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Overseas Shipholding Group Inc. bondholders are digging in their heels over an estimated $2.2 million sum, a drop in the bucket in the ocean carrier's multibillion-dollar chapter 11 case, but one that investors say is worth the fight, Dow Jones Daily Bankruptcy Review reported today. Owners of Overseas Shipholding bonds claim that they are entitled to collect interest on the interest they didn't receive while the company worked through its financial problems. One of the world's largest operators of oil tankers, Overseas Shipholding says that it will pay investors everything they are owed when it comes out of bankruptcy, but the calculation doesn't include interest on interest.

Philip Falcone’s LightSquared Inc. settled a fight with Dish Network Corp. Chairman Charles Ergen over more than $1 billion in debt he holds in the bankrupt wireless broadband company, taking it one step closer to exiting court protection, Bloomberg News reported yesterday. Details of a new chapter 11 plan will be filed within a week, Joshua Sussberg, a lawyer for a special committee of LightSquared, told Bankruptcy Judge Shelley Chapman at a court hearing yesterday. A dispute between the company and Ergen, its one-time suitor, scuttled a prior plan to reorganize. The deal with Ergen, which has yet to be completed, “will alleviate a significant burden and execution risk around the plan,” Sussberg said.

A western Nebraska nonprofit corporation that provides social services says that it is filing for bankruptcy protection from its creditors, the Associated Press reported on Friday. The agency is Gering, Neb.-based Community Action Partnership of Western Nebraska and it runs more than 45 programs, including Head Start and a medical clinic. Its money comes from fees, grants, fundraising and government sources. Interim executive director Margo Hartman says that the intention is "to get this into a stable spot and keep providing services." Hartman said that there would be no immediate effect on employees or services but says some programs eventually could be eliminated if they aren't financially viable.

A bankruptcy judge on Friday pushed back a decision on a proposal to auction Atlantic City-based Revel Casino Hotel, which last month filed for chapter 11 protection while it searches for a buyer, Dow Jones Daily Bankruptcy Review reported today. During a bankruptcy court hearing, Revel and its unsecured creditors were unable to come to terms over disputes involving the right of Revel's lender to credit bid as well as the timeline for submitting bids.

Love Culture Inc., a women’s-wear retailer with more than 80 stores, is preparing to file for bankruptcy in a New Jersey court, Bloomberg News reported on Friday. The chain will seek to continue operations and sell itself as a going concern. Love Culture was founded in 2007 by Jai Rhee and Bennett Koo, former executives at fast-fashion retailer Forever 21, with the aim of selling affordable style to young women. Lowenstein Sandler LLP and New York-based PricewaterhouseCoopers LLP are representing the company.

Philip Falcone’s Harbinger Capital Partners LLC filed a $2 billion lawsuit against the U.S., two years after the Federal Communications Commission refused to approve the wireless broadband service of his now-bankrupt LightSquared Inc., Bloomberg News reported on Saturday. The U.S. reneged on a March 2010 commitment under which Harbinger agreed to invest billions of dollars to build a network to government specifications, the New York-based investment firm said in a complaint yesterday in the U.S. Court of Federal Claims in Washington. LightSquared filed for bankruptcy in 2012 after the FCC declined to approve its service, saying that it might interfere with global positioning systems. Harbinger, which controls LightSquared for now, is seeking recovery of its $1.9 billion investment, along with unspecified damages, according to a copy of the complaint provided by a lawyer for Harbinger.

A New Jersey state assemblyman said that the struggling gaming industry in Atlantic City faces another blow as the Trump Plaza casino prepares to tell workers it may close in September, Bloomberg News reported on Saturday. Trump Entertainment Resorts Inc. lawyers said on Friday that the property may shutter as soon as Sept. 16, said Assemblyman Vincent Mazzeo, a Democrat who represents Atlantic City in the state legislature. Notices will be sent to 1,000-plus workers as soon as this week warning them of the possible closure, he said. Trump Plaza would join a roster of Atlantic City casinos buckling under as the resort community has yet to rebound from the worst U.S. recession since World War II. The Atlantic Club casino closed in January, Caesars Entertainment Corp. announced it will shut down its Showboat property on the city’s boardwalk Aug. 31, and Revel, a $2.4 billion mirrored-glass casino that was supposed to usher in an era of opulence and resurgence for the city, is searching for a buyer in bankruptcy.

Court documents show that Crumbs Bake Shop Inc. may get a second chance if a bankruptcy judge approves a deal for the owner of Dippin' Dots ice cream and the star of a reality television show to buy and reopen the U.S. cupcake chain, Reuters reported on Saturday. Crumbs, which specialized in oversized cupcakes and went public in 2011, shuttered its nearly 50 locations in 10 states and the District of Columbia on July 7 and filed for chapter 11 protection on Friday. Part of the group seeking to buy the chain is Marcus Lemonis, star of CNBC reality show "The Profit" and known as the "business turnaround king." He, along with Fischer Enterprises LLC, the owner of Dippin Dots, would provide debtor-in-possession financing and subsequently buy the cupcake chain through a joint venture called Lemonis Fischer Acquisition Co., according to the document. They would reform Crumbs as a privately held company, reopen its stores and resume operations.

Crumbs Bake Shop Inc., the cupcake chain that abruptly shuttered its stores this week, is working on a plan to save the business, Bloomberg News reported today. The company is in talks with “various interested parties” as Crumbs plans its next steps, Chief Executive Officer Edward Slezak said yesterday. The deal may hinge on CNBC personality Marcus Lemonis, who has formed an investment group to supply Crumbs with financing en route to a possible acquisition, according to his cable-TV network. Lemonis, who also serves as CEO of Camping World and Good Sam Enterprises, is the star of “The Profit,” a show where he spends millions of his own money to save failing companies.

A bankruptcy auction is still weeks away, but the price of Optim Energy's Twin Oaks power plant continues to jump, with Texas giant Energy Future Holdings Corp. signaling it could go as high as $87.5 million for the facility, Dow Jones Daily Bankruptcy Review reported today. Optim is selling the coal-fired plant to help pay off its debts in chapter 11. The price, offered by Blackstone Group, started out at $60 million. On Wednesday, Energy Future told the bankruptcy court overseeing its own chapter 11 proceeding it may bid as much as $87.5 million for the facility near Bremond, Texas.