In August, Germany reported a 10.7% increase in insolvencies compared to the same month last year. Insolvency rates have remained in double digits since June 2023, with a brief dip to 6.3 percent in June 2024.

Germany sees 10.7% increase in insolvencies in August

Insolvencies in Canada have skyrocketed, reaching a four-year high in the second quarter of 2024. Data from Canada’s office of the superintendent of bankruptcy reveals a 13.3% increase in total insolvencies compared to the same period last year.

Canada’s insolvency rates soar 13.3%, highest in 4 years

Go First, an Indian airline facing financial difficulties, has informed the Directorate General of Civil Aviation (DGCA) that it has suspended the sale of tickets until May 15. This announcement comes after the airline filed for voluntary insolvency before the National Company Law Tribunal (NCLT) a few days ago. The DGCA confirmed that it has examined the response by the airline and ordered it to process refunds to passengers who were affected by its flight cancellations this week.

<h2>The airline reacts</h2>

The regulator has also stated that it is committed to minimising inconvenience to passengers in light of the airline's decision to suspend scheduled operations without prior intimation. The airline has said that it regrets the cancellations and has cancelled all flights scheduled until May 9, 2023, due to operational reasons. Passengers who were affected by these cancellations will receive a full refund issued to their original mode of payment shortly.

Watch:&nbsp;Gravitas: Will Go First be able to fly again?

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<a href="https://www.wionews.com/business-economy/indian-airline-go-first-files-for-bankruptcy-temporarily-suspends-operations-for-two-days-588193">Also Read |&nbsp;Indian airline Go First files for bankruptcy, temporarily suspends operations for two days</a>

Go First has intimated that it is working to refund or reschedule passengers who had already booked flights with them for future dates. The DGCA has acknowledged this and stated that it will continue to monitor the situation.

<h2>Financial woes triggered by the pandemic</h2>

Go First is not the first airline in India to face financial difficulties due to the COVID-19 pandemic. Several other airlines in the country have also reported losses and have had to resort to cost-cutting measures to stay afloat.&nbsp;

<h2>Lessors want 20 Aircraft deregistered</h2>

In what comes as more trouble for the cash-strapped airline, lessors of at least 20 aircraft have asked the DGCA to deregister and return them. By law, the DGCA has to deregister an aircraft in five working days once a lessor sends a request to do so and publish the details on its website.

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Go First, an Indian airline facing financial difficulties, has informed the Directorate General of Civil Aviation (DGCA) that it has suspended the sale of tickets until May 15.

Go First, an Indian airline facing financial difficulties, has informed the Directorate General of Civil Aviation (DGCA) that it has suspended the sale of tickets until May 15. This announcement comes after the airline filed for voluntary insolvency before the National Company Law Tribunal (NCLT) a few days ago. The DGCA confirmed that it has examined the response by the airline and ordered it to process refunds to passengers who were affected by its flight cancellations this week. The airline reacts The regulator has also stated that it is committed to minimising inconvenience to passengers in light of the airline's decision to suspend scheduled operations without prior intimation. The airline has said that it regrets the cancellations and has cancelled all flights scheduled until May 9, 2023, due to operational reasons. Passengers who were affected by these cancellations will receive a full refund issued to their original mode of payment shortly. Watch: Gravitas: Will Go First be able to fly again? × Also Read | Indian airline Go First files for bankruptcy, temporarily suspends operations for two days Go First has intimated that it is working to refund or reschedule passengers who had already booked flights with them for future dates. The DGCA has acknowledged this and stated that it will continue to monitor the situation. Financial woes triggered by the pandemic Go First is not the first airline in India to face financial difficulties due to the COVID-19 pandemic. Several other airlines in the country have also reported losses and have had to resort to cost-cutting measures to stay afloat. Lessors want 20 Aircraft deregistered In what comes as more trouble for the cash-strapped airline, lessors of at least 20 aircraft have asked the DGCA to deregister and return them. By law, the DGCA has to deregister an aircraft in five working days once a lessor sends a request to do so and publish the details on its website. WATCH WION LIVE HERE ×

Insolvent Indian airline Go First suspends sale of tickets, passengers to get refunds

Google’s Russian subsidiary is planning to file for bankruptcy after the local authorities seized its bank accounts, assets and property, according to Reuters news agency.

The company’s spokesperson confirmed that the global software giant has no funds to pay suppliers, vendors and employees.

"Russian authorities' seizure of Google Russia's bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations,” the spokesperson, Julie Tarallo McAlister, said in a press statement.

Google’s Russia unit has about 100 employees.

However, Google said it will continue to offer its free services, such as Search, Maps, YouTube and Gmail in Russia for the time being.

There would be no changes to Google’s Android operating system or Play store app either, the company has confirmed.

The company has been under immense pressure after it restricted access to Russian media on YouTube and suspended its commercial activities in the country after Russian President Vladimir Putin invaded Ukraine.

Watch |&nbsp;Google's Russia unit to file for bankruptcy as bank account of Google's Russian subsidiary seized

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According to Reuters, a TV channel owned by a sanctioned Russian businessman said in April that the sleuths had seized 1 billion roubles ($15 million) from Google over its failure to restore access to its YouTube account.

However, it is unclear whether the seizure of this fund has led Google to file for insolvency.

Also read |&nbsp;<a href="https://www.wionews.com/photos/how-does-google-make-money-479751">How does Google make money?</a>

In December, Google was fined 7.2 billion rouble for what Moscow said was a repeated failure to delete content Russia deems illegal.

That fine increased by 506 million roubles due to an enforcement fee.

Alphabet, the parent company of Google,&nbsp;last month said that Russia accounted for 1 per cent of its revenue last year, or about $2.6 billion.

(With inputs from agencies)

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Google’s Russian subsidiary is planning to file for bankruptcy after the local authorities seized its bank accounts, assets and property, according to Reuters news agency.

Google’s Russian subsidiary is planning to file for bankruptcy after the local authorities seized its bank accounts, assets and property, according to Reuters news agency. The company’s spokesperson confirmed that the global software giant has no funds to pay suppliers, vendors and employees. "Russian authorities' seizure of Google Russia's bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations,” the spokesperson, Julie Tarallo McAlister, said in a press statement. Google’s Russia unit has about 100 employees. However, Google said it will continue to offer its free services, such as Search, Maps, YouTube and Gmail in Russia for the time being. There would be no changes to Google’s Android operating system or Play store app either, the company has confirmed. The company has been under immense pressure after it restricted access to Russian media on YouTube and suspended its commercial activities in the country after Russian President Vladimir Putin invaded Ukraine. Watch | Google's Russia unit to file for bankruptcy as bank account of Google's Russian subsidiary seized According to Reuters, a TV channel owned by a sanctioned Russian businessman said in April that the sleuths had seized 1 billion roubles ($15 million) from Google over its failure to restore access to its YouTube account. However, it is unclear whether the seizure of this fund has led Google to file for insolvency. Also read | How does Google make money? In December, Google was fined 7.2 billion rouble for what Moscow said was a repeated failure to delete content Russia deems illegal. That fine increased by 506 million roubles due to an enforcement fee. Alphabet, the parent company of Google, last month said that Russia accounted for 1 per cent of its revenue last year, or about $2.6 billion. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Google’s Russian unit to file for insolvency, no funds to pay salaries to employees

Insolvency proceedings have been initiated against debt-ridden <a href="http://wionews.com/business-economy/banks-vote-to-send-jet-airways-for-bankruptcy-to-recover-dues-228085">Jet Airways</a>, which formally stopped flying on April 17 and saw lenders voting for bankruptcy earlier this month.

The cash-strapped company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20.

