Headlines

A competing bidder has emerged for newspapers being sold by Canwest Global Communications Corp., but it is only interested in the cream of the crop, TheDeal.com reported. A trio of media executives is planning a bid for the Ottawa Citizen, Montreal Gazette and National Post, three of the leading daily newspapers owned by the bankrupt Canadian media company, according to press reports. Their selectivity may prove a problem because CanWest and its creditors have made clear that the court-monitored auction is for all or substantially all of the newspaper assets.

Mitre 10 Group says its three Wellington stores in receivership were trading profitably, but the owner's investments outside of his Mitre 10 interests were behind the collapses, The New Zealand Herald reported. The Crofton Downs, Rongotai and Tory St stores continue to trade, and the receiver is marketing them for sale individually or as a group. All Mitre 10 stores are owner-operated. The group's head office said it had been assisting the receiver with stocktaking at the affected stores.

Iceland set March 6 as the date for a referendum on passing a law seen key to restoring its financial health after the Dutch government squashed hopes of a new deal to repay the island's creditors, Reuters reported. Iceland owes Britain and the Netherlands more than $5 billion for losses related to the collapse of the North Atlantic island's banks in late 2008. But earlier this month, its president refused to sign a law setting out repayment terms, forcing a referendum on the issue and putting on hold continued international aid for Iceland's stricken economy.

The euro fell to the lowest level in five months against the dollar on concern Greece’s deteriorating finances will weigh on the region’s economic recovery, Bloomberg reported. The 16-nation currency also approached the lowest level in more than nine years against the Australian dollar on speculation European Central Bank Executive Board member Juergen Stark will reiterate his bearish outlook for the region’s economy and the budget deficit in Greece when he speaks today.

Credit Suisse Group AG said Tuesday it would slash the awards of top bankers in London, the first bank to publicly do so in response to the U.K. government's controversial tax on bonuses, The Wall Street Journal reported. The bank said its global bonus pool will be cut by 5%, and the awards for 2009 performance of some 400 managing directors in the London office will be reduced by an additional 30%, as a way to offset the new, one-time bonus tax. The move comes as international will to add taxes on banks, such as the U.K. bonus tax, gathers steam.

The creditor-led restructuring of the cash-strapped Kumho Asiana Group is getting off on the wrong foot, with disputes growing between the group, creditors and other stakeholders over how to resolve the put option deal Kumho signed with financial investors when taking over Daewoo Engineering & Construction (E&C) in 2006, The Korea Times reported.

Japan Airlines, Asia's largest carrier by revenues, has filed for protective bankruptcy, a move likely to trigger a big shake-up of Asia-Pacific passenger markets, The Australian reported. With an estimated Y860 billion ($10.25bn) net liabilities, JAL is believed to be Japan's biggest bankruptcy by a non-financial firm and follows three government bailouts in the past decade.

Japan Airlines Corp.'s stint under bankruptcy protection isn't likely to be short or simple, The Wall Street Journal reported. The carrier, known as JAL, faces massive liabilities and has a sprawling business that covers everything from jet-fuel procurement to aircraft leasing, both in Japan and overseas. The case could also raise challenging questions about whether bankruptcy protection will be recognized as it does business in other countries. JAL said Tuesday it expects its international operations to continue as normal, though some detail may need to be sorted out.

Ukraine's presidential election yesterday—which appears headed to a second round run-off on Feb. 7 between the two leading candidates, Viktor Yanukovych and Yulia Tymoshenko—unfolds against the background of financial ruin, The Wall Street Journal reported in an opinion piece. It has long been obvious that the defeat of the incumbent, Viktor Yushchenko, who has painted himself into the anti-Russian nationalist corner, would produce a political rapprochement between Ukraine and Russia. Mr. Yanukovych is committed to non-alignment (meaning no application for NATO membership) while Ms.

Proposed changes to insolvency laws will put Australia on equal footing with other countries in restructuring ailing companies, prevent higher funding costs and provide greater certainty in liquidations, according to experts, The Australian reported. Company directors will be the big winners from the proposed new laws, announced by Corporate Law Minister Chris Bowen yesterday, by protecting them from legal claims while trying to restructure a financially troubled company.