A one-time debt restructuring allowed by India’s central bank to help lenders and borrowers amid the COVID-19 pandemic will prolong uncertainty about the banking sector’s asset quality, Fitch Ratings said on Tuesday, Reuters reported. India’s central bank said last week it will allow restructuring of corporate and personal loans to ease debt strains on companies and lenders, a move widely awaited by the banking industry.

The Supreme Court on Monday asked Department of Telecom (DoT) to apprise it as how it plans to recover Adjusted Gross Revenue (AGR) related dues from telecom companies facing insolvency proceedings and whether spectrum given to these companies can be sold, Business Standard reported. DoT told the top court that their stand is that the spectrum cannot be sold by the telecom companies facing insolvency proceedings as it not their property.

The former head of China's securities regulator has raised concern about banks addressing funding shortages by ramping up issues of short-term interbank debt instruments that have in the past attracted regulatory scrutiny, the International New York Times reported on a Reuters story. Xiao Gang, former chairman of the China Securities Regulatory Commission, said that against the background of a large increase in bank credit, banks faced an "arduous task" of making up for cash shortfalls for maturing old products.

Pre-dominance of cash transactions, independence of directors and frequent changes of auditors are among the potential red flags for insolvency professionals in detecting avoidance transactions during insolvency proceedings, according to an IBBI document, ETRealty reported. Under the Insolvency and Bankruptcy Code, resolution professionals and liquidators are required to determine whether corporate debtors concerned were subject to avoidance transactions. The Code provides for a time-bound and market-linked resolution of stressed assets.

Australian companies are likely to deliver smaller dividends in what is forecast to be the country’s worst earnings season in a decade because of the coronavirus pandemic, with even firms that benefited from the upheaval expected to show caution, Reuters reported. Fund managers and analysts expect the corporate results season that begins this week to reveal an overall decline in profits of around one-fifth due to the abrupt shutdowns that followed the virus outbreak.

The National Company Law Appellate Tribunal (NCLAT) has upheld an NCLT order setting aside a plea to initiate insolvency proceedings against Gujarat Ambuja Exports Ltd, Business Standard reported. A three-member NCLAT bench upheld the order of the Ahmedabad bench of the National Company Law Tribunal (NCLT), which had set aside the plea of Samay Impex, an operational creditor of Gujarat Ambuja Exports Ltd (GAEL).

The true financial cost of Covid-19 is something India would rather not acknowledge, let alone bear — at least not until the pandemic has played out. That explains why the central bank on Thursday allowed a one-time restructuring of corporate and personal loans that have been under stress ever since Prime Minister Narendra Modi put the country under a severe lockdown in March, Bloomberg News reported in a commentary. Those nationwide restrictions have given way to more localized containment. But with India becoming only the third country after the U.S.

German prosecutors suspect Wirecard AG extended large loans to partner companies before its implosion in June, at a time when the payments company was already facing media reports alleging accounting fraud, Bloomberg News reported. The prosecutors surmise the loans by the disgraced German firm may have been unsecured and may have been made to partner companies in Dubai, Singapore and the Philippines, a person familiar with the matter who asked not to be identified discussing the private information said.

Turkey stepped back from currency interventions and moved to relax some of the restrictions that tethered the lira for months, allowing it to tumble to a record against the dollar, Bloomberg News reported. State banks withdrew support for the lira at specific levels against the U.S currency even as it dropped to an all-time low, and were largely absent from the market on Thursday, according to people familiar with the matter.

China’s central bank has announced the first bankruptcy of a commercial bank in nearly two decades, authorising the liquidation of regional lender Baoshang Bank, a year after it seized control of the institution, the Financial Times reported.