Several insurers have reportedly begun taking action to avoid potential losses from the bankruptcy protection process for the holding company (ODB) of Brazilian construction conglomerate Odebrecht, BNamericas reported. Earlier in the week, ODB and 21 of its subsidiaries filed the bankruptcy protection request with 98.5bn reais (US$25.2bn) in debt. The request was accepted by a local court and became the country’s largest bankruptcy protection proceeding ever, surpassing Brazilian telecom operator Oi, which filed a request in 2016 with a debt pile of more than 64bn reais.
The High Court has declared it would be "perverse" not to give worker entitlements priority in any collapse, whether a company trades in its own right or as a trustee, the Australian Financial Review reported. The court's decision in the Carter Holt Harvey Woodproducts case means the same rules apply for the payment of creditors and is an important win for workers. This has been welcomed by leading insolvency practitioners, who say the status of workers employed by trading trusts has been so uncertain that they faced being pushed to the back of the queue with other unsecured creditors.
The French fiscal administration has launched an in-depth probe into the wealth of former Renault-Nissan Chairman Carlos Ghosn, French daily Liberation reported on Sunday, citing sources. Ghosn, who holds French, Lebanese and Brazilian citizenship, is facing financial misconduct charges, which he denies.
Some €875 million – or 7.3 per cent – of all performing loans to small and medium businesses have a “high vulnerability” suggesting their ability to repay in the event of a downturn would be threatened, according to Central Bank research, the Irish Times reported. The research, conducted across three banks in the Republic (AIB, Bank of Ireland and Ulster), found that there is more than €12 billion in outstanding loans to SMEs.
The price of Lebanese government debt is once again in freefall as investors eye political infighting in Beirut and rising tensions across the Gulf, the Financial Times reported. Spreads on 10-year Lebanese dollar bonds over US Treasuries have widened to the highest levels since at least 2011, according to Bloomberg data. The price of five-year Lebanese credit default swaps, bought as a form of insurance against non-payment on the bonds, hit 921 basis points this week, a fifth higher than levels at the turn of the year.
Realty developer Rustomjee Group has emerged as the sole bidder for Ariisto Developers, one of the first Mumbai based builders to be admitted by the National Company Law Tribunal (NCLT) for undertaking insolvency proceedings, said persons with direct knowledge of the development, the Economic Times reported. Total claims of lenders and other stakeholders, including lenders and operational creditors, stand at ₹2,500 crore.
Italy risks further infuriating European Union finance chiefs after Prime Minister Giuseppe Conte said he was in favour of a broad reform that would cut taxes, Express.co.uk reported. As the two sides brace to collide yet again, Mr Conte said he agree with deputy prime minister and far-right leader Matteo Salvini, who is calling for significant tax cuts. Mr Salvini has threatened to bring down the Italian government should his proposals not be met.
The chairman of the largest Irish estate agency has said it is time to “shout stop” about the Central Bank’s mortgage lending restrictions and has called on the regulator to relax its rules to release “the genius of capitalism”, the Irish Times reported. Mark FitzGerald, the chairman of Sherry FitzGerald, said the Central Bank’s macroprudential rules, which cap new mortgages according to loan-to-value and loan-to-income limits, are “too binding”.
In communities across Britain, funding from London was shrinking to nothing — the central equation of national austerity, the Internation
Five more people have been arrested in the investigation into the collapse of British cafe chain Patisserie Valerie after accounting irregularities were discovered last year, the UK’s Serious Fraud Office (SFO) said on Sunday, the Irish Times reported. The new arrests bring the total detained to six. Patisserie Holdings’ former finance director Chris Marsh, who had helped grow the company from eight stores to more than 200, was arrested and released on bail over the scandal last year. Police did not name those arrested this month.
Resources by Country & Region
Dramatic changes to insolvency law throughout the EU in the last couple of decades have refocused on rehabilitation and rescue instead of liquidation.
Rescue frameworks have often introduced conflicts with traditional insolvency law principles such as equality of treatment of creditors, transparency and predictability. This has become even more complicated due to the requirement for judicial cooperation in cross-border insolvency cases.
A field of extremely high importance in a bank’s governance is the problem related to culture and integrity, and its being taken into account in an effective way in the entire organisation. This can be difficult to achieve since the notion is not inbuilt in the organisation and the leaders do not give it much attention.
A closer look at…The General Approach of the Council on the European Commission’s Proposal Directive on Preventive Restructuring Frameworks by Emmanuelle Inacio
On 11 October 2018, the (Justice and Home Affairs) Council agreed upon its position on the compromise text concerning the European Commission’s Directive Proposal on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU of 1 October 2018.
Has Newton had his day? relativity and realism in European restructuring by Riz Mokal and Ignacio Tirado
Isaac Newton had good reason for believing space to be absolute, and absolute space to be essential to the operation of the laws of motion. In a famous example, he noted that water in a rapidly spinning bucket is at rest relative to the bucket, yet has a concave surface.
The INSOL International Helsinki 2018 Joint One-Day Seminar took place at the Hilton Helsinki Strand Hotel on Wednesday 13th June and was jointly organised by INSOL International, INSOL Europe and the Finnish Insolvency Law Association (FILA) and enjoyed the presence of more than 100 delegates representing ten different jurisdictions: Denmark, Finland, France, Germany, Hungary, Romania, Sweden, the UK and the US.
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: