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A holdout creditor of a Chicago suburb’s bankrupt convention center has dropped its bid to derail a $247 million debt-restructuring plan, WSJ Pro Bankruptcy reported. Lord Abbett & Co. said yesterday that it had sold its claims against Lombard Public Facilities Corp. and withdrew an appeal that claimed the public project wasn’t eligible for bankruptcy protection. Lord Abbett had argued that LPFC was too closely connected with the surrounding village of Lombard, a DuPage County suburb 20 miles from downtown Chicago, to qualify for chapter 11.

The lawsuit alleges that Fox schemed with private equity giant Apollo Global Management to strip the assets of "Idol" producer Core Media to the detriment of lenders, the Hollywood Reporter reported. Looking to save itself in a lawsuit that demands $240 million in compensatory damages and more in punitive damages, 21st Century Fox has told a judge that American Idol lenders are seeking to blame others for their high risk loans that didn't pan out. The complaint was filed in Dec. 2016 by the litigation trustee of former Idol producer Core Media Group, which declared bankruptcy and was then taken over by financial firms that had once extended $360 million in loans. Core filed for chapter 11 after ratings for Idol tanked, causing Fox to cancel the singing competition show, which will soon reboot on ABC.

Patriot National Inc. filed for bankruptcy under a prearranged plan to hand control of its hobbled insurance-outsourcing business to lenders Cerberus Capital Management LP and TCW Asset Management Co., WSJ Pro Bankruptcy reported. The Fort Lauderdale, Fla., company entered a chapter 11 process in the U.S. Bankruptcy Court in Wilmington, Del., stemming from the insolvency of its largest customer, a messy fallout with its former chief executive and mounting lawsuits from stockholders, employees and attorneys. Cerberus and Carlyle Group-backed TCW are poised to take control of Patriot National under a prenegotiated plan that would convert $223 million in debt to new equity, chief restructuring officer James Feltman said in a sworn declaration.

At least three bidders are expected to take part in today’s bankruptcy auction of Dowling College’s 105-acre Brookhaven campus (N.Y.), according to the property’s marketer, Newsday reported. Sealed bids for the property, which includes a 70-room dormitory, an athletic complex, a two-building office and classroom complex, and a 7,500-square-foot airplane hangar, were due by Thursday. Organizers of the auction said they have received three bids for the property, and the bidders’ identities will remain sealed until after the auction. The auction will proceed in increments of $100,000, said Sean Southard, an attorney representing Dowling in its chapter 11 bankruptcy proceedings. The liberal arts college ran out of funds, lost its accreditation and closed in 2016. Dowling said that it had $54 million in long-term debt and filed for chapter 11 bankruptcy protection in November 2016.

Shares of healthcare property owner Quality Care Properties Inc. fell to a 13-month low yesterday as investors braced for a prolonged legal battle over unpaid rent with its main tenant, No. 2 U.S. nursing home chain HCR ManorCare, Reuters reported. In a regulatory filing yesterday, Quality Care said that it would pursue all legal paths against its tenant, which owes more than $300 million in back rent. Options include its August request for a court-appointed receiver to take over ManorCare’s operations. Quality Care’s filing yesterday followed a December statement that appeared to signal progress in talks, such as a reduction in rent. Quality Care said yesterday that ManorCare missed a reduced $14 million rent payment due Jan. 25. In August, Quality Care first asked for a receiver to take over Toledo, Ohio-based ManorCare, with more than 250 skilled nursing and assisted living facilities across the U.S.

A bankruptcy court confirmed Gander Mountain’s liquidation plan and granted the company’s motion for substantive consolidation of the debtors’ assets, liabilities and operations, according to a press release. Camping World Holdings purchased a majority of the Company’s assets under a § 363 sale and is operating approximately 50 former Gander Mountain store locations under the name Gander Outdoors. The privately-held outdoor specialty retailer filed for chapter 11 protection on March 10, 2017, listing more than $500 million in assets. The company emerged from a previous bankruptcy in March 1997.

Rand Logistics Inc., one of the largest bulk-freight shipping companies in the Great Lakes region, has filed for bankruptcy protection after agreeing to a debt-for-equity swap with Lightship Capital LLC, WSJ Pro Bankruptcy reported. Rand, whose corporate headquarters are in Jersey City, N.J., said on Monday that the deal with junior lender Lightship will eliminate $92 million in debt from it books. The company blamed its financial woes, in part, on the weakness of the Canadian dollar versus the U.S. dollar. From 2014 to 2016, the Canadian dollar weakened against the U.S. dollar by approximately 30 percent, according to court papers.

A federal judge allowed indebted homebuilder Hovnanian Enterprises Inc. to complete a disputed financing deal with Blackstone Group’s lending platform that has riveted credit derivatives market participants, WSJ Pro Bankruptcy reported. U.S. District Judge Laura Taylor Swain said on Monday that she wouldn’t stop Hovnanian from refinancing its debts at favorable rates under a transaction designed to send credit default swap payments to the lender, Blackstone’s GSO Capital Partners LP. The ruling marks a defeat for Solus Alternative Asset Management LP, which stands to take a loss if derivative contracts held by GSO are tripped. Solus had asked the judge to put a temporary hold on the deal pending the outcome of a fraud and manipulation lawsuit unfolding in New York federal court. The judge’s decision paves the way for an unorthodox transaction that has sparked debate about the viability of modern credit protection markets and ensnared investors on opposite sides of nine-figure swap bets.

A judge is giving a push to the stalled bankruptcy case of Natalie Pacileo, the former owner of Erie County Farms, GoErie.com reported. With no activity in the chapter 7 case since August, U.S. Bankruptcy Judge Thomas P. Agresti has ordered the trustee overseeing the case to appear for a status conference on Feb. 15. The trustee must “be prepared to inform the Court as to his plans for moving the case toward closure,” according to an order Judge Agresti issued on Friday. As the government-appointed trustee, Joseph Spero has been in charge of resolving the bankruptcy case since December 2016, shortly after Judge Agresti converted it from chapter 11 reorganization to chapter 7 liquidation. Pacileo, who did business as Erie County Farms, filed for bankruptcy in December 2015. The store reopened in March under new ownership as SPC/Erie County Farms. Spero had been working toward a liquidation plan to sell Pacileo’s assets, including her house, and pay her creditors, but the most recent action in the case came on Aug. 4, when Judge Agresti discharged Pacileo from chapter 7.

The University of Wisconsin System may still be on the hook for debts accrued by the UW Oshkosh Foundation. The non-profit foundation is filing for chapter 11 protection over several real estate deals gone bad, WPR.org reported. The UW System asked Bankruptcy Judge Susan Kelley to either delay or dismiss the filing by the UW Oshkosh Foundation, but she denied that request last week. The foundation is seeking bankruptcy protection because of more than $15 million in debt on five capital projects, three of which are in the red. They include a biodigester in Rosendale, Wisc., a campus alumni welcome center, and a sports complex. The foundation is asking the UW System to cover some of its liability. The UW System is pursuing legal action against former UW-Oshkosh Chancellor Richard Wells and former Vice Chancellor Thomas Sonnleitner who approved the real estate transactions.