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Communications company Broadview Networks Holdings Inc . received bankruptcy-court approval on Wednesday of a chapter 11 restructuring plan that will cut its debt in half, Dow Jones DBR Small Cap reported today. The bankruptcy court approval comes just six weeks after Broadview filed for bankruptcy with this noteholder-supported plan, which hands senior secured noteholders, owed $317 million, 97.5 percent equity in the reorganized company and issues them $150 million in new notes.

U.S. cargo airline Southern Air Inc. filed for bankruptcy protection today citing cutbacks in defense budget and U.S. troop reduction in Afghanistan, Reuters reported. The filing comes as the government's self-imposed year-end deadline approaches to agree on a plan to shrink the federal budget or trigger $600 billion in spending cuts and higher taxes. The Pentagon early this year outlined a 2013 budget plan to reduce spending by $487 billion over the next decade. Southern Air posted a revenue of about $428.2 million and a net loss of $159.8 million for the year ended July 31. The company had assets of about $206.9 million and liabilities of about $486.5 million as of that date. The Connecticut-based company, which operates a fleet of 11 Boeing Co aircraft, has about 611 full-time employees, according to its chapter 11 petition.

A section of secured bondholders of Residential Capital LLC, the bankrupt mortgage unit of Ally Financial, is pulling out of an agreement to support the company's reorganization plan, Reuters reported today. Ally said that the agreement between Ally and ResCap's third lien bondholders has been terminated by the bondholders. ResCap filed for bankruptcy in May with a plan in place for Nationstar Mortgage Holdings, owned by Fortress Investment Group, to make a $2.4 billion minimum offer for the mortgage servicing assets. Ally Financial also agreed to buy a group of ResCap mortgage loans for $1.4 billion. Ally is not in bankruptcy.

Bankruptcy Judge Marci McIvor set Oct. 16 as the date for Capitol Bancorp Ltd. to argue for its plan to turn over its network of struggling community banks to its debtholders before federal bank regulators seize them, Dow Jones DBR Small Cap reported today. The company's reorganization plan looks to turn over ownership of its subsidiary banks located in 10 states to groups owed some of the company's $195.6 million worth of debt.

Discount retailer Syms Corp. said yesterday that it completed its financial restructuring and emerged from chapter 11 protection after closing all of its stores and liquidating their merchandise, the Associated Press reported yesterday. The emergence completes a 10-month bankruptcy process for Syms and its Filene's Basement subsidiary. The reorganized company, which was renamed Trinity Place Holdings Inc., will try to sell off the company's commercial real estate and license its intellectual property for the benefit of its shareholders. Trinity expects to satisfy the negotiated payments to creditors required by its reorganization plan. Most of the funds needed to emerge from bankruptcy protections were raised through the sale of $25 million of new shares of common stock.

Independent power producer Dynegy Inc. said that it has won court approval of its bankruptcy plan and expects to emerge from chapter 11 by Oct. 1, Reuters reported yesterday. The plan approved Bankruptcy Judge Cecelia Morris calls for a combination of Houston-based Dynegy and its Dynegy Holdings unit into a new company led by current CEO Robert Flexon, and in which creditors would take a 99 percent stake. Shareholders would get a claim for the other 1 percent, plus warrants that could boost their stake to 13.5 percent in five years. Unsecured creditors would recover 59 cents to 89 cents on the dollar, and existing shareholders would recover nothing.

Delta Petroleum Corp. has emerged from chapter 11 protection under a plan that gives the company a stake in a new joint venture that will continue to explore for natural gas in the Rocky Mountains, Dow Jones DBR Small Cap reported today. The company, which has been renamed Par Petroleum Corp ., said that it has contributed the assets it had pledged to form the joint venture with Laramie Energy II LLC, the sponsor of its reorganization plan. Laramie holds a 66.66 percent stake in the joint venture, named Piceance Energy LLC, while Par holds a 33.34 percent stake.

Syms Corp. yesterday won bankruptcy court confirmation of a chapter 11 plan that will see the former retailer renew its life as a real estate owner, Dow Jones DBR Small Cap reported today. Rather than throwing all its real estate on the bankruptcy auction block at distressed prices, Syms fashioned a plan that allows it to wait for the right time and the right price before selling. The company's advisers estimate the real estate is worth $147 million.

U.S. Trustee Tracy Hope Davis is opposing the effort by Dynegy Inc and its Dynegy Holdings LLC unit to emerge from chapter 11 bankruptcy, saying that their reorganization plan may improperly limit the ability of third parties to bring liability claims, Reuters reported yesterday. Davis filed an objection to the plan on Monday in bankruptcy court, just nine days before a Sept. 5 hearing in which Dynegy hopes to win court approval of its reorganization. Dynegy this week said its plan had won overwhelming support from creditors holding about $3.5 billion of claims. But Davis, whose office oversees bankruptcy cases in the New York area, said that the power producer has not shown that its proposed "broad, non-consensual third party releases of liability" comply with bankruptcy law, and that such releases are proper only in rare circumstances.

Bankruptcy Judge Shelley C. Chapman on Friday confirmed Getty Petroleum Marketing Inc.'s chapter 11 liquidation plan offered by its unsecured creditors committee, overruling the remaining objections, Law360.com reported yesterday. Judge Chapman approved the plan despite objections by New York City, the federal government, state governmental entities and others. "The legal and factual bases set forth in the documents filed in support of confirmation and presented at the confirmation hearing establish just cause for the relief granted herein," Judge Chapman said.