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/raid1/www/Hosts/bankrupt/TCR_Public/120929.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, September 29, 2012, Vol. 16, No. 271 Headlines ALLEN FAMILY: Has $30.69 Million in Cash as of July 28 AMERICANWEST BANCORP: Ends August 31 With $5.45 Million in Cash BLITZ USA: Ends August With $5.36 Million in Cash DEWEY & LEBOEUF: Ends August With $24.35 Million in Cash EXTERRA ENERGY: Ends August 31 With $172,786 in Cash INTERNATIONAL MEDIA: Has $850,688 in Cash as of July 29 IRWIN MORTGAGE: Ends August With $4.81 Million in Cash LIGHTSQUARED INC: Ends August 31 With $217.26 Million in Cash NORTHSTAR AEROSPACE: Ends August With $1.22 Million in Cash PATRIOT COAL: Ends August With $361.04 Million in Cash PEGASUS RURAL: Ends July 31 With $162,979 in Cash PEGASUS RURAL: Ends August 31 With $143,365 in Cash PMI GROUP: Ends August 31 With $159.69 Million in Cash SHARPER IMAGE: Ends August 31 With $692,109 in Cash ********* ALLEN FAMILY: Has $30.69 Million in Cash as of July 28 ------------------------------------------------------ Allen Family Foods Inc., on Aug. 31, 2012, filed its monthly operating report for the period July 1-28, 2012. Allen Family Foods reported a net loss of $3,413 for the period July 1-28, 2012. As of July 28, 2012, Allen Family had total assets of $31.91 million, total liabilities of $29.60 million and total stockholders' equity of $1.31 million. As of July 28, 2012, Allen Family had total cash of $30.69 million. About Allen Family Foods Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry company. Allen Family Foods and two affiliates, Allen's Hatchery Inc. and JCR Enterprises Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011. Allen estimated assets and liabilities between $50 million and $100 million in its petition. Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. FTI Consulting is the financial advisor. BMO Capital Markets is the Debtors' investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Roberta DeAngelis, U.S. Trustee for Region 3, appointed seven creditors to serve on an Official Committee of Unsecured Creditors in the Debtors' cases. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the committee. J.H. Cohn LLP serves as the Committee's financial advisor. AMERICANWEST BANCORP: Ends August 31 With $5.45 Million in Cash --------------------------------------------------------------- AmericanWest Bancorporation, on Sept. 19, 2012, filed its monthly operating report for the month ended August 31, 2012. The Company reported a net loss of $18,602 for the month ended Aug. 31, 2012. As of Aug. 31, 2012, AmericanWest Bancorp had total assets of $6.88 million, total liabilities of $47.48 million and total stockholders' deficit of $40.60 million. At the beginning of August, AmericanWest Bancorp had $5.46 million in cash. The Company had total cash disbursements of $4,794. As a result, at the end of the month, the Company had total cash of $5.45 million. A full-text copy of the monthly operating report is available at: http://is.gd/2QGzZ8 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. American West filed a Chapter 11 plan hammered out with secured lenders owed $177.5 million. The lenders will take ownership and receive a new $49.6 million mortgage in return for existing debt. They will invest $10 million to be used as working capital to make payments under the plan. BLITZ USA: Ends August With $5.36 Million in Cash ------------------------------------------------- Blitz U.S.A., Inc., et al., on Sept. 13, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. The Company reported a net loss of $2.02 million on net revenue of $41,722 for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Company had total assets of $38.18 million, total liabilities of $51.47 million and total stockholders' deficit of $13.30 million. Blitz USA had total cash receipts of $3.53 million and total cash disbursements of $7.76 million. At the end of the month, the Company had total cash of $5.36 million. About Blitz U.S.A. Blitz U.S.A. Inc., is a Miami, Oklahoma-based manufacturer of plastic gasoline cans. The company, controlled by Kinderhook Capital Fund II LP, filed for bankruptcy protection to stanch a hemorrhage resulting from 36 product-liability lawsuits. Parent Blitz Acquisition Holdings, Inc., and its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case Nos. 11-13602 thru 11-13607) on Nov. 9, 2011. The Hon. Peter J. Walsh presides over the case. Blitz USA disclosed $36,194,434 in assets and $41,428,577 in liabilities in its schedules. