Headlines

Back in May, Goldman Sachs Group Inc. stirred up a public-relations nightmare when its asset-management arm bought almost $3 billion worth of distressed Venezuelan bonds for pennies on the dollar. They were labeled “hunger bonds,” a nod at the country’s deepening humanitarian crisis, and critics pilloried Goldman Sachs online. Now, to make matters worse for the bank, those bonds are in default, Bloomberg News reported.

If there was ever a textbook example of how not to handle a sovereign debt crisis, it was Greece. Nearly a decade since Athens first asked for help from its euro zone partners and the International Monetary Fund, the Greek economy is still struggling to recover. Even after a steep restructuring, sovereign debt remains unsustainable, Bloomberg News reported in a commentary. If Greece is not to be crippled by its debt load, European governments will have to accept further debt-reducing measures, on top of the maturity extensions and the cut in interest rates they have already agreed to.

India’s Reliance Communications Ltd., which earlier this month defaulted on dollar notes, told bondholders that they would be treated the same as bank lenders in terms of their ability to recover funds, according to Citigroup Inc. The mobile phone operator controlled by billionaire Anil Ambani, whose failure to pay interest on the dollar notes comes as a high-profile test of India’s new bankruptcy laws, held the call Monday, Citigroup said in a note to clients dated Nov. 28.

British retail supplier Palmer & Harvey McLane Ltd has been placed in administration after running out of cash, with the immediate loss of some 2,500 jobs, accounting firm PwC said, Reuters reported. The group, which delivers cigarettes, food and drinks to retail chains and convenience stores, has been hit by challenging trading conditions in recent months and efforts to restructure it have been unsuccessful, PwC said on Tuesday.

China Huishan Dairy Holdings, burdened by billions of dollars worth of debt, said on Tuesday its creditors had filed a plea in a local court for bankruptcy restructuring against two if its wholly-owned subsidiaries, Reuters reported. The application was filed on Tuesday against Huishan Dairy China Co Ltd and Liaoning Huishan Dairy Group Shenyang Co Ltd by the embattled company’s onshore creditors, it said in a filing to the Hong Kong stock exchange.

Noble Group Ltd.’s long-time foe Iceberg Research made a fresh attack on the embattled commodity trader on Tuesday, saying that its balance sheet may still mask problems and that the company’s bid to restructure its obligations won’t lead to a turnaround, Bloomberg News reported. “The problem with this company is not only that assets have been wildly overvalued. Some liabilities have probably been drastically undervalued,” Iceberg said in an open letter to the creditors of the Hong Kong-based company.

According to one of India’s most respected bankers, it’s a once-in-a-lifetime opportunity -- a mammoth sale of distressed assets, some $40 billion in the first round, Bloomberg News reported in a commentary. Much could go wrong, of course, especially given that so many powerful interests have so much money at stake in the process. Fortunately, Prime Minister Narendra Modi's government, which has stumbled in some of its biggest policy moves recently, appears to be handling this particular challenge with both agility and a sense of urgency.

Greece has successfully completed a €30bn voluntary bond swap aimed at boosting market liquidity and attracting long-term investors, according to people involved in the transaction, the Financial Times reported. “It went extremely well…Take-up exceeded 80 per cent,” one such person said, adding that details of the transaction would be released on Wednesday. The bondholders participating in the swap included local banks and pension funds along with international investors.

Shares in India’s Reliance Communications fell by as much as 9.4 per cent on Tuesday morning following reports that the troubled telecom group’s largest creditor, China Development Bank, has launched action against it under India’s new insolvency law, the Financial Times reported. In a statement on Monday evening, RCom – controlled by tycoon Anil Ambani – had denied any knowledge of the reported petition, which could force it into liquidation if it fails to satisfy creditor demands.

British Airways owner IAG has acquired valuable take-off and landing slots at London’s Gatwick airport from failed carrier Monarch Airlines, the latter’s administrators said on Monday, beating off competition from other airlines. The administrators said they were in the process of completing an exchange of Monarch’s slots for others currently held by IAG but did not disclose how much IAG was paying under the swap arrangement to get the more valuable slot times, Reuters reported.