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National carrier Vietnam Airlines JSC is facing the risk of losing liquidity as early as July if the refinancing loan repayment deadline for its government-backed loan is not extended, the government said on Tuesday, Reuters reported. The airline, which received 4 trillion dong ($157 million) in low-cost loans from commercial banks that were refinanced at a zero interest rate by the central bank in 2021, is grappling with financial difficulties due to the impact of the pandemic, the government said in a statement.
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The long-running battle between Damen and the Romanian government over the operations of the Mangalia shipyard on the Black Sea took a new step as a court in Constanta initiated an insolvency procedure. An administrator has been appointed to look for a recovery plan for the shipyard, the Maritime Executive reported. The Netherlands’ Damen took operational control of the shipyard in 2018 with high expectations for the operation which remained 51 percent owned by the government. The yard had been in operation since 1976 known for 20 years as the 2 Mai Mangalia Shipyard.
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Jaiprakash Associates Ltd (JAL) has offered a revised one-time settlement, or OTS, which includes sale of its assets to Dalmia Cement and Rs 500-crore upfront deposit, to its lenders, the Economic Times of India reported. The debt-ridden construction and infrastructure company - which was admitted for insolvency resolution proceedings earlier this month - informed the National Company Law Appellate Tribunal (NCLAT) on Monday that it has revised its offer after the appellate tribunal asked it to consider a higher amount of deposit.
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Shimao Group has sweetened its offshore debt restructuring terms to garner support from creditors as the Chinese property developer scrambles to fend off a liquidation petition filed in a Hong Kong court. Shimao will on Wednesday face its first court hearing into the liquidation petition filed by state-owned lender China Construction Bank (Asia) over unpaid loans of HK$1.58 billion ($201.75 million). The sweetened offer from Shimao comes after its creditors strongly opposed a restructuring plan it first laid out in March after having defaulted on its $11.5 billion offshore debt in 2022.
Turkish food delivery startup Getir has agreed to a restructure that will split the business and bring in a $250 million capital injection led by Abu Dhabi wealth fund Mubadala Investment Co., Bloomberg News reported. Mubadala will lead the round and take a controlling stake in Getir’s domestic grocery and food business in Turkey, according to a statement from Getir on Monday. Cofounder and Chief Executive Officer Nazim Salur will be replaced by Getir’s Turkey head Batuhan Gultakan. The restructure follows a power struggle between Salur and Mubadala.
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Bank of Canada Governor Tiff Macklem said the country’s economy is headed for a soft landing, suggesting the central bank expects the unemployment rate to rise but that a large increase isn’t needed to achieve the inflation target, Bloomberg News reported. On Monday, Macklem said Canada’s unemployment rate — which hit 6.2% in May — was “just above” pre-pandemic levels, when the labor market was close to “maximum sustainable employment” — the highest level of jobs an economy can have without stoking inflation.
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Austrian prosecutors raided the home of Signa founder Rene Benko and his insolvent company’s headquarters as part of a fraud investigation, Bloomberg News reported. A lawyer for Benko confirmed the search of the residence on Tuesday and said his client was cooperating with authorities. “A search is currently being carried out on site in order to seize any documents relating to the allegations that have already been reported,” Norbert Wess said by email, referring to suspicions in the wake of Signa’s collapse. A spokesperson for the company declined to comment.
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Mexico’s inflation accelerated more than expected in early June to move further above the central bank’s target, likely cementing a second straight pause by Banco de Mexico at its Thursday rate meeting, Bloomberg News reported. Consumer prices rose 4.78% in the first two weeks of the month from a year earlier, above the 4.73% median estimate of analysts in a Bloomberg survey and up from the 4.59% increase in the prior two-week period.
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The price Japanese companies charge each other for services rose 2.5% in May from a year earlier, data showed on Tuesday, a sign prospects of steady wage increases are prompting more companies to pass on higher labour costs, Reuters reported. The year-on-year increase, however, slowed from the previous month's 2.7% gain, Bank of Japan (BOJ) data showed.
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Inflation unexpectedly surged in Canada, a setback for policymakers as they weigh further interest rate cuts next month, Bloomberg News reported. The consumer price index rose 2.9% in May from a year ago, up from 2.7% a month earlier, primarily due to higher prices for services, Statistics Canada reported Tuesday in Ottawa. On a monthly basis, the index climbed 0.6%, versus expectations for a 0.3% gain and up from 0.5% in April. On a seasonally adjusted basis, inflation rose 0.3%.
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