Daily Insolvency News Headlines

Africa (1)
Brazil (1)
Brazil (1)
Germany (1)
Greece (1)
Ukraine (1)

Tue., August 4, 2015

Tue., August 4, 2015

Investors issued a vote of no confidence in Greece’s economy on Monday, dumping stocks as trading on the Athens exchange resumed for the first time in five weeks, the International New York Times reported. A plunge of more than 16 percent for the main Greek index and a 30 percent sell-off for bank stocks were the latest signs of Greece’s shattered economy. But the resumption of trading was a necessary step as Greece tries to emerge from controls on financial activity that the government, confronted with a bank run, imposed at the end of June. Analysts said stock prices could begin to recover in the weeks to come, bringing much-needed capital into the country, as investors with an appetite for risk look for bargains. In yet another sign of trouble, though, new survey data on Monday showed a fall in Greek manufacturing activity since the government imposed controls in late June on the flow of money out of Greece. Much depends on the outcome of negotiations between government officials and representatives of the country’s international creditors on a multibillion-euro bailout, Greece’s third in five years. The talks entered a second week on Monday. Read more. (Subscription required.)

Tue., August 4, 2015

Out in the Atlantic Ocean, 130 miles off the coast of Brazil, an oil ship the length of New York City’s Chrysler building is at the center of an escalating legal war. This battle pits the crude producer founded by Eike Batista, Brazil’s most notorious ex-billionaire, against bondholders who loaned another of his companies $500 million, Bloomberg News reported. That company -- Batista’s shipbuilder, OSX Brasil SA -- lost the rights to the vessel when it defaulted on bonds in March after filing for bankruptcy protection in 2013. The default hasn’t stopped the oil company, known as OGpar, from continuing to pump oil -- free of charge. To bondholders who now own the rig, OGpar says: If you want it, come and get it. The clash is the latest chapter in the saga of Brazil’s once-richest man, an investor-darling-turned-pariah who sold shares in six companies in a span of six years and lost more than $30 billion even faster when his commodities and energy empire collapsed. It’s also a cautionary tale for Brazilian creditors, whose claims can get tied up for years and even decades in the nation’s maze-like legal system. Read more.

Tue., August 4, 2015

Bondholders of Ukraine’s third-biggest bank voted in favor of changing terms on $1.3 billion of debt as negotiations continue on restructuring a further $19 billion of sovereign securities, Bloomberg News reported. Creditors of the State Savings Bank of Ukraine, known as AT Oschadbank, agreed to push back maturity dates by seven years and increase coupons on two bonds and a subordinated loan, Chief Executive Officer Andriy Pyshnyi told reporters in Kiev on Monday. More than 90 percent of bondholders were in favor of the new terms. Oschadbank follows State Export-Import Bank of Ukraine in pushing through a restructuring deal after the country was set the task of saving $15.3 billion in debt-servicing costs by the International Monetary Fund in February. Neither agreement asks for a writedown to principal, a condition the Finance Ministry is trying to impose on the Franklin Templeton-led creditor group negotiating with the sovereign. Under the agreement, coupons will be raised to 9.375 percent on the bank’s bonds maturing in March 2016 and 9.625 percent on securities due in March 2018. Principal will be repaid in installments starting 2019 for the 2016 notes and 2020 for the 2018 bonds, according to the statement. Read more.

Tue., August 4, 2015

A corruption probe threatening to engulf Brazil’s government intensified as police arrested a former top minister of ex-President Luiz Inácio Lula da Silva for allegedly orchestrating a scheme that looted billions of dollars from oil giant Petróleo Brasileiro SA, The Wall Street Journal reported. Authorities say José Dirceu, who served as Mr. da Silva’s chief of staff from 2003 to 2005, was one of the principle architects of a bid-rigging-and-bribery ring that funneled money stolen from state-run Petrobras into the pockets of politicians and parties, including the ruling Workers’ Party. Mr. Dirceu was arrested Monday at his home in the capital of Brasília on suspicion of corruption and money laundering. He hasn’t been charged. The arrest is yet another blow to the top leadership of the leftist Workers’ Party. Mr. Dirceu was among its founders, along with Mr. da Silva, and played a key role in getting him elected president. In March, Workers’ Party Treasurer João Vaccari Neto was charged with corruption and money laundering for accepting allegedly illegal campaign contributions that prosecutors say he solicited from a Petrobras official. Read more. (Subscription required.)

Tue., August 4, 2015

Yager, the German developer that was dropped from working on Dead Island 2, has filed for insolvency for the team that was working on the game, Breitbart News reported. Timo Ullmann, Yager CEO, said, “The insolvency filing is a direct result from the early termination of the project and helps protecting our staff. In the course of the proceedings, we gain time to sort out the best options for reorganizing this entity.” Ullmann did say that the Dead Island 2 team’s wages are safe for at least several months. Read more.

Tue., August 4, 2015

The collapse in commodity prices and the rise of the African middle class has flipped the fortune trends of the continent's richest people. "The go-go years of African billionaires whose wealth has been built around oil is over," said Martyn Davies, CEO of Johannesburg, South Africa-based investment research firm, Frontier Advisory. "We have placed far too much emphasis on a handful of people making significant capital through distorted-priced resources. True wealth creation is where billionaires are created from non-resource assets." Growth in Africa's middle class has increased demand for services, an African central bank governor said in June, while a recent study from South African research company New World Wealth labeled construction, financial services and property development as leading sources of future wealth creation on the world's poorest continent, according to a Bloomberg report. Read more.

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