Bankruptcy Trends

Four hedge funds accused of insider trading in Washington Mutual Inc.’s bankruptcy case are appealing a ruling that denied confirmation of the company’s Chapter 11 plan and found they could be held to account to shareholders for alleged improper behavior. Read the Daily Bankruptcy Review article here.

Weighing legislation that would divert large corporate bankruptcy cases away from the two top courts that now handle most of that work, federal lawmakers heard testimony from an expert panel that largely countered the doomsday predictions from the legal community over the consequences of such a change.

There have been marquee retail bankruptices in recent months while housing-related businesses continue to stagger, but panelists at this year’s DBR Roundtable focused on a less-prominent distressed industry

New York hedge-fund manager Centerbridge Credit Advisors LLC is objecting to Lehman Brothers Holdings Inc.’s liquidation plan, saying among other things that some of its claims are being treated less favorably than they should be. Read the Daily Bankruptcy Review article here.

The European unit of Tokio Marine Holdings Inc., Japan’s biggest nonlife insurer, sought creditor protection in the U.S. to complete the wind-down of its London reinsurance business. Read the Daily Bankruptcy Review story here.