The International Monetary Fund will stand by Argentina as it works through its economic crisis, Managing Director Kristalina Georgieva said on Thursday. She added that the Fund was waiting to see the future policy framework adopted by the Latin American country, which holds an election later this month in which a change of government is widely predicted, Reuters reported.
More than two-thirds of global corporate bond fund managers expect default rates to climb over the next 12 months, according to a new report from the International Association of Credit Portfolio Managers, Bloomberg News reported. In a September survey of over 100 member institutions in more than 20 countries, 68% of respondents said they expect defaults to rise, up from 58% three months ago. In the survey, 74% said North American default rates will climb, while 75% expect European default rates to increase, up from 52% in June.
Angola is hoping sweeping economic reforms will smooth an ambitious plan to sell key state assets, including stakes in oil company Sonangol, a share of Puma Energy and more than 100 other enterprises. Africa’s second biggest oil exporter is in a rush for cash as it struggles to cope with moribund crude prices, slumping output and years of mismanagement that left Sonangol bloated and inefficient, Reuters reported. In August, the government published an extensive list of assets that will be offered to investors via public offerings, stake sales, asset sales or tenders.
The German government has revised down its forecast for economic growth next year from 1.5 per cent to 1 per cent, in a further sign of the slowdown that is clouding the prospects for the eurozone’s largest economy, the Financial Times reported. The economics ministry did not change its projection of 0.5 per cent growth in gross domestic product in 2019. Germany’s economy has been roiled by global trade tensions, Brexit-related uncertainty and upheaval in the auto industry.
United Group, a private equity-owned cable company, is in exclusive talks to buy Vivacom, Bulgaria’s largest telecoms group, according to people familiar with the situation, the Financial Times reported. The company, owned by BC Partners, is nearing a deal for Vivacom, which went up for sale in July, the people said. Buyout firm KKR also owns a minority stake in United Group. Vivacom was expected to be valued at about €1.2bn based on recent deals in the region for telecom assets, people involved in the sale said.
U.K. retail sales held up better than expected in September in the face of the intensifying Brexit crisis, Bloomberg News reported. The quantity of goods sold rose 0.2% from August when auto fuel is excluded, the Office for National Statistics said Thursday. Sales including fuel were unchanged. Both measures were forecast to decline for a second month. A buoyant labor market has supported consumer spending through the turmoil since the 2016 referendum. While heightened uncertainty ahead of the Oct.
Snatch-and-grab is the new hallmark of Indian finance. As a banker friend in Mumbai put it to me only half-jokingly, a unit of "grabbed" cash collateral in hand is worth more than two units of hypothetical receivables, a Bloomberg View reported. Yet this is no laughing matter. Not only is opportunistic behavior going to worsen India’s $200 billion-plus bad loan crisis, but now that everyone from the government’s sleuths to the courts are joining the melee, the ensuing chaos will limit the recovery for lenders and threaten depositors.
Chinese banks are bolstering their offshore loan recovery teams as they face a wave of bad debts linked to struggling overseas businesses and acquisitions, the Financial Times reported.
Liquidator Grant Thornton is seeking litigation funding to step up its hunt for 500 million pounds ($632.30 million) invested in UK company Euro Forex, which Chinese police have said was a pyramid scheme, Reuters reported. Reuters reported in 2016 how Euro Forex, or EuroFX, allegedly scammed thousands of investors in China and other countries. EuroFX had a British CEO and headquarters and has since been wound up. A pyramid scheme does not make real investments, but instead uses cash from new investors to pay older ones.
The resolution plans of debt-laden shadow lender Dewan Housing Finance Corporation Ltd (DHFL) have hit a roadblock after the custodian of DHFL bonds said on Thursday it is taking the firm to bankruptcy court on behalf of certain debenture holders, Reuters reported. The application was filed on Oct 16 in the Mumbai Debts Recovery Tribunal to claim 268.61 billion rupees ($3.8 billion), it said. The claim is: “for recovery of the amount of debentures outstanding, along with interest, for and on behalf of all debenture holders under all the three public issues,” the custodian said.
Resources by Country & Region
Almost a decade after the onset of the European debt crisis, Greece continues to struggle. While the country has managed to address many of its fiscal inconsistencies, the real economy has yet to reap the benefits of stabilisation, recording only a sluggish growth of 1.9% in 2018.
The financial crisis of 2008 affected the economic players more than ever, with the winding-up of a large number of financial institutions worldwide. Due to the specialisation of banks among other legal entities, insolvency is a scenario to be avoided, with restructuring being the more favourable solution.
It is the case in most European jurisdictions that there are various forms of protection available for parties with an interest in property which places any prospective purchaser on notice, or in some circumstances prevents a sale, where there are competing interests in relation to it.
Abengoa subsidiary to face first creditor-forced insolvency proceedings by Jose Carles Delgado and Carlos Cuesta Martin
Commercial Court nr. 2 of Seville has granted the opening of insolvency proceedings against Abengoa’s subsidiary, ‘Simosa IT’, after the petition submitted by one of its commercial creditors. It was the first time the Commercial Court agreed, since other creditors had also tried this measure against other companies of the group, with no success.
Is the situation of insolvent ‘Simosa IT’ the prelude of what will happen with the rest of the Spanish group?
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.
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: