Brazilian telecommunications firm Oi SA is in talks with Spain’s Telefonica SA and Italy’s Telecom Italia SpA to sell its mobile network to avoid insolvency, five people with knowledge of the matter said, Reuters reported. Oi has been struggling to turn around its business since filing for bankruptcy protection in June 2016 to restructure approximately 65 billion reais of debt.
The world’s leading economies need to ease trade tensions and act decisively to prevent a descent into a low-growth trap from which it would be difficult to escape, the OECD warned on Thursday, the Financial Times reported. Labelling the economic outlook as “increasingly fragile and uncertain”, the Paris-based international organisation forecast that Britain would fall into recession if it left the EU without a deal and eurozone growth would slow to close to zero.
For the umpteenth time, Deutsche Bank AG is ensnared in an alleged regulatory blunder. Except this time, the stakes are greater than its own integrity: Confidence in its regulator, the European Central Bank, is on the line too, a Bloomberg View reported. The ECB is considering whether to probe Germany’s biggest bank for trading in its riskiest debt without the regulator’s approval, according to the German newspaper Sueddeutsche Zeitung. In an effort to maintain liquidity in the bonds, the firm’s securities unit continued to make a market in the notes well after they were sold to investors.
A group of Turkish banks hired Morgan Stanley as financial adviser to sell their 55% stake in the country’s largest phone company, Turk Telekomunikasyon AS, Bloomberg News reported. The carrier’s shares rose more than 4%. The three banks -- Turkiye Is Bankasi AS, Akbank TAS and Turkiye Garanti Bankasi AS -- took control of Turk Telekom in December, setting it up for a likely sale after previous owner Otas defaulted on a multi-billion-dollar loan.
Thomas Cook’s attempt to secure a £900m rescue deal have been hampered by demands from its lending banks to secure an additional £200m funding, the Financial Times reported. The 178-year-old tour operator, which has been negotiating with its debtholders and largest shareholder Fosun on a rescue deal, had to delay a crucial hearing on the deal this week as banks including RBS and Lloyd’s pushed for an extra credit facility to be put in place to see the holiday provider through the winter season.
A rally in Lebanon’s Eurobonds will prove short-lived if the country’s government can’t get serious about reforms that are needed to claim Saudi Arabian aid, Bloomberg News reported. The highly-indebted nation’s dollar yields sunk 104 basis points on Wednesday, the most since 2002, after Saudi Arabia said it was mulling financial support for its Middle Eastern neighbor. Investors also took heart from Prime Minister Saad Hariri traveling to Paris to meet French President Emmanuel Macron in a bid to unlock $11 billion of aid promised by international donors last year.
Kier plunged to a £245m loss as the government contractor pushed ahead with an expensive restructuring as questions lingered over its financial health, the Financial Times reported. The group, which is working on Facebook’s King’s Cross headquarters and the HS2 railway, said it had “experienced a difficult year” after it launched a £250m rights issue in December 2018 to strengthen its balance sheet. It announced the departure of chairman Philip Cox, who oversaw the appointment of the group’s new management team and is leaving after just over two years.
British department store group Debenhams said on Thursday that its company voluntary arrangement (CVA) will go ahead as planned after a court rejected challenges to the rescue plan, Reuters reported. Once the country’s biggest department store chain, Debenhams has been hit by a sharp slowdown in sales, high rents and ballooning debt, plus a power struggle with former shareholder Mike Ashley’s Sports Direct. Debenhams’ lenders took control of the retailer in April in an effort to keep stores open.
Air France-KLM and easyJet withdrew competing offers for Aigle Azur on Thursday after missing an overnight court deadline to improve their bids to acquire part of the collapsed budget airline’s operations and staff, Reuters reported. An Air France spokeswoman confirmed it had decided against submitting an expected joint offer with long-haul niche carrier Air Caraibes because “our conditions for doing so weren’t met”. EasyJet said it had also pulled out but remains committed to France and its operations at Paris Orly airport.
Brazilian sugar and ethanol maker Grupo Moreno, which operates three plants in the heart of Brazil’s sugarcane belt, has filed for bankruptcy protection, the law firm advising the company told Reuters on Thursday. The move underscores problems caused by poor margins in the sugar business in recent years and a depressed domestic ethanol market between 2011 and 2015, when the Brazilian government kept gasoline prices artificially low to fight inflation, turning ethanol margins negative, Reuters reported.
Resources by Country & Region
Abengoa subsidiary to face first creditor-forced insolvency proceedings by Jose Carles Delgado and Carlos Cuesta Martin
Commercial Court nr. 2 of Seville has granted the opening of insolvency proceedings against Abengoa’s subsidiary, ‘Simosa IT’, after the petition submitted by one of its commercial creditors. It was the first time the Commercial Court agreed, since other creditors had also tried this measure against other companies of the group, with no success.
Is the situation of insolvent ‘Simosa IT’ the prelude of what will happen with the rest of the Spanish group?
The Preventive Restructuring Directive (“PRD”), which is about to be adopted by the European legislator, deserves the close attention of French practitioners, as it will become part of Book VI of the Commercial Code.
Directive on Preventive Restructuring Frameworks: Political compromise in the trilogue talks and imminent adoption by Prof. Reinhard Bork
After more than two years of intensive discussions in politics and science, the adoption of the Directive of the European Parliament and of the Council on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30 shortly lies ahead.
The fate of the practitioners in procedures conerning restructuring, faced with the future Directive on Preventive Restrucuring Frameworks by Emmanuelle Inacio
After the Niebler’s Report on the European Commission’s Directive Proposal on preventive restructuring frameworks1 was endorsed by the plenary meeting of the European Parliament on 12 September 2018 and the Council (Justice and Home Affairs) adopted its General Approach during its meeting on 11 October 2018, the co-legislators have successfully concluded their Trilogue.
We are grateful to Catherine Ottaway from Hoche Avocats (Paris, France) who kindly send us an update on the adaptation of French law to the Regulation on insolvency proceedings. The article focuses in particular on the Order which was adopted in order to facilitate the implementation of the mechanisms created by the Regulation and to enable courts and practitioners to act quickly in often complex insolvency cases, where economic and social issues require exemplary responsiveness.
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: