/raid1/www/Hosts/bankrupt/TCRAP_Public/061128.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, November 28, 2006, Vol. 9, No. 236
Headlines
A U S T R A L I A
AWB LIMITED: AU Law Firm to File Shareholder Class Action
AWB LIMITED: U.S. & Canadian Farmers' US$1-Bln Lawsuit Withdrawn
CUNNINGHAM FABRICATIONS: Enters Voluntary Wind-Up
INDEPENDENT NEWS: Fitch Affirms IDR at BB- with Stable Outlook
J.H. & E.J.: Members Agree to Wind Up Operations
LITTLE LEGENDS: Schedules Joint Meetings on December 22
MAKMUR AUSTRALASIA: Members and Creditors to Hear Wind-Up Report
METSO MINERALS: Placed Under Voluntary Wind-Up
MPS ENGINEERING: Liquidators to Present Wind-Up Report
OPALDEEN PTY: Members Resolve to Liquidate Business
PROJECT EQUITY: Members' Final Meeting Slated for Dec. 20
TREBBEL PTY: Members to Receive Liquidator's Account on Dec. 20
WONDAI SAW: Members Resolve to Wind Up Firm
WORLDWIDE PE: Becomes Advanced Medical's Wholly Owned Subsidiary
ZENITH CONSTRUCTIONS: Creditors Agree to Close Operations
C H I N A & H O N G K O N G
AGRICULTURAL BANK: CBRC Likely to Favor Joint-Stockholding Plan
BRILLIANT BRIDGE: Placed Under Voluntary Wind-Up
CHEK V' GO: Inability to Pay Debts Prompts Wind-Up
DUN & BRADSTREET: Sept. 30 Equity Deficit Widens to US$187.9MM
EMPEROR VANTAGE: High Court to Hear Wind-Up Petition on Dec. 27
FINSTAR LTD: Creditors Proof of Claim Due on December 24
GB BONTEX: Members to Receive Wind-Up Report on Dec. 27
GLOBAL POWER: Appoints John Matheson as President and CEO
HONG KONG FROZEN: Shareholders Resolve to Wind-Up Operations
MAXIFORD COMPANY: Creditors Must Prove Debts by December 27
POLYMER GROUP: S&P Affirms BB- Rating with Stable Outlook
PROTAN PLAZA: Members' Final Meeting Slated for December 28
SUN LUEN: Members Pass Resolution to Wind Up Firm
TAI SUN: Liquidator to Present Wind-Up Report on Dec. 1
TREASURE RESTAURANT: To Pay Dividend on November 29
* Government to Inject Capital to Weak Unlisted Banks
I N D I A
BPL LTD: Board to Meet on Nov. 23 to Consider Audited Financials
CANARA BANK: US$250-Mil. Bond Offer Five Times Oversubscribed
CENTURION BANK: Grants 1,14,78,793 Stock Options to Employees
CITY UNION BANK: Net Profit for Sept. 2006 Quarter Up 31%
CITY UNION BANK: To Consider Share Allotment on Nov. 30 Meeting
GENERAL MOTORS: Kirk Kerkorian Cuts GM Stake to 7.4%
OWENS CORNING: Can Enter Into Waiver Letter With JPMorgan
OWENS CORNING: Wants US$2,000,000 Louisiana Accord Approved
I N D O N E S I A
ANEKA TEMBANG: Reports Strong Finances for 9-Month Period
ARPENI PRATAMA: Posts IDR126-Bil Net Income for 2006 9-Month Pd.
BANK INDONESIA: Predicts Current Account Surplus To Drop In 2007
FREEPORT-MCMORAN: Purchase Plan Prompts DBRS to Review Ratings
NORTEL NETWORKS: To Trim R&D to 15% of Revenue
PHILLIPS-VAN HEUSEN: Earns US$50.8 Million in Third Quarter 2006
TELKOM INDONESIA: Loses IDR2.5BB After Gas Explosion & Mud Flow
J A P A N
ADVANCED MEDICAL OPTICS: Sees US$45MM Revenue Cut From Recall
ALIXPARTNERS LLP: Marks 25 Years; To Open Office in India
NOMURA HOME: DBRS Rates US$6.4-Million Class N3 Certs. at BB
SAMSONITE CORP: Planned US$175MM Dividend Cues S&P's Neg. Watch
SAMSONITE CORP: Offers Senior Notes & Declares Special Dividend
SANYO ELECTRIC: Expects Loss for 2006 & Reveals More Job Cuts
K O R E A
HANAROTELECOM: Fitch Gives 'BB' Issuer Default Rating
HANAROTELECOM: Signs MOU to Acquire Onse's Broadband Subscribers
KOOKMIN BANK: Hopeful that KEB Sale Will Push Through
SK CORP: To Postpone Incheon Oil's London IPO Next Year
SK CORP: Will Be Fined for Price-Fixing Collusion, FTC Says
* Survey Shows Investors' Optimism for Korean Market in 2007
M A L A Y S I A
ANTAH HOLDINGS: Court Extends Restraining Order to Feb. 5, 2007
DCEIL INT'L: Affin Bank Seeks MYR15.71-Mil. Payment from Unit
FEDERAL FURNITURE: Incorporates New Wholly Owned Subsidiary
FOAMEX INT'L: Murray Capital Backs Panel's DIP Loan Objections
FOAMEX INTERNATIONAL: Parties Balk at Amended Disclosure Report
GEORGE TOWN: Fails to Submit Interim 2Q Financial Report
SIRVA WORLDWIDE: Moody's Assigns Loss-Given-Default Ratings
SOLECTRON CAPITAL: Moody's Affirms B1 Corporate Family Rating
TECHVENTURE BHD: Incurs MYR4.45-Million Net Loss in 3Q 2006
N E W Z E A L A N D
A.J. BURR: Commences Liquidation Proceedings
AUTOWORKS SERVICE: Appoints Joint Liquidators
FELTEX CARPETS: Lawyer Asks Shareholders to Support Class Action
FOREMANS ROAD: Court Hears Liquidation Petition
FRESH PREPARED: Liquidation Hearing Slated for Feb. 1
LEONORA HOLDINGS: Creditors to Prove Claims on December 11
NZ CATERING: Creditors Proofs of Claim Due on December 18
PACIFIC RENAISSANCE: Members Resolve to Liquidate Business
PROPERTY PLACEMENTS: Shareholders Decide to Liquidate Business
RJI PACIFIC: Court Sets Liquidation Hearing on Dec. 11
SOVEREIGN CHARTERS: Faces Liquidation Proceedings
P H I L I P P I N E S
ATLAS CONSOLIDATED: Board Appoints A. Ramos as Vice President
NATIONAL POWER: Inks 5-Year Transition Supply Deal with Meralco
SAN MIGUEL CORP: CCBG President Denies Sales Overstatement
UNION BANK: Board Appoints M. Garcia as Trust Officer
UNITED COCONUT: Prepares to Sell PHP20-Bln of its NPA in 2007
S I N G A P O R E
BESTGROWTH HOLDINGS: Creditors Must Prove Claims by Dec. 8
EXABYTE CORP: Closes US$22 Million Asset Sale to Tandberg Data
HUA KOK: Proofs of Debt Due on Dec. 8
INTERMEC INC: Earns US$3.4 Million in Third Quarter 2006
OVERSEAS SHIPHOLDING: Earns US$90.8 Million in 2006 3rd Quarter
PACIFIC CENTURY: Denies Solicitation of Votes against Share Sale
PETROLEO BRASILEIRO: Production Increases 1.6% in October
PLASWERKZ MANUFACTURING: Court Orders to Wind Up Operations
SEA CONTAINERS: U.K. Regulator May Issue Financial Directions
SEA CONTAINERS: Wind-Up Petition Hearing Scheduled on December 1
TELONIX. NET: High Court Sets Wind-Up Hearing for Dec. 8
T H A I L A N D
BANK OF AYUDHYA: Plans to Increase Shares in Ayudhya Fund
BANGKOK BANK: Plans to Sell THB5-Billion Short Term Bond
BLOCKBUSTER INC: CEO Raises Holdings, Co. Shares Up 52-Week High
BLOCKBUSTER INC: Ties with Papa John on New Movie Rental Promo
FEDERAL-MOGUL: Court Places Insurers' Lift Stay Motion On Hold
FEDERAL-MOGUL: Judge Fitzgerald Denies Lloyd's Discovery Plea
KRUNG THAI: Joins 3 Other Banks in THB10-Bil. SME Project
NAKORNTHAI STRIP: Rehab Planner Registers Change of Directors
* BOND PRICING: For the Week 27 November to 1 December 2006
- - - - - - - -
=================
A U S T R A L I A
=================
AWB LIMITED: AU Law Firm to File Shareholder Class Action
---------------------------------------------------------
Australian law firm Maurice Blackburn Cashman confirmed that it
is close to launching a shareholder class action against AWB
Limited, the Australian Associated Press reports.
The action could be filed in the NSW Supreme Court before
Christmas, the report says.
According to Ninemsn.com.au, lawyers are waiting on the final
report of the Cole Commission, which is likely to recommend
criminal charges against current and former AWB executives.
The report is due to be handed to the federal government on
December 1, 2006, AAP notes.
AAP says that the case will seek damages for shareholders'
losses after AWB's share price sank to record lows this year,
wiping more than AU$1.3 billion off the company's market value
since the Cole Inquiry began in mid-January.
About AWB
AWB Limited -- http://www.awb.com.au/-- is Australia's leading
agribusiness and one of the world's largest wheat marketing
companies. It is also one of Australia's top 100 publicly
listed companies. The Company is the exclusive manager and
marketer of all Australian bulk wheat exports through what is
known as the Single Desk. The Company markets wheat, and a
range of other grains, into more than 50 countries, with
Australian wheat exports worth up to AU$5 billion per year.
AWB's footprint includes more than 430 outlets through its
subsidiary landmark and has offices across the world. The
company employs more than 2,700 staff reaching over 100,000
customers. AWB is also one of the nation's largest suppliers of
rural merchandise, distributors of fertilizer, marketers of
livestock, brokers of rural real estate and handlers of wool.
In late 2005, AWB was accused of knowingly paying AU$290 million
in kickbacks to the Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food
program. A UN report then found out that AWB paid the kickbacks
to a Jordanian trucking company linked to Hussein's deposed
regime. The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the
Company's role in and the Government's alleged "knowledge" of
the scandal. The "Cole Inquiry" is currently underway. The
scandal is anticipated to create great political repercussions
to the Australian Government, given the country's contribution
to military action against President Hussein in the 2003
invasion of Iraq.
In the Company's half-year report ended March 31, 2006, Brett
Kallio, a partner at Ernst & Young, noted that there is inherent
uncertainty surrounding the consolidated entity with regard to
matters associated with the Cole Inquiry. As the findings of
the Cole Inquiry have not yet been determined and reported,
there is uncertainty as to the nature of these findings and the
financial effect, if any, on the consolidated entity and its
operations, Mr. Kallio stated.
* * *
The Troubled Company Reporter - Asia Pacific reported on
July 12, 2006, that six American wheat farmers have launched a
AU$1-billion class action against AWB in the United States,
claiming its dealings in overseas markets damaged their own
incomes. According to the TCR-AP report, more farmers are
considering joining the class action.
The TCR-AP also previously reported that Australian law firm
Maurice Blackburn Cashman was considering a class action against
AWB on behalf of shareholders who lost money in the wake of the
Cole Inquiry.
The Company's balance sheet as of March 31, 2006, reflected
total assets of AU$5.7 billion and total liabilities of
AU$4.54 billion, showing total equity of AU$1.16 billion.
AWB LIMITED: U.S. & Canadian Farmers' US$1-Bln Lawsuit Withdrawn
----------------------------------------------------------------
A U.S. lawsuit claiming up to US$1 billion (AU$1.29 billion) in
damages from AWB Limited has been withdrawn from the U.S.
District Court in Washington DC for fine tuning, the Australian
Associated Press cites one of the lead solicitors in the action,
as saying.
On July 4, 2006, the Troubled Company Reporter - Asia Pacific
cited a report from The Sunday Mail, saying that American and
Canadian wheat farmers were preparing to file a AU$1-billion
damages lawsuit against AWB with the New York Federal Court.
According to the TCR-AP, U.S. wheat growers claimed that they
lost trade worth hundreds of millions of dollars with Iraq when
AWB paid almost AU$300 million in kickbacks to former dictator
Saddam Hussein's regime.
The TCR-AP noted that lawyers for the farmers planned to use the
Racketeer Influenced and Corrupt Organizations Act, which covers
bribery, kickbacks, and extortion. The U.S. Congress passed the
RICO Law in 1970 to eliminate organized crime, under which, any
person who succeeds in establishing a claim can automatically
receive three times their actual damages, plus costs. Thus, if
the action is successful, AWB could be forced to make a payout
triple the value of the kickbacks, the TCR-AP added.
"We just did a voluntary dismissal and the reason we did it was
to finalize a few more details," Washington lawyer Palmer Foret
told AAP, noting that "it will be re-filed in the not too
distant future."
Mr. Foret explained that postponing the case would also allow
lawyers and plaintiffs to digest Commissioner Terence Cole's
final report.
AAP notes that the Cole Inquiry report is due to be handed to
the federal government on December 1, 2006.
Mr. Foret said "we want to see what the final report has to
say," adding that "although so far, what's been gathered and
obtained by the Cole commission has been very helpful to our
efforts."
"I think the Cole commission has uncovered that it's absolutely
certain that there were bribes being paid by the AWB to Iraq,
and I think we have a very strong case on that," Mr. Foret
asserted.
The AAP notes however, that the lawsuit could be re-filed in
another jurisdiction. Possibly in the U.S. District Court in
New York State, where Standard Chartered Bank is suing, AAP
cites Mr. Foret, as saying.
AAP relates that the case involves a series of transactions in
2003 and 2004 when AWB sold U.S. soybeans to buyers in Indonesia
using the U.S. Department of Agriculture's Supplier Credit
Guarantee Program.
About AWB
AWB Limited -- http://www.awb.com.au/-- is Australia's leading
agribusiness and one of the world's largest wheat marketing
companies. It is also one of Australia's top 100 publicly
listed companies. The Company is the exclusive manager and
marketer of all Australian bulk wheat exports through what is
known as the Single Desk. The Company markets wheat, and a
range of other grains, into more than 50 countries, with
Australian wheat exports worth up to AU$5 billion per year.
AWB's footprint includes more than 430 outlets through its
subsidiary landmark and has offices across the world. The
company employs more than 2,700 staff reaching over 100,000
customers. AWB is also one of the nation's largest suppliers of
rural merchandise, distributors of fertilizer, marketers of
livestock, brokers of rural real estate and handlers of wool.
In late 2005, AWB was accused of knowingly paying AU$290 million
in kickbacks to the Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food
program. A UN report then found out that AWB paid the kickbacks
to a Jordanian trucking company linked to Hussein's deposed
regime. The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the
Company's role in and the Government's alleged "knowledge" of
the scandal. The "Cole Inquiry" is currently underway. The
scandal is anticipated to create great political repercussions
to the Australian Government, given the country's contribution
to military action against President Hussein in the 2003
invasion of Iraq.
In the Company's half-year report ended March 31, 2006, Brett
Kallio, a partner at Ernst & Young, noted that there is inherent
uncertainty surrounding the consolidated entity with regard to
matters associated with the Cole Inquiry. As the findings of
the Cole Inquiry have not yet been determined and reported,
there is uncertainty as to the nature of these findings and the
financial effect, if any, on the consolidated entity and its
operations, Mr. Kallio stated.
* * *
The Troubled Company Reporter - Asia Pacific reported on
July 12, 2006, that six American wheat farmers have launched a
AU$1-billion class action against AWB in the United States,
claiming its dealings in overseas markets damaged their own
incomes. According to the TCR-AP report, more farmers are
considering joining the class action.
The TCR-AP also previously reported that Australian law firm
Maurice Blackburn Cashman was considering a class action against
AWB on behalf of shareholders who lost money in the wake of the
Cole Inquiry.
The Company's balance sheet as of March 31, 2006, reflected
total assets of AU$5.7 billion and total liabilities of AU$4.54
billion, showing total equity of AU$1.16 billion.
CUNNINGHAM FABRICATIONS: Enters Voluntary Wind-Up
-------------------------------------------------
The sole member of Cunningham Fabrications Pty Ltd on Nov. 6,
2006, resolved to voluntarily wind up the company's operations.
Anthony Hayes Douglas-Brown and Jeffrey William Vibert were
consequently appointed as joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Anthony Hayes Douglas-Brown
Jeffrey William Vibert
c/o Bentleys MRI Perth
Chartered Accountants
10 Kings Park Road
West Perth, Western Australia
Australia
Telephone: (08) 9480 2000
About Cunningham Fabrications
Cunningham Fabrications Pty Ltd is located in Western Australia,
Australia. The company's business involved fabricated metal
products.
INDEPENDENT NEWS: Fitch Affirms IDR at BB- with Stable Outlook
--------------------------------------------------------------
On November 24, 2006, Fitch Ratings took Independent News &
Media Plc's Issuer Default and senior unsecured ratings off
Rating Watch Evolving and affirmed them at 'BB-' after the
announcement that talks surrounding the leveraged buyout of its
41% subsidiary APN News & Media have been terminated. The
Outlook on the Issuer Default rating is Stable.
On October 26, 2006, Fitch had put IN&M's ratings on Rating
Watch Evolving after the announcement of a plan, in conjunction
with Providence Private Equity Partners, for a leveraged buyout
of APN. This would have released cash to IN&M, left its stake
in the APN business largely unchanged, but come at the cost of
IN&M's control of APN (which would no longer have been
consolidated). IN&M's plans for the proceeds were, at the time
of this announcement, unclear. The deal broke down because the
consortium (comprising IN&M, Providence, and potentially other
private equity firms) had been unable to finalize its own terms
that would have enabled it to have met its desired timetable.
"While the release of cash would have allowed IN&M to pursue a
number of options, the use of proceeds was not specified and
could have moved the credit profile either way," says Alex
Griffiths, Director in Fitch's European TMT group. "While there
are doubtless international opportunities, Fitch does not see
further large-scale international expansion as a short-term
strategic imperative, and does not see the inability to complete
the deal as negative for IN&M's credit profile. However, the
strategic rationale for the deal remains and there is still the
possibility that it could yet be made to work with a different
partner."
Following the announcement that talks of the leveraged buyout of
APN was terminated, IN&M has not amended its internal
consolidated net debt/EBITDA leverage target of 3x. Any
subsequent changes could affect the ratings.
Using Fitch's methodology for adjusting the group's ratio for
IN&M's minority ownership in APN (by stripping out APN's
earnings and debt from the group's metrics and including only
dividend streams received) leverage as measured by net
debt/EBITDA was 4.4x at FYE05. This compares to 3.4x on a
headline basis (which is itself a higher value than quoted by
IN&M, whose calculation excludes certain instruments such as
convertibles and preference shares in debt).
APN accounted for 60% of IN&M's consolidated EBITDA in FY05, and
contributed EUR24 million in dividends to the group.
Group Profile
Independent News & Media PLC -- http://www.inmplc.com/-- is a
leading international media and communications group, with its
main interests in Australia, Ireland, New Zealand, South Africa,
the United Kingdom and most recently, India. Spanning four
continents and 21 individual countries, INM operates in the
areas of publishing (magazines, national/regional newspapers and
online), radio and outdoor advertising. The Group publishes
over 175 individual titles with a weekly audience of over 100
million consumers, in addition to its 70+ online sites.
The Group manages gross assets of EUR4.0 billion, revenue of
over EUR1.8 billion and employs over 10,400 people worldwide.
J.H. & E.J.: Members Agree to Wind Up Operations
------------------------------------------------
The members of J.H. & E.J. Williams (Queensland) Pty Ltd met on
Nov. 10, 2006, and agreed to voluntarily wind up the company's
operations.
Accordingly, Jonathan Paul McLeod was appointed as liquidator.
The Liquidator can be reached at:
Jonathan McLeod
McLeod & Partners
c/o Knights Insolvency Administration
Level 14, Brisbane Club Tower
251 Adelaide Street
Brisbane, Queensland 4000
Australia
About J H & E J Williams
J H & E J Williams (Queensland) Pty Ltd is located in New South
Wales, Australia. The company is engaged with real estate
investment trusts.
LITTLE LEGENDS: Schedules Joint Meetings on December 22
-------------------------------------------------------
The members and creditors of Little Legends Pty Ltd will hold a
joint meeting on Dec. 22, 2006, at 12:15 p.m.
During the meeting, the members and creditors will receive the
liquidators' accounts of the company's wind-up proceedings and
property disposal exercises.
The Joint and Several Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East 3123
Australia
About Little Legends
Little Legends Pty Ltd is located in Victoria, Australia. The
company is involved with Child Day Care Services.
MAKMUR AUSTRALASIA: Members and Creditors to Hear Wind-Up Report
----------------------------------------------------------------
The members and creditors of Makmur Australasia Pty Ltd will
meet for their joint meetings on Dec. 22, 2006, at 12:30 p.m.,
to receive the liquidator's report regarding the company's wind-
up proceedings.
The Joint and Several Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East 3123
Australia
About Makmur Australasia
Makmur Australasia Pty Ltd is a holding company that is located
in Victoria, Australia.
METSO MINERALS: Placed Under Voluntary Wind-Up
----------------------------------------------
At a general meeting of Metso Minerals (Pyrotherm) Pty Ltd held
on Nov. 3, 2006, the members passed a special resolution to
voluntarily wind up the company's operations.
In this regard, Shaun Fraser was appointed as liquidator.
The Liquidator can be reached at:
Shaun Fraser
c/o McGrathNicol+Partners
Level 30, Central Park
152-158 St George's Terrace
Perth, Western Australia 6000
Australia
Telephone: 08 6363 7600
About Metso Minerals
Metso Minerals (Pyrotherm) Pty Ltd is located in Western
Australia, Australia. The company is involved with Mining
Machinery and equipment, except Oil and Gas Field.
MPS ENGINEERING: Liquidators to Present Wind-Up Report
------------------------------------------------------
MPS Engineering Pty Ltd, which is in liquidation, will hold
joint meetings for its members and creditors on Dec. 22, 2006,
at 12:45 p.m.
At the meeting, the liquidators will present a wind-up report of
the company's wind-up proceedings and property disposal
activities.
The Joint and Several Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East 3123
Australia
About MPS Engineering
MPS Engineering Pty Ltd is located in Victoria, Australia. The
company is involved with Steel Pipe and Tubes.
OPALDEEN PTY: Members Resolve to Liquidate Business
---------------------------------------------------
At a general meeting held on Oct. 27, 2006, the members of
Opaldeen Pty Ltd passed a special resolution to voluntarily
liquidate the company's business and distribute the proceeds of
its assets disposal.
The Liquidator can be reached at:
A. J. Hallam
1st Floor, 9 St Pauls Terrace
Spring Hill, Queensland 4004
Australia
About Opaldeen Pty
Opaldeen Pty Ltd is an investor holding company that is located
in Queensland, Australia.
PROJECT EQUITY: Members' Final Meeting Slated for Dec. 20
---------------------------------------------------------
The members of Project Equity Construction Pty Ltd, which is in
liquidation, will meet on Dec. 20, 2006, at 9:00 a.m., to
receive Liquidator Humphris' account of the company's wind-up
proceedings and property disposal exercises.
The Joint and Several Liquidator can be reached at:
Michael J. Humphris
Horwath BRI (Vic) Pty Ltd
Chartered Accountants
Level 30, The Rialto
525 Collins Street
Melbourne, Victoria 3000
Australia
About Project Equity
Project Equity Construction Pty Ltd is a general contractor of
Residential Buildings. The company is located in Queensland,
Australia.
TREBBEL PTY: Members to Receive Liquidator's Account on Dec. 20
---------------------------------------------------------------
The members of Trebbel Pty Ltd will meet for their final meeting
on Dec. 20, 2006, at 10:00 a.m., to receive Liquidator Moloney's
account of the company's wind-up proceedings.
According to the Troubled Company Reporter - Asia Pacific, the
company declared the first and final dividend for its creditors
on Nov. 11, 2006.
The Liquidator can be reached at:
Gregory Moloney
c/o Ferrier Hodgson (Qld)
Level 7, 145 Eagle Street
Brisbane, Queensland 4000
Australia
About Trebbel Pty
Trebbel Pty Ltd is an investor holding company that is located
in Queensland, Australia.
WONDAI SAW: Members Resolve to Wind Up Firm
-------------------------------------------
Members of Wondai Saw and Planing Mills Pty Ltd met on Oct. 27,
2006, and resolved to voluntarily wind up the company's
operations.
The Director can be reached at:
L. G. Gardner
c/o John Crossley & Associates
Suite 10, Noosa Professional Centre
1 Lanyana Way, Noosa Heads 4567
Australia
Telephone: 07 5473 5444
About Wondai Saw
Wondai Saw and Planing Mill Pty Ltd is a native hardwood
processor. The mill was originally established on 1906, in the
rural community of Wondai, as a hoop-pine processor. The Wondai
mill was subsequently converted to processing native hardwoods
in the early 1950s. The mill is the major employer in the
region, with a current workforce of 45 direct employees and 14
contractors.
The Wondai mill has been exporting outdoor and decking products
to Japan since 1997 and, in conjunction with T & G Flooring, has
exported flooring products to the United States of America over
the last three years.
The mill also supplied products to historic and federation
projects, including the Australian Woolshed in Cairns and Wondai
Timber Museum, a local tourist facility. The Wondai mill has
also supplied structural and outdoor timbers to the Breakfast
Creek Boardwalk in Brisbane and the Roma Street Parkland
project.
WORLDWIDE PE: Becomes Advanced Medical's Wholly Owned Subsidiary
----------------------------------------------------------------
On September 8, 2006, Advanced Medical Institute Inc., a company
incorporated in the United States of America, entered into a
Share Exchange Agreement with Worldwide PE Patent Holdco Pty
Limited, a privately owned Australian company, and Worldwide
PE's shareholders. Pursuant to the Agreement, Advanced Medical
acquired all of the issued and outstanding shares of stock of
Worldwide PE in exchange for:
* the payment of AU$3 million (approximately US$2.25
million); and
* the issuance in the aggregate of 16,125,000 of Advanced
Medical's shares of common stock valued for this purpose at
US$1.00 per share to the Shareholders pursuant to
Regulation S of the Securities Act of 1933, as amended.
Advanced Medical then transferred the shares of Worldwide PE to
its wholly owned subsidiary, AMI Australia Holdings Pty Limited.
As a result, Worldwide PE became an indirect wholly owned
subsidiary of Advanced Medical.
The cash component of the purchase price is being funded by two
secured three-year term loans in the aggregate principal amount
of AU$3 million to AMI Australia by ANZ Nominees Limited in its
capacity as custodian of the Professional Pensions PST.
The loan is to be secured by a security interest in all of AMI
Australia's assets and undertakings including its existing
equity interests in:
(a) PE Patent Holdco Pty Limited,
(b) Intelligent Medical Technologies Pty Limited,
(c) Advanced Medical Institute (NZ) Limited, and
(d) Whygo Video Conferencing Pty Limited,
and accrues interest at an annual coupon of 450 basis points
above the then Australian Reserve Bank's current cash rate --
being an aggregate current interest rate of 10.5% as at
September 8, 2006.
Copies of the two loan agreements and the two fixed and floating
charge (security) agreements (the "Loan Documents") have been
filed as Exhibits 10.2, 10.3, 10.4 and 10.5 hereto.
As a result of acquiring Worldwide PE, along with its previous
acquisition of rights to use the same intellectual property in
Australia when it acquired PE Patent Holdco Pty Limited in
November 2005, Advanced Medical and its subsidiaries, acquire
the right to use, worldwide, the patent applications and the
associated pharmaceutical formulations, treatment methodologies,
and dosing manuals that have been used in the Australian
business.
Auditor's Going Concern Doubt
After auditing Worldwide PE's balance sheet as of June 30, 2006,
and the related statement of operations, stockholders' deficit,
and cash flow for the period from November 16, 2005, to June 30,
2006, Kabani & Company, Inc., Certified Public Accountants,
expressed substantial doubt on the company's ability to continue
as a going concern.
Kabani & Company pointed at Worldwide PE's loss from operations
amounting US$1,071 and a working capital deficiency of US$1,048.
The auditor noted that these factors raise substantial doubt
about its ability to continue as a going concern, but clarified
that the financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
About Advanced Medical
Advanced Medical has commenced business operations in China on
September 4, 2006, and in Japan on October 1, 2006. Currently,
the company is also actively exploring further international
expansion opportunities. It believes that the acquisition of
Worldwide PE and its associated intellectual property was
essential for the company to be able to provide its premature
ejaculation treatment programs outside Australia.
About Worldwide PE
Worldwide PE Patent Holdco Pty Ltd, an Australian Corporation,
was incorporated on November 16, 2006. The Company's principal
activity is the holding of intellectual property on technology
for premature ejaculation treatment. The Company owns the right
to the intellectual property outside Australia.
Worldwide PE's intellectual property solely consist of a
worldwide PCT patent application filed with IP Australia, the
subsequent individual country applications filed in the United
States, the European Union, Japan, the People's Republic of
China, India, and New Zealand made based on that PCT patent
application and the worldwide (excluding Australia) formulation
rights for its premature ejaculation programs. Assuming grant
of a patent is obtained, the patents will expire on July 9,
2024.
ZENITH CONSTRUCTIONS: Creditors Agree to Close Operations
---------------------------------------------------------
On Nov. 9, 2006, the creditors of Zenith Constructions
Queensland Pty Ltd met and resolved to voluntarily wind up the
company's operations.
Subsequently, Jonathan Paul McLeod was appointed as liquidator.
On October 19, 2006, the Troubled Company Reporter - Asia
Pacific reported that Peter Geroff and Will Colwell were
appointed as the company's receivers on August 31.
The Liquidator can be reached at:
Jonathan Mcleod
McLeod & Partners
c/o Knights Insolvency Administration
Level 14, Brisbane Club Tower
251 Adelaide Street
Brisbane, Queensland 4000
Australia
About Zenith Constructions
Zenith Constructions Queensland Pty Ltd --
http://www.zenith-corp.com-- is located in Queensland,
Australia. The company is a general contractor of single-family
houses.
================================
C H I N A & H O N G K O N G
================================
AGRICULTURAL BANK: CBRC Likely to Favor Joint-Stockholding Plan
---------------------------------------------------------------
Agricultural Bank of China is likely to be turned into a joint-
stockholding bank, the Wall Street Journal reports, citing Tang
Shuangning, vice chairman of the China Banking Regulatory
Commission, as saying.
"The direction of Agricultural Bank's reform should be
restructuring it into a joint-stockholding bank," Mr. Tang said,
adding, "the government wants to create a "large-scale" bank to
serve rural development."
As reported by the Troubled Company Reporter - Asia Pacific on
November 9, 2006, the CBRC has rejected the reform plan
submitted by the bank, which seeks to be listed as a whole
company instead of being broken into smaller units.
However, TCR-AP said that regulators considered breaking the
bank up and listing the best parts or listing those areas of the
bank that are not in line with government-mandated policy
lending.
Estimated cost of the reform plan was expected to reach US$100
billion.
* * *
The Agricultural Bank of China -- http://www.abocn.com/-- is
the mainland's fourth largest bank. It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.
Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.
The Troubled Company Reporter - Asia Pacific reported on June
27, 2006, that the National Audit Office found accounting
irregularities involving CNY51.6 billion, CNY14.27 billion of
which come from deposit business, CNY27.62 billion from loan
grants, and CNY9.72 billion from fraudulent bill issuance.
Fitch Ratings gave the Bank an 'E' Individual rating.
BRILLIANT BRIDGE: Placed Under Voluntary Wind-Up
------------------------------------------------
At the extraordinary general meeting held on Nov. 23, 2006, the
members of Brilliant Bridge Ltd passed a special resolution to
voluntarily wind up the company's operations and Choi Wai Tong
was appointed as liquidator.
The Liquidator can be reached at:
Choi Wai Tong
Room 2014, 20/F
Wellborne Commercial Centre
8 Java Road, North Point
Hong Kong
CHEK V' GO: Inability to Pay Debts Prompts Wind-Up
--------------------------------------------------
At an extraordinary board meeting held on Nov. 13, 2006, the
directors of Chek V' Go Spring Metal Company Ltd passed a
special resolution to wind up the company's operations due to
its liabilities.
In this regard, Chan Kin Hang Danvil was appointed as
provisional liquidator.
The Liquidator can be reached at:
Chan Kin Hang, Danvil
Room 802, 8/F
Ginza Square, 565-567 Nathan Road
Yaumatei, Kowloon
Hong Kong
About Chek V' Go
Chek V' Go Spring Metal Co Ltd is located in Hong Kong. The
company is in hardware business.
DUN & BRADSTREET: Sept. 30 Equity Deficit Widens to US$187.9MM
--------------------------------------------------------------
The Dun & Bradstreet Corporation reported US$45.8 million of net
income on US$359.2 million of net revenues for the three months
ended Sept. 30, 2006, compared to US$31.7 million of net income
on US$341.6 million of net revenues for the same period in 2005.
At Sept. 30, 2006, the company's balance sheet showed US$1.4
billion in total assets and US$1.6 billion in total liabilities,
resulting in a US$187.9 million stockholders' deficit.
The company's Sept. 30 balance sheet also showed strained
liquidity with US$526.5 million in total current assets
available to pay US$729.2 million in total current liabilities.
A full-text copy of the company's quarterly report is available
for free at:
http://researcharchives.com/t/s?1588
Strategic Agreement in China
D&B has signed an agreement with Huaxia International Credit
Consulting Co. Limited -- a provider of business information and
credit management services in China -- to establish a new joint
venture to trade under the name Huaxia D&B China. D&B will be
the majority shareholder in the new venture, which the company
expects will commence business in early December, subject to
completion of certain regulatory and contractual conditions.
Additional financial details are not being disclosed.
Huaxia D&B China is expected to significantly improve D&B's
quality and coverage of commercial data in China and enhance the
company's competitive position in the Asia-Pacific market. The
joint venture will leverage the parent companies' best-in-class
data collection capabilities and the D&B Worldwide Network to
deliver superior commercial insight and value to customers
around the world. The new entity will distribute both D&B and
co-branded products and solutions throughout China. In
addition, the parent companies will jointly develop new business
information and credit management solutions.
About D&B
The Dun & Bradstreet Corporation (NYSE:DNB) --
http://www.dnb.com/-- provides business information and
insight, enabling companies to Decide with Confidence(R) for 165
years. D&B's global commercial database contains more than 100
million business records. The database is enhanced by D&B's
proprietary DUNSRight(R) Quality Process, which transforms the
enormous amount of data D&B collects daily into decision-ready
insight. Through the D&B Worldwide Network - an unrivaled
alliance of D&B and leading business information providers
around the world - customers gain access to the world's largest
and highest quality global commercial business information
database.
D&B partners with many of the world's largest and most
successful enterprises as well as mid-size companies and
entrepreneurial start-ups. Customers use D&B Risk Management
Solutions(TM) to mitigate credit risk, increase cash flow and
drive increased profitability; D&B Sales & Marketing
Solutions(TM) to increase revenue from new and existing
customers; D&B E-Business Solutions(TM) to convert prospects
into clients faster by enabling business professionals to
research companies, executives and industries; and D&B Supply
Management Solutions(TM) to generate ongoing savings through
supplier consolidation, and to protect their businesses from
supply chain disruption and serious financial, operational and
regulatory risk.
EMPEROR VANTAGE: High Court to Hear Wind-Up Petition on Dec. 27
---------------------------------------------------------------
A petition to wind up Emperor Vantage Ltd will be heard before
the High Court of Hong Kong on Dec. 27, 2006, at 9:30 a.m.
Chan Cheong Kin filed the petition with the Court on Nov. 6,
2006.
The Solicitors for the Petitioner can be reached at:
Chong Yan-Tung Chris
34/F, Hopewell Centre
183 Queen's Road East
Wanchai, Hong Kong
FINSTAR LTD: Creditors Proof of Claim Due on December 24
--------------------------------------------------------
The creditors of Finstar Ltd are required by Liquidator Michael
Roger Eyles to submit their proofs of claim by Dec. 24, 2006.
Failure to meet the requirement will exclude a creditor from
sharing in any distribution the company will make.
On November 27, 2006, the Troubled Company Reporter - Asia
Pacific reported that on Nov. 15 the company's members passed a
special resolution to voluntarily wind up its operations.
The Liquidator can be reached at:
Michael Roger Eyles
Suite 905, 9/F, Centre Point
181-185 Gloucester Road
Wanchai, Hong Kong
GB BONTEX: Members to Receive Wind-Up Report on Dec. 27
-------------------------------------------------------
The members of GB Bontex Hong Kong Ltd will hold a final general
meeting on Dec. 27, 2006, at 10:00 a.m., to receive Liquidator
Kostelni's report on the company's wind-up proceedings.
According to the Troubled Company Reporter - Asia Pacific, the
company's creditors were required to submit their proofs of debt
on Oct. 20, 2006.
The Liquidator can be reached at:
Charles W James Kostelni
5 Hamilton Drive
Lexington, Virginia 24450
U.S.A.
GLOBAL POWER: Appoints John Matheson as President and CEO
---------------------------------------------------------
Global Power Equipment Group Inc. announced key management
changes effective immediately, including the appointment of John
Matheson as president and chief executive officer.
Mr. Matheson, who previously served as the company's executive
vice president and chief operating officer, replaces Larry
Edwards, who will remain as the company's non-executive chairman
of the board. Mr. Matheson was also named a member of the board
of directors.
The company disclosed that Mr. Matheson has served in several
other senior roles within the company, including senior vice
president of Global Power, executive vice president, Operations
of the Auxiliary Power segment, and as the company's general
counsel and secretary.
During these roles, Mr. Matheson was responsible for many of the
company's key strategic initiatives, including mergers and
acquisitions and the corporate operations in Asia.
He led the reorganization of the Auxiliary Power segment and the
acquisitions of Williams Industrial Services Group and Deltak
Power Equipment (China).
Before joining the company, he was with The Williams Companies,
where he was responsible for mergers, acquisition, and
securities law matters.
Formerly, he was a shareholder with the law firm of Conner &
Winters P.C., in Tulsa, Oklahoma, and was a Certified Public
Accountant with Price Waterhouse. Mr. Matheson is an alumnus of
Harvard Business School, Georgetown University Law Center, and
the University of Oklahoma School of Business.
Other Key Appointments
The company appointed Michael Hanson to chief financial officer,
replacing Jim Wilson, who had retired. Mr. Hanson previously
served as the company's chief accounting officer, and before
that, as corporate controller. Before joining Global Power, he
was financial controller at Xeta Technologies, a provider of
communications solutions and services, as well as an audit
manager at Arthur Andersen LLP. A Certified Public Accountant,
Mr. Hanson holds a B.S. in Accounting from the University of
Tulsa.
Jeff Davis has also been named president of the Deltak Specialty
Boiler Systems division of Deltak LLC. Mr. Davis first joined
Deltak in 1985, and has served in a range of positions within
its engineering, sales, and management teams. He holds a B.S.
in Chemical Engineering from the University of Colorado.
* * *
Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries. The company designs,
engineers and manufactures a range of heat recovery and
auxiliary equipment primarily used to enhance the efficiency and
facilitate the operation of gas turbine power plants as well as
for other industrial and power-related applications.
The company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey,
Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.
The company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors. The Official Committee of Unsecured
Creditors appointed in the Debtors' cases has selected Landis
Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the
Debtors reported total assets of US$381,131,000 and total debts
of US$123,221,000. The Debtors' exclusive period to filed a
chapter 11 plan expires on Jan. 26, 2007.
HONG KONG FROZEN: Shareholders Resolve to Wind-Up Operations
------------------------------------------------------------
At an extraordinary general meeting held on Nov. 24, 2006, the
shareholders of Hong Kong Frozen Meat Sea Food Wholesalers
Retailers Association Ltd resolved to voluntarily wind up the
company's operations.
Accordingly, Cheung Chui Ping Chaplin was appointed as
liquidator.
The Liquidator can be reached at:
Cheung Chui Ping Chaplin
9/F, Times Media Centre
133 Wanchai Road, Wanchai
Hong Kong
MAXIFORD COMPANY: Creditors Must Prove Debts by December 27
-----------------------------------------------------------
Liquidator Li Man Wai requires the creditors of Maxiford Company
Ltd to submit their proofs of debts by Dec. 27, 2006.
Creditors who cannot prove their debts by the due date will be
excluded from sharing in any distribution the company will make.
On Nov 27, 2006, the Troubled Company Reporter - Asia Pacific
reported that on Nov. 16 the members of Maxiford passed a
special resolution to voluntarily wind up the company's
operations.
The Liquidator can be reached at:
Li Man Wai
Room 1001, 10/F
Tai Yau Building
181 Johnston Road, Wanchai
Hong Kong
POLYMER GROUP: S&P Affirms BB- Rating with Stable Outlook
---------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Polymer Group Inc. to negative from stable.
All ratings, including the 'BB-' corporate credit rating, were
affirmed.
The outlook revision follows several quarters of weaker-than-
expected performance and somewhat higher-than-expected debt
primarily due to raw material cost escalation and some product
mix shifts. Also contributing to the disappointing results were
several one-time items such as costs related to technical
problems associated with new equipment, an acquisition that was
not consummated, the closing of manufacturing capacity, and
moving the company's headquarters.
"Despite signs that operating results have stabilized, and the
potential benefits of new plant investments, we are concerned
about the company's ability to return financial measures to
levels appropriate for the ratings, particularly given less
favorable economic prospects," said Standard & Poor's credit
analyst Cynthia Werneth.
The ratings on Polymer reflect the company's weak business
position as a producer of nonwoven and oriented polyolefin
products and its aggressive financial profile. The narrow focus
of Polymer's business operations is a limiting factor but is
partially offset by the company's leading positions in its niche
markets, good geographic sales and manufacturing diversity,
favorable long-term growth prospects in certain end markets, and
opportunities to increase sales and earnings following several
recently completed capacity expansions.
With annual revenues of nearly US$1 billion, Charlotte, North
Carolina-based Polymer manufactures products that are used in a
wide range of disposable consumer applications, including baby
diapers, feminine hygiene products, household and consumer
wipes, disposable medical products, and various industrial
applications, including automotive, filtration, and protective
apparel. The company's nonwovens are used by leading global
manufacturers of consumer, medical, and industrial products.
Long-term industry growth rates are favorable and are driven by
new applications for nonwovens in developed countries and volume
increases in existing products as income levels increase in
developing countries.
However, recent weakness in auto and housing end markets, as
well as lower hygiene product sales in connection with retailer
destocking, have caused the company to fill capacity with lower-
margin products. Although the retail issue appears to be
temporary, auto and housing market weakness are likely to extend
into the foreseeable future.
* * *
Headquartered in Charlotte, North Carolina, Polymer Group, Inc.
-- http://www.polymergroupinc.com/-- is a global, technology-
driven developer, manufacturer and marketer of engineered
materials.
The company has manufacturing offices in Argentina, France, and
China among others.
PROTAN PLAZA: Members' Final Meeting Slated for December 28
-----------------------------------------------------------
The members of Protan Plaza Ltd will meet for their final
meeting on Dec. 28, 2006, at 10:00 a.m., to receive the
liquidator's account of the company's wind-up proceedings and
property disposal exercises.
As reported by the Troubled Company Reporter - Asia Pacific, the
company's creditors were required to submit their proofs of
claim on Nov. 13, 2006.
The Liquidators can be reached at:
Leung Moon Chuen
Wong Kai Wing
Room 1503 World Wide House
19 Des Voeux Road, Central
Hong Kong
SUN LUEN: Members Pass Resolution to Wind Up Firm
-------------------------------------------------
The members of Sun Luen Industries Ltd met on Nov. 15, 2006, and
passed a special resolution to voluntarily wind up the company's
operations.
Subsequently, Chan Chak Chung was appointed as liquidator.
The Liquidator can be reached at:
Chan Chak Chung
Room 1203-4, 12/F
ING Tower, 308-320 Des Voeux Road Central
Sheung Wan
Hong Kong
TAI SUN: Liquidator to Present Wind-Up Report on Dec. 1
-------------------------------------------------------
Tai Sun Plastic Novelties Ltd, which is in creditors' voluntary
liquidation, will hold meetings for its members and creditors on
Dec. 1, 2006, at 9:30 a.m.
During the meeting, Liquidator Lui Wan Ho will present an
account of the company's wind-up proceedings during the
preceding year.
The Liquidator can be reached at:
Lui Wan Ho
1701, Olympia Plaza
255 King's Road, North Point
Hong Kong
TREASURE RESTAURANT: To Pay Dividend on November 29
---------------------------------------------------
Treasure Restaurant Company Ltd will pay the second ordinary
dividend of 6.0% to its creditors on Nov. 29, 2006.
The payment will be administered at 29th Floor, Wing On Centre,
111 Connaught Road Central, Hong Kong.
As reported in the Troubled Company Reporter - Asia Pacific on
October 20, 2006, in accordance with the distribution of the
second ordinary dividend, Liquidator Kong Chi How, Johnson was
accepting proofs of debt from the creditors until October 27.
The Liquidator can be reached at:
Kong Chi How, Johnson
25/F, Wing On Centre
111 Connaught Road, Central
Hong Kong
* Government to Inject Capital to Weak Unlisted Banks
-----------------------------------------------------
China's central and local government will continue to aid its
weaker unlisted banks using a series of tools, including capital
injection to prepare them for initial public offerings, the Wall
Street Journal reports, citing a senior banking regulator, as
saying.
WSJ recounts that China has injected billions of dollars from
its foreign-exchange reserves to recapitalize four of its five
largest state banks ahead of massive IPOs.
The Agricultural Bank of China, the last of the five big state
banks, has yet to receive capital injection as it is still
formulating its restructuring plan, the paper relates.
"Capital injection for Agricultural Bank is still undecided,"
Tang Shuangning, vice chairman of the China Banking Regulatory
Commission, told the paper.
Meanwhile, CBRC has approved the creation of Jiangsu Bank, a new
regional bank in the eastern coastal province of Jiangsu, Mr.
Tang said.
Jiangsu Bank will be formed through the merger of 10 city
commercial banks in Jiangsu province with total assets of CNY139
billion, or nearly US$18 billion, WSJ notes citing a report from
Shanghai Securities News.
China has aimed to merge smaller city commercial banks and rural
credit cooperatives to strengthen their competitiveness and
improve regulatory oversight, WSJ says. The paper further
recounts that in 2005, China merged several local banks in Anhui
province to form Huishang Bank. Huishang is in the process of
introducing foreign and domestic strategic investors.
Mr. Tang disclosed that the banking regulator has approved nine
urban credit cooperatives to transform into city commercial
banks as they have strengthened their capital base, 79 are still
in various stages of restructuring, while 62 have been closed by
the regulator.
=========
I N D I A
=========
BPL LTD: Board to Meet on Nov. 23 to Consider Audited Financials
----------------------------------------------------------------
On a meeting on November 23, 2006, BPL Ltd's board of directors
agreed, inter alia, to:
-- lease the company's alkaline battery business facilities
for six months from a date to be agreed, subject to
necessary approvals, to a proposed 50:50 joint venture of
the company;
-- subsequently transfer the alkaline battery business to the
proposed joint venture, subject to the approval of the
members, lenders and regulatory authorities as may be
necessary; and
-- invest in the equity share capital of the JV.
BPL informs the Bombay Stock Exchange that the company will hold
an extra ordinary general meeting and seek approval of the
proposals through postal ballot. The company did not provide
the date of the meeting.
About BPL Limited
Headquartered in Bangalore, India, BPL Limited manufactures and
distributes consumer electronic products such as televisions,
video tape recorder, audio systems, emergency lanterns,
electrocardiographs and monitors. The Group also manufactures
home appliances like washing machines, refrigerators, vacuum
cleaners, microwave ovens, gas tables, soft energy and consumer
telecom products. Its plants are located at Kerala, Karnataka
and Uttar Pradesh. The Group operates only in India.
Last year, the Company obtained approval from the Kerala High
Court for its financial restructuring scheme and the launch of
the 50:50 joint venture with Sanyo for the CTV business. The
restructuring has allowed BPL to focus and strategize on its
core businesses like mobile phones, entertainment electronics,
medical electronics, engineering plastics and tooling for
automotive and consumer electronics industry. As a part of the
restructuring exercise, BPL had recently sold off its dry cell
business -- which operated through its subsidiary BPL Soft
Energy Systems -- in a INR67 crore deal including liabilities to
the Khaitans of Eveready Industries.
* * *
On January 5, 2006, CRISIL Ratings reaffirmed the 'D' and 'FD'
ratings on BPL Limited's non-convertible and fixed deposit
programmes. The ratings indicate that the company continues to
be in default on its rated debt.
These ratings are reaffirmed:
* INR600 Million Non-Convertible Debenture at D
* INR210 Million Non-Convertible Debenture at D
* INRFixed Deposit Programme at FD
CANARA BANK: US$250-Mil. Bond Offer Five Times Oversubscribed
-------------------------------------------------------------
Canara Bank has received US$1.3 billion worth of subscriptions
against its US$250 million offering to augment its upper tier-II
capital under the mid-term note program, the Business Standard
reports.
The bank intends to use the amount raised for its international
operations.
The offers show an extraordinary confidence of foreign investors
in the bonds issued by the bank for the first time in 100 years,
the bank's chairman and managing director, M B N Rao, told The
Hindu in an interview. It also reflected the interest
international investors have in India and Indian Institutions,
he added.
Without diluting existing equity, the bank was now in a position
to increase its capital base, Mr. Rao continued.
The joint lead managers and book runners for the offering were
ABN Amro, Citigroup, HSBC and UBS.
About Canara Bank
Headquartered in Bangalore, India, Canara Bank
-- http://www.canbankindia.com/-- provides services to a
diverse clientele group with a range of subsidiaries and
sponsored institutions. The bank services include networked
automated teller machines, anywhere banking, telebanking, remote
access terminals Internet, and mobile banking and debit card.
The bank's Merchant Banking Division handles assignments as
arrangers/lead manager/co-manager/manager to the
offer/advisor/share valuator. Bancassurance arm of the Bank has
tie up arrangements in both life and non-life insurance
segments. Corporate Cash Management Services network of the
Bank provides services related to local and upcountry cheque
collection, bulk cheques collection and zero balance account
facility. Executor, Trustee and Taxation Services of the bank
provides services, such as debenture trusteeship, will and
executorship, trusteeship, personal tax assistance and power of
attorney services. Its Agricultural Consultancy Services
handled 60 projects during the fiscal year ended March 31, 2006.
Fitch Ratings gave Canara Bank an individual rating of D on
June 1, 2005.
CENTURION BANK: Grants 1,14,78,793 Stock Options to Employees
-------------------------------------------------------------
Centurion Bank of Punjab Ltd informs the Bombay Stock Exchange
that the compensation committee of its board of directors
approved the grant of 1,14,78,793 stock options to the bank's
employees.
The board arrived at the decision at its meeting held on
November 18, 2006.
The options were granted at an exercise price of INR29.65 each
exercisable within a period of five years from the date of
vesting under the "Employee Stock Option Plan".
About Centurion Bank of Punjab
Headquartered in Goa, India, Centurion Bank of Punjab Limited --
http://www.centurionbop.co.in/-- is a private-sector bank. The
bank provides a range of transaction banking products under cash
management services to various customer segments, such as
corporates, small and medium enterprises, utility providers and
domestic correspondent banks. The bank has entered into an
enterprise partnership with Indecomm Global Services to form
Centillion Solutions and Services. Centillion will focus on
operations and services for banking and related financial
services. The Retail Asset servicing operations of the Bank are
being transitioned to Centillion. The bank has entered into an
arrangement with IL&FS Investsmart Limited for offering equity
broking services to its customers. The wholesale banking
business is divided into Corporate, SME and Financial
Institutions Group. NRI business has been a focus of the bank.
In Trade Finance business, the bank provides services, such as
export trade, import trade, remittance, domestic trade and
structured trade.
Fitch Ratings, on November 2, 2005, gave Centurion Bank of
Punjab a support rating of 5.
CITY UNION BANK: Net Profit for Sept. 2006 Quarter Up 31%
---------------------------------------------------------
City Union Bank Limited reported an all round growth in various
parameters resulting in higher top line and bottom line
improvements.
Net Profit [for the quarter ended September 30, 2006,] went up
by 31% as compared to the corresponding period of the previous
year. It increased from INR12.44 crore to INR16.32 crore.
The Gross Income of the bank rose from INR90.79 crore to
INR111.27 crore. The Operating Profit also increased by 22%
growing from INR29.22 crore to INR35.69 crore on account of
efficiency in operations. Net Interest Income rose by 33% and
the Net Interest Margin stood at 3.83% (annualized).
The cost of deposit was lower at 5.74% and the low cost of
deposits accounted for 27% of the accretion in deposits. The
bank's "STAR" deposit scheme "CUB 400" cornered INR415 crore
within a short span of 45 days, adding more than 20,000 new
CUBians.
With the implementation of Core Banking Solutions in 130
branches out of 157 computerized branches the bank has recorded
an impressive performance in enduring customer service through
technological advancement.
The Net Non Performing Advances were lower at 1.90% as compared
to 2.73% in previous year.
The net worth of the bank is at INR318 crore crossing the
milestone fixed by the Reserve Bank of India. The Capital
Adequacy ratio is comfortably placed at 12.69%. The bank
continues to focus on retail credit and targets 25,000 clients
during the current year.
Performance Highlights for the quarter ended Sept. 30, 2006:
QoQ% Growth
-----------
Advances 17%
Net Profit 31%
Shareholder's Funds 20%
Deposits 18%
Net Interest Income 33%
Non Interest Income 12%
Total Income 23%
Operating Expenses 35%
Operating Profit 22%
About City Union Bank
City Union Bank Limited -- http://cityunionbank.com/-- provides
savings accounts, current accounts, fixed deposits, cash
certificates, monthly savings, VIP deposit schemes, Flexifix
deposits, CUB Smart deposits and the insurance linked Multiple
Benefits Plan.
As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, Fitch Ratings affirmed City Union's Individual
and Support ratings at 'D/E' and '5', respectively.
CITY UNION BANK: To Consider Share Allotment on Nov. 30 Meeting
---------------------------------------------------------------
City Union Bank Ltd'S board of directors will hold a meeting on
November 30, 2006, to consider further issue of equity shares.
The proposed issuance will be by way of preferential allotment
subject to the applicable laws and regulation including Reserve
Bank of India and the Securities and Exchange Board of India
guidelines, the bank says.
About City Union Bank
City Union Bank Limited -- http://cityunionbank.com/-- provides
savings accounts, current accounts, fixed deposits, cash
certificates, monthly savings, VIP deposit schemes, Flexifix
deposits, CUB Smart deposits and the insurance linked Multiple
Benefits Plan.
As reported in the Troubled Company Reporter - Asia Pacific on
August 8, 2006, Fitch Ratings affirmed City Union's Individual
and Support ratings at 'D/E' and '5', respectively.
GENERAL MOTORS: Kirk Kerkorian Cuts GM Stake to 7.4%
---------------------------------------------------
Billionaire investor Kirk Kerkorian's Tracinda Corp. had sold
US$462 million of stock in General Motor Corp., cutting its
stake in the automaker to 7.4% from 9.9% of outstanding shares,
Kevin Krolicki of Reuters reports.
According to the source, Mr. Kerkorian dropped his plans to buy
more GM shares after Jerome York's resignation from GM board and
the closure of potential partnership deal between GM and the
Nissan Motor Co.-Renault SA alliance, which sent GM stock
dropping 5% on the New York Stock Exchange.
Carlos Ghosn heads both Nissan and Renault.
John D. Stoll and Stephen Wisnefski of the Wall Street Journal
reports that Mr. Kerkorian had been the driving force behind the
talks but failed to work it out because of a dispute over the
specific equity arrangement of a potential tie-up, which leads
to the resignation of his associate Mr. York from GM's board
after GM ended the deal.
The move to sell shares led many analysts to believe that Mr.
Kerkorian's plans include the possibility of Tracinda seeking a
proxy fight to place its members on GM's board of directors,
Wall Street relates.
Bloomberg states that Mr. Kerkorian offered to buy US$825
million in shares of Las Vegas-based, casino operator MGM
Mirage, the same day when the stake sale was announced.
Tracinda, GM's second largest shareholder, seeks to pay
US$55 a share to increase its stake in MGM to 61.7%.
In a filing with the Securities and Exchange Commission,
Tracinda agreed to sell 14 million shares in a private
transaction for US$33 each. The purchase is to be settled
tomorrow, Nov. 24, 2006.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, Mexico, and its vehicles are sold
in 200 countries.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 17, 2006, Standard & Poor's Ratings Services assigned its
'B+' bank loan rating to General Motors Corp.'s proposed US$1.5
billion senior term loan facility, expiring 2013, with a
recovery rating of '1'. The 'B+' rating was placed on
Creditwatch with negative implications, consistent with the
other issue ratings of GM, excluding recovery ratings.
According to TCR-AP on Nov. 16, 2006, Moody's Investors Service
assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion
secured term loan. The term loan is expected to be secured by a
first priority perfected security interest in all of the US
machinery and equipment, and special tools of GM and Saturn
Corporation.
OWENS CORNING: Can Enter Into Waiver Letter With JPMorgan
---------------------------------------------------------
The Honorable Judith Fitzgerald of the United States Bankruptcy
Court for the District of Delaware authorizes Owens Corning and
its debtor-affiliates to enter into a Waiver Letter with JP
Morgan Securities, Inc., and to pay associated fees pursuant to
the Equity Commitment Agreement.
As reported in the Troubled Company Reporter on Nov. 20, 2006,
the occurrence of the effective date of the Debtors' Sixth
Amended Plan of Reorganization is premised, among others, by the
consummation of transactions contemplated in the Debtors' equity
commitment agreement with J.P. Morgan Securities, Inc.
The Equity Commitment Agreement contemplates a US$2,187,000,000
rights offering, whereby certain holders of eligible Owens
Corning bond and other unsecured claims would be offered the
opportunity to subscribe for up to their pro rata share of
72,900,000 shares of Reorganized Owens Corning common stock at
US$30 per share. JPMorgan will purchase the unsold shares.
The Rights Offering has since been fully consummated, and about
2,900,000 shares of Reorganized Owens Corning stock were
purchased.
The Equity Commitment Agreement requires as a condition
precedent to JPMorgan's funding obligation that the order
confirming the Sixth Amended Plan will have become final.
JPMorgan may terminate the Agreement on or after Oct. 31, 2006,
unless the Debtors, among other things, pay a US$30,000,000
extension fee to extend the commitment until December 15.
Norman L. Pernick, Esq., at Saul Ewing LLP, in Wilmington,
Delaware, relates that the Debtors and the other Plan Proponents
intend to close the Equity Commitment Agreement and pursue the
effective date of the Plan by Oct. 31, 2006, so the Debtors will
be able to make on that date or as soon thereafter as
practicable, all payments or other distributions contemplated in
the Plan.
To avoid any potential termination of the Equity Commitment
Agreement, the Debtors would potentially have little choice but
to pay JPMorgan the extension fee, Mr. Pernick notes.
The Debtors, after consulting their co-Proponents and other key
constituents, entered into a waiver letter with JPMorgan,
pursuant to which the Investor will waive the funding
requirement that the Confirmation Order become final. In
exchange, the Debtors will pay JPMorgan US$15,000,000.
The Waiver Fee will be considered a partial prepayment of, and
credited in full against the payment of, the Extension Fee in
the event the Debtors seek an extension of the commitment, Mr.
Pernick says. Mr. Pernick notes that if the Debtors emerge from
bankruptcy on October 31, their estates will save a substantial
sum by avoiding the need to pay the entire extension fee.
Mr. Pernick adds that the Waiver Letter has the support of
various other key constituents, including the Asbestos Claimants
Committee, the Future Claims Representative, and the Ad Hoc
Bondholders' Committee.
About Owens Corning
Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the company has locations in
India, Mexico and Belgium.
Headquartered in Toledo, Ohio, the company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, represents the Official Committee of Asbestos
Creditors. James J. McMonagle serves as the Legal
Representative for Future Claimants and is represented by Edmund
M. Emrich, Esq., at Kaye Scholer LLP. (Owens Corning Bankruptcy
News, Issue No. 146; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The company's long-term issuer default, senior unsecured debt
and preferred stock carries Fitch's D rating.
OWENS CORNING: Wants US$2,000,000 Louisiana Accord Approved
-----------------------------------------------------------
Owens Corning and its debtors-affiliates ask the Honorable
Judith Fitzgerald of the United States Bankruptcy Court for the
District of Delaware to approve their settlement agreement with
the state of Louisiana.
The Settlement Agreement relates to Louisiana's Claim No. 7827,
which was asserted against Owens Corning in April 2002 on
account of certain alleged asbestos-related property damage,
Kathleen P. Makowski, Esq., at Saul Ewing LLP, in Wilmington,
Delaware, notes.
The Settlement Agreement, if approved by the Court, will result
in a substantial reduction of the claim amount from
approximately US$582,000,000 to US$2,000,000, Ms. Makowski tells
the Court.
Pursuant to Court Management Procedures for Asbestos PD Claims,
Louisiana provided documentation in 2003 to support Claim No.
7827, and projected that the claim amount should be
approximately US$68,000,000.
In 2005, the Debtors objected to Louisiana's Claim.
After several months of negotiation, the Debtors and Louisiana
agreed to resolve the Claim.
The Debtors agree to the allowance of Louisiana's Claim as a
general unsecured non-priority claim solely against Owens
Corning for US$2,000,000. As a precondition to receiving
payment on its Claim, Louisiana will release Owens Corning from
any liability for asbestos-related property damage.
About Owens Corning
Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the company has locations in
India, Mexico and Belgium.
Headquartered in Toledo, Ohio, the company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, represents the Official Committee of Asbestos
Creditors. James J. McMonagle serves as the Legal
Representative for Future Claimants and is represented by Edmund
M. Emrich, Esq., at Kaye Scholer LLP. (Owens Corning Bankruptcy
News, Issue No. 146; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The company's long-term issuer default, senior unsecured debt
and preferred stock carries Fitch's D rating.
=================
I N D O N E S I A
=================
ANEKA TEMBANG: Reports Strong Finances for 9-Month Period
---------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that PT Aneka Tambang Tbk reported a net profit of
IDR808.84 billion for the nine-month period ended September 30,
2006.
According to a more detailed disclosure, Aneka Tambang's
IDR808.84-billion net income for the 2006 nine-month period is
higher compared with the IDR711.09-billion net income for same
period in 2005.
As of September 30, 2006, Aneka Tembang's balance sheet showed
IDR2.63 trillion in total current assets available to pay
IDR695.87 billion in total current liabilities coming due within
12 months.
Also Aneka Tembang's balance sheet also showed total assets of
IDR6.68 trillion and total liabilities of IDR3.14 trillion,
resulting to a total stockholders' equity of IDR3.537 billion.
The company's financial report for the nine-months ended
Sept. 30, 2006, is available for free at:
http://bankrupt.com/misc/ANTAM_Sept2006.pdf
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and West
Java (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
As the Troubled Company Reporter - Asia Pacific reported on
December 19, 2005, Moody's Investors Service changed the outlook
for Aneka Tambang's local currency B1 corporate family rating to
positive from stable. The B2 foreign currency bond rating
remains unchanged with a positive outlook, which is in line with
the positive outlook for Indonesia's sovereign rating.
Standard & Poor's Ratings Services gave Aneka Tambang 'B' long-
term local and foreign issuer credit ratings, effective Aug. 26,
2003.
ARPENI PRATAMA: Posts IDR126-Bil Net Income for 2006 9-Month Pd.
----------------------------------------------------------------
The PT Arpeni Pratama Ocean Line Tbk disclosed financial results
for the nine months ended September 30, 2006.
For the 2006 nine-month period, the company reported net income
of IDR126.11 billion, compared with the IDR138.47-billion net
income reported for the nine-month period ended September 30,
2005.
As of September 30, 2006, Arpeni Pratama's balance sheet showed
IDR1.13 trillion in total current assets available to pay
IDR464.66 billion in total current liabilities coming due within
12 months.
The company's balance sheet as of Sept. 30, 2006, also showed
total assets of IDR3.51 trillion and total liabilities of
IDR230.03 billion, resulting to a total stockholders' equity of
IDR1.21 trillion.
Arpeni Pratama's financial report, in Indonesian, for the nine-
month period ended Sept. 30, 2006, is available for free at:
http://bankrupt.com/misc/Arpeni_Pratama_Sept_2006.pdf
PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is
a marine shipping company. The company's activities include
bulk and liquid transportation services. Arpeni operates a
fleet of general purpose specialist, such as their tweendecker
MV Alas which is designed to transport dry cargoes such as
plywood and agricultural products.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
May 2, 2006, Fitch Ratings has assigned a final rating of "BB-"
to the US$160 million guaranteed notes due 2013 issued by Arpeni
Pratama Ocean Line Investment B.V. and guaranteed by PT Arpeni
Pratama Ocean Line Tbk -- Arpeni, rated Long-term Foreign and
Local Currency Issuer Default 'BB-'/Stable -- and its
subsidiaries.
This follows the completion of the notes issue and receipt of
documents conforming to information already received. The notes
are secured by first priority pledges of capital stock of
Arpeni's equity interest in most of its subsidiaries. The
ratings are not constrained by the "BB-" Country Ceiling of the
Republic of Indonesia.
According to another TCR-AP report on April 24, 2006, Standard &
Poor's Ratings Services has assigned its B+ corporate credit
rating to PT Arpeni. The outlook is stable. At the same time,
Standard & Poor's assigned its 'B+' rating to the proposed
US$160 million seven-year senior unsecured notes to be issued by
the company.
The company intends to use a part of the net proceeds -- about
US$93 million -- for refinancing existing debt, and the balance
for capital expenditure and vessel financing.
BANK INDONESIA: Predicts Current Account Surplus To Drop In 2007
----------------------------------------------------------------
Bank Sentral Republik Indonesia has predicted that the current
account surplus in 2007 will amount to US$6-US$7 billion, a
decline compared with this year's, Antara News reports.
The report cites the central bank's deputy governor, Hartadi
Sarwono, as saying that the current account surplus for 2006 has
already reached US$8 billion. He sees the figure declining in
2007, although he clarified that "it does not mean an adverse
development."
Mr. Sarwono explained that the current account surplus next year
would decline because of increasing exports of raw materials and
capital goods, which were needed for investment and economic
purposes, Antara notes.
The report adds that, according to Mr. Sarwono, although the
current account surplus would drop next year, Indonesia's
foreign exchange reserve might reach US$47 billion.
Mr. Sarwono also said that this was quite possible because
capital account would rise in line with the increasing exports
and foreign capital inflows, Antara says.
The report points out that Mr. Sarwono said their expectations
on foreign exchange reserve reaching US$45 billion to
US$47 billion in 2007 would be fulfilled, adding that at
present, Indonesia's foreign exchange reserve amounted to
US$41 billion.
Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- as an
was created by a new Central Bank Act, the UU No. 23/1999 on
Bank Indonesia, enacted on May 17, 1999. The Act confers it the
status and position as an independent state institution and
freedom from interference by the Government or any other
external parties.
In its capacity as central bank, Bank Indonesia has one single
objective of achieving and maintaining stability of the rupiah
value. The stability of the value of the rupiah comprises two
aspects, one is stability of rupiah value against goods and
services and the other is the stability of the exchange rate of
the rupiah against other currencies. The first aspect is as
reflected by the rate of inflation and the second aspect is as
reflected by the development of Rupiah exchange rate against
other currencies.
Standard and Poors Rating Services gave Bank Indonesia's long-
term foreign issuer credit a B+ rating and long-term local
issuer credit a BB rating, both effective on December 21, 2004.
It also gave its short-term local issuer credit a B rating on
May 12, 2003.
FREEPORT-MCMORAN: Purchase Plan Prompts DBRS to Review Ratings
--------------------------------------------------------------
Dominion Bond Rating Service placed the rating of Freeport-
McMoRan Copper & Gold Inc.'s Senior Notes at BB (low) Under
Review with Developing Implications following Freeport's
announced offer to acquire all of Phelps Dodge Corporation's
common equity in a cash and stock takeover bid of
US$25.9 billion. The transaction is expected to close in the
first quarter of 2007, subject to shareholder and regulatory
approvals.
The rating action recognizes the strengthened business profile
as a result of the proposed acquisition but also incorporates
the uncertainty regarding the rate at which the company would be
able to pay down the approximately US$16 billion in new debt to
fund the cash portion of the acquisition.
DBRS notes that the acquisition would strengthen the business
profile of the company as the combined company would benefit
from additional operating assets, geographic diversification,
scale, development potential and a reduction in its political
risk profile. Stand-alone Freeport is currently a one mine
company. With the acquisition of Phelps, New Freeport would
operate 11 mines -- thus reducing mine operational risk
substantially. New Freeport would have operating mines in four
countries and a large development project in the Congo.
Pro forma 2006 production by geography would be 42% in the
United States, 35% in Indonesia, 19% in Chile and 4% in Peru.
With approximately 1.6 million tonnes of copper production for
2006, New Freeport would become the second-largest copper
producer in the world -- behind state-owned Corporacion Nacional
del Cobre de Chile. Phelps' Tenke Fungurume development project
is believed to be the largest undeveloped, high-grade
copper/cobalt project in the world today. The political risk
profile of New Freeport would be reduced as production from
Indonesia would be reduced from 100% for stand-alone Freeport to
less than 40% for the combined companies.
However, DBRS also notes that the acquisition would weaken the
financial profile of the company as its leverage would increase
substantially. Pro forma total debt for the combined companies
would be approximately US$18 billion, at Sept. 30, 2006. New
Freeport's pro forma per cent gross debt-to-capital would be
approximately 64%, up from 33% for stand-alone Freeport at
September 30, 2006. New Freeport's pro forma cash flow-to-total
debt for the 12 months ended September 30, 2006, would be
approximately 0.3x, down from 1.4x for stand-alone Freeport.
The company has indicated that it would use free cash flow in
the next few years to pay down debt but it is uncertain how
quickly the company could do so.
Furthermore, the company plans to raise secured debt to complete
the acquisition. DBRS understands that the majority of the
permanent non-bridge bank debt at Freeport will be secured.
Additionally, the existing notes and bonds at both Freeport and
Phelps will likely be secured. DBRS awaits the company's
decision regarding the collateral for the different categories
of debt. Any unsecured debt will be rated at least one notch
below the secured debt to reflect structural subordination.
DBRS notes that New Freeport would become the largest mining
company in North America by market capitalization. However,
DBRS notes that competing offers for either Phelps or Freeport
are possible.
Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper
& Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries,
engages in the exploration, mining, and production of copper,
gold, and silver. The company has operations in Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 24, 2006, that Standard & Poor's placed its 'BB-'
corporate credit and its other ratings on Freeport-McMoRan on
CreditWatch with positive implications and its 'BBB' corporate
credit and its other ratings on Phelps Dodge Corp. on
CreditWatch with negative implications. The actions followed
the report that Freeport entered into an agreement with Phelps
Dodge to acquire Phelps in a transaction valued at
US$25.9 billion.
The TCR-AP stated on Oct. 18, 2006, Moody's Investors Service
confirmed Freeport-McMoran's Ba3 Corporate Family Rating in
connection with the rating agency's implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.
Dominion Bond Rating Service confirmed in April the rating of
Freeport-McMoRan Copper & Gold Inc. at BB (low). DBRS said the
trend is Stable.
NORTEL NETWORKS: To Trim R&D to 15% of Revenue
----------------------------------------------
Nortel Networks Corporation has revealed plans to reduce
spending on materials and research and development, the Ottawa
Business Journal relates.
The report notes that Nortel Chief Executive Officer Mike
Zafirovsky told the Wall Street Journal that the company expects
to save about US$1.5 billion a year by 2008 with the measures,
which will reduce R&D spending to around 15% of revenue from
18%, and cut administrative costs in half.
According to the report, Nortel Networks forecast that it would
post sales growth of at least 7% in 2007 and raise gross profit
as a percentage of revenue to 43% from 38% in the long run.
Ottawa Journal discloses that Nortel Network's revenue has risen
approximately 7.5% to US$8.1 billion this year.
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). All trends are Stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes. The outlook is stable.
PHILLIPS-VAN HEUSEN: Earns US$50.8 Million in Third Quarter 2006
----------------------------------------------------------------
Phillips-Van Heusen Corporation reported third quarter 2006 GAAP
net income of US$50.8 million, compared with third quarter 2005
GAAP net income of US$40.3 million. For the nine months, GAAP
net income was US$128.5 million in 2006 compared with
US$88.8 million in 2005.
The company reported that in the Calvin Klein licensing
business, operating earnings increased 31% and operating margins
were up almost 700 basis points. The company's wholesale and
retail businesses grew operating earnings a combined 17% on 6%
sales growth, as strong product drove gross margin improvements
in the quarter.
Total revenues in the third quarter of 2006 increased 7% to
$568.3 million from US$533.2 million in the prior year. Revenue
growth was driven by an 11% increase in Calvin Klein royalties
due to continued growth from existing and new licensees. The
comp store sales grew 11%. In addition, revenues benefited from
the growth across all of the company's wholesale sportswear
businesses, but were partially offset by an anticipated sales
decrease in the company's wholesale dress shirt business
reflecting the residual impact of the Federated/May door
closings for the year.
For the nine months, total revenues increased 6% to US$1.5
billion in 2006 from US$1.4 billion in 2005.
The company ended the quarter with US$358.6 million in cash, an
increase of US$188.3 million compared with the prior year's
third quarter. Receivables ended the quarter 11% below prior
year levels. Inventories ended the quarter 7% up from last year
and in line with the company's sales growth projections for the
fourth quarter. The company's higher year over year cash
position, coupled with higher investment rates of return,
resulted in a 46% decrease in net interest expense for the third
quarter.
