Latest news with #assetrecovery
Bloomberg
a day ago
- Business
- Bloomberg
Malaysia Has Recovered $7 Billion in Funds Linked to 1MDB
The Malaysian government has recovered 29.7 billion ringgit ($7 billion) of funds relating to 1Malaysia Development Bhd and its former unit SRC International Sdn. since the establishment of the Assets Recovery Trust Account, according to the Finance Ministry. As of end-July, 42.17 billion ringgit has been channeled to 1MDB to finance debt repayments and fulfill the company's commitments, the Finance Ministry said in a written parliamentary reply on Wednesday. Of the amount, 15.44 billion ringgit was channeled from the Finance Ministry and the Minister of Finance Incorporated in the form of shareholder advances or loans, while 26.73 billion ringgit came from the proceeds of 1MDB's asset recovery, it said.
CNA
31-07-2025
- Business
- CNA
Singapore sees surge in business liquidations, hits 5-year high in first half of 2025
SINGAPORE: A growing number of businesses are going belly up in Singapore, with more companies being liquidated in the first half of 2025 than in the same period in the last five years. From January to June this year, 187 firms were forced by the courts to wind up. This is up from 146 in the same period last year and 95 the year before, according to the latest statistics from the Ministry of Law. Singapore also hit a 15-year high in the number of compulsory liquidations – 307 – last year. Licensed asset recovery firms told CNA they have seen a significant rise in businesses buckling under the weight of debt, unable to pay their lenders and clients. They said liquidation remains the last resort as it typically recovers only a fraction of the amount owed - sometimes as low as 10 per cent. The process involves a company's assets being seized and realised, with the resulting proceeds used to pay off its debts and liabilities. Cash flow problems are a key reason why companies go bust, said liquidators and analysts. This means they do not have enough money coming in to cover what they owe, even if they have assets on paper. Businesses also dealt with rising interest rates between 2022 and 2024, with rates beginning to ease only earlier this year. By then, however, many firms had already been hit hard by the withdrawal of COVID-19 government support at the end of 2023 as well as a weak economic year. FOOD AND BEVERAGE SECTOR BADLY HIT One debt collector firm, JMS Rogers, said an extreme example it handled was a food supplier that worked with major restaurants in Singapore. 'When he approached us, he gave us almost 120 debtors to go after, and the total size of collections was almost S$2.5 million (US$1.9 million) … His cash flow was quite badly affected,' said JMS Rogers' CEO Leroy Frank Ratnam. Debts can range widely from hundreds of dollars to hundreds of thousands, he added. Debt collectors and liquidators said the food and beverage industry has been the hardest hit, followed by the interior design and construction sectors. In some cases, employees band together to demand unpaid salaries and bonuses. Commercial landlords also approach Mr Ratnam's firm to collect rental fees. 'A lot of times, we see that the rental deficit has been about four to six months,' said Mr Ratnam, adding that he questions these landlords on why they took so long to take action. 'Their belief is that the company will turn around and they'll catch up and improve their cash flow, and once that happens, they will be able to pay,' he said. 'However, having been in this industry for a very long time, we know that that rarely happens, so we are there to collect.' This year, his firm has seen a 20 to 30 per cent increase in cases each month. Some clients constantly return to seek help in clawing back money owed to them by businesses, he added. Another licensed debt collector, Assured Debt Recovery, has similarly seen a 30 per cent jump in companies that owe debt and are closing compared with a year ago. Its business development manager Sean Lee attributed this partly to impact from the COVID-19 pandemic. 'Another is rental - because the rental is too high, the product value is too high, and their costs cannot be that high … so they find it's very hard for them to flip it around. Eventually, they choose to close,' he added. 'Some even tried borrowing money outside to fund their business, but at the end of the day they failed.' Debt amounts are growing as well, Mr Lee noted. Among the cases handled by Assured Debt Recovery, a majority of firms last year owed about S$20,000 to S$60,000, but many this year have accrued debts of more than S$100,000. LIQUIDATION NOT THE BEST SOLUTION If debts are not paid back, Mr Ratnam's firm helps clients take the debtor company to court to shut it down and get their money. But they often get only a small fraction of what they are owed. 'Liquidation has always been the last resort that we or our clients want to go for … They're really in that situation because of economic pressures,' said Mr Ratnam 'They're in that situation because someone else in their partnership made a wrong decision, and they still want to carry on running the business … legitimately. They want to honour their debt, but they are in a situation whereby their financial hardship disallows them from doing that,' he added. Mr Lee also said his firm's clients 'tend not to follow through' with liquidation. One of its clients was owed about S$50,000 but only got back S$1,900 after proceeding with legal action. When liquidation is the only way out, it involves clearing and selling assets to get cash – often in drastic ways. Firms and liquidators typically advertise items on sale online or in newspapers. CNA spoke to a warehouse sale operator that had to wind up a furniture company which owed S$2 million in unpaid rent. Sofas that used to retail for S$800, for instance, were on sale for just S$300 in efforts to clear stock. In the worst-case scenarios, assets that cannot be sold will be disposed of. CNA understands liquidators have contracts with junk dealers to salvage what they can. CHALLENGES REMAIN Experts said challenges such as rental costs, demand uncertainty and manpower will continue to plague businesses. But they added that there is strong momentum in new business formation, with more companies being registered this year than last year. 'It appears that despite all the challenges … there is still optimism within the business community in relation to the outlook of the Singapore market,' said Mr Tan Wei Cheong, a turnaround and restructuring partner at consultancy firm Deloitte Singapore. Still, the insolvency practitioner cautioned that the market will continue facing headwinds, including tariffs imposed by the United States that could have a direct impact on sectors like trade and export. Singapore's economic growth is also expected to weaken in the second half of the year due to global headwinds, which could spill over into domestic oriented sectors such as retail and F&B, said the Monetary Authority of Singapore on Wednesday (Jul 30). In April, the Ministry of Trade and Industry downgraded the country's gross domestic product growth forecast for 2025 to 0 per cent to 2 per cent. Mr Tan noted that this year's economic challenges appear similar to those faced two years ago. 'Companies that were struggling in 2023 - they may not have the opportunity to get out of that cycle as of this point in time yet,' Mr Tan added. 'This is particularly true for SMEs (small and medium-size enterprises) where financing options are fairly limited.'
