Beyond Bankruptcy

National Envelope is seeking bankruptcy-court approval to sell its business to rival Cenveo Inc. for $25 million, while other buyers are stepping in to grab the envelope maker’s leftover assets. Read the Daily Bankruptcy Review article here.

When a company in Chapter 11 sells its business, a lot of work remains: evaluating claims, filing lawsuits, getting rid of leftover assets and, most importantly, paying creditors. But what happens when, as in the case of Lowe’s Cos.’ $205 million acquisition of Orchard Supply Hardware Stores, the buyer wants to keep the seller’s name? What do you call everything that’s left behind?

AMR Corp. is set to move ahead with a Thursday court hearing on a bankruptcy-exit plan based on its merger with U.S. Airways Group Inc., but the Justice Department’s antitrust lawsuit to block the tie-up adds great uncertainty to AMR’s Chapter 11 restructuring.

This week on The Broke and the Beautiful, Detroit’s problems are hitting the small screen, and “Real Housewives of New Jersey” stars Teresa and Joe Giudice were released on bond. Also, rapper DMX is getting a movie part.

Detroit’s bankruptcy judge has proposed to hold a trial in October for the city’s retirees and bondholders to argue that Michigan law blocks the city from using the power of bankruptcy to cut more than $18 billion in debt. Read the Daily Bankruptcy Review article here.