Client: Information Technology supplier (ASX Listed)
Project: To collect approximately $200,000 debt from insolvent Singaporean debtor
Service: Debt Collection
Kaizen Enterprises was engaged by a prominent listed Australian Information Technology supplier to recover around AUD$200,000 from a Singaporean debtor which was insolvent and was ceasing trading. Without making an appointment, our principal, Ian James, flew to Singapore and met with a director of the company. The director agreed to pay $10,000 immediately and discuss the debt further.
Over the ensuing months, it emerged that the debtor company was owed $3 million by a difficult syndicate in Hong Kong. The director agreed that if Kaizen Enterprises could help him to recover these monies our client would be paid in full. James then flew back to Singapore and was given access to legal files for two concurrent matters between those parties, being heard in Hong Kong and Singapore.
Kaizen Enterprises subsequently produced a strategy 'Brief' for discussion with the debtor company's solicitors, to help guide the matter out of Hong Kong and return it to the Singapore International Arbitration Commission. We also negotiated the assignment of a debt of $40,000 owed to the debtor by a third party, to our client.
Despite a number of cultural barriers, Kaizen Enterprises was able to settle for repayment of around $160,000 in instalments. This was achieved despite persistent rumours that the debtor company would not be paying any overseas creditors.
Kaizen Enterprises was able to recover the majority of the debt for three main reasons: