Hit hard by the covid-19 pandemic, Sri Lanka is facing its most severe financial crisis in years. The nation's inflation rate accelerated to 14% in December 2021 which is up from 11.1% a month earlier. Now for the second consecutive month, the country has recorded double-digit inflation growth.

Sri Lanka grappling with inflation, food crisis hits new record

Sri Lanka's financial woes have forced it to shut three diplomatic missions. With record-high inflation and depleting foreign reserves, Colombo is facing a financial meltdown. Reports suggest it could even go bankrupt by the end of 2022. Palki Sharma gets you a report.

Gravitas: Sri Lanka shuts 3 diplomatic missions as economic crisis gets worse

Shares of China's Evergrande group are sliding 11% down after the world's most indebted developers said that there was no guarantee that it could have enough funds to meet debt repayments.

'No guarantee on repayments,' says Evergrande world's most indebted developer

Elon Musk is selling $50 whistles on the Tesla website. Is it a message to whistleblowers who exposed abuses at his company? Does Musk have time for such shenanigans amid a looming bankruptcy at Spacex? Palki Sharma tells you.

Gravitas: Why is Elon Musk selling whistles?

Elon Musk has sounded the alarm for a potential bankruptcy of his space exploration firm SpaceX. The technology entrepreneur has warned SpaceX employees in a recent mail that the company is facing a major crisis with its production efforts for the new Raptor engine.

Elon Musk: SpaceX faces bankruptcy risk

Evergrande owes more than 300 billion dollars to its creditors in China and around the world. The China central bank is calling it an 'individual case', ignoring the fact that millions could lose money as the real estate giant stares at bankruptcy.

'Risks from Evergrande is controllable,' China breaks silence on crisis

China's Evergrande is missing its debt payments. At least 70,000 retail investors have suffered losses. Molly Gambhir tells you how the crisis at Evergrande has popped China's real estate bubble.

Gravitas: China's $300 billion debt bomb: Evergrande is missing payments

South Africa's embattled national airline on Thursday flew its first plane since March 2020 after emerging from bankruptcy proceedings.

Passengers on the South African Airways (SAA) flight from Johannesburg to Cape Town were greeted on their departure by singing and dancing airline staff.

Once Africa's second-largest airline after Ethiopian Airlines, SAA had survived for decades on government bailouts and was shedding routes even before the COVID-19 pandemic struck.

The government agreed in June to sell a 51-percent stake to a group of investors called the Takatso Consortium, opening the way to a potential injection of $200 million.

<a href="https://www.wionews.com/world/california-wildfires-reach-edge-of-sequoia-grove-home-to-worlds-largest-tree-414101">Also read |&nbsp;California wildfires reach edge of sequoia grove, home to world's largest tree</a>

Even after a state bailout of more than $500 million&nbsp;and a restructuring of its debt, the airline only emerged from bankruptcy after slashing hundreds of jobs.

In addition to the domestic route that resumed on Thursday, SAA plans to begin regional services next week to Accra, Kinshasa, Lusaka, Harare and Maputo.

Chief finance officer Fikile Mhlonto said this week that the airline's fleet is down to six planes, from a previous 46.

SAA low-cost subsidiary Mango remains grounded and in bankruptcy proceedings.

South Africa's embattled national airline on Thursday flew its first plane since March 2020 after emerging from bankruptcy proceedings. Passengers on the South African Airways (SAA) flight from Johannesburg to Cape Town were greeted on their departure by singing and dancing airline staff.

South Africa's embattled national airline on Thursday flew its first plane since March 2020 after emerging from bankruptcy proceedings. Passengers on the South African Airways (SAA) flight from Johannesburg to Cape Town were greeted on their departure by singing and dancing airline staff. Once Africa's second-largest airline after Ethiopian Airlines, SAA had survived for decades on government bailouts and was shedding routes even before the COVID-19 pandemic struck. The government agreed in June to sell a 51-percent stake to a group of investors called the Takatso Consortium, opening the way to a potential injection of $200 million. Also read | California wildfires reach edge of sequoia grove, home to world's largest tree Even after a state bailout of more than $500 million and a restructuring of its debt, the airline only emerged from bankruptcy after slashing hundreds of jobs. In addition to the domestic route that resumed on Thursday, SAA plans to begin regional services next week to Accra, Kinshasa, Lusaka, Harare and Maputo. Chief finance officer Fikile Mhlonto said this week that the airline's fleet is down to six planes, from a previous 46. SAA low-cost subsidiary Mango remains grounded and in bankruptcy proceedings.

South African Airways resumes flights after bankruptcy

Evergrande is China's biggest real estate player. It is on the brink of bankruptcy. Evergrande is short on cash and has liabilities worth over $300 billion. Will China export a financial crisis, after a pandemic? Palki Sharma tells you why the world needs to worry.

Gravitas:Is a global financial crisis brewing in China?

Gravitas: Is a global financial crisis brewing in China?

Following news that IDBI Bank has entirely recovered its debts from the now-defunct Kingfisher Airlines, fugitive tycoon Vijay Mallya criticised banks for claiming he owed them money on Thursday.&nbsp;

Vijay Mallya launched a tirade on Twitter and said, "And the Banks say I owe them money!".

He shared a report on IDBI Bank fully recovering its dues from now-defunct Kingfisher Airlines.

According to the news clipping, IDBI Bank recovered ₹7.5 billion from Kingfisher.

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And the Banks say I owe them money ! <a href="https://t.co/XnWSjXnnF9">pic.twitter.com/XnWSjXnnF9</a>
— Vijay Mallya (@TheVijayMallya) <a href="https://twitter.com/TheVijayMallya/status/1420732695760486400?ref_src=twsrc%5Etfw">July 29, 2021</a></blockquote>
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His Tweet comes after a British court awarded him a bankruptcy order, clearing the way for a consortium of Indian banks led by the State Bank of India (SBI) to seek a global freezing order to recover a debt due by Kingfisher Airlines.&nbsp;

On July 26, the fugitive businessman claimed that the Enforcement Directorate is seizing assets "worth ₹140 billion at the behest of government banks against a debt of ₹62 billion."

Mallya also tweeted that the SBI-led consortium of banks had asked "court to make me bankrupt as they may have to return money to the ED," which he described as "incredible."&nbsp;

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ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores.They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more.Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible.
— Vijay Mallya (@TheVijayMallya) <a href="https://twitter.com/TheVijayMallya/status/1419724187325845508?ref_src=twsrc%5Etfw">July 26, 2021</a></blockquote>
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The 65-year-old businessman remains on bail in the UK while a "confidential" legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings.

Mallya, who fled to the UK in March 2016, is wanted in India over a default of ₹90 billion that was loaned to Kingfisher Airlines (KFA) by several banks. India has been seeking his extradition from the UK. He had in the past offered to repay 100 per cent of "public money" but accused the banks and government of refusing his offer.&nbsp;

(With inputs from agencies)

Following news that IDBI Bank has entirely recovered its debts from the now-defunct Kingfisher Airlines, fugitive tycoon Vijay Mallya criticised banks for claiming he owed them money on Thursday.

Following news that IDBI Bank has entirely recovered its debts from the now-defunct Kingfisher Airlines, fugitive tycoon Vijay Mallya criticised banks for claiming he owed them money on Thursday. Vijay Mallya launched a tirade on Twitter and said, "And the Banks say I owe them money!". He shared a report on IDBI Bank fully recovering its dues from now-defunct Kingfisher Airlines. According to the news clipping, IDBI Bank recovered ₹7.5 billion from Kingfisher. And the Banks say I owe them money ! pic.twitter.com/XnWSjXnnF9 — Vijay Mallya (@TheVijayMallya) July 29, 2021 × His Tweet comes after a British court awarded him a bankruptcy order, clearing the way for a consortium of Indian banks led by the State Bank of India (SBI) to seek a global freezing order to recover a debt due by Kingfisher Airlines. On July 26, the fugitive businessman claimed that the Enforcement Directorate is seizing assets "worth ₹140 billion at the behest of government banks against a debt of ₹62 billion." Mallya also tweeted that the SBI-led consortium of banks had asked "court to make me bankrupt as they may have to return money to the ED," which he described as "incredible." ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores.They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more.Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible. — Vijay Mallya (@TheVijayMallya) July 26, 2021 × The 65-year-old businessman remains on bail in the UK while a "confidential" legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings. Mallya, who fled to the UK in March 2016, is wanted in India over a default of ₹90 billion that was loaned to Kingfisher Airlines (KFA) by several banks. India has been seeking his extradition from the UK. He had in the past offered to repay 100 per cent of "public money" but accused the banks and government of refusing his offer. (With inputs from agencies)

Vijay Mallya mocks banks for saying he still owes money, shares report

The London High Court declared fugitive Indian businessman Vijay Mallya bankrupt on July 26 in a major victory for Indian banks.

This will clear the way for a group of Indian banks led by the State Bank of India (SBI) to seek a worldwide freezing order to seize Vijay Mallya's Indian assets in order to recover debt owed by his now-defunct Kingfisher Airlines.

"As at 15:42 (UK time), I adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court in London.

The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in favour of the Indian banks. 
 
Watch:

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/london-court-declares-fugitive-businessman-vijay-mallya-bankrupt-indian-banks-can-realise-debt-400845/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Mallya reportedly attempted to appeal the High Court decision but was denied permission to do so.

An application by a lender consortium led by the SBI to alter their bankruptcy case in favour of surrendering their security over Mallya's assets in India was upheld by a UK court earlier this year in May.

Meanwhile, the 65-year-old businessman remains in the UK on bail pending the resolution of a "secret" court matter, believed to be related to an asylum application, in connection with unrelated extradition proceedings.

His lawyer, Philip Marshall, asked for a stay and a postponement of the ruling while legal challenges in India are still pending.

The judge, however, denied the requests, concluding that there was "insufficient proof" that the debt would be paid in full to the petitioners within a reasonable time. 
 
(With inputs from agencies)

The London High Court declared fugitive Indian businessman Vijay Mallya bankrupt on July 26 in a major victory for Indian banks. This will clear the way for a group of Indian banks led by the State Bank of India (SBI) to seek a worldwide freezing order to seize Vijay Mallya's Indian assets in order to recover debt owed by his now-defunct Kingfisher Airlines.

The London High Court declared fugitive Indian businessman Vijay Mallya bankrupt on July 26 in a major victory for Indian banks. This will clear the way for a group of Indian banks led by the State Bank of India (SBI) to seek a worldwide freezing order to seize Vijay Mallya's Indian assets in order to recover debt owed by his now-defunct Kingfisher Airlines. "As at 15:42 (UK time), I adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court in London. The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in favour of the Indian banks. Watch: Mallya reportedly attempted to appeal the High Court decision but was denied permission to do so. An application by a lender consortium led by the SBI to alter their bankruptcy case in favour of surrendering their security over Mallya's assets in India was upheld by a UK court earlier this year in May. Meanwhile, the 65-year-old businessman remains in the UK on bail pending the resolution of a "secret" court matter, believed to be related to an asylum application, in connection with unrelated extradition proceedings. His lawyer, Philip Marshall, asked for a stay and a postponement of the ruling while legal challenges in India are still pending. The judge, however, denied the requests, concluding that there was "insufficient proof" that the debt would be paid in full to the petitioners within a reasonable time. (With inputs from agencies)

UK court declares Vijay Mallya bankrupt, allowing Indian Banks to pursue recovery

Following the declaration of Vijay Mallya as "bankrupt" by the UK High Court, the fugitive businessman claimed that the Enforcement Directorate is seizing assets "worth ₹140 billion at the behest of government banks against a debt of ₹62 billion."

Mallya tweeted that the SBI-led consortium of banks had asked "court to make me bankrupt as they may have to return money to the ED," which he described as "incredible."&nbsp; 
 
<a href="https://www.wionews.com/india-news/uk-court-declares-vijay-mallya-bankrupt-allowing-indian-banks-to-pursue-recovery-400877">Also read | UK court declares Vijay Mallya bankrupt, allowing Indian Banks to pursue recovery</a> 
 
"ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores.They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more.Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible," he tweeted.

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ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores.They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more.Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible.
— Vijay Mallya (@TheVijayMallya) <a href="https://twitter.com/TheVijayMallya/status/1419724187325845508?ref_src=twsrc%5Etfw">July 26, 2021</a></blockquote>
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On July 26, the London High Court declared the fugitive Indian businessman bankrupt, in a major victory for Indian banks.

