Asia

The national company law appellate tribunal (NCLAT) has halted insolvency proceedings of Gurgaon-based Raheja developers after the realtor approached the court claiming it had been fraudulently dragged into bankruptcy by two home buyers, The Economic Times reported. Raheja was admitted for insolvency proceedings in August 2019 by the National Company Law Tribunal (NCLT) which held the company in default of its obligations to two home buyers who at the time had approached the tribunal claiming delay in delivery of flats.

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The Chinese group buying British Steel has reached an agreement with trade unions over its rescue of the failed manufacturer, as it races to wrap up a takeover by the end of next month, the Financial Times reported. Executives from Jingye and union officials have reached an understanding for the basis of new employment contracts and other aspects of a turnround plan, three people with knowledge of the discussions said.

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Deutsche Bank AG and a Singapore based hedge fund bought more debt of an embattled Indian shadow lender, highlighting the growing foreign interest in the discounted assets of the financier at the center of a credit crisis, Bloomberg News reported. Deutsche Bank has almost doubled the debt it holds of Altico Capital India Ltd. to 3 billion rupees ($42.1 million) in the last four months, while Singapore-based Broad Peak Investment Advisers Ltd. has acquired debt of about 1 billion rupees, people familiar with the matter said.

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Debt-laden Evergrande Raises More Debt

While fears over coronavirus continue to spread in China (and just now, in Taiwan), there’s news of another ailment watchers of the People’s Republic have been concerned about for the past decade: corporate debt, the Financial Times reported in a commentary…Chinese property giant Evergrande Group is paying as much as 12 per cent in its latest overseas bond issuance to raise $2 billion for debt repayment.

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Deutsche Bank AG has moved an insolvency application against Uttam Galva Steels Ltd. at the National Company Law Tribunal to recover dues against the foreign currency-denominated loans its Singapore branch extended, BloombergQuint reported. Uttam Galva Steels—which had entered into a $20-million credit facility agreement with the lender for its capital and operational needs—had challenged the maintainability of the bank’s application under section 7 of the Insolvency and Bankruptcy Code. The section allows financial creditors to file insolvency application.

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Investors will be closely watching HNA Group Co. as $500 million of dollar bonds mature this week, testing the debt-laden Chinese conglomerate’s repayment ability, Bloomberg News reported. A $200 million bond issued by HNA Group International will come due Jan. 23, while its $300 million note is set to mature a day later, according to Bloomberg-compiled data. HNA Group International declined to comment when reached by Bloomberg via email. HNA Group Chairman Chen Feng predicted last month that 2020 will be “the decisive year to win the war” against its long-running liquidity challenges.

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Wang Yizhi sensed an opening last July when local investors raced to dump the debt of Future Land Development, a Shanghai-based developer, after the arrest of its founder on sexual abuse charges, the Financial Times reported. Shortly after the scandal broke, Mr Wang, general manager of Raman Capital, bought four-year bonds for 88 cents on the dollar. Within weeks, he had sold them for 95 cents, after the developer put dozens of projects on sale to improve its cash flows.

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A $21 Billion Telco War Comes Down to $2

India’s great telecom melee was bad enough as a brawl between service providers and the state, with operators complaining about the government’s outlandish claims on their past revenue, Bloomberg News reported in a commentary. Now, consumers have jumped into the fray. A confusing three-cornered fight could lead to ugly outcomes: The country’s broken financial system would take a fresh hit; new 5G networks could be delayed; and the government’s annual revenue from the sector might get squeezed.

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Most of China’s provinces are expecting slower economic growth in 2020, underlining the nationwide trend which is expected to result in a tweaking of the formal goal when the legislature meets in March, Bloomberg News reported. Twenty-two of 31 major cities, provinces and autonomous regions have so far cut their 2020 target for gross domestic product expansion, according to their work reports which lay out plans for this year. Twelve provinces, which made up 42% of China’s economic output at the end of September last year, expect growth at around 6% or lower this year.

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Lenders to Altico Capital India Ltd. are trying an unusual method to cut debt at the shadow lender, as attempts to sell the company or restructure the loans face challenges including swelling soured credit and a funding squeeze, Bloomberg News reported. Creditors have asked each other to bid for an asset swap that would make real estate firms, until now funded by Altico, liable to directly repay the debt, according to people familiar with the matter.

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