The Supreme Court of Canada has ruled that the U.S. parent of an insolvent Toronto company is entitled to the Canadian entity’s last $6.75-million, instead of a group of the firm’s retirees, whose pensions were cut after their employer went under, The Globe and Mail reported. The court’s ruling in the case of Indalex Ltd., which plunged into bankruptcy protection in 2009, was is expected to have broad implications for other companies and pension plans across the country.

Some global banks are using models that let them hold only one-eighth of the capital held by their competitors against the same assets, according to a new study that will boost claims that banks are manipulating the key measure of bank safety, the Financial Times reported. The study by the Basel Committee on Banking Supervision comes at a time when investors, regulators and some bankers have called into question the way banks calculate their risk-weighted assets (RWA), which in turn determine how much capital they have to hold.

Almost eight months after it heard oral arguments in the case, the Supreme Court of Canada will be releasing its decision in Sun Indalex Finance, LLC v. United Steelworkers on Friday, Feb. 1, 2013 at 9:45 AM, the Financial Post reported. The case involves an appeal from the Ontario Court of Appeal’s April 2011 judgment in Re Indalex Limited, a landmark case holding that pension plan deficiency claims can have priority over the claims of debtor-in-possession (DIP) lenders in the context of Companies’ Creditors Arrangement Act (CCAA) proceedings.

It’s a world where an e-mail that takes just six minutes to write costs more than $100, and where just the act of compiling one month’s legal bill – not the bill itself – costs $40,000. Welcome to the high-stakes, high-priced universe of cross-border bankruptcy litigation, where what remains of Nortel Networks Corp. is being slowly drained away by lawyers and consultants, The Globe and Mail reported. Nortel’s bondholders, pensioners and other creditors have been engaged in an expensive fight over the $9-billion left over from the piecemeal sale of the company.

Street surveillance cameras in one of the world's most dangerous cities were turned off last week because Honduras' government hasn't paid millions of dollars it owes. The operator that runs them is now threatening to suspend police radio service as well, the Associated Press reported. Teachers have been demonstrating almost every day because they haven't been paid in six months, while doctors complain about the shortage of essential medicines, gauze, needles and latex gloves.

Talks to divide $9 billion raised from the sale of businesses of Nortel Networks, the telecoms equipment maker that went bankrupt in 2009, ended without agreement, and the mediator said on Thursday further discussions were no longer worthwhile, Reuters reported. The failure of nearly two weeks of talks in Toronto raises the prospect that disputes among various creditors and retirees around the world could lead to years of litigation over how to divide the cash.

A mediator overseeing creditor negotiations in Nortel Networks' bankruptcy said on Tuesday he is extending talks over how to distribute about $9 billion in cash at the fallen telecom, Reuters reported. Ontario Chief Justice Warren Winkler said in a statement the mediation, scheduled to end at noon on Tuesday, had been extended, but did not say for how long. A spokesman for the mediator declined to give detail on the length of the extension.

Video game company Atari SA said it filed for bankruptcy protection in Paris and New York on Monday after it failed to find a successor to main shareholder and sole lender BlueBay as it wrestles with tough market conditions, Reuters reported. The U.S. operations plan, in addition, to separate from their French parent to seek independent capital to grow in digital and mobile games, Atari Inc said in a statement. The U.S.

The Cayman Islands are poised to break with decades of secrecy by opening thousands of companies and hedge funds domiciled on the offshore Caribbean territory to greater scrutiny. The British overseas territory, which wants to shed its reputation for clandestine financial activity, is introducing sweeping reforms that will make public the names of thousands of previously hidden companies and their directors.

The former chief executive of bankrupt Nortel Networks and two former senior executives were found not guilty Monday of falsifying financial reports in what prosecutors said was a scheme to report profits and gain bonuses, the Associated Press reported. Ontario Superior Court Justice Frank Marrocco dismissed all charges against former chief executive Frank Dunn, chief financial officer Douglas Beatty and corporate controller Michael Gollogly. The verdicts come four years to the day after Nortel sought bankruptcy protection and began liquidating.