Asia Pacific

After all the promises by the federal government to clean up the insolvency industry, a report released on Wednesday by the Australian Securities and Investments Commission indicates that things are getting worse, not better, The Age reported in a commentary. There are 682 liquidators in Australia and a report by ASIC into the supervision of the profession reveals that it received 437 reports of alleged misconduct involving registered liquidators in the past year, which is up slightly on last year's 426 complaints.

Liquidators of Nathan Tinkler's Mulsanne Resources were given the go-ahead by the court to sue the struggling Australian tycoon for allegedly letting Mulsanne trade while insolvent, said one of Tinkler's creditors, Blackwood Corp., Reuters reported. Blackwood is trying to recover A$28.4 million ($29.5 million) that Tinkler's private company Mulsanne agreed to pay last year for a one-third stake in the coal explorer. As a result of the claim, a court late last year appointed liquidators to wind up Mulsanne.

Cypriot lawmakers narrowly approved the island's €10 billion ($13 billion) bailout deal, paving the way for the country to receive its first installment of aid in a few weeks—as the country now turns to the daunting task of restructuring its devastated economy, The Wall Street Journal reported. The loan agreement was approved by 29 lawmakers in the country's 56-member legislature, with 27 votes against the deal. As expected, Cyprus's main opposition party, Communist AKEL, and its junior ally, the Socialist EDEK party, voted against the agreement.

Cyprus's parliament decides on Tuesday whether to back a bailout imposed by its EU partners, with approval likely from a thin majority against mounting calls for the island to exit the euro, Reuters reported. Lawmakers were due to meet in an extraordinary session at 4 p.m. (1300 GMT) to ratify the terms of the aid, which is conditional on Cyprus winding down its second-largest bank and slapping heavy losses on uninsured depositors in another.

Asia’s emerging economies have lapped the developed world in recent years, posting strong economic growth that has lifted millions of people out of poverty and created burgeoning middle classes that are fueling local consumption. But is emerging Asia – defined by the International Monetary Fund as China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam – in danger of falling into the “middle-income” trap?

Investment banks are among the first and biggest beneficiaries of Japan’s new economic-stimulus policies, known as Abenomics. Since Prime Minister Shinzo Abe came into office in December with a plan to end more than a decade of deflation, banks’ underwriting business for both equity and bonds is soaring. Companies have more than tripled sales of stocks to 1.7 trillion yen ($17 billion) so far this year compared with the same period in 2012, according to data compiled by Bloomberg. Corporate bond issuances climbed to 3.1 trillion yen, the best start to a year since 2009, the data show.

Waikato and Auckland house builder Starplus Homes is in receivership, a move guaranteed to raise the fears of dozens of creditors believed to be owed about $25 million, the Waikato Times reported. Westpac Bank appointed Corporate Finance's Andrew McKay and John Cregten as receivers yesterday afternoon, further confusing the situation around a property company failure thought to be the biggest in the Waikato since the start of the global financial crisis in 2008. Up to 140 Hamilton, Cambridge and Auckland house sites and partially completed houses may be involved.

An Australian Federal Court Justice has ordered an inquiry into the fees and expenses incurred by PPB Advisory while the insolvency group investigated the 2010 collapse of Burrup Fertilisers, SmartCompany.com.au reported. But PPB has defended its handling of the case, claiming the inquiry is narrow in scope and the court threw out nine of the 10 claims brought against the firm by Burrup founder Pankaj Oswal. The collapse of Burrup Fertilisers has dragged on for years. The business was originally placed in receivership in 2010, amid a dispute between Burrup and Norwegian part-owner Yara.

Russia wants to play a bigger part in talks over solving Cyprus' financial problems but will only restructure its loan to the island if its interests here, especially those related to VTB Bank, are protected, Moscow's finance minister said, CyprusMail reported. Russian banks and companies have poured money into Cyprus since the 1990s, taking advantage of low taxes and relaxed business regulations.

Lenders from around the world are fueling a boom in short-term loans across Asia, helping push debt to record levels as a burgeoning middle class strives for a better lifestyle and banks look to diversify away from the slow-growing West, The Wall Street Journal reported. Companies ranging from Citigroup Inc. to Japan's big banks to a Dutch consumer-finance provider that built its business in Central and Eastern Europe are issuing credit cards or stepping up lending for cars, motorcycles and home appliances from India to Indonesia.