The Daily Docket: WaMu Shareholders Blast ‘Profoundly Flawed’ Bankru...

Shareholders of Washington Mutual Inc. say the holding company at the heart of the largest banking collapse in U.S. history ran a “profoundly flawed” bankruptcy case, one that means a $7 billion payday for “powerful creditors” at the expense of others. Read the Daily Bankruptcy Review story here.

Under pressure to pay $20.6 million to an Iranian inventor over patents, Texas chemical manufacturer HRD Corp. filed for bankruptcy protection Tuesday. Read the Daily Bankruptcy Review Small Cap story here.

(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.)

Borders Group Inc. stood on the brink of liquidation after a recent offer for the bookstore chain from a private-equity investor fell apart late Wednesday. Read the Wall Street Journal story here.

Lawyers for Dynegy Inc. sought to assuage potential lenders’ concerns about any legal liability they might face if the deeply indebted power company were to file for bankruptcy-court protection, WSJ reports.

Bryan Stow, the San Francisco Giants fan brutally assaulted outside Dodger Stadium on Opening Day, will play a role in the Los Angeles Dodgers’ pending bankruptcy case. Read the Bankruptcy Beat post here.

Irving Picard, the trustee in charge of cleaning up Bernard Madoff’s multibillion-dollar Ponzi scheme, won approval to start doling out some of the $7.6 billion he’s collected in the fallout of the $65 billion stock fraud, the New York Post reports.

A Delaware bankruptcy judge is resuming a hearing to determine whether he will approve the Catholic Diocese of Wilmington’s reorganization plan, the Associated Press reports.

Russian financier Vladimir Antonov is still being blocked from investing in ailing car maker Saab, his spokesman said on Wednesday, and public radio said it could be linked to worries over his Lithuanian bank, Reuters reports.