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To cover the possibility that Brazil will devalue its currency, Vitech must provide $1.25 in receivables for every $1 it receives from the acceptance corporation.
In his letter, Mr. Corwick said Jersey City had accumulated more than $20 million in receivables -- amounts the city had anticipated getting but not yet received -- that it might never collect.
Gillette will keep about $30 million in receivables, it said.
The portfolio has about $2.3 billion in receivables, the bank said.
It has 100 employees, 4,000 commercial customers and $950 million in receivables.
His firm typically has $4.5 million a week in receivables, he said, and payments started slowing in November 2008.
Similar(5)
It has $2.6 billion in outstanding loans and about $28 billion in corporate debt in addition to the $1.5 billion in receivable financing.
Because of this natural selection, a bank is mostly in the receivables in its derivative business with corporates.
Citi held some $200 million in Parmalat receivables in an off-balance-sheet entity known as a conduit.
It consolidated many back-office operations last year, resulting in backlogs in accounts receivables, and billing problems that infuriated customers.
It also may have booked $68 million in accounts receivable in the wrong period, it said.
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