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/raid1/www/Hosts/bankrupt/TCR_Public/120526.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, May 26, 2012, Vol. 16, No. 145 Headlines AHERN RENTALS: Racks Up $3.4 Million Net Loss in March AMBAC FINANCIAL: Has $24 Million Cash at End of March AMERICANWEST BANCORP: Ends April With $5.53 Million in Cash CANO PETROLEUM: Ends April With $141,380 in Cash CHURCH STREET: Reports $5 Million Net Loss in April FULLER BRUSH: Reorganization Costs Push Into Net Loss HEARUSA INC: Ends March With $50.41 Million in Cash MF GLOBAL: Has $612,000 Negative Cash Flow in April NEBRASKA BOOK: Ends March With $108.47 Million in Cash PMI GROUP: Ends April With $163.35 Million in Cash SHARPER IMAGE: Ends April With $1.25 Million in Cash TRIBUNE CO: Has $25.9 Million Profit in April ********* AHERN RENTALS: Racks Up $3.4 Million Net Loss in March ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Ahern Rentals Inc. reported a $3.4 million net loss in March on sales of $29.9 million. The monthly operating report listed $2 million in reorganization costs, $4.8 million of interest expense, and $7.4 million in depreciation costs. About Ahern Rentals Founded in 1953 with one location in Las Vegas, Nevada, Ahern Rentals Inc. -- http://www.ahern.com/-- now offers rental equipment to customers through its 74 locations in Arizona, Arkansas, California, Colorado, Georgia, Kansas, Maryland, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and Washington. Ahern Rentals filed a voluntary Chapter 11 petition (Bankr. D. Nev. Case No. 11-53860) on Dec. 22, 2011, after failing to obtain an extension of the Aug. 21, 2011 maturity of its revolving credit facility. Judge Bruce T. Beesley presides over the case. Lawyers at Gordon Silver serve as the Debtor's counsel. The Debtor's financial advisors are Oppenheimer & Co. and The Seaport Group. Kurtzman Carson Consultants LLC serves as claims and notice agent. Counsel to Bank of America, as the DIP Agent and First Lien Agent, are Albert M. Fenster, Esq., and Marc D. Rosenberg, Esq., at Kaye Scholer LLP, and Robert R. Kinas, Esq., at Snell & Wilmer. Attorneys for the Majority Term Lenders are Paul Aronzon, Esq., and Robert Jay Moore, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Counsel for the Majority Second Lienholder are Paul V. Shalhoub, Esq., Joseph G. Minias, Esq., and Ana M. Alfonso, Esq., at Willkie Farr & Gallagher LLP. Attorney for GE Capital is James E. Van Horn, Esq., at McGuirewoods LLP. Wells Fargo Bank is represented by Andrew M. Kramer, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. Allan S. Brilliant, Esq., and Glenn E. Siegel, Esq., at Dechert LLP argue for certain revolving lenders. Attorneys for U.S. Bank National Association, as successor to Wells Fargo Bank, as collateral agent and trustee for the benefit of holders of the 9-1/4% Senior Secured Notes Due 2013 under the Indenture dated Aug. 18, 2005, is Kyle Mathews, Esq., at Sheppard, Mullin, Richter & Hampton LLP and Timothy Lukas, Esq., at Holland & Hart. In its schedules, the Debtor disclosed $485.8 million in assets and $649.9 million in liabilities. The Official Committee of Unsecured Creditors has tapped Covington & Burling LLP as counsel, Downey Brand LLP as local counsel, and FTI Consulting as financial advisor. AMBAC FINANCIAL: Has $24 Million Cash at End of March ----------------------------------------------------- Ambac Financial Group, Inc. Balance Sheet As of March 31, 2012 ASSETS: Current Assets: Unrestricted Cash and Equivalents $23,993,748 Restricted Cash and Cash Equivalents 2,500,000 Accounts Receivable - Notes Receivable 1,077,640 Inventories - Prepaid Expenses 333,749 Professional Retainers 3,420,099 Other Current Assets 10,019,501 ----------------- Total Current Assets 41,344,737 Property & Equipment: Real Property and Improvements - Machinery & Equipment - Furniture, Fixtures, and Office Equipment - Leasehold Improvements - Vehicles - Less: Accumulated Depreciation - ----------------- Total Property & Equipment - Other Assets: Amounts Due From Insiders - Other Assets (1,891,414,243) ----------------- Total Other Assets (1,891,414,243) ----------------- Total Assets ($1,850,069,506) ================= LIABILITIES AND OWNERS' EQUITY: Liabilities Not Subject to Compromise (Postpetition) Accounts Payable - Taxes Payable $1,900,000 Wages Payable - Notes Payable - Rent/Leases - Building/Equipment - Secured Debt/Adequate Protection Payments - Professional Fees 17,542,560 Amounts Due to Insiders 152,864 Other Postpetition Liabilities - ----------------- Total Postpetition Liabilities 19,595,424 Liabilities Subject to Compromise (Prepetition): Secured Debt - Priority Debt - Unsecured Debt 1,707,452,241 ----------------- Total Prepetition Liabilities 1,707,452,241 Total Liabilities 1,727,047,665 Owners' Equity: Capital Stock 3,080,168 Additional Paid-in Capital 2,172,026,548 Partners' Capital Account - Owners' Equity Account - Retained earnings - prepetition (3,896,443,042) Retained earnings - postpetition (1,890,496,455) Adjustments to Owner Equity 34,715,610 Postpetition Contributions - ----------------- Net Owners' Equity (3,577,117,171) ----------------- Total Liabilities & Owners' Equity ($1,850,069,506) ================= Ambac Financial Group, Inc. Statement of Operations For the month ended March 31, 2012 Gross Revenues - Less: Returns & Allowances - ----------------- Net Revenue - Cost of Goods Sold: Beginning Inventory - Add: Purchases - Cost of labor - Other costs - Less: Ending Inventory - ----------------- Cost of Goods Sold - Gross Profit - Operating Expenses: Advertising - Auto and Truck Expense - Bad Debts - Contributions - Employee Benefits Programs - Officer/Insider Compensation $161,619 Insurance 72,785 Management Fees/Bonuses - Office Expense - Pension & profit sharing plans - Repairs & Maintenance - Rent and Lease Expense - Salaries/Commissions/Fees - Supplies - Taxes - Payroll 66 Taxes - Real Estate - Taxes - Other - Travel & Entertainment - Utilities - Other 1,061,237 ----------------- Total Operating Expenses Before 1,295,707 Depreciation Depreciation/Depletion/Amortization - ----------------- Net profit(loss) Before Other Income & Expenses (4,622,618) Other Income and Expenses: Other income 19,515 Interest Expense - Other Expense (120,102,822) ----------------- Net profit (loss) Before Reorganization Items 118,826,630 Reorganization Items: Professional Fees 2,427,192 U.S. Trustee Quarterly Fees 7,000 Interest on Cash from Chapter 11 - Gain from Sale of Equipment - Other Reorganization Expenses - ----------------- Total Reorganization Expenses 2,434,192 ----------------- Income Taxes - ----------------- Net Profit (Loss) $116,392,438 ================= Ambac Financial Group, Inc. Schedule of Cash Receipts and Disbursements For the month ended March 31, 2012 Cash Beginning of Month $23,941,969 Receipts: Cash Sales - Accounts Receivable - Prepetition - Accounts Receivable - Postpetition - Loans and Advances - Sale of Assets - Other 51,844 Transfers 57,160 ----------------- Total Receipts 109,004 Disbursements: Gross Payroll - Sales, Use, & Other Taxes 65 Inventory Purchases - Secured/Rental/Leases - Insurance - Administrative - Selling - Other - Owner Draw - Transfers (to DIP Accts.) 57,160 Professional Fees - U.S. Trustee Quarterly Fees - Court Costs - ----------------- Total Disbursements 57,225 ----------------- Net Cash Flow 51,779 ----------------- Cash - End of Month $23,993,748 ================= About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed US$30.05 billion in total assets, US$31.47 billion in total liabilities, and a US$1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of (US$394.5 million) and total liabilities of US$1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMERICANWEST BANCORP: Ends April With $5.53 Million in Cash ----------------------------------------------------------- AmericanWest Bancorporation on May 18, 2012, filed its monthly operating report from April 1, 2012, to April 30, 2012. AmericanWest Bancorp disclosed a net loss of $6,132 for the month ended April 30, 2012. As of April 30, 2012, the company had total assets of $6.95 million, total liabilities of $47.41 million and total stockholders' deficit of $40.47 million. At the beginning of the month, the company had $5.53 million in cash. AmericanWest Bancorp had total cash disbursements of $6,133. As a result, as of April 30, 2012, the company had total cash of $5.53 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/americanwest_aprmor.pdf About AmericanWest Bancorporation Headquartered in Spokane, Washington, AmericanWest Bancorporation (OTC BB: AWBC) -- http://www.awbank.net/-- was a bank holding company whose principal subsidiary was AmericanWest Bank, which included Far West Bank in Utah operating as an integrated division