The Daily Docket: AMR Flies Into Bankruptcy

AMR Corp., the parent company of American Airlines, filed for Chapter 11 protection Tuesday, The Wall Street Journal reports.

A federal judge has ruled that the First Amendment doesn’t bar investors from suing credit rating companies over losses on mortgage-backed securities issued by failed lender Thornburg Mortgage Inc., a blow to firms that had argued their ratings were protected. Read the Daily Bankruptcy Review article here.

At the demand of the U.S. Department of Energy, financially struggling Beacon Power Corp. agreed to sell its flagship grid-electricity storage plant outside Albany, N.Y. in an effort to pay off a $43 million loan that was guaranteed by the DOE. Click here to read the article in DBR Small Cap.

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According to the Associated Press, AMR’s bankruptcy shouldn’t affect American Airlines passengers.

A judge on Monday gave the trustee unwinding MF Global Holdings Ltd.’s brokerage permission to reject the leases on at least a half-dozen U.S. offices. Read the DBR article via WSJ.

According to Bloomberg, former MF Global Chief Executive Jon Corzine bet $11.5 billion on sovereign debt in Europe to try to make a profit for the company.

DealBook notes that about $200 million in customer money that disappeared has reappeared in Britain at J.P. Morgan Chase & Co.

Jefferson County, Ala.’s bankruptcy filing has caused a stir in the municipal-bond market, WSJ reports.

The trustee in boy-band guru Lou Pearlman’s bankruptcy case hasn’t been able to recoup money for victims, the Orlando Sentinel reports.

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