Insolvency Guardian Media Centre
Watching scientists, politicians and journalists struggle to compare national death rates from the coronavirus pandemic, I had an acute case of dj vu. Though the virus may be novel, the confusion generated by inconsistent data standards is anything but. Its something Ive observed closely for many years in studying public sector debt.
Such league table comparisons in both cases are simply not reliable. The pandemic has shown that public health data and economic data share the same flaws and challenges regarding basic accounting issues. Chief among these is how different countries measure data and how to harmonise data that comes from lots of different sources.
Take harmonisation. The UK is widely reported to have the highest number of co…
Read the full article at: https://theconversation.com/coronavirus-deaths-and-swelling-public-sector-debt-share-a-data-quality-problem-141492
As a growing number of oilpatch companies arebeing pushed toward bankruptcy across NorthAmerica,a number ofCanadianplayers are working with creditors andmaking moves that experts say are aimed at avoiding such a fate.
Bow River Energy, Sequence Energy and Delphi Energy have filed for protection under the Companies’ Creditors Arrangement Act(CCAA) to come up with a restructuring plan with creditors to try to avoid receivership or bankruptcy. It allows a company to continue operating, maintain staffand keep the board of directors and executives in charge.
Experts say there is a recent uptick in the number of CCAA cases, which speaks to how some executives still see a future for their companies despite current financial hardships.
“They …
Read the full article at: https://www.cbc.ca/news/business/ccaa-insolvency-oilpatch-1.5632074
The economic downturn triggered by the Covid-19 pandemic has caused unprecedented havoc on businesses in India in almost every sector, which has been dubbed by the Organization for Economic Cooperation and Development (OECD) as the biggest peacetime downturn in a century.
To offer respite to stressed businesses, the government of India has announced the suspension of corporate insolvency under theInsolvency and Bankruptcy Code, 2016 (IBC)for a period of six months commencing 25 March 2020. This suspension is given effect through an IBC (Amendment) Ordinance, 2020 effective from 5 June 2020.
Prior to this, the government of India had amended the IBC to increase the minimum amount of default for initiating an insolvency resolution process…
Read the full article at: https://www.pinsentmasons.com/out-law/analysis/covid-19-indian-insolvency-ordinance
Pramod Mittal and his two colleagues were arrested and released in Bosnia after paying a hefty 12.5 million in July last year, Reuters had reported. (Reuters/File)
Pramod Mittal, brother of UK-based steel magnate Lakshmi Mittal, has reportedly been declared bankrupt by the Insolvency and Companies Court in London with debts amounting to over 130 million, a report in The Times said.
Mittal heads the supervisory board and co-owns metallurgical coke producer Global Ispat Koksna Industrija Lukavac (GIKIL) in northern Bosnia, one of the countrys biggest exporters. According to The Times report, Mittals bankruptcy stems from his acting as a guarantor in 2006 for …
Read the full article at: https://indianexpress.com/article/business/companies/pramod-mittal-brother-of-lakshmi-mittal-declared-bankrupt-by-uk-court-6483327/
The legislation has introduced new corporate restructuring tools and temporary easements, with the aim of giving distressed businesses the breathing space they need to get advice and seek a rescue.
One of its key provisions is the introduction of the new role of a monitor to oversee the corporate moratorium it introduces an extendable 20 working day period giving businesses protection from creditor action while they seek professional restructuring advice.
A monitor must be a licenced insolvency practitioner and the Insolvency Service has provided guidance on their role and responsibilities.
The Act also extends the suspension of termination clauses when a company enters into an insolvency procedure and introduces a new restructuring pl…
Read the full article at: https://www.accountancydaily.co/major-corporate-insolvency-regime-changes-force
61% of businesses in the region expect a significant or worse decline in annual revenue in the wake of COVID-19, new survey shows.
While still in its infancy, many companies are beginning to formulate their recovery strategies from COVID-19.
However, as more economies launch into the next phase of relaxed lockdown measures, what organisations plan to do differently post-pandemic also vary across markets based on the severity of business impact, according to a new survey by Korn Ferry.
In South-east Asia, 61% of companies are expecting significant (or worse) impact to their annual revenue this year, compared to 51% across Asia-Pacific and 50% globally.
This expectation, reported Korn Ferry, will see 67% of companies in ASEAN exercising m…
Read the full article at: https://hrmasia.com/companies-in-south-east-asia-prepare-for-business-restructure/
Private sector participation will be essential to ensuring the success of a debt relief initiative launched by the Group of 20 major economies for the world’s poorest countries, the chief economist of the International Monetary Fund said on Monday.
