Headlines

The Commercial Court is being asked to set aside the purported transfer of assets by businessman Alistair Tidey to his wife, Jane. The action has been brought by the deputy official assignee in bankruptcy arising out of purported transfers between the couple, one of which was described as a “sham” designed to put assets beyond the reach of Mr Tidey’s creditors, The Irish Times reported. The case was admitted to the fast-track Commercial Court list on Monday.

Mike Ashley’s Frasers Group said it is in negotiations to buy collapsed department store chain Debenhams from administrators in a rescue deal, which would further extend the retail billionaire’s reach in the British high street, Reuters reported. Frasers, formerly Sports Direct, said that it hoped a deal could be agreed and jobs at Debenhams saved after the COVID-19 pandemic sunk its business, but cautioned that the transaction was complicated and talks needed to take place quickly. A former shareholder in Debenhams, Ashley’s Frasers Group has long-been linked to its rescue.

China is bucking the global trend of greater economic stimulus amid the coronavirus, preferring instead to refocus on controlling its record debt burden, Bloomberg News reported. Policy makers are allowing for tighter liquidity in the financial system, a signal that Beijing wants to stabilize the level of debt in the economy. Though not as aggressive as previous deleveraging drives, the shift is pushing up market rates: government-bond yields trade near an 18-month high and interbank borrowing costs last month jumped to the highest since January.

Bankrupt carrier Jet Airways India Ltd., once the nation’s biggest airline by market value, is planning to restart operations as a full-service carrier by the summer of 2021, its new owners announced, Bloomberg News reported. A consortium led by Dubai-based entrepreneur Murari Lal Jalan and Kalrock Capital has set a revival plan for Jet Airways, which includes a dedicated freighter service and hubs in small Indian cities beyond Delhi, Mumbai, and Bengaluru.

Dominion Diamond Mines ULC said on Monday it reached a deal to sell its Ekati mine in Canada’s Northwest Territories to holders of its second lien notes, eight months after seeking bankruptcy protection amid a worldwide upheaval in the diamond industry, Reuters reported. Closely held Dominion, owned by the Washington Companies, filed for creditor protection in April, citing disruption to the global diamond trade caused by the novel coronavirus pandemic.

Ireland’s High Court on Monday granted creditor protection to Norwegian Air and its Irish subsidiaries, allowing the Oslo-based airline more time to restructure its massive debt, Reuters reported. Norwegian last month asked the court to begin a so-called examinership legal process as the carrier seeks to stave off collapse amid the coronavirus pandemic. The judge said he had agreed to protection of Oslo-based Norwegian Air as well as its Irish subsidiaries as the survival of each was dependent on the survival of the other.

German perfume retailer Douglas is preparing for a financial restructuring in 2021 as the COVID-19 pandemic hits its business and its debt nears maturity, two people familiar with the matter said, Reuters reported. Once the important Christmas season is over, the company will kick off talks with its creditors on options including a refinancing, a deal to amend and extend maturities or a debt-for-equity swap, the sources said. Douglas’ outstanding loans and bonds mature from February 2022. In total, the company’s net debt stood at 2.1 billion euros ($2.5 billion) as of June 2020.

Losses at Ted Baker, the upmarket UK fashion brand, have ballooned during the pandemic as it was forced into heavy discounting to offset the slump in sales, the Financial Times reported. The chain, which this year launched a turnround after a series of profit warnings, on Monday said pre-tax losses almost quadrupled, increasing more than £63m to £86m in the six months ending August. Sales over the period dropped 46 per cent year on year to £170m.

The Reserve Bank of India will undertake closer scrutiny and auditing of shadow lenders and large urban co-operative banks in a bid to improve supervision of the financial sector, Bloomberg News reported. The central bank will implement risk-based audits at shadow lenders and urban co-operative banks that focus on localized lending, Governor Shaktikanta Das said Friday. It will also harmonize guidelines relating to the appointment of auditors across all types of lenders.

Billionaire Mike Ashley and advisers to Debenhams are in talks about a takeover deal that could value the troubled U.K. retailer at more than 200 million pounds ($269 million)…Bloomberg News reported. If the deal goes through, Ashley’s Frasers Group would operate Debenhams’ 124 stores under 12-month licenses and could save up to 12,000 jobs, according to the newspaper. The valuation would depend on how much stock is left.