The Daily Docket: Graceway Enters Bankruptcy

09/29/11

Graceway Pharmaceuticals LLC filed for Chapter 11 bankruptcy protection Thursday, one day after announcing its plans to seek a sale of its assets to Galderma S.A. Read the Daily Bankruptcy Review article here.

The lead bidder for Point Blank Solutions Inc.’s assets is dropping its offer by one-third after taking a closer look at the body-armor business. Click here for the DBR Small Cap article.

(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.)

Lehman Brothers Holdings Inc. struck deals with Bank of America Corp. and Merrill Lynch, Reuters reports. The deals will reduce the claims against Lehman by $7.5 billion combined.

Lawmakers in Pennsylvania took another step toward putting the distressed capital city of Harrisburg into receivership Wednesday, Dow Jones Newswires reports.

According to The Wall Street Journal, a decision Tuesday by Judge Jed Rakoff of the U.S. District Court in Manhattan weakened Bernard Madoff trustee Irving Picard’s ability to recover money. However, the decision only directly applies to the lawsuit against the owners of the New York Mets.

Law professor Stephen Lubben  discusses Rakoff’s decision via Credit Slips, suggesting that Congress needs to revisit the safe harbors that exempt many financial dealings from the Bankruptcy Code.

The Philadlephia bankruptcy court Wednesday approved a severance agreement between the Philadelphia Orchestra Association and Peter Nero and the Philly Pops, the Philadelphia Inquirer reports.

Investment group Sun European Partners bought distressed U.K. womenswear company Alexon Group Plc, Dow Jones Newswires reports.


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