The Daily Docket: BMO Faces $24B Suit Tied to Petters Fraud

A new lawsuit seeks to hold M&I Bank, now owned by BMO Harris Bank, responsible for allegedly enabling Minnesota businessman Tom Petters to orchestrate a Ponzi scheme that cheated investors out of several billion dollars. The Wall Street Journal has the Daily Bankruptcy Review article here.

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Less than two months after entering Chapter 11 protection, Eagle Bulk Shipping Inc. won court approval Thursday morning of a bankruptcy-exit plan that cuts $975 million in debt from its balance sheet. WSJ has the DBR article here.

LightSquared blew through $81.4 million in August, and Philip Falcone’s wireless venture has now lost $1.6 billion since it filed for bankruptcy in May 2012, DBR reports via WSJ.

Switzerland’s financial regulator opened a bankruptcy case against the Swiss bank related to Portugal’s Espírito Santo Group, WSJ reports.

A group of lenders to LodgeNet—a hotel Internet and technology provider that filed for Chapter 11 bankruptcy last year and sped through the process in two months—are suing the reorganized company and other lenders, saying a subsequent restructuring is “intended to eviscerate” their rights under the company’s original bankruptcy-exit plan. Read the DBR article via Nasdaq.

Detroit’s hailing signs of progress in an economic recovery and had a “homecoming” even this week for it, WSJ reports.

According to Reuters, Detroit’s art museum said it would sue to prevent a sale of its collection if the city’s bankruptcy plan isn’t approved.

Write to Melanie Cohen at [email protected]. Follow her on Twitter at @MelanieLisa.