Headlines

India has proposed a framework for the bankruptcy of financial institutions that will align the country with international standards, Reuters reported. Analysts suggested, however, that the regulation will increase the cost of senior funding for Indian banks if it is implemented according to the draft submitted to the market for comments. The proposals from a working group of the Reserve Bank of India call for depositors to have preference over senior creditors.

Oléo e Gás Participações SA, OGXP3.BR +6.25% Brazilian businessman Eike Batista's oil company, announced late Friday changes to its restructuring plan, placing in the spotlight a $1 billion put option that the former billionaire never repaid, The Wall Street Journal reported. Rio de Janeiro-based OGP, formerly known as OGX Petróleo e Gás Participações SA, filed for bankruptcy protection in October 2013. In December, creditors accepted a restructuring plan that would have canceled the put option. But, in March, prosecutors, who are investigating Mr.

Malaysian Airline System Bhd., the carrier reeling from the disappearance of Flight 370 more than two months ago, won’t seek bankruptcy and will instead accelerate an overhaul to help it break even next year, Bloomberg News reported. “I don’t see that as an option at this stage,” Hugh Dunleavy, the airline’s director of commercial operations, said in an interview with Bloomberg Television’s Haslinda Amin yesterday, when asked about a possible insolvency. A review of all operations may take about three months, with implementation of changes maybe requiring another six to nine months, he said.

Pescanova’s Spanish subsidiaries will go through an ‘express’ scheme of debt restructuring under bankruptcy protection (‘concurso de acreedores’ in Spanish), reported Faro de Vigo. Only a handful of subsidiaries will not have to do this, said the newspaper. According to the newspaper’s sources, these include two Galicia-based subsidiaries of Pescanova, the turbot fingerling subsidiary Pescanova Insuina and specialty flour producer for precooked products Harinas y Semolas del Noroeste (Hasenosa).

LDK Solar Co., the Chinese solar manufacturer which defaulted on a bond that matured in February, said it received 2 billion yuan ($321 million) of loans from Chinese banks, Bloomberg News reported. China Development Bank Corp., the nation’s biggest policy lender, is leading the funding from 11 financial institutions, LDK spokesman Peng Shaomin said in a phone interview today. LDK will spend more than 400 million yuan on a polysilicon project and use the remainder to boost its cash reserves, Peng said.

The Commercial Court is to fast-track the action by the family of bankrupt businessman Sean Quinn against the Central Bank, Minister for Finance and 10 former board members of Anglo Irish Bank. They are claiming multi-million euro damages over an alleged conspiracy to unlawfully shore up the share price of Anglo, the Irish Times reported. If the regulator and Minister were not involved, Anglo could not, and would not, have undertaken €2.34 billion loan transactions causing “catastrophic and permanent” damage to the Quinns and the collapse of the Quinn group, it is claimed.

The Government will establish an €800 million lending fund for small and medium-sized businesses by the end of the year after Ministers gave the go-ahead for the body, known as the Strategic Banking Corporation of Ireland (SBCI), the Irish Times reported. Minister for Finance Michael Noonan said the SBCI – backed by German, European and Irish money – would provide lending arrangements not currently available to SMEs in Ireland. “The best way to see it is to see it as a fund, to see it as a big fund.

Former Anglo Irish Bank Corp. Chief Executive Officer David K. Drumm, sued by the defunct lender over an unpaid personal loan, conceded to a U.S. judge he made “a lot of errors” in his bankruptcy filing and wasn’t aware he needed to reveal $1.2 million in cash transfers to his wife, Bloomberg News reported. Drumm, 47, filed for personal bankruptcy protection from creditors in 2010 in Boston, two years after he began moving money to a new account set up for his wife. Anglo Irish argues Drumm can’t use U.S.

An anti-bailout party that is leading Greek opinion polls ahead of this weekend's local government and European elections vowed Thursday to scrap international agreements that rescued the country's economy from bankruptcy at the cost of harsh austerity, the Associated Press reported. Three opinion polls also published Thursday found that support for the left-wing Syriza party was 2.5 percent to 3.2 percentage points ahead of the conservative New Democracy party, which leads Greece's coalition government.

The World Bank on Thursday approved $1.5 billion in funding for three Ukraine development projects as part of a larger international financing package, The Wall Street Journal reported. "We are stepping up our assistance to Ukraine because we want to help improve the lives of people in the country and to achieve economic recovery at a crucial time," World Bank President Jim Yong Kim said in a statement. In March, the bank said it planned to provide more than $3 billion in financing by the end of the year, including up to a $1 billion in budget support.