of AmericanWest Bank. AmericanWest Bank was a community bank with 58 financial centers located in Washington, Northern Idaho and Utah. AmericanWest Bancorporation filed for Chapter 11 protection (Bankr. E.D. Wash. Case No. 10-06097) on Oct. 28, 2010. The banking subsidiary was not included in the Chapter 11 filing. Christopher M. Alston, Esq., and Dillon E. Jackson, Esq., at Foster Pepper Shefelman PLLC, in Seattle, Washington, serve as bankruptcy counsel. G. Larry Engel, Esq., at Morrison & Foerster LLP, also serves as counsel. The Debtor estimated assets of $1 million to $10 million and debts of $10 million to $50 million in its Chapter 11 petition. AmericanWest Bancorporation's estimates exclude its banking unit's assets and debts. In its Form 10-Q filed with the Securities and Exchange Commission before the Petition Date, AmericanWest Bancorporation reported consolidated assets -- including its bank unit's -- of $1.536 billion and consolidated debts of $1.538 billion as of Sept. 30, 2010. In December 2010, AmericanWest completed the sale of all outstanding shares of AmericanWest Bank to a wholly owned subsidiary of SKBHC Holdings LLC, in a transaction approved by the U.S. Bankruptcy Court. CANO PETROLEUM: Ends April With $141,380 in Cash ------------------------------------------------ Cano Petroleum, Inc., on May 21, 2012, filed its monthly operating report for the month ended April 30, 2012. Cano Petroleum posted a net loss of $1.43 million for the month ended April 30, 2012. As of April 30, 2012, the company had total assets of $131.88 million, total liabilities of $83.50 million and total stockholders' equity of $48.38 million. At the beginning of April, the company had $496,004 in cash. Cano Petroleum had total cash disbursements of $354,625. As a result, as of April 30, 2012, the company had total cash of $141,380. Copies of the operating reports of Cano Petroleum and its affiliates are available at: http://bankrupt.com/misc/cano_aprmor.pdf About Cano Petroleum Cano Petroleum, Inc. (NYSE Amex: CFW), an independent Texas- based energy producer with properties in the mid-continent region of the United States, filed for Chapter 11 bankruptcy (Bank. N.D. Tex. Lead Case No. 12-31549) on March 7, 2012. Other affiliates also sought bankruptcy protection: Cano Petro of New Mexico, Ladder Companies, Inc., Square One Energy, Inc., Tri-Flow, Inc., W.O. Energy of Nevada, Inc., W.O. Operating Company, Ltd., W.O. Production Company, Ltd., and WO Energy, Inc. The cases are jointly administered. The Debtors filed for bankruptcy to pursue a sale under a joint plan of reorganization filed on the petition date. Cano Petroleum have entered into a Stalking Horse Stock Purchase Agreement with NBI Services Inc., pursuant to which NBI would purchase all of the shares of common stock that would be issued by Reorganized Cano under the Plan for $47.5 million. The deal is subject to higher and better offers and a possible auction. The petitions were filed by James R. Latimer, III, chief executive officer. Judge Barbara J. Houser oversees the case. The Debtors are represented by lawyers at Thompson & Knight LLP, in Dallas Texas. Cano Petroleum's consolidated balance sheet at Sept. 30, 2011, showed $63.37 million in total assets, $116.25 million in total liabilities, and a $52.88 million total stockholders' deficit. In schedules filed with the Court, Cano Petroleum disclosed $1.16 million in assets and $82.5 million in liabilities. Union Bank of California, the administrative agent and issuing lender under the Debtors' prepetition senior credit facility; and UnionBanCal Equities, Inc., the administrative agent and issuing lender, under the junior credit facility, are represented by: William A. "Trey" Wood III, Esq., at Bracewell & Giuliani LLP. CHURCH STREET: Reports $5 Million Net Loss in April --------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Church Street Health Management LLC reported a $5 million net loss in April on revenue of $10.9 million. Earnings before interest, taxes, depreciation and amortization in the month were $901 million. About Church Street Church Street Health Management, LLC, a provider of management services for 67 dental practices in 22 states, filed a Chapter 11 petition (Bankr. M.D. Tenn. Case No. 12-01573) in Nashville, Tennessee on Feb. 20, 2012. The following day, four affiliates, Small Smiles Holding Company, LLC, Forba NY, LLC, EEHC, Inc., and