A committee overseeing the remains of Icelandic lender Glitnir Banki Hf has sued several former bank officials and affiliated investors in the United States to recover more than $2 billion, Reuters reported.

Terra Firma Capital Partners Ltd. has succeeded in its quest to raise GBP105 million ($156 million) to stave off a bank foreclosure on EMI Group, people familiar with the situation said, giving the private-equity firm leverage in its battle with lender Citigroup Inc. over the fate of the legendary music company, Dow Jones Daily Bankruptcy Review reported. EMI has until Friday to inform Citi that it has come up with the cash necessary to stave off default in mid-June.

The European Union agreed on an audacious €750 billion ($955 billion) bailout plan in an effort to stanch a burgeoning sovereign debt crisis that began in Greece but now threatens the stability of financial markets world-wide, The Wall Street Journal reported. The money would be available to rescue euro-zone economies that get into financial troubles. The plan would consist of €440 billion of loans from euro-zone governments, €60 billion from an EU emergency fund and €250 billion from the International Monetary Fund.

European companies have written off debt of €300bn ($383bn) – equivalent to the total debt of Greece – in the past 12 months because of late payment, imperilling many small companies, according to an authoritative study out today, the Financial Times reported. Research by Intrum Justitia, a Swedish credit management company, has found that the amount of written-off debt has increased by 8 per cent since last May. Small companies play a bigger role in Europe’s economy than in other regions in the world and the number of bankruptcies is increasing even as growth returns.

Computer chip maker Qimonda North America Corp. is suing its German parent in Delaware bankruptcy court over the parent's bid to recoup more than $1.5 billion in intercompany debts from its North American affiliates, Dow Jones Daily Bankruptcy Review reported. In a lawsuit filed Wednesday, Qimonda North America said that its corporate parent, Qimonda AG, stripped its North American unit of cash and assets in exchange of "near worthless" notes while loading up its struggling Virginia-based subsidiary with hundreds of millions of dollars in loans it knew it wouldn't repay.

Asset management company Goldsmith Capital Partners is interested in Metro's department store chain Kaufhof, which the German retailer is trying to sell. A spokesman for Goldsmith said on Friday that the company had been interested in Kaufhof for quite some time, Reuters reported. He declined to confirm a report by German newspaper Lebensmittelzeitung that Goldsmith had already made an offer for Kaufhof. Metro said it would neither confirm nor deny names of interested investors. Goldsmith Capital Partners, founded in 2007 by investor Clemens Vedder, started the hedge fund Blacksmith.

How will we catch something so virulent from as far away as Greece? In the same way as we caught our last economic illness, through an intensely integrated international financial system, The Independent reported in a commentary. British banks have lent money to Greece, both to her government and to private companies and individuals, but not that much in the big scheme of things – perhaps $15.4bn (£10.4bn), according to the Bank for International Settlements. But the European banks own much more.

European leaders, pressured by sliding markets and doubts over their ability to act in unison, agreed on Sunday to provide a huge rescue package of nearly one trillion dollars in a sweeping effort to regain lost credibility with investors, The New York Times reported. After more than 10 hours of talks, finance ministers from the European Union agreed on a deal that would provide $560 billion in new loans and $76 billion under an existing lending program.

The number of people in England and Wales entering into insolvency rose to a new high in the first three months of the year, figures from the Insolvency Service showed today. A total of 35,682 people became insolvent during the period, equal to 566 people a day. This was the fifth consecutive quarter during which the total has hit a record level, as increasing numbers of consumers struggle to keep up with their debts, The Guardian reported. But there was better news on the corporate front, with total company liquidations falling by 4% compared with the previous quarter to 4,196.

Barclays Plc, in the midst of a bitter fight with Lehman Brothers Holdings Inc. over claims it received a secret multibillion dollar windfall when it purchased some of the investment bank's assets, is suing a group of Lehman's former private-equity real-estate funds now controlled by a real-estate investment firm, Dow Jones Daily Bankruptcy Review reported. In a lawsuit filed Wednesday in Lehman's bankruptcy case, Barclays says PCCP Mezzanine Recovery Partners II owes its wealth management business $16 million in unpaid management fees.