Headlines

How does Air Canada avoid CCAA? the Globe and Mail asks in an editorial that explores the replacement of president and CEO Montie Brewer with former Air Canada executive Calin Rovinescu. The airline says it can draw more equity out of its fleet by refinancing the planes. There are in fact new agreements in place to do just that. There's also talk of the government changing the pension rules and giving companies more breathing room. Most airline watchers seem to think that these and other factors mean Air Canada won't ask a judge for creditor protection. Don't believe it.

China Minmetals Nonferrous Metals Co. is offering US$1.21 billion for most of the assets of OZ Minerals Ltd. in a deal designed to win Australian government approval, prompting the debt-laden miner's lenders to grant it an extension on its outstanding loans, The Wall Street Journal reported.

Delphi Corp. will sell its brakes-and-suspension business to BeijingWest Industries Co. as part of the auto supplier's ongoing turnaround plan, Dow Jones reported. Delphi, which has been in bankruptcy protection since October 2005, is General Motors Corp.'s largest supplier and has been slammed by the recession and the steep drop in demand for new vehicles. Delphi agreed earlier this month to sell its global steering business to GM as a critical move in both companies' restructuring.

HMP Constructions, one of Queensland’s largest privately-held companies, has entered voluntary administration with the loss of an estimated 500 jobs and debts of around $150 million, the Queensland Business Review reported. It is reported the company was hit by BHP Billiton's decision to axe contracting from its Goonyella mine in Central Queensland, where some 350 staff were employed.

Medical Intelligence Technologies Inc., a provider of innovative monitoring solutions for the mobile telecare industry, has obtained an initial order from the Court under the Companies' Creditors Arrangement Act (CCAA). Samson Bélair Deloitte et Touche has been appointed as monitor, Tech Finance reported. The order applies only to the Canadian activities of the company but does not affect its subsidiaries Medical Mobile SAS (France), Medical Mobile Seguridad (Spain) and Medical Mobile Ltd. (United Kingdom).

French President Nicolas Sarkozy yesterday threatened to wreck the London summit if France’s demands for tougher financial regulation are not met, the Times Online reported. France will not accept a G20 that produces a “false success with language that sounds good but contains no commitments”, his advisers said.

Car parts maker Visteon's main UK arm has gone into administration, cutting at least 565 British jobs, Sky News reported. The American-owned car components manufacturer employed roughly 600 people in one of its UK subsidiaries, with branches in Basildon, Belfast and Enfield. But US-headquartered Visteon said its other UK operations were not in administration, including Visteon Engineering Services, which employs around 400 people.

Creditors have approved a plan to get the troubled Raptis Group back on its feet, The Sydney Morning Herald reported. The Queensland land developer went into voluntary administration under BRI Ferrier in January after several of its major developments went bust, including the $700 million Hilton Hotel site in the heart of Surfers Paradise. Two meetings of creditors on the Gold Coast on Tuesday approved a deed of company arrangement. The company restructure was also approved by banking creditors Capital Finance Australia, ANZ and St George.

Ottawa has set the stage for a clash between General Motors of Canada Ltd. and its union, after the federal government demanded more concessions from GM workers in return for up to $7.5-billion in restructuring assistance and the Canadian Auto Workers refused, The Globe and Mail reported.

The future of Australian manufacturer Lyco Innovations is uncertain, after the company was placed into receivership yesterday, The Courier reported. The company suspended its Wendouree operations, with the receiver expected to meet Lyco's 80 staff later this week. Managing director Richard Lyons said in a statement he hoped a new owner for the company could be found and that the business could continue in some form. Yesterday's announcement comes after eight of its staff were made redundant in November to lower the company's operational costs.