Here is the list of the biggest companies in Asia announcing bankruptcy in 2020 because of the coronavirus. The list will be updated as soon as other companies join the group.
06 May, 2020 | AtoZ Markets – Covid-19 has brought down global stock markets, has produced alarming projections for global growth. It has forced millions of people to lose their jobs and most others to work from home. Coronavirus cases in Asia reached a quarter of a million on Tuesday, due to epidemics in Singapore, Pakistan and India. However, cases in Asia were generally more resilient than North America and Europe.
Australia, Malaysia, Singapore and Thailand, among others, have warned of possible economic contraction this year. Hong Kong entered a recession last year after widespread political protests. The country seems even worse off.
Even the most optimistic estimates are depressing in this typically dynamic part of the world. Asian Development Bank predicts the region will grow only 2.2% in 2020, down from 5.2% in 2019 and 5.9% in 2018. But it forecasts a rebound next year, with expansion 6.2%. The S& P500 plunged more than 25% in six weeks. The Singapore stock market has fallen 25% since the start of the year. Hong Kong and South Korea fell by about 20%.
Great Asia Businesses Closed Because of Coronavirus
Less than two months after the start of the coronavirus crisis, and despite the massive injection of federal funds, an increase in corporate bankruptcies has already started. More than 100 companies in Japan went bankrupt during the new coronavirus pandemic. The number of tourists plummeted, and the “stay home” campaign caused revenues to fall, according to a research institute.
In China, there are currently $ 10.5 billion in credit card debt and hundreds of billions of yuan in mortgage debt that cannot be paid on time. Here is the list of some major companies in Asia declaring bankruptcy in 2020 because of the coronavirus:
Hin Leong Trading and Ocean Tankers
Hin Leong Trading and it’s subsidiary Ocean Tankers, the group’s shipping arm claims to own a fleet of over a hundred tankers. But both have also requested the protection of Singapore company law against its creditors under section 211B. The two companies are the exclusive property of the Lim family.
Company founder and director Lim Oon Kuim, 77 was cited in the case. He is taking responsibility for ordering the finance department to conceal the losses by preventing them from appearing in the company’s financial statements. Before the bankruptcy, Ocean Tankers had over 3350 employees.
Virgin Australia, the largest airline in the world, filed for bankruptcy protection in the weeks. The company was shut down by the coronavirus, which created a debt crisis. Virgin Australia owed Australian $ 5 billion ($ 3.2 billion) and had not shown a profit for seven years when the pandemic practically nailed the aviation industry to the ground.
Virgin Australia had asked the Australian government for an emergency loan of 1.4 billion Australian dollars. But the government refused; in part for fear that the money would be diverted for the benefit of foreign airlines in financial difficulty which owns Virgin. Before filing for bankruptcy protection, the company had over 10,620 employees.
On April 24, Japanese capsule hotel operator First Cabin filed for bankruptcy protection as the coronavirus pandemic hit an industry already struggling with surplus capacity. Hotel and restaurant operators’ risk is exhausting cash in six months, the report said.
Aussie Disposals, a retailer of outdoor and equipment retailer, has applied for voluntary administration due to the global coronavirus pandemic. The company said it had appointed the directors of Melbourne Magnetic Insolvency to guide it in saving its business. Before pandemic, the company had around 500 employees.
Approximately 11 of Aussie Disposals’ 36 stores in Victoria, NSW and South Australia, mostly located in shopping malls are close. Franchise stores which represent 13 additional stores remain open.
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