National Australia Bank Ltd on Friday urged customers at high risk of default on their loans to sell their properties sooner rather than later, as it reported ballooning credit impairment charges during the quarter, Reuters reported. Property prices in Australia fell for a third straight month in July but home prices nationwide still stand about 7% higher than in the corresponding month last year.
Lenders to bankrupt Reliance Communications Ltd (RCom) and Reliance Telecom Ltd (RTL) have told the Supreme Court that spectrum is an essential and integral part of asset against which banks grant loans to telecom firms, Mint reported. This is contrary to the government’s stance that spectrum is national property and cannot be sold under insolvency proceedings.
Pick five of the worst affected businesses by the pandemic, then put them in a portfolio. That neatly sums up the storied Hong Kong conglomerate Swire Pacific. The businesses of the two-century-old British-controlled hong, including airlines, commercial real estate, hotels and marine services, have suffered, the Financial Times reported in a commentary. Once one of the largest constituents in the Hang Seng index, today it is the smallest. Swire — Taikoo in Cantonese — reported a net loss of HK$7.7bn ($1bn), its first half-yearly loss in more than a decade.
Lenders to the world’s biggest airport baggage-handling group Swissport have offered a rescue package that would restructure its €2.1 billion of net debt and could transfer ownership to them from struggling Chinese conglomerate HNA Group, The Irish Times reported. The owners of €1.4 billion of senior secured bonds issued by Swissport have promised to invest in the business to help it survive the pandemic, which has hit its operations hard with the grounding of flights.
Banks and financing platforms are being swept along as punters look for quick cash to bet on the world’s most volatile equity market. It’s a dangerous strategy both for already overextended households as well as lenders, one that’s drawing closer scrutiny from regulators, Bloomberg News reported. Authorities are also partly to blame. With the economy reeling from the pandemic, policy makers have pumped out liquidity and eased curbs on shadow banking to backstop small businesses and struggling families.
Fitch Ratings said it downgraded the province of Entre Ríos in central Argentina to C from CCC after the provincial government missed a payment on its 8.75% 2025 bonds, LatinFinance reported. Entre Ríos was scheduled to pay $21.9 million in interest on August 8, but it said on August 6 that it planned to renegotiate the 2025 bonds due to negative macroeconomic impact of the COVID-19 pandemic, Fitch said in a report on Wednesday. The province entered a 30-day grace period for the missed payment as it started the debt restructuring process, Fitch added.
Kenya’s second-biggest bank said loans issued via mobile phones almost halved in the first six months of the year, indicating that the fallout from the coronavirus pandemic is hitting lower-income earners hardest, Bloomberg News reported. Monthly disbursements by KCB Group Plc averaged 4 billion shillings ($36.9 million) to 5 billion shillings, down from 7 billion shillings to 8 billion shillings before the outbreak, and defaults have more than tripled, according to Chief Executive Officer Joshua Oigara. Many of the bank’s mobile loan customers are from the informal sector.
Fashion retailer New Look is to undertake a second debt restructuring in as many years, as it grapples with the effects of the coronavirus pandemic on its already-struggling business, the Financial Times reported. The group will convert £440m of debt into equity and inject £40m of new cash. It will also launch another company voluntary agreement, to switch most of its stores on to turnover-based rents, in a move that if successful would set a significant precedent in the sector.
Japan’s pandemic-hit economy shrank last quarter by the most in records going back to 1955, official data is set to show Monday, with a resurgence of the virus threatening to slow a fragile recovery now under way, Bloomberg News reported. Analysts see gross domestic product contracting at an annualized pace of 27% in the three months through June. That means the world’s third-largest economy will have declined in size for three straight quarters, hit first by trade wars and a sales tax hike, then by the virus.
Prushka Fast Debt Recovery revealed through data sourced from court records that the Australian Taxation Office and other government agencies, typically the largest source of company liquidations, have halted their winding up of businesses, Dynamic Business reported. In April to June, 374 businesses issued Notices of Winding Up Applications, a decrease of 47 per cent compared to the last quarter, and 64 per cent year-on-year.
Resources by Country & Region
Updated Insolvency Laws have been published in 2019 for Switzerland. We are grateful to Prof. Dr. Rodrigo Rodriguez, Rechtsanwalt Wissenschaftlicher Berater (Eidgenössisches Justiz und Polizeidepartement EJPD, Bundesamt für Justiz BJ, Direktionsbereich Privatrecht) for sharing this information. Twelve countries remain covered so far: Belgium, Bulgaria, Finland, France, Germany, Greece, Lithuania, Luxembourg, Spain, Sweden, Switzerland and The Netherlands.
The definition of insolvency is a key element of the insolvency law. It opens the gate for tools that enable creditors to safeguard their rights vis-à-vis their debtors. On 19 August 2019, the Czech Supreme Court published a ground-breaking decision which addresses a crucial aspect of balance-sheet insolvency. Many other issues, however, still remain unresolved.
As in other jurisdictions, the Czech Insolvency Act anticipates two forms of insolvency: cash-flow insolvency (illiquidity test) and balance-sheet insolvency (overindebtedness).
Lithuania: change in organisation of the profession of insolvency practitioners: Chamber of Insolvency Administrators established by Frank Heemann and Aušra Zabulionytė
As reported in the previous issue of Eurofenix, a more contemporary insolvency law finally came into force in Lithuania on 1 January 2020. One of the major changes is the introduction of a self-governing body for insolvency practitioners.
The Polish Restructuring Law of 2015 allows for the conclusion of an arrangement with creditors in out-of-court proceedings (“arrangement approval proceedings”).
It is one of four proceedings under the Law. Creditors’ votes are collected by the debtor under the supervision of an arrangement supervisor. Having obtained the majority of two thirds of the value of claims, the arrangement is approved by the court.
Chapter 15 News: Delaware District Court rejects lawsuit against foreign representatives by Search Results Web results David H. Conaway
In a Chapter 15 procedure in Delaware, a disgruntled “creditor” sued the Chapter 15 UK-based “foreign representatives” in their individual capacities. The case is McKillen v. Wallace (In re IBRC), No. 18-1797, 2019 U.S. Dist. LEXIS 166153 (D. Del. Sept. 27, 2019). Before administrators or liquidators outside the US become concerned about liability for serving as foreign representatives in Chapter 15 cases, read on.
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: