Electra Private Equity has written down the value of office supplies business Vasanta by 95 percent after the removal of credit insurance forced suppliers to ask for payment on delivery, in turn pushing up company debt levels.

Vasanta is the parent company of UK ‘super wholesaler’ Vow. The company was formed in June 2007 through the management buyouts of Kingfield Heath, ISA Group and Supplies Team.

Debt facilities totalling 198 million pounds were provided by Royal Bank of Scotland and Allied Irish Banks, with Electra contributing 70 million in equity, according to Thomson Reuters LPC data.

Electra said its priority is to protect the value of its existing portfolio, injecting additional funding if needed