Bankruptcy

Franklin Bank Corp., the owner of a Houston-based lender closed by regulators last week, filed for court protection from creditors under bankruptcy rules used to liquidate assets. Franklin, which is controlled by mortgage-bond pioneer Lewis Ranieri, filed under Chapter 7 of the U.S. Bankruptcy Code in Wilmington, Del., listing assets worth less than $500,000 and debts of as much as $500 million.

A bankruptcy judge on Monday approved the sale of Lehman Bros. Holdings Inc.'s prized investment management unit to a group of managers and employees. The sale was worth $922 million to the Lehman bankruptcy estate, a Lehman lawyer said, and includes the Neuberger Berman money management business.

A financially troubled Bakersfield refinery appeared headed for a prolonged shutdown after management on Wednesday informed workers that it hadn't been able to cut a deal with crude oil suppliers to keep the facility operating. The plant, owned by Big West of California, has been crippled by the Dec. 22 bankruptcy filing of its parent, Flying J Inc. of Ogden, Utah.

Waterford Wedgwood, the maker of classic china and crystal, filed for bankruptcy protection Monday after attempts to restructure the struggling business or find a buyer failed. Four administrators from advisory firm Deloitte were appointed to run the company's businesses in Britain and Northern Ireland, and a Deloitte partner in the Republic of Ireland was appointed as receiver of Waterford Wedgwood, the parent of the British companies, and other Irish subsidiaries.

For the first time since the housing crisis began, a major mortgage lender agreed Thursday that courts should be allowed to order reductions in the principal of "underwater" loans for some troubled borrowers, cracking what had been fierce and unified industry opposition. The agreement struck between congressional Democrats and Citigroup Inc. would permit bankruptcy judges to change the terms of mortgages as part of court-ordered debt restructuring.

Tribune Co. passed an early hurdle in its Chapter 11 bankruptcy case Thursday when a U.S. bankruptcy judge signed a motion authorizing the continuation of a short-term financing arrangement worth $300 million. Judge Kevin Carey also granted the company more time to file schedules of its assets and liabilities and other financial statements. The financing arrangement, supplied by Barclays Bank and secured by Tribune receivables, will last until April.

Smurfit-Stone Container Corp., the largest producer of cardboard box materials in North America, on Monday filed for Chapter 11 bankruptcy protection as it looked to restructure a heavy debt amid a credit freeze. The Chicago company, which employs nearly 22,000 people working at about 150 facilities across North America and in Asia, said it filed for protection from creditor claims in U.S. Bankruptcy Court in Wilmington, Del.

It's time to face the Muzak. Muzak Holdings, the company that has filled waiting rooms, shopping malls -- and most famously, elevators -- with syrupy sweet background music for decades, filed for Chapter 11 bankruptcy protection Tuesday in Delaware. The Fort Mill, S.C., company blamed long-standing debt and a financial market downturn. But a slew of store closures is also at fault, executives said recently, as the continuing recession causes struggling businesses to cancel their Muzak accounts.

Struggling Charter Communications Inc., the nation's fourth-largest cable operator, said Thursday that it planned to file a prearranged Chapter 11 bankruptcy by April 1. Charter, which is controlled by Microsoft Corp. co-founder Paul Allen, said it had reached an agreement in principle with holders of $8 billion in debt, who will give up repayment of their debt.