North America

Discovery Air has been granted creditor protection under the federal Companies' Creditors Arrangement Act, which means the company can stay in business and avoid bankruptcy. Protection is granted to companies with more than $5 million in debt, so they can work with their creditors to find a solution and restructure their businesses, CBC Canada reported. Discovery Air owes about $149 million in secured and unsecured debts as of January 31, according to court documents. Discovery Air is the parent company of three businesses: Great Slave Helicopters, Air Tindi and Discovery Mining Services Ltd.

The head of a Mexican congressional committee on Tuesday called for an investigation of an investment by state workers’ pension fund PensionIssste, after Reuters reported it spent millions on shares in a company spiraling toward bankruptcy, Reuters reported. PensionIssste spent around 400 million pesos ($21.5 million) buying the largest stake in builder ICA (ICA.MX), even after its shares had fallen by more than half in the previous year, three people with knowledge of the investment told Reuters. It stands to lose almost all its investment in a restructuring.

Mexico's state workers' pension fund plowed more than $20 million into ICA and became the largest shareholder as the builder spiraled toward insolvency, according to people familiar with the matter, with the fund's investment set to be wiped out in a restructuring, the International New York Times reported on a Reuters story.

Mexican construction company ICA said on Monday that a judge had approved its creditors agreement, ending the group’s bankruptcy proceedings, Reuters reported. ICA suspended debt payments at the end of 2015 after a crash in the peso made its dollar-denominated debt load unbearable. The company entered into bankruptcy proceedings in September last year. Read more.

Shipping tycoon John Fredriksen has reached an agreement with a majority of creditors over a restructuring plan for oil rig firm Seadrill Ltd, according to U.S. court documents on Monday. The company, once the world’s largest offshore driller by market value, filed for Chapter 11 bankruptcy protection with debt and liabilities of over $10 billion last September after a sharp drop in oil prices in 2014 cut demand for rigs, Reuters reported.

Seadrill’s main owner, billionaire John Fredriksen, is close to reaching a final agreement with banks, bondholders and South Korean shipyards on a financial restructuring plan, the drilling rig company said in a court filing. The Oslo and New York-listed firm, once the world’s largest offshore driller by market value, filed for Chapter 11 bankruptcy protection last September after a sharp drop in oil prices cut demand for rigs, Reuters reported.

Seadrill’s main owner, billionaire John Fredriksen, is close to a deal with unsecured bondholders and South Korean shipyards on a restructuring plan for the rig operator, sources familiar with the talks said on Thursday. The Norwegian company, which last year filed for bankruptcy protection in a U.S. court, has been working with creditors since last month on a restructuring plan to bring in more than $1 billion in fresh funding, allow it to maintain its fleet of rigs and pay creditors and staff, Reuters reported. “The deal hasn’t been signed yet, but I‘m very hopeful...

Sears Canada Inc. creditors are targeting Eddie Lampert, its former controlling shareholder and the chief executive of its U.S. namesake Sears Holdings Corp., over payments he received before the Canadian business collapsed last year. A group of unhappy pensioners served court papers Friday in Ontario’s Superior Court of Justice asking for the appointment of a trustee in Sears Canada’s bankruptcy proceeding for the purpose of digging up additional funds for creditors, The Wall Street Journal reported.

Drilling rig company Seadrill said in a court filing it postponed an initial hearing on its restructuring plan to Feb. 26, buying more time to consider alternative plans, Reuters reported. Seadrill, one of the world’s largest offshore drilling rig operators, filed for bankruptcy in September after a steep drop in crude prices caused drastic cutbacks in oil company investment.

Most of Carillion’s Canadian business, including facilities management at airports, hospitals and defence sites, is to be taken over by the insurer Fairfax Financial Holdings for an undisclosed amount, the Financial Times reported. More than 4,500 of Carillion Canada’s 7,000 employees will transfer to Toronto-based Fairfax, which has agreed to take over its support services functions, both companies announced on Monday.