Headlines

Thyssenkrupp, the ailing German steel and materials group, plunged to a full-year loss of €5.5bn and said it would cut 5,000 more jobs, as the pandemic increased pressure on the former conglomerate to speed up the sale of underperforming businesses, the Financial Times reported. The Essen-based company, which still employs more than 100,000 people, also warned that it expected a further loss of at least €1bn this financial year, as its restructuring costs spiral.

The massive Grocon building empire has collapsed. The company, which is one of the biggest property developers in Australia, went into administration on Friday, saying the construction side of the business was insolvent, Yahoo! News reported. Its chief executive, Daniel Grollo, says he's furious and blamed government agency Infrastructure NSW for its handling of the Central Barangaroo project. "It is unfortunate that INSW is forcing our hand to place the construction business into administration," he said.

Asiana Airline's lead creditor bank called for backing for Korean Air's takeover of the debt-ridden Korean carrier on Thursday in the face of opposition to the plan from some shareholders, Reuters reported. Activist fund KCGI, which is the largest shareholder of Korean Air's parent company Hanjin Kal, said it had filed for a court injunction to prevent it issuing new shares to state-run Korea Development Bank (KDB).

In the middle of the largest cycling boom ever, one of Germany’s largest bicycle factories, Sachsenring Bike Manufaktur GmbH has applied for insolvency, Bike Europe reported. It seems the company cannot get over its troubled MIFA history. Last week Sachsenring Bike Manufaktur was already given an ultimatum by the district council of Mansfeld-Südharz to settle its rental debt for the land and factory. According to local media, District Administrator Angela Klein told the financially troubled bicycle manufacturer to start settling it’s rental debts of almost €100,000 as of December 1.

China widened its probe into last week’s shock bond default by a state-owned coal miner, saying on Thursday that three underwriting banks were suspected of misbehavior, Reuters reported. China’s interbank bond market regulator said in a statement it will launch investigations into Industrial Bank Co , China Everbright Bank and Zhongyuan Bank Co, which helped Yongcheng Coal & Electricity Holding Group issue bonds.

Zambia is seeking a compromise solution with bondholders and does not expect them to seize its mining assets even though it defaulted on part of its debt last week, Mines Minister Richard Musukwa said on Thursday, Reuters reported. He also said Zambia had no plans to sell its shares in mining companies to raise cash after the country, which is Africa’s no.2 copper producer, failed to pay the $42.5 million coupon on its Eurobond debt on Friday. “We don’t expect Zambia’s assets to be auctioned or taken away,” he told a news conference.

Cineworld is looking at a company voluntary arrangement, an insolvency process used to cut costs, as part of its talks with lenders to gain access to capital, the Financial Times reported, citing three sources close to the negotiations, Reuters reported. The world’s second-largest cinema chain is also considering slashing rents and permanently closing UK cinemas after lockdown restrictions and a lack of blockbuster films caused business to collapse, the FT reported. The company last month temporarily shut its U.S.

African countries face another debt crisis and will need more long-term help than the latest G20 debt plan offers them to ward off trouble ahead and keep much-needed investments coming in, according to policymakers, analysts and investors, Reuters reported. Around 40% of sub-Saharan African countries were in or at risk of debt distress even before this year, while Zambia became the continent’s first pandemic-era default last Friday.

In a move aimed at speeding up the liquidation process, the Insolvency and Bankruptcy Board of India amended its regulations to allow a corporate debtor’s asset that is “not readily realisable” to be transferred to a third party in consultation with stakeholders, The Economic Times reported. Creditors can also transfer debt due to them to a third party during the liquidation process to benefit creditors who may not be willing to wait for completion of the process.

The European Union’s 27 member states were urged to keep spending and support their economies through the latest wave of coronavirus restrictions without losing sight that the measures will weigh on future finances, Bloomberg News reported. The European Commission, the bloc’s executive arm, said fiscal support shouldn’t be withdrawn prematurely while warning Italy and France that their stimulus should be more targeted.