Asian stocks sank on Monday amid fears of a potential collapse of the beleaguered Chinese real estate company Evergrande could lead to a wave of defaults in China's bloated housing market that could extend from the second-largest economy to the rest of the world. The company must pay this week interests on loans and bonds and experts fear it will not be able to honour creditors.
A U.S. bankruptcy judge rejected a US$ 2.4 billion financing plan for struggling LATAM Airlines on the grounds that a convertible loan included as part of the package would amount to “improper” treatment of other shareholders.
LATAM Airlines Group's U.S. bankruptcy filing last week will delay its potential bailout in Brazil to at least July and also push back aid to its rivals at least through the end of June.
LATAM Airlines Group, the continent's largest carrier, filed for U.S. bankruptcy protection, Chapter 11, on Tuesday, becoming the world's largest carrier so far to seek an emergency reorganization due to the coronavirus pandemic. The filing includes Latam Peru, Chile, Ecuador, and Colombia, but leaves out Latam Brazil, Argentina and Paraguay.
The more than a century old car rental firm Hertz Global Holdings filed for bankruptcy protection on Friday after its business all but vanished during the coronavirus pandemic and talks with creditors failed to result in needed relief.
J.C. Penney Co Inc filed for bankruptcy protection on Friday with plans to permanently close some stores and also explore a possible sale, making it the latest brick-and-mortar retailer to crumble as prolonged store closures in response to the COVID-19 pandemic drive a final stake through long-troubled businesses.
Sydney-based consultancy CAPA Center for Aviation warned in a statement on Monday that most of the world's airlines will be bankrupt by the end of May. Airline carriers are suspending routes for March, April, and May, and a full grounding of fleets has yet to be ruled out as flight restrictions have been placed across the world, spurring a collapse in demand, due to the Covid-19 pandemic.
Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, Bloomberg reported on Wednesday, citing people with knowledge of the plans.
Terra Forte, one of the largest Brazilian coffee exporters, has filed for bankruptcy protection in a Sao Paulo state court, lawyers for the company said. Law firm Freire, Assis, Sakamoto e Violante said Terra Forte was looking to restructure 1.1 billion reais (US$ 288.2 million) in debt.
Outgoing President Michel Temer issued an executive order that allows foreign groups to own 100% of a Brazilian airline. Previously, non-Brazilians were limited to 20% of shares. The decision occurs in the midst of a bankruptcy proceeding filed by Avianca Brasil.