Hi All,Could anyone please provide some clarity around bad debt...

Hi All,
Could anyone please provide some clarity around bad debt expense for this business.
And how CCP go about reporting / managing this risk?

I expect that it is very difficult to know the quality of all debts within the PDL game, and it would always involve a high degree of estimation (a bit like insurance pricing). So if CCP can buy debt with face value of $100M for $30M, and try and recover $50M? Would it be something like this?

I am struggling to see how the CCP business model would be so badly impacted by the recession, and there will be more bad debts and PDL's in the market due to increasing unemployment etc. Therefore, they should be able to get better pricing on PDLs (has been an issue in the past). Hard to say what this would do to recovery rates etc Could one of the long term holders please post some details on this?

PS I am a bit worried about the Directors lack of buying as share price has crumbled down 60%. Makes me think that the SP fall is justified!