Asia

Homebuyers and lenders of debt-laden Jaypee Infratech Thursday started voting on state-owned NBCC's bid to acquire Jaypee group's realty firm and complete the construction of over 20,000 flats, Business Standard reported. The voting process will end on Sunday and the outcome would be declared on May 20. The financial creditors would vote for the second time on the resolution plan for Jaypee Infratech, a subsidiary of Jaiprakash Associates Ltd (JAL). On May 3, the financial creditors rejected Mumbai-based Suraksha Realty's bid through voting process.

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Banks Eye Hanjin PH Debt Resolution

Local bank creditors of Hanjin Heavy Industries and Construction Philippines (HHIC-Phil), the local unit of Korea’s shipbuilding giant Hanjin, expect resolution of the shipbuilder’s debt within the year. The local Hanjin owes five local banks a total of $412 million, considered as the biggest corporate default in the country, the Manila Bulletin reported. Among the creditor banks, Rizal Commercial Banking Corp. (RCBC) has the biggest loan exposure of $140 million followed by state-owned Land Bank of the Philippines with an estimated $80 million.

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With more than $140 billion in debt and a junk-level credit rating, SoftBank Group Corp. might not look like an obvious candidate for more borrowing. Yet bankers say they are still eager to lend to the world’s largest technology investor, The Wall Street Journal reported. One reason is the big fees a relationship with SoftBank can bring in—especially the hundreds of millions of dollars in investment-banking fees generated each year by Chief Executive Masayoshi Son’s constant stream of deals.

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The chief executive and two other senior figures at Jet Airways have quit, the Indian company said on Tuesday, further eroding any hopes of a rescue of the debt-laden carrier that grounded operations last month, Reuters reported. Jet, once the biggest private carrier in the country, owes vast sums to its lessors, employees, fuel suppliers and other parties. It stopped all flights from April 17 after its lenders refused to give it any more funds to keep the carrier flying.

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NCLAT to Hear Essar Case Daily

The National Company Law Appellate Tribunal (NCLAT) has decided to hear the Essar Steel insolvency case dispute on a daily basis for an early resolution, The Hindu Business Line reported. ArcelorMittal, the winning bidder, has been fighting to takeover the steel company for over one-and-half year but there is no sign of a resolution yet. Arguing on behalf of Essar Steel’s financial creditor Standard Chartered Bank (SCB) on Monday, senior advocate Kapil Sibal said ArcelorMittal’s bid is only ₹39,500 crore rather than ₹42,000 crore as claimed by the company in the Supreme Court.

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Small borrowers with annual income up to ₹60,000 are likely to get automatic relief for any unsecured loans they are unable to repay, according to a new scheme for personal insolvency resolution that the government has prepared, Mint reported. The new scheme that will replace colonial era laws dealing with personal bankruptcy will also give breathing space to those who can repay loans. It will also protect some of their assets from dues recovery to help in their subsistence.

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Lenders of debt-ridden dairy firm Kwality on Monday decided to carry out voting on extending the May 15 deadline for submitting the resolution plan by interested bidders, including Haldiram and Kotak group firm, sources said, Mint reported. The lenders would also vote on seeking extension of insolvency proceedings by 90 days, they said. As many as five companies -- Haldiram, Kotak fund, LVP Foods, Aion and TPG Capital -- have expressed interest to bid for acquiring Kwality.

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South Korea is making a last-ditch attempt to win an exemption from US tariffs on cars and auto parts, as the country struggles to shield its export-driven economy from rising US protectionism and the fallout from Donald Trump’s trade war with China, the Financial Times reported. Yoo Myung-hee, South Korea’s trade minister, will visit Washington this week to press Seoul’s case with White House officials, members of Congress and US trade representatives, before the US president pushes through a new tariff against one of its key allies in Asia.

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Pakistan and IMF negotiators have reached an agreement on a $6bn loan for the country, the finance ministry said last night. Speaking on state-run Pakistan Television, Abdul Hafeez Shaikh, head of the finance ministry, said: “We have reached an agreement with the IMF staff for $6bn for the next three years. There will be adjustments involved but we will try to make certain that the extent of pain on low-income people is minimal.” The agreement is yet to be formally confirmed by the IMF’s management and its executive board, the Financial Times reported.

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