The G20’s offer to suspend official bilateral debt service payments by the poorest countries would likely need to be extended beyond the end of the year, Gita Gopinath told an online event hosted by the Center for Strategic and International Studies think tank.
“We absolutely would want the private sector to also be involved,” she said. “That would be essential now going forward.”
The G20 secretariat last week said 41 of 73 eligible poor countries had applied for the temporary suspension of…
Read the full article at: https://www.deccanherald.com/business/private-sector-participation-in-g20-debt-relief-essential-imf-855276.html
Stuff-co-nz
Sika Homes won awards for its builds, including for this home in Onehunga.
Auckland housebuilder Sika Homes has gone into liquidation.
The company was paid $121,000 through the Government wage subsidy scheme, but was put into liquidation on June 18.
Liquidators Steven Khov and Kieran Jones said they had been advised Sika Homes’ failed because excessive labour costs and other project cost overruns eroded profit and margins resulting in an unsustainable business model.
“We are advised by the director that cost overruns totalling over $400,000 across two specific projects have caused the Companys cashflow to become expended,” they said in their first liquidation report filed with the Companies Office.
READ MORE:
* Wagam…
Read the full article at: https://www.stuff.co.nz/business/121986119/auckland-housebuilder-sika-homes-goes-bust
On 26 June the long-awaited Corporate Insolvency and Governance Act 2020 came into force and introduced emergency measures to provide protection to directors of companies which continue to trade notwithstanding the threat of insolvency, and to prevent, where possible, companies entering into insolvency due to COVID-19.
- Wrongful trading provisions in the Insolvency Act 1986 will be suspended retrospectively between 1 March 2020 and 30 September. During this time if a director is otherwise found liable for wrongful trading, when considering the contribution a directors is required to make to a company’s debts, the court is entitled to assume the director was not responsible for worsening the financial position of the company.
- The Act in…
Read the full article at: https://www.jdsupra.com/legalnews/implications-of-new-moratorium-and-74363/
THE COMPANY behind the Bouldercombe Royal Hotel and associated hotels has been officially wound up, with more than $800,000 that will remain in outstanding debt.
Roly Investments QLD Pty Ltd with director Roland Gooding operated businesses at the Royal Hotel, Bouldercombe, Princes of Wales Hotel, Blackall and Commercial Hotel, Longreach.
Appointed liquidator David Hambleton of Rodgers Reidy submitted paperwork to the Australian Securities and Investments Commission on May 27 to cease the administration.
Liquidators were appointed to the company on October 10, 2018.
An amount of $804,930.61 is still owed to creditors.
Of this, $12,434 is for wages and superannuation to one creditor.
Two secured creditors are owed $599,680.9. Around $40,0…
Read the full article at: https://www.themorningbulletin.com.au/news/cq-pub-liquidation-finalised-with-800k-debt-outsta/4047633/
German financial services company Wirecard AG’s share price skyrocketed some 196% within the first 30 minutes of trading on Monday 29 June 2020, giving the stock a much-needed respite after last weeks massive sell-off.
The troubled payments solutions provider saw its shares open the session at 1.70 a share nearly 31% higher than last Fridays closing price of 1.30, before rallying further to an intraday high of 3.85 at 09:30 CET.
Evidently, the sudden spike had not been predicated on any company announcements, major analyst reports, or market sentiments.
This had prompted some news outlets to report the spike as a dead cat bounce. A dead cat bounce is defined as a temporary recovery in markets after a substantial fall, caused by specul…
Read the full article at: https://www.ig.com/au/news-and-trade-ideas/wirecard-share-price-soared-200–despite-ongoing-troubles-200630
On 26 June, the long-awaited Corporate Insolvency and Governance Act 2020 became law providing the UK and Northern Ireland with temporary and permanent changes to insolvency law aimed at helping businesses manage the economic implications of COVID-19 including:
Permanent measures
Company moratorium a breathing space against creditor action, initially for 20 business days but extendable, and proposed by directors of a company who will remain in control but overseen by a monitor who will be an officer of the court and a licensed insolvency practitioner. The moratorium will give companies a “payment holiday” for pre-moratorium debts that have fallen due either before or during the moratorium period unless the debts fall within an exclus…
Read the full article at: https://www.jdsupra.com/legalnews/corporate-insolvency-and-governance-act-60629/