Headlines

A large dairy in south-east South Australia has gone into receivership with debts of more than A$12 million, ABC News reported. The Carilla dairy in Tintinara operates about 3,000 head of cattle and employs about 18 staff. There is another $2 million that is owed to a group of unsecured creditors. The receiver of the dairy, Martin Lewis, has taken over the property - he said plummeting milk prices have contributed to the collapse. Read more.

Workers at the French arm of telecommunications manufacturer Nortel have threatened to blow up their factory unless they secure decent layoff terms, but gas cylinders placed around the plant were empty, the National Post reported on a Reuters story. French daily Le Parisien said on Wednesday the workers had placed gas cylinders in front of the plant in the Yvelines area near Paris, where 480 jobs are set to be axed following bankruptcy proceedings.

Bedford, Nova Scotia-based SportsClick Inc. has been put into interim receivership by its chief creditor, the Bank of Montreal, The ChronicleHerald reported. Ron Monet, BMO’s director of corporate communications for Quebec and Atlantic Canada, confirmed that trustee Ernst & Young has been appointed as interim receiver for the Bedford firm, which owes BMO $872,000. The receiver will look at SportsClick’s situation and evaluate what steps to take next, said Mr. Monet. The bank claims that SportsClick opened and used HSBC bank accounts for deposits, which Mr.

Germany's government sent a message to General Motors Co. on Wednesday: If GM sells its European car business to anyone other than Magna International Inc., then Germany might withdraw its offer of state aid, The Wall Street Journal reported. The warning comes as German politicians grow increasingly nervous about who will win the auction for GM's European operations, centered on its Opel brand, a major employer in Germany and several other European countries. Germany's strong hint could bolster Magna's chances, despite intense interest from other parties.

Seven months after Canadian telecommunications equipment maker Nortel Networks Inc. sought bankruptcy protection, its Latin American and Caribbean subsidiary Nortel Networks CALA Inc. has also filed for Chapter 11, Bankruptcy Law360 reported. The Florida-based affiliate of Nortel filed its petition Wednesday in U.S. Bankruptcy Court for the District of Delaware after determining that such an action would help preserve the value of assets and contribute to Nortel's overall restructuring efforts.

British petrochemicals giant Ineos today announced it has received the overwhelming support of its lenders for proposals to ease the terms on much of its €7.5 billion debt load, Reuters reported. The deal leaves the company’s debt burden untouched while lenders will accept a back-dated increase in interest payments as well as a one-off fee. The company spent months preparing a new business plan and discussing options with lenders and financial advisers.

Air Canada’s biggest union, representing 12,300 mechanics and ground staff, has voted in favour of a tentative agreement that aims to provide labour stability and help avoid a second filing for bankruptcy protection in less than six years, The Toronto Star reported. Members of the International Association of Machinists and Aerospace Workers voted 60.3 per cent in favour of a pact that calls for a 21-month moratorium on payments to the airline's pension plans and a wage freeze over the same period, among other things.

Fraser Papers Inc. said an Ontario court has extended its creditor protection for 90 days until mid-October, The Canadian Press reported. The Toronto-based company, which filed for protection under the Companies' Creditors Arrangement Act (CCAA) in June, said the extension is now until Oct. 16. Fraser Papers said the extension is was supported by PricewaterhouseCoopers Inc., the court appointed monitor. Fraser Papers filed for protection, citing ongoing weakness in the pulp and lumber markets as well as a cash shortfall. Earlier this week, the company said a U.S.

MatlinPatterson is open to working with strategic partners in putting forward a comprehensive proposal to reorganize the businesses of bankrupt Canadian telecom equipment maker Nortel Networks, the U.S. private equity firm said on Wednesday. MatlinPatterson, a major bondholder and Nortel creditor, has stated that it does not believe that the proposed sale of Nortel's key wireless technology unit to Nokia Siemens Networks maximizes value for Nortel stakeholders, Reuters reported. On Tuesday, Nokia Siemens' head of U.S.

Lloyds Banking Group Plc, whose largest shareholder is the British government, said it plans to cut a total of 1,200 jobs in its U.K. information technology and insurance units by the end of March, Bloomberg reported. The announcement brings the number of jobs eliminated by the bank this year to 8,850. Those leaving will include 370 contract and agency employees, the bank said in an e-mailed statement today. The cuts will be partially offset by the creation of 180 new posts in group operations.