The Daily Docket: Union Moves to Force Saab Bankruptcy

Swedish labor union Unionen, representing about 1,000 unpaid employees at troubled Swedish car maker Saab Automobile AB, submitted an application for Saab Automobile’s bankruptcy Monday as its members still haven’t received their August wages. Read the Dow Jones Newswires story here.

A bankruptcy judge cleared Borders Group Inc. to make $500,000 in severance payments to four company “insiders,” including its former chief executive, Mike Edwards. Read the Daily Bankruptcy Review story here in The Wall Street Journal here.

A Delaware bankruptcy judge ordered insurance companies to pay their share of a settlement with priest sex abuse victims that is the foundation of the Catholic Diocese of Wilmington’s reorganization plan. Read the Daily Bankruptcy Review Small Cap story here.

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Symptoms of another bank liquidity squeeze are growing in Europe as fears of a Greek default continued to grip financial markets Monday and raised concern that the sovereign debt crisis will now spread to the region’s banks. Read The Wall Street Journal story here.

WSJ examines how Harrisburg, Pa’s initial outlay of $12.5 million to build a trash incinerator that generates electricity grew to $310 million and threatens to swamp the city.

Reuters looks at the litigation arising from Bank of America’s big role in the U.S. mortgage mess, and thinks the solution may be asbestos-style settlement trusts.

Bank of America Corp. asked a judge to dismiss a lawsuit against it and Countrywide Home Loans Inc. filed by defunct Thornburg Mortgage, Bloomberg reports.

The New York Post reports the cash-strapped New Jersey Devils missed a Sept. 1 loan payment.