Chapter 9

The battle over Jefferson County’s hospital for the poor has spilled over into its Chapter 9 bankruptcy case, illuminating another financial hardship facing Alabama’s biggest county.

Against threats that the 319-bed facility may one day close, a patient of Cooper Green Mercy Hospital has asked the county’s bankruptcy judge to protect the stream of money that is supposed to flow to the facility.

Jefferson County, Ala., is worried that it could be exposed to another multimillion-dollar debt on a lawsuit with Wall Street bond insurers. Read the Daily Bankruptcy Review article via The Wall Street Journal.

The Alabama lawyer and lawmaker whose stand against racism inspired a leading character in the novel “To Kill A Mockingbird” may have also laid the foundation for a major headache in Jefferson County’s bankruptcy case.

Lehman Brothers Holdings Inc. is locked in a high-stakes battle with its former Swiss derivatives subsidiary over billions of dollars in guarantees and intercompany loans, a legal dispute that threatens to delay recoveries for creditors who have been waiting more than three years to be paid following Lehman’s collapse. Read the Daily Bankruptcy Review article here.

A company controlled by real-estate mogul Donald Trump is set to buy the Doral Golf Resort & Spa in Miami out of Chapter 11 protection and prepare it for a massive renovation after no other bidders stepped up to challenge its $150 million offer for the iconic resort. Read the Daily Bankruptcy Review article here.