Headlines

Candover, the private equity group, is likely to face pressure from banks to inject more money into Ferretti after the yacht builder defaulted on its debt as a result of sinking sales. As reported in the Financial Times this month, Ferretti has appointed Rothschild to advise on talks with its banking syndicate, led by Royal Bank of Scotland and Mediobanca, about restructuring its €1 billion-plus debts. The global financial crisis has hurt the Italian company, with many of the world’s multi-millionaires pulling back from buying big-ticket items.

An unplanned bankruptcy has disrupted a plan by Flying J to open a chain of travel plazas across Europe that would be modeled after its outlets in the U.S. and Canada, The Salt Lake Tribune reported. The Ogden, Utah-based company had been mapping out its first expansion outside North America when a steep drop in oil prices and a lack of available financing suddenly brought on a liquidity crisis that forced it into bankruptcy last month.

The default rate of Brazilian companies was up 36 percent in December compared with the same period in 2007, the highest increase since 1999, according to a study released on Monday by credit consulting company Serasa Experian. Compared with November, December's default rate was up 5.9 percent, Xinhua reported. In 2008, the default rate among Brazilian companies was up 4.8 percent compared with 2007. According to Serasa Experian, the high default rate was caused by the international financial crisis and its impact on Brazil, namely the reduction of both credit and demand.

Iceland's Minister of Commerce resigned his post on Sunday, citing the pressures of the island nation's economic collapse, The Wall Street Journal reported. Bjorgvin Sigurdsson told reporters he had quit and had also fired the head of the Iceland's financial supervisory authority. Mr. Sigurdsson's resignation came two days after Prime Minister Geir Haarde called early national elections and announced that he would not stand for re-election.

Smurfit-Stone Container Corp., the largest producer of cardboard box materials in North America, said Monday that it has filed for Chapter 11 bankruptcy protection as it looks to restructure a heavy debt, the Associated Press reported. The Chicago-based company said it filed for protection from creditor claims while it develops a financial reorganization plan in the U.S. Bankruptcy Court in Wilmington, Del. Its Canadian units will file under the companies' Creditors Arrangement Act in the Ontario Superior Court of Justice, the company said.

Outbursts of civil unrest have occurred in recent weeks across the periphery of Europe, where the global financial crisis has buffeted smaller countries with fewer resources to defend their economies, The Washington Post reported. Especially in Eastern Europe, the turmoil reflects surging political discontent and threatens to topple shaky governments that have been the focus of popular resentment over corruption for years.

The French state plans to inject €5 billion ($6.5 billion) into banks with the aim of financing airplane purchases to help European planemaker Airbus, a French government source said on Sunday, confirming an earlier report in the business newspaper Les Echos. Although not presented as a direct bailout, the plan appeared to be the first significant government package directed toward the aerospace industry as industrial countries pour funds into propping up industries weakened by the credit crisis.

A right-wing Italian cabinet minister said on Sunday there would be a popular revolt if carmaker Fiat was given government help, warning government before talks with the auto sector this week, Reuters reported. "We have already paid up to intervene in Fiat so many times and you can't keep sharing the debt and keeping the profit," Roberto Calderoli, who has the task of whittling down bureaucracy and legislation in the government of Prime Minister Silvio Berlusconi, told state television RAI.

The global finance industry faces a shift in power from rich to emerging markets and a return to simpler forms of banking in the wake of the economic crisis, according to a study from the World Economic Forum on Thursday. The report will be discussed at this month's annual meeting of business and political leaders in the Swiss resort of Davos, said the forum, a think tank that organizes the get-together. It said a "back to basics" trend in banking would see institutions focusing on healthy balance sheets.

Mexico's Comercial Mexicana hopes to reach a restructuring agreement with its lenders before March 2, a top company official told Reuters on Friday. "We have been working (on striking a deal) since December. I think, I hope, we can reach a restructuring agreement before" March 2, Jose Calvillo, who heads Comerci's restructuring efforts, told Reuters. Calvillo said creditors have appointed a common representative to help them iron out differences with the company and agree on the way and timing of the payments.