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, represents the Debtors in their restructuring efforts. The Debtors tapped Zolfo Cooper, LLC, as restructuring advisor; and Kurtzman Carson Consultants LLC serves as notice and claims agent. SSG Capital Advisors LLC serves as investment banker. Lowenstein Sandler PC from Roseland, New Jersey, represents the Official Committee of Unsecured Creditors. The Chapter 11 case is financed with a $5 million secured loan from Bank of Oklahoma. Bank of Oklahoma, as DIP agent, is represented by Samuel S. Ory, Esq., at Frederic Dorwart Lawyers in Tulsa. In April 2012, Hopkins Manufacturing Corp. acquired the assets of Blitz USA's unit, F3 Brands LLC, a major manufacturer of oil drains, drain pans, lifting aids and automotive ramps. Blitz USA said in court documents the sale netted the Debtors $14.6 million, which was applied against secured debt. Blitz announced in June that it is abandoning its efforts to reorganize and instead is vowing to shut down operations by the end of July. DEWEY & LEBOEUF: Ends August With $24.35 Million in Cash -------------------------------------------------------- Dewey & Leboeuf LLP, on Sept. 18, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Debtor had total assets of $119.85 million, total liabilities of $219.34 million and total stockholders' deficit of $99.50 million. At the beginning of the month, the Debtor had $20.29 million in cash. The Debtor had total cash receipts of $10.22 million and total cash disbursements of $6.15 million. As a result, Dewey & Leboeuf had $24.35 million in cash at the end of August. About Dewey & LeBoeuf New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the wind-down of its operations. The firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its chapter 11 filing late evening on May 29, 2012. Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine LLP and LeBoeuf, Lamb, Greene & MacRae LLP. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA on May 11 for $6 million. The Pension benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. EXTERRA ENERGY: Ends August 31 With $172,786 in Cash ---------------------------------------------------- Exterra Energy, Inc., on Sept. 18, 2012, filed its monthly operating report for the month ended August 31, 2012. The Debtor posted a net loss of $23,036 on net revenue of $6,762 for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Debtor had total assets of $706,961, total liabilities of $14.16 million and total stockholder's deficit of $13.45 million. At the beginning of the month, the Exterra Energy had $167,671 in cash. The Debtor had total cash receipts of $6,762 and total cash disbursements of $1,646. As a result, Exterra Energy had total cash of $172,786 at the end of the month. A full-text copy of the monthly operating report is available at: http://is.gd/VdDusu About Exterra Energy Exterra Energy Inc., an oil and natural-gas exploration and production company in Amarillo, Texas, filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 11-46956) on Dec. 15, 2011, in Fort Worth. Two weeks later, Exterra filed its schedules of assets and liabilities claiming to have property worth $19.4 million. The company also filed a balance sheet from February listing assets of $5.1 million. The formal bankruptcy lists show total debt of $7.5 million, including $4.6 million in secured claims. The company's Web site says Exterra has 12 wells in Pecos County, Texas, plus interests in another 50. INTERNATIONAL MEDIA: Has $850,688 in Cash as of July 29 ------------------------------------------------------- International Media Group, Inc., on Sept. 11, 2012, filed its monthly operating report for the period from June 25 to July 29, 2012. The Company posted a net income of $62,227 on net revenue of $1.50 million for the period ended July 29, 2012. As of July 29, 2012, the Company had total assets of $606.06 million, total liabilities of $377.78 million and total stockholder's equity of $228.28 million. As of June 25, 2012, the Company had $744,367 in cash. International Media had total cash receipts of $1.50 million and total cash disbursements of $1.39 million. As a result, at the end of the