Gala Coral, the private equity-owned UK gambling group, has accused Euler Hermes, one of the world’s largest credit insurers, of “appalling behaviour” in withdrawing cover against unpaid bills to Gala Coral’s suppliers. Drinks and packaging suppliers to the gambling group were denied cover on the grounds that insurers were worried about the future of companies backed by private equity, say people close to Permira, Candover and Cinven, Gala Coral’s owners. But people close to Euler Hermes say the withdrawal of cover was linked to Gala Coral’s debt problems and refusal to supply information.
