Creditors take control of struggling Cirque du Soleil

MONTREAL, Canada - A group of Cirque du Soleil creditors has announced it will take control of the heavily indebted Canadian circus troupe.

Suitors had until Tuesday afternoon to better the proposal of the dozen lenders, led by the Canadian fund Catalyst Capital Group.

The world's most famous circus troupe, placed under the protection of the courts, later said that the proposal -- estimated at more than $1.2 billion -- had not been topped, according to Canadian media.

The creditors' offer will still have to be validated by the Quebec courts in the coming weeks.

According to the Globe and Mail, the creditors will inject $300 million to $375 million into the circus and also agree to reduce the circus's guaranteed debt from $1.1 billion to $300 million. 

Gabriel de Alba, managing director of Catalyst, welcomed the "great result for Cirque", its employees, artists and partners, in an email sent to AFP.

"Now with the company's recent missteps put behind, we are eager to close the transaction quickly and support the company as it rekindles the magic and artistry that have made Cirque du Soleil an iconic global brand and creative force," he said.

Founded in Quebec in 1984, the troupe of acrobats had to cancel 44 productions around the world in March, due to the coronavirus pandemic.

It has laid off 4,679 acrobats and technicians, 95 percent of its employees.

The agreement with the group of creditors, announced in mid-July, replaces the takeover offer that it concluded at the end of June with its current shareholders, the American TPG and Chinese Fosun, as well as the Caisse de deposit and placement of Quebec (CDPQ).

Agence France-Presse

Top creditors to suspend poorest countries' debt payments, France says

PARIS - Major international creditors have agreed to suspend debt payments owed by the poorest countries this year, throwing a financial lifeline to help cope with the coronavirus crisis, France's finance minister said on Tuesday.

Some 76 countries, of which 40 are in sub-Sahara Africa, were eligible to have debt payments worth a combined $20 billion suspended, out of a total of $32 billion the countries were to spend on debt servicing this year.

"We have obtained a debt moratorium at the level of bilateral creditors and private creditors for a total of $20 billion euros," Bruno Le Maire told journalists.

The government creditors, including not only the Paris Club but also China and other members of the Group of 20 economic powers, are to suspend $12 billion under the agreement, which remains to be finalised on Wednesday.

Separately, a senior German official spoke of a debt moratorium by official creditors worth up to $14 billion.

"We're glad in particular that China agreed to participate in this moratorium. All that will free up money for the countries that need it the most," Le Maire said.

China has become a major creditor to developing countries, especially in Africa, but there is little transparency about how much they owe.

Private creditors have agreed on a voluntary basis to roll over or refinance $8 billion in debt, a French finance ministry source said.

Of the total $32 billion due this year, the remaining 12 billion euros is owed by multilateral lenders, mainly the World Bank, Le Maire said, urging such lenders to join the debt relief initiative.

The World Bank and the International Monetary Fund called last month on government creditors to give debt relief and the IMF said on Monday it would do so for 25 countries under its Catastrophe Containment and Relief Trust, which has about $500 million in resources on hand.

French President Emmanuel Macron said in a television address to the French nation on Monday that African countries should be helped by "massively cancelling their debt".

Le Maire said that at the end of the year outright debt cancellation should take place on a case-by-case basis and in coordination with multilateral lenders depending on the economic situation of the countries as well as developments in commodity markets and capital flows. 

-reuters-

How to pay off debt in 7 smart ways

MANILA - Do you think you are carrying too much debt? If your bills are piling up, and you are also getting calls from creditors, you should be alarmed.

Having too much debt can be stressful. While overcoming your debt problem may not be easy, especially if you are relying on a limited income, it can be done. You will need discipline and sacrifice and we have charted a road map for you below.

Here are seven debt-defying steps to set you on your way to financial freedom:

1. Know how much debt you have. When you are struggling with too much debt, you may forget how much you really owe and the details of the debt you’ve accumulated. List down all your debt, the interest rates of each, and the minimum monthly payments required. This information is essential to help you make a workable debt strategy. It also allows you to better track the payments you have to make, and know your real debt situation—which may be much better or much worse than you realize it is.

2. Choose your debt pruning strategy. It is necessary to have a good and realistic battle plan that you can implement. First, identify which debt you should pay off first—the one with the highest interest rate or the one with the lowest balance (you will save more if you retire the debt that charges the highest interest rate.) What works for one person may not work for another, so weigh your options. Once you’ve decided, make additional payments on this debt until it is totally wiped out.

3. Find ways to make additional payments. Study your income and spending patterns to find where you can get the additional money that can go toward debt servicing. This might mean either cutting back on your usual expenses, or finding new sources of income. You’ll have to make some sacrifices—bring down your entertainment budget, eat at restaurants less often, or maybe even postpone that planned vacation. New income sources can come from taking on a part-time job or selling off some stuff you’re not using.

4. Find lower interest rates. Check the interest rates you are paying on your debt. Consider taking out a lower-priced loan from other sources—possibly the bank, or even your office cooperative—to shave off the debt with the highest interest rate. Another option is to negotiate the interest rate with the lender, which you can do by writing a letter to your bank or lender. It won’t hurt to try.

5. Set realistic targets and deadlines. Let’s say you owe P100,000 on a salary of P25,000 a month. Don’t target paying off the P100,000 in four months—you can’t live on zero income and you will only set yourself up for failure. Study your needs and your cash flow to know what is realistic before you set a deadline. Giving yourself a deadline helps define your goal, which allows you to create a strategy and gives you motivation.

6. Don’t take on new debt when you’re managing existing debt. When you are struggling with debt, the worst thing you could do is to borrow some more. This will only push you deeper into the hole you’re in. Work with your creditor and explore other ways for you to manage your debt, as most of them will be more than happy to assist you. For example, they can convert your balance into a friendlier installment scheme that will make it easier for you to be up to date with your payments.

7. Reward yourself. Keep yourself motivated during this time by rewarding yourself once you’ve reached milestones—reaching the halfway mark, wiping out the largest debt, etc. After all, getting over your debt problem is a great achievement that is worth celebrating. It goes without saying, of course, that your choice of reward for yourself should not plunge you deeper into the debt hole. Try declaring a “do nothing” day or spending the day with a friend who makes you laugh the hardest, As the saying goes, the best things in life are free.

Conquering debt requires both a financial and a psychological strategy. Remember that short-term sacrifices could yield long-term benefits, and what can be a better reward than to gain financial independence and freedom from creditors? With discipline, commitment, and good planning, you can overcome your debt woes.

source: www.abs-cbnnews.com

Debt Repayment 101: How to Create a Repayment Plan

Are you in debt and unsure how to start getting out? Or are you in debt, and unsure of if you want to find a way out? If so, that’s okay—tackling debt can be a little scary, but it’s in your best interests to start working your way out of financial trouble like this.

Don’t you want to reclaim your paycheck, and not have to send a portion of it off to a creditor? You should enjoy the money that you earn! If you’re tired of living paycheck to paycheck and having maxed out lines of credit, you can (and should) take action.

Read on to find out how you can get started making good financial decisions, and how to start making a debt repayment plan.

Making the Decision to Get Out of Debt

Deciding that you’ve had enough of debt can be empowering and overwhelming all at once. On one hand, you can’t wait to kick your debt to the curb. On the other, you’re worried about how to get there and the sacrifices it might require.

Let’s get this out of the way: there’s no wrong or right way to get out of debt. Everyone should go their own pace and choose a method that works for them. Some people are okay with giving up many possessions and “wants” while living meagerly. Others still want room to enjoy life.

Before you start on a plan to pay off your debt, you should outline what you want your journey to look like. It’s okay if it changes, but it helps to have a list to go off of when things get rough.

Make a list of your values, your goals, and your wants. Ask yourself what you’re willing to go without—and what you’re not willing to sacrifice to achieve debt freedom. Be honest with yourself about what’s truly worth it. Once you determine the parameters, you won’t have to question your priorities (or be upset if others do).

It’s also important to understand what you’ll be able to do once you’re debts are repaid. You can devote more money to your other financial goals. You can accelerate your progress to your retirement goals, for example, or save up for a big purchase. Maybe you want to take a round-the-world trip, or you’re ready to start paying down your mortgage.

Use these other financial goals as your motivation to repay consumer debts from credit cards and student loans as soon as possible. When you’re free of these burdens, you’ll be able to reach other money goals even faster!

What Are Your Numbers?

It’s difficult to face the reality of your debt situation. But in order to move forward with a plan, you need to know exactly where the numbers stand.

The easiest way to do this is to list out all the debts you have, like so:

Type	Lender	APR	Balance	Min. Payment	Due Date
Credit Card	Chase	11%	$3,020.17	$75.00	4th
Credit Card	Discover	8%	$7,385.28	$130.00	8th
Student Loan	Nelnet	8.5%	$11,274.32	$220.00	11th
Car Loan	Dealership	3%	$21,295.23	$250.00	20th

You don’t have to follow a spreadsheet layout. This is just an example to help you get started. Some people like putting their numbers on a whiteboard, while others people have found creative ways to measure their success with paying off debt. Pick a method that will keep you motivated.


Creating a Repayment Plan

Now comes the fun part: strategizing! Again, there’s no wrong way to repay debt. All that matters is that you’re erasing the red on your balance sheets. There are a number of options you can choose from: pick the one that makes the most sense for your situation.


    The snowball method requires paying off the loan with the smallest balance. (In the example above, it’s the Chase card). This gives you a quick win and added motivation to keep going. Once Chase is paid off, you snowball the amount you were paying to Chase into the balance with the Discover card. If you paid the minimum amount, you’d be able to put $205 toward Discover from paying off Chase.

    The avalanche method requires paying off the loan with the highest interest rate first (in this case, Chase again). The reason for doing this is that the loan with the highest interest rate is going to cost you more down the road. Interest is ugly; the quicker you can get to paying off the principal balance, the better.

    You can also try a combination of both the snowball and the avalanche methods. Maybe you want to tackle the loan with the highest interest rate to get that out of the way, but then you want to target the loan with the lowest balance to get a quick win after all your hard work.

    The emotional method isn’t an official strategy, but it’s still an option worth covering. For some people, there is a certain debt that they absolutely despise. They would do anything to get it out of their lives. If you have one like that, feel free to attack it with a vengeance and let numbers go out the window. Then get down to strategy with the rest of what you owe.


At the end of the day, what matters is that you make progress and do what is best for you. Don’t be afraid to tweak things if one method isn’t working for you. Financial plans are rarely ever set in stone because life gets in the way.


The trick is to not give up and adapt to changes, no matter how hard it may seem at first. Share your plans with supportive friends and family members – this isn’t a journey you have to take alone.

source: totalmortgage.com

How to repair your bad credit record

MANILA, Philippines – A certification of full payment from all creditors is necessary to repair a bad credit record.

Credit Card Association of the Philippines executive director Alex Ilagan said this is the only way to fix your credit record today in the absence of a central credit database.

Ilagan said that because most credit card holders are still careless about due dates and payment history, more education is needed to remind them to take care of credit history and profile because it’s going to affect borrowing plans in the future.

“Most people would really not understand that if they default on something today, that could affect their ability to borrow money in the future, that’s not very clear right now. That’s why there has to be a lot of education that has to be done,” he said on ANC’s “On The Money.”



Financial adviser Salve Duplito, meanwhile, said that because there is no central database to monitor credit, consumers themselves should take the initiative to gather their own records.

“Going back to each company, requesting for certification, calling everyday to follow up is not something that any consumer would jump up to do. But anybody who defaulted in credit payment in the past should have this on his to-do list today,” said Duplito.

She said the absence of a unified database also makes lending very risky and limits the market of lenders.



Ilagan said that once a unified database is set up, it may bring down interest.

“The cost of credit is actually reflective of the amount of risk that banks will have to take on. The risk is there because there is a lot of unknown about the borrower, hopefully that’s what will be eliminated,” he said.

Jaime Garchitorena, president and chief executive of the Credit Information Corporation, said this will also help borrowers looking to tap other banks in ASEAN countries.

He added that a credit database will also be helpful because it can also indicate positive data, which will help improve a borrower’s credit profile.

“In the universe of data, the more data the better, and when we talk about bringing down the cost of borrowing or assessing an individual for risk then that’s where we start bringing in utility payments or any other type of positive and or negative data that may exist out there,” he said.

 source: www.abs-cbnnews.com

Choosing the best debt relief program for you

The key to getting out of debt is finding the right program of debt relief that suits the type of debt or debts that are held and the unique situation of the debtor.  Paying down debts and re-establishing good credit takes time and commitment in order to be effective.  For many people, a structured debt relief program is the best solution, while others prefer to take charge of their own debt recovery.






Structured debt relief programs

If a debtor would like to reduce the total amounts of all debts held and pay them off with one lump sum, then a debt settlement program may be the best choice.  In this program, a settlement company is hired to open a trust for the debtor and payments are made by the debtor into this account.  The settlement company’s debt arbitrators will negotiate a reduced total payment with the creditors when a sizable sum has accumulated in the account, usually after several months and then the agreed upon amount is paid to settle the debt.

People with multiple debts may want to consolidate debt into a single monthly payment, simultaneously lowering the interest on the debt itself.  A debt consolidation program accomplishes this by lowering the interest rate and waiving other fees and charges. A single payment is made each month to the consolidation company, who then disperse the money amongst the creditors.

Debt relief through debt management is a third option.  This route involves a certified credit counselor who works with the debtor to design a budget unique to the debtor’s needs and circumstance to effectively get out of debt.  They will also negotiate with the creditors to reduce the interest rate on any remaining balances, reducing the monthly payments.

Getting out of debt on your own

If a structured program for debt relief is not to taste, there are other steps that can be taken to get out of debt.  First prepare the emergency fund; $1000 cash is a good sum to have on hand in case of the unexpected.  Next, list all existing debts; have the debt with the smallest balance or payment first, then keep going up to the largest sum. Begin with the smallest balance or payment and pay down the debts one at a time, all the while maintaining the minimum payments on all other debts.  Starting with the smallest first allows the debtor to see the effects of repayment more quickly and begin removing negative marks from the credit report more immediately.

source: 20smoney.com

Seven Ways to Tackle Bad Credit

For anyone with a bad credit rating, the problems which are inherent with this situation are all too familiar. Bad credit is often an indication that you have County Court Judgments (CCJs) against you and this can be a major deterrent to future creditors.

For those in this situation, addressing their credit rating with the intention of improving it is a major priority – but how exactly can you tackle bad credit?

1. Change your spending habits

The first step in tackling bad credit is to address the source of the problem – and this is usually your spending habits. Review how much you spend on a regular basis and identify areas in which you can make cut backs. These don’t always have to be drastic measures and sometimes even small changes can have a profound difference.

2. Improve your home

Some of the largest expenditures which consumers face are related to the home. Making improvements to this area, such as reducing energy consumption, are a great way to tackle high costs and can be relatively easy to implement.

3. Pay on time

If you have any outstanding debts or repayments for bad credit loans then it is important that you pay these on time. Failure to do so will see you fall into further debt, facing higher repayments as a result. This will not help you to become debt free and will directly influence your credit rating.

