At the same time the cost of living is creeping ever higher, so too are the number of insolvency filings from Canadian consumers, the Toronto Star reported. Data released by the Office of the Superintendent of Bankruptcy Canada shows that the number of Canadians filing for personal bankruptcy may be returning to pre-pandemic levels. During the height of the COVID-19 pandemic, government subsidies have kept consumer debt at bay resulting in fewer bankruptcies or consumer proposals, a process where a person in debt pays a smaller percentage of owed money to their creditors.
Sergio Camacho, the chief executive of Unifin Financiera SAB de CV, was sick of the questions about the financial health of his firm, the largest shadow lender in Mexico, and he was out of patience, Bloomberg News reported. Unifin was doing well, he blurted out, and would grow its business and thrive. “The market has been irrational,” Camacho barked at one investor after cutting him off during the firm’s earnings call last month.
Thousands of Ukrainians are picking up shattered lives and trying to start over, many creating small businesses that they hope will bring them and their new communities fresh purpose, the New York Times reported. Others are working jobs that are a step down from positions lost because of war, grasping lifelines to keep their families afloat. “The Russian invasion has spurred a lot of people to pull up and start building new businesses,” said Andriy Sadovyi, the mayor of Lviv, which has become a locus for people fleeing the war-torn east.
New Zealand home prices fell on an annual basis for the first time in 11 years in July, adding to signs of a slowdown for the global economy as central bankers worldwide try to tame inflation, the Wall Street Journal reported. The national median sale price of 810,000 New Zealand dollars, equivalent to $519,000, was 1.8% lower than a year earlier, cooled by higher interest rates and lending restrictions, the country’s real-estate institute said Thursday. It was the first annual fall in prices since July 2011.
Annual inflation in Denmark came at 8.7% last month — rising at the fastest pace since 1983 — while the figure in neighboring Norway reached 6.8%, authorities said Wednesday, the Associated Press reported. Statistics Denmark said the price of goods has increased by an average of 13.2% in the past year, the highest annual increase since February 1982, when the annual increase was the same. Within the goods category, it is to a very large extent price increases on food, electricity, fuel and gas.
Estonia is suffering the worst inflation in the euro area, with consumer prices rising at an annual rate of nearly 22 percent, the Washington Post reported. This tiny Baltic nation, and its neighbors, Latvia and Lithuania, represent extreme examples of the price pressures sweeping Europe and confronting policymakers, executives and consumers with a challenge unseen for 40 years. Some Estonian employers must raise salaries several times each year. Others are retooling their operations to use less energy.
Ecuador plans to pay off a debt it owes to French oil company Perenco at the end of this year and is open to a dialogue to determine how the payment should be made, the country's economy minister said on Wednesday, Reuters reported. Ecuador is obliged to pay compensation to Perenco after the World Bank's International Centre for Investment Disputes (ICSID) ruled the country had unlawfully ended a production-sharing agreement with Perenco and owed it $391 million including interest.
The Central Bank of Kuwait raised its discount rate by 25 basis points to 2.75% effective from Thursday, it said in a statement on Wednesday, Reuters reported. The decision was in response to inflationary pressures, bank Governor Basel al-Haroon said in the statement. The bank had also increased the rate by 25 bps on July 27, after a 75 bps hike by the U.S. Federal Reserve. All Gulf countries have their currencies pegged to the dollar except Kuwait, which pegs its dinar to a currency basket including the dollar.
LATAM Airlines Group hopes to exit chapter 11 bankruptcy protection in the last quarter of 2022 after securing the financing plus U.S. bankruptcy court and shareholder approval for its restructuring plan, says Group Chief Executive Officer Roberto Alvo, ch-aviation.com reported. "We have closed the second quarter with significant progress in our reorganization process under Chapter 11, and we hope to emerge from it during the last quarter of this year, Alvo said in a statement.
Credit Suisse Group AG has applied to the English High Court to initiate formal legal proceedings against Japan's SoftBank Group Corp. over a $440 million dispute, one source familiar with the matter said on Thursday, Reuters reported. Switzerland's second-largest bank is trying to recover funds that Greensill Capital, a defunct finance firm, had lent to Katerra, a SoftBank-backed U.S. construction group that filed for bankruptcy last year.
Resources by Country & Region
From the pandemic to Europe’s largest military conflict since World War II, it seems the world is moving from one extraordinary period to another. The conflict in Europe has generated a maze of rapid legal, political and economic responses from authorities around the globe. Those actions are rippling through capital, markets and boardrooms as businesses grapple with how to respond. Join ABI and a panel of experts to discuss where we are headed and what businesses should consider.
Adjusting a pre-insolvency scheme to respond to the COVID-19 crisis by Nuno Líbano Monteiro and Catarina Guedes de Carvalho
According to the OECD, Portugal is in the top three countries in terms of implementing new measures to face this COVID-19 pandemic. However, regarding the legal framework of insolvency and restructuring, the only direct, exceptional and temporary measure approved by the Portuguese authorities was to suspend the time limit for the debtor itself to petition for insolvency, with effect from 7 April 2020. No pre-insolvency exceptional measures have been adopted.
The Directive (EU) 2019/1023 on preventive restructuring frameworks ("the Directive") was passed on 20 June 2019 bringing about a change of paradigm in corporate restructuring. A change that should allow the States of the European Union to catch up with countries adhering to the Anglo-Saxon model, both in restructuring and insolvency matters and also upstream, in financial matters, due to the influence of the insolvency legislation on the provision of credit ex-ante.
Was court-life across Europe prepared for the COVID-19 crisis? by José CARLES, Laurent Le PAJOLEC and David ORSULA (Co-chairs of the Insolvency Tech & Digital Assets Wing)
COVID-19 and the correspondent lockdown measures have affected our lives in many ways. From a legal perspective, it has proven that jurisdictions that were already adapted to technology have provided a better response in the administration of justice.
In January 2020, the world woke up facing a phenomenon that some had predicted but few wanted to hear about or were prepared for: a global pandemic, now commonly called the COVID-19 crisis. Immediately, many economists were convinced that the world was heading for a stock market crash and an economic crisis. They were right. The stock market sank, and all countries that imposed strict lockdown measures face a significant contraction in their GDP.
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: