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/raid1/www/Hosts/bankrupt/TCR_Public/121103.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, November 3, 2012, Vol. 16, No. 306 Headlines AMERICAN WEST: Ends September With $2.03 Million in Cash AMPAL-AMERICAN ISRAEL: Ends September With $15.45 Million in Cash BLITZ USA: Ends September With $3.11 Million in Cash CHRIST HOSPITAL: Ends August With $10.96 Million in Cash DAFFY'S INC: Ends September 3 With $790,973 in Cash DAYTOP VILLAGE: Ends July 31 With $8.41 Million in Cash FIRSTFED FINANCIAL: Ends September With $1.75 Million in Cash K-V PHARMACEUTICAL: Ends September With $29.60 Million in Cash LEHMAN BROTHERS: Files June 30 Balance Sheet NORTHSTAR AEROSPACE: Ends September With $3 Million in Cash PEMCO WORLD: Sun Aviation Reports $325 Net Loss for September PINNACLE AIRLINES: Ends September With $18.68 Million in Cash PMI GROUP: Ends September With $159 Million in Cash RESIDENTIAL CAPITAL: Has $204MM Operating Loss in September RG STEEL: WP Steel Ends September With $12.51 Million in Cash TOUSA INC: Ends September With $312.76 Million in Cash UNITED RETAIL: Ends September With $1 Million in Cash ********* AMERICAN WEST: Ends September With $2.03 Million in Cash -------------------------------------------------------- American West Development, Inc., on Oct. 18, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Company reported a net loss of $9,238 on total revenues of $1.90 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, American West had total assets of $60.44 million, total liabilities of $198.29 million and total stockholders' deficit of $137.85 million. At the beginning of September, American West had $1.57 million in cash. The Company had total cash receipts of $6.94 million and total cash disbursements of $6.48 million. As a result, at the end of the month, American West had total cash of $2.03 million. About American West American West Development, Inc. -- fdba Castlebay 1, Inc., et al. -- is a homebuilder in Las Vegas, Nevada, founded on July 31, 1984. Initially, AWDI was known as CKC Corporation, but later changed its name. AWDI filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 12-12349) on March 1, 2012. Judge Mike K. Nakagawa presides over the case. Brett A. Axelrod, Esq., and Micaela Rustia Moore, Esq., at Fox Rothschild LLP, serve as AWDI's bankruptcy counsel. Nathan A. Schultz, P.C., is AWDI's conflicts counsel. AWDI hired Garden City Group as its claims and notice agent. American West disclosed $55.39 million in assets and $208.5 million in liabilities as of the Chapter 11 filing. James L. Moore, as future claims representative in the Chapter 11 case of American West Development, Inc., tapped the law firm of Field Law Ltd. as his counsel. AMPAL-AMERICAN ISRAEL: Ends September With $15.45 Million in Cash ----------------------------------------------------------------- Ampal-American Israel Corporation, on Oct. 19, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Company posted a net loss of $3.89 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Company had total assets of $340.72 million, total liabilities of $284 million and total stockholders' equity of $56.72 million. At the beginning of the month, Ampal-American had $15.02 million in cash. At the end of September, the Company had total cash of $15.45 million. About Ampal-American Ampal-American Israel Corporation and its subsidiaries -- http://www.ampal.com/-- acquired interests primarily in businesses located in Israel or that are Israel-related. Ampal is seeking opportunistic situations in a variety of industries, with a focus on energy, chemicals and related sectors. Ampal's goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control. Ampal-American filed a voluntary petition for Chapter 11 reorganization (Bankr. S.D.N.Y. Case No. 12-13689) on Aug. 29, 2012. The Company is pursuing a plan to restructure the Company's Series A, Series B and Series C debentures. Bankruptcy Judge Stuart M. Bernstein presides over the case. Lawyers at Bryan Cave LLP, in New York, serves as counsel to the Debtor. As of June 30, 2012, the Company had US$542.3 million in total assets and US$775.2 million in total liabilities. The petition was signed by Irit Eluz, chief financial officer, senior vice president. BLITZ USA: Ends September With $3.11 Million in Cash ---------------------------------------------------- Blitz U.S.A., Inc., et al., on Oct. 16, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Debtor posted a net loss of $19.70 million on net revenue of $11,456 for the month ended Sept. 30, 2012. As of Sept. 30, 2012, Blitz USA had total assets of $5.06 million, total liabilities of $41.28 million and total stockholders' deficit of $36.22 million. Blitz USA had total cash receipts of $7.77 million and total cash disbursements of $10.02 million. As of Sept. 30, 2012, the Debtor had total cash of $3.11 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 it would abandon its efforts to reorganize and instead to shut down operations by the end of July. CHRIST HOSPITAL: Ends August With $10.96 Million in Cash -------------------------------------------------------- Christ Hospital on Sept. 26, 2012, filed its monthly operating report for the month ended Aug. 31, 2012. The Debtor posted a net loss of $969,000 for the month ended Aug. 31, 2012. As of Aug. 31, 2012, the Debtor had total assets of $10.96 million, total liabilities of $100.75 million and total stockholders' deficit of $89.80 million. Christ Hospital had a cash balance of $10.96 million as of Aug. 31, 2012. About Christ Hospital Christ Hospital filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 12-12906) on Feb. 6, 2012. Christ Hospital, founded in 1872 by an Episcopalian priest, is a 367-bed acute care hospital located in Jersey City, New Jersey at 176 Palisade Avenue, serving the community of Hudson County. The Debtor is well-known for its broad range of services from primary angioplasty for cardiac patients to intensity modulated radiation therapy for those battling cancer. Christ Hospital is the only facility in Hudson County to offer IMRT therapy, which is the most significant breakthrough in cancer treatment in recent years. Christ Hospital filed for Chapter 11 after an attempt to sell the assets fell through. Judge Morris Stern presides over the case. Lawyers at Porzio, Bromberg & Newman, P.C., serve as the Debtor's counsel. Alvarez & Marsal North America LLC serves as financial advisor. Logan & Company Inc. serves as the Debtor's claim and noticing agent. The Health Professional and Allied Employees AFT/AFI-CIO is represented in the case by Mitchell Malzberg, Esq., at Mitnick & Malzberg P.C. DAFFY'S INC: Ends September 3 With $790,973 in Cash --------------------------------------------------- Daffy's, Inc., on Oct. 3, 2012, filed its monthly operating report for the period from Aug. 1 to Sept. 3, 2012. The Company reported a net loss of $3.11 million on net revenue of $4.24 million for the period ended Sept. 3, 2012. As of Sept. 3, 2012, the Company had total assets of $52.88 million, total liabilities of $66.99 million and total stockholders' deficit of $14.11 million. At the beginning of the period, Daffy's had $482,170 in cash. The Company had total cash receipts of $42.56 million and total cash disbursements of $42.25 million. As a result, as of Sept. 3, 2012, Daffy's had total cash of $790,973. About Daffy's Inc. Secaucus, New Jersey-based Daffy's Inc., a 19-store chain, off- price retailer of designer fashions for women, men, children, and the home, located in the New York metropolitan area and Philadelphia, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-13312) on Aug. 1, 2012, with a plan to shutter the business and pay off creditors in full. A copy of the Plan is available at: http://bankrupt.com/misc/Daffys_Chapter_11_Plan.pdf The Debtor has an Asset Purchase, Assignment and Support Agreement, dated as July 18, 2012, with Marcia Wilson, The Wilson 2003 Family Trust, and Jericho Acquisitions I LLC, pursuant to which the Debtor's leasehold interests will be sold to Jericho Acquisitions I LLC through the Plan. The Debtor has hired Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources LLC to liquidate the Debtor's inventory. The Debtor estimates that the proceeds received from the liquidation of its inventory and the sale of its leasehold interests will exceed at least $60 million to satisfy approximately $37 million in claims. Cost of administering the chapter 11 case will not exceed approximately $5 million (after certain expenses are reimbursed pursuant to the Purchase Agreement). Accordingly, the Debtor believes that the disposition of the Debtor's principal assets will generate more than sufficient cash to pay all holders of Allowed Claims (as such term is defined in the Plan) in full, with interest, thus rendering all classes under the Plan unimpaired. The Debtor has filed its schedules, disclosing $51,106,469 in total assets and $36,646,856 in total liabilities. Bankruptcy Judge Martin Glenn presides over the case. The Debtor is represented by Andrea Bernstein, Esq., and Debra A. Dandeneau, Esq., at Weil, Gotshal & Manges LLP as counsel. Donlin, Recano & Company, Inc., serves as claims and notice agent. The Debtor's case is being funded by a $10 million postpetition financing with Vim-3, L.L.C., Vimwilco, L.P., and Marcia Wilson, as successor to Vim Associates, as guarantors; and Wells Fargo, National Association, as DIP lender. The DIP loan consists of $2.5 million in new money loans available on a revolving basis; and the roll up of $6.2 million of existing prepetition debt. Counsel for the DIP Lender are Donald E. Rothman, Esq., and Nathan C. Pagett, Esq., at Riemer & Braunstein LLP. Gordon Brothers and Hilco Merchant Resources are represented by