Beyond Bankruptcy

Cengage Learning Inc.’s unsecured creditors are accusing the company’s first-lien lenders, including current equity owner Apax Partners L.P., of orchestrating a “value-grabbing effort” to deleverage the company and capture all its value at the expense of other creditors. Read the Daily Bankruptcy Review article here.

MF Global Holdings Ltd. has struck a deal with J.P. Morgan Chase & Co. that calls for the bank to pay MF Global a portion of what the bank recovers in the case, a settlement that MF Global’s administrator says avoids “years of costly and complex litigation.” Read the Daily Bankruptcy Review article here.

This week on The Broke and the Beautiful, boy-band mogul Lou Pearlman’s investors will soon start voting on a repayment plan, and the Backstreet Boys are back in court to defend claims against Mr. Pearlman. Also, the former Versace mansion is headed for a bankruptcy auction.

A U.S. appellate court on Monday upheld a lower court’s decision to dismiss a lawsuit by retirees of Lehman Brothers Holdings Inc. that sought to hold the company’s directors, including former Chief Executive Dick Fuld, accountable for squandering their retirement savings on stock that was rendered worthless when the investment bank collapsed into bankruptcy. Read the Daily Bankruptcy Review article here.

Tribune Co. plans to split its publishing business and its broadcast arm, following in the footsteps of companies like News Corp ., The Wall Street Journal reports.