Commenting on the results, Emanuel Chirico, chief executive
officer, noted, "We are extremely pleased with our third quarter
results, which continue the positive trends we experienced in
the first half of this year. The strength of the Calvin Klein
brand and the execution of our business model for that brand
continue to be key drivers in our earnings growth. The
performance of Calvin Klein, along with the growth exhibited by
our outlet retail and wholesale sportswear businesses, enabled
us to again exceed our previous guidance."
Mr. Chirico continued, "During the third quarter, we announced
our agreement to acquire Superba Inc., a neckwear company with
estimated 2006 revenues of US$140 million. The deal is expected
to be effective Jan. 1, 2007, and will be modestly accretive to
2007 earnings. This acquisition is consistent with our strategy
of adding brands or product categories that are synergistic and
complement our existing businesses, in this case, dress shirts."
Mr. Chirico concluded, "Our brands continue to perform extremely
well across all channels of distribution, enabling us to
intensify the investments we are making in marketing our brands.
During this upcoming holiday season, we are planning a
US$20 million increase in national advertising spending to
support our Calvin Klein, Van Heusen, IZOD, and Arrow brands.
We believe that in the context of the changing retail landscape
it is critical to take our message directly to consumers. We
feel that this continued commitment to the long-term strength of
our brands will pay dividends in the future."
2006 Revenues Guidance
The company projects fourth quarter 2006 revenues to be in a
range of US$528 million to US$532 million, which represents an
increase of 15% to 16% over last year. Total revenues for the
full year 2006 are expected to be US$2.06 billion to
US$2.07 billion, which represents an increase of 8% over last
year.
The company's 2006 revenues and earnings guidance does not
reflect the impact of the pending acquisition of Superba Inc.,
which will not be expected to have a material effect on 2006
revenues and earnings.
Phillips-Van Heusen Corporation -- http://www.pvh.com/-- owns
and markets the Calvin Klein brand worldwide. It is a shirt
company that markets a variety of goods under its own brands:
Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co.,
Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole,
BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael
Kors, Chaps and Donald J. Trump Signature.
It has operations in Asia-Pacific, including Indonesia, China,
Philippines, Malaysia, and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 11, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. Canadian
Retail sector, the rating agency confirmed its Ba3 Corporate
Family Rating for Phillips Van Heusen Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$100 million senior
secured notes Ba3 Ba1 LGD2 20%
Various senior
unsecured notes B1 B1 LGD5 73%
TELKOM INDONESIA: Loses IDR2.5BB After Gas Explosion & Mud Flow
---------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk's East Java division suffered a
financial loss of around IDR2.5 billion due to the incessant
mudflow and recent gas pipe explosion in Porong, Sidoarjo,
Antara News reports, citing a spokesman for the company.
The report cites the executive general manager of Telkom
Indonesia's East Java division, Husni Thamrin, as saying that
the company suffered not only material losses due to
infrastructure damage but also opportunity losses due to the
cessation of telephone services to customers.
Antara notes that the mudflow and the recent explosion of a PT
Pertamina gas pipe had cut 1,500 telephone connections and
damaged a number of telephone infrastructure networks.
As reported by the Troubled Company Reporter - Asia Pacific on
November 24, 2006, the explosion occurred at around 7:30 p.m. on
November 22 in part of the state-owned Pertamina East Java Gas
Pipeline near the city of Surabaya.
According to Antara, recent figures indicate that the blast
killed a total of 11 people and caused two others to go missing.
Antara points out that among the damaged infrastructure networks
were six wire houses, five kilometer of underground wires, 42
distribution points, 2.5 km of fiber optic wire and 41 telephone
poles.
The report adds that Telkom Indonesia had also provided
financial assistance to victims of the recent gas pipe explosion
and organize training courses on hand phone servicing for people
who had lost their jobs due to the mud flow disaster.
Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com
-- provides local and long-distance telephone service in
Indonesia. Known as Telkom, the company also offers fixed-
wireless service, leased lines, and data transport through
affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service gave Telekomunikasi
Indonesia a Ba1 local currency corporate family rating.
Standard & Poor's Ratings Services gave the company foreign and
local currency corporate credit ratings of BB+.
Fitch Ratings has assigned Telkom Indonesia Long-term foreign
and local currency Issuer Default Ratings of 'BB-'.
=========
J A P A N
=========
ADVANCED MEDICAL OPTICS: Sees US$45MM Revenue Cut From Recall
-------------------------------------------------------------
Advanced Medical Optics Inc. anticipates a financial impact
associated with its voluntarily recall of certain eye care
product lots and the related manufacturing capacity constraints
caused by a production-line issue at its manufacturing plant in
China.
Advanced Medical expects the recall to reduce revenue for the
remainder of 2006 and 2007 by a total of US$40 million to
US$45 million. This is due to expected product returns, supply
shortages and temporary lost market share, primarily in Japan
and Asia Pacific where the vast majority of products produced at
the China facility are shipped. As a result, Advanced Medical
now expects its 2006 revenue to be between US$985 million and
US$1 billion, compared to prior guidance of US$1,010 million to
US$1,020 million. For 2007, the company now expects revenue to
be in the range of US$1,060 million and US$1,080 million,
compared to prior guidance in the range of US$1,080 million and
US$1,100 million.
Advanced Medical expects to incur charges and costs to complete
the recall, remedy the manufacturing issue and restore market
share. For the remainder of 2006 and 2007, the company expects
these charges and costs to total approximately US$35 million to
US$40 million, which primarily includes inventory writedowns,
recall costs, plant costs, freight and logistics costs, as well
as anticipated increased marketing expenses.
As a result of the change in anticipated revenue and the
associated reduction in margin, coupled with recall-related
spending for the balance of 2006 and the increased effective tax
rate due to reduction of earnings outside the U.S., AMO now
expects 2006 adjusted EPS to be between US$1.30 and US$1.40,
compared to previous guidance of US$1.85 to US$1.90. For 2007,
the company now expects adjusted EPS to be between US$1.85 and
US$2.00, compared to prior guidance in the range of US$2.25 to
US$2.35. These actions will affect other financial metrics such
as adjusted gross margin and adjusted operating margin for 2006
and 2007. AMO will provide updated guidance on these measures
in future communications.
The company commenced the voluntary recall because of a
production-line issue at its manufacturing plant in China, which
could affect the sterility of the product. Of the 2.9 million
units being recalled, only 183,000 units were shipped to the
U.S. and the remainder was shipped to Asia Pacific and Japan.
"This is a production-line issue and is not related to our
formulations, which have been used safely by contact lens
wearers for years," said Jim Mazzo, AMO chairman, president and
chief executive officer. "While we believe the likelihood of
patients experiencing an adverse reaction is low based on our
investigation to date, we are implementing this voluntary recall
as a precautionary measure. While this issue is limited to two
of the four production lines in the China facility, we have
temporarily ceased all manufacturing there to clean and sanitize
the plant. We want to be abundantly certain that eye care
practitioners and their patients know they can continue to rely
on and trust AMO for products that meet high quality standards.
We are working aggressively to replace recalled product and
minimize the inconvenience this action may cause."
AMO plans to extend the time period of the temporary plant
closure in order to move forward a previously disclosed plan to
expand manufacturing capacity at the China facility. These
plans include adding new filling lines and increasing packaging
capacity. The company expects production at the China facility
to be suspended for approximately 10 to 12 weeks. Operations at
the company's eye care facility in Alcobendas, Spain are
unaffected by this action and production continues
uninterrupted. None of the recalled products were manufactured
at the Spain facility, which is the primarily supplier for the
U.S. and European markets.
For the first nine months of 2006, AMO's eye care sales were
US$208.6 million and represented approximately 28 percent of
total sales. The company's largest eye care markets are the
Americas and Europe, which represented 34% and 28% of total eye
care sales, respectively, for the first nine months of 2006.
For this same period, Japan and Asia Pacific eye care sales were
24 percent and 14 percent of total eye care sales.
About Advanced Medical Optics
Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- develops, manufactures and markets
ophthalmic surgical and contact lens care products. Sales for
the 12 months ended June 24, 2005 were approximately
US$921 million.
The company has operations in Japan, Germany and Ireland.
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its B1 Corporate
Family Rating for Advanced Medical Optics Inc. Additionally,
Moody's revised its probability-of-default ratings and assigned
loss-given-default ratings on these loans and bond debt
obligations:
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior secured
revolving credit
facility B1 Ba1 LGD1 7%
2.5% convertible
senior subordinated
notes B3 B2 LGD4 66%
ALIXPARTNERS LLP: Marks 25 Years; To Open Office in India
---------------------------------------------------------
AlixPartners LLP plans to open an office in India sometime in
2007. The firm presently has 12 offices around the world,
including six in the United States, five in Europe and one in
Japan. Two senior AlixPartners executives will be there next
week at the India Economic Summit 2006, and will be available to
discuss "lessons learned" from the firm's 25 years of helping
companies perform complex financial restructuring and large-
scale operational improvements, including for financial
institutions and private equity funds.
The AlixPartners executives attending the conference, which
takes place Nov. 26 to 28 and is jointly hosted by the World
Economic Forum and the Confederation of Indian Industry, are:
Managing Director C.V. Ramachandran and India Initiative
Director Sanjay Shetty, both from AlixPartners' headquarters
office in Detroit.
"When many people think of India today, the first adjective they
think of is 'booming,'" said Ramachandran. "And, of course, to
a large degree that's true. However, along with rapid growth
and expansion comes an increased amount of risk -- both
financial and operating -- as well as a more complex web of
stakeholders. As a result, restructuring in India is
inevitable."
In the U.S. over the past quarter century and, more recently, in
Europe, a similar situation of increased risk has translated
into a large number of corporate restructurings, Ramachandran
went on to note. "Since 1981, the year AlixPartners literally
helped establish the turnaround industry," he said, "we've
worked to streamline the restructuring process, to bring more
transparency to it and, in general, to help institutions bring,
as we put it, 'the greatest good to the greatest number.' The
result has been stronger companies and institutions, and saved
jobs. In other words, a strong social benefit."
Another lesson from AlixPartners' background that Ramachandran
and Shetty will be discussing next week is how Indian firms can
maximize the value of mergers and acquisitions, a topic of great
interest on the subcontinent, given such recent announcements as
Tata Steel Ltd.'s attempt to acquire Anglo-Dutch steelmaker
Corus Group PLC. "With global private equity firms such as
Blackstone, Warburg Pincus and Henderson Private Capital now
making India one of their highest priorities, we think they'll
be quite interested in the time-tested experience a firm like
AlixPartners can bring to the party," continued Ramachandran.
"One thing we learned long ago at AlixPartners," said Shetty,
"is the reason so many mergers fail to deliver their intended
financial results is that there's not enough true, experienced
focus on the operations that will actually deliver the
financials."
Finally, Ramachandran and Shetty will also be discussing what
they call the "India Opportunity," the continuing, but also
fast-changing, opportunity for foreign-based firms to maximize
India as a low-cost platform not just for services but for
manufactured products as well.
About AlixPartners LLP
AlixPartners LLP -- http://www.alixpartners.com/-- provides
business consulting and advisory firm services in five areas:
consulting services financial advisory; performance improvement;
turnaround and restructuring; case management; and information
technology.
The firm has more than 500 employees, with offices in Tokyo,
Chicago, Dallas, Detroit, Duesseldorf, London, Los Angeles,
Milan, Munich, New York, Paris and San Francisco.
* * *
As reported in TCR-AP on Sept. 19, Standard & Poor's Ratings
Services assigned its 'BB-' corporate credit rating and stable
outlook to Southfield, Michigan-based business consulting firm
AlixPartners LLP.
At the same time, S&P assigned its 'BB-' bank loan rating and
recovery rating of '3' to AlixPartners' US$435 million senior
secured credit facility, indicating an expectation of meaningful
(50%-80%) recovery of principal in the event of a payment
default. The credit facility consists of a US$50 million
revolving credit facility due 2012 and a US$385 million term
loan B due 2013.
Moody's Investors Service assigns a B1 first time rating to
AlixPartners LLP proposed US$435 million senior secured credit
facility -- US$385 million term loan and US$50 million revolver
-- and a B1 corporate family rating. The ratings for the
secured credit facility reflect both the overall probability of
default of the company, to which Moody's assigns a PDR of B2,
and a loss given default of LGD 3 for the credit facility. The
rating outlook is stable.
NOMURA HOME: DBRS Rates US$6.4-Million Class N3 Certs. at BB
------------------------------------------------------------
Dominion Bond Rating Service assigned these ratings to the Net
Interest Margin Notes, Series 2006-FM2 issued by Nomura Home
Equity Loan NIM 2006-FM2.
-- US$29.6 million Class N1 rated at A (low)
-- US$9.7 million Class N2 rated at BBB (low)
-- US$6.4 million Class N3 rated at BB
The NIM Notes are backed by a 100% interest in the Class X and
Class P Certificates issued by Nomura Home Equity Loan, Inc.,
Home Equity Loan Trust, Series 2006-FM2. The Class X
Certificates will be entitled to all excess cash flows of the
respective loan groups in the underlying trust, and the Class P
Certificates will be entitled to all prepayment premiums or
charges received in respect of the mortgage loans. The NIM
Notes will also be entitled to the benefits of a NIM Cap
Agreement with HSBC Bank USA, NA.
The Trust will receive funds should LIBOR exceeds 5.32% per
annum subject to a ceiling of 9.50% per annum. In addition, the
NIM Notes will benefit from an underlying swap agreement, an
underlying interest rate cap agreement and an underlying basis
risk cap agreement with HSBC Bank USA, NA.
Payments on the NIM Notes will be made on the 25th of each month
commencing in November 2006. The interest payment amount will
be distributed to the Noteholders, followed by the principal
payment amount to the Noteholders until the principal balance of
the NIM Notes is reduced to zero. Any remaining amounts may be
paid to holders of preference shares, which are not rated by
DBRS.
SAMSONITE CORP: Planned US$175MM Dividend Cues S&P's Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Samsonite Corp. to negative from stable.
At the same time, it affirmed ratings on the company, including
the 'BB-' corporate credit rating. The company had
approximately US$306.8 million of total debt outstanding as of
July 31, 2006.
The revised outlook follows the company's report that it plans
to issue a US$175 million special dividend to the company's
shareholders.
"We believe the special dividend reflects a more aggressive
financial policy and will result in higher pro forma debt
leverage," said Standard & Poor's credit analyst Mark Salierno.
As part of the transaction, Samsonite will refinance its
outstanding public debt. The company plans to enter into a new,
US$530 million senior secured credit facility, consisting of an
US$80 million revolving credit facility and a US$450 million
term loan. Proceeds of these facilities will be used to pay the
special dividend, and to fund the company's offer to repay the
remainder of its EUR100 million floating-rate notes due 2010 and
US$165 million on its outstanding senior subordinated notes due
2011.
Standard & Poor's expect these transactions to close by the end
of December 2006. As a result of the refinancing and the
incremental debt added to the company's balance sheet, Standard
& Poor's expect pro forma lease- and pension-adjusted debt
leverage to increase to slightly more than 4x from about 3.2x as
of July 31, 2006.
The ratings on Samsonite reflect its aggressively leveraged
financial profile, narrow business focus, and exposure to the
travel-and-tourism industry. These factors are somewhat offset
by the company's strong market position as a leading global
manufacturer and distributor of luggage, casual bags, business
cases, and other travel-related products.
Samsonite Corporation -- http://www.samsonite.com/--
manufactures, markets and distributes luggage and travel-related
products. The company's owned and licensed brands, including
Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,
Lacoste and Timberland, are sold globally through external
retailers and 284 company-owned stores. Executive offices are
located in London. The company has global locations in Aruba,
Australia, Costa Rica, Indonesia, India, Japan, and the United
States among others.
SAMSONITE CORP: Offers Senior Notes & Declares Special Dividend
---------------------------------------------------------------
Samsonite Corp. is commencing offers to purchase for cash any
and all of its outstanding 8-7/8% Senior Subordinated Notes due
2011 and Floating Rate Senior Notes due 2010.
The current aggregate outstanding principal amount of Senior
Subordinated Notes is US$164,970,000, and the current aggregate
outstanding principal amount of Floating Rate Notes is
EUR100,000,000.
In connection with the offers to purchase, the Company is
soliciting consents to certain proposed amendments to the Notes
and the indentures governing the Notes, which will eliminate
substantially all of the restrictive covenants and certain
provisions relating to events of default and amend certain other
related provisions. Holders may not tender their Notes without
also delivering consents or deliver consents without also
tendering their Notes.
Each offer to purchase will expire at 9:00 a.m., New York City
time, on Dec. 20, 2006, unless extended or earlier terminated.
The consent solicitations will expire at 9:00 a.m., New York
City time, on Dec. 6, 2006, unless extended.
The "Total Consideration" shall be:
(i) US$1,088.75 for each $1,000 principal amount of
Senior Subordinated Notes tendered on or prior to
the Consent Date, and not validly withdrawn prior
to execution of the applicable supplemental
indenture, plus accrued and unpaid interest on
such principal amount of Senior Subordinated Notes
to, but not including, the Initial Payment Date, and
(ii) EUR1,020 for each EUR1,000 principal amount of
Floating Rate Notes tendered on or prior to the
Consent Date, and not validly withdrawn prior
to execution of the applicable supplemental
indenture, plus accrued and unpaid interest on
such principal amount of Floating Rate Notes to, but
not including, the Initial Payment Date. The
Total Consideration includes the Consent Payment.
The "Tender Offer Consideration" is equal to the
Total Consideration minus the applicable
Consent Payment.
If the requisite number of consents required to amend the
applicable indenture is received and the applicable offer to
purchase is consummated, the Company will make consent payments
of:
(i) in the case of Senior Subordinated Notes, US$20 per
US$1,000 principal amount of Senior Subordinated Notes
for which consents have been validly delivered and not
revoked on or prior to the Consent Date for such Notes,
and
(ii) in the case of Floating Rate Notes, EUR20 per
EUR1,000 principal amount of Floating Rate Notes
for which consents have been validly delivered and
not revoked on or prior to the Consent Date for
such Notes.
If the Notes are accepted for payment pursuant to the offers,
holders who validly tender (and do not validly withdraw) their
Notes pursuant to the offers on or prior to the applicable
Consent Date will receive the applicable Total Consideration on
the applicable Initial Payment Date. Holders that validly
tender their Notes after the applicable Consent Date, but on or
prior to the applicable Expiration Date, will receive the
applicable Tender Offer Consideration only but not the
applicable Consent Payment on the applicable Subsequent Payment
Date. No tenders will be valid if submitted after the
Expiration Date.
The "Initial Payment Date" is expected to be on or promptly
following the Initial Acceptance Date. The "Initial Acceptance
Date," is expected to be the date that all conditions to the
respective offer have been satisfied. The "Subsequent Payment
Date" is expected to be on or promptly following the Subsequent
Acceptance Date. The "Subsequent Acceptance Date" is expected
to be the first business day on which any Notes are validly
tendered and not withdrawn after 9:00 a.m., New York City time,
on the Consent Date but on or prior to the Expiration Date. The
Initial Acceptance Date and the Subsequent Acceptance Date may,
if the conditions to the respective offer have not been
satisfied prior thereto, be the same date.
The terms of the offers to purchase and consent solicitations,
including the conditions to the Company's obligations to accept
the Notes tendered and consents delivered and pay the applicable
Tender Offer Consideration and Consent Payment, are set forth in
the Company's Offers to Purchase and Consent Solicitation
Statement, dated Nov. 21, 2006.
One of the conditions to completing the offers is that the
Company has available funds sufficient to pay the total
consideration with respect to all notes (regardless of the
amount of notes tendered) from:
(i) borrowings under a new credit facility on terms
and conditions acceptable to Samsonite, in its
sole discretion, on or prior to the Initial
Acceptance Date and
(ii) cash on hand.
The Company may amend, extend or terminate the offers to
purchase and consent solicitations at any time in its sole
discretion without making any payments with respect thereto.
The offers to purchase and consent solicitations are part of a
series of transactions that are expected to include these
components:
* the conversion of at least 90% of the
Company's outstanding shares of convertible
preferred stocks into shares of its common stock;
* the entering into a new credit facility consisting of
an approximately US$450 million term loan facility and
an approximately US$80 million revolving credit
facility; and
* the distribution of approximately US$175 million in
cash in the form of a special dividend to the
Company's stockholders and dilution adjustment payments
to its option holders.
The Company's board of directors has formed a special committee
of its independent directors to review and evaluate the
Preferred Stock Conversion and the Distribution, including the
declaration of the Special Dividend, to negotiate the terms of
such transactions with representatives of the holders of its
Preferred Stock and to make recommendations to the Company's
board of directors. There can be no assurance that these
transactions will be completed or that the Special Dividend will
be declared.
The Company has been informed by its major stockholders that
collectively hold over 90% of its outstanding shares of the
Preferred Stock that if the Company's board of directors
declares the Special Dividend, then the holders will convert all
their shares of Preferred Stock into shares of the Company's
common stock immediately prior to the payment of the Special
Dividend.
The Company expects to enter into a new credit facility
consisting of an approximately US$450 million senior secured
term loan facility and an approximately US$80 million senior
secured revolving credit facility, including a letter of credit
sub-facility. The proceeds of the term loan facility, along
with a portion of the proceeds of the revolving credit facility
and cash on hand, are expected to be used to finance the payment
of the Special Dividend and the offers to purchase the Notes.
The new credit facility is expected to be secured with
substantially all of the Company's domestic assets and certain
foreign assets, and contain conditions precedent,
representations and warranties, covenants and events of default
customary for transactions of this type. In addition, the new
credit facility is expected to be prepayable by the Company at
any time without any penalty or premium and contain mandatory
prepayments provisions customary for transactions of this type.
The Company expects the revolving credit facility to have a
maturity of six years and the term loan facility to have a
maturity of seven years. There can be no assurance that the
Company will be able to enter into the new credit facility as
described above. The Company may restructure and/or reduce the
amount of borrowings under the new credit facility depending on
the amount of the Special Dividend declared by its board of
directors or if the board decides not to declare the Special
Dividend.
Deutsche Bank AG, London Branch and Merrill Lynch&Co. are the
dealer managers for the offers to purchase and the solicitation
agents for the consent solicitations.
Samsonite Corporation -- http://www.samsonite.com/--
manufactures, markets and distributes luggage and travel-related
products. The company's owned and licensed brands, including
Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,
Lacoste and Timberland, are sold globally through external
retailers and 284 company-owned stores. Executive offices are
located in London. The company has locations in Japan, Aruba,
Australia, Costa Rica, Indonesia, India, and the United States,
among others.
As reported in the Troubled Company Reporter on Sept. 15, 2006,
Moody's Investors Service placed the long-term ratings of
Samsonite Corporation, under review for possible upgrade:
* B1 corporate family rating
* B1 on the senior unsecured notes
* B3 on the 8.875% subordinated notes
SANYO ELECTRIC: Expects Loss for 2006 & Reveals More Job Cuts
-------------------------------------------------------------
Sanyo Electric Co. said that it now expects to fall into the red
this financial year as it revealed more job cuts amid weak sales
of digital cameras and mobile phones, Reuters relates.
Reuters' Nathan Layne says that the layoffs are the latest in a
string of restructuring moves by Sanyo, which has already cut
15% of its workforce earlier and issued US$2.6 billion worth of
shares to three banks at a deep discount to shore up its
finances.
Mr. Layne cites the company as saying that it was forced to
revise down its forecast for the year ending March 30, 2007, to
a loss of JPY50 billion -- from a JPY20 billion profit -- due to
the tumbling prices of mobile phones and digital cameras, as
well as new reform measures that are estimated to cost it
JPY40 billion (US$344 million).
Moreover, Sanyo, according to the report, cut its annual sales
projection by 8% to JPY2.2 trillion.
Reuters recounts that for the six months ended Sept. 30, 2006,
Sanyo reported JPY3.62 billion in consolidated net loss, beating
its own forecast by about JPY4 billion and a big improvement on
the JPY142.53-billion loss for the same period in 2005 when
restructuring costs battered its bottom line.
Mr. Layne notes that on an operating level, Sanyo was able to
return to profitability due mostly to cost cuts in its
semiconductor unit as well as strong sales of commercial
products such as showcase refrigerators.
However, Reuters says that Sanyo has been hit by fierce price
competition in the digital camera market from low-cost Taiwanese
makers and was beaten to the market by Motorola Inc. and Samsung
Electronics Co. in launching an ultra-slim mobile phone.
Reuters explains that the downturn in mobile phones and cameras
is problematic for Sanyo because these business divisions have
been positioned as indispensable to the company's recovery,
along with rechargeable batteries and solar cells.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.
The company has global operations in Brazil, Germany, India,
Ireland, Spain, the United States and the United Kingdom, among
others.
As reported in the Troubled Company Reporter - Asia Pacific on
September 28, 2006, Fitch Ratings has assigned BB+ long-term
foreign and local currency issuer default ratings to Sanyo
Electric Co., Ltd. The outlook on the ratings is Stable. Fitch
has also assigned a senior unsecured rating of BB+ to Sanyo's
outstanding bonds.
