United States

Ferry operator Moby SpA is suing a number of bondholders including Sound Point Capital Management in a New York court, alleging they made unlawful attempts to take control of the firm in a debt dispute, Reuters reported. Moby, which runs routes between the Italian mainland and islands such as Sardinia, says a bondholder group which also includes BlueBay Asset Management, and Cheyne Capital Management, attempted an “egregious tortious interference” to “unlawfully” take control of the company, according to documents filed on February 22. It’s now seeking damages from the funds.
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A lawyer for Frontera Holdings LLC, the owner of a natural gas plant near the U.S.-Mexico border, told a judge on Tuesday that it could face fines in Mexico after it was unable to provide electricity for several days due to the brutal winter storm that hit Texas, but that it intends to proceed with its proposed restructuring as planned, Reuters reported. Frontera attorney Matthew Fagen of Kirkland & Ellis told U.S.
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Puerto Rico would substantially reduce its core government debt load under a new deal announced on Tuesday, but obstacles remain for the U.S. territory’s exit from bankruptcy, Reuters reported. The island’s federally created financial oversight board said that its agreement with certain bondholders was a major step toward resolving the bankruptcy, which began in 2017 in an effort to restructure about $120 billion of debt and other liabilities, including unfunded pensions.
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U.S. Treasury Secretary Janet Yellen said that the U.S. will keep tariffs imposed on Chinese goods by the former Trump administration in place for now, but will evaluate how to proceed after a thorough review, Reuters reported. “For the moment, we have kept the tariffs in place that were put in by the Trump administration ... and we’ll evaluate going forward what we think is appropriate,” Yellen told the cable news network, adding that Washington expected Beijing to adhere to its commitments on trade.

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The COVID pandemic has added $24 trillion to the global debt mountain over the last year a new study has shown, leaving it at a record $281 trillion and the worldwide debt-to-GDP ratio at over 355%, Reuters reported. The Institute of International Finance’s global debt monitor estimated government support programmes had accounted for half of the rise, while global firms, banks and households added $5.4 trillion, 3.9 trillion and $2.6 trillion respectively.
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Satellite operator Intelsat SA said on Friday it has filed a restructuring plan backed by some of its creditors, in a bid to reduce debt and emerge from bankruptcy in the second half of the year, Reuters reported. The plan aims to reduce debt by more than half to $7 billion and has the support of holders of about $3.8 billion of its debt, the company said. It has sought a hearing on Mar. 17 for a court approval to solicit votes on the plan.

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Offshore drilling rig contractor Seadrill has filed for bankruptcy protection at a U.S. court, it said on Wednesday, the second time in four years the company has entered into a chapter 11 restructuring, Reuters reported. The Oslo-listed group controlled by Norwegian-born billionaire John Fredriksen returned to court along with several subsidiaries after failing to win consent from bank lenders to postpone payments on $5.7 billion of debts. Its total debts and liabilities stood at $7.3 billion at the end of the third quarter of 2020.

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Seadrill Ltd, the rig operator controlled by billionaire John Fredriksen, filed for bankruptcy protection for its Asian units after the economic downturn triggered by the coronavirus pandemic worsened a crisis in offshore oil drilling, Bloomberg News reported. The filing in U.S. Bankruptcy Court in the Southern District of Texas is the second within four years by the driller that was once the industry’s largest by market value. The filing covers Seadrill GCC Operations, Asia Offshore Drilling Ltd., Asia Offshore Rig 1 Ltd., Asia Offshore Rig 2 Ltd.

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U.S. Secretary of State Antony Blinken has called for China to condemn the military coup in Myanmar and warned Beijing that Washington will work with its allies to hold the People’s Republic accountable for what he described as its efforts to threaten international stability particularly in the Taiwan Strait, CNBC.com reported. Blinken spoke with his counterpart Foreign Minister Yang Jiechi late Friday in the first conversation between senior U.S. and Chinese officials since President Joe Biden took office. The top U.S.
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Services companies in the U.S. and Asia gained ground in January, while a continued contraction in the eurozone threatened a double-dip recession, surveys of purchasing managers showed, the Wall Street Journal reported. The eurozone economy shrank in the final three months of last year amid high Covid-19 infection rates and related restrictions posed the risk of a double-dip recession. Surveys compiled by data firm IHS Markit released Wednesday showed the eurozone’s service sector fell to 45.0 from 46.4 in December.
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