Headlines

A property company which was planning to build a $1 billion development in Brisbane has gone into voluntary administration, ABC News reported. Austcorp Property Group says one of three banks which had committed funds for the Vision Tower has withdrawn its support. In an announcement to the Australian Stock Exchange, the company says it remains optimistic that the project will proceed once a restructure is undertaken. Administrators will complete a detailed review of Austcorp's operations over the next few weeks.

The bankruptcy judge overseeing U.S. Energy Systems Inc.'s Chapter 11 case has signed off on subsidiary GBGH LLC's plan to put into motion the U.K. portion of its restructuring transactions, Bankruptcy Law360 reported. Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York signed off Tuesday on the motion, ruling that GBGH should be allowed to proceed after finding the transactions to be in the best interest of the estate, its creditors and other parties.

Collapsed plantation group Timbercorp's wind-up was likely to be a drawn-out affair, insolvency specialist Mark Korda told creditors yesterday. There were two meetings yesterday: the first of listed entity Timbercorp Group, at which 300 creditors were told there were debts of about $930 million but assets including 120,000ha of land and 153 megalitres of annual water entitlements, The Australian reported. The secured creditors are the banks, headed by ANZ Bank (owed about $500 million), Commonwealth, Westpac and HBOS. The banks are owed the lion's share of the debt--$661 million.

The arcane world of cross-border restructuring, it turns out, is as vulnerable to the vagaries of Canadian outrage over U. S. dominance as the musical content of local radio stations--at least if the growing controversy over the use of crossborder guarantees for U. S. debtor-in-possession lenders is any indication, the Financial Post reported. "It's not uncommon to have a single credit agreement govern DIP financing for related Canadian and U. S. borrowers," says Linc Rogers, an insolvency partner at Blake, Cassels & Graydon in Toronto.

Ecuadorian banks will see their deposit levels fall further if the government fails to resolve a debt default that has severely limited financing, the head of the country's largest private bank said on Tuesday. Pichincha bank CEO Fernando Pozo, who spoke at the Reuters Latin American Investment Summit in Quito, said the country has failed so far to inject liquidity into the economy to help private banks reeling from the global financial crisis. "Bottom line the default has limited international financing for us ... our credit lines have been reduced," Pozo said.

The International Monetary Fund said most Asian economies are facing a weak recovery next year from a sharp contraction this year and should boost spending to help offset struggling global export demand, The Associated Press reported. Asia's collective economic growth will likely slow to 1.3 percent this year from 5.1 percent last year, before expanding 4.3 percent in 2010, the IMF said in a report. Excluding China and India, Asian economies will contract 2.9 percent this year and grow 1.6 percent next year, the fund predicted.

Pinton Estates Plc, a U.K. property company controlled by Leo Noe, was forced into receivership by its creditors after failing to collect enough rent to make bond payments, Bloomberg reported. Deloitte LLP was appointed as the company’s joint receiver and manager by at least 20 percent of Pinton’s bondholders, the required minimum, Nigel Letheren, a spokesman for the bond’s trustee Prudential Assurance Co. Ltd., said by telephone yesterday.

Tough conditions imposed by the Quebec government as part of its $100 million (U.S.) loan guarantee to insolvent AbitibiBowater Inc. are threatening to derail the company's financial restructuring, The Globe and Mail reported. Mr. Justice Clément Gascon of Quebec Superior Court is expected to issue a ruling today on the loan, which the company insists is crucial to its survival as it restructures under the protection of the Companies Creditors' Arrangement Act in Canada and Chapter 11 laws in the United States.

Blue Chip co-founder Mark Bryers is adamant Northern Crest is solvent even though it lost $146 million in the 15 months to last March and its equity has been wiped out, The National Business Review reported. After months of pressure from the Companies Office, followed by an application to liquidate the remaining Blue Chip investment vehicle, Mr Bryers has provided the company’s 2008 financial report to the ASX. Northern Crest is listed on the Australian stock exchange although it has been suspended from trading since 2008.

Porsche SE’s controlling shareholders, the Porsche and Piech families, plan to meet in Salzburg, Austria today to hash out how to combine the sports-car maker with Volkswagen AG and reduce €9 billion ($12 billion) of debt, according to two people familiar with the matter, Bloomberg reported. The proposals under consideration include merging the carmakers and finding an investor to buy a stake in the combined company or selling the Porsche AG automotive unit to Volkswagen in return for cash and shares, said one of the people, who declined to be identified because the talks are private.