WSJcomBankruptcyBeat

A Birmingham, Ala., judge ruled that Jefferson County can move forward with its Chapter 9 bankruptcy case—the largest municipal case in U.S. history—against the efforts of big Wall Street banks that argued that it should be thrown out because of fine print in Alabama state law. Read the Daily Bankruptcy Review article via The Wall Street Journal.

Lehman Brothers Holdings Inc. is locked in a high-stakes battle with its former Swiss derivatives subsidiary over billions of dollars in guarantees and intercompany loans, a legal dispute that threatens to delay recoveries for creditors who have been waiting more than three years to be paid following Lehman’s collapse. Read the Daily Bankruptcy Review article here.

Writing from prison, Lee Farkas is asking the federal government not

Hostess Brands Inc. is defending its bid to shed its pension plans and cut back on benefits for its unionized employees, saying it’s the only way for the company to survive its current trip through bankruptcy. Read the Daily Bankruptcy Review article here.

The U.K. Supreme Court said Wednesday that billions of dollars in client cash belongs to customers of Lehman Brothers Holdings Inc.’s U.S. brokerage whether it was properly segregated or not, a win for customers of Lehman’s U.S. unit and the trustee winding down the business. Read the Daily Bankruptcy Review article via The Wall Street Journal.