Category Archives: Bankruptcy

The Reserve Bank of India (RBI) on Thursday moved Mumbai bench of National Company Law Tribunal (NCLT) for the insolvency and bankruptcy proceeding of Reliance Capital.

The central bank had superseded the board of the company on Monday, citing defaults and governance issues.

The RBI appointed former executive director of Bank of Maharashtra Y Nageswar Rao as the administrator and gave him an advisory board to discharge his duty.

In a statement on its website, the RBI said there would be an interim moratorium on and from the filing of the application till its admission or rejection by the NCLT.

Under rules, the adjudicating authority will declare a moratorium, prohibiting suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority.

The moratorium will also prohibit transferring, encumbering, alienating or disposing off by Reliance Capital any of its assets or any legal right or beneficial interest, and will prevent any action to foreclose, recover or enforce any security interest created by the company regarding its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

An owner or lessor of the property also cannot recover the property occupied by Reliance Capital.

However, the supply of essential goods or services to the company will not be terminated or suspended or interrupted during the moratorium period.

The moratorium will also not apply to any transaction notified by the central government in consultation with any financial regulator, and will not affect any surety in a contract of guarantee to a corporate debtor.

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RBI moves NCLT Mumbai for bankruptcy proceedings against Reliance Capital - Business Standard

Dec 4th 2021

LONG BEFORE the invention of stakeholder capitalism, a core principlethat the interests of customers, employees and society should be as high or higher than those of shareholderswas carved into the plaster at Johnson & Johnsons head office in New Brunswick, NJ. Our Credo as J&J calls its mission statement, dates back to 1943, when it was penned by Robert Wood Johnson II, a former boss of the pharmaceutical firm.

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J&J says the Credo has helped construct a corporation built to last. Worth $420bn, it is the worlds biggest drugs firm by value. It is one of only two companies in America with a triple-A credit rating (the other is Microsoft). Of its $82.6bn of sales last year, pharmaceuticals accounted for 55%, medical devices 28% and consumer health 17%. It produces everything from blockbuster cancer drugs to band-aids and baby powder.

Some argue that for all its pieties, J&J has let down both society and shareholders. In recent years it has faced multiple lawsuits against products ranging from prescription opioids to talcum powder to Risperdal, an antipsychotic medicine. It denies all wrongdoing, but the succession of controversies has tarnished its image and loaded it with legal liabilities.

Moreover, since 2012 J&Js total returns to shareholders have lagged behind the S&P pharmaceutical benchmark by about a third. Investors say the legal maelstrom is partly to blame. Another factor is lopsided performance. Buoyancy at J&Js pharmaceuticals business, where sales rose by 8% last year, is overlooked because of low single-digit growth and, at times, declines in the medical devices and consumer-health divisions.

Now J&J is taking stepsradical by its own standardsto reform on both counts. Alex Gorsky, its outgoing chief executive and soon-to-be executive chairman, is trying to draw a line under the legal troubles. He is also overhauling the firms structure. His methods have not yet had the desired effect. But they could restore the firms standing with investors and society.

The first sign of progress has been in the legal realm. In August 2019 an Oklahoma court ruled that J&Js promotional campaigns downplayed the risks of opioids and meant the firm bore a wide responsibility for the deadly epidemic. It was ordered to pay $465m. But on November 9th the states Supreme Court overturned the ruling, saying it was based on a wrong interpretation of public-nuisance law. The previous week, a California court threw out a similar case against J&J and other defendants.

Such wins for J&J coincide with what Carl Tobias of the University of Richmond School of Law, calls a new legal approach. The firm has a history of litigating cases to the bitter end, he says. Lately, he points out, it has shown more willingness to settle. This summer it finalised an opioid settlement of up to $5bn with numerous American states, cities and counties which it hopes will lay the claims against it to rest. In October it said it had set aside $800m to settle most of its Risperdal cases.

The company is still walking a legal tightrope when it comes to claims related to talcum powder. In October it deployed what is known disparagingly as the Texas two step, a manoeuvre in which it set out to ring-fence liabilities on 30,000 or more talc-related litigation claims by creating a Texan subsidiary, LTL Management, that promptly filed for Chapter 11 bankruptcy in North Carolina. It went down poorly. The North Carolina judge shunted the bankruptcy case to New Jersey, where many of the talc claims are filed. Some Congressional Democrats accused the firm of trying to manipulate bankruptcy law to deny claimants their day in court. J&J argues that it has established a $2bn trust attached to LTL to help cover talc-related liabilities under Chapter 11. Investors hope it could mark the beginning of the end of the saga.

Mr Gorskys second sweeping change is structural. J&J said in November that over the course of 18-24 months it would split into two firms, one focused on consumer health, the other combining pharmaceuticals and medical devices. The consumer-health business badly needs a nip and tuck. It is no longer enough to boast that nine out of ten dermatologists recommend a skin product. Shoppers require Kim Kardashian-style razzmatazz. J&J hopes the consumer-health business will fare better with more focus. The break-up will also crystallise value lost in the conglomerate structure. It is a path trodden by GSK, a British drugs firm, which is spinning off its consumer-health joint venture with Pfizer. But a lot remains unknown about the split. Investors greeted it with a shrug.

What shareholders are excited about is the pharma business. They take seriously J&Js pledge to ramp up annual drugs sales from $45.6bn last year to $50bn by 2023 and $60bn by 2025. It reckons it can outstrip average growth in the drugs market even though one of its best selling medicines will lose patent protection. It promises new treatments, such as cell and gene therapies. Its oncology pipeline is strong. It will not be all smooth sailing, however. The pharma firm will still be tied to the sluggish medical-devices business. And if the talc-related bankruptcy man oeuvre fails, liabilities could fall onto the pharma business.

These are exciting times in life sciences. Pfizer is adding a fortune to sales thanks to its covid-19 breakthroughs. Eli Lilly is attracting investors because of an experimental Alzheimers drug. Against such competition, J&J urgently needs to move beyond the legal controversies weighing upon it and its share price.

The biggest question is whether the company can become more dynamic overall. Partly owing to its mission statement, J&J carries a lot of history on its back. It makes decisions cautiously. Mr Gorsky has taken years to recommend a break-up, though investors have wanted one since he took over in 2012. Listening properly to shareholders would have meant earlier, possibly preventive, ingestion of the correct medicine.

Read more from Schumpeter, our columnist on global business:Decoupling is the last thing on business leaders minds (Nov 27th 2021)Walmart gets its bite back (Nov 20th 2021)The supermajors have an LNG problem (Nov 6th 2021)

For more expert analysis of the biggest stories in economics, business and markets, sign up to Money Talks, our weekly newsletter.

This article appeared in the Business section of the print edition under the headline "No more tears"

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Can Johnson & Johnson put the taint of scandal behind it? - The Economist

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Bankruptcy Filings | United States Courts

The University of Maryland

The Washington Post | The Washington Post | Getty Images

Across the country, colleges are in crisis.

Fewer students went back to school again this year, dragging undergraduate enrollment down another 3.5% from last year, according to a reportfrom the National Student Clearinghouse Research Center.

Combined with last autumn's declines, the number of undergraduate students in college is now down 7.8% compared to two years ago the largest two-year enrollment drop in the last 50 years, the report found.

There is, however, a wide disparity among schools, with less selective institutions and those serving low- and middle-income students seeing the biggest drop in enrollments.

Community college enrollment experienced the steepest declines, now down 15% since 2019, while highly selective colleges notched enrollment gains up 3.1% to return to pre-pandemic levels.

The consequences of fewer students and less tuition revenue could be severe, according to Sam Pollack, a partner and senior member of NEPC's Endowments and Foundations practice.

In fact, 62% of higher education leaders said that is the biggest challenge they now face, according to a recent NEPC survey.

More from Personal Finance:Less than half of high schoolers want to go to a four-year collegeHere are the colleges with the best return on investmentHow to maximize your college financial aid

Already, a number of small schools have had to shut down entirely.

Recently, Bloomfield College in New Jersey, which was founded in 1868,said it may be forced to close after the current academic year.

"Bloomfield College has been struggling with a decade-long decline in enrollment," Bloomfield's President Marcheta Evans said in a letter to the community. "The resulting financial challenges have only been exacerbated by the pandemic.

"And, Bloomfield is not alone," she added. Judson College in Alabama,Becker Collegein Massachusetts andConcordia College New Yorkalso plan to close, among others.

Meanwhile, the country's most elite institutions are faring better than ever and have the financial cushion to prove it.

This year, a small group of universities, including many in the Ivy League, experienced a record-breaking increase in applications and net revenue gains.

These schools also reported record-breaking gains for their endowments largely due to investments in private equity or venture capital, according to Pollack. Some endowments grew more than 50%.

As a result, universities such as Harvard, Yale, Stanford and Princeton are able to expand their financial aid offerings, lowering the cost and increasing the appeal to even more students nationwide.

"They are often made to be the villains, but the vast majority of these institutions are working very hard to deploy those funds to the benefit of students," Pollack said.

In fact, the top schools for financial aidare all private and their very generous aid packages can make them surprisingly affordable, despite the eye-popping sticker prices.

"If the highly selective schools are able to subsidize that cost, it makes it even more compelling and that has broad implications for the higher education landscape," Pollack said.

At Yale, for example, tuition and fees plus books, room and board averaged$77,750 this year, according to data from The Princeton Review, but the average need-based scholarship award or free money was just over $59,000 bringing the total out-of-pocket cost down to roughly $22,000.

"That hefty sticker cost might be intimidating, but find out the average cost that students and parents are actually paying," said Robert Franek, The Princeton Review's editor-in-chief.

"It could end up being less expensive than your local public college."

But without the same resources, less competitive schools are in danger of losing even more students, widening the divide, Pollack said.

Like what is happening to the nation as a whole, "there is increasing bifurcation between the haves and have nots and that appears to be true in higher education."

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More colleges face bankruptcy even as top schools experience record wealth - CNBC

With Daniel Lippman

PROGRAMMING NOTE: Well be off for Thanksgiving this Thursday and Friday but back to our normal schedule on Monday, Nov. 29.

BOY SCOUTS WILL LOBBY ON BANKRUPTCY BILL: The Boy Scouts of America has hired former Alabama Democratic Rep. Bud Cramer and Jefferies Murray of 535 Group to lobby on bankruptcy reform legislation aimed at curtailing a settlement practice that would release troop sponsors, including tens of thousands of churches and civic groups; local councils; and the national Boy Scouts organization from liability for sexual abuse claims lodged against the organization.

The House Judiciary Committee approved the Nondebtor Release Prohibition Act this month. The bill targets what Democrats describe as a loophole in bankruptcy code that helped the Sackler family, the people and institutions that enabled Larry Nassar, and others like them escape accountability for wrongdoing through bankruptcy proceedings.

The bill would restrict the use of third-party, or nondebtor, releases in bankruptcy proceedings, unless express consent is given by the creditors. The practice, which has split federal courts, shields affiliates, officers or other stakeholders who may be accused of wrongdoing but who have not filed for bankruptcy protections themselves in exchange for settlement payments and, in the Boy Scouts case, signing over some insurance rights. The tactic has been used in the bankruptcy settlements of several high profile cases in recent years, including those of opioid maker Purdue Pharma, USA Gymnastics and church dioceses.

The bill would also place restrictions on bankruptcy courts ability to pause lawsuits against third parties while a repayment plan is negotiated, and allow courts to dismiss Chapter 11 bankruptcy reorganization cases if a debtor was formed during a divisional merger that took place in the last decade. Critics of the bill, which was approved on party lines, argue the legislation could disrupt bankruptcy proceedings in favor of lengthy litigation that may result in less of a recovery or no resolution at all, while empowering small numbers of holdout creditors.

The Boy Scouts of America (BSA) engaged 535 Group to help explain our proposed Plan of Reorganization to lawmakers and demonstrate how the current structure is the best path forward for Scouting and for survivors, with this Plan poised to establish the largest sexual abuse compensation fund in the history of the United States, a spokesperson told PI, adding that the organization has spent nearly two years working through a financial restructuring to come to a resolution that will equitably compensate survivors of past abuse and ensure that Scoutings mission continues. The Associated Press reported this fall that ballots to approve the Boy Scouts reorganization plan and proposed $1.6 billion trust fund are being sent to the more than 82,000 men who say they were molested as scouts.

Good afternoon and welcome to PI. Ill be off for Thanksgiving tomorrow and Friday, but PI will be back in your inboxes on Monday. Until then keep sending those tips, and I hope you have a restful holiday: [emailprotected]. And be sure to follow me on Twitter: @caitlinoprysko.

PANDEMIC PREPAREDNESS GROUP LOBBIES UP: Guarding Against Pandemics, an advocacy group pushing for more investment in preparing for the next pandemic, is ramping up its lobbying operation as it pushes to hike the amount of funding included in Democrats reconciliation bill or through other avenues.

According to disclosures filed this week, Varun Krovi, a former House Democratic aide and former lobbyist at Invariant, registered as an in-house lobbyist for the group in September. The group hired a team of more than a dozen lobbyists at Ogilvy Government Relations a month later, according to another disclosure filing. The group, which is funded in-part by crypto billionaire and Biden donor Sam Bankman-Fried, previously hired Van Scoyoc Associates in August.

Guarding Against Pandemics has fought for Democrats to provide $30 billion for pandemic preparedness in their reconciliation bill, a number initially sought by President Joe Biden this spring. He later decreased that figure to $15 billion, and the sum included in the version passed by the House last week was slashed even further, to $3 billion, according to figures from the Kaiser Family Foundation. Another $16.2 billion would go toward building out public health infrastructure.

In response to earlier reports that pandemic preparedness funding might be gutted as Democrats sought to reduce the price tag of the bill, Guarding Against Pandemics called the suggestion unthinkable. The group has also applauded pandemic preparedness provisions in legislation introduced by Reps. Diana DeGette (D-Colo.) and Fred Upton (R-Mich.) last week, though that bill faces steep odds in a narrowly divided Congress.

DOING IT FOR THE GRAM: Adam Mosseri, the head of Instagram, has agreed for the first time to testify before Congress, as bipartisan anger mounts over harms to young people from the app, The New York Times Ryan Mac and Cecilia Kang report. Mosseri is expected to appear before a Senate panel during the week of Dec. 6 as part of a series of hearings on protecting children online, said Senator Richard Blumenthal, who will lead the hearing.

Mr. Mosseris appearance follows hearings this year with Antigone Davis, the global head of safety for Meta, the parent company of Instagram and Facebook, and with Frances Haugen, a former employee turned whistle-blower. Ms. Haugens revelations about the social networking company, particularly those about Facebook and Instagrams research into its effects on some teenagers and young girls, have spurred criticism, inquiries from politicians and investigations from regulators.

Blumenthal said he would question Mr. Mosseri about how Instagrams algorithms can send children into dangerous rabbit holes and would seek a commitment from Mr. Mosseri to make Instagrams ranking and recommendation decisions transparent to the public and to experts who can study how the app amplifies harmful content.

ANOTHER SETBACK FOR ISRAELI SPYWARE FIRM: Apple sued the NSO Group, the Israeli surveillance company, in federal court on Tuesday, another setback for the beleaguered firm and the unregulated spyware industry, The New York Times Nicole Perlroth reports. The lawsuit is the second of its kind Facebook sued NSO in 2019 for targeting its WhatsApp users and another consequential move by a private company to curb invasive spyware by governments and the companies that provide their spy tools.

Apple, for the first time, seeks to hold NSO accountable for what it says was the surveillance and targeting of Apple users. Apple also wants to permanently prevent NSO from using any Apple software, services or devices, a move that could render the companys Pegasus spyware product worthless, given that its core business is to give government clients full access to a targets iPhone or Android smartphone.

