Chad has asked Glencore Plc to suspend payments on its oil-for-cash loan this year, a move that could prove a precedent for private creditors worried about being dragged into a global debt-relief push for poor countries, Bloomberg News reported. After securing a $61 million debt waiver in June, sponsored by the Group of 20, the central African nation sent a letter to the world’s biggest commodity trader and other private lenders, asking them to allow debt freezes, according to two people familiar with the matter.
Norway's government has extended loan guarantees for the country's airlines, including Norwegian Air, by two months until the end of 2020, the Industry Ministry said on Sunday, Reuters reported. Norwegian Air secured a state aid package of 3 billion Norwegian crowns ($330 million) earlier this year after a debt restructuring but said last month it needed to secure more funding to get through the COVID-19 pandemic. The government has changed the terms of the state guarantee scheme, the industry ministry said in a statement, without disclosing specifics.
Philip Day’s retail empire could be broken up after the tycoon launched a review of high street chains including Peacocks and the Edinburgh Woollen Mill following a number of unsolicited offers, the Financial Times reported. Mr Day, who has made a fortune by buying and restructuring distressed retail businesses, has received interest from potential bidders for all or part of value fashion chain Peacocks and his collection of “heritage brands”, which includes Jaeger, Austin Reed and Jacques Vert.
Rolls-Royce is in talks with sovereign wealth funds, including Singapore’s GIC, as part of a plan to raise around £2.5bn from investors next month, according to three people with direct knowledge of the matter, the Financial Times reported. The UK aero-engine group is working with bankers at Goldman Sachs on the planned equity raise as it looks to become the latest company to tap stock market investors to repair a balance sheet badly damaged by the pandemic. The group is aiming to launch the equity raise in the first weeks of October, two of these people said.
South Africa has pledged 10.5 billion rand ($650 million) to South African Airways (SAA), one of the administrators of the ailing state-owned airline said on Friday, Reuters reported. The administrators took control of SAA in December after almost a decade of financial losses and have been trying to keep it afloat as the coronavirus pandemic compounds its longstanding problems. Administrators published a restructuring plan in June, but the more than 10 billion rand required for it to work has not materialised since the airline’s creditors approved it in July.
Kenya Airways Plc needs at least $500 million to ride out the coronavirus crisis after first-half revenue plunged almost 50%, Chief Executive Officer Allan Kilavuka said in an interview, Bloomberg News reported. The carrier, which is 49% state owned, must also be fully nationalized alongside Kenya Airports Authority, which runs the Nairobi hub, under a holding structure similar to that of regional leader Ethiopian Airlines Group, he said. “If we don’t restructure the airline, and take the airline as is into this organization, then we are doing a disservice to the taxpayer,” Kilavuka said.
Argentina’s honeymoon with the International Monetary Fund is about to be tested as it looks to update a $57 billion agreement struck two years ago that failed to prevent a slide into recession and the country’s ninth sovereign default, Reuters reported. The IMF, often the target of angry protests in the streets of Buenos Aires, has looked to soften its tone with Argentina as the center-left Peronist government has restructured over $100 billion with private creditors this year. Now it is IMF money on the table.
Germany would relax insolvency rules under proposals set out on Saturday to help avert a wave of bankruptcies in Europe’s biggest economy, provided companies hit by the coronavirus crisis have a robust business model, Reuters reported. Keen to avoid bankruptcies and mass layoffs, Chancellor Angela Merkel’s government has launched a range of stimulus and relief measures as Germany braces for its biggest slump since World War Two, having shrunk by an unprecedented 9.7% in the second quarter.
Caixabank has agreed to buy Bankia for 4.3 billion euros ($5.1 billion) in an all-share deal that creates Spain’s biggest domestic lender and signals a pick up in mergers among Europe’s banks as they battle the fallout from the COVID-19 pandemic, Reuters reported. The merger will create the largest domestic bank by assets with a combined market value of more than 16 billion euros ($19 billion), in a deal underpinned by annual cost savings of 770 million euros, the companies said on Friday.
South African Rugby (SA Rugby) has placed the Southern Kings into voluntary liquidation because of debts of R55 million ($3.37 million) and no chance of generating any income this year, Reuters reported. The Kings, based in Port Elizabeth, were last month withdrawn from all competition due to their financial position following a failed takeover bid that forced SA Rugby and the Eastern Province Rugby Union to take control.
Resources by Country & Region
In 1990, Ireland introduced a rescue process which reflects all of the main components of the Preventive Restructuring Directive (1023/2019) (“Directive”).
Steel producer operating in Italy struggles to protect its activities by Giorgio Cherubini & Giancarlo Cherubini
Ilva is the largest steel plant in Europe with a factory in Taranto and a century-old history, which began in the early twentieth century on the initiative of a group of industrialists from Northern Italy.
The plant is one of the flagships of the Italian economic boom, giving jobs and creating wealth and employment.
Judgment of 14 November 2018, C 296/17, Wiemer & Trachte – is the CJEU right? by Angel Ganev, Simeon Simeonov, Valentin Bojilov
The purpose of this article is to present and analyse a 2018 judgment of the Court of Justice of the European Union (hereinafter referred to as the “Court” or “CJEU”), delivered upon a referral for a preliminary ruling of the Bulgarian Supreme Court of Cassation and aimed at the interpretation of Article 3(1) of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings (hereinafter the “EIR 2000”) and, more specifically, the jurisdiction of the courts of the Member States to hear cases which derive directly from insolvency proceedings and which are closely connected to t
On 6 December 2019, the UNCITRAL held, in its Vienna Headquarters, a Colloquium on Asset Tracing and Recovery, under the auspices of its Working Group V (Insolvency Law). More than one hundred professionals dealing with asset tracing and recovery were in attendance (See Paul Omar’s report of the wider meeting in our News section of this edition).
The purpose of the Colloquium was to kick off a process of debate and analysis among practitioners and academics of different jurisdictions.
At the time of writing, our personal and professional life has totally changed since the COVID-19 emerged. INSOL Europe has just announced that many of our events are postponed.
Countries, one after another, imposed restrictions on citizens’ free movement and banned travels. Offices, courts, schools, and universities are being closed everywhere… Lockdowns spread across the world, including the US and India. In order to fight this highly contagious respiratory illness, the lockdowns are being extended and reinforced…
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: