Headlines

Australia and New Zealand Banking Group Ltd. reported a 28% fall in fiscal first-half net profit amid escalating charges for bad loans, The Wall Street Journal reported. The lender also warned Wednesday that the outlook for bad loans remains difficult extending into 2010, forcing it to concede full-year provisions will be higher than previously expected. Australia's fourth biggest bank by market value said net profit fell to A$1.42 billion (US$1 billion) in the six months ended March 31 from A$1.96 billion a year earlier.

In Spain, when the previous finance minister said there was no room for tax cuts or spending to buoy the economy, he was sacked by the prime minister. "There is room--there can't not be," new finance minister Elena Salgado said last week, in the face of a Europe-high 17% unemployment rate. But in the U.K., France and Italy, gaping budget deficits have largely ended the chance of major new tax cuts or spending . Germany says that despite expecting a 6% dive in its economy this year, it is more worried about stoking inflation in 2010.

The holding company for Norwegian-based tape storage company Tandberg Data filed for bankruptcy in its home country court on April 24 after it could not cover a loan payment to New York City-based Cyrus Capital, eWeek reported. Tandberg, a major OEM for both IBM and Hewlett-Packard, becomes the first major storage supplier to file for bankruptcy protection since the recession began last summer. As a result of the legal action, Cyrus Capital will acquire the assets of the company and become majority owner. The new operational HQ for the company will be in Dortmund, Germany.

One of New Zealand’s oldest brands is in the hands of receivers, The National Business Review reported. Clothing manufacturer Lane Walker Rudkin Industries is headquartered in Christchurch and employs hundreds of staff in New Zealand and Australia. It went into receivership this afternoon at the behest of its bankers Westpac, understood to be owed more than $50 million. BDO Spicers has been appointed as receiver. Lane Walker Rudkin was established in 1904, and supplied the All Blacks uniform for most of the 20th century through the Canterbury brand it founded.

Nortel Networks Corp. needs its protection from bankruptcy extended to July 30, says the court-appointed monitor in the telecom equipment maker's Canadian insolvency proceedings. The current extension of Nortel's stay under the Companies' Creditors Arrangement Act ends May 1, and Nortel is seeking a further 90-day period of shelter from creditors, The Canadian Press reported.

The industry was awash with rumours about William Verry this week as the 177-year-old contractor battled to keep creditors at bay, Contract Journal reported. Directors at Verry Construction have been locked in a series of board meetings as rivals continued to speculate about the future of the firm. Verry had faced a winding-up petition due to be heard next month but is believed to have settled the outstanding debt. But five new County Court judgements have been registered against the firm in April chasing debts worth £84,000.

German fashion house Escada (ESCG.DE) will face insolvency if its plan to raise fresh cash, replace a bond and renegotiate credit lines fails, Chief Executive Bruno Saelzer said on Tuesday. "The only alternative would be Escada's insolvency," Saelzer told shareholders in a speech prepared for the annual meeting. Escada plans to raise around €30 million ($39 million) in a capital increase in July. It has also asked holders of its €200 million bond to take a cut in repayments and is negotiating with banks on existing and new credit lines, it said last week.

General Motors of Canada Ltd. (GM), following its U.S. parent's lead Monday, detailed additional restructuring moves including cutting its hourly workforce by almost 6,000 by 2014 and reducing its dealer networks by 42% by the end of 2010, Dow Jones Newswires reported. The General Motors Corp. (GM) unit said it's continuing to work with the Canadian and Ontario governments and expects to soon complete a short-term bridge-loan agreement. GM Canada is required to provide an updated restructuring plan by May 30 to be eligible for government financial assistance.

Troubled Oilexco Inc said it plans to request an extension of the bankruptcy protection court order that is due to expire on Thursday, pushing its London-listed shares lower on Tuesday, Reuters reported. The Canadian oil exploration company, which is dual-listed in Toronto and London, also announced its second default status report late Monday relating to its failure to file its 2008 results before the March 31 deadline. The company filed for bankruptcy protection under Canadian laws on February 5.

Fitzroy Island's freshly revamped resort has been placed in receivership just five months after it opened, The Age reported. The $100 million Hunt Resort, on Fitzroy Island in the Great Barrier Reef, was placed in the hands of receivers Ferrier Hodgson and administrators McLeod and Partners last week. The ABC reported that the resort's owner, Joshua Hunt bought the resort from adventure tourism operator Raging Thunder for $18 million in 2006. Raging Thunder claims that Hunt still owes $13 million to them, while reportedly also owing $50 million to BankWest.