Pune Pharma Exporter Recovers USD 280,000 After EU Buyer Default Using ECGC Cover

Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login

India-Spain

Challenge

A Pune-based generic pharma company had been supplying a Spanish pharma distributor on 60-day open account terms for 2 years. The relationship was established, and the Indian exporter had not taken ECGC cover. The Spanish distributor entered insolvency proceedings in April 2025. Outstanding receivables from the Indian exporter were USD 280,000 across 4 unpaid invoices.

Outcome

ECGC claim settled: USD 140,000 (50% of USD 280,000 outstanding). Spanish insolvency proceedings estimated to return 15-20 cents on the dollar — expected additional recovery USD 42,000-56,000. Total expected recovery: approximately USD 182,000-196,000 of USD 280,000 outstanding. Exporter has since obtained ECGC Standard Policy for all EU buyers.

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