A group of UBI Banca investors holding 18% of the Italian bank’s share capital on Monday dismissed Intesa Sanpaolo’s takeover offer as unacceptable, casting doubt on a bid to create an Italian banking champion, Reuters reported. The CAR shareholder pact said that the 4.9 billion euro ($5.3 billion) offer, the biggest banking deal in Europe in a decade, was “hostile, unsolicited and not consistent with UBI Banca’s underlying values”.
The head of Monte dei Paschi di Siena Marco Morelli will leave in April after steering the state-owned Italian bank through a painful restructuring, adding to uncertainty as Italy’s Treasury prepares its exit strategy, Reuters reported. Morelli’s departure, announced by the bank late on Thursday, adds to the question marks hanging over the world’s oldest bank, which was taken over by the Italian government in 2017 in an 8 billion euro ($8.6 billion) bailout to stop it from buckling under a pile of bad loans after years of mismanagement.
An International Monetary Fund delegation began meetings Thursday in Lebanon to provide advice on dealing with the country's crippling economic and financial crisis amid concerns the country might default on its Eurobond debt payment for the first time, the International New York Times reported on an Associated Press story. Lebanon is going through its worst economic crisis since the 1975-90 civil war. Since then, the country has been marred by widespread corruption and mismanagement in which billions of dollars were spent on infrastructure, which remains mostly dysfunctional.
Japan’s government stuck to its view the economy is recovering despite the sharpest contraction in more than five years last quarter and forecasts from private sector analysts that the coronavirus epidemic will trigger a recession, Bloomberg News reported. In it’s monthly report for February, released Thursday, the Cabinet Office maintained its stance the economy is “recovering at a moderate pace” amid continued weakness in manufacturing and exports.
Dollar bonds of Chinese conglomerate HNA Group Co. jumped to the highest in almost seven months after plans emerged of a government seizure of the embattled firm, Bloomberg News reported. Once the poster child for China’s debt-fueled overseas acquisition spree, HNA could now find itself a takeover target of Beijing, a plan that may involve the sale of its lucrative airline assets in an effort to limit the economic damage of the coronavirus.
Zimbabwe’s troubled national airline has failed to secure outside investment, dealing a blow to government plans to sell state-owned assets and secure much-needed revenue, Bloomberg News reported. The airline, which in Oct. 2018 was placed under administration, a form of bankruptcy protection, received expressions of interest from 10 international investors and had short-listed three bidders.
Chinese lenders have cut a benchmark lending rate in a bid to prop up the country’s virus-hit economy as S&P warned that banks faced a surge of up to $1.1tn in bad loans, the Financial Times reported. Major lenders on Thursday reduced the one-year loan prime rate — a key lending rate used across China’s financial system — by 0.1 percentage points to 4.05 per cent. The reduction, which had been expected following the central bank’s own cut to its medium-term lending rate earlier this week, will ease lending conditions.
NMC Health Plc founder Bavaguthu Raghuram Shetty hired Houlihan Lokey Inc. to explore strategic options for his holding company, including a potential debt restructuring or the sale of some assets, according to people familiar with the matter, Bloomberg News reported. The investment bank is working with BRS Ventures Investment to revamp debt and seek potential investment partners or sell assets from the portfolio, which holds 30 companies including hospital operator NMC and financial services firm Finablr Plc, according to the people.
Telefónica posted a net loss for the fourth quarter, as restructuring costs and impairments from Mexico and Argentina underscored the challenges the company faces as its overhauls its business and reorients its strategy in Latin America, the Financial Times reported. The Spanish telecoms company said that revenues during the quarter dipped 4 per cent to €12.4bn, slightly beating the €12.38bn expected by analysts polled by Bloomberg. The fourth quarter net loss of €202m fell short of analyst expectations of a €715.7m net profit.
Investors are braced for acrimonious negotiations with Argentina and a possible default after the IMF backed a big haircut for creditors without urging the country to implement austerity measures. Bondholders were alarmed when the IMF failed to demand that Argentina rein in its budget deficit, the Financial Times reported. They feared that the fund was siding with President Alberto Fernández, whose government has insisted that it will only reach a balanced budget by 2023, with no reduction this year.
Resources by Country & Region
The recently adopted Directive on restructuring and insolvency (the ‘Directive’) seems to indicate that IT might help running proceedings more efficiently. For example, in connection with the selection of practitioners, the Directive’s Recital 88 reads:
“Member States should not be prevented from providing for a practitioner to be selected by other methods, such as random selection by a software programme, provided that it is ensured that in using those methods due consideration is given to the practitioner's experience and expertise.”
Belarus: New draft laws on insolvency. The Government of the Republic of Belarus has submitted a new draft law on insolvency to the Parliament. The Resolution No.9 of the Ministry of Economy ‘On electronic bidding for the sale of property in economic insolvency (bankruptcy) proceedings” will come into force on 13 November 2019.
Associations for creditor protection are a central component of the Austrian insolvency landscape. As “privileged associations for creditor protection” legally anchored and equipped with so-called “preferential rights”, they are an inseparable part of all insolvency proceedings conducted in Austria, providing services to creditors, insolvency practitioners and insolvency courts alike.
The acquisition of production units (PU), defined by article 149.4 of the Insolvency Act 22/2003 (IA) as “a set of means organised for the purpose of carrying out an essential or ancillary economic activity”1, can be structured in each of the phases of the Spanish insolvency procedure, i.e.: (i) common phase, (ii) composition phase, (iii) liquidation phase, and (iv) pre-pack process; each of them with the specificities analyzed below
Demystifying offshore: recognition and assistance in overseas territories by Stephen Alexander, Nicholas Fox, Justine Lau and Abel Lyall
In a global financial environment, insolvency office-holders will often need to look beyond their home jurisdictions in order to undertake their principal function of getting in and realising assets.
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: