The European Central Bank has relaxed regulations on eurozone banks, freeing up as much as €73bn of capital in an attempt to boost lending and prevent the economic crisis triggered by the coronavirus pandemic from turning into a credit crunch, the Financial Times reported. The move announced by the ECB on Thursday grants lenders extra capital relief, enabling them to increase their lending to governments, businesses and households. It follows a similar, albeit more generous, move by the US Federal Reserve in April.
Woolworths Holdings is reviewing its South African clothing business and the food division of Australian unit David Jones to respond to fashion trends and stem losses amid a slump in earnings, its chief executive said on Thursday, Reuters reported. Roy Bagattini, who took over as CEO of the fashion and food retailer in February, is on a mission to improve the performance of the David Jones department store chain. His predecessor Ian Moir paid a premium to bulk up in Australia and turn the company into a leading southern hemisphere retailer.
LATAM Airlines has presented a new $2.45 billion financing proposal in the middle of its bankruptcy protection process in the United States, replacing a proposed debtor-in-possession loan that prompted the judge to reject the original plan earlier this month, Reuters reported. LATAM, the largest air transport company in Latin America, told the Chilean securities regulator in a letter on Wednesday night that the new debtor-in-possession loan maintained “basically” the structure presented in July.
Argentina’s standing in global markets is at risk once again after it moved this week to further restrict access to dollars as foreign reserves dry, a move analysts say will hit its much-needed economic revival and investor sentiment, Reuters reported. The central bank on Tuesday tightened the noose for dollar purchases, adding a 35% tax on people who tap a $200 monthly quota, and said card payments abroad would be included in the allowance. It also limited corporate access to foreign currency.
South African banks have made their rainy-day provisions. Now, they must wait and see whether the funds set aside will be enough to manage a potential torrent of bad debt and ease pressure on their earnings in coming months, Bloomberg News reported. The country’s so-called “Big Four” experienced a profit slump deeper than that seen during the global financial crisis in the six months ended June after a spike in credit impairment charges as they grappled with the effects of the coronavirus pandemic and a nationwide lockdown.
India’s Supreme Court rejected a petition by State Bank of India, the nation’s largest lender, to allow a personal bankruptcy case against tycoon Anil Ambani to resume, Bloomberg News reported. A three-judge panel headed by Justice L. Nageswara Rao ruled that the bankruptcy case against the former billionaire will remain suspended and directed the Delhi High Court to decide on Ambani’s challenge to provisions of India’s insolvency law. The case is among the first high-profile ones after rules were set for personal bankruptcy last year.
Determining how much debt Dubai’s government has amassed depends on who’s counting, Bloomberg News reported. What is less in dispute is that the uncertainty comes at a cost. Unlike the government, Moody’s Investors Service and S&P Global Ratings include Dubai’s local bank borrowings to make the calculation, arriving at an estimate of about 290 billion dirhams ($79 billion). The debt burden could equal 77% of this year’s gross domestic product, according to S&P, comparable with what the International Monetary Fund predicts for South Africa and just behind Oman.
The Asia-Pacific region risks a damaging financial crisis from a surge of non-performing loans caused by rising insolvencies, a senior official from the World Bank Group’s private sector arm said on Thursday, Reuters reported. In an interview with Reuters, Alfonso Garcia Mora, Vice President for Asia and the Pacific of the International Finance Corp (IFC), said bankruptcies were expected to rise by 30% because of the economic crisis caused by the new coronavirus pandemic.
Ferroglobe, the largest western producer of silicon metal, and its creditors have hired financial advisers to speed up a restructuring of the company’s $451 million of debt, two sources familiar with the situation said, Reuters reported. Ferroglobe, 53% owned by Spanish billionaire and former finance minister Juan Miguel Villar Mir, is under pressure as the COVID-19 pandemic exacerbates a slowdown in demand from the automotive industry, the main consumer of silicon metal, in Europe and the United States.
Administrators at struggling South African Airways (SAA) have called creditors to a meeting on Friday after the government missed a deadline to make funding available for a restructuring plan, Reuters reported. The administrators took control of state-owned SAA in December after almost a decade of financial losses and published a rescue plan in June following repeated delays and wrangling over its future.
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In 1990, Ireland introduced a rescue process which reflects all of the main components of the Preventive Restructuring Directive (1023/2019) (“Directive”).
Steel producer operating in Italy struggles to protect its activities by Giorgio Cherubini & Giancarlo Cherubini
Ilva is the largest steel plant in Europe with a factory in Taranto and a century-old history, which began in the early twentieth century on the initiative of a group of industrialists from Northern Italy.
The plant is one of the flagships of the Italian economic boom, giving jobs and creating wealth and employment.
Judgment of 14 November 2018, C 296/17, Wiemer & Trachte – is the CJEU right? by Angel Ganev, Simeon Simeonov, Valentin Bojilov
The purpose of this article is to present and analyse a 2018 judgment of the Court of Justice of the European Union (hereinafter referred to as the “Court” or “CJEU”), delivered upon a referral for a preliminary ruling of the Bulgarian Supreme Court of Cassation and aimed at the interpretation of Article 3(1) of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings (hereinafter the “EIR 2000”) and, more specifically, the jurisdiction of the courts of the Member States to hear cases which derive directly from insolvency proceedings and which are closely connected to t
On 6 December 2019, the UNCITRAL held, in its Vienna Headquarters, a Colloquium on Asset Tracing and Recovery, under the auspices of its Working Group V (Insolvency Law). More than one hundred professionals dealing with asset tracing and recovery were in attendance (See Paul Omar’s report of the wider meeting in our News section of this edition).
The purpose of the Colloquium was to kick off a process of debate and analysis among practitioners and academics of different jurisdictions.
At the time of writing, our personal and professional life has totally changed since the COVID-19 emerged. INSOL Europe has just announced that many of our events are postponed.
Countries, one after another, imposed restrictions on citizens’ free movement and banned travels. Offices, courts, schools, and universities are being closed everywhere… Lockdowns spread across the world, including the US and India. In order to fight this highly contagious respiratory illness, the lockdowns are being extended and reinforced…
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: