People

Lehman Brothers Holdings Inc. said Friday it has sold its Aurora Bank FSB subsidiary, a move that should help funnel some $1.5 billion into the pockets of Lehman’s creditors. Read the Daily Bankruptcy Review article via The Wall Street Journal.

The city of Stockton, Calif., filed for Chapter 9 protection, The Wall Street Journal reports.

MF Global is proving to be catnip for distressed-debt buyers, according to a new report showing that more than $246 million of the failed brokerage’s debt changed hands last month. Read the Daily Bankruptcy Review article here.

A shrinking cash position and mounting liabilities indicate that holders of Patriot Coal Corp.’s convertible bonds would be hard pressed to recover much of their investment in case of a restructuring, credit market watchers say. Read the Daily Bankruptcy Review article here.

Struggling to figure out how to sell DVDs and CDs in a download-driven world, Toronto-based movie and music seller Cinram International Inc. has filed for bankruptcy protection while its executives move to sell its operations. Read the Daily Bankruptcy Review Small Cap article here.

Seriously, after a couple of the family’s paper businesses have been forced to seek bankruptcy protection, you would think the teenage Brant brothers, crowned “The New Princes of the City” in the New York Times style section, could do a little more to sell newspapers.

However, 18-year-old Peter Brant II and Harry, who at 15 is “omnipresent on the New York social scene,” are the stuff of which fashion blogs are made, the Times reports.