Credit rating agency S&P Global Ratings said on Wednesday it has downgraded Belize’s foreign currency ratings to SD from CC/C after the Central American country announced details of a debt restructuring plan this week, Reuters reported. Belize in July proposed to creditors that it would capitalize some scheduled payments on its $526 million Eurobond maturing in 2034 because it could not afford to meet them as it battled with the effects of the coronavirus pandemic.
Dutch bank ABN Amro said it would slash the size of its corporate and investment banking business after a series of high-profile losses highlighted excessive risk-taking in the division and exacerbated the impact of coronavirus, the Financial Times reported. The state-backed bank on Wednesday said it would wind down all of its non-European corporate banking operations and stop providing trade and commodity finance, following a review led by Robert Swaak, the new chief executive.
President Recep Tayyip Erdogan says Turkey’s banks are “doing fine.” But as the lira spirals ever lower, debt investors are taking a less sanguine view. The bonds of three Turkish lenders are trading at distressed levels, which shows the deteriorating opinion of investors on the ability of the companies to repay their obligations, even though the banks remain profitable and highly capitalized, Bloomberg News reported.
Lebanon may be in line for $298 million in emergency aid after the Beirut port blast, but the more than $30 billion that some estimate it may need to rebuild its shattered economy will not be forthcoming without reform, the International New York Times reported on a Reuters story. Such change could be stalled by the resignation of Lebanon's government, while a financial rescue plan drawn up in April is likely to have to be reviewed and possibly even ditched by a new administration, two financial sources close to the plan said.
KBC Bank Ireland’s chief executive, Peter Roebben, has given his strongest indication that the bank may sell long-standing problem mortgages to avoid being forced by regulators to set aside more expensive capital against these loans, The Irish Times reported. “We have to keep the option of a potential sale of the deeper, longer-lasting historical non-performing book,” Mr Roebben said in a wide-ranging interview with The Irish Times.
The insolvency case of Era Infra Engineering, one of the 12 large loan default cases referred to National Company Law Tribunal (NCLT) for insolvency proceedings by Reserve Bank of India (RBI), is unlikely to see any resolution this year, say sources involved with the resolution process, Business Today reoprted. The Era Infra case was referred to NCLT in June 2017 with 11 other cases including the likes of Essar Steel, Bhushan Steel, Lanco Infratech and Jaypee Infra.
Eurozone industrial production rose less than economists had expected in June, raising questions about how soon the nascent recovery in the bloc’s pandemic-stricken economy will run out of steam, the Financial Times reported. The 9.1 per cent rise in eurozone factory output in June showed that the region’s manufacturers are bouncing back from the heavy blow of the coronavirus pandemic. But the rebound was less than the 10 per cent consensus forecasts of economists surveyed by Reuters.
South Africa’s Rand Merchant Bank, the investment banking arm of FirstRand Ltd., has been appointed as an adviser to help the government assess offers for stakes in its insolvent national airline, according to two people familiar with the situation, Bloomberg News reported. The state is looking to raise more than 10 billion rand ($575 million) that South African Airways administrators say is needed to revive its operations eight months after going into bankruptcy protection.
“Hard times are here” was how chancellor Rishi Sunak greeted this morning’s data showing the UK officially in its first recession — defined as two consecutive quarters of negative growth — since the global financial crisis, the Financial Times reported. The 20.4 per cent fall in output — the biggest UK quarterly fall ever and the largest in any of the world’s major developed economies — led to calls from business groups for “bold action”, especially as government job support schemes begin to wind down.
The National Company Law Appellate Tribunal (NCLAT) has set aside a plea challenging an NCLT order that rejected the petition to initiate insolvency proceedings against Tata Chemicals for claimed operational debt of Rs 68.44 crore, CNBC-TV18 reported. A three-member NCLAT bench upheld the order of the Mumbai bench of the National Company Law Tribunal (NCLT) that dismissed the plea of Allied Silica to initiate insolvency proceeding against the Tata group firm.
Resources by Country & Region
Updated Insolvency Laws have been published in 2019 for Switzerland. We are grateful to Prof. Dr. Rodrigo Rodriguez, Rechtsanwalt Wissenschaftlicher Berater (Eidgenössisches Justiz und Polizeidepartement EJPD, Bundesamt für Justiz BJ, Direktionsbereich Privatrecht) for sharing this information. Twelve countries remain covered so far: Belgium, Bulgaria, Finland, France, Germany, Greece, Lithuania, Luxembourg, Spain, Sweden, Switzerland and The Netherlands.
The definition of insolvency is a key element of the insolvency law. It opens the gate for tools that enable creditors to safeguard their rights vis-à-vis their debtors. On 19 August 2019, the Czech Supreme Court published a ground-breaking decision which addresses a crucial aspect of balance-sheet insolvency. Many other issues, however, still remain unresolved.
As in other jurisdictions, the Czech Insolvency Act anticipates two forms of insolvency: cash-flow insolvency (illiquidity test) and balance-sheet insolvency (overindebtedness).
Lithuania: change in organisation of the profession of insolvency practitioners: Chamber of Insolvency Administrators established by Frank Heemann and Aušra Zabulionytė
As reported in the previous issue of Eurofenix, a more contemporary insolvency law finally came into force in Lithuania on 1 January 2020. One of the major changes is the introduction of a self-governing body for insolvency practitioners.
The Polish Restructuring Law of 2015 allows for the conclusion of an arrangement with creditors in out-of-court proceedings (“arrangement approval proceedings”).
It is one of four proceedings under the Law. Creditors’ votes are collected by the debtor under the supervision of an arrangement supervisor. Having obtained the majority of two thirds of the value of claims, the arrangement is approved by the court.
Chapter 15 News: Delaware District Court rejects lawsuit against foreign representatives by Search Results Web results David H. Conaway
In a Chapter 15 procedure in Delaware, a disgruntled “creditor” sued the Chapter 15 UK-based “foreign representatives” in their individual capacities. The case is McKillen v. Wallace (In re IBRC), No. 18-1797, 2019 U.S. Dist. LEXIS 166153 (D. Del. Sept. 27, 2019). Before administrators or liquidators outside the US become concerned about liability for serving as foreign representatives in Chapter 15 cases, read on.
This updated edition describes the framework of the European Insolvency Regulation Recast (adopted in June 2017), reviews its major rules, highlights the differences from the old EIR 2000, and makes references to the most important and recent cases of the Court of Justice of the European Union. An essential guide for non-European judges, practitioners and scholars who are confronted with this domain of law, as well as anyone dealing with EU-related cross-border cases, this book serves as a concise and comprehensive introduction to the EIR Recast.
Chapter 15 for Foreign Debtors covers all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code, and provides details about the Foreign Representative, avoidance actions, creditor protections, concurrent proceedings, comity and much more. The book also includes an extensive appendix filled with more than 500 pages of sample case documents and forms related to chapter 15 proceedings.
This book is the latest addition to our list of publications and it provides basic information on Islamic finance. It is meant to be a useful reference tool to the majority of insolvency practitioners who do not work in this field. The chapters in this book were selected on the basis that it is expected that most INSOL members currently have very limited understanding of Islamic finance.
The book has 10 chapters, a country study, and an annexure with a glossary of Islamic finance terms. Following the introductory chapter there are chapters on: