises or even bankruptcy, emphasizing the need for timely collaboration. Fuerpass shares case studies that underscore the importance of trust and effective dialogue with these crucial stakeholders.
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Trade Credit Insurer Role
- Trade credit insurers protect businesses from customer non-payment by covering losses.
- They take over defaulted receivables and attempt recovery from the defaulting customer.
TCIs Crucial for Liquidity
- If trade credit insurers refuse coverage, suppliers may demand upfront payment, creating liquidity strains for customers.
- Although they aren't directly contracted with customers, TCIs enable crucial short-term financing.
Insurance Coverage Not Guaranteed
- Trade credit insurers can reduce or cancel coverage if a customer faces financial difficulties.
- Maintaining insurance coverage is not guaranteed during restructuring stages.