A United States supplier of oil-field parts shipped a large order to a Libyan oil enterprise yet received only the initial payment. After months of silence from the buyer, the outstanding balance remained unpaid and appeared uncollectable, prompting the firm to engage Qabas to obtain full settlement without costly litigation or third-party debt collectors.
The Situation
When Qabas stepped in, the Libyan company’s leadership had been entirely replaced. The new management first proved unreachable, then disclaimed all knowledge of the prior engagement. The supplier’s extensive paper trail—signed purchase agreement, shipping documents, and proof of the down payment—went unanswered; telephone calls and e-mails were continually redirected. Because the buyer’s accounts showed no entry for the shipment, the debt sat outside internal audits. Lacking local insight, the supplier risked writing off a high seven-figure receivable and straining working-capital lines at home.
Our Approach
Qabas conducted a focused review of every contractual and banking document, confirming full compliance with Libyan commercial law. We then mapped the buyer’s current decision chain, identifying finance and audit officials with authority to approve payment. Rather than threaten court action, we prepared a concise case file that outlined the transaction history and the compliance risks of leaving the liability unrecorded, aiming to prompt quiet internal reconciliation instead of a public dispute.
Implementation
Acting through an in-country legal affiliate, Qabas delivered the dossier directly to the buyer’s finance director and secured an on-site meeting. The documentation revealed a clerical oversight: final clearing papers had never been entered into the accounting system, leaving the liability off the books. Once this omission was acknowledged, we negotiated a structured settlement schedule acceptable to both treasury teams and monitored each transfer through the banking network until the balance reached the supplier’s dollar account in full.
Results
The outstanding sum was settled promptly, at a fraction of the cost and effort that international arbitration would have demanded. The supplier’s cash position returned to plan, credit lines stayed intact, and future sales discussions with the Libyan firm resumed on cordial terms. Meanwhile, the buyer closed an audit gap and avoided reputational exposure. Qabas delivered a swift, pragmatic resolution that safeguarded financial interests and preserved long-term trading relations.
