Good morning. Here's what happened overnight and what you need to know today.
1.
Adani drama: The US SEC summoned Gautam Adani and his nephew, Sagar Adani, requiring responses within 21 days, to address allegations of bribery and misleading US investors, according to media reports. The summons follows a criminal indictment unsealed on 20 November by US prosecutors, accusing them of participating in schemes to pay over USD250 million in bribes to Indian officials to secure solar-power contracts, with the SEC separately alleging they misled US investors about compliance in a USD750 million bond offering by Adani Green Energy. Adani has denied the criminal charges as “baseless”. CFO Jugeshinder Singh said the allegations relate to one contract, representing 10% of Adani Green’s business, and that no other group firms were implicated. Adani Group shares have plunged, banks are reconsidering their credit lines to the group and Kenya cancelled USD2.5 billion in contracts. Indian opposition leaders are linking the case to alleged ties between Adani and Prime Minister Narendra Modi. (Bloomberg)(Reuters)
2.
Goldman burn: Goldman Sachs' private equity funds will write off at least USD896 million ($1.38 billion) following the bankruptcy of Swedish battery maker Northvolt, which filed for Chapter 11 last week, the FT reported. Goldman’s largest exposures are through West Street Capital Partners VII (USD407 million) and VIII (USD346 million), the paper said. Its Horizon Environment and Climate Solutions 1, Goldman’s inaugural direct private markets strategy for environmental investments, contributed USD116 million, while the StoneBridge 2020 fund added USD27 million. Northvolt, previously hailed as Europe’s answer to Asian dominance in battery-making, raised USD15 billion from investors, including Volkswagen – its largest shareholder with a 21% equity stake – faced production issues and overexpanded into Germany and Canada. Despite months of rescue efforts led by Goldman with customers and creditors, no solution was found and the company collapsed with just USD30 million in cash and USD5.8 billion in debt. CEO Peter Carlsson resigned a day after the filing. (FT)
