The Daily Docket: Judge Rejects Barnes Bay’s Chapter 11 Plan

A bankruptcy judge on Tuesday rejected Barnes Bay Development Ltd.’s Chapter 11 plan, wiping out the claims of dozens of wealthy individuals who plunked down money to buy vacation homes at its Caribbean luxury resort. Read the Daily Bankruptcy Review story here.

A lack of corporate bankruptcy filings is leading some hungry attorneys to push the legal industry’s ethical limits to land the often lucrative assignment of representing creditors committees in Chapter 11 cases, and some of their colleagues are sounding the alarm. Read Daily Bankruptcy Review’s Katy Stech in DBR Small Cap here.

(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.)

Two top executives at Solyndra LLC said they would invoke their Fifth Amendment rights and decline to answer questions at a House hearing Friday, heightening the Washington intrigue over the failed solar-panel maker. Read The Wall Street Journal story here.

The Securities and Exchange Commission’s internal watchdog asked the Justice Department to investigate whether the SEC’s former top lawyer violated criminal conflict-of-interest laws involving Bernard Madoff fraud, WSJ reports.

A Swedish appeals court Wednesday granted troubled car maker Saab Automobile AB protection from its creditors while it restructures its operations, WSJ reports, overturning a ruling earlier this month by a lower court that denied the company the opportunity to reorganize.

The Journal looks at the strange case of 87-year-old real estate developer Michael Mastro, the bankrupt Seattle businessman, who disappeared in July.

Europe’s top human-rights court found Russian authorities violated the rights of OAO Yukos when they broke up the oil giant but rejected the company’s allegation that the actions were politically motivated, WSJ reports.

Harvey Miller, a partner at Weil Gotshal & Manges LLP, talks to Bloomberg about the prospects of that Bank of America Corp. may put its Countrywide Financial Corp. unit into bankruptcy.

DealBook says Cerberus Capital has a “weak” argument as it seeks to walk away from its bankruptcy deal to purchase Innkeepers USA Trust.