Fitch noted that the company is restructuring its operations and
its financial flexibility has relatively improved due to new
capital injection in March 2006.
Also, the TCR-AP reported on May 25, 2006, that Standard &
Poor's Ratings Services affirmed its negative BB long-term
corporate credit and BB+ senior unsecured debt ratings on Sanyo
Electric. At the same time, the ratings were removed from
CreditWatch where they were first placed with negative
implications on Sept. 28, 2005.
=========
K O R E A
=========
HANAROTELECOM: Fitch Gives 'BB' Issuer Default Rating
-----------------------------------------------------
Fitch Ratings assigned hanarotelecom Inc. a Long-term foreign
currency Issuer Default rating of 'BB'. The rating Outlook is
Stable.
The rating reflects the strategic importance of Hanaro as
Korea's only alternative fixed-line voice operator, its enhanced
presence in the broadband Internet access sector after its
merger with Thrunet Co., Ltd. and the Korean government's
favorable regulations aimed at encouraging second-tier telecom
operators.
"Despite Korea's saturated fixed-line voice service with
penetration ratio at 47% of the population or 143% of
households, Hanaro has been successful in expanding its market
share and sales since it started to provide voice services in
2000," said Sung-Jin Yoon, associate director in Fitch's Asia-
Pacific Telecom, Media and Technology team. KT Corporation
("KT", IDR 'A-'/Positive) is the incumbent fixed-line voice
operator with 93% market share, while Hanaro has a 7% share.
With the acquisition of Thrunet, the third-largest broadband
internet service company in Korea, Hanaro has increased its
share of Korea's broadband market (26% at August 2006) and
narrowed the gap between itself and KT, which has the largest
market share (46% at August 2006). "With Thrunet, Hanaro has
strongly reinforced its position as the No. 2 broadband Internet
access provider and enhanced its competitive position against
KT," added Mr. Yoon.
Fitch notes that Hanaro's business success is mainly attributed
to the Korean government's favorable policy towards alternative
telecom operators. Although there are early indications of a
shift to a more level competitive regime for the mobile telecom
sector, Fitch believes the favorable policy is likely to
continue at least over the near term for the fixed-line sector
in view of the regulator's objective to maintain a sustainable
competitive environment.
Nevertheless, Fitch says Hanaro faces tough challenges ahead on
the back of a shrinking domestic voice market and increasing
competition in the broadband sector. Since mid-2003, Korea's
overall voice sector revenue has been declining although
Hanaro's market share has been rising. In the broadband sector,
the company's market share started to decline following the
entry of Powercom and intense competition from cable TV system
operators. Fitch highlights that continuing loss of substantial
market share or significant margin deterioration due to
competition would result in downward rating pressure for Hanaro.
"The stagnant fixed-line market and large capital expenditure
needs for regular network upgrade remain as major business risks
for Korea's fixed-line operators," said Mr. Yoon. "However,
Hanaro is unlikely to require major upgrade spending as its
network was only set up in 2000."
Fitch says that although the successful launch of its internet
protocol television would be viewed positively, the agency is
aware of the risks involved in the new business. Fitch is also
concerned about uncertainties associated with Hanaro being a
potential takeover target.
Hanaro was established as Korea's second local call carrier in
1997. It launched its broadband Internet services in April 1999
and received a permanent license to provide long distance
telephony services in January 2003. In November 2003, Hanaro
issued new shares to a consortium of investors led by American
International Group, resulting in the consortium becoming the
largest shareholder at 39.6%. Hanaro merged with Thrunet in
January 2006.
HANAROTELECOM: Signs MOU to Acquire Onse's Broadband Subscribers
----------------------------------------------------------------
hanarotelecom Inc. signed a Memorandum of Understanding with
Onse Telecom in order to acquire Onse's broadband subscribers.
Under the terms of the MOU, those who consent to subscribe to
hanafos, hanarotelecom's broadband Internet access service, out
of Onse's active subscribers as of October 31, 2006, will be
transferred to hanarotelecom.
Onse will transfer its broadband subscribers to hanafos until
March 25, 2007, after gaining consent from its subscribers,
while hanarotelecom will pay KRW250,000 to Onse for every
migrated subscriber.
Both companies agreed to closely cooperate with each other for
the implementation of the MOU and seek mutual development by
forging a strategic alliance in the future.
hanarotelecom explained that the Company would conduct due
diligence on the subscribers of Onse, review the terms of the
MOU and sign a definitive agreement after finalizing the terms
and conditions.
By signing the MOU, hanarotelecom will be able to expand its
broadband subscriber base and thus further strengthen its
competitiveness in the broadcasting-telecommunications
convergence business including IPTV and Triple Play Service
combining broadband with voice and TV-Portal (hanaTV) services.
Byung-Moo Park, Representative Director & CEO of hanarotelecom,
said, "This MOU will serve as a good opportunity for us to
achieve economies of scale through the expanded broadband
subscriber base and lead the convergence market with our hanaTV
service."
Choon-Kil Seo, president and chief executive officer of Onse
Telecom, said, "By selling our broadband business, we have
gained momentum for our restructuring effort, and we expect that
we will be able to achieve a turnaround next year."
About hanarotelecom
hanarotelecom Inc. -- http://www.hanaro.com/-- is the second
largest player in the Korean local telephone market. It
provides high-speed Internet services in Korea. It provides
high-speed Internet services in Korea. In June 2001, the
company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables and Broadband
Wireless Local Loop into a single brand called HanaFOS.
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.
* * *
Moody's Investor Service has given hanarotelecom's long-term
corporate family and senior unsecured debt 'Ba2' ratings.
Standard and Poor's gave both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit 'BB'
ratings.
Fitch Ratings assigned hanarotelecom a Long-term foreign
currency Issuer Default rating of 'BB'. The rating Outlook is
Stable.
KOOKMIN BANK: Hopeful that KEB Sale Will Push Through
-----------------------------------------------------
Kookmin Bank expects United States-based Lone Star Funds to
continue with the sale of the private equity fund's stake in
Korea Exchange Bank, but not until after South Korean
prosecutors have completed the probe into it, AFX News Limited
reports.
As widely reported, Kookmin had struck a deal with Lone Star to
acquire the equity fund's controlling stake in KEB for
US$7.3 billion. The completion of the agreement was postponed a
number of times before finally being scrapped because of the
ongoing investigations. Prosecutors, among others, allege that
Lone Star and KEB fixed the share prices of KEB's subsidiary,
KEB Credit Services.
As reported in the Troubled Company Reporter - Asia Pacific on
November 22, 2006, the prosecutors indicted Lone Star along with
KEB on the stock-manipulation charges. According to an earlier
TCR-AP report, a Seoul District Court issued warrants to Lone
Star executives including vice chairman Ellis Short, and general
counsel Michael Thomson.
Kookmin, however, remains hopeful, AFX News says.
"Lone Star will sell KEB eventually," AFX News cites Kookmin
President & CEO Kang Chung-Won as saying.
According to Mr. Kang, Kookmin regrets Lone Star's decision to
terminate the deal but the bank doesn't see a major hitch in its
long-term growth plan and has even prepared for other possible
plans to expand its global presence.
Kookmin will announce a strategy soon to boost its global
businesses, AFX News states, citing Kookmin senior Kim Ki-Hong.
About Kookmin Bank
Kookmin Bank -- http://inf.kbstar.com/-- provides various
commercial banking services, such as deposits, credit cards,
trust funds, foreign exchange transactions, and corporate
finance. The bank also offers Internet banking services.
* * *
Moody's Investors Service gave Kookmin Bank a Bank Financial
Strength rating of D+ effective March 27, 2006.
Fitch Ratings gave the bank a B/C rating.
SK CORP: To Postpone Incheon Oil's London IPO Next Year
-------------------------------------------------------
SK Corporation decided to postpone the sale of its partial stake
in SK Incheon Oil via an initial public offering on the London
Stock Exchange, the oil refiner disclosed in its Web site.
The Troubled Company Reporter - Asia Pacific, on Nov. 22, 2006,
cited the Wall Street Journal, saying that SK Corp. was set to
sell 88.3 million of global depositary receipts of Incheon Oil,
or 25% stake in the unit, on December 12.
SK Corp. wanted the London listing because South Korea
regulations disallow a company to list after it has posted an
annual net loss. SK Incheon incurred a KRW167-billion net loss
in 2005.
The postponement was due to changes in market conditions, SK
Corp. explains.
"The follow-up decision will be made after January 2007, after
taking into consideration any and all business-related
circumstances," SK Corp. adds.
About SK Corporation
Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is an energy and petrochemical company
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina. SK Corp.
currently explores, develops and produces oil in 13 nations that
span Africa, Asia and the Americas.
Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency
Long-Term Debt Rating effective February 17, 2006.
SK CORP: Will Be Fined for Price-Fixing Collusion, FTC Says
-----------------------------------------------------------
Korea's Fair Trade Commission found SK Corp., along with other
chemical firms like LG Petrochem, to have colluded in setting
the prices of synthetic resin and other petrochemical products,
The Korea Times reports.
According to the regulator, the firms fixed the prices of
petrochemical goods by controlling supplies over the past few
years. Hence, "[t]hey will be subject to sanctions, such as
fines, this year," the newspaper cites FTC Chairman Kwon Oh-
seung as saying.
The FTC further alleges that the companies did not cut product
prices when international oil prices were low but hiked prices
when oil prices rose.
The newspaper, citing FTC officials, states that SK Corp., LG
Petrochem and other firms are likely to be slapped with about
KRW200 billion (US$213 million) in fines by late 2006.
About SK Corporation
Headquartered in Seoul, South Korea, SK Corporation --
http://eng.skcorp.com/-- is an energy and petrochemical company
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina. SK Corp.
currently explores, develops and produces oil in 13 nations that
span Africa, Asia and the Americas.
Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency
Long-Term Debt Rating effective February 17, 2006.
* Survey Shows Investors' Optimism for Korean Market in 2007
------------------------------------------------------------
Foreign and local institutional investors have a rosy outlook
for the Korean stock market next year, Korea.net relates, citing
results of the latest survey by the Korea Chamber of Commerce
and Industry.
According to the Korea Government's Web site, the survey was on
the outlook of the Korean stock market for 2007 and affecting
factors for 31 foreign brokerage houses and asset managing firms
and another 30 local institutional investors, including banks
and pension funds.
The survey showed that 63% of the respondents believe that the
stock market environment would be better next year than this
year's and 58% see a boom. Only 2% of the respondents expect
the stock market environment to get worse than this year while
5% believe that the market would get into sluggishness.
"Institutional investors, including pension funds, will purchase
more stocks next year," 95% of the respondents replied. Around
83% sees better corporate earnings next year.
Among those cited by respondents as unfavorable influences in
Korea's stock market are:
-- unstable foreign exchange rate of the Korean won;
-- possible rising interest rates as an adverse factor; and
-- economic uncertainty.
===============
M A L A Y S I A
===============
ANTAH HOLDINGS: Court Extends Restraining Order to Feb. 5, 2007
---------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
September 8, 2006, that Antah Holdings Bhd obtained a
restraining order from the Kuala Lumpur High Court.
The restraining order, which was issued originally on August 9,
2006, was secured to facilitate the implementation of the
company's proposed restructuring scheme. Antah submitted the
proposed restructuring scheme on May 9, 2006, to the Securities
Commission and Foreign Investment Committee for approval.
In an update report, solicitors of the company informed the
board of directors that the High Court extended the restraining
order up to February 5, 2007.
Antah's restructuring scheme aims to restore its strong
financial footing through the injection of new viable
businesses.
* * *
Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing. The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management
services, and investment holding. The Group discontinued its
beverage and security services operations. The Group operates
in Malaysia, Australia, United Kingdom, and Singapore.
The Company's balance sheet as of June 30, 2006, showed total
assets of MYR678.492 million and total liabilities of MYR1.039
billion, resulting into a shareholders' equity deficit of
MYR361.167 million.
DCEIL INT'L: Affin Bank Seeks MYR15.71-Mil. Payment from Unit
-------------------------------------------------------------
On November 22, 2006, Dceil International Bhd received a letter
of demand from Affin Bank Berhad seeking repayment of
MYR15.71 million from the company's wholly owned subsidiary,
Dceil Imex Sdn Bhd.
The amount due relates to a financing facility granted by the
bank to DISB.
Absent DISB's immediate payment, Affin Bank intends to commence
legal proceedings to recover all amounts due and payable.
* * *
DCEIL International Bhd is principally involved in trading,
distribution and installation of ceilings and partitioning
works. Its other activities include manufacturing of toilet
partitions and investment holding. The Group operates in
Malaysia and other foreign countries.
DCEIL is classified under Practice Note 1 and Practice Note 17
of the Bursa Malaysia Securities Berhad's Listing Requirements
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 7, 2006, Wang & Co, the external auditor of Dceil, raised
doubt on the company's ability to continue as a going concern
after auditing the company's financial statements for the fiscal
year ended June 30, 2006. The auditor pointed to the bankers'
demands for the company to settle its outstanding loans.
FEDERAL FURNITURE: Incorporates New Wholly Owned Subsidiary
-----------------------------------------------------------
On October 31, 2006, Federal Furniture Holdings (M) Berhad
incorporated a wholly owned subsidiary, Qingdao Federal
Furniture Industries Co. Ltd., with the Qingdao Industrial And
Commercial Administration Bureau in China.
Qingdao Federal has an authorized share capital of US$150,000
and its registered paid-up share capital will be US$125,000.
Under local regulations, Federal Furniture has three months from
date of registration to put in 15% for the registered paid-up
capital and 12 months to pay up the balance.
The principal activity of the newly owned unit is the
manufacture of furniture for the local and export markets.
* * *
Headquartered in Selangor Darul Ehsan Malaysia Federal Furniture
Holdings Bhd -- http://www.federal-furniture.com/-- is a listed
company on the Kuala Lumpur Stock Exchange and is Malaysia's
premier furniture and interior design group. It consists of
companies in all the main sectors of the furniture-related
industries, from manufacturing, marketing, exporting, contract
furnishing and interior design to retail.
On June 24, 2004, the Board of Directors of Federal Furniture
has proposed a capital reduction, a share premium reduction,
rights issue with warrants and a debt settlement scheme with
some of its financial institution lenders to restructure and
settle a substantial part of its total bank borrowings. On
July 5, 2006, the Company submitted its Regularization Plan to
Bursa Malaysia Securities Berhad for approval.
As of March 31, 2006, the company's balance sheet showed total
assets of MYR145,551,934 and total liabilities of
MYR151,217,536, resulting into a shareholders' deficit of
MYR5,665,602.
FOAMEX INT'L: Murray Capital Backs Panel's DIP Loan Objections
--------------------------------------------------------------
Murray Capital Management Inc. adopts the arguments, and joins
in the objection, of the Ad Hoc Committee of Senior Secured
Noteholders to Foamex International Inc. and its debtor-
affiliates' request to sign commitment letters for a
US$790,000,000 debt exit financing and a US$150,000,000 equity
exit financing in connection with their First Amended Plan of
Reorganization, dated October 23, 2006.
Murray Capital echoes the Senior Noteholders Committee's
contentions that the Debtors have failed to show that their
performance of the Equity Commitment constitutes an appropriate
exercise of business judgment. The Senior Noteholders Committee
complained that the Debtors have negotiated exclusively with the
Significant Equityholders since June 2006, thus, foreclosing
potentially more cost-effective financing alternatives.
Murray Capital points out that the Equity Commitment puts the
Debtors at substantial risk causing a Termination Event, which
would enable the Significant Equityholders to abandon the Equity
Commitment while collecting millions of dollars in fees and
expenses before creditors receive any distribution.
Mark D. Olivere, Esq., at Edwards Angell Palmer & Dodge LLP, in
Wilmington, Delaware, notes that under the Equity Commitment,
the Debtors must remit US$2,000,000 to the Significant
Equityholders merely because the Court approves the Motion.
In addition, if the Debtors modify the Amended Plan in any means
"adverse" to the Significant Equityholders, the Equity
Commitment will terminate automatically and the Debtors will
incur a US$5,500,000 liability to the Significant Equityholders.
The "adverse" modifications need not be material and may include
modifications made by the Debtors to correct defects in the
Amended Plan or to comply with any Court order, steps that are
routine in most Chapter 11 cases, Mr. Olivere notes.
Mr. Olivere also argues that the US$9,500,000 Put Option Premium
is grossly excessive by any calculation. Because the
Significant Equityholders are eligible to subscribe for
approximately US$90,000,000 of the US$150,000,000 Rights
Offering, their Put Option Obligation with respect to the
remaining rights approximates, US$60,000,000, of which the Put
Option Premium is roughly 15.8%.
Fees paid by Chapter 11 debtors in the context of other
backstopped rights offerings typically range between
approximately 2% and 5% of the aggregate amount financed.
In the event the Court determines that the fees are reasonable,
Murray Capital asserts that the Equity Commitment should be
modified to ensure that the Equity Commitment does not
needlessly prejudice creditors. Specifically, Murray Capital
proposes the Equity Commitment provide that no portion of the
Put Option Premium and other fees potentially payable to the
Significant Equityholders will become due until the Significant
Equityholders pay the Call Option Premium in the event the
Significant Equityholders exercise the Call Option.
Murray Capital contends that the Equity Commitment, the Amended
Plan and the related disclosure statement are all part and
parcel of a proposed Chapter 11 plan that is patently
unconfirmable.
"The scheme hatched by Debtors and the Significant Equityholders
is a blatant attempt to deprive the holders of the Senior Notes
their contractual recovery, while impermissibly divesting [them]
of their right [to] vote on the Plan by wrongly characterizing
their Senior Note claims as unimpaired," Mr. Olivere argues.
Murray Capital is a direct and indirect holder, by and through
certain funds and managed accounts, of in excess of
US$20,000,000 of the Debtors' 10-3/4% Senior Notes Due April 1,
2009.
* * *
The Debtors informed the Court that the U.S. Trustee's informal
concerns have been resolved.
To the extent the Noteholders Committee and Murray Capital's
objections are not resolved prior to the hearing, the Motion
will go forward on a contested basis on Nov. 27, 2006.
About Foamex International
Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.
Foamex has Asian locations in Malaysia, Thailand and China.
The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693). Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors. As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts. (Foamex International Bankruptcy News, Issue No. 33;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'. The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.
The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate. The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.
FOAMEX INTERNATIONAL: Parties Balk at Amended Disclosure Report
---------------------------------------------------------------
Various parties-in-interest and creditors object to the approval
of the disclosure statement accompanying the Debtors' First
Amended Plan of Reorganization, dated Oct. 23, 2006:
(a) Nordstrom, Inc.;
(b) Commercial Roofing Systems, Inc.;
(c) U.S. Bank National Association, as indenture trustee;
(d) Murray Capital Management, Inc.; and
(e) the Ad Hoc Committee of the Debtors' 10-3/4% Senior
Secured Noteholders Due April 2009;
The Objectors argue that the Disclosure Statement fails to
provide creditors with "adequate information" as required in
Section 1125 of the Bankruptcy Code. Certain of the Objectors
also assert that the Disclosure Statement should not be approved
because the Amended Plan is patently unconfirmable.
On behalf of Nordstrom, Rachel Mersky, Esq., in Monzack and
Monaco, P.A., in Wilmington, Delaware, contends that:
(a) the Disclosure Statement wholly fails to identify the
nature and event of the Unliquidated Claims and the
applicable insurance available to substantiate the
statement that the Debtors will have sufficient resources
to address these claims when and if allowed;
(b) the Disclosure Statement does not adequately identify the
nature and extent of the Intercompany Claims, or provide
any real description of how or when they will be paid,
including whether they will be paid ahead of the payment
of the Unliquidated Claims;
(c) the Amended Plan and accompanying Disclosure Statement
improperly classify and treat similarly-situated claims
without providing any legitimate business reason or
explaining why those claims should be separately treated;
(d) the Amended Plan removes federal jurisdiction over the
Unliquidated Claims without setting forth the bases for
the sub rosa abstention over the Unliquidated Claims; and
(e) the Amended Plan and Disclosure Statement improperly
designate the Unliquidated Claims as unimpaired when,
among other alterations of the rights of those claims,
the Amended Plan:
* limits the amount and nature of the Unliquidated
Claims to the information set forth in the filed
proofs of claim; and
* removes the rights of these claimants to allowance,
objection and estimation provisions of the Bankruptcy
Code and Federal Rules of Bankruptcy Procedure.
Commercial Roofing informs the Court that it has perfected a
mechanic's lien for US$178,474 for work and materials furnished
to Foamex International Inc., and Foamex, L.P., for the
improvement of their property in Donna Ana County, New Mexico.
Representing Commercial Roofing, Francis A. Monaco, Esq., at
Monzack and Monaco, in Wilmington, Delaware, relates that
although the Disclosure Statement identifies Commercial Roofing
as an "Other Secured Creditor", it does not contain adequate
information regarding the treatment of Commercial Roofing's
claim.
The Amended Plan contemplates three different ways of treating
Other Secured Creditors. However, according to Mr. Monaco, the
Disclosure Statement does not provide adequate information for
the creditors to determine which treatment would apply to any
particular claim.
Commercial Roofing objects to any treatment of its claim other
than full payment on the Effective Date of the Amended Plan
considering that its claims is a mechanic's lien that is subject
to immediate foreclosure if the amounts owed are not paid.
Mr. Monaco also asserts that the Disclosure Statement does not
contain adequate information about the US$790,000,000 debt exit
financing and a US$150,000,000 equity exit financing facilities.
"[I]t appears that certain of the Exit Facility lenders would be
granted first priority liens on all of [the] Debtors' assets.
There is no explanation or information provided as to why these
liens totaling approximately US$790,000,000, should be granted
without providing either payment to or adequate protection of
Other Secured Creditors and Commercial Roofing," he says.
U.S. Bank said that the Amended Plan misstated the aggregate
amount of its Liquidated Claim as US$312,452,083, rather than
US$315,139,583, which is the correctly recalculated aggregate
amount of principal and prepetition interest as reflected in its
amended proofs of claim.
Franklin Ciaccio, Esq., at King & Spalding LLP, tells the Court
that while U.S. Bank agrees with the Amended Plan's provision of
U.S. Bank's right to "accrued and unpaid [Postpetition]
Interest," U.S. Bank takes exception to the express exclusion in
the Amended Plan of "any call premiums or any prepayment fees
and penalties," amounts to which U.S. Bank is otherwise entitled
under the Indenture.
Murray Capital's counsel, Mark D. Olivere, Esq., at Edwards
Angell Palmer & Dodge LLP, in Wilmington, Delaware, states that
although the Disclosure Statement alleges that all holders of
claims against the Debtors will be unimpaired, a closer reading
reveals that this is not the case.
The Disclosure Statement lacks sufficient information for
holders of claims on account of the Senior Notes and
Subordinated Notes to determine the extent to which the Amended
Plan may satisfy those claims for contractual default interest,
Mr. Olivere contends.
Mr. Olivere argues that the Amended Plan violates:
-- the Bankruptcy Code's absolute priority rule by not
satisfying the claims under the Senior Notes and
Subordinated Notes in full, while providing for a
distribution to the Debtors' Equityholders; and
-- Section 506(b) by not affording the holders of Senior
Notes claims the contractually required interest and
charges which they are entitled under that section.
Mr. Olivere adds that the Amended Plan impermissibly denies
holders of claims on account of the Senior Notes and
Subordinated Notes their statutory right to accept or reject the
Plan by designing those claims as unimpaired while denying them
full array of their contractual claims.
The Senior Noteholders Committee asserts that:
(a) the Disclosure Statement fails to disclose that there are
significant disputes between the Debtors and the Senior
Secured Noteholders regarding:
* the amount of the Senior Secured Note Claims as of
the Petition Date;
* the right of the Senior Secured Noteholders to
receive postpetition interest at the default rate set
forth in the Senior Notes Indenture through the
Effective Date; and
* the right of the Senior Secured Noteholders to
receive payment of either a prepayment premium or
change of control premium in accordance with the
terms of the Senior Secured Note Indenture;
(b) the Disclosure Statement fails to disclose that if the
Senior Secured Noteholders are successful in their
dispute with the Debtors:
* the Amended Plan cannot be confirmed or consummated
as it will violate the requirements of Section
1129(b)(2)(A), and
* the Amended Plan may fail by its own terms as its
conditions to confirmation and effectiveness may not
be satisfied; and
(c) the Amended Plan and Disclosure Statement are both
inaccurate and materially misleading as they assert that
the Senior Secured Note Claims are unimpaired and deemed
to have accepted the Amended Plan.
* * *
The Debtors informed the Court that Commercial Roofing's
objection and the U.S. Trustee's informal concerns have been
resolved in principle.
The Court will convene a hearing to consider the adequacy of the
Disclosure Statement on Nov. 27, 2006, at 2:00 p.m.
Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries. Foamex
has Asian locations in Malaysia, Thailand and China. The
Company and eight affiliates filed for chapter 11 protection on
Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693). Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors. As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts. (Foamex International Bankruptcy News, Issue No. 33;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'. The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.
The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate. The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.
GEORGE TOWN: Fails to Submit Interim 2Q Financial Report
--------------------------------------------------------
George Town Holdings Berhad failed to submit its interim
quarterly report for the financial period ended June 30, 2006,
to Bursa Malaysia Securities Berhad for public release within
the stipulated timeframe pursuant to the Listing Requirements.
George Town informs the Bourse that it won't also be able to
submit the report on or before the November 30, 2006 expiry
date.
George Town is still in the process of working on its proposed
restructuring scheme, the company explains.
As reported by the Troubled Company Reporter - Asia Pacific on
August 28, 2006, George Town also failed to submit its financial
report for the period ended March 30, 2006.
The TCR-AP has also reported that the company's securities has
been suspended from trading since August 1, 2005, due to the
fact that it has not issued the Annual Audited Accounts and
Annual Report for:
* the 15-month period ended December 31, 2004;
* AAA for the financial year ended December 31, 2005;
* Quarterly Reports for the periods ended March 31, 2005;
June 30, 2005, September 30, 2005; and December 31, 2005,
by the respective due dates pursuant to the Listing
Requirements.
* * *
Headquartered at Petaling Jaya, in Selangor Darul Ehsan,
Malaysia, George Town Holdings Berhad operates supermarkets,
department stores and convenience stores. Its other activities
include property development, trading in pharmaceutical
products, media design and advertising, management services,
goldsmith and jewelers, management of car parks, bakery, pastry
and fast food center, financial services, hotel management and
investment holding.
The Group operates in Malaysia, Continental Europe/Offshore
Islands and other countries.
The company has been categorized as an Affected Listed Issuer
under Practice Note 17, based on its unaudited financial
statement as at December 31, 2004, wherein it showed that the it
had MYR28.7 million shareholders' equity representing 23.4% of
the issued and paid-up share capital which is less than the 25%
minimum required under the listing requirements of Bursa
Securities.
SIRVA WORLDWIDE: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its Probability-of-Default and Loss-Given-Default rating
methodology for the Transportation sector, the rating agency
held its B2 Corporate Family Rating for SIRVA Worldwide, Inc.
Additionally, Moody's confirmed its probability-of-default
ratings and assigned loss-given-default ratings on the company's
debentures:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Guaranteed Senior
Secured Revolver
Due 2009 B2 B2 LGD3 46%
Guaranteed Senior
Secured Term
Loan B Due 2010 B2 B2 LGD3 46%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).
SIRVA Worldwide, Inc., headquartered in Westmont, Illinois, and
a wholly-owned operating subsidiary of SIRVA, Inc. is a leader
in providing relocation solutions and moving services to a
diverse global customer base.
The company has offices in China, Costa Rica, France, Germany,
Hong Kong, Japan, Malaysia, the United Kingdom, among others.
SOLECTRON CAPITAL: Moody's Affirms B1 Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service affirmed the B1 Corporate Family
Rating of Solectron Corporation and other ratings affirmed
included the B3 ratings of its US$450 million Convertible Senior
Notes due 2034 and the US$150 million Senior Subordinated Notes
due 2016 guaranteed by it.
The ratings reflect both the overall probability of default of
the company, to which Moody's assigns a PDR of B1, and a loss
given default of LGD 4.
The rating outlook was revised to positive.
The change in the outlook reflects:
-- significant de-leveraging over the past 2-3 years which
resulted in improved credit ratios (leverage and
coverage);
-- recent improvements though still modest in financial
performance especially over the second half of fiscal
2006;
-- the expectation of stronger performance in fiscal 2007 in
terms of revenue growth, profitability and free-cash-flow
generation;
-- a liquid balance sheet with a net cash position and no
significant maturity over the next 3 years; and,
-- the franchise value of Solectron as a tier one EMS
provider in the electronic supply chain.
The outlook also incorporates the report of Solectron's
restructuring program, which is scheduled to be completed in the
current fiscal year. The company expects to consolidate and/or
close down 700,000 square feet of facilities in US and Western
Europe and reduce headcount by about 1400 persons. About US$60
million of total charges are associated with this phase with
annual cost savings estimated at about US$30 million.
The B1 rating continues to reflect:
-- the intensely competitive landscape in the EMS industry
with Asian competitors posing a more serious threat;
-- the volatile nature of the EMS industry and the on-going
consolidating trend by EMS' OEM customers which further
accentuates the lumpiness of the sector's key customers;
-- Solectron's modest revenue growth of 1.1% in an
environment of favorable end-market demand of over 10%
CAGR, coupled with a preponderance of revenues in the
traditional end-markets;
-- still weak albeit improving profitability and return
measures; and
-- negative free cash flow partly impacted by inventory build
up in fiscal 2006.
Ratings affirmed:
-- Corporate family rating B1;
-- Probability-of-default rating B1;
-- US$450 million 0.5% Convertible Senior Notes due 2034 at
B3, LGD5, 89%; and,
-- US$150 million 8.0% Senior Subordinated Notes due 2016,
B3, LGD5, 89%.
Ratings withdrawn on Nov. 15, 2006:
-- US$64 million 7.97% Subordinated Debentures due Nov. 2006,
B3, LGD6, 95%.
The rating could be revised upward if:
-- there is further evidence of revenue stability and growth
and diversification partly due to growth in non-
traditional end-markets; and
-- improvement in profitability and return metrics and better
working capital management to result in positive free-
cash-flow.
Moody's will also be monitoring the success of the company's
restructuring program and its impact on profitability. Moody's
does not foresee Solectron's corporate family rating to falling
below the current B1 unless significant developments resulting
in deterioration of revenue, return and cash flow measures.
Headquartered in Milpitas, California, Solectron Corporation
(NYSE: SLR) -- http://www.solectron.com/-- provides a full
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.
TECHVENTURE BHD: Incurs MYR4.45-Million Net Loss in 3Q 2006
-----------------------------------------------------------
Techventure Bhd posted a net loss of MYR4.45 million on
MYR5.896 million in revenues in the third quarter ended
September 30, 2006, compared with a MYR3.705-million net loss on
MYR10.03 million revenues recorded in the same quarter last
year.
The company's consolidated balance sheet as of September 30,
2006, reflected strained liquidity with MYR24.57 million in
current assets available to pay MYR148.451 million in current
liabilities coming due within one year.
Total assets of the company as of September 30, 2006, reached
MYR158.57 million, while total liabilities was at
MYR149.23 million. Shareholders' equity in the company amounted
to MYR9.34 million.
A full-text copy of the company's financial statements for the
quarter ended September 30, 2006, can be viewed for free at:
http://bankrupt.com/misc/techventure06.xls
* * *
Techventure Berhad is based in Selangor, Malaysia. Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products like septic tanks, playground
equipment, traffic barriers, and water tanks. It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported. In
addition, the Group also manufactures ice cream.
In June 2003, the Company proposed a debt-restructuring program
to its financial institution lenders to avoid liquidation. In
May 2006, the Company was categorized under the Amended Practice
Note 17 category of the Bursa Malaysia Securities Berhad's
Listing Requirements. As an affected listed issuer, the Company
is required to regularize its financial condition or risk being
delisted from the Official List of Companies.
=====================
N E W Z E A L A N D
=====================
A.J. BURR: Commences Liquidation Proceedings
--------------------------------------------
On Oct. 24, 2006, shareholders of A.J. Burr (Holdings) Ltd
resolved to liquidate the company's business and appointed
Graham Neil Sinclair as liquidator.
The Liquidator can be reached at:
Graham Neil Sinclair
P.O. Box 349
Blenheim
New Zealand
Telephone:(03) 578 0180
Facsimile:(03) 578 0327
AUTOWORKS SERVICE: Appoints Joint Liquidators
---------------------------------------------
On Nov. 9, 2006, Kenneth Peter Brown and Thomas Lee Rodewald
were appointed as joint and several liquidators of Autoworks
Service & Performance Centre Ltd.
As reported by the Troubled Company Reporter - Asia Pacific, the
Commissioner of Inland Revenue filed a liquidation petition
against the Company. The Court heard the petition on Nov. 9,
2006.
The Joint and Several Liquidators can be reached at:
Kenneth Peter Brown
Thomas Lee Rodewald
Rodewald Hart Brown Limited
127 Durham Street (P.O. Box 13-380)
Tauranga
New Zealand
Telephone:(07) 571 6280
FELTEX CARPETS: Lawyer Asks Shareholders to Support Class Action
----------------------------------------------------------------
Christchurch lawyer Garry Wakefield has written to 8,893
shareholders of Feltex Carpets Limited asking for AU$380 each to
back a class action against the company's former directors and
the promoters of its 2004 float, stuff.co.nz cites a report from
Sunday Star Times.
Sunday Star notes that the move opposes the Shareholders
Association appointing a liquidator who would be empowered to do
the same.
As reported in the Troubled Company Reporter - Asia Pacific on
November 27, 2006, the New Zealand Shareholders Association, in
its capacity as a shareholder, filed with the High Court in
Auckland an application for the appointment of liquidators to
Feltex. The Court will hear the petition on November 30, 2006.
Although they disagree on the way forward, both sides are
motivated by huge losses suffered by investors who bought the
company from a Credit Suisse First Boston private equity fund in
May 2004, for NZ$243 million, stuff.co.nz says.
Sunday Star recounts that Godfrey Hirst bought Feltex for about
NZ$140 million, which covered Feltex's bank debt but left
shareholders with nothing.
The paper cites Mr. Wakefield's letter saying "you must act now
to help resist the misguided application to wind up Feltex
brought by a Shareholders Association that holds just 1,000
Feltex shares."
The letter proposes to use the Feltex shell as a plaintiff in
legal action, Sunday Star relates. The letter also said
Feltex's employee shareholders strongly supported a scheme of
arrangement to restore solvency to the company, the paper adds.
Mr. Wakefield asserted that the budget was realistic and the
goals obtainable, stuff.co.nz relates. "We'd like 10%-15% of
the shareholders to contribute," Mr. Wakefield added.
That would yield NZ$300,000-NZ$500,000, Sunday Star says.
The TCR-AP has also reported that Ian Hamilton, of Invercargill,
who owns 172,000 Feltex shares, lodged an application on October
27, 2006, to have shareholder activist Tony Gavigan appointed to
the Feltex board. The application will be heard before the
Court on November 29, 2006, at 10 a.m.
Mr. Gavigan, who is an auditor, is gathering a group of Feltex
shareholders to take legal action against several parties
associated with the float of Feltex Carpets, the TCR-AP cited a
report from NZPA. Feltex Carpets has had no directors since
they all resigned, the report noted.
About Feltex
Headquartered in Auckland, New Zealand, and established over 50
years ago, Feltex Carpets Limited -- http://www.feltex.com/--
has built a reputation for being one of the world's leading
manufacturers of superior-quality carpet. The Feltex operation
includes a wool scouring plant, six spinning mills, three tufted
carpet mills, a woven carpet mill and offices in New Zealand,
Australia and the United States.
The Company also leads the way in exports, with customers
throughout South East Asia, Japan, the United States, the Middle
East and other key world markets. Feltex listed on the local
stock exchange in mid-2004 in a NZ$254-million initial public
offering -- the year's largest in New Zealand. However, the
Company fell short of its prospectus earnings projections,
reporting a net profit of NZ$11.8 million in the fiscal year to
June 30, 2005, about half the forecast NZ$23.9 million. The
Company has struggled with losses and earnings downgrades,
flogging sales, and a dipping share price. The Company closed
plants and in October 2005, axed 235 jobs, mostly in Australia,
and by 2006, abandoned merger talks with Australian competitor
Godfrey Hirst after it suggested that the apparent "whiteknight"
investor was more interested in a reverse takeover. Godfrey
Hirst later sold out its nearly 9% stake in the Company. In
February 2006, Feltex reported a first-half after tax loss of
NZ$11.83 million, down almost 200% compared with the net loss in
the previous year.
ANZ Bank placed the Company in receivership on September 22,
2006, and named Colin Nicol, Peter Anderson and Kerryn Downey,
of McGrathNicol+Partners, as receivers and managers.
The TCR-AP reported on October 4, 2006, that Godfrey Hirst
acquired Feltex as a going concern, including its assets and
undertakings in New Zealand, Australia, and the United States.
Proceeds of the sale will be used to ease the company's
NZ$128-million debt to ANZ Bank.
FOREMANS ROAD: Court Hears Liquidation Petition
-----------------------------------------------
The Commissioner of Inland Revenue filed a liquidation petition
against Foremans Road Investments Ltd with the High Court of
Christchurch on Oct. 20, 2006.
The petition was heard on Nov. 27, 2006.
The Solicitor for the Petitioner can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception
518 Colombo Street (P.O. Box 1782)
Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
FRESH PREPARED: Liquidation Hearing Slated for Feb. 1
-----------------------------------------------------
The High Court of Auckland will hear a liquidation petition
filed against Fresh Prepared Ltd on Feb. 1, 2007, at 10:45 a.m.
D B Hickson Barrister & Solicitor filed the petition on Oct. 27,
2006.
The Solicitor for the Petitioner can be reached at:
H. M. Lim
Level Six, 5 High Street
Auckland 1010
New Zealand
LEONORA HOLDINGS: Creditors to Prove Claims on December 11
----------------------------------------------------------
Karen Betty Mason and Jeffrey Philip Meltzer were appointed as
joint and several liquidators of Leonora Holdings Ltd on
Nov. 10, 2006.
Accordingly, the liquidators require the company's creditors to
prove their claims by Dec. 11, 2006. Creditors who cannot prove
their claims by the due date will be excluded from sharing in
any distribution the company will make.
The Liquidators can be reached at:
Karen Betty Mason
Jeffrey Philip Meltzer
Meltzer Mason Heath
Chartered Accountants
P.O. Box 6302
Wellesley Street, Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
NZ CATERING: Creditors Proofs of Claim Due on December 18
---------------------------------------------------------
On Nov. 6, 2006, Iain Bruce Shephard and Christine Margaret
Dunphy were appointed as joint and several liquidators of NZ
Catering Supplies Ltd -- trading as Wholefoods Bakery.
Accordingly, the liquidators fix Dec. 18, 2006, as the last day
for the company's creditors to prove their debts.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
Shephard Dunphy Limited
Level Two, Zephyr House
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
PACIFIC RENAISSANCE: Members Resolve to Liquidate Business
----------------------------------------------------------
On Nov. 10, 2006, the members of Pacific Renaissance Picture Ltd
resolved to liquidate the company's business and appointed Grant
Robert Graham and Brendon James Gibson as joint and several
liquidators.
The Joint and Several Liquidators can be reached at:
Grant Robert Graham
Brendon James Gibson
Ferrier Hodgson & Co
Level Sixteen, Tower Centre
45 Queen Street (P.O. Box 982)
Auckland
New Zealand
Telephone:(09) 307 7865
Facsimile:(09) 377 7794
PROPERTY PLACEMENTS: Shareholders Decide to Liquidate Business
--------------------------------------------------------------
On Nov. 3, 2006, shareholders of Property Placements Ltd
resolved by special resolution to liquidate the company's
business and appointed Paul Glass as liquidator.
The liquidation commenced on Nov. 8, 2006.
The Liquidator can be reached at:
Paul Glass
44 York Place, Dunedin
New Zealand
Telephone:(03) 477 5432
Facsimile:(03) 474 1564
RJI PACIFIC: Court Sets Liquidation Hearing on Dec. 11
------------------------------------------------------
A petition to liquidate RJI Pacific International Ltd will be
heard before the High Court of Rotorua on Dec. 11, 2006, at
10:45 a.m.
Owens Transport Ltd filed the petition with the Court on Oct. 9,
2006.
The Solicitor for the Petitioner can be reached at:
Dianne S. Lester
Credit Consultants Debt Services NZ Limited
Level Three, 3-9 Church Street
(P.O. Box 213 or D.X. S.X. 10 069)
Wellington
New Zealand
Telephone:(04) 470 5972
SOVEREIGN CHARTERS: Faces Liquidation Proceedings
-------------------------------------------------
On Sept. 15, 2006, Glaister Ennor filed a liquidation petition
against Sovereign Charters Ltd before the High Court of
Auckland.
The petition will be heard on Dec. 19, 2006, at 10:00 a.m.
The Solicitor for the Petitioner can be reached at:
Lyndal Yaqub
First Floor, Norfolk House
18 High Street
(P.O. Box 63 or D.X. C.X. 10-236)
Auckland
New Zealand
=====================
P H I L I P P I N E S
=====================
ATLAS CONSOLIDATED: Board Appoints A. Ramos as Vice President
-------------------------------------------------------------
During the regular meeting of the board of directors of Atlas
Consolidated Mining and Development Corporation held on
November 24, 2006, the Board appointed Adrian Paulino S. Ramos
as Vice President.
About Atlas Consolidated
Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company. The Company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products. The
Company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located. The Cebu copper
mine ceased operations in 1994. Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite. The closure has brought huge
losses to the mining firm.
In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.
According to a TCR-AP report on June 1, 2006, Atlas reported a
capital deficiency of PHP3.035 billion for the year ended
December 31, 2005. Moreover the Company's auditor, Jaime F. Del
Rosario, of Sycip Gorres Velayo, raised substantial doubt on the
Company's ability to continue as a going concern.
NATIONAL POWER: Inks 5-Year Transition Supply Deal with Meralco
---------------------------------------------------------------
On November 16, 2006,the National Power Corporation and Manila
Electric Company signed a power supply agreement that will
assure Meralco's millions of industrial and residential
customers a continuous, reliable, and quality supply of
electricity.
The agreement, which was signed by Napocor President Cyril C.
Del Callar and Meralco President and Chief Executive Officer
Jesus P. Francisco Jr., was a transition supply contract that is
offered to Napocor customers during the period of transition,
while state-owned generation facilities are still undergoing
privatization, as mandated by the Electric Power Industry Reform
Act.
The last time that Napocor and Meralco signed a supply contract
was in November 1994.
"The next thing we have to do now is to jointly file the
contract before the Energy Regulatory Commission. But
considering that both parties agreed to implement it
immediately, the contract is already effective between National
Power and Meralco," Mr. Del Callar noted.
According to Mr. Del Callar, the signing of the agreement
reflects the objectives of distribution utilities like Meralco
to offer their costumers the lowest rates possible.
The Contract has a five-year term, but will be automatically
terminated one year after the introduction of open access. The
remaining years can then be converted into a bilateral contract,
which will have a term of five years. However, should there be
no open access five years after the signing, the contract is
extendable for another five years.
Through the agreement, Meralco agrees to source an average of
about 6,600 gigawatt-hours annually from National Power,
exclusive of other special programs like the One-Day Power Sales
Program and the newly introduced Customer Choice Program.
Rates applicable in the contract will be the latest ERC-approved
Time-of-Use Rates in Luzon.
Both Napocor and Meralco expressed optimism that the contract
will be implemented successfully.
About Manila Electric
Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers. Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.
About National Power
Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities. It works
with independent producers under a build-operate-transfer
program. With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies. To comply with the privatization bill
approved by the Philippine Congress, the Company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion. It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.
* * *
National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers. The Company posted a PHP29.9 billion loss in
2004, after a net loss of PHP117 billion in 2003.
The Government absorbed National Power's PHP200 billion debt,
which was incurred when the government-owned-and-controlled
corporation adopted international accounting standards, forcing
the Company to report its foreign exchange losses.
The Troubled Company Reporter - Asia Pacific reported on April
5, 2006, that for 2005, National Power posted a PHP16-million
profit for the first time in seven years, on the Energy
Regulation Commission's approval of a rate increase, the use of
improved fuel mix and better fuel prices.
SAN MIGUEL CORP: CCBG President Denies Sales Overstatement
----------------------------------------------------------
The Coca-Cola Bottling Group, the soft beverage unit of San
Miguel Corporation, denies accusations made by a former officer
of one of the subsidiaries that the Group has overstated its
sales. CCBG is composed of:
* Coca-Cola Bottlers, Philippines, Inc.;
* Cosmos Bottling Corporation; and
* Philippine Beverage Partners, Inc.
Roberto N. Huan, president of CCBG, says the accusations made by
a former officer of Cosmos Bottling Corporation are completely
false and are without factual basis. Mr. Huang states that the
accusations, which were first made in January 2005, were
immediately acted upon by the management and fully investigated
by CBC's audit committee.
The Audit Committee, chaired by an independent director,
consulted independent external auditors and outside legal
counsel to help its inquiry.
Mr. Huang says a report from the company's Audit Committee found
no factual basis for the allegation that CCBG's warehouse system
was set up to overstate sales.
"It could just well be that the accuser was complaining that the
sales targets set were too aggressive. In fact, in their
deliberations, this same observation was cited by Committee
members," Mr. Huang relates.
According to Mr. Huang, "under the previous warehousing system
cited by the former CBC officer, wholesalers and dealers were
expected to take on volumes of goods higher than that to which
they were originally accustomed."
Mr. Huang explains that "the CBC warehousing system was a
transitional sales and distribution strategy intended to develop
the capabilities of dealers who could handle and dispose of
large volumes of goods effectively and promptly."
About San Miguel Corp.
Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,
operates food, beverage and packaging businesses. The Company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products. San Miguel markets its
products both in the domestic and overseas markets. The Company
also manufactures glass, metal, plastic, paper and composites
packaging products.
A Troubled Company Reporter - Asia Pacific report on Oct. 12,
2006, stated that Moody's Investors Service affirmed its Ba1
corporate family rating.
Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.
UNION BANK: Board Appoints M. Garcia as Trust Officer
-----------------------------------------------------
In a disclosure with the Philippine Stock Exchange, Union Bank
of the Philippines advises that on the recommendation of the
Trust Committee, the bank's board of directors approved the
appointment of Michael Jack B. Garcia, First Vice-President, as
Union Bank's Trust Officer, effective November 24, 2006.
About UnionBank
Union Bank of the Philippines -- http://www.unionbankph.com/--
offers a wide range of products and services to both corporate
and individual clients. Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance. It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.
Moody's Investors Service gave UnionBank a 'Ba3' Senior
Unsecured Debt and Long-Term Bank Deposits Ratings effective May
25, 2006.
UNITED COCONUT: Prepares to Sell PHP20-Bln of its NPA in 2007
-------------------------------------------------------------
United Coconut Planters Bank prepares to sell PHP20 billion of
its non-performing assets through a Special Purpose Vehicle in
2007, Maricel E. Burgonio of Manila Times reports.
The assets to be sold will consist of about PHP6.29 billion in
non-performing loans and about PHP13.75 billion of real and
other properties acquired, the report reveals.
If successful, the bank's remaining bad assets would go down to
PHP7.8 billion, of which PHP5.4 billion are large tracts of raw
land that are already covered by land development agreements
with five property developers, Manila Times says.
In a statement, UCPB President Jose L. Querubin said the lender
has tapped global accounting firm Ernst & Young as financial
advisor for the sale, the paper relates.
According to Manila Times, under a 10-year financial assistance
agreement signed with the Philippine Deposit Insurance Corp.,
UCPB is required to clean up its balance sheet.
Mr. Querubin said the lender expects to sell its second batch of
bad assets by the second or third quarter of 2006, Manila Times
relates.
Manila Times recounts that in 2005, UCPB sold PHP11.5 billion of
its bad loans to Avenue Asia Special Situation Fund, through
which the bank reduced its bad-asset level to PHP28.9 billion
from a high of PHP41.3 billion in December 2002.
Manila Times cites Mr. Querubin, as saying the bank's bad assets
are projected to go down to PHP27.8 billion by the end of 2006.
"We have been getting a lot of offers for our remaining NPA on a
retail basis, but we want to dispose of them in bulk via the SPV
to take full advantage of the tax incentives offered under the
law, which will expire in 2008," Mr. Querubin said.
He added that the bulk sale will also save the bank around
PHP150 million a year in costs related to maintaining the bad-
loan collateral. The sale will also generate substantial cash,
thus reducing these assets' earnings drag.
Mr. Querubin said UCPB is already working with clients burdened
with PHP7.1 billion in problem accounts to ensure these remain
current. Barring positive results, the bank plans to include
these accounts among those to be sold next year.
About UCPB
United Coconut Planters Bank -- http://www.ucpb.com/-- is a
leading provider of financial products and services to
corporations, middle market companies, small- and medium- sized
businesses, and consumers in the Philippines. Established in
1963 as a commercial bank, UCPB grew to become the first private
Philippine universal bank in 1981, enabling it to invest in non-
allied businesses. Today, the UCPB group ranks among the
largest financial services group in the country.
UCPB offers a full range of expanded commercial banking
services. The bank has strong capabilities in corporate
banking, commercial credit, international trade financing,
treasury and money market operations, trust banking and consumer
financing.
