A panel of bankers will rule on Thursday whether some investors in Thomas Cook’s credit are due a payout under bankruptcy rules, a decision that could smooth a rescue of the world’s oldest travel company, Reuters reported. The British firm, which employs 21,000 people across 16 countries, agreed the key terms of a rescue deal with Chinese shareholder Fosun (1992.HK) last month. But it must be approved by creditors next week. Holders of Credit Default Swaps (CDS), instruments used to insure exposure to credit, are digging in for a payout for their bets against the company.
Chapter 15 Headlines
Thomas Cook Group Plc has filed for Chapter 15 court protection in the U.S. as part of a broader debt restructuring for the U.K. travel agent, Bloomberg News reported. The company’s Chapter 15 petition was filed in the Southern District of New York, court papers dated Sept. 16 show. Law firm Latham & Watkins is representing the company, according to the documents. Chapter 15 of U.S. bankruptcy law shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country. The filing may also trigger the payout of default insurance on Thomas Cook debt.
Permanent TSB (PTSB) must shift a further €550 million in problem loans before it will meet its own targets – and get a hearing from regulators on lifting a ban on paying dividends, The Irish Times reported. The bank disclosed in its interim results, published on Thursday, that it has €1.7 billion of NPLs on its balance sheet, equivalent to 10 per cent of its loan book, having reduced the ratio from an eye-watering 28 per cent at the start of 2018. Last year, it sold €3.4 billion in non-performing mortgages in the face of considerable political opposition.
Billionaire Beny Steinmetz’s mining company sought bankruptcy protection in the U.S., two months after losing a $2 billion arbitration award to Brazilian mining giant Vale SA, Bloomberg News reported. The court filing by BSG Resources Ltd. on Monday could stymie Vale’s effort to enforce the award, which stems from an ill-fated joint venture with BSGR at the Simandou iron ore mine in Guinea. The government stripped their venture of its rights to Simandou following a probe that found licenses were obtained through corruption. BSGR lists its only U.S.