The Daily Docket: ‘Old GM’ Creditors Back Chapter 11 Plan

Unsecured creditors have overwhelmingly voted to support the liquidation plan of General Motors’ bankruptcy estate, a proposal that will give those creditors an equity stake in the reorganized auto maker. Read the Daily Bankruptcy Review Story here.

Also in today’s DBR, DBSD North America Inc. has tweaked its sale agreement with Dish Network Corp.–including the removal of a crucial “no-shop” provision that creditors had objected to–ahead of a hearing on the $1.1 billion sale offer this week and a bankruptcy judge has set aside two weeks for a hearing to consider Tribune Co.’s Chapter 11 plan and a rival offering from investment firm Aurelius Capital Management, the company’s largest unsecured creditor. In DBR Small Cap, maritime transportation services company Korea Line Corp., whose tankers transport chemicals, gas and other products, filed for bankruptcy protection in a U.S. court amid a legal battle with one of its creditors.

(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.)

Debt-laden Centro Properties Group agreed to sell its 588 U.S. shopping centers to private-equity giant Blackstone Group LP for $9.4 billion in a deal that will allow Centro’s Australian operations to continue as a stand-alone company, The Wall Street Journal reports.

General Motors Corp. is pushing to speed up a restructuring at its European Opel operation, long an unprofitable quagmire for the auto maker and the missing link in its budding turnaround, according to WSJ.

WSJ reports hedge fund Aurelius Capital Management LP, known for its litigation-prone style of distressed investing, has found a new target: Energy Future Holdings Corp.

A much leaner Mesa Air Group is expected to emerge from bankruptcy this week with fewer than half the planes on its books than it had when it filed for bankruptcy reorganization just over year ago, the Arizona Republic reports.

The Australian unit of Lehman Brothers Holdings Inc. will defend itself at trial over the sale of collateralized debt obligations in a lawsuit filed by Australian towns and councils, Bloomberg reports.

Reuters says Dodd-Frank gives the U.S. government a tool to unwind the “too big to fail” firms at the core of 2008′s financial turmoil, but wielding it will take some courage.

Bernard Madoff, in an interview with New York magazine, talks about his Ponzi scheme and wonders if he’s a sociopath.