Headlines

The Department of Telecommunications has moved the National Company Law Appellate Tribunal challenging UV Asset Reconstruction Co.’s Rs 6,630 crore resolution plan for the bankrupt cellular operator Aircel Ltd, arguing that the plan doesn’t address the “huge amount” of dues owed by the company against fees for telecom license and right to use spectrum, BloombergQuint reported. The appellate tribunal has directed the parties to file affidavits within five days and will next hear the matter on Sept. 11.

The wrecking power of Covid-19 was on clear display today as India announced a new world record for daily infections followed by a 23.9 per cent plunge in gross domestic product for the second quarter — the biggest contraction of any major Asian country, the Financial Times reported. India’s economy was already in a weak state before the virus hit, but the world’s biggest lockdown further hammered sectors such as manufacturing and construction and brought business activity to a near standstill.

Offshore drilling rig contractor Seadrill said on Monday it has proposed to creditors to turn over its stakes in oil services firms Archer and Seadrill Seabras to redeem its outstanding secured notes, Reuters reported. The company controlled by Norwegian-born billionaire John Fredriksen has been in talks with creditors since the end of last year over new debt restructuring. Seadrill said it was approached by a group of noteholders in May about a potential deal, and it responded on Aug.

Indonesia’s second-largest lender by assets says the nation’s companies are set to demand more loans, as they scoop up assets made cheaper by the pandemic, Bloomberg News reported. Some buyers are interested in assets that have become available after the virus and measures to stem it hurt Indonesia’s economy, Alexandra Askandar, corporate banking director at PT Bank Mandiri, said in an interview last week. Growth in loans to large businesses will likely accelerate in the second half from an expansion of 3.4% in the first six months, she said, declining to give an exact target.

Markets regulator Sebi on Monday asked credit rating agencies not to consider as default the restructuring of debt done solely due to COVID-19 related stress by lenders, The Economic Times reported. The move comes after the Reserve Bank of India (RBI) provided a loan restructuring window for corporates following bankers' and industry's demand. As per RBI, restructuring will be allowed as per the prudential framework issued on June 7, 2019.

Argentina has defused fears of a messy default after it gained backing from creditors, allowing it to exchange 99% of the bonds involved in a $65 billion restructuring, a deal that could set a precedent for future sovereign crises, Reuters reported. After months of winding and tense negotiations, framed by the coronavirus pandemic, bondholders tendered 93.55% of the eligible bonds in the exchange, Economy Minister Martin Guzman said at a news conference on Monday.

Swissport is getting new owners in a debt-for-equity swap that includes a 500 million euros ($595.20 million) long-term debt facility and a 300 million euros interim facility to help keep it afloat, the airport services company said on Monday, Reuters reported. Senior secured creditors including SVP Global, Apollo Global Management, TowerBrook Capital Partners, Ares Management, Barclays Bank PLC, Cross Ocean Partners and King Street Capital Management will take ownership.

Dubai has hired banks to advise it on its comeback to the international debt markets as the Middle East trade and tourism hub seeks to bolster finances hit by the coronavirus pandemic, Reuters reported. It is planning to issue U.S. dollar-denominated 10-year Islamic bonds, or sukuk, and 30-year conventional bonds, a document issued by one of the banks leading the deal showed. Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered will arrange investor calls, which will begin on Monday, ahead of the potential debt offering.

Seven Thai airlines are seeking a combined 24 billion baht ($770 million) in low interest loans and other support measures, the government said on Friday, joining carriers across the world in requesting state help to weather the coronavirus crisis, Reuters reported. Airline executives made the request to Prime Minister Prayuth Chan-ocha, aiming to maintain liquidity and avoid layoffs, the government said in a statement. “The government will consider the requests from the airlines and find ways to support operations, including unlocking air travel, and boost domestic tourism,” Prayuth said.

After four months of tense debt talks, multiple pushed deadlines and amendments since an initial low-ball offer in April, bondholders will decide on Friday whether to accept the country’s $65 billion restructuring proposal, Reuters reported. The main three creditor committees holding a large chunk of the bonds backed a deal earlier this month, bolstering confidence that the government will get the required level of support to allow a full deal to go ahead without holdouts.