BANKRUPTCY LAW

Citigroup Inc could face up to $3 billion in claims from the bankruptcy proceedings of Lehman Brothers Holdings Inc , the third largest U.S. bank by assets said in a regulatory filing on Friday.

The months of negotiations between TerreStar Networks and its creditors may well have been for nothing, as EchoStar has pulled out of an agreement to backstop the company's bankruptcy plan.

Borders Group, owner of the second largest U.S. bookstore chain, said in its Chapter 11 bankruptcy filing that it will close down around 200 stores nationwide, sending store landlords into a tizzy.

The second largest U.S. bookstore chain Borders Group Inc. (NYSE: BGP) filed for Chapter 11 bankruptcy protection as its book sales started sinking in 2008, 2009, and in each quarter of 2010 even after management changes, job cuts and debt restructuring.

The owners of the New York Mets were accused of reaping $300 million of fictitious profits from Bernard Madoff's record Ponzi scheme, a lawsuit by the trustee seeking money for Madoff's victims said.

The independent studio behind the hit Twilight films wants a judge to force bankrupt movie rental chain Blockbuster Inc to pay its bills or force it to into liquidation, according to court documents.

Borders Group Inc, the second-largest U.S. book chain, may file for bankruptcy later this month, a source familiar with matter said.

A group of lenders has withdrawn its plan for reorganizing newspaper owner Tribune Co, leaving two proposals for ending the company's two-year stay in bankruptcy, according to court documents.

Florida-based asbestos litigation law firm Kelley & Ferraro LLP has filed for Chapter 11 bankruptcy seeking reprieve from an Ohio appeals court's ruling that the law firm must be dissolved as part of an agreement with the firm's deceased partner and co-founder Michael Kelley.

Borders Group Inc received a financing commitment from GE Capital, providing a potential lifeline to the troubled bookseller, but said it would also explore options, including an in-court restructuring.

The U.S. Treasury could sell all of its stock in General Motors Co. within the next year, the Wall Street Journal reports, citing an unidentified Treasury official.

Bankrupt financial company Lehman Brothers Holdings Inc proposed a new plan for dividing up billions of dollars among its creditors and offered a bigger payment to bondholders, provided they sign on.

A bankruptcy judge on Thursday gave Blockbuster Inc three more months to negotiate leases, giving it a new lifeline as the video rental chain tries to reorganize its business.

Washington Mutual Inc could be out of bankruptcy in March after reworking its recently rejected plan of reorganization, the attorney overseeing the company's bankruptcy said on Tuesday.

Video rental chain Blockbuster Inc said it had received an additional three weeks from its lenders to file a bankruptcy reorganization plan.

Lehman Brothers Holdings Inc said it will take longer than expected to win approval of a bankruptcy plan, and projects paying out $60.1 billion as it tries to settle differences with creditors owed six times that amount.

The number of U.S. consumers who filed petitions for personal bankruptcy protection grew 9 percent to 1.53 million in 2010 and this could rise as consumers struggle with excess debt in an uncertain economy, according to the American Bankruptcy Institute (ABI), an association of attorneys and other bankruptcy professionals, and the National Bankruptcy Research Center (NBKRC).

TerreStar Networks and its creditors have come to an agreement on the plan to get the company out of bankruptcy, though some obstacles remain.

TerreStar Networks will have to wait a bit longer before it can move forward with its hotly contested bankruptcy plan, losing a bid to get its disclosure statement approved quickly.

A Pennsylvania-based law firm has been sued for using non-lawyers to review, sign and file foreclosures that caused people to lose their homes.

Law firm WilmerHale has named Susan W. Murley and Robert T. Novick as co-managing partners for a three-year term effective from January 1, 2012.