The Daily Docket: Sailing Capital, Sanpower Team Up to Buy Brookston...

Chinese investment firm Sailing Capital and Chinese conglomerate Sanpower teamed up to buy Brookstone Holdings Corp. for more than $173 million at a Monday bankruptcy auction, according to an attorney working on the case. The Wall Street Journal has the Daily Bankruptcy Review 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.”)

WSJ reports that Michigan’s state legislature approved $195 million in financing that aims to help Detroit out of bankruptcy.

The Sbarro pizza chain is officially out of bankruptcy after entering into a plan that allowed lenders to swap $148 million in debt for control of the reorganized business. The DBR article is available via WSJ.

Energy Future Holdings Corp. on Tuesday defended its plan to put nearly $9.9 billion of bankruptcy loans in place this week and said the financing is picking up support among critics. Read the DBR article via WSJ.

According to WSJ, a compensation expert is hoping to give General Motors Co. options within the next few weeks for financially compensating victims of ignition-switch recall related car crashes.

More than 80% of creditors at a Tuesday meeting voted to approve oil company Oleo e Gas Participacoes SA’s restructuring plan, WSJ reports.

LightSquared bankruptcy judge Shelley Chapman called an emergency hearing because of a story in the New York Post, the Post reports. (DBR wrote a similar story, which looked at Phil Falcone’s efforts to get the government to take action on the company.)

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