/raid1/www/Hosts/bankrupt/TCR_Public/121208.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, December 8, 2012, Vol. 16, No. 341
Headlines
AMBAC FINANCIAL: Has $34.7 Million Net Loss in September
AMBAC FINANCIAL: Has $63.4 Million Net Loss in October
AMERICAN AIRLINES: October Revenue Cut $85MM by Pilots, Sandy
FIRSTFED FINANCIAL: Ends October With $1.66 Million in Cash
K-V PHARMACEUTICAL: Ends October With $28.41 Million in Cash
PINNACLE AIRLINES: Ends October With $34.37 Million in Cash
PMI GROUP: Ends October With $158.34 Million in Cash
RESIDENTIAL CAPITAL: Has $48.1-Mil. Operating Loss in October
SHARPER IMAGE: Ends October With $568,453 in Cash
TRIBUNE CO: Has $29.9-Mil. Profit for Sept. 24 to Oct. 21
*********
AMBAC FINANCIAL: Has $34.7 Million Net Loss in September
--------------------------------------------------------
Ambac Financial Group, Inc.
Balance Sheet
As of September 30, 2012
ASSETS:
Current Assets:
Unrestricted Cash and Equivalents $31,458,725
Restricted Cash and Cash Equivalents 2,500,000
Accounts Receivable -
Notes Receivable 1,077,640
Inventories -
Prepaid Expenses 574,234
Professional Retainers 140,521
Other Current Assets 16,821
-----------------
Total Current Assets 35,767,941
Property & Equipment:
Real Property and Improvements -
Machinery & Equipment -
Furniture, Fixtures, and Office Equipment -
Leasehold Improvements -
Vehicles -
Less: Accumulated Depreciation -
-----------------
Total Property & Equipment -
Other Assets:
Amounts Due From Insiders -
Other Assets (2,459,840,564)
-----------------
Total Other Assets (2,459,840,564)
-----------------
Total Assets ($2,424,102,623)
=================
LIABILITIES AND OWNERS' EQUITY:
Liabilities Not Subject to Compromise (Postpetition)
Accounts Payable -
Taxes Payable $1,900,000
Wages Payable -
Notes Payable -
Rent/Leases - Building/Equipment -
Secured Debt/Adequate Protection Payments -
Professional Fees 14,772,632
Amounts Due to Insiders 229,506
Other Postpetition Liabilities -
-----------------
Total Postpetition Liabilities 16,972,138
Liabilities Subject to Compromise (Prepetition):
Secured Debt -
Priority Debt -
Unsecured Debt 1,707,443,818
-----------------
Total Prepetition Liabilities 1,707,443,818
Total Liabilities 1,724,415,956
Owners' Equity:
Capital Stock 3,080,168
Additional Paid-in Capital 2,172,026,548
Partners' Capital Account -
Owners' Equity Account -
Retained earnings - prepetition (3,896,443,042)
Retained earnings - postpetition (2,544,397,235)
Adjustments to Owner Equity 117,214,982
Postpetition Contributions -
-----------------
Net Owners' Equity (4,148,518,579)
-----------------
Total Liabilities & Owners' Equity ($2,424,102,623)
=================
Ambac Financial Group, Inc.
Statement of Operations
For the month ended September 30, 2012
Gross Revenues -
Less: Returns & Allowances -
-----------------
Net Revenue -
Cost of Goods Sold:
Beginning Inventory -
Add: Purchases -
Cost of labor -
Other costs -
Less: Ending Inventory -
-----------------
Cost of Goods Sold -
Gross Profit -
Operating Expenses:
Advertising -
Auto and Truck Expense -
Bad Debts -
Contributions -
Employee Benefits Programs -
Officer/Insider Compensation $51,042
Insurance 72,785
Management Fees/Bonuses -
Office Expense -
Pension & profit sharing plans -
Repairs & Maintenance -
Rent and Lease Expense -
Salaries/Commissions/Fees -
Supplies -
Taxes - Payroll -
Taxes - Real Estate -
Taxes - Other -
Travel & Entertainment -
Utilities -
Other 333,727
-----------------
Total Operating Expenses Before 457,554
Depreciation
Depreciation/Depletion/Amortization -
-----------------
Net profit(loss) Before Other Income &
Expenses (457,554)
Other Income and Expenses:
Other income 19,095
Interest Expense -
Other Expense 33,345,131
-----------------
Net profit (loss) Before Reorganization Items (33,783,590)
Reorganization Items:
Reorganization Items:
Professional Fees 912,582
U.S. Trustee Quarterly Fees 6,500
Interest on Cash from Chapter 11 -
Gain from Sale of Equipment -
Other Reorganization Expenses -
-----------------
Total Reorganization Expenses 919,082
-----------------
Income Taxes -
-----------------
Net Profit (Loss) ($34,720,672)
=================
Ambac Financial Group, Inc.
Schedule of Cash Receipts and Disbursements
For the month ended September 30, 2012
Cash Beginning of Month $22,437,934
Receipts:
Cash Sales -
Accounts Receivable - Prepetition -
Accounts Receivable - Postpetition -
Loans and Advances -
Sale of Assets -
Other 10,160,235
Transfers 12,334,362
-----------------
Total Receipts 22,494,597
Disbursements:
Gross Payroll -
Sales, Use, & Other Taxes -
Inventory Purchases -
Secured/Rental/Leases -
Insurance -
Administrative -
Selling -
Other 1,138,904
Owner Draw -
Transfers (to DIP Accts.) 12,334,362
Professional Fees -
U.S. Trustee Quarterly Fees -
Court Costs -
-----------------
Total Disbursements 13,473,266
-----------------
Net Cash Flow 9,021,331
-----------------
Cash - End of Month $31,458,725
=================
About Ambac Financial
Ambac Financial Group, Inc., headquartered in New York City, is a
holding company whose affiliates provided financial guarantees and
financial services to clients in both the public and private
sectors around the world.
Ambac Financial filed a voluntary petition for relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will
continue to operate in the ordinary course of business as "debtor-
in-possession" under the jurisdiction of the Bankruptcy Court and
in accordance with the applicable provisions of the Bankruptcy
Code and the orders of the Bankruptcy Court.
Ambac's bond insurance unit, Ambac Assurance Corp., did not file
for bankruptcy. AAC is being restructured by state regulators in
Wisconsin. AAC is domiciled in Wisconsin and regulated by the
Office of the Commissioner of Insurance of the State of Wisconsin.
The parent company is not regulated by the OCI.
Ambac's consolidated balance sheet -- which includes non-debtor
Ambac Assurance Corp -- showed US$30.05 billion in total assets,
US$31.47 billion in total liabilities, and a US$1.42 billion
stockholders' deficit, at June 30, 2010.
On an unconsolidated basis, Ambac said in a court filing that
it has assets of (US$394.5 million) and total liabilities of
US$1.6826 billion as of June 30, 2010.
Bank of New York Mellon Corp., as trustee to seven different types
of notes, is listed as the largest unsecured creditor, with claims
totaling about US$1.62 billion.
The Blackstone Group LP is the Debtor's financial advisor.
Kurtzman Carson Consultants LLC is the claims and notice agent.
KPMG LLP is tax consultant to the Debtor.
Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller,
Esq., at Morrison & Foerster LLP, in New York, serve as counsel
to the Official Committee of Unsecured Creditors. Lazard Freres
& Co. LLC is the Committee's financial advisor.
Bankruptcy Judge Shelley C. Chapman entered an order confirming
the Fifth Amended Plan of Reorganization of Ambac Financial Group,
Inc. on March 14, 2012. The Plan provides for the full payment of
secured claims and 8.5% to 13.2% recovery for general unsecured
claims.
Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY
NEWS. The newsletter tracks the Chapter 11 proceeding undertaken
by Ambac Financial Group and the restructuring proceedings of
Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945-
7000).
AMBAC FINANCIAL: Has $63.4 Million Net Loss in October
------------------------------------------------------
Ambac Financial Group, Inc.
Balance Sheet
As of October 31, 2012
ASSETS:
Current Assets:
Unrestricted Cash and Equivalents $31,065,664
Restricted Cash and Cash Equivalents 2,500,000
Accounts Receivable -
Notes Receivable 1,077,640
Inventories -
Prepaid Expenses 516,810
Professional Retainers 135,351
Other Current Assets 31,579
-----------------
Total Current Assets 35,327,044
Property & Equipment:
Real Property and Improvements -
Machinery & Equipment -
Furniture, Fixtures, and Office Equipment -
Leasehold Improvements -
Vehicles -
Less: Accumulated Depreciation -
-----------------
Total Property & Equipment -
Other Assets:
Amounts Due From Insiders -
Other Assets (2,381,717,328)
-----------------
Total Other Assets (2,381,717,328)
-----------------
Total Assets ($2,346,390,284)
=================
LIABILITIES AND OWNERS' EQUITY:
Liabilities Not Subject to Compromise (Postpetition)
Accounts Payable -
Taxes Payable $1,900,000
Wages Payable -
Notes Payable -
Rent/Leases - Building/Equipment -
Secured Debt/Adequate Protection Payments -
Professional Fees 15,970,011
Amounts Due to Insiders 266,133
Other Postpetition Liabilities -
-----------------
Total Postpetition Liabilities 18,136,144
Liabilities Subject to Compromise (Prepetition):
Secured Debt -
Priority Debt -
Unsecured Debt 1,707,443,818
-----------------
Total Prepetition Liabilities 1,707,443,818
Total Liabilities 1,725,579,962
Owners' Equity:
Capital Stock 3,080,168
Additional Paid-in Capital 2,172,026,548
Partners' Capital Account -
Owners' Equity Account -
Retained earnings - prepetition (3,896,443,042)
Retained earnings - postpetition (2,481,001,076)
Adjustments to Owner Equity 130,367,156
Postpetition Contributions -
-----------------
Net Owners' Equity (4,071,970,246)
-----------------
Total Liabilities & Owners' Equity ($2,346,390,284)
=================
Ambac Financial Group, Inc.
Statement of Operations
For the month ended October 31, 2012
Gross Revenues -
Less: Returns & Allowances -
-----------------
Net Revenue -
Cost of Goods Sold:
Beginning Inventory -
Add: Purchases -
Cost of labor -
Other costs -
Less: Ending Inventory -
-----------------
Cost of Goods Sold -
Gross Profit -
Operating Expenses:
Advertising -
Auto and Truck Expense -
Bad Debts -
Contributions -
Employee Benefits Programs -
Officer/Insider Compensation -
Insurance $57,423
Management Fees/Bonuses -
Office Expense -
Pension & profit sharing plans -
Repairs & Maintenance -
Rent and Lease Expense -
Salaries/Commissions/Fees -
Supplies -
Taxes - Payroll -
Taxes - Real Estate -
Taxes - Other -
Travel & Entertainment -
Utilities -
Other 318,450
-----------------
Total Operating Expenses Before 375,873
Depreciation
Depreciation/Depletion/Amortization -
-----------------
Net profit(loss) Before Other Income &
Expenses (375,873)
Other Income and Expenses:
Other income 17,939
Interest Expense -
Other Expense (65,001,062)
-----------------
Net profit (loss) Before Reorganization Items 64,643,128
Reorganization Items:
Reorganization Items:
Professional Fees 1,237,218
U.S. Trustee Quarterly Fees 9,750
Interest on Cash from Chapter 11 -
Gain from Sale of Equipment -
Other Reorganization Expenses -
-----------------
Total Reorganization Expenses 1,246,968
-----------------
Income Taxes -
-----------------
Net Profit (Loss) ($63,396,160)
=================
Ambac Financial Group, Inc.
Schedule of Cash Receipts and Disbursements
For the month ended October 31, 2012
Cash Beginning of Month $31,458,725
Receipts:
Cash Sales -
Accounts Receivable - Prepetition -
Accounts Receivable - Postpetition -
Loans and Advances -
Sale of Assets -
Other 3,181
Transfers 58,699,174
-----------------
Total Receipts 58,702,355
Disbursements:
Gross Payroll -
Sales, Use, & Other Taxes -
Inventory Purchases -
Secured/Rental/Leases -
Insurance -
Administrative -
Selling -
Other 396,242
Owner Draw -
Transfers (to DIP Accts.) 58,699,174
Professional Fees -
U.S. Trustee Quarterly Fees -
Court Costs -
-----------------
Total Disbursements 59,095,416
-----------------
Net Cash Flow (393,061)
-----------------
Cash - End of Month $31,065,664
=================
About Ambac Financial
Ambac Financial Group, Inc., headquartered in New York City, is a
holding company whose affiliates provided financial guarantees and
financial services to clients in both the public and private
sectors around the world.
