Restructuring

The railway company that operated the train that derailed and exploded last month, killing 47 people and destroying part of a small town in Quebec, sought bankruptcy protection in the U.S. and Canada on Wednesday with the intention to sell the business. Read the Daily Bankruptcy Review article via The Wall Street Journal.

This week on The Broke and the Beautiful, rapper DMX filed for bankruptcy protection. Also, Teresa and Joe Giudice of Bravo’s “The Real Housewives of New Jersey” were charged with fraud, and fellow New Jersey “Real Housewives” star Danielle Staub settled a fraudulent-claims lawsuit.

The lawyers who’ve tried to calm the storm surrounding Girls Gone Wild have reached a deal with casino kingpin Steve Wynn, whose attempt to squeeze more than $30 million out of the adult-entertainment producer’s companies led them to file for bankruptcy earlier this year.

But not so fast, says Tamara Favazza, who is owed nearly $6 million from a lawsuit she filed after she was exposed in one of the company’s DVDs, according to papers filed with the U.S. Bankruptcy Court in Los Angeles.

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.

Dish Network Corp. Chairman Charlie Ergen stands to make hundreds of millions of dollars in profits personally if Dish’s bid for wireless telecommunications firm LightSquared succeeds, court records and people familiar with the situation say.