The Daily Docket: FDIC Says BofA Owes Colonial $900M

The Federal Deposit Insurance Corp. says Bank of America Corp. owes the failed Colonial Bank $900 million for losses suffered when Colonial collapsed in the wreckage of Taylor Bean & Whitaker Mortgage Corp.’s multibillion-dollar bank fraud. Read the Daily Bankruptcy Review article here.

Trailer Bridge Inc. filed its plan for reorganization Saturday, proposing to pay senior lenders a share of $65 million in notes plus equity in the new company. Click here to read the article in DBR Small Cap.

(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC, click here.)

According to The Wall Street Journal, a judge denied a request to appeal a ruling limiting the amount of money Bernard Madoff trustee Irving Picard could seek to recoup from the New York Mets.

According to Bloomberg, Gucci brand owner PPR SA may sell its Redcats’ Avenue clothing business as part of a bankruptcy.

Canada-based Catalyst Paper Corp. filed for Chapter 15 bankruptcy Tuesday, Reuters reports. The company is struggling with higher costs for raw materials and lower demand.

Michigan’s greater power to take over cities that are struggling financially has drawn the ire of state labor unions and Democrats, WSJ reports.

Saab owner Swedish Automobile NV is hoping to survive after Saab’s bankruptcy, the Associated Press reports.

According to WSJ, Brookfield Asset Management Inc. canceled a deal to take over the Bahamas-based Atlantis resort and two other resorts from Kerzner International Holdings Ltd.

General Growth Properties Inc. has finished its spin-off of 30 malls, the Aw Law Daily reports.

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