Nyrstar, the debt-laden metals and mining group, has announced management changes, appointing an executive chairman and an interim chief financial officer. The Belgian-listed company, which is working on a deal to restructure its debts, said Martyn Konig had agreed to take up the role of executive chairman, while Roman Matej had been appointed CFO, replacing Michel Abaza who has left the group, the Financial Times reported.
A growing risk of debt distress in low-income nations has made it crucial that countries agree how any bailout burden should be shared, a senior IMF official warned on Friday, the Financial Times reported. The comments, in a blog by Martin Muehleisen, director of the IMF’s strategy, policy and review department, reflect deepening concern over a build-up of opaque Chinese lending to developing countries.
Dutch Finance Minister Wopke Hoekstra lashed out at the European Commission’s truce with Italy over Rome’s spending plans, in comments highlighting continuing discomfort within the euro area about Rome’s budget, Bloomberg News reported. “It’s a missed opportunity to do the right thing for the long run,” Hoekstra said in an interview from Brussels on Monday. He made the comments after a meeting with his counterparts from the currency bloc in which he asked the commission to explain “in writing” how numbers add up in the compromise which was reached last month.
Infrastructure Leasing & Financial Services Ltd., which sent a shock through Indian financial markets last year when it defaulted on debt, faces a much-awaited coupon payment due Friday on overseas bonds, Bloomberg News reported. The so-called dim sum bonds, or offshore yuan-denominated bonds, are guaranteed by IL&FS Transportation Networks Ltd., a unit of IL&FS which has already defaulted on interest payments due on five rupee-denominated bonds, according to a Dec. 31 filing.
If you’re looking for one of the worst ideas in contemporary banking, look no further than Germany. The mooted merger between Deutsche Bank AG and Commerzbank AG would make a mockery of any notion that EU governments are serious about ending the “too big to fail” problem, a Bloomberg View reported. It would also turn back the clock on a guiding principle of European regulation over the past decade: The promotion of a “banking union,” where risks are shared widely across the continent on the basis of jointly decided rules.
India’s Prime Minister Narendra Modi rode to power five years ago on his business friendly credentials and the promise of generating millions of jobs. Now an airline is on the verge of collapse, bringing Modi’s image under attack just months before national elections, Bloomberg News reported. Struggling in a competitive market where basic air fares can get as low as 2 cents, Jet Airways India Ltd., the country’s second-biggest airline, has piled on $1.1 billion in debt and failed to pay loans and salaries.
Qatar said on Monday it plans to buy $500 million of Lebanese government bonds to help support one of the world’s most indebted countries, Bloomberg News reported. Eurobonds rallied by the most since September. Lebanon’s struggling economy needs a cash infusion to reassure bond holders still reeling from mixed remarks by officials about the possibility of debt restructuring this month.
Errant debtors are forever looking for ways to undermine creditor protection; but when lenders themselves start making a mockery of a fledgling insolvency law, nobody can save it, a Bloomberg View reported. That’s where India’s two-year-old bankruptcy regime is today, brought to the brink of irrelevance by the strain of resolving its most high-profile case: Essar Steel India Ltd. The billionaire Ruia brothers have used every trick in the book to ensure their prized asset stays in the family, despite owing financial creditors 508 billion rupees ($6.3 billion) in unpaid dues.
The 2007 takeover of the Dutch parts of Yukos Oil by Russian state oil company Rosneft’s former subsidiary Promneftstroy was illegal, the Dutch Supreme Court ruled on Friday, upholding an earlier lower appeals court ruling. Yukos Oil went bankrupt in 2006 after its former chief Mikhail Khodorkovsky, fell out with Russian leader Vladimir Putin and the Russian government began demanding billions in back taxes, Reuters reported. Most of Yukos’ assets were absorbed by the Kremlin’s flagship oil producer Rosneft, and its former owners have for years been trying to recover their possessions.
Avianca Brasil’s battle with its aircraft leasing firms intensified on Friday after Brazil’s aviation regulator said it would no longer ground 10 of the struggling carrier’s planes and another lessor renewed its effort to repossess 10 others, Reuters reported. Aircastle Ltd and General Electric Co’s GE Capital Aviation Services (GECAS) unit, among other lessors, have been trying to repossess planes from Brazil’s fourth largest airline since it fell behind on lease payments, but their efforts were hampered when Avianca Brasil filed for bankruptcy protection in December.
Resources by Country & Region
Portugal: recent amendments to the Portuguese Insolvency Law: The forces that determine the success of restructuring tools by Prof. Catarina Serra
Before spring even blossomed, the review of the Portuguese Insolvency Law was completed with the issuance of Law No. 7/2018 and Law No 8/2018 of 2 March 2018. The review began in 2017 with the Insolvency Act (hereafter IA) being amended by Law Decree No. 79/2017, of 30 June. The amendments may well be numerous and flashy, but do they embody a real shift of the Portuguese Insolvency Law? Let us have a look.
Chapter 15 of the US Bankruptcy Code, which is based on UNCITRAL’s Model Law on Cross-Border Insolvency, was enacted in 2005 to provide an “effective mechanism” for dealing with cross-border insolvency cases.
Some of Chapter 15’s express objectives are “greater legal certainty for trade and investment” and the “fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested entities, including the debtor.
Legal framework for distressed M&A transactions in Poland by Andrzej Wierciński, Jakub Jędrzejak and Klaudia Frątczak-Kospin
Andrzej Wierciński, Jakub Jędrzejak and Klaudia Frątczak-Kospin write on the new opportunities for investment in Polish distressed businesses
With the enactment of the new Polish Restructuring Law and a substantial reform to the Bankruptcy Law as of 1 January 2016, the legal framework for distressed M&A transactions inPoland has been significantly changed and new legal tools became available to implement it.
UNCITRAL’s Working Group V(Insolvency Law), at its 53rd session in New York, has just completed work on the model law on recognition and enforcement of insolvency-related judgments (‘JudgmentsML’). The Judgments ML, together with a draft guide to enactment, will be submitted to the UNCITRAL Commission for finalisation and adoption within the year.If adopted, Member States will be invited to incorporate the Judgments ML into their national laws in order to harmonise cross-border enforcement and recognition of insolvency-related judgments.
On 11 October 2017, the Italian Senate approved the final version of a law aimed at systemically reforming Italian insolvency law, which fundamentally dates from 1942. Law no.
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: