2025-05-28 00:44

May 27 (Reuters) - Brazilian airline Azul (AZUL.N) , opens new tab is set to file for Chapter 11 bankruptcy protection in the United States as soon as Tuesday, newspaper Valor Economico reported, citing sources. The move would make the carrier the latest in a series of Latin American airlines to file for bankruptcy in the aftermath of the depression the industry suffered in the initial months of the COVID-19 pandemic. Sign up here. Azul's move would follow in the footsteps of Aeromexico, Colombia-based Avianca and its two largest rivals, Gol and LATAM Airlines (LTM.SN) , opens new tab, all of which succumbed to bankruptcy proceedings in recent years. Azul last year struck a deal with lessors to scrap $550 million in debt in exchange for an equity stake of around 20%, as well as one with bondholders to raise additional financing, but its balance sheet remained severely pressured. Azul's net debt soared 50% year-on-year by the end of the first quarter to 31.35 billion reais ($5.56 billion), with its leverage ratio hitting 5.2, up from 3.7 a year earlier. ($1 = 5.6377 reais) https://www.reuters.com/world/americas/brazils-azul-file-chapter-11-bankruptcy-protection-valor-reports-2025-05-28/

2025-05-28 00:03

Jakarta is main French arms client in Southeast Asia Indonesia previously placed order for 42 Rafale jets Orders could also include French frigates, submarines Macron, Prabowo also discuss deepening crisis in Gaza More than 20 MOUs worth at least $11 billion signed - minister JAKARTA, May 28 (Reuters) - France and Indonesia have signed a preliminary defence pact that could lead to new orders of French military equipment including Rafale fighter jets and Scorpene submarines, French President Emmanuel Macron said on Wednesday. "I am delighted that the letter of intent signed today could open up a new perspective with new orders for Rafales, Scorpenes, light frigates," Macron said at a joint press conference alongside Indonesian President Prabowo Subianto. Sign up here. Prabowo said France was one of Indonesia's main partners as it upgrades its military hardware and develops its defence industry through joint production and technology transfers. Macron arrived in Jakarta from Vietnam on Tuesday night on the second leg of his Southeast Asia tour. The French president is scheduled to fly to Singapore on Thursday. Dassault Aviation shares were up 3.4% in the morning session in Paris. The jets' performance came under scrutiny last month after reports that Rafales used by the Indian air force were shot down by Pakistan's Chinese-made jets in clashes. Indonesia has yet to receive any of the Rafale jets from the 2022 deal. The chief of the Indonesian Air Force Mohamad Tonny Harjono said in February that six jets would arrive in early 2026, state news agency Antara reported. Aside from the Rafale deal, Indonesia in 2024 struck an agreement with French state-owned shipyard Naval Group to buy two "Scorpene" submarines, and in 2023 announced the purchase of 13 long-range air surveillance radars from France's Thales. ISRAEL-GAZA CONFLICT The two leaders also discussed the deepening crisis in the Middle East with Israel's military action in Gaza. "When Palestine is recognised by Israel, Indonesia is ready to recognise Israel and we are ready to open diplomatic relations with Israel," Prabowo said. Indonesia currently does not recognise or share any diplomatic relations with Israel. Macron reaffirmed his wish to see a two-state solution. EV BATTERY ECOSYSTEM France and mineral-rich Indonesia also signed a host of other agreements and more than 20 MOUs worth at least $11 billion, said Indonesia's chief economic minister Airlangga Hartarto at a business forum. The MOUs included one on cooperation between French mining company Eramet (ERMT.PA) , opens new tab and Indonesian sovereign wealth funds Danantara and Indonesia Investment Authority (INA). The agreement aims to "explore the establishment of a strategic investment platform in the nickel sector, spanning upstream to downstream operations," Eramet, Danantara and INA said in a joint statement. The partnership aims to develop the raw materials needed for electric vehicle (EV) batteries and the statement said a preliminary assessment will be made to identify projects. Danantara's Chief Investment Officer Pandu Sjahrir said in the statement that the two wealth funds will manage long-term financing and Eramet will contribute technical expertise and experience in executing large-scale mining projects. Indonesia is the world's largest producer of nickel, and also holds the biggest known reserves of the metal. French food company Danone (DANO.PA) , opens new tab, and TotalEnergies (TTEF.PA) , opens new tab also signed deals, according to images of a signing ceremony broadcast by Reuters TV. https://www.reuters.com/business/aerospace-defense/frances-macron-indonesias-prabowo-discuss-strategic-partnerships-2025-05-28/

