April 2018 News Digest – Business Insolvency and Turnaround
02 May 2018
The following are summaries of media stories related to business turnaround and insolvency in Australia during April 2018.
Australia
Property and Construction
Property deals jeopardised by Deposit Power deposit guarantee uncertainty
28 April 2018
The Australian Financial Review reports that “thousands of property buyers caught in the collapse of Deposit Power are being warned by liquidators that they cannot be told when or how much of the original value of their deposit guarantee bonds will be paid.”
Major Coast company collapses owing $1.5 million
24 April 2018
The Sunshine Coast Daily reports that “the principal of a major Sunshine Coast painting contractor has claimed the business which left trade creditors out of pocket $284,439 also owes him $883,366. In its first report to creditors into the collapse of Freestyle F.C. Pty Ltd trading as Coastgard, liquidator Worrells has detailed a total debt of $1.595 million including $373,707 in financial loans.”
Subcontractors’ deal with builder Cooper & Oxley ‘bittersweet’
24 April 2018
The West Australian reports that “subcontractors left millions of dollars out of pocket by the recent administration of Cooper & Oxley have agreed to a deal that paves the way for the builder to get back on its feet. Director George Hampel said he was “a bit relieved” subcontractors yesterday accepted a Deed of Company Arrangement, under which they will get 6¢ to 13¢ for each dollar owing to them.”
OUT OF TOUCH: Contractors slam Pavey response
24 April 2018
The Daily Examiner reports that “local Pacific Highway sub-contractors chasing $7.5million in unpaid invoices, say NSW Roads Minister Melinda Pavey is out of touch with their plight.”
Perth’s Sasha deBretton places rich-list renovation companies into liquidation
18 April 2018
The West Australian reports that “Sasha deBretton — Perth’s self-styled queen of rich-list renovations — has placed her group of companies, including the flagship Million Dollar Makeovers, into liquidation.”
Dubbo Regional Council staff to take over Boundary Road work
16 April 2018
The Daily Liberal reports that “the damage to ratepayers’ pockets from construction company Shearer Contracting going into voluntary administration is still unknown, says Dubbo mayor Ben Shields.”
Fletcher Building seeks executives, directors
11 April 2018
The Australian reports that “Fletcher Building is believed to have hired two recruitment firms to find new board members and top executives as a strategic review into the company continues following recent profit warnings and breaches of its debt covenants.”
Raine Square players Bankwest, Luke Saraceni, Hossean Pourzand go from riches to ruin
8 April 2018
The West Australian reports that “the $500 million Raine Square development was once deemed a glass-and-steel testament to WA’s thriving boom-time economy and to three financial powerhouses who had suddenly jumped into the big league.”
Well established local company Shearer Contracting in voluntary administration
5 April 2018
The Singleton Argus reports that “the long-established local family company, Shearer Contracting Pty Ltd, was placed in voluntary administration last week. The decision to place the company in administration may see up to 50 local jobs lost.”
5 April 2018
The Muswellbrook Chronicle reports that “a Muswellbrook company refutes union claims that it owes hundreds of thousands of dollars in employee privileges. The Construction, Forestry, Mining and Energy Union (CFMEU) recently stated it was currently working to claw back more than $200,000 in entitlements for ex-staff at BIGLIFT Cranes and Heavy Haulage.”
Developer Salvatore 'Sam' Sgherza has been accused of defrauding his mother
1 April 2018
The Advertiser reports that “the mother of an Adelaide property developer is suing her former bankrupt son accusing him of defrauding her of more than $570,000 and has alleged her signature was forged on loan documents.”
Mining
Townsville refinery liquidator confirms refusal of Clive Palmer employee payout
29 April 2018
Australian Mining reports that “Kelly-Anne Trenfield, a liquidator and former administrator of Queensland Nickel’s Yabulu refinery — which went into voluntary administration in January 2016 — has admitted in court that she rejected an offer from Queensland Nickel managing director Clive Mensink to pay all administration costs if she transferred the refinery’s employees and assets to a new operator.”
Who will pay for Queensland’s ‘Linc stink’?
25 April 2018
Echo Net Daily reports that “poisoned land, workers told to drink milk to prevent burning their stomach linings, nearby farm pigs allegedly dying from the ‘Linc stink’ and a $23M clean-up bill. Former gas company Linc Energy is guilty on five counts of wilful and unlawful environmental harm, a Queensland District Court jury found in early April, but the case for farmers and taxpayers is far from over.”
Metgasco's latest crisis: Director ousted for alleged breach of duties
19 April 2018
ABC News reports that “when Andrew Purcell is asked how serious a breach of directors' duties it would be for a director to seek a secret, personal benefit in return for supporting a deal in the interest of shareholders, he answers with a vigorous nod. "That would be against directors' duties, yes," he agrees.”
Lazard, UBS and KPMG to be grilled over Arrium
12 April 2018
The Australian Financial Review reports that “top investment bankers from UBS and Lazard and senior partners from KPMG and law firm Herbert Smith Freehills are among 22 people to be grilled by lawyers for administrators in the next three months in public examinations over the collapse of steel maker Arrium.”
Hexham fabricating firm in liquidation, costing more than 60 jobs
5 April 2018
The Newcastle Herald reports that “Hexham company Total Fabrication Services has gone into liquidation, leaving more than 60 employees owed more than $1.5 million in entitlements.”
Retail
Analysts lukewarm on Myer despite new CEO
25 April 2018
The Australian reports that “analysts are far from bullish on the chances of a quick Myer turnaround and a healthier bottom line after the retailer’s appointment of a new chief executive. On Monday, Myer announced that John King, a former boss of British retailer House of Fraser, was its new chief executive. Former CEO Richard Umbers was ousted in February following three profit downgrades, after his $600 million transform plan failed to gain traction.”
Toys ‘R’ Us collapse hits Hasbro sales
25 April 2018
The Australian reports that “Hasbro has blamed a 16 per cent decline in first-quarter sales on the liquidation of Toys “R” Us and says it has sped up an overhaul of its sales organisation to deal with a world where more toys are sold online.”
Buyer found for discount supermarket chain
23 April 2018
LaTrobe Valley Express reports that “the Morwell NQR store will continue to trade with no job losses following the sale of the statewide company. NQR was placed into the hands of administrators after the company went into voluntary administration in January resulting in the closure of four stores in the following week, including Sale.”
Baby Bounce creditors seek answers
20 April 2018
SBS News reports that “failed infant goods retailer Baby Bounce has closed two stores and owes money to more than 100 creditors. The company went into voluntary administration last week, and the first meeting with creditors was held in Sydney on Thursday.”
Meghan Markle gives Oroton a major boost
20 April 2018
SBS News reports that “embattled Australian accessories label Oroton has hit headlines for good reasons when Prince Harry's fiancee, Meghan Markle, was spotted with one of its handbags.”
17 April 2018
SmartCompany reports that “franchisees of Aussie Farmers Direct say they have zero faith in seeing any money owed to them by the business, as the administrators of the grocery delivery chain say winding up the company “is the most viable option”.”
Toys R Us' Australia stores likely to be saved through Asia play
16 April 2018
The Sydney Morning Herald reports that “thousands of Australian Toys R Us workers appear likely to have their jobs saved through a deal to merge the bankrupt retailer's local operations with its Asian business and sell them to a new owner.”
Myer calls in big gun Mark Korda to soften up landlords
16 April 2018
The Brisbane Times reports that “besieged department store Myer has brought in high-profile restructuring and insolvency administrator Mark Korda to help it try to squeeze out from under suffocating leases.”
Maximum Agencies has gone into liquidation
11 April 2018
Fashion Journal reports that “in sad news for Australian fashion, Maximum Agencies – the parent company of Asilio label – has entered into liquidation.”
SurfStitch creditors back Alceon's EziBuy offer despite last-minute glitch
4 April 2018
The Astralian Financial Review reports that “SurfStitch will be absorbed by online retailer EziBuy after stakeholders overwhelmingly voted in favour of a rescue proposal, despite a last-minute attempt by non-executive director Abigail Cheadle to postpone a decision.”
'It was never going to work': Bunnings expected to struggle for buyers in UK
2 April 2018
The Sydney Morning Herald reports that “Wesfarmers will face an uphill battle finding a buyer for its beleaguered home improvement venture in the UK and Ireland as it tries to cauterise the self-inflicted wound before it haemorrhages even more money, according to one experienced British DIY retailer.”
