Headlines

Earlier this week Travelex’s shares were suspended after the company reported that it could not account for $100m (£81m) worth of undisclosed cheques, which is now being investgated by forensic accountants from Kroll, Accountancy Daily reported. Travelex has been attempting to reassure shareholders that it is a distinct subsidiary of Finablr and that the business is capable of operating as a stand-alone operation. PwC has been called into support and strengthen the finance team, with a particular focus on company liquidity.

In a bid to avoid frivolous applications under the IBC, one of the amendments to the insolvency law passed in Parliament on March 13 — the Insolvency and Bankruptcy Code (Amendment) Act, 2020 — put in place a minimum threshold for certain class of creditors to initiate insolvency proceedings, The Hindu Business Line reported.

Latin American airlines need prompt government aid or many of them could go out of business as the global coronavirus outbreak forces widespread flight cancellations, the chief of regional airline association ALTA said…However, Chile’s economy minister dismissed the idea of providing aid to the country’s flagship carrier, the largest in the continent, Reuters reported.

The National Company Law Tribunal (NCLT) on Wednesday allowed 90 days' extension for the corporate insolvency resolution process of Jet Airways, Firstpost reported. Jet Airways' resolution professional had last week filed an application in NCLT seeking 90 days' extension for the insolvency process of the grounded airline after it failed to attract any bidder. The NCLT bench, comprising Bhaskara Pantula Mohan and Rajesh Sharma, granted the extension as the Committee of Creditors (CoC) voted for the same, with 70 percent votes in favour.

Corporate undertakers are divided over pleas for the government to impose a "moratorium" on insolvent trading laws to keep businesses afloat and protect directors, with some insolvency practitioners warning it will hurt creditors and worsen the economic downturn, the Financial Review reported. Thousands of businesses, particularly small and medium enterprises (SMEs), face collapse in coming months because of a severe downturn in economic activity from the coronavirus disruption.

Argentina's government has struck a deal with domestic bondholders to swap around 200 billion pesos ($3.2 billion) in local currency debt in a major planned auction on Thursday, the country's Economy Minister Martin Guzman told Reuters. The scheduled swap, which is offering new instruments that expire between 2021 and 2024 for others maturing up to this year, is part of Argentina's drive to gain more time to make payments amid a widespread debt crisis, the International New York Times reported on a Reuters story.

The Bank of Thailand has demanded all financial institutions continue providing seven financial services, including deposits, money withdrawals, fund transfers, payments, cash management and settlement systems, in an effort to avoid potential coronavirus-related disruption, the Bangkok Post reported.

Sovereign bond restructurings are rarely smooth. Lebanon’s looks like it will be particularly rocky. The rules underpinning the nation’s looming debt overhaul may complicate efforts to gather enough support to change the terms of its bonds, Bloomberg News reported. At the same time, they could protect the country from some of the issues that left Argentina with lengthy court battles.

Hong Kong plans to introduce its version of U.S.-style “Chapter 11” bankruptcy provisions, a senior government official said, as the city’s worst economic predicament in decades threatens the viability of many companies, Reuters reported. Hong Kong does not have a formal corporate rescue framework, unlike most other major financial centers including fierce rival Singapore, after previous attempts to introduce one met with resistance from lawmakers and labor representatives who were worried plans did not offer enough protection for workers.

Oman’s ministry of finance has cut by 5% the budget allocated to government agencies for 2020, according to two sources and a government circular seen by Reuters. The decision was “in response to the financial challenges of the country,” a source at the ministry of finance said. Oman, a small Gulf oil producer rated ‘junk’ by all major rating agencies, is expected to see its deficit widen this year because of lower oil prices, Reuters reported.