Spanish savings bank Caja de Ahorros del Mediterraneo (CAM) secured EU regulatory approval on Monday for 5.8 billion euros ($8.3 billion) in state aid and must submit a restructuring plan within six months, Reuters reported. State-backed bank restructuring fund FROB will provide a 2.8 billion euro capital injection to CAM, one of five Spanish banks which this month failed a European Banking Authority stress test. The fund will also give CAM a 3 billion euro liquidity facility, the European Commission said.

A number of food and drink companies owed money by Superquinn have said they could be facing cash flow difficulties within days, RTÉ News reported. Receivers have been appointed to the retailer, though a number of directors are reported to be planning an injunction to stop the receivership. Hundreds of suppliers are owed money by Superquinn- with some of the amounts running into millions of euro. Musgrave - which wants to buy Superquinn from the receivers - is finalising plans for a scheme to help suppliers experiencing losses as a result of the receivership.

Receivers are to take control of housebuilder McInerney on behalf of three banks owed €113 million after the Supreme Court yesterday ruled against a rescue plan for the business backed by US private equity fund Oaktree Capital, the Irish Times reported. The ruling ends the process that began last August when the High Court appointed Bill O’Riordan of PricewaterhouseCoopers as examiner to five of the group’s Irish firms, and lifts the protection from creditors given to the business at that point.

With a new €109 billion ($157 billion) bailout for Greece, European leaders broke from their recent string of slow-paced half-measures to launch a frontal attack on a debt crisis that threatens to engulf the troubled country, The Wall Street Journal reported. But the greatest test is still to come: Does Europe yet have the tools to block the crisis from spreading deep into the Continent's core?

Ailing Swedish carmaker Saab on Friday appeared to have fended off a demand for one of its units to be declared bankrupt when it reached a settlement with a supplier, Reuters reported. Shares in Swedish Automobile, Saab's Dutch parent which has a stock market value of 35 million euros ($50 million), plunged 40 percent on news of the bankruptcy request, but were trading flat by 1438 GMT after the settlement. However, the supplier's action highlights Saab's precarious situation.

European leaders have agreed to loan Greece more than $140 billion over the next three years and have broadened efforts to support weakened governments and banks in the region in what they hope will be a convincing response to a lingering financial crisis, The Washington Post reported. The measures approved in Brussels are meant to put Greece on a more sustainable footing and convince world markets that the country — and indeed every other nation that shares the euro as currency — will pay its debts.

The chief executive of Superquinn, Andrew Street, has resigned just two days after the company went into receivership and was sold to the Musgraves chain, RTÉ News reported. Receivers Kieran Wallace and Eamonn Richardson of KPMG were appointed by Bank of Ireland, AIB and National Irish Band - and the company had around €400m in debt. In an email circulated by Mr Street this morning, he said the banks had selected this process to secure the maximum amount of the sale proceeds for themselves.

Halliwells' administrators have launched a claim in the High Court against a group of former partners in a bid to reclaim more than £21m gained through a controversial 'reverse premium' property payout, LegalWeek.com reported. BDO launched the claim against Halliwells' former chairman Ian Austin and 31 other ex-partners in the Chancery Division of the High Court earlier this month (4 July). Addleshaw Goddard is advising BDO on the £21.13m claim, with litigation firm Peters & Peters acting for 30 of the 32 defendants.

The European Commission on Wednesday became the world's first authority proposing to adopt new international rules that will push banks to lend more conservatively and rely less on short-term borrowing that can disappear quickly in a crisis, Dow Jones Daily Bankruptcy Review reported. The proposal is the commission's plan to implement the Basel III regulations, finalized in December 2010 and negotiated in the Swiss city after which they are named.

German Chancellor Angela Merkel, under mounting pressure in and outside Germany to show stronger leadership in the euro-zone debt crisis, reached a late-night compromise with France over a fresh bailout for Greece ahead of a crucial European summit planned for Thursday, The Wall Street Journal reported.