The Daily Docket: Lehman Sells Aurora Bank

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.

A hedge fund manager is demanding that the trustee unwinding the brokerage of Lehman Brothers use more than $3 billion in its reserves to quickly make payments to customer claimants, saying the trustee’s “aspirational date” to pay those claims keeps slipping “further and further into the future. Read the DBR article here.

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Reuters reports on the bankruptcy filing of Japanese shipping firm Sanko Steamship, which has more than $2 billion in debt.

Micron Technology Inc. will acquire Japanese chip maker Elpida Memory Inc. for $750 million, WSJ reports.

Peter Madoff painted himself as brother Bernard Madoff’s victim during his guilty plea to criminal charges on Friday, the Associated Press reports.

According to Reuters, U.S. trustee Tracy Hope Davis objected to Dewey & LeBoeuf LLP’s move to retain law firms and public-relations advisers.

WSJ looks at Bank of America Corp.’s buyout of Countrywide Financial Corp.

According to WSJ, Houghton Mifflin is turning to a Curious George app to get back on its feet, WSJ reports.

CreditSlips looks at cramdown proposals.

According to the Erie Times-News, Pennsylvania’s Senate and House of Representatives approved a bill designed to keep the troubled capital of Harrisburg out of bankruptcy for five more months.

According to the New York Post, Hostess Brands Inc. is nearing a deal with its biggest union that would make deep cuts but would spare pensions.

The New York Mets-Los Angeles Dodgers meeting at Dodger Stadium a year ago was dubbed the Bankruptcy Bowl, mocking both teams’ financial struggles. But this year’s series was a reminder of how much has changed, WSJ reports.

Write to Melanie Cohen at [email protected]. Follow her on Twitter at @WSJBankruptcy.