Asia Pacific

Australia’s ailing car industry has taken another blow, with Albury manufacturer Drivetrain International Systems falling into receivership with debts of $30 million to $40 million, SmartCompany.com.au reported. Production has been suspended for a week, with the company’s 400 workers stood down. Receivers and manager Stephen Longley from PricewaterhouseCooopers will assess the company’s financial position and attempt to sell the business as a going concern. Production is expected to resume next week in a reduced form.

Pakistan will seek an additional $4.5 billion loan from the International Monetary Fund in April to accelerate the pace of economic growth and shore-up foreign exchange reserves, Shaukat Tarin, the economic advisor to country's prime minister, said. The South Asian nation, which was on the brink of an economic collapse after the balance-of-payments deficit widened to a record level, received $3.1 billion from the IMF in November as the first tranche of its planned $7.6 billion rescue package, The Wall Street Journal reported.

The Bombay High Court has rejected an application made by IDBI Bank and ICICI Bank seeking appointment of a court receiver to oversee the administration of Maytas Infra, India Infoline reported. The report stated that Maytas is carrying out 62 infrastructure projects and has Rs40.45 billion debt outstanding, in term loans and working capital facilities from various banks. Maytas' financial health and its ability to complete the ongoing projects is crucial for the banks, report adds. On February 9, a HC judge had refused to grant ad-interim relief sought by the two banks.

Sanlu Group, the dairy firm at the heart of China's huge contaminated milk scandal, has been formally declared bankrupt, state media reported Thursday, citing a local court. Xinhua news agency said a court in the northern city of Shijiazhuang, where Sanlu is based, had accepted the company's bankruptcy filing as it faced 1.1 billion yuan (161 million dollars) of debt, Agence France-Presse reported. "The Shijiazhuang city intermediate court has formally declared Sanlu Group bankrupt," Xinhua said.

Australia’s A$42 billion ($28 billion) stimulus package may keep the nation from sliding into its first recession since 1991 by stoking consumer spending and building schools, roads and hospitals, Bloomberg reported. The Treasury department forecasts Prime Minister Kevin Rudd’s stimulus plan will help Australia defy a global recession by creating 90,000 jobs and boosting consumer spending. Almost one third of the package includes cash handouts of as much as A$900 to low and middle-income earners.

Pioneer Corp., the electronics maker that’s forecasting its fifth year of losses, fell to the lowest in more than 34 years in Tokyo trading after the company projected a record full-year deficit as sales slumped. Pioneer lost 20 percent to close at 142 yen on the Tokyo Stock Exchange, its lowest since at least September 1974, according to data compiled by Bloomberg. The benchmark Nikkei 225 Stock Average gained 1 percent. Nomura Holdings Inc. withdrew its rating on the stock, saying there is “no sign” Pioneer can make a profit.

A subcontractor that supplied Ssangyong Motor with parts for all car models has gone belly up, raising a red flag for the recovery of the automaker, The Chosun Ilbo reported. Representatives of an association of about 250 Ssangyong subcontractors asked the automaker's court receivers for emergency funds in a meeting at Posteel Tower building in Seoul on Wednesday. Ssangyong is receiving components again after moving the parts production machine operated by the supplier that went bankrupt the previous day to another subcontractor.

Australian consumers grew more pessimistic in February despite aggressive stimulus measures implemented to stave off recession and arrest rising unemployment, The Wall Street Journal reported. Consumer sentiment in Australia fell 4.6% in February from the prior month, according to an index released Wednesday by Westpac Banking Corp. and the Melbourne Institute. The consumer sentiment index fell to 85.8 points in February in seasonally adjusted terms from 89.9 points in January.

Flash memory maker Spansion Japan filed for protection from creditors to give it time to restructure its operations, parent company Spansion said Monday. It's the second major event in a bid for survival on the part of the parent company, Network World reported. Spansion's former president and CEO Bertrand Cambou resigned last week as the company sought a possible sale or merger to raise funds to pay off the interest on debt that has come due.

Ssangyong Motor Co., South Korea’s smallest carmaker, was placed in bankruptcy protection after vehicles sales tumbled 30 percent last year, Bloomberg reported. Park Young Tae, Ssangyong’s current financial director, and Lee Yoo Il, a former Hyundai Motor Co. president, will act as receivership managers, the Seoul Central District Court said in a faxed statement today. The court could still seek liquidation if the managers’ turnaround plan is deemed unviable.