Nortel’s Bondholders and U.S. Division Lose Bid to Upset Ruling

Nortel Networks Corp .’s bondholders and the company’s U.S. division lost a bid to upset a ruling on how $7.3 billion should be divided among competing national units of the defunct telecommunications giant. Read the Daily Bankruptcy Review article via The Wall Street Journal.

(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.”)

Energy Future Holdings Corp. bondholders were warned about their desire for Oncor, DBR (sub. req.) reports.

Atlanta law firm Morris Schneider Wittstadt, embroiled in lawsuts over a missing $20 million, filed for bankruptcy, DBR reports in WSJ.

Big banks are refilling their “living wills” following criticism from regulators WSJ reports.

According to Bloomberg, a New York Democrat who is the first woman of Puerto Rican descent in the House of Representatives is calling on President Barack Obama to help more to help the financially ailing Puerto Rico.

Lenders to Walter Energy Inc. are pushing for a reduction in worker pay and pension costs, Bloomberg reports.

(And don’t forget to check out our “bankruptcy eats” blog post on the flailing Spanish chain 100 Montaditos.)

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