Headlines

Nortel Networks Corp.’s former employees and pensioners asked a Canadian judge to order the insolvent telephone-equipment maker to pay them benefits including severance and pension supplements, Bloomberg reported. The company filed for bankruptcy in January in the U.S. and Canada after losing almost $7 billion since 2005. Toronto-based Nortel ceased paying former workers some pension benefits and refused severance and termination payments, saying under bankruptcy protection those are unsecured claims.

Fiat SpA Chief Executive Sergio Marchionne is likely to seek broad management authority over Chrysler LLC, possibly as CEO, if the Italian and U.S. car makers finalize their planned partnership, a person close to Fiat said Wednesday. But Mr. Marchionne sounded a note of caution about the alliance, saying Fiat could walk away if U.S. and Canadian unions don't agree to significant pay cuts at the ailing Detroit auto maker, The Wall Street Journal reported. Asked Wednesday whether he aimed to become CEO of the company, Mr.

Spain's central bank issued a stark warning to the country's government Wednesday, saying there is no more room to revive the economy with fresh spending, The Wall Street Journal reported. In an interview, the Bank of Spain's chief economist, José Luis Malo de Molina, also cautioned that any additional fiscal stimulus would have scant effect on the economy and require big spending cuts down the road to right the country's finances. The margin for new spending or tax cuts is "nonexistent" unless new measures to cut the budget deficit in the medium term are taken, Mr.

In a related story, Sweden's center-right government said it plans to provide more than $7 billion in 2010 to bolster the economy against global financial strife. The government also put in place $1 billion in measures for 2009 to target Sweden's slackening labor market as it nears the conclusion of its four-year term, which began in 2006.

The directors of the Kleenmaid kitchen and laundry appliances empire have taken the unusual step of addressing aggrieved customers via a YouTube clip, claiming they are working on a plan to resurrect the failed group, The Australian reported. In the clip, Kleenmaid founder Andrew Young and fellow director Bradley Young said they "remained committed to the Kleenmaid" and planned to approach administrator Deloitte with a proposal allowing them to regain control of the group.

Up to 450 staff face the axe and 685 children will have their care disrupted after ABC Learning receivers announced that 19 of its centres would close and another 210 would be sold by the middle of next month, The Australian reported. PPB, one of the court-appointed receivers to Australia's biggest childcare empire, yesterday published its list of childcare centres that will be sold, shut down or remain in limbo, after five months of anxiety for staff and parents.

Fiat SpA may consider buying Chrysler LLC assets if the two don’t forge an alliance and the Italian company’s troubled U.S. counterpart declares bankruptcy, Chief Executive Officer Sergio Marchionne said. Chapter 11 bankruptcy isn’t Chrysler’s best option and the Auburn Hills, Michigan-based automaker shouldn’t try to survive by liquidating assets, Marchionne told reporters in Zurich today. “Our preference obviously is to find a solution” with the U.S. Treasury, unions and lenders, Marchionne said.

SV Partners' Paul Sweeney and Glenn Shannon have been appointed receivers and managers of Maccaral Developments Pty Ltd, part of the Ikin Group of companies, The Chronicle reported. Maccaral Developments is the developer of Toowoomba’s 544-shed Ikin Store It facility. Mr Sweeney said SV Partners had been appointed by a secured creditor--the financier of the project. Ikin Group director Alan Ikin is the father of former State of Origin and Broncos star Ben Ikin. Alan Ikin is also a director of Maccaral Developments.

India's Company Law Board Thursday approved Tech Mahindra Ltd.'s proposal to buy a controlling stake in Satyam Computer Services Ltd., clearing the decks for a takeover of the fraud-hit software company, The Wall Street Journal reported. But the CLB said also that Tech Mahindra can't appoint more than four members to Satyam's board for now. The six government-nominated Satyam directors will continue "till further orders," said CLB Chairman S. Balasubramanian. Venturbay Consultants Pvt.

Toronto-based PharmEng International Inc., a contract drug manufacturer, says it plans to file a proposal under the Bankruptcy & Insolvency Act (Canada) after defaulting on millions of dollars in debt obligations, The Canadian Press reported. A. Farber & Partners Inc. has been appointed as the licensed trustee in bankruptcy for the company, PharmEng said. The move comes after the company defaulted on $7 million worth of debt obligations earlier this month. In addition, PharmEng said it's also in default under its $14 million credit facility and term loan with Landsbanki Islands h.f.