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The level of protection on employee pension benefits in the event of company insolvency would be reduced under the current draft of the U.K. Corporate Insolvency and Governance Bill, the Pensions and Lifetime Savings Association warned Monday, Pensions and Investments reported.
Some hedge funds that bet against a series of Greek and Italian companies are nursing losses after the European Union’s breakthrough plan for a 750 billion euro (£673 billion) recovery fund sent stock markets surging across southern Europe, Reuters reported. The funds, which include Citadel, Marshall Wace and AKO Capital, still hold short positions on companies such as Italy’s Banco BPM and Greece’s Piraeus Bank ahead of a June 18-19 EU summit to debate the recovery fund, aimed at helping European economies recover from the impact of the coronavirus pandemic.
Four-time German champions Kaiserslautern announced Monday they have filed for insolvency, but the third division club is expected to survive under new rules adopted by the German FA this season due to the coronavirus pandemic, News24.com reported. Kaiserslautern last won the Bundesliga title in 1997-98, but they were relegated from the top-flight in 2011-12 and dropped to the third tier last season after finishing bottom of the second division.
South Africa made it clear it wasn’t seeking any type of debt suspension to fight the coronavirus pandemic, with such measures likely hurting more than they would help due to the high domestic ownership of securities, BloombergQuint reported. “There are a few countries, such as Egypt and South Africa, that aren’t among those” seeking to be involved in debt standstill talks being coordinated by the Institute of International Finance, special envoy Trevor Manuel said in response to emailed questions.
The Insolvency and Bankruptcy Board of India (IBBI) has reconstituted its advisory committee on corporate insolvency resolution and liquidation, Telangana Today reported. The committee headed by Kotak Mahindra Bank CEO Uday Kotak, among other changes, has seen its expansion to 14 members instead of 12. “The committee shall advise and provide professional support, on the request of the board or its own volition, on any matter relating to the corporate insolvency resolution and liquidation dealt with by the board under the Insolvency and Bankruptcy Code, 2016,” said an IBBI order.
Travelex has pulled the sale of its business after its banks and bondholders rejected offers from a shortlist of potential buyers, leaving the currency exchange heading for a debt-for-equity restructuring as it scrambles to secure its future, the Financial Times reported. In a statement to investors on Monday, Travelex said that it had received a number of non-binding offers but these “were unacceptable” to lenders that provided its revolving credit facility and bondholders.
Passenger revenue at Latin America’s No. 2 airline, Avianca Holdings, has fallen 51% for the year as of early June compared with a year ago, the carrier said, in a look into the dire financial toll that the coronavirus has taken on the company, Reuters reported. Colombia-based Avianca was the first airline in the region to file for bankruptcy protection, after the coronavirus added financial strain to the already weak carrier. The revenue figure shows just how bad second-quarter results are likely to be for Latin America’s airlines.
German lead producer Weser-Metall GmbH has received interest from a “large number” of potential buyers and plans to start negotiations over a sale next month, the administrator for the insolvent firm said on Monday, Reuters reported. The Nordenham-based group, which is owned by French metals producer Recylex, is one of Europe’s main lead producers with output of about 105,000 tonnes annually. It filed for insolvency in May. It is currently working under self-administration, which means Recylex no longer has control of the company.
Indonesia is emerging as the lone bright spot in South-East Asia’s syndicated loan market with a pipeline of around US$6bn of offshore loans primed for launch in the coming months, Reuters reported. Instant noodles manufacturer Indofood Sukses Makmur, state-owned electricity utility Perusahaan Listrik Negara, gold and copper miner Freeport Indonesia and Bank Rakyat Indonesia are among a number of top-tier borrowers that are eyeing offshore borrowings.