All items from WSJ.com: Bankruptcy Beat

The Kearney Arch museum in rural Nebraska has never been able to convince enough motorists to pull over to see its historical artifacts and volunteer re-enactors who chronicle how Americans bravely set out in wagons in the mid-1800s to settle the country’s prairie land.
But the storyline of the museum’s own financial struggle might not be so dramatic if the attraction—a boxy structure meant to look like a covered bridge and painted with colors of the Nebraska sunset—wasn’t hoisted above Interstate 80.
The 1,500 ton-structure, now under bankruptcy protection, rests on concrete stilts that balance it above the highway like an overpass about 130 miles west of Lincoln. Investors who hope to get their money back in the bankruptcy, as a result, have few suggestions for how they can recover some of what they’re owed.
Demolishing the building to sell for it for scraps, for example, would require shutting down the highway and would trigger penalties with the Federal Highway Administration, according to the bank that handles the museum’s $20 million in bonds. That effort could cost $10 million, more money than would come from sales of the museum’s parts.
Real estate agents say that the museum, formally known as the Great Platte River Memorial Foundation, has little chance of finding a buyer.

European Pressphoto Agency

A copy of Reader’s Digest at a store in New York in August 2009.

Reader’s Digest Association Inc. won permission to sell its French, Nordic and Swedish units to an affiliate of Spanish marketing and direct-mail company CIL Group for $5.8 million. Read the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
Residential Capital LLC’s unsecured creditors want to sue parent company Ally Financial Group, Bloomberg reports.

Investment firm Five Mile Capital Partners is accusing a group of well-known luxury resorts of several conflicts of interest on its board of directors, conflicts Five Mile say resulted in its not getting paid back the $50 million it lent before the resorts filed for Chapter 11 bankruptcy. Read the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
Beligum broadcast van provider Alfacam Group sa id it may have to file for bankruptcy, Reuters reports.
According to The Wall Street Journal, DBSI Inc.’s chief executive was indicted for financial crimes.

Reuters

Hostess Brands Inc. won permission to sell off the last of its major cake and bread assets, raising total sale proceeds from the baking company’s liquidation to about $860 million. Read the Daily Bankruptcy Review article via The Wall Street Journal.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
Residential Capital LLC wants to keep using the cash securing the claims of parent Ally Financial Inc. and bondholders, which ResCap says is necessary to complete the “great deal of work” that remains in its bankruptcy case. Read the DBR article via Fox Business.