Oaktree Capital Management LP is willing to give up its fight for control of Almatis BV, a bankrupt aluminum maker, for full payment of its loans and an end to threatened legal action, according to a "confidential" court filing on Monday, Reuters reported. In a letter dated July 27 to an Almatis lawyer, Oaktree's lawyer outlined six conditions for ending Oaktree's battle with Dubai International Capital LLC over the European aluminum company.

Property group Highstreet has agreed to a compromise on rents with insolvent retailer Karstadt, a move which will help investor Nicolas Berggruen rescue the department store operator, according to German daily Bild am Sonntag, Reuters reported. A disagreement on store rents had prevented Berggruen from striking a deal with the highstreet consortium, which consists of Goldman Sachs, Deutsche Bank and Pirelli Real Estate. Highstreet had warned Berggruen that Karstadt, which owns the famous KaDeWe department store in Berlin, could still be liquidated if an accord on rents did not emerge soon.

European regulators have accused Germany and its banks of reneging on a deal to publish full details of sovereign debt holdings, as part of the four-month-long stress test exercise of the country’s banking sector.

The stress test conducted on nationalized German lender Hypo Real Estate uncovered a possible capital shortfall of €2 billion ($2.59 billion) under adverse circumstances, people familiar with the matter said Tuesday, The Wall Street Journal reported. Hypo Real Estate is thus the first bank to appear to fail a test of its soundness conducted by the Committee of European Banking Supervisors, which also is reviewing the health of 90 other major banks. However, analysts said the result is far from surprising and says little about how the overall process will play out.

The representatives of potential Karstadt investor Nicholas Berggruen and Germany's Valovis Bank said Tuesday they have agreed on the conditions for a rental agreement over 53 Karstadt properties, further paving the path for Berggruens takeover of Karstadt following weeks of negotiations, Dow Jones Newswires reported. Now there is agreement on all essential points of the rental contract, Berggruen Holdings and Valovis said.

Germany's economy is growing. Global exports are booming. The euro is recovering. What's not to like? Plenty, according to a survey of German banks. Fully 60 percent fear that the euro crisis will worsen and jeopardize economic growth, Spiegel Online reported. According to the semi-annual "Bank Barometer" survey carried out by Ernst & Young in Germany, which was released on Thursday, only 39 percent of the 120 banks surveyed feel that the situation on the financial markets will improve in the next six months. In December, 65 percent thought it would.

Bankrupt German aluminum maker Almatis BV is considering a new refinancing proposal from its owner Dubai International Capital LLC, but Almatis senior debtholder Oaktree Capital Management urged the judge to stick to the original reorganization plan, Reuters reported. In a letter dated Wednesday to Judge Martin Glenn, who is overseeing the case, Almatis' attorney said he had received a proposal from Dubai International Capital, or DIC, to pay off the company's senior debt in full.

A group of bondholders representing the debt of insolvent German retailer Karstadt's properties has called a special meeting in London for July 28 to discuss some of the terms of the takeover offer for Karstadt proposed by billionaire investor Nicholas Berggruen, according to a notice from the group reviewed by Dow Jones.

Chancellor Angela Merkel roundly rebuffed U.S. President Barack Obama's call for Germans to aid the global recovery by spending more and relying less on exports, even as she warned that Europe's own financial crisis is far from over. In an interview with The Wall Street Journal in her Berlin chancellery, an unapologetic Ms. Merkel said the nations that share the beleaguered euro have merely bought some time to fix the flaws in their monetary union.

The chief executive of General Motors Co.'s Adam Opel GmbH division, Nick Reilly, said he wants to complete almost all of the planned restructuring measures by the end of this year in a bid to turn around the business as soon as possible, Dow Jones reported. Thanks to the revamped Meriva and Astra models, Opel's market share in the second half of the year is expected to rise to slightly more than 9% from currently just under 9%, Reilly said.