China aims to ramp up financing for home projects in the coming days as part of its support measures, but banks' reluctance to lend to the crisis-hit sector will remain a major obstacle for the distressed developers who need fresh funding the most, Reuters reported. Under the "project whitelist" mechanism, governments of 35 cities across the country are gearing up to recommend to banks residential projects that need financial support. Distressed developers are hoping the new mechanism will bring succor with some of their projects getting included in the whitelist.
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China Evergrande New Energy Vehicle (NEV) said on Friday it has suspended negotiations on amendments to the terms of a HK$3.89-billion ($497.42 million) share subscription agreement with Dubai-based mobility firm NWTN, Reuters reported. In August, the electric vehicle unit of China Evergrande had agreed to issue 6.18 billion new shares to NWTN to support its parent's restructuring plan. If the transaction had been completed, NWTN would have held a 27.50% stake in NEV, while China Evergrande's interest would have been diluted to 46.86%.
The end of China Evergrande is near, and foreign investors face a long, and likely bumpy, road trying to recover billions of dollars of their investments in the beleaguered property developer. The process will serve as a lesson for fund managers of the potential risks in investing in China’s distressed assets, WSJ Pro Bankruptcy reported. On Monday, Hong Kong’s high court ordered the liquidation of Evergrande, putting an end to repeated extensions trying to save the company from being dissolved.
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China’s finance ministry promised more proactive government spending this year, as Beijing doubles down on boosting the economy amid a deepening property slump, while wary economists say bolder moves are needed to rejuvenate growth, the Wall Street Journal reported. Fiscal expenditure in 2024 will be maintained at the necessary intensity and fiscal transfers to local governments will remain at certain levels, officials from the Ministry of Finance said at a press conference on Thursday, signaling more financial support from Beijing to local governments struggling with piling debt.
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India's fast-growing airline industry faces higher leasing bills unless the country clarifies its insolvency laws, the head of major leasing firm Aviation Capital Group (ACG) said on Wednesday, Reuters reported. Foreign lessors, including an Irish subsidiary of U.S.-based ACG, were blocked from recovering jets caught up in the bankruptcy of budget carrier Go First last year and many are still embroiled in a legal battle to recover their assets.
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Chinese property developer Country Garden has put its 450 million pound ($570 million) residential development in East London up for sale as it presses ahead with asset disposals at home and overseas after defaulting on its offshore debt, Reuters reported. Property agent Knight Frank said it had been appointed by Risland UK - a subsidiary of Country Garden - to market the 1,000-home Calico Wharf development, where construction has yet to start, in the Poplar area of the city.
The poster child of China’s property crisis is no more. But the mess that triggered the downfall of China Evergrande is far from over, the Wall Street Journal reported. A Hong Kong court on Monday ordered Evergrande’s liquidation after creditors once again failed to reach a deal on restructuring its debts. The blow fell more than two years after Evergrande’s default on its dollar bonds ushered in a dangerous new phase in China’s efforts to rein in one of the largest real-estate booms in history.
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Former Indiabulls promoter Rajiv Rattan has lost control of Sinnar Thermal Power after the bankruptcy appellate court vacated a stay to initiate corporate insolvency against the company, the Economic Times of India reported. Sinnar Thermal Power (STPL) is a subsidiary of the listed company RattanIndia Power, one of the largest distressed power producers, which has a 1,350 MW power plant at Nashik in Maharashtra. The National Company Law Tribunal (NCLT) admitted the company for corporate insolvency on September 19, 2022.
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The seeds of former flight attendant Mitsuko Tottori's rise to the top of Japan Airlines (JAL) were planted in the aftermath of the carrier's bankruptcy more than a decade ago, Reuters reported. Tottori, who rose through the ranks from cabin crew to chief customer officer, takes over as president of JAL in April, becoming one of the few women to lead a major global airline. Qantas, opens new tab has a woman boss and KLM and Air France are led by women who report to a male group CEO.
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In a relief to low-cost carrier SpiceJet, the National Company Law Tribunal (NCLT) on January 29 dismissed an insolvency petition filed against the company by aircraft lessor Wilmington Trust SP Services, The Hindu reported. A Delhi-based bench of NCLT comprising members Mahendra Khandelwal and Rahul Prasad Bhatnagar dismissed the petition of the aircraft lessor based in Dublin, Ireland. Wilmington moved the insolvency plea against SpiceJet in June 2023 over unpaid dues.
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