27 December 2011 15:23 [Source: ICIS news]
HOUSTON (ICIS)--Cereplast has tightened customer credit terms amid a worsening economic outlook in ?xml:namespace>
However, Cereplast remains confident that it will be able to collect all outstanding receivables, it said in a statement.
As part of its measures, Cereplast halted shipments to customers with outstanding invoices over 150 days, it said.
Furthermore, Cereplast has implemented “more rigorous credit practices”, including requiring advance payments, letters of credit or bank guarantees.
Also, Cereplast CEO Frederic Scheer met senior-level executives of all customers with overdue invoices over the last two months.
Cereplast said two European customers accounted for $13.7m (€10.5m), or 65%, of the company’s outstanding receivables as of 30 September 2011.
In related news on Tuesday, Switzerland-based refiner Petroplus reported that lenders have frozen about $1bn in uncommitted credit lines under a revolving credit facility.
($1 = €0.77)
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