Headlines

Cash flows of Indian auto-parts makers could be affected if General Motors Corp. files for bankruptcy, industry executives said Thursday. Members of the Automotive Component Manufacturers Association of India, or ACMA, export about $1 billion worth of parts to top suppliers and vehicle makers in the U.S. "There could be a hit," ACMA President Vishnu Mathur told Dow Jones Newswires. "Outstanding payments to suppliers are usually the last priority.

Julius Meinl V, the scion of a Viennese business dynasty whose name has been synonymous since the days of the Hapsburgs with luxuries like exotic coffee, handmade tortes and discreet private banking, has been jailed on suspicion of fraud at a company linked to the family, the International Herald Tribune reported. Prosecutors accused Mr. Meinl of artificially bolstering shares of the real estate company Meinl European Land on the Vienna stock exchange, even as its investments in real estate across Eastern and Central Europe cratered. Mr.

Blue Chip's Mark Bryers believes that Northern Crest Investment’s books will prove the property investment firm is solvent, which will throw a spanner in the Registrar of Companies application to liquidate the firm, The National Business Review reported. An application by the Registrar of Companies to liquidate Mr Bryers' remaining investment vehicle Northern Crest was called for the first time at the High Court at Auckland this morning.

World leaders on Thursday heralded the G20 summit as the day the world “fought back against the recession” as they put on a show of unity that lifted global markets and mapped out a new future for financial regulation, the Financial Times reported. Gordon Brown, UK prime minister, host of the summit, said the meeting marked the emergence of a “new world order”, as he unveiled what leaders claimed was a $1,100 billion package of measures to tackle the global downturn, including support for lower income countries and a $250 billion plan to boost the international money supply.

Professional Insurance Corporation Zambia (PICZ) Limited has sued Zambian Airways Limited for US$135,916 (K754 million) debt in unsettled premiums, the Zambia Daily Mail reported. On January 13, 2009, following the airline’s failure to settle the outstanding insurance premiums, the insurance cover was cancelled and Zambian Airways was charged premiums for time on risk amounting to US$135,916. In addition, the Lusaka High Court has ordered an attachment of all identifiable assets belonging to Zambian Airways, which has now been placed under receivership by its lenders.

Russian housing developer PIK has mandated Russia's biggest bank, state owned Sberbank, to restructure its 44.8 billion rouble ($1.33 billion) loan portfolio, PIK said on Friday. The main creditors are Sberbank, fellow state banks VTB and VEB, and private banks Rosbank and Promsvyazbank, it said. Sberbank Capital, the state bank's new debt management arm, was the recipient of the mandate.

Germany's TMD Friction, a maker of brake pads for the auto industry, has been bought out of bankruptcy by private equity investor Pamplona Capital Management, Reuters reported. The acquisition will safeguard 3,800 jobs worldwide, the company said. "I'm delighted to be partnering with Pamplona who are highly supportive of TMD Friction and the long-term outlook for the group," Derek Whitworth, chief executive of TMD Friction said. TMD Friction declared bankruptcy at four of its plants in December, after reporting a collapse in orders and a lack of credit.

Australian iron ore miner Fortescue Metals Group Ltd. said it will defend itself in court against claims it misled the market in 2004 over agreements with three Chinese government-backed entities, The Wall Street Journal reported. The long-awaited court case, brought against Fortescue by the Australian corporate watchdog, begins next week and is expected to last about five weeks.

AbitibiBowater Inc., North America’s largest newsprint maker, is looking for new options to restructure its debt after a previous plan failed to get enough support from noteholders, Bloomberg reported. A proposal to exchange $1.8 billion of the Bowater subsidiary’s debt to push back maturities and sell new bonds has been terminated, Montreal-based AbitibiBowater said today in a statement. AbitibiBowater spokesman Seth Kursman declined to comment on the possibility of bankruptcy. “I’m not going to speculate about the future,” he said today in a phone interview.

Qimonda, the insolvent German memory-chip maker, yesterday entered formal bankruptcy proceedings as its search for an investor dragged on, the Financial Times reported. The company said 915 of just under 3,400 employees would keep their jobs as it shuttered more sites--including its main plant in Dresden. Michael Jaffé, the insolvency administrator, said he remained in talks with "potential interested parties", and with governments in Germany and Portugal about supporting any new owner.