Apple is also asking for unspecified damages for the time and cost to deal with what the company argues is NSOs abuse of its products. Apple said it would donate the proceeds from those damages to organizations that exposed spyware.

Jenelle Krishnamoorthy has been promoted to be vice president for global public policy and international affairs at Merck. She most recently was the company's associate vice president for global policy for communications and population health.

None.

GEORGIA VALUES ACTION (Super PAC)PURPLE PAC (PAC)Supernova PAC (Super PAC)Texans Against Beto (PAC)

535 Group, LLC: Boy Scouts Of AmericaBallard Spahr LLP: Grail, LLCCdb Projx LLC: Clemson UniversityCornerstone Government Affairs, Inc.: The Pew Charitable TrustsGuarding Against Pandemics, Inc.: Guarding Against Pandemics, Inc.Washington & Madison, LLC: American Hellenic Institute

Big Fire Law & Policy Group, LLP: Ndn CollectiveFirst Strategic: Sda Inc.Maryland & District Of Columbia Credit Union Association: Maryland & District Of Columbia Credit Union Association

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Boy Scouts will lobby on bill to curb tactics used in bankruptcy proceedings - Politico

The High Court has extended a businessmans bankruptcy to last a total of 13 years after finding he had endeavoured to conceal his interest in a 5.5 million Dalkey property.

Godfrey Lalor, who once owned a property on Sorrento Road, Dalkey, Co Dublin, was adjudicated bankrupt in June 2016. A year later the official assignee to the bankrupts property filed a motion seeking to extend the bankruptcy on grounds of non-cooperation and failure to disclose assets.

In a recent judgement, Mr Justice Richard Humphreys extended Mr Lalors bankruptcy to June 2029. The normal term of bankruptcy is for one year, but this can be extended in cases of non-cooperation or non-disclosure of assets, he noted.

Mr Justice Humphreys said he believes to be justified the official assignees characterisation of Mr Lalors approach to the situation as catch me if you can. The judge also endorsed as correct, the official assignees assertion that it is essential for the integrity of the bankruptcy process that a bankrupts obligation to cooperate fully and disclose everything in relation to assets is strictly enforced.

The judge noted that Mr Lalor had sought to conceal his interest in the Monte Rosa property on Sorrento Road to prevent it being realised for the benefit of his creditors. Further, some of the evidence given by Mr Lalor under cross-examination was misleading, while he also had failed to co-operate with the courts previous July 2021 conclusion, Mr Justice Humphreys said.

The judge also found that Mr Lalors assertions of lack of control over relevant corporate assets and accounts were lacking in credibility in all of the circumstances.

Mr Justice Humphreys said that near total non-cooperation would presumably warrant a near maximum bankruptcy period, and these circumstances come into the top bracket of the full 15-year period. However, the judge said he had regard to any limited elements of information arguably supplied by Mr Lalor, as well as any arguably relevant circumstances, in setting the term at 13 years. Mr Justice Humphreys was finalising a 2019 decision made by Ms Justice Teresa Pilkington to extend in principle the bankruptcy term.

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Man who sought to conceal interest in 5m Dalkey property has bankruptcy extended - The Irish Times

The potential for Chinas Evergrande Group to finally go bankrupt is still high despite recent progress made in selling assets and paying down debts, analysts and commentators say.

The Shenzhen-based property developer saw its contracted sales collapse by about 90% year-on-year in September and October, the traditional high sales season for Chinese property markets.

The company also suffered from a property market down cycle where 21 lower-tier cities, where most of Evergrandes property projects are situated, announced market-intervening measures last month to limit price reductions. Those caps are reportedly contributing to Evergrandes cash-flow problems by reducing its ability to slash prices to facilitate sales.

At the same time, a 2.8 billion Evergrande share stake worth about US$1 billion, appeared in Hong Kongs Central Clearing and Settlement System (CCASS) last Friday, indicating that company chairman Hui Ka-yan may be pledging part of his stake as collateral for loans, media reported.The stake was reported to CCASS by Haitong International Securities Co.

