A committee of Canada's Senate on Thursday killed a proposed law aimed at preventing long-term disabled workers from being treated as unsecured creditors in bankruptcy proceedings, Dow Jones Daily Bankruptcy Review reported. Bill S-216, as it is known, which moves the disabled up the queue to preferred creditor status, is meant to help disabled Nortel Networks Corp. employees who will lose their benefits at year's end because of a court-approved former employees' settlement earlier this year.

A Mexican court has approved the $1.54 billion pre-packaged debt restructuring of retailer Comercial Mexicana, which had the approval of 98% of creditors, the company said Wednesday, Dow Jones reported. Comercial Mexicana said in a press release that the ruling brings an end to its filing under the local equivalent of Chapter 11, and that it will proceed to carry out the agreements reached with creditors.

The Supreme Court of Canada said Thursday it will hear Newfoundland and Labrador's appeal of a lower-court mill clean-up ruling, The Montreal Gazette reported. Newfoundland and Labrador had asked the Supreme Court to rule on certain issues relating to the creditor protection process, especially whether AbitibiBowater's statutory duty to remove environmental contamination is invalidated by the Companies' Creditors Arrangement Act. AbitibiBowater gained court protection from creditors in Canada and the U.S. 20 months ago and plans to exit next month after the Canadian and U.S.

A committee of Canada's Senate on Thursday killed a proposed law aimed at preventing long-term disabled workers from being treated as unsecured creditors in bankruptcy proceedings, Dow Jones reported. Bill S-216, as it is known, which moves the disabled up the queue to preferred creditor status, is meant to help disabled Nortel Networks Corp. employees who will lose their benefits at year's end because of a court-approved former employees' settlement earlier this year.

The Securities and Exchange Commission says the transfer of $1.28 billion in disputed cash and securities from Lehman Brothers Holdings Inc. to Barclays PLC as part of the controversial sale of Lehman's brokerage business could violate U.S. securities law, Dow Jones Daily Bankruptcy Review reported. The SEC said the transfer of assets held in two reserve accounts would violate a consumer-protection rule because it would leave the failed investment bank with insufficient funds to satisfy the claims of customers whose accounts were not transferred to Barclays.

Premier Greg Selinger declined to respond to a charge Friday the province reneged on approving a condo development that could have kept the Radisson Hecla out of receivership, the Winnipeg Free Press reported. Selinger said because the case is now in court, he's blocked from discussing a claim by Joe Paletta, president of The Paletta Group, the province stood in the way of the redevelopment of the resort in Grindstone Provincial Park. "Obviously, it's a concern when a Manitoba family has made a major investment like that.

Family-owned fashion retailer Boutique Jacob Inc. has applied to Quebec Superior Court for an order providing protection from creditors under the Companies Creditors Arrangement Act, The Montreal Gazette reported. "We need time to restructure our activities in an orderly manner in the best long-term interest of the company itself, its 2,000 employees, suppliers, creditors, customers and other partners," Joey Basmaji, president of the Montreal-based national chain, said in a statement. He said the company will operate normally and all Jacob stores across the country will remain open.

Nortel Networks Corp said Genband Inc was looking to "drastically and improperly" reduce its offer price for a Nortel business unit which it agreed to buy in December 2009, Reuters reported. Nortel has also sued Nokia Siemens Networks for failing to pay for certain trial equipment, according to court papers filed on Thursday.

The long and troubled history of the Vancouver Olympic village took another severe turn Wednesday when Millennium Water, the owners of the village, entered into receivership, The Vancouver Sun reported. Under a deal worked out between the city of Vancouver and Millennium Water, Ernst & Young Inc. was appointed as the receiver for the company. The firm will assume control of Millennium Southeast False Creek Properties and the Millennium Water development, the city said in a news advisory.

Chemtura Corp. has struck a deal to avoid bankruptcy-court litigation over claims tied to the pension plan covering hundreds of its United Kingdom workers, which faces a funding deficit of more than $150 million, Dow Jones Daily Bankruptcy Review reported. The maker of specialty chemicals, agrochemicals and consumer products, which emerged from Chapter 11 protection last week, said the deal preserves its right to dispute the pension claims outside of bankruptcy court, which it has sought to do for months.