Headlines

Micro and small companies that require support to restructure their debts or wind up their businesses may soon be able to do so in a quicker and lower-cost manner, The Straits Times reoprted. A Simplified Insolvency Programme, which would provide such support to companies, is part of the Insolvency, Restructuring and Dissolution (Amendment) Bill that was introduced in Parliament on Monday (Oct 5). Singapore's current insolvency laws generally provide processes for companies with substantial assets, which may not be well-suited for distressed smaller companies.

The Government is set to proceed with reforms to the State’s personal insolvency regime to allow full access to court protections for those struggling debtors hit by the Covid-19 pandemic, The Irish Times reported. Currently someone applying for a personal insolvency arrangement can seek a court review if their mortgage lender refuses what they believe to be a reasonable insolvency proposal. However, in order to seek this review their mortgage arrears must date from before January 1st, 2015.

In a related story, Bloomberg News reported that AirAsia Group Bhd. will cease operations in Japan immediately as it tries to reduce cash burn amid the coronavirus outbreak that’s wiped out travel demand globally. AirAsia Japan has stopped operations as of Monday, Southeast Asia’s second-biggest budget carrier said in a statement. That will help the parent conserve cash. Further steps on the decision will be made in accordance with applicable laws and regulations including the Japan Civil Aeronautics Act, it said.

AirAsia Group Bhd. has stopped funding its Indian affiliate as the global travel slump leaves the Malaysian group struggling to support a sprawling empire of no-frills airlines, people familiar with the matter said, Bloomberg News reported. AirAsia India Ltd.’s future may now depend on Indian conglomerate Tata Group, its majority shareholder, which has provided emergency funding but has yet to commit to a full rescue, according to the people, who asked not to be named discussing a confidential matter. The airline isn’t at any immediate risk of folding, the people said.

The economic impact of the coronavirus resurgence in parts of Europe was laid bare on Monday by data which showed that fresh restrictions to control the spread of the virus had begun to choke off the recovery in the hardest hit country, Spain, the Financial Times reported. The decline in Spanish business sentiment data increases the chances that the eurozone economy will suffer a fresh downturn in the final months of this year, after rebounding from a historic recession caused by the onset of the pandemic in the first half of 2020, economists warned.

South Africa should act to preserve its insolvent national airline and seek to partner the carrier with Ethiopian Airlines Group, according to a study commissioned for ruling-party lawmakers, Bloomberg News reported. The assessment, seen by Bloomberg, was prepared by African Aviation Services Ltd. and dated Oct. 4. It was presented to a group of African National Congress lawmakers on Monday, according to an ANC official who asked not to be identified because the information isn’t public.

Singapore said on Monday it would extend relief programmes on mortgages and loans for individuals and small firms into next year because of the prolonged impact of the coronavirus pandemic, Reuters reported. The programmes, which include deferrals on mortgage payments and lower interest rates on loans, were introduced in April and were set to expire on Dec. 31. “Many individuals and businesses will continue to experience cashflow pressures into early 2021,” the Monetary Authority of Singapore and associations representing the city-state’s financial industry said in a statement.

Al Masah Capital Ltd., once among the Persian Gulf’s most active private equity companies, is being liquidated after being fined for allegedly misleading investors about fees, according to court filings in the Cayman Islands, Bloomberg News reported. The company’s collapse comes after Dubai’s financial watchdog in May penalized Al Masah, its founder Shailesh Dash, and two other executives on accusations that they also provided unauthorized services. The individuals were banned from working in the emirate’s financial center.

Germany has an extra reason for cheer on Saturday when it celebrates 30 years as a united country: the vanished East German regime is picking up the tab, The Irish Times reported. After a long search – and lengthy court battle – Switzerland’s highest court has ordered Julius Bär bank to pay out 150 million francs (€140 million) that a subsidiary helped hide for East Germany’s ruling party in the dying days of the socialist state. It’s the latest tranche of money clawed back by German authorities in a 30-year game of financial hide-and-seek.

Ethiopian Airlines Group is willing to provide planes, pilots and maintenance services to beleaguered rival South African Airways as part of a joint venture with that country’s government, Bloomberg News reported. Africa’s biggest airline is offering operational assistance, Ethiopian Chief Executive Officer Tewolde GebreMariam said in an interview in Addis Ababa. The carrier isn’t interested in helping with debt repayments or the cost of reducing the workforce, he said.