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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Anglo American plans to break itself up as the embattled mining group tries to win over shareholders following its rejection of a £34bn takeover bid from rival BHP.

In a series of sweeping changes to the 107-year-old mining company, Anglo said on Tuesday that it would sell or demerge its De Beers diamond business, its South African-based Anglo American Platinum operation as well as its coking coal assets.

London-listed Anglo will instead focus on its copper, iron ore and crop nutrients businesses. BHP, the world’s biggest miner, has set its sights on securing Anglo’s copper business, which is expected to boom as the world decarbonises.

Since rebuffing two approaches from BHP, Anglo’s chief executive Duncan Wanblad has been under intense pressure to set out the group’s future as a standalone group.

Laying out the proposed changes, Wanblad said: “These actions represent the most radical changes to Anglo American in decades.” They will result in “a radically simpler business [that] will deliver sustainable incremental value creation”.

Anglo said it would also pull back on spending on Woodsmith, a flagship project in the UK designed to create a vast underground mine producing a yet-unproven fertiliser. Instead of spending $1bn a year to build the mine by 2027, only $200mn will be spent next year and nothing in 2026.

Shares in Anglo fell 0.5 per cent to £27.03 in early trading on Tuesday. BHP’s improved offer valued Anglo at £27.53, up from approximately £25 in its original bid.

Anglo shareholders have predicted that the group would struggle to sustain its current structure. They have long complained that the value of Anglo’s coveted copper mines in Latin America has been obscured by its other lacklustre operations, particularly its platinum and diamond divisions.

As part of its bids, BHP has a provision requiring Anglo to spin off its two Johannesburg-listed subsidiaries, Anglo American Platinum and iron ore miner Kumba.

Following Anglo’s announcement on Tuesday, shares in Anglo American Platinum, which produces a range of metals in South Africa, fell 7 per cent. Anglo intends to keep Kumba Iron Ore as part of a “premium” iron ore division that would also include its Minas Rio mine in Brazil.

Alongside dismantling the structure it has maintained for years, Anglo also vowed to cut a further $800mn of costs annually on top of $1bn already earmarked.

Anglo provided few details on where the cost savings would come from, saying it would “need to consider its global workforce arrangements to realise the opportunities for its employees and to ensure delivery of the accelerated strategy”.

Explosive charges are detonated to bring down sections of the collapsed Francis Scott Key Bridge resting on the container ship Dali on Monday in Baltimore.

Mark Schiefelbein/AP

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Mark Schiefelbein/AP

Explosive charges are detonated to bring down sections of the collapsed Francis Scott Key Bridge resting on the container ship Dali on Monday in Baltimore.

Mark Schiefelbein/AP

BALTIMORE — Crews set off a chain of carefully placed explosives Monday to break down the largest remaining span of the collapsed Francis Scott Key Bridge in Baltimore, and with a boom and a splash, the mangled steel trusses came crashing down into the river below.

The explosives flashed orange and let off plumes of black smoke upon detonation. The longest trusses toppled away from the grounded Dali container ship and slid off its bow, sending a wall of water splashing back toward the ship.

It marked a major step in freeing the Dali, which has been stuck among the wreckage since it lost power and crashed into one of the bridge’s support columns shortly after leaving Baltimore on March 26.

The collapse killed six construction workers and halted most maritime traffic through Baltimore’s busy port. The controlled demolition will allow the Dali to be refloated and restore traffic through the port, which will provide relief for thousands of longshoremen, truckers and small business owners who have seen their jobs impacted by the closure.

Officials said the detonation went as planned. They said the next step in the dynamic cleanup process is to assess the few remaining trusses on the Dali’s bow and make sure none of the underwater wreckage is preventing the ship from being refloated and moved.

“It’s a lot like peeling back an onion,” said Lt. Gen. Scott Spellmon of the U.S. Army Corps of Engineers.

Officials expect to refloat the ship within the next few days. Then three or four tugboats will guide it to a nearby terminal at the port. It will likely remain there for a several weeks and undergo temporary repairs before being moved to a shipyard for more substantial repairs.

“This was a very big milestone for our progression forward,” Col. Estee Pinchasin, Baltimore District Commander for the Army Corps of Engineers, said in the immediate aftermath of the demolition. She said crews don’t anticipate having to use any more explosives.

The Dali’s crew remained on board the ship during the detonation, and no injuries or problems were reported, said Capt. David O’Connell, commander of the Port of Baltimore.

The crew members haven’t been allowed to leave the grounded vessel since the disaster. Officials said they’ve been busy maintaining the ship and assisting investigators. Of the crew members, 20 are from India and one is Sri Lankan.

Explosive charges are detonated to bring down sections of the collapsed Francis Scott Key Bridge resting on the container ship Dali on Monday in Baltimore.

Mark Schiefelbein/AP

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Mark Schiefelbein/AP

Explosive charges are detonated to bring down sections of the collapsed Francis Scott Key Bridge resting on the container ship Dali on Monday in Baltimore.

Mark Schiefelbein/AP

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Engineers spent weeks preparing to use explosives to break down the span, which was an estimated 500 feet (152 meters) long and weighs up to 600 tons (544 metric tons). The demolition was postponed Sunday because of thunderstorms.

“This is a best practice,” Gov. Wes Moore said at a news conference Monday, noting that there have been no injuries during the cleanup to date. “Safety in this operation is our top priority.”

Fire teams were stationed in the area during the explosion in case of any problematic flying sparks, officials said.

