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Cerberus Capital Management and Solus Alternative Asset Management on Tuesday proposed a new plan to restructure bankrupt wireless venture LightSquared, with the support of billionaire Charles Ergen, LightSquared's largest lender, Reuters reported yesterday. The two private-equity firms would pay Ergen cash to acquire $950 million of Ergen's $1 billion debt claim on the company. The two firms would then receive notes from the company ranking behind other LightSquared lenders in repayment priority. They would also supply new financing and take 34 percent of new equity to be issued by LightSquared as part of the proposed restructuring. The plan is designed to compete with a LightSquared-backed one whose fairness is the subject of an ongoing trial in U.S. Bankruptcy Court in Manhattan. That plan is backed by Fortress Investment Group and Centerbridge Partners, who would take the same 34 percent stake under their proposal. LightSquared's three-year bankruptcy is closely watched because its main asset, wireless spectrum, is considered very valuable. Just how valuable it is, and what it can be used for, is fiercely debated among stakeholders, and the bankruptcy will determine who ultimately controls it.

The World Bitcoin Association sought bankruptcy protection in Manhattan, Bloomberg News reported yesterday. The organization listed less than $300,000 in liabilities in a bankruptcy filing yesterday.

A competitive auction over the future of Wet Seal Inc. ended on Thursday with Versa Capital Management LLC agreeing to take over at least 140 of the teen clothing chain's stores and sink an initial $10 million into the company's operations, the Wall Street Journal reported on Saturday. Unlike many troubled retail chains catering to young women, which are liquidating, Wet Seal entered chapter 11 protection Jan. 15 with plans to keep a slimmed-down version of the company operating. The chain closed more than 330 of its stores ahead of its bankruptcy and laid off nearly 3,700 employees. Wet Seal's initial savior was B. Riley Financial Inc., a Los Angeles-based company that agreed to take 80 percent of the equity in a reorganized Wet Seal in exchange for $25 million. But the firm lost out in a bankruptcy auction in favor of an offer from Philadelphia-based private-equity firm Versa. The Versa deal includes $7.5 million in cash slated for unsecured creditors, an agreement to pay so-called cure costs as well as administrative and priority claims, and $10 million in exit financing. Versa also agreed to take over a $20 million bankruptcy financing commitment from B. Riley and pay B. Riley a $625,000 breakup fee.

Altegrity Inc. won court approval yesterday for financing and a deal with certain lenders designed to preserve some of its business and see it out of bankruptcy, the Wall Street Journal reported today. The company filed for chapter 11 protection in February after a unit that depends on government business lost its contracts. US Investigations Services, which vetted National Security Agency contractor Edward Snowden and Washington Navy Yard gunman Aaron Alexis, lost the federal government business after a significant cyberattack last year. Bankruptcy Judge Laurie Silverstein signed off on a loan that makes $45 million available during the chapter 11 proceeding and another $45 million to support Altegrity once it exits bankruptcy. Linked to the loan is a support agreement that provides the framework for a turnaround plan. The company must still hammer out a formal Chapter 11 plan, poll creditors and seek confirmation.

A skeptical unsecured creditors’ committee in the RadioShack Corp. case issued more than a dozen subpoenas as part of an investigation into whether bankruptcy was necessary for the electronics retailer, now trying to sell its 4,000 stores, Bloomberg News reported on Friday. The committee asked advisors and business partners to provide all documents related to pre-petition loans and credit-default swaps late last year and, if relevant documents were destroyed, to explain why. The Fort Worth-based company sought bankruptcy protection in February citing $1.39 billion of debt.

Trump Entertainment Resorts on Thursday was cleared to exit bankruptcy proceedings, following a series of deals with former foes, including Donald and Ivanka Trump, who abandoned efforts to reclaim their brand from the downtrodden Atlantic City, N.J., boardwalk gambling operation, Dow Jones Daily Bankruptcy Review reported today. The confirmation decision by Bankruptcy Judge Kevin Gross, however, wasn't the last word on the future of the casino company, which has been at odds with the union representing more than 1,100 casino workers for much of its stay under chapter 11 protection. Unite Here Local 54 marched on Friday to protest the loss of health care and retirement rights allegedly at the hands of its secured lender and new owner — activist investor Carl Icahn.

Bankruptcy Judge A. Benjamin Goldgar on Thursday gave the examiner in Caesars Entertainment Operating Co.’s bankruptcy case a wider scope of power than the casino company wanted, the Wall Street Journal reported on Saturday. Judge Goldgar approved Caesars’ request for the independent examination but said that the individual could go beyond just the seven “challenged” transactions that have prompted four separate investor lawsuits. The judge already had said that he would allow the examiner, he just hadn’t decided on the scope. Thursday’s decision decision is a win for a group of junior bondholders, who had said that an examiner should be allowed to look at more than just those seven transactions, which Caesars had requested. Judge Goldgar said that the examiner could look at any transactions or “apparent self-dealing or conflicts of interest” for which creditors might bring claims against Caesars, including current and former officers of Caesars.

Revel AC Inc. failed in its third attempt to sell its bankrupt casino, opening the door for other potential bidders for the Atlantic City, N.J., resort, Bloomberg News reported yesterday. After months of false starts, Revel finally reached an $82 million deal with Florida real estate investor Glenn Straub’s Polo North Country Club Inc. Bankruptcy Judge Gloria Burns shot down that sale at a Friday hearing in Camden, N.J., saying that she can’t approve it because an earlier version of the deal is still being weighed by another court. After opening at a cost of $2.4 billion in 2012, Revel sought bankruptcy protection in June for the second time in as many years. It closed in September after failing to draw interest for a quick sale. The casino was one of four in Atlantic City to fold last year as competition from surrounding states lured away customers. The bankrupt casino owner originally had a $110 million deal with Toronto-based Brookfield Property Partners LP, but Brookfield walked away after failing to come to terms over energy payments. Straub, who had been the lead bidder at auction, stepped back in to scoop up the property but failed to close the $95.4 million sale by a Feb. 9 deadline. Revel moved to terminate the deal after the closing date lapsed.