Headlines

Credit Suisse Group AG’s three-year turnaround ended with more of a whimper than a bang after trading losses eroded gains in wealth management and investment banking. The Global Markets business posted a larger-than-expected loss of 193 million francs ($191 million) in the fourth quarter, offsetting wealth management and investment banking results that beat estimates, Bloomberg News reported. In a tough quarter for money managers, the Zurich-based bank bucked a trend of large outflows at rivals, adding about half a billion francs of net new money.

South African President Cyril Ramaphosa reached out to labor unions that oppose his plans to break up the state power utility, reassuring them that the move is aimed at rescuing the embattled company rather than preparing it for privatization and mass firings, Bloomberg News reported. Eskom Holdings SOC Ltd. has amassed 419 billion rand ($29.6 billion) of debt following years of mismanagement, isn’t producing enough power to meet demand or cover its costs and has had to institute rolling blackouts for the past five days.

Trichome Financial Corp., a company led by Goldman Sachs Group Inc. alumnus Michael Ruscetta, is readying a C$100 million ($75 million) war chest to dive into the business of debt financing for cannabis companies, Bloomberg News reported. Toronto-based Trichome is planning to raise between C$25 million ($18.8 million) and C$35 million of new equity, adding to C$15 million already raised by partners, managers and some investors, Ruscetta said in an interview at Bloomberg’s offices in Toronto.

Lenders to Jet Airways India Ltd. proposed a bailout of the beleaguered carrier, potentially paving the way for a revival of the airline that was on the verge of collapse, Bloomberg News reported. Mumbai-based Jet Airways, which needs 85 billion rupees ($1.2 billion) to help it get back on its feet, will be revamped, with banks becoming the biggest shareholders of the company, according to a filing Thursday. The restructuring would involve a mix of debt-to-equity swap, new capital infusion and asset sales, the company said, without elaborating.

Italy’s Salini Impregilo has offered to invest 225 million euros ($254 million) to rescue troubled rival construction group Astaldi, the company said on Thursday. Subscribing to a reserved capital increase, the proceeds of which will help Astaldi repay debt, Salini will gain a 65 percent stake, it said in a statement, Reuters reported. Salini said the offer was conditional on Astaldi reaching an accord with its creditors as well as other long-term investors contributing to the cash call and banks agreeing to grant Astaldi credit to stabilise the group’s finances and operations.

Collapsed UK cafe operator Patisserie Holdings sold its two main businesses for 13 million pounds ($16.7 million) on Thursday, administrators said, in a deal that rescues dozens of cafes and some 2,000 jobs, Reuters reported. Patisserie said in a statement it had sold bakery chain Patisserie Valerie to Irish private equity fund Causeway Capital and its Philpotts brand to food retailer A.F. Blakemore for 10 million pounds cash and a further 3 million in future payments. KPMG said 21 Philpotts stores had been sold.

Puma Energy, the retail and storage arm of commodities trader Trafigura, plans to restructure and sell assets to cut its debt and improve profits, a source familiar with the matter said, Reuters reported. Puma has hired consulting firm McKinsey under new chief executive Emma Fitzgerald who took over last month from Pierre Eladari, who had overseen rapid expansion, the source said. Although its full-year 2018 results have not been finalised, Puma expects a small net loss or profit, the source added.

The International Bank of Azerbaijan (IBA) is working with a consultant to prepare a recovery strategy ahead of its privatisation, the head of its supervisory board said. State-run IBA restructured its $3.3 billion in international debt in 2017 after receiving approval from creditors, Reuters reported. “We are currently working with a well-known international consultant company on a business strategy for a recovery of the International Bank and are going to begin its implementation this year,” Shahmar Movsumov said.

A commercial court in Dammam has rejected an application by the conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) to settle its debt under a new Saudi bankruptcy law, AHAB told Reuters on Wednesday. AHAB was the first high-profile company to file for a settlement under Saudi Arabia’s bankruptcy law, which came into effect in August last year, part of reforms aimed at attracting foreign investment and reducing the economy’s dependence on oil, Reuters reported.

China's bad debt managers, whom Beijing hopes to play a key role in resolving financial risks, are in danger of becoming bad credits themselves as the leverage crackdown that fuelled a boom in their business now threatens their own access to funding, the International New York Times reported on a Reuters story. The practice of buying banks' non-performing loans (NPLs) at a discount and recovering them for a profit has grown rapidly in China since 2016.