China Shipbuilder Evergreen Defaults on Bond
Amid Cash Shortage - (www.bloomberg.com) A
Chinese shipbuilder defaulted on bonds, becoming at least the 10th company to
miss local debt payments in the world’s third-biggest note market this year. Evergreen
Holding Group Co. said it can’t make full payment due Monday on a one-year
notes because of a cash flow shortage, according to a statement on
Shanghai Clearing House’s website. The company, based in the eastern province
of Zhejiang, sold the 400 million yuan ($61.3 million) of bonds with a coupon
rate of 7.95 percent in May 2015. Credit woes are spreading in China as both
privately held and state-owned firms struggle with record debt repayments this
year amid the worst economic slowdown in a quarter century. Nanjing Yurun Foods
Co., a sausage maker, recently missed a payment for a second time in two months
before saying Monday it had later made the payment.
SandRidge Energy files for bankruptcy
protection - (www.reuters.com) SandRidge
Energy Inc (SDOC.PK)
and Breitburn Energy Partners LP (BBEP.O)
filed for bankruptcy protection on Monday, the latest in a surge of Chapter 11
filings among U.S. energy producers. The biggest U.S. energy price crash in a
generation has now pushed more than 60 North American oil and gas producers to
seek protection from creditors since early 2015, regulatory filings show. As of
March 31, SandRidge estimated it had total assets of $7.0 billion and total
debt of $4.0 billion, and Breitburn listed assets of $4.7 billion and
liabilities of $3.4 billion.
"We
Should Be Concerned" - Stock Buybacks Plunge Most Since 2009 – (www.zerohedge.com) After
snapping up trillions of dollars of their own stock in a five-year shopping
binge that dwarfed every other buyer, U.S. companies from Apple Inc. to IBM
Corp. just put on the brakes. Announced repurchases dropped 38 percent to $244
billion in the last four months, the biggest decline since 2009, data compiled
by Birinyi Associates and Bloomberg show. “If the only meaningful source of
demand in the market is companies buying their own shares back, then what
happens if that goes away?” asked Brad McMillan, CIO of Commonwealth “We
should be concerned.”
China debtor calls on central bank to provide
debt guarantee - (www.ft.com)
Implicit guarantees are ubiquitous in China, but one company went a step
further when it appealed to the central bank to give an explicit reassurance to
creditors that the government will not permit any default. China City
Construction Holding Group Co saw yields on its Hong Kong-traded “dim sum”
bonds spike recently after a surprise privatisation, highlighting the ways moral hazard distorts capital allocation in the
world’s largest economy. CCCC was previously owned by a unit of the housing
ministry, but a private equity fund took control late last month following a
complex asset restructuring. In response to the market jitters, CCCC sent a
letter to the People’s Bank of China’s financial stability department titled
‘Urgent request to stabilise the enterprise’s financial situation and avoid
creditor turmoil’.
Johnson Invokes Hitler as Brexit Debate
Rhetoric Intensifies - (www.bloomberg.com) Brexit campaigners invoked
Adolf Hitler as a parallel with the European Union and criticized the Bank of
England governor, evidence of the debate becoming increasingly caustic six
weeks before Britain’s referendum. The two-pronged offensive began with former
Mayor of London Boris Johnson making the historical
analogy in an interview with the Sunday Telegraph, saying attempts
to unify the region tend to end “tragically.” Allies backed him in that
analysis and also used media appearances to criticize Mark Carney for the BOE’s
warning of the economic consequences of a vote to leave, forcing the governor
to defend his actions.
China’s Economy Grinds Down a Gear as Heavy Industry Drags - (www.bloomberg.com)
China April economic activity data disappoints, hiking recovery doubts - (www.reuters.com)
Saudi Arabia and Bahrain See Low Oil Price Prompt Ratings Cut - (www.bloomberg.com)
Details Emerge on Global Bank Heists by Hackers - (www.nytimes.com)
Refugee Wrangling: Merkel's Deal with Turkey in Danger of Collapse - (www.spiegel.de)
US officials: Venezuelan president’s hold on power weakening - (www.washingtonpost.com)
Putin says Russia will 'neutralise threats' after US opens missile base - (www.bbc.com)
China April economic activity data disappoints, hiking recovery doubts - (www.reuters.com)
Saudi Arabia and Bahrain See Low Oil Price Prompt Ratings Cut - (www.bloomberg.com)
Details Emerge on Global Bank Heists by Hackers - (www.nytimes.com)
Refugee Wrangling: Merkel's Deal with Turkey in Danger of Collapse - (www.spiegel.de)
US officials: Venezuelan president’s hold on power weakening - (www.washingtonpost.com)
Putin says Russia will 'neutralise threats' after US opens missile base - (www.bbc.com)
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