Headlines

Paper International Inc., a U.S. subsidiary of bankrupt Mexican newsprint maker Corporacion Durango SAB, has received court approval for its disclosure statement and plan support agreement, paving the way for creditors to vote on a reorganization plan by June 8, Bankruptcy Law360 reported. If the creditors approve the proposal, the company will file a reorganization plan in Mexico, where Durango is undergoing bankruptcy proceedings under the country's Mexican Business Reorganization Act, Marinuzzi said. The plans, if approved, would go into effect simultaneously.

Alliance Bank, Kazakhstan’s fourth- biggest lender, is in default after missing a principal payment of more than $10 million, the International Swaps and Derivatives Association said. A committee of credit swaps dealers and asset managers voted unanimously that a “failure-to-pay credit event” occurred after UBS AG asked for a ruling on May 15, ISDA said today on its Web site. The decision will trigger a settlement by auction of credit-default swaps linked to the Almaty-based lender, Bloomberg reported.

Fiat SpA and Magna International Inc., vying for a stake in General Motors Corp.’s Opel unit, will probably face competitors for the holding, said Klaus Franz, the division’s top labor leader. “I expect more than two bids” for Opel and its Vauxhall sister brand in the U.K., Franz said today in a telephone interview. Germany’s government is unlikely to reach a decision on any proposals “before next week.” The government has set a deadline of tomorrow for investors to submit bids for Opel, which is based in the Frankfurt suburb of Ruesselsheim.

Five Star Finance and Five Star Consumer Finance are embroiled in the court process as the liquidator of former company battles the latter firm for ownership of units in the Richmond Park Property Trust, The National Business Review reported. Five Star Finance, Five Star Consumer Finance and Five Star Debenture Nominee went bust in the second half of 2007. Five Star Finance’s six monthly liquidators report says action had been commenced against the receivers of Five Star Consumer Finance in respect of the units, which had been transferred to them.

Mexico is in “very advanced” discussions to make financing available to local units of U.S. automakers if they need help to keep their Mexican plants operating, an Economy Ministry official said. The loans would be made through Mexico’s development bank, known as Nafinsa, and secured by accounts receivable, inventories and possibly assets such as land and machinery, said Lorenza Martinez, undersecretary for industry and commerce.

U.K. telecommunications company BT Group PLC signed a trading deal Monday for the enterprise equipment and services belonging to Toronto telecommunications equipment maker Nortel Networks Corp., the companies said. The financial details of the four-year agreement weren't disclosed, The Wall Street Journal reported. Nortel was placed into administration in January. Nortel, which originally said it hoped to emerge from bankruptcy proceedings smaller and more focused, has been in discussions to sell its largest divisions.

Volkswagen, Europe's largest carmaker, has halted tie-up talks with Porsche as it said its smaller peer and major shareholder was not ready for a merger, Reuters reported. The two companies had planned to meet on Monday to develop plans for a tie-up after the financial crisis scotched heavily indebted Porsche's plan to raise its stake in VW to 75 percent. "We recognized at the end of the week that Porsche is lacking several fundamental conditions for the discussions," said a spokesman for VW on Sunday.

Dominion Finance investors may get a little more of their investment back after a judge ruled that a director of a bust company Dominion lent to has to pay more than $600,000 back into the company coffers, The National Business Review reported. Steven Thom’s company Thom Contractors owed Dominion Finance $1.67 million when it went into receivership in September 2007. Nationwide Finance has recovered its $295,758 loan and GE Finance its $81,000 loan but Dominion is still in limbo. Inland Revenue is also owed $140,622 and there are numerous unsecured creditors.

General Motors Canada has demanded concessions far greater than the Canadian Auto workers granted to Chrysler Canada last month, the union said Friday, as both parties face a looming midnight deadline to reach a cost-cutting labor agreement, The Associated Press reported. The federal and Ontario governments set the deadline for the two sides to agree on a deal to replace a pact that was negotiated in March. The governments have asked the union to give GM Canada the same concessions that it recently gave Chrysler Canada. "It's slow, but we're making progress.

Kleenmaid was still taking customers' money for orders while racking up debts of more than $100 million, administrators say. If found guilty of insolvent trading, directors of the Queensland-based whitegoods group, which went into administration last month, could face civil and criminal charges, The Age reported. Administrators have found cash flow problems were plaguing Kleenmaid for nearly two years, and in June 2007 the group had a shortfall of assets to liabilities of about $20 million, Deloitte partner John Grieg said.