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Bankrupt solar firm Solyndra has filed a lawsuit against three U.S.-listed Chinese solar players, including Suntech Power Holdings Co, seeking $1.5 billion in compensation due to monopolization by these firms, Reuters reported on Friday. The lawsuit was filed against Suntech, Trina Solar Ltd and Yingli Green Energy Holding Co claiming that the trio's panel prices moved in tandem - falling 75 percent in four years in the U.S. Solyndra, which claims in the lawsuit that the trio were involved in predatory pricing and price fixing, filed for bankruptcy a year ago as it could no longer compete with plunging prices of solar panels imported from China. U.S. solar companies launched a complaint last year alleging protectionism from Beijing for Chinese panel makers, sparking trade disputes between the two countries.

Solyndra LLC has accused Suntech Power Holdings Co. (STP) and other Chinese companies of destroying it by running an illegal cartel, Bloomberg reported today. Solyndra, which sought bankruptcy protection in August 2011, is seeking compensation “for the loss of the $1.5 billion value of its business and more which defendants destroyed,” according to a complaint filed yesterday. The defendants schemed with each other, raw material suppliers and certain lenders to flood the U.S. solar market with solar panels at below-cost prices, the Fremont, Calif.-based company said in the complaint. The case is Solyndra LLC v. Suntech Power Holdings Ltd., 12-05272, U.S. District Court, Northern District of California (San Francisco). The bankruptcy case is In re Solyndra LLC, 11-12799, U.S. Bankruptcy Court, District of Delaware (Wilmington).

American Airlines said that it will cut back on its passenger capacity through the first half of November and has canceled hundreds of flights, Reuters reported yesterday. The carrier, which filed for chapter 11 protection last year, said that it was cutting its flight schedule through the first part of November by 1 percent to give it more flexibility to organize crews and planes to return to a more normal pattern. American said the move would not affect holiday travel. Spokeswoman Andrea Huguely said that American is canceling about 31 flights a day out of about 3,500 daily trips between now and mid-November, adding that American has canceled about 400 flights since September.

Hostess Brands Inc. filed a reorganization plan that includes wage cuts, reduction in health care and welfare benefits, and a freeze on pensions for at least two years, Reuters reported yesterday. Hostess is seeking to eliminate unsecured claims worth about $2.5 billion under the plan, and its equity owners may end up losing their investments, the company said in a court filing. Hostess filed for chapter 11 protection in January for the second time in less than three years as it struggled with crippling costs associated with its pension plans. Union and nonunion employees will take an 8 percent wage cut and will see only modest hikes in the coming years. The case is In re Hostess Brands Inc., Case No. 12-22052, U.S. Bankruptcy Court, Southern District of New York.

Eastman Kodak Co. said Wednesday that it has asked a bankruptcy court judge to allow it to end retiree medical and some other benefits at the end of the year as part of its restructuring, The Associated Press reported yesterday. The company said it reached an agreement with the court-appointed committee of retirees to pay a total of $650 million in claims and $7.5 million in cash into a fund that could be used for future payments in exchange for eliminating its current $1.2 billion liability for medical, dental, life insurance and survivor income benefits. A company spokesman said pensions would not be affected, adding that the other benefits cost about $10 million monthly and the change is essential to emerging successfully from chapter 11 protection. A hearing on the agreement has been scheduled for Oct. 29.

Strapped for cash and eager to renegotiate its real-estate leases, Seattle coffee-shop chain Tully's Coffee filed for bankruptcy protection Wednesday in the U.S. Bankruptcy Court for the Western District of Washington, The Seattle Times reported yesterday."We're at a point where we need to position Tully's for the future," said CEO Scott Pearson. "We need to be able to keep this company operating, and this is the best option for us." Although Tully’s is no longer burdened by the enormous debt that plagued it for years, it is low on cash. The company had $1.8 million in cash on Jan. 1, the most recent date for which information is available, down from $2.8 million a year earlier. The bankruptcy filing shows assets of $5.9 million and liabilities of $3.7 million. The company said it hopes to renegotiate terms on its real estate leases, including on cafes it is closing.

Bakers Footwear Group Inc . won interim court approval to tap a piece of a $22 million loan as it restructures under chapter 11 protection, Dow Jones DBR Small Cap reported today. Bankruptcy Judge Kathy A. Surratt-States on Friday signed off on the company's request to immediately access $6 million of the bankruptcy financing package from Crystal Financial LLC.

The Labor Department has rejected aid packages for Abound Solar Inc. workers at the Colorado company in four locations, the Washington Times. Notices for three of the determinations were published late last week in the Federal Register. In each case, the Labor Department decided against doling out special government aid for workers who were displaced by foreign competition. While officials previously certified assistance packages for Solyndra workers, the Labor Department said that imports of products competing with Abound's products had not increased enough to make workers eligible for the aid. Though both were solar-panel makers, Abound and Solyndra made different products, even as their bankruptcies linked them in political headlines.

Bankruptcy Judge Sean Lane yesterday approved an extension for Arcapita Bank BSC, an Islamic-compliant fund manager, to file its reorganization plan with the court, Bloomberg News reported today. The company has until Dec. 14 to file a plan and until Feb. 12 to win creditors’ support. A group of lenders owning $1.1 billion of Arcapita’s unsecured debt had objected to the extension in court papers, saying that the company already has a plan that may lead to sales of investments with a liquidation value of $1.4 billion.

Zacky Farms LLC, a Fresno, Calif.-based poultry producer, filed for bankruptcy with plans to sell itself to pay creditors owed as much as $100 million, Bloomberg News reported yesterday. The closely held company blamed the filing on heavy debt and soaring feed costs. The poultry industry has been under "severe stress due to historically high corn and soybean meal prices" leading to "significant operating losses" in its turkey and chicken business, the company said. Zacky listed as much as $100 million in assets in its bankruptcy filing.