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Two affiliates of troubled Indianapolis-based developer HDG Mansur oppose requests to appoint a chapter 11 trustee or convert the case to a liquidation in chapter 7, saying that significant progress has been made toward a plan and global settlement of claims, the Indianapolis Business Journal reported today. HDGM Advisory Services LLC and HDG Mansur Investment Services Inc., which managed Shariah-compliant investment funds, filed court papers Sept. 11 opposing the requests. The requests were made by KFH Capital Investment Co. and Kuwait Finance House Real Estate Co., which sued Mansur Investment and owner Harold Garrison in the United Kingdom for breach of contract, fraud and negligent misrepresentation, according to court papers. The KFH entities aren’t eligible to seek such “drastic measures” because they’re not creditors of, nor do they have claims against, both debtors, according to the fund managers. They are motivated by “some other unstated purpose,” not their chapter 11 rights or distributions in the case, the fund managers said in the court filings.

The bankrupt Revel casino hotel in Atlantic City will go to auction on Sept. 24, a judge ruled yesterday, after the only bidder clashed with creditors who wanted to slow the rushed sale, Reuters reported yesterday. Bankruptcy Judge Gloria Burns also set Sept. 23 as the deadline for competing bids to top the $90 million offered by Florida developer Glenn Straub and his Polo North Country Club Inc. Revel cost $2.4 billion to construct. Revel also got approval to pay Straub a $3 million break-up fee if his is not the winning bid at the auction. The auction was set for two weeks after Straub's proposal was made public, and creditors complained that potential buyers needed more time to put together competing bids. The hearing was marked by threats of litigation if the auction was postponed, complaints that Straub was being secretive about his plans for the massive complex and the appearance of a potential competing bidder.

NII Holdings Inc, the parent of Nextel operators in Latin America, filed for chapter 11 protection yesterday after struggling for years with debt, fierce competition in Brazil and Mexico, and a dispute with a U.S. hedge fund, Reuters reported yesterday. The decision should allow Reston, Va.-based NII Holdings to restructure debt with creditors by turning them into shareholders. NII Holdings operates in several countries in Latin America under the Nextel brand. NII said in court documents that it had received a notice in March from Aurelius Capital Management alleging that it had defaulted on $500 million of unsecured notes. Aurelius said that it had presented a plan to NII that would convert the company's debt into equity and raise fresh capital by selling new stock in the company, while deferring some disputes until after NII emerged from bankruptcy.

The widow of “American Sniper” Chris Kyle is suing the Texas law-enforcement-training business he founded, saying that the company has been illegally using Kyle’s image to sell merchandise and training services, the Wall Street Journal reported today. In court papers, lawyers for Taya Kyle said that Craft International LLC continues to use the name of her dead husband — who claimed to be the most lethal sniper in U.S. military history — without her permission. Kyle said that she and her children “have the right to control the use of Chris Kyle’s name, likeness and image” after he was killed on Feb. 2, 2013, on a Texas gun range. Merchandise sales at Craft International, which filed for bankruptcy on May 30, soared after his death, according to documents filed in U.S. Bankruptcy Court in Dallas. Half of the company’s $900,000 in revenue last year came from apparel sales; only 13 percent of the company’s $655,000 in revenue came from ammunition and apparel in 2012.

U.S. Trustee Roberta DeAngelis said that a bankruptcy judge should reject a proposed sale of Education Training Corp.'s schools because the sale occurred prior to the company's chapter 11 filing and was designed to skirt federal regulations, Dow Jones Daily Bankruptcy Review reported today. Education Training — a for-profit school that operated post-secondary schools under the Anthem and Florida Career College brands — filed for chapter 11 protection in August, immediately following a quick sale of 14 of its campuses in an effort to keep them operational. Had Education Training still been the owner of the schools when it filed for bankruptcy, the U.S. Department of Education would have revoked those schools' ability to accept federal student loan dollars. Those dollars made up 90 percent of Education Training's revenue, meaning that action by the Education Department would have rendered the schools basically worthless.

