United Kingdom

A maker of sweet treats for Scots may face a sour fate. Confectioner New McCowans Ltd., which makes Highland Toffee bars, Wham chew bars and Bonbons chewy candies, has gone into administration, according to the BBC, The Wall Street Journal Bankruptcy Beat blog reported. In the U.K., a company that goes into administration must hand over control to an independent administrator who then works to find a way to pay creditors, often through a sale of the company.

Property tycoon Vincent Tchenguiz has reached a confidential settlement in his pursuit of damages from failed Icelandic bank Kaupthing, Reuters reported. London-based Tchenguiz -- one of Britain's best known real estate investors -- said trustees of his family trust and its Euro Group business vehicle had settled all civil claims filed against Kaupthing in July 2010 after the bank's winding-up committee refused to recognise the trust as a priority creditor following its October 2008 demise.

The regulatory fog engulfing senior bank debt thickened this week as the UK's Independent Commission on Banking (ICB) became the latest body to release proposals on how to make creditors liable for future bank losses, International Financing Review reported. Under the ICB's proposals, the pari passu link between senior creditors and depositors would be broken and outstanding debt would not be grandfathered, making it easier for senior debt to be bailed-in. The report is the latest in a string of global and national initiatives that have yet to be implemented.

Analysts are predicting a new wave of pre-pack administrations amid the increasingly grim conditions on Britain’s high streets, as debate rages over whether they are unfair to the competitors and trade creditors of companies that use them, the Financial Times reported. Carpet-maker Brintons and womenswear chain Jane Norman were both recently rescued via pre-packs, through which a company enters and leaves an administration process almost instantly.

A rise in Britons' expectations of the future rate of inflation will do little to strengthen the case for higher interest rates, but may deter some Bank of England policy makers from voting for a fresh round of stimulus, The Wall Street Journal reported. A survey conducted for the U.K. central bank published Thursday found inflation expectations for the year ahead rose in August to their highest level in three years.

Millions of public sector workers plan strikes and rallies nationwide in November over public-sector pensions, union leaders said on Wednesday, adding to pressure on a government struggling with rising unemployment and weak growth, Reuters reported. Unions are locked in a bitter row with the Conservative-led coalition over controversial plans to raise public-sector pension contributions as spending cuts bite. The dispute mirrors those in continental European nations where governments are trying to rein in spending.

British financier Guy Hands launched a new legal assault against Citigroup Inc., appealing to a U.K. court for documents that formed the basis of the bank's seizure of music company EMI Group from his private equity firm Terra Firma in February, Dow Jones Daily Bankruptcy Review reported. According to people familiar with the matter, Terra Firma on Tuesday petitioned the High Court for access to documents prepared by PricewaterhouseCoopers reflecting an analysis of the solvency of EMI, home to artists including the Beatles and Coldplay.

The U.K. economy has stalled, and by the end of next month it will be more or less the same size as it was the same time a year earlier. Bad news for British workers and businesses, and for Chancellor of the Exchequer George Osborne, The Wall Street Journal reported. He now faces some tough calls. At risk is at least one of the two forms of credibility that are needed if he is to repair the government's tattered finances. If he is lucky, he will find a way of saving both. The bold austerity program Mr.

A Stirling-based manufacturer of home insulation materials has been forced to restructure its debt after disappointing performance, the BBC reported. Superglass warned it would not be able to service its debt to Clydesdale Bank without a debt-for-equity swap it recently agreed with the lender. According to the trading update for the end of its financial year, debt has increased to £17.7m. Profit expectations are slightly down on the previous trading update in June. The first half of its financial year, to February, saw it break even.

The Halliwells partners facing a £21m High Court claim by the firm's administrators are set to enter mediation in an effort to avoid a lengthy court battle. BDO launched the claim in July against a group of 32 ex-partners - including former chairman Ian Austin - in a bid to reclaim more than £21m gained through a controversial 'reverse premium' property payout. The partners have agreed to enter mediation with the intention of settling the claim out of court, although the first meeting is unlikely to happen before the new year.