2025-05-27 23:30

HOUSTON, May 27 (Reuters) - A U.S. federal judge has extended to at least June 2 a period for bidders to submit rival bids in a court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, according to a filing released on Tuesday. Last month, Delaware judge Leonard Stark approved a $3.7 billion offer from Contrarian Funds' affiliate Red Tree Investments as the starting bid in the auction of shares, aimed at compensating 15 creditors for debt defaults and expropriations in the South American country. Sign up here. Red Tree and rival consortia had been given until May 28 to submit competing or improved offers, but lawyers representing Venezuela last week requested more time for parties to analyze parallel lawsuits in other U.S. courts that could affect the amount or conditions of some bids. According to a new calendar proposed by some creditors and supported by a court-appointed "special master" overseeing the sales process, the topping period could be extended for as much as three weeks, but the auction's final hearing would still be done in July after a winner is selected. Judge Stark must rule on the proposed calendar. Since last year, some Venezuela-linked creditors trying to cash proceeds in the eight-year case in Delaware have introduced lawsuits in pursuit of the same assets. A New York court last week dismissed arguments by one of the groups of creditors. The new legal developments are encouraging fresh offers, special master Robert Pincus said on Tuesday in a motion supporting the extension, without elaborating on the potential bidders' names. "The special master believes that the requested 21-day extension of the topping period may lead to a more robust bidding process through the submission of new and improved topping bids," a counsel for Pincus said in a filing. The lawyers representing Venezuela requested the extension, writing: "This is a monumental development in the sale process. The Venezuela parties respectfully move for an extension of (the) topping period to allow bidders, or potential bidders, to account for the elimination of what the special master has called a 'cloud of uncertainty,' that has hung over the bidding." https://www.reuters.com/business/energy/us-judge-extends-topping-period-citgo-parents-auction-until-june-2-2025-05-27/

2025-05-27 23:27

Tokio Marine GX to insure across industries Green hydrogen, shipping, cement among targeted sectors Seeking at least 10% of the end-decade market, chair says LONDON, May 28 (Reuters) - Japanese insurer Tokio Marine (8766.T) , opens new tab has set up a unit to insure activities linked to the low-carbon transition such as green hydrogen, shipping and cement and is targeting $1 billion in revenues by the end of the decade, its chair told Reuters. The new unit, Tokio Marine GX (TMGX), will provide advisory and risk transfer services to companies across a range of sectors looking to decarbonise, and build on the existing work of its GCube renewable energy team, Fraser McLachlan said. Sign up here. TMGX will offer up to $500 million in cover on any single risk and is targeting at least a 10% share of the global premium income market in 2030, estimated at around $10 billion, he said. While some peers had already begun to write more transition-linked business, most had done so using existing sectoral teams rather than creating a dedicated unit, he said. "We're going to rip up the rule-card a little bit here," McLachlan said. "We're going to look at some new technologies, we're going to look at more sophisticated ways of being able to risk transfer business," such as offering insurance for tax credits and surety guarantees. Launching with existing GCube headcount of around 50 and revenue of around $200 million, both would likely double over the next couple of years, he said. Parent Tokio Marine is the largest property and casualty insurer in Japan with a market value of around $70 billion. Among the new technologies TMGX would look to cover include small and middle market nuclear, hydrogen, fuel cells, new solar technologies including floating solar and electric vehicles, he said. "There's a lot of sectors that really haven't been served by the insurance space," McLachlan said. Another area ripe for extra help was the market for tax credit insurance, where businesses get cover in case they are unable to access the credits as planned, thereby lowering their risk to bank lenders and the interest rate on borrowing. "It's a win-win. Lenders love it as it transfers their risk; we like it, we're getting a premium for a risk we're comfortable with; and it allows the project to be financed at more equitable terms." The company could also look to strike deals with managing general agents, intermediaries given authority by the insurer to write business in their name, saving them the time and expense of building out a team. "It's a pretty quick win... it allows you instant access to a market," McLachlan said. Finding more innovative ways to finance the risks associated with the transition was critical if the world is to hit its climate goals. "Unless people start coming to the table with more creative insurance solutions ... we're going to see a lot of these projects stall," he said. https://www.reuters.com/sustainability/cop/tokio-marine-launches-green-unit-eyes-1-billion-revenues-by-2030-2025-05-27/

