A federal district judge said the Commodities Futures Trading Commission may move forward with a lawsuit seeking to hold former MF Global Holdings Chief Executive Jon Corzine and an ex-colleague liable for the misuse of nearly $1 billion in brokerage customer funds. Read the Daily Bankruptcy Review article here . New details about Freedom Industries Inc., the company at the center of the West Virginia chemical spill, emerged Tuesday at its first appearance in bankruptcy court, The Wall Street Journal reported . New York law firm Proskauer Rose LLP is firing back at former client Overseas Shipholding Group, which is suing the firm for bad legal advice, saying the shipping company?s own executives? ?faulty? decision making and ?imprudent? risk-taking led the company into bankruptcy. Read the DBR story here . A Fortress Investment Group entity won the bidding for the Montreal, Maine & Atlantic Railway, which was involved in a deadly derailment last year, at an auction Tuesday, according to the Portland Press Herald . The Federal Communications Commission may not approve LightSquared?s restructuring plan by the end of the year, Bloomberg says . Michigan Gov. Rick Snyder and state lawmakers http://bankruptcyformssite.com/the-daily-docket-edgenet-enters-bankruptcy-3/ are expected to announce Wednesday the outlines of a state financing package to help Detroit emerge from municipal bankruptcy, according to WSJ . Meanwhile, the Detroit News says lawyers for city retirees are due back in bankruptcy court Wednesday to fight looming cuts to retiree health insurance. Correction: An earlier version of this post referred to Freedom Industries Inc. as Freedom Communications Inc.