Former Sharper Image's Chapter 11 bankruptcy case dismissed Dec. 27

By Caroline Salls

Pittsburgh, Dec. 27 - TSIC, Inc.'s Chapter 11 bankruptcy case was dismissed on Thursday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, TSIC, formerly Sharper Image Corp., and its official committee of unsecured creditors received court approval in August of the procedures for dismissing the company's Chapter 11 case, distributing funds to general unsecured creditors and disallowing some gift card claims.

Although the liquidation sale of substantially all of the company's assets did not render the estate administratively solvent, TSIC said administrative solvency was achieved through a number of successful actions, including prosecution of a fraudulent transfer action against its founder and former chief executive officer.

The company said the fraudulent transfer action resulted in a more than $3 million payment to the estate.

TSIC said in the procedures motion that it did not have enough funds to pay priority creditors in full and would not be in a position to satisfy plan confirmation requirements.

According to the motion, allowed administrative claims and priority creditors slated to receive a distribution had been paid in full or would be before the conclusion of the case.

Sharper Image, a San Francisco-based specialty retailer, filed for bankruptcy on Feb. 19, 2008. Its Chapter 11 case number is 08-10322.

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