Insolvency Guardian Media Centre
In this article Paul Pritchard, Managing Director of our European Tax Advisory team discusses how the deemed release rules apply to transactions in debt rights.
This is an extract from Tax Journal, first published on June 17, 2021. The whole publication is available at https://www.taxjournal.com/articles/-debt-restructuring-deemed-releases.
The impact of the pandemic may necessitate a financial restructuring of a companys liabilities. As part of the plan, steps to restructure external debts could be caught by the deemed release rules. For example, a distressed group buys back its debt at a discount to the amount of the liability owed, or the creditor company acquires or otherwise becomes connected with the debtor company. To mitigate ta…
Read the full article at: https://www.jdsupra.com/legalnews/debt-restructuring-deemed-releases-4373329/
SG/SM/20819
Following are UN Secretary-General Antnio Guterres remarks, as prepared for delivery, to the third Group of 20 (G20) meeting of finance ministers and central bank governors, held today:
We are now in the second year of a global pandemic that has killed 4 million people. Extreme climate events regularly devastate vulnerable communities. You have come together to determine the course of some of the most pressing issues we face: access to vaccines; extending an economic lifeline to the developing world; and more and better public finance for ambitious climate action.
A global vaccine gap threatens us all because as the virus mutates, it could become even more transmissible, or even more deadly. Pledges of doses and funds are we…
Read the full article at: https://reliefweb.int/report/world/middle-income-small-island-states-urgently-need-debt-relief-secretary-general-stresses
LAVAL, QUE. — After speaking to some 20 families who lost millions in deposits when local real estate developer Bel-Habitat went bankrupt last week, Laval Mayor Marc Demers is promising support.
“Given the magnitude of the situation, we have asked the general management to look at the tools we have available to help you,” he said at a July 6 city council meeting.
The Laval police department has opened an investigation and the mayor said “no effort will be spared” to shed light on this “unprecedented drama.”
The company was incorporated in 2010 and its majority shareholder is its president Luc Perrier.
Among the 234 unsecured creditors are more than a hundred buyers whose down payments total $18 million of the $26 million swallowed up i…
Read the full article at: https://montreal.ctvnews.ca/laval-police-investigate-after-homebuyers-lose-millions-when-real-estate-developer-goes-bankrupt-1.5502975
In 2020, the Dutch government, like many others, implemented various temporary measures aimed at providing immediate financial leeway to the business community to cope with the financial consequences of the pandemic. Such measures include non-tax schemes, like extended governmental business loan guarantee schemes and non-refundable temporary emergency schemes for job retention.
There are also several measures in the area of taxation. Some of these are more of a practical nature (e.g., how to apply tax treaties to cross-border workers who were forced to work from home), while others were designed to enhance companies cash flow position. One of the more significant measures concerned the possibility to obtain extraordinary deferral of pay…
Read the full article at: https://news.bloombergtax.com/daily-tax-report-international/impact-of-changes-to-dutch-tax-loss-rules-on-restructurings
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Crown Resorts has claimed it could default on hefty debts impacting thousands of innocent employees if its Melbourne licence is not renewed.
The companys Victorian operation, under the microscope of a royal commission into whether it can retain a licence, wrote a letter to the state government last week requesting a meeting to discuss its commercial affairs.
In hearings just a day earlier, the gaming giants executive chair Helen Coonan was grilled about theJuly 2 letter from Crowns external lawyer Arnold Bloch Leibler to Consumer Affairs, Gaming and Liquor Regulation Minister Melissa Horne.
Commissioner Ray Finkelstein said a plain English reading of the letter was that Crown Resorts was seeking to make sure that the commission doesnt m…
Read the full article at: https://canberraweekly.com.au/crown-resorts-reveal-looming-debt-breaches/
BSE has revealed the manner of dealing with companies undergoing Corporate Insolvency Resolution Process. BSE in a release said, “SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 (“LODR Regulations”) was amended in the year 2018 vide SEBI (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2018, and point 16 was inserted in Para A of Part A of Schedule III of LODR Regulations w.e.f. May 31, 2018, which mandated disclosures at various stages by companies undergoing Corporate Insolvency Resolution Process (“CIRP”). This was further amended by SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2021, which enhanced the disclosure requirement w.e.f. January 08, …
Read the full article at: https://www.zeebiz.com/market-news/news-bse-reveals-the-manner-of-dealing-with-companies-undergoing-corporate-insolvency-resolution-process-160339
Corporate bankruptcies have gone up
By the results of the first half of the year, the number of corporate bankruptcies in Russia has increased for the first time since 2017, according to the statistics published by the Fedresurs service on 7 July. In comparison with the first half of 2020, this year the growth has been 9%, up to 4,900 decisions on insolvency.
