The fall in French corporate insolvencies during the coronavirus pandemic reflects extensive government support that has masked disparate performances among SMEs, as has the stability of corporates’ aggregate net debt, according to a Fitch Ratings report. Fitch expects arrears and defaults among SMEs to increase as support is withdrawn and this is reflected in the firm's French SME CLO performance expectations, which already incorporate pandemic-related stresses.
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France amassed its biggest-ever green bond orderbook in its second sale of new debt, extending a pole position in the market to finance environmental projects, Bloomberg News reported. The nation raised 7 billion euros ($8.3 billion) from the securities maturing in 2044. Investors bid over 34.5 billion euros, about 50% more than for its first such offering in 2017, reflecting the surge in appetite for assets aimed at mitigating climate change. That still lagged the records set in Italy’s recent debut deal.
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Greensill Capital’s talks to sell parts of its operating business to Athene Holding Ltd. have stalled, Bloomberg News reported. The deal talks between Athene, an annuity seller backed by Apollo Global Management Inc., and Greensill have been held up by a breakdown in discussions with key technology supplier Taulia Inc. Greensill Capital filed for administration in the U.K. on Monday, and Athene emerged as the only credible potential buyer after the supply-chain finance company’s swift collapse.
France finally unveiled its long-awaited plan for using state aid to prevent a wave of bankruptcies in the nation after the pandemic, hailing it as a model for the rest of Europe, Bloomberg News reported. The innovative program, which has now been approved by the European Union, will combine private and public money to provide as much as 20 billion euros ($24 billion) to strengthen the finances of small and medium-sized companies. The so-called participative loans adopt some of the advantages of equity and debt and are a central plank of President Emmanuel Macron’s stimulus.
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An agreement on the overhaul of cross-boarder corporate tax rules is within reach by a summer deadline now that Washington has dropped a proposal that could let U.S companies opt out of the future deal, French Finance Minister Bruno Le Maire said on Friday after a meeting with G20 counterparts, Reuters reported. U.S. Treasury Secretary Janet Yellen on Friday told the G20 meeting that Washington was dropping the former Trump administration’s demand for a “safe harbor” clause in talks to reform global taxation rules, which other countries said would make a deal impossible.
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Renewed COVID-19 lockdowns are pushing Air France-KLM deeper into the red, the airline group warned on Thursday, as it chalked up a 7.1 billion euro ($8.5 billion) net loss for 2020 and postponed a key mid-term profitability goal, Reuters reported. The airline group expects to fly 40% of its pre-crisis capacity in January-March, as tougher travel curbs in France and beyond widen losses from the 407 million euros in negative earnings before interest, taxes, depreciation and amortization (EBITDA) recorded in the fourth quarter.
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France is optimistic that the European Commission will sign off within days on an innovative plan for helping companies through the post-pandemic recovery, according to a finance ministry official, Bloomberg News reported. The French government has proposed a program to partially guarantee billions of euros of so-called participatory loans to improve corporate balance sheets and encourage borrowing for investment. The scheme is intended to benefit companies with long-term prospects.
L Catterton, the private equity firm backed by luxury French fashion house LVMH, is starting to pull ahead in the bidding for iconic German sandal maker Birkenstock, Bloomberg News reported. Birkenstock’s owners are currently focusing on negotiations with L Catterton as they prefer the investment firm’s track record buying and expanding family-backed consumer brands. They also see the potential to grow in Asia with L Catterton’s network in the region. L Catterton is competing with buyout firm CVC Capital Partners, which had approached Birkenstock earlier.
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France and the Netherlands appear to be readying for a clash with the European Commission over a fresh aid package to debt-laden carrier Air France-KLM, Bloomberg News reported. Dutch Finance Minister Wopke Hoekstra warned lawmakers on Wednesday he couldn’t rule out the possibility that the airline will be asked by European regulators to give up airport slots in exchange for approval for more state aid.
As France lived through its worst economic slump since World War II, business failures slid to the lowest in 33 years, Bloomberg News reported. The number of bankruptcies and firms seeking protection from creditors or entering receivership fell 38% in 2020, as government aid in the face of the coronavirus pandemic kept French companies afloat, according to figures gathered by enterprise-data firm Altares. That may foreshadow a wave of defaults in 2021 and 2022, said Thierry Millon, its head of research.