The Daily Docket: Alabama Says Munis Can Enter Bankruptcy

Alabama’s top court ruled that the state’s struggling cities and counties have the power to file for Chapter 9 bankruptcy protection, a decision that largely frees the state’s most populous metropolitan area to move ahead with its five-month-old bankruptcy case. Read the Daily Bankruptcy Review article here.

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MF Global Holdings Ltd. customers want regulators to crack down on J.P. Morgan Chase & Co. about money than disappeared right before the firm filed for bankruptcy protection, The Wall Street Journal reports.

Bloomberg reports on bondholders of MF Global who felt duped by executives into investing $650 million.

American Airlines is scheduled to go to court in Manhattan Monday, the Fort Worth Star-Telegram reports, and will make opening statements in a hearing aimed at trying to get rid of union contracts.

CBS gives a transcript of “The Case Against Lehman,” an investigation into the company’s collapse that aired on newsmagazine 60 Minutes Sunday.

According to Reuters, Parmalat founder Calisto Tanzi’s 18-year jail sentence got cut by two months. Tanzi headed an $18.5 billion collapse of the dairy-products company.

WSJ profiles Josh Gotbaum, the director of the Pension Benefit Guaranty Corp. Gotbaum has been vocal in American Airlines parent AMR Corp.’s bankruptcy case.

DealBook profiles Martin J. Bienenstock, who’s made a name for himself as one of the most prominent bankruptcy lawyers in the U.S.

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