2025-05-27 23:23

Chevron's new authorization restricts operations in Venezuela, sources say Chevron's previous license to operate in Venezuela expired on Tuesday Venezuela's oil output hindered by sanctions, mismanagement and lack of investment May 27 (Reuters) - The Trump administration has issued a narrow authorization for U.S. oil producer Chevron (CVX.N) , opens new tab to keep assets in Venezuela, including its stakes in oil joint ventures with state company PDVSA, three sources with knowledge of the decision said on Tuesday. Chevron and several European firms had been in talks with officials in Washington in recent weeks to obtain authorizations to preserve their stakes and assets in the South American country amid President Donald Trump's restrictive policy toward the nation. Sign up here. The guidelines for Chevron, whose terms are similar to those in a U.S. license it held between 2020 and 2022 for its Venezuelan operations, came as the administration allowed the energy company's wider license to operate in the country to expire on Tuesday. Former U.S. President Joe Biden had issued that license more than two years ago. Under the new authorization, Chevron cannot operate oilfields in Venezuela, export its oil or expand activities, the sources said, adding that its intention is to avoid any possible payments to President Nicolas Maduro's administration. Chevron said in a statement on Tuesday: "General License 41B has expired, and Chevron's continued presence in Venezuela remains in compliance with all applicable laws and regulations, including the sanctions framework provided for by the U.S. government.” The U.S. Treasury Department and PDVSA did not immediately reply to requests for comment. It was not immediately clear if the guidelines for Chevron would be extended to other foreign partners of PDVSA. Executives from Chevron Venezuela on Tuesday notified Venezuela's authorities and its contractors about the new instructions, two of the sources said. Oil service and procurement contracts Chevron had signed were terminated. A wind-down period set in the previous license to complete transactions, including exports of Venezuelan oil to the U.S., expired, despite a statement by U.S. special envoy Richard Grenell last week that a 60-day extension would be granted, following a meeting with a Venezuelan top official. Trump has accused Maduro of failing to make progress on migrant returns and electoral reforms toward the restoration of democracy in the South American nation, and said in February he would revoke the license. Maduro and his government have always rejected sanctions by the U.S. and others, saying they amount to an economic war, while cheering what they say is the country's resilience. Venezuela, an OPEC member, has the world's largest reserves of crude. But its oil output is a fraction of what it was a decade ago due to lack of investment, mismanagement at PDVSA and U.S. sanctions since 2019. In recent years, the licenses to Chevron and other foreign companies supported a slight recovery in Venezuelan oil output to about 1 million barrels per day. https://www.reuters.com/business/energy/us-grants-chevron-narrow-authorization-keep-assets-venezuela-sources-say-2025-05-27/

2025-05-27 23:21

SAO PAULO, May 27 (Reuters) - Brazil's government on Tuesday decided to renew 25% tariffs initially imposed last year on 19 steel products, while also expanding the trade defense measure to other four, Brazil's Ministry of Development, Industry, Trade and Services said. The decision, which was made by government trade body Gecex/Camex, and will be valid for a further 12 months, also maintained a quota system on the volume of steel imports, the ministry said in a statement. Sign up here. Brazil had initially announced those trade defense measures in April last year, after steelmakers complained about cheap foreign steel, specially from China, "flooding" the local market. In the statement, which did not name the new products to be affected by the tariffs, the ministry said that steel imports made in the context of trade agreements or special regimes would not count toward the quota volumes. https://www.reuters.com/markets/commodities/brazil-government-renews-tariffs-quotas-steel-products-2025-05-27/