The Ministry of Corporate Affairs (MCA) on Tuesday invited comments from stakeholders on “pre-packaged” insolvency resolution and insolvency resolution for group companies among other issues related to the Insolvency and Bankruptcy Code (IBC), 2016, and the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, the Indian Express reported. In March this year, the government had reconstituted the Insolvency Law Committee as a standing committee, chaired by MCA Secretary Injeti Srinivas, to analyse the functioning and implementation of IBC.
Singapore authorities said on Tuesday they are reviewing debt-laden water treatment company Hyflux’s accounting and auditing standards to see if the firm has breached any laws, Reuters reported. Hyflux is currently under a court-supervised restructuring process and its recently called-off rescue by an Indonesian investor has thrown the future of the debt-laden company further into doubt.
Lufthansa has added to worries about the European aviation sector with a profit warning, two weeks after low-cost carrier easyJet spooked the market, the Financial Times reported. In an after-hours statement on Monday, the group said that rising fuel costs would send it to a worse than expected first-quarter loss, prompting its shares to drop 4.4 per cent in early trading on Tuesday. They recovered to trade flat by mid-morning.
ING chief executive Ralph Hamers has approached Commerzbank’s boss Martin Zielke suggesting a cross-border merger of both banks that could include the relocation of ING’s headquarters to Frankfurt, the Financial Times reported. The move from the Dutch adds another twist to the protracted takeover saga over Germany’s second-largest listed lender.
China’s growth will likely slow to 6.2 percent this year and 6 percent in 2020, as more of the economy shifts toward consumption and services, according to a biennial report by the Organization for Economic Co-operation and Development, Bloomberg News reported. OECD estimated 2019 expansion would be 6.3 percent in an outlook published last year. China faces risks "tilted to the downside," including large-scale corporate defaults, a collapse of housing prices and rising geopolitical tensions, the OECD wrote in its economic survey on China published Tuesday.
Brazilian lawmakers delayed a vote on pension reform legislation, dealing a blow to President Jair Bolsonaro’s policy agenda and irking investors who hope the overhaul will bolster Latin America’s largest economy, The Wall Street Journal reported. Opposition lawmakers on Monday night managed to push back, likely into next week, the first of several votes needed to approve a bill proposed by Mr. Bolsonaro that imposes tougher retirement rules.
So, the Chinese economy does have a pulse after all. Credit extension by banks and bond issuance by local governments are supporting some kind of revival in infrastructure investment, and a 30 per cent rise in the Chinese equity market since the start of this year is helping to lift the intensely pessimistic mood that paralysed Chinese spending in the latter part of 2018, the Financial Times reported. The stimulus policies that China started to introduce last summer, and intensified more recently, now seem to be reviving the patient.
Iranian authorities have a new target in their bid to calm the country’s economic turmoil: meat-market manipulators, The Wall Street Journal reported. During the two-week celebration of the Persian New Year that ended April 5, Iranians found that putting food on their tables is far more expensive than before. The price of veal and beef increased 67% last year, while mutton had jumped 52% and chicken had become 63% more expensive, the Central Bank of Iran said.
The Republic’s financial regulator is seeking powers from Government to demand that banks hold extra capital to safeguard against hidden risks to the Republic’s economy. Central Bank of Ireland governor Philip Lane told the University College Dublin (UCD) school of economics that, alongside normal risks, the Republic’s dependence on hi-tech multinationals left its banks vulnerable to shocks to this industry, The Irish Times reported.
A Saudi court has rejected two applications from conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) to have its decade-long dispute with creditors resolved under the kingdom’s new bankruptcy law, AHAB said on Tuesday, Reuters reported. The case was seen as a key test of the kingdom’s new regime for handling insolvency disputes. Creditors have been pursuing AHAB and Saad Group, another Saudi conglomerate, since they defaulted on about $22 billion in combined debt in 2009.