Headlines

After a year of complex negotiations, Quebecor World Inc. has worked out a deal on the key terms of a restructuring plan with its major creditors and anticipates emerging from bankruptcy protection by mid-July, The Globe and Mail reported. The agreement marks the end of a troubled chapter for what was once a key company in the media and printing empire of Pierre Karl Péladeau, and will usher in changes such as recapitalization and deleveraging of the company, which filed for protection 14 months ago.

Railpower Technologies Corp. has shut down its active operations and cut its already diminished workforce by half, to 39 employees, in what appears to be a preliminary step to liquidation, The Canadian Press reported. The Montreal-area locomotive manufacturer has been operating under court protection from its creditors since early February and has said previously that it may not survive. It said on Thursday that the Quebec Superior Court has authorized the transfer of $13 million from its cash on hand to a court-appointed monitor, pending approval to pay its main creditor.

Japan's ruling Liberal Democratic Party on Thursday released details of its economic stimulus plan that includes a larger-than-expected 15.4 trillion yen ($154.55 billion) in spending and tax cuts, The Wall Street Journal reported. The new measures, which are Japan's fourth stimulus package in less than eight months, come as the nation sinks into its worst recession since World War II and shows little sign of recovering. The first three packages have a combined value of 75 trillion yen, including 12 trillion yen in actual spending.

Islamic finance is slowing as the global financial crisis hits its hubs in Malaysia and the Gulf, but the sector now has a chance to move on to Western economies seeking to boost their financial centers. Regulatory differences still plague efforts to build cross-border Islamic banking, and harmonization among different schools of thought is one of the nascent industry's main obstacles as it looks to grow in European countries with large Muslim communities.

The wholly owned Canadian subsidiary of Indalex Inc. has initiated bankruptcy proceedings due to the pervasive decline in the global economy and the slide in demand for extruded aluminum products. Indalex Canada filed for protection under the Companies' Creditors Arrangement Act (CCAA), which is similar to Chapter 11 bankruptcy proceedings in the United States. The case will be heard in the Ontario Superior Court of Justice. The company last month filed for Chapter 11 protection for its U.S. operations.

Poland's No. 2 fertiliser maker Police is not considering filing for bankruptcy protection despite the collapse in demand for its products, its chief executive was quoted as saying on Thursday. Local media cited union leaders as saying that Police executives warned them that it could file for bankruptcy protection by June. The unions are lobbying Poland's treasury to dismiss the top executives at the state-controlled company.

Ireland will take commercial-property assets off the books of six of its biggest lenders and house them in a new state agency, a plan it hopes will restore international confidence in the nation's financial system, The Wall Street Journal reported. If necessary, the state will take majority stakes in Ireland's two main banks. Irish Finance Minister Brian Lenihan said Wednesday that all land and development loans of Ireland's major banks will be housed in the new National Asset Management Agency.

The lucky country’s economic good times are over--50,000 more Australians are looking for work after the unemployment rate jumped half a percentage point in March, The National Business Review reported. Seasonally adjusted, the Australian unemployment rate is now 5.7%, the Australian Bureau of Statistics said today. This is a dramatic rise from February when it was 5.2%, and well above forecasts--most economists were predicting it would hit 5.5%. Unemployment increased by 52,900 to 650,900.

Chief Executive Sergio Marchionne is again in the United States for talks with potential partner Chrysler, a source close to the company said on Thursday. He may have a meeting with Chrysler executives in New York, where an auto show is currently underway, Reuters reported. Fiat and Chrysler are trying to finalize a partnership by the end of April which would help the U.S. car maker avoid bankruptcy. On Wednesday, Chrysler Vice Chairman Jim Press said his company was working around the clock to complete the deal.

Sumitomo Mitsui Financial Group, one of Japan’s three so-called “megabanks,” on Thursday reported a full-year loss of nearly $4 billion and said it planned to raise $8 billion via a new share offer, The New York Times reported. The news raised fresh concerns about the health of the country’s other banks as Japan’s recession deepens. SMFG said it had accrued a net loss of ¥390 billion, or about $3.9 billion, during the fiscal year that ended March 31--far off the ¥180 billion profit it had projected and the ¥462 billion profit it made the previous year.