"Pursuant to an order dated June 20, 2019, of NCLT Mumbai Bench, Corporate Insolvency Resolution Process (CIRP) has been initiated for Jet Airways (India) as per the provisions of Insolvency and Bankruptcy Code, 2016," Jet Airways said in a regulatory filing Sunday.

It further said that upon initiation of CIRP, the powers of the Board of Directors of the company have been suspended and shall be exercised by the Interim Resolution Professional.

Jet Airways owes more than Rs 8,000 crore to banks, and thousands of crores more in arrears to vendors, lessors and employees.&nbsp;

The airline formally stopped flying on April 17 and banks voted for bankruptcy on June 17.

The NCLT bench comprising VP Singh and Ravikumar Duraisamy set a 90-day deadline to resolution professional Ashish Chhauchharia of Grant Thornton to conclude the resolution process, even though the bankruptcy law allows 180 days for the same, saying "the matter is of national importance."&nbsp;

The bench also instructed the resolution professional to file fortnightly progress report and submit the first such report on July 5 when it will begin to hear the matter again.

Insolvency proceedings have been initiated against debt-ridden Jet Airways, which formally stopped flying on April 17 and saw lenders voting for bankruptcy earlier this month.

Insolvency proceedings have been initiated against debt-ridden Jet Airways, which formally stopped flying on April 17 and saw lenders voting for bankruptcy earlier this month. The cash-strapped company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20. "Pursuant to an order dated June 20, 2019, of NCLT Mumbai Bench, Corporate Insolvency Resolution Process (CIRP) has been initiated for Jet Airways (India) as per the provisions of Insolvency and Bankruptcy Code, 2016," Jet Airways said in a regulatory filing Sunday. It further said that upon initiation of CIRP, the powers of the Board of Directors of the company have been suspended and shall be exercised by the Interim Resolution Professional. Jet Airways owes more than Rs 8,000 crore to banks, and thousands of crores more in arrears to vendors, lessors and employees. The airline formally stopped flying on April 17 and banks voted for bankruptcy on June 17. The NCLT bench comprising VP Singh and Ravikumar Duraisamy set a 90-day deadline to resolution professional Ashish Chhauchharia of Grant Thornton to conclude the resolution process, even though the bankruptcy law allows 180 days for the same, saying "the matter is of national importance." The bench also instructed the resolution professional to file fortnightly progress report and submit the first such report on July 5 when it will begin to hear the matter again.

Insolvency proceedings initiated against Jet Airways

India's Supreme Court on Tuesday quashed a <a href="https://www.wionews.com/business-economy/avoiding-temptation-rbi-likely-to-cut-key-rate-by-just-25-basis-points-207455">Reserve Bank of India</a> circular on resolving bad debt, providing relief for some major corporate defaulters but throwing the country's still nascent bankruptcy regime into question.

The Supreme Court said the RBI's circular from Feb. 12 last year on how banks should handle defaulters was "ultra vires", essentially meaning the central bank acted beyond its powers.

The RBI circular had directed banks unable to agree upon a resolution plan with any defaulter within 180 days to drag the defaulter into a time-bound insolvency process.

"The impugned circular will have to be declared as ultra vires as a whole, and be declared to be of no effect in law," the court said in its judgement. "All actions taken under the said circular, including actions by which the Insolvency Code has been triggered must fall along with the said circular."

A spokesman for the RBI declined to comment, saying it had yet to analyse the court order.

Several companies challenged the circular in court arguing the time given by the central bank was insufficient to tackle bad debt. Some had even challenged the validity of the RBI's directive saying its "one-size-fits-all" did not account for external factors.

The ruling gives relief to several companies, especially power companies, who have defaulted on loans due to issues with coal and gas supplies or problems tied to state governments not honouring power purchase agreements.

It also provides a breather for companies in the sugar, shipping, infrastructure and textile sectors which were under pressure, said several bankers and lawyers.

