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President Recep Tayyip Erdogan is set to announce a new relief package for Turkey’s small businesses hit by the global pandemic, in a bid to help a key part of his electorate affected by coronavirus lockdowns, Bloomberg News reported. The government is finalizing the details of the 5 billion-lira ($598 million) loan package that will be announced following Monday’s cabinet meeting, according to a circular shared by authorities with lenders that’s seen by Bloomberg. The ministry of trade and Erdogan’s office both declined to comment.
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China’s economic activity grew at a slower pace in April as retail sales missed expectations, complicating the picture of a steady and balanced recovery in the world’s second-largest economy, the Wall Street Journal reported. Official data released Monday showed industrial output and fixed-asset investment beating market expectations and continuing to lead the recovery, but domestic consumer spending, which has lagged behind for months, remaining soft.
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Developer Richard Dineen has lost an appeal related to the order of the Irish High Court to adjudicate him bankrupt 18 months ago, the Irish Examiner reported. The Limerick developer had taken issue in the Court of Appeal with the figures used and calculated which grounded the petition resulting in an order for bankruptcy made in November 2019. Mr. Dineen had debts running to millions of euros at the time. Dismissing the appeal, Ms. Justice Baker along with Mr Justice Seamus Noonan and Ms.
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As LATAM Airlines Group reshuffles its operations and cleans up its financial situation as a part of its chapter 11 bankruptcy process, the group’s branches continue their streamlining and cost-cutting measures. The latest agreement — and one of the most relevant with respect to labour relations so far — was announced this week at LATAM Brasil. In an internal announcement, the company announced it would be outsourcing its ground agent jobs at almost all Brazilian airports.
Tullow Oil has raised $1.8bn via a bond offering to repay existing debt, ending a tense refinancing process the company had warned posed a “significant risk” of insolvency proceedings had it ended in failure, the Financial Times reported. The Africa-focused group, which has endured a difficult few years since it slashed its production outlook and parted ways with its former chief executive at the end of 2019, will use the proceeds to repay loans including bonds due this year as well as a lending facility linked to its oil reserves.
Brazilian bus company Itapemirim is launching a new airline in June, betting it can dodge the financial ruin that has grounded many rival carriers even though the land transport company just spent five years reorganizing under bankruptcy protection, Reuters reported. The carrier expects to have a fleet of 50 Airbus A320 planes by next year, all painted in Itapemirim’s signature bright yellow color, trying to beat the odds that have led 11 airlines to fail in Brazil so far this century.
The Reserve Bank of India (RBI) has shot down suggestions of a fresh suspension of the Insolvency & Bankruptcy Code (IBC) due to the second wave of Covid-19, while making it clear that banks can still restructure distressed but viable loans, ensuring that their balance sheets remain transparent, the Times of India reported. During initial discussions with the government, RBI has indicated a freeze will not help anyone in the long run as it will only show lower level of non-performing assets (NPAs), government sources told TOI.
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The Bank of England said on Friday that it had approved the “bail-in” of $595 million of loans that a British-based financial company made to the major Ukrainian lender PrivatBank before it was nationalised in 2016, Reuters reported. The bank’s nationalisation has been subject to lengthy litigation in Ukraine, and the International Monetary Fund last year made successful resolution of the legal issues a condition for financial aid.
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Philippine Airlines Inc. is in talks with plane lessors about reducing its fleet size and has told them it’s considering a chapter 11 filing in the U.S. to carry out a restructuring, Bloomberg News reported. The airline could return at least two Airbus SE A350s to lessors and four of the 10 Boeing Co. 777s in its fleet. Two A350s are in the process of being taken back by aircraft lessors and will be redeployed to other carriers. Prior to the negotiations, Philippine Airlines had six A350s. One lessor reached an agreement with the airline for it to keep a 777 and an A330.
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Go Airlines India Ltd., a no-frills carrier controlled by the Wadia Group, has sought approval from India’s markets regulator to raise as much as 36 billion rupees ($490 million) through an initial public offering, Bloomberg News reported. The company may consider a pre-IPO share issue of as much as 15 billion rupees, the airline said in its prospectus Friday, adding the IPO size will be cut if the pre-IPO placement happens. Go Airlines, the second biggest customer for Airbus SE, is planning to use the proceeds for repayment of debt, and dues to Indian Oil Corp.
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