Patriot Coal Is Back in Bankruptcy

Patriot Coal Corp. is in “active negotiations” with an unnamed strategic buyer, hoping for a deal to aid it out of bankruptcy. 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.”)

According to WSJ, the chairman of the Federal Deposit Insurance Corp. said big banks will be allowed to fail in the event of major financial trouble.

Private-equity chief Lynn Tilton wants a judge to stop the U.S. Securities and Exchange Commission from putting her before a judge in a fraud case, Reuters reports.

The New York Times has a brief on students seeking a special committee in the Corinthian Colleges Inc. bankruptcy case.

A judge rejected a bond lawsuit over the pension debt of San Bernardino, Calif., Bloomberg reports.

According to the Associated Press, a judge found efforts by Yellowstone Club founder Tim Blixseth to be freed from jail were just an attempt to divert attention.

According to Bloomberg, Wayne County, Mich., is trying to cut wages while reducing pensions and ending health-care benefits for Detoit retirees.

(And don’t forget to check out our latest batch of Examiners posts, on student debt.)

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