WSJcomBankruptcyBeat

The bill for former bankruptcy judge Arthur J. Gonzalez’s probe into mortgage lender Residential Capital LLC’s dealings with its government-owned parent, Ally Financial Inc., could reach $36 million.

That’s the high estimate for the team of investigators and lawyers Gonzalez has assembled (which includes high-priced legal talent from Chadbourne & Parke and advisers from Mesirow Financial Consulting), according to bankruptcy filings.

Texas cheerleaders, hand over your pompoms.

As if Lon Morris College’s bankruptcy hasn’t done enough to sink school spirit at the two-year institution outside Dallas, its athletic department has agreed to sell off equipment to fund the survival of the hunter-green-and-white Bearcats.

Knight Capital Group Inc. told Wall Street brokers on Friday morning that the battered securities firm obtained a credit line that will allow it to operate for the day, The Wall Street Journal reports, citing people familiar with the matter.

LightSquared ‘s lenders says Philip Falcone ‘s Harbinger Capital Partners won’t hand over documents they are requesting as part of an investigation over whether they can pursue claims against Harbinger and the wireless satellite company. Read the Daily Bankruptcy Review story here.

The Internal Revenue Service brought in $53,000 from last week’s auction of Young Buck’s belongings, but the Internet is lighting up with the tax-delinquent rapper’s claims that he bought back some of the goods himself.