"If the RBI wants to (now) take action they have to go case specific and then initiate action. But you can't do a generic across the board cookie-cutter approach," said Amit Kapur, of law firm J. Sagar Associates, which represented several power companies in the court. The RBI may now have to come up with a new circular, he said.

BACKWARD STEP

Some bankers, however, fear the ruling may result in more wrangling between banks and borrowers around soured loans and dent bankruptcy reforms.

Foreign investors have often complained about the tardy pace of bad debt resolution in India, which has held back billions of dollars of investment in the country.

Indian banks and financial institutions currently hold total bad debt of over 10 trillion rupees ($146 billion) and this has also affected their ability to lend and spur economic growth.

"This will once again mean we are back to the old days when banks and companies used to delay debt resolution, with each one trying to buy time," said one banker handling non-performing accounts at a state-run bank.

Lawyers and bankers also agree the ruling could delay an already slow debt resolution process and that it may hurt banks' earnings.

Global rating agency Moody's said the judgement was credit negative for Indian banks and warned it could further delay the resolution process of bad debt in India.

Tuesday's ruling also raises questions around the validity of a debt resolution plan at beleaguered carrier Jet Airways as bankers said that a part of the resolution process was based on processes laid out in the RBI's Feb. 12 circular that the court has now quashed in its entirety.

However, a partner at a top law firm in India told Reuters that Jet's debt resolution plan might not be derailed as lenders could have taken the decision even without the central bank's circular.

"It is only the punitive action or coercive action under the circular which will get affected by this," the lawyer said. "The banks could have contractually, restructured loans whether there was an RBI circular or not," he said.

India's Supreme Court on Tuesday quashed a Reserve Bank of India circular on resolving bad debt, providing relief for some major corporate defaulters but throwing the country's still nascent bankruptcy regime into question.

India's Supreme Court on Tuesday quashed a Reserve Bank of India circular on resolving bad debt, providing relief for some major corporate defaulters but throwing the country's still nascent bankruptcy regime into question. The Supreme Court said the RBI's circular from Feb. 12 last year on how banks should handle defaulters was "ultra vires", essentially meaning the central bank acted beyond its powers. The RBI circular had directed banks unable to agree upon a resolution plan with any defaulter within 180 days to drag the defaulter into a time-bound insolvency process. "The impugned circular will have to be declared as ultra vires as a whole, and be declared to be of no effect in law," the court said in its judgement. "All actions taken under the said circular, including actions by which the Insolvency Code has been triggered must fall along with the said circular." A spokesman for the RBI declined to comment, saying it had yet to analyse the court order. Several companies challenged the circular in court arguing the time given by the central bank was insufficient to tackle bad debt. Some had even challenged the validity of the RBI's directive saying its "one-size-fits-all" did not account for external factors. The ruling gives relief to several companies, especially power companies, who have defaulted on loans due to issues with coal and gas supplies or problems tied to state governments not honouring power purchase agreements. It also provides a breather for companies in the sugar, shipping, infrastructure and textile sectors which were under pressure, said several bankers and lawyers. "If the RBI wants to (now) take action they have to go case specific and then initiate action. But you can't do a generic across the board cookie-cutter approach," said Amit Kapur, of law firm J. Sagar Associates, which represented several power companies in the court. The RBI may now have to come up with a new circular, he said. BACKWARD STEP Some bankers, however, fear the ruling may result in more wrangling between banks and borrowers around soured loans and dent bankruptcy reforms. Foreign investors have often complained about the tardy pace of bad debt resolution in India, which has held back billions of dollars of investment in the country. Indian banks and financial institutions currently hold total bad debt of over 10 trillion rupees ($146 billion) and this has also affected their ability to lend and spur economic growth. "This will once again mean we are back to the old days when banks and companies used to delay debt resolution, with each one trying to buy time," said one banker handling non-performing accounts at a state-run bank. Lawyers and bankers also agree the ruling could delay an already slow debt resolution process and that it may hurt banks' earnings. Global rating agency Moody's said the judgement was credit negative for Indian banks and warned it could further delay the resolution process of bad debt in India. Tuesday's ruling also raises questions around the validity of a debt resolution plan at beleaguered carrier Jet Airways as bankers said that a part of the resolution process was based on processes laid out in the RBI's Feb. 12 circular that the court has now quashed in its entirety. However, a partner at a top law firm in India told Reuters that Jet's debt resolution plan might not be derailed as lenders could have taken the decision even without the central bank's circular. "It is only the punitive action or coercive action under the circular which will get affected by this," the lawyer said. "The banks could have contractually, restructured loans whether there was an RBI circular or not," he said.