Tourism and Hospitality
Opera Kitchen appoints administrator
27 April 2018
The Australian Financial Review reports that “SPV Operating, the Sydney-based company which runs the iconic Opera Kitchen restaurant has gone into voluntary administration, owing $6 million to employees, the tax office and creditors.”
Maitland Leagues Club prepares to close its doors for merger with Club Maitland City
19 April 2018
The Newcastle Herald reports that “Maitland District Leagues Club and Club Maitland City have announced a proposal to amalgamate, with both business entities tipped to trade from Club Maitland City's Rutherford site.”
Zagame family to sell Vanuatu casino resort
19 April 2018
The Australian Financial Review reports that “Melbourne's wealthy Zagame family have put their Grand Hotel & Casino resort in Vanuatu in the South Pacific up for sale with market expectations of around $25 million.”
Hope Island restaurants collapse
19 April 2018
The Gold Coast Bulletin reports that “New York New York, Manhattan on Hope and Tiffany's Cafe and Cocktails gutted just days after staff let go ... of the three restaurants through her Pacific Holdings Vanuatu Pty Ltd company — was cleaning out the kitchen of the closed Manhattan On Hope yesterday.”
Jamie Oliver's Australian restaurant group collapses
17 April 2018
The Canberra Times reports that “Jamie Oliver’s dream of buying back the farm in Australia is over. The Jamie Oliver Restaurant Group (Australia) Pty Ltd collapsed on Monday, with the company being placed in the hands of voluntary administrators less than 12 months after the British celebrity chef visited Australia to relaunch the six local restaurants bearing his name.”
17 April 2018
Business News reports that “Perth venues The London Court Cafe and Black Tie Co have closed their doors in recent weeks, as the holding company controlling the two brands enters liquidation following a dispute with the Australian Taxation Office.”
The Grazier's Table, local businesses to help save weddings
6 April 2018
The Daily Liberal reports that “trying times often bring out the best in people, and that’s exactly the case for Dubbo’s events and catering vendors in the wake of Rhino Lodge going into receivership.”
Residents fear closed Helensvale Golf Club turned into residential development
2 April 2018
The Gold Coast Bulletin reports that “liquidator Ian Currie, from BRI Ferrier, said the club would remain closed as they await a decision from council. “The club won't be reopening by the liquidator,” Mr Currie said. “(Council) are going to keep on mowing the greens to keep it maintained as they decide what to do.””
Communications
Canberra businessman and entrepreneur Pawl Cubbin dies
22 April 2018
The Sydney Morning Herald reports that “tributes from Canberra's advertising and hospitality industries were flowing across social media on Sunday night following the death of Canberra businessman and entrepreneur Pawl Cubbin. Fairfax Media understands the Zoo Sydney office entered into liquidation in February. Zoo's Melbourne office also entered liquidation and closed in November last year.”
Publishers call for new probe into collapse of media agency Hammond & Thackeray
12 April 2018
Mumbrella reports that “medical publishers are pressing for fresh investigations into last year’s collapse of media agency Hammond & Thackeray after being told they will not see a cent of the $1.4m they are owed.”
Technology
eCorner takes over liquidated tech retailer’s online selling platform
19 April 2018
ARN Net reports that “hosted e-commerce platform provider eCorner has taken possession of the intellectual property (IP) behind the VARCentral platform, once owned by liquidated tech retailer Warehouse1 -- rebranding it as Resellerate in the process.”
Sydney mobility solutions developer, Airdata, enters administration
17 April 2018
ARN Net reports that “mobility solutions developer and consulting firm, Airdata, has gone into administration after more than a decade in operation. The Sydney-based company, which makes a range of software solutions for mobility and Internet of Things (IoT) applications, claims Motorola, Microsoft, Apple and Datalogic among its vendor partners.”
Health
Date set for Calliope medical centre re-opening
9 April 2018
The Observer reports that “the Calliope Medical Centre will re-open its doors next Monday, as a branch of the Gladstone GP Superclinic.”
Investment
26 April 2018
ABC News reports that “in a revealing insight into the unregulated art auction industry, the administrator's report for the failed Mossgreen art auction house alleges the company breached nine separate sections of the Corporations Act.”
Latest Banksia payout blocked by court action
20 April 2018
The Standard reports that “many south-west investors in the failed Banksia finance company are frustrated after an appeal was launched against a $64 million settlement deal that was to give them another eight cents in the dollar on their investment last month.”