Hui and his wife own more than 76.69% of Evergrandes outstanding shares. On October 8, Hui, through Xin Xin (BVI) Limited,pledged 500 million Evergrande shares to a third party by providing share rights as a guarantee to persons other than qualified lenders. On October 12, Haitongs CCASS holdings in Evergrande increased by 500 million shares.

Evergrande has faced a liquidity shortage since its plan to go public in Shanghai was scrapped last year. Chinese financial regulators also announced three red lines to forbid heavily indebted property developers from borrowing money from banks until they lower their gearing ratios.

With worse-than-expected contract sales in the first half, Evergrande failed to pay for the construction of many of its real estate projects. The suspension of construction sent Evergrande into a vicious cycle in which the company could not generate revenue to pay creditors and holders of its wealth management products.

Between September 23 and October 11, Evergrande failed to pay interest of $276.5 million to global investors who hold its bonds. The company finally made payments by the end of the 30-day grace period to avoid an immediate default. It was reported that Hui settled the payments with his own funds.

Evergrande will be removed from the Hang Seng China Enterprises Index (HSCEI) from December 6, according to a statement released by the Hang Seng Indexes Co Ltd, a wholly-owned subsidiary of Hang Seng Bank, last Friday.

On November 17, Evergrandes weighting in the HSCEI was only 0.07%, compared with Meituans 9.41%, Tencents 8.47% and Alibabas 7.98%. Evergrandes shares fell 1.08% at HK$2.75 on Monday. They are down 83% from HK$16.28 a year ago.

Meanwhile, credit rating agencies continue to issue warnings. S&P Global Ratings said in a recent research report that Evergrandes debt crisis had not yet ended and that the bigger test would come when $3.5 billion comes due for US dollar-denominated notes in March and April next year.

We still believe an Evergrande default is highly likely, said analysts at S&P Global Ratings. The firm has lost the capacity to sell new homes, which means its main business model is effectively defunct. This makes full repayment of its debts unlikely.

On September 3, Evergrande said its contracted sales decreased 26% to 38.08 billion yuan ($4.89 billion) in August from a year ago. It said its August sales included amounts offset through the sales of property units to suppliers and contractors.

In the first eight months of this year, the companys contracted sales fell 2.7% to 438.65 billion yuan from the same period in 2020.

Although the company did not announce its contracted sales in September and October, it could have only generated revenue of 17 billion yuan in September and 2.9 billion yuan in October from property sales, according to China Index Academy, a Beijing-based real estate data provider. The combined revenue in the two months was down 89% from the same period of 2020.

Last month, Evergrande tried to replenish its foreign exchange by offering to sell its Hong Kong headquarters building in Wan Chai district to Chinese state-owned Yuexiu Property for $1.7 billion. But Yuexiu Property pulled out of the deal, fearing that Evergrandes debt problems would undermine the transaction.

On October 20, Evergrande said it had scrapped its plan to sell a 50.1% stake in Evergrande Property Services Group to Hopson Development Holdings. The deal, if it had gone through, could have provided Evergrande net cash of HK$20 billion ($2.57 billion) on October 12.

On November 16, China Business News, or Yicai.com, reported that Hui had personally injected 7 billion yuan into his company since July 1. The report said that Hui had already sold three luxury apartments in Hong Kong and several private jets, and planned to sell two more luxury flats in Shenzhen and Guangzhou.

On the same day, the company announced that it had agreed to sell all of its remaining 18% stake in HengTen Networks Group, which operates an online video platform, for HK$2.13 billion, or HK$1.28 per share, to a company owned by mainland investor Li Shaoyu. The selling price represented a 24% discount on the closing price of the Hong Kong-listed HengTen on November 17.

Prior to this, Evergrande had already sold a 19.55% stake in HengTen for HK$4.37 billion. Shares of HengTen had gained 72% to close at HK$2.9 on Monday from November 17.

On November 20, Yicai.com, a Chinese financial news media, said more and more lower-tier Chinese cities were facing a down cycle in their property markets.