Zawya
08-07-2025
- Business
- Zawya
Bahrain: Guidelines issued on asset recovery and confiscation
Bahrain - Attorney General Dr Ali Al Buainain issued Decision (47) of 2025, approving the guidance manual on requests for asset recovery and enforcement of confiscation orders. The manual was prepared in line with international standards and FATF recommendations, in co-ordination between the Public Prosecution and Interior, Finance and National Economy and Justice, Islamic Affairs and Endowments ministries, and the Central Bank of Bahrain, with the approval of the Supreme Judicial Council. The manual details the procedures for recovering assets and proceeds of crime, whether requested by national authorities or received from abroad. It also outlines how to enforce confiscation orders issued by Bahraini courts or foreign judicial bodies, and defines the roles of relevant Bahraini institutions in implementing these measures. It aligns with national laws and Bahrain's commitments under international agreements, including the United Nations Convention against Corruption (UNCAC) and the UN Convention against Transnational Organised Crime (UNTOC). Assistant Attorney General Counselor Wael Buallay noted that the manual aims to standardise legal procedures for recovery and confiscation, unify institutional practices, enhance transparency, protect the rights of bona fide parties, and uphold legal safeguards. It also reinforces international judicial co-operation by clearly outlining the legal and institutional pathways for asset recovery and enforcement of final confiscation orders, he added. Mr Buallay added that the manual reflects Bahrain's commitment to global crime-fighting efforts, particularly against money laundering and terrorism financing, and supports international collaboration to trace and recover illicit assets across borders. It complements national procedures to prevent criminals from concealing or using crime proceeds abroad and represents a key step in executing effective and lawful confiscation. Mr Buallay praised the contributions of the relevant agencies and the AML/CFT Policy Committee, which ensured the manual meets both domestic and international requirements for asset recovery, enforcement, and co-operation. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
RNZ News
26-06-2025
- RNZ News
Bikes, cars and cash seized in Gisborne drug sting
Gisborne police, with the assistance of Hastings police asset recovery unit, carried out three search warrants. Photo: RNZ / Rebekah Parsons-King More than $80,000 cash and a number of vehicles have been seized by police in Gisborne this week in search warrants related to drug supply in the area. This week Gisborne police, with the assistance of Hastings police asset recovery unit, carried out three search warrants for property they believed had been obtained through illicit funds, connected to the methamphetamine supply chain in the region. During the search, police found around $81,000 in cash, a Holden ClubSport, a Ford Ranger and multiple Harley Davidson and Honda motorcycles. Detective Sergeant Eric Hunter said the operation would have a direct impact on the local methamphetamine supply chain. Senior Sergeant Mike Fischer said by targeting "illicit benefits" obtained by drug offending, offenders were denied both the "success" of the offending and their ability to expand their offending was removed. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Russia Today
27-05-2025
- Business
- Russia Today
Russia could restrict return of Western brands
The Russian parliament is set to pass a law that would regulate the right of foreign companies to reclaim assets sold during their exit from the country, Izvestia reported on Tuesday. The draft has reportedly been approved by the Finance Ministry and will be considered by the State Duma in its second and third readings simultaneously. Numerous US, European, and Asian companies pulled out of Russia due to supply problems caused by unprecedented sanctions imposed on Moscow by the West after the escalation of the Ukraine conflict in 2022. Other firms left due to the risk of facing secondary sanctions or public relations pressure. The bill, reviewed by Izvestia, allows Russian authorities or current owners to reject asset buybacks under certain conditions. Grounds for refusal include the foreign seller being from a country that has imposed sanctions on Russia, the repurchase price being below market value, or if more than two years have elapsed since the original deal with the Russian owner fulfilling obligations to employees and creditors. The Russian authorities may also block asset buybacks if a company operates in sectors deemed vital to the country's socio-economic stability, including defense or finance, the outlet said. In such cases, asset repurchase would require presidential approval. According to Izvestia, the new measures will be voted on in June and could affect at least 18 foreign companies with buyback options, including Renault and McDonald's. The draft law also reportedly stipulates that foreign businesses denied repurchase could be eligible for compensation, the amount of which would be determined by the government. However, if former owners failed to fulfill obligations before their exit, compensation could be reduced by court decision. In March, Russian President Vladimir Putin ordered the government to draft regulations for Western firms seeking to return to the country's market, which would prioritize the adequate protection of local businesses. Following the exodus of foreign firms, the Russian market has largely adapted by promoting domestic and Chinese brands, making re-entry more challenging for Western companies. In sectors such as automotive and fashion, local alternatives have filled the void left by departing Western firms. Putin said on Monday that foreign tech firms that continue operating in Russia while acting against the country should be 'squeezed out.' 'They are trying to squeeze us, so we must respond in kind,' Putin said in response to a question about possible measures against companies such as Zoom and Microsoft. The president added that Russia had not expelled any companies and had instead created favorable conditions for their operations.
