Insolvency regulator IBBI is serious about enforcing a recently enacted legal provision to ensure completion of the corporate insolvency resolution process (CIRP) in a time-bound manner, The Hindu Business Line reported. It has asked registered insolvency professionals to furnish details of all ongoing CIRP, which is not completed within 330 days. Reasons for non-compliance and details of persons responsible for non-completion have to be furnished to the regulator to enable it to take appropriate legal remedy.

China’s local governments face a record number of lawsuits for failing to pay their contractors as the country’s slowing economy puts a strain on public finances, the Financial Times reported. The financial outlook has deteriorated so markedly that analysts have warned that there is a risk of social unrest. Chinese courts have listed 831 local governments as being in default in the first 10 months of this year, compared with 100 in the whole of 2018.

China Minsheng Investment Group Corp. once sought to be the nation’s version of JPMorgan Chase & Co. Instead it’s the country’s biggest dollar bond defaulter this year, Bloomberg News reported. With $2 billion of debt maturing in 2020, the company is scrambling to raise cash. It’s slashed executive pay as much as 83% and is selling assets. One of the largest private investment companies in China, the group was set up by 59 non-state companies in 2014 with a mandate to help Chinese private enterprise expand globally.

European Bank for Reconstruction & Development will present a set of proposals to Turkish authorities and banks on Friday on how to overcome the nation’s bad-debt predicament, Bloomberg News reported. The London-based lender is suggesting that the definition of non-performing loans be updated in line with those of the European Banking Authority and that guidance be given on how banks value and manage collateral for credit. It is also urging that a longer-term solution be put in place on how troubled debt is restructured.

China’s local governments are helping inject fresh capital into small lenders across the country, part of an expanding campaign to restore confidence in the world’s largest banking system, Bloomberg News reported. At least 10 small Chinese banks have raised money this year by selling shares packaged with non-performing loans, in several cases to buyers controlled by local authorities. In at least one deal, the NPLs were sold at above-market rates.

The government is mulling a special window for resolution of stressed non-banking finance companies under the Insolvency and Bankruptcy Code, a senior government official said, Mint reported. A special window, is certainly something which is being examined closely, the official said. The move also comes against the backdrop of financial sector players like Dewan Housing Finance Corporation Ltd (DHFL) facing troubles. Punjab and Maharashtra Co-operative (PMC) Bank is also grappling with financial woes.

India’s financial crisis has hit ordinary people hard. School teachers and electrical engineers have seen their pension savings get stuck in bonds of defaulted institutions, a Bloomberg View reported. More than a million depositors of a cooperative bank can’t access their cash. Homeowners have spent billions of dollars on apartments that will never be finished. Yet for workers in rich nations, the blowup in India’s shadow-banking and real-estate industries is an opportunity. Will they profit from it or get burned like their Indian counterparts?

A small Chinese lender made a rare decision to skip early redemption on its local tier-two bond, sparking fresh concern on the country’s smaller lenders as non-performing loans rise amid an economic slowdown, Bloomberg News reported. Guangdong Nanyue Bank Co, based in the coastal province in Southeast China, said it won’t exercise an early redemption on its 1.5 billion yuan ($215 million) 6% tier-two bond next month, according to a filing on Thursday on the China Bond website. It didn’t give a reason for its move.

Sberbank and the International Bank of Azerbaijan (IBA) have settled a dispute over funds owed to Russia’s largest bank by IBA, an Azeri and Sberbank officials said on Wednesday, Reuters reported. In 2017, state-run IBA proposed a plan to restructure $3.3 billion of its debt and said in July it had received approval from creditors holding 93.9% of the debt involved. As part of the restructuring, which was under Azeri law, IBA obtained a moratorium from a London court preventing creditors from taking action against it without court permission.

The fear that at Dewan Housing Finance Corporation (DHFL) may spill over to other non-banking finance companies (NBFC) has pushed the government to introduce fresh rules and regulations to bring even the financial sector under the purview the Insolvency and Bankruptcy Code (IBC), The Economic Times reported. A government source said that Ministry of Corporate Affairs (MCA) has finalized new rules under Section 227 of IBC that would be notified soon after all the concerns of market regulator SEBI and financial sector regulator RBI are addressed.