Headlines

Retailer Woolworths Group PLC was on the verge of collapse Thursday as financial administrators appointed to the company raced to find a buyer for its 800-strong chain of outmoded stores, the Associated Press reported. The potential demise of the purveyor of an eclectic range of goods from sweets and cheese graters to magnifying glasses and DVDs marks the biggest retail casualty of a severe slump in consumer spending and puts almost 30,000 jobs at risk.

Administrators for the collapsed furniture retailer MFI have said they are carrying out a "full review" of orders to see which can be fulfilled, the BBC reported. The furniture retailer was put into administration on Wednesday, citing falling demand for big ticket items, cash-flow problems and the withdrawal of credit. Administrators MCR said that 107 of the 111 stores were still operating, though 26 are expected to close imminently. A thousand staff at MFI were briefed by the accountants earlier on the outlook.

The International Monetary Fund approved a $7.6 billion loan for Pakistan on Tuesday to prevent it from defaulting on its debt and to help stabilize its economy, The New York Times reported. The loan, under discussion for more than a month, at first met strong resistance from the Pakistani government, which sought money on more generous terms from other countries. But Pakistan’s major allies--the United States, China and Saudi Arabia--insisted that it accept the loan and the IMF conditions before they offered assistance.

China's central bank slashed borrowing costs by the biggest margin in a decade, in a strong signal that government efforts to support the economy didn't end with the announcement of a massive stimulus plan just over two weeks ago, the Wall Street Journal reported today. The move, announced Wednesday, brings the benchmark one-year lending rate down by 1.08 percentage points to 5.58%, with the benchmark one-year deposit rate cut by the same margin to 2.52%, the People's Bank of China said in a statement.

Siemens AG, Germany's largest industrial and electronics company, said late Tuesday it reached a deal with administrators in the case of BenQ Mobile's insolvency settlement. Siemens said in a short statement it would pay a gross sum to BenQ Mobile of 300 million euros ($381 million) in relation to the insolvency of the BenQ business in 2006, the Associated Press reported. Siemens had sold its ailing handset telephone business to Taiwan-based BenQ Corp. just a year earlier, expecting it to be brought back to profitability.

Foreign Minister Maria Isabel Salvador said Ecuador won't illegally default on its close to $4 billion in sovereign debt, Bloomberg reported today. While a debt audit called by President Rafael Correa has revealed evidence that crimes were committed when the debt was contracted, any decision to repudiate the debt will go ahead in accordance with the law, she said in a radio interview with Quito-based Ecuador Inmediato yesterday. “Ecuador will never act outside the law,” she said.

About 30 percent of Indian industrial metal importers have defaulted on consignments after prices slumped by more than half, the head of a trade body said on Wednesday. "Most of the importers are hit severely. Some importers who had taken bigger risks are not able to clear consignments from the ports," Surendra Mardia, president of the Bombay Metal Exchange (BME), told Reuters in an interview. The BME, with about 500 members, is the biggest association of non-ferrous metal traders in India.

The Sydney Spirit are just two weeks away from possible extinction after the NBL on Wednesday launched default proceedings against the embattled club, The Age reported today. The Spirit had until 4 p.m. (AEDT) to clarify their financial position after the owner said he intended to place the company into the hands of an administrator. But the deadline passed with no response and the NBL said it had "no option" but to enter default proceedings. The club now has until December 10 to rectify the breaches outlined in the default notice or its licence will be withdrawn.

Swiss Life Holding AG Wednesday said it would cut 200 jobs in Switzerland, citing ongoing restructuring efforts across the group, making it one of the first Swiss insurers to reduce staff in the current credit crisis, Dow Jones Newswires reported. The measures should help the life insurer reduce costs by around 90 million Swiss francs ($75.6 million) up to 2012, with half of the savings due in 2009. Restructuring costs amount to around CHF40 million, 80% of which will be charged to the 2008 financial year.

BCE Inc., Canada’s largest phone company, said the economic slump may prevent its takeover from closing on time, signaling the buyout may collapse, Bloomberg reported. The stock fell as much as 38 percent. BCE had planned to go private by Dec. 11. KPMG has evaluated the company and said it would probably be insolvent if it completes the deal under current terms and market conditions, BCE said today in a statement. KPMG said the phone company’s current capital structure meets solvency requirements, BCE said.