Tag Archives: Bankruptcy / Company Bankruptcy

BHP, Vale Samarco JV filed for Brazilian bankruptcy protection | Instant News


FILE PHOTO: Brazilian mining company Vale SA logo seen in Brumadinho, Brazil January 29, 2019. REUTERS / Adriano Machado / File Photo

RIO DE JANEIRO (Reuters) – Samarco Mineracao SA, a joint venture between Brazilian miner Vale SA and BHP Group Ltd, has filed for bankruptcy protection to prevent creditor claims from affecting its operations, Vale said in a securities filing Friday.

The collapse of the dam at the Samarco mining complex in 2015 killed 19 people and severely polluted the Doce River with mining waste, one of Brazil’s worst environmental disasters. The facility, which resumed production in December, was the focus of significant litigation from bondholders with nearly $ 5 billion in debt.

“The filing (judicial reorganization) is needed to prevent ongoing legal action … from affecting Samarco’s ability to produce, send, receive for its exports and to fund normal activities,” the company said.

Vale said the filing for bankruptcy protection would not affect Samarco’s ability to pay compensation to those affected by the 2015 dam explosion. It said negotiations outside the court with creditors had slowly failed over time.

The court reorganization request, filed in the state of Minas Gerais, is roughly similar to the United States’ Chapter 11 bankruptcy filing.

Samarco has $ 4.7 billion in financial debt from unrelated parties, Vale said. In the years following the Samarco disaster, Samarco has negotiated with creditors to reach a restructuring agreement. However, those talks slowed down in 2019 following changes to dam regulations in Brazil, which materially affected operations at Samarco, Vale said.

In 2019, another dam exploded at the Vale mine in Brazil, killing some 270 people and prompting tightening of rules governing mining dams.

Most of the debt is now held by “investors active in distressed asset markets,” rather than original bondholders at the time of the disaster, Vale said.

Reporting by Gram Slattery; Edited by Christian Plumb and Will Dunham

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Italy guaranteed Greensill’s loan worth 86 million euros to steel company Gupta, the filing said | Instant News


LONDON, March 19 (Reuters) – The Italian government guaranteed an 86 million euro ($ 102 million) loan from Greensill Bank, part of the collapsed Greensill Capital group, to one of the companies of steel magnate Sanjeev Gupta, according to accounts filed with the Italian firm. the registry in the last few weeks.

The company, Liberty Magona SRL, secured guarantees from SACE SpA, Italy’s state-controlled export credit agency, for loans under measures to help the company deal with the coronavirus crisis, according to Liberty Magona’s account for the period from January 1, 2019 to June 30, 2020 which includes post-year event material information.

Piombino-based Liberty Magona, which makes galvanized steel, said the three-year loan was taken out in late August last year to bolster its finances at a time of weaker demand for its products due to the pandemic.

Italy’s Ministry of Economy and Finance did not immediately respond to a request for comment. The GFG Alliance and Greensill declined to comment on the loan.

The German financial regulator has filed a criminal complaint against Bremen-based Greensill Bank.

The Greensill Capital Group filed for bankruptcy protection in the UK and Australia this month, citing a $ 5 billion exposure to the GFG Alliance of India-UK entrepreneurs Gupta. It is said that the Gupta company began failing to fulfill its obligations.

GFG, an umbrella company for the steel, aluminum and energy company network Gupta, said last week it wanted to secure additional working capital facilities to help it face challenging market conditions but also be operationally strong and benefit from a buoyant steel market.

The GFG Alliance employs 35,000 people in 30 countries, according to its website. In Britain, the opposition Labor Party says the government should consider nationalizing companies if it cannot secure the financial support it is trying to attract.

Italy is not the only country that provides guarantees to the Gupta company. The Scottish government provided 575 million pounds bail to the group in 2016, Reuters reported in 2019, citing people with knowledge of the matter.

British media have reported that the London government has also secured hundreds of millions of loans to the GFG Alliance or related companies under the Coronavirus lending scheme.

$ 1 = 0.8391 euro Reporting by Tom Bergin; Edited by Howard Goller

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German lawmakers turn their attention to the finance minister in the failure of Wirecard’s scam | Instant News


FRANKFURT (Reuters) – Just overthrowing Germany’s top financial regulator last week, lawmakers turned their attention to finance minister Olaf Scholz and his deputy Joerg Kukies.

FILE PHOTO: German Finance Minister Olaf Scholz attends a hearing in the lower house of the Bundestag parliament in Berlin, Germany, December 9, 2020. REUTERS / Hannibal Hanschke

As their investigation into the Wirecard collapse has escalated, it has placed the center of Germany’s biggest fraud in national elections in which Scholz wants to run for chancellor.

“The focus of the parliamentary inquiry will increasingly shift to the role of Scholz and his ministry,” said Florian Toncar, a lawmaker involved in the investigation.

The probe into a once-worth $ 28 billion payment company boom and hailed as a German success story has embarrassed the centric coalition that governs the country.

Scholz and Kukies, who deny responsibility for the failure that led to Wirecard’s downfall, have responded with reforms to BaFin’s watchdog structure and leadership. They will announce further changes on Tuesday.

But lawmakers are growing impatient, with some like Danyal Bayaz saying Scholz has been slow to respond.

“The tough question of political responsibility is only starting now,” Fabio De Masi, one of the lawmakers pushing for a parliamentary inquiry into the matter, told Reuters.

Scholz’s Social Democratic Party (SPD) has been in a coalition government with Christian Democrat Angela Merkel (CDU) for years and she hopes to replace him as chancellor in elections later this year following his decision to retire.

But the SPD is struggling with voters, voting far behind the CDU and the Greens, while criticism of Scholz also comes from within Merkel’s party.

“The consequences for the finance ministry are now over,” said CDU MP Hans Michelbach.

KUKIES CONNECTIONS

Kukies’ role is also under close scrutiny and lawmakers have highlighted the various discussions he has had with regulators, Wirecard executives, bankers and others.

The Ministry of Finance says this is part of its job.

Lawmakers said they also wanted to examine a 100 million euro ($ 121 million) loan to Wirecard by a subsidiary of state bank KfW in September 2018, about two years before its collapse.

A person with knowledge of the matter told Reuters the money was not guaranteed and that 90% of loans by IPEX bank KfW had been written off.

The finance ministry said that the supervisory board of the bank, where Kukies sat, was not involved and only became aware of the loan in the middle of last year.

Lawmakers also asked for details of communications between Kukies and the CEO of Goldman Sachs in Germany, his former employer, said De Masi.

Goldman Sachs declined to comment, citing Wolfgang Fink’s statement that he had no contact with officials at Wirecard.

The Ministry of Finance also said there was no contact yet.

German lawmakers are not the only ones looking at the root cause of BaFin’s problems in the finance ministry, a weakness also marked by European regulators last year.

Hans-Peter Burghof, a professor at the University of Hohenheim, said the ministry had in the past few years employed many of the agency’s top staff. “They lost this spirit of independence.”

Additional reporting by Patricia Uhlig in Frankfurt and Christian Kraemer in Berlin; Edited by Alexander Smith

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The Italian Ministry of Industry gave the green light for the acquisition of OVS Stefanel | Instant News


VENICE (Reuters) – Italy’s Ministry of Industry on Thursday gave the green light for the acquisition of street fashion brand Stefanel by clothing retailer OVS, a union member said.

The retailer is in exclusive talks to buy Stefanel, which is under a special administration, for a total of 3.2 million euros.

OVS will buy the brand and 23 stores from a total of 27 stores, but will not acquire Stefanel’s headquarters, Margherita Grigolato, of the FILCAMS-CGIL union told Reuters.

Reporting by Riccardo Bastianello, written by Giulia Segreti, editing by Francesca Landini

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Canadian fashion mogul Peter Nygard has been indicted in the US on charges of sex trafficking | Instant News


WINNIPEG, Manitoba / NEW YORK (Reuters) – Canadian fashion personality Peter Nygard was charged on Tuesday with sex trafficking, blackmail and other crimes targeting dozens of women and girls for more than a quarter of a century in three countries, US authorities said.

Canadian police arrested Nygard in Winnipeg, Manitoba, on Monday at the request of the US government under the country’s extradition treaty.

Acting US Attorney Audrey Strauss in Manhattan said Nygard, 79, had since 1995 used his influence and business to “recruit and retain” victims in the United States, Canada and the Bahamas to satisfy himself and his colleagues sexually.

“Mr Nygard strongly denies all charges and hopes to be confirmed in court,” said his lawyer, Jay Prober.

Nygard wore a white face mask, gray T-shirt, and sweatpants, with his long white hair in a bun, on his first appearance in the Winnipeg courtroom.

She was taken away in handcuffs and leg chains. Nygard plans to seek bail, and his next trial is scheduled for January 13, 2021.

Nygard also faces a class action civil lawsuit in Manhattan by 57 unnamed women who accused him of sexual assault. He denied wrongdoing.

Born in Finland, Nygard grew up in Manitoba, eventually running his own clothing company and becoming one of the richest men in Canada.

Authorities said that the victims were assaulted by Nygard or his associates, with some sedated to ensure they met his sexual demands, and that Nygard often targeted victims who were from disadvantaged backgrounds or had been abused.

The nine-count indictment says Nygard used various means to recruit victims.

These allegedly include a company-funded “Indulgence Party” named for their free food, drink, and spa services, and held on its properties in Marina del Rey in California and the Bahamas.

The indictment says Nygard took some of the victims – he called them “girlfriends” – to a swingers club where they would be intimidated into having sex with other men, “to facilitate Nygard’s having sex with other women and for his own sexual gratification.”

Nygard also used threats of arrest, reputation damage and lawsuits to silence potential accusers, the indictment said.

In February, Nygard stepped down as chairman of Nygard International after its New York headquarters near Times Square were raided by the FBI.

The company filed for bankruptcy in March.

Nygard is also involved in a decade-long feud, including defamation claims and other litigation, with billionaire hedge fund manager Louis Bacon, who owns adjacent property in the gated Bahamian community.

Reporting by Rod Nickel in Winnipeg and Jonathan Stempel in New York; Edited by Howard Goller

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