Moody's Investors Service gave United Coconut Planters Bank a
Bank Financial Strength Rating of E and its Long Term Bank
Deposits a B1 rating effective May 5, 2003.
=================
S I N G A P O R E
=================
BESTGROWTH HOLDINGS: Creditors Must Prove Claims by Dec. 8
----------------------------------------------------------
Tay Swee Sze, as liquidator for Bestgrowth Holdings Pte Ltd,
requires the creditors of the company, which was placed under
compulsory liquidation, to submit their proofs of debt by
December 8, 2006.
Failure to submit a proof of debt by the due date will exclude a
creditor from sharing in the company's distribution of dividend.
The company's liquidator can be reached at:
Tay Swee Sze
137 Telok Ayer Street #04-01
Singapore 068602
EXABYTE CORP: Closes US$22 Million Asset Sale to Tandberg Data
--------------------------------------------------------------
Exabyte Corporation completed the sale of substantially all of
its assets to Tandberg Data Corp. for a total consideration of
approximately US$22,004,000 in cash and the assumption of the
Assumed Liabilities.
As reported in the Troubled Company Reporter on Sept. 1, 2006,
Exabyte Corporation has entered into an Asset Purchase Agreement
with Tandberg Data Corp., a wholly owned subsidiary of Tandberg
Data ASA, a company organized under the laws of Norway and
headquartered in Oslo, Norway. Tandberg will purchase
substantially all of the assets of the Company in exchange for
cash and the assumption of certain liabilities.
The cash purchase price and payment to the Company at closing
consisted of:
-- the outstanding principal balance and accrued interest of
US$9,614,000 under the loan agreement with Wells Fargo
Business Credit, Inc.;
-- the repayment obligations under the Convertible Notes
Restructuring Agreements with the holders of the Company's
10% Secured Subordinated Convertible Notes;
-- the payment obligation under the Amendment No. 1 to the
Debt Restructuring Agreement with Solectron Corporation
(US$300,000);
-- the payment obligation under the Second Amendment to the
Memorandum of Understanding with Hitachi, Ltd.
(US$2,000,000);
-- the amount payable under the Note Restructuring Agreement
with Imation Corp. (US$1,000,000);
-- transaction fees paid at closing (about US$1,200,000); and
-- the cash balance to be retained by Exabyte subsequent to
closing (US$100,000).
It was a condition to the Agreement, the Company disclosed, that
the cash proceeds will be used to make payments for Assumed
Liabilities, which includes without limitation, substantially
all accounts payable and accrued expenses, all liabilities under
the Purchased Contracts, liabilities for warranty obligations
and liabilities related to products sold and/or services
performed, and new or restructured notes payable issued to
Imation and Hitachi, among others.
The company also disclosed that the material excluded
liabilities retained by Midgard consist of a note payable to a
former landlord in the amount of US$3,060,000, a Convertible
Note with a principal balance of US$50,000 and certain accounts
payable and accrued expenses in the amount of US$250,000, among
other liabilities. Midgard does not have any significant assets
remaining for the payment of the liabilities and have no assets
available for distribution to its common or preferred
stockholders. Midgard intends to liquidate and dissolve
immediately after the closing of the Transaction.
About Exabyte
Exabyte Corporation -- http://www.exabyte.com/-- manufactures
tape storage products. The company's products back up and
restore critical business information.
In Asia Pacific, the company is headquartered in Singapore, with
offices in Australia, China and Hong Kong.
The company's balance sheet at Dec. 31, 2005, showed total
assets of US$34,715,000, total liabilities of US$66,675,000 and
Series AA Convertible preferred stock of 38,931,000, resulting
in a US$70,891,000 stockholders' deficit.
Going Concern Doubt
Ehrhardt Keefe Steiner & Hottman PC expressed substantial doubt
about Exabyte Corporation and its subsidiaries' ability to
continue as a going concern after auditing the company's
consolidated financial statements for the years ended
Dec. 31, 2005, and 2004. The auditing firm pointed to the
company's recurring losses and accumulated deficit of
US$123,869,000.
HUA KOK: Proofs of Debt Due on Dec. 8
--------------------------------------
Tam Chee Chong and Wee Aik Guan, as liquidators for Hua Kok
Precast (Pte) Ltd, which is in liquidation, will be receiving
proofs of debt from the company's creditors until Dec. 8, 2006.
Failure to comply with the requirement will exclude a creditor
from sharing in the company's distribution of dividend.
The company's liquidators can be reached at:
Tam Chee Chong
Wee Aik Guan
c/o Deloitte & Touche
6 Shenton Way, #32-00
DBS Building Tower Two
Singapore 068809
INTERMEC INC: Earns US$3.4 Million in Third Quarter 2006
--------------------------------------------------------
Intermec Inc. reported 2006 third quarter revenues of
US$195.9 million and net earnings from continuing operations of
US$3.4 million, compared with 2005 third quarter revenues of
US$219.8 million and earnings of US$11.3 million.
The results for the current quarter include a restructuring
charge relating to the closure of Intermec's design centers in
Goteborg and Lund, Sweden, announced in the first quarter, which
negatively impacted operating profit by (US$1.8) million.
Intermec adopted amendments to its US pension and certain
employee plans, effecting a freeze" to benefit accruals for most
participants as of June 30, 2006. These changes resulted in a
net curtailment gain that positively impacted operating profit
from continuing operations in the current quarter by US$2.1
million, or US$.02 per diluted share. Intermec's 2006 third
quarter includes (US$0.8) million of incremental stock
compensation expense recorded under the provisions of FAS 123-R,
which negatively impacted EPS by (US$0.01) per diluted share.
The effective tax rate for the current-quarter was 37.2%,
compared with 12.4% in the prior-year quarter.
Intermec's third quarter 2006 revenue decreased 11%, compared
with the prior-year quarter. Geographically, North American
revenues decreased 14% over the comparable prior-year period.
Revenues in Europe, Mid-East and Africa decreased 17%; and the
rest of the world, consisting of Asia Pacific and Latin America,
increased 19%.
By product line during the third quarter, Intermec's Systems and
Solutions revenue decreased 20%, while Printer and Media
revenues increased 6% over the comparable prior-year period.
Service revenue decreased 3% over the comparable prior-year
period.
During the quarter Intermec repurchased stock with an
aggregative value of approximately US$50 million pursuant to its
board authorization of US$100 million, at an average share price
of US$28.77. The company's cash equivalents and short-term
investments position at the end of the third quarter was
US$237.7 million. The decrease in cash equivalents and short-
term investments of US$85.1 million during the third quarter was
primarily due to the stock repurchases and to the increase in
inventory.
Larry D. Brady, the chairperson and chief executive officer of
Intermec, said, "In response to disappointing results for the
third quarter, we are accelerating cost initiatives and
aggressively reducing inventory. We expect to announce specific
cost reduction plans and related restructuring activities before
the end of November."
Other Third Quarter Business Highlights
-- Intermec named Lanny H. Michael Senior Vice President and
Chief Financial Officer.
During the quarter, Intermec introduced an array of new
products:
-- The CN3, a small rugged mobile computer with unique
communications capabilities, provides users with access to
multiple voice and high-speed data options. The CN3 is
the first mobile computer to offer integrated GPS and
Bluetooth capabilities along with 3G WAN and Cisco
Compatible WiFi connectivity simultaneously in one device.
-- The Intellibeam EX25 is the first area imaging bar code
scan engine to read and decode 1D and 2D bar codes in any
orientation from six inches to over 50 feet, as well as
composite and postal codes. The EX25 can also operate as
an auto focusing camera in applications requiring
photographs such as evidence of damaged, expired or
unsealed goods.
-- The CV30 is a rugged, fixed-mount computer designed to
operate in challenging mobile vehicle based environments.
The CV30 offers a choice of Microsoft Windows CE.NET 5.0
or Windows Mobile 5.0 operating systems, multiple mounting
options, Cisco Compatible WiFi, Bluetooth and RFID
support.
Radio Frequency identification "RFID" was also a source of
highlights for the quarter:
-- Intermec received an award from Frost & Sullivan for RFID
market strategy leadership in the Asia Pacific market for
the years 2005-2006. The Frost & Sullivan Award for
Market Strategy Leadership is presented each year to a
company whose market strategy has yielded significant
gains in market presence during the research period.
-- Intermec was selected to provide the Gen 2 RFID bag tag
printer system for the Hong Kong International Airport or
HKIA in Hong Kong. The Intermec RFID Gen 2 printers will
be installed at check-in counters to enhance the existing
RFID baggage sorting system, which was first installed in
2005. HKIA is the first airport in the world to implement
an end-to-end RFID baggage tagging/sorting system.
Intermec announced Medallion Complete, a new world-class
extended service coverage program for Intermec data collection
equipment. Available in 14 countries around the world, Medallion
Complete covers eligible Intermec devices against incidental
damage experienced in the work environment. Under normal
industry practice, incidental damage to data collection
equipment -- as opposed to normal wear or component failure --
is not covered by standard service agreements. Repairs due to
damage are infrequent, but can be costly, as they typically
involve the most expensive components of a device, such as a
touch screen or LCD.
Fourth Quarter Outlook
Intermec also reported its GAAP basis revenue outlook for the
fourth quarter 2006. Revenues for the period are expected to be
within a range of US$210 million to US$230 million.
About Intermec Inc.
Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets. Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.
The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, United Kingdom and Singapore.
* * *
On Oct. 31, 2006, Moody's Investors Service confirmed its Ba2
Corporate Family Rating for Intermec Inc., as well as its Ba3
rating on the company's US$400 million Senior Unsecured Shelf in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology for the
U.S. manufacturing sector.
Those debentures were assigned an LGD5 rating suggesting
noteholders will experience an 85% loss in the event of default.
Standard & Poor's Rating Services raised its ratings on Everett,
Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade
reflects expectations that Intermec will sustain current levels
of profitability and leverage. S&P said the outlook is stable.
OVERSEAS SHIPHOLDING: Earns US$90.8 Million in 2006 3rd Quarter
---------------------------------------------------------------
Overseas Shipholding Group Inc. reported operating income of
US$94 million from consolidated revenue of US$265 million for
the quarter ended Sept. 30, 2006.
For the three months ended Sept. 30, 2005, the Company reported
operating income of US$84 million, from consolidated revenue of
US$203 million.
For the quarter ended Sept. 30, 2006, Time Charter Equivalent
revenues increased by 31% to US$254.8 million from
US$194.8 million in the third quarter of 2005. The Company
disclosed that the TCE revenue performance was the result of
strong rates across its VLCC, Aframax, Panamax and Handysize
Product Carrier fleets.
EBITDA for the third quarter was US$135.6 million compared with
US$135.4 million in the third quarter of 2005. Net income for
the quarter ended Sept. 30, 2006 was US$90.8 million, compared
with US$72.1 million, for the third quarter of 2005. The
current quarter benefited from gains on vessel sales and sale of
securities of US$15.8 million, compared with US$22.4 million, in
the same period a year ago. In addition, the current quarter
reflects the impact of a US$27 million increase in the reserve
related to the U.S. Department of Justice investigation.
For the first nine months ended Sept. 30, 2006, the Company
reported a 9% increase in TCE revenues to US$751.2 million from
US$690.5 million in the comparable period of 2005. EBITDA for
the first nine months of 2006 decreased to US$424.8 million from
US$535.1 million in the first nine months of 2005 and including
the increase in the reserve. Net income for the nine month
period ended Sept. 30, 2006 was US$279.4 million, compared with
US$351.1 million in the comparable 2005 period. The first nine
months of 2006 benefited from gains on vessel sales and sale of
securities of US$21.1 million, compared with US$60.7 million in
the comparable period of 2005.
Operating income was US$297 million from consolidated revenue of
US$787 million for the nine months ended Sept. 30, 2006, versus
operating income of US$389 million from consolidated revenue of
US$716 million for the comparable period in 2005.
Morten Arntzen, president and chief executive officer, stated,
"Third quarter TCE revenues were largely the result of a strong
spot rate environment in both the crude and product
transportation sectors and additions to our product carrier
fleet. The increase in operating income before gains and
special charges reflects the benefits from OSG's diverse fleet
and chartering strategy."
Mr. Arntzen continued, "Our objective to achieve a market
leadership position in the U.S. Flag sector will be realized
upon the completion of the Maritrans acquisition. This is
another example of our ongoing efforts to transform OSG, which
began nearly three years ago. Our shareholders will continue to
benefit from OSG's leadership position, fleet diversification
and spot/time-charter mix that will ensure competitive returns
not only in a strong rate environment but throughout all market
cycles."
TCE revenues in the third quarter of 2006 for the International
Crude Tanker segment were US$175.9 million, an increase of 42%
quarter-over-quarter, which were partially offset by a decrease
in revenue days for VLCCs as a result of increased drydocking
and repair days and the sale of three older Aframax tankers.
TCE revenues for the International Product Carriers segment
increased 25% to US$55 million from US$44.2 million in the prior
year. Its U.S. segment TCE revenues decreased 7% quarter-over-
quarter to US$19 million from US$20.4 million in the same period
a year ago.
Income from vessel operations was US$88.9 million in the third
quarter of 2006, compared with US$82.9 million in the same
period a year earlier. For the quarter ended Sept. 30, 2006,
total ship operating expenses increased US$56.6 million to
US$176.9 million from US$120.3 million in the corresponding
quarter in 2005, of which US$27 million relates to the reserve
taken for the U.S. Department of Justice investigation.
Financial Profile
At Sept. 30, 2006, the Company's shareholders' equity increased
by US$242.1 million to US$2.1 billion and liquidity, including
undrawn bank facilities, increased to more than US$2.27 billion.
Total long-term debt as of Sept. 30, 2006 was US$799.4 million
compared with US$965.7 million at Dec. 31, 2005. Liquidity
adjusted debt to capital was 9.7% as of Sept. 30, 2006, an
improvement from 24.5% as of Dec. 31, 2005.
The company further disclosed that, in 2004 and the first
quarter of 2005, it made provisions totaling US$10 million for
anticipated fines and contributions to environmental protection
programs associated with a possible settlement of the U.S.
Department of Justice investigation. In the third quarter of
2006, the Company, based on discussions with the U.S. Department
of Justice that resumed in August 2006, made an additional US$27
million provision.
About Overseas Shipholding
Headquartered in New York, U.S.A., Overseas Shipholding Group,
Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest
publicly traded tanker companies in the world with an owned,
operated and newbuild fleet of 117 vessels, aggregating 13.0
million dwt and 865,000 cbm, as of June 30, 2006. As a market
leader in global energy transportation services for crude oil
and petroleum products in the U.S. and International Flag
markets, the company is committed to setting high standards of
excellence for its quality, safety and environmental programs.
OSG is recognized as one of the world's most customer-focused
marine transportation companies, with offices in New York,
Athens, London, Newcastle and Singapore.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
August 14, 2006, Moody's Investors Service affirmed the debt
ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured
at Ba1. The outlook has been changed to stable from negative.
PACIFIC CENTURY: Denies Solicitation of Votes against Share Sale
----------------------------------------------------------------
On Nov. 25, 2006, Pacific Century Regional Developments Limited
released a press statement alleging that it did not solicit or
secure proxies to vote against the shares sale of PCCW Limited
to Fiorlatte Limited.
The report cites Pacific Century as denying that it has
solicited proxies to vote against the shares sale and adding
that the assertions in the media reports are without foundation.
In a report by South China Morning Post on Nov. 25, 2006, it was
quoted through some sources that Pacific Century had secured
sufficient votes from minority shareholders to reject the
proposal to sell its 23% controlling stake in PCCW to a
consortium led by Leung, according to the Yahoo News.
Pacific Century disclosed that minority shareholders should
decide independently and in their own best interests on how to
vote the share sale at a shareholders' meeting that will be held
on Nov. 30.
Moreover, the company also confirmed that it has taken all
necessary steps to insure that there is no leak of information
about proxies received prior to the voting and it has satisfied
and complied all the applicable laws in Singapore and Hong Kong.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 20, 2006, Pacific Century intends to sell to Fiorlatte --
1,526,773,301 ordinary shares of HK$0.25 each in the share
capital of PCCW representing approximately 22.65% of the issued
share capital of PCCW.
The Singapore Stock Exchange Limited has also prohibited the
relevant parties including Richard Li Tzar Kai from voting in
the sale shares.
For inquiries, please call:
Brunswick Group
Telephone: +852 3512 5000
About Pacific Century
Pacific Century Regional Developments Limited is a Singapore
based company with operations in Hong Kong, China, Vietnam and
India. The group's principal activities include the provision of
international, local and mobile telecommunications services.
Other activities include sale and rental of telecommunication
equipment, provision of life insurance services, investment in
and development of infrastructure and properties, investment in
and development of technology-related businesses, Internet and
interactive multimedia services, provision of computer,
engineering and other technical services, and hotel operations.
* * *
The Troubled Company Reporter - Asia Pacific reported that the
company has remained insolvent for the two consecutive years
from April 2005 up to the present.
According to a TCR-AP report on Nov. 17, 2006, the company has a
US$107.11 million shareholder's deficit on total assets of
US$1.381 billion.
PETROLEO BRASILEIRO: Production Increases 1.6% in October
---------------------------------------------------------
Petroleo Brasileiro said in a statement that it produced about
1.96 million barrels per day of oil at home and abroad in
October 2006, which is 1.6% more than the 1.93 million barrels
per day produced in September 2006.
Business News Americas relates that Petroleo Brasileiro's
domestic production increased 1.8% to 1.82 million barrels per
day in October 2006, from 1.79 million barrels per day in
September 2006. International output decreased 1.3% to 137,700
barrels per day from 139,600 barrels per day.
Petroleo Brasileiro told BNamericas that its domestic production
was 5.7% higher in October 2006, compared with October 2005.
Its international output was 10% lower.
Increased production indicates higher output in the Albacora
Leste field, due to three new producing wells, BNamericas says,
citing Petroleo Brasileiro.
Albacora Leste is in Campos, Brazil's most prolific oil basin.
BNamericas underscores that in the first 10 months of 2006,
Petroleo Brasileiro's average daily production increased 3.5% to
1.91 million barrels per day, from 1.85 million barrels per day
for the rest of 2005.
The report says that Petroleo Brasileiro's average production,
including natural gas, increased 1.6% to 2.34 million barrels of
oil equivalent per day in October 2006, from 2.31 million
barrels of oil equivalent per day in September 2006 and 4.7%
from 2.24 million barrels of oil equivalent per day in October
2005.
Petroleo Brasileiro told BNamericas that its natural gas
production average grew 4.4% to 44.8 million cubic meters per
day, compared with the 42.9 million cubic meters per day
recorded in September 2006. This is due to higher domestic
demand for the fuel.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras --
http://www2.petrobras.com.br/ingles/index.asp-- was founded in
1953. The company explores, produces, refines, transports,
markets, distributes oil and natural gas and power to various
wholesale customers and retail distributors in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PLASWERKZ MANUFACTURING: Court Orders to Wind Up Operations
-----------------------------------------------------------
United Overseas Bank Limited has filed an application to wind up
Plaswerkz Manufacturing Pte Ltd.
The High Court of Singapore, on Nov. 17, 2006, entered an order
directing Plaswerkz Manufacturing to wind up its operations.
In this regard, the creditors of Plaswerkz Manufacturing are
required to submit their proofs of debt to the company's
liquidator.
The liquidator can be reached at:
The Official Receiver
Insolvency & Public Trustee's Office
URA Centre (East Wing)
45 Maxwell Road #05-11 & #06-11
Singapore 069118
SEA CONTAINERS: U.K. Regulator May Issue Financial Directions
-------------------------------------------------------------
The United Kingdom Government Pensions Regulator has warned Sea
Containers Ltd. and its debtor-affiliates that it is considering
the exercise of its power to issue financial support directions
to the Company, Ian C. Durant, vice president for finance and
chief financial officer of Sea Containers, Ltd., disclosed in a
regulatory filing with the United States Securities and Exchange
Commission
dated Oct. 30, 2006.
Mr. Durant said the FSDs will be under relevant UK pensions
legislation, in respect of the Sea Containers 1983 Pension
Scheme and the Sea Containers 1990 Pension Scheme, which are
multi- employer defined benefit pension plans of Sea Containers
Services Ltd.
According to Mr. Durant, if FSDs are issued, SCL may be liable
to make a financial contribution to the Schemes that may be
greater than the sum payable by SCL under the terms of a 1989
support agreement with Sea Containers Services. Pursuant to the
Support Agreement, Sea Containers Services provides
administrative services to SCL and other subsidiaries, and is
indemnified by SCL for the cost of its services.
Mr. Durant said the trustees of the Schemes or their actuary
advised SCL that their current estimates of the cost of winding
up the Schemes, including the cost of purchasing annuities to
pay projected benefit obligations to Scheme participants, would
be US$201,000,000 for the 1983 Scheme and US$51,000,000 for the
1990 Scheme. Because the Schemes are multi-employer plans, the
liabilities under them are shared among the participating
companies, Mr. Durant added.
SCL Disputes Warning
Tom Burroughes of Reuters reports that SCL believes there was no
need for the UK Regulator's warning as the Company is currently
in talks with the UK Pension Funds.
"They (pension fund members) will be ranked on an equal footing
with bondholders and other creditors. We are keen to let these
discussions play out," an Sea Containers spokeswoman told
Reuters.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SEA CONTAINERS: Wind-Up Petition Hearing Scheduled on December 1
----------------------------------------------------------------
The Supreme Court of Bermuda will hear on Dec. 1, 2006, a
petition to wind up the business of Sea Containers Ltd., which
was presented by the company on October 16.
Any creditor or shareholder of Sea Containers desiring to
support or oppose the making of an order on the petition may
appear at the time of the hearing in person or by counsel for
that purpose.
A copy of the petition will be sent to all creditors and
shareholders of the company.
Parties-in-interest who want to attend the hearing must inform
Sea Containers' counsel of their intention to do so at:
Appleby Hunter Bailhache
Canon's Court, 22 Victoria Street
Hamilton, HM 12, Bermuda
Those who intend to appear at the hearing must serve notice not
later than 4:00 p.m. on Nov. 30, 2006.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
TELONIX. NET: High Court Sets Wind-Up Hearing for Dec. 8
--------------------------------------------------------
On Nov. 15, 2006, Heinz-Joachim Marx has filed a wind-up
petition against Telonix. Net Pte Ltd.
Accordingly, the High Court of Singapore will hear the wind-up
petition on Dec. 8, 2006, at 10:00 a.m.
Heinz-Joachim's solicitor can be reached at:
Gomez & Vasu
20 Kramat Lane
#04-12 United House
Singapore 228773
===============
T H A I L A N D
===============
BANK OF AYUDHYA: Plans to Increase Shares in Ayudhya Fund
---------------------------------------------------------
Bank of Ayudhya, in a disclosure statement filed with the Stock
Exchange of Thailand, revealed a plan to increase its shares in
Ayudhya Fund Management Co Ltd.
Tinnawat Mahatharadol, first executive vice president of Bank of
AyudhyaY, said that it is planning to purchase 100,000 shares or
6.67% of Ayudhya Fund's paid-up capital in The Ayudhya Insurance
Public Company Ltd at the price of THB17.39 per share, totaling
THB1,739,000.
"In case that Ayudhya Insurance agrees to sell the
aforementioned shares to us, we expect to settle this
transaction by December 29, 2006," Mr. Tinnawat said.
Currently, the Bank holds an aggregate amount of 1,149,997
ordinary shares or 76.67% of Ayudhya Fund's paid-up capital.
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
* * *
Moody's Investors Service gave Bank of Ayudha an 'E+' bank
financial strength rating.
Fitch Ratings gave the bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating, a 'B' Short-Term Foreign Currency Rating,
a 'BB' Foreign Currency Subordinated Debt Rating, and a 'D'
Individual Rating.
BANGKOK BANK: Plans to Sell THB5-Billion Short Term Bond
--------------------------------------------------------
Bangkok Bank Pcl disclosed its planned THB5 billion five-month
bonds offering to the public to be made between November 27,
2006, and December 1, 2006, Reuters reports.
The short-term bonds, rated "F1+ (tha)" by Thailand's Fitch
rating, had a coupon rate of 4.625%, Reuters relates citing the
bank's statement.
Bangkok Bank said that the coupon rate is a higher return than
fixed deposits, with its six-month deposit rate now at 3.5% to
4.25%.
Analysts told Reuters that the bonds should help Babgkok Bank
win over customers in a highly competitive market as other fund
firms were drawing depositors by offering attractive returns
since late October.
Headquartered in Bangkok -- http://www.bangkokbank.com/--
Bangkok Bank is Thailand's largest bank, with total assets of
THBB1.498 trillion (US$39 billion) at end-June 2006.
