The Daily Docket: Lehman Trustee Strikes Deal With Pimco

The trustee unwinding Lehman Brothers Holdings Inc.’s U.S. brokerage arm has struck a deal with Pacific Investment Management Co. that would settle more than $187 million in claims against the brokerage at a fraction of their asserted value. The Wall Street Journal has the Daily Bankruptcy Review article here.

HEI Inc. filed for Chapter 11 bankruptcy protection Sunday after declining sales triggered a review of strategic options for its business. Read the DBR article here.

(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)

LightSquared is seeking to pay a $200 million breakup fee to the backers of its restructuring, including Fortress Investment Group LLC, in case the mobile satellite company’s Chapter 11 exit doesn’t pan out as planned, DBR reports in WSJ.

Canada’s Nortel Networks Corp. is appealing a U.S. court ruling that could put the bulk of the dissolved company’s cash into the hands of distressed-debt trading firms, DBR reports in WSJ.

Longview Power has settled disputes with an insurer and a pair of contractors, clearing an obstacle in the West Virginia power plant’s efforts to exit Chapter 11 bankruptcy protection. Read the DBR article in WSJ.

General Motors Co. announced three new vehicle recalls, Reuters reports.

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