Chapter 9

The team unwinding Lehman Brothers Holdings Inc. has reached a $767 million settlement with Freddie Mac, which will result in Lehman Brothers releasing hundreds of millions of dollars more to customers. Read the Daily Bankruptcy Review article via MoneyBeat.

First Mariner Bancorp, the holding company for Maryland community bank 1st Mariner, filed for Chapter 11 bankruptcy Monday in order to sell its bank subsidiary. Read the Daily Bankruptcy Review article via The Wall Street Journal.

A government watchdog wants to investigate the ties between Freedom Industries Inc.’s bankruptcy lawyers and key parties in its Chapter 11 case, including the company that acquired Freedom shortly before the chemical spill that tainted the water supply of a large swath of West Virginia. Read the Daily Bankruptcy Review article here.

When Freedom Industries Inc.

Stockton, Calif., residents who are trying to prevent their animal shelter from prematurely euthanizing abandoned cats and dogs have made it past a key legal hurdle: the city’s bankruptcy case.