The Daily Docket: Investment Funds Buy Genco Stock

In the days following Genco Shipping & Trading Ltd. ‘s billion-dollar Chapter 11 filing, investment funds Aurelius Capital Partners and Och-Ziff Capital Management Group bought up stock in the dry bulk shipper, even though the stock is slated to be canceled in the restructuring and repaid very little. The Wall Street Journal has the Daily Bankruptcy Review article here.

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Detroit’s creditors are starting to vote on the city’s debt-cutting plan amid conflicts over the city’s pensions, the Detroit news reports.

Energy Future Holdings Corp. says its troubles are rooted in its balance sheet, not in its Texas business, so the Chapter 11 restructuring it launched in Delaware should stay in the small state, familiar territory to bankers and bankruptcy professionals. Read the DBR article via WSJ.

Federal prosecutors on Friday brought criminal charges against TelexFree LLC co-owners James Merrill and Carlos Wanzeler, whose company federal securities regulators have accused of operating a $1 billion pyramid scheme that targeted immigrants, DBR reports via WSJ.

According to WSJ, gambling company Codere SA won a two-day deadline extension to secure a restructuring deal and avoid bankruptcy.

The bankrupt city of Stockton, Calif., is fighting a creditor in court to get approval on its debt-cutting plan, which could signal a much bigger battle for Detroit, Bloomberg reports.

Lehman Brothers Holdings Inc.’s brokerage wants court approval to set aside more money for creditors. The DBR article is available via WSJ.

Brazil is investigating business tycoon Eike Batista for alleged insider trading, WSJ reports.

Credit Slips looks at what’s behind credit-card debt that’s gotten rid of through bankruptcy.

Write to Melanie Cohen at [email protected]. Follow her on Twitter at @MelanieLisa.