RoomStore Takes Third Trip Through Chapter 11 Bankruptcy

Furniture company RoomStore Inc. filed for chapter 11 bankruptcy protection for the third time since the year 2000. Read 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 the Associated Press, the Borgata casino in Atlantic City, N.J., asked a judge to order the struggling city to pay back $62 million in taxes. The move could possibly end in bankruptcy.

The U.S. government is trying to help colleges on tough footing keep access to federal aid amid student-loan defaults, The Wall Street Journal reports.

Linda Watkins-Brashear, the former head of the not-for-profit company that oversaw Newark, N.J.’s water services, pleaded guilty to taking nearly $1 million in kickbacks, the Associated Press reports. (Last week, Bankruptcy Beat reported on the situation, noting Gov. Cory Booker said he was lawsuit-proof in the situation.)

Bankruptcy Beat reports on the 21/2-year prison sentencing of Frank Spinsosa, a Florida banker who helped Scott Rothstein facilitate his $1 billion-plus Ponzi scheme.

DealBook looks at debt buyers like Encore that sue customers in court to collect debt but prevent the same customers from suing back. Lawyers say it is the legal equivalent of the debt buyers having their cake and eating it, too.

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