Hedge Funds

While restructuring professionals have proposed some interesting changes to the bankruptcy code, it’s also striking what their 370-page report leaves out. Here are some hot topics in the bankruptcy world that wouldn’t be affected:

Distressed-Debt Trading

Teen clothing retailer Delia*s Inc. will file for bankruptcy and shut down after it couldn’t find a merger partner or another source of money to survive after years of steady losses, The Wall Street Journal reports. The retailer’s shelves could start emptying as early as Friday in going-out-of-business sales.

Next Monday at a law office in Wilmington, Del., vitamin maker Natrol Inc. will auction itself off. ICV Partners is offering approximately $90 million for Natrol, but other bidders can top that at the auction.

The California company filed for Chapter 11 bankruptcy protection in June, due to a dispute with lender Cerberus Business Finance LLC. The buyout firm had criticized the company’s management. Natrol lawyers said they “strongly disputed” the lender’s claims of mismanagement.

As cash quickly runs out to keep Atlantic City’s Trump Taj Mahal Casino Resort open, a bankruptcy judge refused to sign off on the outlines of a bankruptcy-exit plan for owner Trump Enterta

International treaties take years to complete as it is, so imagine the complexities at play in a hypothetical international insolvency treaty.

But at least people are starting to talk about it.