4. Take loans

It may seem strange, but taking loans can often be a viable way of improving your credit rating. This is because loans which are specifically designed for those with poor credit ratings are intended to be easier to repay and thus help you prove your ability to keep to financial commitments. This can then improve your credit rating with both short and long term loans for bad credit available.

5. Track your finances

One of the biggest problems which individuals encounter when in debt is an inability to keep track of what payments they need to make. This can lead to missed payments, causing the individual to fall into further debt and thus negatively affecting their credit rating. To address this problem, keep a comprehensive list of both your incoming and outgoing finances and balance these at the end of each month.

6. Identify problems

Without knowledge of the problem, there can be no solution so it is important that you identify where it is that your financial management is going awry. Look for areas where you regularly overspend or consider whether you have too many outgoings occurring at a particular time of the month and amend as necessary.

7. Negotiate with creditors

If you find that you are struggling to make repayments then it is important that you speak to your creditors. More often than not they will be willing to negotiate an alternative schedule with you. This will make it easier for you to meet your financial commitments – giving you less to worry about and ensuring your credit rating is not worsened through missed repayments.

source: marriedwithdebt.com

Greece, creditors report progress in debt talks

ATHENS — Greece and its creditors reported progress on a major debt writedown deal after fresh talks on Friday, as Athens seeks to escape a looming default and stem further turmoil in the eurozone.

Charles Dallara and Jean Lemierre, the lead negotiators for banks, insurers and other private investors, met Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos for talks lasting two hours.

The Private Sector Involvement (PSI) deal under discussion would see the creditors agree to a discount or "haircut" of at least 50 percent on the 200 billion euros in debt they hold.

A Greek finance ministry reported "great progress concerning technical and legal matters" but underlined there "is still a lot of work left to do."

And in a statement late Friday, the creditors said: "Important understandings were reached on legal and technical issues ... Progress was made and discussions will continue tomorrow (Saturday)."

Venizelos, before the start of talks, said: "We are a step away from concluding procedures on the PSI", adding the negotiations "were difficult and delicate".

The third round of talks between Athens and private creditors, which began Thursday, seeks agreement on a voluntary exchange of bonds that would wipe 100 billion euros ($130 billion) off the country's debt of 350 billion euros.

Athens faces a critical bond reimbursement worth 14.5 billion euros on March 20.

It had hoped to present European Union leaders a framework agreement on the debt writedown at their summit on Monday, and sign an agreement by February 13 so there is sufficient time for the writedown to be achieved.

Sources have indicated a potential shortfall of up to 15 billion euros ($20 billion) if Athens is to meet an EU-IMF target for debt sustainability, with banks playing hardball over a big debt writedown from their side.

"If our Greek friends do their bit, we must support them," European Commission chief Jose Manuel Barroso said, implying that governments would have to step in where banks would not.

Barroso argued that a messy default would signal a "major problem" not only for Greece but for the eurozone as a whole.

A new analysis will be conducted by the IMF and the eurozone to ensure that the writedown returns Greece's debt to a sustainable level, according to a Greek finance ministry official.

The IMF, which is bound by rules to lend only to countries that have sustainable debt levels, has insisted that the level of Greek debt be reduced to no more than 120 percent of gross domestic product.

It currently stands at around 160 percent and sources close to the talks said proposals on the table would only get the figure down to about 130 percent.

Jean-Claude Juncker, head of the Eurogroup of eurozone finance ministers, said Friday that Greece's creditor countries should also waive a portion of the country's debt, as cutting private debt alone was not enough.

The European Central Bank (ECB), which holds around 45 billion euros' worth of Greek bonds, has so far ignored calls for it to accept losses.

IMF chief Christine Lagarde also warned Wednesday that European public creditors would need to pitch in and help Greece.

If a deal with private creditors is reached, Athens can pursue talks with EU partners on a second public aid package worth about 130 billion euros.

