Croatia will decide in coming days whether to place troubled shipbuilder Uljanik into bankruptcy or try to restructure the business at a cost to the state of around one billion euros, a top official said on Wednesday. Last month Uljanik, the country’s largest shipbuilder, chose local rival Brodosplit as a strategic partner to restructure its operations, with Italian shipbuilder Fincantieri acting as an adviser in the process, Reuters reported.
British builder Kier Group on Wednesday reported a 14.5 percent slump in first-half underlying earnings on higher expenses, a day after it hired former Carillion CEO-designate to run the company, Reuters reported. Underlying operating earnings fell to 51.8 million pounds for the six months ended Dec. 31 from 60.6 million pounds, as administrative costs jumped nearly 35 percent to 202 million pounds during the period.
Less than a year after Greece emerged from a multibillion-euro international bailout, Athens is witnessing an investor boom, the International New York Times reported. Hip new hotels with Acropolis views are dotting the skyline. Construction workers are tearing into dwellings owned by Greeks needing cash and converting them swiftly to short-term rentals, Airbnbs or fancy new homes for foreigners.
For Irish businesses and for the Government’s Brexit economic planning, the latest events threaten that the uncertainty will just roll on, perhaps into the latter part of next week, just before Brexit is scheduled on March 29th, The Irish Times reported. They also show that the risk of a disruptive no-deal Brexit is not off the table.
The financial woes of Dogus Holding AS are only getting worse even as the Turkish owner of the Salt Bae steakhouse chain goes on a selling spree to help restructure debt, Bloomberg News reported. The Istanbul-based investment-holding group, controlled by Turkish billionaire Ferit Sahenk, has been disposing mainly of hotels over the past year as part of a December agreement with lenders to renegotiate the terms on $2.5 billion of debt.
An economic slowdown and extremely tight credit conditions pushed corporate debt to a record high in China last year, according to experts, CNBC reported. Defaults for Chinese corporate bonds — issued in both U.S. dollars and the Chinese yuan — soared last year, according to numbers from two banks. Yuan-denominated debt rose to an “unprecedented” 119.6 billion yuan ($17.8 billion) — four times more than 2017, according to a February report by Singapore bank DBS.
State Bank of India’s (SBI) chairman said on Wednesday that putting Jet Airways into bankruptcy is the “last option” and that its lenders are making every effort to keep the airline flying, Gulf News reported. “We believe that it is in everybody’s interest that Jet Airways continues to fly,” SBI chairman Rajnish Kumar told reporters after a meeting with government officials, adding that placing Jet into bankruptcy would mean grounding the airline.
Fonterra went into the black in its first half but the co-op faces an uphill battle to meet its earnings forecasts for the year while it reduces debt and streamlines its operations. The dairy giant reported net profit of $80 million in six months to January, up from a loss of $348m a year earlier, but said its net earnings before interest and tax dropped by 29 per cent to $323m, The New Zealand Herald reported. Newly-appointed chief executive Miles Hurrell said the result was "not be where it should be".
Two former senior executives with the Quinn group are “very reluctant” witnesses in the action by Sean Quinn’s adult children disputing any liability under guarantees for loans of more than €415 million, the High Court has been told, The Irish Times reported. Dara O’Reilly and Liam McCaffrey had left the Quinn group after companies were sold, are now employed by the new owners of Quinn Industrial Holdings and both have been subject to “threats and acts of violence”, their counsel Ross Gorman said.
The European Union’s top antitrust regulator is facing calls to resign after a “historic” court ruling involving a small Italian lender upended Brussels’ approach to bank rescues and prompted calls for compensation, Reuters reported. In a blow to EU competition commissioner Margrethe Vestager, EU judges ruled on Tuesday that Italy’s plan for the rescue of Tercas bank five years ago was legal, overturning the Commission’s earlier decision that had forced the recouping of financial aid to the lender.
Resources by Country & Region
The Draft Bill “PACTE” (the “Draft Bill”), which will be under discussion in the French Parliament in September 2018, contains several reforms intended to allow the Government to transpose by anticipation the future Directive on preventive restructuring frameworks (the “Directive”), itself largely inspired by the French preinsolvency proceedings.
Agrokor is the largest privately-owned group in the Republic of Croatia and one of the Adriatic region’s largest vertically integrated companies with distribution markets all across Europe. Agrokor’s revenue of EUR 6.1bn is equivalent to 12% of Croatia’s GDP.
It operates through several strategic business segments including retail and wholesale, food production and distribution and agriculture. It also owns many diverse businesses outside these core sectors.
On 22 June 2018, the Eurogroup reached what was termed a “historic” deal on a debt relief for Greece, a momentous achievement and the final step for Greece’s return to economic normality, after almost a decade of European and IMF bailouts. The debt package was portrayed in the public domain as “an historic moment for the Eurozone”, “the end of the Greek crisis” and even “the biggest act of solidarity that the world has ever seen”. However, the same enthusiasm is not shared by all. Concerns still persist that the agreed measures are not sufficient to restore debt sustainability.
Following the example set by many other European jurisdictions, Greece sought to reform its Insolvency Code in 2007, in order to introduce procedures that offered a genuine chance of survival to ailing companies. The Law of 2007 has been subsequently tweaked a few times in attempts by the legislator to strengthen the rescue culture nurtured by the 2007 reforms and to facilitate corporate rescue in a financially challenging environment, where the stigma of failure still has a strong presence.
On 21 August 2018, the Committee on Legal Affairs of the European Parliament adopted Angelika Niebler’s Report on the European Commission’s Directive Proposal on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU. Indeed, the committee on Legal Affairs recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure (Article 294 TFUE) should amend the European Commission’s Directive Proposal.
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: