The Daily Docket: Appeals Court Reinstates Sanctions Against Foreclo...

A federal appeals court has reinstated sanctions against a New Jersey law firm and attorney for attempting to foreclose on a suburban Philadelphia couple using “robo-produced” mortgage data that was fraught with errors. Read the Daily Bankruptcy Review story here.

Fearful that key executives could defect from Sbarro Inc. during a crucial time in its restructuring process, the pizza chain is seeking to reward seven of them with a bonus pool of up to nearly $2 million. Read the Daily Bankruptcy Review Small Cap story here.

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Former Lehman Brothers Holdings Inc. Chief Executive Richard Fuld and other directors and officers are seeking the release of $90 million in insurance funds to settle a potential multibillion-dollar lawsuit brought by shareholders of the failed investment bank. Read the Daily Bankruptcy Review story here in The Wall Street Journal.

Harrisburg, the financially strapped capital of Pennsylvania, will likely miss a bond payment next month if a deal to obtain $7.5 million in borrowed cash falls through, the Journal says.

The bankruptcy of Mexicana de Aviacion has created an opening for airlines looking to fly passengers between the U.S. and Mexico, according to WSJ.

The liquidator of Bernard Madoff’s firm sued the National Bank of Kuwait SAK in one of five lawsuits demanding return of about $95 million in funds withdrawn from a so-called feeder fund to the Ponzi scheme, reports Bloomberg.

Speaking of Bernie, “Chasing Madoff,” a documentary opening in theaters on Friday, chronicles Harry M. Markopolos’s efforts to expose Madoff’s fraud, according to DealBook.