Shares of DLF Ltd. plunged the most in almost three years after a newspaper reported that India’s top court is looking into whether the developer suppressed information about legal battles involving its biggest assets, Bloomberg News reported. The stock dropped 15.8% to 144.45 rupees in Mumbai on Thursday. Its fall dragged down the S&P BSE Realty Index to its worst performance among 19 sector sub-indexes compiled by the BSE Ltd.
A small uptick in private sector activity in the eurozone in August was not enough to dispel fears of lacklustre growth in the third quarter as Germany’s export-led factory sector continued to suffer from global trade tensions and weakening growth, the Financial Times reported. A closely watched survey of executives found that the small pick-up in eurozone activity was the result of the resilience of the services sector in both France and Germany, which helped offset the woes of the German manufacturing sector. The IHS Markit purchasing managers’ composite index for the eurozone rose
India’s Shapoorji Pallonji Group is looking to sell its solar power plants and road assets to reduce debt by as much as 40 billion rupees ($558 million), a person with direct knowledge of the matter said, Bloomberg News reported. The 154-year-old group, controlled by the reclusive billionaire Pallonji Mistry and his family, expects the deals to be clinched by March next year, the person said, asking not to be identified as the discussions with prospective investors are private. A spokesman for the Mumbai-based conglomerate declined to comment on asset sales or the total group debt.
Qinghai Provincial Investment Group Co. has again missed a coupon payment on a dollar bond, a sign that a local government-led debt restructuring has yet to ease finances at the Chinese state-backed aluminum producer, Bloomberg News reported. The company has yet to wire funds to pay a coupon that came due Thursday on a $300 million 2020 note, according to a person familiar with the matter. It is in talks with financial institutions for funds to make a delayed payment, said the person who is not authorized to speak publicly and asked not to be identified.
European banks have been given more time to set aside funds to cover losses from loans that go bad, after the European Central Bank bowed to pressure from Brussels lawmakers to water down its plans for a tougher treatment of toxic debts, the Financial Times reported. The move, which follows two years of debate between the central bank and European lawmakers, will be a relief to Italian politicians and banking executives who had protested about the initial proposals from the ECB’s Single Supervisory Mechanism.
Jamie Oliver is looking to move on from the collapse of his 25-strong restaurant group in the UK, by recasting his business interests to focus on his campaigning efforts against junk food and child obesity, the Financial Times reported. Mr Oliver, who has said that he was “utterly devastated” about the bankruptcy of his Jamie’s Italian chain in May, will unveil a report on Friday that is the first step in an effort to achieve B Corp status for his media and book publishing business, Jamie Oliver Group.
Trading Argentine bonds has become a test of endurance as the prospect of a possible default triggers wild price swings and volume dries up, Bloomberg News reported. The Liquidity Assessment Scale of 1 to 100 (100 being the most liquid) slumped to 12 on Wednesday for the South American nation’s bonds from 68 just three weeks ago. “There is a lot of hysteria in the market and it is causing a lot of uncertainty on valuations,” said Jason Devito, a Pittsburg-based money manager at Federated Investment Mgmt Co., which has $502 billion under management.
Bangladeshi banks are facing another jump in already-crippling levels of bad debt as a move by the central bank to ease the situation backfires, Bloomberg News reported. In an effort to revive credit growth, Bangladesh Bank in May introduced an amnesty program that allowed delinquent borrowers to clean up their books by making a small upfront payment and then clearing the rest of their debt over 10 years at favorable interest rates. But it also triggered a rush by healthy companies to reschedule debt on the same terms, which now threatens to overwhelm the banks.
South Africa’s third-largest wireless carrier, Cell C Pty Ltd, had its credit rating cut to D by rating agency S&P Global after it failed to make interest payments due in July, Bloomberg News reported. There is “an increased likelihood that Cell C will be unable to repay all or substantially all of the obligations as they come due, unless it is able to restructure its debt and recapitalize its balance sheet,” S&P said in a statement on Thursday.
A Brazilian judge on Wednesday ruled that Imcopa, one of the country’s largest processors of non-genetically modified soybeans, will no longer be able to enforce early termination of a lease agreement related to two soy crushing plants, Reuters reported. Imcopa has been going through a bankruptcy reorganization since 2014 and wants to sell the plants to pay back creditors. Last week, Imcopa terminated a 10-year lease on the two plants with brewer Cervejaria Petropolis SA, prompting the beer maker to seek legal remedies.
Resources by Country & Region
Updated insolvency laws
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.
Blockchain brings value reconstruction to assets, including assets digitalisation, standardisation, registering, and precise pricing. In the “traditional” insolvency practice, there are always three pain points:
Italy: New Code of Company Crisis and Insolvency is close to being approved by Giorgio Cherubini and Giovanna Canale
On 8 November 8 2018, the Council of Ministers approved the Legislative Decree implementing the Law 155/2017. It consists of 390 articles, divided into four parts:
A set of amendments to the Latvian Insolvency Law and the Civil Procedure Law was adopted on 31 May 2018. The amendments partially entered into force in July, another part will enter into force in 2019 and some of the amendments still require adoption of secondary legislation. The scope of the amendments is rather broad and this review focusses on several of the issues covered by them.
As a non-EU member, Norway has never been a part of the European Insolvency Regulation (EIR), and the international elements of Norwegian Insolvency law have arguably been ready for revision for decades.
After Brexit it is highly likely that the EIR will no longer apply to Britain, and Britain will be in a similar situation as EIR outsiders like Norway and Denmark. The question of mutual recognition of bankruptcies between EIR-countries and “outsiders” therefore seems to be a hotter topic after Brexit.
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: