All items from The COMI

Sir Richard Branson comments on laws of the United Arab Emirates and their effect on business.  This is from back in February.

Per www.arabianbusiness.com:

 Wednesday, 12 February 2014 9:06 AM Serial entrepreneur and billionaire Sir Richard Branson has told Arabian Business he was “flabbergasted” that the UAE did not have a bankruptcy law.
Branson, who has founded dozens of businesses under the Virgin brand, said providing bankruptcy protection was a priority for a region where millions of new jobs desperately need to be created.
“I’m flabbergasted to hear there’s no bankruptcy law [in the UAE],” Branson said, speaking exclusively to Arabian Business on the sidelines of the Government Summit in Dubai.
“What transformed Great Britain was, in about 1850 the bankruptcy law was brought in and people didn’t have to go to the watch house [jail] if they went bankrupt and they had a chance to start again.
“I would say that that would be one of the first things [Gulf governments] should do if they want to encourage entrepreneurship, because who’s going to take a risk if there’s no protection?”



From The COMI
Posted 2 days 20 hours ago

An interesting post from the Bankruptcy Blog about a recent ruling by Judge Rakoff concerning the interplay of section 502(d) of the Bankruptcy Code and provisions of the Securities Investor Protection Act (SIPA).

Per http://business-finance-restructuring.weil.com/claims/the-interplay-between-section-502d-of-the-bankruptcy-code-and-sipas-requirement-of-prompt-return-of-customer-funds/:

ANDREA SAAVEDRA on JULY 29, 2014 ·

Canons of statutory construction are used frequently to resolve ambiguities in the Bankruptcy Code. In a recent decision arising out of the Madoff liquidation, Judge Rakoff of the Southern District of New York had to implement more than a few to creatively resolve a potential conflict between the Bankruptcy Code and the Securities Investor Protection Act (SIPA). He also had to take a practical, yet expansive, view of what the word “prompt” can mean when managing the untangling of one of the largest financial frauds in American history.

The Facts



From The COMI
Posted 2 days 21 hours ago

Per www.globalinsolvency.com:

Tue., July 29, 2014  Portugal's central bank said late on Monday that if Banco Espirito Santo posts a loss larger than its existing capital cushion of 2.1 billion euros ($2.8 billion), a capital increase will be used to guarantee adequate solvency levels, Reuters reported. Earlier, Expresso newspaper's online edition said BES was likely to report a loss of around 3 billion euros on Wednesday after having to assume additional debt liabilities linked to the troubled Espirito Santo group of its founding family. BES officials were not immediately available to comment. Three of the Espirito Santo family holding companies, including ESFG, which holds a 20 percent stake in BES, have requested creditor protection this month.



From The COMI
Posted 2 days 22 hours ago

Per www.globalinsolvency.com:

Thu., July 24, 2014The number of recorded personal insolvencies has reached its lowest level in nearly a decade, according to official figures, BBC News reported. The Scottish government said more people were using its debt payment programmes to manage their finances. Enterprise Minister Fergus Ewing described the figures as "encouraging". However, the figures also showed a rise in corporate insolvencies, with 250 Scottish firms failing in the second quarter of 2014. The official statistics published by the Accountant in Bankruptcy (AiB) showed a 25.8% decrease in the number of personal insolvencies from the same quarter the previous year. The recorded number of personal insolvencies, including both bankruptcies and protected trust deeds (PTDs), are now at their lowest recorded level since the first quarter of 2005-06. PTDs have fallen in popularity as Scots take advantage of government debt payment programmes (DPPs), which allow people to pay off their debt over a longer period rather than transfer their estate to a trustee to avoid bankruptcy, as is necessary under a PTD.



From The COMI
Posted 1 week 1 day ago

Per the Wall Street Journal:

July 22, 2014



From The COMI
Posted 1 week 2 days ago

Per www.globalinsolvency.com:

Thu., July 3, 2014Malaysian state investor Khazanah Nasional Bhd plans to take Malaysian Airline System Bhd (MAS) private as the first step in a major restructuring of the loss-making airline following the disappearance of its Flight MH370, two people with direct knowledge of the matter told Reuters. A de-listing would pave the way for Khazanah to revive the ailing carrier, possibly by selling off its profitable engineering, airport services or budget airline units, trimming its bloated payroll and installing a new management team. The restructuring and potential sale of MAS is politically fraught due to heavy opposition to job losses from its powerful labor union, which has hampered previous revival plans, and its status as Malaysia's national flag-carrier. At MAS's current price of 21 sen per share, majority shareholder Khazanah would need to pay only 1.05 billion ringgit ($328 million) for the 30.6 percent of shares it does not already own, according to Reuters calculations.



From The COMI
Posted 2 weeks 5 days ago