Headlines

New Zealand-based BSB Construction, a franchise of David Reid Homes, has been declared insolvent, one of many businesses that have become extinct in the last couple of months, The National Business Review reported. The company owes a total of $1.74 million, with only $174,000 in assets, leaving its creditors about $1.58 million out of pocket. A liquidators report hints that BSB Construction was in trouble for some time before the building slump finally sounded the death knell. Creditors have until December 19 to lodge a claim for money owed.

Lenders to Orchid, the privately owned pub and restaurant group that includes the Country Carvery and Sri Thai chains, have sent a restructuring team from PricewaterhouseCoopers (PwC) into the company, with the management's blessing, The Times reported today. HBOS, which financed the £571 million buyout of Orchid two years ago by GI Partners, the private equity firm, has drafted in the accountancy firm to advise on a financial restructuring. PwC was also asked to stand by to step in as administrator should this become necessary, although this is not the case at present.

The administrator for failed lender London Scottish Bank (LSB) on Tuesday said many potential buyers had expressed interest both in the company as a whole and in its profitable debt collection unit, the International Herald Tribune reported today. Accountants Ernst and Young was appointed as administrator for LSB on Sunday after the Financial Services Authority intervened to prevent the bank from accepting deposits because of a shortfall in its regulatory capital.

Kaupthing Bank hf, Iceland's largest bank, has sought bankruptcy protection from its U.S. creditors, Reuters reported. The Reykjavik-based lender filed a Chapter 15 bankruptcy petition on Sunday with the U.S. bankruptcy court for the Southern District of New York. The filing came after Iceland's Financial Supervisory Authority seized Kaupthing, Glitnir Banki hf and Landsbanki Islands hf, the nation's three largest banks, as the global credit crisis deepened. Glitnir filed on Nov 26 for Chapter 15 protection.

Decorative paper manufacturer Stewo AG said Tuesday it is packing up its 148-year-old business after deteriorating market conditions and a lack of available credit forced it to declare bankruptcy, the Associated Press reported today. Stewo will lay off its entire staff of 123, it said in a statement released just after First Advent, the traditional start to the European Christmas shopping season, and Black Friday in the United States. All of the company's loans were recently canceled as a result of the sharp tightening in credit conditions, it said.

Melbourne power tool company Global Machinery Co has gone into receivership after losing a major contract, the Herald Sun reported today. KordaMentha said yesterday it had been appointed receivers and managers of the Tullamarine-based company. It's believed the loss of a major sales contract with hardware giant Bunnings two months ago sliced almost $100 million off GMC's turnover, which once stood at $250 million and delivered net profit of about $25 million.

The municipal court in Prague on Friday declared bankruptcy proceedings on glass maker Sklo Bohemia on the application of creditors, the Prague Daily Monitor reported today. Creditors agreed on Friday that bankruptcy is the only possible solution for the debt-ridden company, the company's receiver Helena Horova told the Czech News Agency. Creditors decided on Friday that the company's assets would not be sold as a whole but in parts. Horova said no investor interested in buying the whole glassworks or renewing glass production has appeared.

Dublin's premier pub-running company won bankruptcy protection Friday in a surprising sign that Ireland's credit crunch is pushing even the most liquid of businesses to the breaking point, the Associated Press reported. The High Court granted bankruptcy protection to the Thomas Read Group, which runs a dozen of the capital's most popular pubs and eight more at Dublin Airport. The company also runs an award-winning restaurant on the River Liffey, the Winding Stair Bookshop & Cafe, and a top Dublin nightclub, Ri Ra.

Qimonda AG, the memory chip company majority owned by Infineon Technologies, said Monday it may face bankruptcy if it fails to find new investors or the cash needed to operate in the coming weeks, the International Herald Tribune reported today. A Qimonda spokesman told the Associated Press that if the memory chip maker doesn't cut costs and fails to find new capital through an investor partner, that it could not exclude bankruptcy by the end of the first quarter of 2009. Qimonda said it is in talks with potential partner investors, and that those talks are making progress.

Corporate Australia's capacity to survive recession has been questioned, with figures released yesterday showing one company in five is exhibiting symptoms of bankruptcy, The Daily Telegraph reported today. The claims come from the annual 333 Performance Management Australian Corporate Health Index. In its second year, the 333 index examines 10 years of data from more than 200 listed companies. Corporate health is calculated by using an internationally recognised bankruptcy prediction model, the Altman Z Score, to measure the health of Australian companies.