The Daily Docket: McCourt Whiffs on Dodgers Bankruptcy Loan

07/25/11

A Delaware bankruptcy judge rejected embattled Los Angeles Dodgers owner Frank McCourt’s attempt to use the team’s Chapter 11 case to circumvent Major League Baseball, ruling Friday that the team could not use a $150 million loan from a New York hedge fund to finance its operations. Read the Daily Bankruptcy Review article here.

Casual-dining chain Real Mex Restaurants Inc. is at risk of defaulting on $130 million in notes and may file for Chapter 11 bankruptcy protection, two ratings agencies said last week. 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.)

A Florida bankruptcy judge approved Taylor Bean & Whitaker Mortgage Corp.’s liquidation plan, signaling the end for what was once among the nation’s largest mortgage lenders before collapsing two years ago under the weight of a multibillion-dollar bank fraud. Read the Daily Bankruptcy Review story via The Wall Street Journal.

According to the Associated Press, leaders for Alabama’s Jefferson County may decide this week whether to put the financially beleaguered county into Chapter 9 protection, in what would be the U.S.’s largest municipal bankruptcy ever.

The upscale Yellowstone Club and Tamarack Resort’s founders are joining a group lawsuit against Credit Suisse Group, Bloomberg reports. Yellowstone’s Timothy Blixseth and Tamarack’s Alfredo Miguel say they were defrauded through a “predatory loan scheme.”

Ralph Esmerian, the former owner of upscale Manhattan jewelry store Fred Leighton, was sentenced Friday to six years in prison, Dow Jones Newswires reports, after he was accused of defrauding Fred Leighton creditors as the jewelry retailer fell into bankruptcy protection.

Crain’s Detroit Business wonders whether Borders Group Inc.’s store closures will make room for smaller booksellers in Michigan areas where there will no longer be many other options.

WSJ looks at the preservation of the O’Toole Building, part of the defunct St. Vincent’s Medical Center’s campus.


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