Headlines

Fashion chain Jean Jones has gone into receivership, with the loss of four stores, The New Zealand Herald reported. The remaining 14 stores will continue to operate while receivers Deloitte, who took control of the company last Thursday, found a buyer for the chain. Spokesperson Mike Horne said that while the receivers were still reviewing the company's position, it appeared the basic business model was viable and its problems were primarily caused by factors outside the business.

Listed franchise brand manager Allied Brands has lost its battle for survival, with the company placed in voluntary administration this morning. However, chief executive Sean Corbin has told SmartCompany.com.au that all current franchisees will remain open for business, and have stock to continue trading, while the administrator sorts out the next steps for the group. Peter Dinoris and Peter Biazos of Vincents Chartered Accountants have been appointed as joint administrators, although Corbin says that not all of the company’s subsidiaries have been placed in administration at this stage.

When Anglo Irish Bank announced a long-awaited exchange offer for its junior debt last week, there was shock in the market at the harshness of the terms. There were also howls of protest privately from the debtholders themselves to the advisers of Anglo Irish, the institution bailed out nearly two years ago by Ireland’s government after being hit hard by the country’s property slump, the Financial Times reported. One irate investor described the offer as equivalent to a North Korean election.

Anglo Irish Bank’s former chief executive David Drumm has until Friday next to file a statement of his assets and liabilities in his bankruptcy proceedings in the US, the Commercial Court in Dublin heard yesterday, The Irish Times reported. Mr Justice Peter Kelly adjourned Anglo’s actions against Mr Drumm and his wife as a result of Mr Drumm’s unexpected decision earlier this month to file for voluntary bankruptcy in the US.

Dubai World has succeeded in securing 100 per cent support for its $25bn restructuring after the only creditor that had not agreed to the plan was bought out, according to people familiar with the situation, the Financial Times reported. Aurelius Capital Management, a US distressed debt fund, has sold $5m – a tiny proportion of Dubai World’s outstanding liabilities – to Deutsche Bank, according to one of the people. Deutsche Bank and Aurelius declined to comment.

Honsel AG, a car-industry supplier based in the central German city of Meschede, filed Monday for insolvency, court officials in the nearby town of Arnsberg said, Monsters and Critics reported. Honsel casts aluminium alloy engine blocks, engine heads, gearbox cases and body parts for big car manufacturers. According to its website, it also owns factories in France, Spain, Brazil and Mexico. No immediate comment could be obtained from the company itself. The website said it had a global workforce of 3,800 and annual sales of 540 million euros (760 million dollars).

Ten million dollars' worth of trade with the Chatham Islands could be lost following the receivership of a Timaru shipping company, Stuff.co.nz reported on a Taranaki Daily News story. Black Robin Freighters went into receivership last week with BDO Christchurch notifying the receivership on Saturday. In August Black Robin Freighters director Kelvyn Leslie raised concerns there would not be enough business to support two shipping services, after Auckland-based 44 South Shipping launched a twice-monthly service to the Chathams.

Spain's banks are selling valuable branches and seeking government help to find renters for foreclosed homes as they try to prop up their bottom lines amid continuing trauma in their deteriorating loan portfolios and other problems, The Wall Street Journal reported. With profit margins tumbling, Spanish banks of all sizes—from big Banco Bilbao Vizcaya Argentaria SA to smaller regional savings banks known as cajas—are taking such steps as they feel a squeeze from high funding costs and other ills.

The muddy big 1.33-hectare hole that is the failed $250 million Soho Square development in Auckland's Ponsonby could soon be alive with construction crews, with first mortgagee United States hedge fund Fortress cleared by the High Court to buy the site, Stuff.co.nz reported on a Dominion Post story.

Anglo Irish Bank’s offer to swap its subordinated debt for new bonds is “tantamount to a default” because of the penalties inflicted on investors who refuse to take part, according to the Canadian credit ratings agency, DBRS, The Irish Times reported. The bank’s non-senior ratings will be reduced by one notch step to D for “Default” after Anglo completes the exchange, the Toronto-based agency said. The nationalised bank is offering investors 20 cents on the euro in new bonds on dated subordinated debt and 1 cent for every €1,000 face amount for those declining to take part.