The European Commission, the EU's executive arm, says Belgian-French financial services group Dexia's restructuring plan could distort competition and does not guarantee recovery for the group, Reuters reported. The Commission said certain measures the group had proposed could distort competition, and questioned whether Dexia would be able to obtain sufficient long-term funding.

Zinc companies in Peru, the world’s third-largest producer, will look to sell more concentrates overseas after the government said smelter Doe Run Peru may file for bankruptcy, according to a creditor, Bloomberg reported. A bankruptcy may take months to complete, said Carlos Galvez, chief financial officer of precious metals producer Cia. de Minas Buenaventura SA, a Doe Run Peru creditor. Doe Run, a unit of Renco Group Inc., may file for bankruptcy to restructure about $156 million of debt, Energy & Mines Minister Pedro Sanchez Gamarra said yesterday.

Nationalised lender Northern Rock today announced a 24 per cent jump in half-year losses and warned rising unemployment could pile further pressure on its mortgage book, The Northern Echo reported. The Newcastle-based company posted a pre-tax loss of £724.2 million for the six months to June 30, compared to £585.4 million for the same period last year as the amount of loans turned sour tripled. Northern Rock - which was taken into public ownership in February 2008 - said impairment charges on bad loans rose to £602.2 million and expected that figure to be similar in the second half.

British clothing and footwear retailer JD Sports Fashion Plc said on Tuesday it has further diversified its business with the acquisition of rugby brand Canterbury for 6.5 million pounds ($11.01 million). JD said it purchased the key trading assets and trade of Canterbury Europe Limited along with the global rights to the Canterbury and Canterbury of New Zealand brands, which are over 100 years old, from the firm's administrators.

A unit of Russian residential developer PIK Group, which is in debt to the tune of $1.3 billion and engaged in lengthy restructuring talks, faces a bankruptcy lawsuit, court filings showed on Monday. Leasing Force has filed the bankruptcy lawsuit against OOO PIK Development in the Moscow Arbitration Court, the court database showed. A PIK spokeswoman declined to comment, saying the company had not fully examined the court filing, Reuters reported.

The second richest man in Icelandic history has filed for bankruptcy, his spokesman said Friday, The Associated Press reported. Bjorgolfur Gudmundsson, the brewer-turned-billionaire and former owner of the West Ham soccer club, applied for bankruptcy protection at Reykjavik district court, 96 billion Icelandic kronur ($759 million) in debt, Asgeir Fridgeirsson said. It is the largest bankruptcy filing in Icelandic history.

The possible collapse of Liam Carroll’s €2.3 billion property empire will not derail the establishment of the National Asset Management Agency (Nama), according to the Department of Finance, the Irish Times reported. However, banking sources said the opposite. They warn that any significant insolvency will jeopardise the valuation model on which Nama is based.

British coffee retailer Coffee Republic said on Thursday its operating business had been bought out of administration by Arab Investment Ltd, a property firm best known for plans to build a London skyscraper, Reuters reported. Arab Investments said in a separate statement that it planned to expand the business, which currently includes 80 outlets -- around 60 in Britain and the rest in countries including Bulgaria and Saudi Arabia. Read more.

The European Commission Wednesday said it has started an investigation into a rescue package give to Latvia's JSC Parex Banka to ensure the aid will be followed by sufficient restructuring at the bank, Dow Jones reported. Parex was rescued from going bust by the Latvian State in November through state guarantees, liquidity support and cash injections. The Latvian state submitted a restructuring plan for Parex in May, and the commission is now looking at whether the plan will enable Parex to return to long-term viability without distorting competition.

Banks and lawyers are assessing new U.K. requirements that some senior managers and directors based outside Europe at companies with a "substantial" U.K. presence must pass a test to ensure the quality of management in the financial industry, The Wall Street Journal reported. They would also have to take on more responsibility for their U.K. operations within the next six months. The new rules devised by the Financial Services Authority require individuals employed outside Europe but with influence over a U.K.