Latest news with #default
Yahoo
a day ago
- Business
- Yahoo
World Bank Chief Says Zimbabwe Needs G-20 to Exit Debt Trap
(Bloomberg) -- Zimbabwe's best chance of exiting a 25-year debt default is to engage the Group of 20 nations to help formulate a solution and stop trying to work its way out of the quagmire itself, World Bank President Ajay Banga said. Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy The southern African country owes the World Bank and other creditors a total of $21 billion and has tried numerous unsuccessful strategies to restore its access to global capital markets. Those ranged from attempting to repay its debts using the proceeds of metal sales and recently approaching 10 nations for help to raise $2.6 billion to pay its arrears. 'Trying to figure it out on your own, you'll be doing this for the next five years,' Banga said in an interview in Maputo, Mozambique's capital. 'They need to figure out a way to reach out to the G-20 and say, we raise our hand, we'd like to be part of this process.' Zimbabwe first defaulted on repayments to the World Bank in 2000. Its debts to a host of multilateral institutions and bilateral lenders mounted amid a failed land-reform program and a quarter century of economic turmoil, shutting it out of international debt markets and limiting its ability to borrow even during the global pandemic and a recent devastating drought. The government requested the African Development Bank to advise on clearing its debt with the institution's outgoing president, Akinwumi Adesina, and former Mozambican President Joaquim Chissano asked to negotiate with creditors. It's also being advised by Kepler Karst, a Madrid-based legal firm that offers guidance on sovereign-debt issues, which brought in Global Sovereign Advisory, a Paris-based consultancy, to offer financial advice. The fact that Zimbabwean officials, including President Emmerson Mnangagwa, have been sanctioned by the US has complicated the process. While Belarus, Syria and Eritrea are also in arrears to the World Bank, Zimbabwe's default is by far the longest. South Africa, which currently holds the G-20 presidency, last month said it has been approached by Zimbabwe to try and garner the group's support for a debt workout. Zambia, Ghana and Ethiopia are among nations that have employed the G-20's Common Framework, which was created in 2020 to help poor nations bring together a diverse set of creditors to restructure debts. While they have made progress in reaching deals, the process has been criticized for being too slow. Zimbabwe isn't technically poor enough to be eligible to utilize the framework, yet Sri Lanka — a nation in a similar situation — approached the group in 2023 for help with dealing with its creditors. 'Start talking to the G-20 and the Paris Club' and whoever else has given them money and we can help, Banga said. 'We try and bring an understanding of what write down you need to take. It takes a while.' Zimbabwe's Treasury didn't respond to a request for comment. Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen. --With assistance from Godfrey Marawanyika and Matthew Hill. (Updates with legal adviser in fifth paragraph.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Scottish Wind Farms Show How to Counter Nimby Opposition ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
a day ago
- Business
- Bloomberg
World Bank Chief Says Zimbabwe Needs G-20 Help to Exit Debt Trap
Zimbabwe's best chance of exiting a 25-year debt default is to engage the Group of 20 nations to help formulate a solution and stop trying to work its way out of the quagmire itself, World Bank President Ajay Banga said. The southern African country owes the World Bank and other creditors a total of $21 billion and has tried numerous unsuccessful strategies to restore its access to global capital markets. Those ranged from attempting to repay its debts using the proceeds of metal sales and recently approaching 10 nations for help to raise $2.6 billion to pay its arrears.
Yahoo
3 days ago
- Business
- Yahoo
NYC Billionaire Charles Cohen being sued over bad $535M loan — how to build real estate wealth without drowning in debt
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. New York City real estate tycoon Charles Cohen has lived a life most people only dream of — complete with exotic cars, lavish mansions and fancy yachts. Now, some of his prized possessions are under threat as a massive business loan gone bad starts to have very personal consequences. Cohen, 73, is being sued by Fortress Investment Group over a $535 million loan extended in 2022 to his firm, Cohen Realty Enterprises. The collateral included a Manhattan office tower, the Le Meridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties, according to The Wall Street Journal, citing records from New York State's Supreme Court. But that's not all: Cohen personally guaranteed $187.2 million of that loan. His net worth is nearly $2 billion, according to a financial statement filed with the court. His business defaulted last year, and Fortress has since seized much of the collateral. Still, the firm claims those assets fall far short of what Cohen owes, reports The Journal. That shortfall has led Fortress — an investment giant partially owned by Abu Dhabi's Mubadala Capital — to go after Cohen's personal wealth. And that's exactly what it's doing. Fortress is seeking to confiscate Cohen's homes in Provence, France, and Greenwich, Connecticut, reports The Journal, along with his fleet of 25 luxury cars and five yachts — including a 220-foot superyacht that's presently docked at an Italian port under court order. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how Following a French court order, debt collectors have already seized hundreds of thousands of dollars' worth of Cohen's belongings from his 138-acre estate and vineyard in Provence, according to The Journal. The haul apparently included high-end furniture, valuable artworks and a fine wine collection. 'They keep pecking at us, like a bird would peck at something,' Cohen said of Fortress in a February deposition, per The Journal. 'Enough was never enough.' A blunt reality check Real estate has long been one of the most powerful tools for building wealth — and for good reason. It has the potential to generate steady rental income, appreciate over time and offer valuable tax advantages. But as Cohen's case shows, that success isn't guaranteed — especially when there's large amounts of debt involved. Leverage is a common part of real estate investing, even for everyday investors. With home prices sky-high, most people need to take out a mortgage to buy an income property. And with interest rates elevated, borrowing has become more expensive — assuming you can even save enough for a down payment. The good news? You no longer need to take on traditional debt to get started in real estate. Becoming a real estate mogul — starting with $100 Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America's real estate market. Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment. Read more: Rich, young Americans are ditching the stormy stock market — A $35-trillion opportunity Rising home prices have helped Americans build substantial wealth through homeownership — but for years, the $35-trillion U.S. home equity market was an exclusive playground for big institutions. Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property. With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. Be the landlord of Walmart If you've ever been a landlord, you know how important it is to have reliable tenants. How do grocery stores sound? That's where First National Realty Partners (FNRP) comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord. With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns. Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Car insurance in America now costs a stunning $2,329/year on average — but here's how 2 minutes can save you more than $600 in 2025 Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Daily Mail
