Headlines

Two decades after South Korea’s swift economic response helped avert a devastating recession, the country is taking decisive steps to battle another slowdown, this one with a human cost as well, Bloomberg News reported in a commentary. The coronavirus, which has claimed more than 30 lives in South Korea and infected close to 6,000 people, lands new punches on an economy that was just beginning to find its feet after being caught in the U.S.-China trade conflict and a separate spat with Japan. Korea has more Covid-19 cases than anywhere outside China.

Global rating agency Standard and Poor’s has downgraded ratings for Jain Irrigation Systems Ltd to 'D' — default grade on missing to make interest payment on securities issued by its subsidiary, Business Standard reported. The company failed to make the interest payment on its guaranteed 2022 senior unsecured notes issued by its subsidiary Jain International Trading BV. The interest payment was due on February 1, 2020, and the 30-day grace period ended on March 3, 2020, S&P said in a statement.

Thousands of older people in long-term arrears on their mortgages could benefit from a debt resolution option if personal insolvency legislation is changed, a debtor advisory group has said, The Irish Times reported. Claire Kelly, chairwoman of the Association of Personal Insolvency Practitioners, which represents financial advisers who help people in debt, said the legislation needs to be “tweaked” to permit debt-for-equity swaps as a debt rescue solution after a High Court ruling this week.

India seized the beleaguered Yes Bank Ltd., capped withdrawals and imposed curbs on its operations, pledging to implement a rescue plan within 30 days as the lender’s woes threatened to destabilize the financial system, Bloomberg News reported. The Reserve Bank of India ordered the lender not to extend new loans or make payments for its liabilities, according to a statement. It also curbed withdrawals to 50,000 rupees ($682) for the next 30 days. The overthrow of Yes Bank’s board will help authorities implement a revival plan after numerous attempts by the lender to raise capital failed.

A fiery dispute between the board of Amigo Loans and its majority shareholder caused shares in the company to tumble to a record low on Thursday, as mutual recriminations threatened to derail its recently announced sale process, the Financial Times reported. James Benamor, who founded the high-cost lender in 2005, published a lengthy statement on Wednesday evening attacking regulators and accusing the rest of the Amigo board of multiple failings.

India's largest stainless steel manufacturer Jindal Stainless on Thursday said it has successfully exited from corporate debt restructuring after it paid more than Rs 800 crore to its lenders, Business Today reported. The firm had entered the CDR framework back in 2009.

Lebanon’s financial prosecutor has frozen the assets of almost half the crisis-hit country’s banks and their executives, piling further pressure on an already stressed financial sector, the Financial Times reported. The move against the banking sector, once seen as the pillar of Lebanon’s economy, comes as Beirut’s worst financial crisis for decades pushes the heavily indebted government towards its first default, and as popular fury towards the country’s ruling classes has focused on financial elites.

Capita’s shares collapsed on Thursday as investors became frustrated over the slow progress of the UK outsourcer’s restructuring plans, the Financial Times reported. Shares of the government contractor plunged 38 per cent to 77p after the company’s results showed the group is struggling to rebuild after a £700m rescue rights issue two years ago. The group announced a £62.6m pre-tax loss in 2019 compared with a profit of £272.6m in 2018. Net debt rose to £791m last year from £466m in 2018, more than the City had been expecting. Revenue slid to £3.6bn from £3.9bn.

The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted Rajahmundry Godavari Bridge, a subsidiary of Gammon Infrastructure, for Corporate Insolvency Resolution Process (CIRP), The Financial Express reported. Vishal Ghisulal Jain has been appointed as the resolution professional for the process. The company (RGBL) had entered into a concessions agreement with Andhra Pradesh Road Development Corporation (APRDC) for design, construction, finance, operations and maintenance of a 4.15-kilometre long four-lane bridge across the river Godavari.

Spain’s Supreme Court ruled on Wednesday that a 27% interest rate applied by online bank WiZink to one of its credit cards was unjustified, a decision that could force other Spanish lenders to cut some of their rates, Reuters reported. Shares in Caixabank, Bankinter and Sabadell fell more than 3% after the much-awaited ruling on the view that it effectively sets guidelines for the sector, even though it was specifically about a WiZink card.