Headlines

Hellas Telecommunications II, parent of Greece's Wind Hellas, said it had begun talks to seek support from shareholder Weather Investments as it expects to run short of cash and is considering restructuring alternatives. Weather Investments is an Italian holding company majority-owned by Egyptian tycoon Naguib Sawiris, with mobile, fixed, Internet and international communication operations in Algeria, Bangladesh, Egypt, Greece, Italy, Pakistan and Tunisia.

CanWest Global Communications Corp.'s efforts to restructure its debt have come up against a series of glitches in the past few weeks that are delaying a deal with bondholders, The Globe and Mail reported. At the top of that list may be the most unlikely of culprits – a television show called MasterChef Australia. The popular cooking program has been a major hit on Australian television this year. That has translated into gains on the Australian stock market.

Ford is to rescue a parts maker whose survival is seen as vital to the viability of the Australian car industry, the Herald Sun reported. Tasmanian-based components supplier ACL yesterday announced it had entered voluntary administration. It will keep trading thanks to Ford's need to keep it afloat as a key supplier of engine bearings for its Falcon. However, the company's future, and that of its 340 employees, remains bleak.

Japan is on the verge of a reluctant revolution, The Wall Street Journal reported. On Sunday, voters here are poised to remove the country's ruling party from power after 54 years of nearly continuous rule. Polls show voters in Sunday's election heavily favor the Democratic Party of Japan, an 11-year-old collection of market reformers, union leaders and consumer activists that has never held full political power.

Japan's unemployment rate rose to a record 5.7% in July in figures released just days before a general election, the BBC reported. Companies are continuing to lay off workers even though the economy has returned to growth after the most bruising recession for decades. The state of Japan's economy is the key issue in the election campaign. In July, 3,590,000 Japanese were out of work in July, over a million more than a year ago. Read more.

Mexican miner Grupo Mexico SAB de CV said on Thursday it has offered to extend for two years the collective bargaining agreement of workers at Asarco LLC, who have supported a rival's bid for control of the bankrupt U.S. copper miner, Reuters reported. Grupo Mexico, which owns but does not control Asarco, has been engaged in a battle with India's Sterlite Industries for over a year for Asarco, which is seeking to emerge from Chapter 11 bankruptcy protection after four years.

Changes to PGG Wrightson’s (PGW) debt servicing arrangements will increase pressure on the rural services company to source extra cash in the year ahead, The National Business Review reported. Yesterday, PGW reported a $66.4 million net loss after a strong early start to the year was eroded by plummeting farmer spending. The company needs to come up with millions more in cash at an earlier date to service the rearranged bank debt.

The bankruptcy filing of the Arcandor retail and mail-order group has left its former chairman and chief executive, Thomas Middelhoff, defending himself in two inquiries related to his four years at the company, The New York Times reported. German prosecutors are investigating Mr. Middelhoff, who once led the media giant Bertelsmann, over real estate deals between a business associate and Arcandor itself, which filed for bankruptcy this spring. Arcandor’s bankruptcy trustee is also studying whether the administrative expenses that Mr.

Arcandor AG, the insolvent German retailer, has fired most of the employees at its main holding company, while the administrator restructures its department store and mail-order businesses, Bloomberg reported. About two-thirds of 100 employees at the Essen, Germany- based Arcandor holding have received their severance letters, telling them to leave by the end of September, Arcandor spokesman Gerd Koslowski said in an interview. Some accountants and lawyers will stay as the company won’t be immediately delisted, he added.

Reflecting still difficult economic conditions in an ongoing recovery, Brazil's loan default rate increased for an eighth consecutive month in July despite falling credit rates registered during the period, Dow Jones reported. Brazil's central bank Wednesday reported the overall average default rate, which takes into account loans 90 days past due, rose to a new eight-year high of 5.9% in July from 5.7% in June. The July default rate was the highest since September 2000.