/raid1/www/Hosts/bankrupt/TCRAP_Public/061215.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
Friday, December 15, 2006, Vol. 9, No. 249
Headlines
A U S T R A L I A
AGRI-HORT IRRIGATION: Members Decide to Close Operations
BLACKJACK DEVELOPMENTS: Commences Wind-Up Proceedings
CYCLONE PROMOTIONS: Placed Under Voluntary Wind-Up
DATTATECH PTY: To Hold Joint Meeting on January 15
EGAN CORPORATION: Final Meeting Slated for January 12
FURZER CRESTANI: Members and Creditors to Receive Wind-Up Report
GOLDEN RIVER: Posts AU$33MM Accumulated Deficit as of Sept. 2006
JAMES HARDIE: Directors Recommend Vote for Asbestos Compensation
PARS FLOOR: Undergoes Wind-Up Proceedings
PEABODY ENERGY: Fitch Rates Jr. Subordinated Debentures at BB-
PEABODY: COALSALES Inks Coal Supply Pact with Tennessee Valley
PRESTIGE DESIGNER: Liquidator to Present Wind-Up Report
RHSS LTD: Members Pass Resolution to Wind Up Firm
RMB CORPORATE: Members Opt for Voluntary Wind-Up
SUPERIOR ENERGY: Offering US$350MM Senior Exchangeable Notes
SUPERIOR ENERGY: Completes Acquisition of Warrior Energy
SYORIN PTY: Members Agree on Voluntary Liquidation
ZINIFEX LIMITED: Century Mine Resumes Production
C H I N A & H O N G K O N G
ARACRUZ CELULOSE: Secures BRL595.5-Mil. Financing from BNDES
ASIA FINANCIAL: Creditors' Proofs of Debt Due on Dec. 29
BANK OF CHINA: Fitch Keeps Individual Rating at D
BANK OF SHANGHAI: Individual Rating Stays at D, Fitch Says
BON HONG: Names Leung Chi Wing as Liquidator
CHINA EVERBRIGHT: CNY20 Bln Capital Injection Spurs H.K. Listing
CHINA SOUTHERN: Orders Engines from MTU for EUR110 Million
DAIMLERCHRYSLER: Freightliner to Lay Off 800 Workers in Canada
FIAT SPA: Sells Stake in Meridian Technologies for EUR132 Mln
GE-ICE: Members to Receive Wind-Up Report on January 9
GLOBAL POWER: Closes US$85 Million DIP Financing Credit Facility
INTERNATIONAL PAPER: Receives Tenders of US$3.64B of Bonds
JABIL CIRCUIT: Provides Update on Late Filing of Form 10-K
LERIC INTERNATIONAL: To Hold First Meetings on December 19
MTU AERO: Appoints Wolfgang Konrad as Unit's New President & CEO
MTU AERO: Moody's Changes Outlook on Improved Credit Profile
PETROLEOS DE VENEZUELA: Inks Four Agreements with Petrobras
PETROLEOS DE VENEZUELA: Restarting Operations at Amuay Refinery
SCORE TARGET: Liquidators Cease to Act
START CLO: Fitch Affirms Notes Ratings due 2014
TAG-IT PACIFIC: Earns US$13.4 Million in Third Quarter of 2006
TAI SUN: Creditors Name Tang Hoi Tung as Liquidator
TELETECH COMMUNICATION: First Meetings Scheduled on Dec. 19
VOLKSWAGEN AG: Audi Production Ensures 3,000 Jobs at Brussels
WEX PHARMA: Debenture Holders Grant Flexible Repayment Terms
I N D I A
ANDHRA BANK: Ties Up with IIFC to Fund Infrastructure Projects
ALLAHABAD BANK: RBI Bars Equity Purchases for FIIs, NRIs & PIOs
BHARAT PETROLEUM: Unit Signs Production-Sharing Pact with Timor
BHARAT PETROLEUM: Unit to Bring In INR500-600 Cr. for Expansion
BHARTI AIRTEL: Issues 11,208 Shares on FCCB Conversion
BHARTI AIRTEL: Forays Into U.S. with Launch of 'CallHome'
BHARTI AIRTEL: Partners with Google for Mobile Search Services
BPL LTD: Members to Decide Transfer of Alkaline Unit to JV
HAYES LEMMERZ: Posts US$59.6 Mil. Net Loss in Qtr. Ended Oct. 31
I N D O N E S I A
ANEKA TAMBANG: To Make Construction Tender For Power Generator
BANK BUANA: Fitch Affirms BB- Issuer Default Ratings
BANK DANAMON: Fitch Affirms Foreign Currency Rating at 'BB-'
BANK INDONESIA: Deputy Governor Sees Smaller BI Rate Cut in 2007
BANK NEGARA: Fitch Affirms Issuer Default Ratings at 'BB-'
BANK NIAGA: To Expand Lending By 25% Next Year
BANK NISP: Fitch Affirms Long-Term & Local Currency IDRs at BB-
BERAU COAL: Moody's Assigns Final B1 Corporate Rating
CA INC: To Reclaim Research Tax Credit After 10 Years
DAVOMAS ABADI: S&P Affirms New Senior Secured Notes at 'B+'
DAVOMAS ABADI: Reopens Bonds To Further Raise US$25 Million
HILTON HOTELS: Has US$323-Mil. Current Deficit as of Sept. 2006
HILTON HOTELS: Gives Full-Year Earning Forecast For 2009
WILLBROS GROUP: Appoints Michael J. Bayer To Board Of Directors
J A P A N
ALITALIA SPA: Italy Commences Search for Sale Advisor
AMERICAN AIRLINES: Adds US$100 Million Pension Contribution
BANCO BRADESCO: Grants BRL2.00B Home Loans in First 11 Months
BANCO BRADESCO: Will Buy a Bank Soon, Investment Strategist Says
CONTINENTAL AIRLINES: In Talks with UAL Corp for Possible Merger
COREL CORP: Acquires InterVideo Inc. for US$198.6 Million Cash
DELPHI CORP: Cadence Wants to Proceed with Patent Litigation
DELPHI CORP: Responds to Employees' Insurance Payment Plea
HERBALIFE LTD: Names Jean Marie Cacciatore VP of Human Resources
MITSUBISHI MOTORS: Not Guilty of False Defect Report, Court Says
NOMURA HOME: DBRS Rates US$9.3 Million Class N4 Notes at B
ON SEMICONDUCTOR: Plans US$400MM Sr. Subordinated Notes Offering
SAMSONITE CORP: Moody's Junks US$205-Million 8.875% Notes
SAMSONITE CORP: S&P Rates US$530MM Sr. Secured Facility at BB-
SENSATA TECH: Moody's Affirms B2 Rating with Stable Outlook
TIMKEN CO: Sells Latrobe Steel to Watermill, Hicks for US$215MM
US AIRWAYS: Pilots Express Concerns on Planned Delta Merger
USINAS SIDERURGICAS: Posts US$436 Mil. in Exports in 10 Months
K O R E A
NOVELIS INC: S&P Affirms BB- Corporate Credit Rating
PANTECH CO: Shareholders Want Park's Shares as Collateral
SHINHAN BANK: Deploys BT Voice Trading Technology
M A L A Y S I A
AKER KVAERNER: Inks EUR50-Million Deal with Porin Prosessivoima
GEORGE TOWN: Court to Hear RO Extension Request on April 3
GEORGE TOWN: Fails to Submit 3Q Financial Results
INTERPUBLIC GROUP: Moody's Rates US$250MM Floating Notes at Ba3
INTERPUBLIC GROUP: S&P Holds Watch on Ratings on Wal-Mart Review
INTERPUBLIC GROUP: Gets US$250MM in Tenders on Exchange Offer
MOL.COM BHD: Seeks Extension of Regularization Plan Submission
THERMADYNE HOLDINGS: Incurs US$5.7 Million Net Loss in 3rd Qtr.
VERIFONE: Earns US$13.9 Million in 2006 Quarter Ended October 31
N E W Z E A L A N D
ALL VINES: Creditors to Prove Claims by December 20
AURORA CONSTRUCTION: Faces Liquidation Proceedings
CROSSTOWN INVESTMENT: Creditors' Proofs of Debt Due on Dec. 15
DEMONSPAWN LTD: CIR Seeks to Liquidate Company
DENNY'S CORP: Plans to Terminate Trans Fats from Menu Items
DICTATION SYSTEMS: Creditors Must Lodge Claims by Dec. 29
DS & SE WHITE: Names Official Assignee as Liquidator
FELTEX CARPETS: Court Issues Liquidation Order
FELTEX CARPETS: Plant Closure Leaves 35 Redundant Workers
GYMTECH LTD: Court to Hear Liquidation Petition on Dec. 18
NETTLEBED FARM: Court Sets Liquidation Hearing on Dec. 18
RAISIN GRAPES: Creditors' Proofs of Claim Due on Dec. 20
SHOTGUN LTD: Creditors' Proofs of Claim Due on December 15
TEAM ABUNDANCE: Hearing of Liquidation Petition Set for Feb. 22
P H I L I P P I N E S
ATLAS CONSOLIDATED: BOI Confirms Carmen Copper's Registration
ATLAS CONSOLIDATED: SEC Oks Increase of Capital Stock to PHP12BB
FAIRCHILD SEMICONDUCTOR: Management Approves Restructuring Prog.
PRC LLC: Moody's Assigns B2 Corporate Family Rating
PRC LLC: S&P Assigns B+ Corporate Credit Rating
TOWER RECORDS: Appoints Lipman Stevens as Appraiser
S I N G A P O R E
COMPACT METAL: Shareholder Decreases Holdings of Deemed Shares
COSCO CONTAINER: Creditors Must File Proofs of Debt by Jan. 8
HLG ENTERPRISE: Dispatches Circular to Shareholders
HLG ENTERPRISE: Notes Shareholders' Change of Interests
HUANGHO TRADING: Enters Wind-Up Proceedings
JOHN HANCOCK: Creditors Must File Proofs of Debt by Jan. 8
PETROLEO BRASILEIRO: Bolivia Must Hire Auditors to Assess Plants
PETROLEO BRASILEIRO: Hires DeGolyer to Audit New Finds
PETROLEO BRASILEIRO: Regulator Approves SubSea Conceptual Plan
REFCO INC: Judge Drain Extends Removal Period to January 9
REFCO INC: Taps Sonnenschein Nath as Special Litigation Counsel
VELOOCO GENERAL: Pays Preferential Dividend to Creditors
T H A I L A N D
iTV PLC: Court Favors Concession Payment; Faces Bankruptcy
NAKORNTHAI STRIP: Cuts Par Value to THB1.12, Reduces Capital
* Large Companies With Insolvent Balance Sheets
- - - - - - - -
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A U S T R A L I A
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AGRI-HORT IRRIGATION: Members Decide to Close Operations
--------------------------------------------------------
The members of Agri-Hort Irrigation Solutions Pty Ltd met on
Nov. 29, 2006, and resolved to voluntarily wind up the company's
operations.
In this regard, Bruce Gleeson was appointed as liquidator.
The Liquidator can be reached at:
Bruce Gleeson
Jones Partners
Level 13, 189 Kent Street
Sydney, New South Wales
Australia
Telephone:(02) 9251 5222
About Agri-Hort Irrigation
Agri-Hort Irrigation Solutions Pty Ltd provides plumbing,
heating, and air-conditioning services.
The company is located in New South Wales, Australia.
BLACKJACK DEVELOPMENTS: Commences Wind-Up Proceedings
-----------------------------------------------------
On Nov. 22, 2006, the members of Blackjack Developments Pty Ltd
met and resolved to voluntarily wind up the company's
operations.
Roger David Midgley Smith was consequently appointed liquidator
at the creditors' meeting held that same day.
The Liquidator can be reached at:
Roger David Midgley Smith
126 George Street
Morwell, Victoria 3840
Australia
About Blackjack Developments
Blackjack Developments Pty Ltd operates restaurants, bar, and
Caf,.
The company is located in Victoria, Australia.
CYCLONE PROMOTIONS: Placed Under Voluntary Wind-Up
--------------------------------------------------
At an extraordinary general meeting held on Nov. 30, 2006, the
members of Cyclone Promotions Pty Ltd resolved to voluntarily
wind up the company's operations.
Subsequently, Nicholas Giasoumi and Roger Darren Grant were
appointed as joint and several liquidators at the creditors'
meeting held later that day.
The Joint and Several Liquidators can be reached at:
N. Giasoumi
R. D. Grant
Dye & Co. Pty Ltd
Chartered Accountants
165 Camberwell Road, Hawthorn East 3123
Australia
About Cyclone Promotions
Cyclone Promotions Pty Ltd provides amusement and recreation
services.
The company is located in Queensland, Australia.
DATTATECH PTY: To Hold Joint Meeting on January 15
--------------------------------------------------
Dattatech Pty Ltd, which is in liquidation, will hold a joint
meeting for its members and creditors on Jan. 15, 2007, at
10:00 a.m.
During the meeting, the members and creditors will receive
Liquidator Smith's account of the company's wind-up proceedings
and property disposal exercises.
The Liquidator can be reached at:
M. J. M. Smith
Smith Hancock
Chartered Accountants
Level 4, 88 Phillip Street
Parramatta, New South Wales 2150
Australia
About Dattatech Pty
Dattatech Pty Ltd -- http://www.dattatech.com-- provides large-
scale offerings from consumables to hardware and deployment of
integration and infrastructural services. The company also
provides web hosting and internet/intranet development services.
The company is located in New South Wales, Australia.
EGAN CORPORATION: Final Meeting Slated for January 12
-----------------------------------------------------
A final meeting of the members and creditors of Egan Corporation
Pty Ltd -- trading as Wine Cellars of Distinction and EC Cabinet
Makers of Distinction -- will be held on Jan. 12, 2007, at 10:00
a.m., to consider the liquidator's account of the company's
wind-up proceedings.
According to the TCR-AP, the company commenced wind-up of
operations on March 2, 2006.
The liquidator can be reached at:
Roderick Mackay Sutherland
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2000
Australia
About Egan Corporation
Egan Corporation constructs and installs wine cellars for both
business and home.
The company is located in New South Wales, Australia.
FURZER CRESTANI: Members and Creditors to Receive Wind-Up Report
----------------------------------------------------------------
The members and creditors of Furzer Crestani & Co Pty Ltd will
meet on Jan. 19, 2007, at 10:00 a.m., to receive Liquidator P.
Ngan's report of the company's wind-up proceedings.
As reported by the TCR-AP, the company was placed under
voluntary wind-up on Aug. 7, 2006.
The Liquidator can be reached at:
P. Ngan
Ngan & Co
Level 5, 49 Market Street
Sydney, New South Wales 2000
Australia
About Furzer Crestani
Furzer Crestani & Co Pty Ltd -- http://www.fcspl.com.au-- is a
firm of chartered accountants specializing in forensic
accounting and economic loss assessment.
The company is located in New South Wales, Australia.
GOLDEN RIVER: Posts AU$33MM Accumulated Deficit as of Sept. 2006
----------------------------------------------------------------
Golden River Resources Corporation filed with the United States
Securities and Exchange Commission its financial report for the
quarter ended September 30, 2006, showing an accumulated deficit
from its inception through September 30, 2006, amounting to
AU$33,278,000 of which AU$6,876,000 has been accumulated from
July 2002, the date the company entered the Exploration Stage,
through September 30, 2006.
For the three months ended September 30, 2006, Golden River
posted a revenue of AU$5,344.
The company posted a net loss of AU$544,00 for the quarter,
higher compared to a net loss of AU$315,000 for the same quarter
in 2005.
In its financial report for the quarter ended September 30,
2006, Golden River disclosed that it has sustained recurring
losses and has a net working capital deficiency. These losses,
the company acknowledged, raise substantial doubt as to its
ability to continue as a going concern. However, Golden River
anticipates that it will be able to defer repayment of
obligations until it has sufficient liquidity to enable these
loans to be repaid or other arrangements to be put in place.
In addition Golden River notes that it has historically relied
on loans and advances from corporations affiliated with its
President. Based on discussions with these affiliate companies,
Golden River believes this source of funding will continue to be
available. Other than the noted arrangements, Golden River has
not confirmed any other arrangement for ongoing funding. Thus,
it may be required to raise funds by additional debt or equity
offerings to meet its cash flow requirements during the
forthcoming year.
2006 Annual Report
After auditing Golden River's financial statements for the year
ended June 30, 2006, PKF, Certified Public Accountants raised
substantial doubt as to the company's ability to continue as a
going concern. PKF pointed that at June 30, 2006, the company
has not yet commenced revenue producing operations and has a
retained deficit of AU$32,734,000 (US$23,899,000).
PKF noted that the consolidated financial statements do not
include any adjustments that might result from the outcome of
the uncertainty.
No Dividend Payments
In its financial report for the fiscal year ended June 30, 2006,
the company noted that it is the present policy of the Board of
Directors to retain earnings, when incurred -- for use in its
business. Thus, Golden River has not declared any cash
dividends to the holders of its Common Stock and do not intend
to declare dividends in the foreseeable future. Payment of any
dividends will depend on the company's future earnings, if
any, its financial condition, and other factors deemed relevant
by the Board of Directors, Golden Rivers revealed.
As of August 31, 2006 the company had approximately 130
shareholders of record.
About Golden River
Golden River Resources Corporation --
http://www.goldenriverresources.com/-- headquartered in
Australia, is formerly known as Bay Resources Ltd., is an
exploration stage mining company. Its objective is to exploit
its interest in the mineral claims in Nunavut, Canada, which are
in the Slave Craton and in the Committee Bay Greenstone Belt.
The company's principal exploration target is for gold and is
seeking to determine whether adequate gold reserves are present
on the property covered by IRS claims to develop an operating
mine. It is in the initial stages of its exploration program
and have not yet identified any ore reserves.
Golden River holds the interests in the Slave Craton directly
and its wholly owned subsidiary named -- Golden Bull Resources
Corporation (formerly 4075251 Canada Inc.) -- holds the
interests in the Committee Bay Greenstone Belt. The company's
Slave Properties are registered in the Mining Recorders Office
in the Mining District of Nunavut and give Golden River the
right to explore and mine minerals from the property covered by
the claims.
JAMES HARDIE: Directors Recommend Vote for Asbestos Compensation
----------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported that on
November 21, 2006, James Hardie Industries Ltd and the NSW
Government executed the Amended and Restated Final Funding
Agreement to compensate Australians with asbestos-related
personal injury claims against former James Hardie subsidiaries.
According to the TCR-AP, for the Amended FFA to be implemented,
it must be approved by 50% of the shareholder votes cast at the
Extraordinary General Meeting, which is expected to be held in
Amsterdam on Feb. 7, 2007. James Hardie intended to convene an
Extraordinary Information Meeting for shareholders in Sydney on
Feb. 1, 2007.
An Explanatory Memorandum outlining the proposed arrangements
will be sent to shareholders prior to Christmas. Subject to
satisfaction of all conditions precedent, including shareholder
approval, James Hardie will pay the initial funding payment of
AU$184.3 million to the proposed fund within five days of the
Extraordinary General Meeting, the TCR-AP said.
A follow up report from ABC News Online relates that the
Explanatory Memorandum is now being distributed to shareholders.
According to the Sydney Morning Herald, the company's directors
unanimously recommend that shareholders vote in favor of
providing compensation, regardless of legal liability. The
advantages would include "enhanced relationships with employees,
customers and other stakeholders," the directors said.
If shareholders agree in February, AU$184 million will start up
a replacement compensation fund.
James Hardie will pay 35% of its free cash flow annually until
2045, ABC News says, noting that the company expects to pay
AU$6 million in 2007. Payments are strictly limited to
Australian personal injury and death claims and costs, ABC says.
Refusing to pay, while legally defensible, would damage James
Hardie's corporate reputation, depress the share price by
introducing uncertainty about future asbestos liabilities, harm
staff morale, distract management, and hurt sales, the Sydney
Herald says.
The memorandum noted that during the period from 2001 until
2004, directors considered "the legal issues as to how a
contribution of funds. . .would be in the best interests of
James Hardie and, therefore, as to how its directors could
satisfy their duties to act in James Hardie's best interests,"
the paper reveals.
The advantages of the proposed scheme "significantly outweigh"
the disadvantages "after considering, in particular, the
potential downside risks", including litigation, or legislation
forcing James Hardie to pay, the Sidney Herald cites an
independent expert's report by Lonergan Edwards & Associates, as
saying.
As part of the Memorandum, the New South Wales Government has
agreed to lobby in favor of James Hardie if other state
governments move to increase the asbestos liabilities of its
former companies, ABC News relates.
According to the Sydney Herald, most of the 329-page memorandum
is taken up with a detailed explanation of the agreement reached
after the inquiry through negotiations with the NSW Government,
the ACTU and asbestos support groups in December 2004.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives. On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring. James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL. Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.
On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001. In connection with the 2001
reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV. Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.
The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established.
By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia. Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.
In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades. When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.
On December 1, 2005, the Company announced that the NSW
Government and a wholly owned Australian subsidiary of the
Company -- LGTDD Pty Ltd -- had entered into a conditional
agreement to provide long-term funding to a special purpose fund
that will provide compensation for Australian asbestos-related
personal injury claims against certain former James Hardie
asbestos companies. The amount of the asbestos provision of
AU$1 billion, at March 31, 2006, is the Company's best estimate
of the probable outcome, which estimate includes an actuarial
calculation prepared by KPMG Actuaries Pty Ltd of the projected
future cash outflows, undiscounted and uninflated, and the
anticipated tax deduction arising from Australian legislation
which came into force on April 6, 2006.
PARS FLOOR: Undergoes Wind-Up Proceedings
-----------------------------------------
On Nov. 30, 2006, the members of Pars Floor Covering Pty Ltd
passed a special resolution to voluntarily wind up the company's
operations and appointed P. Ngan as liquidator.
Mr. Ngan's appointment was confirmed at the creditors' meeting
held subsequently that day.
The Liquidator can be reached at:
P. Ngan
Ngan & Co
Chartered Accountants
Level 5, 49 Market Street
Sydney, New South Wales 2000
Australia
About Pars Floor
Pars Floor Coverings Pty Ltd provides services for repair of
carpets, rugs, vinyl and laminate.
The company is located in New South Wales, Australia.
PEABODY ENERGY: Fitch Rates Jr. Subordinated Debentures at BB-
--------------------------------------------------------------
On December 13, 2006, Fitch Ratings rated Peabody Energy Corp.'s
US$500 million convertible junior subordinated debentures due
2066 at 'BB-'. Fitch also affirmed 'BB+' ratings of:
-- the US$650 million senior notes due 2013,
-- the US$250 million senior notes due 2016,
-- the US$650 million senior notes due 2016,
-- the US$250 million notes due 2026,
-- the US$1.8 billion revolving credit facility, and
-- the US$950 million term loan facility
The Rating Outlook is Stable.
The proceeds of new debentures will be used to repay borrowings
under the bank facilities used to finance, in part, the
acquisition of Excel Coal Limited (Excel).
Based upon Fitch's hybrid rating criteria published on Sept. 27,
2006, Fitch has assigned the debentures to class C and will
allocate 50% of the principal to adjusted equity and 50% to
adjusted debt in evaluating the financial leverage of Peabody.
Key features supporting the equity credit class of the
debentures include the junior subordinate ranking, ten-year
cumulative optional deferral of interest payments, a 60-year
maturity with restrictions on redemption or repurchasing
securities for 30 years except in certain limited circumstances.
Without the cash settlement conversion feature upon a non-stock
change of control, the debentures would have received 75% equity
credit.
The ratings reflect Peabody's large, well diversified
operations, good control of low cost production, strong
liquidity and moderate leverage. The outlook is for coal
producers to continue to benefit from a strong pricing
environment over the near term.
Peabody is the largest US coal producer fueling 10% of domestic
electricity generation. Pro forma for the Excel acquisition and
completed development, the company will be the fifth largest
coal producer in Australia. Peabody's operations are well
diversified with new activity concentrated in the Powder River
Basin and the Illinois Basin where it dominates. Peabody has
over 9 billion tons of coal reserves. The company has coal
operations in Australia.
PEABODY: COALSALES Inks Coal Supply Pact with Tennessee Valley
--------------------------------------------------------------
Peabody Energy disclosed that its COALSALES, LLC, subsidiary has
entered into a 10-year coal supply agreement with Tennessee
Valley Authority to supply 6 million tons per year of Illinois
Basin coal. The coal supplied under this agreement is expected
to be sourced from a combination of existing and future Illinois
Basin mines. Coal sales under the first five years of the
agreement are expected to be in excess of US$1 billion. The
agreement represents the continuation of a mutually beneficial
relationship between COALSALES, LLC and Tennessee Valley.
"We are pleased to strengthen our valued customer relationships
through long-term coal supply agreements with key customers like
Tennessee Valley," said Peabody Executive Vice President and
Chief Marketing Officer Richard M. Whiting. "Peabody has a long
tradition as a reliable supplier and offers the strength of vast
resources and flexibility of sourcing through multiple mines,
thanks to our unmatched 10 billion ton reserve portfolio."
Peabody currently has a customer backlog of more than one
billion tons through long-term coal supply contracts.
Tennessee Valley is the nation's largest public power provider.
It provides power to large industries and 158 power distributors
that serve approximately 8.7 million consumers in seven
southeastern states. Tennessee Valley also manages the
Tennessee River and its tributaries to provide multiple
benefits, including flood damage reduction, navigation, water
quality and recreation.
Peabody Energy is the world's largest private-sector coal
company, with 2005 sales of 240 million tons of coal and $4.6
billion in revenues. Its coal products fuel approximately 10
percent of all U.S. electricity generation and 3 percent of
worldwide electricity.
About Peabody Energy
Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and U.S.US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Australia.
* * *
On October 24, 2006, the Troubled Company Reporter - Asia
Pacific 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 North American
Metals & Mining sectors, the rating agency confirmed its Ba1
Corporate Family Rating for Peabody Energy Corporation.
PRESTIGE DESIGNER: Liquidator to Present Wind-Up Report
-------------------------------------------------------
Prestige Designer Homes Pty Ltd, which is in liquidation, will
hold a final meeting for its members and creditors on Jan. 9,
2007, at 10:30 a.m.
At the meeting, Liquidator Danny Vrkic will present a report
regarding the company's wind-up proceedings and property
disposal activities.
The Liquidator can be reached at:
Danny Vrkic
Jirsch Sutherland & Co - Wollongong
Level 3, 6-8 Regent Street
Wollongong, New South Wales 2500
Australia
Telephone: 02 4225 2545
Facsimile: 02 4225 2546
About Prestige Designer
Prestige Designer Homes Pty Ltd is a general contractor of
residential buildings and single-family housing.
The company is located in New South Wales, Australia.
RHSS LTD: Members Pass Resolution to Wind Up Firm
-------------------------------------------------
At a general meeting held on Nov. 28, 2006, the members of RHSS
Ltd passed a special resolution to voluntarily wind up the
company's operations.
The liquidators can be reached at:
David Clement Pratt
Timothy James Cuming
Level 15, 201 Sussex Street
Sydney, New South Wales 1171
Australia
About Rhss Limited
Rhss Limited -- trading as St Vincent's Hospital & Health
Service -- operates general medical and surgical hospitals.
The company is located in Queensland, Australia.
RMB CORPORATE: Members Opt for Voluntary Wind-Up
------------------------------------------------
The members of RMB Corporate Finance Ltd held a general meeting
on Nov. 28, 2006, and passed a special resolution to voluntarily
wind up the company's operations.
The liquidator can be reached at:
Ronald George Davies
Level 20, Darling Park Tower 2
201 Sussex Street
GPO Box 5085, DX 77
Sydney, New South Wales 2001
Australia
About RMB Corporate
RMB Corporate Finance Limited is involved with deposit banking.
The company is located in New South Wales, Australia.
SUPERIOR ENERGY: Offering US$350MM Senior Exchangeable Notes
------------------------------------------------------------
Superior Energy Services, Inc., disclosed that its wholly owned
subsidiary, SESI, L.L.C. intends to offer, subject to market and
other conditions, approximately US$350.0 million aggregate
principal amount of senior exchangeable notes due 2026 through
an offering within the United States to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933,
as amended.
The notes will be guaranteed by Superior Energy Services and the
same subsidiaries of SESI that currently guarantee its existing
6 7/8% senior notes. In certain circumstances, the notes will
be exchangeable for cash up to the principal amount of notes and
shares of Superior Energy Services' common stock for any
exchange value above the principal amount of notes or, upon
SESI's election in certain circumstances prior to Dec. 15, 2011,
solely into shares of Superior Energy Services' common stock.
The interest rate, exchange price and other terms of the notes
will be determined by negotiations between Superior Energy
Services and the initial purchasers of the notes. Superior
Energy Services also expects that SESI will grant the initial
purchasers of the notes a 30-day option to purchase up to
US$50.0 million in principal amount of additional notes.
Superior Energy Services intends to use approximately US$233
million of the net proceeds of the offering to fund the
approximate US$175 million cash purchase price of its previously
announced acquisition of Warrior Energy Services Corporation, to
refinance Warrior's existing indebtedness and to pay expenses
related to the Warrior acquisition.
SESI intends to use a portion of the net proceeds from the
offering to pay the cost of the exchangeable note hedge
transactions that SESI expects to enter into with affiliates of
certain of the initial purchasers. Each of the exchangeable
note hedge transactions is expected to have a call exercise
price equal to the exchange price of the notes, and is intended
to limit exposure to dilution to Superior Energy Services'
stockholders upon the potential future exchange of the notes.
In connection with such transactions, Superior Energy Services
expects to enter into separate warrant transactions with the
same counterparties that enter into the exchangeable note hedge
transactions, with proceeds of the warrant transactions
partially offsetting the cost of the exchangeable note hedge
transactions.
Upon any exercise of the initial purchasers' option to purchase
additional notes, the exchangeable note hedge and warrant
transactions will be proportionately increased. In connection
with establishing their initial exchangeable note hedge and
warrant transactions, the counterparties expect to purchase
shares of Superior Energy Services' common stock in privately
negotiated transactions concurrently with or shortly after
pricing of the notes. In addition, these financial institutions
or their affiliates may modify their hedge positions by entering
into or unwinding various derivative transactions and/or
purchasing or selling shares of Superior Energy Services' common
stock in secondary market transactions prior to expiration of
the exchangeable note hedge and warrant transactions.
Superior Energy Services intends to use the remaining net
proceeds of the offering, along with a portion of available
cash, to repurchase up to US$160 million of Superior Energy
Services' common stock concurrently with and after the offering
in open market or privately negotiated transactions.
About Superior Energy
Superior Energy Services Inc. -- http://www.superiorenergy.com/
-- provides specialized oilfield services and equipment focused
on serving the production-related needs of oil and gas companies
primarily in the Gulf of Mexico and the drilling-related needs
of oil and gas companies in the Gulf of Mexico and select
international market areas. The Company uses its production
related assets to enhance, maintain and extend production and,
at the end of an offshore property's economic life, plug and
decommission wells. Superior also owns and operates mature oil
and gas properties in the Gulf of Mexico.
The company has operations in Australia, the United States,
Trinidad and Tobago, the United Kingdom, and Venezuela, among
others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
November 10, 2006, Standard & Poor's Ratings Services affirmed
its 'BB' corporate credit rating and its 'BB-' senior unsecured
rating on Superior Energy and also assigned its 'BB+' senior
secured rating and '1' recovery rating to Superior's US$200
million term loan B. The outlook is stable.
SUPERIOR ENERGY: Completes Acquisition of Warrior Energy
--------------------------------------------------------
Superior Energy Services, Inc., has completed its acquisition of
Warrior Energy Services Corporation following approval by
Warrior's stockholders at a special meeting of stockholders.
As a result of the merger, each share of Warrior common stock
has been converted into the right to receive US$14.50 in cash
and 0.452 shares of Superior common stock. Information
regarding the exchange of share certificates will be sent to
Warrior stockholders.
Commenting on the acquisition of Warrior, Terence E. Hall,
Superior's Chief Executive Officer and Chairman of the Board,
said, "We look forward to implementing growth plans that we
believe will create one of North America's largest providers of
premium production-related services, participating in both the
offshore Gulf of Mexico and key domestic land market areas."
A copy of the proxy statement/prospectus relating to the
transaction can be obtained from:
Greg Rosenstein
Superior Energy Inc.
1105 Peters Road
Harvey, Louisiana 70058
Tel: 504-210-4119
-- or --
Ron Whitter
Warrior Energy Chief Financial Officer
Two Northpoint Drive, Suite 900
Houston, TX 77345
Tel: 832-775-0016
Simmons & Company International was the financial advisor to the
Warrior Energy Board of Directors in connection with the merger
agreement.
About Superior Energy
Superior Energy Services Inc. -- http://www.superiorenergy.com/
-- provides specialized oilfield services and equipment focused
on serving the production-related needs of oil and gas companies
primarily in the Gulf of Mexico and the drilling-related needs
of oil and gas companies in the Gulf of Mexico and select
international market areas. The Company uses its production
related assets to enhance, maintain and extend production and,
at the end of an offshore property's economic life, plug and
decommission wells. Superior also owns and operates mature oil
and gas properties in the Gulf of Mexico.
The company has operations in Australia, the United States,
Trinidad and Tobago, the United Kingdom, and Venezuela, among
others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
November 10, 2006, Standard & Poor's Ratings Services affirmed
its 'BB' corporate credit rating and its 'BB-' senior unsecured
rating on Superior Energy and also assigned its 'BB+' senior
secured rating and '1' recovery rating to Superior's US$200
million term loan B. The outlook is stable.
SYORIN PTY: Members Agree on Voluntary Liquidation
--------------------------------------------------
At a general meeting held on Nov. 30, 2006, the members of
Syorin Pty Ltd resolved to voluntarily liquidate the company's
business and appointed Bruce Gleeson as liquidator.
The Liquidator can be reached at:
Bruce Gleeson
Jones Partners
Level 13, 189 Kent Street
Sydney, New South Wales
Australia
Telephone:(02) 9251 5222
About Syorin Pty
Syorin Pty Limited provides computer related services.
The company is located in New South Wales, Australia.
ZINIFEX LIMITED: Century Mine Resumes Production
------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
December 12, 2006, Zinifex Limited advised that a mechanical
failure of the concentrate thickener at Century's Lawn Hill
concentrator facility on December 9, 2006, has resulted in an
estimated seven-day shutdown of concentrator and pumping
operations at the Lawn Hill mine.
In an update, repairs to the concentrate thickener at Century's
concentrator have been completed and production resumed on
December 13, 2006.
Zinifex notes that production was halted for a total of four
days, some three days less than previously anticipated.
The TCR-AP has noted that production was expected to resume on
December 17, 2006.
As a consequence the company reduced its estimate of production
losses arising from the shutdown by 32% to 5,600 tonnes of zinc
in concentrate. Similarly, the forecast impact on revenue has
lessened and is now estimated at AU$20 million.
Zinifex has estimated that sales for the current financial year
will be reduced by approximately 8,300 tonnes of zinc and 700
tonnes of lead in concentrate, the TCR-AP said, adding that the
total impact on revenue is estimated to be approximately AU$30
million.
About Zinifex
Zinifex Limited, one of the world's largest integrated zinc and
lead companies -- http://www.zinifex.com/-- is headquartered in
Melbourne, Australia. The company owns and operates two mines
and four smelters. The mines and two of the smelters are
located in Australia and supply the growing industrial markets
of the Asian-Pacific region, including China. The company also
has a zinc smelter in the Netherlands and the United States.
The company sells a range of zinc metal, lead metal, and
associated alloys in 20 countries.
More than 80% of the company's products are distributed outside
Australia, particularly in Asia, which is experiencing
significant growth in construction activity and vehicle
production. Zinc is used for steel galvanizing and die-casting
and lead for lead acid batteries used mainly in cars and other
vehicles.
* * *
The Troubled Company Reporter - Asia Pacific reported on Aug. 9,
2006, that Fitch Ratings assigned Zinifex a Long-term foreign
currency Issuer Default Rating of 'BB+' with a Stable Outlook.
================================
C H I N A & H O N G K O N G
================================
ARACRUZ CELULOSE: Secures BRL595.5-Mil. Financing from BNDES
------------------------------------------------------------
Banco Nacional do Desenvolvimento Economico e Social aka BNDES
approved BRL595.9 million funding to Aracruz Celulose SA, to
increase the current production capacity of Unidade Industrial
Barra do Riacho, which is already the largest cellulose plant in
the world, located in the municipality of Aracruz, in the State
of Espirito Santo.
In addition to expanding the industry production potential,
which will go from 2.13 million tons/year to 2.33 million
tons/year, the project includes a forestal program related to
77,900 hectares of eucalyptus forests, expanding by 9% the area
of own forests, and 26,000 hectares for development, in
partnership with small rural producers in the State of Espirito
Santo and in the State of Bahia. The project also includes the
implementation of a social investment program in several areas
under influence of the company.
Total investment of the project reaches BRL878 million, and
Aracruz will invest BRL282.1 from its own funds.
The paper and cellulose industry in Brazil is facing a new cycle
of expansion, stimulated by the increasing demand from the
domestic and foreign markets. According to forecasts from BNDES
Basic Inputs Area, investments in the paper and cellulose sector
are expected to increase, in average, 17% per year in the 2007-
2010 period, in relation to 2002/2005. This is equivalent to
investments of about BRL20 billion in the period, an
unprecedented amount in the history of the sector. Of this
total, BNDES is expected to finance nearly BRL11.7 billion.
The favorable context already produces new investments in paper
and cellulose in the country. In 2006, BNDES is financing three
large projects of the sector. In addition to Aracruz, the Bank
opened a credit of BRL1.74 billion to Klabin SA, destined to
increase the production capacity of Klabin Papeis Monte Alegre's
plant, in Telemaco Borba, from the current 680,000 tons/year of
papers and cardboards to 1.1 million tons/year, and to Suzano
Bahia Sul Celulose SA, which will invest BRL3.5 billion in the
project for the productive capacity expansion of its plant in
Mucuri, of which BRL2.4 billion will be financed by BNDES.
Presently, Aracruz is the leading global producer of bleached
eucalyptus cellulose, with nominal capacity to produce 3 million
tons per year, distributed among its plants in:
-- Barra do Riacho (State of Espirito Santo),
-- Guaiba (State of Rio Grande do Sul) and
-- Veracel (State of Bahia).
Consequently, the company controls about 27% of the global
offer.
The group has slightly over 10,200 employees, of whom nearly
2,200 are direct employees, and 8,000 are permanently
outsourced. The investment project will create 1,880 jobs
during the plant expansion and guarantee to keep another 4,000
jobs in the forest area.
The company keeps the largest reserve of native forests in Mata
Atlantica and its planted area of eucalyptus corresponds to
about 261,000 hectares, distributed among several municipalities
in the States of Espirito Santo, Bahia, Rio Grande do Sul and
Minas Gerais.
All areas under its own handling are certified by the Brazilian
System of Forest Certification. In 2005, when joining Chicago
Carbon Trading Exchange, it became the first Latin American
company to assume targets of reducing greenhouse gas emissions.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
About Aracruz Celulose
Aracruz Celulose S.A. -- http://www.aracruz.com.br/-- with
operations in the Brazilian states of Espirito Santo, Bahia,
Minas Gerais and Rio Grande do Sul -- as well as China and
Switzerland -- is the world's largest producer of bleached
eucalyptus kraft pulp. All of the highquality hardwood pulp and
lumber supplied by the company is produced exclusively from
planted eucalyptus forests. The Aracruz pulp is used to
manufacture a wide range of consumer and value-added products,
including premium tissue and top quality printing, writing and
specialty papers. The lumber, produced in a high-tech sawmill
located in the extreme south of the State of Bahia, is sold
under the brand name Lyptus to the furniture and interior design
industries in Brazil and abroad.
* * *
Standard and Poor's Ratings Services assigned a 'BB-' rating to
Aracruz Celulose S.A.'s foreign currency.
ASIA FINANCIAL: Creditors' Proofs of Debt Due on Dec. 29
--------------------------------------------------------
Asia Financial Resources Ltd, which is in members' voluntary
liquidation, requires its creditors to submit their proofs of
debt to Liquidators Seng and Lo by Dec. 29, 2006.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the company will make.
The Liquidators can be reached at:
Natalia K M Seng
Susan Y H Lo
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
BANK OF CHINA: Fitch Keeps Individual Rating at D
-------------------------------------------------
On December 14, 2006, Fitch Ratings affirmed the ratings of Bank
of China:
-- Long-term Issuer Default rating at A-;
-- Short-term IDR at F2;
-- Individual rating at D;
-- Support rating at 1; with Positive Outlook.
BOC's IDR, one notch below China's sovereign rating, is driven
by very high expectations of state support in the event of
stress, as highlighted by the bank's Support rating.
BOC's Individual rating reflects its much-improved financial
position, following government-funded capital and NPL support,
the introduction of a consortium of foreign investors, and mid-
2006 initial public offering. BOC's return on average assets
rose from a low 0.25% in 2001 to 0.89% at end-Jun 2006, the
second highest among China's nationwide commercial banks, while
non-interest income comprised a high 20% of total operating
income, almost double that of local peers.
Asset quality also has strengthened notably, with the ratio of
non-performing loans/total loans falling to an all-time low of
4.2% at end-June 2006 from 26.7% in 2001, and loan loss reserve
coverage rising from 17% to 87% of NPLs over the same time
period. This summer's H- and A-share IPOs also bolstered BOC's
capital base, with the ratio of equity/assets increasing to 7.4%
at H106 from 5.4% at end-2005 and the total capital adequacy
ratio rising to a relatively robust 12.4% from 10.4% over the
same period. While recent progress has been encouraging, Fitch
believes that sustaining this momentum post-IPO will be key in
addressing remaining challenges.
Fitch notes that while BOC's profitability is fairly solid
compared to its local peers, it remains modest by international
standards. The agency also notes that a disproportionately high
share of BOC's total earnings are derived from the bank's Hong
Kong operations. At the same time, asset quality continues to
pose concerns given the high level of loans classified as
'Special Mention', which comprised 10.9% of total loans at end-
June 2006.
BANK OF SHANGHAI: Individual Rating Stays at D, Fitch Says
----------------------------------------------------------
On December 14, 2006, Fitch Ratings affirmed the ratings of Bank
of Shanghai:
-- Long-term IDR at BB-;
-- Short-term IDR at B;
-- Individual rating at D;
-- Support rating at 4; with Stable Outlook.
The ratings of BoS reflect its strong franchise in Shanghai,
above-average earnings, and relatively good management.
However, the ratings are constrained by ongoing concerns about
asset quality, and high geographic, sectoral and borrower
concentration, most notably to property-related sectors.
Reflecting a more prudent growth strategy initiated in 2004,
loan growth remained a modest 5% in 2005 (2004: 6%) vs. a peer
average of 17.2%, and down from an annual average of 30% from
1999 to 2003.
While Fitch takes some comfort in this pullback, very high
exposure to real estate of 46% of total loans is a concern,
particularly in light of the Shanghai property market's
volatility. Asset quality came under some pressure in 2005.
Although the headline NPL ratio dropped from 5.2% to 4.3% from
2004 to 2005, adjusted for sales and write-offs the nominal
amount of NPLs increased by 2.4% of the prior year's performing
loans more than twice the average for other reporting banks
which the bank attributes to the stricter application of
classification criteria.
Meanwhile, loan loss reserve coverage declined to 63% of total
NPLs in 2005 from 79% in 2004, and loans classified as 'Special
Mention' continue to constitute a high 10% of 2005's total
loans. Notwithstanding these concerns, BoS has made noteworthy
progress in enhancing its risk management by creating a new Risk
Management Department at head office and introducing new
centralized loan approval, disbursement, and after-loan
monitoring centers. At the same time, the bank's core
profitability defined as pre-provision operating profit/assets
ranks as the second highest among commercial banks under our
coverage at 1.8% in 2005, underscored by BoS's relatively low
cost base.
Robust core profits combined with the recent moderation in
growth have fueled a rise in the bank's capital ratios, making
BoS one of the few Chinese banks where internal capital
generation is sufficient to support growth. In 2005, BoS's
equity/assets ratio rose to 4.3% from 3.5%, while its total
capital adequacy ratio increased to 11.1% from 10.9%.
BON HONG: Names Leung Chi Wing as Liquidator
--------------------------------------------
On Nov. 28, 2006, Leung Chi Wing was appointed as liquidator of
Bon Hong Warehouse & Transportation Ltd.
Mr. Wing's appointment was confirmed at the creditors' meeting
held subsequently that same day.
The Liquidator can be reached at:
Leung Chi Wing
Office B, 4/F
Kiu Fu Commercial Building
300 Lockhart Road, Wan Chai
Hong Kong
CHINA EVERBRIGHT: CNY20 Bln Capital Injection Spurs H.K. Listing
--------------------------------------------------------------
China Everbright Bank is likely to speed up its planned listing
in Hong Kong after receiving a boost to its balance sheet from
the government through a CNY20 billion capital injection, The
Standard says citing market sources.
According to the paper, Reuters reported on December 12, 2006,
that the State Council has already approved the listing plan.
The bank -- 21.4% owned by China Everbright Group -- may raise
up to US$3 billion from an H-share float on the Hong Kong bourse
in the first half of next year, The Standard notes.
China Everbright has short-listed China International Capital
Corporation and BNP Paribas to be the sponsors of the offering.
The mandate for the underwriters will be confirmed next month,
market sources said earlier.
In addition the lender is also looking to offer a stake to a
strategic investor before its H-share offering, the paper notes.
This will be the first time Beijing has put state funds into a
second-tier lender, Standard says. The central government
poured a combined US$60 billion into three of the four biggest
banks before their overseas listings over the past few years.
* * *
Headquartered in Beijing, China, China Everbright Bank Company -
- http://www.cebbank.com/-- is the first state-owned commercial
bank with shares held by international financial institutions.
The Troubled Company Reporter - Asia Pacific reported that Fitch
Ratings affirmed on August 14, 2006, China Everbright Bank's
Individual 'E' and Support '3' ratings.
According to the rating agency, China Everbright Bank's
Individual 'E' rating reflects its still weak, though improving,
financial profile, and continued poor public transparency and
disclosure. China Everbright is also in the process of
undergoing major restructuring and is waiting in queue for
government support.
CHINA SOUTHERN: Orders Engines from MTU for EUR110 Million
----------------------------------------------------------
MTU Aero Engines expects to generate revenue of EUR110 million
following an order from China Southern for V2500 engines,
Reuters reports.
"China plays an ever increasing roll in the global airline
industry. We are excellently positioned in this market with
diverse ventures and our maintenance subsidiary in Zhuhai," MTU
Aero Chief Executive Udo Stark said in a statement.
Reuters notes that the overall volume of China Southern's engine
order for the IAE consortium, to which MTU Aero belongs, was
US$1.35 billion.
* * *
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings has downgraded China Southern
Airlines Company Limited's Foreign Currency and Local Currency
Issuer Default Ratings to B+ from BB-.
The Troubled Company Reporter - Asia Pacific reported in April
2006, that the carrier posted a net loss of CNY1.85 billion for
2005 versus a net loss of CNY48 million a year earlier.
DAIMLERCHRYSLER: Freightliner to Lay Off 800 Workers in Canada
--------------------------------------------------------------
Freightliner LLC, a subsidiary of DaimlerChrysler AG, disclosed
plans for production rate adjustments at its truck manufacturing
plant in St. Thomas, Ontario, affecting 800 employees in the
process.
These changes are the first in a series of measures that will
affect all the company's vehicle and component assembly plants
during the first quarter of 2007. As many as 4,000 production
and related workers may be affected.
All manufacturers of heavy and medium trucks, as well as the
suppliers of components used in their assembly, are facing a
dramatic reduction in volumes presently. Truck buyers in all
markets are showing hesitation to purchase trucks equipped with
the new engine technology necessary to meet the diesel exhaust
emissions standards that go into effect in Canada and the United
States on Jan. 1, 2007.
Depending on specification and weight class, Freightliner LLC
vehicles are subjected to price increases ranging from US$4,600
to US$12,500, before application of taxes, for the new engines.
It is clear that all residents of North America benefit from the
cleaner atmosphere that will ultimately result, but it is
equally obvious that the costs associated with this worthy
initiative are borne almost entirely by the truck manufacturing
industry's employees, suppliers, shareholders, and dealers.
"Workforce reductions are always the last thing any of us want
to do," Freightliner LLC president and chief executive officer
Chris Patterson said. "Unfortunately it has become necessary at
this point as the entire industry is dealing with an
extraordinary market situation.
"We will continue to monitor the market closely and make
adjustments accordingly but we anticipate further reductions of
up to 3,200 workers in the first few months of 2007. We are
anticipating that demand will begin to recover in the second
half of the year, as our customers gain confidence in the new
technology, and their existing vehicles suffer the effects of
aging. We expect to be able to make some positive workforce
adjustments at that time."
Affected employees in St. Thomas were already notified.
The St. Thomas plant, operated by Freightliner Canada Ltd.,
produces the company's Sterling-brand heavy- and medium-duty
trucks.
About Freightliner LLC
Headquartered in Portland, Ore., Freightliner LLC --
http://www.freightliner.com/-- is a medium- and heavy-duty
truck manufacturer in North America. Freightliner produces and
markets Class 3-8 vehicles and is a company of DaimlerChrysler.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
DaimlerChrysler has operations in China, Indonesia, Japan,
Korea, Malaysia, Thailand, and Australia,
* * *
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
* * *
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
To improve the earnings situation of the Chrysler Group as
quickly and comprehensively, measures to increase sales and cut
costs in the short term are being examined at all stages of the
value chain, in addition to structural changes being reviewed as
well.
FIAT SPA: Sells Stake in Meridian Technologies for EUR132 Mln
-------------------------------------------------------------
Fiat S.p.A., through Teksid S.p.A., and Norsk Hydro reached an
agreement for the sale of their interests in Meridian
Technologies Inc. to a consortium of investors headed by the
Swiss holding company Estatia AG. Fiat holds 51% in Meridian
while Norsk Hydro holds 49%.
The total value of the transaction, subject to usual price
adjustment conditions, is worth around CDN200 million equivalent
to EUR132 million.
The transaction is part of Teksid's strategy to focus on its
core business and is subject to the closing of the financing to
the purchaser by financial institutions and approval by
competent authorities.
For the Fiat Group this disposal will entail a loss at the
consolidated level of around EUR20 million and a lower net debt
for over EUR80 million.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005. Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano. The company
has operations in India and China.
* * *
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB'. At the same time, Standard & Poor's affirmed
its 'B' short-term rating on Fiat. S&P said the outlook is
stable.
Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable. Its Issuer Default rating and senior unsecured rating
are affirmed at BB-. The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.
On November 7, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed the
outlook on Fiat SpA's Ba3 Corporate Family Rating to positive
from stable and affirmed the long-term senior unsecured ratings
as well as the short-term non-Prime rating.
GE-ICE: Members to Receive Wind-Up Report on January 9
------------------------------------------------------
The members of GE-Ice Ltd will meet on Jan. 9, 2007, at
10:30 a.m., to receive Liquidator Fung Tat Man's report of the
company's wind-up proceedings.
According to the TCR-AP, the company was placed under voluntary
wind-up on July 17, 2006.
The Liquidator can be reached at:
Fung Tat Man
3605, 36/F., West Tower
Shun Tak Centre
168-200 Connaught Road Central
Hong Kong
GLOBAL POWER: Closes US$85 Million DIP Financing Credit Facility
----------------------------------------------------------------
Global Power Equipment Group Inc. closed on its US$85 million in
debtor-in-possession credit facility from Morgan Stanley Senior
Funding, Inc., which had provided the company with a preliminary
commitment on Nov. 21, 2006.
Effective immediately, Global Power will apply the proceeds of
the new DIP credit facility to refinance Global Power's existing
senior secured revolving debt and term loan, as well as its
previously announced interim DIP credit facility of US$10
million arranged by Bank of America. In addition, the company
will use the new DIP credit facility as additional liquidity in
support of ordinary course business operations.
John Matheson, President and Chief Executive Officer of Global
Power, said, "Our receipt of this new credit facility
constitutes a significant milestone that Global Power has
achieved as we focus on moving forward as expeditiously as
possible in our reorganization process. Going forward, we will
continue to concentrate on serving our customers and positioning
the company across our key markets."
Michael Hanson, Chief Financial Officer of Global Power, said,
"We are pleased with our new DIP credit facility, which will
help provide us with adequate levels of financing to stabilize
our operations and meet customer needs. At the same time, by
refinancing our interim DIP and previous revolving debt and term
loans, this new credit facility has also streamlined and brought
a greater level of clarity to our debt structure."
The company expects to file an 8-K outlining the final terms and
conditions of the DIP credit facility with the U.S. Securities
and Exchange Commission shortly.
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.
INTERNATIONAL PAPER: Receives Tenders of US$3.64B of Bonds
----------------------------------------------------------
International Paper disclosed that, according to information
provided by Global Bondholder Services Corporation, the
depositary and information agent for the company's previously
announced tender offer, an aggregate principal amount of US$3.64
billion of the bonds were validly tendered and not validly
withdrawn on or before 5:00 p.m., New York City time, on Dec. 6,
2006.
On Nov. 22, 2006, International Paper announced its offer to
purchase a portion of its debt securities, subject to a total
purchase price of US$2.35 billion (excluding accrued interest,
fees and expenses). The full terms and conditions of the tender
offer are stated in the company's offer to purchase and related
letter of transmittal, each dated Nov. 22, 2006.
The amount of each series of bonds that are purchased in the
tender offer will be determined in accordance with the
priorities identified in the column "Acceptance Priority Level"
in the table following this release. The tender offer will
expire at 12:00 midnight, New York City time, on Dec. 20, 2006,
unless extended by the company.
Because an amount in excess of US$2.35 billion in aggregate
principal amount of bonds were tendered as of the early tender
date, International Paper will not accept all of the notes
tendered for purchase. The company's
-- 4.25% Notes due 2009 (CUSIP No. 460146BV4),
-- 5.30% Notes due 2015 (CUSIP No. 460146BU6),
-- 5.25% Notes due 2016 (CUSIP No. 460146BZ5),
-- 4.00% Notes due 2010 (CUSIP No. 460146BY8) and
-- 6.65% Notes due 2037 (CUSIP No. 158525AU9)
will not be accepted for purchase, and tendered notes of these
series will be promptly returned to the tendering parties.
Banc of America Securities LLC, Citigroup Global Markets Inc.,
J.P. Morgan Securities Inc. are the dealer managers of the
tender offer and Barclays Capital Inc., Deutsche Bank Securities
Inc. and Morgan Stanley are serving as co-dealer managers for
the tender offer. Global Bondholder Services Corporation has
been retained to serve as the depositary and information agent.
Questions regarding the tender offer may be directed to:
Banc of America Securities LLC
Tel: (866) 475-9886 (toll-free)
-- or --
Citigroup Global Markets Inc.
Tel: (800) 558-3745 (toll- free)
-- or --
J.P. Morgan Securities Inc.
Tel: (866) 834-4666 (toll-free)
Questions regarding the tendering of notes or requests for
copies of the offer to purchase, letter of transmittal and
related materials should be directed to:
Global Bondholder Services Corporation
Tel: (212) 430-3774
(866) 470-4200 (toll- free)
Notes Subject To The Tender Offer
The table provides the estimated aggregate principal amount
validly tendered and not validly withdrawn for each series of
notes subject to the tender offer as of 5:00 p.m., New York City
time, on Wednesday, Dec. 6, 2006.
CUSIP Title of Security Aggregate Principal
Number Amount Outstanding
158525AQ8 7.75% Debentures due 2025 $123,642,000
158525AR6 7.35% Debentures due 2025 $174,995,000
460146BD4 6.875% Debentures due 2029 $134,715,000
158525AT2 7.20% Debentures due 2026 $200,000,000
158525AV7 7.15% Debentures due 2027 $80,175,000
460146AP8 6.875% Debentures due 2023 $190,000,000
313693AD5 10.0% Debentures due 2011 $23,421,000
313693AF0 8.875% Debentures due 2012 $95,855,000
460146BS1 3.80% Notes due 2008 $288,085,000
905530AH4 9.25% Debentures due 2011 $124,800,000
460146BN2 6.75% Notes due 2011 768,634,000
460146BX0 5.50% Notes due 2014 $351,301,000
460146BQ5 5.85% Notes due 2012 $802,771,000
460146BV4 4.25% Notes due 2009 $407,115,000
460146BU6 5.30% Notes due 2015 $451,588,000
460146BZ5 5.25% Notes due 2016 $281,120,000
460146BY8 4.00% Notes due 2010 $414,350,000
158525AU9 6.65% Notes due 2037 $100,000,000
CUSIP Acceptance Reference U.S. Aggregate Principal
Number Priority Treasury Security Amount Validly
Level Tendered and Not
Validly
Withdrawn
158525AQ8 1 4.50% US Treasury Note $92,213,000
due Feb. 15, 2036
158525AR6 2 4.50% US Treasury Note $131,163,000
due Feb. 15, 2036
460146BD4 3 4.50% US Treasury Note $97,475,000
due Feb. 15, 2036
158525AT2 4 4.50% US Treasury Note $39,600,000
due Feb. 15, 2036
158525AV7 5 4.50% US Treasury Note $52,621,000
due Feb. 15, 2036
460146AP8 6 4.50% US Treasury Note $95,717,000
due Feb. 15, 2036
313693AD5 7 4.625% US Treasury Note $22,294,000
due Oct. 31, 2011
313693AF0 8 4.625% US Treasury Note $79,301,000
due Nov. 15, 2016
460146BS1 9 4.875% US Treasury Note $196,363,000
due Oct. 31, 2008
905530AH4 10 4.625% US Treasury Note $80,421,000
due Oct. 31, 2011
460146BN2 11 4.625% US Treasury Note $561,934,000
due Oct. 31, 2011
460146BX0 12 4.625% US Treasury Note $242,575,000
due Nov. 15, 2016
460146BQ5 13 4.625% US Treasury Note $683,912,000
due Nov. 15, 2016
460146BV4 14 4.875% US Treasury Note $339,621,000
due Oct. 31, 2008
460146BU6 15 4.625% US Treasury Note $307,856,000
due Nov. 15, 2016
460146BZ5 16 4.625% U.S. Treasury Note $224,228,000
due Nov. 15, 2016
460146BY8 17 4.625% U.S. Treasury Note $360,367,000
due Nov. 15, 2009
158525AU9 18 4.50% U.S. Treasury Note $36,150,000
due Feb. 15, 2036
About International Paper
Based in Stamford, Connecticut, International Paper Company
(NYSE: IP) -- http://www.internationalpaper.com/-- is in the
forest products industry for more than 100 years. The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia,
specifically Japan and China. These businesses are complemented
by an extensive North American merchant distribution system.
International Paper is committed to environmental, economic and
social sustainability, and has a long-standing policy of using
no wood from endangered forests.
* * *
Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper
Company on Dec. 5, 2005.
JABIL CIRCUIT: Provides Update on Late Filing of Form 10-K
----------------------------------------------------------
Jabil Circuit, Inc., disclosed that it was not able to file its
annual report on Form 10-K for its fiscal year ended Aug. 31,
2006, by Nov. 29, 2006, the date by which the applicable rules
of the U.S. Securities and Exchange Commission required Jabil to
file its 2006 Form 10-K in order for it be considered to have
filed it in a timely manner.
Jabil is involved in several shareholder derivative and
purported securities class action lawsuits in connection with
certain historical stock option grants. Jabil is also
responding to an informal inquiry from the SEC and has responded
to a subpoena from the U.S. Attorney's office for the Southern
District of New York that relate to such grants. Separately, a
Special Review Committee of Jabil's Board of Directors was
appointed to review the allegations in certain of the derivative
actions. Jabil said it is cooperating fully with the Special
Review Committee, the SEC and the U.S. Attorney's office.
In light of these developments, Jabil, through its legal
counsel, assisted by accounting advisors, has been evaluating
its historical stock option grant practices. The evaluation is
not complete. The Special Review Committee has largely
completed its investigation of the allegations in the
shareholder derivative suits it is acting in response to, and
has authorized Jabil to announce that, "The Special Review
Committee has concluded that there is no merit to the
allegations in the State Court derivative complaints that
Jabil's officers issued themselves backdated stock options or
attempted to cause others to issue them."
