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A bankruptcy judge on Friday said that a group of Residential Capital LLC's bondholders aren't entitled to interest accrued since the mortgage servicer's bankruptcy filing, at least as of now, Dow Jones Newswires reported on Friday. Bankruptcy Judge Martin Glenn said that ResCap's junior secured noteholders are owed $1.9 billion and thus aren't "oversecured," after the first phase of a trial held last month. If the bondholders are deemed oversecured — which could still happen — they'd be entitled to interest accrued since ResCap's May 2012 bankruptcy filing, which they say is being racked up at $250 million per year. Another phase of the trial could still alter the numbers and render the creditors oversecured. But Judge Glenn said that the bondholders were wrong when they said they are owed $2.22 billion and are actually undersecured by $318 million. He did deal ResCap a blow by saying that the company can't collect $143 million in expenses related to the loans.

Puerto Rico’s El Vocero newspaper could soon get a new owner that would preserve its voice on the 3.6 million-resident island, the Wall Street Journal reported on Saturday. A trustee in charge of the newspaper’s bankruptcy case has proposed to hold a public auction on Nov. 22. Court documents show that the newspaper already has a $1.9 million offer from an investor group that would continue to operate the paper, which publishes columns by Ricky Rosselló, a rumored aspiring political candidate whose political advocacy group is pushing for the island to become a U.S. state. Challenging offers will have to start at $2 million, according to court papers. The trustee who’s handling the public auction said that the newspaper’s sale needs to be finalized by Nov. 30 to avoid a shutdown, according to court papers.

Bankrupt wireless communications firm LightSquared Inc. has filed a lawsuit accusing Dish Network Corp. and its chairman, Charles Ergen, of improperly trying to take control of LightSquared's broadband spectrum, Reuters reported yesterday. The lawsuit, filed in bankruptcy court on Friday, is an effort to revive an earlier case by LightSquared's controlling stakeholder, Phil Falcone's Harbinger Capital Partners, that was thrown out last month. LightSquared alleges that Dish, Ergen, and other Ergen-controlled entities made improper trades and violated a key credit agreement in order to become LightSquared's largest creditor, with the intention of taking control of LightSquared's spectrum, the airwaves used for wireless communications.

Advantage Rent a Car is seeking court approval to zoom through bankruptcy with a fast-track auction at which its bankruptcy lender will start the bidding, Dow Jones Daily Bankruptcy Review reported today. The car-rental chain on Tuesday filed court papers asking court permission to let it sell its assets to Catalyst Capital Group Inc., subject to higher bids at a Dec. 9 auction.

Global Aviation Holdings Inc.’s latest bankruptcy stalled when a U.S. judge said that she can’t act on the company’s petition for court protection because the air charter service still hasn’t finished its first bankruptcy, Bloomberg News reported yesterday. Bankruptcy Judge Mary Walrath ended the initial hearing for the company’s second bankruptcy after a few minutes yesterday so that lawyers could try to figure out if there’s a way to pursue the new case in Wilmington, Del., instead of returning to Brooklyn, N.Y. At the request of the company, the biggest provider of private air charter services to the U.S. military, Judge Walrath agreed to put off the initial hearing to today unless the judge overseeing the first case decides to take over the new one as well. After emerging from bankruptcy in February, Global Aviation “continued to encounter various financial and operational hurdles, including decreased demand for military cargo and passenger services resulting from government budget constraints,” the company said in court documents filed yesterday.

Residential Capital LLC, as it marches toward exiting bankruptcy, is asking a judge to approve the settlement of a $ 99.7 million class-action lawsuit over alleged improper fees it charged on loans made more than nine years ago, Dow Jones Newswires reported yesterday. ResCap said in a court filing on Tuesday that it will pay $14.5 million to the borrowers, in addition to the $12.9 million it already paid after losing previous court trials on the matter. While the settlement was reached in early 2012, ResCap's bankruptcy case triggered a halt of pending litigation. Now, less than a week away from asking a judge to clear its chapter 11 exit, ResCap is asking him to lift the automatic stay allowed by bankruptcy law so he can approve the deal. The settlement includes 248 loans and about 365 potential borrowers on those loans, ResCap said. The plaintiffs alleged that two ResCap subsidiaries collected improper fees and interest on second mortgages. While those borrowers initially won a $99.7 million judgement, a lower court called for a new trial over much of that money.

Longview Power LLC is proposing to get out of bankruptcy by way of a chapter 11 plan that drops $1 billion in debt from its balance sheet and provides money to cover the cost of fixing the problem-plagued plant, Dow Jones Newswires reported yesterday. Outlined in court papers yesterday, Longview's restructuring proposal has the support of senior lenders who have agreed to swap some of their debt for equity in a reorganized company. Some of them have signed up to provide a $150 million loan to fund Longview's exit from Chapter 11, as well as fix the plant and keep it running, saving some 650 jobs in the process. The new loan and the chapter 11 plan marks a way out for Longview not just from bankruptcy but from a looming cash crunch. With some $58 million worth of letter of credit borrowing power locked up in a dispute with contractors, and a plant running at partial capacity, Longview has warned of possible irreparable harm if the financing does not go through.

Longview Power LLC's restructuring adviser said that the company will be out of cash, but allowed to borrow more, by next Friday if a judge doesn't approve $150 million in new financing from senior lenders, Dow Jones Newswires reported yesterday. Lazard Ltd. Director Tyler Cowan said in a court filing yesterday that the company's bankruptcy loan will "instill confidence" to both creditors and customers of Longview, which is trying to fix both its balance sheet and its coal-fired power plant. Cowan said that the agreement surrounding the company's current source of cash, from a subset of its lenders, would run out on Nov. 22. A hearing on the new financing is set for next Thursday, Nov. 21. The adviser said that the timing makes the $150 million bankruptcy loan — from lenders holding more than 60 percent of the company's senior debt — that much more imperative.

Court Square Capital Partners LP’s Physiotherapy Holdings Inc., which provides outpatient rehabilitation and sports-injury therapy, filed for bankruptcy protection with creditor support for a restructuring plan, Bloomberg News reported yesterday. The Exton, Pa.-based company listed debt of as much as $500 million and assets of as much as $1 billion in documents filed yesterday in bankruptcy court. Nearly 50 affiliates also are seeking court protection. Physiotherapy’s restructuring plan is supported by all of the company’s senior secured lenders and 99.7 percent of its bondholders, though terms of the plan were not immediately available.

Eastman Kodak Co., the once mighty photography pioneer that emerged from bankruptcy protection in September, reported a quarterly loss of $155 million after stripping off reorganization items and discontinued operations, Reuters reported yesterday. Kodak said that it adopted fresh-start accounting and provided separate figures for the month, which was a loss of $18 million. The company reported revenue of $563 million and a profit of $1.99 billion for the third quarter. Kodak said that it had $839 million in cash and debt of $679 million as of Sept. 30. The company is focusing on commercial products such as high-speed digital printing technology and printing on flexible packaging for consumer goods.