AbitibiBowater Inc. is seeking the green light from a U.S. bankruptcy judge to rework its accounts-receivable securitization facility to take advantage of improving business conditions, a move the company says will save it millions of dollars in the coming months, Dow Jones Daily Bankruptcy Review reported. The Canadian paper maker, which sought bankruptcy protection more than a year ago to restructure its crushing debt load, says it can save $4 million over the next five months by reworking the securitization program with a group of banks led Citigroup Inc. and Barclays Capital Inc.

Planet Organic Health Corp. is set to be acquired by its principal creditor, the Edmonton-based natural and organic products retailer said Friday. Planet Organic received bankruptcy protection last month under the Companies' Creditors Arrangement Act when more than $31.1 million in debt was called in by Catalyst Capital Group Inc., the Edmonton Journal reported. The Toronto private-equity firm, which invests in distressed companies, had bought the debt from Ares Capital Corp. in April.

Newfoundland and Labrador struck out for a second time Tuesday in its efforts to force AbitibiBowater to pay for a costly environmental cleanup, The Canadian Press reported. Quebec Court of Appeal Justice Jacques Chamberland denied the province's request for leave to appeal a ruling by Quebec Superior Court Justice Clement Gascon. "It is my view that the province's application raises no issue which satisfies the test for granting leave to appeal under CCAA (Companies' Creditors Arrangement Act)," he wrote.

Supermarket operator Controladora Comercial Mexicana could soon become the first major test of Mexico's overhauled insolvency laws as it readies to file a "pre-pack" debt restructuring that would end months of negotiations with creditors. As shoppers filled their carts at the company's stores around Mexico, behind the scenes its creditors were hammering out a deal to resolve more than $2 billion of derivatives losses the country's No. 3 supermarket operator suffered at the height of the financial crisis.

Fraser Papers Inc. will sell off its remaining assets over the next 18 months as the insolvent company grapples with up to $500 million in claims from hungry creditors, the Telegraph-Journal reported. On Monday, the man pegged with guiding Fraser Papers through its final days detailed the obstacles still facing the company. Glen McMillan, appointed last week as chief restructuring officer, says the company's "key challenge" is selling its remaining assets. At this point, those assets primarily consist of a paper mill in Gorham, New Hampshire and two lumber mills in northern Maine.

Corporate debt restructuring in Mexico has jumped over the past few years as companies struggled with bad bets on derivatives as well as the effects of the global recession. While large Mexican companies rarely use the country's insolvency law, some major debt deals have been reached in the past year. Cemex S.A.B. de C.V., the world's No. 3 cement maker, which was hurt by a poorly timed $16 billion purchase of Australia's Rinker in 2007 and loaded up on debt just before the global financial crisis crippled its sales. Comercial Mexicana S.A.B. de C.V., the country's No.

The wave of bankruptcies that swept across the country during the recession has seen the government’s unclaimed bankruptcy account leap by about 45% as the feds seized money and assets belonging to insolvent consumers, the Toronto Sun reported. In March 2007, before the global credit crunch started shocking banks around the world, the feds held $9.375 million in their unclaimed bankruptcy fund account. By May 5 of this year that balance had jumped to $13.6 million.

Sea Launch's plans to emerge from bankruptcy under majority Russian ownership are still subject to court and regulatory approval, but company leaders say they expect to resume commercial missions early next year, Spaceflight Now reported. The besieged launch firm filed a plan of reorganization in a Delaware bankruptcy court this week, kicking off several months of behind-the-scenes negotiations between the Sea Launch's new owners and unsecured creditors.

Political leaders and central bankers on both sides of the Atlantic struggled over the weekend to persuade jittery investors that Europe would pull through its sovereign debt crisis, saying that it would be helped by a stronger-than-expected economic recovery in the United States, The New York Times reported.

Greek Prime Minister George Papandreou declared he is not ruling out taking legal action against U.S. investment banks for their role in creating the spiraling Greek debt crisis. Both the Greek government and its citizens have blamed international banks for fanning the flames of the debt crisis with comments about Greece's likely default, actions that are causing the country's borrowing costs to soar, The Associated Press reported. "I wouldn't rule out that (legal action) might be a recourse.