21-07-2025
- Business
- Daily Mail
Billionaire tycoon Charles Cohen faces losing mansions, yachts and 25 supercars in embarrassing debt drama
A billionaire New York City real estate tycoon faces losing his fleet of mansions, yachts and supercars after his business defaulted on huge loans. Charles Cohen, 73, has seen authorities in France seize high-value artworks, luxury decor and his prized collection of fine wines, with his assets in the US now under the same threat. Cohen, who boasts a net worth of almost $2 billion, is being sued by Fortress Investment Group over a $535 million loan it made to his property firm, Cohen Realty Enterprises, in 2022. As collateral on the loan, Cohen listed his office tower on Manhattan's Lexington Avenue, the Le Méridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties, according to court records reported by the Wall Street Journal. But Cohen also personally guaranteed $187.2 million of the loan, which has allowed Fortress to now go after the billionaire's array of luxury assets. Cohen's business defaulted last year, but Fortress said that the value of his collateral did not meet his debts, and court records cited by the Journal showed he is at risk of losing his homes in New York, Connecticut, and Provence, France. Fortress is also reportedly going after his 25 luxury supercars, which includes two Ferraris, and five yachts. Cohen is facing allegations that he transferred ownership of his assets to family members in an attempt to avoid paying his mounting debts, which he denied. Once one of the most powerful real estate moguls in Manhattan, Cohen saw his fortunes sour in the pandemic. Lockdowns sent demand for office spaces through the floor, and Cohen's string of movie theatres that he owns were upended as people could no longer go to see blockbusters in person. Cohen notably won an Oscar in 2017 as his production company, Cohen Media Group, distributed The Salesman, which won best foreign-language film. As many property tycoons gave up their skyscrapers and office buildings to lenders, Cohen kept hold of many as he said he felt personally attached to them as they had been in his family for decades, ever since his father and two uncles started their property empire that Cohen would later take over. This led him to reach a restructuring plan with Fortress that included the personal guarantee of almost $200 million, a decision that has now landed scrutiny on his lavish assets. Cohen has launched a countersuit against Fortress, beginning a battle with the investment group in what the Journal described as 'one of the nastiest in commercial real estate for many years.' Earlier this month, a judge in Italy ruled that one of Cohen's yachts, a 220-foot, $49.6 million vessel, couldn't leave the Port of Loano without approval from the court. The yacht is one of five of Cohen's boats that Fortress is trying to seize, but court records reportedly showed that he transferred ownership to his wife, Clo Jacobs, last year. Jacobs worked as the public relations and marketing director of the American division of luxury designer Jimmy Choo, according to a New York Times report on their wedding in 2004. According to Fortress, he also did the same with his $20 million mansion in Greenwich, Connecticut, and the Château de Chausse estate in France. Late last year, French authorities raided the Château de Chausse, a sprawling 138-acre mansion with a vineyard in France's Provence region. Under orders from a French court, debt collectors seized hundreds of thousands of dollars' worth of Cohen's personal belongings including his prized fine wine collection on behalf of Fortress. After being accused of trying to avoid this fate by transferring ownership to his wife, Cohen denied these claims and said they were legitimate moves for tax-planning purposes. He told the Journal that he is in the process of selling some of his vast array of properties to pay his debts to Fortress, but needs more time to complete the deals. In a deposition in February, he reportedly complained to the court about Fortress' attempts to seize his assets, saying they 'keep pecking at us, like a bird would peck at something... Enough was never enough.' Cohen also listed the Le Méridien Dania Beach hotel in Fort Lauderdale, Florida, (pictured) and four other properties Christopher Caffarone, Cohen's attorney, says that Fortress' aggressive actions have seen the billionaire unable to withdraw money from his personal accounts without approval from Fortress, alongside restrictions to brokerage accounts held by Cohen, his mother and his sister. 'His family's lives are being disrupted,' Caffarone said earlier this year at a court hearing. 'They are getting subpoenaed. They are getting deposed.' Fortress argued that it is going after Cohen's family members because he transferred personal assets to them, and said in court records that it 'is left with no choice but to begin enforcing its judgment against Cohen's assets.' With his vast empire now at risk, Cohen says he is not afraid of losing his reputation as one of the property world's big hitters. 'I've always been good at hanging on,' he told the Journal. 'That's what we've always done, and we will continue to do that.'
Bloomberg
17-07-2025
- Business
- Bloomberg
Tariffs Push More Companies Closer to Default
The number of companies at the greatest risk of defaulting are at an 11-month high, thanks to continued uncertainty around Donald Trump's global trade war and how it has worsened credit conditions, according to a Moody's Ratings report. In the second quarter, 16 companies were added to the cohort of businesses with the highest default risk. The group now stands at 241 companies. Beauty products company Conair and brake kit company Power Stop are among firms Moody's downgraded further into junk in the second quarter, given 'significant pressure on their earnings and cash flow from high tariffs on goods sourced from China and other countries,' according to the report.
