Headlines

Struggling Chinese property developer Kaisa Group (1638.HK) said creditors would get less than 5% of their money back if it is forced into liquidation, a lawyer for one creditor who is suing the company told a Hong Kong court on Tuesday. Broad Peak Investment filed a winding-up petition against Kaisa in July in the Hong Kong High Court in relation to non-payment of onshore bonds worth 170 million yuan ($23.28 million).

Metro Bank, an upstart British lender, said on Sunday that it has raised 325 million pounds, or $395 million, in new capital to help ease regulators’ worries about its financial health, the New York Times reported. The deal, put together after days of negotiations, is meant to help stabilize what was one of the first of Britain’s so-called challenger banks, created to take on incumbents like HSBC and Barclays. Founded in 2010 by an American banking veteran, Vernon Hill, Metro was the first new mainstream bank in Britain in over a century.

A sharp rise in Irish business insolvencies is being linked to ongoing inflation pressures faced by businesses in all sectors, the Irish Examiner reported. Data from CRIFVision-Net for the third quarter shows the number of companies becoming insolvent rose by 54% compared to the same period last year. A total of 185 insolvencies were recorded in July, August, and September, versus 120 in the third quarter of 2022. Ireland’s economy has remained relatively strong this year despite cost-of-living challenges and a mixed global outlook.

The shekel regained its footing as the central bank dueled short sellers to contain the market fallout from Israel’s conflict with militant group Hamas, Bloomberg News reported. The currency strengthened as much as 1% in the first half hour of trading on Tuesday and was little changed against the dollar as of 4:42 p.m. local time. The nation’s benchmark stock index, which slumped 6.5% on Sunday, rose as much as 1.4%, before paring gains.

Bain Capital has put off its plans for an initial public offering of Virgin Australia airline to next year, Reuters reported. The U.S.-based private equity firm will consider listing in 2024 after assessing market conditions. Bain said in January that it would explore re-listing Virgin, which it bought for A$3.5 billion ($2.45 billion) including liabilities in 2020 after it was placed in voluntary administration, the closest Australian equivalent to chapter 11 bankruptcy.

The International Monetary Fund on Tuesday cut its growth forecasts for China and the euro zone and said overall global growth remained low and uneven despite what it called the "remarkable strength" of the U.S. economy, Reuters reported. In its latest World Economic Outlook, the IMF left its forecast for global real GDP growth in 2023 unchanged at 3.0% but cut its 2024 forecast to 2.9% from its July forecast of 3.0%. World output grew 3.5% in 2022.

A cash-strapped council in the United Kingdom has cancelled its Christmas lights in a battle against bankruptcy, YahooFinance.com reported. Medway Council in Kent announced on Monday that there will be no lights or switch-on events in five of its towns. The decision comes just weeks after a financial report warned it is "very likely" the council will face bankruptcy. It said the move to call off Christmas in Gillingham, Rochester, Strood, Rainham and Chatham will save the council £75,000.

About 4,300 unionized workers went on strike at three General Motors plants in Canada on Tuesday, boosting pressure on the automaker grappling with a U.S. union work stoppage now in its fourth week, Reuters reported. The walkout by workers came after Canadian union Unifor said GM was "stubbornly refusing" to match the contract the labor union reached with Ford Motor, which offered wage increases of up to 25% in Canada.

Three Arrows Capital co-founder Su Zhu ended up in jail in Singapore after liquidators decided to apply maximum pressure following months of sparring over locating the failed crypto hedge fund’s assets, Bloomberg News reported. Days after securing a Singapore court order carrying a four-month prison term for failing to cooperate with the task of winding up the fund, liquidators tipped police off on Sept. 29 that Zhu was headed to Changi Airport.

Debt-laden companies across Europe, Middle East and Africa face a $500 billion refinancing scramble in the first half of 2024, a challenge that could kill off many "zombie" businesses even though an expected peak in rates could bring some relief, Reuters reported. Businesses facing rising debt costs after years of low rates will have to compete to secure enough cash in the biggest corporate refinancing rush seen for years, just as banks rein in risk ahead of stricter capital rules.