The Daily Docket: U.K. Court Dismisses Lehman Appeal

Britain’s Supreme Court on Wednesday dismissed an appeal by units of Lehman Brothers Holdings Inc. and Bank of New York Mellon, a win for investors in a high-stakes legal dispute involving complex derivatives transactions that has divided courts on both sides of the Atlantic. Read the Daily Bankruptcy Review article via The Wall Street Journal.

A bankruptcy judged approved a financing pact for the stalled Las Vegas-area real-estate project dubbed “Inspirada” that puts a group of home builders behind the troubled development back in the driver’s seat. Read the DBR article here.

Shareholders of HearUSA Inc. who have seen few bids emerge for the Florida hearing aid seller’s assets may ask a bankruptcy judge to steer the company’s Chapter 11 case toward a traditional restructuring if its upcoming auction lacks robust competition. 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.)

According to Bloomberg, Citigroup Inc., which has been accused by Bernard Madoff trustee Irving Picard of ignoring the red flags of Madoff’s Ponzi scheme, has asked to have the $430 million trustee lawsuit thrown out.

Holders of more than $3 billion in debt from the beleaguered Jefferson County, Ala., are working on a rescue plan, WSJ reports. The plan could leave them with steep losses.

The bankruptcy trustee liquidating Ponzi-scheme operator Scott Rothstein’s law firm is suing Toronto-Dominion Bank for allegedly ignoring numerous red flags raised by Rothstein’s banking practices and for allowing Rothstein’s fraud to grow as big and last as long as it did. Read the DBR Small Cap article via WSJ.

Lehman Brothers Holding Inc.’s estate is selling more of its property portfolio, a move that may help the failed investment bank’s creditors, WSJ reports.

According to the Philadelphia Inquirer, the Philadelphia Orchestra Association’s bankruptcy case has incurred $2.4 million in fees as of the end of June.