China’s steel crisis is setting the stage for a wave of bankruptcies and speeding a much-needed consolidation of the industry, according to Bloomberg Intelligence. Almost three-quarters of the country’s steelmakers suffered losses in the first half and bankruptcy is likely for many of them, Michelle Leung, a senior analyst at BI, said in a note. Xinjiang Ba Yi Iron & Steel Co., Gansu Jiu Steel Group and Anyang Iron & Steel Group Co. face the highest risk, and could be potential acquisition targets, she said.

China’s central bank has lowered a short-term policy rate and pumped more liquidity into the financial system, as it continues efforts to help boost the economy, the Wall Street Journal reported. The People’s Bank of China cut the 14-day reverse repurchase interest rate by 10 basis points to 1.85%, and injected 74.5 billion yuan, equivalent to $10.6 billion, of liquidity via the policy tool, it said on its website on Monday.

The National Company Law Tribunal (NCLT) on Monday issued notice to debt-ridden air carrier SpiceJet over the plea filed by one of its operational creditors, the Times of India reported. A two-member NCLT bench, comprising Mahendra Khandelwal and Sanjeev Tanjan, has directed Spicejet to file a reply and list the matter for the next hearing on November 14. SpiceJet is already facing several insolvency petitions from creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation at NCLT and the appellate tribunal NCLAT.

The NCLAT has set aside a petition filed by the state tax department claiming dues from Reliance Communications (RCom) observing that it was based on the assessment made after the initiation of insolvency resolution process against the debt-ridden firm, the Economic Times of India reported. A two-member NCLAT bench upheld the earlier order passed by the Mumbai bench of the National Company Law Tribunal (NCLT), which had rejected the state tax department's second claim of Rs 6.10 crore. Corporate Insolvency Resolution Process (CIRP) against RCom was initiated on June 22, 2019.

Turkey’s central bank will probably discuss interest-rate cuts at its November meeting, but there is no pre-determined path for monetary policy and the decision will be driven by economic data between now and then, Bloomberg News reported. The bank will focus primarily on inflation, which authorities predict will gradually slow to 38% by the end of this year, compared with 52% in August, according to the person, who asked not to be identified because of the sensitivity of the matter.

A legal change in the bonds that will emerge from a debt restructuring in the South Asian island of Sri Lanka could set a precedent for sovereign debt contracts, Bloomberg News reported. The country’s officials and its international bondholders have agreed to keep New York as the governing law of new notes to be issued under a $12.6 billion rework, but are introducing a mechanism that allows creditors to request a change to English or Delaware law, according to a government statement on Thursday.

The Centre could soon put in place a creditor-led insolvency resolution mechanism, largely involving out-of-court arrangements for even big loan defaulting firms, to ease the bankruptcy court burden and quicken recoveries for lenders, people aware of the development told the Economic Times of India. The new mechanism will stipulate a shorter deadline for resolution, likely 150 days, compared with the 270 days (including a 90-day extension) currently stipulated under the Insolvency and Bankruptcy Code (IBC).

Sri Lanka said that has reached an agreement in principle with bondholders to restructure about $12.6 billion in bonds, just two days before the country heads to elections that have rattled investors, Bloomberg News reported. The government and bondholders agreed on terms including a “27% haircut on the nominal amount of existing bonds,” according to a statement released Thursday at the conclusion of a third round of talks. A previous statement in July referred to a 28% haircut.