Headlines

Singapore’s most high-profile restructuring case has attracted a new offer from a Spanish company, adding more uncertainty to a drawn-out process that’s left many retail investors in the lurch, Bloomberg News reported. Water treatment firm Hyflux Ltd. said in an exchange filing that FCC Aqualia SA, which is also in the water management business, plans a potential transaction involving it or its assets, without giving details. Hyflux investors have already been evaluating two different takeover offers and one debt-purchase plan.

Divisions have again emerged between top European Central Bank officials after they disagreed over how far to take its new “no limits” policy to shield the eurozone from the economic and financial turmoil of the coronavirus pandemic, the Financial Times reported. Following an emergency session of its governing council on Wednesday night, the ECB announced plans to buy €750bn more bonds in a significant expansion of its asset-purchase programme to address rising tensions in government and corporate bond markets.

The Swiss watch industry has survived lickings before, but Rolex, Omega and Cartier now face a combination of economic punches putting them back on their heels, Bloomberg News reported. The industry was just adapting to the downturn from political protests in its largest market, Hong Kong, when the coronavirus outbreak hit. Now as China’s economic slowdown is set to engulf the rest of the world, the strong Swiss franc, surging gold prices, and store closures are set to saddle companies like Swatch Group AG and Richemont with higher costs.

The bonds of emerging-market nations are entering distressed territory at an alarming rate as the soaring dollar raises the prospect of government defaults, Bloomberg News reported. Fifteen nations with more than $100 billion of Eurobonds outstanding now have average spreads of at least 1,000 basis points over U.S. Treasuries, which many investors consider to be the threshold for debt to be classed as distressed. And that doesn’t even include Lebanon, which defaulted this month, and Argentina, which has begun restructuring talks with bondholders.

Even in an industry devastated by the coronavirus crisis, Latin American airlines stand out. Five of the biggest carriers in the region -- Latam Airlines Group SA, Gol Linhas Aereas Inteligentes SA, Azul SA, Avianca and Volaris -- have seen about $12 billion in their market value wiped out since the end of January through Wednesday’s close, Bloomberg News reported. On average, their stock tumbled 78% in local currency terms, more than all 23 members in the Bloomberg World Airlines Index. The global gauge is down 46% in the period.

In a related story, Bloomberg News reported that OneWeb, the satellite operator backed by SoftBank Group Corp., is mulling a possible bankruptcy filing to address a cash crunch as it grapples with high costs and stiff competition, according to people with knowledge of the preparations. The company is considering seeking court protection even as it continues to review possible out-of-court alternatives, said the people, who asked not to be named discussing private company plans. OneWeb would be among the first SoftBank-backed companies to file for bankruptcy.

SoftBank Group Corp. shares plummeted the most on record, adding to steep declines earlier this month as investors grow concerned about the Japanese company’s debt load and investments with markets in tumult, Bloomberg News reported. The stock dropped 17% Thursday, the worst decline since founder Masayoshi Son first listed his company in 1994. SoftBank has tumbled about 50% in just the past month, erasing as much as $50 billion in market value. The Japanese billionaire is struggling to reassure investors about the stability of his empire amid fallout from the coronavirus.

Banks from Qatar, the United Arab Emirates and India risk losing millions of dollars due to their exposure to Finablr Plc, the foreign-exchange operator that’s preparing for potential insolvency, according to people with knowledge of the matter, Bloomberg News reported. Qatar National Bank, Doha Bank, National Bank of Fujairah, Commercial Bank International and Bank of Baroda are still owed about $300 million by Finablr’s parent BRS Ventures, which is owned by Bavaguthu Raghuram Shetty, some of the people said, asking not to be identified because the matter is private.

The collapse of Thomas Cook will land the UK government with a bill of more than £156m and drain the travel industry’s insurance scheme of funds just as airlines have warned that they may not survive the summer, the Financial Times reported. The National Audit Office said in a report that the Air Travel Organiser’s Licence (Atol) scheme will pay £481m to refund Thomas Cook customers, wiping out almost all of its resources.

India’s top court ruled out a reassessment of $19 billion in past dues to be paid by telecom companies, a move that could send indebted carrier Vodafone Idea Ltd. into bankruptcy, Bloomberg News reported. A three-judge panel, headed by Justice Arun Mishra, said it will consider a proposal by Prime Minister Narendra Modi’s administration seeking a 20-year payment plan for dues worth 1.4 trillion rupees. The years-long case centers around the dispute between the government and mobile carriers over how license and spectrum fees are calculated.