Headlines

South Africa’s government and trade unions are at loggerheads over unpaid salaries at South African Airways (SAA), which could lead to a messy court battle that may further complicate efforts to rescue the struggling airline, Reuters reported. State-owned SAA has not made a profit in almost a decade and was already under bankruptcy protection when the COVID-19 pandemic struck, exacerbating its woes. It halted all but repatriation and cargo flights in March before suspending all operations in September. Some employees have not been paid since March.

Only 10 British banks have signed up to an industry-wide plan for collecting unpaid emergency COVID-19 loans, with more than a dozen including HSBC considering going it alone, sources told Reuters. UK Finance is setting up a central body to co-ordinate collecting unpaid loans to help its members cope with a forecast surge in defaults and to protect individual lenders from allegations of unfair treatment of customers, Reuters reported.

Authentic Brands is plotting a double takeover of collapsed department store chain Debenhams and Topshop-owner Arcadia Group, The Daily Telegraph newspaper reported on Saturday, citing sources, Reuters reported. Authentic Brands, owner of the New York department store brand Barneys, is in talks this weekend with the administrators of both stricken companies, the newspaper reported. The companies did not respond to a request for comment on Saturday. Mike Ashley’s Frasers Group said on Monday it was in negotiations to buy Debenhams from administrators in a rescue deal.

Nordic Aviation Capital is the first large aircraft leasing company to be engaged in a corporate restructuring due to Covid-19, ICLG.com reported. A world-leading aircraft leasing company, Nordic Aviation serves 75 airlines in over 50 countries. On 20 August, the company released a press statement announcing the appointment of a new CEO, Patrick de Castelbajac.

Shares in Chinese retailer Suning.Com Co Ltd hit a more than 10-year low, amid lingering worries over its liquidity condition despite efforts by the company to shore up investor confidence, Reuters reported. The stock fell as much as 7.5% to 8.03 yuan in early morning trade, its lowest since November 2014, having dropped nearly 20% this year. The retreat came after shareholders of Suning Holdings Group, which owns a 3.98% stake in Suning.Com, pledged all of the group’s shares to Alibaba’s Taobao (China) Software Co., Ltd on Dec.

Portugal expects airline TAP will need around 2 billion euros ($2.4 billion) in extra funds with state guarantees to cover its financing needs until 2024 under a restructuring plan, Reuters reported. Flag carrier TAP asked for state aid in April after suspending almost all of its 2,500 weekly flights at the height of the coronavirus crisis, which hit airlines globally. The overhaul plan, which needs European Commission approval, was submitted on Thursday and envisages TAP would need to cut around 2,000 jobs by 2022 and introduce pay cuts of up to 25%.

Markets are showing mounting concern about Sri Lanka’s ability to manage debt loads, amid financial deterioration that sparked a downgrade deeper into junk Friday, Bloomberg News reported. Prices of the country’s dollar bonds show that while traders expect securities next year to be repaid, they’re increasingly uneasy about dwindling cash reserves for debt bills down the line. Notes due in 2021 are indicated at about 88 cents on the dollar, according to prices compiled by Bloomberg. That’s a level that shows some misgivings yet not alarm.

Insolvencies among UK high street companies have ricocheted to investors who made private loans to them, highlighting the limits of central bank interventions that staved off a string of defaults in the public debt market, the Financial Times reported.

Jesuits in Africa are calling on the Catholic Church to press for better repayment terms on debt across the region after Zambia defaulted on a $42.5 million Eurobond coupon in November, America Media reported. The default sparked fears of a regional economic crisis and ripple effects on already struggling Zambians because of increased taxation and curtailed spending on social services, even as health needs increase because of the coronavirus.

Mike Ashley’s Frasers Group Plc is getting closer to a deal to rescue part of the ailing Debenhams department-store chain, according to people familiar with the situation, Bloomberg News reported. The owner of the House of Fraser and Sports Direct chains is in negotiations to buy the 242-year-old Debenhams brand and website and to take on a substantial number of stores, said the people, who asked not to be identified because the information is private.