OSX Brasil SA, the financially strapped shipbuilder controlled by Brazilian tycoon Eike Batista, posted a third-quarter loss of 1.84 billion reais ($801 million), Reuters reported. The results came in late on Monday, after a Rio de Janeiro court accepted a bankruptcy protection request from OSX, giving it and two of its three nontraded subsidiaries, OSX Construção Naval Ltda and OSX Serviços Operacionais Ltda, 180 days to prepare a restructuring plan. In the third quarter of 2012, OSX earned 6.92 million reais. It has been dragged down along with Batista's flagship oil company, OGX Petróleo e Gas Participações SA, which with 11.2 billion reais in debt sought court protection from creditors in Latin America's largest bankruptcy case. OGX, which failed to achieve lofty oil production goals to generate revenue, was OSX's only big customer. OSX's earnings before interest, tax, depreciation and amortization were a negative 1.839 billion reais, compared with a positive 13.1 million a year earlier. Read more.
Daily Insolvency News Headlines
Wed., November 27, 2013
Fifty-eight of the 73 stores of insolvent German home improvement retailer Max Bahr are likely to be saved in a deal with supermarket chain Globus, two people familiar with the negotiations said on Tuesday. Max Bahr was due to start clearance sales on Wednesday, like those currently being held at stores of its parent company Praktiker, which has also filed for insolvency. But German group Globus has reached a last-minute agreement with Royal Bank of Scotland, which owns 66 of Max Bahr's stores, and contracts should be signed on Wednesday, one of the sources said. The second source said talks were still ongoing and that the situation looked promising. German newspaper Hamburger Abendblatt had earlier reported the deal. Praktiker shares, which have lost 98 percent of their value over the past year, were up 12 percent at 0.028 euros ($0.04) at 1557 GMT. RBS and Max Bahr's insolvency administrator declined to comment. A Globus spokesman was not immediately available to comment. Praktiker, whose blue and yellow branded stores selling paints, tools and gardening products are a familiar sight in Germany's out-of-town shopping centres, filed for insolvency in July after talks with creditors failed. Read more.
Pensioners in developed economies are no longer being spared the worst effects of the financial crisis as fiscal austerity programmes aimed at curtailing spending on the elderly start to kick in, the OECD has warned, the Financial Times reported. Spending on pensions, which accounts for nearly a fifth of government outlays on average across the 34-nation Organisation for Economic Co-operation and Development, is being limited through a variety of benefit changes including raising state retirement ages and freezing – or even cutting – payouts. The OECD’s Pensions at a Glance 2013 said that even with these measures, spending on retirement systems is likely to increase simply because the percentage of population living until very old age is rising. As a result, member states are struggling to balance sustainability – offering pensions that taxpayers can afford – against the risk of significant numbers of elderly falling into poverty. Read more.
Indebted Finnish miner Talvivaara said on Tuesday its biggest creditor, zinc producer Nyrstar, has withdrawn support for its court application for a corporate restructuring, prompting the court to ask for more information, Reuters reported. Talvivaara, hit by falling nickel prices and chronic production problems, earlier this month halted operations and petitioned the Espoo District Court near Helsinki for a court-supervised reorganisation and warned it might face bankruptcy if the process failed. But the court on Tuesday said it wanted the company to provide more information and Talvivaara later confirmed that Nyrstar, the world's largest zinc producer which had contracted to take Talvivaara's future output of zinc concentrate, had withdrawn its support. Nyrstar had paid Talvivaara 232 million euros ($313 million) in advance for zinc deliveries, making it the miner's biggest creditor, court documents showed. Last week Talvivaara said un-named stakeholders had baulked at providing additional funds to help restructure debts of more than 300 million euros ($400 million). Analyst Antti Viljakainen from Inderes Equity Research said it looked like Talvivaara now needed to find new supporters to enter the overhaul process. "It was surprising that Nyrstar withdrew. Until now they have been one of Talvivaara's most patient supporters," he said. Read more.
U.K. Treasury chief George Osborne on Tuesday gave in to parliamentary demands to enhance the Bank of England's powers to set the amount of capital that banks must hold, but he warned it against using the so-called leverage ratio to impose unnecessary burdens that might restrict economic recovery, The Wall Street Journal reported. Mr. Osborne, chancellor of the Exchequer, said in a letter to central bank Governor Mark Carney that "the time is now right" for the BOE's Financial Policy Committee, which is responsible for tackling risks to the financial system, to consider whether it needs additional powers, alongside its existing ability to set banks' risk-weighted capital requirements. Mr. Osborne singled out the leverage ratio, a measure that sets the amount of capital banks must hold against their total assets unadjusted for riskiness. The Parliamentary Commission on Banking Standards, which has accused the government of going soft on banks as the U.K. gradually recovers from the financial crisis, has been lobbying for the immediate granting of such powers to the BOE policy committee, under a Banking Reform Bill currently going through Parliament. Read more. (Subscription required.)
France‘s second-biggest courier company was placed under receivership Tuesday, four days after it filed for bankruptcy, with the threatened loss of 5,200 jobs, Europe Online magazine reported. The bankruptcy of Mory Ducros is one of the biggest in France since the collapse of Moulinex household appliances maker in 2001. The company was given six months to overcome its difficulties or find a new owner. Mory Ducros, which was born out of the merger a year ago of Mory and Ducros Express (formerly DHL France), has been losing 5 millions euros (6.76 million dollars) a month for the past year, Productive Recovery Minister Arnaud Montebourg said last week. Montebourg said the company had received expressions of interest in the business from potential buyers but had yet to receive a firm offer. Read more.