Live Updates: Evergrande pledges to ‘vigorously’ oppose liquidation petition

Crypto Exchange Voyager Sends Default Notice to Three Arrows Capital

Singapore-based cryptocurrency hedge fund Three Arrows Capital received a notice of default on Monday as the industry’s biggest firms reel from market volatility and corporate meltdowns.

Crypto currency exchange Voyager Digital said it issued the notice after the fund failed to make payments on a loan worth 15,250 bitcoins and $350 million in USD Coin, a stablecoin pegged to the US dollar. The total liability is worth over $650 million.

Shares of Voyager Digital crashed more than 60% last Wednesday after the crypto broker disclosed its loan to Three Arrows.

The prominent crypto hedge fund tipped into a slump after failing to meet demands from lenders for additional funds when its digital currency bets turned sour. Its problems come as a credit crunch grips the industry.

Voyager added that it was able to keep operating thanks to a $75 million loan from crypto market trading firm Alameda Research.

“We are working diligently and quickly to strengthen our balance sheet and seek options so that we can continue to meet customer demands for liquidity,” said Stephen Ehrlich, chief executive of Voyager.

China Evergrande pledges to ‘vigorously’ oppose liquidation petition

China Evergrande Group’s Life in Venice property and tourism development in Qidong, Jiangsu Province © Qilai Shen/Bloomberg

China Evergrande, the world’s most indebted property developer, said it would ‘vigorously’ oppose a liquidation petition filed by one of its creditors on Tuesday, the latest sign of investor pressure on the group since its inception. was formally declared in default in December. .

The petition was filed in the Hong Kong High Court by Top Shine Global, an investment holding company, and relates to a bond worth HK$862.5 million ($109.9 million) , Evergrande said.

Evergrande said it does not expect the petition to affect its restructuring plan or timeline, which it expects to release by the end of next month.

Investors have been watching closely for signs of progress in Evergrande’s long default and restructuring process, with international groups playing various roles to collect debts, including seizing assets and threatening legal action.

The liquidation petition, the first such motion ever disclosed by Evergrande, is the latest sign of pressure from the company’s creditors.

The company added that if the petition is successful, any disposition of ownership, stock transfer or change in status of members of the company made after the petition was filed on Friday last week would be void.

What to watch in Asia today

Australia-Malaysia: Australian Foreign Minister Penny Wong will travel to Malaysia to meet her counterpart Saifuddin Abdullah, Defense Minister Hishammuddin Hussein and Trade and Industry Minister Azmin Ali.

NATO: Officials will meet in Madrid on Tuesday for three days of discussions, including on NATO enlargement following the Russian invasion of Ukraine. One item on the agenda is whether the group should respond to China’s growing global influence.

Markets: U.S. stocks faltered on Monday after Asia-Pacific shares posted strong gains, boosted by Shanghai’s declaration of victory over its coronavirus outbreak and easing concerns over the risk of aggressive interest rate hikes. interest. Investors in Chinese markets will be on the lookout for any signs as to how long the country’s zero-Covid policy will last, after an allegedly erroneous report that Beijing will continue to mass-test its population over the next five years, has said. rattled market sentiment on another positive Monday. Australian and Japanese stocks rose Tuesday morning, but Hong Kong futures fell.

G7 ready to explore caps on energy prices to curb Russian revenues

Ukrainian President Volodymyr Zelenskyy speaks via video link at the G7 leaders' meeting in Germany

Ukrainian President Volodymyr Zelenskyy speaks via video link at the G7 leaders’ meeting in Germany © Christian Bruna/EPA/Getty Images

G7 members are to explore ways to cut energy costs, including via possible caps on oil and gas prices, at a summit that was overshadowed by fears of an induced recession by rising inflation.

On Monday evening, officials agreed to conclusions from the summit that seek to develop solutions to reduce Russia’s hydrocarbon revenues while minimizing the negative impacts of high energy prices, officials said.

According to a draft text seen by the Financial Times, leaders will explore the ‘feasibility’ of introducing temporary price caps on energy imports – a reference to US-led push for a cap on the price Russian oil. A G7 official said earlier that capitals had agreed it was a good idea, but there was “a lot of work” to be done to make it a reality.

The G7 leaders were meeting four months after the start of a war in Ukraine that has driven up food and fuel prices, raising fears of a global recession. The summit, hosted by Germany in the Bavarian Alps, is due to conclude on Tuesday.

The decision to cap Russian oil prices is accompanied by a French proposal to increase global oil production, an idea that arose as G7 leaders sought ways to ease the looming energy crisis and improve the economy. to ease the pressure on energy-importing economies.

Read more about the G7 meeting here

France wants to increase its oil production

French President Emmanuel Macron

French President Emmanuel Macron speaks on the phone during the G7 leaders’ summit in the Bavarian resort of Schloss Elmau © Lukas Barth/Reuters

Emmanuel Macron has called for an increase in oil production around the world as the French president seeks ways to reduce the cost of energy and ease the pressure on energy-importing economies.

Macron has made his proposal to fellow G7 leaders as they seek to hammer out the details of a Russian oil price cap that aims to drive down costs and blunt soaring inflation.

The French president said the price cap should apply to all producers around the world, not just Russia, but did not specify how it would work, according to officials familiar with the talks.

A French official later said the idea was “not a global price cap”, but a way to moderate prices via higher oil production. In particular, France wants to explore ways of putting production from Venezuela and Iran back on the market, both subject to American sanctions.

US President Joe Biden has previously courted the authoritarian regime of Nicolás Maduro in Venezuela in an attempt to cool the oil market.

France’s interventions underline the deep concern of the G7 leaders about the economic balance sheet of their economies. They spent their summit at Schloss Elmau debating ways to cut energy costs, with the dialogue focusing on US push for a cap on the price of Russian oil.

Officials are still working out the details of the Russian crude price cap, which would be enforced via limits on the availability of European services, including insurance for Russian oil shipments.

Additional reporting by David Sheppard in London

Nike announces new buyback program after better-than-expected quarter

An illuminated Nike logo in Beijing

Nike’s revenue for its fiscal fourth quarter fell 1% to $12.2 billion while net profit fell 5% to $1.4 billion. © Tingshu Wang/Reuters

Nike beat Wall Street expectations for its latest quarter, posting lower-than-expected revenue and profit declines, and launched a new share buyback program due to continued demand for the giant’s products. shoe.

The world’s largest sportswear maker by revenue said its direct-to-consumer sales rose 7% for the three months ended May 31, while wholesale revenue fell by the same margin, a continuation of Nike’s multi-year efforts to move its business online and away from retail through department stores.

Compared to the same period a year ago, Nike’s revenue for its fiscal fourth quarter fell 1% to $12.2 billion, while net profit fell 5% to $1.4 billion. dollars. Analysts polled by S&P Capital IQ expected revenue of $12.1 billion and net profit of $1.3 billion.

The company said its direct-to-consumer sales were strongest in Europe, the Middle East and Africa, Asia-Pacific, and Latin America and North America, although those sales fell in China. Chief executive John Donahoe said the results indicated “our strategy is working”.

Nike’s board has authorized a new four-year, $18 billion share buyback program to replace an existing $15 billion program that will end in the next fiscal year. Shares of Nike initially rose 2% in after-hours trading, but fell back and remained slightly above their closing price of $110.50 on Monday.

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