Headlines

UK energy services company Petrofac Ltd is running out of time to agree a debt deal with creditors, after months of talks have failed to produce a definitive agreement, Bloomberg News reported. The London-based firm missed a bond payment in May and has until July 25 to find a solution with creditors. Failure to do so could lead to an extension of the deadline, or force the company to immediately repay debt.

The UK’s biggest water and sewage company could be broken up, listed on the stock exchange, or forced to cap its debt under special measures set out by the regulator on Thursday, Bloomberg News reported. Heavily-indebted Thames Water will be put into a Turnaround Oversight Regime to ensure it can fix chronic leaks and sewage spills, according to the draft ruling. Ofwat also limited the amount Thames can hike annual customer bills to £535 ($688) per household, in line with the average increase for the industry. But it’s well below the £627 proposed by Thames.

Swedish debt collector Intrum AB has reached an agreement with a majority of its bondholders to address its €5.4 billion ($5.8 billion) debt pile, including a forced loss on credit investors and pushing out the notes’ maturities, Bloomberg News reported. As part of the deal, the company’s existing unsecured notes will be exchanged into four series of new bonds with maturities between 2027 and 2030, but only at 90% of their original value, according to a statement on Thursday. In exchange for the haircut, bondholders will get 10% of Intrum’s equity.

Investors in Chile are bracing for a rare flood of commercial buildings to hit the market as two of the nation’s largest real estate investment funds near liquidation, Bloomberg News reported. Real estate portfolios worth $552 million held in funds managed by heavyweights Toesca SA and Banchile Inversiones could soon go on sale due to recent shareholder votes. That’s raising fears of a looming vicious cycle in Chile. Low prices prompted investors to give up and liquidate real estate investments, but the upcoming sudden supply of buildings could push prices down even further.

South Korea’s central bank held its base rate steady in a move that was widely anticipated but came alongside growing expectations that it could be gearing up to pivot toward policy easing in the coming months. The Bank of Korea on Thursday left its benchmark seven-day repurchase rate unchanged at a 15-year high of 3.50% for a 12th straight time—the longest such streak ever.

Just 19 of China’s 137 current electric car brands will be profitable by the end of the decade, leaving the rest to exit the industry, consolidate or battle for a minor market share, according to consultancy Alixpartners, Bloomberg News reported. A price war that has been running for almost two years has pressured margins at some Chinese EV makers, and could continue as dominate players like BYD Co. and Tesla Inc. seek to consolidate their dominant positions.

Britain's economy grew more quickly than expected in May, providing some momentum for the new government of Prime Minister Keir Starmer but adding to doubts about whether the Bank of England will cut interest rates next month, Reuters reported. Economic output increased by 0.4% in May, after zero growth in April, the Office for National Statistics said. A Reuters poll of economists had pointed to a 0.2% monthly increase. The strength of the upturn could dissuade the BoE from beginning to cut interest rates as soon as Aug. 1, its next scheduled monetary policy announcement date.

A company linked to the Chinese businessman who led the buyout of AC Milan in 2017 is being sued over unpaid debts by a group of investment firms, Bloomberg News reported. Five claims have been filed against British Virgin Islands-based Rossoneri Advance Co. Ltd. involving a combined $187 million in debt due and owed, according to court documents dated July 4. The five plaintiffs are suing for debt, damages, accrued interest and other claims.

A surprise return to profit has propelled Vietnam Airlines JSC to become the world’s best performing airline stock this year, shrugging off the risk of bankruptcy as the company’s post-pandemic recovery finally picks up momentum, Bloomberg News reported. The state-owned carrier has rallied 179% so far in 2024, lifted by a rebound in travel demand. That steered the company to post a bumper first quarter profit after more than four years of consecutive losses.

The system, which has fielded more than 50,000 applications since its creation and was one of the first of its kind in Europe, has been intensely scrutinized since February when a tribunal ordered the regulator to reassess its refusal to authorize the would-be chairman of two Irish investment funds, Bloomberg News reported.