As a result of Jabil's ongoing review of these matters, Jabil
disclosed on Nov. 14, 2006, that it had concluded that it would
need to restate at least its 2005 financial statements and
related disclosures, and that it had not conclusively determined
if financial statements for other time periods might need to be
restated nor the exact amount of required restatements.
Historical stock options grants that could merit an adjustment
to Jabil's historical financial statements date back to 1996.
However, Jabil has thus far only determined that such
adjustments are sufficiently material so as to require it to
restate its 2005 financial statements. Jabil and its Audit
Committee continue to evaluate the impact of Jabil's historical
stock option grant practices on its financial statements for the
periods at issue. They are also reviewing unrelated matters for
the periods covered by such financial statements. Thus far, no
stock option related or unrelated issue reviewed has been
determined to be sufficiently material to lead them to conclude
that any additional financial statements need to be restated.
However, because the review of such financial statements remains
ongoing, there can be no assurance that it will not be
determined that additional financial statements may need to be
restated due to historical option practices or unrelated events.
Jabil will not be in a position to determine the timing of the
filing of its 2006 Form 10-K until the evaluation of its
historical financial statements has been completed and its
independent registered public accounting firm is able to
complete its audit of the financial statements to be included in
such Form 10-K.
As a result of Jabil not timely filing its 2006 Form 10-K, Jabil
received a letter on Dec. 1, 2006, from the New York Stock
Exchange notifying it that it is subject to the NYSE procedures
pursuant to which the NYSE will monitor Jabil and the filing
status of its 2006 Form 10-K. If Jabil has not filed its 2006
Form 10-K within six months of the filing due date (as extended
by Form 12b-25), the NYSE will determine whether Jabil should be
given up to an additional six months to file its 2006 Form 10-K.
If the NYSE determines that such an additional time period is
not appropriate, suspension and delisting procedures could be
commenced.
The lenders under Jabil's unsecured revolving credit facility
agreed to waive, without charging a fee, the requirement that
Jabil deliver to the lenders its quarterly and annual financial
statements until Feb. 2, 2007. Approximately US$220 million in
borrowings are outstanding under that credit facility. In
addition, the indenture governing Jabil's $300 million of 5
percent Notes requires Jabil to deliver its 2006 Form 10-K to
the bond trustee within 15 days of the deadline for filing the
2006 Form 10-K with the SEC (as extended by Form 12b-25).
Hence, if that does not occur by Dec. 14, 2006, the holders of
25 percent of the outstanding amount of the 5 percent Notes
could require Jabil to deliver the 2006 Form 10-K within 60
days, and if Jabil fails to satisfy such delivery requirement
they can attempt to accelerate the 5 percent Notes to be
immediately due. Jabil is assessing what acts it might take in
response to those developments should they occur, which could
include seeking a waiver of the requirement to deliver its 2006
Form 10-K, repaying the 5 percent Notes or contesting the
ability of the 5 percent Notes to be accelerated.
Finally, Jabil's annual shareholders meeting, which was
scheduled for mid-January 2007, will be rescheduled for a later
date that will be determined after it files its 2006 Form 10-K.
Jabil Circuit, Inc. (NYSE:JBL) -- http://www.jabil.com/-- is an
electronic product solutions company providing comprehensive
electronics design, manufacturing and product management
services to global electronics and technology companies. Jabil
Circuit has more than 50,000 employees and facilities in 20
countries, including Brazil, Mexico, Austria, and China.
* * *
Standard & Poor's Ratings Services placed a BB+ preliminary
rating on Jabil Circuit's US$1.5 billion senior and subordinated
debts on Aug. 19, 2005.
LERIC INTERNATIONAL: To Hold First Meetings on December 19
----------------------------------------------------------
Leric International Ltd will hold the first meetings for its
contributories and creditors on Dec. 19, 2006, at 2:30 p.m. and
3:30 p.m., respectively, to determine:
-- whether to seek Court approval for the appointment of a
liquidator in place of the joint and several provisional
liquidators;
-- whether to seek Court approval for the appointment of
contributories and creditors for the Committee of
Inspection; and
-- whether the proposed liquidator should be entitled for
remuneration on a time-costs basis or other basis as
determined by the Court under the Companies Ordinance and
the remuneration should be paid out of the assets of the
company.
The Troubled Company Reporter - Asia Pacific previously reported
that Show Win Industries Ltd filed the wind-up petition against
the company. The Court heard the petition on Oct. 25, 2006.
About Leric International
Leric International Ltd manufactures clothes for men and women.
The company is located in Cheung Sha Wan, KLN, Hong Kong.
MTU AERO: Appoints Wolfgang Konrad as Unit's New President & CEO
----------------------------------------------------------------
Wolfgang Konrad will succeed Andre Wall as President and Chief
Executive Officer of MTU Aero Engines' Ludwigsfelde-based
affiliate MTU Maintenance Berlin-Brandenburg, effective Feb. 1,
2007.
Mr. Wall will be leaving the company to accept an executive
management position at Swiss-based Jet Aviation.
Mr. Konrad, 44, has held various management positions at BMW
since 1998, ultimately as head of quality management, body
engineering.
From 1993 to 1998, Mr. Konrad had been working for BMW Rolls-
Royce Aero Engines GmbH at Dahlewitz. He started out in the
combustion, components, aerodynamics area, became manager of the
staged combustor group and finally general manager, air and oil
systems.
He had accumulated international experience already in his years
studying in France and at Cornell in the U.S., receiving his
doctor's degree from Princeton, U.S.
From 2002 to 2005, Mr. Konrad served as Head of Quality
Assurance and Manufacturing Engineering at BMW's Plant Hams Hall
in Great Britain.
MTU Maintenance Berlin-Brandenburg, an affiliate of MTU Aero
Engines, specializes in the maintenance, repair and overhaul of
aircraft engines in the lower thrust and power categories, as
well as industrial gas turbines.
The company is headquartered in Ludwigsfelde near Berlin, where
it also does the final assembly of most of the low-pressure
turbines manufactured by the MTU group. The company has a
significant role in the TP400-D6 engine to power the Airbus
A400M military transport: MTU Maintenance Berlin-Brandenburg has
Europe's only TP400-D6 production test cell to conduct the
development and acceptance tests on the engine. Final assembly
of the European production TP400-D6s also is the sole
responsibility of the Ludwigsfelde site.
About MTU Aero
Headquartered in Munich, Germany, MTU Aero Engines --
http://www.mtu.de/-- develops, manufactures, markets and
repairs commercial and military engine modules and components
for aircraft engines and industrial gas turbines. The company
has operations in China.
* * *
Standard & Poor's Ratings raised its long-term corporate credit
rating on aircraft engine and component manufacturer MTU Aero
Engines Holding AG, and on related entity MTU Aero Engines
Investment GmbH to 'BB+' from 'BB', reflecting improvements in
the group's operating performance.
S&P said the outlook is stable. At the same time, the rating on
MTU Investment's subordinated debt was raised to BB- from B+.
MTU AERO: Moody's Changes Outlook on Improved Credit Profile
------------------------------------------------------------
Moody's Investors Service changed the outlook on the Ba2
Corporate Family Rating of MTU Aero Engines Investment GmbH to
positive from stable and affirmed the Ba2 Corporate Family
rating as well as the Ba3 rating for the senior notes.
The last rating action was on July 18, 2005, when the ratings
were upgraded from Ba3/B2 respectively.
"The outlook change to positive reflects the constant
improvements in MTU's credit profile, driven by an improving
operating performance and cash generation resulting from
favourable industry trends, a successful strategy implementation
as well as a reduction in financial leverage.
This trend is evidenced by improvements of credit metrics in
line with the higher range of the Ba rating category -- notably
Debt to EBITDA of 2.3x in the 12 months ended Sept. 2006 up from
2.8x in 2005 -- which are expected to be generated on a
sustained basis as a driver for a possible rating upgrade," said
Christian Hendker, the lead-analyst at Moody's for MTU.
The outlook change to positive was prompted by further
strengthened operating performance resulting from:
(1) strong growth in the Maintenance, Repair and Overhaul
(MRO) division due to rising demand for maintenance
services;
(2) solid growth in the commercial and military original
equipment manufacturer (OEM) business; and
(3) the constant implementation of cost reduction measures
and efficiency improvements.
Further supported by positive free cash flows and proceeds of
the IPO in 2005, the majority of MTU's credit metrics have
consequently improved towards the higher range of the Ba rating
category. The positive outlook reflects Moody's expectation
that MTU should be able to further strengthen its operating
performance on a sustained basis driven by the benefits of
continued global air traffic growth and further cost structure
adjustments. In addition Moody's expects continuous
improvements in segmental diversification by further profitably
expanding the commercial MRO division to increasingly offsets
the cyclicality of the OEM business as well as the
implementation of measures to successfully reduce the foreign
exchange exposure also in the scenario of a potentially
weakening US-Dollar.
An upgrade in MTU's ratings within the next 12 to 18 months
would be triggered by evidence of a sustained strengthening of
the Group's financial profile in 2007 and beyond, as evidenced
by:
(i) an EBITA-Margin between 8-10%;
(ii) constant positive free cash flow generation;
(iii) sustained improvement of credit metrics, supported
by RCF to net debt constantly above mid-teens,
and improving EBIT to Interest Coverage towards 3.0x;
(iv) preservation of a solid liquidity cushion supported by
moderate Working Capital volatility, and
(v) modest shareholder orientation.
Downward pressure on MTU's ratings could be prompted by a
reduction in EBITA-margins resulting from a deterioration in the
underlying operational performance of the Group. Further,
whilst Moody's expects the company may undertake debt-financed
bolt-on acquisitions, any acquisition resulting in a
deterioration of credit metrics beyond the company's current
metrics is likely to constrain the rating.
MTU's Ba2 rating reflects:
(1) the company's leadership position as a global supplier of
aero engines, sub-systems and components,
(2) benefits from revenue diversity due to the company's
diverse engine portfolio and segmental diversification;
(3) revenue stability and visibility based on long-term
contracts and the high market barriers to entry that
exist in the aeronautical industry;
(4) its long-term customer relationships and its position as
the main provider of military engines and MRO services to
the German Air Force; and
(5) solid liquidity position given access to EUR250 million
senior revolving credit facility.
MTU's Ba2 rating is constrained by:
(1) Cash Flow variability driven by Working Capital
volatility;
(2) funding needs that are highly determined by customers'
willingness to continuously provide substantial advance
payments;
(3) substantial R&D spending and investment needs to sustain
competitive advantage;
(4) exposure to U.S. dollar/euro fluctuations; and
(5) a cyclical industry with event risk, and the influence of
high jet fuel prices on market conditions.
Issuer: MTU Aero Engines Investment GmbH
* Outlook, Changed To Positive From Stable
Headquartered in Munich, Germany, MTU Aero Engines --
http://www.mtu.de/-- develops, manufactures, markets and
repairs commercial and military engine modules and components
for aircraft engines and industrial gas turbines. The company
has operations in China.
PETROLEOS DE VENEZUELA: Inks Four Agreements with Petrobras
-----------------------------------------------------------
The presidents of Petroleo Brasileiro SA aka Petrobras, Jose
Sergio Gabrielli de Azevedo, and of Petroleos da Venezuela SA,
Rafael Ramirez, held a work meeting on Dec. 7 at the Palacio do
Planalto, in Brasilia and signed these four agreements during
the event:
1. Letter of Intent to mobilize good and service vendors, in
Brazil and Venezuela
New agreement aimed at encouraging competitiveness among
Brazilian and Venezuelan vendors for the projects
developed jointly by Petrobras and PDVSA, in both
countries. The agreement foresees wide-ranging and equal
treatment of issues relative to national good and service
content, both Brazilian and Venezuelan, in all agreements
signed by the two companies.
2. Memorandum of Understanding to develop a Joint Project at
the Orinoco Range, and the Abreu e Lima refinery, in
Pernambuco
Renewal, for another year, of the joint memorandum of
understanding for the extra-heavy oil exploration projects
in the Carabobo-1 block, in the Orinoco Range region, in
Venezuela, and the Abreu e Lima Refinery project, to be
built in the State of Pernambuco.
3. Additive to the Agreement to study the joint development
of the Mariscal Sucre Project, involving Petrobras and
Petroleos de Venezuela.
Extension of the pre-agreement for the joint development
of the Mariscal Sucre project, composed of four gas fields
located in the Paria Gulf, Venezuela. The agreement will
be renewed through March 2007 to give the companies the
chance to wrap the project's negotiations up.
4. Additive to the Letter of Intent to Identify Hydrocarbon
Business Opportunities in Block 5 of the Deltana Platform
Project
Renewal of the letter of intent for the exploratory
activities at Block 5, located in the Deltana Platform
region, in Venezuela, through March 2007. The goal of the
renewal is to allow additional information to be acquired
to assist the two companies in their decision-making
process.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- 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.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.
PETROLEOS DE VENEZUELA: Restarting Operations at Amuay Refinery
---------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil company of
Venezuela, will try to restart operations at the catalytic
cracker at the Amuay plant early this month, El Universal
reports, citing operators.
As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Petroleos de Venezuela said that the furnace of
the Amuay refinery's hydro-desulfurization unit was temporarily
shut down. A Nov. 24 operational event, rumored to be an
explosion, affected a furnace of the Hydrosulfurization Unit
Number 4 of Amuay. The unit affected was in startup, after
being shutdown for maintenance in September. The company did
not expect the event to affect fuel supply commitments.
Reuters relates that due to the operational troubles, Petroleos
de Venezuela has had to purchase more gasoline and gasoline
components.
"Pdvsa (Petroleos de Venezuela) has informed us that it is
planning to restart the catalytic cracker early December, but we
do not know it so far. It is not ready yet," an operator told
El Universal.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.
SCORE TARGET: Liquidators Cease to Act
--------------------------------------
On Nov. 28, 2006, Alan C W Tang and Wong Kwok Man ceased to act
as joint and several liquidators of Score Target Investment Ltd.
The Troubled Company Reporter - Asia Pacific reported that
Liquidators Tang and Man presented the wind-up accounts during
the creditors' meeting held on Dec. 19, 2005.
The former Liquidators can be reached at:
Alan C W Tang
Wong Kwok Man
Grant Thornton
Certified Public Accountants
13/F, Gloucester Tower
The Landmark
15 Queen's Road, Central
Hong Kong
About Score Target
Score Target Investment Limited is a wholly owned subsidiary of
Y. T. Realty Group Limited, which is a Hong Kong-based
investment holding company that is principally engaged in
property investment, property trading and investment holding.
Y. T. Realty Group Limited operates in four business segments:
property investment; property trading; property management and
related service; and operation of driver training centers and
tunnel operation and management.
START CLO: Fitch Affirms Notes Ratings due 2014
-----------------------------------------------
On December 14, 2006, Fitch Ratings has affirmed the ratings of
Start CLO Limited's notes due 2014:
-- US$100 million Class A notes: AAA
-- US$20m Class B notes: AAA
-- US$12m Class C notes: AA-
-- US$18m Class D notes: BBB
-- US$12m Class E notes: BB
The transaction, which was arranged by Deutsche Bank AG, is
subject to replenishments by Standard Chartered Bank in the
first three years subject to certain conditions being met
including the Fitch Vector Test. There have been replenishments
since closing, made mainly due to amortization of the underlying
assets. The replenishments have led to the Weighted Average
Rating Factor of the portfolio being kept broadly stable at
3.01, which is equivalent to a Fitch rating of A-/BBB+, versus a
WARF of 2.97 at closing. There has been no default since
closing.
The three largest country concentrations of the current
portfolio are:
-- U.S. (33.99%);
-- Hong Kong (18.51%); and
-- U.K. (12.30%).
Asian assets represent 38.96% of the latest portfolio, broadly
unchanged from the initial reference portfolio. Proceeds from
the issue of the notes are currently deposited with the account
bank, Deutsche. However, this can be switched to a repo
agreement, when eligible securities will be purchased and held
by the issuer in exchange for repo premiums paid by a repo
counterparty rated at least A/F1. The repo counterparty is
subject to downgrade triggers.
The ratings address the likelihood of receiving payment of
interest and ultimate repayment of principal by legal maturity
in 2014, in accordance with the transaction documentation.
TAG-IT PACIFIC: Earns US$13.4 Million in Third Quarter of 2006
------------------------------------------------------------
Tag-it Pacific Inc. reported a US$339,117 of net income on
US$13.4 million of net sales for the third quarter ended Sept.
30, 2006, compared with a US$10.3 million net loss on US$9.5
million of net sales for the same period in 2005.
The increase in sales for the three months ended Sept. 30, 2006,
as compared with the same period in 2005 was due to double-digit
revenue growth in all of the company's product categories,
despite lower sales of trim products in Mexico and the shift of
both U.S. and Mexico production from these areas to Asia and
other worldwide markets.
Sales in the three months ended Sept. 30, 2005, was negatively
impacted by the business restructuring that began in the third
quarter of 2005 closing the Mexican assembly and U.S.
manufacturing facilities, including the discontinuance of the
thread product line in said period.
Operations in the third quarter of 2006 was positively affected
by lower cost of sales and interest expenses in the third
quarter of 2006, compared with the same period in 2005. Cost of
sales was US$9.2 million or US$2.3 million less than cost of
sales for the same period in 2005, attributable to costs
associated with sales volume changes, improved product margins,
reduced distribution charges since more products are now sourced
and delivered within the same market place, reduced
manufacturing and assembly overhead costs, and lower provisions
for obsolescence as inventory levels have been reduced and turns
accelerated.
Interest expense decreased by approximately US$106,000 for the
three months ended Sept. 30, 2006, as compared with the same
period in 2005, due primarily to lower average borrowings.
Cash and cash equivalents for the nine months ended Sept. 30,
2006, increased US$1,449,000 from Dec. 31, 2005, principally
arising from cash generated by operating activities, net of
payments on notes payable and capital leases.
At Sept. 30, 2006, the company's balance sheet showed
US$27.7 million in total assets, US$26.1 million in total
liabilities, and US US$1.5 million in total stockholders'
equity.
Full-text copies of the company's third quarter financials are
available for free at http://researcharchives.com/t/s?1606
Going Concern Doubt
As reported in the Troubled Company Reporter on June 7, 2006,
Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles, Calif.,
raised substantial doubt about Tag-It Pacific, Inc.'s ability to
continue as a going concern after auditing the company's
consolidated financial statements for the year ended Dec. 31,
2005. The auditor pointed to the company's incurred net losses
and accumulated deficiencies.
About Tag-It Pacific
Tag-It Pacific, Inc., -- http://www.tagitpacific.com/--
distributes apparel items to fashion manufacturers in Hong Kong,
United States, Mexico, the Dominican Republic, and Central and
South America. Also it offers formed wire metal zippers for the
jeans and sportswear industries.
TAI SUN: Creditors Name Tang Hoi Tung as Liquidator
---------------------------------------------------
The creditors of Tai Sun Plastic Novelties Ltd met on Dec. 1,
2006, and appointed Tang Hoi Tung as liquidator.
As reported by the TCR-AP, Lui Wan Ho ceased to act as
liquidator of the company on Dec. 1.
The Liquidator can be reached at:
Tang Hoi Tung
11/F, 2-4 Prat Avenue
Tsim Sha Tsui
Hong Kong
About Tai Sun
Tai Sun Plastic Novelties is a family-run Hong Kong company that
makes toys in Southern China's Guangdong province for J.C.
Penney and Carrefour.
TELETECH COMMUNICATION: First Meetings Scheduled on Dec. 19
-----------------------------------------------------------
The first meetings of the creditors and contributories of
Teletech Communication Ltd will be held at the Official
Receiver's Office, 10th Floor, Queensway Government Offices, 66
Queensway, Hong Kong on Dec. 19, 2006, at 10:30 a.m. and 11:30
a.m., respectively.
The Troubled Company Reporter - Asia Pacific previously reported
that Chi Kee Investment Co Ltd filed the petition against the
company. The Court heard on the petition on Sept. 27, 2006.
About Teletech Communication
Teletech Communication Ltd provides professional equipment and
supplies.
The company is located in KLN, Hong Kong.
VOLKSWAGEN AG: Audi Production Ensures 3,000 Jobs at Brussels
-------------------------------------------------------------
Volkswagen AG disclosed that the production of the future entry-
level Audi model A1 at the Brussels plant could ensure
employment for up to 3,000 people at the site from 2009.
This was the result of a summit meeting on Dec. 1 between Dr.
Ferdinand Piech, chairman of the supervisory board of Volkswagen
AG, and Martin Winterkorn, outgoing chairman of the board of
management of Audi AG and designated chairman of the board of
management of Volkswagen AG, with Belgian Prime Minister Guy
Verhofstadt and Employment Minister Peter Vanvelthoven.
"We have taken a key step in the interests of the workforce at
the Brussels plant. Both sides agree that this plant has a
future," Mr. Winterkorn said. He added that all concerned had
demonstrated a clear will to find constructive solutions.
Mr. Winterkorn explained the possibility of producing a new Audi
model at Brussels from 2009 to the government representatives.
"This will be an entry-level model designated as A1.
Considerably more than 100,000 vehicles per year could be
produced, if this proves to be viable at the Brussels plant."
This would allow as many as 3,000 people to be employed at the
site. Some of these people would not be employed directly by
Volkswagen but by other companies.
Another prerequisite would be to find a transitional solution
for the employees concerned up to the possible start of
production in cooperation with the Belgian government and
employees' representatives.
Mr. Winterkorn indicated that investment in the Brussels plant
could start in 2008 if the Audi A1 project were implemented.
Mr. Winterkorn was convinced that negotiations could continue in
an objective atmosphere. In this connection, he stressed that
the resumption of production at the plant, which has currently
been halted, would be a key signal.
Employee Strike
About 25,000 Volkswagen plant employees from Germany, France and
Portugal marched through Brussels to protest the company's
decision in cutting 3,500 jobs at its Brussels assembly plant,
the Associated Press reports.
"For the past decade VW employees have been asked to be
enormously flexible. But it now turns out this flexibility has
not brought us anything," Erwin Declerck of the ABVV trade union
told AP.
As reported in the TCR-Europe on Nov. 27, Volkswagen disclosed
of plans to transfer production of its Golf model at its Belgian
plant to Germany, which could affect 3,500 jobs in Brussels.
AP relates that the recent talks regarding the production of the
latest Audi model in Brussels would partly compensate for the
job cuts previously announced.
Headquartered in Wolfsburg, Germany, the Volkswagen Group --
http://www.volkswagen.de/-- is one of the world's leading
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Africa, and Asia,
including China, Volkswagen has more than 343,000 employees
producing over 21,500 vehicles or are involved in vehicle-
related services on every working day.
* * *
Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs. The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.
In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets. The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year. Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs. The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.
The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult. It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.
WEX PHARMA: Debenture Holders Grant Flexible Repayment Terms
------------------------------------------------------------
WEX Pharmaceuticals Inc. has concluded negotiations with the
holders of its convertible debentures for more flexible
repayment terms designed to relieve the company's current
financial situation.
In place of the fixed installments presently required, WEX has
agreed to pay an amount equal to 20% of the net proceeds
received from all future funding events, such as share
subscription proceeds, licensing fees, or milestone payments.
This arrangement will continue unless WEX fails to make the
payments as required, or until such time as the debenture
holder, acting in good faith, determines that WEX's financial
position has strengthened sufficiently to enable it to resume
fixed installment payments, at which time the parties shall
return to the status pursuant to the Debentures Agreement and
Amending Agreements, and the debenture holders will be entitled
to exercise all of their legal rights.
WEX had approached its debenture holders at the time of the
September 30 installment becoming due to enter into negotiations
to restructure the debenture terms. As a consequence of that
WEX made only a partial payment of the installment due on Sept.
30, 2006, and following agreement in principle being reached on
the restructuring, subsequently made the balance of the payment
together with an additional amount of CDN81,732.
About WEX Pharma
Based in Vancouver, British Columbia, WEX Pharmaceuticals Inc.
(TSX:WXI) -- http://www.wexpharma.com/-- is explores, develops,
manufactures innovative drug products to treat pain. The
company's principal business strategy is to derive drugs from
naturally occurring toxins and develop proprietary products for
the global market. The company's Chinese subsidiary sells
generic products manufactured at its facility in China.
=========
I N D I A
=========
ANDHRA BANK: Ties Up with IIFC to Fund Infrastructure Projects
--------------------------------------------------------------
Andhra Bank signed a memorandum of understanding with India
Infrastructure Finance Company Ltd for the long-term funding of
infrastructure projects, the Business Standard reports.
According to the report, the parties agree to cooperate on
creating a pool of infrastructure projects, undertaking credit
appraisal and due diligence, syndicating funds and co-financing.
The bank has been funding infrastructure projects for the power
sector, expressways, sea and airports and even non-conventional
energy, BS notes. K Ramakrishnan, Andhra Bank chairman and
managing director, believes the substantial scope of the MOU
will help the bank leverage those projects.
"The agreement will help us provide focused and meaningful fund
for infrastructure projects," Mr. Ramakrishnan told BS.
According to the CMD, the bank has already set aside 20% of its
gross bank credit for infrastructure finance.
About Andhra Bank
Headquartered in Hyderabad, India, Andhra Bank --
http://www.andhrabank-india.com/ -- offers various products and
services including deposits, loans, corporate banking products,
non-resident Indian services and technology products. The
deposits offered by the Bank include current deposits, savings
bank deposits and term deposits. It offers housing, personal,
mortgage and agricultural loans. Under corporate banking, it
offers working capital loans, export and import finance, foreign
currency loans, term finance and corporate loans.
As of June 2006, the Bank rendered services through 1,788
business delivery channels consisting of 1,216 branches, 123
extension counters, 412 ATMs and 37 satellite offices spread
over 21 states and two union territories in India.
* * *
On September 16, 2002, Fitch Ratings assigned Andhra Bank a C/D
Individual Rating.
ALLAHABAD BANK: RBI Bars Equity Purchases for FIIs, NRIs & PIOs
---------------------------------------------------------------
The Reserve Bank of India restricts further purchases of
Allahabad Bank's equity shares on behalf of Foreign
Institutional Investors, Non-Resident Indians and Persons of
Indian Origin under Portfolio Investment Scheme.
In a release dated Dec. 13, 2006, RBI notified that no further
purchases of Allahabad's shares be made on behalf of those
restricted entities through stock exchanges in India without the
central bank's prior permission Bank.
Allahabad Bank has reached the limit of 18% of its paid-up
capital, RBI explained.
About Allahabad Bank
Allahabad Bank -- http://www.allahabadbank.com/-- is a public
sector bank in India. The company's offerings include personal
loans, AllBank-Expo scheme, loan against National Savings
Certificate and Kisan Vikas Patra, housing finance, furnishing
loan, car finance and education loan. The Company offers a
range of deposit schemes to the non-resident Indians. The
company has retail banking boutique branches all over India.
The company's other services include AllBank-Property, All
Ayushman Bima Yojana, Cash Management Services, Kisan Credit
Card, Flexi-Fix Deposit, Gold Deposit, SSI Finance, Gold Card
Scheme for Exporters, Kisan Shakti Yojana, Bancassurance and
Mutual fund, Real Time Gross Settlement and Clean Note Policy.
The Troubled Company Reporter - Asia Pacific reported on
September 14, 2006, that Fitch Ratings assigned an Individual
rating of C/D to Allahabad Bank. The Support rating is affirmed
at '4'. The outlook on the rating is stable.
BHARAT PETROLEUM: Unit Signs Production-Sharing Pact with Timor
---------------------------------------------------------------
Bharat Petroleum Corporation Ltd informed the Bombay Stock
Exchange that Bharat PetroResources JPDA Ltd, as part of four-
member consortium, signed a production-sharing contract with the
Timor Sea Designated Authority.
Bharat PetroResources JPDA is a wholly owned subsidiary of
Bharat PetroResources Ltd, which is a wholly owned subsidiary of
Bharat Petroleum.
The other members of the consortium are:
-- Oilex (JPDA 06-103) of Australia (Operator);
-- Global Energy Inc; and
-- GSPC (JPDA) Ltd.
The Sharing Contract, signed on Nov. 15, 2006, was for the Block
JPDA 06-103 in the Joint Petroleum Development Area between East
Timor and Australia. The members of the consortium will each
have 25% participating interest pursuant to the pact.
About Bharat Petroleum
Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene. During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities. There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country. The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.
Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.
On September 23, 2005, the Company delisted its shares from the
Madras Stock Exchange Ltd, Calcutta Stock Exchange Association
Ltd and Delhi Stock Exchange Association Ltd. In November 2005,
Bharat Petroleum's November 2004 profits dissipated and the
Company registered a INR203-crore (US$45.7 million) net loss.
By the end of the third quarter ending December 31, 2005, the
Company posted a US$231-million net loss.
In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted. Even with its expansion moves, Bharat Petroleum has
decided to put aside a US$1.4-million expansion project due to
losses brought about by oil subsidies, as the Company -- and the
entire industry -- suffered huge losses and has difficulty
implementing expansion activities due to the Government's
refusal to allow oil companies to raise fuel prices despite
global crude oil price crossing US$70 a barrel.
On February 20, 2006, the Petroleum Ministry proposed an
increase of INR3 per liter each in petrol and diesel prices and
INR20 per cylinder increase in liquefied petroleum gas price to
save the oil companies from going bankrupt.
BHARAT PETROLEUM: Unit to Bring In INR500-600 Cr. for Expansion
---------------------------------------------------------------
Numaligarh Refinery Ltd, Bharat Petroleum Corporation Ltd.'s
subsidiary, plans to upgrade its facilities, the company says in
its Web site.
Numaligarh Refinery intends to inject INR500-600 crore for the
expansion, with the completion expected by 2010.
After the expansion, NRL will process all its crude supplies for
producing euro-III compliant fuel, the Web site states.
About Bharat Petroleum
Headquartered in Maharashtra, India, Bharat Petroleum
Corporation Limited -- http://www.bharatpetroleum.com/-- is
engaged in refining and marketing petroleum, liquefied petroleum
gas and petrochemical products including middle distillates,
light distillate, lubricants, benzene and toluene. During the
year 2002, the Group introduced Petro Card and SmartFleet Card
and had around 700,000 customers enrolled in 28 cities. There
are 4,711 retail outlets and 1,729 LPG distributors that operate
in the country. The plants of the Group are located in Mahul
and Mallet Road in Mumbai and in Budge.
