Italy`s government said Wednesday it had given the go-ahead for the ailing national flag-carrier Alitalia to be sold to a group of investors for around one billion euros.

Italy`s failing flagship airline Alitalia has delayed a decision on a foreign partner until the end of the year, the Radiocor news agency reported Wednesday.

The investor group Italian Air Company (CAI) poised to take over the airline could not be reached for comment on the report.

Troubled Italian airline Alitalia`s debts have soared to some 2.3 billion euros, the company`s special administrator said Sunday as a pilot and air crew strike caused a seventh day of cancelled flights.

Augusto Fantozzi told RAI television he had `around two billion in ordinary debt for the supply of goods and services,` before taking into account a 300-million-euro government loan.

NEW YORK, Aug 3, 2007 (AFP) - American Home Mortgage, one of the country's biggest mortgage companies, ceased new business Friday and blamed its woes on the stricken US housing market and a related credit crunch.

Numerous mortgage lenders have gone out of business in recent months, but American Home Mortgage is one of the largest to be hit by problems. It minted 59 billion dollars in loans last year, up from 45 billion in 2005.

NEW YORK, Aug 3, 2007 (AFP) - American Home Mortgage, one of the country's biggest mortgage companies, said it would cease business Friday as it becomes one of the latest casualties of a widespread housing downturn.

In a statement late Thursday, American Home Mortgage said it had stopped taking new home loan applications and had notified its employees they would be laid off Friday.

'The company employee base will be reduced from over 7,000 to approximately 750,' the distressed mortgage lender said.