WSJcomBankruptcyBeat

This week on The Broke and the Beautiful, the Los Angeles Dodgers have scored a new owner in basketball superstar Magic Johnson. Also, Dolby is making noise about acquiring naming rights to the former Kodak Theatre.

When charter-air servicer Direct Air suddenly canceled service and filed for bankruptcy earlier this month, it left many customers stranded and frustrated. But there did seem to be some good news—customers would be able to get unused ticket refunds because the Department of Transportation required Direct Air to hold customer payments in escrow until it hands the money to the actual airplane operator. (Direct Air is a charter service that doesn’t actually own any airplanes).

Howrey LLP’s former top dogs could face lawsuits in the defunct law firm’s bankruptcy.

The Am Law Daily dug up court filings disclosing “an extensive review” of one ex-partner’s emails for the purpose of investigating “whether the estate has claims against members of the dissolution committee” related to the actions they took when winding down the once-prestigious firm.

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A House subcommittee said a top lawyer at J.P. Morgan Chase & Co. will testify at a highly anticipated hearing Wednesday into the collapse of MF Global Holdings Ltd. Read The Wall Street Journal story here.