Since October 12, at least 21 local governments in third and fourth-tier cities, including Shenyang and Kunming, have launched new measures to forbid property developers from cutting their selling prices by more than 15% from market levels. When selling flats in the same building, developers are not allowed to cut prices by more than 5% from the previous quarter.

Zhang Bo, chief analyst at 58 Anjuke Institute, a research unit of the property marketplace Anjuke.com, said property prices in lower-tier cities had fallen rapidly in recent months, forcing local governments to limit price cuts. Zhang said many local property developers wanted to replenish their cash flow by offering discounts to homebuyers, creating a huge price pressure on the markets.

Zhang added that some property developers paid their contractors in property units due to a lack of cash. He said these contractors then sold these apartments to homebuyers at big discounts, adding more price pressure on the markets. Fortunately, he said, these price pressures had not yet spread to the first and second-tier cities.

It is still unclear whether Evergrande would be able to boost its contracted sales or sell more assets in the coming few months. On October 22, Hui said in an internal meeting that the companys annual property sales would be gradually reduced to 200 billion yuan within the coming decade from 700 billion yuan in the past.

He said Evergrande would allocate more resources to its e-vehicle businesses in the next 10 years.

Read: Evergrande staves off default with dollar bond payment

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Evergrande's bankruptcy still just a matter of time - Asia Times

C

losing an entire Tube line is among the options that Transport for London may have to consider as a result of its financial crisis, it has been revealed.

TfL finance chief Simon Kilonback said the failure to secure Government cash for long-term repairs and upgrades would have a disastrous impact on the capitals transport network.

Mr Kilonback told the TfL finance committee on Wednesday that TfL could be forced into the full closure of a line or part of a line or smaller reductions across the whole [Underground] network.

He did not name the line most likely to be closed but the Bakerloo and Jubilee lines are reportedly at risk.

The Metropolitan and Hammersmith & City lines could also be options due to lower passenger numbers and overlapping rail or Tube services.

DLR and London Overground services are also at risk, Heidi Alexander, the deputy mayor for transport, told the committee.

A blue sky future is unlikely for TfL

Mr Kilonback said there was a risk that TfL would have to issue a section 114 notice - effectively declaring itself bankrupt and handing responsibility for services back to the Government.

This would mean it would only commit to providing services required by law, such as school buses, taxi licensing, certain road repairs and the Woolwich ferry.

It would also be likely that TfL would seek to run only services where it made a profit, he suggested.

A video of the TfL meeting can be viewed here:

Mayor Sadiq Khan has requested an urgent meeting with Transport Secretary Grant Shapps, but has yet to receive a reply.

TfL commissioner Andy Byford told the TfL finance committee there was less than three weeks to save TfL and the London recovery.

He said: I never thought I would say this but getting the Elizabeth line across the line seems a darn sight easier than trying to sort this one out.

TfL commissioner Andy Byford: Funding crisis is even worse than Crossrail

Mr Byford has written to the permanent secretary at the Department for Transport requesting the start of negotiations. He said he was desperate to avoid what happened in the last bail-out, when agreement was only reached with 11 minutes to go before the deal expired.

Passengers are also likely to face a bumper fares hike from the New Year. TfLs plans expect a rise of the RPI rate of interest plus one per cent.

This is likely to mean an extra five per cent on fares, though Mr Khan has the final decision.

TfL ticketing chief Shashi Verma said: This is the city with the highest public transport fares in the world to start off with.

Mr Kilonback said: I think we unfortunately face the situation we first faced back in May 2020, where we are going to have to consider what is required under statute, and say that under S114 of the local Government Finance Act we cannot see a way to balance the budget.

That requires us to commute all expenditure other than that which is required for statutory purposes, which are very limited in terms of the transport services we operate, and to continue to run things that contribute to getting out of the problem and to stop anything which makes the problem worse.

Whereas in the past, certainly the Tube and some of our rail services were covering their operating costs. That isnt the case today. This is not a threat. Its the reality of the statutory position we are in, given the lack of certainty over funding.

A TfL spokeswoman, asked whether Londons fares were the highest in the world, said: In London, 72 per cent of the operating costs of running the TfL network are covered completely by fares and another 14 per cent by other commercial revenues.