Moody's Investors Service has upgraded on August 29, 2006,
Bangkok Bank's bank financial strength rating to D+ from D and
was re affirmed on September 20, 2006, following the military
coup in Thailand.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Fitch Ratings affirmed Bangkok Bank's Individual
rating at C.
BLOCKBUSTER INC: CEO Raises Holdings, Co. Shares Up 52-Week High
----------------------------------------------------------------
Blockbuster Inc.'s chairman of the board and chief executive
officer, John F. Antioco, bought Tuesday 220,000 shares of the
company's Class A common stock, bringing his holdings to a total
of 1,100,460, according to a regulatory filing with the
Securities and Exchange Commission.
The company's shares rose to a 52-week high after Mr. Antioco
raised his holdings. Analysts said the surge signal confidence
in the company.
Analysts also said that the stock rose higher because the
company is selling non-core assets in Taiwan.
A Taiwan-based Web site DigiTimes.com reported that the company
is selling 89 stores in Taiwan to Webs-TV Digital International
Co. Ltd. for an undisclosed amount.
Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia. The company also operates
in Thailand, Taiwan and New Zealand.
The Troubled Company Reporter on Oct. 11, 2006, reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its B3 Corporate Family Rating for Blockbuster
Inc.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ---------
US$500 million
Sr. Sec. Revolving
Credit Facility B3 B1 LGD2 25%
US$100 million
Senior Secured
Term Loan A B3 B1 LGD2 25%
US$550 million
Senior Secured
Term Loan B B3 B1 LGD2 25%
US$300 million
9% Sr. Sub. Notes Caa3 Caa2 LGD5 86%
BLOCKBUSTER INC: Ties with Papa John on New Movie Rental Promo
--------------------------------------------------------------
Papa John's International Inc. customers can get unmatched
access to movies free for a 14-day trial period through a new
alliance with Blockbuster Inc. thru BLOCKBUSTER Total
Access(TM).
Customers who sign-up online at http://www.papajohns.com/for
the new Blockbuster online movie rental program will also
receive a free US$10 Papa Card for use toward their next
purchase of Papa John's pizza, side items, or beverages.
BLOCKBUSTER Total Access is a new rental program that gives
online subscribers unprecedented access to movies. It provides
online customers the option of returning their DVDs through the
mail or exchanging them at one of more than 5,000 participating
Blockbuster stores for free in-store movie rentals. For each
online rental exchanged in the store, customers can receive a
free in-store movie rental. In-store movies are still subject
to store rental terms, including due dates, and must be returned
to the store from which they were rented.
"Pizza and movies are an irresistible combination," Papa John's
International Inc. vice president of partnership development
Sean Muldoon said.
"Papa John's delivers pizza to the door, and in addition to its
extensive store network, Blockbuster delivers DVDs to the
mailbox and it is all done online from the comfort of your own
home. And, we're upping the ante by offering a US$10 Papa Card
during the busy holiday season to customers who sign up for the
rental program through http://www.papajohns.com/"
As Papa John's online business continues to grow, increasing by
more than 50% year-over-year in 2006, continued special
offerings to online customers are a win-win for the company and
its customers. Recent online small group research shows that
more than 70% of Papa John's customers are eating pizza while
watching DVDs at least once a month providing further incentive
to implement the popular pizza and a movie concept.
"We've enjoyed working with Papa John's in the past and we look
forward to increasing our awareness of BLOCKBUSTER Total Access
with their customer base through this new alliance," Blockbuster
chief marketing officer Curt Andrews said.
"Pizza and a movie are a great mix and now, when a customer's
favorite pizza is delivered they can already have a movie ready
to watch, whether it was delivered through our online service or
something they picked up from one of our stores. Only
BLOCKBUSTER Total Access can offer online customers the
convenience and selection of the more than 60,000 titles
available online coupled with the ability to immediately
exchange their online movies for free in-store rentals."
Facts About http://www.papajohns.com/
* Papa John's is the only national pizza chain with online
ordering available from all of its U.S. restaurants.
* Papajohns.com features 24/7 plan-ahead ordering, allowing
orders to be placed online up to 21 days in advance.
* A "repeat last order" function allows customers to enter
their last order with only a few keystrokes.
* Papa John's recently made papajohns.com online ordering
available in Spanish.
Papa John's and Blockbuster Alliance
* Blockbuster has been featured for a limited-time only on
Papa John's pizza boxes.
* Papa John's and Blockbuster team to provide BLOCKBUSTER
Total Access and US$10 Papa Card to subscribers.
About Papa John's
Louisville, Ky.-based Papa John's International Inc. (NASDAQ:
PZZA) -- http://www.papajohns.com/-- is the world's third
largest pizza company. For seven years running, consumers have
rated Papa John's No. 1 in customer satisfaction among all
national QSR chains in the highly regarded American Customer
Satisfaction Index.
About Blockbuster
Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia. The company also operates
in Thailand, Taiwan and New Zealand.
The Troubled Company Reporter on Oct. 11, 2006, reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its B3 Corporate Family Rating for Blockbuster
Inc.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$500 million
Sr. Sec. Revolving
Credit Facility B3 B1 LGD2 25%
US$100 million
Senior Secured
Term Loan A B3 B1 LGD2 25%
US$550 million
Senior Secured
Term Loan B B3 B1 LGD2 25%
US$300 million
9% Sr. Sub. Notes Caa3 Caa2 LGD5 86%
Fitch Ratings has affirmed Blockbuster Inc.'s Issuer default
rating at 'CCC'; Senior secured credit facility rating at
'CCC/RR4'; and Senior subordinated notes rating at 'CC/RR6'.
FEDERAL-MOGUL: Court Places Insurers' Lift Stay Motion On Hold
--------------------------------------------------------------
The Honorable Joseph H. Rodriguez, Senior U.S. District Court
Judge for the District of Delaware, granted the request of
certain insurers of Federal-Mogul Corporation and directed the
Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for
the District of Delaware, to place the insurers' request to lift
the automatic stay off the Bankruptcy Court's calendar pending
determination by the District Court of the Insurers' request to
withdraw the reference of the Lift Stay Motion.
In a separate order, Judge Fitzgerald ruled that the Insurers'
request to lift the automatic stay to commence a state court
insurance coverage action constitutes a core proceeding.
Federal-Mogul Products Inc., with the Insurers' consent,
previously filed with the Bankruptcy Court, an agreed proposed
order, which provided that hearings on the Lift-Stay Motion will
be taken off the calendar pending resolution of the Insurers'
Withdraw-Reference Motion. The Insurers ask Judge Fitzgerald to
reconsider the Modified Agreed Order and enter, instead, the
original Agreed Order to allow the Withdraw-Reference Motion to
be addressed in due course by the U.S. District Court for the
District of Delaware, as contemplated by 28 U.S.C. Section
157(d).
Brian L. Kasprzak, Esq., at Marks, O'Neill, O'Brien and
Courtney, P.C., in Wilmington, Delaware, asserted that
scheduling the Lift-Stay Motion for hearing in the Bankruptcy
Court before the District Court even addresses the merits of the
Withdraw-Reference Motion means that the Bankruptcy Court is
intruding on the District Court's prerogative to determine
whether particular matters in a bankruptcy case ought to be
decided by the District Court rather than the Bankruptcy Court.
Mr. Kasprzak also pointed out that by addressing the Lift-Stay
Motion separately from the District Court's consideration of the
Insurers' Abstention Motion the Bankruptcy Court creates the
very risk of inconsistent rulings and resultant judicial
inefficiency that the Withdraw-Reference Motion seeks to avoid.
Furthermore, Mr. Kasprzak argued that implementation of the
Modified Agreed Order will upset an agreement among the parties
to an adversary proceeding commenced by DII Industries, LLC,
against F-M Products.
"A court ought to be reluctant to unravel a negotiated
scheduling agreement reached at arm's-length by litigation
adversaries, unless manifest injustice would result from the
parties' agreement," Mr. Kasprzak notes. "Surely, no injustice
would result from approving a negotiated arrangement
specifically designed to permit the District Court to exercise
discretion granted it by Congress to decide if the Lift-Stay
Motion should be decided by that Court in tandem with the
Abstention Motion, or separately by [the Bankruptcy] Court."
Insurers Tackle F-M Products' Responses
It is apparent from F-M Product's response to the Insurers'
Motions that it agrees that coverage litigation ought to proceed
now in a state court, Mr. Kasprzak tells Judge Fitzgerald.
Mr. Kasprzak says F-M Products' argument against the Lift-Stay
Motion boils down to "a contention that a debtor should be
permitted to manipulate the automatic stay for tactical forum-
shopping purposes in order to gain an artificial litigation
priority over its adversaries." The Debtor argues that the
Insurers' proposed New York action is no longer necessary,
because it already filed a coverage suit in New Jersey state
court, making the New York action duplicative.
Mr. Kasprzak contends that the basic premise of the Debtor's
argument is wrong, because "courts do not allow a debtor to use
the automatic stay as a sword rather than a shield."
Accordingly, the Insurers want the Debtor's objection to the
Lift-Stay overruled.
"The courts of New York and New Jersey should be allowed to sort
out which case proceeds," Mr. Kasprzak says.
Mr. Kasprzak notes that even if the law did permit F-M Products
to misuse the stay, its claim that the New Jersey action is an
adequate substitute for the insurance companies' proposed New
York action ignores the fact that there are other claimants to
the insurance policies besides the Debtor who would be parties
to the New York action, but cannot be joined to the New Jersey
action because of the automatic stay. Unlike the insurance
companies' proposed New York suit, the Debtor's New Jersey
action cannot comprehensively resolve the parties' coverage
disputes, Mr. Kasprzak explains.
Compagnie Europeenne D'Assurances Industrielles support the
Insurers' position.
F-M Products Wants Lift-Stay Motion Denied
F-M Products asks the Bankruptcy Court to deny the Insurers'
Lift-Stay request because there is no longer any plausible
ground for filing a lawsuit in New York state court.
James E. O'Neill, Esq., at Pachulski, Stang, Ziehl, Young, Jones
& Weintraub LLP, in Wilmington, Delaware, informs the Bankruptcy
Court that F-M Products filed its own coverage action in the
Superior Court of New Jersey seeking to establish (i) scope of
property that belongs to its bankruptcy estate and (ii) coverage
rights as an insured party. He points out that F-M Products'
true position is as "plaintiff," hence, F-M Products has
exercised its rights to choose the appropriate state court
forum.
"The New Jersey Superior Court is the appropriate state court
forum because New Jersey has the most substantial relationship
to relevant parties and events during all of the years at
issue," Mr. O'Neill tells Judge Fitzgerald.
To the extent that the District Court refuses to abstain from
hearing an adversary proceeding originally filed by Dresser
Industries, Inc., against F-M Products, as well as a group of
approximately 70 insurers, there will be never be a need for
anyone to file any lawsuit in New York in connection with the
disputed coverage issues, Mr. O'Neill notes. The coverage
disputes will have to be resolved in the District Court, he
points out.
In addition, to the extent that the District Court does abstain
and the parties resume their fight in New Jersey Superior Court,
then any insurers that are dissatisfied with F-M Products'
choice of forum will be able to seek dismissal of the New Jersey
Action on the grounds of forum non-conveniens, Mr. O'Neill
explains.
Only if a dismissal is granted would the insurers have any
legitimate basis for seeking to drag F-M Products -- a debtor
with limited resources -- into another state court, Mr. O'Neill
contends.
Withdraw-Reference Motion Should Also Be Denied
F-M Products also ask Judge Fitzgerald to deny the Insurers'
request to withdraw the reference of the Lift-Stay Motion from
the Bankruptcy Court because the issues raised are "basic
bankruptcy law questions that are best considered and decided by
[a] bankruptcy court, which specializes in bankruptcy law and is
familiar with [F-M Products'] financial condition and
reorganization efforts."
Considering F-M Products' filing of its New Jersey Action, F-M
Products maintains that it does not oppose discretionary
abstention in the Adversary Proceeding except as to "corporate
successorship" issue, which has been fully briefed and is ripe
for decision.
Certain Underwriters of Lloyd's, London and London Market
Companies; Employers Mutual Casualty Company; European
Reinsurance Company of Zurich; and Swiss Reinsurance Company
support the Insurers' Withdraw-Reference Motion.
The Underwriters, et al., believe that failure to withdraw the
reference could result in inconsistent rulings by the District
and Bankruptcy Courts.
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's
largest automotive parts companies with worldwide revenue of
some US$6 billion. In the Asian Pacific region, the company has
operations in Malaysia, Australia, China, India, Japan, Korea
and Thailand.
The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No.01- 10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue
No. 119; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000).
FEDERAL-MOGUL: Judge Fitzgerald Denies Lloyd's Discovery Plea
-------------------------------------------------------------
The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court
for the District of Delaware denied, without prejudice, the
discovery request filed by certain Underwriters at Lloyd's,
London, and certain London Market Companies.
The underwriters sought to examine The Travelers Indemnity
Company and Travelers Casualty and Surety Company concerning
certain Vellumoid and Fel-Pro Claims.
As reported in the Troubled Company Reporter on Oct. 11, 2006,
certain underwriters at Lloyd's, London, and Certain London
Market Companies obtained permission from the Bankruptcy Court
to file a reply to The Travelers Indemnity Company and Travelers
Casualty and Surety Company's objection to the Underwriters'
request for discovery concerning Vellumoid and Fel-Pro Claims.
The Travelers Objection has been filed under seal because
Travelers obtained information from American Standard Inc. v.
Admiral Insurance Co., et al., pending in the Superior Court of
New Jersey, which is purportedly subject to a protective order
and mediation protocol.
Among others, Travelers argued that the Underwriters' discovery
request was drawn from certain confidential information provided
in the American Standard Case.
* * *
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's
largest automotive parts companies with worldwide revenue of
some US$6 billion.
In the Asian Pacific region, the company has operations in
Malaysia, Australia, China, India, Japan, Korea and Thailand.
The company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue
No. 114; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
KRUNG THAI: Joins 3 Other Banks in THB10-Bil. SME Project
---------------------------------------------------------
Krung Thai Bank joined three other commercial banks in setting
aside THB10 billion to finance programs for small businesses to
upgrade their machinery, The Bangkok Post reports.
Joining Krung Thai in the joint investments program are:
1. Bangkok Bank;
2. Thai Commercial Bank; and
3. Bank of Ayudhya.
Final details are now being worked out and the fund is expected
to become operational early next year, The Post says, citing
Jhitraporn Techacharn, director-general of the Office of Small
and Medium Enterprises Promotion.
The Post adds that OSMEP will also earmark THB300 million to
subsidize 2% interest from commercial loans to help lower the
financial costs of small businesses.
The fund, according to the newspaper, will be used for the
second phase of the SME development program between 2007 and
2011, aiming to encourage small businesses to reduce their
costs, increase production efficiency, upgrade product quality,
raise productivity and expand product lines to ensure their
competitiveness.
In addition, Ms. Jhitraporn also told The Post that her office
would also set up another THB900 million fund to finance five
programs in collaboration with the Federation of Thai
Industries.
The collaboration program includes:
* matchmaking between sellers and suppliers;
* logistics development to cut costs;
* upgrading the fashion, rubber and printing industries;
* setting up entrepreneur development centres nationwide;
and
* establishing networks for SMEs.
FTI will manage the five programs and prepare operating plans to
begin next year, The Post relates. Most of the funds will be
spent on training and workshops for SME operators.
Another fund worth THB50 million will be used for training small
businesses about intellectual property rights and financing
rights registration, the newspaper adds.
Furthermore, a venture capital fund set up to co-venture with
small businesses will receive THB1 billion next year.
Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/
-- began its operation on March 14, 1966, through the merger of
business between the Agricultural Bank Limited and the
Provincial Bank Limited with the Ministry of Finance as its
major shareholder.
The Bank provides financial assistance to large and small
business, it also renders financial assistance to other state
enterprises, both business-oriented and public utility types.
Currently the bank is operating 511 domestic and 12 foreign
branches and representative offices.
Fitch Ratings, on September 12, 2006, affirmed the individual
C/D rating of Krung Thai Bank Public Company Limited.
The bank currently carries Moody's Investors Service's bank
financial strength rating of D.
NAKORNTHAI STRIP: Rehab Planner Registers Change of Directors
-------------------------------------------------------------
On November 21, 2006, Maharaj Planner Co Ltd -- as plan
administrator for Nakornthai Strip Mill Pcl -- registered the
change of directors and authorized directors in Nakornthai
before Thailand's Department of Business Development, Ministry
of Commerce.
Change of Directors
Outgoing Incoming
-------- --------
1. Sawasdi Horrungruang 1. Pichai Jirangsunsuk
2. Pichai Jirangsunsuk 2. Seiji Inoue
3. Christopher Charles 3. Pol.Gen.Sunthorn Saikwan
Sherriff Harborne
4. Abinash Majhi 4. Noppakorn Santinarapan
5. Asst.Prof.Raveewan 5. Nutapol Pornpongchotivit
Peyayopanakul
6. Asso.Prof.Wasant Pongsapich 6. Nithus Wattanakul
7. Punnee 7. Supaporn Suthiprarop
Worawuthichongsathit
8. Pattama Horrungruang 8. Athitaya Suthatham
9. Don Bhasavanich 9. Visa Rojanavanich
Change of Authorized Directors
The outgoing authorized directors entitled to sign for the
company:
* Sawasdi Horrungruang, signing jointly with:
-- Pattama Horrungruang; or
-- Don Bhasavanich; or
-- Abinash Majhi.
The Incoming authorized directors:
* Two unnamed directors to sign jointly with the company's
seal.
Nakornthai Strip Mill Public Company Limited is a Thailand-based
manufacturing company. The Group's principal activities are
manufacturing and selling of hot-rolled coil steel. These
products can be used in downstream industries such as structural
steel industry, container industry, steel pipe industry and gas
tank industry.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Nakornthai has announced a recapitalization plan
involving THB4 billion in debt restructuring to ensure a US$50-
75 million credit line for working capital.
On June 28, 2006, the TCR-AP reported that G Steel PCL would
invest US$180 million to buy a secured right, which will be used
to convert Nakornthai Strip Mill Public Company Limited's debt
into equity. The deal was part of Nakornthai's debt
restructuring plan.
* BOND PRICING: For the Week 27 November to 1 December 2006
-----------------------------------------------------------
Issuer Coupon Maturity Price
------ ------ -------- -----
AUSTRALIA & NEW ZEALAND
-----------------------
Ainsworth Game 8.000% 12/31/09 1
Alinta Networks 5.750% 9/22/10 6
APN News & Media Ltd 7.250% 10/31/08 6
A&R Whitcoulls Group 9.500% 12/15/10 9
Arrow Energy NL 10.000% 03/31/08 1
Babcock & Brown Pty Ltd 8.500% 12/31/49 8
Becton Property Group 9.500% 06/30/10 1
BIL Finance Ltd 8.000% 10/15/07 9
Capital Properties NZ Ltd 8.500% 04/15/07 9
Capital Properties NZ Ltd 8.500% 04/15/09 8
Capital Properties NZ Ltd 8.000% 04/15/10 8
Cardno Limited 9.000% 06/30/08 5
CBH Resources 9.500% 12/16/09 1
Chrome Corporation Ltd 10.000% 02/28/08 1
Clean Seas Tuna Ltd 9.000% 09/30/08 1
Djerriwarrh Investments Ltd 6.500% 09/30/09 4
EBet Limited 10.000% 11/29/06 25
Evans & Tate Ltd 8.250% 10/29/07 1
Fletcher Building Ltd 8.600% 03/15/08 8
Fletcher Building Ltd 7.800% 03/15/09 7
Fletcher Building Ltd 8.850% 03/15/10 8
Fletcher Building Ltd 7.550% 03/15/11 7
Futuris Corporation Ltd 7.000% 12/31/07 2
Hy-Fi Securities Ltd 7.000% 08/15/08 8
Hy-Fi Securities Ltd 8.750% 08/15/08 11
Hutchison Telecoms Australia 5.500% 07/12/07 1
IMF Australia Ltd 11.500% 06/30/10 1
Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8
Infratil Ltd 8.500% 11/15/15 8
Kagara Zinc Ltd 9.750% 05/06/07 8
Kiwi Income Properties Ltd 8.000% 06/30/10 1
Minerals Corporation Ltd 10.500% 09/30/07 1
Nuplex Industries Ltd 9.300% 09/15/07 8
Pacific Print Group Ltd 10.250% 10/15/09 11
Primelife Corporation 9.500% 12/08/06 1
Primelife Corporation 10.000% 01/31/08 1
Salomon SB Australia 4.250% 02/01/09 7
Silver Chef Ltd 10.000% 08/31/08 1
Software of Excellence 7.000% 08/09/07 1
Speirs Group Ltd. 10.000% 06/30/49 75
Tower Finance Ltd 8.750% 10/15/07 8
Tower Finance Ltd 8.650% 10/15/09 8
TrustPower Ltd 8.300% 09/15/07 8
TrustPower Ltd 8.300% 12/15/08 8
TrustPower Ltd 8.500% 09/15/12 8
TrustPower Ltd 8.500% 03/15/14 8
Vision Systems Ltd 9.000% 12/15/08 3
KOREA
-----
Korea Development Bank 7.350% 10/27/21 49
Korea Development Bank 7.450% 10/31/21 49
Korea Development Bank 7.400% 11/02/21 49
Korea Development Bank 7.310% 11/08/21 49
MALAYSIA
--------
Aliran Ihsan Resources Bhd 5.000% 11/29/11 1
AHB Holdings Bhd 5.500% 03/06/07 1
Asian Pac Bhd 4.000% 12/21/07 1
Berjaya Land Bhd 5.000% 12/30/09 1
Bumiputra-Commerce 2.500% 07/17/08 1
Camerlin Group Bhd 5.500% 07/15/07 2
Crescendo Corporation Bhd 3.000% 08/25/07 1
Dataprep Holdings Bhd 4.000% 08/06/07 1
Eastern & Oriental Hotel 8.000% 07/25/11 1
Eden Enterprises (M) Bhd 2.500% 12/02/07 1
EG Industries Bhd 5.000% 06/16/10 1
Equine Capital Bhd 3.000% 08/26/08 1
Gadang Holdings Bhd 2.000% 12/24/08 1
Greatpac Holdings Bhd 2.000% 12/11/08 1
Gula Perak Bhd 6.000% 04/23/08 1
Hong Leong Industries Bhd 4.000% 06/28/07 1
Huat Lai Resources Bhd 5.000% 03/28/10 1
I-Berhad 5.000% 04/30/07 1
Insas Bhd 8.000% 04/19/09 1
Kamdar Group Bhd 3.000% 11/09/09 1
Kosmo Technology Industrial Bhd 2.000% 06/23/08 1
Kretam Holdings Bhd 1.000% 08/10/10 1
Kumpulan Jetson 5.000% 11/27/12 1
LBS Bina Group Bhd 4.000% 12/29/06 1
LBS Bina Group Bhd 4.000% 12/31/07 1
LBS Bina Group Bhd 4.000% 12/31/08 1
LBS Bina Group Bhd 4.000% 12/31/09 1
Media Prima Bhd 2.000% 07/18/08 1
Mithril Bhd 8.000% 04/05/09 1
Mithril Bhd 3.000% 04/05/12 1
Mutiara Goodyear Development Bhd 2.500% 01/15/07 1
Nam Fatt Corporation Bhd 2.000% 06/24/11 1
Pantai Holdings Bhd 5.000% 03/28/07 2
Pantai Holdings Bhd 5.000% 07/31/07 2
Pelikan International Corp Bhd 3.000% 04/08/10 1
Pelikan International Corp Bhd 3.000% 04/08/10 1
Poh Kong Holdings Bhd 3.000% 01/20/07 1
Puncak Niaga Holdings Bhd 2.500% 11/18/16 1
Ramunia Holdings 1.000% 12/20/07 1
Rashid Hussain Bhd 3.000% 12/23/12 1
Rashid Hussain Bhd 0.500% 12/24/12 1
Rhythm Consolidated Bhd 5.000% 12/17/08 1
Silver Bird Group Bhd 1.000% 02/15/09 1
Southern Steel 5.500% 07/31/08 1
Tanah Emas Corporation Bhd 2.000% 12/09/06 1
Tenaga Nasional Bhd 3.050% 05/10/09 1
Tradewinds Plantations Bhd 3.000% 02/28/16 1
WCT Land Bhd 3.000% 08/02/09 1
Wah Seong Corp 3.000% 05/21/12 3
YTL Cement Bhd 4.000% 11/10/15 1
SINGAPORE
---------
Sengkang Mall 4.880% 11/20/12 1
Sengkang Mall 8.000% 11/20/12 1
Structural System Singapore 11.000% 06/30/07 1
Tampines Assets 6.000% 12/07/06 1
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP 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 Tuesday
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-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. 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.
*********
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 - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Nolie Christy Alaba, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara
Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,
Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9482.
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.
TCR-AP subscription rate is $575 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
Christopher Beard at 240/629-3300.
*** End of Transmission ***