This will clear the way for the group of Indian banks led by the State Bank of India (SBI) to seek a worldwide freezing order to seize Mallya's Indian assets in order to recover debt owed by his now-defunct Kingfisher Airlines.

"As at 15:42 (UK time), I adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court in London.

The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in favour of the Indian banks.

(With inputs from agencies)

Following the declaration of Vijay Mallya as "bankrupt" by the UK High Court, the fugitive businessman claimed that the Enforcement Directorate is seizing assets "worth ₹140 billion at the behest of government banks against a debt of ₹62 billion.

Following the declaration of Vijay Mallya as "bankrupt" by the UK High Court, the fugitive businessman claimed that the Enforcement Directorate is seizing assets "worth ₹140 billion at the behest of government banks against a debt of ₹62 billion." Mallya tweeted that the SBI-led consortium of banks had asked "court to make me bankrupt as they may have to return money to the ED," which he described as "incredible." Also read | UK court declares Vijay Mallya bankrupt, allowing Indian Banks to pursue recovery "ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores.They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more.Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible," he tweeted. ED attach my assets worth 14K crores at behest of Govt Banks against debt of 6.2K crores.They restore assets to Banks who recover 9K crores in cash and retain security over 5K crores more.Banks ask Court to make me Bankrupt as they may have to return money to the ED. Incredible. — Vijay Mallya (@TheVijayMallya) July 26, 2021 × On July 26, the London High Court declared the fugitive Indian businessman bankrupt, in a major victory for Indian banks. This will clear the way for the group of Indian banks led by the State Bank of India (SBI) to seek a worldwide freezing order to seize Mallya's Indian assets in order to recover debt owed by his now-defunct Kingfisher Airlines. "As at 15:42 (UK time), I adjudicate Dr Mallya bankrupt," Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court in London. The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, had argued for the bankruptcy order to be granted in favour of the Indian banks. (With inputs from agencies)

Attaching ₹140 billion assets over ₹62 billion debt 'incredible': Mallya on being declared bankrupt

Fifteen US states have stopped opposing a bankruptcy plan for OxyContin maker Purdue Pharma.&nbsp;

Purdue Pharma is accused of triggering America's opioid crisis.

The agreement to drop opposition is a step toward the pharma firm paying USD 4.3 billion to settle cases related to the crisis.&nbsp;

This crisis has caused more than 500,000 overdose death in the US in last 20 years.

A mediator's report filed in a New York state bankruptcy court late Wednesday announced that the states had reached an agreement with Purdue Pharma that would see its owners, the Sackler family, provide an additional $50 million.

Under the terms of the deal, Purdue will also make public tens of millions of documents, including exchanges with its lawyers that have so far remained confidential.

The states include New York and Massachusetts which have been aggressively pursuing the company.

Purdue Pharma agreed in October 2020 to plead guilty to criminal charges relating to its aggressive promotion of OxyContin, a painkiller it knew to be addictive, as part of a deal with the US Justice Department worth $8.3 billion.

The charges included defrauding federal health agencies and of paying illegal kickbacks to doctors.

The company filed for bankruptcy in September 2019, saying it would restructure and help tackle addiction.

(With inputs from agencies) 
&nbsp;

Fifteen US states have stopped opposing a bankruptcy plan for OxyContin maker Purdue Pharma. Purdue Pharma is accused of triggering America's opioid crisis. The agreement to drop opposition is a step toward the pharma firm paying USD 4.

Fifteen US states have stopped opposing a bankruptcy plan for OxyContin maker Purdue Pharma. Purdue Pharma is accused of triggering America's opioid crisis. The agreement to drop opposition is a step toward the pharma firm paying USD 4.3 billion to settle cases related to the crisis. This crisis has caused more than 500,000 overdose death in the US in last 20 years. A mediator's report filed in a New York state bankruptcy court late Wednesday announced that the states had reached an agreement with Purdue Pharma that would see its owners, the Sackler family, provide an additional $50 million. Under the terms of the deal, Purdue will also make public tens of millions of documents, including exchanges with its lawyers that have so far remained confidential. The states include New York and Massachusetts which have been aggressively pursuing the company. Purdue Pharma agreed in October 2020 to plead guilty to criminal charges relating to its aggressive promotion of OxyContin, a painkiller it knew to be addictive, as part of a deal with the US Justice Department worth $8.3 billion. The charges included defrauding federal health agencies and of paying illegal kickbacks to doctors. The company filed for bankruptcy in September 2019, saying it would restructure and help tackle addiction. (With inputs from agencies)

US states drop opposition to Purdue Pharma bankruptcy plan

A consortium of Indian banks led by the State Bank of India (SBI) on Tuesday moved a step closer in their attempt to recover debt from loans paid out to Vijay Mallya's now-defunct Kingfisher Airlines after the High Court in London upheld an application to amend their bankruptcy petition, in favour of waiving their security over the businessman's assets in India.&nbsp;

Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs handed down his judgment in favour of the banks to declare there is no public policy that prevents a waiver of security rights, as argued by Mallya's lawyers.&nbsp;

At a virtual hearing, July 26 was set as the date for final arguments for and against granting a bankruptcy order against Mallya after the banks accused him of trying to kick matters into the long grass and called on the bankruptcy petition to be brought to its inevitable end.&nbsp;

“I order that permission be given to amend the petition to read as follows: The Petitioners (banks) having the right to enforce any security held are willing, in the event of a bankruptcy order being made, to give up any such security for the benefit of all the bankrupt's creditors,” Justice Briggs' judgment reads.&nbsp;

"There is nothing in the statutory provisions that prevent the Petitioners from giving up security," he notes.&nbsp;

Mallya's barrister, Philip Marshall, had referenced witness statements of retired Indian judges in previous hearings to reiterate that there is public interest under Indian law by virtue of the banks being nationalised.&nbsp;

However, Justice Briggs found no impediment to the creditors relinquishing their security under Indian law because of the engagement of a principle concerning public interest and favoured the submissions made by retired Indian Supreme Court judge Gopala Gowda at a hearing in December 2020 in this regard.&nbsp;

“In my judgment the simple stance taken by Justice Gowda that Section 47 PIA 1920 is evidence of the ability of a secured creditor to relinquish the creditor's security is to be preferred," the ruling notes.&nbsp;

The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, were also granted costs in totality for the petition hearings, as the ‘overall successful' party in the case.&nbsp;

"Dr Mallya should have been extradited by now. He was refused permission to go to the Supreme Court in May last year," Shekerdemian pointed out, in reference to one of Mallya's defence planks that the cases against him are 'politically motivated'.&nbsp;

The 65-year-old businessman remains on bail in the UK while a 'confidential' legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings. &nbsp;

(With inputs from agencies)&nbsp;

A consortium of Indian banks led by the State Bank of India (SBI) on Tuesday moved a step closer in their attempt to recover debt from loans paid out to Vijay Mallya's now-defunct Kingfisher Airlines after the High Court in London upheld an application to amend their bankruptcy petition, in favour of waiving their security over the businessman's assets in India.

A consortium of Indian banks led by the State Bank of India (SBI) on Tuesday moved a step closer in their attempt to recover debt from loans paid out to Vijay Mallya's now-defunct Kingfisher Airlines after the High Court in London upheld an application to amend their bankruptcy petition, in favour of waiving their security over the businessman's assets in India. Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs handed down his judgment in favour of the banks to declare there is no public policy that prevents a waiver of security rights, as argued by Mallya's lawyers. At a virtual hearing, July 26 was set as the date for final arguments for and against granting a bankruptcy order against Mallya after the banks accused him of trying to kick matters into the long grass and called on the bankruptcy petition to be brought to its inevitable end. “I order that permission be given to amend the petition to read as follows: The Petitioners (banks) having the right to enforce any security held are willing, in the event of a bankruptcy order being made, to give up any such security for the benefit of all the bankrupt's creditors,” Justice Briggs' judgment reads. "There is nothing in the statutory provisions that prevent the Petitioners from giving up security," he notes. Mallya's barrister, Philip Marshall, had referenced witness statements of retired Indian judges in previous hearings to reiterate that there is public interest under Indian law by virtue of the banks being nationalised. However, Justice Briggs found no impediment to the creditors relinquishing their security under Indian law because of the engagement of a principle concerning public interest and favoured the submissions made by retired Indian Supreme Court judge Gopala Gowda at a hearing in December 2020 in this regard. “In my judgment the simple stance taken by Justice Gowda that Section 47 PIA 1920 is evidence of the ability of a secured creditor to relinquish the creditor's security is to be preferred," the ruling notes. The Indian banks, represented by the law firm TLT LLP and barrister Marcia Shekerdemian, were also granted costs in totality for the petition hearings, as the ‘overall successful' party in the case. "Dr Mallya should have been extradited by now. He was refused permission to go to the Supreme Court in May last year," Shekerdemian pointed out, in reference to one of Mallya's defence planks that the cases against him are 'politically motivated'. The 65-year-old businessman remains on bail in the UK while a 'confidential' legal matter, believed to be related to an asylum application, is resolved in connection with the unrelated extradition proceedings. (With inputs from agencies)

Vijay Mallya loses bankruptcy petition amendment High Court battle in UK 

A federal judge dismissed the National Rifle Association's bankruptcy case on Tuesday, leaving the powerful gun-rights group to face a New York state lawsuit that accuses it of financial abuses and aims to put it out of business.&nbsp;

The judge was tasked with deciding whether the NRA should be allowed to incorporate in Texas instead of New York, where the state is suing in an effort to disband the group. Though headquartered in Virginia, the NRA was chartered as a non-profit in New York in 1871 and is incorporated in the state.&nbsp;

Judge Harlin Hale said in a written order that he was dismissing the case because he found the bankruptcy was not filed in good faith.&nbsp;

"The Court believes the NRA's purpose in filing bankruptcy is less like a traditional bankruptcy case in which a debtor is faced with financial difficulties or a judgment that it cannot satisfy and more like cases in which courts have found bankruptcy was filed to gain an unfair advantage in litigation or to avoid a regulatory scheme," Hale wrote.&nbsp;

His decision followed 11 days of testimony and arguments. Lawyers for New York and the NRA's former advertising agency grilled the group's embattled top executive, Wayne LaPierre, who acknowledged putting the NRA into Chapter 11 bankruptcy without the knowledge or assent of most of its board and other top officers.&nbsp;

"Excluding so many people from the process of deciding to file for bankruptcy, including the vast majority of the board of directors, the chief financial officer, and the general counsel, is nothing less than shocking," the judge added.&nbsp;

Phillip Journey, an NRA board member and Kansas judge, who had sought to have an examiner appointed to investigate the group's leadership, was concise about Hale's judgment: “1 word, disappointed," he wrote in a text message.&nbsp;

LaPierre pledged in a statement to continue to fight for gun rights.&nbsp;

“Although we are disappointed in some aspects of the decision, there is no change in the overall direction of our Association, its programmes, or its Second Amendment advocacy," LaPierre said via the NRA's Twitter account. "Today is ultimately about our members, those who stand courageously with the NRA in defence of constitutional freedom. We remain an independent organisation that can chart its own course, even as we remain in New York to confront our adversaries."&nbsp;

Lawyers for New York Attorney General Letitia James argued that the case was an attempt by NRA leadership to escape accountability for using the group's coffers as their personal piggybank. But the NRA's attorneys said it was a legitimate effort to avoid a political attack by James, who is a Democrat.&nbsp;

A federal judge dismissed the National Rifle Association's bankruptcy case on Tuesday, leaving the powerful gun-rights group to face a New York state lawsuit that accuses it of financial abuses and aims to put it out of business.

A federal judge dismissed the National Rifle Association's bankruptcy case on Tuesday, leaving the powerful gun-rights group to face a New York state lawsuit that accuses it of financial abuses and aims to put it out of business. The judge was tasked with deciding whether the NRA should be allowed to incorporate in Texas instead of New York, where the state is suing in an effort to disband the group. Though headquartered in Virginia, the NRA was chartered as a non-profit in New York in 1871 and is incorporated in the state. Judge Harlin Hale said in a written order that he was dismissing the case because he found the bankruptcy was not filed in good faith. "The Court believes the NRA's purpose in filing bankruptcy is less like a traditional bankruptcy case in which a debtor is faced with financial difficulties or a judgment that it cannot satisfy and more like cases in which courts have found bankruptcy was filed to gain an unfair advantage in litigation or to avoid a regulatory scheme," Hale wrote. His decision followed 11 days of testimony and arguments. Lawyers for New York and the NRA's former advertising agency grilled the group's embattled top executive, Wayne LaPierre, who acknowledged putting the NRA into Chapter 11 bankruptcy without the knowledge or assent of most of its board and other top officers. "Excluding so many people from the process of deciding to file for bankruptcy, including the vast majority of the board of directors, the chief financial officer, and the general counsel, is nothing less than shocking," the judge added. Phillip Journey, an NRA board member and Kansas judge, who had sought to have an examiner appointed to investigate the group's leadership, was concise about Hale's judgment: “1 word, disappointed," he wrote in a text message. LaPierre pledged in a statement to continue to fight for gun rights. “Although we are disappointed in some aspects of the decision, there is no change in the overall direction of our Association, its programmes, or its Second Amendment advocacy," LaPierre said via the NRA's Twitter account. "Today is ultimately about our members, those who stand courageously with the NRA in defence of constitutional freedom. We remain an independent organisation that can chart its own course, even as we remain in New York to confront our adversaries." Lawyers for New York Attorney General Letitia James argued that the case was an attempt by NRA leadership to escape accountability for using the group's coffers as their personal piggybank. But the NRA's attorneys said it was a legitimate effort to avoid a political attack by James, who is a Democrat.

Judge dismisses NRA bankruptcy case in blow to gun lobby group  

According to former Pakistan pacer spearhead Shoaib Akhtar's latest tweet: "This coronavirus pandemic is going to leave more people bankrupt than dead."

Also read:&nbsp;<a href="https://www.wionews.com/sports/shoaib-akhtar-blames-chinas-eating-habits-for-coronavirus-expresses-anger-at-putting-world-at-risk-286534">Shoaib Akhtar blames China's eating habits for coronavirus, expresses anger at putting 'world at risk'</a>

Shoaib took to Twitter to share this prediction:&nbsp;

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This Corona virus pandemic is going to leave more people bankrupt than dead.
— Shoaib Akhtar (@shoaib100mph) <a href="https://twitter.com/shoaib100mph/status/1245033125236834306?ref_src=twsrc%5Etfw">March 31, 2020</a></blockquote>
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Akhtar might not be wrong in predicting this as the IMF chief Kristalina Georgieva said: "It is clear that we have entered a recession that will be worse than in 2009 following the global financial crisis."

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/clear-we-have-entered-recession-would-be-worse-than-2009-imf-289009">Clear we have entered recession, would be worse than 2009: IMF</a>

Akhtar has been vocal on the on-going coronavirus pandemic. Earlier, Akhtar said in his YouTube video: "Request all my fans all across the globe. Coronavirus is a global crisis and we have to think as a global force, rise above religion. Lockdown is happening so that the virus does not spread. If you are doing interaction and meeting in places, it will not help. If you are hoarding things, please think about the daily wage workers. Stores are empty. What is the guarantee that you will live after three months? Think about the daily wage worker, how will he feed his family? Think about people, time to be a human, not Hindu, Muslim. People will have to help each other, collect funds. Stop Hoarding."

Akhtar even blamed China for their eating habits and blamed them for the global pandemic that threatens humanity. He said: "I don't understand if God has made halal animals, why are you eating haram. When God has given you so much livestock, why can't you eat that? Why do you have to eat bats, cats and dogs, drink their urine, their blood, and spread the virus in the entire world? I don`t understand, I'm really angry," Dawn.com quoted Akhtar as saying."I`m really angry. They've got the whole world at stake, these Chinese."

According to former Pakistan pacer spearhead Shoaib Akhtar's latest tweet: "This coronavirus pandemic is going to leave more people bankrupt than dead." Also read: Shoaib Akhtar blames China's eating habits for coronavirus, expresses anger at putting 'world at risk' Shoaib took to Twitter to share this prediction: This Corona virus pandemic is going to leave more people bankrupt than dead.

According to former Pakistan pacer spearhead Shoaib Akhtar's latest tweet: "This coronavirus pandemic is going to leave more people bankrupt than dead." Also read: Shoaib Akhtar blames China's eating habits for coronavirus, expresses anger at putting 'world at risk' Shoaib took to Twitter to share this prediction: This Corona virus pandemic is going to leave more people bankrupt than dead. — Shoaib Akhtar (@shoaib100mph) March 31, 2020 × Akhtar might not be wrong in predicting this as the IMF chief Kristalina Georgieva said: "It is clear that we have entered a recession that will be worse than in 2009 following the global financial crisis." Also read: Clear we have entered recession, would be worse than 2009: IMF Akhtar has been vocal on the on-going coronavirus pandemic. Earlier, Akhtar said in his YouTube video: "Request all my fans all across the globe. Coronavirus is a global crisis and we have to think as a global force, rise above religion. Lockdown is happening so that the virus does not spread. If you are doing interaction and meeting in places, it will not help. If you are hoarding things, please think about the daily wage workers. Stores are empty. What is the guarantee that you will live after three months? Think about the daily wage worker, how will he feed his family? Think about people, time to be a human, not Hindu, Muslim. People will have to help each other, collect funds. Stop Hoarding." Akhtar even blamed China for their eating habits and blamed them for the global pandemic that threatens humanity. He said: "I don't understand if God has made halal animals, why are you eating haram. When God has given you so much livestock, why can't you eat that? Why do you have to eat bats, cats and dogs, drink their urine, their blood, and spread the virus in the entire world? I don`t understand, I'm really angry," Dawn.com quoted Akhtar as saying."I`m really angry. They've got the whole world at stake, these Chinese."

'Coronavirus going to leave more people bankrupt than dead', says Shoaib Akhtar

British regional airlines Fly Bay has entered to bankruptcy as the struggling carriers failed to extend the plunging travel demand caused by coronavirus. The airlines said that all flights have been hounded and the UK business has seized trading. Watch report:

WION Wallet: British carrier FlyBe enters bankruptcy amid coronavirus crisis

British regional airline Flybe crashed into bankruptcy Thursday after the deadly coronavirus proved to be the final nail in its coffin.

Also read: <a href="https://www.wionews.com/india-news/trade-impact-of-coronavirus-epidemic-for-india-estimated-at-348-million-dollars-un-report-284461" hreflang="en">Trade impact of Coronavirus epidemic for India estimated at 348 million dollars: UN report</a>

The biggest operator of UK domestic flights said it has sunk into administration -- a last-ditch process aimed at salvaging at least some of the company.

Also read: <a href="https://www.wionews.com/world/global-growth-to-fall-below-last-years-level-due-to-coronavirus-imf-284325" hreflang="en">Global growth to fall below last year's level due to coronavirus: IMF</a>

And with the carrier long blighted by fierce competition, volatile fuels costs and a weak pound linked to the uncertainty over Brexit, Flybe's announcement to ground all flights now place some 2,000 jobs at risk.

Also read: <a href="https://www.wionews.com/business-economy/coronavirus-drags-hong-kong-business-outlook-to-record-low-data-284240" hreflang="en">Coronavirus drags Hong Kong business outlook to record low: data</a>

An airline source told Britain's domestic Press Association news agency that sliding demand owing to COVID-19 had "made a difficult situation worse".

A slew of airlines -- including British Airways and Ryanair -- announced Monday the cancellation of several hundred flight, in particular to Italy, as the novel coronavirus spreads throughout the globe.

Flybe narrowly avoided going bust in January when the UK government agreed to review air passenger duty paid by its customers -- and shareholders pledged extra investment.

But in the early hours of Thursday, the carrier appointed administrators after the government reportedly refused a rescue loan for £100 million ($128 million, 115 million euros)

"Flybe entered administration on 5 March," the carrier said in a brief statement.

"All flights have been grounded and the UK business has ceased trading with immediate effect."

The Exeter-based carrier failed to turn around its fortunes since it was purchased just over a year ago by a consortium led by Virgin.

"Flybe's financial difficulties were long-standing and well documented and pre-date the outbreak of COVID-19," said a government statement.

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Flybe, which flies about eight million passengers annually, is owned also by investment firm Cyrus and infrastructure specialist Stobart.

Flybe operates from 43 airports across Europe and 28 in Britain, and its collapse left potentially thousands of people stranded far from home.

The British government said it had asked bus and train operators to accept Flybe tickets and other airlines to offer reductions to help passengers reach their destination.

Flybe's owner, the Connect Airways consortium, said "every possible attempt" had been made to avoid the collapse, but that the airline had been "unable to overcome significant funding challenges".

At the start of the year, Flybe agreed a payment plan with authorities to defer tax payments of less than £10 million.

That announcement came just days after the airline was saved from collapse in a last-minute financial rescue, with Prime Minister Boris Johnson's Conservative government agreeing to review air passenger duty (APD) paid by Flybe's customers.

Following the tax deferral, rival companies, including British Airways-parent IAG, complained to the European Union that it was receiving unfair state aid.

The government said its assistance did not breach EU rules and that help was based on the importance of the company's domestic services.

- Timely warning - 
Flybe's demise follows a timely coronavirus warning from Dublin-based low-cost airline Ryanair at the start of this week.

The Irish carrier forecast that the fatal outbreak -- which has killed 3,200 and infected 95,000 worldwide so far -- would spark more European airline failures.

"We expect that this COVID-19 virus will result in further EU airline failures over the coming weeks," Ryanair said Monday.

Recent high-profile casualties in Europe's battered aviation sector include French carriers Aigle Azur and XL Airways, as well as Slovenia's Adria Airways and Britain's Thomas Cook, which was both a tour operator and an airline.

In contrast to Flybe, Thomas Cook collapsed without any government assistance in September, causing the loss of 22,000 jobs worldwide and stranding 600,000 holidaymakers abroad.

British regional airline Flybe crashed into bankruptcy Thursday after the deadly coronavirus proved to be the final nail in its coffin. Also read: Trade impact of Coronavirus epidemic for India estimated at 348 million dollars: UN report The biggest operator of UK domestic flights said it has sunk into administration -- a last-ditch process aimed at salvaging at least some of the company.

British regional airline Flybe crashed into bankruptcy Thursday after the deadly coronavirus proved to be the final nail in its coffin. Also read: Trade impact of Coronavirus epidemic for India estimated at 348 million dollars: UN report The biggest operator of UK domestic flights said it has sunk into administration -- a last-ditch process aimed at salvaging at least some of the company. Also read: Global growth to fall below last year's level due to coronavirus: IMF And with the carrier long blighted by fierce competition, volatile fuels costs and a weak pound linked to the uncertainty over Brexit, Flybe's announcement to ground all flights now place some 2,000 jobs at risk. Also read: Coronavirus drags Hong Kong business outlook to record low: data An airline source told Britain's domestic Press Association news agency that sliding demand owing to COVID-19 had "made a difficult situation worse". A slew of airlines -- including British Airways and Ryanair -- announced Monday the cancellation of several hundred flight, in particular to Italy, as the novel coronavirus spreads throughout the globe. Flybe narrowly avoided going bust in January when the UK government agreed to review air passenger duty paid by its customers -- and shareholders pledged extra investment. But in the early hours of Thursday, the carrier appointed administrators after the government reportedly refused a rescue loan for £100 million ($128 million, 115 million euros) "Flybe entered administration on 5 March," the carrier said in a brief statement. "All flights have been grounded and the UK business has ceased trading with immediate effect." The Exeter-based carrier failed to turn around its fortunes since it was purchased just over a year ago by a consortium led by Virgin. "Flybe's financial difficulties were long-standing and well documented and pre-date the outbreak of COVID-19," said a government statement. Flybe, which flies about eight million passengers annually, is owned also by investment firm Cyrus and infrastructure specialist Stobart. Flybe operates from 43 airports across Europe and 28 in Britain, and its collapse left potentially thousands of people stranded far from home. The British government said it had asked bus and train operators to accept Flybe tickets and other airlines to offer reductions to help passengers reach their destination. Flybe's owner, the Connect Airways consortium, said "every possible attempt" had been made to avoid the collapse, but that the airline had been "unable to overcome significant funding challenges". At the start of the year, Flybe agreed a payment plan with authorities to defer tax payments of less than £10 million. That announcement came just days after the airline was saved from collapse in a last-minute financial rescue, with Prime Minister Boris Johnson's Conservative government agreeing to review air passenger duty (APD) paid by Flybe's customers. Following the tax deferral, rival companies, including British Airways-parent IAG, complained to the European Union that it was receiving unfair state aid. The government said its assistance did not breach EU rules and that help was based on the importance of the company's domestic services. - Timely warning - Flybe's demise follows a timely coronavirus warning from Dublin-based low-cost airline Ryanair at the start of this week. The Irish carrier forecast that the fatal outbreak -- which has killed 3,200 and infected 95,000 worldwide so far -- would spark more European airline failures. "We expect that this COVID-19 virus will result in further EU airline failures over the coming weeks," Ryanair said Monday. Recent high-profile casualties in Europe's battered aviation sector include French carriers Aigle Azur and XL Airways, as well as Slovenia's Adria Airways and Britain's Thomas Cook, which was both a tour operator and an airline. In contrast to Flybe, Thomas Cook collapsed without any government assistance in September, causing the loss of 22,000 jobs worldwide and stranding 600,000 holidaymakers abroad.

UK airline Flybe dealt final blow by coronavirus

Mining baron Anil Agarwal has submitted an expression of interest (EoI) to revive Jet Airways which has been grounded since April 17 due to a severe liquidity crunch, leaving thousands of employees jobless.

Agarwal, Chairman of Vedanta Group, submitted the EoI through his family investment arm Volcan Investments before the close of the bidding process on Saturday afternoon.

The other entities who submitted EoIs are Panama-based Avantulo Group and Russian Fund Treasury RA Creator.

&nbsp;Reports said Volcan Investments' EoI is in no way linked to Vedanta.

Etihad Airways, which was expected to bid for Jet Airways, eventually backed out. And so did the Hinduja Group.<iframe frameborder="0" height="1" width="1"></iframe>

The three EoIs will be reviewed by resolution professional Ashish Chhawchharia to ascertain their eligibility. Late last month, the resolution professional had floated EoIs for selling stake in the airline.

In a statement to the exchanges, the resolution professional said the provisional list of prospective resolution applicants will be issued on August 13.

The estimated date of submitting a resolution plan before the National Company Law Tribunal is September 27.

Mining baron Anil Agarwal has submitted an expression of interest (EoI) to revive Jet Airways which has been grounded since April 17 due to a severe liquidity crunch, leaving thousands of employees jobless.

Mining baron Anil Agarwal has submitted an expression of interest (EoI) to revive Jet Airways which has been grounded since April 17 due to a severe liquidity crunch, leaving thousands of employees jobless. Agarwal, Chairman of Vedanta Group, submitted the EoI through his family investment arm Volcan Investments before the close of the bidding process on Saturday afternoon. The other entities who submitted EoIs are Panama-based Avantulo Group and Russian Fund Treasury RA Creator. Reports said Volcan Investments' EoI is in no way linked to Vedanta. Etihad Airways, which was expected to bid for Jet Airways, eventually backed out. And so did the Hinduja Group. The three EoIs will be reviewed by resolution professional Ashish Chhawchharia to ascertain their eligibility. Late last month, the resolution professional had floated EoIs for selling stake in the airline. In a statement to the exchanges, the resolution professional said the provisional list of prospective resolution applicants will be issued on August 13. The estimated date of submitting a resolution plan before the National Company Law Tribunal is September 27.

Jet Airways receives EoIs from Anil Agarwal’s family trust, two other companies

Ousted Nissan boss Carlos Ghosn promised to "tell the truth" at a news conference next week, taking to Twitter to announce his first briefing since being released on bail and hours after a report that prosecutors were preparing a fresh case against him.

Ghosn, widely lauded for rescuing Nissan Motor Co from the brink of bankruptcy two decades ago, has experienced a dramatic fall from grace that shook the global auto industry and raised questions about the future of Nissan's alliance with France's Renault SA.

He was arrested in Tokyo in November and faces charges of financial misconduct and aggravated breach of trust over allegedly failing to report around $82 million in salary and temporarily transferring personal financial losses onto Nissan's books during the financial crisis.

Released on $9 million bails last month, Ghosn has denied the charges, calling them "meritless" and saying he was the victim of a boardroom coup.

"I'm getting ready to tell the truth about what's happening. Press conference on Thursday, April 11," Ghosn tweeted from the @carlosghosn account on Twitter, which displayed the blue tick mark indicating it had been verified by the social media site.

The account was created this month. It was the sole tweet, posted in Japanese and English.

Under the terms of Ghosn's bail, he is not allowed to use the internet, although the tweet may have been made on his behalf, as is common with celebrities and other high-profile figures.

Representatives for Ghosn could not be reached for comment about the tweet.

Earlier, Japan's Yomiuri newspaper reported that Tokyo prosecutors are preparing to build a fresh case against him over suspect payments the automaker made to a business partner in Oman.

Prosecutors are in discussions with the Supreme Public Prosecutors Office and others and plan to make a decision soon on whether to prosecute Ghosn on further charges of aggravated breach of trust, the newspaper said, citing sources involved in the case.

A spokesman for the Tokyo prosecutors office said he was not aware of any new investigation when contacted by Reuters.

Ghosn's spokesman has previously said payments of $32 million made over nine years were rewards for the Oman firm being a top Nissan dealer. Such dealer incentives were not directed by Ghosn and the funds were not used to pay any personal debt, the spokesman said.

Sources told Reuters earlier this week that Renault SA had alerted French prosecutors after uncovering suspect payments to a Renault-Nissan business partner in Oman while Ghosn was chief executive of the French automaker.

Nissan had previously established that its own regional subsidiary had made questionable payments of more than $30 million to the Oman distributor, Suhail Bahwan Automobiles (SBA).

Evidence sent to French prosecutors late last week showed that much of the cash was subsequently channelled to a Lebanese company controlled by Ghosn associates, the sources said.

Ousted Nissan boss Carlos Ghosn promised to "tell the truth" at a news conference next week, taking to Twitter to announce his first briefing since being released on bail and hours after a report that prosecutors were preparing a fresh case against him.

Ousted Nissan boss Carlos Ghosn promised to "tell the truth" at a news conference next week, taking to Twitter to announce his first briefing since being released on bail and hours after a report that prosecutors were preparing a fresh case against him. Ghosn, widely lauded for rescuing Nissan Motor Co from the brink of bankruptcy two decades ago, has experienced a dramatic fall from grace that shook the global auto industry and raised questions about the future of Nissan's alliance with France's Renault SA. He was arrested in Tokyo in November and faces charges of financial misconduct and aggravated breach of trust over allegedly failing to report around $82 million in salary and temporarily transferring personal financial losses onto Nissan's books during the financial crisis. Released on $9 million bails last month, Ghosn has denied the charges, calling them "meritless" and saying he was the victim of a boardroom coup. "I'm getting ready to tell the truth about what's happening. Press conference on Thursday, April 11," Ghosn tweeted from the @carlosghosn account on Twitter, which displayed the blue tick mark indicating it had been verified by the social media site. The account was created this month. It was the sole tweet, posted in Japanese and English. Under the terms of Ghosn's bail, he is not allowed to use the internet, although the tweet may have been made on his behalf, as is common with celebrities and other high-profile figures. Representatives for Ghosn could not be reached for comment about the tweet. Earlier, Japan's Yomiuri newspaper reported that Tokyo prosecutors are preparing to build a fresh case against him over suspect payments the automaker made to a business partner in Oman. Prosecutors are in discussions with the Supreme Public Prosecutors Office and others and plan to make a decision soon on whether to prosecute Ghosn on further charges of aggravated breach of trust, the newspaper said, citing sources involved in the case. A spokesman for the Tokyo prosecutors office said he was not aware of any new investigation when contacted by Reuters. Ghosn's spokesman has previously said payments of $32 million made over nine years were rewards for the Oman firm being a top Nissan dealer. Such dealer incentives were not directed by Ghosn and the funds were not used to pay any personal debt, the spokesman said. Sources told Reuters earlier this week that Renault SA had alerted French prosecutors after uncovering suspect payments to a Renault-Nissan business partner in Oman while Ghosn was chief executive of the French automaker. Nissan had previously established that its own regional subsidiary had made questionable payments of more than $30 million to the Oman distributor, Suhail Bahwan Automobiles (SBA). Evidence sent to French prosecutors late last week showed that much of the cash was subsequently channelled to a Lebanese company controlled by Ghosn associates, the sources said.

Will be telling the truth about what's happening, says Ghosn

<a href="https://www.wionews.com/business-economy/jet-airways-pilots-defer-decision-not-to-fly-sets-april-15-deadline-to-clear-dues-207023">Jet Airways</a> shares fell as much as 4 per cent in early trade on Wednesday after it said the previous day it has grounded 15 more planes due to non-payment of dues to its lessors.

The latest groundings mean more than two-thirds of its total fleet of about 120 planes are not flying.

The airline, which was on the brink of bankruptcy, was bailed out in March by state-run banks that will temporarily take a majority stake in the company and give it a new loan of $218 million.

After the bailout Jet told officials at the civil aviation ministry that the airline would not ground more planes and would fly 40 more aircraft by the end of April.

The stock has shed more than half of its value in a year as of Tuesday's close.

Jet Airways shares fell as much as 4 per cent in early trade on Wednesday after it said the previous day it has grounded 15 more planes due to non-payment of dues to its lessors.

Jet Airways shares fell as much as 4 per cent in early trade on Wednesday after it said the previous day it has grounded 15 more planes due to non-payment of dues to its lessors. The latest groundings mean more than two-thirds of its total fleet of about 120 planes are not flying. The airline, which was on the brink of bankruptcy, was bailed out in March by state-run banks that will temporarily take a majority stake in the company and give it a new loan of $218 million. After the bailout Jet told officials at the civil aviation ministry that the airline would not ground more planes and would fly 40 more aircraft by the end of April. The stock has shed more than half of its value in a year as of Tuesday's close.

Jet Airways shares fall as it grounds more planes over unpaid lessor dues

Pakistan's Finance Minister Asad Umar on Wednesday claimed that basic debts of the <a href="https://www.wionews.com/south-asia/imran-khans-promise-of-naya-pakistan-a-distant-dream-as-pakistan-economy-struggles-207337">Islamic Republic</a> are so big that it's near<a href="https://www.wionews.com/south-asia/pakistan-imf-close-to-reaching-deal-on-bailout-207334"> bankruptcy</a>.

The Finance Minister said this in a live session on Social Media in Islamabad.

“You are going to the IMF with these massive debts in the toe for a bailout. We have had to fill big gaps” the minister was quoted as saying by Pakistan media.

Pakistan's economic growth is set to slump further to 3.9 per cent in the fiscal year 2019 from 5.2 per cent in 2018, the Asian Development Bank forecast Wednesday, citing the "macroeconomic challenges" faced by the cash-strapped country.

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<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/AskAsadUmar?src=hash&amp;ref_src=twsrc%5Etfw">#AskAsadUmar</a> 
 
"Our basic debts are so big that we are near bankruptcy. You are going go the IMF with these massive debts in toe for a bailout. We have had to fill big gaps; the last three months of PMLn we were bleeding 2 billion dollars" <a href="https://twitter.com/Asad_Umar?ref_src=twsrc%5Etfw">@Asad_Umar</a>
— Tehreek-e-Insaf (@InsafPK) <a href="https://twitter.com/InsafPK/status/1113437747249909762?ref_src=twsrc%5Etfw">April 3, 2019</a></blockquote>
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Earlier on April 1, Asad Umar had said that negotiations with International Monetary Fund (IMF) have reached its final stage with a settlement of almost all issues related to a bailout package.

According to reports, Pakistan intends to seek for a loan worth $6 to $8 billion from the IMF.&nbsp;

However, a final agreement between the two is expected to finalise when the IMF and the World Bank holds a session in April in Washington.

Pakistan's consumer price inflation rose to 9.41 per cent year-on-year, up from 8.21 per cent in February, after citing a data released by the Bureau of Statistics on Monday.

Last week, Pakistan's Central Bank lifted its key policy rate by 50 basis points to 10.75 per cent, citing continuing inflationary pressures as well as high fiscal and current account deficits.

Consumer price inflation has jumped sharply over the past year, climbing from under four per cent at the start of 2018, lifted by sharp rises in food, fuel and transport costs that have squeezed household budgets.

