Advisers to Congo Republic’s government have warned it that there is a “major risk” the International Monetary Fund (IMF) will reject its bid for a long-sought bailout, according to a letter obtained by Reuters. Negotiations for an IMF programme have dragged on since 2017, with the IMF’s executive board demanding the central African oil producer ensure the sustainability of its debt, most of which is owed to China and oil traders, Reuters reported. At the end of its most recent mission to Congo this month, an IMF team said it was finally ready to support a three-year credit facility.
This time last year Sergio Ermotti was riding high. The UBS chief executive was basking in a double-digit jump in quarterly profit and boasting of the bank’s “excellent” prospects. His decision six years earlier to refocus on wealth management and slim down the investment bank looked to be paying off — the model he pioneered was copied by Credit Suisse and Morgan Stanley. A year on and the narrative is very different, the Financial Times reported.
The share price of Casino’s parent company closed at an all-time low on Wednesday, on the back of heightened concerns about the sustainability of the chain of heavily indebted companies that control the French retailer, the Financial Times reported. Casino’s chief executive Jean-Charles Naouri — a stalwart of the French establishment — controls the group through three publicly listed investment holding companies. These entities each have their own debts, putting pressure on them to keep paying dividends up the chain.
Bidding farewell to the company he led for more than a decade, Daimler AG Chief Executive Officer Dieter Zetsche urged sweeping cost cuts to prepare the carmaker for unprecedented industry upheaval, Bloomberg News reported. “Everything is under scrutiny,” Zetsche said Wednesday at the annual shareholder meeting in Berlin, citing costs, investments and the Mercedes-Benz maker’s product range.
It’s not often that an entire economy is thrown off course by a single corporate event. But that’s what appears to have happened in Iceland. The recent bankruptcy of budget airline Wow Air has delivered such a blow to the Icelandic tourist industry, and the wider economy, that the central bank on Wednesday cut its main interest rate by half a point to 4%, Bloomberg News reported. It also said that the economy is now set to contract 0.4%, compared with a previous estimate for growth of 1.8%.
Shares of Indian non-bank lenders for housing plunged on reports that Dewan Housing Finance Corp. has stopped accepting fresh money and halted premature withdrawals from existing deposit plans, Bloomberg News reported. The company, which was already facing difficulties in the bond market following a string of recent downgrades, slumped as much as 18%, the most since Feb. 1, on Wednesday. Indiabulls Housing Finance Ltd. fell as much as 4.1% before paring losses, while PNB Housing Finance Ltd. declined as much as 2.6%.
British retail tycoon Philip Green’s Arcadia Group said on Wednesday it planned to close 23 of its 566 stores in the UK and Ireland in a major restructuring of the fashion business that could also see its Topshop/Topman stores close in the U.S.. Arcadia, which also runs fashion retailers Wallis, Miss Selfridge, Dorothy Perkins, Evans, Burton and Outfit, said it had instigated seven Company Voluntary Arrangements (CVAs), mechanisms that allow the business to avoid insolvency, Reuters reported.
A stand-off between Russian billionaire Mikhail Fridman and Ana Botin has ended with the Banco Santander SA chairman blinking first. Fridman’s hostile bid for struggling Spanish grocer Distribuidora Internacional de Alimentacion SA won shareholder approval earlier this month. But Santander, DIA’s second-biggest lender, objected to a related deal to recapitalize the company, a Bloomberg View reported. That refusenik stance threatened to trigger a default and wipe out Fridman’s equity within weeks of the takeover succeeding.
British Steel was forced into liquidation on Wednesday though Britain’s second largest steelmaker will continue to trade and supply its customers, the official receiver said, Reuters reported. “The company in liquidation is continuing to trade and supply its customers while I consider options for the business. Staff have been paid and will continue to be employed,” the official receiver said.
A Saudi commercial court has accepted a filing by conglomerate AHAB to have its decade-long dispute with creditors resolved under the kingdom’s new bankruptcy law, and rejected a demand to liquidate the company filed by two of its creditors, sources familiar with the matter said, Reuters reported. The bankruptcy filing was seen as a key test of Saudi Arabia’s new law for handling insolvency disputes, which became effective last year as part of reforms aimed at making the country more investor friendly.
Resources by Country & Region
The INSOL International Helsinki 2018 Joint One-Day Seminar took place at the Hilton Helsinki Strand Hotel on Wednesday 13th June and was jointly organised by INSOL International, INSOL Europe and the Finnish Insolvency Law Association (FILA) and enjoyed the presence of more than 100 delegates representing ten different jurisdictions: Denmark, Finland, France, Germany, Hungary, Romania, Sweden, the UK and the US.
First of all, a new consolidated version of the EIR Recast has been published on 26 July 2018 to reflect the changes introduced by the Regulation (EU) 2018/946 of 4 July 2018, replacing Annexes A and B to Regulation (EU) 2015/848 on insolvency proceedings (OJ L 171, 06.07.2018, p. 1-10).
Cyprus: New laws to improve the legal framework on Non-performing loans. Several new laws were enacted in July 2018 to facilitate the reduction of non-performing debt in the Cyprus banking system.
When the Eagles wrote the song “New kid in town” for their famous album “Hotel California” released in 1977, they were not obviously thinking of the professional Portuguese restructuring player just introduced, which goes by the name of “corporate restructuring mediator” (hereinafter: CRM).
Nevertheless, the metaphor may be helpful to understand the expectations created by the introduction of a new player on the field and the contradictions involved in the general rules applying to the CRM.
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: