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Forestry

Abitibi appoints chief restructuring officer

MONTREAL - Bruce Robertson, a former senior managing partner at Brookfield Asset Management Inc. (TSX:BAM.A), has been appointed chief restructuring officer by AbitibiBowater Inc. The Montreal-based newsprint and lumber producer, which has been among the Canadian forestry companies hit by a downturn in U.S. house construction and publishing, has been under court protection from creditors since mid-April and was delisted from the TSX on May 15. Robertson will report to David Paterson, AbitibiBowater's president and chief executive officer. AbitibiBowater owns or operates 23 pulp and paper facilities and 30 wood products facilities in the United States, Canada, the United Kingdom and South Korea.

Labour

Air Canada's union considers next move

MONTREAL - Air Canada's (TSX:AC.B) mechanics and technical staff could be asked to vote again on a proposed labour contract after a membership vote narrowly rejected a tentative agreement that would freeze their wages until March 31, 2011. The International Association of Machinists and Aerospace Workers says it could hold another membership vote to get the deal approved, or it could meet with Air Canada to see if the tentative agreement can be tweaked. Spokesman Bill Trbovich says the union's leadership is meeting today and wants to meet with Air Canada on Friday. He says the Vancouver 2010 Olympics will not be used as a bargaining chip, as reported by a Toronto newspaper. The rejection of the tentative deal threatens to delay Air Canada's efforts to gain federal approval to defer most of its pension payments for 21 months. The Machinists union represents about 10,000 mechanics, electricians, baggage handlers and cargo agents at Air Canada.

Pharmaceutical

US$50M credit for Biovail Corp.

OTTAWA - Canadian pharmaceutical company Biovail Corp. (TSX:BVF) has received a US$50-million commitment from Export Development Canada under the Crown corporation's broader mandate to provide domestic financing and insurance. The federal Crown corporation said Thursday it has commited $50 million towards a $400 million revolving credit facility for Biovail, Canada's largest publicly traded pharmaceutical company. The EDC, which primarily provides various types of financing to enable Canadian companies to complete foreign deals, received a two-year expansion in March as part of the federal government's efforts to loosen tight credit conditions.

Auto

Ford Canada outsells GM

TORONTO - Ford (NYSE:F) is claiming top spot in Canadian auto and light truck sales for the first time in decades. Ford Canada says it sold 27,408 vehicles in June, a 24.6 per cent increase over the same month of 2008. That put it more than 5,000 units ahead of perennial market leader General Motors (NYSE:GM), which sold 22,334 units in Canada last month despite its parent's Chapter 11 filing in the United States. That put GM Canada's June sales 31 per cent below where they were a year ago. Canadian auto sales numbers are coming out a day after their U.S. counterparts reported Wednesday that almost all of the automakers, except Honda, had sales declines last month compared with the same time last year. Honda Canada didn't fare so well. Overall sales fell by 17 per cent from last year, with a 20 per cent decline at the Honda division more than offsetting a smaller increase at the Acura luxury division.

Gas

Russian-German pipeline approved

HELSINKI - A proposed $15 billion natural gas pipeline linking Russia and Germany beneath the Baltic Sea received a boost Thursday after Finland's environmental authority said it had no major objections to its construction. The Uusimaa Environment Center said the project meets the requirements of Finnish environmental law. The pipeline still needs approval from Finland's Council of State and several additional permits - from Sweden, Denmark and Germany - before underwater construction in the Baltic Sea region can begin. A final decision from Finland could come later this year. Nord Stream will provide a direct link between Russia, the world's largest producer of natural gas, and Germany, one of Europe's largest gas users.