(With inputs from agencies)

Pakistan's Finance Minister Asad Umar on Wednesday claimed that basic debts of the Islamic Republic are so big that it's near bankruptcy. The Finance Minister said this in a live session on Social Media in Islamabad.

Pakistan's Finance Minister Asad Umar on Wednesday claimed that basic debts of the Islamic Republic are so big that it's near bankruptcy. The Finance Minister said this in a live session on Social Media in Islamabad. “You are going to the IMF with these massive debts in the toe for a bailout. We have had to fill big gaps” the minister was quoted as saying by Pakistan media. Pakistan's economic growth is set to slump further to 3.9 per cent in the fiscal year 2019 from 5.2 per cent in 2018, the Asian Development Bank forecast Wednesday, citing the "macroeconomic challenges" faced by the cash-strapped country. #AskAsadUmar "Our basic debts are so big that we are near bankruptcy. You are going go the IMF with these massive debts in toe for a bailout. We have had to fill big gaps; the last three months of PMLn we were bleeding 2 billion dollars" @Asad_Umar — Tehreek-e-Insaf (@InsafPK) April 3, 2019 × Earlier on April 1, Asad Umar had said that negotiations with International Monetary Fund (IMF) have reached its final stage with a settlement of almost all issues related to a bailout package. According to reports, Pakistan intends to seek for a loan worth $6 to $8 billion from the IMF. However, a final agreement between the two is expected to finalise when the IMF and the World Bank holds a session in April in Washington. Pakistan's consumer price inflation rose to 9.41 per cent year-on-year, up from 8.21 per cent in February, after citing a data released by the Bureau of Statistics on Monday. Last week, Pakistan's Central Bank lifted its key policy rate by 50 basis points to 10.75 per cent, citing continuing inflationary pressures as well as high fiscal and current account deficits. Consumer price inflation has jumped sharply over the past year, climbing from under four per cent at the start of 2018, lifted by sharp rises in food, fuel and transport costs that have squeezed household budgets. (With inputs from agencies)

Pakistan’s basic debts are so big that it's near bankruptcy, says Finance Minister Asad Umar

India's government has asked state-run banks to rescue privately held Jet Airways without pushing it into bankruptcy, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election, two people within the administration told Reuters.

The finance ministry has in the past year sought regular updates from the banks, led by State Bank of India (SBI), on Jet's financial health, the people said. In recent months, the banks have provided weekly updates about a revival plan and also sought government advice, the people added.

"Top officials at the finance ministry seek regular updates on the issue," said an official at one of Jet's lenders, who did not want to be identified as discussions are private.

Details of the discussion between the finance ministry and bankers on bailing out Jet have not been previously reported.

New Delhi has urged state-run banks to convert debt into equity and take a stake in Jet in a rare move in India to use taxpayer money to save a struggling private-sector company from bankruptcy. The two people plus one more source, however, said this would be "transitory" and lenders could sell the stakes once Jet revives.

The government has also nudged its 49 per cent-owned National Investment and Infrastructure Fund (NIIF) - created to invest in stalled and new infrastructure projects - to buy a stake in Jet, a separate government source said.

Saddled with more than US $1 billion of debt, Jet is struggling to stay aloft. It has delayed payments to banks, suppliers, employees and aircraft lessors - some of which have begun terminating lease deals.

The world's biggest democracy is gearing up for an election next month and its booming aviation sector, which employs close to a million people, has been one of the job-creation success stories that Modi can point to as he seeks a second term.

It is crucial for India that Jet revives as the fall of its second-largest airline could have "disastrous consequences for the investment climate" in the sector, a top government official said.

The official is concerned that if Jet collapses it could drive up airfare in a fast-growing market, wiping out efforts to bring low-cost air travel to India's hinterland.

A chaotic end could also make it more difficult for the government to sell a stake in Air India, at least in the short run. Last year, it failed to sell part of its stake in the indebted carrier which currently relies on taxpayer money.

If the government's plan for Jet succeeds, then state-run banks including SBI and Punjab National Bank (PNB) as well as NIIF would together own at least a third of the airline until they find a new buyer.

Currently, Abu Dhabi's Etihad Airways is Jet's largest shareholder with a 24 per cent stake.

India's finance ministry, SBI, PNB and Jet Airways did not respond to requests for comment.

KINGFISHER'S COLLAPSE

Most companies in Jet's financial condition would be placed by creditors into India's new bankruptcy process, two bankers said. However, memories of the chaos sparked by Kingfisher Airlines's demise in 2012 have prompted the government to seek a more sober road to rescue, they said.

Kingfisher's bankruptcy caused job losses, lessors lost millions of dollars and banks took massive writedowns.

Putting what is essentially a services provider like Jet through the bankruptcy process would diminish its value because it owns no major assets, unlike a manufacturing company, as most of its planes are leased, said another government official.

If it is pushed into bankruptcy and lessors start pulling even more planes out of service, there would be nothing left for any potential investors, the official said. Already 41 planes have been grounded by lessors in the past three months, leading to flight cancellations.

While on the surface Jet's future still hangs in the balance with its main shareholder Etihad at loggerheads over the final terms of any deal, behind-the-scenes support from the government means there is likely to be a bailout.

But there are no easy options, one of the sources said, adding that the lenders do not have the expertise to run an airline so they have to decide what to do once they convert their debt into equity.

New Delhi is also backing a proposal for Jet's founder and Chairman Naresh Goyal to step down if it means saving the airline, another official said.

"Saving Jet is not equivalent to saving Goyal," the official said.

RISING AIRFARE

Jet, with its fleet of 119 planes, once controlled a sixth of India's domestic aviation market. The 25-year-old airline is also one of only two full-service carriers that flies to international destinations. The other is Air India.

The government ideally wants four to six major airlines to ensure fares are competitive and passengers have greater choice, according to the top government source.

India plans to build 100 new airports costing about $60 billion which would need a steady stream of flights to sustain them, and that is possible only if there are enough airlines, a separate official said.

"The investment in these airports will solely depend on operators willing to have regular flights at affordable prices and one operator going bankrupt does not help," he said.

India's government has asked state-run banks to rescue privately held Jet Airways without pushing it into bankruptcy, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election, two people within the administration told Reuters.

India's government has asked state-run banks to rescue privately held Jet Airways without pushing it into bankruptcy, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election, two people within the administration told Reuters. The finance ministry has in the past year sought regular updates from the banks, led by State Bank of India (SBI), on Jet's financial health, the people said. In recent months, the banks have provided weekly updates about a revival plan and also sought government advice, the people added. "Top officials at the finance ministry seek regular updates on the issue," said an official at one of Jet's lenders, who did not want to be identified as discussions are private. Details of the discussion between the finance ministry and bankers on bailing out Jet have not been previously reported. New Delhi has urged state-run banks to convert debt into equity and take a stake in Jet in a rare move in India to use taxpayer money to save a struggling private-sector company from bankruptcy. The two people plus one more source, however, said this would be "transitory" and lenders could sell the stakes once Jet revives. The government has also nudged its 49 per cent-owned National Investment and Infrastructure Fund (NIIF) - created to invest in stalled and new infrastructure projects - to buy a stake in Jet, a separate government source said. Saddled with more than US $1 billion of debt, Jet is struggling to stay aloft. It has delayed payments to banks, suppliers, employees and aircraft lessors - some of which have begun terminating lease deals. The world's biggest democracy is gearing up for an election next month and its booming aviation sector, which employs close to a million people, has been one of the job-creation success stories that Modi can point to as he seeks a second term. It is crucial for India that Jet revives as the fall of its second-largest airline could have "disastrous consequences for the investment climate" in the sector, a top government official said. The official is concerned that if Jet collapses it could drive up airfare in a fast-growing market, wiping out efforts to bring low-cost air travel to India's hinterland. A chaotic end could also make it more difficult for the government to sell a stake in Air India, at least in the short run. Last year, it failed to sell part of its stake in the indebted carrier which currently relies on taxpayer money. If the government's plan for Jet succeeds, then state-run banks including SBI and Punjab National Bank (PNB) as well as NIIF would together own at least a third of the airline until they find a new buyer. Currently, Abu Dhabi's Etihad Airways is Jet's largest shareholder with a 24 per cent stake. India's finance ministry, SBI, PNB and Jet Airways did not respond to requests for comment. KINGFISHER'S COLLAPSE Most companies in Jet's financial condition would be placed by creditors into India's new bankruptcy process, two bankers said. However, memories of the chaos sparked by Kingfisher Airlines's demise in 2012 have prompted the government to seek a more sober road to rescue, they said. Kingfisher's bankruptcy caused job losses, lessors lost millions of dollars and banks took massive writedowns. Putting what is essentially a services provider like Jet through the bankruptcy process would diminish its value because it owns no major assets, unlike a manufacturing company, as most of its planes are leased, said another government official. If it is pushed into bankruptcy and lessors start pulling even more planes out of service, there would be nothing left for any potential investors, the official said. Already 41 planes have been grounded by lessors in the past three months, leading to flight cancellations. While on the surface Jet's future still hangs in the balance with its main shareholder Etihad at loggerheads over the final terms of any deal, behind-the-scenes support from the government means there is likely to be a bailout. But there are no easy options, one of the sources said, adding that the lenders do not have the expertise to run an airline so they have to decide what to do once they convert their debt into equity. New Delhi is also backing a proposal for Jet's founder and Chairman Naresh Goyal to step down if it means saving the airline, another official said. "Saving Jet is not equivalent to saving Goyal," the official said. RISING AIRFARE Jet, with its fleet of 119 planes, once controlled a sixth of India's domestic aviation market. The 25-year-old airline is also one of only two full-service carriers that flies to international destinations. The other is Air India. The government ideally wants four to six major airlines to ensure fares are competitive and passengers have greater choice, according to the top government source. India plans to build 100 new airports costing about $60 billion which would need a steady stream of flights to sustain them, and that is possible only if there are enough airlines, a separate official said. "The investment in these airports will solely depend on operators willing to have regular flights at affordable prices and one operator going bankrupt does not help," he said.

Government asked banks to save Jet Airways, avoid bankruptcy: Sources

<a href="https://www.google.com/url?q=http://www.wionews.com/world/ghosn-appeals-against-japan-bail-rejection-190912&amp;sa=U&amp;ved=0ahUKEwjC2LmHh_7fAhUHQY8KHT8yAZUQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3_ta3bX0cHFWhyVlY_smMn">Carlos Ghosn</a>, the ousted Nissan boss detained in Tokyo on charges of financial misconduct, on Monday vowed to remain in Japan if granted bail and again proclaimed his innocence.

The Tokyo District Court will later Monday consider the 64-year-old's latest petition for bail but has already rejected previous applications, judging Ghosn a flight risk who might seek to destroy evidence.

"As the court considers my bail application, I want to emphasise that I will reside in Japan and respect any and all bail conditions the Court concludes are warranted," Ghosn said in a statement released by his US-based representatives.

He vowed to attend any subsequent trial "not only because I am legally obligated to do so, but because I am eager to finally have the opportunity to defend myself".

"I am not guilty of the charges against me and I look forward to defending my reputation in the courtroom," concluded the statement.

A spokeswoman for Ghosn, Devon Spurgeon, said his family had already rented an apartment in Tokyo where he promised to reside while awaiting trial.

He has also promised to hand over his passports, refrain from contacting people connected with the case and pay for security guards approved by prosecutors to monitor his movements, according to Spurgeon.

She added that Ghosn has also offered a higher bail fee by stumping up Nissan stock as collateral and promised to wear an electronic tracking bracelet paid for by himself.

The <a href="https://www.google.com/url?q=http://www.wionews.com/world/tokyo-court-denies-the-request-for-carlos-ghosns-release-on-bail-190413&amp;sa=U&amp;ved=0ahUKEwivkN-Zh_7fAhXWfisKHaWzAT0QFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1fKK4zKmip-iUFK4R2emGM">Tokyo court </a>has dismissed all previous attempts by Ghosn to secure his freedom and even his lead lawyer has said he is unlikely to be granted bail until a trial takes place — which could take six months.

However, the case has been full of twists and turns that have kept Japan and the business world gripped since his first stunning arrest as he landed in his private jet at Haneda Airport.

The Franco-Lebanese-Brazilian executive said he has been in his Tokyo detention cell for 64 days "with no release in sight".

