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





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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.
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sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
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Each Tuesday edition of the TCR contains a list of companies with
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Monthly Operating Reports are summarized in every Saturday edition
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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
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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
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                  *** End of Transmission ***