Eastar Jet Co. on Tuesday began the process to find a new owner after Jeju Air Co. scrapped its plan to acquire the smaller budget carrier amid the new coronavirus' impact on the airline industry, YonhapNews reported. Eastar Jet has selected Deloitte Anjin LLC, Yulchon LLC and Heungkuk Securities Co. as lead managers to handle the deal to sell its controlling 51.17 percent stake, Eastar Jet Senior Vice President Kim You-sang said over the phone.
New regulations issued by China’s financial authorities may help to smooth the resolution of bond defaults and exchanges and to improve transparency surrounding the bond-exchange process, but the effectiveness of the changes will ultimately depend on how they are implemented in practice, says Fitch Ratings. The Shanghai and Shenzhen stock exchanges, under the supervision of the China Securities Regulatory Commission (CSRC), released formal rules on corporate bond exchanges on 30 July, Fitch Ratings reported.
The National Company Law Appellate Tribunal (NCLAT) has ruled that home-buyers cannot drag realty companies through the insolvency process for recovering monies awarded to them by a real estate regulator, The Hindu Business Line reported. The NCLAT ruled that a home-buyer cannot be treated as a financial creditor when the real estate company is unable to honour a decree awarded by the State-level Real Estate Regulatory Authority (RERA). Home-buyers need to take recourse to the civil law to recover the money.
AZB & Partners and De Brauw Blackstone Westbroek advised the resolution professional managing the insolvency of Jet Airways when the airline sold two floors of a Mumbai building to a company controlled by Brookfield Asset Management, the Indian Business Law Journal reported. Khaitan & Co advised Brookfield. The National Company Law Tribunal (NCLT) had given the go-ahead for the ₹4.9 billion (US$65 million) sale after both HDFC, to which Jet Airways had mortgaged the premises, and the committee of creditors of Jet Airways had approved it.
Thailand’s bankruptcy court said on Monday it had scheduled two more days of hearings to consider Thai Airways International Pcl’s request for restructuring, Reuters reported. The Central Bankruptcy Court said in a statement 16 creditors opposed the airline’s restructuring proposals, of which three were institutional creditors and the rest, individual creditors. The court scheduled Aug. 20 and Aug. 25 for additional hearings for those opposing the plan. Thai Airways acting president, however, remained confident after the first hearing on Monday.
The lira weakened for a fourth day in a sign to traders that the central bank’s efforts to stem its declines by raising the average cost of borrowing are falling short, Bloomberg News reported. The Turkish currency slid almost 0.4% versus the dollar, bringing its depreciation this month to almost 6%, the most in emerging markets. The central bank has sought to anchor the currency by raising the cost of funding ahead of Thursday’s policy meeting. While the benchmark one-week repo rate is at 8.25%, policy makers are offering funding though more expensive channels.
Japan’s economy shrank by 7.8 percent in the second quarter of the year, posting its worst performance on record as the coronavirus pandemic ground economic activity to a near halt in April and May, the International New York Times reported. The nosedive in output in the three-month period — an annualized drop of 27.8 percent — was the third straight quarter of contraction for Japan, the world’s third-largest economy after the United States and China.
Indian lenders rushed to be included in a case involving recovery of $19 billion of past dues from telecom companies after a Supreme Court judge questioned banks’ right to sell insolvent carriers’ airwaves, Bloomberg News reported. Lenders led by State Bank of India in a plea said any move to ban bankrupt companies such as Aircel Ltd. and Reliance Communications Ltd. from selling airwaves, leased from the government, will sink their insolvency resolution process and can cause serious prejudice to lenders, according to people aware of the filing.
Thai Airways International Pcl shares were suspended by the bourse on Friday after auditors declined to sign off on its financial statements for the six months to June 30, the International New York Times reported on a Reuters story. Auditor Deloitte Touche Tohmatsu Jaiyos Co Ltd said it could not reach a conclusion on the statements due to issues including a lack of liquidity and debt defaults which created "material uncertainty" and may affect the value of assets and liabilities.
China’s multi-year clampdown on its peer-to-peer lending industry has whittled the number to just 29 platforms, down from about 6,000 at its peak, according to the nation’s top banking regulator, Bloomberg News reported. The crackdown, which is likely to be completed at the end of this year, has left investors with more than 800 billion yuan ($115 billion) in unpaid debt from failed platforms, Guo Shuqing, chairman of the China Banking Regulatory Commission, said on China Central Television on Friday. Regulators, together with the police, will try their best to recoup the money, he said.