Chinese company buys stake in Teck Resources

TORONTO – Mining company Teck Resources Ltd. said Friday it is selling a 17 percent stake to China Investment Corp. for $1.5 billion in a bid to reduce its debt.

The Vancouver, B.C.-based company said CIC, the world’s largest commodity buyer, will buy 101.3 million class B voting shares. CIC will hold on to the stock for at least a year, the mining company said.

The proceeds from the private placement will go toward paying down nearly $10 billion in bank debt and will give the company a chance to forge a partnership with a major foreign investor, Teck’s chief executive said in a conference call.

“We will have a financial relationship with a very deep-pocketed investor who would potentially participate in future development projects,” said CEO Don Lindsay.

The sale, which is still subject to regulatory approval, is slated to close July 14.

Teck has been selling assets and cutting costs to pay down the debt.

Last month, Teck struck a deal to sell a one-third interest in its Waneta Dam in southeastern British Columbia to BC Hydro for $710 million.

Scrushy accused of hiding money offshore

Birmingham, Ala. – HealthSouth Corp. is accusing fired chief executive Richard Scrushy of hiding money in offshore bank accounts and transferring assets out of his name to avoid paying court judgments.

Documents filed Thursday by the Birmingham-based rehabilitation chain claim Scrushy has told people that he has some $600 million in accounts outside the United States. They asked a judge to freeze real estate assets that Scrushy has put in the name of others.

An attorney for Scrushy didn’t immediately respond to a message seeking comment.

A judge ruling in a shareholder lawsuit filed on behalf of HealthSouth has ordered Scrushy to pay $2.8 billion for his role in a massive fraud at the company. Scrushy denies any wrongdoing, but the judge found him liable anyway.

British Airways defers A380 deliveries

London – British Airways PLC announced Friday it will ground aircraft, slash seat numbers and postpone taking delivery of a dozen new Airbus A380 superjumbos as it faces a recession-driven decline in passengers.

The airline said it carried 2.93 million passengers in June, 5 percent fewer than in June 2008.

BA said that in response to the “challenging economic conditions” it was cutting its summer capacity by 3.5 percent, rather than the originally forecast 2.5 percent. Capacity for October through March 2010 is expected to be down by 5 percent.

The airline said it would ground three Boeing 757 aircraft in mid-2010, and three Boeing 747-400s the following winter.

BA also said it was postponing by an average of five months delivery of its first six A380s, the first of which is still due to arrive in 2012. Delivery of a second batch of six is being delayed by an average of two years, with the final plane due to arrive in 2016.

Tropicana emerges from bankruptcy

Las Vegas – Tropicana Las Vegas has emerged from Chapter 11 bankruptcy with new owners.

Toronto-based Onex Corp. and former MGM Mirage President Alex Yemenidjian acquired a majority stake in the Las Vegas hotel-casino this week, as it completed its yearlong bankruptcy process.

The new owners took over the property Thursday from the Las Vegas-based Tropicana Entertainment LLC.

The once-debt ridden casino emerged from bankruptcy with no debt, more than $10 million in cash and $75 million in commitments from its new owners and other equity holders to give the property some long-awaited upgrades.