Chemtura Corp. has struck a deal to avoid bankruptcy-court litigation over claims tied to the pension plan covering hundreds of its United Kingdom workers, which faces a funding deficit of more than $150 million, Dow Jones Daily Bankruptcy Review reported. The maker of specialty chemicals, agrochemicals and consumer products, which emerged from Chapter 11 protection last week, said the deal preserves its right to dispute the pension claims outside of bankruptcy court, which it has sought to do for months.

Pressure mounted on Ireland on Wednesday to agree to a joint European Union-International Monetary Fund rescue package, as fresh evidence emerged of fading confidence in the country’s banking system, the Financial Times reported. With the rescue mission poised to begin negotiations with the Irish government on Thursday, analysts said there was growing evidence that bank deposits were dwindling, after Irish Life & Permanent said corporate customers had withdrawn €600m – more than 11 per cent of the total – over a matter of weeks in August and September.

Anglo Irish Bank is seeking summary judgment for more than €17 million against a Dublin businessman over unpaid loans, the Irish Times reported. The case arises from two loan facilities – the first, for a maximum £5.75 million, was made available by Anglo in October 2008 to Mr Healy, while the second, for €10.8 million, was made available in May 2009. The 2008 facility was to enable Mr Healy to fund an equity investment in Calyx Holdings Ltd (CHL), a company set up to acquire Clayfox Gilttop Ltd.

Iceland's business lobby said on Tuesday it had seen the outline of a draft deal on repaying Britain and the Netherlands and that it was much improved from one rejected by voters in March, Reuters reported. The head of the business lobby spoke after an Icelandic television station reported that a draft deal had been reached which would involve Iceland repaying 40-60 billion Icelandic crowns ($356-533 million) to the British and Dutch.

Insolvent U.K. maintenance and building services group Rok PLC's administrator PricewaterhouseCoopers Tuesday announced a further 1,800 layoffs, in the firm's maintenance and improvements division, Dow Jones Daily Bankruptcy Review reported. PwC said its construction and social housing division in England remains unaffected as it continues to pursue a sale of this part of the business.

Senior European officials laid the groundwork for a bailout of Ireland that could reach €100 billion ($136 billion), saying experts would travel this week to Dublin to examine the country's finances amid alarm about the dire straits of the Irish banking system, The Wall Street Journal reported. Several euro-zone countries urged Ireland to adopt an aid package, according to people familiar with the matter, and some pressed for the package to include direct loans from the U.K. alongside assistance from Europe and the International Monetary Fund.

A decision in proceedings taken by a US bankruptcy trustee involving Anglo Irish Bank chief executive David Drumm was adjourned yesterday to allow the judge time to consider matters, the Irish Times reported. Ms Justice Elizabeth Dunne reserved her decision on an application on behalf of Massachusetts trustee Kathleen Dwyer for an “order in aid” from the High Court to assist her in administering Mr Drumm’s bankruptcy. The judge said she needed time to consider the case. Mr Drumm filed for bankruptcy in Massachusetts on October 14th.

A receiver has been appointed over McNamara Construction, after Nama rejected the business plan put forward by the group, InsolvencyJournal.ie reported. The firm is owned by Bernard McNamara, who took over from his father Michael in the 1940s. One of the company’s big breaks was the construction of RTÉ’s sports and social club on its Donnybrook campus. Other state contracts followed. It soon became one of the biggest construction companies in the state.

The European Union will give state-controlled German lender WestLB AG more time to create a new restructuring plan as it continues to investigate the bank's use of state aid, the EU's competition chief said Monday. German Finance Minister Wolfgang Schaeuble told journalists that Berlin is prepared to make difficult decisions regarding WestLB. "We are ready to do it and use the next three months to find solutions," he said.

As the European Union attempts to force it to accept an aid package, Ireland’s government is close to being unable to sell its debt on the open market, a fate that befell Greece last spring, the Financial Times reported. Bond spreads in Spain, Italy and Portugal are also rising, with the Portuguese finance minister warning on Monday that his country may have to accept a rescue package too. In the short term the EU will kick the can down the road via a temporary Irish bail-out, just as it did with Greece. It is likely to do the same with Portugal.