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Diabetes-medication provider Liberty Medical Supply Inc. is asking the bankruptcy court to extend a critical chapter 11 protection to its former parent company and two employees involved in a $69 million lawsuit that is set to go to trial this summer, Dow Jones Newswires reported yesterday. Liberty Medical, its former parent Medco Health Solutions Inc., Arlene Rodriguez and Carl Dolan are being sued for allegedly failing to return overpayments from Medicare and Medicaid, which allegedly took place between 2004 and 2009. The lawsuit was filed in 2008, but a trial that may last a month is slated for June, according to court documents. The action against Liberty Medical was halted when it filed for bankruptcy. However, it has proceeded against Medco Health, Rodriguez and Dolan because they are not under chapter 11 protection.

New York-based KIT digital Inc., which helps get video content to stream over the Web, filed for chapter 11 protection yesterday to get rid of some of the underperforming businesses it purchased during a $320 million buying binge, Dow Jones Daily Bankruptcy Review reported yesterday. Chief Financial Officer Fabrice Hamaide told a bankruptcy court that the company already has a plan to emerge from bankruptcy and "preserve its global operations and the jobs of its over 800 employees worldwide."

Synagro Technologies Inc., a biosolids-management company owned by Carlyle Group LP, sought bankruptcy protection with a plan to sell most of its assets to private-equity firm EQT Infrastructure II LP, Bloomberg News reported yesterday. The Baltimore-based company listed assets of more than $10 million and debt of more than $100 million in its chapter 11 petition filed yesterday. EQT, based in Sweden, agreed to be the lead bidder at a court-supervised auction with an offer of about $455 million. The bid may be topped at auction and any sale would require court approval. Carlyle, the world's second-biggest private-equity firm by assets, acquired Synagro in 2007 for $462 million plus the assumption of $310 million in debt.

The president of a major development firm in South Carolina has filed for bankruptcy protection, the Associated Press reported yesterday. Alan Bruce Kahn filed for chapter 11 protection yesterday noting in court papers that he has fewer than 50 creditors and liability valued between $50 million and $100 million. His assets are estimated between $1 million and $10 million, according to the court papers. Kahn said the financial problems were caused by a drop in property values in recent years.

Supermodel-turned-reality TV star Janice Dickinson has declared herself bankrupt with debts of almost $1 million, the New York Post reported yesterday. The former “America’s Next Top Model” judge has filed court papers detailing outstanding bills that include $500,000 in unpaid taxes and an $8,000 debt to a medical center in California. Dickinson’s tax woes date back to 2009, when a lien was filed against her for $33,514 in unpaid bills. Her debt rocketed when a further demand for $49,712 was filed in February 2010, followed seven months later by a bill for $201,330.

Scooter Store Holdings Inc., a supplier of motorized scooters and wheelchairs throughout the U.S., filed for bankruptcy with a plan to sell virtually all of its assets, Bloomberg News reported yesterday. The closely held company, based in New Braunfels, Texas, listed assets of less than $10 million and debt of more than $50 million in chapter 11 documents filed yesterday. Seventy-one affiliates also sought protection. The company owes more than $19 million to the Centers for Medicare & Medicaid Services, administrator of the two government programs, according to court papers. The case is In re Scooter Store Holdings Inc., 13-10904, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Rotech Healthcare Inc., a provider of home respiratory products, has filed for bankruptcy, saying that its plan to cut its debt by about half and to reorganize is supported by a majority of its noteholders, Bloomberg News reported yesterday. Under the proposed reorganization plan, the company’s lenders, owed $23.5 million, and first-lien noteholders, owed $230 million, will receive an amended term loan. Second-lien noteholders will get all of the shares in the new Rotech, eliminating more than $300 million in debt, according to a company statement. The company, based in Orlando, Fla., said that it has more than $100 million in assets and owes lenders and noteholders about $543.5 million.

Greensboro, N.C., Mayor Robbie Perkins declared bankruptcy on Friday, the Greensboro News-Record reported on Saturday. "I have been experiencing financial difficulties resulting from the downturn in the economy and a domestic situation which I have been unable to resolve to date," Perkins said. He is a partner at NAI Piedmont Triad, a real estate firm that has suffered in the recession. He has been in a prolonged legal battle with his estranged wife, Carole Perkins. They have been separated since 2011. Carole Perkins filed a court motion March 6 alleging that her husband had not paid all of the financial support he owes her. Court records show he is responsible for about $13,000 a month in spousal and child support.

Vodka seller Central European Distribution Corp., headed by Russian billionaire Roustam Tariko, filed for U.S. bankruptcy protection amid heavy bond debt and with a pre-approved restructuring plan aimed at cutting about $665.2 million in liabilities, Bloomberg News reported yesterday. The company claimed $1.98 billion in assets and $1.73 billion in debt in court filings on Saturday. CEDC said in February that it had proposed a debt-for- equity plan to reduce liabilities by more than $750 million. The company's immediate financial crisis involved $257.9 million in 3 percent convertible notes that matured March 15. The company said yesterday in a statement that holders of existing 2016 notes will receive $822 million, consisting of $172 million in cash, $450 million in new secured notes and $200 million in new convertible notes—an estimated recovery of about 83.7 percent.

Oil and gas producer GMX Resources Inc. filed for chapter 11 protection yesterday, hit by weak natural gas prices, Reuters reported yesterday. The company, with assets in the Williston Basin in North Dakota and Montana, the Denver Julesburg Basin in Wyoming and the East Texas Basin, said that it could not raise funds for long-term liquidity needs. Two GMX units—Diamond Blue Drilling Co. and Endeavor Pipeline Inc.—also filed for bankruptcy protection. GMX also has a 60 percent stake in Endeavor Gathering, which owns the natural gas gathering system and related equipment operated by Endeavor Pipeline. GMX did not include Endeavor Gathering in the filing. GMX said that it has obtained debtor-in-possession financing of up to $50 million from the bondholders. The case is In re: GMX Resources Inc., U.S. Bankruptcy Court, Western District of Oklahoma, No:13-11456.

For more information and insight on oil and gas bankruptcies, make sure to pick up a copy of When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy available in the ABI Bookstore.