Business Crises in Europe and Asia: The Role of Aggressive Expansion

1990s: Swissair embarked on an ambitious and costly expansion strategy, acquiring stakes in multiple airlines around the world to create the Qualiflyer Group Alliance.

2000: Swissair’s financial troubles began to surface as the company experienced difficulties with mounting debt and losses.

2001: Swissair grounded its fleet due to a severe liquidity crisis and sought emergency financial assistance from the Swiss government.

1990s: Parmalat embarked on an aggressive international expansion, acquiring various companies worldwide and diversifying into different industries.

December 2003: Parmalat admitted that it did not have the funds it claimed to have and announced a financial crisis. It filed for bankruptcy protection.

December 2003: Parmalat’s founder and CEO, Calisto Tanzi, was arrested.

1994: Rover Group was acquired by BMW, a German automaker, who made unfavorable decisions.

2000: BMW sold the Rover Group to the Phoenix Consortium, a group of British businessmen, for a nominal fee of £10.

2005: The MG Rover Group (as it was known by then) collapsed.

Mid-1990s: Siemens AG began systematic efforts to falsify its corporate books and records.

2005: German prosecutors opened the Siemens case.

2008: Siemens agreed to pay $800 million to settle a U.S. investigation of allegations.

2009–2011: Spanair experienced financial difficulties, leading to losses and efforts to secure additional funding.

January 2012: Spanair abruptly ceased operations and canceled all flights.

Late 2000s: Nokia’s dominance in the mobile phone industry began to erode as smartphones gained popularity.

2011: Nokia reported massive losses and announced significant job cuts and restructuring efforts.

2013: Microsoft announced its acquisition of Nokia’s Devices and Services division, effectively ending Nokia’s role as a mobile phone manufacturer.

March 2017: Banco Popular’s crisis unfolded when an internal audit at the bank uncovered financial irregularities totaling hundreds of millions of euros.

June 2017: Banco Santander announced its acquisition of Banco Popular for a symbolic price of one euro, with the condition that Santander would raise €7 billion in capital to strengthen the bank’s financial position.

2018: Thomas Cook Group began experiencing financial difficulties due to various factors, including high debt and changing consumer behavior.

2019: Thomas Cook Group announced a loss of £1.5 billion and started a strategic review of its airline division; five months later, Thomas Cook Group collapsed.

2018: The internal legal team of Wirecard’s Singapore office began the first investigations into three members of the finance team.

June 2020: Wirecard admitted that €1.9 billion, which was supposedly held in trustee accounts in the Philippines, likely did not exist.

June 2020: Wirecard filed for insolvency, acknowledging a €1.3 billion financial hole in its balance sheet.

2015–2016: Abengoa’s financial troubles became apparent as the company faced mounting debt and liquidity challenges.

November 2015: Abengoa filed for preliminary creditor protection in Spain – one of the largest insolvency proceedings in Spain’s history.

2021: The company’s crisis broadened as it sought to finalize its restructuring plan.

November 2004: CAO announced a massive trading loss of approximately $550 million due to speculative trading in oil futures.

December 2004: CAO filed for bankruptcy protection as a result of its trading losses, becoming one of the largest bankruptcies in Singapore’s history.

2008: PT Bank Century’s crisis began, amidst the global financial crisis (which originated in the United States), as it experienced liquidity problems and concerns about its solvency.

December 2008: The government of Indonesia announced a bailout plan for PT Bank Century.

December 2009: A parliamentary inquiry into the Bank Century bailout led to the resignation of Minister of Finance Sri Mulyani Indrawati.

2009: The crisis for SsangYong Motor Company began in earnest in 2009.

April 2009: The company declared bankruptcy and filed for court receivership after experiencing severe financial difficulties.

October 2011: Mahindra & Mahindra Ltd., an Indian automotive manufacturer, acquired a majority stake in SsangYong Motor Company.

August 2012: AirAsia Japan commenced its operations, aiming to tap into the low-cost carrier market in Japan.

June 2013: AirAsia Japan faced significant financial and operational challenges.

October 2013: AirAsia Japan announced the suspension of all flights and its withdrawal from the Japanese market.

August 2016: Hanjin Shipping filed for court receivership in South Korea, seeking protection from creditors as it faced insurmountable financial difficulties.

September 2016: Ports around the world began refusing to load or unload Hanjin’s containers, causing massive disruptions in global supply chains.

February 2017: Hanjin Shipping was declared bankrupt by a South Korean court.

January 2010: Toyota announced a recall of approximately 2.3 million vehicles in the United States to address concerns related to unintended acceleration.

June 2010: Toyota appointed a new quality control officer and announced plans to improve its quality control and address safety concerns

Throughout 2010: The crisis escalated as Toyota announced a global recall of nearly 8.5 million vehicles to resolve unintended acceleration and other safety issues.

2011: The crisis for LDK Solar began to manifest, with global oversupply led to falling solar panel prices, which eroded profit margins.

2014: LDK Solar went into a deep financial crisis.

2015: LDK solar declared bankruptcy.

2008–2009: Kingfisher Airlines faced its first financial difficulties, primarily due to the global economic downturn and high operating costs

2013: The Directorate General of Civil Aviation (DGCA) suspended Kingfisher Airlines’ flying license, grounding the airline.

2008: The crisis at Satyam, caused by financial problems, began to unfold.

January 2009: Satyam’s founder and then-chairman, Ramalinga Raju, admitted to massive financial fraud.

April 2009: Tech Mahindra emerged as the highest bidder for acquiring a controlling stake in Satyam to restore stability to the company.

Late 2010s: Jet Airways faced mounting financial challenges, including a substantial debt burden.

June 2019: Jet Airways was officially grounded as the State Bank of India (SBI) initiated bankruptcy proceedings; the pandemic further exacerbated these troubles.

2021: The National Company Law Tribunal (NCLT) approved a resolution plan submitted by a consortium of creditors, enabling the airline’s revival.