The Daily Docket: Court Reverses Tousa Decision

A federal appeals court has reversed a lower court decision involving the bankruptcy of Florida home builder Tousa Inc. in a closely watched court case that could have far-reaching implications for lenders of struggling companies and their creditors. Read the Daily Bankruptcy Review article here.

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Distressed-debt investors, among them Paulson & Co. and David Tepper’s Appaloosa Management LP, stand to recover up to 100 cents on the dollar plus interest under Residential Capital’s proposed plan to sell its assets to parent Ally Financial Inc. and Fortress Investment Group LLC. Read the DBR article via The Wall Street Journal.

Stephen Lubben writes in DealBook about the challenges in ResCap’s bankruptcy case.

Law Blog reports that the transfer of Dewey & LeBoeuf LLP’s Warsaw office to Greenberg Traurig LLP was approved by pension regulators.

Two of the labor groups at American airlines rejected parent AMR Corp.s latest concession proposal, WSJ reports.

Credit Slips looks at hedging and proprietary trading.

The trustee overseeing the bankruptcy case of JK Harris & Co. wants to fine businessman John Harris for his lack of cooperation, the Post and Courier reports.

An Iowa senator wants to introduce legislation to help keep Chapter 12 bankruptcy more farmer friendly, Agriculture.com reports.

The bankruptcy case of Nadya “Octomom” Suleman has been dismissed because she didn’t file the proper paperwork, the Associated Press reports.

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