Bankruptcies among Japanese companies in the first half of the year rose for the first time in 11 years due partly to the coronavirus pandemic which has hit hotel and restaurant businesses, according to data compiled by a research firm. Tokyo Shoko Research, which tracks Japanese bankruptcies, said there were 4,001 cases in the six months through June, up 0.2 percent from a year earlier. Among them, 240 firms went bankrupt due to the coronavirus pandemic, the research firm said.
Travelex said yesterday its debt holders will take control of the company and inject 84 million pounds ($105.60 million) of fresh liquidity, as part of a debt restructuring to help the currency service provider ride out the coronavirus crisis, Reuters reported. The company said that it reached an agreement with at least 66.7 percent of its senior secured noteholders and all of its revolving credit facility lenders for an 84 percent reduction of its existing financial debt. The senior secured noteholders will take full control of Travelex, the company said.
It will take years for the global economy to recover from the jobs taken away by the pandemic, and in Europe the recession will be significantly deeper than forecast just two months ago, the New York Times reported. Those were the findings yesterday in two reports, from the Organization for Economic Cooperation and Development and the European Commission, that provided the latest readings on how widespread and deep the economic impact of the coronavirus will be. The O.E.C.D. looked at jobs; the commission measured economic contraction.
Refinancing pressure is mounting at China’s industrial firms following unprecedented pandemic-induced shocks to the sector and a dearth of bond issuance in the past three months, Bloomberg News reported. Offshore bond sales from high-yield energy and other industrial companies hit a two-year low in the first half of 2020, with no sales from April to June, according to Bloomberg-compiled data. It couldn’t have come at a worse time for them as $3.1 billion of bonds, or more than a quarter of their debt, need to be repaid or refinanced over the next 12 months, the data show.
South African Airways cleared another hurdle needed to ensure the state-owned carrier’s survival when most labor groups agreed to sweetened severance packages for retrenched workers, Bloomberg News reported. The National Union of Metalworkers of South Africa and the South African Airways Cabin Crew Association, which were fiercely opposed to plans to cut the workforce to 1,000 staff from about 4,700, agreed to fresh terms including unpaid training courses for some of the staff beyond their departure, the government said in a statement late Tuesday.
Petroleos Mexicanos’s nearly $105 billion in debt already makes it the biggest borrower of any oil company in the world. And it’s accruing more, Bloomberg News reported. Pemex, as the Mexican state oil company is known, is asking some of its contractors if they can wait until next year to be paid money that is owed to them now. Three contractors that are being asked to defer payment are waiting on $115 million in payouts, but the amount owed to companies across Pemex’s supply chain could easily total billions of dollars.
The U.K. government announced up to $38 billion in fresh stimulus measures intended to boost the country’s economy as it exits lockdown, a path that is also being considered by other rich nations as they seek to prevent the economic shock of the pandemic from snowballing into a multiyear slowdown that could leave deep scars on their societies, businesses and economies, the Wall Street Journal reported.
Next year is going to be a "watershed year" for business failures an insolvency expert is predicting, unless companies can come up with a plan now to get out of debt and survive, the New Zealand Herald reported. John Fisk, national leader of restructuring for PwC and chair of the Restructuring Insolvency and Turnaround Association New Zealand, said that insolvency applications had come down significantly under lockdown but massive amounts of government subsidies meant many businesses weren't addressing the underlying issues related to debt.
Canada will ramp up issuance of long-term debt this year to finance its record budget deficit, Bloomberg News reported. The federal government plans to sell C$106 billion ($78 billion) of 10-year and 30-year bonds in the fiscal year that ends March 31, according to budget documents released Wednesday. That’s more than six times the C$17 billion of such bonds it sold last year.
DavidsTea is seeking court protection from creditors so it can continue operating while it restructures and plans to close a significant number of its stores, the Globe and Mail reported. The Montreal-based company said today that it will seek an order in Quebec Superior Court to allow it to restructure under the Companies’ Creditors Arrangement Act. It also plans to seek similar orders for its U.S. subsidiary under chapter 15 of the U.S. Bankruptcy Code.
Resources by Country & Region
The differences between Member States in relation to substantive and procedural rules are commonly a source of difficulties in cross-border proceedings.
Among others the Regulation 2015/848 of the European Parliament and the Council on insolvency proceedings (hereinafter: EIR-R) provides some new legal instruments to limit the possibility of secondary insolvency proceedings. The undertaking (Art. 36) is one of the new features which has not been known before in Continental legal systems.
Demystifying offshore: Obtaining information by Stephen Alexander, Nicholas Fox, Justine Lau and Abel Lyall
In our last article, building upon presentations by the Anti-Fraud Forum, the authors discussed steps European-based insolvency officeholders could take in order to obtain recognition and assistance from the British Virgin Islands, Cayman Islands, Guernsey or Jersey (which, for convenience, we called the four Crown Dependencies and Overseas Territories (CDOTs).
In this article, we build upon that foundation by examining some of the more common mechanisms for obtaining information in the CDOTs.
Enhancing entrepreneurship and the growth of SMEs across Europe by Piya Mukherjee, Rita Gismondi, Ángel Alonso and Bart De Moor
Early Warning Europe is a project to enhance entrepreneurship and growth of SMEs across Europe. They work on policies related to insolvency, developing and testing innovative methods and helping companies in difficulty by setting up early warning mechanisms.
Asset depletion is predominantly driven by the debtors’ tendency to place significant parts of the insolvency estate beyond the reach of creditors.
Environmental protection and sustainable development are nowadays a global concern to such an extent that the question of the link between environment and insolvency must be raised.
Indeed, a company facing a pre-insolvency or an insolvency procedure may cause damages to the environment or risk causing damages to the environment in two scenarios.
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: