Asia

Texmaco Rail & Engineering, the flagship company of the Adventz Group, on Friday said the National Company Law Appellate Tribunal (NCLAT) has set aside an order passed by the Kolkata bench of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against erstwhile Bright Power Projects (lndia), now an unit of the company, The Financial Express reported.

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JSW Energy on Thursday said it has entered into a pact with Jaiprakash Power Ventures Ltd (JPVL) to restructure outstanding debt of Rs 751.77 crore owed to the company, Business Standard reported. Under the pact, an amount of Rs 351.77 crore will be converted into equity shares of JPVL with a face value of Rs 10 each and Rs 280 crore will be written off, JSW Energy said in a BSE filing.

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BAAC Rejigs to Focus On Communities

The state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) is set to revamp its branches' tasks to focus on community business development to boost the income of rural people and step up efforts to fight poverty, the Bangkok Post reported. Some 20% of the bank's 20,000 employees across the country will prioritise development of community business and small and medium-sized enterprise (SME) farming, said president Apirom Sukprasert.

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Chinese solar developer Panda Green’s race to meet a January 25 deadline to honor US$350 million of senior notes appears set to go down to the wire after the deadline for accepting a delayed payment was extended, pv magazine reported. The heavily-indebted, Hong Kong-listed solar project developer has proposed postponing settlement of the 8.25% interest-bearing notes for two years, with 8% interest paid over the extension period.

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Chinese companies are facing a reality check after years of ramping up debt. A de-leveraging campaign that President Xi Jinping began in 2016 to curb risks in financial markets has led to a crackdown on unregulated lending -- so-called shadow banking -- and tighter rules on asset management, Bloomberg News reported. That made it harder for some to raise funds to repay existing debt, leading to a record number of bond defaults in 2018 and 2019 as economic growth slowed. Contrary to what many investors thought, state-owned borrowers can’t count on a bailout.

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China's central bank said on Wednesday it was cutting the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.91 billion) in funds to shore up the slowing economy, the International New York Times reported on a Reuters story. The People's Bank of China (PBOC) said on its website it will cut banks' reserve requirement ratio (RRR) by 50 basis points, effective Jan. 6. The move would bring the level for big banks down to 12.5%.

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Singapore Exchange Ltd’s (SGX) regulatory unit is looking into imposing stricter regulations for listed retail bonds, including tightening the admission criteria, a move that follows a high profile default by water treatment company Hyflux, Reuters reported. In a statement on Thursday, Singapore Exchange Regulation (SGX RegCo) said it had set up a working group comprising representatives from law firms, banks and an investor group to review the retail bonds regulatory framework.

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China state-owned Qinghai Salt Lake Potash Co, the country's largest potash producer, failed to sell its assets in a fifth round of auctions on Wednesday aimed at raising funds and avoid being delisted from the Shenzhen Stock Exchange, the International New York Times reported on a Reuters story. The debt-laden company filed for bankruptcy with the Qinghai province court in September and halted trading in its shares in November. After posting net losses in 2017 and 2018, it has said it would be delisted if it reported a net loss for third successive year.

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It was a bumpy year for China’s markets, considering all the turbulence in relations with the U.S. Still, the final results really aren’t bad, Bloomberg News reported. The Shanghai Composite Index closed off its best year since 2014, boosted by a huge rally in the first few months, when the country’s major equity benchmarks entered a bull market. While the yuan was whipsawed at times by every twist and turn in the trade dispute, it’s only weakened about 1.3% the past 12 months. Sovereign bonds rose, but lagged bigger gains in government-bond markets elsewhere.

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Local governments in China are selling debt to raise cash earlier than ever to help shore up a slowing economy, Bloomberg News reported. Authorities in Sichuan and Henan provinces offered a combined 87.6 billion yuan ($12.6 billion) of so-called special bonds on Thursday in the earliest such issuance since nationwide sales began in 2015. Through 2018, sales began in March after the legislature formally approved the annual budget. But China has for a second year ordered local governments to move the timetable forward to speed up spending in areas like transport and energy infrastructure.

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