5 April 2018
Business Insider reports that “after a week of questions about Tesla‘s ability to pay back bond-holders and produce cars at a scale that would lessen the need for future capital raises, CEO Elon Musk drew criticism for joking about concerns surrounding the company in an April Fools’ Day Twitter thread.”
Small Business
Entropy wedding venue brides-to-be furious bankrupt owner Laura Alexander
28 April 2018
The Advertiser reports that “Mrs Thies lost almost $9000 when Entropy — the Thebarton wedding venue operated by Laura and Jude Alexander — closed suddenly just days before her marriage to Ben Thies on November 4, 2017. Their nuptials were hastily rearranged for Jarmer's Kitchen in Bowden on their planned day.”
18 April 2018
Proprint reports that “Melbourne based Trojan Press Bookprinters has gone into liquidation, with local printers saying owner Lazarus Gymnopoulos has left them in debt. Trojan Press Bookprinting was affiliated with Thomastown business Trojan Print in the past, but the two separated in 2013 when owner Fab Picciani sold the book business to Frank Todisco. The business was then eventually inherited by Gymnopoulos, who according to Melbourne printers, acted as a print broker, outsourcing all of the firm’s work.”
Blue Sky-owned Wild Breads confirms advisory appointment
12 April 2018
The Australian Financial Review reports that “in a statement to the Australian Securities Exchange on Wednesday, Blue Sky said that the board of Wild Breads had engaged with Inline Advisory. Blue Sky said the appointment "was to help the board evaluate its business strategy, growth plans and capital structure requirements, including reviewing potential acquisitions".”
IN LIQUIDATION: Family-run boating business hits rock bottom
11 April 2018
News Mail reports that “a "tough financial climate" has plunged one family-run business into liquidation only five years after it first set sail.”
Legal
27 April 2018
The Bendigo Advertiser reports that “the union movement is targeting ‘wage theft’ following complaints, in central Victoria and elsewhere, of unpaid superannuation and entitlements. Bendigo Trades Hall Council secretary Luke Martin said the odds were stacked against employees and unions were pushing hard to change the industrial relations rules.”
Court turns down Salim Mehajer plea against bankruptcy
27 April 2018
The Australian reports that “controversial Sydney businessman Salim Mehajer, whose debts include an $8.6 million tax bill, has suffered a setback in his bid to have his bankruptcy annulled. Justice Michael Lee yesterday refused to grant an interim order staying the bankruptcy, stating the Federal Court did not have that power.”
PwC mulls PPB merger as Deloitte waits in wings
24 April 2018
The Australian reports that “a merger between accounting firm PwC Australia and insolvency practitioner PPB Advisory may be gaining traction, but there’s another company in the space waiting in the wings in case the deal does not eventuate.”
20 April 2018
The Australian reports that “Rebel Wilson has proven herself a master of publicity during her fly-in visit to Melbourne, seizing every possible PR opportunity while fighting her latest courtroom battle with magazine publisher Bauer Media.”
Lawyers positive on insolvency law shake-up
20 April 2018
The Australian Financial Review reports that “sweeping reforms to insolvency laws and regulations are set to benefit distressed companies that are attempting to negotiate a sale and avert going into administration.”
Kleenmaid fraud appeal in pipeline
20 April 2018
The Gympie Times reports that “former Kleenmaid director Bradley Wendell Young is set to appeal his nine-year jail sentence for fraud and insolvent trading related to the failed whitegoods business. On Thursday, Queensland Court of Appeal heard the Sunshine Coast man planned an appeal on 17 grounds.”
Bankrupt Noosa businessman blames company fraud on ex-wife
19 April 2018
The Sunshine Daily reports that “a former Noosa businessman who told a jury he "can't even spell" has denied claims he was involved in the defrauding of a Hervey Bay company. Dimitrios Pagonidis gave evidence at his own trial at the Maroochydore District Court yesterday and told the jury he never owned the business, DNA Spray Booths and DNA Panel Shop Equipment involved in the forgery of a fake invoice and the sale of shipping containers it never owned.”
Bankrupt Rocklea car dealer mysteriously earns $300K
17 April 2018
The Queensland Times reports that “the owner of a Rocklea car dealership devastated by the floods was caught supplying $50,000 worth of chemicals to a drug producer. Flooding financially crippled Hai Than Phan's business, an apparent trigger that caused Phan to supply 1kg of ephedrine for $50,000 to a drug producer to make methylamphetamine.”
Charles Waterstreet declares bankruptcy, could lose licence to practise law
9 April 2018
The Australian reports that “prominent NSW criminal lawyer Charles Waterstreet has declared bankruptcy and faces losing his licence to practise. He filed the documents with the Australian Financial Security Authority on March 13, a week after being ordered to pay the tax office more than $420,000.”
Not For Profit
17 April 2018
The Bendigo Advertiser reports that “a situation affecting the supply of fresh and frozen food to Foodshares in regional Victoria, including Bendigo, has resulted in a budget plea. Member for Bendigo Lisa Chesters has called on federal Treasurer, Scott Morrison to include urgent funding for transport-related costs for emergency food relief in the 2018/19 budget, which is released on May 8.”
Primary Industry
Coomboona dairy failure leaves small businesses with unpaid bills and owed thousands
27 April 2018
ABC New reports that “small businesses in regional Victoria and New South Wales hit by the collapse of a mega dairy have been left with unpaid bills, with some owed thousands of dollars. Business partners Alex Arena and Gerry Harvey called in administrators in March after the Coomboona Holdings dairy venture, near Shepparton in northern Victoria, suffered heavy losses.”
19 April 2018
Business Insider reports that “the corporate regulator has sent liquidators into a Queensland beef investment scheme over concerns for hundreds of abandoned cattle.”
Emotional scenes as hundreds attend first Red Lea creditors’ meeting
12 April 2018
SBS reports that “hundreds of people have turned out for the first Red Lea Chickens creditors’ meeting, following the company’s decision to enter voluntary administration. More than 500 workers were informed by email over Easter that they no longer had jobs.”
Union delegate kept out in the cold
11 April 2018
The Riverine Herald reports that “union delegate Darrel Holgate doesn’t have the answers his workers are looking for. When the Echuca abattoir closed in March, Mr Holgate said management told employees to direct any questions they had to him.”
Quintis ponders sandalwood plantation sales
11 April 2018
The West Australian reports that “Quintis’ receivers are discussing selling company-owned plantations as part of their bid to recapitalise the sandalwood group.”
‘Deep regret’ doesn’t pay workers
9 April 2018
The Riverine Herald reports that “Riverside Meats has gone into voluntary liquidation and has ‘‘insufficient’’ money to pay the $622,526.46 bill owed to employees. But that figure is only a portion of almost $8 million owed to its creditors in total.”
Government
NAB, CBA line up for payout over Sydney light rail delays
11 April 2018
The Australian reports that “National Australia Bank and Commonwealth Bank are among the syndicate of lenders due to be paid $1 billion from consortium members wrestling with the NSW government over the delayed light rail project in Sydney.”
Vocal Pisasale critic hit with bankruptcy notice
6 April 2018
Gatton, Lockyer and Brisbane Valley Star reports that “the daughter of former mayor Paul Pisasale has threatened to bankrupt his most vocal critic. Lisa Pisasale has issued former Ipswich mayoral candidate Gary Duffy with a bankruptcy notice over an outstanding debt of $ 8,504.45.”
Culleton $700,000 government debt waived but creditors owed $3.2m
2 April 2018
Queensland Country Life reports that “former rogue WA One Nation Senator and anti-banking farmer Rod Culleton has had his $700,000 Commonwealth government debt waived, along with other politicians ruled ineligible by the High Court recently.”
Education
Castlemaine's Art Pathways program finds new home
19 April 2018
The Bendigo Advertiser reports that “a popular art class program has found a new home following the closure of a Castlemaine adult education provider earlier this year. Questions on the future of the Art Pathways program were raised after it was announced that Castlemaine Continuing Education was entering voluntary redundancy in January.”
Entertainment
Fringe World Perth artists ‘left with nothing’ after JumpClimb goes under
30 April 2018
The West Australian reports that “Fringe World artists have been left $200,000 out of pocket after the collapse of one of the companies behind some of the popular events. JumpClimb, which put on shows at Noodle Palace and Palace Society, blamed the economy, a downturn in ticket sales and the collapse of debtors for the shock decision to close its doors.”