Since then, he has only been seen in public once, in a dramatic court appearance where the much thinner executive pleaded his innocence in a packed courtroom.

His wife Carole has appealed to Human Rights Watch, claiming he is being held in "harsh" conditions and subjected to round-the-clock interrogations intended to extract a confession.

'Solid, stable, sustainable governance'&nbsp;

Ghosn's arrest represented a sudden fall from grace for a once-revered tycoon widely credited with turning Nissan around from the verge of bankruptcy.

Nissan immediately ousted him as chairman after the arrest, as did Mitsubishi Motors, the other Japanese firm in the three-way alliance with Renault.

The French firm is expected to meet later this week to discuss removing Ghosn as chairman and CEO. French government officials have already urged the company's board to pick a "new lasting leadership".

Late Sunday, Nissan held an inaugural meeting of a special committee designed to improve governance in the wake of the scandal.

The head of the committee, Seiichiro Nishioka, said the problem was "an excessive concentration of authority in the hands of a single person".

The committee is expected to meet three or four additional times before issuing a final report at the end of March.

The charges against Ghosn are that he under-declared his income in official documents to shareholders over an eight-year period — in an apparent bid to dodge accusations he was overpaid.

In addition, prosecutors have formally charged him with involvement in a complex scheme they say was designed to make Nissan pay for personal investment losses sustained in the financial crisis of 2008.

Ghosn's arrest has thrown into question the future of the auto alliance he forged, which has come under pressure in his absence.

French Economy Minister Bruno Le Maire on Sunday denied talk of a potential merger between Renault and Nissan, despite reports in the Japanese media that Paris was pushing for that outcome.

"The subject is not on the table today. What is on the table today is the governance of Renault," he told journalists during a visit to Cairo.

"The most important thing for us is to have solid, stable, sustainable governance for Renault."

 
&nbsp;

Carlos Ghosn, the ousted Nissan boss detained in Tokyo on charges of financial misconduct, on Monday vowed to remain in Japan if granted bail and again proclaimed his innocence.

Carlos Ghosn, the ousted Nissan boss detained in Tokyo on charges of financial misconduct, on Monday vowed to remain in Japan if granted bail and again proclaimed his innocence. The Tokyo District Court will later Monday consider the 64-year-old's latest petition for bail but has already rejected previous applications, judging Ghosn a flight risk who might seek to destroy evidence. "As the court considers my bail application, I want to emphasise that I will reside in Japan and respect any and all bail conditions the Court concludes are warranted," Ghosn said in a statement released by his US-based representatives. He vowed to attend any subsequent trial "not only because I am legally obligated to do so, but because I am eager to finally have the opportunity to defend myself". "I am not guilty of the charges against me and I look forward to defending my reputation in the courtroom," concluded the statement. A spokeswoman for Ghosn, Devon Spurgeon, said his family had already rented an apartment in Tokyo where he promised to reside while awaiting trial. He has also promised to hand over his passports, refrain from contacting people connected with the case and pay for security guards approved by prosecutors to monitor his movements, according to Spurgeon. She added that Ghosn has also offered a higher bail fee by stumping up Nissan stock as collateral and promised to wear an electronic tracking bracelet paid for by himself. The Tokyo court has dismissed all previous attempts by Ghosn to secure his freedom and even his lead lawyer has said he is unlikely to be granted bail until a trial takes place — which could take six months. However, the case has been full of twists and turns that have kept Japan and the business world gripped since his first stunning arrest as he landed in his private jet at Haneda Airport. The Franco-Lebanese-Brazilian executive said he has been in his Tokyo detention cell for 64 days "with no release in sight". Since then, he has only been seen in public once, in a dramatic court appearance where the much thinner executive pleaded his innocence in a packed courtroom. His wife Carole has appealed to Human Rights Watch, claiming he is being held in "harsh" conditions and subjected to round-the-clock interrogations intended to extract a confession. 'Solid, stable, sustainable governance' Ghosn's arrest represented a sudden fall from grace for a once-revered tycoon widely credited with turning Nissan around from the verge of bankruptcy. Nissan immediately ousted him as chairman after the arrest, as did Mitsubishi Motors, the other Japanese firm in the three-way alliance with Renault. The French firm is expected to meet later this week to discuss removing Ghosn as chairman and CEO. French government officials have already urged the company's board to pick a "new lasting leadership". Late Sunday, Nissan held an inaugural meeting of a special committee designed to improve governance in the wake of the scandal. The head of the committee, Seiichiro Nishioka, said the problem was "an excessive concentration of authority in the hands of a single person". The committee is expected to meet three or four additional times before issuing a final report at the end of March. The charges against Ghosn are that he under-declared his income in official documents to shareholders over an eight-year period — in an apparent bid to dodge accusations he was overpaid. In addition, prosecutors have formally charged him with involvement in a complex scheme they say was designed to make Nissan pay for personal investment losses sustained in the financial crisis of 2008. Ghosn's arrest has thrown into question the future of the auto alliance he forged, which has come under pressure in his absence. French Economy Minister Bruno Le Maire on Sunday denied talk of a potential merger between Renault and Nissan, despite reports in the Japanese media that Paris was pushing for that outcome. "The subject is not on the table today. What is on the table today is the governance of Renault," he told journalists during a visit to Cairo. "The most important thing for us is to have solid, stable, sustainable governance for Renault."

Ghosn vows to stay in Japan if granted bail

Embattled <a href="http://www.wionews.com/sports/watch-vijay-mallya-enters-the-oval-stadium-to-watch-test-match-between-india-and-england-164321">liquor tycoon Vijay Mallya’</a>s legal troubles continue to mount as he is set to face bankruptcy proceedings in the <a href="http://www.wionews.com/india-news/vijay-mallya-extradition-uk-court-asks-indian-government-to-submit-videos-of-arthur-road-jail-by-september-12-156067">UK High Court </a>next year, brought by a consortium of Indian banks in their attempt to recoup unpaid debt worth nearly 1.145 billion pounds.&nbsp;

TLT LLP, the UK-based law firm which had won a landmark case for the 13 banks led by State Bank of India (SBI) earlier this year, confirmed on Monday that their bankruptcy petition against the 62-year-old businessman has been transferred to the insolvency list in London’s High Court of Justice for a hearing in the first half of 2019.

“We can confirm that we presented a bankruptcy petition against Dr Mallya on behalf of the banks on 11 September 2018,” said Paul Gair, a partner at TLT.&nbsp;

“This was issued in Dr Mallya’s local court, Northampton County Court, and has now been transferred to the insolvency list in the High Court of Justice in London for the hearing. The hearing is expected to take place in the Spring,” he said.

In a ruling in May, a UK High Court judge had refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that the consortium of 13 Indian banks was entitled to recover funds amounting to nearly 1.145 billion pounds.

TLT LLP has been representing the banks in their efforts to recover their dues as part of the worldwide freezing order, with the bankruptcy petition aimed at seizing his assets to recover dues.

Besides SBI, the 13 Indian banks include Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu &amp; Kashmir Bank, Punjab &amp; Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co Pvt Ltd. They have secured follow-on High Court orders to recover some of the funds owed to them as a result of unpaid loans by Mallya’s now-defunct Kingfisher Airlines.

Mallya, meanwhile, remains on bail after his extradition was recently ordered by Westminster Magistrates’ Court in London, an order which now awaits a sign-off by UK home secretary Sajid Javid.&nbsp;

Chief Magistrate, Judge Emma Arbuthnot, had ruled last week that Mallya does have a case to answer in the Indian courts over substantial “misrepresentations” of his financial dealings, in a boost to India’s efforts to bring back the businessman wanted for alleged bank fraud and money laundering charges amounting to an estimated Rs 9,000 crores.&nbsp;

“There is clear evidence of dispersal and misapplication of the loan funds and I find a prima facie case the Dr Mallya was involved in a conspiracy to launder money,” the ruling noted.

Mallya has indicated that he plans to appeal the verdict in the High Court. &nbsp;“My legal team will review the judgment in detail, consider various options and then I will decide going forward. There is a process ahead,” he told reporters. He will have 14 days to file an appeal once Javid has made his decision on the extradition order, which rarely goes against the Chief Magistrate’s conclusion.&nbsp;

In separate legal proceedings, Mallya is also set for a trial in May next year to prevent his posh London home, overlooking Regent’s Park, from foreclosure by Swiss Bank UBS.

Embattled liquor tycoon Vijay Mallya’s legal troubles continue to mount as he is set to face bankruptcy proceedings in the UK High Court next year, brought by a consortium of Indian banks in their attempt to recoup unpaid debt worth nearly 1.

Embattled liquor tycoon Vijay Mallya’s legal troubles continue to mount as he is set to face bankruptcy proceedings in the UK High Court next year, brought by a consortium of Indian banks in their attempt to recoup unpaid debt worth nearly 1.145 billion pounds. TLT LLP, the UK-based law firm which had won a landmark case for the 13 banks led by State Bank of India (SBI) earlier this year, confirmed on Monday that their bankruptcy petition against the 62-year-old businessman has been transferred to the insolvency list in London’s High Court of Justice for a hearing in the first half of 2019. “We can confirm that we presented a bankruptcy petition against Dr Mallya on behalf of the banks on 11 September 2018,” said Paul Gair, a partner at TLT. “This was issued in Dr Mallya’s local court, Northampton County Court, and has now been transferred to the insolvency list in the High Court of Justice in London for the hearing. The hearing is expected to take place in the Spring,” he said. In a ruling in May, a UK High Court judge had refused to overturn a worldwide order freezing Mallya’s assets and upheld an Indian court’s ruling that the consortium of 13 Indian banks was entitled to recover funds amounting to nearly 1.145 billion pounds. TLT LLP has been representing the banks in their efforts to recover their dues as part of the worldwide freezing order, with the bankruptcy petition aimed at seizing his assets to recover dues. Besides SBI, the 13 Indian banks include Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co Pvt Ltd. They have secured follow-on High Court orders to recover some of the funds owed to them as a result of unpaid loans by Mallya’s now-defunct Kingfisher Airlines. Mallya, meanwhile, remains on bail after his extradition was recently ordered by Westminster Magistrates’ Court in London, an order which now awaits a sign-off by UK home secretary Sajid Javid. Chief Magistrate, Judge Emma Arbuthnot, had ruled last week that Mallya does have a case to answer in the Indian courts over substantial “misrepresentations” of his financial dealings, in a boost to India’s efforts to bring back the businessman wanted for alleged bank fraud and money laundering charges amounting to an estimated Rs 9,000 crores. “There is clear evidence of dispersal and misapplication of the loan funds and I find a prima facie case the Dr Mallya was involved in a conspiracy to launder money,” the ruling noted. Mallya has indicated that he plans to appeal the verdict in the High Court. “My legal team will review the judgment in detail, consider various options and then I will decide going forward. There is a process ahead,” he told reporters. He will have 14 days to file an appeal once Javid has made his decision on the extradition order, which rarely goes against the Chief Magistrate’s conclusion. In separate legal proceedings, Mallya is also set for a trial in May next year to prevent his posh London home, overlooking Regent’s Park, from foreclosure by Swiss Bank UBS.

Vijay Mallya faces bankruptcy proceedings in UK High Court

Malaysian billionaire T Ananda Krishnan&#39;s mobile firm Aircel today filed for bankruptcy protection from creditors, saying high debt and mounting losses, following a price war triggered by a new entrant, have led the company to troubled times.

Aircel, 74 per cent owned by Malaysia&#39;s Maxis Communications Bhd, first tried a merger with Reliance Communications Ltd but the plan failed late last year due to regulatory and legal uncertainties. Later, it tried to unsuccessfully restructure its Rs 15,500 crore debt.

After failing on all options, it filed for bankruptcy with the National Company Law Tribunal (NCLT), Mumbai.

In a statement, Aircel said that intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant &quot;negative business and reputational impact&quot; on the company.

&quot;The Board of Directors of the Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel Ltd,&quot; it said.

Krishnan, Malaysia&#39;s third-richest man, had entered India in 2005 when his firm bought a majority stake in Aircel for about USD 1 billion and infused money to build the business. Aircel had 85 million subscribers as of end-December and was ranked India&#39;s sixth-largest operator.

&quot;The Board of Directors acknowledged that it has been facing troubled times in a highly financially stressed industry, owing to intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses,&quot; Aircel said.

This, it added, caused significant negative business and reputational impact on the company.

