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Satcon Technology Corp. has given up hope of finding a buyer for its bankrupt business, which converts renewable energy for the electrical grid, and instead plans to conduct a liquidation, Reuters reported yesterday. Since it filed for bankruptcy in October, Satcon has been talking with potential bidders while at the same time negotiating with its lenders for continued breathing room. Boston-based Satcon did not receive any bids by Friday's deadline that satisfied the company's lender, Silicon Valley Bank, which refused to provide financing beyond Feb. 6, according to court documents. As a result, the company's board voted on Monday to convert its bankruptcy to a chapter 7 liquidation.

A Chickasaw Nation-backed company, Global Gaming Legends LLC, is demanding the return of its $6.25 million deposit after a $125 million deal to purchase Diamond Jacks casinos in Mississippi and Louisiana fell apart because, it says, the casino owner failed to maintain the business as required by the purchase agreement, Dow Jones DBR Small Cap reported yesterday. Since it entered into the deal with casino owner Legends Gaming LLC in July, Global Gaming Legends alleges that the company has failed to invest in the casinos, which has led to a "dramatic decline" in the value of the assets. Global Gaming Legends LLC, formed by the Chickasaw Nation to purchase the casinos, filed a lawsuit on Monday in casino owner Legends Gaming's chapter 11 case to recoup their money.

Hawker Beechcraft Inc. won court approval on Friday of its plan to exit bankruptcy under the control of a group of hedge funds, a ruling that the company hopes will lead to it being out of chapter 11 by the end of February, Dow Jones Daily Bankruptcy Review reported yesterday. Bankruptcy Judge Stuart M. Bernstein signed off on the company's plan after the company changed the wording of the official plan document related to the worthless equity of operating subsidiary Hawker Beechcraft Corp. The proposal confirmed by the judge calls for hedge-fund managers Centerbridge Partners, Angelo, Gordon & Co., Capital Research & Management and Bain Capital's Sankaty Advisors to exchange $921.6 million in debt for an 81.1 percent equity stake in the reorganized Hawker. Senior bondholders, owed $510.2 million, would get between nine and 10 cents on the dollar, while subordinate debtholders, owed $308.3 million, would be wiped out.

Creditors of Residential Capital LLC objected to a proposed settlement the bankrupt home lender made with investors in its mortgage-backed securities that would give the investors an $8.7 billion claim in the chapter 11 case, Bloomberg News reported yesterday. ResCap’s unsecured creditors’ committee said in a court filing on Friday that it was "dismayed" to have found that the negotiations that led to the settlement were dominated and controlled by ResCap’s parent company, Ally Financial Inc. The committee said that Ally was concerned with limiting its own liability. In exchange for the investors' support for the $750 million settlement of Ally’s exposure, ResCap agreed to give the investors a bankruptcy claim that is $4 billion more than what the company publicly has stated was its potential liability from claims by the trusts overseeing its residential mortgage-backed securities, according to the creditors’ committee.

The number of businesses and individuals that sought bankruptcy protection last year fell to 1,221,091 from 1,410,653 in 2011, according to data released yesterday by the Administrative Office of the U.S. Courts, Dow Jones Daily Bankruptcy Review reported today. Business filings measured 40,075, down 16 percent from 47,806 in 2011. Now, low interest rates are enabling companies to refinance, kicking their financial troubles down the road and staying clear of bankruptcy court. "I think bankruptcy filings on the business side will continue to be suppressed," said ABI Executive Director Sam Gerdano. "I think that's the reality; that's the new normal."

Fiat SpA's CEO Sergio Marchionne said that he expected to complete the acquisition of Chrysler Group LLC next year, once the Italian automaker reached a price agreement for the remaining stake in its U.S. unit, the Wall Street Journal reported today. Fiat and a United Auto Workers union retiree trust that owns 41.5 percent of Chrysler disagree on the value of an option that Fiat exercised last July to buy a 3.3 percent stake in Chrysler. Fiat offered the trust, called the Voluntary Employee Beneficiary Association, $139.7 million to buy the stake, and has since proposed paying $198 million for another 3.3 percent stake. But the trust wants about $343 million for the first stake. Marchionne earlier set 2015 as the deadline for completing the acquisition.

Bankruptcy Judge Stuart M. Bernstein yesterday confirmed most of Hawker Beechcraft Inc.'s plan to exit bankruptcy under the control of a group of hedge funds, a ruling that the company hopes will lead to it being out of chapter 11 by the end of February, Dow Jones Newswires reported yesterday. Judge Bernstein signed off on most of Hawker's proposal, but said that the company had to change wording in the official plan document related to the worthless equity of operating subsidiary Hawker Beechcraft Corp. The judge said that the Bankruptcy Code prohibits him from approving the plan for the Hawker Beechcraft Corp. subsidiary because, even though the equity is worth nothing, the equity holders would technically be "retaining" their interests. The company said that it hopes to make changes that satisfy the judge by next week.

Patriot Coal Corp. wants to limit its obligation to pay retiree health benefits to thousands of U.S. mine workers and their families as part of its plan to survive chapter 11 bankruptcy, Reuters reported yesterday. The company has proposed creating a trust, known as a voluntary employees' beneficiary association, to provide a maximum of $40 million annually up to a limit of $200 million. The annual cost of providing retiree health benefits in 2012 was $71 million and is expected to rise to $73.8 million, nearly twice as much as Patriot has proposed to spend, according to the documents.

Credit Suisse Group AG was ruled by a judge to be liable for all damages that could be awarded to noteholders suing the bank over fraud at National Century Financial Enterprises Inc., a figure investors’ lawyers put at more than $2 billion, Bloomberg News reported on Saturday. U.S. District Judge James Graham said on Friday that because New York law governs apportionment of fault in the case, Credit Suisse will be liable for 100 percent of former Chief Executive Officer Lance Poulsen’s share of damages. “If the jury finds at trial that Credit Suisse and Poulsen each committed fraud that caused plaintiff’s losses, then under New York law Credit Suisse will be liable, as to plaintiffs, for 100 percent of Poulsen’s share,” judge Graham said. Noteholders claim the bank, the placement agent, knew or should have known of a $2.9 billion fraud that led to National Century’s collapse in 2002. Ten executives of the Dublin, Ohio- based health-care financer were convicted of crimes, including Poulsen, who is serving 30 years in prison.

Mid-market defense contractors as well as media and coal companies could be at risk of tumbling into bankruptcy in 2013, New York University Prof. Edward Altman said yesterday, Reuters reported. With the U.S. government mulling significant cuts to the defense budget, smaller companies that contract with the government for defense projects could suffer, Prof. Altman said. He also said that the coal industry is expected to continue to suffer as natural gas remains a cheaper energy alternative. One major player in that industry - Patriot Coal Corp - filed for bankruptcy last year, blaming in part the glut of natural gas. Additionally, Altman said that media companies will also face challenges as specialized online media outlets gain strength.