Asia

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.
Read more
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.
Read more
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.
Read more
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.
Read more
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.
Read more
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.
Read more
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.
Read more
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.
Read more
Lehman Brothers Holdings Inc. has asked the bankruptcy court to let it retain Jones Day as special counsel to help the former financial services company with issues that have arisen in the Asia-Pacific region related to its Chapter 11 case. In a motion filed Wednesday in the U.S. Bankruptcy Court for the Southern District of New York, Lehman said the law firm would help it in Hong Kong, the Philippines, Taiwan, Japan and Australia with matters related to its bankruptcy filing.
Read more
Japanese apartment developer Japan General Estate Co said on Thursday it has filed for bankruptcy protection with debts of 197.5 billion yen ($2.2 billion), Reuters reported. Hit by a slump in sales and a credit crunch sparked by U.S. subprime loan problems, nearly 600 real estate companies collapsed in Japan in 2008 after failing to make debt repayments.
Read more