Aircel had recently shut its services in six circles - Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Maharashtra and Uttar Pradesh (West).

The company, last week, wrote to the Telecom Regulatory Authority of India (Trai) admitting that is undergoing &quot;deep financial stress&quot; and that it has been severely impacted by a major infrastructure provider GTL Infra shutting off as much as a third of its total sites in different circles or telecom service areas across the country.

The disruption of its services in the licensed service areas -- Andhra Pradesh, Assam, Bihar, Delhi, Jammu &amp; Kashmir, Karnataka, Kerala, Kolkata, Mumbai, North East, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (East) and West Bengal, had inconvenienced a large number of subscribers, who faced difficulties in services and in porting their mobile number to another operator.

This prompted Trai yesterday to issue a directive to Aircel allotting it additional port out codes to enable smooth migration of its subscribers to other networks without changing mobile numbers.

Adding to its woes, Idea Cellular in early February snapped interconnect services with Aircel, citing non-payment of dues. Vodafone too is learnt to have suspended most inter-circle interconnect services like messaging, local and international calling facility with Aircel on account of outstanding dues.

Aircel statement today stressed that the Corporate Insolvency Resolution Process is not a proceeding for liquidation.

&quot;...Rather is a process to find best possible resolution for the current situation and that would be in the best interest of everyone (vendors, distributors, employees, etc.) to protect and preserve the value of the company and manage the operations,&quot; it added.

The company sought co-operation from vendors and channels partners, while the IBC process is underway, urging them to continue their services for its ongoing business.

&quot;The company would like to communicate to all the customers that it would strive hard to provide uninterrupted service connectivity to them and appeals to them for their support during the current difficult period,&quot; Aircel added.

The entry of aggressive newcomer Reliance Jio and its disruptive offerings have forced mobile operators to respond with matching tariffs, hurting their financials and increasing their debt burden.

Many of the smaller operators have succumbed to market pressure and opted to merge or get acquired by larger players.

Telenor agreed to sell its India business to Bharti Airtel, and the Sunil Mittal-owned company has also announced that it will acquire the consumer mobile business of Tata Teleservices on debt-free cash-free basis.

In December 2017, billionaire Mukesh Ambani stepped in to bail out younger brother Anil Ambani&#39;s debt-ridden Reliance Communications by acquiring spectrum, tower, optical fibre network and other wireless assets.

The spate of consolidation is expected to leave the Indian mobile market with just about four operators as Vodafone and Idea Cellular are in the process of merging their businesses.

Aircel had recently shut its services in six circles - Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Maharashtra and Uttar Pradesh (West).

Malaysian billionaire T Ananda Krishnan's mobile firm Aircel today filed for bankruptcy protection from creditors, saying high debt and mounting losses, following a price war triggered by a new entrant, have led the company to troubled times. Aircel, 74 per cent owned by Malaysia's Maxis Communications Bhd, first tried a merger with Reliance Communications Ltd but the plan failed late last year due to regulatory and legal uncertainties. Later, it tried to unsuccessfully restructure its Rs 15,500 crore debt. After failing on all options, it filed for bankruptcy with the National Company Law Tribunal (NCLT), Mumbai. In a statement, Aircel said that intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant "negative business and reputational impact" on the company. "The Board of Directors of the Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel Ltd," it said. Krishnan, Malaysia's third-richest man, had entered India in 2005 when his firm bought a majority stake in Aircel for about USD 1 billion and infused money to build the business. Aircel had 85 million subscribers as of end-December and was ranked India's sixth-largest operator. "The Board of Directors acknowledged that it has been facing troubled times in a highly financially stressed industry, owing to intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses," Aircel said. This, it added, caused significant negative business and reputational impact on the company. Aircel had recently shut its services in six circles - Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Maharashtra and Uttar Pradesh (West). The company, last week, wrote to the Telecom Regulatory Authority of India (Trai) admitting that is undergoing "deep financial stress" and that it has been severely impacted by a major infrastructure provider GTL Infra shutting off as much as a third of its total sites in different circles or telecom service areas across the country. The disruption of its services in the licensed service areas -- Andhra Pradesh, Assam, Bihar, Delhi, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Mumbai, North East, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (East) and West Bengal, had inconvenienced a large number of subscribers, who faced difficulties in services and in porting their mobile number to another operator. This prompted Trai yesterday to issue a directive to Aircel allotting it additional port out codes to enable smooth migration of its subscribers to other networks without changing mobile numbers. Adding to its woes, Idea Cellular in early February snapped interconnect services with Aircel, citing non-payment of dues. Vodafone too is learnt to have suspended most inter-circle interconnect services like messaging, local and international calling facility with Aircel on account of outstanding dues. Aircel statement today stressed that the Corporate Insolvency Resolution Process is not a proceeding for liquidation. "...Rather is a process to find best possible resolution for the current situation and that would be in the best interest of everyone (vendors, distributors, employees, etc.) to protect and preserve the value of the company and manage the operations," it added. The company sought co-operation from vendors and channels partners, while the IBC process is underway, urging them to continue their services for its ongoing business. "The company would like to communicate to all the customers that it would strive hard to provide uninterrupted service connectivity to them and appeals to them for their support during the current difficult period," Aircel added. The entry of aggressive newcomer Reliance Jio and its disruptive offerings have forced mobile operators to respond with matching tariffs, hurting their financials and increasing their debt burden. Many of the smaller operators have succumbed to market pressure and opted to merge or get acquired by larger players. Telenor agreed to sell its India business to Bharti Airtel, and the Sunil Mittal-owned company has also announced that it will acquire the consumer mobile business of Tata Teleservices on debt-free cash-free basis. In December 2017, billionaire Mukesh Ambani stepped in to bail out younger brother Anil Ambani's debt-ridden Reliance Communications by acquiring spectrum, tower, optical fibre network and other wireless assets. The spate of consolidation is expected to leave the Indian mobile market with just about four operators as Vodafone and Idea Cellular are in the process of merging their businesses.

Aircel blames competition, mounting losses for filing bankruptcy

<a href="http://www.wionews.com/world/close-donald-trump-aide-and-white-house-communications-chief-hope-hicks-resigns-34376">Close Donald Trump aide and White House communications chief Hope Hicks resigns</a>

Hope Hicks, one of US President Donald Trump&#39;s longest-serving aides, is resigning from her job as White House communications director, White House spokeswoman Sarah Sanders said on Wednesday.

<a href="http://www.wionews.com/india-news/aircel-files-for-bankruptcy-blames-competition-financial-woes-34390">Aircel files for bankruptcy;</a><a href="http://www.wionews.com/india-news/aircel-files-for-bankruptcy-blames-competition-financial-woes-34390">blames</a><a href="http://www.wionews.com/india-news/aircel-files-for-bankruptcy-blames-competition-financial-woes-34390"> competition, financial woes</a>

Malaysian billionaire T Ananda Krishnan&#39;s mobile firm Aircel today filed for bankruptcy protection from creditors, saying high debt and mounting losses, following a price war triggered by a new entrant, have led the company to troubled times.

<a href="http://www.wionews.com/india-news/terrorist-killed-in-encounter-in-jks-bandipora-district-34385">Terrorist killed in encounter in J&amp;K&#39;s Bandipora district</a>

One terrorist has been killed in an encounter with security forces in Bandipora district of Jammu and Kashmir. The incident took place in Hajin area of the district.

<a href="http://www.wionews.com/world/walmart-raises-to-21-minimum-age-to-buy-firearms-ammo-34379">Walmart raises to 21 minimum age to buy firearms, ammo</a>

US retail giant Walmart announced Wednesday that it was raising to 21 its minimum age to buy firearms and ammunition, the latest US company to recalibrate its stance on weapons after a deadly Florida school shooting.

<a href="http://www.wionews.com/india-news/cops-to-be-deployed-near-schools-to-deter-eve-teasers-kejriwal-34383">Cops to be deployed near schools to deter eve-teasers: Kejriwal</a>

Delhi Chief Minister Arvind Kejriwal on Wednesday said a beat constable would be deployed near every school during the closing hours to ensure the safety of the girl students from eve-teasers.

Hicks, 29, was caught up in a controversy surrounding former White House staff secretary Rob Porter, whom she had been dating.

Close Donald Trump aide and White House communications chief Hope Hicks resigns Hope Hicks, one of US President Donald Trump's longest-serving aides, is resigning from her job as White House communications director, White House spokeswoman Sarah Sanders said on Wednesday. Aircel files for bankruptcy;blames competition, financial woes Malaysian billionaire T Ananda Krishnan's mobile firm Aircel today filed for bankruptcy protection from creditors, saying high debt and mounting losses, following a price war triggered by a new entrant, have led the company to troubled times. Terrorist killed in encounter in J&K's Bandipora district One terrorist has been killed in an encounter with security forces in Bandipora district of Jammu and Kashmir. The incident took place in Hajin area of the district. Walmart raises to 21 minimum age to buy firearms, ammo US retail giant Walmart announced Wednesday that it was raising to 21 its minimum age to buy firearms and ammunition, the latest US company to recalibrate its stance on weapons after a deadly Florida school shooting. Cops to be deployed near schools to deter eve-teasers: Kejriwal Delhi Chief Minister Arvind Kejriwal on Wednesday said a beat constable would be deployed near every school during the closing hours to ensure the safety of the girl students from eve-teasers.

WION News Brief, March 1, 2018

Telecom operator Aircel on Wednesday said it has filed for bankruptcy as the company has been facing &quot;troubled times&quot; in &quot;highly financially stressed&quot; industry.

In a statement, Aircel said that intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant &quot;negative business and reputational impact&quot; on the company.

&quot;The Board of Directors of the Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel Ltd,&quot; the the statement said.

Sources said that the filing was made in National Company Law Tribunal (NCLT) Mumbai.

The company statement also noted that efforts to merge wireless business with another operator did not yield any results and had ultimately lapsed in September 2017.

&quot;Post detailed discussions with the financial lenders and shareholders, the company could not reach consensus with respect to restructuring of its debt and funding. Despite these discussions and the invoking of a Strategic Debt Restructuring scheme in January 2018...No agreement could be reached,&quot; Aircel said.

The company also said it believes that in the current circumstances, resolution process under the Insolvency and Bankruptcy Code is an &quot;appropriate recourse&quot;.

&quot;The Company would like to emphasise that CIRP is not a proceeding for liquidation, rather is a process to find best possible resolution for the current situation and that would be in the best interest of everyone (vendors, distributors, employees, etc) to protect and preserve the value of the company and manage the operations,&quot; it added.

Aircel said it will strive to provide uninterrupted service connectivity to its customers and sought their support in the &quot;current difficult period&quot;.

Sources said that the filing was made in National Company Law Tribunal (NCLT) Mumbai.

Telecom operator Aircel on Wednesday said it has filed for bankruptcy as the company has been facing "troubled times" in "highly financially stressed" industry. In a statement, Aircel said that intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant "negative business and reputational impact" on the company. "The Board of Directors of the Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel Ltd," the the statement said. Sources said that the filing was made in National Company Law Tribunal (NCLT) Mumbai. The company statement also noted that efforts to merge wireless business with another operator did not yield any results and had ultimately lapsed in September 2017. "Post detailed discussions with the financial lenders and shareholders, the company could not reach consensus with respect to restructuring of its debt and funding. Despite these discussions and the invoking of a Strategic Debt Restructuring scheme in January 2018...No agreement could be reached," Aircel said. The company also said it believes that in the current circumstances, resolution process under the Insolvency and Bankruptcy Code is an "appropriate recourse". "The Company would like to emphasise that CIRP is not a proceeding for liquidation, rather is a process to find best possible resolution for the current situation and that would be in the best interest of everyone (vendors, distributors, employees, etc) to protect and preserve the value of the company and manage the operations," it added. Aircel said it will strive to provide uninterrupted service connectivity to its customers and sought their support in the "current difficult period".

Aircel files for bankruptcy; cites intense competition, unsustainable debt

Marco Streng is a miner, though he does not carry a pick around his base in south-west Iceland. Instead, he keeps tens of thousands of computers running 24 hours a day in fierce competition with others across the globe to earn bitcoins. 
 
In the world of the web-based digital currency, it is not central banks that add new money to the system, but rather computers like Streng&#39;s which are awarded fresh bitcoins in return for processing blocks of the latest bitcoin transactions. 
 