Bharat Petroleum is currently working to reverse its losses
resulting from the Government's mandate to sell kerosene,
liquefied petroleum gas, petrol and diesel way below market
rates.
On September 23, 2005, the Company delisted its shares from the
Madras Stock Exchange Ltd, Calcutta Stock Exchange Association
Ltd and Delhi Stock Exchange Association Ltd. In November 2005,
Bharat Petroleum's November 2004 profits dissipated and the
Company registered a INR203-crore (US$45.7 million) net loss.
By the end of the third quarter ending December 31, 2005, the
Company posted a US$231-million net loss.
In January 2006, Bharat Petroleum entered into a merger with
Koichi Refineries Ltd, which shareholders for both companies
accepted. Even with its expansion moves, Bharat Petroleum has
decided to put aside a US$1.4-million expansion project due to
losses brought about by oil subsidies, as the Company -- and the
entire industry -- suffered huge losses and has difficulty
implementing expansion activities due to the Government's
refusal to allow oil companies to raise fuel prices despite
global crude oil price crossing US$70 a barrel.
On February 20, 2006, the Petroleum Ministry proposed an
increase of INR3 per liter each in petrol and diesel prices and
INR20 per cylinder increase in liquefied petroleum gas price to
save the oil companies from going bankrupt.
BHARTI AIRTEL: Issues 11,208 Shares on FCCB Conversion
------------------------------------------------------
Pursuant to the terms and conditions of the Offering Circular
dated May 12, 2004, the Committee of Directors of Bharti Airtel
Ltd.'s board of directors issued 11,208 fully paid-up equity
shares of the company upon conversion of US$60,000 Foreign
Currency Convertible Bonds by two entities:
1. Credit Suisse First Boston: 9,340 equity shares
2. KBC Financial Products UK Ltd: 1,868 equity shares
The Committee made the allotment during its meeting on Nov. 30,
2006.
With the allotment, Bharti Airtel's equity base has increased
from present level of 1,895,732,389 to 1,895,743,597 equity
shares of INR10 each.
About Bharti Airtel
Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services. The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India. The B&TS business unit provides broadband and
telephone services in 90 cities across India. The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates. Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services. The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+
ratings on September 21, 2005.
BHARTI AIRTEL: Forays Into U.S. with Launch of 'CallHome'
---------------------------------------------------------
Bharti Airtel Ltd., India's leading telecom service provider,
forays into the United States of America with the launch of
Airtel CallHome service for Non Resident Indians based there.
Supporting its success in India, the foray into the USA marks an
important chapter in the growth of the US$3.8-billion company.
After leading the telecom sector in India, Airtel will take its
telecom expertise to benefit over 2.5 million NRIs based in the
United States of America. They will now be able to call their
loved ones back in India at rates as low as 7.9 cents a minute.
All they need to do is go to the Airtel Web site
http://www.Airtelcallhome.comcreate their personal account and
download the calling service online.
In keeping with the spirit of ease and convenience that Airtel
brings for its customers, Airtel 'CallHome' service is
particularly attractive because it is accessible any time of the
day or night, as per the convenience of the customer.
Commenting on the launch, Manoj Kohli, President Bharti Airtel
Ltd., said, "Geography is history as they say. We are glad to
be causing this paradigm shift. We have over 2.5 million Non
Resident Indians in the United States who make over 450 million
minutes of calls a month to their loved ones back here in India.
We Indians are very expressive and emotional and love to connect
with our near and dear ones. It makes me immensely happy that
Airtel will dissolve the geographical boundaries and help people
connect to their friends and family back here in India".
Compared to the other options available in the market, this
service comes at a significant 40% less in terms of pricing. A
big advantage of this service is also the simplicity it offers
owing to the uniform rate of calling whether it is to any Airtel
mobile or Landline or any other mobile phone or landline.
Mr. Vinod Sawhny, joint president, Enterprise Services, Bharti
Airtel Limited said on the occasion, "It is a proud moment for
us at Bharti Airtel as we make our first foray into the US
market with Airtel CallHome service. The Enterprise Services
SBU was created to address the needs of customers in India
through the Corporates division as well as across continents
through our Carriers division. This foray marks an important
milestone in the Bharti Airtel journey and with this we bring
the triple proposition of reduced rates, ease & convenience of
using this service and unmatched call quality to our fellow
Indians in the USA."
Available initially on pre-paid option, the payments for pre-
paid recharges will be accepted through the credit card on web
portal through a secure payment gateway. Airtel also offers
it's customers the freedom to choose their mode of managing
their personal accounts either through the internet, Airtel Call
Center or through a local toll-free access number that can be
accessed across the continent from any phone.
After playing a significant role in changing India's telecom
landscape, Bharti Airtel's foray into the US market is a major
step in the company's plans to extend its services.
About Bharti Airtel
Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services. The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India. The B&TS business unit provides broadband and
telephone services in 90 cities across India. The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates. Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services. The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+
ratings on September 21, 2005.
BHARTI AIRTEL: Partners with Google for Mobile Search Services
--------------------------------------------------------------
Bharti Airtel Ltd. and Google formed a strategic partnership
that is expected to set new grounds in mobile search and help
redefine the mobile Internet in India. As part of the
agreement, Airtel will bring Google search to the Airtel Live
mobile WAP portal. Google will also incorporate advertising
through its Mobile Ads product on the Airtel Live mobile portal.
The Google search engine on Airtel Live mobile portal will
enable Airtel users to use the Google search engine to easily
access content. Google will power searches on Airtel Live in
two areas -- on net (rich content on Airtel Live) and off net
(Internet on Mobile).
Airtel Live has over 50,000 exclusive pieces of content
including information like news, stock ticker and sports scores
and downloadable content like games, music, video clips and wall
papers. Also, for customers who access the Internet through
their mobile phone, Airtel will bring to them the power of
Google in a format that makes mobile surfing an enjoyable
experience.
Google will also incorporate Mobile Ads, which are text
advertisements based on search terms that are displayed
alongside search results on the Airtel Live mobile portal. This
will enable advertisers to reach targeted users with their
products and services on a cost-per-click basis. This new
business model is a first for both consumers and businesses in
India.
"In India, mobile is fast outgrowing the growth of PCs. Mobile
users outnumber PC users in India by a factor of six. The first
computing experience for the majority of Indians in the next few
years will be on a mobile phone. Airtel is delighted to partner
with Google, a company that literally reinvented the Internet,
to bring its cutting edge technology to our customers." Said
Manoj Kohli, President, Bharti Airtel Ltd. "By offering Google
services to our customers, Airtel strengthens its commitment to
innovation. With this service, World Wide Web has literally
converged into the handheld device enabling anytime, anywhere
access to information and entertainment for Airtel customers,"
he added.
Sukhinder Singh Cassidy, Vice President, Asia Pacific and Latin
America Operations, Google said, "Today, India is one of the
fastest growing mobile markets in the world. We are very
pleased to partner with Airtel, a company that has played a key
role in leading India's explosive mobile growth, to bring Google
services to the millions of mobile users in India. By providing
immediate access to Google, Airtel is creating a compelling
experience for its users, who will now be able to quickly and
easily find information that's important to them."
About Google Inc.
Google's innovative search technologies connect millions of
people around the world with information every day. Founded in
1998 by Stanford Ph.D. students Larry Page and Sergey Brin,
Google today is a top web property in all major global markets.
Google's targeted advertising program provides businesses of all
sizes with measurable results, while enhancing the overall web
experience for users. Google is headquartered in Silicon Valley
with offices throughout the Americas, Europe and Asia. For more
information, visit http://www.google.com
About Bharti Airtel
Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services. The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India. The B&TS business unit provides broadband and
telephone services in 90 cities across India. The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates. Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services. The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+
ratings on September 21, 2005.
BPL LTD: Members to Decide Transfer of Alkaline Unit to JV
----------------------------------------------------------
In a filing with the Bombay Stock Exchange, BPL Ltd discloses
that its members will consider the approval of the resolution to
sell, lease, transfer or otherwise, dispose the company's
Alkaline Battery Business to the proposed joint venture company
with FTA P Ltd for a consideration of INR40 crore.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 28, 2006, BPL Ltd.'s board of directors agreed to the
transfer of the company's alkaline battery unit to a proposed
50:50 joint venture company.
The members will cast their vote through postal ballot.
In this regard, BPL Ltd appointed Mr. P Sivarajan, Chartered
Accountant, as Scrutinizer for conducting Postal Ballot process.
The Postal Ballot forms duly completed should reach the
Scrutinizer on or before January 9, 2007. The Scrutinizer will
submit his report to the Chairman after completion of his
scrutiny.
EGM Slated on Jan. 12
BPL Ltd also informed BSE that its members will hold an Extra
Ordinary General Meeting on Jan. 12, 2007, to among others:
-- declare the results of Postal Ballot; and
-- invest by way of subscription, purchase or otherwise, in
the equity share capital of the company of the proposed
Joint Venture Company up to a sum not exceeding INR20
crores not withstanding that the aggregate of the
investments so far made, securities provided, loans /
guarantees so far given by the company along with the
proposed investment exceed the limit as specified under
sub-section (1) of section 372A of the Companies Act,
1956.
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
HAYES LEMMERZ: Posts US$59.6 Mil. Net Loss in Qtr. Ended Oct. 31
----------------------------------------------------------------
Hayes Lemmerz International Inc. reported that sales for the
fiscal third quarter ended Oct. 31, 2006, were US$589.5 million,
down 2.4% from US$604 million a year earlier.
Loss from operations for the fiscal third quarter was
US$27.6 million, compared with earnings from operations of
US$16.8 million in the third quarter of 2005.
The Company's net loss in the third quarter was US$59.6 million,
compared with a net loss of US$13.3 million in the same period a
year earlier.
The loss includes a US$39 million asset impairment charge
related to the Company's suspension facilities in Bristol,
Indiana, and Montague, Michigan. Excluding the impairment
charge, the company had earnings from operations of US$11.4
million and a net loss of US$20.6 million during the quarter.
"Although our sales were down 2.4%, they reflect the Company's
move to a more diverse customer base when compared to the 15%
declines in Big 3 production volumes in North America," said
Curtis Clawson, President, CEO and Chairman of the Board.
In the third quarter, Hayes Lemmerz reported free cash flow of
US$27.6 million, excluding the impact of the company's
securitization program, up US$5 million from a year earlier.
The company reduced its overall debt by approximately US$24
million in the third quarter. Liquidity as of Oct. 31, 2006,
was US$158 million, an increase of US$6 million from July 31,
2006.
The company reported adjusted EBITDA for the quarter of
US$52.7 million, a decline of US$5.3 million from a year
earlier.
During the third quarter, Hayes Lemmerz sold its Southfield,
Michigan suspension machining facility, which further reduced
the company's dependence on the North American automotive
market.
"We are continuing to execute our operating plan, focus our
capital expenditures in high growth/low cost areas, maintain
adequate liquidity, and drive positive free cash flow," Mr.
Clawson said. "Our customer and geographic mix continue to
improve, and our restructuring efforts are on track, generating
substantial savings as we go forward," he added.
So far this year, Hayes Lemmerz has won over US$475 million of
new business, 80% of which is with international customers,
including Asian OEMs Toyota, Hyundai, Nissan, and Honda, and
European OEMs Volkswagen, Audi, BMW, Renault, and Fiat. The
company is continuing to diversify its product mix in North
America, as the market shifts toward passenger cars and cross
over SUVs.
A core component of Hayes Lemmerz' strategy is to grow by
maximizing customer satisfaction. "Hayes Lemmerz is proud to
supply wheels to all of the ten top selling platforms in Europe,
and to seven of the ten top selling platforms in North America,"
Mr. Clawson said. "Additionally, for the fifth consecutive
year, Hayes Lemmerz' South Africa Operation was recognized with
Ford Motor of Southern Africa's Supplier of the Year award."
For the full year, Hayes Lemmerz expects to achieve sales of
US$2.2 billion to US$2.3 billion, improved adjusted EBITDA
compared with 2005, and capital expenditures of US$75-85
million. In the fourth quarter, the company expects to expand
capacity at its aluminum wheel plants in the Czech Republic,
Thailand, and Turkey.
At Oct. 31, 2006, the company's balance sheet showed
US$1.738 billion in total assets, US$1.579 billion in total
liabilities, US$53 million in minority interests, and US$106
million in total stockholders' equity.
Full-text copies of the company's third fiscal quarter
financials are available for free at:
http://ResearchArchives.com/t/s?16e7
Based in Northville, Michigan, Hayes Lemmerz International Inc.
(Nasdaq: HAYZ) -- http://www.hayes-lemmerz.com/-- is a leading
global supplier of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components.
The company has operations in India, Brazil and Germany, among
others.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 4, 2006, Standard & Poor's Ratings Services affirmed its
'B-' corporate credit rating on Hayes Lemmerz International Inc.
and removed the rating from CreditWatch with negative
implications. The outlook is negative.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: To Make Construction Tender For Power Generator
--------------------------------------------------------------
PT Aneka Tambang Tbk will make a construction tender for a power
generator using alternative energy in 2008, IOG News reports.
According to the report, this is in line with the company's plan
to shift the usage of oil fuel to other alternative energies.
Antam's Operational Director, Alwin Syah Loebis, stated that the
company is currently studying which alternative energy might be
used to replace oil fuel in order to reduce cost and overcome
the oil fuel deficit problem in the future.
IOG explains that presently, oil fuel cost reaches 30%-45% of
the total company's production cost. In 2007, the company is
expected to reach a decision as to the type of alternative
energy it will use. In 2008, the construction will commence and
in 2009, the generator will fully operate.
The alternative energy under consideration is for a water-based
power generator, a gas-based power generator or steam-based
power generator, the report points out.
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.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 4,
2006, that Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Indonesian state-owned mining
company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable.
At the same time, Standard & Poor's also raised to 'B+', from
'B', the rating on the senior unsecured notes issued by Antam
Finance Ltd. and guaranteed by Antam.
Moody's Investors Service gave Aneka Tambang a local currency B1
corporate family rating, and a B2 foreign currency bond rating.
BANK BUANA: Fitch Affirms BB- Issuer Default Ratings
----------------------------------------------------
Fitch Ratings has affirmed all the ratings of Bank Buana as
follows:
-- Long-term foreign currency Issuer Default rating at 'BB-';
-- Long-term local currency Issuer Default rating at 'BB-';
-- Short-term foreign currency rating at 'B';
-- National Long-term rating at 'AA+(idn)';
-- Individual rating at 'C/D'; and
-- Support rating at '3'.
The Outlook for all the ratings is Stable.
Buana's ratings reflect the support from its financially strong
Singapore-based parent, United Overseas Bank (rated 'AA
minus'/Stable), as well as the bank's own solid capital position
and profitability. Pre-tax ROA improved to 3.7% in 9M06 from
c.3.0% in 2004 to 2005 mainly from stronger net interest margin
(7.4%) while total CAR increased to 29.5% at end-September 2006
(Tier 1: 24.9%) following a rights issue in June 2006. Buana
was also not spared from the more difficult operating conditions
in Indonesia from end-2005 with gross NPL ratio rising to 4.3%
at end-September 2006 (but still well-below industry average)
but this is generally expected to improve with the recent
softening in domestic interest rates. It will be looking to tap
on UOB's resources to help grow its retail banking franchise and
fulfill its goal of becoming a larger, national bank in the next
four to five years.
BANK DANAMON: Fitch Affirms Foreign Currency Rating at 'BB-'
------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Bank Danamon as
follows:
-- Long-term foreign currency Issuer Default Rating at 'BB-';
-- Short-term foreign currency rating at 'B';
-- National Long-term rating at 'AA-(idn)';
-- Individual rating at 'C/D'; and
-- Support rating at '4'.
Danamon's ratings reflect its adequate capital position, reduced
but still reasonably strong profitability due to its high-yield
loan business, which helps to offset the higher provisioning
costs following weaker loan quality from end-2005. While the
bank has been quite successful in differentiating itself through
its focus on high yielding urban microcredits and consumer
automotive financing, these market segments have come under some
pressure as domestic interest rates and fuel costs rose sharply
in Indonesia between Q405 to H106. Pre-tax ROA declined to 1.8%
in 9M06 from 3.4% to 4.5% in 2004 to 2005 as provision charges
increased substantially while operating costs remained high.
NPLs increased to 3.5% of gross loans while provision cover
declined to 1.0x NPLs from 1.2x at end-2005, but appears quite
adequate based on stress testing by Fitch which suggests
moderate capital impairment risk even under more extreme
conditions. Although reduced by loan expansion and increased
dividends paid, its capital position remained quite strong with
Tier 1 and total CAR at 15.9% and 21.1%, respectively.
BANK INDONESIA: Deputy Governor Sees Smaller BI Rate Cut in 2007
----------------------------------------------------------------
Bank Sentral Republik Indonesia has room to further lower its
benchmark interest rate in 2007, but the extent of any reduction
will be much smaller than this year's cumulative 300 basis
points, Antara News reports, citing Bank Indonesia Senior Deputy
Governor Miranda Goeltom.
According to the report, Governor Goeltem told reporters that
further cuts will be at a much slower pace next year.
The report notes that Bank Indonesia has so far, in 2006, cut
its benchmark BI rate to 9.75%, down from 12.75% at the end of
last year. The pullback comes as inflationary pressure, largely
triggered by last year's sharp fuel price increase, has eased.
The Troubled Company Reporter - Asia Pacific, on Dec. 6, 2006,
cited economic analyst Hendrawan Supratikno as having said that
the Bank's BI rate could be lowered as a preparation to fuel
national economic activities in 2007.
Ms. Goeltem added that any overly aggressive rate cutting by the
central bank next year would not be a wise and prudent monetary
policy, the report says.
Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- 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.
BANK NEGARA: Fitch Affirms Issuer Default Ratings at 'BB-'
----------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Bank Negara
Indonesia as follows:
-- Long-term foreign currency Issuer Default rating at 'BB-';
-- Long-term local currency Issuer Default rating at 'BB-';
-- Short-term foreign currency rating at 'B';
-- National Long-term rating at 'A+(idn)';
-- Individual rating at 'D';
-- Support rating at '4'; and
-- subordinated notes rating at 'B+'.
BNI's ratings reflect its still weak asset quality while noting
moderate improvement in profitability and capital position.
More stringent regulation on loan classification and weakening
economic conditions from late-2005 took its toll on BNI's NPLs,
which increased from 13.7% of gross loans at end-2005 to 16.6%
at end-3Q06. Fitch views with some concern the rising trend in
NPLs for the SME segment from 9.6% at end-2005 to 17.5% at end-
Q306, given that it will be a focus for future loan expansion
(along with consumer loans). The agency also believes that BNI
needs stronger reserves cover than the 40% at end-September 2006
in the context of generally weak recoveries expected for
impaired loans. Due to higher yields earned on its floating
rate assets, BNI booked a slightly better profitability with
pre-tax ROA at 1.8% at end-Q306 as compared with 1.6% at end-
2005. Total regulatory capital also rose slightly to 17.6% at
end-Q306 from 16.7% at end-2005 due to a rising share of
government bond holdings and SBIs, which at end-Q306 accounted
for a combined 30% of total assets.
BANK NIAGA: To Expand Lending By 25% Next Year
----------------------------------------------
PT Bank Niaga Tbk plans to increase lending next year by 25%,
the Jakarta Post reports.
Jakarta Post cites Bank Niaga President Director Hashemi Albakri
bin Abu Bakar as saying after the bank shareholders' meeting
that the market will be growing well in 2007 and that they see
it as a challenge to increase their credit expansion by more
than the market average of 20%.
According to the report, Bank Sentral Republik Indonesia has
predicted bank lending next year to grow by between 18% and 20%.
Mr. Abu Bakar stated that Bank Niaga has enough funds to cover
the envisaged credit expansion, when asked about where the money
for additional lending would come from, the report relates.
Mr. Abu Bakar also said that if the market continues to grow
well, then Bank Niaga may need fresh funds for 2008 and 2009,
and also if growth next year surpasses their target, they might
turn to the bond market, possibly to the tune of between
IDR1 trillion and IDR2 trillion, depending on market conditions.
Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk
-- http://www.bankniaga.com/-- has a license to operate as a
commercial bank, a foreign exchange bank and a bank engaged in
activities based on Syariah principles. The bank's products and
services include: Funding, Consumer Financing, Business
Financing, Credit and Debit Cards, Private Banking, Preferred
Circle, e-Banking, Corporate Trust, Bancassurance and Treasury
Indicator. The bank's subsidiaries consist of: PT Niaga Aset
Manajemen and PT Saseka Gelora Finance. As of January 31, 2006,
the Bank operates 54 domestic branches, 145 domestic supporting
branches, 22 domestic payment points, seven Syariah units and
one overseas branch.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
July 6, 2006, Moody's Investors Service has placed Bank Niaga's
E+ bank financial strength rating on review for possible
upgrade.
These ratings were unaffected:
-- Issuer rating of Ba3. Outlook stable;
-- Subordinated debt rating of Ba3. Outlook stable; and
-- Long-term/short-term deposit ratings of B2/Not Prime.
Outlook stable.
Additionally, Fitch Ratings gave a B+ rating to Bank Niaga's
proposed US$100 million, 10-year subordinated debt issue. At
the same time, Fitch has affirmed the bank's existing ratings
including Long-term Senior foreign currency rating of 'BB-' (BB
minus), Individual rating of D, and Support rating of 4.
BANK NISP: Fitch Affirms Long-Term & Local Currency IDRs at BB-
---------------------------------------------------------------
Fitch Ratings has affirmed all these ratings of Bank NISP:
-- Long-term foreign currency Issuer Default Rating at 'BB-';
-- Long-term local currency IDRs at 'BB-';
-- Short-term foreign currency rating at 'B';
-- National Long-term rating at 'AA+(idn)';
-- Individual rating at 'C/D';
-- Support rating at '3'; and
-- subordinated notes at 'B+';
NISP's ratings reflect the support from its financially strong
parent, Singapore-based OCBC Bank, which became a majority
shareholder from early 2005, as well as its satisfactory
profitability, reasonably strong balance sheet with higher NPL
level offset by an improved capital position. Profitability
declined over 2005 due partly to higher operating expenses but
net interest margin improved slightly to 4.2% over the first
nine months of 2006 on higher lending yields. NPLs were
significantly higher over 2005 and 2006 in absolute terms but
remained well-below industry average at 3.3% of gross loans at
end-September 2006.
Nevertheless, a higher reserves cover versus a current 0.4x NPLs
is preferred given the legal uncertainties and generally riskier
operating conditions in Indonesia, notwithstanding the generally
well-secured nature of its loans. Capital ratios improved with
Tier 1 at 13.7% and Total CAR 18.1% at end-September 2006
following a rights issue which raised c.IDR600 billion at end-
2005. OCBC's financial resources and technical expertise given
its established presence in Singapore and Malaysia should help
facilitate its long-term plans to expand its retail banking
operations in Indonesia.
BERAU COAL: Moody's Assigns Final B1 Corporate Rating
-----------------------------------------------------
Moody's Investors Service has assigned a final B1 corporate
family rating to PT Berau Coal. At the same time Moody's has
assigned a final B1 rating to the US$325 million bonds issued by
Empire Capital Resources Pte Limited and guaranteed by Berau.
This follows the completion of a US$325 million bond issuance,
consisting of US$100 million five-year amortizing senior secured
floating rate notes and US$225 million five-year bullet senior
secured fixed rate bonds. The rating outlook is stable.
The bond proceeds will be primarily used to refinance
shareholder loans (US$239.5) and existing bank debt
(US$39.5 million), and for general corporate purposes at the
Berau level.
Berau is Indonesia's fifth largest producer and exporter of
thermal coal. It operates three active mines at a single site
in East Kalimantan. It has estimated resources of 654.2 million
tons with probable reserves estimated at 61.6mt and proven
mineable reserves of 127.6mt. Coal production in 2005 totaled
9.2mt generating revenue of US$249.4 million.
CA INC: To Reclaim Research Tax Credit After 10 Years
-----------------------------------------------------
CA Inc. will soon be able to reclaim a research tax credit that
it has been seeking for a decade because of a measure enacted by
the United States Congress, Bloomberg News reports.
According to the report, the US$16.3 billion incentive is a
cornerstone of broader tax, trade and health-care legislation,
including more than three-dozen other renewed tax breaks
approved in Dec. 9.
Bloomberg notes that the law, effective next year, eliminates
many barriers to claiming the research credit and is the biggest
business tax break to be enacted in more than two years. It had
bipartisan support among lawmakers who argued that stronger tax
incentives in other countries have lured high-paying technology
jobs from the U.S.
A partner at New York-based PricewaterhouseCoopers LLP, Jim
Shanahan, said that there is a fierce competition at the global
level for R&D jobs, adding that the U.S. has very robust R&D
incentives to retain and attract them, the report relates.
According to the Commerce Department, U.S.-based companies
increased research investments abroad by 49% between 1998 and
2003, lured in part by aggressive tax incentives in countries
such as Canada, France, India, the U.K. and China, Bloomberg
recounts.
The report points out that companies said that the new law would
help them keep research investment in the U.S.
Karen Myers, vice president for government affairs in North
America at CA, said that passage of the strengthened credit will
have a material impact on how they make decisions on where to
site R&D.
Headquartered in Islandia, New York, CA Inc. (NYSE:CA)
-- http://www.ca.com/-- is an information technology management
software company that unifies and simplifies the management of
enterprise-wide IT. Founded in 1976, CA serves customers in
more than 140 countries. In Asia Pacific, the company has
operations in Indonesia, Australia, China, Japan, Hong Kong,
India, Philippines and Thailand.
* * *
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. Technology Software sectors this week,
the rating agency confirmed its Ba1 Corporate Family Rating for
CA, Inc.
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$350 Million
6.5% Senior
Unsecured Notes
due 2008 Ba1 Ba1 LGD4 54%
US$1 Billion
Senior Global
Notes due 2011 Ba1 Ba1 LGD4 54%
US$460 Million
Convertible
Senior Unsecured
Notes due 2009 Ba1 Ba1 LGD4 54%
Standard & Poor's Rating Services affirmed its 'BB' corporate
credit and senior unsecured debt ratings on CA Inc., and removed
them from CreditWatch where they were placed on July 5, 2006,
with negative implications. S&P said the outlook is negative.
DAVOMAS ABADI: S&P Affirms New Senior Secured Notes at 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' rating on
Indonesia's PT Davomas Abadi Tbk. The outlook is stable. At
the same time, it assigned its 'B+' rating on the proposed
US$25 million long-term senior secured bonds to be issued by
Davomas International Finance Co. Ltd., a special purpose
financing vehicle wholly owned by Davomas.
The new notes are a further issuance of and are in addition to
the US$125 million principal amount of the 11% guaranteed senior
secured notes due in 2011, issued in May 2006. Proceeds from
the new issue will mainly be used to fund the company's power
generation facilities and working capital requirements. Davomas
will unconditionally and irrevocably guarantee the new issue.
With total assets of IDR2.4 trillion (US$257 million) as at
Sept. 30, 2006, Davomas is Indonesia's largest producer and
exporter of cocoa products. The company has a production
capacity of more than 100,000 metric tons per annum, which will
be increased to 140,000 tpa by the third quarter of 2007. "Its
credit profile is supported by the company's strong domestic
market position, low-cost profile with focus on midstream cocoa
processing, and favorable industry outlook", said Standard &
Poor's credit analyst, Yasmin Wirjawan. "However, Davomas is
constrained by its single site operating risk and limited
product range, customer concentration risk, highly competitive
environment, and earnings exposure linked to the cyclical nature
of the cocoa industry," Ms. Wirjawan added.
Davomas' liquidity is adequate. As at Sept. 30, 2006, the
company had cash balance of IDR399 billion and no debt due in
one year. Debt to annualized EBITDA was at 2.5x for the same
period, and it is expected to remain at about 3x following the
new debt issuance. The company's leverage is likely to improve
with an expected increase in cash flow when two new production
lines start operating in the second quarter of 2007.
Established in 1990, P.T. Davomas Abadi Tbk was listed on the
Jakarta Stock Exchange in 1994 and is one of the dominant
producers and exporters of cocoa butter and cocoa powder in
Indonesia.
DAVOMAS ABADI: Reopens Bonds To Further Raise US$25 Million
-----------------------------------------------------------
PT Davomas Abadi Tbk, which in April 2006 raised US$125 million
in a five-year bond yielding 11%, has reopened the issue to
raise a further US$25 million, Reuters reports, citing a source
familiar with the deal.
According to Reuters, the re-offer, rated B+ by Standard &
Poor's and B2 by Moody's, is priced at 99.25%.
The report notes that Davomas will use the proceeds to buy a new
power generation facility and for working capital.
Reuters points out that Lehman Brothers is the sole bookrunner
for the issue.
Headquartered in Jakarta, Indonesia, PT Davomas Abadi Tbk
processes cocoa beans into cocoa butter and cocoa powder.
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Moody's Investors Service had affirmed PT
Davomas Abadi Tbk's stable 'B2' corporate family rating and the
'B2' foreign currency rating of Davomas International Finance
Company Pte Limited's IDR1.13-trillion senior secured notes due
in 2011. Moody's afffirmed the rating after the Company had
completed its notes issuances and subsequent repayments of its
outstanding debts.
Standard & Poor's Ratings Services affirmed its 'B+' rating on
Indonesia's PT Davomas Abadi Tbk. The outlook is stable. At
the same time, it assigned its 'B+' rating on the proposed
US$25 million long-term senior secured bonds to be issued by
Davomas International Finance Co. Ltd., a special purpose
financing vehicle wholly owned by Davomas.
HILTON HOTELS: Has US$323-Mil. Current Deficit as of Sept. 2006
---------------------------------------------------------------
After reporting a US$1.225 billion positive working capital at
Dec. 31, 2005, Hilton Hotels Corp. recorded a US$323 million
current deficit at Sept. 30, 2006.
The Company had US$1.995 billion in current assets and
US$2.278 billion in current liabilities at Sept. 30, 2006,
compared with US$2.089 billion in current assets and
US$864 million in current liabilities at Dec. 31, 2005.
At June 30, 2006, the Company had a US$364 million current
deficit.
On Feb. 23, 2006, the Company completed the acquisition of the
lodging assets of Hilton International in an all-cash
transaction. In order to fund this acquisition, the Company
used about US$867 million of cash and equivalents and borrowed
about US$4.81 billion under new senior credit facilities with a
syndicate of financial institution.
Net cash provided by operating activities was US$409 million for
the nine months ended Sept. 30, 2005, and US$238 million for the
same period ended Sept. 30, 2006.
Net cash provided by investing activities was US$85 million for
the nine months ended Sept. 30, 2005 and net cash used in
investing activities was US$5.204 billion for the same period
ended Sept. 30, 2006.
Net cash used in financing activities was US$243 million for the
nine months ended Sept. 30, 2005, and net cash provided by
financing activities was US$3.916 billion for the same period
ended Sept. 30, 2006.
The net change between periods is primarily due to the new
senior credit facilities used to partially fund the HI
Acquisition, net of repayments, and share repurchases in the
prior year.
Cash and equivalents decreased US$1.04 billion from Dec. 31,
2005 to US$114 million at Sept. 30, 2006. Restricted cash
totaled US$182 million at Dec. 31, 2005 and US$265 million at
Sept. 30, 2006.
The Company entered into new senior credit facilities in an
aggregate amount of about US$5.75 billion with a syndicate of
financial institutions, which replaced its US$1 billion
revolving credit facility and are secured by a pledge of the
capital stock of certain of its wholly owned subsidiaries.
The senior credit facilities consist of the following:
(1) Revolver-5 year, US$3.25 billion available in U.S. dollars,
British Pounds Sterling, Euros and Swedish Kronor or other
currencies acceptable to the administrative agent;
(2) Term Loan A-5 year, approximate equivalent of US$2 billion
to be denominated in GBP675 million, EUR675 million and
AU$140 million; and
(3) Term Loan B-7 year, US$500 million term loan.
At Sept. 30, 2006, the Company has an aggregate principal amount
of about US$4.1 billion outstanding under these facilities.
Hilton Hotels Corp. owns, manages, and develops hotels, resorts
and timeshare properties; and franchises lodging properties. In
addition, the Company develops and operates timeshare resorts
through Hilton Grand Vacations Co. and its related entities. It
is based in Beverly Hills, Calif.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.
* * *
Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.
HILTON HOTELS: Gives Full-Year Earning Forecast For 2009
--------------------------------------------------------
Hilton Hotels Corp. gave its full-year earnings forecast for
2009, the Associated Press reports.
According to the report, the company expects a profit of about
US$2 per share in 2009 assuming a 9% compounded annual growth
rate in revenue per available room, or RevPAR.
The AP explains that if the compounded annual growth rate in
RevPAR is 7%, net income is seen at about US$1.70 per share.
Hilton also said it expects to add about 120,000 rooms globally
between 2007 and 2009, the report notes.
The hotel operator maintained its 2007 management/franchise fee
growth rate in the 15% range, with pro forma comparable
worldwide-owned hotel RevPAR still seen increasing about 7% to
9%.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.
* * *
Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.
WILLBROS GROUP: Appoints Michael J. Bayer To Board Of Directors
---------------------------------------------------------------
Willbros Group, Inc., disclosed that Michael J. Bayer has been
appointed to the Board of Directors.
Mr. Bayer, who holds a Master's degree in Business
Administration and Juris Doctor, is the President of Dumbarton
Strategies, Washington, D.C. He also serves as a Director of
Dyncorp International, Inc. and Stratos Global Corp. In
addition, he is a Member of the Defense Science Board, the
Sandia National Laboratory's National Security Advisory Panel,
the Chief of Naval Operations Executive Panel and the U.S.
European Command Senior Advisory Group.
Mr. Bayer's previous U.S. Government service included
appointments as Vice Chairman of the Defense Business Board, a
Member of the Board of Visitors of the United States Military
Academy, Chairman of the Army Science Board, a Member of the
U.S. Naval War College Board of Visitors and Chairman of the
Secretary of Air Force's Advisory Group. Earlier in his career
he was Counsel to a senior Member of the U.S. House of
Representatives, Deputy Assistant Secretary at the U.S.
Department of Energy, Malcolm Baldrige's Associate Deputy
Secretary of Commerce, Counselor to the United States Synthetic
Fuels Corporation, Counselor to President Bush's Commission on
Aviation Security and Terrorism, and the Federal Inspector for
the Alaska Natural Gas Transportation System.
Willbros Group, Inc. (NYSE:WG) -- http://www.willbros.com/-- is
an independent contractor serving the oil, gas and power
industries, providing engineering and construction, and
facilities development and operations services to industry and
government entities worldwide. Willbros has operations in
Indonesia.
Long-term Debt Waivers
During the period from Nov. 23, 2005, to June 14, 2006, the
company entered into four additional amendments and waivers to
the 2004 Credit Facility with its syndicated bank group to waive
non-compliance with certain financial and non-financial
covenants. Among other things, the amendments provided that:
(1) certain financial covenants and reporting obligations were
waived and/or modified to reflect the Company's current and
anticipated future operating performance; (2) the ultimate
reduction of the facility to US$70,000 for issuance of letter of
credit obligations only; and (3) a requirement for the Company
to maintain a minimum cash balance of US$15,000.
=========
J A P A N
=========
ALITALIA SPA: Italy Commences Search for Sale Advisor
-----------------------------------------------------
The Italian Government has started inviting banks to act as
advisors for the sale of its 30.1% stake in national carrier
Alitalia S.p.A., Avionews says.
The letters, Avionews reports, were aimed at finding whether the
banks are interested in bidding for the government's stake. The
letters were sent to:
-- Sanpaolo Imi S.p.A.,
-- Unicredit,
-- Mediobanca,
-- Morgan Stanley, and
-- Merrill Lynch.
The sale process will formally start once the Italian Treasury
Ministry hires an advisor, which could happen next week.
As reported in the TCR-Europe on Dec. 13, the Italian government
is selling around 30.1% stake in Alitalia S.p.A., up from 20%-
25% it announced early this month.
Italy, however, glued some conditions on the sale. The buyer
must:
-- launch a bid to acquire the whole carrier;
-- keep Alitalia's logo, brand and national identity;
-- have convincing and detailed business plans and
commitments, which may include:
-- a lock-up,
-- adequate service offering;
-- territorial coverage; and
-- information on job levels
-- continue to operate out of Milan's Malpensa Airport as
well as Rome's Fiumicino.
Several Italian entrepreneurs are reportedly interested in
Alitalia, The Times reports. Local bets include:
-- Carlo Toto, founder of Air One,
-- Luca di Montezemolo, head of Fiat and Ferrari;
-- Diego Della Valle, chief of the Tod's shoe empire; and
-- Banca Intesa and Sanpaolo IMI;
The government aims to complete the process by January 2007.
Possible advisers include:
-- Merrill Lynch,
-- Deutsche Bank,
-- Lehman Brothers,
-- Goldman Sachs,
-- Morgan Stanley,
-- Rothschild,
-- JPMorgan, and
-- Credit Suisse.
Bankruptcy Warning
As reported in the TCR-Europe on Oct. 13, Mr. Prodi said he
foresees a bankrupt national carrier in January 2007 unless
involved parties come up with an "agreed solution."
"Alitalia is going through the worst moment in its history," Mr.
Prodi told attendees of the Alitalia Summit. "The situation is
totally out of control and I do not see any parachutes."
"We have until January to hammer out a solution which can avoid
bankruptcy," Mr. Prodi said, sharing the same observation posed
by Mr. Cimoli.
In a TCR-Europe report on Oct. 11, Mr. Cimoli revealed that
Alitalia is poised for collapse given its current cost structure
and market conditions.
"At present, the national carrier is unable to generate profit,
even for previously invested capital," Mr. Cimoli said.
Mr. Cimoli particularly blamed:
-- excessive market regulations;
-- high labor costs;
-- recurrent labor strikes;
-- rising oil prices;
-- airport and regulatory inefficiencies; and
-- unfair competitive advantages' enjoyed by low-cost
airlines.
Mr. Cimoli also chided Italy's civil aviation and antitrust
authorities for their failure to secure Alitalia from "unfair"
competition. Mr. Cimoli said these conditions have made it
unviable for Alitalia to compete with low-cost and foreign
rivals.
Mr. Cimoli had vowed to have Alitalia make a profit by year-end,
but reaching the goal seems unlikely after the carrier posted
EUR221 million in first-half net losses. Mr. Cimoli said the
carrier is headed for a EUR300-million loss this year.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in
annual revenue and employs more than 11,000 people. Alitalia
flies to about 80 destinations in more than 60 countries,
including Argentina, China, and Japan, from hubs in Rome and
Milan and operates a fleet of about 185 aircraft. The Italian
government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection. The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.
AMERICAN AIRLINES: Adds US$100 Million Pension Contribution
-----------------------------------------------------------
American Airlines, Inc., a wholly owned subsidiary of AMR Corp.,
has made an additional US$100 million contribution to its
employees' defined benefit pension plans. The contribution
announced is in addition to the US$223 million that American has
already contributed to satisfy minimum required pension funding
obligations for 2006, bringing its total contributions to these
pension plans to US$323 million this year.
"This additional contribution is a strong example of our
commitment as a company to invest in the future of our
employees," said AMR Chairman and CEO Gerard Arpey. "It is a
reflection of the progress we have made under our Turnaround
Plan and a prudent use of our cash resources to meet our
obligations. By continuing to work together to improve our
financial results, we can strengthen our defined benefit pension
plans for the future."
Mr. Arpey noted that, including the US$100 million contribution,
American has contributed more than US$1.5 billion to its defined
benefit pension plans since 2002.
"Earlier this year, Congress passed -- and President Bush signed
-- pension reform legislation affecting companies with defined
benefit plans," added Mr. Arpey. "We still need an adjustment
to the legislation's interest rate provision, as was provided to
airlines that, unlike American, chose to freeze their plans, and
we remain heartened that more than 75 members of Congress have
pledged to continue working on this issue."
American Airlines -- http://www.AA.com/-- is the world's
largest airline. American, American Eagle and the
AmericanConnection regional airlines serve more than 250 cities
in over 40 countries with more than 3,800 daily flights.
American Airlines flies to Belgium, Brazil, Japan, among others.
The combined network fleet numbers more than 1,000 aircraft.
American Airlines is a founding member of the oneworld Alliance,
whose members serve more than 600 destinations in over 135
countries and territories.
As reported in the Troubled Company Reporter on April 25, 2006,
Standard & Poor's Ratings Services placed its ratings on AMR
Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc.
(B-/Watch Pos/--) on CreditWatch with positive implications.
The CreditWatch placement reflected improving earnings and cash
flow prospects, which should translate into a strengthened
financial profile. The 'B+' bank loan rating on American's
US$773 million credit facility was placed on CreditWatch, but
the '1' recovery rating (which addresses recovery prospects in a
default scenario) was not placed on CreditWatch.
BANCO BRADESCO: Grants BRL2.00B Home Loans in First 11 Months
-------------------------------------------------------------
Banco Bradesco said in a statement that its new home loans has
increased 190% to BRL2.00 billion in the first 11 months of
2006, compared with the same period in 2005.
Banco Bradesco told Business News Americas that it reached its
home loan target for 2006 a month ahead of schedule.
According to BNamericas, the number of home loan operations
increased 92.0% to 18,000 in the first 11 months of this year,
from the first 11 months of last year.
BNamericas relates that the Brazilian central bank ranked Banco
Bradesco as the nation's second largest private sector bank with
BRL196 billion in total banking assets as of September 2006.
Banco Bradesco said in its latest financial statements that
including non-banking assets like insurance and private pension
plans, its assets as of the third quarter of 2006 totaled BRL243
billion.
Headquartered in Sao Paulo, Brazil, Banco Bradesco SA --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco is
Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management. Bradesco has branches throughout Brazil as well as
one in New York, and Japan. Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers. The bank also
provides personal and commercial loans, along with leasing
services.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
maintained the 'BB+' ratings on both of Banco Bradesco SA's
foreign and local currency counterparty credit rating, however
it changed the ratings outlook to positive from stable on both
ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-1
This is in connection with Standard & Poor's revised outlook on
its long-term foreign and local currency ratings on 16 Brazilian
entities to positive from stable, following the revision of the
foreign and local currency rating outlooks on the Federative
Republic of Brazil.
BANCO BRADESCO: Will Buy a Bank Soon, Investment Strategist Says
----------------------------------------------------------------
"(Banco) Bradesco is absolutely going to buy a bank in the short
term," Business News Americas reports, citing Celso Boin, an
investment strategist from brokerage Link Corretora.
Mr. Boin told BNamericas, "Bradesco has to grow its investment
banking operations and needs to buy a bank to do so."
BNamericas relates that Banco Bradesco created Banco Bradesco de
Investimentos, its own investment bank, in February 2006 and
simultaneously formed Bradesco Securities, a capital markets and
brokerage unit in New York.
Mr. Boin told BNamericas that retail banks in Brazil have not
had much success developing their own investment banks. They
have only broken down the market through acquisitions.
According to BNamericas, rumors have connected Banco Bradesco to
Banco BBM, Banco Votorantim and even ABN Amro Real. Rumors also
began around the same time that Banco Bradesco was negotiating
to exchange shares for the Brazilian subsidiary of Spain's
Santander.
Mr. Boin told BNamericas, "It's difficult to foresee who is
going to buy who. I think the rumors about Bradesco and ABN
Amro Real are absurd. ABN Amro Real is one of the Dutch bank's
most profitable international units."
"Usually in Brazil, when an acquisition rumor is true, the
companies quickly make an announcement, as in the case of Itau
and BankBoston. If they don't make an announcement, the
possibilities become less, although they don't become zero,"
BNamericas notes, citing Victor Martins, a local banking analyst
from Banco Safra.
BNamericas underscores that as Brazil's economy stabilizes,
larger banks will likely concentrate on boosting banking
penetration and expanding loan growth to increase assets.
Mr. Boin told BNamericas, "Of course, they will continue to grow
organically and there is plenty of room to grow."
Meanwhile, Rodrigo Margela, a representative from ARX Capital
Management said that there are no expectations in the market of
Banco Bradesco acquiring a smaller bank anytime soon, BNamericas
states.
Headquartered in Sao Paulo, Brazil, Banco Bradesco SA --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco is
Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management. Bradesco has branches throughout Brazil as well as
one in New York, and Japan. Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers. The bank also
provides personal and commercial loans, along with leasing
services.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
maintained the 'BB+' ratings on both of Banco Bradesco SA's
foreign and local currency counterparty credit rating, however
it changed the ratings outlook to positive from stable on both
ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-1
This is in connection with Standard & Poor's revised outlook on
its long-term foreign and local currency ratings on 16 Brazilian
entities to positive from stable, following the revision of the
foreign and local currency rating outlooks on the Federative
Republic of Brazil.
CONTINENTAL AIRLINES: In Talks with UAL Corp for Possible Merger
----------------------------------------------------------------
Continental Airlines Inc. and UAL Corp., the parent of United
Airlines, are talking of merging their companies, creating a
US$9 billion carrier, reports say.
An unnamed source says that US Airways' move to bid for rival
Delta Airlines prompted Continental to respond to UAL's bid,
which was broached three months ago.
According to reports, the talks are still in the early stages.
There are plenty of obstacles to the UAL and Continental merger,
including regulatory concerns, Northwest Airlines' share in
Continental, and shareholders' votes.
About UAL Corp.
Headquartered in Chicago, Illinois, UAL Corporation (NASDAQ:
UAUA) -- http://www.united.com/-- through United Air Lines,
Inc., is the holding company for United Airlines -- the world's
second largest air carrier. The company filed for chapter 11
protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191).
James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R.
Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland &
Ellis, represent the Debtors in their restructuring efforts.
Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP
represented the Official Committee of Unsecured Creditors before
the Committee was dissolved when the Debtors emerged from
bankruptcy. When the Debtors filed for protection from their
creditors, they listed US$24,190,000,000 in assets and
US$22,787,000,000 in debts. Judge Wedoff confirmed the Debtors'
Second Amended Plan on Jan. 20, 2006. The company emerged from
bankruptcy protection on Feb. 1, 2006.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout the Americas, Europe and
Asia. It serves 15 European cities, 7 South American cities,
Tel Aviv, Hong Kong and Tokyo. International operations are
carried out throughout Europe, Canada, Mexico, Central and South
America, Caribbean and also Tel Aviv, Hong Kong and Tokyo. More
than 400 additional points are served via SkyTeam alliance
airlines. With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
* * *
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc. The outlook is
revised to stable from negative. Houston, Texas-based
Continental has about US$17 billion of debt and leases.
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines, Inc.'s. Moody's affirmed the B3 corporate
family rating. The outlook is stable.
Fitch Ratings has upgraded Continental Airlines Inc.'s Issuer
Default Rating (IDR) to 'B-' from 'CCC' and Senior Unsecured
Debt to 'CCC/RR6' from 'CC/RR6'. Rating outlook was stable.
COREL CORP: Acquires InterVideo Inc. for US$198.6 Million Cash
------------------------------------------------------------
Corel Corp. has completed the acquisition of InterVideo Inc. for
US$13 per share of InterVideo common stock, resulting in an
aggregate acquisition price of US$198.6 million in an all-cash
transaction.
The acquisition substantially expands Corel's presence in the
digital media software market by creating the industry's
broadest portfolio of digital imaging and DVD video products.
With the addition of InterVideo, Corel will deliver easier-to-
use, multi-purpose high-definition video, imaging, and DVD
creation products to consumers and enterprises worldwide while
extending its presence in fast-growing Asian markets, such as
China, Taiwan and Japan.
"This strategic combination further strengthens Corel's
leadership position in digital media software and will enable us
to deliver even greater value to our customers, partners and
shareholders worldwide," said Corel Chief Executive Officer
David Dobson. "We welcome InterVideo's employees, customers and
partners to Corel and we look forward to working with them."
InterVideo's comprehensive suite of advanced digital video and
multimedia software products allow users to record, edit,
author, distribute and play digital multimedia content on PCs
and other devices. In 2005, InterVideo acquired a majority
interest in Ulead, a leading developer of video imaging and DVD
authoring software for desktop, server, mobile and Internet
platforms, and the acquisition of the remaining interest in
Ulead is expected to be completed before the end of 2006.
The acquisition combines Corel's key strengths -- business
model innovation, understanding of end user requirements and
established distribution in the Americas and Europe -- with
InterVideo's core assets, which include video technology
innovation, established partnerships with the world's leading PC
OEM partners and strong market presence in the Asia Pacific
region.
"The addition of InterVideo and Ulead products to our existing
digital imaging portfolio puts Corel in a unique position to
meet the evolving needs of consumers demanding higher quality
and more accessible digital media content -- specifically high-
definition digital images and videos accompanied by more
creative and enjoyable ways to view and share them," said Blaine
Mathieu, general manager of Corel's Digital Imaging Business.
"With the ongoing convergence of different media and devices,
consumers need easier-to-use tools that can handle all media
types on an equal basis. Corel will fulfill this growing demand
by delivering new, easier-to-use, multi-purpose video and
imaging software products to consumers and enterprises
worldwide."
Corel will leverage its complementary geographic strengths
with InterVideo and Ulead to create an even more efficient
sales, marketing and product development engine. With
significant development offices in California, China, Minnesota,
Ottawa and Taiwan, Corel will be better positioned to meet the
specific requirements of customers and partners in various
locations around the world.
"The excitement surrounding properties like YouTube clearly
showcases why the multimedia software and services segment is so
incredibly hot right now," said Rob Enderle, Principal Analyst
for the Enderle Group, a leading San Jose, CA-based research
firm covering emerging hardware and software markets. "The
enormous mass market potential for products that provide
solutions for this rapidly growing segment simply has not yet
been realized. Corel is placing itself in the middle of this
huge opportunity so that they can capitalize on this incredible
opportunity and help drive market growth."
The acquisition was financed through a combination of Corel's
cash reserves, InterVideo's cash reserves and debt financing
which included Corel entering into an amendment to its existing
credit agreement to increase its available term borrowings by
US$70 million.
Corel will provide guidance on the combined company when it
reports its financial results for the year ended Nov. 30, 2006,
in January.
About Corel Corp.
Headquartered in Ottawa, Ontario, Corel Corporation
(NASDAQ:CREL) (TSX:CRE) -- http://www.corel.com/-- is a
packaged software company with an estimated installed base of
over 40 million users. The company provides productivity,
graphics and digital imaging software. Its products are sold in
over 75 countries through a scalable distribution platform
comprised of original equipment manufacturers, Corel's
international websites, and a global network of resellers and
retailers. The company's product portfolio features
CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office,
WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM).
The company has operations in Japan, Germany, Italy, the United
Kingdom, Australia, Korea, Brazil, and Mexico, among others.
The Troubled Company Reporter - Asia Pacific reported on Nov. 8,
2006, that Standard & Poor's Ratings Services affirmed its 'B'
long-term corporate credit and senior secured debt ratings on
Canada-based packaged software company, Corel Corp., following
the company's announcement to acquire California-based digital
media software vendor, InterVideo Inc.
At the same time, Standard & Poor's affirmed its 'B' bank loan
rating, with a recovery rating of '3', on the company's
US$265 million credit facility, which was increased by US$100
million to partially finance the acquisition. The '3' recovery
rating indicates a meaningful recovery of principal (50%-80%) by
lenders in the event of default. The outlook is positive.
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. Technology Software sectors this week,
the rating agency confirmed its Caa1 Corporate Family Rating for
Corel 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$75 Million
Senior Secured
Revolving Credit
Facility due 2011 B3 B3 LGD3 33%
US$90 Million
Senior Secured
First Lien
due 2012 B3 B3 LGD3 33%
DELPHI CORP: Cadence Wants to Proceed with Patent Litigation
------------------------------------------------------------
Cadence Innovation LLC asks the United States Bankruptcy Court
for the Southern District of New York to lift the automatic stay
so it can proceed with a patent infringement suit against Delphi
Corporation and its debtor-affiliates.
On Dec. 15, 1999, Patent Holding Company, predecessor-in-
interest to Cadence, commenced an action against Delphi
Automotive Systems Corp. in the U.S. District Court for the
Eastern District of Michigan, Southern Division, on account of
the Debtors' alleged direct and willful infringement of three
patents.
The Debtors are still infringing the Patents by continuing to
manufacture infringing airbag covers postpetition, Dennis J.
Connolly, at Alston & Bird LLP, in Atlanta, Georgia, contends.
Subsequently, Cadence timely filed Claim Nos. 10074, 10077,
10078, 10079, 10080, 10081, 10082, 10083, 10084, 10085, 10086,
10087, 10088, 10089, 10090, 10091, 10092, 10093, 10094, 10095,
10096, 10097, 10098, 10099, 10100, 10101, 10102, 10103, 10104,
10105, 10106, 10107, 10108, 10109, 10110, 10111, 10112, 10113,
10114, 10115, 10116, and 10117.
Cadence's claims assert an unliquidated general unsecured claim
on account of the Debtors prepetition manufacture of airbag
covers that infringe on the Patents, and an unliquidated
administrative expense priority claim with respect to the
Debtors' postpetition infringement of the Patents.
Mr. Connolly informs the Court that Cadence filed its Claims
against each and every Debtor to preserve its rights against the
actual Debtor or Debtors that infringed on the Patents.
Mr. Connolly argues that Cadence's request is warranted for
these reasons:
(1) Relief from the stay will completely resolve the parties'
dispute;
(2) Relief from the stay will not interfere with the Debtors'
bankruptcy cases;
(3) As a result of presiding over the Action since 1999, the
District Court has obtained a specialized knowledge with
respect to the Action and is now a specialized forum;
(4) The interests of judicial economy and expeditious
resolution are better served in the District Court;
(5) The parties have obtained paradigm claim construction
determinations from the District Court; and
(6) Continuation of the stay will prejudice Cadence.
Cadence further asks the Court to allow the Cadence Postpetition
Claim and direct the Debtors to immediately pay the Claim once
its value is determined.
The Cadence Claims, once liquidated, will total at least
US$21,000,000 on account of the Debtors' prepetition
infringement and at least US$4,000,000 on account of the
Debtors' postpetition infringement, according to Mr. Connolly.
The ultimate value of the Cadence Claims will be determined at
the District Court Action.
The Debtors objected to the Cadence Claims, asserting that the
Claims are duplicative to other claims and are not reflected in
their books and records, Mr. Connolly notes.
Mr. Connolly argues that Cadence is entitled to the Postpetition
Claim because the Claim is directly attributable to the Debtors'
postpetition infringement of the Patents.
Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology. The company's technology and
products are present in more than 75 million vehicles on the
road worldwide. Delphi has regional headquarters in Japan,
Brazil and France.
Fitch Ratings has assigned a rating of 'BB-' to Delphi
Corporation's US$2 billion of debtor-in-possession credit
facilities. The DIP facilities will consist of a revolving
credit portion and a term loan portion and are to be pari passu
with each other in terms of priority of repayment, collateral,
and guarantees. The term loan and revolving credit will,
therefore, share the same ratings.
Standard & Poor's Ratings Services lowered its ratings on Delphi
Corp. to 'D' after the company's U.S. operations filed for
Chapter 11 bankruptcy protection.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts. (Delphi Bankruptcy News, Issue No. 49; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
DELPHI CORP: Responds to Employees' Insurance Payment Plea
----------------------------------------------------------
Delphi Corporation and its debtor-affiliates, the Official
Committee of Equity Security Holders and the Teachers'
Retirement System of Oklahoma have responded to the request of
certain former Delphi employees to obtain advance fees under
certain insurance policies. These fees will cover defense costs
they incurred in pending and future lawsuits.
Former employees J.T. Battenberg III, Alan S. Dawes, Paul R.
Free, John G. Blahnik, Milan Belans, Catherine Rozanski, Pamela
Geller, Peter Janak, and Laura Marion want the U.S. Bankruptcy
Court for the Southern District of New York to lift the
automatic stay so that National Union Fire Insurance Company of
Pittsburgh, Pa., may advance or pay under certain insurance
policies covered defense costs, subject to National Union fully
reserving its rights and defenses and the execution of a written
undertaking by each of them to repay any amounts advanced if it
ultimately is determined that they are not entitled to coverage.
1. Debtors
The Debtors do not object to the Former Employees' request to
the extent that:
-- reasonable limitations and oversight can be ensured with
respect to any advancement by the National Union Fire
Insurance Company of Pittsburgh, Pennsylvania of defense
costs to the Former Employees under the Directors and
Officers Liability Insurance Policy and Employee Benefit
Plan Fiduciary Liability Insurance Policy; and
-- the Debtors, National Union, and the Former Employees
reserve all rights to contest the impact on the each of
the parties' rights of any advancements that the Insurer
may make to the Former Employees.
"The [Former Employees] are not the only persons with a stake in
the proceeds of the two liability insurance policies at issue,"
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, tells the Court. The Debtors,
as well as their current and former employees other than the
Former Employees, may have direct and competing claims for the
insurance proceeds sought by the Former Employees.
Thus, the Debtors believe that the Court should craft an
equitable, provisional remedy to provide the Former Employees
with immediate, interim relief, while at the same time protect
the insurance proceeds available for named defendants and
insured persons other than the Former Employees.
Under the circumstances, therefore, the Debtors do not object to
advancement by the National Union of defense costs actually and
reasonably incurred by the Former Employees, subject to these
terms and conditions:
(a) Any advancements by National Union will not modify,
amend, abridge, or compromise any term, condition, or
limitation, either express or implied by operation of
law, contained in the Policies. All disputes between the
parties about those matters, as appropriate, will be
addressed at a later date;
(b) Any advancements by National Union will not modify,
amend, abridge, compromise, or deprive any interested
party of any of right, protection, burden, obligation, or
duty otherwise applicable or available under the
Bankruptcy Code, or any other federal, state, local, or
common law, statute, regulation, or ordinance. All
disputes between the parties about those matters, as
appropriate, will be addressed at a later date;
(c) During the pendency of the Chapter 11 cases, the Former
Employees will submit to the Court, the Debtors, and the
Official Committee of Unsecured Creditors for review and
prior approval (i) all invoices for advancements not yet
paid by the Debtors; and (ii) all future invoices for
advancements for costs and fees reasonably and actually
incurred in connection with the Securities and Exchange
Commission's litigation and investigations; and
(d) Any advancements by National Union will be capped at
US$5,000,000.
The Former Employees represented that National Union "has agreed
to provide interim funding" of their advancements, pending
resolution of certain disputes between the Insurer and the
Debtors regarding particulars of policy coverage, Mr. Butler
notes.
2. Teachers' Retirement System of Oklahoma, et al.
The Teachers' Retirement System of Oklahoma, the Public
Employees' Retirement System of Mississippi, Raiffeisen
Kapitalanlage-Gesellschaft m.b.H., and Stichting Pensioenfonds
ABP are the Court-appointed Lead Plaintiffs in a consolidated
securities class action against, among others, Delphi
Corporation and its officers and directors, certain
underwriters, and other parties. The Securities Litigation is
currently pending in the United States District Court for the
Eastern District of Michigan.
In the Securities Litigation, the Lead Plaintiffs seek to
recover damages from the Debtors for alleged violations of
certain federal securities laws.
The Lead Plaintiffs assert that the automatic stay does not
apply at all to the proceeds of the Debtors' liability insurance
policy with National Union Fire Insurance Company of Pittsburgh,
Philadelphia.
The Insurance Proceeds are not property of the Debtors' estate.
The Former Employees' request to lift the stay is therefore not
necessary, Ira M. Levee, Esq., at Lowenstein Sandler, PC, in New
York, maintains.
The Lead Plaintiffs do not object to the ultimate relief sought
by the Former Employees. The Lead Plaintiffs, however, object
to the entry of an order that implies that Court approval is
necessary or that the Proceeds are property of the Debtors'
estate.
The Lead Plaintiffs propose to include this language in any
order entered by the Court in connection with the Former
Employee's Motion:
"Nothing in this Order shall constitute a determination that
the proceeds of the National Union [Liability] Policy, or any
similar policy, are property of the Debtors' estate."
3. Equity Committee
The Official Committee of Equity Security Holders asks the Court
to deny the Former Employees' request for three reasons:
(a) The Insurance Policies are property of the Debtors'
estate and any disbursement of the proceeds of the
Insurance Policies would be premature at this time;
(2) The doctrine of unclean hands bars the relief sought by
the Former Employees; and
(3) The Former Employees' claims are contingent and thus,
should be disallowed under Section 502(e)(1) of the
Bankruptcy Code.
The Former Employees are seeking to elevate their claims to
administrative priority status through their motion, Bonnie
Steingart, Esq., at Fried, Frank, Harris, Shriver & Jacobson
LLP, in New York, contends. Moreover, the Former Employees
specify neither the amount of their claims nor the amounts they
believe they will seek in the future under the Debtors'
Insurance Policies.
The Former Employees' claims for payment of their legal fees and
expenses are prepetition claims that are subject to disallowance
under the Bankruptcy Code, Mr. Steingart maintains. It is thus
inappropriate to permit the Former Employees to receive any
payment on account of their claims prior to a determination of:
(i) the scope of the Insurance Policies;
(ii) the total amount of the available insurance proceeds;
(iii) the claims pending against the Debtors that may be
satisfied out of the Insurance Proceeds; and
(iv) the total amount of the claims.
National Union has reserved all of its rights under the
Insurance Policies. Consequently, it is possible that after
making payments to the Former Employees, National Union will
shift the obligation to fund the Former Employees' defense costs
on the Debtors by seeking to have the Debtors reimburse it for
all payments made to the Former Employees, Mr. Steingart notes.
Robert M. Stern, Esq., at O'Melveny & Myers LLP, in Washington,
D.C., represents Alan Dawes.
Richard A. Rossman, Esq., and Matthew J. Lund, Esq., at Pepper
Hamilton LLP, in Detroit, Michigan, represent Paul Free.
Thomas W. Cranmer, Esq., at Miller Canfield Paddock & Stone PLC,
in Troy, Michigan, represents John Blahnik and Peter Janak.
William A. Sankbeil, Esq., at Kerr, Russell & Weber PLC, in
Detroit, Michigan, also represents John Blahnik.
William H. Jeffress, Jr., at Baker Botts L.L.P., in Washington,
D.C., represents J.T. Battenberg, III.
Eric R. Wapnick, Esq., in Bloomfield Hills, Michigan, represents
Pam Geller.
Martin E. Crandall, Esq., at Clark Hill PLC, in Detroit,
Michigan, represents Milan Belans.
Christopher A. Andreoff, Esq., at Jaffe, Raitt, Heuer & Weiss
PC, in Southfield, Michigan, represents Laura Marion.
David Dumouchel, Esq., and Laurie J. Michelson, Esq., at Butzel
Long PC, in Detroit, Michigan, represent Cathy Rozanski.
Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology. The company's technology and
products are present in more than 75 million vehicles on the
road worldwide. Delphi has regional headquarters in Japan,
Brazil and France.
Fitch Ratings has assigned a rating of 'BB-' to Delphi
Corporation's US$2 billion of debtor-in-possession credit
facilities. The DIP facilities will consist of a revolving
credit portion and a term loan portion and are to be pari passu
with each other in terms of priority of repayment, collateral,
and guarantees. The term loan and revolving credit will,
therefore, share the same ratings.
Standard & Poor's Ratings Services lowered its ratings on Delphi
Corp. to 'D' after the company's U.S. operations filed for
Chapter 11 bankruptcy protection.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts. (Delphi Bankruptcy News, Issue No. 49; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
HERBALIFE LTD: Names Jean Marie Cacciatore VP of Human Resources
----------------------------------------------------------------
Herbalife Ltd. appointed Jean Marie Cacciatore as vice president
of human resources for the company's South America and Southeast
Asia region. She will be based in the company's offices in
Torrance, Calif., and report to Rob Levy, the region's senior
vice president and managing director.
Ms. Cacciatore will be responsible for human resource programs
for the region's employees who are based in 16 locations,
including the U.S. Additionally, Cacciatore will be responsible
for real estate planning for the region.
Ms. Cacciatore has over two decades experience in human
resources. Most recently, she served as director, international
human resources of Warner Brothers Entertainment, Inc., where
her areas of responsibilities included global mobility,
compensation and benefits, with emphasis on retention issues.
Ms. Cacciatore spent 10 years in The Walt Disney Company's human
resources department, ultimately directing the international HR
function for corporate headquarters in Europe, Asia and Latin
America, where she led a global team to implement best practices
across regions and businesses. Other positions include vice
president, human resources at DMX Music Inc. and global human
resources director for Mast Industries Inc./The Limited
Corporation, where she helped to build teams within the Mast
organization in Columbus, Ohio, Asia and Latin America.
Ms. Cacciatore holds a Bachelor of Arts degree from West
Virginia University, and completed the human resources executive
program of the University of Michigan Business School, in Hong
Kong.
Herbalife Limited -- http://www.herbalife.com/-- is a global
network marketing company that sells weight-management,
nutritional supplements and personal care products intended to
support a healthy lifestyle. Herbalife products are sold in 62
countries through a network of more than one million independent
distributors. The company supports the Herbalife Family
Foundation -- http://www.herbalifefamily.org/-- and its Casa
Herbalife program to bring good nutrition to children.
Herbalife of Japan K.K. is headquartered in Minato-ku, Tokyo.
* * *
Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.
MITSUBISHI MOTORS: Not Guilty of False Defect Report, Court Says
----------------------------------------------------------------
The Yokohama Summary Court has found Mitsubishi Motors Corp. and
three former executives of the company not guilty of falsifying
a report to the government about a truck defect that caused a
fatal accident, AFX News Limited says.
According to the report, the Yokohama Court cleared Takashi
Usami, the former chairman of Mitsubishi Motors' truck-making
division, and two other former executives, Akio Hanawa and
Tadashi Koshikawa, who was in charge of quality control.
AFX News recounts that Mitsubishi Motors submitted the defect
report to the government after a 29-year-old mother was killed
and her two sons injured by a tyre that came flying off a
Mitsubishi Motors truck in Yokohama, in January 2002.
Prosecutors had argued that the Mitsubishi Motors former
executives had known that faulty wheel hubs might have caused
the accident, but that they and the company had decided to hide
the fact in their report.
The defendants denied the charges, saying that they had not
received a formal request from the transportation ministry for a
report on the incident, as well as argued that insufficient
maintenance was to blame, AFX relates.
Judge Hiroshi Kojima accepted the defendants' arguments.
AFX says that the transportation ministry, which had pushed for
the indictment of the company and the former executives,
described the Court's ruling as "extremely regrettable."
The report further recounts that the Mitsubishi Motors truck
division admitted in March 2004 that a faulty wheel hub may have
caused the 2002 accident, and announced a recall of 112,000
vehicles. In April, Mitsubishi Motors was ordered by a Yokohama
District Court to pay JPY5.5 million in damages to relatives of
the victims of the 2002 accident.
In 2000, Mitsubishi Motors admitted to keeping the
transportation ministry in the dark about at least 64,000
complaints filed by car owners dating back to 1977.
About Mitsubishi Motors
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.
The company also operates consumer-financing services and
provides this to its customer base. MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company. The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."
The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia. Its
products are sold in over 170 countries.
* * *
As reported by the Trubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Standard & Poor's Ratings Services raised its
long-term corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile. S&P said the outlook on
the long-term rating is stable.
As reported by the Troubled Company Reporter - Asia Pacific on
Aug. 4, 2006, Rating & Investment Information Inc. has
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.
As reported by the Trubled Company Reporter - Asia Pacific on
July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook. The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.
NOMURA HOME: DBRS Rates US$9.3 Million Class N4 Notes at B
----------------------------------------------------------
Dominion Bond Rating Service assigned these ratings to the Net
Interest Margin Notes, Series 2006-HE3 issued by Nomura Home
Equity Loan NIM 2006-HE3:
* US$22.7 million Class N1 rated at A (low)
* US$4.3 million Class N2 rated at BBB (low)
* US$2.7 million Class N3 rated at BB (high)
* US$9.3 million Class N4 rated at B
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-HE3. The Class X
Certificates will be entitled to all excess cashflows 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. In addition,
the Notes will benefit from an underlying swap agreement, Swiss
Re Financial Products Corporation.
Payments on the NIM Notes will be made on the 25th of each
month, commencing in December 2006. Class N4 Notes are Accrual
Notes, as the interest amount accrued on these notes is paid as
principal to Class N1 through N3 Notes and such accrued interest
amount is added to the principal balance of the Class N4 Notes.
On each payment date, Interest payments will be distributed
sequentially to the holders of Class N1 through N3 Notes,
followed by principal payments distributed sequentially to the
holders of Class N1 through N3 Notes, until the Note balance of
such class has been reduced to zero. Interest followed by
principal payments will be then distributed to Class N4 Notes.
Any remaining amounts will be distributed to the Issuer, the
Indenture Trustee and holders of preference shares.
The mortgage loans in the Underlying Trust were primarily
originated or acquired by People's Choice Home Loan Inc., First
NLC Financial Services, LLCand Equifirst Corporation (10.77%).
The remaining mortgage loans were originated by various other
originators.
ON SEMICONDUCTOR: Plans US$400MM Sr. Subordinated Notes Offering
----------------------------------------------------------------
ON Semiconductor Corp. proposes to offer US$400 million of
convertible senior subordinated notes in an institutional
private placement. As part of the offering, the company expects
to grant the initial purchasers an option to purchase up to an
additional US$60 million aggregate principal amount of the notes
to cover overallotments.
Assuming the initial purchaser's right is exercised in full,
ON Semiconductor intends to use the net proceeds of the offering
to repay approximately US$199.1 million of amounts outstanding
under the term loan portion of its senior secured credit
facility. In addition, the company intends to repurchase,
concurrently with the pricing of the notes, up to US$230 million
worth of its common stock in privately-negotiated transactions.
All of the repurchases of shares of common stock by the company
are conditioned upon the closing of the offering of the notes.
These transactions are expected to reduce the potential dilution
upon conversion of the notes. Any net proceeds not used to
repay the senior secured credit facility or for share
repurchases will be used for general corporate purposes.
The announcement is neither an offer to sell nor a solicitation
of an offer to buy securities. Any offers of the securities
will be made only by means of a private offering memorandum.
The notes and the common stock issuable upon the conversion of
the notes will be offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities
Act of 1933, as amended. The notes and the common stock
issuable upon conversion of the notes have not been registered
under the Securities Act and may not be offered or sold in the
United States without registration under the Securities Act and
may not be offered or sold in the United States without the
registration or an applicable exemption from registration
requirements.
About ON Semiconductor
ON Semiconductor -- http://www.onsemi.com/-- supplies power
solutions to engineers, purchasing professionals, distributors
and contract manufacturers in the computer, cell phone, portable
devices, automotive and industrial markets. The company has
operations in Japan and the Czech Republic.
* * *
ON Semiconductor Corp.'s bank loan debt and long-term corporate
family rating carry Moody's B2 ratings. The ratings were placed
on Dec. 15, 2005, with a positive outlook.
SAMSONITE CORP: Moody's Junks US$205-Million 8.875% Notes
---------------------------------------------------------
Moody's Investors Service confirmed the B1 corporate family
rating for Samsonite Corp.
Moody's also assigned Ba3 ratings to the proposed US$80-million
senior secured revolving credit facility and US$450-million term
loan B. Proceeds from the new facilities, along with a portion
out outstanding cash balances, will be used to fund a special
dividend and debt repurchase, and pay associated fees and
premiums. The outlook is positive. This concludes the review
for possible upgrade that commenced on Sept. 13, 2006.
The confirmation reflects Moody's concern that the proposed
US$175-million special dividend, which was announced as part of
a series of transactions in November 2006, will significantly
increase leverage and weaken credit metrics to a level that is
inconsistent with an upgrade at this time. Moody's estimates
that pro forma leverage (debt-to-EBITDA) would exceed 6 times
upon completion of the transaction, up from 4.1 times for the
LTM period ending July 30, 2006. The positive rating outlook
reflects Moody's expectation that the company will continue its
profitable growth, both organically and through further
investment, while improving free cash flow generation and
rapidly reducing leverage. A ratings upgrade would likely occur
if leverage approaches 4.5 times while maintaining positive free
cash flow and EBITA margins of over 10% by the end of FYE
January 2008.
On Nov. 21, 2006, Samsonite announced a series of transactions
including:
1) an offer 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;
2) the conversion of at least 90% of the company's
outstanding shares of convertible preferred stock into
shares of its common stock;
3) the entering into a new credit facility consisting of an
approximately US$450-Mln term loan facility and an
approximately US$80-Mln revolving credit facility; and
4) the distribution of US$175-Mln in cash in the form of
a special dividend to the company's stockholders.
Ratings assigned and confirmed:
Samsonite Corp.
-- US$80-Mln senior secured revolving credit facility at
Ba3 (LGD2, 25%);
-- US$450-Mln senior secured term loan at Ba3
(LGD2, 25%); and
-- Corporate Family Rating at B1.
Ratings downgraded:
Samsonite Corp.
-- EUR100-Mln senior unsecured notes to B1 from Ba3; and
-- US$205-Mln 8.875% subordinated to Caa1 from B3.
The ratings on both instruments will be withdrawn upon
completion of the transaction.
Samsonite's ratings are supported by the global strength of its
brands, strong global market share, good geographic and
distribution diversity, and solid cash flow generation and
liquidity. However, the ratings are currently constrained by
high pro forma leverage (debt to EBITDA) and weak pro forma
credit metrics as a result of the proposed special dividend, its
small size relative to other global consumer products companies,
and limited product diversification.
The new revolver and term loan are secured by substantially all
assets of Samsonite Corp. and all wholly owned domestic direct
and indirect subsidiaries. The obligations of Samsonite Europe
N.V. will be secured by a first priority lien on those same
assets and by a first priority pledge of a portion of the equity
of SC International Holdings C.V. and all of the equity of SC
Denmark ApS and Samsonite Europe N.V. However, a portion of the
Samsonite's assets are pledged as security to the Pension
benefit Guaranty Corporation under a 2003 agreement.
Both the revolver and term loan are guaranteed by the U.S.
subsidiaries, while borrowings from Samsonite Europe N.V. also
benefit from additional guarantees by Samsonite Corp., SC
International Holdings C.V. and SC Denmark ApS. A mechanism in
the credit facilities will provide for pari passu sharing of
collateral between the lenders to Samsonite Corp. and Samsonite
Europe N.V. The facilities will include one financial covenant
limiting the level of total debt to EBITDA at levels to be
determined.
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 Japan,
Australia, Costa Rica, Indonesia, India, and the United States
among others.
SAMSONITE CORP: S&P Rates US$530MM Sr. Secured Facility at BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its loan and
recovery ratings to Samsonite Corp.'s US$530 million senior
secured credit facility.
The facility consists of an US$80 million six-year revolving
credit and a US$450 million seven-year term loan B. The loan is
rated 'BB-' with a recovery rating of '3', indicating the
expectation for meaningful recovery of principal in the event of
a payment default.
These ratings are based on preliminary terms and are subject to
review upon final documentation.
Ratings on the company's existing US$35 million multicurrency
revolving credit and US$25 million euro-currency revolving
credit will be withdrawn when the refinancing transaction
closes.
Proceeds from these facilities will be used to fund a US$175
million special dividend to the company's shareholders, and to
repay the remainder of the company's EUR100 million floating-
rate notes due 2010 and US$165 million on its outstanding senior
subordinated notes due 2011.
Standard & Poor's expects 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 expects pro forma
lease- and pension-adjusted debt leverage to increase to
slightly more than 4.0x, from about 3.2x as of July 31, 2006.
The corporate credit rating on Samsonite is 'BB-' and the rating
outlook is negative.
The rating reflects the company's 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.
Ratings List:
* Samsonite Corp.
-- Corporate Credit Rating at BB-/Negative/
Ratings Assigned:
* Samsonite Corp.
-- US$530 Million Senior Secured Credit Facility at BB-,
Recovery Rating at.
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 Japan,
Australia, Costa Rica, Indonesia, India, and the United States
among others.
SENSATA TECH: Moody's Affirms B2 Rating with Stable Outlook
-----------------------------------------------------------
Moody's Investors Service affirmed Sensata Technologies B.V.'s
B2 corporate family and probability of default ratings.
Moody's rating affirmation pertains to Sensata's pending
acquisition of First Technology Automotive and Special Products
from Honeywell and its subsequent financing via a US$95 million
add-on to Sensata's existing senior secured Term Loan B.
Moody's also affirmed all other ratings for Sensata.
The rating outlook remains stable.
The ratings reflect Sensata's high leverage, low interest
coverage, relatively low free cash flow relative to debt levels
and limited tangible asset protection.
Additionally, Moody's notes that Sensata's highly levered
capital structure and short operating history as a stand-alone
company creates additional concerns.
The primary factors supporting Sensata's ratings are:
-- its track record of stable cash flow generation and margin
expansion;
-- long standing customer relationships;
-- significant barriers to entry in Sensata's core markets;
and
-- above-average revenue visibility and significant
enterprise value support.
Moody's believes that the US$90 million FTAS transaction is
relatively small and the US$95 million of increased debt does
not materially affect credit risk. Synergies appear to be a
major driver for the acquisition.
Additionally, Moody's believes that FTAS's higher growth
steering angle sensors and fuel level sensor product platforms
compliment Sensata existing product portfolio.
While the transaction will be financed entirely with debt,
Moody's does not believe that it will result in a material
change to the company's leverage. If presumed synergies
materialize towards the latter end of the rating horizon, the
transaction would result in increased cash flow and could
facilitate slightly faster debt reduction than originally
contemplated when Moody's first rated the company in April 2006.
Sensata designs and manufactures sensors and electrical and
electronic controls and has business and technology development
centers in Attleboro, Massachusetts, Holland and Japan and
manufacturing operations in Brazil, China, Korea, Malaysia, and
Mexico, as well as sales offices around the world. Revenues for
the trailing twelve months ended June 30, 2006, were
approximately US$1.1 billion.
TIMKEN CO: Sells Latrobe Steel to Watermill, Hicks for US$215MM
---------------------------------------------------------------
The Timken Company completed the sale of its subsidiary, Latrobe
Steel, to a group of investors led by the Watermill Group, Hicks
Holdings and Sankaty Advisors, for approximately US$215 million
in cash.
The proceeds provide resources for general corporate purposes,
including strategic growth initiatives and pension funding.
"We are taking actions across our portfolio to increase the
ability to generate consistent profitable growth," James W.
Griffith, president and chief executive officer, said. "We
believe the divestment of Latrobe Steel will create new
opportunities for us to invest in key industrial markets that
have the potential to generate greater value for our
shareholders over time."
Steven E. Karol, founder and managing partner of the Watermill
Group said, "Watermill has a long history of buying and helping
businesses improve. Latrobe Steel is attractive to us due to
its position in growing and profitable markets and a strong
management team. Latrobe has manufacturing and distribution
facilities that are up-to-date, well-maintained and which will
support the company's continued growth. We look forward to
partnering with Hicks, Sankaty and local management in this
endeavor."
"As with our recent sale of the precision steel components
business in Europe and our intention to exit the tubing business
in the United Kingdom, the sale of Latrobe Steel reinforces our
focus on the alloy steel business," Salvatore J. Miraglia, Jr.,
president of Timken's Steel Group, said. "We invested in our
alloy steelmaking capabilities during 2006, adding a new
induction heat-treat line and expanding large bar capacity, and
will continue to look for opportunities to strengthen our
portfolio in this core area going forward."
About Latrobe Steel
Headquartered in Latrobe, Pa., Latrobe Steel through its two
primary business units, Latrobe Steel Manufacturing and Latrobe
Steel Distribution, produces and distributes more than 300
grades of specialty steels for use in aerospace applications,
high performance cutting tools, aluminum casting dies, extrusion
and thread roll dies and other demanding applications. Latrobe
Steel has more than 800 associates across the United States,
including approximately 530 in Latrobe, Pa.
About The Watermill Group
The Watermill Group -- http://www.watermill.com-- is a private
strategic investment firm that focuses on acquiring middle-
market companies in which it can add value through strategic and
operational guidance as well as investment capital.
About Hicks Holdings LLC
Dallas, Tex.-based Hicks Holdings LLC is a private investment
firm that makes corporate acquisitions as well as owns and
manages assets in sports and real estate. The firm's strategy
is based on the "buy build" concept pioneered by Tom Hicks in
the mid-1980s. Examples of the buy build strategy include Dr
Pepper/7-Up, International Home Foods and Chancellor/Clear
Channel.
About Sankaty Advisors
Sankaty Advisors, LLC, the credit affiliate of Bain Capital,
LLC, is a private manager of high yield debt obligations. With
approximately US$13 billion in assets, Sankaty invests in a
variety of securities, including leveraged loans, high-yield
bonds, stressed debt, distressed debt, mezzanine debt,
structured products and equity investments.
About The Timken Company
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The company has
operations in Japan, Australia, Canada, China, France, Germany,
India, Korea, Mexico, Netherlands, Russia, Singapore, Spain,
Taiwan, the United States, and Venezuela, and employs 27,000
employees.
* * *
Moody's Investors Service confirmed The Timken Company's Ba1
Corporate Family Rating and the Ba1 rating on the company's
US$300 Million Unsecured Medium Term Notes Series A due 2028 in
connection with the rating agency's implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.
US AIRWAYS: Pilots Express Concerns on Planned Delta Merger
-----------------------------------------------------------
Following a meeting with US Airways management on Dec. 6, 2006,
the leadership of the US Airways Group Inc. and America West
pilot groups have expressed significant concerns about the
proposed merger with Delta Air Lines Inc. The leaders point out
that, by failing to integrate two pilot groups under one
contract, US Airways management has not yet properly merged US
Airways and America West, demonstrating little chance of
completing the merger of a third airline.
Equally important, the pilot groups, both of which are
represented by the Air Line Pilots Association, International,
have determined that US Airways' Delta proposal raises serious
issues about the job protections contained in the US Airways and
America West contracts, and are questioning the company's
ability to move forward with this transaction.
"Management cannot successfully merge without labor on board.
We have made it clear that our pilots have zero interest in
ratifying a contract that provides them with only minimal
gains," said Captain John McIlvenna, America West Master
Executive Council Chairman. "US Airways, despite its statements
to its investors and the financial community, has not completed
the business of integrating US Airways and America West. This
failure calls into question their ability to successfully merge
three airlines, continue to serve their passengers, deliver
dividends to their investors, and maintain a motivated employee
base."
The US Airways and America West pilot groups are insisting that
management must address their concerns before proceeding with
their plans for any future merger.
"Although they have had ample time and opportunity, US Airways
hasn't yet merged US Airways and America West, and they have not
integrated the pilot groups under one contract," said Captain
Jack Stephan, US Airways MEC Chairman. "I don't expect that
they will be capable of merging a third airline into the fold.
ALPA has determined that job protections are available to the
pilots in their contract language, and will continue to protect
the interest of all ALPA pilots."
Joint negotiations with US Airways management for a single, fair
contract have been ongoing for more than one year, and during
this time, the pilots have received only concessionary proposals
that resemble the bankruptcy-driven contracts made as pilot
investments in the airline during the 9/11 era. Both pilot
groups remain focused on the issue of achieving a fair single
contract, one that is commensurate with US Airways' position in
the marketplace.
About ALPA
Founded in 1931, Air Line Pilots Association, International --
http://www.alpa.org/-- represents 60,000 pilots at 39 airlines
in the U.S. and Canada.
About US Airways
Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.
The company and its affiliates filed for chapter 11 protection
on Aug. 11, 2002 (Bank. E.D. Va. Case No. 02-83984). Under a
chapter 11 plan declared effective on March 31, 2003, USAir
emerged from bankruptcy with the Retirement Systems of Alabama
taking a 40% equity stake in the deleveraged carrier in exchange
for US$240 million infusion of new capital.
US Airways and its subsidiaries filed their second chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the company's
second bankruptcy filing, it listed US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts. The Debtors'
chapter 11 plan for its second bankruptcy filing became
effective on Sept. 27, 2005. The Debtors completed their merger
with America West on the same date.
On March 31, 2006, the Court entered a final decree closing the
chapter 11 cases of four affiliates. Only US Airways, Inc.'s
chapter 11 case remains open.
US Airways (NYSE: LCC) and America West's merger created the
fifth largest domestic airline employing nearly 35,000 aviation
professionals. US Airways, US Airways Shuttle and US Airways
Express operate approximately 3,800 flights per day and serve
more than 230 communities in the U.S., Canada, Europe, the
Caribbean and Latin America. US Airways is a member of Star
Alliance, which provides connections for our customers to 841
destinations in 157 countries worldwide.
US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.
* * *
Standard & Poor's Ratings Services placed its ratings on US
Airways Group Inc., including the 'B-' corporate credit ratings
on US Airways Group Inc. and its major operating subsidiaries
America West Holdings Corp., America West Airlines Inc., and US
Airways Inc., on CreditWatch with developing implications.
At the same time, ratings on enhanced equipment trust
certificates of Delta Air Lines Inc. were also placed on
CreditWatch with developing implications.
USINAS SIDERURGICAS: Posts US$436 Mil. in Exports in 10 Months
--------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA's exports increased 44%
to US$463 million in the first 10 months of 2006, from US$320
million year-over-year, Business News Americas reports.
BNamericas relates that Cosipa, Usinas Siderurgicas' unit, saw
its shipments abroad increase 17% to US$676 million in the first
ten months of 2006.
Meanwhile, Companhia Siderurgica Nacional's exports increased 2%
to US$624 million in the first 10 months of 2006, compared with
the same period in 2005, Secex -- Brazil's foreign trade
ministry -- told BNamericas.
About Companhia Siderurgica
Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages. This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.
About Cosipa
Companhia Siderurgica Paulista aka Cosipa is among Brazil's
largest steelmakers, along with Arcelor Brasil and Companhia
Siderurgica Nacional. The company manufactures cold- and hot-
rolled steel sheets, as well as heavy plates and slabs. Cosipa
sells its products internationally to auto, home appliance, and
pipe manufacturers, with most exports going throughout the
Americas and to Europe, Asia, and Oceania. It also runs its own
domestic port terminal for receiving raw materials used in steel
production and for exporting steel products. Usinas
Siderurgicas de Minas Gerais SA had owned just under half of the
company until 2005, when it made Cosipa a wholly owned
subsidiary.
About Usinas Siderurgicas
Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel. Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries. Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America. The company also sells in China and Japan.
* * *
Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais SA -- Usiminas. At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd. S&P
says the outlook on the corporate credit rating is stable.
=========
K O R E A
=========
NOVELIS INC: S&P Affirms BB- Corporate Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services affirmed all of its ratings
on Novelis Inc., including the 'BB-' long-term corporate credit
rating, and removed the ratings from CreditWatch with negative
implications, where they were placed April 7, 2006. The outlook
is negative.
"The ratings were removed from CreditWatch after the company's
risk of technical default abated with the filing of Novelis'
third-quarter 2006 financial statements," said Standard & Poor's
credit analyst Donald Marleau.
"On the other hand, the negative outlook stems from the elevated
financial risk Novelis faces over the next year or two as it
aims to restore its cash flow and remediate its financial
systems and reporting, especially its risk management techniques
related to commodity metals exposure," Mr. Marleau added.
The ratings on Novelis reflect its aggressive financial profile,
characterized by a heavy debt burden and low margins that have
proven to be less stable than expected when the company began
stand-alone operations in January 2005 after Alcan Inc.
(BBB+/Stable/A-2) spun off substantially all of its aluminum
rolling businesses. Nevertheless, Standard & Poor's expects
the company will take the necessary steps to mitigate the cause
of its surprising margin volatility, and it should return to
increasingly stable profitability in 2007 and 2008.
In addition, Novelis' credit risk has been exacerbated by
significant financial reporting and risk management failings
through 2006 that resulted in two earnings restatements, delayed
filings and associated covenant breaches, a material deviation
from expected cash flow generation, and the resignation of top
managers. These weaknesses are alleviated by the company's
leading position in the global aluminum rolled products market,
extensive geographic and product diversity, and good market
conditions for its products. Novelis uses primary and recycled
aluminum to produce can sheet for sale to beverage producers and
can fabricators; various rolled products for construction,
industrial, and transportation uses; and foil for packaging.
Novelis benefits from a scale and scope of operations that lead
this market, which is typified by the capital intensity and
associated economies of scale of production facilities, as well
as long-standing customer relationships based on a fairly high
degree of product precision and innovation.
The outlook is negative. Novelis will face pressure on its
credit quality for several more quarters, caused by unproven
hedging strategies implemented to shore up its cash flow and
reduce debt, as well as higher interest expenses through at
least the first quarter of 2008, stemming from amendments on its
senior secured credit facilities. Deterioration of credit
measures could result in further pressure from its lenders and
the continuation of disproportionately high financial costs.
Should the combination of hedging strategies and changes to its
sales contracts not effectively reduce its exposure to commodity
metals prices in the next 12 to 18 months, such that the
stability of its cash flow and the pace of debt reduction do not
improve, the ratings will be lowered. Nevertheless, Novelis'
profitability and cash flow are expected to recover through 2007
and 2008, as the company better matches its internal and
external hedges to its commodity metals exposure. Should this
occur, the outlook will be revised to stable.
Continued debt reduction in the next several years could put
upward pressure on the ratings, as the company's capital
structure better corresponds with its satisfactory business
risk.
About Novelis
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has approximately 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets. In Asia, the company has
operations in Malaysia and Korea.
PANTECH CO: Shareholders Want Park's Shares as Collateral
---------------------------------------------------------
Pantech Co. Ltd.'s creditors want Vice Chairman Park Byeong
Yeop's shareholdings as collateral should they give their
approval on the company's debt-workout plan, Bloomberg News
says, citing a report by the Chosun Ilbo.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Pantech Co and its affiliate, Pantech&Curitel
Communications Inc. are seeking their creditors' approval of a
debt-workout plan amid increasing debts and mounting losses.
Under a debt workout program, creditors of a company in
financial trouble delay collecting debts or write them off to
save the company from bankruptcy but require it to reduce its
workforce and assets.
According to the Korean newspaper, the creditors intend to get
hold of 49% interest in Pantech held by Mr. Park and related
parties if the vice chairman fails to get the company back on
track. In this regard, the creditors will hold a meeting today,
Dec. 15, 2006, the paper added.
