The UK has spent more money fighting coronavirus than almost all comparable countries but still languishes towards the bottom of league tables of economic performance in 2020 and deaths caused by the virus, according to Financial Times research. On Wednesday, the independent Office for Budget Responsibility said the UK’s economy was set to shrink by 11.3 per cent in 2020, while the government would need to borrow £394bn to fund a shortfall in taxes and £280bn in public spending to fight Covid-19. Compared with the average of other G7 leading economies, the cost to the UK government is set t
British banks are finalizing plans for outsourcing the recovery of billions of pounds in taxpayer-backed business loans issued during the Covid-19 pandemic, Bloomberg News reported. A consortium of lenders is expected to set up an entity that will oversee debt collectors tasked with chasing bad loans, people with knowledge of the matter said.
The funeral directors will have to wait for their big get-together. So will the toymakers, the equestrians and the vegans. All those groups and many more had scheduled trade fairs to take place in Germany in recent months. But these rituals of business life, a chance for people to make deals, check out the competition and commune with others in the same walk of life, are in crisis, the International New York Times reported. The mass cancellation of trade fairs has been a disaster for hotels, restaurants and taxi drivers around the world, but especially in Germany.
More than two-thirds of mortgage and personal loans that had principal and interest repayments deferred due to the impact of Covid-19 were now "back to normal", says the New Zealand Bankers' Association, the New Zealand Herald reported. At the same time, nearly 40 per cent of those loans that had reduced repayments were now back on track. In March, in consultation with the government, the Reserve Bank and credit reporting agencies, all New Zealand retail banks offered loan deferrals for up to six months and reduced loan repayments to customers financially impacted by the Covid-19 global pan
Philip Green’s Arcadia Group is poised to seek protection from creditors as soon as Monday and become the most notable U.K. retail insolvency since the beginning of the coronavirus pandemic, Bloomberg News reported. The owner of brands including Topshop and Topman saw its sales decimated by forced store closures and, over the weekend, stepped up plans to file for administration, according to people familiar with the matter, who asked not to be named because the information is private.
India’s economy contracted 7.5 per cent year-on-year in the quarter ending September, taking it into a technical recession as strict lockdown measures to deal with the coronavirus pandemic continued to weigh on output, the Financial Times reported. The performance was better than many analysts had forecast but still reflected the heavy blow the pandemic has delivered to what was recently the world’s fastest-growing large economy.
Zambia’s state mining arm ZCCM-IH plans to appeal a court ruling in favour of Vedanta , which has sought arbitration in a dispute over its jointly owned copper mine that is facing liquidation, the mining minister said. India-based Vedanta has been locked in a protracted dispute with the Zambian government since May 2019, when Lusaka appointed a liquidator for the mine. “ZCCM-IH has already indicated that they are appealing because they are not happy with the court judgment,” Mining Minister Richard Musukwa told parliament on Thursday. Last week, a Zambian court ordered a halt to liquidation
Ten years ago today, Ireland went into the arms of the International Monetary Fund (IMF). Following weeks of speculation, rumours and semi-denial, the government accepted the inevitable. Economic sovereignty was lost, The Irish Times reported. It was the most extraordinary and the most depressing moment in Irish economic history.
Brazil’s government will pardon about half of the roughly 14 billion reais ($2.6 billion) in debt owed to it by Brazilian telecom firm Oi SA, the country’s solicitor general said on Friday, Reuters reported. Oi, which has been working to emerge from bankruptcy protection for years, had accumulated gargantuan fines tied to quality of services and other regulatory demands, making telecoms regulator Anatel one of the company’s biggest creditors. The settlement, with the remainder of Oi’s government debt payable in installments, puts an end to 1,700 ongoing court cases between Oi and Anatel, sa
Germany’s audit watchdog is investigating Deutsche Bank’s head of accounting Andreas Loetscher over potential misconduct in his previous role at EY, where he was one of the partners responsible for the audits of Wirecard, the Financial Times reported. Wirecard, a once high-flying payments company, received unqualified audits from EY for more than a decade before it collapsed into insolvency this summer. Mr Loetscher, who joined Germany’s largest lender in May 2018 after a two-decade long career at the Big Four firm, is one of at least two Wirecard auditors who are personally being investiga
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: