The number of companies filing for bankruptcy in Finland continues to climb, with June witnessing a significant rise. A total of 252 bankruptcy filings were recorded, an increase of 13 compared to the same month last year. The service sector remains the hardest hit, accounting for approximately half of all filings, the Helsinki Times reported. This upward trend in bankruptcy filings has been ongoing for over two years.

Atos agreed to 1.675 billion euros ($1.83 billion) of financing as part of its restructuring plan, backed by a group of banks and bondholders, WSJ Pro Bankruptcy reported. The French IT firm said on Monday that interim financing of EUR800 million is secured, providing the liquidity necessary to fund the business until close of the financial restructuring plan, and that EUR450 million is already accessible by the company.

Euro zone households are applying for loans in growing numbers for the first time in two years as they grow more optimistic about the economy and interest rates fall, a European Central Bank survey showed on Tuesday, Reuters reported. The ECB began cutting interest rates in June but borrowing costs on financial markets started falling well before then, slowly making credit more attractive.

According to Statistics Netherlands (CBS), there was an increase of 37 companies that were declared bankrupt in June compared to a month earlier. This is a rise of 11 percent, the NL Times reported. According to CBS, the number of bankruptcies has been trending upward for the last two years. In the first six months of 2024, 40 percent more companies were declared bankrupt than in the same period a year earlier. The number of bankruptcies was also higher than in the same time period in the three years before the coronavirus, CBS reported.

The Alpenländische Kreditorenverband or Alpine Creditors' Association (AKV Europa) recently reported that 2,098 corporate insolvencies were opened in the first half of 2024, according to Vindobona.org. This represents an increase of 35.35% compared to the previous year and is the highest figure in 15 years. The AKV Europa said that the total liabilities of insolvent companies rose to 11.5 billion euros, which corresponds to a nine-fold increase compared to the same period last year.

One of Thames Water Ltd.’s key bondholders says a turnaround of the company envisioned by the government regulator has raised the likelihood of significant losses on its top-ranked securities, Bloomberg News reported. Luke Hickmore, investment director at Abrdn Investment Management Ltd., said it will be harder for the UK’s biggest water and sewage company to attract a new buyer without imposing losses on creditors. He believes the chances of a 15%-20% loss on the Class A bonds, which make up most of Thames Water’s debt, has gone up.

France’s state auditor said existing plans to repair “worrying” public finances lack credibility, sounding the alarm on the budget as political groups with expansive tax-and-spend policies jockey to form a new government after snap elections, Bloomberg News reported. President Emmanuel Macron’s outgoing administration pledged new spending cuts and revenue-boosting measures in April to get back on course with derailed plans to bring the budget deficit within 3% of economic output in 2027.

Loose bond documentation that flourished in the easy-money era has left investors vulnerable to asset stripping in recent debt deals. Now they’re fighting back, Bloomberg News reported. In the past week alone, two junk borrowers — Italian luxury supplier Rino Mastrotto and Vodafone Spain — have included stricter provisions in documentation for new bonds that restrict their ability to move assets out of reach of creditors. Clauses in both cases were focused on payments to so-called “unrestricted subsidiaries,” or entities that are not bound by the covenants of a debt agreement.

Russian President Vladimir Putin on Friday endorsed a bill that raises income taxes for the rich, part of efforts to help fill government coffers during the fighting in Ukraine, the Associated Press reported. Putin signed the bill into law two days after it was approved by both houses of parliament. The legislation, which envisages a progressive tax on personal income, is a major change from the flat-rate tax that was widely credited with improving revenue collections after it was introduced in 2001. The new law imposes a 13% tax for incomes of up to 2.4 million rubles ($27,500) a year.

UK energy services company Petrofac Ltd is running out of time to agree a debt deal with creditors, after months of talks have failed to produce a definitive agreement, Bloomberg News reported. The London-based firm missed a bond payment in May and has until July 25 to find a solution with creditors. Failure to do so could lead to an extension of the deadline, or force the company to immediately repay debt.