Insolvency Guardian Media Centre
Restructuring Update, New Business to be Vended In
Sydney, July 21, 2021 AEST (ABN Newswire) – As foreshadowed in its NSX announcement dated 11 June 2021, the Board of a2a GN Limited (
NSX:A2A) has engaged with advisors in Australia and Malaysia to urgently review alternate funding and restructuring options. Whilst reviewing various proposals, the Board prudently moved to temporarily suspend business operations.
Following diligent consideration of the options available and acting in the best interests of all stakeholders, the Board advises it has resolved to progress a restructure of the Company. Subject to shareholder approval in an EGM, date of which is to be confirmed, NSX and any relevant regula…
Read the full article at: https://www.abnnewswire.net/press/en/106212/A2A-GN-Ltd-(NSX-A2A)-Restructuring-Update-New-Business-to-be-Vended-In.html
CORPORATE insolvencies rose by almost a fifth last month to one of the highest figures seen since the start of the pandemic.
A representativeof the insolvency industry in Dorset and Hampshire says the delay in lifting the final lockdown restrictions may have contributed to the rise.
Statistics for June showed corporate insolvencies in England and Wales rose 19 per cent on the previous month, to 1,207.
That was 62.9 per cent higher than the figure for June 2020.
Personal insolvencies rose 15.8 per cent to 9,836 month on month and were 18.8 per cent higher than the same month the previous year.
Garry Lee, chair of insolvency and restructuring trade body R3s Southern and Thames Valley region, said: The increase in corporate insolvencies be…
Read the full article at: https://www.bournemouthecho.co.uk/news/19455452.business-insolvencies-rose-fifth-june/
Photo courtesy of Luby’s Cafe
Shareholders of cafeteria operator Lubys Inc. will receive nearly 4% more from the companys liquidation than had been previously projected, a per-share bump of 15 cents, according to management.
In a securities filing, the company attributed the sweetened forecast to a combination of higher-than-expected proceeds from recent sales and improved results from assets that have not yet been divested.
Lubys said it sold four properties during June for $9.1 million in total. The transactions raised the number of restaurants sold to date in fiscal 2021 to seven.
It agreed to sell its Fuddruckers fast-casual burger business in mid-June to Black Titan Franchise Associates, an affiliate of a current franchisee, f…
Read the full article at: https://www.restaurantbusinessonline.com/financing/lubys-liquidation-proves-more-lucrative-expected
The 49-year-old Mr Papas, also known as Basile Papadimitriou, is named as a respondent along with Forum Finance and Forum Enviro in civil court claims relating to alleging schemes to defraud Westpac, French bank Socit Gnrale, and Sumitomo Mitsui Banking of Japan by presenting false invoices and documents for financing.
The director has placed Iugis into voluntary administration. The administrator is now managing the company on a day-to-day basis, Forum Group executive general manager of operations Craig Rollinson said in an email to Iugis staff on July 9, obtained by the Financial Review.
Whilst we appreciate this is a difficult time, the management team is working to provide the best possible outcome for both the company and employees….
Read the full article at: https://www.afr.com/companies/financial-services/staff-at-papas-iugis-left-shocked-as-jobs-lost-20210716-p58aag
The Insolvency and Bankruptcy Code (IBC) is broke. It must be fixed, both to increase recovery and to redeploy the assets locked up in failed firms.
While 4,540 insolvency cases have been admitted for Corporate Insolvency Resolution Process (Cirp), significant recovery has materialised only in a handful of cases, such as Essar Steel and Bhushan Power and Steel. The average realisation has been 40%; that for the largest 100 cases, 36%. The Videocon resolution, in which creditors accepted a 95% haircut, has evoked a protest from the National Company Law Tribunal (NCLT), which has to approve Cirps.
Original Sin
In the absence of a market for corporate bonds, large projects in India are funded by banks. The project developer needs to convince …
Read the full article at: https://economictimes.indiatimes.com/opinion/et-commentary/insolvency-and-bankruptcy-code-is-broke-it-needs-to-be-fixed-immediately/articleshow/84595207.cms
A stark divide has emerged between the more developed world and the less developed world in the economic recovery from the Covid-19 pandemic. Wealthier nations have secured most of the global vaccine supply and have had the capacity to deliver massive economic stimulus packages. In poorer nations, vaccination rates remain dismally low, and the impact of the pandemic is compounded by a looming debt crisis. As revenues have crashed and the strain on healthcare and social assistance systems has soared, many less developed countries face crippling debt burdens which hinder their ability to fight the pandemic and invest in sustainable development, and which threaten to increase inequality and depress global economic output for years to come….
