Headlines

The number of personal insolvencies recorded in England and Wales fell to a three-year low in 2020, the Evening Express reported. The Insolvency Service said that there were 111,424 individual insolvencies in 2020 – a total which was down by 9% on 2019. It marked the lowest annual figure since 98,897 personal insolvencies were recorded in 2017. The service said the fall in cases was driven by low volumes of bankruptcies and debt relief orders (DROs), which both decreased by 25% from the previous year.

SsangYong Motor Co. is prepping to file for a pre-packaged bankruptcy in South Korea, a speedier turnaround with the help of creditors, after winding up talks with a new potential investor, Maeil Business News Korea reported. SsangYong Motor CEO Yea Byung-tae said the company would be drawing up a prepackaged prospectus with HAAH Automotive Holdings, a candidate to buy stake from Indian parent Mahindra & Mahindra, according to industry sources on Thursday.

The European Central Bank is worried lenders in the eurozone aren’t properly evaluating the impact of the coronavirus pandemic on the financial health of borrowers, a problem that could result in a sudden cascade of defaults, the Wall Street Journal reported. Andrea Enria, head of banking supervision at the ECB, said banks are setting aside less money to cover for loan losses than peers in other countries, including the U.S. He added that the provisions are below levels reached during the financial crisis and short of the levels models suggest are required.

The largest shareholder in high-end mall owner Macerich Co. sold its entire holding for nearly $500 million when the stock soared after being touted on Reddit, Bloomberg News reported. Ontario Teachers’ Pension Plan sold 24.56 million shares on Wednesday at an average price of $20.25 a share, according to details in an amended 13D. The Canadian fund had owned 16.4% of the company, according to data complied by Bloomberg.

India’s economy is experiencing the worst contraction in decades as a result of coronavirus. But even if the threat of the virus fades, India’s medium-term growth prospects will be hindered by two policy reversals that predate the pandemic, the Financial Times reported. The first is a return to high tariffs — an external-facing move that will hit productivity. The second is the undermining of the 2016 bankruptcy code — an internal policy that will lead to inefficient allocation of credit.

Abu Dhabi Commercial Bank PJSC, one of the biggest lenders to NMC Health Plc, expects creditors’ approval for a restructuring plan for the collapsed hospital operator in the first half, Bloomberg News reported. The bank recorded 1.66 billion dirhams ($450 million) in provisions and interest in suspense toward NMC, Finablr Plc and associated companies last year, according to a statement. ADCB is “comfortable” with the provisioning levels, “given the positive developments in NMC’s recent financial performance and its ongoing restructuring process,” it said.

PT MNC Investama, an Indonesian media and property conglomerate that has a tie-up with former President Donald Trump’s company, said it received court approval for its debt plan after agreeing to lower its standalone borrowings by 65%, Bloomberg News reported. The approval by the High Court of Singapore paves the way for the company founded by tycoon Hary Tanoesoedibjo to issue new notes and shares for investors of its distressed bonds as it restructures its debt. Under the agreement, MNC Investama will cap its debt at $81 million, it said.

A pilots' union for Mexico's Grupo Aeromexico said it had accepted cuts amounting to $350 million on collective bargaining pacts in negotiations required for the airline to win a second tranche of bankruptcy financing, Reuters reported. The Association of Airmen Pilots (ASPA) voted to accept the reduction over the next four years to support the firm's financial restructuring, it said in a statement. Salary cuts for pilots ranged between 5% and 15%, while 79 pilots facing job cuts will be compensated under the agreement. The pilots also accepted fewer benefits, the union added.

Norwegian Air Shuttle ASA aims to exit Irish insolvency proceedings in April as the carrier jettisons its low-cost long haul business to focus on flying in the Nordics, Bloomberg News reported. The airline expects to raise as much as 5 billion kroner ($580 million) in capital, including up to 2.5 billion kroner from existing creditors through a hybrid debt instrument, according to an investor presentation Wednesday. Secured creditors that contribute to the equity raise will boost their holdings, the company said.