The Daily Docket: Creditors Blast Blockbuster Sale

Unsecured creditors of Blockbuster Inc. are calling for the company’s bankruptcy case to be converted to a Chapter 7 liquidation from Chapter 11 unless significant changes are made to the movie-rental chain’s plans to sell itself to a group of senior noteholders. Read the Daily Bankruptcy Review story here.

Also in today’s DBR, regional airline Mesa Air Group Inc. has emerged from Chapter 11 bankruptcy protection with a revamped balance sheet and a new code-sharing deal with US Airways Group Inc. that runs through September 2015.

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Facing a multimillion dollar legal judgment, Idaho’s Boise County has filed for Chapter 9 bankruptcy protection, the Idaho Statesman reports.

Meanwhile, a consulting firm founded by economist Nouriel Roubini, who warned of the 2008 financial crisis, said there could be close to $100 billion of municipal-bond defaults over the next five years, The Wall Street Journal reports.

Consumer bankruptcy filings rose in February, but the pace has slowed from last year, according to WSJ.

In an amended lawsuit filed this week, the trustee unwinding Bernard Madoff’s massive Ponzi scheme says money-management firm Tremont Group Holdings Inc. and a group of funds it managed repeatedly ignored “red flags” that Madoff’s business could be a fraud, WSJ reports.

Trico Marine Services Inc. units Trico Supply AS and Trico Shipping AS have launched an out-of-court exchange offer with their noteholders as their parent company restructures under Chapter 11 protection.

Meanwhile, Trico said Tuesday it will auction several towing and supply vessels as part of its bankruptcy reorganization, the Houston Business Journal reports.