Eurozone industrial production ticked higher in August but economists warned the rebound was insufficient to stem a contraction during the third quarter, the Financial Times reported. The key gauge of output rose 0.4 per cent in August from July, according to Eurostat, the bloc's statistics institute. It was down 2.8 per cent from the same month last year, marking the tenth-consecutive annual fall — the longest drop since the eurozone debt crisis eight years ago.
The World Bank cut India’s economic growth forecast by the most among South Asian nations on Sunday, below the outlook pegged by the nation’s central bank for this year, mainly because of a deceleration in domestic demand, Bloomberg News reported. India’s gross domestic product growth is projected at 6% in the fiscal year started on April 1, compared with 7.5% forecast in April and 6.8% recorded a year earlier, the bank said in its latest South Asia Economic Focus report. Growth is expected to gradually recover to 6.9% in 2020-21 and to 7.2% in the following year, it said.
Hundreds of German companies have appealed for more direct support from Brussels and a business-friendly stance from EU lawmakers as they grapple with the effects of Brexit, the US-China trade war and a global economic slowdown, the Financial Times reported. Responding to a poll by the Stiftung Familienunternehmen, or Foundation for Family Businesses, some of the country’s most successful companies said the new European Commission must do more to boost competitiveness. They placed emphasis on simplifying taxes, reducing bureaucracy and deeper digital integration.
All but cut off from international credit markets and facing dollar shortages at home, Lebanon has come up with another workaround to allow the government to borrow money without raiding the central bank’s reserves, Bloomberg News reported. Local lenders, already the biggest holders of Lebanon’s sovereign debt, will cash out certificates of deposit, or CDs, at the central bank to buy some of Lebanon’s planned Eurobond issue of up to $3 billion, a person familiar with the matter said.
All around HDFC Bank Ltd., India’s biggest lender by market value, the news seems to be bad and getting worse: economic growth is slowing, loan losses are rising and shadow banks are mired in crisis, Bloomberg News reported. And yet investors keep piling into HDFC Bank’s stock, convinced it will emerge a winner from India’s financial woes. The company’s market value has surged by $21 billion over the past year, more than any other bank worldwide. Among the 25 biggest lenders globally, no other stock commands a higher price relative to earnings or net assets.
UniCredit SpA has told European Central Bank officials that it may create a German holding company to control part of its business, according to people with knowledge of the matter, the Bloomberg News reported. The move could potentially reduce funding costs and help shield the Italian bank from any future crisis in its home country. The plan, which hasn’t been finalized, could be announced at the bank’s Dec. 3 investor day, according to people with knowledge of the matter who asked not to be identified because the matter is private.
South Africa has been promising for months to fix Eskom Holdings SOC Ltd., the state power utility that’s drowning in debt, made record losses and is reliant on government bailouts to remain solvent, Bloomberg News reported. While little tangible progress has been evident so far, several key decisions are due to be taken this month. The utility, which provides about 95% of the country’s power, has been without a permanent CEO since Phakamani Hadebe quit in July.
Creditors to troubled casual-dining group PizzaExpress Ltd., which has around $1.4 billion of debts, expect to see much of their money returned and the brand survive, according to analyst Helen Rodriguez at CreditSights in London, Bloomberg News reported. “There’s a brand and a business for PizzaExpress, it just has the wrong balance sheet and needs to reduce its debt,” she said. “If it were to restructure, someone would certainly want to start again with the business.” That will come as a relief to many in the U.K., for whom the chain is something of a national icon.
India’s financial fraud agency said on Saturday assets worth 40.25 billion rupees ($567.60 million) of Bhushan Power & Steel Limited were connected with a money-laundering probe, a move that could scupper the debt-ridden firm’s sale to JSW Steel Ltd, Reuters reported. The Enforcement Directorate said on Twitter that Bhushan Power’s land, building, plant and machinery were among the assets now associated with an ongoing banking fraud investigation into the firm’s former owners.
Brazilian conglomerate Odebrecht SA’s advisors plan to propose a delay in the bankruptcy plan vote by creditors, two people with knowledge of the matter said, Reuters reported. Odebrecht is likely to schedule a creditors assembly on Nov. 18 to comply with Brazilian bankruptcy protection rules, but so far there is not a concrete proposal to vote on, the sources added, asking for anonymity to disclose private discussions. Creditors presented objections to Odebrecht’s plan this month.
Resources by Country & Region
Almost a decade after the onset of the European debt crisis, Greece continues to struggle. While the country has managed to address many of its fiscal inconsistencies, the real economy has yet to reap the benefits of stabilisation, recording only a sluggish growth of 1.9% in 2018.
The financial crisis of 2008 affected the economic players more than ever, with the winding-up of a large number of financial institutions worldwide. Due to the specialisation of banks among other legal entities, insolvency is a scenario to be avoided, with restructuring being the more favourable solution.
It is the case in most European jurisdictions that there are various forms of protection available for parties with an interest in property which places any prospective purchaser on notice, or in some circumstances prevents a sale, where there are competing interests in relation to it.
Abengoa subsidiary to face first creditor-forced insolvency proceedings by Jose Carles Delgado and Carlos Cuesta Martin
Commercial Court nr. 2 of Seville has granted the opening of insolvency proceedings against Abengoa’s subsidiary, ‘Simosa IT’, after the petition submitted by one of its commercial creditors. It was the first time the Commercial Court agreed, since other creditors had also tried this measure against other companies of the group, with no success.
Is the situation of insolvent ‘Simosa IT’ the prelude of what will happen with the rest of the Spanish group?
The Preventive Restructuring Directive (“PRD”), which is about to be adopted by the European legislator, deserves the close attention of French practitioners, as it will become part of Book VI of the Commercial Code.
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: