Headlines

The Central Bureau of Investigation (CBI) on Thursday interrogated Punjab chief minister Amarinder Singh’s son-in-law, Gurpal Singh, in connection with Simbhaoli Sugar loan default case, Mint reported. The Enforcement Directorate (ED) has registered a money laundering case against Simbhaoli Sugars Ltd and its executives in connection with an alleged bank loan fraud of Rs97.85 crore, officials said on Thursday. A case was registered by the ED under the Prevention of Money Laundering Act (PMLA) and the searches were conducted by it in Hapur and Noida on Wednesday.

Electronics chain Maplin collapsed into insolvency on Wednesday, making it the second retailer to succumb to a brutal winter for Britain’s consumer economy in the space of just over an hour, the Financial Times reported. Graham Harris, who became chief executive only last month, said: “I can confirm this morning that it has not been possible to secure a solvent sale of the business and as a result we now have no alternative but to enter into an administration process.

Indian mobile carrier Aircel Ltd filed for bankruptcy on Wednesday, pressured by a high debt pile and mounting losses following a price war triggered by a telecom upstart, Reuters reported. Talks between Aircel, 74 percent owned by Malaysia’s Maxis Communications Bhd, and Reliance Communications Ltd (RCom) to combine their wireless business was called off in late 2017 due to regulatory and legal uncertainties and interventions by various parties. Aircel, whose debt amounts to 155 billion rupees ($2.38 billion), then tried unsuccessfully to restructure its debt.

Retailer Toys R Us UK has gone into administration, the firm appointed to oversee the process said, putting around 3,000 jobs at risk, Reuters reported. The toy retailer has struggled in Britain in recent years as shoppers increasingly prefer to spend online rather than visit its large out-of-town stores. Moorfields Advisory said that all stores were to continue trading until further notice, but that the company had entered administration after an “unsuccessful attempt to sell its business as a going concern.” Toys R Us operates more than 100 stores in Britain and also trades as Babies R Us.

Mozambique won’t make payments for at least five more years on about $2 billion of loans that led to a default last year, according to the International Monetary Fund, Bloomberg News reported. The government has amassed $710 million of arrears on the debt, most of which it previously hid from the Washington-based lender, according to an Article IV report and an associated Debt Sustainability Analysis to be submitted to the fund’s board March 2. The documents were shown to Bloomberg by two people who declined to be identified because they’ve not been published yet.

Noble Group Ltd. posted a full-year loss of $4.94 billion for 2017 and warned that further writedowns may yet be in store as the commodity trader battles to survive, with executives pressing ahead with a debt-for-equity rescue plan that’s facing increased resistance, Bloomberg News reported. “Further additional non-cash valuation adjustments may be recorded,” the company said in a statement in Singapore. The final figure compares with a range of $4.78 billion to $4.98 billion given in a warning last week.

Going broke just ain’t what it used to be. In defaults of yesteryear, countries could bank on immunity as they reneged their obligations in peace. These days they’re ending up in costly legal quagmire like never before, according to a working paper published by the European Central Bank on Wednesday. The trend is strengthening the power of creditors, especially hedge funds, and significantly raising the cost of default for debtors, the paper found. Argentina’s decade-long debacle with hedge-fund holdouts is a case in point, showing how court disputes can bind the hand of an issuer for years.

Latvia’s ABLV Bank, which the European Central Bank (ECB) has ordered wound up, said on Tuesday it had enough assets to cover its liabilities in full under a voluntary liquidation plan, Reuters reported. The ECB said at the weekend that privately held ABLV is likely unable to pay its debts or other liabilities as they fall due. “We believe our bank will be able to settle with all of our clients in full,” ABLV, Latvia’s third-biggest bank by assets, said in a statement.

Debt-laden Chinese conglomerate HNA Group Co. has given its creditors cause for concern in recent months, but its international bondholders are finding some comfort in guarantees provided by the local parent company. The structure means that overseas investors would in theory have a direct claim against the Chinese-based entity in the event of any default or bankruptcy proceeding, Bloomberg News reported.

Euro-area economic confidence slipped in February, the latest number to show momentum in in the region is taking a breather after the best year in a decade. The European Commission’s index of sentiment fell to 114.1 from 114.9, broadly in line with expectations. That’s the second consecutive monthly decline after the index touched a 17-year high in December, Bloomberg News reported. The business climate measure also declined, falling to the lowest since October. The report continues a run of disappointing numbers from the 19-nation currency bloc.