Curtis, Mallet-Prevost, Colt & Mosle LLP Jericho Acquisition is represented by Brad Eric Scheler, Esq., at Fried, Frank, Harris, Shriver & Jacobson LLP. Marcia Wilson is represented by Dana B. Cobb, Esq., at Beattie Padovano, LLC. DAYTOP VILLAGE: Ends July 31 With $8.41 Million in Cash ------------------------------------------------------- Daytop Village Foundation, Inc., on Oct. 15, 2012, filed its monthly operating report for the month ended July 31, 2012. The Debtor posted a net loss of $30.86 million on net revenue of $409,428 for the month ended July 31, 2012. As of July 31, 2012, Daytop Village had total assets of $57.89 million, total liabilities of $21.39 million and total stockholders' equity of $36.50 million. At the beginning of the month, Daytop Village had $508,582 in cash. The Debtor had total cash receipts of $11.61 million and total cash disbursements of $3.70 million. As a result, at the end of July, Daytop Village had total cash of $8.41 million. About Daytop Village Daytop Village Foundation Incorporated, along with affiliate Daytop Village Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-11436) on April 5, 2012, in Manhattan. In 1963, Father William O'Brien and Dr. Alexander Bassin founded the Daytop Lodge, a substance abuse treatment facility, in Staten Island. Today, Daytop is the third largest substance abuse agency operating in the State of New York and the only substance abuse agency operating world-wide under a contract with the Unites States State Department. It provides family-oriented substance abuse treatment for adults and adolescents. Through six residential facilities and eight outreach clinics in New York, Daytop offers individual treatment plans by providing professional counseling, medical, social and spiritual attention. Judge Shelley C. Chapman presides over the Chapter 11 cases. Lowenstein Sandler PC is the Debtors' counsel. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Debtors' Restructuring and Management Officer is Marotta Gund Budd Dezera LLC. The petition was signed by Michael Dailey, chief executive officer. Daytop Village Inc., as of Jan. 31, 2012 has $8.68 million in assets and $45.03 million of liabilities. DVF has $42.20 million in assets and $32.00 million in liabilities as of Jan. 31, 2012. Island Funding II, the DIP lender, is represented by Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP. Counsel to the prepetition lender Signature Bank is Stephen D. Brodie, Esq., at Herrick Feinstein LLP; and Joshua I. Divack, Esq., at Hahn & Hessen LLP. Counsel to the prepetition lender Hudson Valley Bank is James P. Blose, Esq., at Griffin Coogan Blose & Sulzer P.C. The Official Committee of Unsecured Creditors was formed April 17, 2012. Bendinger & Schlesinger, Inc., is the chair of the Committee. Alvarez & Marsal Healthcare Industry Group LLC is the Committee's financial advisor. Robinson Brog Leinwand Greene Genovese & Gluck P.C. is the Committee's counsel. Eric M. Huebscher was appointed Patient Care Ombudsman in the case. FIRSTFED FINANCIAL: Ends September With $1.75 Million in Cash ------------------------------------------------------------- FirstFed Financial Corp., on Oct. 22, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Company posted a net loss of $29,924 for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Company had total assets of $1.93 million, total liabilities of $159.63 million and total stockholders' deficit of $157.70 million. At the beginning of the month, the Company had $1.76 million in cash. FirstFed Financial had total cash disbursements of $10,041. At the end of September, FirstFed Financial had total cash of $1.75 million. A full-text copy of the monthly operating report is available at: http://is.gd/jvPO7O About FirstFed Financial Irvine, Calif.-based FirstFed Financial Corp. is the bank holding company for First Federal Bank of California and its subsidiaries. The Bank was closed by federal regulators on Dec. 18, 2009. FirstFed Financial Corp. filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-10150) on Jan. 6, 2010. Jon L. Dalberg, Esq., at Landau Gottfried & Berger LLP, represents the Debtor in its restructuring effort. Garden City Group is the claims and notice agent. The Debtor disclosed assets at $1 million and $10 million, and debts at $100 million and $500 million. K-V PHARMACEUTICAL: Ends September With $29.60 Million in Cash -------------------------------------------------------------- K-V Discovery Solutions, Inc., et al., on Oct. 19, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Debtor reported a net loss from continuing operations of $7.42 million on net revenues of $3.99 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, K-V Discovery Solutions had total assets of $195.40 million, total liabilities of $704.45 million and total stockholders' deficit of $509.05 million. K-V Discovery Solutions had total cash receipts of $4.89 million and total