Headlines

Family members of bankrupt businessman Seán Quinn are to seek to remove a receiver appointed over their personal assets and his lawyers amid claims over a possible conflict of interest, the Irish Times reported. The Commercial Court will hear an application from seven members of Mr Quinn’s family on October 9th to have the receiver, Declan Taite of accountancy firm RSM Farrell Grant Sparks, and his solicitors Arthur Cox discharged.

Debt-laden British retailer JJB Sports Plc said on Monday it was appointing administrators to sell its assets and brands after failing to receive an offer for the entire company, threatening thousands of jobs. A familiar sight on Britain's high streets with about 180 stores and 4,000 employees, JJB has been battling falling sales and stiff competition from larger rival and aggressive discounter Sports Direct International Plc. Sports Direct is seen as a potential bidder for some JJB stores.

Portugal’s prime minister will meet trade unions and employers on Monday to discuss alternative austerity measures after mass protests forced him to ditch a contentious plan that would have cut workers’ pay to finance a reduction in companies’ costs, the Financial Times reported. Following a furious public backlash against tougher austerity, Pedro Passos Coelho faces the difficult task of convincing labour leaders and recession-hit employers that further spending cuts and tax increases are needed to keep Portugal on track with its €78bn bailout programme.

Greece should be allowed more time to meet deficit targets set by international lenders provided it is sincere about reforming its economy, French Prime Minister Jean-Marc Ayrault said on Sunday, Reuters reported. Near-bankrupt Greece needs the European Union and International Monetary Fund's blessing on spending cuts worth nearly 12 billion euros ($16 billion) to unlock its next tranche of aid, without which it faces default and a potential exit from the euro zone. "The answer must not be a Greek exit from the euro zone," Ayrault said in an interview with news website Mediapart.

Euro zone states are preparing to allow the bloc's permanent bailout fund to leverage its capital in the same way as its predecessor so it can reach a capacity of more than 2 trillion euros and rescue big countries if necessary, Der Spiegel said on Sunday, Reuters reported.

Europe’s banks are on track to dispose of €20bn worth of loans backed by offices, shops and hotels this year as lenders across the continent race to reduce exposure to the volatile real estate sector ahead of tough regulatory changes, the Financial Times reported. Banks, including Lloyds, Santander and the Bundesbank, have already sold portfolios worth €7.5bn during 2012. Activity is set to accelerate though, with lenders working on offloading another €11bn before the end of the year, according to data from CBRE, the property services group.

Mobile phone operator PT Telekomunikasi Seluler (Telkomsel) is upbeat that it will win a Supreme Court appeal against a lower court ruling that declared the firm bankrupt for debt nonpayment, The Jakarta Post reported. “The company is optimistic because it has a strong position and a healthy financial performance,” Muhtar Ali, a member of Telkomsel’s legal team, said.

The US hedge funds Apollo and Oaktree, investment bank Goldman Sachs and Nine Entertainment begin talks on Monday and Tuesday that will decide whether the television group gets new owners quickly or slides into the purgatory of receivership, The Sydney Morning Herald reported. Nine convened the meeting to try and resolve a stand-off between the hedge funds, which own most of Nine's $2.7 billion senior debt, and Goldman, which manages investment funds that own about 80 per cent of Nine's lower-ranking $1.1 billion tranche of mezzanine debt.

EU authorities are working behind the scenes to pave the way for a new Spanish rescue programme and unlimited bond buying by the European Central Bank, by helping Madrid craft an economic reform programme that will be unveiled next week, the Financial Times reported. According to officials involved in the discussions, talks between the Spanish government and the European Commission are focusing on measures that would be demanded by international lenders as part of a new rescue programme, ensuring they are in place before a bailout is formally requested.

Prime Minister Mario Monti may have saved Italy from ruinous default but the growth potential of Europe's most sluggish economy is as weak as ever, and that means prospects for lasting debt reduction remain fragile, Reuters reported in an analysis. Thanks to his decisive austerity measures and personal credibility, the economist and former European commissioner has put Italy back at the centre of European decision making and helped to lower its borrowing costs.