The Daily Docket: W.R. Grace Pursues Acquisition

W.R. Grace & Co. is seeking bankruptcy-court permission to compete at an auction for a “highly confidential potential strategic transaction” as it awaits the final word on its Chapter 11 exit plan. Read the Daily Bankruptcy Review story here.

One Madison Park’s unsecured creditors are seeking more time to investigate potential lawsuits against the Manhattan high-rise condominium’s lenders in light of new developments that have them jockeying for control of some $230 million in secured debt. Read the DBR Small Cap story here.

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The federal regulator that oversees mortgage giants Fannie Mae and Freddie Mac was tipped off to allegations of fraud at mortgage lender Taylor, Bean & Whitaker before its collapse in the summer of 2008 but didn’t refer the case to authorities, a government watchdog said in a report released Tuesday, The Wall Street Journal reports.

The Harrisburg, Pa., City Council approved a resolution Tuesday night requesting that Mayor Linda Thompson prepare a Chapter 9 bankruptcy filing in case it rejects the state’s Act 47 financial recovery plan, the Patriot-News reports.

Meanwhile, Thompson said she’ll join religious leaders Friday for three days of fasting and prayer to encourage “a cooperative spirit among government leaders, the business community and citizens,” the Huffington Post reports.

The financial woes of debt-laden Jefferson County, Ala., may hurt other nearby communities and school districts, a rating agency and prominent analyst have warned, WSJ reports.

A Congressional panel is hearing testimony Wednesday that the Obama administration created pension winners and pension losers when it led the bankruptcy restructurings of General Motors and Chrysler in 2009, the New York Times reports.

General Motors Co. has lost most Pontiac and Saturn owners to new auto makers when they bought new cars last year, the Detroit News reports.

Borders Group Inc. posted a net loss of $35.4 million on $97.1 million in revenue in May, according to a financial statement filed Monday night with the U.S. Securities and Exchange Commission, Crain’s Detroit Business reports.