The Daily Docket: Judge Approves Lehman Deal With Fraser

A judge on Wednesday approved Lehman Brothers Holdings Inc.’s deal with WCAS Fraser Sullivan Investment Management LLC, which allows Lehman to turn its $5.3 billion commercial-loan portfolio into cash. Read the Daily Bankruptcy Review article here.

Former Yellowstone Club owner Timothy Blixseth’s bid to join a lawsuit seeking damages for the insolvencies of the club and others like it is “absurd,” meritless and should be denied, say lawsuit defendants Credit Suisse AG and Cushman & Wakefield Inc. 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.)

Cerberus Capital Management LP is holding off on cementing a deal to buy the beleaguered Innkeepers USA Trust because of market turmoil, The Wall Street Journal reports. This raises uncertainties about Innkeepers’ plan to exit bankruptcy.

Reuters reports that Lehman Brothers Holdings Inc. won’t turn its asset-management unit—Legacy Asset Management Co., or LAMCO—into a long-term business.

According to WSJ, three municipalities—the city of Los Angeles, San Mateo County, Calif., and Manatee County, Fla.—have abandoned ratings from Standard & Poor’s after being downgraded.

A deal that would allow Jefferson County, Ala., to avoid filing for Chapter 9 protection depends on help from a legislature that, so far, hasn’t given it, Bloomberg reports.

Athletes from the University of Miami who reportedly got a lot of money and gifts from Ponzi-scheme operator Nevin Shapiro might face bankruptcy clawback lawsuits, the Sun Sentinel reports.

Billionaire investor Carl Icahn, in a Dealbook column, defends himself against a July 19 article that describes him as a “spectacularly successful version of Wile E. Coyote.”

According to the Detroit News, General Motors Co. is seeking the dismissal of a class-action lawsuit claiming that it didn’t fix rear-end problems for 400,000 Chevrolet Impala drivers.