Headlines

Britain may avert the closure of the Grangemouth refinery and petrochemical plant after union leaders said on Thursday they had accepted demands from the management in an effort to save 1,400 jobs. Scottish government officials met union leaders and management at Grangemouth on Thursday in hopes of persuading the operator, Swiss-based chemicals group Ineos, to re-open the plant, the largest industrial site in Scotland and its only refinery.

Mario Draghi warned on Wednesday night that some European banks needed to fail a series of European Central Bank health checks to prove the credibility of its year-long review of the region’s biggest banks, the Financial Times reported. The blunt comments by the ECB president raised pressure on EU leaders to earmark public money that could in extreme cases be used to recapitalise struggling lenders.

European bankers could be paid bonuses of up to 250 percent of their fixed pay under a slight relaxation of tough new pay rules due to come in next year, as long as much of the sum is deferred for at least five years, Reuters reported. The European Banking Authority issued a consultation document on Wednesday detailing aspects of a "discount rate" that banks can apply under the European Union's new bonus rules. The EU plans to cap bonuses of senior staff to 100 percent of their fixed pay, or 200 percent if shareholders approve a higher payout.

South African Finance Minister Pravin Gordhan will struggle to keep government debt under control even as he pledges to stick to spending targets, Bloomberg reported. Gross debt will climb to 48 percent of gross domestic product in the year through March 2017 from an estimated 43 percent last year, the National Treasury said in its mid-term budget report released in Cape Town today. That’s mainly due to rising debt costs and tax receipts falling short of targets.

Hedge funds are circling Spanish banks, hoping to mop up bad corporate debt cheaply when the lenders finally face up to billions of euros in losses on loans to firms in trouble, Reuters reported. Spanish companies are among the most indebted in Europe, and investors say that only when this burden has eased will equity buyouts recover following the country's long recession. While Spanish banks have already been forced to grasp the nettle on property loans, they still need to tackle their distressed corporate lending.

A refrigeration installation and servicing company with the UK's leading supermarkets among its clients has gone into administration with the likelihood of imminent closure, putting more than 600 jobs at risk, The Guardian reported. WR Refrigeration, which employs more than 600 staff across the UK, suffered heavy financial losses and cash flow problems after difficult trading conditions, leading to HMRC issuing a winding-up petition this month which triggered a search for extra funding.

Scotland's economy suffered a blow on Wednesday when the owner of the Grangemouth site shut the petrochemical plant and threatened to close the adjoining refinery, putting 1,400 jobs at risk. Swiss owner Ineos halted production last week at the 210,000-barrels-per-day refinery, which provides most of Scotland's fuel, due to a labour dispute with Britain's largest union, Unite. Ineos says the site makes a loss. The decision to close the petrochemical plant comes despite the protestations of Prime Minister David Cameron, who had called on all sides to continue talks.

Fomento de Construcciones & Contratas SA is in talks with creditor banks to convert part of the Spanish infrastructure company’s loans into payment-in-kind debt, according to two people familiar with the matter, Bloomberg reported. The higher-yielding PIKs, which allow borrowers to roll up interest so that it's paid when the debt comes due, will total about 1.5 billion euros ($2.1 billion), said the people, who asked not to be identified because the negotiations are private. The Barcelona-based company is currently seeking to refinance about 5 billion euros of loans, they said.

Alitalia's main pilots' union has announced a four-hour strike for Oct. 29 to pressure management for details on how they intend to return the struggling carrier to health, the Associated Press reported. UILT secretary-general Marco Veneziano said in a statement the union could hold more strikes - up to a combined total of 48 hours - until it receives `'a credible plan" for saving Italy's flagship airline. The union rejects proposals for layoffs and demands a clear plan that includes an international partner and new management.

Solid Energy has secured its restructuring deal with most of its banks and the Government following a series of meetings today in Christchurch, The New Zealand Herald reported. The state owned coal miner said it received "majority support" from its five bank creditors and note holders at the meetings. Bank of Tokyo-Mitsubishi UFJ Ltd has not agreed to the deal, but its opposition will not stop it from going ahead. While it had the support of most of its banks, "certain of the arrangements are still subject to legal challenge" Solid Energy said.