Headlines

Saskatchewan's largest hog producer has applied for creditor protection, CBC News reported. Big Sky Farms Inc. of Humboldt said Tuesday it had applied for protection under the Companies' Creditors Arrangement Act. The company primarily blames the downturn in the North American pork market, but says there are other factors as well. The H1N1 swine flu pandemic has led to fewer people buying pork, but Big Sky has also been hurt by the rising Canadian dollar and American trade barriers, company officials said.

The major shareholder of Cedenco Foods claims ANZ National Bank had no justification in putting Cedenco into receivership this week and is seeking legal advice on the matter, The National Business Review reported. The directors of SK Foods International argue ANZ breached the terms of an agreement it had with Cedenco and the decision "serves only to discourage foreign investment in New Zealand," a statement issued by Kensington Swan said.

Shares in Italian eyewear maker Safilo SpA fell on Thursday after the debt-laden company reported a widening third-quarter net loss and warned it could default on its debt if its recapitalisation plan fails, Reuters reported. The maker of Gucci and Dior sunglasses last month announced a recapitalisation plan that depends on the successful completion of a cash tender offer launched by shareholder Hal Holding for outstanding high-yield notes by Nov. 18.

All these months later, heads are still being scratched over the way Barclays managed to scoop up the remains of Lehman, The New York Times reported. Barclays, it turns out, cut itself a remarkably good deal. A recent court filing — this one free of redactions — even accuses Barclays of making off with $5 billion without anyone noticing, an amount that Lehman’s creditors seem to think should be treated as the largest theft in banking history.

German economic confidence dropped slightly in November due to expectations for an incremental recovery, think tank Centre for European Economic Research said Tuesday. Economic expectations for the coming six months fell to 51.1 points from 56 points in October. Economists polled in a Dow Jones Newswires consensus survey on average expected a decline to 54 points. The assessment of the current situation rose to -65.6 points from -72.2 points in October. "The jobs market is increasingly becoming a problem," said ZEW economist Peter Westerheide.

Lloyds Banking Group Plc, Britain’s biggest mortgage lender, said it plans to cut about 5,000 jobs in its administration, insurance and mortgage units, Bloomberg reported. The bank will eliminate 2,600 full-time positions and a further 1,000 contractors and temporary workers by the end of next year, Lloyds said in a statement today. About 1,400 workers will redeployed or relocated, the bank said. Lloyds had about 129,000 U.K. employees at the end of June.

Karstadt, German retail group Arcandor's insolvent department store chain, is in good shape to stay in business for the time being as the search for an investor begins, Reuters reported. A restructuring of Karstadt was the "best alternative for all participants," insolvency administrator Klaus Hubert Goerg said in a speech prepared for a creditor meeting on Tuesday. Goerg said he was in talks with all parties to come up with a future strategy and hoped to come to an agreement soon.

A government task force working on a revival plan for Japan Airlines Corp is considering using a debt restructuring mediation scheme to help ease the airline's financing woes, two sources familiar with the matter said, Forbes reported. The task force is considering a scheme recently introduced in Japan called 'Alternative Dispute Resolution' under which a third party would mediate between JAL and its creditors, allowing for the temporary suspension of loan payments.

Sberbank Chief Executive German Gref said on Tuesday he did not rule out legal action against General Motors after the carmaker's U-turn on selling its Opel unit, Reuters reported. "If necessary, we are prepared to defend our position in court. Lawyers are studying the possibility but we have every chance of avoiding the courts," Gref told reporters. GM reversed its decision to sell a majority stake in Opel to a consortium including Sberbank, Russia's biggest lender, and Canadian auto parts business Magna International, opting instead to restructure the European carmaker.

The U.K. government is potentially most at risk of losing its triple-A rating, but its stable outlook reflects an expectation that it will announce moves to cut its debt more aggressively after an election that must be held by June of next year, Fitch Ratings said Tuesday, The Wall Street Journal reported. The co-head of Fitch's sovereign ratings said that among large developed economies with a top credit rating, the U.K.