Telecom equipment maker Nortel Networks Corp., which is in the midst of selling off divisions as it works through Canadian bankruptcy, said its loss expanded in the second quarter as revenue fell 86 percent, Bloomberg Businessweek reported. The net loss in the three months to June 30 came to $1.5 billion, or $3.02 per share, compared with a loss of $274 million, or 55 cents per share, a year ago. The loss included reorganization costs of $1.4 billion. Revenue came in at $145 million, compared to $1.01 billion a year ago.

Youth unemployment across the world has climbed to a new high and is likely to climb further this year, a United Nations agency said Thursday, while warning of a “lost generation” as more young people give up the search for work, The New York Times reported. The agency, the International Labor Organization, said in a report that of some 620 million young people ages 15 to 24 in the work force, about 81 million were unemployed at the end of 2009 — the highest level in two decades of record-keeping by the organization, which is based in Geneva.

The main unit of Mexicana said Wednesday that it had resumed ticket sales as it faces a showdown next week with creditors seeking to retrieve their aircraft from the Mexican airline, Dow Jones Daily Bankruptcy Review reported. A senior executive said Compania Mexicana de Aviacion restarted sales online and through ticket offices. Adolfo Crespo, senior vice president of customer service and corporate communications, said it would resume indirect sales through travel agencies, initially via those connected to the Amadeus booking system.

Debt-ridden airline Mexicana de Aviacion needs a cash injection of at least $100 million to keep flying, the company's chief executive said on Tuesday, Reuters reported. "What we are looking for is between $100 million and $150 million," Chief Executive Manuel Borja said in an interview with Radio Formula. Time is ticking for troubled Mexicana, which has ceased flying more than a dozen international routes and stopped selling tickets after requesting creditor protection last week under Mexico's insolvency law, or concurso mercantil. The company has yet to be declared bankrupt.

The McCormick Macnaughton Caterpillar dealership in the Republic has been taken over by Canadian firm Finning, but the group’s rental businesses have ceased trading, The Irish Times reported. Assets belonging to three rental-related companies in the McCormick Macnaughton group, including three premises, will be sold off at an auction scheduled for September 4th. Management at Finning, the world’s largest Caterpillar dealer, took over the running of the dealership in west Dublin on Monday.

The main unit of Mexicana on Monday said that it was cutting flights "to a minimum" amid falling sales and cash reserves following last week's bankruptcy filing, Dow Jones reported. Compania Mexicana de Aviacion also said its problems had spread to regional and low-cost units, MexicanaClick and MexicanaLink, which did not file for creditor protection but are suffering "serious repercussions" on sales. Mexicana said it was suspending flights starting Monday to 13 destinations, including long-haul services from Mexico City to Madrid, London, Buenos Aires and Sao Paulo.

AbitibiBowater Inc. is seeking to quickly strike a deal in connection with a proposed bankruptcy-exit financing package of up to $750 million, Dow Jones Daily Bankruptcy Review reported. The pulp-and-paper company is asking the U.S. Bankruptcy Court in Wilmington, Del., to schedule an Aug. 25 hearing at which it would consider allowing AbitibiBowater to enter into agreements with Barclays Capital Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., which have agreed to manage a $750 million notes offering.

Bankruptcy decisions made by US courts could be enforceable in England and Wales after an important court ruling that lawyers say could have implications for former UK clients of collapsed bank Lehman Brothers and those of the fraudster Bernard Madoff, the Financial Times reported. The Court of Appeal recently ruled in the case of a trust created by Eurofinance SA that English courts could recognise overseas insolvency proceedings made by US courts. Previously US bankruptcy judgments were not enforceable in the UK unless a separate UK action had been started on the same grounds.

A U.S. federal magistrate has shielded Nortel Networks Corp. from action by U.K. pension regulators who fear the troubled company will walk away from obligations to 40,000 retirees, leaving a $3.4 billion funding shortfall, Dow Jones Daily Bankruptcy Review reported. Recommendations issued Thursday by U.S. Magistrate Judge Mary Pat Thynge relieve the company of worry that the U.K.'s Pension Regulator will intrude as Nortel negotiates a bankruptcy exit plan, at least until a federal district judge reviews and acts on Thynge's recommendations.

The trial of a lawsuit by Lyondell Chemical Co. creditors against billionaire Len Blavatnik that claims a 2007 merger drove the company into bankruptcy is set to begin in New York next month, Bloomberg reported. Summonses were filed yesterday in U.S. Bankruptcy Court in Manhattan listing Blavatnik and 41 other people and companies that allegedly played a role in Lyondell’s takeover by Luxembourg-based Basell AF SCA. A pretrial conference is set for Sept. 13.