Creditors of Greensill Capital Pty, the Australian parent of the collapsed British supply chain financier, voted on Thursday to liquidate the company, its administrator said, triggering deeper investigations into the conduct of its directors, Reuters reported. Grant Thornton (GT), the liquidator appointed for the Australian parent and its operating companies in Britain, said the majority of 26 creditors owed A$4.6 billion ($3.6 billion) by the collapsed financier voted for liquidation.
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In the March quarter 2021, personal insolvency fell 52.9% compared to the March quarter 2020, according to the latest personal insolvency statistics released by Australian Financial Security Authority (AFSA). There were 2,545 personal insolvencies in the March quarter 2021, a 52.9% fall compared to the March quarter 2020. There were falls in all states and territories. The number of personal insolvencies rose 5.8% compared to the December quarter 2020. By type of personal insolvency:
Bain Capital Credit, Oaktree Capital Group and White Oak Global Advisors are in talks to refinance some of Sanjeev Gupta’s borrowing from Greensill Capital at some of his Australian businesses, the Australian Financial Review reported. The funds have been carrying out due diligence to provide at least $430 million to GFG Alliance’s Australian Mining and Primary Steel units, including the Whyalla steel mill in the south of the country. One of the funds could conclude a deal with GFG as soon as early May, said the people, who asked not to be named because the talks are private.
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Australia has canceled agreements between China’s Belt and Road Initiative and the Victoria state government, in a move that could further worsen ties between the two nations, Bloomberg News reported. The Australian federal government scrapped both the memorandum of understanding and framework agreement signed between Victoria and China’s National Development and Reform Commission, Foreign Minister Marise Payne said in an emailed statement Wednesday. Two other deals between Victoria and the governments of Iran and Syria have also been scrapped.
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Qantas Airways Ltd. said that it expected domestic travel would top pre-pandemic levels next financial year as it raised its forecast for the current quarter on the back of strong demand in a country nearly free of COVID-19, Reuters reported. A return to 90% of pre-pandemic domestic capacity in the fourth quarter ending June 30 will allow it to report positive cashflow and begin repairing a balance sheet burdened by extra debt that helped get it through the pandemic, Chief Executive Alan Joyce said on Thursday.
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Australia’s economic recovery is intensifying as a National Australia Bank Ltd. report showed business conditions -- measuring hiring, sales and profits -- climbed to a record high even as the government was withdrawing its JobKeeper wage subsidy, Bloomberg News reported. An index of conditions jumped to 25 points in March from 17 a month earlier, NAB said in a statement Tuesday. The employment index climbed to 16 points from 9, pointing to ongoing strength in hiring, despite the survey being conducted from March 19-31 that includes the end of JobKeeper.
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A German lawyer handling the insolvency of Greensill Capital’s bank unit won a request to freeze the collapsed lender’s Australian assets, as part of an effort to cooperate with counterparts to recover as much as possible for the supply-chain finance firm’s creditors. Michael Frege had submitted an application to the Federal Court of Australia on March 31 asking for the court to hand over insolvency proceedings on the business to the German unit, where the entity has its “main interest,” according to court documents.
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Citibank N.A. has lodged an application with Australia’s Supreme Court of New South Wales to wind up two businesses run by Indian-British steel magnate Sanjeev Gupta as part of insolvency measures, Reuters reported. The London branch of Citibank lodged an application on Tuesday to wind up OneSteel Manufacturing, which includes the Whyalla steel plant in South Australia, and Tahmoor Coal, which includes a coal mine in New South Wales, according to the court. A directions hearing is listed for May 6.
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New Zealand will allow quarantine-free visits by Australians from April 19, Prime Minister Jacinda Ardern said on Tuesday, creating a "travel bubble" for the neighbouring nations which have closed borders to the rest of the world to eradicate COVID-19, Nikkei Asia reported. Though most Australian states have allowed quarantine-free visits from New Zealanders for months, New Zealand has continued mandatory quarantine from its neighbour, citing concern about small COVID-19 outbreaks there.
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The lawyer handling the insolvency of Greensill Capital’s bank in Germany has asked his counterparts in the U.K. and Australia to cooperate on sifting through what’s left of the supply chain finance firm, Bloomberg News reported. The administrators should work together on securing and managing the firm’s assets, according to a spokesman for Michael Frege, the lawyer handling the insolvency of Greensill Bank AG. Frege filed a lawsuit in London to safeguard the legal position of the bank, the spokesman said Wednesday. The case was filed earlier this week, according to court records.