Headquartered in Seoul, Korea, Pantech Co., Ltd. --
http://www.pantech.co.kr/manufactures mobile phones. Pantech's
products are mainly global system for mobile communication and
code division multiple access phones. The company markets its
products internationally, and supplies Motorola as an original
equipment manufacturer and original design manufacturer. It has
seven subsidiaries involved in the information technology and
telecommunication sectors.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Pantech Co and its affiliate, Pantech&Curitel
Communications Inc., are seeking their creditors' help --
through a debt-workout -- plan to get back on track amid
increasing debts and mounting losses.
SHINHAN BANK: Deploys BT Voice Trading Technology
-------------------------------------------------
Shinhan Bank has deployed the latest voice trading technology,
including BT's ITS.Netrix collaboration device, at its trading
floor in Seoul, BT states in a company release.
According to the release, the trading floor of 65 Global Market
traders was formed as a result of a merger between Shinhan Bank
and Chohung Bank. By working with BT traders in the newly
combined trading floor will use the ITS.Netrix to manage their
voice and data communications. In addition BT will provide the
bank with the ITS Management suite, a service that enables
efficient, effective configuration and monitoring of the ITS
platform, plus extensive diagnosis and fault correction
facilities.
BT states that it worked in conjunction with its local partner,
ITS Convergence, to put in place a p51 ITS voice platform which
supports voice distribution and conferencing, allowing
integration with the bank's existing Avaya PABX telephony
system. The traders have also been equipped with 12 WEY
keyboards -- allowing them to control up to six PC's from a
single keyboard, freeing up even more space on their desks.
Mr. Bu-Ki Park, Deputy General Manager, FX & Derivatives and
Capital Markets Department, Shinhan Bank, said: "Shinhan Bank
upgraded its technology after the merger with Chohung Bank to
ensure our traders are armed with a system that allows prompt
and speedy response. BT's ITS.Netrix enhances the way our
traders work by offering better functionality, thus increasing
productivity. Shinhan Bank is an ambitious bank and considers
the move to install ITS.Netrix as an essential step to keep
ahead in the fast-growing Korean market."
Mick Williams, General Manager for Japan and Korea, BT Financial
Services, said: "The Korean financial market is growing in both
size and technological demands. By installing ITS.Netrix,
Shinhan Bank is equipping themselves with a network-centric
voice and data communication desktop device that will provide
traders with a competitive edge, and grow in technology should
they want to move from TDM to IP connectivity."
About Shinhan Bank
Headquartered in Taepyeong-no, Seoul, Shinhan Bank --
http://www.shinhan.com/-- was established in 1982 with capital
from Korean residents in Japan. It is Korea's fourth largest
bank by assets -- second largest after merging with Chohung Bank
-- holding a 9% share of deposits and 11% of loans. The bank
has developed a strong franchise in the consumer as well as
small and medium-sized enterprise segments. In September 2001,
it formed a holding company, Shinhan Financial Group, under
which it and five other affiliates became stable companies.
Since then, the Shinhan Financial Group has expanded its
organizational structure to include 11 subsidiaries and is now
Korea's second largest financial group.
The Troubled Company Reporter - Asia Pacific reported on
March 16, 2006, that Moody's Investors Service has raised
Shinhan Bank's Bank Financial Strength Rating to D+ from D. The
revised rating carries a stable outlook. The higher BFSR
reflects the bank's sustained financial fundamentals upon its
merger with affiliate Chohung Bank.
Despite Moody's initial concerns, Chohung Bank's credit-
worthiness under its parent, Shinhan Financial Group, has
improved substantially. Therefore, the absorption of Chohung
Bank into Shinhan Bank will not dilute the financial health of
the combined bank as greatly anticipated at the time of the
acquisition. Nonetheless, the financial fundamentals place
Shinhan Bank at the low end of the rating band.
===============
M A L A Y S I A
===============
AKER KVAERNER: Inks EUR50-Million Deal with Porin Prosessivoima
---------------------------------------------------------------
Aker Kvaerner ASA has been awarded a letter of intent to provide
an industrial-size, multi-fuel-fired boiler plant to Porin
Prosessivoima Oy, Finland.
The contract value to Aker Kvaerner is around EUR50 million.
Kvaerner Power is to deliver the power boiler to a new combined
heat and power plant at Kemira's factory in Pori on the west
coast of Finland. The new company Porin Prosessivoima Oy, which
is part of the Finnish energy company Pohjolan Voima Oy, will
build the power plant. The new power plant will produce process
steam for the adjacent factory, district heating for the nearby
town of Pori and electricity.
"Once again, this new order shows Kvaerner Power's expertise in
combustion of demanding fuels. With the help of the advanced
combustion solution Porin Prosessivoima will be able to reduce
its CO2 emissions, by combining the high plant efficiency and
the increased possibility to use biofuels and recycled fuels,"
Lennart Ohlsson, President of Kvaerner Power, said.
Kvaerner Power, part of the Aker Kvaerner group, will supply the
power boiler, which utilizes circulating fluidized bed (CFB)
combustion technology, and will burn wood fuel, peat, recycled
fuel and coal. The boiler will have a steam capacity of 177
megawatts and steam data of 522§C and 84 bar. The contract is a
EPC delivery (engineering, procurement and construction)
consisting of the boiler with auxiliary equipment, the boiler
building, and the flue gas cleaning system. The boiler plant is
designed to fulfill the requirements of the EU waste
incineration directive for co-firing. The new boiler plant will
be ready at the end of 2008.
About Aker Kvaerner
Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and
affiliates, is a leading global provider of engineering and
construction services, technology products and integrated
solutions. The company has operations in Brazil, Chile, China,
India, Indonesia, Japan, Singapore, South Korea, Thailand and
Malaysia.
The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C, each consisting of a number
of separate legal entities.
* * *
Moody's Investors Service, in April 2006, upgraded the of Aker
Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily to
reflect the sustainable strong recovery in profitability and
cash flow generation of the ring-fenced oil and gas group over
the past two years, coupled with the clear reduction in senior
debt, repaid from internally generated funds.
Ratings affected:
Aker Kvaerner Oil & Gas Group AS
-- Corporate family rating: upgraded to Ba1 from Ba3
Aker Kvaerner AS
-- Rating of the second priority lien notes due 2011:
upgraded to Ba1 from Ba3.
Moody's said the outlook on all ratings is stable.
GEORGE TOWN: Court to Hear RO Extension Request on April 3
----------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
July 12, 2006, that the Court of Appeal postponed the hearing on
George Town Holdings Berhad's request for extension of the
restraining order period.
In an earlier report, TCR-AP further recounts that the Court
decided to dismiss a motion filed by an unnamed "intervenor" to
set aside an interim restraining order entered on September 19,
2005, pertaining to George Town Holdings and its 22 subsidiary
and associate companies. The Court of Appeal ruled that the
Restraining Order be continued until the disposal of the appeal.
In an update, the company disclosed in filing with the Bursa
Malaysia Securities Bhd that the convene a hearing on April 3,
2007, to consider George Town's extension request.
The Restraining Order bars any actions or proceedings to be
taken against the company, its subsidiaries and related
companies.
Kuala Lumpur High Court first granted the Restraining Order on
March 9, 2005, to:
-- George Town Holdings Berhad;
-- George Town Chemist Sdn Bhd;
-- Super Departmental Stores (George Town) Sdn Bhd;
-- Super Tanjung Department Stores Sdn Bhd;
-- Super Kinta Departmental Stores Sdn Bhd;
-- Usra Iwaki Plastic Technology (M) Sdn Bhd;
-- Batu Road Supermarket Sdn Bhd;
-- Super Clothing Manufacturing (M) Sdn Bhd;
-- Alpine Sign Sdn Bhd;
-- Arrow- Mega Development Sdn Bhd;
-- Euro Growth Sdn Bhd;
-- GT Design Sdn Bhd;
-- GT Group Management Sdn Bhd;
-- Super Parking Sdn Bhd;
-- Syarikat Great Eastern Clothing Manufacturing (M) Sdn
Bhd;
-- Arrow Projects Sdn Bhd;
-- George Town Chemist (Penang) Sdn Bhd;
-- Golden Pharmaceutical Sdn Bhd;
-- Keramat Supermarket Sdn Bhd;
-- Principle Innovation Sdn Bhd;
-- Sky Dynamics Sdn Bhd;
-- The Super Pastry Centre Sdn Bhd; and
-- Super Kinta Goldsmith Sdn Bhd.
The Restraining Order was secured to allow the Group to finalize
its Proposed Restructuring Scheme.
Under the Scheme:
-- the Group will seek the indulgence of its lenders and
creditors to restructure the terms and repayment
schedule of the borrowings of the group companies;
-- the Group will rationalize and reorganize the existing
stores and further increase the stores to create a
critical mass so that the Company is able to enjoy
economies of scale;
-- the Group had started to rationalize and stream line the
business operations of the Company's retail business
through a review and improvements in the IT systems,
business performance reporting and key retail business
policies in order to improve efficiency and
profitability; and
-- the Proposals will be financed through the issuance of
shares and bonds subject to the approval of the relevant
authorities.
* * *
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.
GEORGE TOWN: Fails to Submit 3Q Financial Results
-------------------------------------------------
George Town Holdings Bhd failed to timely submit before the
Bursa Malaysia Securities Bhd its financial results for the
third quarter ended September 30, 2006.
The bourse set a November 30, 2006 deadline for all listed
companies to file its financial results for the third quarter.
George Town said that they are still in the process of working
on their proposed restructuring scheme thus delaying the
submission of its financial results.
The company intends to submit its third quarter financial
results once its restructuring is finalized.
As reported by the Troubled Company Reporter - Asia Pacific on
November 28, 2006, the company also failed to submit its interim
financial report for the second quarter ended June 30, 2006.
* * *
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.
INTERPUBLIC GROUP: Moody's Rates US$250MM Floating Notes at Ba3
---------------------------------------------------------------
Moody's Investors Service assigned a Ba3 senior unsecured debt
rating to Interpublic Group of Companies, Inc.'s new US$250
million floating rate notes due 2010. The Ba3 rating reflects a
loss given default of about 66% given the company's all-bond
debt capital structure. The rating outlook is negative.
The new notes are being offered in exchange for Interpublic
Groups' US$250 million of floating rate notes due 2008. The Ba3
rating reflects the senior priority of the new notes, pari passu
with all of IPG's other senior unsecured debt. The exchange
period expires Dec. 21, 2006, with early participators receiving
a payment of US$41.25 in cash per US$1,000 principal amount of
old notes exchanged. The early participation payment ended Dec.
7, 2006, with all US$250 million exchanged. As compared to the
exchanged floating rate notes, all terms are substantially
identical except the new notes bear a lower interest rate at
LIBOR plus 200 versus LIBOR plus 325.
"The exchange is another significant step in reducing the 2008
maturities and provides IPG with added liquidity headroom to get
its house in order, since it is still in the midst of a
significant turnaround and internal control weakness remediation
program", said Moody's Senior Vice President Neil Begley.
Moody's also notes that the company is showing signs of
turnaround traction despite the recent Draft/FCB surprising loss
of Wal-Mart's marketing account, and stated that the company
will need to maintain its momentum around its other recent
notable client wins and the operating performance improvement of
the third quarter in order to remove the negative outlook and be
comfortable within the Ba3 rating category.
Interpublic Group of Companies Inc. (NYSE:IPG) --
http://www.interpublic.com/-- is one of the world's leading
organizations of advertising agencies and marketing services
companies. Major global brands include Draft FCB Group,
FutureBrand, GolinHarris International, Initiative, Jack Morton
Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson,
Momentum, MRM, Octagon, Universal McCann and Weber Shandwick.
Leading domestic brands include Campbell-Ewald, Carmichael
Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and
R/GA.
The company has operations worldwide, including in Argentina,
Australia, Chile, China, India, Indonesia, Ireland, Japan,
Malaysia, Panama, Spain, Thailand, the United States and
Venezuela, among others.
INTERPUBLIC GROUP: S&P Holds Watch on Ratings on Wal-Mart Review
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on The
Interpublic Group of Cos. Inc., including the corporate credit
rating of 'B', remain on CreditWatch with negative implications,
where they were placed on March 22, 2006. The CreditWatch
update followed the news that Wal-Mart Stores Inc. has decided
to place under review its business with one of Interpublic's
advertising agencies, although other Interpublic units may pitch
for the business. The New York-based global advertising agency
holding company had approximately US$2.2 billion in debt
outstanding at Sept. 30, 2006.
"Standard & Poor's remains concerned about the resolution of
Interpublic's financial and reporting issues resulting from
material weaknesses in internal controls, the negative trends in
auto advertising, and the overall earnings outlook, especially
in light our lower GDP growth forecast for 2007," said Standard
& Poor's credit analyst Deborah Kinzer.
In resolving our CreditWatch listing, Standard & Poor's will
evaluate the sustainability of recent trends in the company's
organic revenues, margin, and cash flow, and monitor its
progress in resolving control deficiencies. The rating agency
will also address issues relating to client retention, including
implications, if any, of the Wal-Mart review.
Interpublic Group of Companies Inc. (NYSE:IPG) --
http://www.interpublic.com/-- is one of the world's leading
organizations of advertising agencies and marketing services
companies. Major global brands include Draft FCB Group,
FutureBrand, GolinHarris International, Initiative, Jack Morton
Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson,
Momentum, MRM, Octagon, Universal McCann and Weber Shandwick.
Leading domestic brands include Campbell-Ewald, Carmichael
Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and
R/GA.
The company has operations worldwide, including in Argentina,
Australia, Chile, China, India, Indonesia, Ireland, Japan,
Malaysia, Panama, Spain, Thailand, the United States and
Venezuela, among others.
INTERPUBLIC GROUP: Gets US$250MM in Tenders on Exchange Offer
-------------------------------------------------------------
The Interpublic Group of Companies, Inc., received tenders of
US$250 million aggregate principal amount representing all of
its outstanding Floating Rate Notes due 2008 in connection with
its previously announced offer to exchange the old notes for its
new Floating Rate Notes due 2010. Pursuant to the terms of the
exchange offer, Interpublic has accepted the entire principal
amount of old notes tendered for early settlement. Settlement
was expected to occur on Dec. 8, 2006. The exchange offer was
conducted on a private basis in reliance on an exemption from
registration under Section 4(2) of the Securities Act of 1933,
as amended, with qualified institutional buyers.
Interpublic offered eligible holders US$1,000 principal amount
of its new notes for each US$1,000 principal amount of its
outstanding old notes, plus an early participation payment of
US$41.25 in cash per US$1,000 principal amount of old notes
exchanged. Exchanging holders will also receive a cash payment
in the amount of accrued but unpaid interest on their old notes
up to, but not including, the settlement date.
The main differences between the new notes and the old notes are
that the new notes will:
(i) mature in November 2010 (instead of July 2008),
(ii) bear interest at a per annum rate equal to three-month
LIBOR plus 200 basis points (instead of three-month LIBOR
plus 325 basis points) and
(iii) benefit from the terms of a registration rights agreement
between Interpublic and the dealer manager for the
exchange offer.
The new notes will be subject to restrictions on transfer as a
result of the private placement.
The new notes have not been and, at the time of their issuance,
will not be registered under the Securities Act or any state
securities laws. They may not be offered or sold in the United
States absent registration under, or an applicable exemption
from, the registration requirements of the Securities Act and
applicable state securities laws.
Interpublic Group of Companies Inc. (NYSE:IPG) --
http://www.interpublic.com/-- is one of the world's leading
organizations of advertising agencies and marketing services
companies. Major global brands include Draft FCB Group,
FutureBrand, GolinHarris International, Initiative, Jack Morton
Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson,
Momentum, MRM, Octagon, Universal McCann and Weber Shandwick.
Leading domestic brands include Campbell-Ewald, Carmichael
Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and
R/GA.
The company has operations worldwide, including in Argentina,
Australia, Chile, China, India, Indonesia, Ireland, Japan,
Malaysia, Panama, Spain, Thailand, the United States and
Venezuela, among others.
Moody's Investors Service, in December 2006, assigned a Ba3
senior unsecured debt rating to Interpublic Group of Companies,
Inc.'s new US$250 million floating rate notes due 2010. The Ba3
rating reflects a loss given default of about 66% given the
company's all-bond debt capital structure. The rating outlook
is negative.
MOL.COM BHD: Seeks Extension of Regularization Plan Submission
--------------------------------------------------------------
On December 8, 2006, AmInvestment Bank Bhd, on behalf of Mol.Com
Bhd, filed before the Bursa Malaysia Securities Bhd a petition
to extend for two months the submission of the company's
regularization plan to the Securities Commission and other
relevant authorities.
Mol.Com as an Affected Listed Issuer pursuant to the Amended
Practice Note 17/2005 of the Listing Requirements of Bursa
Malaysia is required to submit a Regularization Plan to the
Securities Commission by January 7, 2007.
The petition seeks to extend the submission of the plan until
March 7, 2006.
Proposed Regularization Plan
Pursuant to Mol.Com's Regularization Plan, the company proposes:
A. the cancellation of the company's Entire Share Premium of
approximately MYR42.23 Million as at June 30, 2006, and
reduction of the existing issued and paid-up capital
involving the cancellation of MYR0.70 of the par value of
each of the 225,756,900 ordinary shares of MYR1.00 each in
issue pursuant to sections 60 and 64 of the Companies Act,
1965;
B. consolidation of every 10 ordinary shares of MYR0.30
each into three new ordinary shares of MYR1.00 in MOL
subsequent to the proposed capital reduction; and
C. the issue of renounceable rights of up to MYR27,090,828
nominal value of irredeemable convertible unsecured loan
stocks at 100% of the nominal value of ICULS for every five
MOL shares held after the completion of the proposed capital
reduction and the proposed share consolidation.
* * *
Based in Malaysia, Mol.Com Bhd's principal activities are
provision of electrical engineering services and contracting and
trading of electrical machinery and apparatus. Other activities
include operation and maintenance of web portals, registration
and marketing of internet domain names, provision of web and
information technology solutions, advertising, promotional
activities and investment holding.
Operations are carried out in Malaysia, British Virgin Islands
and Singapore.
Going Concern
The auditors raised a substantial doubt on the company's
operation as going concern after auditing Mol.Com Bhd's Annual
Audited Financial Statement as of June 30, 2006.
They specifically pointed at the company's current liabilities
exceeding its current assets by MYR6.3 million as of June 30,
2006.
In addition, the ability of the company to continue as a going
concern is dependent upon the successful outcome of the proposed
disposal of a property and the company's plan to regularize its
financial condition, continuing financial support from a
significant shareholder and financial institutions as well as
achieving successful future operations.
THERMADYNE HOLDINGS: Incurs US$5.7 Million Net Loss in 3rd Qtr.
---------------------------------------------------------------
Thermadyne Holdings Corporation posted a US$5.7 million net loss
on US$127.2 million of net revenues for the three months ended
Sept. 30, 2006, compared to a US$4.9 million net loss on
US$117.9 million of net revenues for the same period in 2005.
Net sales for the three months ended Sept. 30, 2006, increased
approximately US$8 million as a result of price increases, and
US$2 million of new product introductions and product growth.
These increases were offset by a decrease in net sales of
approximately US$1 million from the impact of foreign currency
translation. Net sales in the third quarter of 2006 were
reduced by US$5.4 million for rebates paid to customers compared
to US$4.5 million in the third quarter of 2005. The increase in
rebates result from increased sales volume to customers
achieving volume levels providing higher rebate percentages.
At Sept. 30, 2006, the company's balance sheet showed US$555.2
million in total assets and US$442.8 million in total
liabilities and a US$112.4 million positive equity.
A full-text copy of the company's quarterly report is available
for free at http://researcharchives.com/t/s?16a1
Filing Delay
The company said that its Form 10-Q filing ended Sept. 30, 2006,
was delayed as a result of the recently completed restatements
of prior period results and to allow for its new independent
registered public accounting firm, KPMG, LLP, to conduct its
review of the company's interim financial statements.
New Principal Accounting Officer
On Nov. 14, 2006, the Board of Directors appointed Mark F.
Jolly, Vice President & Global Controller, to the position of
Principal Accounting Officer.
About Thermadyne
Headquartered in St. Louis Missouri, Thermadyne Holdings
Corporation -- http://www.thermadyne.com/-- is a multi-national
manufacturer of welding and cutting products. The company has
operations in Indonesia, Malaysia, Singapore, Philippines,
Italy, Mexico and Brazil.
The Troubled Company Reporter on Oct. 30, 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 U.S. manufacturing sector, the rating agency
confirmed the Caa1 Corporate Family Rating for Thermadyne
Holdings Corporation, as well as the Caa2 rating on the
company's US$175 Million 9.25% Senior Subordinate Notes due Feb.
1, 2014. Those debentures were assigned an LGD5 rating
suggesting noteholders will experience a 73% loss in the event
of default.
VERIFONE: Earns US$13.9 Million in 2006 Quarter Ended October 31
----------------------------------------------------------------
VeriFone Holdings Inc. reported a US$13.9 million net income for
the three months ended Oct. 31, 2006, compared with US$12.1
million for the comparable period of fiscal 2005. GAAP net
income was impacted in the quarter by the US$4.1 million after-
tax write off of debt issuance costs, attributable to the
refinancing of outstanding debt in connection with the Lipman
acquisition. Net income, as adjusted, which excludes non-cash
amortization of purchased intangibles and debt issuance costs,
as well as non-cash stock-based compensation expense, for the
three months ended Oct. 31, 2006, was US$22.3 million, compared
with US$14.9 million for the comparable period of fiscal 2005.
The company's net revenues increased 20% to US$156.6 million in
the three months ended Oct. 31, 2006, compared with the US$130.5
million recorded in the same period in 2005. The increase was
due to a 30% increase in net revenues from VeriFone's inter-
national business as well as a 14% increase in net revenues from
VeriFone's North America business.
Gross margins, under generally accepted accounting principles
(GAAP), for the three months ended Oct. 31, 2006, were 46.0%,
compared with 42.7% for the three months ended Oct. 31, 2005.
Gross margins, excluding non-cash amortization of purchased
intangibles and stock-based compensation expense, expanded for
the eighth consecutive quarter and reached 47.1% for the three
months ended Oct. 31, 2006, compared with 44.0% for the
comparable period of 2005.
EBITDA, as adjusted, which excludes non-cash amortization of
purchased intangibles and debt issuance costs, as well as non-
cash stock-based compensation expense, expanded for the ninth
consecutive quarter and reached a record level of US$38.0
million, a 44% increase over the US$26.5 million recorded in the
three months ended Oct. 31, 2005. EBITDA, as adjusted, margins
for the three months ended Oct. 31, 2006, reached 24.2%, as
compared with the 20.3% recorded in the three months ended Oct.
31, 2005.
Net revenues for the fiscal year ended Oct. 31, 2006, were
US$581.0 million, an increase of 20% over the US$485.4 million
recorded for fiscal 2005.
Net income for the fiscal year ended Oct. 31, 2006, was US$59.5
million, compared with US$33.2 million for fiscal 2005. Net
income, as adjusted, for the fiscal year ended Oct. 31, 2006,
was US$76.4 million, compared with US$49.7 million for fiscal
2005.
EBITDA, as adjusted, for the fiscal year ended Oct. 31, 2006,
was US$130.4 million, an increase of 51% over the US$86.4
million recorded for fiscal 2005. EBITDA, as adjusted, margins
for the fiscal year ended Oct. 31, 2006, were 22.4%, compared
with 17.8% for the comparable period of 2005.
"VeriFone has completed another outstanding quarter and achieved
record revenue and earnings for fiscal year 2006. This year was
highlighted by our transformative acquisition of Lipman which
combined the two strongest financial performers in the industry
to create the world leader in payment technology," said Douglas
G. Bergeron, chairperson and chief executive officer of VeriFone
Holdings.
Mr. Bergeron noted, "We enter our new financial year poised to
capitalize on our numerous competitive advantages and our very
wide range of product offerings. The integration of Lipman into
VeriFone has been completed ahead of schedule and we have
created a single-branded, unified company with tremendous scale
advantages. Already, we are enjoying several supply chain
efficiencies and earnings accretion. As a result, we have
increased our internal expectations for fiscal Q1 2007 (firsth
quarter of 2007) net earnings per share, as adjusted, to be in
the range of US$0.33 to US$0.34. We remain very confident of
our prospects in fiscal 2007."
Fourth Quarter Highlights
-- VeriFone continued to gain strong momentum in the multi-
lane retail vertical with key multi-million dollar
competitive wins at IKEA and Kroger. A major factor in
the success of our multi-lane retail business is the
MX870, the only large screen solution currently in the
market for customers seeking to meet upcoming PCI
deadlines.
-- VeriFone benefited in Mexico from strong FIMPE activity,
as the company enjoys the vast majority of this ongoing
business. FIMPE is a non-profit private fund formed by
financial institutions to promote and extend the benefits
of access to the electronic payments network to small to
medium size businesses and to foster the culture of
electronic payments among merchants and consumers.
-- VeriFone continued to make good progress in the UK market
this quarter, as demonstrated by its competitive win of
CardNet, a joint venture between Lloyds and First Data.
CardNet chose VeriFone as its primary supplier for desktop
and mobile payment systems, offering an end-to-end
service.
VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems. The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.
The Troubled Company Reporter - Asia Pacific reported on Sept.
29, 2006, that Moody's Investors Service has affirmed the
Corporate Family Rating of B1 of VeriFone and revised the rating
outlook to stable from negative. At the same time, Moody's
assigned ratings to new bank credit facilities that VeriFone
will use to finance its pending acquisition of Lipman Electronic
Engineering Ltd.
=====================
N E W Z E A L A N D
=====================
ALL VINES: Creditors to Prove Claims by December 20
---------------------------------------------------
Joint Liquidators David Donald Crichton and Keiran Anne Horne
require the creditors of All Vines Marlborough Ltd to prove
their claims by Dec. 20, 2006.
The Troubled Company Reporter - Asia Pacific previously reported
that the High Court of Blenheim heard the petition against the
company on Nov. 22, 2006, filed by The Commissioner of Inland
Revenue.
The Joint and Several Liquidators can be reached at:
David Donald Crichton
Keiran Anne Horne
c/o Anna Groen
Crichton Horne & Associates Limited
Old Library Chambers, 109 Cambridge Terrace
(P.O. Box 3978), Christchurch
New Zealand
Telephone:(03) 379 7929
AURORA CONSTRUCTION: Faces Liquidation Proceedings
--------------------------------------------------
On Oct. 30, 2006, Titan Plant Services Ltd filed before the High
Court of Dunedin a liquidation petition against Aurora
Construction Ltd.
The petition will be heard today, Dec. 15, 2006.
The solicitor for the Petitioner can be reached at:
D. G. Dewar
Thomas Dewar Sziranyi Letts
Solicitors
Second Floor, 1 Margaret Street
(P.O. Box 31-240), Lower Hutt
New Zealand
CROSSTOWN INVESTMENT: Creditors' Proofs of Debt Due on Dec. 15
--------------------------------------------------------------
On Nov. 1, 2006, Brian Joseph Walshe and Richard Brian Burge
were appointed as joint and several liquidators of Crosstown
Investments Ltd.
Accordingly, the liquidators fixed today, Dec. 15, 2006, as the
last day for the company's creditors to make their claims and to
establish any priority claims they may have.
The Joint and Several Liquidators can be reached at:
Brian Joseph Walshe
Richard Brian Burge
P.O. Box 30-568
Lower Hutt
New Zealand
Telephone:(04) 569 9069
DEMONSPAWN LTD: CIR Seeks to Liquidate Company
----------------------------------------------
On Oct. 4, 2006, the Commissioner of Inland Revenue filed a
petition to liquidate Demonspawn Ltd.
The petition will be heard before the High Court of Wellington
on Dec. 18, 2006, at 10:00 a.m.
The solicitor for the Petitioner can be reached at:
Mary Kate Crimp
Technical and Legal Support Group
Wellington Service Centre
First Floor, New Zealand Post House
7-27 Waterloo Quay (P.O. Box 1462)
Wellington
New Zealand
Telephone:(04) 890 1067
Facsimile:(04) 890 0009
DENNY'S CORP: Plans to Terminate Trans Fats from Menu Items
-----------------------------------------------------------
In a major step forward in the fight against trans fats, Denny's
Corp. disclosed an aggressive plan for eliminating trans fat
from its menu items. The plan includes changing its frying oil
as well as the margarine products used in food preparation in
restaurants, and working with processed food manufacturers.
Based on final testing that is now underway, the company
anticipates systemwide roll out of a non-trans fat alternative
fry shortening in its more than 1,500 restaurants as early as
the first half of 2007.
"As the nation's largest family restaurant company, we are
unwavering in our commitment to doing what is right for our
millions of guests. We have been working diligently to address
the important issue of trans fat in the foods we serve," said
Peter Gibbons, Denny's Vice President of Product Development.
"In just the past six months, we have made significant progress
on the elimination of trans fats in our fry shortening while
maintaining the flavor and texture of the foods prepared in our
kitchens."
Mr. Gibbons said the company's goal is to eliminate trans fat
from the entire array of products served in Denny's restaurants.
Once the fry shortening and margarine products used in menu
preparation have been converted, Denny's intends to complete
work currently underway with its suppliers to adjust processing
and ingredients to further eliminate trans fats.
"Our comprehensive approach to eliminate trans fats from
products -- wherever they may be introduced in the supply chain
-- is another demonstration of Denny's commitment to our
guests," Mr. Gibbons said.
Mr. Gibbons noted that Denny's is among the first to extend the
elimination of trans fats to include margarine products. He
said the company is currently in the initial phase of testing on
reformulated trans-fat free margarines, and is planning to begin
the second phase of alternative
margarine product testing in 2007.
About Denny's Corp.
Headquartered in Spartanburg, South Carolina, Denny's Corp.
-- http://www.dennys.com/-- is America's largest full-service
family restaurant chain, consisting of 543 company-owned units
and 1,035 franchised and licensed units, with operations in the
United States, Canada, Costa Rica, Guam, Mexico, Puerto Rico,
and New Zealand .
