A unit of mining giant Grupo Mexico SAB is appealing a ruling that it is on the hook for $1.38 billion in cash and a stake in lucrative Peruvian copper operations to Asarco LLC, in a case alleging Grupo fraudulently shifted the shares, tipping Asarco into bankruptcy, Bankruptcy Law360 reported. Asarco first sued Grupo subsidiary Americas Mining Corp. in February 2007, arguing that Grupo Mexico's 2003 transfer of Asarco's 54.2 percent ownership in Southern Copper Corp., formerly Southern Peru Copper Corp., to AMC was fraudulent.

Lower revenue and bad debts pushed profit in the second quarter down 71 percent for Deutsche Post DHL, The Journal of Commerce reported. The world's biggest logistics company warned of tough market conditions ahead. The Bonn-based company, which ceased domestic express deliveries in the United States in January after mounting losses, forecast full year profit of $1.7 billion compared with $3.42 billion in 2008. It expects to post a net profit in 2009 thanks to cash proceeds from the sale of its banking unit, Deutsche Postbank.

Quebecor World has emerged from bankruptcy protection in the US and Canada, PrintWeek reported. In a statement, the print giant said it has effectively cancelled its shares and announced new issues of common shares, Class A Convertible preferred shares, and Series I and II Warrants. The new shares are expected to launch on the Toronto stock exchange within 30 days. It said it has drawn down some $540m from its $800m financing facility and has now fully paid back its debtor in possession credit facility.

Collins & Aikman Automotive Canada Inc. announced last week it applied for creditor protection under the Companies' Creditors Arrangement Act (Canada) in the Ontario Superior Court of Justice, Northumberland Today reported. "This (Companies' Creditors Arrangement Act) filing will allow the company to complete any potential sale transactions involving our Canadian Plastics operations," said John Boken, Collins & Aikman's chief restructuring officer.

Bankrupt Canadian telecommunications provider Nortel Networks Corp. has tapped Cleary Gottlieb Steen & Hamilton LLP to assist in the sale of its global Enterprise Solutions business to Avaya Inc. for $475 million, as the company continues to unload assets, Bankruptcy Law360 reported. Read more. (Subscription required.)

Several of Air Canada's employee unions want the Canadian government to put up all of the C$600 million ($545 million) the cash-strapped carrier needs to meet immediate financial obligations, and shut out private lenders. The unions are concerned that lucrative landing slots, which it said the company has proposed putting up as part of collateral for loans, could end up in private hands and then be sold, said Katherine Thompson, spokeswoman for the Air Canada component of the Canadian Union of Public Employees (CUPE).

Bazis International, a Kazakh developer planning a C$542 million ($490 million) hotel- condominium tower in Toronto, struck a deal with lenders that stopped the project from being put into immediate receivership, Bloomberg reported. A group of private lenders, who put up C$46 million for the development, deferred a request before an Ontario judge to place the project into receivership yesterday and sell the property in the center of Toronto after negotiating all day with Bazis lawyers. Ontario Superior Court Judge Herman Siegel adjourned the request to Aug.

Workers at the French arm of telecommunications manufacturer Nortel have threatened to blow up their factory unless they secure decent layoff terms, but gas cylinders placed around the plant were empty, the National Post reported on a Reuters story. French daily Le Parisien said on Wednesday the workers had placed gas cylinders in front of the plant in the Yvelines area near Paris, where 480 jobs are set to be axed following bankruptcy proceedings.

Bedford, Nova Scotia-based SportsClick Inc. has been put into interim receivership by its chief creditor, the Bank of Montreal, The ChronicleHerald reported. Ron Monet, BMO’s director of corporate communications for Quebec and Atlantic Canada, confirmed that trustee Ernst & Young has been appointed as interim receiver for the Bedford firm, which owes BMO $872,000. The receiver will look at SportsClick’s situation and evaluate what steps to take next, said Mr. Monet. The bank claims that SportsClick opened and used HSBC bank accounts for deposits, which Mr.

Seven months after Canadian telecommunications equipment maker Nortel Networks Inc. sought bankruptcy protection, its Latin American and Caribbean subsidiary Nortel Networks CALA Inc. has also filed for Chapter 11, Bankruptcy Law360 reported. The Florida-based affiliate of Nortel filed its petition Wednesday in U.S. Bankruptcy Court for the District of Delaware after determining that such an action would help preserve the value of assets and contribute to Nortel's overall restructuring efforts.