The 19 finance ministers of the euro zone have elected Paschal Donohoe to be the president of their influential Eurogroup, giving Ireland a significant platform as the European Union debates how to handle the economic fallout of the Coronavirus pandemic, the Irish Times reported. The successful bid means that Donohoe will have the role of chairing and setting the agenda for discussions among the euro zone finance ministers, as well as setting the long-term agenda for the influential group.
LATAM Airlines, the largest airline group in Latin America, said today that it had secured an additional $1.3 billion for its financing proposal before a New York bankruptcy court, while adding its unit in Brazil to the debt restructuring process, Reuters reported. LATAM filed for U.S. bankruptcy protection in May, aiming to reorder $18 billion in debt. It was the world’s largest airline to date to seek an emergency reorganization due to the coronavirus pandemic. Today it said it had secured an additional $1.3 billion in funding from Oaktree Capital Management L.P.
The British government unveiled a raft of measures yesterday that it hopes will limit an anticipated spike in unemployment as a result of the coronavirus pandemic, the Associated Press reported. Most noteworthy were a new bonus plan aimed at getting firms to retain workers that have been idle for months, as well as tax cuts for hard-pressed firms in the tourism and hospitality sectors and a new “Eat Out to Help Out” discount scheme. Treasury chief Rishi Sunak said that his latest major intervention is aimed at weaning the U.K.
The European Union’s chief negotiator said today that EU and U.K. negotiators have yet to find a way to overcome “significant divergences” in their attempt to seal a post-Brexit compromise, the Associated Press reported. Following Britain’s departure from the EU’s political institutions on Jan. 31, the two sides are trying to secure a new trade deal before the end of the year, when Britain will effectively exit the EU’s tariff-free economic zone. But negotiations have proved difficult.
A South African court today dismissed an appeal by administrators in charge of South African Airways (SAA) against a ruling which prevented them from laying off staff, Reuters reported. The failure of the appeal means the administrators may have to start consultations about layoffs from scratch if employees do not accept severance packages they have been offered. South African labour law stipulates a minimum two-month consultation period for layoffs.
German state prosecutors are investigating individuals at Wirecard for suspected money laundering, they said today, adding to probes into alleged fraud, balance falsification and market manipulation at the collapsed firm, Reuters reported. The implosion of what was once a $28 billion fintech giant has caused major embarrassment in Germany, with industry experts and politicians criticising the authorities for what they see as their hands-off approach and a number of missed opportunities to spot problems.
Glencore Plc has restructured a $500 million oil-for-cash loan to Kurdistan in northern Iraq, reducing payments for 2020 as the semi-autonomous region struggles due to low petroleum prices, Bloomberg News reported. The pre-payment deals have been popular among some African and Middle Eastern producers with few others ways of raising funds. But they have also proved controversial, in some cases creating an opaque form of debt that puts governments’ finances under strain when oil prices drop.
Deloitte should be fined a record 15 million pounds ($19 million) for “serious and serial failings” in its audit of technology company Autonomy, a lawyer for Britain’s accounting watchdog told an independent tribunal today, Reuters reported. Deloitte, one of the world’s Big Four auditors, and two of its partners, Richard Knights and Nigel Mercer, were investigated in relation to their audit of Autonomy’s financial statements for 2009 and 2010.
Argentina’s bondholders shouldn’t expect any more improvements or changes to the country’s debt restructuring proposal, Economy Minister Martin Guzman said, according to a Bloomberg News report. The government sees no room for further modifications on an amended offer released Sunday night, part of Argentina’s bid to restructure $65 billion of debt. The proposal gives bondholders about $13 billion more than its initial plan announced in April. “Clearly not,” Guzman said Wednesday, responding to a question about modifying the deal in any way.
The Canadian government is predicting a historic CDN$343 billion (US$254 billion) deficit for 2020-21 resulting from its economic and stimulus plans to battle COVID-19, the Associated Press reported. The amount, included in a fiscal “snapshot” the Liberal government released Wednesday, is a huge jump from the CDN$28.1 billion (US$20.8 billion) deficit projected prior to the pandemic. The report says that since March, the federal government has spent more than CDN$231 billion (US$171 billion) on health and safety measures as well as direct aid to Canadians and businesses.
Resources by Country & Region
The differences between Member States in relation to substantive and procedural rules are commonly a source of difficulties in cross-border proceedings.
Among others the Regulation 2015/848 of the European Parliament and the Council on insolvency proceedings (hereinafter: EIR-R) provides some new legal instruments to limit the possibility of secondary insolvency proceedings. The undertaking (Art. 36) is one of the new features which has not been known before in Continental legal systems.
Demystifying offshore: Obtaining information by Stephen Alexander, Nicholas Fox, Justine Lau and Abel Lyall
In our last article, building upon presentations by the Anti-Fraud Forum, the authors discussed steps European-based insolvency officeholders could take in order to obtain recognition and assistance from the British Virgin Islands, Cayman Islands, Guernsey or Jersey (which, for convenience, we called the four Crown Dependencies and Overseas Territories (CDOTs).
In this article, we build upon that foundation by examining some of the more common mechanisms for obtaining information in the CDOTs.
Enhancing entrepreneurship and the growth of SMEs across Europe by Piya Mukherjee, Rita Gismondi, Ángel Alonso and Bart De Moor
Early Warning Europe is a project to enhance entrepreneurship and growth of SMEs across Europe. They work on policies related to insolvency, developing and testing innovative methods and helping companies in difficulty by setting up early warning mechanisms.
Asset depletion is predominantly driven by the debtors’ tendency to place significant parts of the insolvency estate beyond the reach of creditors.
Environmental protection and sustainable development are nowadays a global concern to such an extent that the question of the link between environment and insolvency must be raised.
Indeed, a company facing a pre-insolvency or an insolvency procedure may cause damages to the environment or risk causing damages to the environment in two scenarios.
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: