WSJcomBankruptcyBeat

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.

Cengage Learning Inc.’s unsecured creditors are accusing the company’s first-lien lenders, including current equity owner Apax Partners L.P., of orchestrating a “value-grabbing effort” to deleverage the company and capture all its value at the expense of other creditors. Read the Daily Bankruptcy Review article here.

If your law firm bailed out a partner from Dewey & LeBoeuf LLP as it sunk into bankruptcy, your firm might be getting subpoenaed soon.

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.