period, International Media had total cash of $850,688. About International Media Group International Media Group Inc. and its affiliates operate television station KSCI-TV (Channel 18) Long Beach, California; KUAN-LP (Channel 48) Poway, California; and KIKU-TV (Channel 19) Honolulu, Hawaii. KSCI, KUAN and KIKU focus primarily on the large Asian markets of Southern California and Hawaii and offer programming in six (6) main languages -- (i) Chinese; (ii) Korean; (iii) Tagalog (Filipino); (iv) Vietnamese; (v) English; and (vi) Japanese. The Television Stations' programming is a mix of locally produced original news, entertainment, and talk shows, purchased or syndicated foreign language programming, and paid programming comprised principally of infomercials, per-inquiry and direct response television advertisements. KHAI Inc. owns all of the equity of KHLS Inc., which holds the FCC license for KIKU-TV (Channel 19). KSCI Inc. owns all of the equity of KHAI and of KSLS Inc., which holds the FCC license for KSCI-TV (Channel 18) and KUANLP (Channel 48). International Media Group Inc. owns all of the equity of KSCI. AMG Intermediate LLC owns all of the equity of IMG, and AsianMedia Group LLC owns all of the equity of AMG. Non-debtor AsianMedia Investors I L.P. owns all of the equity of AsianMedia. International Media Group and six affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-10140) on Jan. 9, 2012, with the intent to sell their business as a going concern under 11 U.S.C. Sec. 363(a). NRJ TV II LLC, an entity owned by the first lien lender, will be the stalking horse bidder. As of Jan. 9, 2012, the Debtors owe $77.3 million on a first lien debt, including $67 million on a term-loan. Fortress Credit Corp. serves as agent. Unless outbid at the auction, the pre-petition lenders will acquire the assets in exchange for a credit bid of $45 million, will assume certain liabilities, and fund a "carve-out". An auction and sale hearing is contemplated to be held in March. Judge Mary F. Walrath oversees the Debtors' cases. International Media Group tapped Houlihan Lokey Capital, Inc., in October to market the assets. Houlihan will continue marketing the assets post-petition. William E. Chipman, Jr., Esq., and Mark D. Olivere, Esq., at Cousins Chipman & Brown, LLC, in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. The Debtors' claims agent is Epiq Bankruptcy Solutions LLC. International Media disclosed $206,825,047 in assets and $233,218,073 in liabilities as of the Chapter 11 filing. The petition was signed by Dennis J. Davis, chief restructuring officer. No trustee, examiner or committee has been appointed in any of the Debtors' cases. IRWIN MORTGAGE: Ends August With $4.81 Million in Cash ------------------------------------------------------ Irwin Mortgage Corporation, on Sept. 19, 2012, filed its monthly operating report for the month ended August 31, 2012. As of Aug. 1, 2012, the Company had $5.08 million in cash. The Company had total cash receipts of $1,406 and total cash disbursements of $268,226. As a result, at the end of August, Irwin Mortgage had total cash of $4.81 million. About Irwin Mortgage For a number of years, Irwin Mortgage Corporation, based in Dublin, Ohio, originated, purchased, sold and serviced conventional and government agency backed residential mortgage loans throughout the United States. However, in 2006 and continuing into early 2007, IMC sold substantially all of its assets, including its mortgage origination business, its mortgage servicing business, and its mortgage servicing rights portfolio, to a number of third party purchasers. As a result of those sales, IMC terminated its operations and has been winding down since 2006. Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell presides over the case. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $50 million to $100 million. The petition was signed by Fred C. Caruso, president. Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B. Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's counsel. Fred C. Caruso and Development Specialists Inc. provide wind-down management services to the Debtor. LIGHTSQUARED INC: Ends August 31 With $217.26 Million in Cash ------------------------------------------------------------- LightSquared Inc. et al., on Sept. 14, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. The Debtor reported a net loss of $52.32 million on net revenue of $3.34 million for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Debtor had total assets of $4.03 billion, total liabilities of $2.46 billion and total stockholders' equity of $1.58 billion. At the beginning of the month, the Debtor had $224.31 million in cash. LightSquared had total cash receipts of $6.54 million and total cash disbursements of $13.59 million. As a result, at the end of August, LightSquared had total cash of $217.26 million. About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, as the Company seeks to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties, prompting the bankruptcy filing. As of the Petition Date, the Debtors employed roughly 168 people in the United States and Canada. As of Feb. 29, 2012, the Debtors had $4.48 billion in assets (book value) and $2.29 billion in liabilities. LightSquared also sought ancillary relief in Canada on behalf of all of the Debtors, pursuant to the Companies' Creditors Arrangement Act (Canada) R.S.C. 1985, c. C-36 as amended, in the Ontario Superior Court of Justice (Commercial List) in Toronto, Ontario, Canada. The purpose of the ancillary proceedings is to request the Canadian Court to recognize the Chapter 11 cases as a "foreign main proceeding" under the applicable provisions of the CCAA to, among other things, protect the Debtors' assets and operations in Canada. The Debtors named affiliate LightSquared LP to act as the "foreign representative" on behalf of the Debtors' estates. Judge Shelley C. Chapman presides over the Chapter 11 case. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Kurtzman Carson Consultants LLC serves as claims and notice agent. Counsel to UBS AG as agent under the October 2010 facility is Melissa S. Alwang, Esq., at Latham & Watkins LLP. The ad hoc secured group of lenders under the Debtors' October 2010 facility was formed in April 2012 to negotiate an out-of- court restructuring. The members are Appaloosa Management L.P.; Capital Research and Management Company; Fortress Investment Group; Knighthead Capital Management LLC; and Redwood Capital Management. Counsel to the ad hoc secured group is Thomas E. Lauria, Esq., at White & Case LLP. Philip Falcone's Harbinger Capital Partners indirectly owns 96% of LightSquared's outstanding common stock. Harbinger and certain of its managed and affiliated funds and wholly owned subsidiaries, including HGW US Holding Company, L.P., Blue Line DZM Corp., and Harbinger Capital Partners SP, Inc., are represented in the case by Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP. The Office of the U.S. Trustee has not appointed a statutory committee of unsecured creditors. NORTHSTAR AEROSPACE: Ends August With $1.22 Million in Cash ----------------------------------------------------------- Northstar Aerospace (USA) Inc., now known as NSA (USA) Liquidating Corp., et al., on Sept. 20, 2012, filed its monthly operating report for the period from July 29 through August 31, 2012. The Debtor reported a net loss of $900,000 for the period ended Aug. 31, 2012. As of Aug. 31, 2012, the Debtor had total assets of $109.91 million, total liabilities of $91.41 million and total stockholders' equity of $18.50 million. The Debtor had total cash receipts of $7.65 million and total cash disbursements of $6.75 million for the month of August. As a result, Northstar Aerospace had total cash of $1.22 million at the end of the August. About Northstar Aerospace Chicago, Illinois-based Northstar Aerospace -- http://www.nsaero.com/-- is an independent manufacturer of flight critical gears and transmissions. With operating subsidiaries in the United States and Canada, Northstar produces helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of components and transmissions. Its plants are located in Chicago, Illinois; Phoenix, Arizona and Milton and Windsor, Ontario. Northstar employs over 700 people across its operations. Northstar Aerospace, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-11817) in Wilmington, Delaware, on June 14, 2012, to sell its business to affiliates of Wynnchurch Capital, Ltd., absent higher and better offers. Attorneys at SNR Denton US LLP and Bayard, P.A. serve as counsel to the Debtors. The Debtors have obtained approval to hire Logan & Co. Inc. as the claims and notice agent. Certain Canadian affiliates are also seeking protection pursuant to the Companies' Creditors Arrangement Act, R.S.C.1985, c. C-36, as amended. As of March 31, 2012, Northstar disclosed total assets of $165.1 million and total liabilities of $147.1 million. Approximately 60% of the assets and business are with the U.S. debtors. PATRIOT COAL: Ends August With $361.04 Million in Cash ------------------------------------------------------ Patriot Coal Corporation, on Sept. 24, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. The Debtor reported a net loss of $29.80 million on total revenues of $168.87 million for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Debtor had total assets of $3.90 billion, total liabilities of $3.87 billion and total stockholders' equity of $37.08 million. As of Aug. 31, 2012, the Debtor had total cash of $361.04 million. About Patriot Coal St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer and marketer of coal in the eastern United States, with 13 active mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electricity generators, industrial users and metallurgical coal customers, and controls roughly 1.9 billion tons of proven and probable coal reserves. Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11 petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y. Lead Case No. 12-12900) on July 9, 2012. Patriot said it had $3.57 billion of assets and $3.07 billion of debts, and has arranged $802 million of financing to continue operations during the reorganization. Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone Advisory Partners LP is serving as financial advisor, and AP Services, LLC is providing interim management services to Patriot in connection with the reorganization. Ted Stenger, a Managing Director at AlixPartners LLP, the parent company of AP Services, has been named Chief Restructuring Officer of Patriot, reporting to the Chairman and CEO. GCG, Inc. serves as claims and noticing agent. The case has been assigned to Judge Shelley C. Chapman. The U.S. Trustee appointed a seven-member creditors committee. PEGASUS RURAL: Ends July 31 With $162,979 in Cash ------------------------------------------------- Pegasus Rural Broadband, LLC, et al., on Aug. 31, 2012, filed its monthly operating report for the month ended July 31, 2012. The Debtor reported a net loss of $1.59 million on customer revenue of $274,838 for the month ended July 31, 2012. As of July 31, 2012, Pegasus Rural had total assets of $38.39 million, total liabilities of $83.18 million and total stockholder's deficit of $44.79 million. At the beginning of the month, Pegasus Rural had $155,123 in cash. The Debtor had total cash receipts $283,250 and total cash disbursements of $275,394. As a result, at the end of July, Pegasus Rural had total cash of $162,979. About Pegasus Rural Broadband Pegasus Rural Broadband, LLC, and its affiliates, including Xanadoo Holdings Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11772) on June 10, 2011. The Debtors are subsidiaries of Xanadoo Company, a 4G wireless Internet provider. Xanadoo Co. was not among the Chapter 11 filers. The subsidiaries sought Chapter 11 protection after they were unable to restructure $52 million in 12.5% senior secured promissory notes that matured in May. The notes are owing to Beach Point Capital Management LP. Xanadoo Holdings, through Xanadoo LLC -- XLC -- offers wireless high-speed broadband service, including digital phone services, under the Xanadoo brand utilizing licensed frequencies in the 2.5 GHz frequency band. As of May 31, 2011, XLC served 12,000 subscribers in Texas, Oklahoma and Illinois. In the summer of 2010, the Debtors closed all of their retail stores and kiosks in its six operating markets and severed all fulltime sales personnel. Since the closings, the Debtors relied one key retailer in each market to serve as local point of presence to market customer transactions. Judge Peter J. Walsh presides over the case. Rafael Xavier Zahralddin-Aravena, Esq., Shelley A. Kinsella, Esq., and Jonathan M. Stemerman, Esq., at Elliott Greenleaf, in Wilmington, Delaware, serve as counsel to the Debtor. NHB Advisors Inc. is their financial advisors. Epiq Systems, Inc., is the claims and notice agent. Xanadoo Holdings, Pegasus Guard Band and Xanadoo Spectrum each estimated assets of $100 million to $500 million and debts of $50 million to $100 million. The Chapter 11 filing followed the maturity in May 2011 of almost $60 million in secured notes owing to Beach Point Capital Management LP. The Court denied a motion by the secured noteholders to dismiss the Chapter 11 case and appoint a Chapter 11 trustee. PEGASUS RURAL: Ends August 31 With $143,365 in Cash --------------------------------------------------- Pegasus Rural Broadband, LLC, et al., on Sept. 18, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. The Company posted a net loss of $1.58 million on customer revenue of $273,111 for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Company had total assets of $37.73 million, total liabilities of $84.10 million and total Stockholders' deficit of $46.37 million. At the beginning of August, Pegasus Rural had $162,979 in cash. The Company had total cash receipts $480,076 and total cash disbursements of $499,690. As a result, at the end of the month, Pegasus Rural had total cash of $143,365. About Pegasus Rural Broadband Pegasus Rural Broadband, LLC, and its affiliates, including Xanadoo Holdings Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11772) on June 10, 2011. The Debtors are subsidiaries of Xanadoo Company, a 4G wireless Internet provider. Xanadoo Co. was not among the Chapter 11 filers. The subsidiaries sought Chapter 11 protection after they were unable to restructure $52 million in 12.5% senior secured promissory notes that matured in May. The notes are owing to Beach Point Capital Management LP. Xanadoo Holdings, through Xanadoo LLC -- XLC -- offers wireless high-speed broadband service, including digital phone services, under the Xanadoo brand utilizing licensed frequencies in the 2.5 GHz frequency band. As of May 31, 2011, XLC served 12,000 subscribers in Texas, Oklahoma and Illinois. In the summer of 2010, the Debtors closed all of their retail stores and kiosks in its six operating markets and severed all fulltime sales personnel. Since the closings, the Debtors relied one key retailer in each market to serve as local point of presence to market customer transactions. Judge Peter J. Walsh presides over the case. Rafael Xavier Zahralddin-Aravena, Esq., Shelley A. Kinsella, Esq., and Jonathan M. Stemerman, Esq., at Elliott Greenleaf, in Wilmington, Delaware, serve as counsel to the Debtor. NHB Advisors Inc. is their financial advisors. Epiq Systems, Inc., is the claims and notice agent. Xanadoo Holdings, Pegasus Guard Band and Xanadoo Spectrum each estimated assets of $100 million to $500 million and debts of $50 million to $100 million. The Chapter 11 filing followed the maturity in May 2011 of almost $60 million in secured notes owing to Beach Point Capital Management LP. The Court denied a motion by the secured noteholders to dismiss the Chapter 11 case and appoint a Chapter 11 trustee. PMI GROUP: Ends August 31 With $159.69 Million in Cash ------------------------------------------------------ PMI Group, Inc., on Sept. 20, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. The Company reported a net loss of $2.94 million for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Company had total assets of $227.20 million, total liabilities of $764.62 million and total stockholders' deficit of $537.41 million. At the beginning of August, the Company had $161.92 million in cash. PMI Group had total cash receipts of $2,424 and total cash disbursements of $2.24 million. As a result, at the end of the month, the Company had total cash of $159.69 million. A full-text copy of the monthly operating report is available at: http://is.gd/ytjIWk 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 August 31 With $692,109 in Cash --------------------------------------------------- TSIC, Inc., formerly known as Sharper Image Corp., on Sept. 20, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. TSIC posted a net loss of $40,235 for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Company had total assets of $1.26 million, total liabilities of $(95.29) million and total stockholders' equity of $94.03 million. As of Aug. 1, 2012, TSIC had $733,864 in cash. The Company had total cash receipts of $68 and total cash disbursements of $41,598. As a result, at the end of the month, the Company had total cash of $692,109. A full-text copy of the monthly operating report is available at: http://is.gd/E4jdPf 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. ********* 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 ***