Bitcoin can be used to send money instantly around the world, using individual bitcoin addresses, free of charge with no need for third party checks, and is accepted by several major online retailers. 
 
The work Streng&#39;s computers and others do serves two purposes: they record and verify the roughly 225,000 daily bitcoin transactions and, because they earn new bitcoins for the work they do, steadily increase the currency in circulation, worth around $10 billion at present. 
 
The process has come to be known as &#39;mining&#39; because it is slow and intensive, reaping a gradual reward in the same way that minerals such as gold are mined from the ground. 
 
But on Saturday, the reward for miners will be slashed in half. Written into bitcoin&#39;s code when it was invented in 2008 was a rule dictating that the prize would be halved every four years, in a step designed to keep a lid on bitcoin inflation. 
 
From around 1700 GMT on Saturday, instead of 25 bitcoins up for grabs globally every 10 minutes, worth around $16,000 at the current rate, only 12.5 will be available. 
 
That means only the mining companies with the leanest operations will survive the ensuing profit hit. 
 
&quot;The most important thing is to be the most efficient miner,&quot; said Streng, the 26-year-old co-founder of German firm Genesis Mining, which has &quot;mining farms&quot; in Canada, the United States and eastern Europe, as well as in Iceland. &quot;When the others drop out, that means that they leave the market and give you a bigger share of the pie.&quot; 
 
Solving puzzles 
 
The currency was founded eight years ago by a person or group using the name Satoshi Nakamoto, whose real identity has not been established. It was set up to operate independently of any single authority, instead relying on a decentralised global network. 
 
Because the bitcoin miners operate autonomously, it is hard to track their numbers and size. But in terms of computing capacity, it was estimated earlier this year that the network is 43,000 times more powerful than the world&#39;s top 500 supercomputers combined. 
 
Computers like Streng&#39;s solve complex, automatically generated mathematical puzzles to help secure each block of transactions and keep the bitcoin network safe from hacking or manipulation. For bitcoin users, that security is one of the currency&#39;s main attractions. 
 
After the first miner secures a block of transactions, its work is verified by the other miners in the network, and that block is added to the &quot;blockchain&quot; - a shared record of all the transaction data - which is virtually impossible to tamper with. The mining, therefore, keeps the whole system going. 
 
Bitcoin is now accepted by major organisations including US online retailer Overstock.com and travel company Expedia. 
 
The speed and anonymity of bitcoin transactions, and lack of a central authority overseeing the currency, has drawn in many users, including those who want to get around capital controls. It has also attracted investors who see it as a potentially lucrative commodity in itself. 
 
Keeping cool 
 
Bitcoin mining started out as a hobby for tech geeks using their home computers in the early years of the virtual currency, but has become more specialised as bitcoin usage expands. 
 
As the bitcoin price has risen, as transaction numbers have grown and as the computers have become so specialised that they can only perform the function of bitcoin mining, a whole industry has emerged. 
 
It can be profitable if firms are able to keep their expenses low. But the costs of running these machines, which cost around $1,800 each, and keeping them cool are fiendishly high. 
 
Streng reckons that, on average, it costs about $200 in electricity, including cooling power, to mine one bitcoin. Equipment, rent, wages and business running costs are on top. 
 
On Saturday, all else being equal, the halving of the reward will double that cost, to $400, leaving a small margin for profit at the current exchange rate of around $640 per bitcoin. 
 
In the same remote region of Iceland as the Genesis mining farm, on a former Cold War US military base lies a bitcoin mining facility belonging to US firm Bitfury. A nearby sub-station means electricity transmission costs are minimal. 
 
In the farm&#39;s two vast buildings, tens of thousands of mining machines whir away, producing a huge amount of heat, so the buildings are open to the cold Icelandic air at either side, save for particle filters to trap dust. 
 
Fans in the ceiling allow hot air to escape, but spin so fast that no rain or snow can enter during the winter. The noise produced by computers and fans is deafening. 
 
It is no coincidence that so many mining companies have chosen to build farms in Iceland - Chinese giant Bitmain also has a huge farm there. The volcanic island&#39;s cheap, bountiful, renewable energy supply, good internet connectivity, and cool temperatures make it an ideal location. 
 
The Icelandic authorities welcome the boost to the economy that the bitcoin miners have brought. Bitmain opened its farm after an approach by the Icelandic embassy in Beijing. Genesis&#39;s Streng says he is such a valued client that the Icelandic energy companies fly him around in helicopters. 
 
Bitfury CEO Valery Vavilov, who estimates electricity makes up between 90 and 95 per cent of bitcoin mining costs, says one way his firm stays competitive is by making its own hardware. 
 
He also says the company, founded in 2011, is prepared for the mining reward cut. &quot;We&#39;re prepared - we already went through one halving event in 2012,&quot; he said. &quot;You can forecast this... so you have time to prepare, and if you&#39;re prepared you can live quite easily&quot;. 
 
Vavilov, and other miners, say the prospect of new supply halving has already helped drive bitcoin up over 50 per cent this year, which should help ease the pain. 
 
Competition from China 
 
Despite the fact that the halving was expected, and that the price has risen, it has already claimed one casualty: Sweden&#39;s KnCMiner filed for bankruptcy at the end of May, citing the hit to its profits that the reward cut would bring. 
 
Daniel Masters, who runs a Jersey-based bitcoin hedge fund and who bought a part of KnC&#39;s business, said the Swedish firm, like everybody else, had faced competition from miners in China, which are estimated to make up more than two-thirds of the bitcoin network&#39;s computing power, or &quot;hashpower&quot;. 
 
&quot;It turned out that the Chinese, who really stormed into the mining market in the last couple of years, could just do this whole thing cheaper,&quot; Masters said. 
 
Some Chinese miners get hydroelectric power from disused dams, while others use cheap coal-powered electricity. 
 
Bitfury and Genesis, though, say their lean operations allow them to fight off the competition. Genesis, for example, keeps cost down by remotely monitoring conditions in its mining farms and adjusting its fans and cooling accordingly. 
 
And the next time the mining reward is halved, in 2020, they hope the number of bitcoin transactions will have grown sufficiently to mean that the small fees paid by users will make up enough of their income to smooth out the profit cut. 
 
&quot;By 2020, we will definitely have had the tipping point,&quot; said Bitfury&#39;s Vavilov. 
 
(Reuters)&nbsp;

Written into the online currency's code is a rule that the reward for miners gets cut in half every four years to limit inflation

Marco Streng is a miner, though he does not carry a pick around his base in south-west Iceland. Instead, he keeps tens of thousands of computers running 24 hours a day in fierce competition with others across the globe to earn bitcoins. In the world of the web-based digital currency, it is not central banks that add new money to the system, but rather computers like Streng's which are awarded fresh bitcoins in return for processing blocks of the latest bitcoin transactions. Bitcoin can be used to send money instantly around the world, using individual bitcoin addresses, free of charge with no need for third party checks, and is accepted by several major online retailers. The work Streng's computers and others do serves two purposes: they record and verify the roughly 225,000 daily bitcoin transactions and, because they earn new bitcoins for the work they do, steadily increase the currency in circulation, worth around $10 billion at present. The process has come to be known as 'mining' because it is slow and intensive, reaping a gradual reward in the same way that minerals such as gold are mined from the ground. But on Saturday, the reward for miners will be slashed in half. Written into bitcoin's code when it was invented in 2008 was a rule dictating that the prize would be halved every four years, in a step designed to keep a lid on bitcoin inflation. From around 1700 GMT on Saturday, instead of 25 bitcoins up for grabs globally every 10 minutes, worth around $16,000 at the current rate, only 12.5 will be available. That means only the mining companies with the leanest operations will survive the ensuing profit hit. "The most important thing is to be the most efficient miner," said Streng, the 26-year-old co-founder of German firm Genesis Mining, which has "mining farms" in Canada, the United States and eastern Europe, as well as in Iceland. "When the others drop out, that means that they leave the market and give you a bigger share of the pie." Solving puzzles The currency was founded eight years ago by a person or group using the name Satoshi Nakamoto, whose real identity has not been established. It was set up to operate independently of any single authority, instead relying on a decentralised global network. Because the bitcoin miners operate autonomously, it is hard to track their numbers and size. But in terms of computing capacity, it was estimated earlier this year that the network is 43,000 times more powerful than the world's top 500 supercomputers combined. Computers like Streng's solve complex, automatically generated mathematical puzzles to help secure each block of transactions and keep the bitcoin network safe from hacking or manipulation. For bitcoin users, that security is one of the currency's main attractions. After the first miner secures a block of transactions, its work is verified by the other miners in the network, and that block is added to the "blockchain" - a shared record of all the transaction data - which is virtually impossible to tamper with. The mining, therefore, keeps the whole system going. Bitcoin is now accepted by major organisations including US online retailer Overstock.com and travel company Expedia. The speed and anonymity of bitcoin transactions, and lack of a central authority overseeing the currency, has drawn in many users, including those who want to get around capital controls. It has also attracted investors who see it as a potentially lucrative commodity in itself. Keeping cool Bitcoin mining started out as a hobby for tech geeks using their home computers in the early years of the virtual currency, but has become more specialised as bitcoin usage expands. As the bitcoin price has risen, as transaction numbers have grown and as the computers have become so specialised that they can only perform the function of bitcoin mining, a whole industry has emerged. It can be profitable if firms are able to keep their expenses low. But the costs of running these machines, which cost around $1,800 each, and keeping them cool are fiendishly high. Streng reckons that, on average, it costs about $200 in electricity, including cooling power, to mine one bitcoin. Equipment, rent, wages and business running costs are on top. On Saturday, all else being equal, the halving of the reward will double that cost, to $400, leaving a small margin for profit at the current exchange rate of around $640 per bitcoin. In the same remote region of Iceland as the Genesis mining farm, on a former Cold War US military base lies a bitcoin mining facility belonging to US firm Bitfury. A nearby sub-station means electricity transmission costs are minimal. In the farm's two vast buildings, tens of thousands of mining machines whir away, producing a huge amount of heat, so the buildings are open to the cold Icelandic air at either side, save for particle filters to trap dust. Fans in the ceiling allow hot air to escape, but spin so fast that no rain or snow can enter during the winter. The noise produced by computers and fans is deafening. It is no coincidence that so many mining companies have chosen to build farms in Iceland - Chinese giant Bitmain also has a huge farm there. The volcanic island's cheap, bountiful, renewable energy supply, good internet connectivity, and cool temperatures make it an ideal location. The Icelandic authorities welcome the boost to the economy that the bitcoin miners have brought. Bitmain opened its farm after an approach by the Icelandic embassy in Beijing. Genesis's Streng says he is such a valued client that the Icelandic energy companies fly him around in helicopters. Bitfury CEO Valery Vavilov, who estimates electricity makes up between 90 and 95 per cent of bitcoin mining costs, says one way his firm stays competitive is by making its own hardware. He also says the company, founded in 2011, is prepared for the mining reward cut. "We're prepared - we already went through one halving event in 2012," he said. "You can forecast this... so you have time to prepare, and if you're prepared you can live quite easily". Vavilov, and other miners, say the prospect of new supply halving has already helped drive bitcoin up over 50 per cent this year, which should help ease the pain. Competition from China Despite the fact that the halving was expected, and that the price has risen, it has already claimed one casualty: Sweden's KnCMiner filed for bankruptcy at the end of May, citing the hit to its profits that the reward cut would bring. Daniel Masters, who runs a Jersey-based bitcoin hedge fund and who bought a part of KnC's business, said the Swedish firm, like everybody else, had faced competition from miners in China, which are estimated to make up more than two-thirds of the bitcoin network's computing power, or "hashpower". "It turned out that the Chinese, who really stormed into the mining market in the last couple of years, could just do this whole thing cheaper," Masters said. Some Chinese miners get hydroelectric power from disused dams, while others use cheap coal-powered electricity. Bitfury and Genesis, though, say their lean operations allow them to fight off the competition. Genesis, for example, keeps cost down by remotely monitoring conditions in its mining farms and adjusting its fans and cooling accordingly. And the next time the mining reward is halved, in 2020, they hope the number of bitcoin transactions will have grown sufficiently to mean that the small fees paid by users will make up enough of their income to smooth out the profit cut. "By 2020, we will definitely have had the tipping point," said Bitfury's Vavilov. (Reuters)

Bitcoin 'miners' face fight for survival

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