India’s Supreme Court Tuesday refused to halt a lower court from hearing cash-strapped power producers seeking protection from bankruptcy proceedings, Bloomberg News reported. The verdict of the two-judge bench headed by Rohinton F. Nariman ensures that lenders won’t be able to initiate insolvency proceedings against power producers who may have defaulted on loan repayments unless they are categorized as wilful defaulters. Power producers had challenged Reserve Bank of India’s revised debt servicing rules, which they say can push nearly 75 gigawatts of projects into bankruptcy.

China’s leader, Xi Jinping, has called it the “project of the century” and said it will usher in a “golden age” of globalisation. With Beijing-backed projects in 78 countries, the “Belt and Road Initiative” (BRI) is one of the world’s most ambitious development programmes. But critics fear it could become the conduit through which some of China’s debt problems are transmitted overseas, the Financial Times reported.

China's HNA Group Co Ltd is in advanced talks to sell a 30 percent stake in aircraft lessor Avolon Holdings Ltd to Japan's Orix Corp, two sources said, as the company attempts to restructure and trim stakes even in its core assets, the International New York Times reported on a Reuters story. The aviation-to-financial services conglomerate, which has racked up massive debt from acquisitions in recent years, is nearing a deal to sell the stake in Dublin-based Avolon for about $2.2 billion, the sources, who were familiar with the matter, told Reuters.

Indonesia at times felt uncomfortably close to the center of this year’s emerging-market selloff as bond yields rose for five straight months and the rupiah slid more than 6 percent, Bloomberg News reported. Some funds are now saying it’s time to get back in. Loomis Sayles & Co. is looking to boost holdings of Indonesian bonds, citing sound domestic fundamentals and inflation that is close to target. Western Asset Management Co. says a proactive central bank and the recent increase in yields may be creating a buying opportunity for the nation’s dollar-denominated debt.

Investors are watching closely to see whether Turkish banks will maintain access to the foreign funding they need to keep economic activity humming, as the economy is battered by U.S. sanctions, rating cuts, concern about a looming fine on a state bank and a plunging lira, Bloomberg News reported. Turkish lenders have a good record of foreign borrowing even at the height of a financial crisis and are strong enough to weather a slowdown, according to bank executives.

Beijing’s softening stance on deleveraging and defaults has helped fuel a mini-revival across Asia’s credit markets, pushing up bond prices in recent weeks and sparking debt issuance, The Wall Street Journal reported. Issuers from China to South Korea and India sold about $9.2 billion in new U.S. dollar bonds during the week ended Aug. 3, the highest weekly tally in Asia excluding Japan since mid-April, according to Thomson Reuters. New deals had nearly ground to a halt in early July over fears of rising defaults among Chinese borrowers.

Noble Group, the Singapore-listed commodity trader scrambling to complete a debt-for-equity swap, has increased the size of the bond that will be issued by its restructured trading holding company, according to a statement released on Monday morning.

Struggling to find well-paid work after arriving in Shanghai as a graduate from a middle-ranked Chinese university, Tom Wang turned to another source to fund his spending: credit cards. “Using credit cards did not feel like spending money, and the debt grew and grew,” said the 26-year-old, whose starting salary of Rmb3,000 ($470) a month could not cover rent and the consumption habits he called “irrational”, such as buying the latest smartphone, the Financial Times reported.

Noble Group Ltd., the commodity trader seeking to push through a restructuring after losing billions of dollars and defaulting, has filed a claim in Australia against two coal producers for alleged breaches of contractual obligations under a marketing-services agreement, Bloomberg News reported. The Singapore-listed company, which will report another loss later this month, said a unit has filed the claim in the Supreme Court of New South Wales against Yancoal Australia Ltd. and its subsidiary Gloucester Coal Ltd.

India's government seems intent on abandoning good ideas for dealing with the country's banking crisis and encouraging bad ones, a Bloomberg View reported. Perhaps that shouldn't be surprising, given that the bureaucrats don't yet seem to have grappled with the real nature of the problem. The latest terrible proposal for dealing with the bad loans weighing down India's state-owned banks, which control more than two-thirds of deposits, is to create a "bad bank" -- an asset-management company that would take stressed assets off their balance sheets.