BlackRock gave it money. So did Goldman Sachs. Foreign investors had good reason to trust Huarong, the sprawling Chinese financial conglomerate. Even as its executives showed a perilous appetite for risky borrowing and lending, the investors believed they could depend on Beijing to bail out the state-owned company if things ever got too dicey, the New York Times reported. Now some of those same foreign investors may need to think twice. Huarong is more than $40 billion in debt to foreign and domestic investors and shows signs of stumbling.
Resources Per Country
- Afghanistan
- Armenia
- Australia
- Azerbaijan
- Bangladesh
- Brunei
- Cambodia
- China
- Cook Islands
- Cyprus
- Fiji
- Georgia
- Hong Kong
- India
- Indonesia
- Japan
- Kazakhstan
- Kyrgyzstan
- Laos
- Macau
- Malaysia
- Maldives
- Mongolia
- Myanmar
- Nepal
- New Zealand
- North Korea
- Pakistan
- Papua New Guinea
- Philippines
- Singapore
- South Korea
- Sri Lanka
- Taiwan
- Tajikistan
- Thailand
- Turkey
- Uzbekistan
- Vanuatu
- Vietnam
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Global banks are losing share in the $186 billion lending market for Chinese borrowers offshore, falling behind local rivals boosting their presence just as the nation’s corporate sector recovers from the pandemic, Bloomberg News reported. Their portion of such lending has steadily dropped over the past decade, hitting 37% so far this year to May 17, well below the 11-year average of 51%, according to Bloomberg-compiled data. Last year the share fell to 29%, the lowest since at least 2010.
The tribunal has also allowed the FHRAI to make its oral submissions on June 2, 2021. The total claims registered with Interim Resolution Professional (IRP) against OYO are to the tune of Rs 200 crore, it added, the Economic Times reported. Earlier on April 8, OYO had said that the NCLAT had ordered a stay on the formation of a committee of creditors in proceedings under the Insolvency and Bankruptcy Code against its subsidiary OYO Hotels and Homes Pvt Ltd (OHHPL).
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President Recep Tayyip Erdogan is set to announce a new relief package for Turkey’s small businesses hit by the global pandemic, in a bid to help a key part of his electorate affected by coronavirus lockdowns, Bloomberg News reported. The government is finalizing the details of the 5 billion-lira ($598 million) loan package that will be announced following Monday’s cabinet meeting, according to a circular shared by authorities with lenders that’s seen by Bloomberg. The ministry of trade and Erdogan’s office both declined to comment.
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China’s economic activity grew at a slower pace in April as retail sales missed expectations, complicating the picture of a steady and balanced recovery in the world’s second-largest economy, the Wall Street Journal reported. Official data released Monday showed industrial output and fixed-asset investment beating market expectations and continuing to lead the recovery, but domestic consumer spending, which has lagged behind for months, remaining soft.
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The Reserve Bank of India (RBI) has shot down suggestions of a fresh suspension of the Insolvency & Bankruptcy Code (IBC) due to the second wave of Covid-19, while making it clear that banks can still restructure distressed but viable loans, ensuring that their balance sheets remain transparent, the Times of India reported. During initial discussions with the government, RBI has indicated a freeze will not help anyone in the long run as it will only show lower level of non-performing assets (NPAs), government sources told TOI.
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Philippine Airlines Inc. is in talks with plane lessors about reducing its fleet size and has told them it’s considering a chapter 11 filing in the U.S. to carry out a restructuring, Bloomberg News reported. The airline could return at least two Airbus SE A350s to lessors and four of the 10 Boeing Co. 777s in its fleet. Two A350s are in the process of being taken back by aircraft lessors and will be redeployed to other carriers. Prior to the negotiations, Philippine Airlines had six A350s. One lessor reached an agreement with the airline for it to keep a 777 and an A330.
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Go Airlines India Ltd., a no-frills carrier controlled by the Wadia Group, has sought approval from India’s markets regulator to raise as much as 36 billion rupees ($490 million) through an initial public offering, Bloomberg News reported. The company may consider a pre-IPO share issue of as much as 15 billion rupees, the airline said in its prospectus Friday, adding the IPO size will be cut if the pre-IPO placement happens. Go Airlines, the second biggest customer for Airbus SE, is planning to use the proceeds for repayment of debt, and dues to Indian Oil Corp.
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China’s central bank injected medium-term cash into the financial system, in a push to keep borrowing costs low as the economy recovers from the virus pandemic, Bloomberg News reported. The People’s Bank of China added 100 billion yuan ($15.5 billion) of one-year funds with its medium-term lending facility on Monday, matching the amount coming due in a move that was expected by analysts. The authorities kept the interest rate unchanged at 2.95%.
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Months after sweeping changes to insolvency laws, the budget revealed the government will re-examine what should happen when businesses go bust, ABC.net reported. Robyn Erskine, partner at insolvency firm Brooke Bird, said that it was disturbing the government was again raking over the systems used when businesses need to be wound up. "They're back having a look at that regime, only months after the introduction, and that creates uncertainty in the marketplace," she argued.
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