Lehman Brothers Says Former Top Trader Seeking ‘Double Recovery’

Lehman Brothers on Wednesday said former top trader Jonathan Hoffman is seeking “double recovery” on his bonus from 2008, in day one of a trial over whether Lehman owes Mr. Hoffman and three other employees millions in back bonuses. 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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”)

A bankruptcy judge Wednesday put the brakes on Optim Energy LLC ’s plan to exit bankruptcy through the sale of its two Texas power plants after a unit of private equity company Blackstone Group LP objected to the deal, DBR (sub. req.) reports.

According to Bloomberg, former billionaire Sam Wyly said it was too soon for federal officials to worry about what we will do with up to $50 million from a planned sale of his family ranch.

According to the Times-Picayune, Louisiana State University, the state’s flagship university, is drafting an academic bankruptcy plan along with many other state colleges in Louisiana.

American Airlines Group Inc.’s CEO’s new compensation plan largely will be made of restricted stock units and won’t include a salary or cash bonus, WSJ reports.

WSJ reports on the closing arguments in American International Group Inc.’s bailout trial.

Coal companies are getting a reprieve on pension costs, WSJ reports.

Bitcoin miner Mt. Gox’s bankruptcy distributions could come in the form of virtual currency, Reuters reports.

(And don’t forget to check out our blog post on a Long Island, N.Y., produce-company owner getting charged with looting employee pensions.)

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