Headlines

Boris Johnson’s chief Brexit negotiator accused the European Union of offering the U.K. only a “low-quality” trade deal as talks between the two sides descended into acrimony, Bloomberg News reported. In a dramatic intervention in the increasingly fractious negotiations over the future U.K.-EU relationship, David Frost complained the bloc is treating Britain as “unworthy” of a fair deal. He told his EU counterpart Michel Barnier to “think again.” The EU is demanding that the U.K.

Investors holding debt protection for Ecuador are in line to share compensation of about $60 million after the South American nation struck a deal with creditors to suspend coupon payments on its foreign debt, Bloomberg News reported. Firms holding the country’s credit-default swaps will receive about 65% of the amount covered by the instruments, according to the final results of an auction to settle the contracts on Tuesday. They get triggered when a borrower fails to pay its debt. Investors use the instruments to make negative bets on borrowers or as hedges for bond investments.

The World Bank urged private creditors and the world’s poorest nations to accelerate debt relief talks to help mobilize resources to fight the coronavirus pandemic, Bloomberg News reported. The Group of 20 largest economies agreed in April to suspend about $20 billion in debt servicing payments for 73 nations, more than half of them in Africa. The group has called on private creditors to do the same, but efforts have been delayed by legal hurdles and the risk of triggering default.

Argentina and creditors seeking to hash out a $65 billion bond restructuring are still far apart, just days away from a deadline that could plunge the country into default, Bloomberg News reported. Talks have continued since bondholders sent two counterproposals Friday, but there’s a gap of about 20 cents on the dollar between the government’s offer and the most aggressive creditors, according to people with direct knowledge of the matter.

Thailand’s cabinet approved a plan to restructure troubled Thai Airways International Pcl’s finances through a bankruptcy court, the Southeast Asian country’s prime minister said on Tuesday, Reuters reported. The plan for a court-led restructuring of the national carrier replaces a previous proposal of a government-backed rescue package that was heavily criticised in the country. The airline’s troubles are the latest example of how the coronavirus pandemic is crippling the global airline industry.

British luggage brand Antler has collapsed into administration, becoming the latest victim of the coronavirus crisis and its devastating impact on international travel, Reuters reported. Restructuring firm KPMG said on Tuesday it had been appointed administrator to the 106-year old brand, which operates 18 retail stores and one concession outlet. It also sells via its own website, through Amazon and wholesales to several large retail chains across the United Kingdom. It also has third party licence deals in Australia and Asia.

South Africa’s Comair has “reasonable prospects” of surviving, its administrators said on Tuesday after the airline sought a form of bankruptcy protection earlier this month, Reuters reported. Comair, which operates the local British Airways franchise and budget airline kulula.com, entered a “business rescue” after a lockdown aimed at curbing the spread of the coronavirus forced South African airlines to halt all commercial passenger flights. State flag carrier South African Airways is under the same bankruptcy protection process, while smaller state airline SA Express has been pl

Reitmans Canada Ltd on Tuesday obtained preliminary approval to seek bankruptcy protection under the Companies’ Creditors Arrangement Act, the latest retailer seeking to restructure its operations as the COVID-19 pandemic causes prolonged store closures, Reuters reported. Reitmans, which was founded in 1926 and retails fashion apparel through 576 stores across Canada and online, said it obtained the order from a Quebec court, leading to an operational, commercial and financial restructuring.

A recovery plan Lebanon is negotiating with the IMF expertly diagnoses the bankrupt state’s colossal losses but fails to commit to radical reform, the vital ingredient needed for a financial bailout of the country’s sinking economy, Reuters reported. The 53-page rescue plan, agreed by the government in April after months of haggling, is recognised by officials, economists and diplomats as the most searching examination of how Lebanon came to pile up debts several times the size of its economy.

Saudi Arabia’s Binladin Group has cut thousands of jobs and reduced staff salaries between 30% to 70% as the coronavirus outbreak hurts business of the kingdom’s biggest construction company, three sources familiar with the matter said, Reuters reported. The sources declined to be identified and the company did not respond to an email request for comment.