The Daily Docket: Borders Crosses Over to Liquidation

Borders Group Inc., the second-largest bookstore chain in the U.S., will liquidate after failing to garner offers to keep the company alive, The Wall Street Journal reports.

Nebraska Book Co. formally outlined its restructuring proposal Sunday, fulfilling a promise to creditors to stay on track for a speedy exit from Chapter 11. One of the nation’s largest college booksellers, Nebraska Book is swapping out $478 million of debt for new debt and equity through bankruptcy. Read the Daily Bankruptcy Review story here.

The owner of two off-campus student apartment buildings in Louisiana and Missouri won court approval to hand the buildings over to its lender in order to resolve a long-running dispute and close out its bankruptcy. Read the DBR Small Cap story here.

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A restructuring announced by Tribune Co. Monday could position the company to sell the Los Angeles Times, Deal Journal reports.

The chief administrator for the bankruptcy of home builders Levitt and Sons has recovered $105 million for the company’s creditors, the Miami Herald reports.

Jefferson County, Ala., officials are asking Wall Street creditors to forgive nearly $1.3 billion of the $3.14 billion sewer debt as part of a plan to keep the county of bankruptcy, the Birmingham News reports.

The Harrisburg, Pa., City Council appears likely to reject the city’s Act 47 fiscal-recovery plan at its meeting Tuesday night, but the possible imposition of a commuter tax on nonresidents may sway their votes, the Patriot-News reports.

U.S. regulators filed another lawsuit against Royal Bank of Scotland Group PLC, alleging that the bank violated securities laws when it sold nearly $1.6 billion in bonds backed by risky mortgages to a collapsed credit union, WSJ reports.

The state-appointed receiver running Central Falls, R.I., is set to discuss with the city’s retired police officers and firefighters a plan that calls for significant pension cuts to help avoid municipal bankruptcy, the Associated Press reports.