An auction for Oncor, the regulated distribution unit of bankrupt Texas power company Energy Future Holdings, could come in the first quarter of next year, as interest in the prized asset mounts, Reuters reported yesterday. Energy Future, which filed one of the 10 largest chapter 11 bankruptcies in April, is targeting an auction in the first quarter of 2015, with Bank of America Merrill Lynch retained to seek buyers, the people said in recent days. NextEra Energy Inc., which last month dropped a bid for Oncor, and Hunt Consolidated, which recently hired a former Energy Future executive to lead its investment arm, are expected to continue to be in the fray. Hunt is considering structuring Oncor as a real estate investment trust (REIT) to go along with its Sharyland Utilities unit, which is among the only REIT-structured entities in the energy sector. Houston-based Centerpoint Energy and Spanish Iberdola SA have also shown interest.

Philip Falcone's Harbinger Capital Partners filed a new restructuring proposal for the smaller pool of LightSquared 's assets, a plan that includes financing from JPMorgan Chase & Co., Dow Jones Daily Bankruptcy Review reported today. In a Thursday court filing, Harbinger offered more specific details on a proposal made last month. J.P. Morgan will provide $280 million in bankruptcy financing, with Harbinger investing $180 million.

It has been six years since Lehman Brothers Holdings Inc. collapsed, plunging the global economy into chaos, but the work of unwinding the largest bankruptcy in U.S. history still isn't finished, the Wall Street Journal reported today. The professionals unraveling the failed investment bank now expect to recover about $88.8 billion for creditors, who are owed an estimated $341 billion. So far, Lehman's parent company and its units have paid out $57.1 billion to unsecured creditors, excluding Lehman affiliates. While its New York-based holding company officially exited bankruptcy in 2012, Lehman's liquidation process is expected to continue for several more years.

RadioShack Corp. is considering a $585 million financing package led by hedge fund Standard General LP and investment bank UBS AG in an attempt to keep the struggling electronics retailer out of bankruptcy, the Wall Street Journal reported on Saturday. Under the plan, UBS will coordinate $325 million of commitments and Standard General will arrange $260 million to replace GE Capital's $585 million loan and credit facility. The new loans would loosen some restrictions in the terms of GE Capital's loan, giving the ailing retailer quicker access to cash through the holiday season. On Thursday, the company said that it could soon run out of cash and be forced to liquidate or seek bankruptcy protection if it can't find a way to improve its finances. RadioShack said its cash stockpile had dwindled to $30.5 million by Aug. 2, representing about $6,800 for each of its 4,485 stores. The company also had access to $152 million under its credit line from GE Capital. (Subscription required.)
http://online.wsj.com/articles/radioshack-considering-585-million-finan…

In related news, RadioShack Corp. said that John Feray resigned as chief financial officer last week, Reuters reported today. The company said today that it has named AlixPartners LLP managing director Holly Etlin as interim CFO. Advisory firm AlixPartners has been helping RadioShack with its turnaround since July 2013. Feray, who joined in January from Dollar General Corp , resigned on Sept. 12 citing personal reasons, RadioShack said in a statement. Etlin also served as RadioShack's interim CFO between July 2013 and February.
http://www.reuters.com/article/2014/09/15/radioshack-cfo-idUSL3N0RG3HB2…

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Apollo Global Management LLC’s Momentive Performance Materials Inc. won court approval of its bankruptcy plan that cuts debt to less than $1.3 billion from $4 billion, Bloomberg News reported on Friday. Bankruptcy Judge Robert Drain signed the confirmation order on Thursday after saying earlier in the proceeding that he would approve the plan if the chemical company boosted the interest rate on notes in the reorganized company. Bonds were trading at record volumes after he gave his conditional approval Aug. 26. The plan was negotiated by Momentive Performance, Apollo and a committee representing holders of second-lien secured debt. Most of the reorganized company’s stock will go to holders of $1.34 billion in 9 percent second-lien notes.