At the same time, a moratorium on bankruptcy was in effect in the country for half of the first half of 2020 it lasted from April 6 to January 7, 2021. At the beginning of April, 1,29 million companies and sole proprietors were subject to it, and as of December 31, 2020 515,000 companies and 1,6 million sole proprietors (14,6% of all companies registered in Russia and about 4…
Read the full article at: https://realnoevremya.com/articles/5682-number-of-personal-bankruptcies-doubles-in-tatarstan
Idaho is one of 15 states now agreeing to a controversial bankruptcy plan involving Purdue Pharma, with the state poised to receive tens of millions of dollars from the OxyContin maker if the deal is approved.
Two dozen states and D.C. originally opposed a $3 billion bankruptcy plan from Purdue Pharma and the Sackler family for their roles in the opioid crisis.
Just last month, Idaho Attorney General Lawrence Wasden blasted the Sacklers before a congressional committee. He was testifying in favor of a bill that would prevent people from using bankruptcy settlements to shield themselves from lawsuits if they havent declared bankruptcy themselves.
The Sackler family bears substantial responsibility for the opioid crisis ravaging our count…
Read the full article at: https://www.boisestatepublicradio.org/law-justice/2021-07-08/idaho-lifts-opposition-to-opioid-bankruptcy-settlement
Dang Tuan Anh, CEO of taxi firm Thanh Loi Group, said: “Every time there is an outbreak, I request banks to reduce interests on existing loans. But they only say they will consider.”
With over 600 vehicles operating in Hanoi and two neighboring provinces, the 20-year old company has been struggling amid the latest Covid wave with revenues plunging by 80 percent.
Bank debts, however, remain unchanged. Anh has been borrowing from friends and relatives, selling his own assets and borrowing from loan sharks to repay banks in time.
One bank offered a four-month debt extension, but he declined because the interest for those four months still had to be paid over the subsequent eight months, which could have become a bigger burden for the compa…
Read the full article at: https://e.vnexpress.net/news/business/economy/businesses-unhappy-with-lukewarm-bank-debt-restructuring-4306779.html
Iconic removalists WridgWays Australia has been placed into voluntary administration, leaving staff and contractors facing an uncertain future.
In response to a damning story by A Current Affair, WridgWays Australia CEO Kobus Fourie released a statement today confirming the news, adding that the majority of employees were stood down.
We are saddened by this turn of events, and will support our people as best as possible through this time, said Fourie.
WridgWays has a long history of supporting the Australian consumer with relocating, and we remain committed to completing any in progress consumer deliveries, and will work to ensure all customers receive their belongings.
As with many other iconic Australian businesses, WridgWays has bee…
Read the full article at: https://www.bigrigs.com.au/index.php/2021/07/08/removalists-pack-up-shop-leaving-contractors-short-changed/
BEIJING Chongqing Sincere Yuanchuang Industrial, a cash-strapped Chinese developer owned by Singapore’s richest property family, may undergo a court-led restructuring after a bankruptcy application was filed against it, according to sources familiar with the matter.
Sincere Property Holdings, the second largest shareholder of Chongqing Sincere, is preparing to work with stakeholders and creditors on a restructuring of the builder, said the sources.
City Developments Limited (CDL), owned by the billionaire Kwek family, has a 51 per cent stake in the developer.
A Beijing-based creditor of Chongqing Sincere submitted a bankruptcy petition against the company to the No. 5 Intermediate People’s Court in Chongqing, according to a July 5 f…
Read the full article at: https://www.straitstimes.com/business/companies-markets/cdls-sincere-unit-in-china-may-undergo-court-led-restructuring-0