Denmark cut its key interest rate back to its historical low, mirroring an earlier move by the European Central Bank as it seeks to defend the currency peg, Bloomberg News reported. The 10 basis-point cut brings the nation’s deposit rate to minus 0.75% and increases the likelihood that Denmark’s experiment with negative rates will last for more than a decade. It also ends the longest period of unchanged rates in Denmark -- 3 1/2 years -- since the krone was anchored to the euro, in 1999.
Europe’s credit investors are worried that Mario Draghi will let them down. Portfolio managers have been selling corporate bonds and government debt futures as hopes for additional stimulus measures at Thursday’s European Central Bank meeting start to fade, Bloomberg News reported. Euro investment-grade bonds are down -0.8% in September, their worst month in almost three years. “We’ve taken profits on the credit risk that we held to protect the gains we’ve made this year,” said Mohammed Kazmi, a portfolio manager at Union Bancaire Privee, which oversees about $135 billion in assets.
Eurozone industrial production contracted more than expected in July, dragged down by a sharp fall in Germany and marking the latest batch of bleak economic data ahead of Thursday’s meeting of the European Central Bank, the Financial Times reported. The single currency area’s industrial output contracted 0.4 per cent in July over the previous month, according to official data from Eurostat. Compared to the same month last year, factory output in the 19 eurozone countries was down 2 per cent, worse than the 1.3 per cent fall expected by economists polled by Reuters.
Treasury plans to prioritise debt repayments to the government in company insolvencies represents a “cash grab” that will have “serious consequences” for the economy, industry bodies have warned, The Times reported. In a joint letter to Sajid Javid, the chancellor, accountancy, investment and legal trade groups said that the proposed legislation would make it harder to rescue businesses, limit access to finance across the economy, increase the impact of insolvencies on other businesses and undermine government tax receipts.
Southern Italy has the worst graduate employment rates in the EU, according to new data published on Thursday which highlighted the impoverished region’s economic dysfunction, the Financial Times reported. Only one in three recent graduates is in employment in the area, less than half the EU average and the worst of any region in the bloc, including the poorest parts of Greece and Spain.
A Latvian court declared the country’s sixth-biggest lender insolvent, sealing the demise of the last bank to level accusations in a high-level corruption scandal, Bloomberg News reported. The decision, which Latvia’s Financial and Capital Market Commission said was taken on Thursday, comes almost a month after AS PNB Banka became one of only a handful of lenders declared by the European Central Bank to be “failing or likely to fail” because of insufficient capital. It joins Banco Popular Espanol SA, Banca Popolare di Vicenza SpA, Veneto Banca SpA and ABLV Bank AS.
Nearly 10m households in the UK are paying their energy bills via standard variable tariffs. These are the rates customers default to when any special energy deal runs out and are usually the most expensive around, the Financial Times reported. A customer could be put on a standard variable tariff if their fixed-term tariff contract ends and they have not chosen a new one; this usually occurs after around a year. The average price of a standard variable tariff from the largest six suppliers for a typical dual fuel customer is £104.50 a month, or £1,254 a year.
Losses at Topshop, once considered the jewel in the crown of Philip Green’s Arcadia group, widened to £498m for the year to September 2018 after taking significant exceptional charges relating to property leases and brand value, the Financial Times reported. The company accounts for around half of Arcadia’s overall sales and along with six other group entities has used insolvency procedures to secure lower rents at many of its UK stores. Topshop’s loss in the previous year was £15.6m.
Algeria, which hasn’t sold debt abroad in over two decades, signaled it may reverse its aversion to outside borrowing and lift some restrictions on foreign investment, Bloomberg News reported. The protest-torn OPEC member, still led by veterans of the war for independence from France waged over half a century ago, was forced to restructure billions of dollars worth of loans from foreign banks in the 1990s. While struggling to revive the economy, the government has been wary of turning to outside financing for fear it could again leave the nation beholden to others.
Telecom Italia SpA Chairman Fulvio Conti is planning to resign in a move that signals the battle for influence between two of the phone carrier’s largest investors may be nearing an end, according to people familiar with the matter, Bloomberg News reported. Fulvio Conti, 71, was appointed as chairman last year in a list proposed by Elliott Management Corp. as part of a board reshuffle won by the U.S. activist investor against the French media-conglomerate Vivendi SA. Conti’s resignation hasn’t been finalized and is expected to be discussed at a Sept. 26 board meeting, the people said.
Resources by Country & Region
The Preventive Restructuring Directive (“PRD”), which is about to be adopted by the European legislator, deserves the close attention of French practitioners, as it will become part of Book VI of the Commercial Code.
Directive on Preventive Restructuring Frameworks: Political compromise in the trilogue talks and imminent adoption by Prof. Reinhard Bork
After more than two years of intensive discussions in politics and science, the adoption of the Directive of the European Parliament and of the Council on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30 shortly lies ahead.
The fate of the practitioners in procedures conerning restructuring, faced with the future Directive on Preventive Restrucuring Frameworks by Emmanuelle Inacio
After the Niebler’s Report on the European Commission’s Directive Proposal on preventive restructuring frameworks1 was endorsed by the plenary meeting of the European Parliament on 12 September 2018 and the Council (Justice and Home Affairs) adopted its General Approach during its meeting on 11 October 2018, the co-legislators have successfully concluded their Trilogue.
We are grateful to Catherine Ottaway from Hoche Avocats (Paris, France) who kindly send us an update on the adaptation of French law to the Regulation on insolvency proceedings. The article focuses in particular on the Order which was adopted in order to facilitate the implementation of the mechanisms created by the Regulation and to enable courts and practitioners to act quickly in often complex insolvency cases, where economic and social issues require exemplary responsiveness.
Blockchain brings value reconstruction to assets, including assets digitalisation, standardisation, registering, and precise pricing. In the “traditional” insolvency practice, there are always three pain points:
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: