Headlines

Cirque du Soleil, its spotlight dimmed by the coronavirus pandemic, will receive $200 million in aid from Canada’s Quebec province, an official said on Tuesday, as part of broader efforts to revive and keep the hard-hit international entertainment group based in Montreal, Reuters reported. Quebec Economy Minister Pierre Fitzgibbon said the province has an agreement in principle that would give it the option to buy a majority stake in Cirque if shareholders TPG and Chinese conglomerate Fosun International Ltd (0656.HK) decide to pull out.

In mid-March, the world as Deutsche Lufthansa AG had known it for close to seven decades unraveled in the space of a week, Bloomberg News reported. Italy’s government put the entire country into quarantine on March 9 as deaths from the coronavirus began spiraling out of control. Two days later, the U.S. announced sweeping travel restrictions from 26 European countries, cutting off the lucrative trans-Atlantic artery. Then on March 17, the German government issued an unprecedented global travel warning.

Argentina’s ninth default on its external debt is now official after some of its bonds were cut to default status by two rating companies, Bloomberg News reported. Fitch Ratings reduced the South American nation to restricted default Tuesday, while S&P Global downgraded four of its dollar-denominated bonds to default from CC following a missed $500 million payment last week.

The euro-area economy is still facing severe threats even after policy makers took unprecedented measures to tackle the coronavirus pandemic, according to the European Central Bank, Bloomberg News reported. The deep recession has exposed new risks to the financial system and exacerbated pre-existing ones, the ECB said in its Financial Stability Review.

South African Airways (SAA) aims to resume domestic flights between Johannesburg and Cape Town from mid-June, the cash-strapped airline said on Tuesday, as coronavirus lockdown restrictions ease, Reuters reported. SAA, which is under a form of bankruptcy protection, suspended all commercial passenger flights in late March, when the government imposed one of the strictest lockdowns on the African continent.

New Zealand’s central bank warned that the coronavirus pandemic presents a significant challenge to the country’s financial institutions, which could be stressed by failing businesses and loan defaults, Bloomberg News reported. While the financial system entered the crisis in good shape, “it’s capacity to absorb shocks is not unlimited,” the Reserve Bank said in its semi-annual Financial Stability Report published Wednesday in Wellington.

The worst crisis in more than two decades among Indonesia’s smaller companies will boost loan losses and curtail profit at the nation’s largest lender, according to PT Bank Rakyat Indonesia Finance Director Haru Koesmahargyo, Bloomberg News reported. Bank Rakyat expects more than 10 million customers in its core segment -- micro, small and medium enterprises -- to be affected by the Covid-19 outbreak, Koesmahargyo said.

LATAM Airlines Group, the continent’s largest carrier, filed for U.S. bankruptcy protection on Tuesday, becoming the world’s largest carrier so far to seek an emergency reorganization due to the coronavirus pandemic, Reuters reported. The filing highlights the financial weakness of Latin America’s carriers, following a similar bankruptcy earlier this month by the region’s No. 2 airline, Avianca Holdings. But unlike Avianca, which experienced management turmoil and losses, Chile’s LATAM posted profits for the last four consecutive years totaling more than $700 million.

The Edinburgh Festival Fringe has warned it is facing insolvency due to the coronavirus pandemic, Edinburgh Live reported. The stark warning was made by the Edinburgh Festival Fringe Society, which organises the August event and has so far made four staff members redundant, with 70% furloughed and all workers having their pay cut by a fifth. In a submission to Westminster's Culture, Media and Sport committee, the charity, which effectively facilitates the open-access festival, says it faces a shortfall of £1.5 million.

Chile’s Latam Airlines Group SA has hired U.S. investment boutique PJT Partners to explore debt restructuring options that may include bankruptcy protection filings in three countries, Brazilian newspaper O Estado de S. Paulo reported late on Monday, Reuters reported. According to the paper, which cites sources with knowledge of the matter, Latam is considering filing for Chapter 11 in the U.S. and equivalent bankruptcy protection in Chile and Brazil, where are the company’s largest operations.