Counter-terrorism officers at Scotland Yard, working alongside the FBI, launched Operation Challenge in which Mr al-Fawwaz, Mr Bary and another Egyptian, Ibrahim Eidarous, were arrested.

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Worse, the yard faced crippling working-capital shortages, because it never bothered to restructure its debt.

ECONOMIST: Shipbuilding

Scotland Yard said officers were working closely with Portuguese police and considering their next steps.

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