The Bachelorette, bespoke bitcoin and Bon Scott: A very Aussie tale
13 April 2018
The Sydney Morning Herald reports that “The Bachelorette, a bespoke bitcoin and Bon Scott, the latest imbroglio enveloping tech and entertainment entrepreneur Ron Creevey has a very Australian flavour. Creevey has launched into the world of crypto currencies as he seeks to stave off bankruptcy proceedings that involve celebrity singer Sophie Monk.”
Blitz Publications goes into liquidation
5 April 2018
Mumbrella reports that “the publisher of Women’s Health and Fitness, Nourish and Australian Natural Health has gone into liquidation. Blitz Publications and Multimedia Group, which also publishes Muse, Gluten-Free Heaven, Natural Vegan and Blitz Martial Arts Magazine was liquidated on March 1, according to an insolvency notice.”
North America
Government
Puerto Rico board approves fiscal plan as governor vows defiance
20 April 2018
Yahoo 7 News reports that “Puerto Rico's federal oversight board on Thursday approved a fiscal turnaround plan that includes pension cuts and labor reforms that Governor Ricardo Rossello has vowed to defy, portending the latest potential court battle over the bankrupt U.S. territory's future.”
Retail
Mattel names board member as new CEO
20 April 2018
News.com reports that “Mattel Inc has announced board member and digital media executive Ynon Kreiz will replace chief executive officer Margaret Georgiadis, who is stepping down after only 14 months at the helm of the maker of Hot Wheels and Barbie dolls.”
19 April 2018
Business Insider reports that “the Bon-Ton Stores is on its way out. Just two months after it filed for Chapter 11 bankruptcy protection, the assets of the 100-year old department store chain – which owns multiple store brands including Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers – were purchased by two liquidation firms on Tuesday.”
Nine West and Bandolino to be sold
6 April 2018
BBC News reports that “Nine West Holdings is planning to sell its namesake footwear brand as it seeks to reorganise and reduce its debt under US bankruptcy law. The company said it expects to sell the Nine West and Bandolino shoe and handbag brands to Authentic Brands Group, owner of Frye and Juicy Couture.”
Health
ManorCare wins court approval to exit bankruptcy under landlord
14 April 2018
Yahoo 7 News reports that “no. 2 U.S. nursing home chain HCR ManorCare Inc won court approval on Friday for a plan to exit a $7.1 billion Chapter 11 bankruptcy by transferring ownership to its landlord, Quality Care Properties Inc. U.S. Bankruptcy Judge Kevin Gross in Delaware approved the prepackaged reorganization that will give Quality Care, with 10 employees and $318 million in annual revenue, control over ManorCare.”
Entertainment
Court approves procedures for auctioning Weinstein Co
7 April 2018
Yahoo 7 News reports that “a U.S. bankruptcy judge approved on Friday procedures for auctioning the film studio co-founded by Harvey Weinstein, who was fired by the company last year in the wake of allegations of sexual assault.”
Communications
U.S. top court suggests lower courts reconsider Tribune Co dispute
4 April 2018
Yahoo 7 News reports that “the U.S. Supreme Court on Tuesday disclosed that it was unable to decide whether to take up a bid by creditors of Tribune Co to recover payments made to public shareholders in an $8 billion 2007 buyout of the former publishing company, apparently because some the justices may recuse themselves from the case.”
Mining
Philadelphia Energy Solutions gets court nod over RINs burden relief
5 April 2018
Yahoo 7 News reports that “a federal bankruptcy judge approved a settlement on Wednesday between Philadelphia Energy Solutions and the U.S. Environmental Protection Agency allowing the refiner to shed a significant portion of financial obligation under the nation's biofuel laws.”
Europe
Manufacturing
Bavaria appoints interim administrator
26 April 2018
Marine Business reports that “German boat builder Bavaria Yachtbau GmbH has gone into self-administration and is currently looking for new investors to support its operations. Reports from Europe last week suggested the company had gone bankrupt following the withdrawal of financial support by US investors Oaktree Capital Management and Anchorage Advisors and the departure of the company’s CEO Lutz Henkel.”
Asia
Manufacturing
GM Korea reaches deal with unions, avoids bankruptcy
24 April 2018
Car Advice reports that “GM Korea and its trade unions have reached a preliminary agreement to keep the South Korean automaker alive, agreeing on significant concessions during last-ditch negotiations. The Yonhap news agency says the union has agreed to key demands from GM, including a wage freeze, reduced benefits, and a stop to bonuses for this financial year.”