Forba Services, LLC, filed their Chapter 11 petitions (Case Nos. 12-01574 to 12-01577). As of the Petition Date, the Debtors' assets have book value of $895 million, with debt totaling $303 million. There is about $131.5 million owing on first-lien obligations, plus $25.6 million on a second-lien obligation. There is an additional $152 million on three subordinated debts. The company's finances are structured to comply with Islamic Shariah financing regulations. In the Chapter 11 cases, the Debtors have engaged Waller Lansden Dortch & Davis, LLP as bankruptcy counsel, and Alvarez & Marsal Healthcare Industry Group, LLC, as financial and restructuring advisor. Martin McGahan, a managing director at A&M, will serve as chief restructuring officer of Church Street. Morgan Joseph TriArtisan, LLC, is the investment banker. Garden City Group is the claims and notice agent. Garrison Investment Group is providing funding for the Chapter 11 case. The credit agreement will provide the Debtor with up to an aggregate principal amount of $12 million in a revolving credit facility. FULLER BRUSH: Reorganization Costs Push Into Net Loss ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Fuller Brush Co. reported a $112,700 net loss in April on net revenue of $2.56 million. The month would have been profitable were it not for $159,200 in reorganization costs. Interest expense was another $93,800. About The Fuller Brush Company The Fuller Brush Company -- http://www.fuller.com/-- sells branded and private label products for personal care, commercial and household cleaning and has a current catalog of 2,000 cleaning products. Some of Fuller's retail partners include Home Trends, Bi-Mart, Byerly's, Lunds, Home Depot, Do-It-Best, Primetime Solutions, Vermont Country Store and Starcrest. Founded in 1906 and based in Great Bend, Kansas, The Fuller Brush Company, Inc., and its parent, CPAC, Inc., filed for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 12-10714 and 12-10715) in Manhattan on Feb. 21, 2012. Fuller Brush filed for bankruptcy five years after the company was taken over by private equity firm Buckingham Capital Partners. Fuller said it will be business as usual while undergoing Chapter 11 restructuring. But it said that while in reorganization, it intends to trim about half of the current catalog of cleaning products. Herrick Feinstein LP is the bankruptcy counsel. Fuller, which has 180 employees as of the Chapter 11 filing, disclosed $22.9 million in assets and $50.9 million in debt. The official committee of unsecured creditors has tapped the law firm of Kelley Drye & Warren LLP as counsel. The reorganization is being financed with a $5 million loan from an affiliate of Victory Park Capital Advisors LLC, the secured lender owed $22.7 million that plans to buy the business in exchange for debt. HEARUSA INC: Ends March With $50.41 Million in Cash --------------------------------------------------- HUSA Liquidating Corp., f/k/a HearUSA, Inc., on May 10, 2012, filed its monthly operating report for the month ended March 31, 2012. At the beginning of the month, the company had $53.60 million in cash. HUSA Liquidating had total cash receipts of $29 and total cash disbursements of $3.19 million. As a result, as of March 31, 2012, the company had total cash of $50.41 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/hearusa_marmor.pdf About HearUSA Inc. HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. The Official Committee of Unsecured Creditors has been appointed in the case. Robert Paul Charbonneau, Esq., and Daniel L. Gold, Esq., at Ehrenstein Charbonneau Calderin, represent the Creditors Committee. An Official Committee of Equity Security Holders has also been appointed. Mark D. Bloom, Esq., at Greenberg Traurig P.A., in Miami, Fla., represents the Equity committee as counsel. The U.S. Bankruptcy Court approved on Aug. 17, 2011, the sale of substantially all of the assets of the Company to Audiology Distribution, LLC, a wholly owed subsidiary of Siemens Hearing Instruments, Inc., which submitted the highest and best bid for the assets in a July 29, 2011 auction pursuant to 11 U.S.C. Section 363. The purchase price is estimated to be roughly $109 million and comprised of $66.8 million in cash plus certain assumed liabilities -- which includes repayment or assumption of the $10 million DIP financing provided by the stalking horse bidder, William