South Korean banks have selected 65 companies to undergo a restructuring program - a majority of which will receive support from creditors to normalize operations - as the government pushes the banks to weed out weak businesses that could threaten the economy, Dow Jones Daily Bankruptcy Review reported. The Financial Services Commission and the Financial Supervisory Service said in a joint statement Friday that of the 65 companies, 16 are in the construction sector, three in the shipbuilding sector and one in the shipping sector.

Dubai International Capital, a heavily-indebted investment arm of the emirate’s ruler, has dismissed speculation about a fire sale of assets by promising to keep its five majority-owned companies in Europe for at least two more years, the Financial Times reported. In a letter to the senior managers of its portfolio companies, DIC said it had already spent $300m on supporting its troubled investments, such as the UK hotel chain Travelodge and German industrial groups Almatis and Mauser.

Debt-ridden Japan Airlines Corp plans to cut 1,886 contract and temporary workers, as part of the larger jobs cut announced in April, the Nikkei business daily reported. JAL, which plans to axe 16,000 jobs and stop 45 domestic and international flights, will not renew contracts of the workers, mostly in sales, maintenance and flight attendant positions, the paper said. The airline, which seeks 4,339 volunteers for early retirement across the globe, will lay off another 785 employees on airport duties, the paper said.

Queensland sorghum growers have expressed relief at news the Dalby Bio-refinery will continue to operate, despite it being placed into the control of receivers last Friday. The Bio-refinery, Australia's first grains to ethanol refinery, was placed into voluntary administration last Friday with debts of $80 million, Queensland Country Life reported. Receiver managers Ernst and Young have indicated the plant will continue to trade as normal as assessments are made about the viability of the existing business and whether it will be prepared for sale.

More companies associated with Christchurch property developer Dave Henderson were placed into receivership Friday, TVNZ reported. The companies were Livingspace Properties Ltd, Castle Street Ventures Ltd, Tay Ventures Ltd, RFD Investments Ltd and 92 Lichfield Ltd. The receivers are Tim Downes, Simon Thorn and Dave Ruscoe of Grant Thornton New Zealand. Livingspace Properties operates apartments in Dunedin, Invercargill and Christchurch. The receivers intend to continue to operate the Livingspace businesses and honour bookings.

China moved unexpectedly over the weekend to make its exchange rate more flexible, but quickly damped the idea that the move would trigger a dramatic revaluation of the yuan by saying it would make the adjustment "gradually,” The Wall Street Journal reported. The decision by the world's third-largest economy follows heavy pressure by the U.S. and other members of the Group of 20 major economies. It could eventually boost the spending power of China's own consumers, easing the strains with other nations caused by its long reliance on cheap exports.

Russian state-owned bank Sberbank is seeking a seat on the board of failed Kazakh bank BTA, the head of Kazakhstan's national welfare fund, Kairat Kelimbetov, said on Friday. "The talks are only with Sberbank," Kelimbetov, who also has a seat on Sberbank's supervisory board, told Reuters. "We are formulating a plan for the next 2-3 years." The welfare fund owns BTA. Sberbank has been in talks to take over the bankrupt Kazakh lender, one of the largest in the oil rich central Asian state. If it takes a board seat it would likely signal the takeover is ready to proceed.

Japan’s ruling Democratic party on Thursday made fiscal consolidation a centrepiece of its latest election manifesto, with Naoto Kan, prime minister, signalling a possible doubling of the 5 per cent consumption tax, the Financial Times reported. The moves underscored Mr Kan's determination to make reining in state debt a top government priority, a policy stance that is winning his new DPJ administration friends among business groups.

Christchurch developer Dave Henderson has lost control of Hotel So after South Canterbury Finance (SCF) placed three of his companies into receivership, The Press reported. SCF appointed receivers to Cashel Ventures, Hotel So Operations and Hotel So Corporation, which respectively own and operate Henderson's 283-room hotel on Cashel St. Henderson is the sole director of all three companies, with his flagship company, Property Ventures, owning two and Henderson indirectly owning the third.

New investors may be asked to submit bids for the control of financially-stricken southern Queensland border irrigation giant, Cubbie Station, Stock & Land reported. A creditors meeting in South West Queensland at St George this week failed to give the green light to either of the two foreign parties currently vying for control of debt-burdened Cubbie, which farms 93,000 hectares on the Lower Balonne floodplain.