The Daily Docket: Wet Seal Hires Restructuring Lawyers

Struggling teen retailer Wet Seal Inc. has hired restructuring lawyers to help the company with a potential bankruptcy filing, according to people familiar with the matter. 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.”)

Federal investigators say the company responsible for a chemical leak that contaminated the water supply for 300,000 people in West Virginia last year knew about problems at its storage facility for more than a decade, DBR reports in WSJ.

The bankrupt city of San Bernardino, Calif., was sued by a Luxembourg bank that bought more than $50 million of its bonds, arguing that city leaders have been unfairly paying a workers’ pension fund but not bondholders. Read the DBR article in WSJ.

Caesars Entertainment is looking to rally support among bondholders for a bankruptcy plan, DealBook reports.

Debt buyer Encore Capital Group is expected to reach a deal with New York’s state attorneys general over worries that it filed thousands of flawed suits against state residents, DealBook reports.

According to Reuters, a judge said Energy Future Holdings Corp.’s bankruptcy could dodge asbestos claimants.

Big banks have been putting distressed energy sector debt in the money-market industry, Reuters reports.

The Detroit Institute of Arts director is set to retire in June, WSJ reports.

The buyer of the Revel casino in Atlantic City, N.J., plans to open a water park there, the Associated Press reports.

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