In a videographic released this week, authorities said engineers were using precision cuts to control how the trusses break down. They said the method allows for “surgical precision” and is one of the safest and most efficient ways to remove steel under a high level of tension. Hydraulic grabbers will now lift the broken sections of steel onto barges.

The National Transportation Safety Board and the FBI are conducting investigations into the bridge collapse. Officials have said the safety board investigation will focus on the ship’s electrical system.

Danish shipping giant Maersk had chartered the Dali for a planned trip from Baltimore to Sri Lanka, but the ship didn’t get far. Its crew sent a mayday call saying they had lost power and had no control of the steering system. Minutes later, the ship rammed into the bridge.

State and federal officials have commended the salvage crews and other members of the cleanup operation who helped recover the remains of the six construction workers. The last body was recovered from the underwater wreckage last week. All of the victims were Latino immigrants who came to the U.S. for job opportunities. They were filling potholes on an overnight shift when the bridge was destroyed.

Officials said the operation remains on track to reopen the port’s 50-foot (15-meter) deep draft channel by the end of May. Until then, crews have established a temporary channel that’s slightly shallower. Officials said 365 commercial vessels have passed through the port in recent weeks. The port normally processes more cars and farm equipment than any other in the country.

Former House Speaker Nancy Pelosi, a Baltimore native whose father and brother served as mayor decades ago, compared the Key Bridge disaster to the overnight bombardment of Baltimore’s Fort McHenry, which long ago inspired Francis Scott Key to write “The Star-Spangled Banner” during the War of 1812. She said both are a testament to Maryland’s resilience.

Pelosi, a Democrat who represents California’s 11th district, attended Monday’s news conference with two of her relatives. She praised the collective response to the tragedy as various government agencies have come together, working quickly without sacrificing safety.

“Proof through the night that our flag was still there,” she said. “That’s Baltimore strong.”

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

In January, journalists, corporate consultants and restructuring specialists filled up a Hong Kong courtroom in a rare scene to attend Evergrande’s winding-up hearing where judge Linda Chan declared “enough is enough” and handed down a liquidation order.

The landmark case involving China’s once-biggest property developer by sales with more than $300bn in liabilities has put the territory’s legal framework for resolving debt problems back in the spotlight. More than 20 Chinese developers have been slapped with winding-up petitions in Hong Kong since China’s real estate crisis began in 2021, with at least five being ordered to be wound up by a Hong Kong judge.

This is not a great result for any of the parties involved. Often described as a “nuclear option” and a lose-lose scenario by lawyers, these winding-up court proceedings leave creditors with little to no return. And proceedings can drag out for many months.

Lawyers and restructuring specialists say Hong Kong’s legal framework for other debt restructuring options is lacking compared with financial jurisdictions such as London, New York and Singapore.

A restructuring bill to remedy this has been in discussion for more than 20 years in the Asian financial hub but other legislative priorities have taken precedence amid a lack of consensus on what it should contain. The last push to introduce one came in 2020 when a draft legislative proposal was made as the Covid-19 pandemic struck.

The Hong Kong government carried out a consultation but later put the plan again on hold. Although it said it would continue to consult stakeholders to refine the legislative proposals, there does not appear to be a timeframe for that.

Lawyers said there was a pressing need to raise the proposal back up the agenda, particularly as offshore creditors increasingly use Hong Kong courts to force distressed Chinese developers into speeding up their restructuring plans.

Chinese developers have defaulted on a massive $115bn of $175bn in outstanding offshore dollar bonds since 2021, according to Bloomberg data. And property developer Shimao last month became one of the latest to face a winding-up petition, unusually from a Chinese state-backed bank. Country Garden, which defaulted in October, received a winding-up petition in February involving more than $200mn worth of debt.

A key element of a restructuring bill is that after the appointment of a supervisor for a debt restructuring, a statutory moratorium would be imposed to halt parties from rushing off to court and asking for a winding up.

Under the current legal system in Hong Kong, creditors are free to go after distressed companies by filing wind-up petitions before a scheme of arrangement for a restructuring is agreed and then approved by a court, according to Jamie Stranger, a Hong Kong-based partner at Stephenson Harwood.

Law firm Herbert Smith Freehills says this gives “dissenting creditors significant leverage to hold the company and other consenting creditors to ransom and otherwise encourages ‘rogue’ behaviour by them, which in turn jeopardises the restructuring efforts”. It adds: “This often leads to a worse outcome for all interested parties where there is a genuine prospect that the restructured business would be able to trade out of its difficulties.”

One problem is to what extent would a restructuring bill cover mainland Chinese assets. Under the existing winding-up process in Hong Kong, it is very unlikely for offshore creditors to get back any onshore mainland assets. This is despite a “mutual recognition agreement” on insolvency and restructuring rolled out in 2021 that applies in some parts of mainland China. Offshore creditors remain typically subordinated to onshore stakeholders, lawyers say.

A bill “would need to interface with the mainland laws and provide some ability for a provisional supervisor to be recognised and assisted in the mainland”, Jonathan Leitch, a Hong Kong-based partner at Hogan Lovells, told me. Otherwise, the roles of a Hong Kong-based provisional supervisor in most cases “would be severely hampered”.

Lance Jiang, a partner in restructuring and insolvency at law firm Ashurst, says: “Most practitioners would like to have the new restructuring bill, because it definitely mitigates the gap between Hong Kong and other international centres and would give the companies and also the creditors side with more options to do consensual restructuring.”

“It’s Hong Kong, you know, the legislative council can do it quickly, efficiently,” says Jiang, adding that this would benefit everyone in the market.

thomas.chan@ft.com