Ambac Financial filed a voluntary petition for relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will
continue to operate in the ordinary course of business as "debtor-
in-possession" under the jurisdiction of the Bankruptcy Court and
in accordance with the applicable provisions of the Bankruptcy
Code and the orders of the Bankruptcy Court.
Ambac's bond insurance unit, Ambac Assurance Corp., did not file
for bankruptcy. AAC is being restructured by state regulators in
Wisconsin. AAC is domiciled in Wisconsin and regulated by the
Office of the Commissioner of Insurance of the State of Wisconsin.
The parent company is not regulated by the OCI.
Ambac's consolidated balance sheet -- which includes non-debtor
Ambac Assurance Corp -- showed US$30.05 billion in total assets,
US$31.47 billion in total liabilities, and a US$1.42 billion
stockholders' deficit, at June 30, 2010.
On an unconsolidated basis, Ambac said in a court filing that
it has assets of (US$394.5 million) and total liabilities of
US$1.6826 billion as of June 30, 2010.
Bank of New York Mellon Corp., as trustee to seven different types
of notes, is listed as the largest unsecured creditor, with claims
totaling about US$1.62 billion.
The Blackstone Group LP is the Debtor's financial advisor.
Kurtzman Carson Consultants LLC is the claims and notice agent.
KPMG LLP is tax consultant to the Debtor.
Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller,
Esq., at Morrison & Foerster LLP, in New York, serve as counsel
to the Official Committee of Unsecured Creditors. Lazard Freres
& Co. LLC is the Committee's financial advisor.
Bankruptcy Judge Shelley C. Chapman entered an order confirming
the Fifth Amended Plan of Reorganization of Ambac Financial Group,
Inc. on March 14, 2012. The Plan provides for the full payment of
secured claims and 8.5% to 13.2% recovery for general unsecured
claims.
Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY
NEWS. The newsletter tracks the Chapter 11 proceeding undertaken
by Ambac Financial Group and the restructuring proceedings of
Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945-
7000).
AMERICAN AIRLINES: October Revenue Cut $85MM by Pilots, Sandy
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that AMR Corp. reported a $164 million net loss in October
and said revenue was depressed $85 million from a combination of
disruptions caused by Hurricane Sandy and a slowdown by pilots'
protesting contract revisions.
The report relates that in an operating report filed with the
bankruptcy court, AMR said revenue in October was $1.96 billion,
resulting in a $39 million operating loss. Reorganization costs
of $72 million contributed to the $164 million net loss. At the
end of October, AMR had $4.22 billion in unrestricted cash, down
slightly from $4.23 billion on Sept. 30.
The airline has another $848 million in restricted cash.
AMR Corporation, et al.
Condensed Consolidated Balance Sheet
As of October 31, 2012
ASSETS
Current Assets
Cash $494,000,000
Short-term investments 3,721,000,000
Restricted cash and short-term investments 848,000,000
Receivables, net 1,062,000,000
Inventories, net 583,000,000
Fuel derivative contracts 73,000,000
Other current assets 499,000,000
------------------
7,280,000,000
Equipment and property
Flight equipment, net 10,450,000,000
Other equipment and property, net 2,074,000,000
Purchase deposits for flight equipment 773,000,000
------------------
13,297,000,000
Equipment and property under capital leases
Flight equipment, net 229,000,000
Other equipment and property, net 62,000,000
------------------
291,000,000
International slots and route authorities 708,000,000
Domestic slots and airport operating and gate
lease rights, less accumulated amortization,
net 165,000,000
Other assets 2,068,000,000
------------------
TOTAL ASSETS $23,809,000,000
==================
Liabilities and stockholders' equity (deficit)
Current liabilities
Accounts payable $1,239,000,000
Accrued liabilities 2,051,000,000
Air traffic liability 4,872,000,000
Current maturities of long-term debt 1,329,000,000
Current obligations under capital leases 31,000,000
------------------
Total current liabilities 9,522,000,000
Long-term debt, less current maturities 6,279,000,000
Obligations under capital leases, less
current obligations 387,000,000
Pension and postretirement benefits 75,000,000
Other liabilities, deferred gains and
deferred credits 1,660,000,000
Liabilities subject to compromise 13,461,000,000
Stockholders' Equity (deficit)
Preferred stock -
Common stock 341,000,000
Additional paid-in capital 4,478,000,000
Treasury stock (367,000,000)
Accumulated other comprehensive income (loss) (2,138,000,000)
Accumulated deficit (9,889,000,000)
------------------
(7,575,000,000)
------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 23,809,000,000
==================
AMR Corporation, et al.
