The Daily Docket: Hedge Funds Appeal WaMu Ruling

Four hedge funds accused of insider trading in Washington Mutual Inc.’s bankruptcy case are appealing a ruling that denied confirmation of the company’s Chapter 11 plan and found they could be held to account to shareholders for alleged improper behavior. Read the Daily Bankruptcy Review article here.

Pennsylvania metal manufacturer Hussey Copper Ltd. filed for Chapter 11 bankruptcy protection Tuesday in U.S. Bankruptcy Court in Wilmington, Del., interrupting aggressive expansion at its flagship plant outside Pittsburgh. Click here for the DBR Small Cap article.

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A judge struck down a big chunk of claims by Bernard Madoff trustee Irving Picard against New York Mets owners Fred Wilpon and Saul Katz, The Wall Street Journal reports. Picard is trying to recover about $1 billion from the pair.

Also according to WSJ, hedge-fund manager John Paulson is facing a bunch of rival investors who hope he’ll conduct a fire sale of debts and stock holdings.

Law professor Stephen Lubben writes in Dealbook about the possibility of sovereign bankruptcy in Europe.

A congressional proposal would make it harder for companies to enter bankruptcy protection in Wilmington, Del., the Philadelphia Inquirer reports. H.R. 2533 would make companies file for bankruptcy where their headquarters or assets are based, not where they’re incorporated.

According to the Los Angeles Times, some Los Angeles Dodgers season-ticket holders filed a motion in bankruptcy court seeking a say in the team’s bankruptcy case. The group includes Frank Sinatra’s family, which has held season tickets for over 50 years.

H. Ross Perot Jr.’s Hillwood Communities is hoping its Park Higlands development, which was placed in bankruptcy a second time this July, will thrive in an eventual rebound of the Las Vegas housing market, WSJ reports.