Asia Pacific

A profitable Chinese duck processing company has defaulted on its debts after banks refused to roll over its loans — in a sign of lenders’ wariness over refinancings as China’s economy slows, the Financial Times reported. Until recently, Chinese banks have been reluctant to write off big debts, preferring to keep businesses alive by rolling over their loans. But privately owned Zhongao has cited banks’ tighter lending policies as a reason why it lacked the funds to repay Rmb282m ($45m) in principal and interest despite turning a profit last year.

Aircraft leasing firm Intrepid Aviation Ltd, the biggest creditor of Skymark Airlines, is seeking another sponsor for the failed budget carrier instead of ANA Holdings, court documents showed. Intrepid's search is part of a restructuring plan for Skymark filed at a Tokyo court on Friday, the same day the budget carrier filed a rival proposal that hinged on ANA buying a 16.5 percent stake. Intrepid's filing, seen by Reuters on Monday, did not name any other potential sponsors and did not say why the company opposed ANA's sponsorship.

Corporate insolvency is expected to rise this year in the mainland and Hong Kong, with an increasing number of companies struggling to protect margins from late payments by customers, the South China Morning Post reported. Even as the economy continues to grow at a relatively good pace, mainland firms are grappling with a state-driven shift in economic structure. This would inevitably lead to shrinking business opportunities in sectors such as construction, cement and steel, pushing up defaults in these areas, said Dutch trade credit insurer Atradius.

The rising number of tips from the Chinese public alleging official malfeasance highlights the popularity of the country’s anticorruption campaign, even as the leadership may be shifting gears on the crackdown, The Wall Street Journal reported. Almost daily, the Communist Party’s antigraft body publishes data that show the number of officials investigated and punished is rising, including the detention of 19 top executives from state-run companies between March and April.

The corporate regulator sounded a warning on Thursday about stockbroking firms moving into higher-risk operations in the wake of the failure of Sydney-based BBY, noting it would have more to say next week on its inquiries into the collapse, The Sydney Morning Herald reported. The Australian Securities and Investments Commission has been delving into what went wrong at BBY, particularly after the stockbroking and advisory firm was placed into voluntary administration on May 18.

Kaisa Group, the troubled Chinese property developer, needs another lifeline, the International New York Times DealBook blog reported. On Thursday, the only serious offer for the company evaporated, as Sunac China Holdings abandoned its proposed $1.2 billion takeover of Kaisa. Sunac agreed in February to pay about $580 million for a 49.3 percent stake in Kaisa, with plans to pay far more for a controlling stake. The caveat was that Kaisa had to restructure its finances with creditors and bondholders, something it has struggled to complete.

A Christchurch-based investment company at the centre of a Serious Fraud Office and Financial Markets Authority probe has been placed in receivership, Stuff.co.nz reported. The development will be bad news for hundreds of nervous investors in the company, Arena Capital, a foreign exchange brokerage trading as BlackfortFX. Auckland accountant Alan Garrett, a liquidator at KordaMentha, has been appointed receiver. The assets of the company were frozen by the Financial Markets Authority last week over concerns the company was breaching regulations and the Serious Fraud Office is investigating.

The Japanese government will miss out on Y201.8bn ($1.6bn) in Bank of Japan profits this year as the central bank piles up capital against future losses, the Financial Times reported. According to its annual accounts, the BoJ is keeping 25 per cent of last year’s profit as capital, instead of the legally required 5 per cent. Last year it withheld 20 per cent. The move highlights both the size of BoJ profits from its massive monetary easing and the anxiety it feels about losses when the time comes to raise interest rates.

Skymark Airlines Inc's biggest creditor, aircraft leasing company Intrepid Aviation Ltd , plans to try to block ANA Holdings Inc from taking a 16.5 percent stake in the failed Japanese discount carrier, two people said. The decision by Intrepid to try to stop ANA from becoming a sponsor for Skymark's revival from bankruptcy comes after ANA, Japan's biggest carrier, withdrew from an agreement with Intrepid to lease up to seven jetliners, said the people, who have direct knowledge of the talks. They spoke on condition of anonymity because the talks weren't public.

Lixil, the Japanese bathroom fittings group, faces losses of at least Y41bn ($337m) after a China-based, German-listed subsidiary filed for insolvency and announced it was considering legal action against its former chairman and his son, the former deputy chairman, the Financial Times reported. The case could revive investor concerns about transparency at China-based companies with foreign listings following other problems in recent years, including the 2012 bankruptcy of Sino-Forest, the Canadian-listed Chinese forestry group.