Credit insurer threatens ICL

ICL and Fujitsu are to hold crisis talks with Euler Trade Indemnity this week after the credit insurer threatened to remove cover...

ICL and Fujitsu are to hold crisis talks with Euler Trade Indemnity this week after the credit insurer threatened to remove cover on ICL's transactions with suppliers next month.

ETI presented an ultimatum to ICL that it would stop providing credit insurance cover unless its Japanese parent Fujitsu provided more financial security.

An ICL spokesman said ETI had sent an e-mail to all its suppliers last week explaining the situation and its demands.

The spokesman said he was aware of the consequences of the threat, which would make it difficult for ICL, its Multivendor Computing and tplc units and its services operations, to source product and supplies.

He added ETI's move would affect "all of Fujitsu's operating companies in Europe" should it be followed through.But he was confident the meeting would allow ICL to answer ETI's concerns and resolve any problems.

ETI's ultimatum to ICL comes as the credit insurance group is believed to be reducing its exposure in the European IT market (see MicroScope, 5 March).

One industry insider called ETI's threat "ridiculous" and said it showed a lack of foresight.

"On this occasion, the insurer is acting too hastily. It needs to take a step back and have a proper look. If it's basing this on the company's numbers, it needs to see that they do not reflect its true position," the source argued.

ETI said it would not comment on individual cases.

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