CASE Maderas Peruanas SAPrepared by Prof. Daniel CasianoMaderas Peruanas is a Peruvian Company founded in 1968 by Mr. Giacomo Franchini dedicated to drying and processingwood into finished products. Maderas Peruanas’s products are sold locally but mainly exported to international marketslike Europe, North America, and Asia. The varieties of tropical wood used for production includes species like Cumaru ,Shihuahuaco , Capirona , among others. Among the finished products sold are: Stairs, Lumber and Moldings andHardwood FloorsRecently, Maderas Peruanas has received a purchase order from a buyer in Italy named WOOD IMPORT ASCHIERO SPA.The purchase order has the following details:Items : Wood Floors ( DECKS ) 35x35Material: CumaruDesigns : According to catalogQuantity: 300 m2Price: U.S. $ 250 FOB ( Incoterms 2000) per m2Shipping : 1 shipment 300 m2Terms of payment: T / T 75 days B / LTime of shipment: 45 days confirmed after P.O. confirmation.Additional information:For extraction of raw materials and wood processing, Maderas Peruanas invests about 30 % of the P.O. This whole processtakes at least 45 daysMaderas Peruanas has three properties in Peru:• A factory located on the Carretera Federico Basadre 11,250 km in the city of Pucallpa, Department of Ucayali.• A sales and exports office located at 1880 Colonial Avenue, Lima.• A branch and Showroom located at 255 Avenue Builders - La Molina.1.What are the credit facilities to be required by Maderas Peruanas for this operation? Indicate the amount and term.Consider that the bank covers a maximum of 90 % of the total transaction.2.Consider that the loan is offered by two banks at the following rates:BANK A: Annual effective rate in US Dollars 10.5% BANK B: Libor +950 bpsWhich one is the most convenient? Calculate interests to be paid for each option.3.What condition would Maderas Peruanas consider in order to support its credit facilities with Banks? 4.What would be the total cost (interest + commissions) if Maderas Peruanas offers Sepymex to guarantee Pre Shipment?5.Compendium of Cases III – Page 1 of 13
CASE MULTIPAPELES S.A.C.Prepared by Prof. Daniel CasianoThe company MULTIPAPELES in its search for new suppliers found an excellent supplier in Germany named OVERSEASTRADING GMBH. The value of the material to be imported is US 57,500 dollars in CFR terms. As agreed between theparties, payment is due 30 days from B/L with an avalized documentary collection. MULTIPAPELES sells its products after90 days from the invoice date, so the credit terms offered by the supplier are not enough. According to the customs agentof the buyer, INTEGRAL LOGISTICS SRL, duties and taxes to be paid to release goods are approx. up to 20% of the totalpurchase order.1.Indicate the credit facilities to be required by MULTIPAPELES SAC. Indicate amount, term and conditions.