cash disbursements of $4.37 million. As of Sept. 30, 2012, the Debtor had total cash of $29.60 million. A full-text copy of the monthly operating report is available at: http://is.gd/wXBoIG About K-V Pharmaceutical K-V Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. K-V Pharmaceutical Company and certain domestic subsidiaries on Aug. 4 filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-13346, under K-V Discovery Solutions Inc.) to restructure their financial obligations. K-V has retained the services of Willkie Farr & Gallagher LLP as bankruptcy counsel, Williams & Connolly LLP as special litigation counsel, and SNR Denton as special litigation counsel. In addition, K-V has retained Jefferies & Co., Inc., as financial advisor and investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. The U.S. Trustee appointed five members to serve in the Official Committee of Unsecured Creditors. LEHMAN BROTHERS: Files June 30 Balance Sheet -------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors filed copies of their balance sheets as of June 30, 2012. The documents showed that as of June 30, 2012, the company had total assets of $84.901 billion, total liabilities of $265.320 billion and total stockholders' equity of ($180.419) billion. Copies of the balance sheets are available without charge at http://bankrupt.com/misc/LBHI_June3012BalSheet.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. NORTHSTAR AEROSPACE: Ends September With $3 Million in Cash ----------------------------------------------------------- Northstar Aerospace (USA) Inc., now known as NSA (USA) Liquidating Corp., et al., on Oct. 18, 2012, filed its monthly operating report for the month of September. The Debtor posted a net loss of $384,000 for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Debtor had total assets of $105.13 million, total liabilities of $87.01 million and total stockholders' equity of $18.12 million. At the beginning of September, Northstar Aerospace had $1.22 million in cash. The Debtor had total operating receipts of $3.30 million and total disbursements of $835,000. As a result, the Debtor had total cash of $3 million at the end of the month. 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. PEMCO WORLD: Sun Aviation Reports $325 Net Loss for September ------------------------------------------------------------- Sun Aviation Services, LLC, an affiliate of Pemco World Air Services, on Oct. 15, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. Sun Aviation reported a net loss of $325 for the month ended Sept. 30, 2012. About Pemco World Headquartered in Tampa, Florida Pemco World Air Services -- http://www.pemcoair.com/-- performs large jet MRO services, and has operations in Dothan, AL (military MRO and commercial modification), Cincinnati/Northern Kentucky (regional aircraft MRO), and partner operations in Asia. Pemco filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 12-10799) on March 5, 2012. Young Conaway Stargatt & Taylor, LLP has been tapped as general bankruptcy counsel; Kirkland & Ellis LLP as special counsel for tax and employee benefits issues; AlixPartners, LLP as financial advisor; Bayshore Partners, LLC as investment banker; and Epiq Bankruptcy Solutions LLC as notice and claims agent. On March 14, 2012, the U.S. Trustee appointed an official committee of unsecured creditors. On April 13, 2012, Sun Aviation Services LLC (Bankr. D. Del. Case No. 12-11242) filed its own Chapter 11 bankruptcy petition. Sun Aviation owns 85.08% of the stock of Pemco debtor-affiliate WAS Aviation Services Holding Corp., which in turn owns 100% of the stock of debtor WAS Aviation Services Inc., which itself owns 100% of the stock of Pemco World Air Services Inc. Pemco also owes Sun Aviation $5.6 million. As a result, Sun Aviation is seeking separate counsel. However, Sun Aviation obtained an order jointly administering its case with those of the Pemco debtors. On June 15 the bankruptcy court approved sale of Pemco's business for $41.9 million cash to an affiliate of VT Systems Inc. from Alexandria, Virginia. Boca Raton, Florida-based Sun Capital was under contract to make the first bid at auction for the provider of heavy maintenance and repair services for commercial jet aircraft. The Debtor's plan proposes to repay unsecured creditors between 1% and 3% on their claims after selling its assets earlier this year to a unit of Sun Capital Partners. PINNACLE AIRLINES: Ends September With $18.68 Million in Cash ------------------------------------------------------------- Pinnacle Airlines Corp. et al., on Oct. 25, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Debtor posted a net loss of $79.63 million on total operating revenues of $60.21 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Debtor had total assets of $810.15 million, total liabilities of $912.86 million and total stockholders' deficit of $102.71 million. At the beginning of September, Pinnacle Airlines had $36.04 million in cash. The Debtor had total cash disbursements of $74.31 million. As of Sept. 30, 2012, the Debtor had total cash of $18.68 million. A full-text copy of the monthly operating report is available at: http://is.gd/XVxDWW About Pinnacle Airlines Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. Pinnacle Airlines Inc. and its affiliates, including Colgan Air, Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012. Judge Robert E. Gerber presides over the case. Lawyers at Davis Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve as the Debtors' counsel. Barclays Capital and Seabury Group LLC serve as the Debtors' financial advisors. Epiq Systems Bankruptcy Solutions serves as the claims and noticing agent. The petition was signed by John Spanjers, executive vice president and chief operating officer. Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. Debtor-affiliate Colgan Air, Inc. disclosed $574,482,867 in assets and $479,708,060 in liabilities as of the Chapter 11 filing. Delta Air Lines, Inc., the Debtors' major customer and post- petition lender, is represented by David R. Seligman, Esq., at Kirkland & Ellis LLP. The official committee of unsecured creditors tapped Morrison & Foerster LLP as its counsel, and Imperial Capital, LLC, as financial advisors. Pinnacle has the exclusive right to propose a reorganization plan until Jan. 25. PMI GROUP: Ends September With $159 Million in Cash --------------------------------------------------- PMI Group, Inc., on Oct. 23, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Debtor reported a net loss of $4.45 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Debtor had total assets of $227.64 million, total liabilities of $769.51 million and total stockholders' deficit of $541.86 million. As of Sept. 1, 2012, PMI Group had $159.69 million in cash. The Debtor had total cash receipts of $24 and total cash disbursements of $682,550. As a result, at the end of September, PMI Group had total cash of $159 million. A full-text copy of the monthly operating report is available at: http://is.gd/aXe1f7 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. RESIDENTIAL CAPITAL: Has $204MM Operating Loss in September ----------------------------------------------------------- Residential Capital, LLC, and its debtor affiliates disclosed that for the period from September 1 to 30, 2012, it incurred $204,352,327 in operating loss, compared to the $12,596,031 operating loss the prior month. Total net revenue for the period was $5,760,000, while total reorganization expense was $36,307,000. The Debtors also reported that as of September 30, 2012, consolidated assets totaled $10,561,547,000, consolidated liabilities totaled $10,538,438,000, and consolidated equity totaled $23,209,000. Receipts during the operating period totaled $919,580,000, while disbursements totaled $1,024,461,000. Payments to insiders during the operating period totaled $129,946,772, while payments to bankruptcy professionals during the operating period totaled $13,695,705. A full-text copy of the September 2012 Operating Report is available for free at: http://bankrupt.com/misc/rescapmorsept2012.pdf About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Nationstar was to make the first bid for the mortgage-servicing business, while Berkshire Hathaway Inc. would serve as stalking- horse bidder for the remaining portfolio of mortgages. ResCap sold its assets at auctions that started Oct. 23. The partnership of Ocwen Financial Corp. and Walter Investment Management Corp. won the auction for the mortgage-servicing and origination assets. Their $3 billion offer defeated the last bid of $2.91 billion from Fortress Investment Group's Nationstar Mortgage Holdings Inc. Nationstar was the stalking horse bidder. The $1.5 billion offer from Warren Buffett's Berkshire Hathaway Inc. was declared the winning bid for a portfolio of loans at the auction on Oct. 25. The hearing to approve the sales is set for Nov. 19. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RG STEEL: WP Steel Ends September With $12.51 Million in Cash ------------------------------------------------------------- WP Steel Ventures, LLC, et al., on Oct. 25, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Debtor reported a net loss of $4.39 million on total sales of $1.46 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Debtor had total assets of $407.14 million, total liabilities of $1.31 billion and total stockholders' deficit of $901.92 million. The Debtor had total cash receipts of $127.57 million and total disbursements of $22.59 million for the month of September. As of Sept. 30, 2012, WP Steel Ventures had total cash of $12.51 million. About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owns Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12- 11661) on May 31, 2012, to pursue a sale of the business. The bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion as of the Chapter 11 filing. The Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. An official committee of unsecured creditors has been appointed in the case. Kramer Levin Naftalis & Frankel LLP represents the Committee. Huron Consulting Services LLC serves as its financial advisor. The Debtor has sold off the principal plants. The sale of the Wheeling Corrugating division to Nucor Corp. brought in $7 million. That plant in Sparrows Point, Maryland, fetched the highest price, $72.5 million. TOUSA INC: Ends September With $312.76 Million in Cash ------------------------------------------------------ TOUSA, Inc., et al., on Oct. 18, 2012, filed its monthly operating report for the month ended Sept. 30, 2012. The Debtor posted a net loss of $1.10 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Debtor had total assets of $347.19 million, total liabilities of $1.92 billion, and total stockholders' deficit of $1.57 billion. As of Sept. 1, 2012, TOUSA had $ 313.75 million in cash. The Debtor had total cash receipts of $48,569 and total cash disbursements of $1.04 million. As a result, at the end of the month, the Debtor had total cash of $312.76 million. About TOUSA Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on Jan. 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). Richard M. Cieri, Esq., M. Natasha Labovitz, Esq., and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP, in New York, N.Y.; and Paul S. Singerman, Esq., at Berger Singerman, in Miami, Fla., represent the Debtors in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. The official committee of unsecured creditors has filed a proposed chapter 11 liquidating plan for Tousa. However, the committee said it would no longer pursue approval of its liquidation plan because of the pending appeal of its fraudulent transfer case in the U.S. Court of Appeals for the Eleventh Circuit. A district court in February 2011 held that the bankruptcy judge was wrong in ruling that lenders who were paid off received fraudulent transfers when Tousa gave liens on subsidiaries' properties to bail out and refinance a joint venture. Daniel H. Golden, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, N.Y., represent the creditors committee. The Tousa committee filed a Chapter 11 plan in July 2010 based on an assumption it would win the appeal. UNITED RETAIL: Ends September With $1 Million in Cash ----------------------------------------------------- United Retail Group, Inc., et al., on Oct. 15, 2012, filed its monthly operating report for the month of September. The Debtor posted a net income of $1.3 million for the month ended Sept. 30, 2012. As of Sept. 30, 2012, the Debtor had total assets of $1.34 million, total liabilities of $10.86 million and total stockholders' deficit of $9.52 million. The United Retail Group had a beginning and ending cash balance of $1 million. About United Retail Group United Retail Group Inc., owner of the Avenue brand of women's fashion apparel and a subsidiary of Redcats USA, sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 12-10405) on Feb. 1, 2012, as it seeks to sell the business to Versa Capital Management for $83.5 million, subject to higher and better offers. The Company's legal advisor is Kirkland & Ellis LLP; AlixPartners LLP serves as restructuring advisor and Peter J. Solomon Company serves as financial advisor and investment banker; and Donlin Recano & Company Inc. is the notice, claims and administrative agent. Versa Capital's legal advisor is Sullivan & Cromwell LLP. Avenue has 433 stores and an e-commerce site -- http://www.avenue.com/. Avenue employs roughly 4,422 employees, roughly 294 of which are located at Avenue's corporate headquarters in Rochelle Park, New Jersey or at the Troy Distribution Facility. The Company disclosed $117.2 million in assets and $67.3 million in liabilities as of the Chapter 11 filing. Cooley LLP serves as counsel for the Official Committee of Unsecured Creditors. As reported in the Troubled Company Reporter on Sept. 21, 2012, Bankruptcy Law360 said U.S. Bankruptcy Judge Stuart M. Bernstein on Tuesday confirmed a Chapter 11 plan for Redcats USA Inc.'s high-end women's clothing retailer United Retail Group Inc. following a Versa Capital Management LLC unit's April purchase of its assets in a Section 363 sale. According to Bankruptcy Law360, Judge Bernstein confirmed the plan, which calls for the liquidation of what's left of the debtor after the sale to Versa affiliate Ornatus URG Acquisition LLC, a sale that created a new company called Avenue Stores 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. 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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, Carmel Paderog, Meriam Fernandez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, 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 ***