Headlines

The eurozone countries' gross domestic product (GDP) is set to grow by 0.3 percent in the second quarter of 2019, the German Ifo Institute for Economic Research said in its economic outlook for the eurozone published here on Wednesday, Xinhuanet reported. Ongoing trade conflicts, political uncertainties and a cooling-off of the global economy would likely see GDP growth in the eurozone decline slightly compared to the 0.4 percent growth registered in the first quarter of 2019.

German luxury TV manufacturer Loewe will cease business operations on 1st July due to insufficient funds, according to reports. Yesterday, German publication Spiegel Online reported that Loewe was bankrupt and planning to shut down operations this weekend, What Hi-Fi? reported. "For reasons of insolvency law, we are therefore obligated to protect our creditors to provisionally suspend operations on 1 July 2019 with the least possible cost burden," said Loewe managing director Ralf Vogt.

On 13 June 2019, the much anticipated DIFC Insolvency Law No. 1 of 2019 and associated DIFC Insolvency Regulations 2019 (collectively the “2019 DIFC Insolvency Law”), came into full force and effect, replacing the DIFC Insolvency Law No. 3 of 2009, JD Supra reported. By way of context, the 2019 DIFC Insolvency Law applies only to entities registered and operating within the DIFC. The 2019 DIFC Insolvency Law aims to balance the needs of all stakeholders in the context of insolvency related situations in DIFC, and in doing so facilitate a more efficient and effective restructuring regime.

South Africa has laid out a timeline for the restructuring of Eskom Holdings SOC Ltd.. and pledged that creditors of the state-owned electricity company won’t suffer losses, according to a fund manager who attended a briefing by the head of the country’s Treasury, Bloomberg News reported. Treasury Director-General Dondo Mogajane set out the steps in a meeting with investors in London on Tuesday, according to the person, who asked not to be identified because the event wasn’t public.

An obscure clause in government bond contracts may help the European Central Bank clear a key hurdle to launching a fresh stimulus programme by allowing it to own even more government debt, according to central bank officials, the International New York Times reported on a Reuters story. With the euro zone's growth and inflation prospects dimming, ECB President Mario Draghi has strongly hinted at more monetary easing in the form of interest rate cuts or new asset purchases.

Waning investor confidence in India’s troubled shadow lenders is sapping demand for corporate debt, Bloomberg News reported. Companies sold 1.2 trillion rupees ($17.3 billion) of bonds so far in the April-June period, down 57% from the previous quarter and the weakest since the year-ago period, despite the decline in borrowing costs, according to data complied by Bloomberg. Liquidity risk in the nation’s credit markets roared back this month after non-bank financier Dewan Housing Finance Corp.

Steinhoff International Holdings NV is seeking more than 850 million rand ($59 million) from former Chief Executive Officer Markus Jooste for his role in the accounting crisis that triggered the retailer’s near-collapse, Bloomberg News reported. The owner of Conforama in France and Mattress Firm in the U.S. is looking to claw back base salaries, bonuses and other incentives paid to Jooste over several years from 2009, according to legal papers filed to the High Court in Cape Town. Ex-Chief Financial Officer Ben la Grange is being sued for about 271 million rand as part of the same case.

Norwegian oil and gas rig operator Dolphin Drilling filed for bankruptcy on Wednesday, leading creditors to seize its key assets in a restructuring that will see the company maintain operations, Reuters reported. Formerly known as Fred. Olsen Energy, Dolphin Drilling ASA had debt of just over $1 billion at the end of 2018 and a net loss for the year of almost $300 million, its annual report shows.

Jet Airways share price sprang a surprise today after days of thrashing after the ailing airline found itself stuck in muddy waters of debt trap invoking lenders to approach insolvency court to recover their dues, Business Today reported. Jet Airways share, which hit a fresh 52-week low of 27 in trade today rebounded 133% amid short covering to hit an intra day high of 77.35 on BSE. The sudden rise in Jet Airways stock comes ahead of an order to be passed by National Company Law Tribunal (NCLT) on insolvency plea filed by country's largest lender SBI.

Canadian aerospace company Bombardier has announced the sale of its regional jet program to Japan's Mitsubishi Heavy Industries Ltd. for $550 million, the International New York Times reported on an Associated Press story. The company is seeking to exit the commercial plane market and focus on business jets and its large rail segment. Bombardier chief executive Alain Bellemare said Tuesday the sale signifies the completion of the transformation of its aerospace business.