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Edison Mission Energy will emerge from bankruptcy liability-free under a settlement that gives its parent, Edison International, a net benefit of $200 million, Chief Executive Officer Ted Craver of Edison International said, Bloomberg News reported yesterday. The settlement “reduces risk and allows investors to focus more on the core Edison International investment thesis,” Craver said yesterday. The settlement, which needs bankruptcy court approval, was announced today in a filing with the U.S. Securities and Exchange Commission. Edison Mission, which filed for bankruptcy in December 2012, is seeking to emerge by selling its business to NRG Energy Inc. for $2.64 billion.

Atlantic Express Transportation Corp. has asked a bankruptcy judge to approve National Express Corp.'s $11.75 million bid for its Philadelphia school district busing operations, Dow Jones Daily Bankruptcy Review reported today. Following a Feb. 11 auction, National Express emerged with the highest offer for the Philadelphia-based assets, which include 364 buses. Should Bankruptcy Judge Sean H. Lane consent to the sale, Atlantic Express would receive $8.75 million in addition to about $3 million in assumed liabilities.

Indiana Limestone Co., which has mined slabs of stone for the Empire State Building and the Pentagon, filed for bankruptcy after struggling to repay a $53 million loan, Dow Jones Daily Bankruptcy Review reported today. Officials put Indiana Limestone into chapter 11 protection yesterday while they look for buyers who could top a $26 million lead offer for the company's quarries, which cover more than 4,000 acres and are expected to produce more than 100 years' worth of limestone.

Seymour, Ind.-based bioplastics maker Cereplast Inc. on Feb. 10 filed for chapter 11 protection from creditors, PlasticNews.com reported yesterday. Cereplast reported a net loss of $34 million on sales of $2.1 million for the nine months ended Sept. 30 — the latest financial results that the company reported. The company said that it is "actively negotiating a debtor-in-possession financing from several interested parties.”

Dots LLC Chief Executive Lisa Rhodes has left the women's clothing retailer, prompting the chain's lawyers to ask a bankruptcy judge for permission to terminate her $750,000-a-year employment contract, the Wall Street Journal reported on Saturday. In court papers, Dots lawyers announced that Rhodes departed the company Feb. 7 after 18 months as its top leader. Her departure came as company officials are searching for a buyer to purchase the chain's roughly 400 stores out of bankruptcy. Rhodes joined the company during a revitalizing effort to win back customers who left when the quality of the chain's merchandise declined under prior management, according to court papers. Dots lawyers last week asked Bankruptcy Judge Donald H. Steckroth for permission to end her employment agreement.

OSX Brasil SA, the bankrupt shipbuilding company controlled by former billionaire Eike Batista, is in talks with Cerberus Capital Management LP and a number of unnamed investors for a potential debtor-in-possession financing deal, Reuters reported yesterday. Currently no agreement has been struck between OSX and potential sources of the loan, the Rio de Janeiro-based company said in a securities filing yesterday. OSX's focus at this point is what to do with three floating production storage and offloading vessels it owns, according to the filing. A source with knowledge of the situation said OSX, which filed for bankruptcy protection late last year, is seeking between $200 million and $215 million in financing to move ahead with a restructuring process.

Gilbert Hospital, a once highly profitable Arizona hospital that served as a model for other emergency-room centers, has filed for chapter 11 protection, the Arizona Republic reported today. Gilbert Hospital executives did not return multiple calls, but an attorney said that the bankruptcy filing stemmed from several factors, including a loss of financing, management changes, competition from other Gilbert hospitals and construction near the hospital that may have discouraged patients from visiting its emergency room.

Wanxiang Group, China's largest auto parts company, won a bankruptcy auction for the assets of Fisker Automotive, the defunct manufacturer of the Karma plug-in hybrid sports car, Reuters reported on Friday. Wanxiang's bid has been valued at about $149.2 million, representing $126.2 million of cash, $8 million of assumed liabilities, and a contribution of common equity in an affiliate designated by Wanxiang, Fisker said in a statement. The sale will be presented to Bankruptcy Judge Kevin Gross today for approval. Wanxiang outbid an affiliate of Richard Li, a Hong Kong billionaire and Fisker investor.

Bankrupt wireless company LightSquared Inc. has proposed a new restructuring plan that would remove certain regulatory hurdles to its exit from chapter 11 while potentially subordinating the bankruptcy claim held by its largest creditor, an entity run by Dish Network Corp Chairman Charles Ergen, Reuters reported on Saturday. In court papers filed late on Friday night, LightSquared outlined a restructuring plan fueled by $2.35 billion in new financing from Fortress Investment Group and others, which would not be contingent on gaining regulatory approval for a planned wireless network, as was its previous plan. It would allow its current equity owner, Phil Falcone's Harbinger Capital Partners, to retain a stake in the company post-bankruptcy, along with Fortress and Melody Capital, also a financier of the new loans. But Ergen's investment vehicle, despite being the largest holder of LightSquared's loan debt, would be paid out in the form of new debt, rather than cash, like other lenders. The new debt may or may not be secured by collateral, depending on whether Ergen votes in favor of the plan.

Freedom Industries is asking the bankruptcy court to speed up the hearing process and give approval to hire experts and environmental consultants to look into details of the Jan. 9 chemical spill, the Charleston (W.Va.) Daily Mail reported yesterday. Freedom wants experts and consultants to assist in remediation of the site, help preserve evidence and help in the defense against lawsuit allegations. The filing also explained Freedom's insurance policies, which will pay for parts of the remediation process. In Saturday's bankruptcy court filing, Freedom requests the hearing on this motion to take place at 10 a.m. on Friday — the same time the court will hear other bankruptcy motions, including the final hearing on Freedom's financial motion.