But the Financial Times reported that Germany wants Greece to surrender sovereignty over fiscal policy to a eurozone commissioner before it gets a fresh bailout.

"Budget consolidation has to be put under a strict steering and control system," the FT quoted from the proposal, which it said had been circulated by Germany on Friday to other eurozone officials.

German Finance Minister Wolfgang Schaeuble, meanwhile, called on Greece to move quickly on economic reforms.

"We've had enough announcements, the government in Athens must act now," he was quoted as saying in an interview with the Stuttgarter Zeitung newspaper.

Greece has implemented austerity measures but has been slow to implement structural reforms and push ahead with privatizations that are considered necessary for the country to get growth back on track and pay its debts. — AFP

source:gmanetwork.com

Kodak edges toward bankruptcy

NEW YORK — Eastman Kodak, the company which brought photography to the masses a century ago, faces a gloomy future amid new reports that it is on the edge of bankruptcy.

Never able to rebuild after the digital wave blew its core film business away from the mass market, the Wall Street Journal reported late Wednesday that Kodak has already begun preparing to ask for protection from creditors.

On Tuesday, the New York Stock Exchange told the company, once one of the fabled 30 Dow Jones blue chips, that it faces delisting from the exchange if it cannot get its stock price back above $1.00 level.

In its heyday, Kodak shares topped $80 in 1996 — just at the outset of the digital photo revolution that eventually replaced the need for consumers to buy Kodak film, once a virtual monopoly in the US market.

On Wednesday its share price plunged 28 percent to 47 cents a share; Thursday it sank another 10.6 percent to 42 cents as Moody's downgraded the company's debt rating to a very low Caa3, citing "a heightened probability of a bankruptcy over the near term."

And on Thursday the company's chief communications officer quit, following in the wake of three board directors in the past two weeks.

The Wall Street Journal said the company is still hoping that it can sell off some of its valuable patent portfolio to raise money.

But if that last-ditch effort fails, it could file for bankruptcy under Chapter 11 protection, later this month or in February, the Journal said citing sources familiar with the issue.

That would place the jobs of its 19,000 employees in question. At its height in the 1980s, it had 145,000 workers.

Kodak declined to comment on the reports, but its books have been awash with red ink for years. The last time it reported a net profit was the small gain in 2007. Its steady decline was already marked when it was dropped from the prestigious Dow Jones Industrial Average of 30 top US companies in 2004.

Founded in 1892 by inventor George Eastman, Kodak developed handheld "Brownie" cameras that were sold at popular prices, and furnished the film that would keep consumers pumping profits into the country for decades.

Three generations of Americans and many in other countries learned to snap photos with Brownies.

And "Kodak Moment", the company's advertising catchphrase for its film, was embedded deep into the vernacular.

The company meanwhile was lauded as one of the country's top technology innovators —the Apple or Google of its time.

Ironically, it pioneered research into digital photography beginning in the mid-1970s. But it was Asian electronics manufacturers that stole a march in that market in the 1990s as Kodak failed to see the need to break from its old business lines.

"They were the ones who invented the digital camera, but they didn't believe in it," said Gregori Volokhine of Meeschaert Capital Markets.

In September, Kodak hired the law firm Jones Day as advisors for restructuring, though many analysts noted that the firm also advises bankruptcies.

Kodak though sought to shore up its finances by selling often some of its huge portfolio of patents, including in digital imaging.

That could bring substantial cash and buy time, though Moody's said the threat of bankruptcy will make such sales more difficult.

"But when one is a desperate seller, the buyers have no interest in rushing because it will be cheaper when Kodak is completely on the floor," said Volokhine.

"The problem with a bankruptcy is that it does nothing to increase the value of Kodak's patents," said Douglas McIntyre of 247WallSt.com.

"If they have a very large value, Kodak would have gotten that already. It has had months to complete a process to use its intellectual property to bolster its balance sheet. That has not happened." — Agence France-Presse

source:gmanetwork.com