Five major stressed power producers are preparing to oppose insolvency proceedings on the grounds that lenders filed petitions against them as per a central bank circular on debt resolution that was recently quashed by the apex court, people familiar with the plans said, The Economic Times reported. The five power projects of Lanco Amarkantak, Avantha Power, KSK Mahanadi, Rattan India Power (Amravati project) and Rattan India Nashik Power (formerly Indiabulls) account for over Rs 50,000 crore of unpaid dues.
With a crucial rescue plan aborted just weeks before its court-approved debt moratorium expires, Hyflux will have until Apr 25 to indicate if it needs more time to keep creditors at bay, CNA reported. However, the beleaguered water treatment firm will need to put together “something fairly tangible” by then to convince the court that it deserves an extended lifeline, said Justice Aedit Abdullah on Thursday (Apr 11) during a case management conference.
The government is soon expected to put in place a framework for insolvency resolution in case of personal guarantors to corporate debtors, and take up the issue of debt resolution in case of proprietorship and partnerships in the second phase, the Indian Express reported. As the Insolvency and Bankruptcy Board of India (IBBI) has already finalised the norms for individual bankruptcy resolution in case of personal guarantors, the government is expected to notify these within a month, sources familiar with the matter said.
Turkey’s biggest financial pledge in 18 years to bolster its banks may not be the silver bullet needed to pull the Middle East’s largest economy out of recession, Bloomberg News reported. The government plans to inject fresh capital into state-owned lenders and oversee the formation of two funds to take on some of the sector’s bad loans, Treasury and Finance Minister Berat Albayrak told reporters in Istanbul. To back the effort, the government will issue 28 billion liras ($4.9 billion) of bonds and place them at state banks.
Malaysia’s state palm oil plantation agency, the Federal Land Development Authority, is seeking 6 billion ringgit ($1.5 billion) from the government to help turn itself around, Bloomberg reported on Tuesday, Reuters reported. The request will be included in a white paper on the company scheduled to be introduced in parliament on Wednesday, Bloomberg reported, citing a source. If approved, the funds would be paid out in stages, the report said. Felda, as the state-owned company is known, has been struggling to pay down debt amid financial losses and corruption allegations.
Most of the world’s best-performing bank stocks are now in China, a nation that’s barely started to recover from last year’s liquidity crunch, Bloomberg News reported. After snapping up Ping An Bank Co., traders have turned their attention to its larger rival China Merchants Bank Co. The Hong Kong shares jumped 15 percent in nine days through Monday to an all-time high, the longest winning streak since 2007. It was also near a record in the onshore market Tuesday.
The global economy has slowed sharply since last summer and will rely on a “precarious” boost from a few emerging markets to reverse the loss of momentum, the IMF has predicted in its latest economic forecast, the Financial Times reported. Cutting its outlook for 2019 and 2020, the fund judged that advanced economies would “continue to slow gradually” into next year while emerging economies would play a more positive role, led by an end to crisis conditions in Turkey and Argentina and stabilisation in the all-important Chinese growth rate.
An entity set up to finance affiliates of Etihad Airways PJSC said Jet Airways India Ltd. has become the third carrier in the group to fall behind on interest payments, Bloomberg News reported. EA Partners I, a vehicle created in 2015 to allow Etihad to provide funds to airlines in which it owned stakes, said in a statement that the Indian carrier failed to make a payment on March 19 on account of "temporary liquidity constraints." Etihad set up two vehicles, EA Partners I and II, which sold $1.2 billion of bonds to raise funds for several airlines.
Turkey plans to shore up its battered banks by injecting capital into the biggest state-owned lenders for the second time in six months, according to people with direct knowledge of the matter, Bloomberg News reported. Seeking to sustain the flow of credit into the slumping economy, the treasury is considering buying bonds that will be issued mostly by TC Ziraat Bankasi AS and Turkiye Halk Bankasi AS, said the people, who asked not to be identified because the talks are internal. The blueprint is likely to be announced by Treasury and Finance Minister Berat Albayrak on Wednesday.
India’s top-performing local corporate bond fund is making another contrarian bet after its decision to buy notes during last year’s liquidity squeeze in the market paid off, Bloomberg News reported. DSP Investment Managers’ corporate bond fund is adding to holdings of debt from non-banks even as the shock defaults by Infrastructure Leasing & Financial Services Ltd., sometimes called India’s mini-Lehman moment, still hang over the sector’s debt. Those notes offer higher yield premiums than publicly owned companies.