Headlines

The European Commission, the EU's executive arm, says Belgian-French financial services group Dexia's restructuring plan could distort competition and does not guarantee recovery for the group, Reuters reported. The Commission said certain measures the group had proposed could distort competition, and questioned whether Dexia would be able to obtain sufficient long-term funding.

The Bank of England’s Monetary Policy Committee today voted to maintain the benchmark interest rate at 0.5% - - the lowest since the bank was founded in 1694, Finfacts reported. The MPC also voted to continue with its programme of asset purchases financed by the issuance of central bank reserves and to increase its size by £50 billion to £175 billion. The MPC said in the UK, the recession appears to have been deeper than previously thought. GDP fell further in the second quarter of 2009.

Creditors filed for the liquidation of the troubled Ssangyong Motor with the Seoul Central District Court, Wednesday, a desperate move to put pressure on occupiers of a building at the company's plant amid growing fears that the occupation will soon threaten the survival of not only the automaker but also its suppliers, The Korea Times reported. Choi Myung-hoon, the spokesman for the creditors, said, "With the standoff continuing, more than 1,900 part suppliers are exposed to bankruptcy.

Bankrupt telecommunications giant Nortel Networks Inc. reportedly won approval from courts in Canada and the U.S. on Tuesday to sell off its enterprise solutions business for $475 million, Bankruptcy Law360 reported. Avaya and Nortel announced the agreement in July, but the courts had yet to approve the move for an auction. Under the deal Avaya would purchase Nortel's enterprise solutions business for $475 million as part of Avaya's effort to broaden its reach and strengthen its position in the telecommunications industry, the company said in a July statement.

Qantas Airways Ltd. Chief Executive Alan Joyce said he doesn't expect Australia's national carrier to merge with another airline for at least a decade, The Wall Street Journal reported. Mr. Joyce also predicted that at least one competitor will drop out of the cramped Pacific route between Australia and the U.S, and confirmed that Qantas has suspended plans to list its frequent flyer business indefinitely. Merger talks between Qantas and British Airways PLC. fell through last year and Qantas has also held merger discussions with Singapore Airlines Ltd.

Lossmaking Montreal diagnostics specialist Adaltis Inc. said Tuesday it has filed for bankruptcy in Canada to effect an orderly liquidation of assets, property and operations, The Montreal Gazette reported. The filing is voluntary and does not include its Chinese operation. The move also ends the July 3 court-granted protection from creditors, Adaltis said. The position of creditors and other stakeholders won't be known until the liquidation procees is completed, the company added. The directors have resigned and RSM Richter Inc. has been named trustee.

The German government on Tuesday gave the two rival bidders for the Opel unit of General Motors Co. until the end of this week to clear up lingering problems with their offers, The Wall Street Journal reported. The U.S. auto maker has been under intense political pressure from German politicians to back an offer for a majority stake in Opel and its U.K. affiliate, Vauxhall, led by Magna International Inc., an Austro-Canadian car-parts maker.

Britain's Lloyds Banking Group sank to a 4 billion pounds ($6.8 billion) loss in the first half, battered by a surge in bad debts from its HBOS business, but the bank told investors it was through the worst, Reuters reported. Britain's biggest retail bank said on Wednesday its impairment losses for the six months to June jumped to 13.4 billion pounds, more than five times the 2.5 billion pounds a year ago and up from 12.4 billion in the previous six months.

Japanese producer-distributor Movie-Eye Entertainment, distributor of Oscar-winners Crash and Million Dollar Baby, has filed for bankruptcy according to a fax sent to creditors yesterday. Movie-Eye increased spend on film in anticipation of becoming a listed company last year but the global financial crisis, Japanese recession and underperforming box office led to losses of $45 million (Y4.29 billion) over the period.

State-owned conglomerate Dubai World said on Wednesday it has put on hold several of its projects in Africa, the latest delays from the firm as it restructures due to the global economic downturn, Reuters reported. The ports and property group faces challenges to revamp operations and finances before the end of the year when a $3.5 billion Islamic bond for its subsidiary Nakheel matures. In June, it hired AlixPartners, the turnaround experts who are advising on the General Motors bankruptcy, to help restructure its business.