Ferrier Hodgson, the administrators of Whitcoulls' previous owners, REDgroup Retail, have proposed that its unsecured New Zealand creditors be paid out at 3c in the dollar, The New Zealand Herald reported. The proposal, or deed of company arrangement (DOCA), will be put to creditors at a so-called "'watershed" meeting set down for Thursday. "Based on our investigations, we do not believe that any dividend would be payable to unsecured creditors in any of the companies should they be placed in liquidation," said Ryan Eagle, administrator and Ferrier Hodgson partner.

The Bank of Cyprus on Monday urged the government to take immediate action to prevent the country from becoming the fourth euro-zone member to seek a bailout from the European Union, The Wall Street Journal reported. The call from the commercial bank—the island's largest financial institution—comes as discussions among Cypriot lawmakers on spending cuts appear increasingly strained. "There is no more time left," the bank said in a statement. "We are at a crucial crossroad where we will be judged by history.

The National Financial Monitoring Committee President has emphasized the need to restructure Vietnam’s commercial banking system if the country did not want to lag behind the rest of the world, VOV News reported. Vu Viet Ngoan told reporters on the sidelines of the ongoing National Assembly meeting in Hanoi that Vietnam’s financial system was rated as “weak” in the pre-crisis period and that the world was now rushing to restructure the global financial system in order to increase working capacity and reduce risk.

Chinese banks can withstand a 50% decline in property prices, the chairman of the country's banking regulator said, citing the results of the latest stress tests, The Wall Street Journal reported. Liu Mingkang told state-run China Central Television on Friday that the tests aren't a reflection of the regulator's view on China's property market, but they show banks will be able to press ahead with curbs on credit to the property sector.

Blue Star Print Group's board has reiterated that if proposed restructuring, including a haircut for bondholders, is not accepted banks will likely call in receivers, The National Business Review reported. The warning, in a statement from the group's board, said "if Bondholders reject the offer, it would likely result in a complete loss of principal." "The Board's expectation is that, following a no vote, Blue Star's banks will immediately move to protect their interests, likely through the appointment of a receiver ...

Korean policymakers are at a loss. For seven months they chucked everything plus the kitchen sink at the beast of inflation, only to be kicked in the teeth by alarming consumer price index (CPI) figures that underscored the futility of their efforts, The Korea Times reported. Breathing heavily on the ropes, government officials are desperately scrambling for more options to fight back against higher prices. But it’s unclear whether there is anything left to do when their actions are beginning to test the limits of political and economic acceptability.

Investors are worried about the health of China's banks. They're afraid—with good reason—that the massive, state-directed lending binge that was instrumental in pumping up China's GDP figures the past two and a half years will end up producing an equally massive pile of bad debt, The Wall Street Journal reported in a commentary. Barely a week goes by without new word of a troubled project or impending default. Never fear, say the banks and some analysts.

Cyprus's government agreed on a series of austerity measures, seeking to avoid a bailout after a blast at its largest power station this month has led to rolling blackouts, compounding its existing economic problems, such as its close ties with Greece, The Wall Street Journal reported. The country was already wrestling with modest growth and possible contagion from Greece, which received a second euro-zone bailout Thursday, when a blast July 11 reduced Vasilikos, the island nation's largest power plant, to twisted metal and rubble.

A Japanese court on Friday approved a rehabilitation plan for failed consumer lender Takefuji, allowing the company to tie up with Korean consumer lender A&P Financial, according to Takefuji's website, Reuters reported. The plan, submitted by Takefuji's court-appointed trustee, was preferred to two competing schemes put forward by creditor groups. It faced opposition from creditors because of its structure, in which 1.5 trillion yen ($19 billion) of debt is held by 900,000 creditors who are either debt holders or customers asking for refunds of overcharged interest payments.

Queensland property franchise Go Gecko has been placed into voluntary administration, but the company says its franchisees will be unaffected by the move, StartupSmart reported. Go Gecko was founded in 2006 by Geoff Doyle and operates more than 50 outlets across the country, describing itself as the “pioneers of capped commission real estate”. It’s been revealed the Brisbane-based company called in administrators on Tuesday, highlighting the tough conditions plaguing the property market.