Payment Protection Plan Rules

The new Payment Protection Plan regime applies to invoices issued after 1 January 2013 against terminated companies, and taking into account he following limitations:

• For 2013 invoices to be covered, they must be reported for Slow Payers within 90-120 days after the invoice date.
• Unpaid invoices reported after 120 days of the invoice date will not be considered for PPP compensation.
• Unpaid invoices reported before 90 days of the invoice date will only be considered in case of termination of an Affiliate. These invoices need to be reported to FIDI within 45 days after termination.

Invoices up to 31 December 2012 will be covered by the old PPP-scheme.

Within 60 days after the termination of an Affiliate, FIDI will process all correctly reported invoices, calculate the amounts for the distribution (within the limits defined below) and inform the potential beneficiaries of the result.

The limits of the distribution are as follows:
• the annual pay-out cap of the PPP is €1 million;
• the pay-out per defaulting company is capped at €500,000;
• the annual cap per receiving party is €200,000 (i.e. irrespective of the number of slow payer “cases” for this party).

The distribution will follow within 90 days after termination (in case of bankruptcy and subsequent immediate termination). However, if the terminated Affiliate is still operating after its termination from FIDI, the following procedure and distribution timetable apply:
• the Affiliate will receive a written commitment from FIDI to pay 90% of the eligible invoices (within 6 months) in exchange for immediate and full subrogation (i.e. transfer of ownership) of the eligible invoices;
• if the total amount of claims is above 1.000 EUR
  - payment of 45% after receipt of subrogation document;
  - start of a debt collection action by FIDI (immediately) collection;
  - 45% after debt collection (and within 6 months after termination)
• if the total amount of claims is up to 1.000 EUR:
  - payment of 90% after receipt of subrogation document.