Read the full article at: https://theowp.org/urgent-debt-relief-measures-needed-to-accelerate-low-income-countries-pandemic-recovery/
Chapter 11 bankruptcy protection is supposed to allow companies to shed debt and get a fresh start. Ideally, creditors recover most of what theyre owed as the restructured firm begins turning a profit.
Yet, more companies are liquidated than rebuilt, giving up the second chance at success that the law aims to encourage. In the process, these liquidations ultimately shortchange creditors by billions of dollars a year, according to new research by Harvard Business School Assistant Professor Samuel B. Antill, who studied three decades of court filings.
Chapter 11 allows for reorganization, which sounds like such a great thing. People get to keep their jobs, the creditors get paid equity, and the customers don’t lose this business that th…
Read the full article at: https://hbswk.hbs.edu/item/why-bankruptcy-spells-death-for-too-many-businesses
Entains board has secured a first lien term loan, valued at $1.12bn, to refinance the companys long-term corporate debt holdings.
The FTSE100 gambling group will use the proceeds of its new loan to refinance its outstanding loan debt, which currently stands at $774m and was due to mature from 29 March 2024.
The transaction sees Entain expand its loan-term maturity rates to 29 March 2027, priced at the London Interbank Offered Rate plus 250 basis points, or 2.5 per cent.
The loans outstanding $350m will be made available to Entain for the purpose of accelerating the firms corporate development, including mergers and acquisition activities.
Duties carried by the loan will be maintained by the subsidiaries of Entain Holdings Gibralta…
Read the full article at: https://casinobeats.com/2021/07/20/entain-refinances-its-long-term-corporate-debt/
Nixon Hire returned to profit last year following the completion of a group restructuring which led to the closure of six depots.
The industrial equipment company, formed 52 years ago and headquartered in Newcastle, initially operated as a plant hire company with room to service no more than three machines at a time.
The company has since grown to own and operate depots across the North and Scotland, providing plant, tools, accommodation units, portable toilets and site equipment for hire.
Latest accounts for John Nixon Ltd which trades as Nixon Hire outline how the firm has spent more than a year restructuring the business, closing loss-making depots and focusing on maximising revenues.
Over the course of 2020 depots were closed in …
Read the full article at: https://www.business-live.co.uk/professional-services/tynesides-nixon-hire-returns-profit-21097571
The City regulator has clamped down on debt firms after finding some were potentially pushing vulnerable customers towards insolvency in order to earn higher fees.
The Financial Conduct Authority said some firms appeared to have manipulated peoples income and spending and encouraged them to seek individual voluntary arrangements (IVAs), which can ultimately lead to bankruptcy.
As a result of the review, the FCA wrote to five firms identifying significant concerns over their practices. These five companies have now stopped providing regulated debt advice until further notice, and the watchdog used its formal powers to remove another companys permission to give advice.
The clampdown involves so-called debt packager firms, which seek out peopl…
Read the full article at: https://www.theguardian.com/business/2021/jul/20/city-watchdog-clamps-down-on-debt-firms-over-quality-of-advice
South West businesses are being urged to take early action if their finances are under strain after new Government figures showed corporate insolvencies have hit their third highest monthly total since the start of the pandemic.
Statistics reveal 1,207 companies registered as insolvent in June 2021 across England and Wales – a 63% rise in the number for June 2020.
The numbers are, however, lower than before the pandemic, due to fewer compulsory liquidations during a time when there has been widespread Government support for flailing businesses.
But experts are alarmed at the growth in creditors voluntary liquidations (CVLs), where firms unable to pay debts opt to go into liquidation.
According to R3, the i…
Read the full article at: https://www.business-live.co.uk/enterprise/troubled-south-west-businesses-urged-21099794
A landmark personal bankruptcy ruling by a court in southern Chinese city of Shenzhen could pave the way for the nationwide rollout of a legal system that would allow individuals and private businesspeople who cant repay their loans to undergo debt workouts or be declared bankrupt.
The Shenzhen Intermediate Peoples Court approved a bankruptcy restructuring plan (link in Chinese) for Liang Wenjin, a businessman who racked up 750,000 yuan ($155,544) in debt as of March after a failed business venture, according to a statement posted by the court on Monday. Liang was ordered to repay the principal to his creditors within three years but was exempted from paying interest and late-payment penalties.
Although a personal bankruptcy law has bee…
Read the full article at: https://www.caixinglobal.com/2021-07-20/shenzhen-court-issues-landmark-ruling-on-personal-bankruptcy-101742870.html