The Daily Docket: Bondholders Sue Dynegy Over Restructuring Deal

Marc Lasry’s Avenue Capital Group and other investors in the debt of distressed power producer Dynegy Inc. have asked a New York court to undo a restructuring engineered by shareholder Carl Icahn, calling the shake-up a fraud “unprecedented in the annals of corporate finance.” Read the Daily Bankruptcy Review story here.

Unsecured creditors of Perkins & Marie Callender’s Inc. want approval to launch a lawsuit against the restaurant chains’ prebankruptcy equity sponsor, New York private equity firm Castle Harlan Inc., with the creditors saying they want to sue because Perkins won’t. Read the Daily Bankruptcy Review Small Cap story here.

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Talks between Chrysler Group LLC and the United Auto Workers broke down this week over stark differences on pay for entry-level workers and health care costs, The Wall Street Journal reports.

A judge dismissed parts of a $198 million lawsuit against relatives of Ponzi scheme operator Bernard Madoff, but upheld most of the claims made by the trustee seeking money for his victims, The Journal reports.

Republicans are considering stripping funds from the program that provided more than $500 million in loan guarantees to bankrupt solar-energy panel maker Solyndra, reports WSJ’s Washington Wire.

The state-appointed receiver overseeing Central Falls, R.I., is due back in federal court for the latest hearing in the city’s bankruptcy case, reports the Associated Press.

Borders Group’s planned sale of intellectual property to competitor Barnes & Noble was delayed Thursday after a judge said privacy rights for 48 million customers must be clarified. Read it here in the Detroit Free Press.

The U.S. National Slavery Museum, founded in Virginia nearly a decade ago, filed for Chapter 11 bankruptcy protection on Wednesday, the Richmond Times-Dispatch reports.