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A Scottish Parliament committee has launched a public consultation to seek views on new Scottish bankruptcy laws, Scottish Legal News reported. The Bankruptcy and Diligence Bill will, among other provisions, create a “mental health moratorium”, meaning enforcement action against someone with serious mental health problems can be stopped. The bill will also make changes to the process for recovering money for creditors, including a requirement for creditors to provide a debtor with information about debt advice before enforcement.

An investigation could be launched into an energy company which went bust owing more than £1m to livid customers, the Dorset Echo reported. Dorset, U.K.-based Daylight Energy officially went into liquidation in early May after racking up extensive debts and leaving hundreds of customers out of pocket. According to the report, compiled by insolvency practitioners Verulam Advisory, there are 397 customers who paid deposits totalling £1,014,427 - all of which is unsecured.

The euro zone's top banks may take a hit if their financial clients, such as funds, insurers and clearing houses, withdrew their deposits or otherwise ran into trouble, the European Central Bank warned on Tuesday, Reuters reported. The ECB study looked into the risk of spillovers from so-called shadow banks -- such as funds and other financial companies that provide funding in one form or another -- to traditional lenders, and vice versa.

The bankruptcy liquidator in charge of Silicon Valley Bank’s Canadian unit is set to receive offers for its loan book on Monday, and the biggest asset is a loan to e-commerce lender Clear Finance Technology Corp., Bloomberg News reported. Toronto-based Clear Finance, which operates under the name Clearco, is an alternative lender that offers cash advances to e-commerce and software startups. It’s struggling amid the tech sector downturn after its cost of capital jumped. The company has done extensive staff cuts and exited markets outside North America.

China’s era of rapid growth is over. Its recovery from zero-Covid is stalling. And now the country is facing deep, structural problems in its economy, the Wall Street Journal reported. The outlook was better just a few months ago, after Beijing lifted its draconian Covid-19 controls, setting off a flurry of spending as people ate out and splurged on travel. But as the sugar high of the reopening wears off, underlying problems in China’s economy that have been building for years are reasserting themselves.

Brazilians are struggling to pay their debts on time, with four out every ten adults facing default, as central bankers keep monetary policy tight in an effort to bring inflation back to their target, Bloomberg News reported. Overdue debts grew 18.42% in April from a year ago, according to data from the national confederation of shopkeepers reported by news site Poder360. The number of Brazilians facing default also grew around 8%, with most battling debts with local banks, the confederation said.

European Union governments decided on Tuesday to nearly double the amount of EU financial support to Moldova to a total of 295 million euros ($324.74 million), the Swedish presidency of the EU said, Reuters reported. The decision comes just days before a meeting of the European Political Community in Moldova on June 1, as the EU seeks to quell pro-Russian sentiments in parts of Moldova. "Moldova can continue to count on the EU. We will continue to support Moldova, also financially.

The National Company Law Appellate Tribunal has dismissed a petition filed by the suspended promoter and director of real estate and construction company Renaissance Indus Infra against the bankruptcy court’s ruling to admit the company under the corporate insolvency resolution process (CIRP) following a plea by its financial creditor Catalyst Trusteeship, the Economic Times of India reported. The lender had moved the bankruptcy court after the company defaulted on its dues worth nearly Rs 444 crore.

Romanian insolvent airline Blue Air won the lawsuit against the National Authority for Consumer Protection (ANPC) for the first fine of EUR 2 mln the company was given last summer, Ziarul Financiar reported. A second EUR 2 mln fine was issued in October for similar reasons, Romania-Insider.com reported. ANPC fined Blue Air a record amount of EUR 2 mln in July for the first time for cancelling over 11,000 flights between April 30, 2021 – April 30, 2022. Blue Air claimed that the fine was illegal and discriminatory. The District 1 Court decided on May 25 to reduce the fine to EUR 20,000.

Bonds of Unigel slipped into distressed territory on concern that poor results may put the chemical maker at risk of covenant violations, Bloomberg News reported. Dollar notes due in 2026 are down 34 cents since the firm posted its first-quarter earnings earlier this month, seen as weak by analysts. The plunge — the worst among Latin America’s corporate borrowers this quarter, according to data compiled by Bloomberg — sent yields jumping to more than 35%, from around 8% in January.