Headlines

Dutch bicycle maker VanMoof has been declared bankrupt, slamming the brakes on a company that won design awards for its stylish, minimalist electric bikes but struggled to meet soaring demand and fix glitches with the app powering its service, ABC News reported. The Amsterdam-based company, started in 2009 by brothers Taco and Ties Carlier, posted a statement on its website informing clients that an Amsterdam court declared VanMoof bankrupt on Monday. The company headquarters in Amsterdam was closed Tuesday.

The Select Committee appointed to investigate Sri Lanka's bankruptcy will meet for the first time on Tuesday (18) in Parliament, Newsfirst reported. The meeting will focus on the committee's future course of action, Chair of the committee SLPP General Secretary Sagara Kariyawasam said. They will also discuss the names of those who will first be summoned before the committee. In the meantime, SJB General Secretary Ranjith Madduma Bandara will not be part of the committee. The SJB has decided to appoint an alternative committee instead.

The spectre of rising corporate debt defaults exacerbating a global economic slowdown has for months been largely brushed aside by resilient credit markets, Reuters reported. Now, long-feared corporate debt woes are starting to hit home, while more companies are being downgraded to a junk credit rating — facing higher borrowing costs as a result. Retailer Casino, with 6.4 billion euros ($7.19 billion) of net debt, is in court-backed talks with creditors; Britain's Thames Water is in the headlines with its 14 billion pound ($18.32 billion) debt pile.

Colombian flag carrier Avianca has overhauled the interiors of more than 100 Airbus A320 jets, increasing their capacity by a fifth as it repositions itself as a budget airline following its bankruptcy, Business Traveler reported. Bogotá-headquartered Avianca filed for chapter 11 bankruptcy in New York in the spring of 2020 amid the upheaval and travel restrictions of the coronavirus pandemic. As part of its post-bankruptcy restructuring, Avianca has adopted a new business model, transforming itself from a full-service legacy airline to a low-cost carrier.

An investor who allegedly kidnapped self-described crypto king Aiden Pleterski after investing $740,000 with him is asserting his innocence, iHeartRadio reported. Toronto police charged 39-year-old Akil Heywood, along with three others, with kidnapping Pleterski for ransom for three days last December. He has been released on bail for $10,000. Pleterski allegedly owes at least $35 million to cryptocurrency and foreign exchange investors, which petitioned the 24-year-old from Whitby, Ont., into bankruptcy almost a year ago.

SJB MP Harshana Rajakaruna said in Parliament yesterday that all SJB MPs will resign from the Parliamentary Select Committee (PSC) appointed to investigate the country’s bankruptcy, the Daily News reported. The MP said in a special statement in Parliament that the Speaker will be informed in writing in this regard. He said that it is very unfair to appoint the Secretary General of the same party that bankrupted the country as the chairman of the Select Committee while the Opposition has requested the chairmanship.

Whatever is driving Wall Street higher — the finishing line of the Fed's rate-hiking cycle, a falling dollar or strong earnings — it is not really filtering through to Asian markets, Reuters reported. The disconnect between Asia and the rest of the world has widened recently, and correlations between the MSCI Asia ex-Japan index and leading U.S. and global indexes are the weakest in about a month. A solid batch of second quarter earnings from some of the largest U.S. banks and financial firms on Tuesday kept the U.S. stock market juggernaut rolling.

Billionaire banker Jaime Gilinski ramped up his bid to take control of Colombian grocery store chain Almacenes Exito, according to a draft letter seen by Bloomberg and later confirmed in a regulatory filing, Bloomberg reported. Gilinski on Tuesday sent the letter to Exito’s largest shareholder, Cia Brasileira de Distribuição, offering $586.5 million in cash for a 51% stake in the retailer, GPA said. It represents a per-share premium of more than 30% from the original offer, which was made last month for 96.5% of Exito and rejected by GPA’s board.

Argentina President Alberto Fernandez warned against a sharp devaluation of the country’s currency as expectations mount that his soon-to-be-elected successor will have no other choice to address a chronic dollar shortage, Bloomberg reported. “An abrupt devaluation would be a problem for Argentina,” Fernandez said during an interview with Bloomberg TV’s Maria Tadeo in Brussels, where he is attending a summit of leaders from Latin America and Europe. He made no mention that a currency move he characterized as “very damaging” was imminent.

China's economy grew at a frail pace in the second quarter as demand weakened at home and abroad, with the post-COVID momentum faltering rapidly and raising pressure on policymakers to deliver more stimulus to shore up activity, Reuters reported. Chinese authorities face a daunting task in trying to keep the economic recovery on track and putting a lid on unemployment, as any aggressive stimulus could fuel debt risks and structural distortions.