Headlines

Credit Suisse is preparing its first insurance claims on losses stemming from its $10bn of funds tied to collapsed finance group Greensill Capital, the Financial Times reported. The Swiss bank is trying to recoup billions of dollars owed to the group of supply-chain finance funds, which it was forced to close in March. While its recovery team is mainly focused on negotiating with debtors to recover money on behalf of more than 1,000 investors, it has also started the process of claiming on the related insurance, primarily from Japanese group Tokio Marine.

Around 200 applications for resolution of stressed assets have been filed under the insolvency law since the suspension of fresh proceedings ended on March 24, according to the Insolvency and Bankruptcy Board of India (IBBI), the Economic Times of India reported. Amid the coronavirus pandemic that had significantly impacted economic activities, certain provisions under the Insolvency and Bankruptcy Code (IBC) were suspended with effect from March 25, 2020. The suspension was in place for one year till March 24, 2021.

China’s crackdown on shadow banking is taking aim at more than $1 trillion of opaque investments sold by banks as low risk and high yield, even while funds were channeled to riskier borrowers such as developers, Bloomberg News reported. Banks and wealth mangers can no longer use money invested in so-called cash management products to buy long-term debt or bonds rated below AA+, according to long-awaited rules published on Friday.

Thai Airways International Pcl on Wednesday said that its acting chief executive officer, Chansin Treenuchagron, had resigned, Reuters reported. The airline's chief of human resources, Suvadhana Sibunruang, will take over as acting CEO, the company said in a statement. The announcement comes after a court approved the airline's restructuring plan. Chansin will remain as an administrator of the airline's business rehabilitation plan. Read more.

The U.S. Transportation Department said Tuesday it is seeking to fine Air Canada about $25.5 million for what it termed extreme delays in giving refunds to thousands of passengers whose flights across the U.S.-Canada border were canceled or rescheduled, the Associated Press reported. The department said that since March 2020 it has received complaints from more than 6,000 consumers who claimed Air Canada canceled or changed their flights and then took five to 13 months to provide a refund. Air Canada vowed to challenge the proposed fine.

Sweden’s government refused to back down after the left-wing opposition threatened to try to unseat Prime Minister Stefan Lofven over plans to deregulate the country’s rental housing market, Bloomberg News reported. Minister for Justice Morgan Johansson said the Cabinet will continue to prepare a formal bill, after the Left Party demanded it to drop the intention to allow landlords charge market rates for new rental apartments. The government expects to come back with a final proposal late this fall, Johansson said.

Emirates got an additional $1.1 billion in state support from Dubai after a collapse in long-haul travel due to the coronavirus pandemic triggered the airline's first annual loss in more than three decades, Reuters reported. Governments have pumped billions of dollars into airlines to keep them afloat during the pandemic and state-owned Emirates has now received $3.1 billion in equity injections from Dubai, including $2 billion disclosed last year.

Thai Airways International Pcl won court approval on Tuesday to restructure a debt load of $12.9 billion as the airline, which is already in bankruptcy protection, seeks to turn around its fortunes, Reuters reported. The court ruling removes the last hurdle to implementation of the plan, seen as critical for the carrier which last year posted a record loss of about $4.5 billion. In its order, the Central Bankruptcy Court in Bangkok said it approved the rehabilitation plan. It did not make any changes to the plan that had been approved by creditors.

Sanofi’s defined benefit (DB) pension scheme has additional insolvency protection of up to £730m for 20 years, following intervention from The Pensions Regulator (TPR), Pensions Age reported. The regulator worked with the global healthcare company to secure the increased financial support for the scheme, which also includes deficit repair contributions and an upfront payment of £37m, after warning that it would take enforcement action if necessary.

The European Union is testing investors’ appetite to fund nearly $1 trillion of debt over five years as it seeks to finance its recovery from the coronavirus pandemic, Bloomberg News reported. The bloc opened books on debut 10-year bonds as part of its NextGenerationEU (NGEU) program, which will finance grants and loans to member states.