Headlines

The NCLAT has set aside a petition filed by the state tax department claiming dues from Reliance Communications (RCom) observing that it was based on the assessment made after the initiation of insolvency resolution process against the debt-ridden firm, the Economic Times of India reported. A two-member NCLAT bench upheld the earlier order passed by the Mumbai bench of the National Company Law Tribunal (NCLT), which had rejected the state tax department's second claim of Rs 6.10 crore. Corporate Insolvency Resolution Process (CIRP) against RCom was initiated on June 22, 2019.

The latest Coface Romania study shows that in H1 2024, 3,684 new insolvency proceedings were opened, an increase of 8.32% compared to the same period of last year. There is also a deterioration in the payment behavior of companies, the number of payment incidents being 29% higher compared to the same period in 2023, Business-Review.eu reported. The data also indicate a 73% increase in the number of insolvencies among companies with business over EUR 5 million, compared to the same period of 2023.

Sweden’s Northvolt AB will shed 20% of its global workforce and pause its expansion plans to slow cash outflows as the battery-making firm confronts a burgeoning financial crisis, Bloomberg News reported. The company, which has struggled in its mission to stand up a home-grown supply of electric-vehicle batteries in Europe, said it will reduce its Swedish workforce by 1,600 positions as part of a strategic review that was announced this month. The money-saving move comes as Northvolt continues to negotiate a new financing pact with its creditors and investors.

Vue International, the closely held European cinema chain, is working with financial advisers to evaluate options including a sale after receiving takeover inquiries, Bloomberg News reported. CVC Capital Partners Plc and Elliott Management Corp. are among the potential bidders that have expressed interest in acquiring the chain. The deliberations are at an early stage and there is no certainty of a deal. If purchased, Vue could become a vehicle for consolidation in the theater industry, allowing the company to expand into new markets and cut overlapping costs.

The eurozone economy contracted as the third quarter drew to a close, while inflationary pressures cooled, according to a series of business surveys released on Monday, the Wall Street Journal reported. The surveys suggest that a soft landing from the surge in inflation that accompanied Russia’s full-scale invasion of Ukraine could be in doubt.

Turkey’s central bank will probably discuss interest-rate cuts at its November meeting, but there is no pre-determined path for monetary policy and the decision will be driven by economic data between now and then, Bloomberg News reported. The bank will focus primarily on inflation, which authorities predict will gradually slow to 38% by the end of this year, compared with 52% in August, according to the person, who asked not to be identified because of the sensitivity of the matter.

The International Monetary Fund is focusing on a set of options to ease the additional debt burden it imposes on nations looking to escape financial distress, as it seeks to address complaints that its current system is overly punitive, Bloomberg News reported. The IMF’s executive board had a meeting this week to consider three potential changes to the so-called surcharges system, according to people familiar with the plan who asked not to be identified discussing private information.

August 2024 saw 102 company insolvencies registered in Scotland, 9% lower than the number in August 2023, Scottish Financial News reported. The total number of company insolvencies was comprised of 56 CVLs, 42 compulsory liquidations, two administrations and two receivership appointments. There were no CVAs. The total insolvency rate in Scotland in the 12 months to August 2024 was 53.2 per 10,000 companies on the effective register. This was down by 1.7 from the preceding 12 months ending August 2023.

ISG, a U.K.-headquartered construction giant with a presence across Ireland, wider Europe and the Middle East is facing collapse, with the firm preparing to place much of its business into insolvency, the Irish Examiner reported. The firm employs more than 2,000 people and is one of the largest construction companies in the UK. It’s collapse would be the biggest casualty in the sector since Carillion went into liquidation in 2018. Six of the firm’s subsidiaries filed notices of intention to appoint administrators on Thursday.

Lenders to Northvolt AB have selected investment bank PJT Partners to help advise on options as a cash crunch deepens at the troubled maker of electric-car batteries, Bloomberg News reported. While there are no restructuring talks under way, PJT will work alongside law firm Milbank LLP, which was already a lender adviser, the people said, asking not to be named discussing private information. Creditors are preparing for a range of scenarios at the Swedish manufacturer.