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Benada Aluminum Products LLC, a Florida aluminum extruder formed last year as the product of a merger, has filed for chapter 11 protection after nearly running out of cash, Dow Jones DBR Small Cap reported yesterday. The Sanford, Fla., company plans to restructure under chapter 11 with the help of $6.25 million in financing from Wells Fargo & Co. and FTL Capital LLC. Benada said it owes $9 million to secured creditors, including $7 million to Wells Fargo and $2 million to FTL. It also owes $3.4 million to unsecured creditors, consisting primarily of trade debt. The company said its assets, including real estate, accounts receivable, inventory and cash, are worth about $12.5 million. The company will seek approval from the Orlando bankruptcy court to tap the bankruptcy financing from Wells Fargo and FTL at a Monday hearing.

Knight Capital Group's Chief Executive Tom Joyce is considering bankruptcy reorganization and a sale of assets, according to reports by Fox Business Network, Reuters reported yesterday. A trading glitch with Knight's software roiled markets and wiped out $440 million of the firm's capital, forcing it to seek new funding as its shares plunged more than 80 percent in two days. A number of brokerages and broker-dealers have suspended routing trading orders through Knight. Among them are TD Ameritrade, Scott Trade, Fidelity Investments, Vanguard Group, E*Trade and Pershing LLC, a division of BNY Mellon.

Thousands of Medicaid health care providers still got paid by the government even though they owed hundreds of millions of dollars in federal taxes, according to congressional investigators, The New York Times reported today. A legal technicality is making it harder for the Internal Revenue Service to collect. In a report released Thursday, the Government Accountability Office said that Medicaid payments to doctors, hospitals and other providers are not technically considered federal money because they are channeled through state programs. Because of that glitch, the IRS cannot just shut off payments to collect tax debts. Investigators recommended that the IRS reassess its policies.

California power company Edison International said that one of its unregulated generation subsidiaries may have to file for chapter 11 protection because the unit may not have enough liquidity to repay debt due in 2013, Reuters reported yesterday. Edison Mission Energy's liquidity will be exhausted by debt maturities and the need to upgrade its coal-fired power plants to meet new federal environmental rules, Edison International said in a regulatory filing on Tuesday. The unit needs to restructure about $3.7 billion of unsecured debt. It had cash and equivalents of $879 million as of June 30. Operating losses at the unit, which owns 45 power plants across the United States, increased significantly in the first half of 2012 due to lower power prices and higher fuel costs. The unit's second-quarter net loss widened to $110 million from $30 million a year earlier.

MF Global Inc. customers who had money trapped when the U.S. broker collapsed are rushing to sell their claims at higher prices after a prediction they could recover 100 percent of what was lost, Bloomberg News reported yesterday. Louis Freeh, the trustee for the brokerage's parent, MF Global Holdings Ltd., said yesterday at a U.S. Senate Agriculture Committee hearing that customers may eventually recoup all of their money. His testimony was at odds with that of a trustee for the brokerage, James Giddens, who predicted customers will eventually get a recovery of about 90 percent. Those who buy customer claims said that prices and volumes are increasing today as a result.

The owner of Diamond Jacks Casinos in Louisiana and Mississippi filed for chapter 11 protection on Tuesday, its second such filing since 2008, Dow Jones DBR Small Cap reported today. As a result of its prior chapter 11 plan, which became effective in September 2009, owner Legends Gaming LLC 's first- and second-lien loans were restructured, lowering the principal balance and capping the aggregate interest payments at $22 million, according to court documents. Despite this financing, Legends Gaming said that it had to enter bankruptcy again because its revenues have not been high enough to service the restructured loans.

American International Group Inc. is looking to buy back a large amount of its shares from the government in a push that could make the U.S. a minority shareholder by the fall and enable the insurer to fully repay its bailout sooner than expected, the Wall Street Journal reported today. AIG, which was effectively nationalized by the government four years ago as part of a controversial financial-industry bailout, has been accumulating billions of dollars in cash that it can use for share repurchases and other activities. Several analysts who follow the company say that the government's stake could be cut below 30 percent before the November elections, if asset sales expected by AIG in the coming months help the company raise a total of $10 billion to $15 billion in excess capital. The buybacks are likely to accompany one or more public share offerings of AIG stock by the Treasury, which over the past 16 months has reduced its stake from a peak of 92 percent through a series of at-market sales.

Daffy's, the New York area chain specializing in discounted designer labels, filed for bankruptcy protection, Reuters reported yesterday. The filing follows its announcement last month that it would liquidate its 19 stores. According to its chapter 11 filing, Daffy's 30 largest unsecured creditors are owed amounts ranging from $54,000 to $613,000.

Eastman Kodak Co. can proceed with the sale of a key digital imaging patent, a bankruptcy judge ruled yesterday, saying that Apple Inc. waited too long to raise a claim of infringement, Reuters reported yesterday. Bankruptcy Judge Allan Gropper approved the sale of the '218 patent, which Kodak considers one of the most important of the more than 1,100 patents it hopes to sell this month. Judge Gropper also cleared the way for Kodak to sell a second patent Apple had disputed, known as the '335 patent. He said that it was premature to give Kodak the right to sell several other patents, saying that he needed more information to decide the companies' respective rights.

An auction to sell off steel plants under RG Steel's chapter 11 proceedings has been delayed, according to steelworkers' union officials, Reuters reported yesterday. A posting on the website of the United Steel Workers local branch in Warren, Ohio, said that the auction scheduled to take place yesterday had been postponed "for a week or so." The notice gave no reason for postponement of the auction of the Sparrows Point plant in Baltimore, and two other RG Steel plants in Warren, Ohio and Wheeling, West Virginia. RG Steel LLC filed for chapter 11 protection on May 31 saying that it could not overcome the deterioration of the steel market and would sell off the three plants it bought last year from Russian steelmaker Severstal for $1.2 billion.