Demant Holdings A/S -- plus the payment of cure costs for assumed contracts, and the assumption of various liabilities of the company. On Sept. 9, 2011, the sale closed. In connection with the closing of the transactions contemplated by the Asset Purchase Agreement, on Sept. 13, 2011, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation with the Delaware Secretary of State in order to change its name to "HUSA Liquidating Corporation". The Certificate of Amendment was effective on the date of filing. The TCR reported on May 10, 2012, HUSA Liquidating Corporation said the Amended Chapter 11 Plan of Liquidation of HearUSA, Inc. nka HUSA Liquidating Corporation was approved on May 8, 2012, by the United States Bankruptcy Court for the Southern District of Florida, West Palm Beach Division. The Plan is to become effective on a date that is 30 days after entry of the confirmation order and all conditions precedent have been satisfied, which is currently expected to be June 7, 2012. On the Effective Date, all of the Company's remaining assets, consisting primarily of cash received from the sale of substantially all of its assets in September 2011, will be transferred to a Liquidating Trust, shares of the Company's common stock will be extinguished, holders will be entitled to an interest in the Liquidating Trust, and the Company will be dissolved. MF GLOBAL: Has $612,000 Negative Cash Flow in April --------------------------------------------------- MF Global Holdings Ltd. Schedule of Receipts and Disbursements For the period April 1 to 30, 2012 Cash inflows: Transfer in from MF Global Holdings USA Inc. - Debtor Intercompany $926,168 Other cash 342,014 -------------- Total inflows 1,268,182 Cash outflows: Debtor Intercompany (926,168) Payroll, Payroll Taxes and Benefits (733,028) Office Rent and Facility Expenses (20,111) Other fees (201,497) -------------- Total cash outflows (1,880,805) -------------- Net Cash Flows ($612,622) ============== MF Global Holdings Ltd. Summary of Cash Collateral Borrowings and Unpaid Postpetition Debts For the period April 1 to 30, 2012 Available Cash Collateral Available Cash Collateral Funds Provided by JP Morgan Chase Bank, N.A. as of March 31, 2012 $19,353,662 April payroll and employee benefits (460,320) Office and rent expenses (213,275) Repayment of cash collateral under Cash Collateral Order - -------------- Available Cash Collateral funds provided by JP Morgan Chase Bank, N.A. 18,860,066 -------------- Total Cash Collateral Funds Used ($673,595) ============== Unpaid postpetition trade payables $402,800 ============== Debtors' Professional Fees Before Chapter 11 Trustee Appointment $6,683,000 Fees for Chapter 11 Trustee and his professionals 11,108,127 Committee Professionals' Fees 7,003,314 -------------- Total Accrued Professional Fee Estimate $24,794,441 ============== A full-text copy of the April 2012 Operating Report is available for free at http://bankrupt.com/misc/MFGlobal_Apr2012MOR.pdf About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- was one of the world's leading brokers of commodities and listed derivatives. MF Global provided access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It was the largest bankruptcy filing in 2011. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on Dec. 19, 2011. MF Global Holdings USA Inc., doing business as Farr Whitlock Dixon & Co. Inc., and Man Group USA Inc., filed a Chapter 11 petition on March 2, 2012. Holdings USA provided administrative services to MF Ltd. and its domestic subsidiaries. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. Louis J. Freeh was named the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates. The Trustee tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel; and (h) authorizing the Committee to retain and employ (i) Dewey & LeBoeuf LLP, as the Committee's counsel; and (ii) Capstone Advisory Group LLC as financial advisor. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) NEBRASKA BOOK: Ends March With $108.47 Million in Cash ------------------------------------------------------ NBC Acquisition Corp. and its affiliates on May 18, 2012, filed its monthly operating report for the year ended March 31, 2012. The Debtor reported a consolidated net loss of $158.36 million on $524.95 million of revenue for the year ended March 31, 2012. As of March 31, 2012, the Debtor had total assets of $457.74 million, total liabilities of $669.44 million and total stockholders' deficit of $211.70 million. As of Mar. 31, 2012, the Company had total cash balance of $108.47 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/nbc_marmor.pdf About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book has been unable to confirm a pre-packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock, due to an inability to secure $250 million in exit financing. The company has a confirmation hearing scheduled on May 30 for approval of a revised reorganization plan. The plan gives the new stock plus a new $100 million second-lien note to holders of the existing $200 million in second-lien debt, for a projected 81 percent recovery. PMI GROUP: Ends April With $163.35 Million in Cash -------------------------------------------------- PMI Group, Inc., on May 22, 2012, filed its monthly operating report for the month ended April 30, 2012. The Debtor reported a net income of $128,428 for the month ended April 30, 2012. As of April 30, 2012, the Debtor had total assets of $234.42 million, total liabilities of $768.41 million and total stockholders' deficit of $533.99 million. At the beginning of the month, PMI Group had $164.06 million in cash. The Debtor had total cash receipts of $19,104 and total cash disbursements of $724,495. As a result, at the end of the month, PMI Group had total cash of $163.35 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/pmi_aprmor.pdf About The PMI Group Del.-based The PMI Group, Inc., is an insurance holding company whose stock had, until Oct. 21, 2011, been publicly-traded on the New York Stock Exchange. Through its principal regulated subsidiary, PMI Mortgage Insurance Co., and its affiliated companies, the Debtor provides residential mortgage insurance in the United States. The PMI Group filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-13730) on Nov. 23, 2011. In its schedules, the Debtor disclosed $167,963,354 in assets and $770,362,195 in liabilities. Stephen Smith signed the petition as chairman, chief executive officer, president and chief operating officer. The Debtor said in the filing that it does not have the financial resources to pay the outstanding principal amount of the 4.50% Convertible Senior Notes, 6.000% Senior Notes and the 6.625% Senior Notes if those amounts were to become due and payable. The Debtor is represented by James L. Patton, Esq., Pauline K. Morgan, Esq., Kara Hammond Coyle, Esq., and Joseph M. Barry, Esq., at Young Conaway Stargatt & Taylor LLP. The Official Committee of Unsecured Creditors appointed in the case retained Morrison & Foerster LLP and Womble Carlyle Sandridge & Rice, LLP, as bankruptcy co-counsel. Peter J. Solomon Company serves as the Committee's financial advisor. SHARPER IMAGE: Ends April With $1.25 Million in Cash ---------------------------------------------------- TSIC, Inc., formerly known as Sharper Image Corp., on May 17, 2012, filed its monthly operating report for the month ended April 30, 2012. TSIC posted a net loss of $187,997 for the month ended April 30, 2012. As of April 30, 2012, the company had total assets of $2.10 million, total liabilities of $(95.59) million and total stockholders' equity of $93.49 million. At the beginning of April, the company had $1.33 million in cash. TSIC had total cash receipts of $131 and total cash disbursements of $79,385. As a result, at the end of the month, the company had total cash of $1.25 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/sharper_aprmor.pdf About Sharper Image Headquartered in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- was a multi-channel specialty retailer. It operated in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The Company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it was also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The Company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D. Del. Case No. 08-10322). Judge Kevin Gross presides over the case. Harvey R. Miller, Esq., Lori R. Fife, Esq., and Christopher J. Marcus, Esq., at Weil, Gotshal & Manges, LLP, serve as the Company's lead counsel. Steven K. Kortanek, Esq., and John H. Strock, Esq., at Womble, Carlyle, Sandridge & Rice, P.L.L.C., serve as the Company's local Delaware counsel. An official committee of unsecured creditors was appointed in the case. Cooley Godward Kronish LLP is the Committee's lead bankruptcy counsel. Whiteford Taylor Preston LLC is the Committee's Delaware counsel. When the Debtor filed for bankruptcy, it disclosed total assets of $251,500,000 and total debts of $199,000,000. As of June 30, 2008, the Debtor disclosed $52,962,174 in total assets and $39,302,455 in total debts. Sharper Image changed its name to "TSIC, Inc." following the going out of business sales of its assets by a group consisting of Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC. TRIBUNE CO: Has $25.9 Million Profit in April --------------------------------------------- Tribune Company, et al. Condensed Combined Balance Sheet As of April 22, 2012 ASSETS Current Assets: Cash and cash equivalents $1,475,995,000 Accounts receivable, net 467,132,000 Inventories 25,691,000 Broadcast rights 198,503,000 Prepaid expenses and other 204,182,000 -------------- Total current assets 2,371,503,000 Property, plant and equipment, net 923,524,000 Other Assets: Broadcast rights 100,513,000 Goodwill & other intangible assets, net 770,229,000 Prepaid pension costs - Investments in non-debtor units 1,525,681,000 Other investments 39,633,000 Intercompany receivables from non-debtors 3,029,979,000 Restricted cash 727,453,000 Other 99,512,000 -------------- Total Assets $9,588,027,000 ============== LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) Current Liabilities: Current portion of broadcast rights $133,534,000 Current portion of long-term debt 2,355,000 Accounts payable, accrued expenses, and other 396,530,000 -------------- Total current liabilities 532,419,000 Pension obligations 507,016,000 Long-term broadcast rights 98,157,000 Long-term debt 3,465,000 Other obligations 173,352,000 -------------- Total Liabilities 1,314,409,000 Liabilities Subject to Compromise: Intercompany payables to non-debtors 3,459,117,000 Obligations to third parties 13,012,515,000 -------------- Total Liabilities Subject to Compromise 16,471,632,000 Shareholders' Equity (Deficit) (8,198,014,000) -------------- Total Liabilities & Shareholders' Equity (Deficit) $9,588,027,000 ============== Tribune Company, et al. Condensed Combined Statement of Operations For the Period From March 26 to April 22, 2012 Total Revenue $225,311,000 Operating Expenses: Cost of sales 121,861,000 Selling, general and administrative 71,821,000 Depreciation 10,144,000 Amortization of intangible assets 1,398,000 -------------- Total operating expenses 205,224,000 Operating Profit (Loss) 20,087,000 -------------- Income on equity investments, net 811,000 Interest expense, net (3,678,000) Management fee (1,192,000) Non-operating income (loss), net 16,242,000 -------------- Income (loss) before income taxes & Reorg. Costs 32,270,000 Reorganization costs (4,362,000) -------------- Income (loss) before income taxes 27,908,000 Income taxes (2,037,000) -------------- Income (loss) from continuing operations 25,871,000 Income from discontinued operations, net of tax - -------------- Net Income (Loss) $25,871,000 ============== Tribune Company, et al. Combined Schedule of Operating Cash Flow For the Period From March 26 to April 22, 2012 Beginning Cash Balance $2,182,994,000 Cash Receipts: Operating receipts 206,834,000 Other 20,957,000 -------------- Total Cash Receipts 227,791,000 Cash Disbursements Compensation and benefits 81,976,000 General disbursements 132,715,000 Reorganization related disbursements 103,000 -------------- Total Disbursements 214,794,000 -------------- Debtors' Net Cash Flow 12,997,000 -------------- From/(To) Non-Debtors 4,160,000 -------------- Net Cash Flow 17,157,000 -------------- Other (5,529,000) -------------- Ending Available Cash Balance $2,194,621,000 ============== About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Protracted negotiations and mediation efforts and numerous proposed plans of reorganization filed by Tribune Co. and competing creditor groups have delayed Tribune's emergence from bankruptcy. Many of the disputes among creditors center on the 2007 leveraged buyout fraudulence conveyance claims, the resolution of which is a key issue in the bankruptcy case. The bankruptcy court has scheduled a May 16 hearing on Tribune's plan. Tribune CRO Don Liebentritt said it is possible the media company could emerge late in the third quarter of 2012. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2012 . All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter Chapman at 240/629-3300. *** End of Transmission ***