Consolidated Statement of Operations
Month Ended October 31, 2012
Revenues
Passenger - American Airlines $1,448,000,000
- Regional Affiliates 249,000,000
Cargo 56,000,000
Other revenues 202,000,000
------------------
Total operating revenues 1,955,000,000
Expenses
Aircraft fuel 741,000,000
Wages, salaries and benefits 526,000,000
Other rentals and landing fees 112,000,000
Maintenance, materials and repairs 121,000,000
Depreciation and amortization 82,000,000
Commissions, booking fees and credit card expense 81,000,000
Aircraft rentals 46,000,000
Food service 47,000,000
Special charges -
Other operating expenses 238,000,000
------------------
Total operating expenses 1,994,000,000
------------------
Operating income (39,000,000)
Other income (expense)
Interest income 2,000,000
Interest expense (58,000,000)
Interest capitalized 5,000,000
Miscellaneous - net (2,000,000)
------------------
(53,000,000)
------------------
Income before reorganization items (92,000,000)
Reorganization items, net (72,000,000)
------------------
Income (Loss) before income taxes (164,000,000)
Income tax -
------------------
Net income (loss) ($164,000,000)
==================
AMR Corporation, et al.
Condensed Consolidated Statement of Cash Flows
Month Ended October 31, 2012
Net cash provided by (used for) operating
activities $53,000,000
Cash flow from investing activities:
Capital expenditures, including aircraft
lease deposits (183,000,000)
Disposal of equipment and property 3,000,000
Net (increase) decrease in short-term investments (4,000,000)
------------------
Net cash used for investing activities (184,000,000)
Cash flow from financing activities:
Payments on long-term debt and capital
lease obligations (274,000,000)
Proceeds from:
Issuance of debt 268,000,000
Sale leaseback transactions 123,000,000
------------------
Net cash provided by financing activities 117,000,000
------------------
Net increase (decrease) in cash (14,000,000)
Cash at beginning of period 508,000,000
------------------
Cash at end of period $494,000,000
==================
Disbursements to Chapter 11 professionals during the operating
period totaled $18.928 million, which included $17.749 million
paid to professionals employed by the Debtors and $1.179 million
paid to professionals retained by the Official Committee of
Unsecured Creditors.
Payment to professionals included:
Professional Amount Paid
------------ -----------
Weil Gotshal & Manges LLP $2.943 million
Deloitte Financial $2.740 million
The Boston Consulting Group Inc. $2.473 million
Debevoise & Plimpton $1.734 million
Yetter Coleman LLP $1.216 million
A full-text copy of the October 2012 Monthly Operating Report is
available at http://bankrupt.com/misc/AMR_October2012MOR.pdf
American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements.
AMR, previously the world's largest airline prior to mergers by
other airlines, is the last of the so-called U.S. legacy airlines
to seek court protection from creditors.
American Airlines, American Eagle and the AmericanConnection
carrier serve 260 airports in more than 50 countries and
territories with, on average, more than 3,300 daily flights. The
combined network fleet numbers more than 900 aircraft.
The Company reported a net loss of $884 million on $18.02 billion
of total operating revenues for the nine months ended Sept. 30,
2011. AMR recorded a net loss of $471 million in the year 2010, a
net loss of $1.5 billion in 2009, and a net loss of $2.1 billion
in 2008.
AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion
in total assets, $29.55 billion in total liabilities, and a
$4.83 billion stockholders' deficit.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
FIRSTFED FINANCIAL: Ends October With $1.66 Million in Cash
-----------------------------------------------------------
FirstFed Financial Corp., on Nov. 27, 2012, filed its monthly
operating report for the month ended Oct. 31, 2012.
The Debtor posted a net loss of $87,153 for the month ended
Oct. 31, 2012.
As of Oct. 31, 2012, the Debtor had total assets of $1.84 million,
total liabilities of $159.62 million and total
stockholders' deficit of $157.78 million.
At the beginning of October, FirstFed Financial had $1.75 million
in cash. The Debtor had total cash receipts of $907 and total
cash disbursements of $89,342. At the end of the month, the
Debtor had total cash of $1.66 million.
A full-text copy of the monthly operating report is available at:
http://is.gd/D7HqQ7
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.
The TCR, citing Bill Rochelle, the bankruptcy columnist for
Bloomberg News, reported on Nov. 19, 2012, that FirstFed Financial
Corp. has an approved Chapter 11 plan after the bankruptcy judge
signed a Nov. 13 confirmation order. Holders of $157.8 million in
debentures were told to expect a recovery of 16.7% to 24% through
distribution of new stock. The current plan was FirstFed's second
stab at confirmation. The first plan was voted down.
K-V PHARMACEUTICAL: Ends October With $28.41 Million in Cash
------------------------------------------------------------
K-V Discovery Solutions, Inc., et al., on Nov. 27, 2012, filed its
monthly operating report for the month ended Oct. 31, 2012.
K-V Discovery Solutions posted a net loss from continuing
operations of $1.89 million on net revenues of $7.73 million for
the month ended Oct. 31, 2012.
As of Oct. 31, 2012, the Debtor had total assets of
$195.58 million, total liabilities of $706.45 million and total
stockholders' deficit of $510.86 million.
The Debtor had total cash receipts of $7.31 million and total cash
disbursements of $8.53 million. At the end of the month, K-V
Discovery Solutions had total cash of $28.41 million.
A full-text copy of the monthly operating report is available at:
http://is.gd/824uxo
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.
K-V's main business now is the sale of Makena, a drug reducing the
risk of premature birth. Hologic Inc. sold the Makena business to
K-V in 2008 and is owed about $95 million plus royalties. Hologic
has a lien on the right to distribute the product to recover the
remaining payments. Hologic wants the bankruptcy judge to grant
permission to foreclose rights to Makena.
K-V is operating with use of cash representing collateral for
$225 million in senior notes.
PINNACLE AIRLINES: Ends October With $34.37 Million in Cash
-----------------------------------------------------------
Pinnacle Airlines Corp. et al., on Nov. 26, 2012, filed its
monthly operating report for the month ended Oct. 31, 2012.
The Company reported a net loss of $9.84 million on total
operating revenues of $58.96 million for the month ended Oct. 31,
2012.
As of Oct. 31, 2012, the Company had total assets of
$800.33 million, total liabilities of $912.77 million and total
stockholders' deficit of $112.44 million.
At the beginning of the month, the Company had $18.68 million in
cash. Pinnacle Airlines had total cash disbursements of
$74.69 million. At the end of October, Pinnacle Airlines had
total cash of $34.37 million.
A full-text copy of the monthly operating report is available at:
http://is.gd/vnIhaS
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, 2013.
PMI GROUP: Ends October With $158.34 Million in Cash
----------------------------------------------------
PMI Group, Inc., on Nov. 27, 2012, filed its monthly operating
report for the month ended Oct. 31, 2012.
The Company reported a net loss of $2.23 million for the month
ended Oct. 31, 2012.
As of Oct. 31, 2012, the Company had total assets of
$227.22 million, total liabilities of $771.38 million and total
stockholders' deficit of $544.16 million.
At the beginning of October, the Company had $159 million in cash.
PMI Group had total cash receipts of $24 and total cash
disbursements of $661,018. As a result, at the end of the month,
the Company had total cash of $158.34 million.
A full-text copy of the monthly operating report is available at:
http://is.gd/2cA64G
About The PMI Group
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 $48.1-Mil. Operating Loss in October
-------------------------------------------------------------
Residential Capital, LLC, and its debtor affiliates disclosed
that for the period from October 1 to 31, 2012, it incurred
$48,149,966 in operating loss, compared to the $204,352,327
operating loss the prior month. Total net revenue for the period
was $110,221,000, while total reorganization expense was
$34,676,000.
The Debtors also reported that as of October 31, 2012,
consolidated assets totaled $10,660,633,000, consolidated
liabilities totaled $10,687,720,000, and consolidated equity
totaled $27,087,000.
Receipts during the operating period totaled $1,089,150,000,
while disbursements totaled $903,199,000. Payments to bankruptcy
professionals during the operating period totaled
$854,000, while payments to insiders totaled $155,002,254.
A full-text copy of the October 2012 Operating Report is
available for free at:
http://bankrupt.com/misc/rescapmoroct2012.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.
The Court extended the general bar date for claims against the
Debtors to Nov. 16, 2012, at 5:00 p.m., due to the events
precipitated by hurricane Sandy.
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).
SHARPER IMAGE: Ends October With $568,453 in Cash
-------------------------------------------------
TSIC, Inc., formerly known as Sharper Image Corp., on Nov. 27,
2012, filed its monthly operating report for the month ended
Oct. 31, 2012.
TSIC posted a net loss of $63,421 for the month ended Oct. 31,
2012.
As of Oct. 31, 2012, the Debtor had total assets of $1.14 million,
total liabilities of $(95.29) million and total stockholders'
equity of $94.15 million.
At the beginning of October, the Debtor had $692,109 in cash.
TSIC had total cash receipts of $1,007 and total cash
disbursements of $46,950. As a result, at the end of the month
the Debtor had total cash of $568,453.
A full-text copy of the monthly operating report is available at:
http://is.gd/ztMhRr
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.
The TCR reported on Aug. 16, 2012, that U.S. Bankruptcy Judge
Kevin Gross granted a motion by TSIC Inc., formerly the Sharper
Image, for procedures for dismissing its Chapter 11 case and the
disallowance of claims by a class of consumers who owned gift
cards the retailer issued before going under.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reported that what remains of Sharper Image Corp. will conclude
the bankruptcy with a distribution to some priority and unsecured
creditors even though the liquidated 184-store specialty retailer
is unable to comply with the requirements for carrying out a
Chapter 11 plan.
TRIBUNE CO: Has $29.9-Mil. Profit for Sept. 24 to Oct. 21
---------------------------------------------------------
Tribune Company, et al., posted a $29.933 million net income for
the period September 24 to October 21, 2012. Revenues for the
period totaled $244.312 million while operating expenses totaled
$202.755 million.
As of October 21, 2012, the Debtors had consolidated current
assets totaling $2,616,240,000, and consolidated current
liabilities totaling $581,967,000. The Debtors had assets
totaling $9,759,838,000, total liabilities of $1,316,208,000 and
total liabilities subject to compromise of $16,546,501,000, and
$8,102,871,000 in shareholders' deficit.
Disbursements for the operating period totaled $186,781,000,
which consisted of $71,186,000 in compensation and benefits,
$109,640,000 in general disbursements, and $5,955,000 in
reorganization-related disbursements.
For the operating period, $6,169,809 was paid to Chapter 11
professionals. The amount paid to the Chapter 11 professionals
since the bankruptcy filing totaled $288,213,173.
A full-text copy of the October 2012 Operating Report is
available at http://bankrupt.com/misc/tribunemoroct2012.pdf
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Protracted negotiations and mediation efforts and numerous
proposed plans of reorganization filed by Tribune Co. and
competing creditor groups have delayed Tribune's emergence from
bankruptcy. Many of the disputes among creditors center on the
2007 leveraged buyout fraudulence conveyance claims, the
resolution of which is a key issue in the bankruptcy case. The
bankruptcy court has scheduled a May 16 hearing on Tribune's plan.
Judge Kevin J. Carey issued an order dated July 13, 2012,
overruling objections to the confirmation of Tribune Co. and its
debtor affiliates' Plan of Reorganization. In November 2012,
Tribune received approval from the Federal Communications
Commission to transfer media licenses, one of the hurdles to
implementing the reorganization plan. Aurelius Capital Management
LP failed in halting implementation of the plan pending appeal.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, 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 ***