Lakshadweep, a joint venture between Sudhir Valia-led Suraksha ARC and Dosti Realty, will look at “improving” its bid for Jaiprakash Infrastructure (JIL) if an opportunity is afforded to it, sources close to the development told FE. The firm has already conveyed its intent to the resolution professional and the lenders to the troubled real estate company, the sources added.

India’s new bankruptcy law is being bogged down by bitter court room disputes that include the likes of ArcelorMittal and the Tata Group -- jeopardizing the law’s promise of time-bound resolution in a country famous for its sluggish legal system, Bloomberg News reported. None of the 12 large debtor companies that the central bank forced into bankruptcy court in June have been sold yet. The National Company Law Tribunal or NCLT, in charge of the process, has extended a 270-day deadline enshrined in the law for Bhushan Power & Steel Ltd. and Essar Steel India Ltd.

Argentina’s latest capitulation may have helped to keep Turkey out of the headlines in recent weeks but some believe the latter’s banking sector could ultimately provide the most dramatic fireworks, the Financial Times reported. When a country has loaded up on foreign currency-denominated debt, the last thing it wants to see is a plunge in its own currency. Unfortunately, Turkey has seen just that, with the lira slumping 12.6 per cent against the dollar since mid-February. A look at the country’s metrics is sobering.

China's stock exchanges have stepped up their scrutiny of the booming asset-backed securities (ABS) market, publishing new rules that require prompt information disclosure and risk management updates from issuers, the International New York Times reported on a Reuters story. China's ABS market has exploded over the past few years as the government's crackdown on shadow banking pushed borrowers to alternative sources of finance. Issuance of ABS jumped to 1.5 trillion yuan ($236.84 billion) last year, from almost zero in 2013, according to consultancy China Securities Analytics.

Indonesia’s household consumption, a major contributor to GDP, has been growing at a lacklustre rate in recent years because of weak commodity prices and currency devaluations, the Financial Times reported. The latest economic indicators and FT Confidential Research data show signs of recovery, although the overall outlook remains precarious. This situation is likely to drive pro-growth President Joko “Jokowi” Widodo to support households with subsidies, a populist policy that is incompatible with his fiscal reform agenda as he seeks re-election in April next year.

With corporate-debt defaults on the rise, China’s securities regulator will probe bond funds to ensure that they have proper risk controls in place, according to people familiar with the matter. The China Securities Regulatory Commission’s investigation will include whether individual firms’ funds are shuffling high-risk bonds between them, said the people who asked not to be named as the discussions aren’t public, Bloomberg News reported. One suspicion is mutual-fund companies may be motivated to beautify their holdings to avoid a mass withdrawal by investors, the people said.

General Motors will stay in South Korea for at least 10 years and set up its Asia-Pacific headquarters in the country, government officials said on Thursday, revealing terms of a deal aimed at rescuing the U.S. automaker’s struggling GM Korea unit, Reuters reported. The U.S. car maker’s Korean unit averted a bankruptcy filing with a wage deal clinched last month, but analysts and customers, as well as the South Korean government, have had doubts about GM’s commitment and about how long the loss-making company will remain in business.

A Shanghai court imprisoned a tycoon who used a mountain of debt to buy the Waldorf Astoria hotel. Small Chinese companies are increasingly saying they cannot repay their bills, as money gets more expensive or harder to find, the International New York Times reported. For other private businesses, the cost to borrow has shot up. Faced with the looming consequences of a decade-long borrowing binge, the Chinese government is intensifying its efforts stamp out risky lending and speculative froth from the world’s second-largest economy.

Australian fashion brand Metalicus has entered voluntary administration and will today begin a major sale across all of its outlets, SmartCompany.com.au reported. In an email to customers on Wednesday evening, the company acknowledged the “difficult period for our staff and customers”, as it explained plans to launch a sale event at all of its flagship stores, Myer concession outlets and online, starting Friday. Metalicus said the sale event will involve “significant savings on all pieces”.

China credit spreads hit their widest level in nearly two years this week following new regulations that undermined long-held assumptions about implicit guarantees on debt linked to local governments, the Financial Times reported. Chinese localities have long used arm’s length local government financing vehicles (LGFVs) to skirt restrictions on direct fiscal borrowing and to finance infrastructure, contributing to a surge in economy-wide debt since 2008.