Jet Airways’ creditors said on Monday they plan to begin insolvency proceedings against the Indian airline in a last-ditch bid to find a buyer for the carrier or its remaining assets and recover some of what they are owed, Reuters reported. Once India’s biggest private carrier, Jet Airways stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country. “Lenders have decided to seek resolution under IBC since only a conditional bid was received,” they said in a statement, referring to India’s Insolvency and Bankruptcy Code.

Turkey’s credit score slid deeper into junk as Moody’s Investors Service cut its assessment, citing an increasing risk of a balance of payments crisis and a government default, Bloomberg News reported. Turkey’s long-term issuer rating was lowered to B1 from Ba3 by Moody’s, the rating company said in a statement on Friday. The outlook on the rating is negative. Turkey is now four notches below investment grade, on par with Jordan, Greece, and Uzbekistan. “The balance of risk is firmly tilted to the downside,” Moody’s said.

A Danish high court has increased the prison sentence for a former manager of OW Bunker’s Singapore arm to five years, after prosecutors appealed against the original 18-month sentence for actions that contributed to the marine fuel supplier’s collapse, Reuters reported. OW Bunker filed for bankruptcy in 2014 just eight months after listing in Copenhagen, partly due to losses on an estimated $120-$130 million credit line given by its Singapore-based arm to small local company, Tankoil Marine Services.

Bond traders in China are rethinking counterparty risks as shock waves from a government takeover of a bank ripple through the country’s financial markets, Bloomberg News reported. It’s now getting harder for corporate bonds to be accepted as collateral for repo financing as lenders increasingly demand top quality bonds such as Chinese sovereign bills and policy bank notes as pledges. Traders are having second thoughts on taking even AAA rated short-term bank debt as security in the wake of last month’s seizure of Baoshang Bank Co.

Just as India’s banks emerge from under a pile of bad loans to large energy, steel and other industrial companies, they are facing a new reckoning from the accelerating crisis in the country’s shadow banking sector, Bloomberg News reported. A year after a series of defaults by Infrastructure Leasing & Financial Services Ltd. forced the government to intervene and exposed weaknesses in the sector, the problems of India’s non-bank financial companies are entering a new phase. Other weaker lenders such as Dewan Housing Finance Corp. and Anil Ambani’s Reliance Capital Ltd.

India’s market regulator on Thursday ordered enhanced disclosure norms for credit rating agencies in an effort to increase transparency as the country reels under a slew of rating downgrades and defaults that have roiled debt and equity markets, Reuters reported. The Securities and Exchange Board of India (SEBI) directed ratings agencies to formulate a uniform benchmark for the “probability of default” for each rating category and disclose that on their website for the ratings of long-term and short-term instruments.

They have billions of dollars in funding, backing from China’s biggest tech companies and the world’s largest electric vehicle market at their doorstep. But Chinese EV start-ups face a struggle to survive in the face of intensifying competition and subsidy cuts, the Financial Times reported. Although analysts are reluctant to name companies that could disappear, the two dozen Chinese EV start-ups such as Nio and Xpeng, which have raised more than $10bn in recent years, are expected to be cut down to a handful.

New Reserve Bank of India norms on debt restructuring are likely to hit the profitability of already distressed non-banking financial companies (NBFCs), Livemint reported. The guidelines mandate lenders to keep additional provisioning of 20% if a resolution plan is not implemented within 210 days from the date of default and 35% if not implemented within 365 days of default. This move to include NBFCs along with banks in the circular comes at a time when these firms are reworking their growth strategy in the wake of a liquidity crisis.

Auto sales in China declined for an 11th straight month in May, with the slump in demand showing no sign of easing and the country’s automotive industry bracing for losses tied to new emissions standards, The Wall Street Journal reported. Sales for the latest month fell 16% from a year earlier, to 1.91 million vehicles. New vehicle emission standards are set take effect July 1, and dealers are scrambling to sell their older vehicles before they are disallowed at the end of June, often by offering steep discounts.

In China, debt takes many shapes – on the books, off the books, or buried deep within the financial system. Now, debt can even be considered equity, Reuters reported. In a bid to boost the economy, China this week announced it would allow local governments to borrow more to fund infrastructure investment. As part of this push, it will let municipalities use the proceeds of special-purpose bonds as equity in railroad, highway and other projects. 2 Previously, local governments weren't able to use such debt as seed capital. Using debt proceeds to fund equity is a dangerous proposition.