North America

Beijing is diversifying its overseas investments and pressing U.S. officials for an "exit strategy" from the ultra-loose fiscal and monetary policies that China fears will eventually inflate away the value of its U.S. bond holdings and fell the dollar. But China's pragmatic policymakers also know there is no practical alternative to the dollar as the world's main reserve currency.

The Grand Caravans, 300s and Chargers could be rolling off the assembly lines at Chrysler Canada plants within three weeks as the company's parent pulls away from bankruptcy protection with a new partner following a two-month shutdown, the Toronto Star reported. Although Chrysler would not confirm dates, the Canadian Auto Workers union said yesterday that company officials have suggested privately they want to reopen the minivan plant in Windsor, a car operation in Brampton and an engine casting factory in Etobicoke by June 29.

Air Canada's five unions could acquire a 10-per-cent stake in the airline as management tries to repair its strained labour relations, avoid a strike and preserve cash to survive the recession, The Globe and Mail reported. Under a tentative deal signed late Monday, three of five unions agreed to accept shares in exchange for supporting the company's proposal to freeze wages and defer most contributions to the employee pension plan for 21 months.

Canadian doormaker Masonite International Inc said on Tuesday it had completed a financial restructuring allowing it to emerge from bankruptcy protection in both the United States and Canada, Reuters reported. The company had filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and the Companies' Creditors Arrangement Act (CCAA) in Canada, on March 16.

The Toronto Stock Exchange (TSX) has requested that EarthFirst Canada Inc., a leading developer of renewable wind energy, voluntarily suspend trading of its common shares and common share warrants on the TSX, Energy Current reported on a company press release. In light of EarthFirst having sought protection under the Companies' Creditors Arrangement Act, its recently announced conditional sale of the Dokie I Project and Dokie Expansion Project and EarthFirst's obligations to the TSX, EarthFirst's directors have agreed to the trading suspension.

Labour talks between Air Canada and the Canadian Auto Workers have broken off until early next week after the parties hit an impasse over management's request for a moratorium on its pension payments this year, The Calgary Herald reported on a Financial Post story. "It's not the only sticking point, but it's the key sticking point," said Leslie Dias, CAW Local 2002 president. The CAW represents 4,500 sales and service agents at the airline and its current contract is set to expire on Sunday. But Ms. Dias said the talks will continue next week.

The federal government has appointed the judge who oversaw Air Canada's insolvency filing six years ago to mediate the latest pension dispute between the company and its unionized employees, The Canadian Press reported. Finance Minister Jim Flaherty, acting on his own initiative, asked James Farley to devise a sustainable path for the airline's pension plan that is acceptable to Air Canada, its unions and its retiree association. Farley, currently in private practice for McCarthy Tetrault, presided over Air Canada's bankruptcy restructuring that began in April 2003 and lasted 18 months.

Grupo Mexico SAB, Mexico's largest mining company, said Tuesday it is offering $2.9 billion in a new reorganization plan to take its U.S. copper unit, Asarco LLC, out of Chapter 11 bankruptcy, where it has languished since August 2005, The Wall Street Journal reported. Grupo Mexico's fight to regain control of the Tucson, Ariz., company--which is being run by an independent board set up by the bankruptcy court--is part of a long-running saga that has played out across the U.S.-Mexico border.

Grupo Mexico SAB was ordered by a U.S. judge to put into escrow $8.84 billion worth of stock in its Southern Copper Corp. while it appeals a decision it lost in a Texas court, Bloomberg reported. U.S. District Judge Andrew Hanen in Brownsville, Texas, ruled yesterday that Grupo’s Americas Mining unit must set aside the stock after losing a lawsuit and being ordered to return 260 million shares of Southern Copper to Asarco LLC along with $1.38 billion in cash.

The chairman of General Motors Argentina, Edgar Lourencon, confirmed that the automaker would not lay off personnel in the country, a day after its mother company in the United States filed for bankruptcy protection, the Buenos Aires Herald reported. Dismissing any rumours about the future of the company, the head of the local branch of GM meanwhile announced that the company is currently developing a new model to be produced in a plant in Santa Fe, which will be exported to the rest of the countries of the Mercosur.