Headlines

The European Union plans to revamp its steel-import restrictions to guard against major market distortions as the bloc’s economy recovers from the effects of the pandemic, Bloomberg News reported. The proposed changes apply to EU import curbs introduced two years ago to prevent a controversial 25% U.S. levy on foreign steel from diverting global shipments to the European market and flooding it.

Africa may require at least $100 billion to stabilize countries reeling from the coronavirus outbreak and associated lockdowns, which are pushing economies into recession and heightening the risk of defaults, Bloomberg News reported. The AfDB is expected to play a major role, and the spat could jeopardize a pledge by the lender's 80 shareholders to more than double its capital base to $208 billion. The Abidjan-based bank's debt is rated triple A, a status that may also be at stake.

PizzaExpress is planning to launch a pasta brand to bring in extra revenue amid negotiations over its large debt pile and the possible closure of some of its restaurants, the Financial Times reported. The chain’s owners, Chinese private equity firm Hony Capital, are considering options for its future, including a “company voluntary arrangement”, an administration process that would allow the business to reduce its costs by closing some of its 627 restaurants.

Angola is in talks with key lenders to reschedule debt payments after a prolonged recession triggered by a drop in crude prices raised concerns about the sustainability of the African nation’s finances, Bloomberg News reported. The discussions have resumed after an interruption of about three months due to the Covid-19 pandemic, President Joao Lourenco said in a speech broadcast on state-controlled RNA Radio on Friday. He didn’t give details about the loans or specify if the talks included Eurobonds.

Kenya’s banks are likely to issue fewer loans this year and boost investments in government debt to safeguard earnings under threat from the fallout of the coronavirus, Bloomberg News reported. That’s the assessment of some analysts after the East African nation’s lenders released first-quarter results that showed lower profit, a surge in loan-loss provisions and a wave of debt restructurings.

Argentina and its key bondholders are getting closer to a $65 billion debt restructuring deal after the country defaulted on its overseas debt for the ninth time in its history, Bloomberg News reported. While still at odds over several key issues, the latest changes in the proposals by the government and two groups of creditors published Thursday signal the difference between both sides is narrowing. Argentina is now weighing extending the deadline for its offer beyond June 2, giving the parties more time to reach a deal, according to people with direct knowledge of the matter.

Administrators at South African Airways have asked for more time to publish a business rescue plan for the struggling state-owned airline so they can discuss new government restructuring proposals, a letter to creditors showed, Reuters reported. The administrators, who were meant to publish their plan on Friday, have asked for a new deadline of June 8 so they can consult with creditors, employees and the government. If the delay in publication is approved, they will start those talks on June 1, they said in the letter, dated May 28.

LATAM Airlines, the largest Latin American air transport group, had losses of $2.12 billion in the first quarter after an accounting adjustment of its assets amid the coronavirus pandemic, the company said in a statement late on Friday, Reuters reported. LATAM said its operational quarterly result was 17% higher year-on-year despite the fact that in March it reduced its offer of flights due to the first effects of the health crisis.

A new insolvency law fast tracked by the UK government as a response to the impact of the Covid-19 pandemic on businesses has prompted confusion and disappointment among restructuring advisers, Reuters reported. The main gripe among advisers centres around the new rules governing declaring a debt moratorium - essentially a repayment holiday - which they say are unworkable for larger companies holding more complex debt structures that include high-yield bonds and bank debt. “The moratorium is an opportunity missed.

Emerging market investors are no strangers to sovereign debt crises, but few have been as perilous as the one facing Lebanon given a toxic combination of financial and political weaknesses and no obvious economic platform on which to build a recovery, Reuters reported. Since defaulting for the first time on its foreign currency debt in March, Lebanon has formed a rescue plan and started negotiations with the International Monetary Fund on $10 billion of aid, both moves that would normally be read as positive for a country mired in debt.