China sent shock waves through global markets on Friday after its central bank issued a shock statement that said all cryptocurrency-related transactions are illegal and must be banned, Sharecafe reported. It was the strongest signal from the country of its determination to crack down on the industry, even though it is working on its own cryptocurrency. The surprise announcement and the way it was slipped out on Friday on the PBOC website, with no minister’s name attached, also raised eyebrows.
India is planning new measures to clarify a landmark corporate bankruptcy law that was meant to bring the nation's largest corporate borrowers to heel, amid complaints it has become a “mockery of justice,” Nikkei Asia reported. The law giving more power to creditors was one of the Modi government’s signature reforms, but five years after it went into effect, banks are still taking big losses in bankruptcies, and the debt-resolution process has been plagued by delays and legal uncertainty.
The bankruptcy of Chinese real estate company Evergrande is much more than a “Chinese Lehman,” according to an OpEd in Eurasia Review. Lehman Brothers was much more diversified than Evergrande and better capitalized. In fact, the total assets of Evergrande that are on the brink of bankruptcy outnumber the entire subprime bubble of the U.S. The problem with Evergrande is that it is not an anecdote, but a symptom of a model based on leveraged growth and seeking to inflate GDP at any cost with ghost cities, unused infrastructure and wild construction, according to the OpEd.
China’s HNA Group, which declared bankruptcy earlier this year after struggling to pay off debts that once totalled over $100 billion, has added a new chapter to its restructuring as two of its top officials have been taken away by police, mingtiandi.com reported. Chairman Chen Feng, who founded Hainan Airlines in 1989 and grew it into the sprawling conglomerate known as HNA, was detained for suspected crimes, along with chief executive Adam Tan, HNA said in a statement to its official WeChat account late Friday.
Irish petrol and diesel suppliers say consumers here are not at risk of the shortages being experienced in Britain, which the industry says is largely due to a lack of truck drivers within the U.K. and panic-buying, the Independent.ie reported. Industry group Fuels for Ireland said on Sunday that there will be no interruption to the supply of petrol, diesel and home-heating oil in Ireland.
The Commerce Court number 1 in Las Palmas de Gran Canaria agreed this week to declare necessary bankruptcy for tourism companies Anfi Sales SL and Anfi Resorts, The Canary News reported. There will be an appeal against that judgement heard before the Provincial Court, although it will not be suspensive; that is to say, it will not impede the judgement. Judge Alberto López Villarrubia accepted the request made last year by the company Isla Marina SL to declare the companies bankrupt.
Angela Merkel’s tenure will be remembered as Germany’s, and Europe’s, cruelest paradox: On the one hand, she dominated the continent’s politics like no other peacetime leader — and is leaving the German chancellery considerably more powerful than she had found it. But the way she built up this power condemned Germany to secular decline and the European Union to stagnation, according to a commentary in Jacobin. There is no doubt that Germany is today stronger politically and economically than it was when Merkel became chancellor back in 2005.
Boris Johnson’s Threats to Abandon Brexit Deal on the North ‘Not Helpful,’ Says Ireland’s EU Commissioner
Irish EU Commissioner Mairéad McGuinness has warned U.K. Prime Minister Boris Johnson to abandon his threats to set aside Northern Ireland’s post-Brexit special trade status, the Independent.ie reported. McGuinness was speaking after a visit to London for talks on the U.K.’s money market status in the EU after Brexit, which included a meeting with British finance minister Rishi Sunak. She said the EU will soon publish new proposals to deal with practical problems on the North’s trade with England, Scotland and Wales, especially focused on ensuring medical supplies.
More and more Netherlands residents have foreign savings accounts, the NL Times reported. This was reported by financial comparison site Geld.nl based on its own research. In recent months, in particular, foreign banks active in the Netherlands have seen their products become more popular. According to Geld.nl, this is because they offer relatively high interest rates. “If you look at the savings accounts, the top five with the highest interest rates are all accounts from foreign banks,” said expert Amanda Bulthuis of Geld.nl.
El Salvador last week became the first country in the world to adopt bitcoin as legal tender, with the aim of reducing costs in sending remittances, attracting foreign investment and boosting domestic consumption, Market Research Telecast reported. It does so after its parliament approved the cryptocurrency legalization, a law that has not been well received by international organizations and agencies.
Resources by Country & Region
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.
The past experience with the European Insolvency Regulation (2000) has shown that even if all the courts in the Member States are only bound by decisions delivered at the EU level by the CJEU, all interested parties involved in an insolvency case (namely courts, insolvency practitioners, chartered accountants, lawyers and even debtors themselves in certain cases) may find it of great interest to look at the decisions made by other courts in other Member States for guidance.
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: