Daily Insolvency News Headlines

Fri., August 28, 2015

Fri., August 28, 2015

Signs are emerging that Chinese property investments abroad will maintain their torrid pace despite the market turmoil, as wealthy individuals and well-heeled companies seek to shelter their money in more stable havens abroad. In Australia, where China earlier this year topped the U.S. as the biggest source of foreign real-estate investment, officials are worried that wealthy Chinese investors will pour more money into an already overheated Australian property market. Chinese investors are “looking for safe, stable, secure investments,” Treasurer Joe Hockey told The Wall Street Journal on Wednesday. “Australian real estate is very attractive for them in that regard,” he said, singling out “skittish Chinese investors.” China’s currency devaluation earlier this month sparked a global sell off of stocks amid concern over the nation’s economic health. After dropping by nearly a quarter, the Shanghai Composite Index rose 5.3% on Thursday. Any rise in Chinese investment would come despite the yuan’s diminished buying power abroad. Read more. (Subscription required.)

Fri., August 28, 2015

Ukraine and its main creditors agreed on Thursday to restructure $18 billion of the country’s foreign debt, in a rare deal between bond funds and a wobbly, emerging-market government, the International New York Times reported. If the deal is approved by the Parliament of Ukraine, it would write off 20 percent of the nation’s foreign debt, helping to avoid a drawn-out, Greek-style negotiation with large bondholders. The terms would also offer financial relief to Ukraine during a deep recession and an armed conflict with pro-Russia separatists. But it leaves unanswered whether lenders not represented in the negotiating committee — including, critically, Russia — would comply with the deal. The committee of creditors backing the proposal represents holders of about half of the debt. Read more.

Fri., August 28, 2015

John Purcell, a former executive director of Irish Nationwide Building Society, has launched a High Court challenge to the constitutionality of the Central Bank’s inquiry into alleged regulatory breaches at the financial institution, the Irish Times reported. Mr Purcell, along with several others, is the subject of an inquiry into allegations that certain proscribed contraventions were committed by INBS, and certain persons concerned with its management, between August 2004 and September 2008. Irish Nationwide was nationalised in 2010 after receiving a €5.4 billion bailout. It was folded into Irish Bank Resolution Corporation in 2011, alongside Anglo Irish Bank, for wind down. IBRC was liquidated by the State in February 2013. Read more.

Fri., August 28, 2015

Baha Mar Ltd. has filed a plan outlining the way the $3.5 billion stalled resort project in the Bahamas hopes to restructure in chapter 11 ahead of a hearing Friday to dismiss its U.S. bankruptcy case, The Wall Street Journal reported. The structure of the proposed plan swaps the ownership of Baha Mar for new financing, meaning whoever finances the project will end up owning the Bahamian resort, a key driver of the island nation’s economy. The plan also issues replacement debt to the resort’s current lender and unsecured creditors. So far, the project has been largely funded by China’s Export-Import Bank, which is already owed $2.4 billion. However, the new round of financing in Baha Mar’s proposal is theoretical at this point, with no lender or amount named in court documents. An insolvency proceeding is also pending before the Supreme Court of the Bahamas, a court that has refused to recognize the rulings of the U.S. court. A judge in the Bahamian proceeding heard arguments last week and is scheduled to rule Sept. 4 on whether that case will be thrown out or a court-appointed liquidator will take the reins of the project. Read more. (Subscription required.)

Fri., August 28, 2015

State owned enterprise minister Todd McClay says Landcorp won't turn a profit for "the next few years" and is again foreshadowing land sales, Stuff.co.nz reported. Record low dairy prices saw profits plunge by $25m, Landcorp said Thursday. It's got debts of around $250 million and is locked into an expensive dairy conversion project of 26,000 hectares at Wairakei, near Taupo. McClay says there will be no taxpayer-funded bailout for the state-owner farmer. And he rejects Labour's comparisons with troubled coal company Solid Energy, which is in voluntary administration. "There is no need for [government support] at the moment. They have a lot of assets...they are going to have to make some other decisions around that," he said. McClay is "disappointed" with the result, but says it is "not entirely unexpected." The Government is in discussions with Landcorp about reducing debt, but it is unlikely to be released from the conversion contract, signed in 2004. Read more.

Fri., August 28, 2015

The opening of regular insolvency proceedings on the Walsum Papier magazine paper mill in Germany has been postponed to the start of October, EUWID Pulp and Paper reported. According to information from the administrators' office, the payments of insolvency benefits covered by the German state could have been extended for another month until the end of September. Meanwhile, operations at the 205,000 tpy LWC paper machine PM 10 are running to capacity as the mill's customers continue placing orders with the company, despite it being in preliminary administration. However, Walsum Papier could not give any supply assurances for the long term, the spokesperson for the administrators' office explained. Norske Skog Walsum filed for insolvency in June and changed its name into Walsum Papier. The opening of regular insolvency proceeding was originally scheduled for 1 September. Read more.

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