Asia Pacific

Mitsubishi UFJ Financial Group Inc., Japan's biggest bank by assets, said on Monday it plans to close about 50 branches and cut 1,000 jobs over the next three years as part of its ongoing effort to cut costs, The Wall Street Journal reported. The plan for its core banking unit Bank of Tokyo-Mitsubishi UFJ, includes shutting down at least 200 automatic teller machines. Firing people in Japan is extremely difficult because of tough labor laws protecting staff and public pressure on companies to preserve social stability.

Sony Corp. said it will impose a salary freeze on its full-time workers in Japan for one year to cut costs as the electronics giant braces for a massive loss amid a deepening global downturn, The Wall Street Journal reported. The salary freeze will be effective from April, and Sony's managers with non-board posts will be also take a 35% to 40% cut in their annual bonuses for the fiscal year starting next month, a Sony spokeswoman said. "Our business environment is severe.

Bankruptcy petitions in Hong Kong rose to a more than five-year high in February as the recession in the city deepened, government data showed Friday. The government said 1,500 bankruptcy petitions from individuals and non-limited firms were filed during the month, up from 1,266 in January, Dow Jones Newswires reported. February's figure was the highest since October 2003, when 1,648 bankruptcy petitions were filed as Hong Kong was recovering from the Severe Acute Respiratory Syndrome crisis. The data come amid signs of further deterioration in local economic conditions.

Six aviation companies, including General Electric Co's aviation subsidiary, have appealed to a Hubei court to declare a Chinese airline carrier bankrupt, Shanghai Daily reported. East Star Airlines, based in the capital Wuhan City of Hubei Province, owes 500 million yuan ($73.1 million) to other companies, including the six complainants, the West China City Daily reported today. East Star was told to suspend its services last Sunday because of unpaid loans.

At least 17 of the 20 major nations that vowed at a November summit to avoid protectionist steps that could spark a global trade war have violated that promise, with countries from Russia to the United States to China enacting measures aimed at limiting the flow of imported goods, according to a World Bank report unveiled yesterday. The report underscores a "worrying" trend toward protectionism as countries rush to shield their ailing domestic industries during the global economic crisis, The Washington Post reported.

Leather supplier CV Cisarua has revoked its bankruptcy litigation against local manufacturer of Adidas shoes PT Prima Inreksa Industries (PII) after reaching an amicable settlement on the latter’s outstanding debt, The Jakarta Post reported. In its press statement Tuesday, the lawyer for Cisarua, Suyud Margono, said PII had paid its US$163,046 debt to Cisarua after reaching a peaceful settlement as a result of mediation.

The Bank of Japan said it may buy subordinated loans from banks for the first time to revive lending and replenish capital depleted by falling stock prices, Bloomberg reported. The central bank is considering the purchase of up to 1 trillion yen ($10 billion) of the debt in an “exceptional” step, it said in a statement in Tokyo today. The bank concludes a two-day policy meeting tomorrow.

When economic crisis struck Asia in the late 1990s and early 2000s, international law firms with newly crippled clients in the region flew in their top restructuring specialists from the United States and Europe. This time around, though, those lawyers are much in demand at home, leaving Asian offices somewhat strapped for bankruptcy lawyers, The AmLaw Daily reported. With the economy swooning, restructuring assignments are on the rise in Asia as much as elsewhere in the world.

US-based Primus Telecommunications Group, together with three affiliated holding companies, said it was filing for Chapter 11 bankruptcy so it could undergo a restructure. The company will reduce its principal debt obligations and interest payments by more than 50 percent. The restructure will grant the company a three year extension on its debt maturities and will allow the company to continue operating as it is, The Australian reported.

Chinese Premier Wen Jiabao expressed concern over the outlook for the U.S. government debt China holds, urging Washington to take effective policies to restore the American economy to health, The Wall Street Journal reported. Speaking at his annual news conference--a rare opportunity for reporters to ask the premier questions directly--Mr. Wen voiced confidence in the Chinese government's ability to keep its own economy growing, saying it is willing to do what it takes to ensure China meets its traditional growth target of around 8% this year.