Superquinn suppliers get policy boost

SOME SUPERQUINN suppliers who lost out when the banks placed it in receivership over a fortnight ago are set to be paid from credit insurance policies taken out on sales to the grocery chain.

Last month, three banks owed €275 million in property loans by Superquinn appointed Kieran Wallace and Eamonn Richardson of KPMG as receivers to the business, which is going to be taken over by franchise operator and wholesaler Musgrave. The move left suppliers with a shortfall estimated at about €25 million.

Yesterday, credit insurer Atradius said it would be paying out on claims worth “several million” to some of the chain’s suppliers who were not paid for their goods as a result of the receivership.

The multinational’s country manager, Stuart Ramsden, confirmed that Atradius would be paying out on claims made by suppliers. However, the insurer was not in a position yesterday to say how much it would paying out nor could it say how many of the chain’s suppliers it has covered.

A spokeswoman said it was still processing claims as its cover only applied if payment had not been made after a defined period of time.

Superquinn owed suppliers about €50 million when the banks, led by Bank of Ireland, took control last month.

The receivers said they would pay for stock held by the company and anything supplied during the period of the receivership. However, they could not pay for goods the chain had sold but for which the group had yet to pay.

Musgrave has since said it will fund a €10 million compensation scheme for creditors who lost out as a result of the receivership. A large number of small suppliers, who did not have cover, were hit when the banks took over.