Headlines

Dubai's government announced a bankruptcy framework Monday in case Dubai World can't reach agreement with creditors to restructure $26 billion worth of the conglomerate's debts. An advisor close to the Dubai government told Zawya Dow Jones that "if they want to use it to protect the assets of the company they can." A copy of the legislation, known as the "reorganization law" will be made available Monday. Dubai World officials are due to meet creditors later this month to hammer out a six-month standstill agreement for its debts.

Dubai will adopt the insolvency code used in the Dubai International Financial Center for use in the emirate and establish a tribunal to hear cases submitted against its debt-laden holding firm Dubai World, the government said on Monday. The policy change came in the form of a decree issued by Mohammed Bin Rashid al-Maktoum, the ruler of Dubai. The DIFC is Dubai's primary hub for international banks and financial firms. Read more.

Greece will attempt today to claw back some of its lost credibility with the EU and other international financial institutions by outlining drastic cost-cutting measures to reduce its runaway deficit, The Guardian reported. In a no-holds-barred interview, the finance minister, Giorgos Papaconstantinou, has pledged to resuscitate the economy – even if he believes its creditworthiness has been "unjustly" questioned. Greece is embroiled in the most serious fiscal emergency to hit the eurozone since the single currency was launched 10 years ago.

The European Commission approved a restructuring and impaired asset relief scheme for the Royal Bank of Scotland on Monday, saying the measures fell within state aid rules, The New York Times reported on a Reuters story. The Commission, the executive arm of the European Union, said RBS's restructuring proposals should create a sustainable future for the bank, one of Europe's largest financial services groups, which faced a severe liquidity crisis in late 2008.

The Habitat furniture chain is now owned by restructuring specialist Hilco after its Swedish owners agreed to inject £45 million to rid itself of the business, Wales Online reported. A “savage” cost-cutting programme is now expected at the high street retailer, according to The Sunday Times. Hilco is not thought to be planning the closure of any Habitat shops but it could shed more than 50 head office jobs over the next year and tighten up its supply chain.

Solar Systems, the company that was to develop the world's biggest solar power station in Victoria, has until mid-February to find a buyer or go into liquidation, The Sydney Morning Herald reported. A second meeting of creditors in Melbourne yesterday agreed to adjourn for up to 45 business days to give administrator PricewaterhouseCoopers more time to sell the business as a going concern. BusinessDay believes that the administrator could be close to securing a sale but that details need to be finalised.

General Motors on Monday sold to Beijing Automotive Industry Holding the rights to technology from its Saab unit that will help the Chinese company to lift its profile at home, The New York Times reported. BAIC, as the Chinese company is known, is acquiring “certain Saab 9-3, current 9-5 and powertrain technology and tooling,” the companies said in a statement. “This arrangement is excellent for both parties, now and for the future,” Jan Ake Jonsson, managing director of Saab Automobile, said in the statement.

British Airways PLC said Monday it has yet to decide how to tackle its pension deficit, which has risen 76% to £3.7 billion ($6.01 billion) over the last three years, The Wall Street Journal reported. In an unusual move, the U.K. airline released the size of the pension deficit but didn't outline a recovery plan, suggesting it is still at odds with the pension trustees over levels of contributions the airline should make going forward.

The Blue Chip investors who sparked the downfall of Mark Bryers have taken a hit to their wallets as a Gulf Harbour investment hotel unit they owned was seized by liquidators, The National Business Review reported. New Zealand investors Donald and Annette Rowson sank funds in to Blue Chip’s Gulf Harbour Lodge and originally applied to have Mark Bryers’ company Swordfish Lodge Management wound up in March 2008, which started the collapse of his companies.

Greek Prime Minister George Papandreou said that European Central Bank President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Juncker see “no possibility” of a Greek default. Papandreou was speaking to reporters at a European Union summit in Brussels, Bloomberg reported. “There is no possibility of a default for Greece,” Papandreou said today. He also said there was no possibility of Greece leaving the euro area.