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.

A 8,764% surge in the shares of a company with a minuscule public shareholding has prompted India’s regulator to consider changing its rules for firms emerging from the nation’s bankruptcy process, Bloomberg News reported. The Securities & Exchange Board of India has sought comments on a proposal to cut the time given to companies that re-list after bankruptcy resolution to boost the free float to at least 10% within six months from 18 months currently.

There’s mounting scrutiny over the state-owned parent of BMW AG’s joint venture partner in China, Brilliance Auto Group Holdings Co. Investors are increasingly concerned about the Liaoning-based firm’s capacity to juggle its debt load as the pandemic weighs on profits, Bloomberg News reported. Concern is growing about the financial health of Brilliance Auto, the parent of Hong Kong-listed Brilliance China Automotive Holdings Ltd., which manufactures vehicles with the German carmaker in China via a joint venture.

Eastar Jet Co. on Tuesday began the process to find a new owner after Jeju Air Co. scrapped its plan to acquire the smaller budget carrier amid the new coronavirus' impact on the airline industry, YonhapNews reported. Eastar Jet has selected Deloitte Anjin LLC, Yulchon LLC and Heungkuk Securities Co. as lead managers to handle the deal to sell its controlling 51.17 percent stake, Eastar Jet Senior Vice President Kim You-sang said over the phone.

New regulations issued by China’s financial authorities may help to smooth the resolution of bond defaults and exchanges and to improve transparency surrounding the bond-exchange process, but the effectiveness of the changes will ultimately depend on how they are implemented in practice, says Fitch Ratings. The Shanghai and Shenzhen stock exchanges, under the supervision of the China Securities Regulatory Commission (CSRC), released formal rules on corporate bond exchanges on 30 July, Fitch Ratings reported.

The National Company Law Appellate Tribunal (NCLAT) has ruled that home-buyers cannot drag realty companies through the insolvency process for recovering monies awarded to them by a real estate regulator, The Hindu Business Line reported. The NCLAT ruled that a home-buyer cannot be treated as a financial creditor when the real estate company is unable to honour a decree awarded by the State-level Real Estate Regulatory Authority (RERA). Home-buyers need to take recourse to the civil law to recover the money.

AZB & Partners and De Brauw Blackstone Westbroek advised the resolution professional managing the insolvency of Jet Airways when the airline sold two floors of a Mumbai building to a company controlled by Brookfield Asset Management, the Indian Business Law Journal reported. Khaitan & Co advised Brookfield. The National Company Law Tribunal (NCLT) had given the go-ahead for the ₹4.9 billion (US$65 million) sale after both HDFC, to which Jet Airways had mortgaged the premises, and the committee of creditors of Jet Airways had approved it.

Thailand’s bankruptcy court said on Monday it had scheduled two more days of hearings to consider Thai Airways International Pcl’s request for restructuring, Reuters reported. The Central Bankruptcy Court said in a statement 16 creditors opposed the airline’s restructuring proposals, of which three were institutional creditors and the rest, individual creditors. The court scheduled Aug. 20 and Aug. 25 for additional hearings for those opposing the plan. Thai Airways acting president, however, remained confident after the first hearing on Monday.

The lira weakened for a fourth day in a sign to traders that the central bank’s efforts to stem its declines by raising the average cost of borrowing are falling short, Bloomberg News reported. The Turkish currency slid almost 0.4% versus the dollar, bringing its depreciation this month to almost 6%, the most in emerging markets. The central bank has sought to anchor the currency by raising the cost of funding ahead of Thursday’s policy meeting. While the benchmark one-week repo rate is at 8.25%, policy makers are offering funding though more expensive channels.

Japan’s economy shrank by 7.8 percent in the second quarter of the year, posting its worst performance on record as the coronavirus pandemic ground economic activity to a near halt in April and May, the International New York Times reported. The nosedive in output in the three-month period — an annualized drop of 27.8 percent — was the third straight quarter of contraction for Japan, the world’s third-largest economy after the United States and China.