The Daily Docket: ‘No’ On Chapter 11 Plan Roils Washington Mutual Ca...

Washington Mutual Inc. is looking at trouble Thursday when it makes its third attempt to get its $7 billion Chapter 11 plan confirmed, thanks to a significant “no” vote by preferred shareholders. Read the Daily Bankruptcy Review article here.

Energy Conversion Devices Inc., a pioneering Michigan-based solar-technology company, filed for bankruptcy protection Tuesday with a plan to slash its debt and sell its business at a court-supervised auction. Read the DBR Small Cap article via The Wall Street Journal.

(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC, click here.)

The bankruptcy trustee winding down Thornburg Mortgage has agreed to settle for $6.5 million a lawsuit against the company’s former executives and its outside legal firm that alleged they engaged in a conspiracy to secretly use the failed mortgage company’s employees and assets to launch a new company. Read the DBR article via American Banker (sub req).

MF Global Holdings Ltd. bankruptcy trustee Louis Freeh said he’ll give investigators papers involved with the firm’s final days, WSJ reports.

The Street puts five energy companies’ stocks on bankruptcy watch.

According to WSJ, Vedanta Resources PLC’s Sterlite Industries Ltd. unit said a bankruptcy court rejected its claim for a $50 million refund.

Bloomberg profiles Avenue Capital founder Marc Lasry.

Also according to Bloomberg, Jefferies Group Inc. wants to spread the risk of a $190 million loan to Harbinger Capital Partners LLC by saying it will default if Harbinger’s Phil Falcone is indicted for fraud.

The New York Times’ Paul Krugman balks at those denying the importance of Lehman Brothers Holdings Inc.’s stock.

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