Headlines

Aveos's airframe division will be broken up and sold to six different buyers for C$10.8 million ($10.53 million) after a court-appointed monitor was unable to find a purchaser willing to buy the unit of the bankrupt aircraft maintenance company as a going concern, Reuters reported. Aveos Fleet Performance Inc, once Air Canada's maintenance division, halted operations in March and laid off roughly 2,600 workers, most of whom were employed at maintenance centers in Montreal, Winnipeg and Vancouver. Aveos is seeking to sell its engine, component and airframe segments independently.

Herman Van Rompuy, president of the European Council, on Tuesday published a significantly scaled-back version of the highly anticipated plan for the future of the eurozone to be debated at a summit meeting this week, the Financial Times reported. The seven-page plan, which calls for progress towards commonly issued eurozone bonds and the eventual establishment of central EU treasury, is less ambitious and less detailed than earlier drafts, including a 10-page version circulated as recently as Monday.

The Cabinet has today approved the publication of the massive Personal Insolvency Bill that will be published on Friday, the Irish Times reported. Taoiseach Enda Kenny and Tánaiste Eamon Gilmore held a press conference this afternoon disclosing some details of the 200-page document and also announcing a meeting with the main banks tonight on the legislation. Mr Kenny said the legislation when published would give a clear incentive for the banks to sit down with borrowers and work out bilateral agreements for the first time.

Credit Agricole said it would make almost 1.9 billion euros ($2.37 billion) available to French local governments with the help of its insurance arm, which will finance most of the loans through investment funds, Reuters reported. The 1.875 billion euros arrangement is the latest sign of how capital-starved banks are looking to do deals with insurers, many of whom are looking for new ways to invest funds after being hit with a massive drop in investment returns since 2008.

Brazil’s consumer loan default rate rose to the highest in 30 months, reinforcing concerns that households struggling with debt could further dent Brazil’s credit-driven growth model. The consumer default rate in May rose to 8 percent, from a revised 7.8 percent in April, the central bank said in a report distributed today in Brasilia. The default rate on company loans remained unchanged at 4.1 percent, Bloomberg reported.

Mexican glassmaker Vitro SAB is heading to a U.S. appeals court to save its restructuring at home from an assault by U.S. creditors in a case that could transport the U.S. bankruptcy code beyond that nation's borders, Reuters reported. The case pits one of Monterrey, Mexico's powerful and politically connected "Group of 10" businesses against U.S. hedge funds, which Latin American critics have reviled as "vultures" for their battle against Argentina's sovereign debt restructuring. Hanging in the balance is the use of Chapter 15. Foreign companies have used this 7-year-old piece of the U.S.

Struggling to figure out how to sell DVDs and CDs in a download-driven world, Toronto-based movie and music seller Cinram International Inc. has filed for bankruptcy protection while its executives move to sell its operations, Dow Jones DBR Small Cap reported. The company and several affiliates that it controls filed for Chapter 15 protection in U.S. Bankruptcy Court in Wilmington, Del., to block the consequences that it would face when its agreement with its biggest lenders expires on June 30.

The European Union would gain far-reaching powers to rewrite national budgets for eurozone countries that breach debt and deficit rules under proposals likely to be discussed at a summit this week, according to a draft report seen by the Financial Times. The proposals are part of an ambitious plan to turn the eurozone into a closer fiscal union, giving Brussels more powers to serve like a finance ministry for all 17 members of the currency union. They are contained in a report to be presented at the summit, which will also outline plans for a banking union and political union.

A fifth euro zone country turned to Brussels for emergency funding on Monday when Cyprus announced it was seeking a lifeline for its banks and its budget, hours after Spain submitted a formal request to bail out its banks, Reuters reported. Global share prices and the euro slid as investors bet that European leaders - due to meet this week for the 20th time since the currency zone's debt crisis hit Greece in 2010 - would fail to come up with radical measures to back up weak countries.

Greek Finance Minister Vassilis Rapanos has resigned for health reasons, the prime minister's office said Monday, forcing the government to scramble to find a replacement to lead efforts to renegotiate better terms for Greece's European-led bailout, The Wall Street Journal reported. Mr. Rapanos, 64 years old, has been hospitalized since Friday suffering from severe abdominal pains, and decided not to head the finance ministry as part of the coalition government that emerged from elections held earlier this month.