Angola’s central bank has ordered lenders to give their clients the option of converting their foreign-currency mortgages into kwanzas, Bloomberg News reported. The move aims to reduce the risk of default amid a sharp depreciation of the local currency of Africa’s second-biggest oil producer. Only bank customers whose income is paid in kwanzas qualify, the central bank said in a statement published on its website Wednesday.
India’s corporate affairs ministry has extended suspension of new bankruptcy filings for three months from Friday, a statement from the ministry said, Bloomberg News reported. Bankruptcy filings, that have been in progress from earlier this year, have been halted to help financially-strapped borrowers hit by the pandemic, stay out of court. The move comes as the government seeks to cushion an economy already contracting at the worst pace in decades from more damage. The move has been challenged by banks, already saddled with one of the worst bad-debt ratios in the world.
Following a summer marred by the ongoing coronavirus pandemic the situation being faced by the island’s hoteliers remains dire, and prospects are bleak, the Cyprus Mail reported. According to the Cyprus Hotel Association (Pasyxe) and the Association of Cyprus Tourist Enterprises (ACTE), which counts among its members some of most prominent luxury hotels in the island, the financial situation at the moment does not leave room for optimism.
The National Company Law Appellate Tribunal (NCLAT) has set aside the NCLT order rejecting the insolvency plea filed against Andhra Pradesh-based Coastal Oil Gas Infrastructure on the grounds of delay in filing, Business Standard reported. A three-member NCLAT bench has now directed the Hyderabad bench of the National Company Law Tribunal (NCLT) to admit the plea filed by the financial creditors -- Bank of India and Central Bank of India -- and decide it "expeditiously" within one month.
Losses at Funding Circle more than tripled in the first half of the year, as the sudden onset of the coronavirus pandemic forced the peer-to-peer lender to write down the value of loans it had hoped to sell on to other investors, the Financial Times reported. Funding Circle originates small business loans on behalf of retail investors and other financial institutions, and generally only holds a small number of loans on its own balance sheet.
Owners of clubs in rugby’s Premiership have said teams could go bust and the professional game may cease to exist if the government does not provide financial aid after its U-turn on allowing fans at stadiums amid the COVID-19 pandemic, Reuters reported. British Prime Minister Boris Johnson told parliament that, as part of new restrictions to tackle a second wave of COVID-19, the government was putting on hold plans for 25%-33% capacities from Oct. 1.
Kenya should renegotiate the terms of a loan borrowed from China to build a modern railway line, parliament’s transport committee said in a report, one of many African countries grappling with a pandemic-induced downturn and heavy debt, Reuters reported. The East African nation raised its public debt ceiling last year. It took a loan from China to build the $3.2 billion standard gauge railway (SGR), which started operations in 2017.
Debt-laden China Evergrande Group, the country’s second largest property developer, has pleaded for government support to approve a restructuring plan that has languished for four years, warning it faces a cash crunch that could lead to systemic risks, according to people familiar with the matter, Reuters reported. The company, the most indebted developer in China, made the request in a letter to the government of southern Guangdong province dated Aug. 24, according to three people who confirmed the letter’s authenticity.
Loss-making Dubai-listed contractor Arabtec Holding has hired advisory firm AlixPartners to help it restructure the company's debt, two sources familiar with the matter told Reuters, Reuters reported. AlixPartners is assessing the company’s debt profile, before any potential discussions with Arabtec’s creditors, said the sources, declining to be named as the matter is not public. Arabtec did not respond to a query for comment when contacted by Reuters on Thursday. AlixPartners declined to comment.
Australia said on Friday it would simplify bank lending rules to free up credit in a bid to stimulate the economy, which slid into its first recession in nearly 30 years due to the coronavirus pandemic, Reuters reported. Shares of Australia’s “Big Four” banks rallied after the announcement in early trade, with the heavyweight financial sector surging more than 3%. The benchmark index was up more than 1%. National Australia Bank and Westpac Banking rose nearly 6%, while Commonwealth Bank of Australia was up more than 2%. Australia and New Zealand Banking Group rose nearly 5%.
Resources by Country & Region
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: