Headlines

Germany's insistence that Ireland, Greece and the euro zone's other fiscally feeble members adopt punishing austerity regimes has fueled concern across Europe that the bloc's biggest member is souring on the euro. But Sunday's agreement among euro-zone leaders to establish a permanent rescue facility for overly indebted members suggests that rather than turning its back on the euro, Germany is doubling its bets, The Wall Street Journal reported. Put simply, Chancellor Angela Merkel and her allies have concluded that the euro is essential for Germany's continued prosperity.

The developer Al Murjan's move to file for bankruptcy will set important precedents in the UAE, in a case that will be closely watched by thousands of investors in uncompleted projects, The National reported. The court's decisions in the case could create a framework for what investors and other creditors can expect if other property developers go under. Although there are federal laws covering bankruptcy, legal experts say they have almost never been tested.

Japan Airlines Corp. said Tuesday that a court had approved its restructuring plans—more than 10 months after the struggling airline filed for Japan's biggest-ever nonfinancial bankruptcy protection, The Wall Street Journal reported. JAL will now move to implement steps toward its lofty goal of posting its highest-ever operating profit within three years as set under the restructuring plan. "We are grateful to be given the opportunity to rehabilitate," said JAL President Masaru Onishi, apologizing to investors for the inconveniences of bankruptcy and share delisting.

A committee of Canada's Senate on Thursday killed a proposed law aimed at preventing long-term disabled workers from being treated as unsecured creditors in bankruptcy proceedings, Dow Jones Daily Bankruptcy Review reported. Bill S-216, as it is known, which moves the disabled up the queue to preferred creditor status, is meant to help disabled Nortel Networks Corp. employees who will lose their benefits at year's end because of a court-approved former employees' settlement earlier this year.

Spain faces a problem as empty homes left over from the housing boom go up for sale: determining just how much the properties are worth, The Wall Street Journal reported. Analysts, property-sales representatives and economists said data coming from the government and even some large appraisal companies understate the drop in real-estate prices. That is causing confusion and scaring off some investors who could help banks clear their backlog of homes. The discrepancies are owed, in part, to a quirk in how some Spanish home-price data are calculated.

A second bondholder group has claimed to hold a stake sufficient to block part of Anglo Irish Bank’s efforts to bolster its capital – raising the prospect of the bank’s restructuring being delayed. The bank’s battle with its bondholders is being closely watched for what it might imply for Ireland’s ability to inflict losses on junior creditors in its ailing banking sector. Anglo Irish has offered its junior, or subordinated, noteholders just 20 per cent of the face value of their holdings.

Two banks have appointed receivers to insolvent building company, Pierse Contracting, to protect their secured debts, the Irish Times reported. Simon Coyle of Mazars is investigating Pierse group’s trading activities on the instruction of the High Court, which appointed him as liquidator to Pierse Contracting and a related firm, Pierse Building Services, earlier this month. Pierse Contracting has a deficit of €212 million and owes its unsecured creditors, largely made up of subcontractors and suppliers, more than €50 million.

Stricken British subprime lender Cattles is trying to cement a so far elusive debt deal with its creditors in the next week to avoid administration, sources close to the matter said on Friday, Reuters reported. Cattles will need support from enough bondholders -- who will recover only a small portion of their investment -- to keep afloat, as months of restructuring talks come to a head. Should that fail, the Hull-based firm will likely call in administrators, three sources said, putting about 3,000 jobs at risk.

Fighting to prevent an accelerating debt crisis from engulfing Portugal and Spain, Europe’s finance ministers approved an 85 billion euro bailout package for Ireland, while also agreeing for the first time to hold private investors accountable for losses in future crises, beginning in 2013, the International Herald Tribune reported.

The European emergency fund, promoted as having the financial firepower to douse a financial crisis in the euro zone, may not even have enough money to cover a bailout of Spain, Dow Jones Daily Bankruptcy Review reported. "[The fund] will be very close to the line, it will be precarious and it won't leave anything for anybody else," said Whitney Debevoise, a sovereign-debt lawyer with Arnold Porter and former World Bank executive director.