Troubled Peking University Founder Group Corp’s (PUFG) administrator is not recognising the keepwell deed the Chinese conglomerate provided for a $300 million dollar bond issued by Nuoxi Capital, financial intelligence provider Redd reported, Reuters reoprted. Keepwell deeds are used by some Chinese companies to facilitate offshore bond sales by their subsidiaries. The deeds are similar, according to lawyers, to “letters of support” where the issuer would be backed by an onshore company, but they stopped short of guaranteeing the debt.

An Indian court has agreed to hear a petition by the nation’s largest lender seeking to initiate personal bankruptcy against tycoon Anil Ambani after the former billionaire failed to repay debt, Bloomberg News reported. A two-member panel of the National Company Law Tribunal, or NCLT, in Mumbai has appointed a bankruptcy administrator to verify a claim by State Bank of India, or SBI, that Ambani offered about $160 million of personal guarantees while seeking loans in 2016 for his now insolvent Reliance Communications Ltd.

New measures to allow Indian lenders to restructure loans will provide a “durable” resolution for cash-strapped businesses and help revive the economy, according to the central bank’s chief, Bloomberg News reported. “On one hand health of banks is very important and on the other hand businesses are under a lot of stress due to covid,” Reserve Bank of India Governor Shaktikanta Das Das said in an interview with CNBC-Awaaz on Friday. The plan has replaced a blanket loan moratorium that’s due to expire later this month, he said.

Virgin Australia Holdings Ltd bondholders have withdrawn plans for a proposed recapitalisation of the airline that was meant to rival one from U.S. private equity firm Bain Capital, a spokesman for the bondholders said on Friday, Reuters reported. Singapore’s Broad Peak and Hong Kong’s Tor Investment Management, which had proposed the rival deed of company arrangement (DOCA) to recapitalise the airline, hold around A$300 million ($216 million) of Virgin’s A$2 billion of unsecured bonds, part of nearly A$7 billion owed to creditors.

Thailand’s fiscal policy should play a greater role to help the economy recover from the impact of the coronavirous pandemic, the central bank governor said on Friday, with the benchmark interest rate at a record low, Reuters reported. The Bank of Thailand (BOT) will focus on assisting with debt restructuring, Veerathai Santiprabhob told reporters after the launch of a debt restructuring programme for businesses. “In such critical condition, the one who is capable of stimulating the economy is the government...

China’s fragile economic recovery is ushering in a dangerous new phase for the nation’s $4.1 trillion corporate bond market, Bloomberg News reported. With the economy now strong enough for policy makers to dial back financial support but still too weak to save the most distressed borrowers, some fund managers are bracing for defaults on domestic Chinese debt to hit record highs this year. Delinquencies have already started rising after a remarkably quiet second quarter, and pressure on borrowers is set to grow as 3.65 trillion yuan ($529 billion) of notes mature by year-end.

The deadline for completion of Jet Airways (India) Ltd's insolvency resolution process, which was earlier extended till 21 August due to the nationwide lockdown to contain the spread of the covid-19 virus, will be extended further due to the pandemic, Mint reported. However, the resolution professional (RP) entrusted by the lenders of the airline to complete the insolvency process, hasn't given a fresh deadline yet.

Expressing concern over non-payment of the Adjusted Gross Revenue (AGR) related dues by the telecom companies which are under insolvency, the Supreme Court on Thursday said "without paying for the horse, telecos are taking a ride,” Deccan Herald reported. The apex court said it is “extremely worried” that almost the entire AGR dues will be “wiped out” in the IBC process. The top court wondered can a liability like AGR related dues be wound up, under the guise of selling spectrum under the Insolvency and Bankruptcy Code (IBC).

Genting Hong Kong, one of the territory’s leading cruise ship operators, has halted payments on debts of almost $3.4bn in the latest financial blow for an industry that has been devastated by the coronavirus pandemic, the Financial Times reported. The company, controlled by Malaysian billionaire Lim Kok Thay, said on Wednesday evening that it would “temporarily suspend all payments to the group’s financial creditors” and seek to restructure its debt.

Fosun International Ltd. is poised to lose its 20% stake in Cirque du Soleil Entertainment Group, the latest in a series of failed overseas deals for the Shanghai-based insurance, health care and tourism conglomerate, Bloomberg News reported. A consortium of Montreal-based Cirque du Soleil creditors is set to take control of the struggling circus operator, people familiar with the matter said. The company filed for bankruptcy protection in June as the Covid-19 pandemic slammed its distinctive global chain of musical, acrobatic shows.