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Freddie Mac says Residential Capital LLC’s $596.5 million mortgage-backed securities settlement with the Financial Guaranty Insurance Co. would unfairly harm investors involved in FGIC’s separate rehabilitation proceeding, Dow Jones Daily Bankruptcy Review reported today. In a court filing on Thursday, lawyers for Freddie Mac said that while it doesn’t have problems with a settlement itself, it does have a problem with a key provision that could damage its recoveries in FGIC’s rehabilitation program under the control of the state of New York. That provision calls for the termination of insurance policies issued by FGIC that guarantee the principal and interest on certain ResCap-related mortgage-backed securities, which, according to Freddie Mac, “will significantly and negatively impact Freddie Mac’s recoveries” in the New York rehabilitation.

Casey Anthony has agreed to pay $25,000 to her bankruptcy estate to avoid having to sell her life story, the Associated Press reported yesterday. A judge in her bankruptcy case in Tampa approved the agreement between Anthony and her bankruptcy trustee in court papers made public on Wednesday. The trustee had considered the possibility of selling Anthony’s life story to help pay off her debts to creditors. Anthony had opposed the idea, and her lawyers had argued that it would give the purchaser of the rights control over Anthony for the rest of her life. Anthony was acquitted two years ago of murder, manslaughter and child abuse charges in the death of her 2-year-old daughter, Caylee, in Orlando.

Residential Capital LLC has reached a deal with borrowers to settle a class-action lawsuit over so-called high-cost mortgage loans, Dow Jones Daily Bankruptcy Review reported today. In a court filing on Wednesday, ResCap said it will create a fund with no less than $57.6 million, which will go to the borrowers on 44,535 second mortgage loans. The borrowers, who were suing ResCap over what they said was $1.87 billion in damages, will receive an allowed claim of $300 million in ResCap’s bankruptcy case.

A judge signed off Friday on Residential Capital LLC’s deal with the Federal Reserve Board to set aside $230 million for borrowers who may have had their homes improperly foreclosed upon, Dow Jones Daily Bankruptcy Review reported today. The deal approved by Bankruptcy Judge Martin Glenn replaces a costly and drawn-out review process that sent millions to the professionals investigating the foreclosed loans and little or nothing to most borrowers who may have been wronged.

Lehman Brothers Holdings Inc. said in filings it expects to collect another $3.2 billion from the workout of its derivatives book through 2015, of which $2.3 billion should come in the remainder of 2013, Dow Jones Newswires reported on Saturday. The failed investment banking powerhouse, which filed for bankruptcy in September 2008, is still negotiating with 1,000 of the 6,500 counterparties it had on the original derivatives portfolio, which had a $39 trillion notional value. Since 2008, the firm has recovered more than $15 billion from those derivatives. What remains is a fraction of the original face value, and the counterparties range from large, sophisticated financial institutions and hedge funds to municipalities and nonprofits.

A group representing the victims in the New England Compounding Pharmacy Inc. chapter 11 case is asking the bankruptcy court to open the door for lawsuits against other potentially liable companies, such as health care providers who administered the injections responsible for a deadly meningitis outbreak last year, the Wall Street Journal reported on Saturday. The company’s unsecured creditors’ committee has requested that a bankruptcy court to formally declare that New England Compounding is insolvent so it can begin that process, according to court documents. Some states—specifically Tennessee, where 153 cases of meningitis linked to the tainted injections were reported and 15 people died as a result—require this declaration of insolvency before permitting litigation against third parties in product liability cases to move forward. However, the committee has asked that the bankruptcy court make this declaration apply exclusively to lawsuits filed as part of the consolidated proceeding in Massachusetts, in an effort to keep all of the litigation and all of the money under one umbrella. The ultimate goal, the committee said in court documents filed Thursday, is to set up a process for these third parties to contribute funds to the bankruptcy estate in exchange for a release of their liabilities.

Retirees say they fear a recent proposal from AMR Corp. may let the parent of American Airlines shed nearly $1.37 billion in retiree claims that the bankruptcy court has yet to evaluate, Dow Jones Daily Bankruptcy Review reported today. The retirees are taking aim at a proposal by AMR to set aside $331 million to cover certain claims that are determined eligible for payment after checks have already started going out to other creditors.

MF Global Inc.’s trustee said that former customers should get “significantly” increased distributions in coming months, and the goal is still 100 percent recoveries, Bloomberg News reported yesterday. Customers who traded on U.S. exchanges may get distributions starting in early September that would bring their percentage recoveries into “the high nineties” while customers who traded on foreign exchanges may get “in the sixties,” trustee James Giddens said yesterday. His projections assume that agreements with MF Global’s U.K. unit and JPMorgan Chase & Co. take effect in mid-August. A prior projection in June estimated customers would get 94 cents on their dollar. Giddens said at the time that disputes including a lawsuit against directors and officers delayed the potential for full recovery.

Creditors of bankrupt gas station operator Getty Petroleum Marketing Inc. will pocket an extra $93 million under a settlement between Getty and its former parent, Russian oil giant Lukoil, Reuters reported yesterday. A litigation trust, established after Getty's liquidation to pursue money for creditors, is finalizing settlement documents with Lukoil, halting a trial that had been playing out since May in bankruptcy court. The deal still needs approval from Bankruptcy Judge Shelley Chapman. Papers filed on the court's electronic docket show the sides have scheduled an approval hearing on July 29.

The U.S. Environmental Protection Agency added its voice to the chorus of regulators worried battery maker Exide Technologies Inc.'s bankruptcy loan poses a threat to public health and safety, Dow Jones Daily Bankruptcy Review reported today. California, Louisiana and Texas regulators have already weighed in with concerns about Exide, which recycles lead acid batteries to get the raw material for its products. On Tuesday, it was the federal government's turn to speak out, with a warning lenders have Exide on such a tight financial leash that it won't be able to act in the event of an environmental disaster.