In December 1990, a banker reassesses a borrower that, at the time of its leveraged buyout eighteen months earlier, seemed to have such a promising future. Now the borrower is in severe financial distress. The tasks for the student are to evaluate competing proposals for restructuring the firm and to recommend a course of action for the bank. This is the second part of a two-case sequence. Students should not be exposed to the B case until they have finished discussing the A case (F-1012). A "stand-alone" version of this case is available as "Caledonian Newspapers Ltd. (Abridged)" (F-1011).