Aviacsa is expected to receive authorization from IFECOM, Mexico’s insolvency regulator, and the Ministry of Communications and Transport (SCT) to exit bankruptcy this week, ElEconomista.mx reported. According to figures that have been released, the airline has debts of 1.7 billion pesos, including a 950 million peso liability to Mexico’s tax authority, Servicio de Administración Tributaria (SAT). In August 2009, a federal judge granted Aviacsa entry to concurso proceedings, weeks after the SCT suspended flight operations for safety violations.

Canadian telecommunications-equipment maker Nortel Networks Corp. disclosed a change in accounting would result in a noncash charge of over $2 billion in the fourth quarter, Dow Jones Daily Bankruptcy Review reported. The company said the charge is primarily related to the recognition of intercompany liabilities between the Canadian and U.S. units that previously were eliminated upon the consolidation of financial results. Nortel on Thursday said it determined the company's U.S.

Pensioners of insolvent forestry company Fraser Papers Inc. voted Monday to strike down the company's restructuring proposal, saying they could not accept a clause that would absolve the company from any legal wrongdoing, the Winnipeg Free Press reported. The Communications, Energy and Paperworkers Union, which represents about 1,900 active and retired employees in Ontario, Quebec and New Brunswick, says it and other major creditors, including the Superintendent of Pensions for New Brunswick, voted to reject the plan at a meeting Monday in Toronto.

Canada's Superintendent of Bankruptcy issued a warning to Canadians about the dangers of high household debt Friday, adding his voice to the chorus from officials concerned about the amount of leverage the average resident now has, Dow Jones Daily Bankruptcy Review reported.

Kathleen Dwyer, the court-appointed trustee for David Drumm’s estate, trawled through his Irish and US bank accounts yesterday, at the former Anglo chief executive’s third bankruptcy hearing in Boston, the Irish Times reported. Yesterday’s hearing highlighted the awkward duty of Ms Dwyer to maximise the amount of Mr Drumm’s estate so it can be distributed to his creditors, while at the same time suing his main creditor, Anglo.

When Maritime Steel and Foundries Ltd. closed its doors on New Year's Eve, it may have been the final time, The News reported. The century-old New Glasgow foundry was forced into receivership last week when its parent company called in a $17.75 million loan and the subsidiary couldn’t repay it. Cameron Corp. Ltd. went before the Supreme Court in Halifax Thursday and filed bankruptcy papers against Maritime Steel. BDO Canada Ltd. was appointed as receiver for the facility.

Royal Bank of Canada is withdrawing from a lawsuit against MBIA Inc. over the insurer’s restructuring in 2009, the third bank this week to drop out, Bloomberg News reported on Friday. Royal Bank of Canada joined JPMorgan Chase & Co. and Barclays Plc in withdrawing from the case, according to a filing today in New York State Supreme Court. The discontinuance orders for Barclays and JPMorgan were filed Dec. 29, according to court papers.

Canada is poised to cut its corporate-tax rate to 16.5 percent on Jan. 1, part of a decade-long campaign that some experts say is making the country one of the most cost-effective places to do business, the Wall Street Journal reported today. Canada's government says that the cuts and other business-attracting measures should bring more investment to the country.

Several Canadian banks are taking advantage of their solid balance sheets as well as the current revamping and consolidation of the American banking system to again look south for expansion, the New York Times reported today. Last week, the Toronto-Dominion Bank agreed to pay $6.3 billion for Chrysler Financial. Bank of Montreal earlier this month bought Marshall & Ilsley, a bank based in Milwaukee, for $4.1 billion.

Judge Stuart M. Bernstein on Wednesday approved Comercial Mexicana's exit from chapter 15 protection in the U.S., the final step in the Mexican supermarket chain's restructuring of $1.54 billion in debt, Dow Jones Daily Bankruptcy Review reported on Friday. The order brings an end to Comercial Mexicana's U.S. bankruptcy case, which was filed after the supermarket chain sought protection under Mexico's equivalent of chapter 11.