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Hit with a big fine for violating a judge’s order, Michigan lawyer David W. Charron filed for bankruptcy protection to avoid paying it, the Wall Street Journal Bankruptcy Beat Blog reported on Friday. But a bankruptcy judge derailed that plan on Wednesday, ruling that Charron’s civil contempt fine of $363,506.77 — a penalty for orchestrating the sale of an insurance firm despite a court order not to do so — isn’t the type of debt that a person can get rid of using bankruptcy. In his 26-page ruling, Judge James Boyd said that Charron can’t cancel his debt to Glenn Morris, the former co-owner of insurance agency Morris, Schnoor & Gremel Inc.

The judge in Montvale, N.J.-based A&P’s bankruptcy case said on Friday that he will not approve a $3.9 million retention pay plan for non-union employees unless the company adds another $1.1 million to its severance payments, which would go mostly to union workers, NorthJersey.com reported on Friday. Bankruptcy Judge Robert Drain said that he recognizes the need for retention bonuses for certain non-union employees, but that something needs to be done for the employees not eligible for the bonuses, particularly the union employees in the stores. A&P originally had asked for up to $5 million for bonus payments for 495 employees, but this week reduced the request to $3.9 million for 468 workers, creating a savings of $1.1 million. Judge Drain said that he will approve the retention pay request if it is amended to allocate the unspent $1.1 million to the pool of money being used to pay severance.

A federal appeals court is set to decide whether judges can tear up corporate prosecution agreements they deem too lenient, in a case that Justice Department officials fear will disrupt the agency’s deals with companies under criminal investigation, the Wall Street Journal reported today. Deferred prosecution agreements (DPAs) have been the Justice Department’s preferred means for punishing large companies without leaving the scar of a criminal conviction, but judges, who must approve such deals, have become increasingly skeptical of them. DPAs allow companies to avoid prosecution by paying a fine and submitting to certain conditions for a period of probation, after accepting responsibility for wrongdoing. The government began settling an increasing number of criminal investigations using deferred-prosecution agreements and nonprosecution agreements, or deals made outside of court, after an outcry about the collapse of accounting giant Arthur Andersen, following its indictment and conviction in 2002. That conviction was overturned in 2005.

A bankruptcy judge has appointed attorney Jason Searcy as chapter 11 trustee for San Antonio-based oil company Primera Energy LLC while the company reorganizes operations, the San Antonio Business Journal reported yesterday. Bankruptcy Judge Craig Gargotta signed the order appointing Searcy yesterday. Primera Energy owner Brian Alfaro lost control of his company during a hearing last week where Bankruptcy Judge Ronald King decided that a chapter 11 trustee should oversee the company, reorganize it and hopefully restore it to health.