The Daily Docket: Santa Ysabel Seeks Bankruptcy Harbor

Santa Ysabel Resort and Casino—too broke to build its resort and too small to lure many gamblers to its casino on a reservation outside San Diego—is about to test the notion that Native American enterprises aren’t eligible for protection under U.S. bankruptcy law. Read the Daily Banrkuptcy Review Small Cap article via The Wall Street Journal.

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AMR Corp. is facing $162.4 million in penalties from the Federal Aviation Administration, WSJ reports.

According to WSJ, opening bids for Eastman Kodak Co.’s patents were much lower than what Kodak said they’d be worth.

A group of investors saved trading firm Knight Capital from the brink of bankruptcy, WSJ reports.

General Motors go says that it might be undone by a lawsuit pitting certain creditors against Fortress Investment Group LLC over the $3 billion sale that created the new GM, Bloomberg reports.

Dewey & LeBoeuf LLP’s deadline for former partners to sign up for a clawback deal got extended, Law Blog reports.

Things have been coming undone quickly since San Bernardino, Calif., filed for bankruptcy last week, the Press-Enterprise reports.

According to the Record, the city of Stockton, Calif., is allowed to stop paying for retirees’ medical coverage under bankruptcy law.

According to ProPublica, emails from a banker and executives involved in some of Magnetar’s mortgage-backed deals are showing how the deals fueled the company’s meltdown.

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