Australian court awards PET resin maker Leading Synthetics compensation of US$688,915 from credit risk insurer after battle over contract following customer's 2008 bankruptcy
October 18, 2011
– Leading Synthetics Pty. Ltd. will receive US$688,915 from credit risk insurer Atradius Credit Insurance N.V. after an Australian court ruled in its favor, Plastics News reported Oct. 14.
The resin manufacturer alleged it had made a contract with the insurer covering the company for $781,528 in losses if its client Signum Specialities failed to pay for resins received in 2007 and 2008.
Signum went into liquidation in November 2008, and was unable to pay Leading Synthetics about $2.2 million, according to the article.
Atradius asserted that it had not decided to accept the risk since Leading Synthetics had not supplied relevant information.
Justice Cameron Macaulay ruled that a contract did exist, and thus Leading Synthetics was entitled to 90% of the agreed cover, or $688,915, after premiums and taxes were deducted.
Leading Synthetics is based in Melbourne, Australia, and manufactures PET resin, polyester fiber and filament yarns for markets in Australia, New Zealand and Europe.
The primary source of this article is Plastics News, Akron, Ohio, on Oct .14, 2011.