Other cities cover a much larger proportion of their costs from government subsidies or dedicated taxes.

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TfL crisis latest: entire Tube line may have to close and bankruptcy notice issued - Evening Standard

Pop group Westlife are set to take over the Loose Women panel today to celebrate the release of their new album, Wild Dreams.

Just a week after Vernon Kays Loose Men special, the hit ITV daytime show will temporarily rebrand itself as Loose Life as band members Shane Filan, Nicky Byrne, Kian Egan and Mark Feehily host a one-off special.

The regular Loose Women will interview the group before handing over the reins for a quarter of the show.

READ MORE: Where the Great British Bake Off winners are now from Strictly Come Dancing to baking for the Queen

But when did Westlife get back together and who is the bands richest member? Heres everything you need to know.

While Westlifes exact net worth isnt known, it is currently estimated to be around $22 million, with Kian Egan reported to be the bands richest member, according to internet reports.

Forming in 1998, Westlife went on to become one of the top-selling boybands of all time, alongside Take That and Boyzone.

Until their split in 2012, Westlife sold more than 55 million records across the world, releasing 13 albums and going on 12 world tours.

However, in 2012, lead singer Shane Filan was left devastated after his property development company Shafin Developments went bust, leaving him with debts reportedly amounting to 18 million.

Shane was declared bankrupt at Kingston county court in Surrey a month after his company collapsed.

Six years later, Shanes wife Gillian was also declared bankrupt in relation to joint loans she shared with her husband.

Shanes fellow band member Nicky has spoken about Westlifes fortunes in the past, telling the Irish Independent: We have all lost money.

We were all very foolish with money in the early days, we all bought cars and watches - the silly things.

We did very well out of Westlife but everybody lives and spends. In the early days we earned great money, and in the latter days it was all gone.

On October 19, 2011, Westlife announced that they would be splitting after one final album and tour.

In a statement, they described the split as amicable, and explained that they wanted to have a well-earned break and look at new ventures.

On October 3, 2018, Westlife announced on social media that they would be reuniting to release new music and go on tour.

The band released Spectrum in 2019, with the comeback album going on to reach number one and become the fastest selling album of the year in Ireland.

Tickets for Westlifes upcoming Wild Dreams 2022 tour are now on sale.

Loose Life, a one-off Loose Women special, airs on Friday, November 26 at 12.30pm on ITV and ITV Hub

Stay abreast of the latest on days out, nights out, shopping and more with our Daily What's On Email updates.

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Where Westlife are now from breakup and bankruptcy to successful comeback - Birmingham Live

A departing Avianca Airlines flight is seen on the tarmac during the reopening ceremony at the Mons. Oscar Arnulfo Romero International Airport, in San Luis Talpa, El Salvador September 19, 2020. REUTERS/Jose Cabezas/File Photo

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BOGOTA, Nov 25 (Reuters) - Airline Avianca Holdings, which is in the process of finishing a restructuring process under Chapter 11 bankruptcy, is to offer around 100 pilots who left the company following a strike in 2017 the chance to rejoin the company, it said on Thursday.

"Without doubt, today we mark a milestone in our history and this is a golden opportunity to start from scratch, to strengthen teamwork and build the Avianca we all need," said the company's chief executive and president, Adrian Neuhauser.

The airline struggled with a 51-day pilots' strike between September and November 2017, grounding half its fleet and resulting in dozens of pilots being fired, while others resigned or were pensioned off.

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The plan will permit the airline to operate more than 200 direct routes with its fleet of more than 130 aircraft by 2025, it said.

The pilots who return to Avianca will do so under the same conditions that were agreed with pilots in 2020, while the company plans to start a training program that exceeds the requirements of aeronautical regulations.

Avianca filed for Chapter 11 bankruptcy after being battered by the coronavirus pandemic. A court in the United States approved the company's restructuring plan in November.

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Reporting by Luis Jaime AcostaWriting by Oliver GriffinEditing by Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

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Avianca to reoffer jobs to around 100 pilots amid restructuring - Reuters