WSJcomBankruptcyBeat

A judge’s ruling Tuesday in the bankruptcy of Momentive Performance Materials Inc. has shaken up the distressed investing world. The decision in favor of the company allows it to force holders of secured bonds to accept repayment in new debt at below-market interest rates, something the funds that own the debt had argued against.

A bankruptcy trustee’s allegedly aggressive questioning of a debtor’s English-speaking skills is the subject of a complaint on file with a federal bankruptcy watchdog, a legal publication has reported.

The New York Law Journal Monday reported that consumer bankruptcy attorney William Ward Saxton filed a complaint against bankruptcy trustee John S. Pereira, accusing him of berating a debtor about her ability to understand English at a meeting in her bankruptcy case last month.

One of the groups of plaintiffs trying to sue General Motors Co. over economic losses relating to the massive recall tied to faulty ignition switches is asking the bankruptcy judge to allow its lawsuit to proceed. Read the Daily Bankruptcy Review story in The Wall Street Journal.