Supreme Court quashes RBI directive on resolving bad debt

&nbsp;

Flight AB7001 from Miami to Dusseldorf landed on Monday morning after the company officially declared long-haul flights to be over.

The bankrupt airline yesterday&nbsp;<a data-action="11364101" data-content-type="news" data-track="false" data-type="inline" data-word-count="8" href="http://www.mirror.co.uk/news/world-news/pilots-who-performed-extremely-low-11364101">suspended the pilots who carried out the manoeuvre</a>&nbsp;during its final long-distance flight as they came into land at Dusseldorf Airport with 200 passengers onboard.

<iframe frameborder="0" height="1px" id="google_ads_iframe_/5293/mirror.co.uk/news/world-news_1" marginheight="0" marginwidth="0" name="google_ads_iframe_/5293/mirror.co.uk/news/world-news_1" scrolling="no" srcdoc="" title="3rd party ad content" width="1px"></iframe>The plane&nbsp;makes a sharp left turn towards the terminal building, with the people on the outside terrace screaming out in fear.

An airport employee who watched the dramatic scenes unfold thought at first the aeroplane would crash right into the terminal.

The pilot of the Airbus A330 - who is now being investigated - was allowed by the Dusseldorf traffic control to do a flyover as it was the last flight operated from the US to Germany.

&ldquo;We wanted to make a mark, a dignified and emotional goodbye,&rdquo; the Air Berlin pilot was quoted as saying by German broadcaster ZDF.&nbsp;

Markus Wahl, spokesman of a German pilot&#39;s organisation, said that at no time were people in danger in the well planned move and he is sure that the pilot did not do anything illegal.

The airline said it was aware of the agreement to perform the low fly-by and &quot;fully supports the LBA in its work&quot;.

On August 15, Air Berlin stated it was filing for insolvency, although most flights continued until further notice after the German government provided the airline with a loan.

On 9th October, the airline however announced that it would cease all of its own operations by 28th October.

&nbsp;

Pilot investigated by aviation authorities after reckless fly-by

Flight AB7001 from Miami to Dusseldorf landed on Monday morning after the company officially declared long-haul flights to be over. The bankrupt airline yesterday suspended the pilots who carried out the manoeuvre during its final long-distance flight as they came into land at Dusseldorf Airport with 200 passengers onboard. The plane makes a sharp left turn towards the terminal building, with the people on the outside terrace screaming out in fear. An airport employee who watched the dramatic scenes unfold thought at first the aeroplane would crash right into the terminal. The pilot of the Airbus A330 - who is now being investigated - was allowed by the Dusseldorf traffic control to do a flyover as it was the last flight operated from the US to Germany. “We wanted to make a mark, a dignified and emotional goodbye,” the Air Berlin pilot was quoted as saying by German broadcaster ZDF. Markus Wahl, spokesman of a German pilot's organisation, said that at no time were people in danger in the well planned move and he is sure that the pilot did not do anything illegal. The airline said it was aware of the agreement to perform the low fly-by and "fully supports the LBA in its work". On August 15, Air Berlin stated it was filing for insolvency, although most flights continued until further notice after the German government provided the airline with a loan. On 9th October, the airline however announced that it would cease all of its own operations by 28th October.

Air Berlin pilots perform low fly-by, leaving passengers in panic

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