* * *
On November 27, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service raised Denny's
Holdings, Inc.'s corporate family rating to B1 from B2 and
assigned Ba2 ratings to Denny's proposed US$350 million senior
secured credit facility consisting of a US$50 million revolver,
a US$260 million term loan B and a US$40 million synthetic
letter of credit facility. At the same time, the senior
unsecured notes at Denny's Holdings were upgraded to B3 from
Caa1. The proceeds of the proposed bank facilities will pay off
Denny's existing 1st lien credit facility and the 2nd lien term
loan. Accordingly, Moody's expects to withdraw the ratings on
these issues once the proposed credit facility is closed. The
rating outlook remains stable. Moody's noted that the rating
assignments are subject to a review of the final documentation.
DICTATION SYSTEMS: Creditors Must Lodge Claims by Dec. 29
---------------------------------------------------------
Liquidators Murray Eric Judge and Christine Joy Henderson
require the creditors of Dictation Systems Ltd to make their
claims by Dec. 29, 2006, and to establish any priority claims
they may have.
The Liquidators can be reached at:
Murray Eric Judge
Christine Joy Henderson
HWI Limited Chartered Accountants
Level Three, 139 Carlton Gore Road
Newmarket, Auckland
New Zealand
DS & SE WHITE: Names Official Assignee as Liquidator
----------------------------------------------------
On Nov. 20, 2006, the Official Assignee of DS & SE White Ltd was
named as the company's liquidator.
As reported by the TCR-AP, M. Michelin & Company Ltd filed the
petition against the company. The petition was heard before the
High Court of Whangarei on Nov. 20, 2006.
The Liquidator can be reached at:
Official Assignee
Insolvency and Trustee Service
Private Bag 4714, Christchurch
New Zealand
Telephone: 0508 467 658
Web site: http://www.insolvency.govt.nz
FELTEX CARPETS: Court Issues Liquidation Order
----------------------------------------------
On December 13, 2006, the High Court in Auckland ruled in favor
of an application by the Shareholders Association against Feltex
Carpets Limited, thus officially putting Feltex into
liquidation, the Australian Associated Press reports.
John Vague was appointed as liquidator, Newstalk ZB reveals.
Mr. Vague said he will start an immediate investigation into
whether the directors of Feltex acted properly, the report
notes.
As reported in the Troubled Company Reporter - Asia Pacific on
November 28, 2006, New Zealand Shareholders Association in its
capacity as a shareholder, filed with the High Court in Auckland
an application for the appointment of a liquidator.
The association wanted to move to liquidation so it could try to
have the ex-directors banned by the Ministry of Economic
Development from other boards for up to five years and set up a
fund to investigate possible litigation, the Sidney Morning
Herald recounts, citing the New Zealand Herald.
"There's no cash in Feltex but there is cash in some other
people's bank accounts and it will be fun attempting to extract
that from them," Newstalk ZB cites Shareholders Association
chairman Bruce Sheppard, as saying.
Shareholders Association director of advocacy Ross Dillon said,
the proceedings also revealed that the sale to Godfrey Hirst did
not realize enough money to pay out Feltex's bank, the NZ Herald
relates.
Receiver Colin Nicol confirmed that a "small amount" remained
unpaid to ANZ but believed it was irrelevant to the liquidation
order, the Sydney Herald says.
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.
On December 13, 2006, the High Court in Auckland ruled in favor
of an application by the Shareholders Association against Feltex
Carpets Limited. The Court had put Feltex into liquidation.
John Vague was appointed as liquidator for the company.
FELTEX CARPETS: Plant Closure Leaves 35 Redundant Workers
---------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
October 4, 2006, receivers for Feltex Carpets Limited explained
that redundancies at its Kakariki and Christchurch plants were
necessary to support the longer-term viability of the business.
Subsequently, Feltex slashed 124 jobs and closed the plant, the
TCR-AP said.
The TCR-AP further reported that Godfrey Hirst did not intend to
offer re-employment to 134 staff at the Upper Riccarton plant in
Christchurch.
According to Newstalk ZB more than a hundred left a month ago.
On December 12, 2006, the last 35 workers at the weaving site of
Christchurch's Feltex plant left for work for the final time,
Newstalk ZB reports. The workers have been completing contract
orders.
As noted in the TCR-AP, 35 employees were offered employment
until the end of November to complete existing contracts.
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.
On December 13, 2006, the High Court in Auckland ruled in favor
of an application by the Shareholders Association against Feltex
Carpets Limited. The Court had put Feltex into liquidation.
John Vague was appointed as liquidator for the company.
GYMTECH LTD: Court to Hear Liquidation Petition on Dec. 18
----------------------------------------------------------
A petition to liquidate Gymtech Ltd will be heard before the
High Court of Wellington on Dec. 18, 2006, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 1, 2006.
The solicitor for the Petitioner can be reached at:
Julia Marie Snelson
Technical and Legal Support Group
Wellington Service Centre
First Floor, New Zealand Post House
7-27 Waterloo Quay (P.O. Box 1462)
Wellington
New Zealand
Telephone:(04) 890 1127
Facsimile:(04) 890 0009
NETTLEBED FARM: Court Sets Liquidation Hearing on Dec. 18
---------------------------------------------------------
The High Court of Wellington will hear a liquidation petition
filed against Nettlebed Farm Ltd., on Dec. 18, 2006.
The Commissioner of Inland Revenue filed the petition before the
High Court of Masterton on Oct. 31, 2006.
The Solicitor for the Petitioner can be reached at:
Philip Hugh Brian Latimer
Technical and Legal Support Group
Wellington Service Centre
First Floor, New Zealand Post House
7-27 Waterloo Quay (P.O. Box 1462)
Wellington
New Zealand
Telephone:(04) 890 1028
Facsimile:(04) 890 0009
RAISIN GRAPES: Creditors' Proofs of Claim Due on Dec. 20
--------------------------------------------------------
Liquidators David Donald Crichton and Keiran Anne Horne require
the creditors of Raisin Grapes Marlborough Ltd to prove their
claims by Dec. 20, 2006.
Failure to show proofs of debt will exclude a creditor from
sharing in any distribution the company will make.
According to the TCR-AP, the High Court of Blenheim heard the
petition against the company on Nov. 22, 2006, filed by The
Commissioner of Inland Revenue.
The Liquidator can be reached at:
David Donald Crichton
Keiran Anne Horne
c/o Anna Groen
Crichton Horne & Associates Limited
Old Library Chambers, 109 Cambridge Terrace
(P.O. Box 3978), Christchurch
New Zealand
Telephone:(03) 379 7929
SHOTGUN LTD: Creditors' Proofs of Claim Due on December 15
----------------------------------------------------------
Richard Brian Burge and Brian Joseph Walshe were appointed as
joint and several liquidators of Shotgun Ltd on Nov 9, 2006.
Accordingly, the Joint Liquidators fix today, Dec. 15, 2006, as
last day for receiving claims.
The Joint Liquidators can be reached at:
Richard Brian Burge
Brian Joseph Walshe
P.O. Box 30-568, Lower Hutt
New Zealand
Telephone:(04) 569 9069
TEAM ABUNDANCE: Hearing of Liquidation Petition Set for Feb. 22
---------------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against Team Abundance New Zealand Ltd on Feb. 22, 2007, at
10:45 a.m.
Wesfarmers Industrial & Safety NZ Ltd -- trading as Packaging
House -- filed the petition with the Court on Nov. 2, 2006.
The Solicitor for the Petitioner can be reached at:
Debra M. Law
Debtor Management Limited
Unit Eleven, 9 Freeman Way
Manukau City, Auckland
New Zealand
Facsimile:(09) 263 9108
=====================
P H I L I P P I N E S
=====================
ATLAS CONSOLIDATED: BOI Confirms Carmen Copper's Registration
-------------------------------------------------------------
Atlas Consolidated Mining and Development Corporation disclosed
with the Philippine Stock Exchange that the Board of Investments
has confirmed the registration of Atlas' wholly owned subsidiary
-- Carmen Copper Corporation -- as a non-pioneer enterprise.
By virtue of the registration, Carmen Copper as operator of the
Toledo Mining Project will enjoy fiscal incentives, which
include a four-year income tax holiday and duty free importation
of capital equipment.
Carmen Copper hopes to upgrade its registration to pioneer
status in the near future.
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.
ATLAS CONSOLIDATED: SEC Oks Increase of Capital Stock to PHP12BB
----------------------------------------------------------------
The Securities and Exchange Commission has granted Atlas
Consolidated Mining and Development Corporation's application
for the increase of its authorized capital stock from
PHP6,500,000,000 to PHP12,000,000,000. Shareholders
representing at least two-thirds of Atlas' outstanding capital
stock during the meeting held on March 31, 2003, approved the
increase.
Out of the PHP5,500,000,000 increase, PHP5,461,592,440 was
subscribed to by Alakor Corporation and its various assignees
based on the par value of PHP10.00 per share pursuant to the
October 2000 Debt for Equity Swap Agreement between Atlas and
Alakor. The DESA pertains to the conversion of Alakor's
advances to Atlas into equity.
The conversion effected by means of Alakor's subscription to the
increase will result in the permanent elimination from Atlas'
books of the debt corresponding to the amount of capital stock
subscribed.
Atlas hopes to complete its debt restructuring by year-end.
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.
FAIRCHILD SEMICONDUCTOR: Management Approves Restructuring Prog.
----------------------------------------------------------------
Fairchild Semiconductor disclosed that management has approved a
restructuring plan involving the consolidation and
simplification of certain supply chain planning processes and
the streamlining and transfer of certain information systems
support activities.
These transfers will allow for greater operating efficiency as
resources will now be deployed much closer to key Asian business
operations. Direct financial benefits will also result from the
move to lower cost locations.
The Company expects to record restructuring charges of
approximately US$4 million in the fourth quarter of 2006 and
approximately US$500,000 in the first quarter of 2007 for
severance and asset impairment costs related to these actions
which are expected to generate future cost savings of
approximately US$3 million per year.
In addition, Fairchild reiterated its previous guidance for
fourth quarter 2006 revenue to be flat to up 2% and gross
margins to be 50 - 200 basis points lower sequentially.
Fairchild expects to report its fourth quarter financial results
before the market opens on Jan. 25, 2007.
About Fairchild
Fairchild Semiconductor -- http://www.fairchildsemi.com/--
supplies power products critical to leading electronic
applications in the computing, communications, consumer,
industrial and automotive segments. Fairchild's 9,000 employees
design, manufacture and market power, analog & mixed signal,
interface, logic, and optoelectronics products. The company has
locations in Korea, Malaysia, and the Philippines.
* * *
On November 10, 2006, the Troubled Company Reporter - Asia
Pacific 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 U.S. technology
semiconductor and distributor sector, the rating agency affirmed
its Ba3 corporate family rating on Fairchild Semiconductor Corp.
PRC LLC: Moody's Assigns B2 Corporate Family Rating
---------------------------------------------------
Moody's Investors Service assigned PRC, LLC a first time B2
corporate family rating with a stable outlook. Moody's assigned
a Ba3 rating to its first lien credit facilities, consisting of:
-- an undrawn US$20 million revolving credit facility
(expires 2012),
-- a US$25 million delayed draw facility for capital
expenditures (expires 2013), and
-- a US$105 million term loan (expires 2013).
Moody's also assigned a B3 rating to its US$55 million second
lien term loan facility. On Nov. 3, 2006, IAC/InterActiveCorp
(former parent) agreed to sell PRC to private equity firm
Diamond Castle Holdings and members of PRC's management team.
The B2 corporate family rating incorporates PRC's high business
line and client concentration, which compares to sector peers
rated in the Caa category. However, the company's size and
financial strength compare to sector peers rated B2 for the
overall B2 corporate family rating assignment.
The ratings reflect both the overall probability of default of
the company at a 50% LGD rate, to which Moody's assigns a PDR of
B2, and a loss-given-default of LGD-3 for the first lien
facilities and an LGD-5 for the second lien term loan.
Moody's assigned these ratings:
-- Corporate Family Rating B2;
-- US$20 million first lien revolving credit facility: Ba3,
LGD-3, 31%;
-- US$25 million first lien delayed draw capital expenditures
term loan: Ba3, LGD-3, 31%;
-- US$105 million first lien term loan: Ba3, LGD-3, 31%; and
-- US$55 million second lien term loan -- B3, LGD-5, 76%
Plantation, Fla.-based PRC is a business process outsourcing or
BPO provider with operations in the U.S., the Philippines,
India, the Dominican Republic, and Ireland. The company
provides dedicated-agent communication services focusing on
business-to-consumer and business-to-business transactions.
PRC LLC: S&P Assigns B+ Corporate Credit Rating
-----------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating and stable outlook to business process outsourcer
PRC LLC.
At the same time, Standard & Poor's assigned a bank loan rating
of 'BB-', one notch above the corporate credit rating, and
recovery rating of '1' to PRC's proposed US$150 million first-
lien credit facilities, indicating a high expectation of full
recovery of principal in the event of a payment default. The
first-lien credit facilities consist of a US$20 million
revolving credit facility due 2012, a US$25 million delayed-draw
credit facility due 2013, and a US$105 million term loan B due
2013. Standard & Poor's also assigned a 'B-' bank loan rating,
two notches lower than the corporate credit rating, and recovery
rating of '4' to the company's US$55 million second-lien term
loan due 2014, indicating an expectation of marginal (25-50%)
recovery of principal in the event of a payment default.
Proceeds from the transaction will be used to fund Diamond
Castle Holdings LLC's acquisition of PRC from
IAC/InterActiveCorp. Pro forma for the proposed transaction,
total debt outstanding was US$182 million, including US$22
million in holding company 14% pay-in-kind notes due 2015, as of
Sept. 30, 2006.
Plantation, Fla.-based PRC is a business process outsourcing or
BPO provider with operations in the U.S., the Philippines,
India, the Dominican Republic, and Ireland. The company
provides dedicated-agent communication services focusing on
business-to-consumer and business-to-business transactions.
"The ratings reflect PRC's significant revenue concentration
among its top customers, high debt leverage following the
buyout, and the competitive BPO market," said Standard & Poor's
credit analyst Andy Liu. "Also, we are concerned about
uncertain long-term opportunities for cost reduction, and the
presence of several larger and better capitalized competitors."
These factors are only partially offset by good revenue
visibility from multiyear contracts and good BPO industry growth
prospects.
TOWER RECORDS: Appoints Lipman Stevens as Appraiser
---------------------------------------------------
MTS Inc., dba Tower Records, and its debtor-affiliates ask the
Honorable Brendan L. Shannon of the U.S. Bankruptcy Court for
the District of Delaware for authority to employ Lipman Stevens
& Carpenter Inc. as their appraiser for certain real property.
Specifically, Lipman Stevens will provide an appraisal of the
fair market value of a parcel of vacant land (APN 441-270-37)
located at W/S Kemper, South of Sports Arena Boulevard, in San
Diego, California.
The Debtors received a US$200,000 offer for the vacant lot. The
Debtors said that an appraisal is necessary to determine whether
the offer is fair and reasonable.
The Official Committee of Unsecured Creditors and the Unofficial
Committee of Secured Music and Video Vendors have also requested
an appraisal to better assess its fair market value.
Walter J. Stevens, a principal at Lipman Stevens, disclosed that
the Firm will charge a US$2,500 flat fee, including expenses.
Lipman Stevens, however, will not start work if it will not
receive an initial US$1,250 payment.
The Debtors said that, upon Court approval, they will pay an
initial retainer of US$1,250. The balance of the fee will be
paid upon completion of the appraisal.
Mr. Stevens assures the Court that his firm does not represent
or hold any interest adverse to the Debtors or their estates
with respect to the matters on which it is to be employed.
Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores run by licensees in nine different countries
including Philippines, Hong Kong, Malaysia, Ireland, Israel,
Colombia, Ecuador and Mexico. The Company and its affiliates
previously filed for chapter 11 protection on Feb. 9, 2004
(Bankr. D. Del. Lead Case No. 04-10394). The Court confirmed
the Debtors' plan on March 15, 2004.
About Tower Records
Headquartered in Sacramento, California, Tower Records --
http://www.towerrecords.com/-- owns and operates 89 stores in
the United States with 144 additional stores run by licensees in
nine different countries including the Philippines, Hong Kong,
Republic of Ireland, Israel, Colombia, Ecuador, Mexico and
Malaysia. The Company opened one of the first Internet music
stores on America Online in June 1995 and followed a year later
with the launch of Tower.com.
The Debtor and its affiliates previously filed for Chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No. 04-
10394) due to heavy debt incurred during its aggressive
expansion in the 1990s, growing competition from mass
discounters, and Internet piracy. It has exited Argentina,
Canada and the United Kingdom market and has sold off its
profitable Japanese operation, which has split off from the main
chain and is now an independent entity.
The company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million. The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.
=================
S I N G A P O R E
=================
COMPACT METAL: Shareholder Decreases Holdings of Deemed Shares
--------------------------------------------------------------
On Dec. 11, 2006, Yeong Yoon Ying, a substantial shareholder of
Compact Metal Industries Ltd, has decreased the number of shares
he held in the company due to his transfer of shares to an
immediate family.
Presently, Mr. Yeong holds 22,397,000 deemed shares with 10.124%
issued share capital. Before the change, Mr. Yeong held
24,897,000 deemed shares with 11.254% issued share capital.
Mr. Yeong's holdings of direct shares remains as it is at
2,347,920 shares at 1.061% issued share capital.
About Compact Metal
Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products. The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects. Its other
activities include trading aluminium and related products, and
hotel ownership and others. The Group operates in Singapore,
Malaysia, Indonesia, the Philippines, and Australia
As reported by the Troubled Company Reporter - Asia Pacific on
August 10, 2006, auditors KPMG raised significant doubt on
Compact Metal's ability to continue as a going concern, citing
reasons that include:
i. the group's and company's current liabilities that
exceeded their current assets by SGD81.96 million and
SGD78.82 million, respectively, as of December 31, 2005;
ii. the group's and company's recorded net liabilities
attributable to equity holders of the parent of
SGD43.10 million and US$43.83 million, respectively, as
Of December 31, 2005; and
iii. the group's recorded recurring losses with net losses
attributable to equity holders of the parent of
US$24.09 million for the year ended December 31, 2005.
COSCO CONTAINER: Creditors Must File Proofs of Debt by Jan. 8
-------------------------------------------------------------
Cosco Container Depot Pte Ltd, which was placed under members'
voluntary liquidation, requires its creditors to file their
proofs of debt by Jan. 8, 2007, for them to be included in the
company's distribution of dividend.
The company's liquidators can be reached at:
Chee Yoh Chuang
Lim Lee Meng
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
HLG ENTERPRISE: Dispatches Circular to Shareholders
---------------------------------------------------
In relation to the mandatory conditional cash offers made by
Grace Star Services Ltd., in which it will acquire the shares of
HLG Enterprise Limited, a circular has been dispatched on
Dec. 13, 2006, to the company's shareholders, Redeemable
Convertible Holders and NCCPS Holders. The circular contains:
-- the advice and recommendation of Cooperatieve Centrale
Raiffeisen-Boerenleenbank B.A., which is trading as
Rabobank International, Singapore Branch -- the
independent financial adviser to the company's independent
directors on the Offers; and
-- the recommendation of the company's independent directors
on the Offers.
A copy of the circular is also available on the Web site of the
Singapore Exchange Securities Trading Limited at:
http://www.sgx.com
Shareholders, RCPS Holders and NCCPS Holders who did not receive
the circular within a week may obtain their copy during normal
business hours until the closing date from:
Kon Choon Kooi Pte Ltd
47 Hill Street #06-02
Singapore Chinese Chamber
of Commerce & Industry Building
Singapore 179365
Moreover, as reported by the TCR-AP on Dec. 1, 2006, the details
of Grace Star's mandatory conditional cash offers are to
acquire:
(a) all the issued ordinary shares in the capital of HLG
Enterprise not already owned, controlled or agreed to be
acquired by Grace Star;
(b) all the issued series A and B redeemable convertible
preference shares in the capital of HLG Enterprise not
already owned, controlled or agreed to be acquired by
Grace Star; and
(c) all the issued non-redeemable convertible cumulative
preference shares in the capital of HLG Enterprise, not
already owned, controlled or agreed to be acquired by
Grace Star.
About HLG Enterprise Limited
HLG Enterprise Limited -- formerly known as LKN-Primefield
Company Pte Ltd -- is a Singapore-based company involved in
investment holding and investing in property for rental.
Through a number of subsidiaries, the company is engaged in
building and civil engineering construction; the construction of
crude oil tanks and piping systems; commercial and home repair
works and the provision of related maintenance services;
property development, investment and management; property
rental; the operation of hotels and restaurants, and the
provision of hotel management and consultancy. LKN- Primefield
is also involved in the manufacture, retail sale, distribution,
import and export of computer hardware (including computer
peripherals) and software, and the development of multimedia
transactional payphone kiosks. In addition, it is an ESDN
electronic service delivery network provider that owns and
operates a large network of public broadband transactional
terminals. The company's operations are mainly concentrated in
Singapore, China and Indonesia.
On November 29, 2004, HLG Enterprise and certain of its
subsidiaries entered into a debt restructuring plan with the
company's bondholders. HSBC Trustee (Singapore) Ltd. acted as
the trustee for the bondholders; KPMG Business Advisory Pte.
Ltd. acted as New Restructuring Agent/Independent Special
Consultant/Paying Agent.
The company's Sept. 30, 2006, consolidated balance sheet showed
total assets of US$177.62 million and total liabilities of
US$189.1 million, resulting in a shareholders' equity deficit of
US$11.5 million.
As of Oct. 12, 2006, the company has shareholders' deficit of
US$12.72 million, on total assets of US$150.70 million, as
reported by the Troubled Company Reporter - Asia Pacific on
Oct. 13.
HLG ENTERPRISE: Notes Shareholders' Change of Interests
-------------------------------------------------------
HLG Enterprise Limited has noted a series of changes to its
shareholders' interests, which happened on Nov. 24, 2006.
DBS Bank Ltd, a substantial shareholder of the company has
decreased the issued share capital of direct and deemed shares
it holds in the company. DBS Bank still holds 115,454,252
direct shares but its issued share capital has decreased from
17.57% to 13.53% issued share capital. DBS Bank also holds
2,193,780 deemed shares but its issued share capital has
decreased from 0.33% to 0.26%.
Another substantial shareholder of the company, DBS Group
Holdings Ltd, the parent company of DBS Bank has also decreased
the issued share capital of its deemed holdings from 17.90% to
13.79%. DBS Group still holds 117,648,032 deemed shares.
The decrease of the issued share capitals of DBS Bank and DBS
Group in HLG Enterprise was due to the increase of the company's
issued and paid-up capital from 657,197,309 to 853,398,683,
which followed from the conversion of HLG Enterprise's
196,201,374 non-redeemable convertible cumulative preference
shares into new ordinary shares.
Another substantial shareholder, Temasek Holdings Private
Limited has also decreased the number of deemed shares it holds
in the company. Presently, Temasek Holdings holds 117,735,605
deemed shares with 13.80% issued share capital. Before that,
Temasek Holdings held 117,810,205 deemed shares with 17.93%
issued share capital.
The decrease of deemed shares of Temasek Holdings was due to:
-- the transactions made by DBS Group and Keppel Corporation
Limited. Temasek Holdings directly and indirectly owns
approximately 28% of DBS Group while it holds
approximately 22% of Keppel Corporation; and
-- the increase of HLG's issued and paid-up capital from
657,197,309 to 853,398,683, which followed from the
conversion of HLG's 196,201,374 non-redeemable convertible
cumulative preference shares into new ordinary shares.
About HLG Enterprise Limited
HLG Enterprise Limited -- formerly known as LKN-Primefield
Company Pte Ltd -- is a Singapore-based company involved in
investment holding and investing in property for rental.
Through a number of subsidiaries, the company is engaged in
building and civil engineering construction; the construction of
crude oil tanks and piping systems; commercial and home repair
works and the provision of related maintenance services;
property development, investment and management; property
rental; the operation of hotels and restaurants, and the
provision of hotel management and consultancy. LKN- Primefield
is also involved in the manufacture, retail sale, distribution,
import and export of computer hardware (including computer
peripherals) and software, and the development of multimedia
transactional payphone kiosks. In addition, it is an ESDN
electronic service delivery network provider that owns and
operates a large network of public broadband transactional
terminals. The company's operations are mainly concentrated in
Singapore, China and Indonesia.
On November 29, 2004, HLG Enterprise and certain of its
subsidiaries entered into a debt restructuring plan with the
company's bondholders. HSBC Trustee (Singapore) Ltd. acted as
the trustee for the bondholders; KPMG Business Advisory Pte.
Ltd. acted as New Restructuring Agent/Independent Special
Consultant/Paying Agent.
The company's Sept. 30, 2006, consolidated balance sheet showed
total assets of US$177.62 million and total liabilities of
US$189.1 million, resulting in a shareholders' equity deficit of
US$11.5 million.
As of Oct. 12, 2006, the company has shareholders' deficit of
US$12.72 million, on total assets of US$150.70 million, as
reported by the Troubled Company Reporter - Asia Pacific on
Oct. 13.
HUANGHO TRADING: Enters Wind-Up Proceedings
-------------------------------------------
On Nov. 3, 2006, Bank of China Limited filed a wind-up petition
against Huangho Trading Company (Private) Limited.
Accordingly, the High Court of Singapore entered an order on
Dec. 1, 2006, directing the wind-up of Huangho Trading's
operations.
The company's liquidator can be reached at:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road #05-11/#06-11
Singapore 069118
JOHN HANCOCK: Creditors Must File Proofs of Debt by Jan. 8
----------------------------------------------------------
John Hancock Ltd, which was placed under members' voluntary
liquidation, requires its creditors to file their proofs of debt
by Jan. 8, 2007, for them to be included in the company's
distribution of dividend.
The company's liquidators can be reached at:
Tam Chee Chong
6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
PETROLEO BRASILEIRO: Bolivia Must Hire Auditors to Assess Plants
----------------------------------------------------------------
Jose Gabrielli -- chief executive officer of Petroleo
Brasileiro, the state oil company of Brazil, told reporters that
Yacimientos Petroliferos Fiscales Bolivianos, its counterpart in
Bolivia, must hire independent auditors to appraise the value of
the former's two refineries in Bolivia to conclude bilateral
talks.
Business News Americas relates that Petroleo Brasileiro's two
plants in Bolivia are:
-- 40,000-barrel per day Gualberto Villaruel in the
Cochabamba department; and
-- 20,000-barrel per day Guillermo Elder in Santa Cruz.
Petroleo Brasileiro is negotiating with Yacimientos Petroliferos
on the value of a 51% stake in the two plants, which were
transferred to Bolivian control under the hydrocarbons
nationalization decree, BNamericas notes.
Mr. Gabrielli told BNamericas, "There is no deadline to conclude
these negotiations."
Yacimientos Petroliferos would pay Petroleo Brasileiro the
operating costs to pay for the transfer of control of the plants
as well as a return for the latter's investments, BNamericas
reports.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- 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.
PETROLEO BRASILEIRO: Hires DeGolyer to Audit New Finds
------------------------------------------------------
Guilherme Estrella -- exploration and production director of
Petroleo Brasileiro, the Brazilian state-run oil firm -- told
Business News Americas that the company has hired DeGolyer &
McNaughton, an international auditing firm, to audit new
discoveries in Brazil.
According to BNamericas, Petroleo Brasileiro wants the audit
performed before declaring the discoveries commercially
feasible.
Petroleo Brasileiro will disclose commercial feasibility of at
least three new offshore fields in Brazil by the end of 2006,
BNamericas notes.
BNamericas underscores that two of the offshore fields are gas
fields close to the existing Golfinho gas field in the northern
region of Espirito Santo basin.
The third field is in the Campos basin's northern region, close
to the Jubarte heavy crude field, BNamericas states.
The auditing firm can be reached at:
DeGolyer & McNaughton
5151 San Felipe
Houston, TX 77056
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- 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.
PETROLEO BRASILEIRO: Regulator Approves SubSea Conceptual Plan
--------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras disclosed that its
Conceptual Plan for the subsea development of Cascade and
Chinook fields has received approval from the United States
Minerals Management Service or MMS. It is the first approval at
this level of a plan that includes the deployment of a Floating,
Production, Storage and Offloading or FPSO facility in the Gulf
of Mexico.
MMS is an agency of the United States Government that manages
the natural gas, oil and other mineral resources on the outer
continental shelf. The application of new Petrobras
technologies will allow a fast tracked, development approach,
with start of oil production scheduled for 2009. Petrobras has
an extensive experience in the use of FPSO since 1979, with
fifteen units currently under operation offshore Brazil, and
another nine under construction to be deployed in that area.
The proposed solution has a proven track record of improving the
capabilities of developing oil and gas reserves in deep and
ultra deepwater environments. Petrobras has proposed the use of
six technologies that are new to the US Gulf of Mexico including
a disconnectable turret buoy allowing the FPSO to move offsite
during hurricanes and severe weather, crude transportation via
shuttle tanker, free-standing hybrid risers, subsea electric
submersible pumps, torpedo pile vertical loaded anchors and
polyester mooring systems.
The plan consists of the installation and operation of a FPSO
vessel in approximately 8,200 feet of water. The plan provides
for at least two subsea wells in Cascade and one subsea well in
Chinook, each drilled to an approximate depth of 27,000 feet and
to be tied back to the FPSO. Based on reservoir performance,
the development plan could be expanded to include additional
wells on each unit. More detailed engineering studies will now
be carried out, including the preparation of the Deepwater
Operations Plan which will include all technical details
demonstrating that these technologies will meet or exceed the
current requirements for operations in the Gulf of Mexico.
Petrobras is the operator of the Cascade and Chinook Units
owning 50% and 66.67% respectively. Devon Energy Corporation
owns the remaining 50% of Cascade Unit and Total E&P USA, Inc, a
subsidiary of Total SA, owns 33.33% of Chinook Unit.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- 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.
REFCO INC: Judge Drain Extends Removal Period to January 9
----------------------------------------------------------
The Hon. Robert D. Drain of the United States Bankruptcy Court
for the Southern District of New York, in a bridge order issued
Dec. 6, 2006, extended Refco Inc. and its debtor-affiliates'
Removal Period through and including Jan. 9, 2007, without
prejudice to their right to seek further extensions.
The Debtors had asked the Court to further extend the period
within which they may file notices of removal with respect to
pending actions through and including March 12, 2007.
J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher
& Flom LLP, in New York, relates that as of the Petition Date,
the Debtors were plaintiffs in 37 actions and proceedings in a
variety of state and federal courts throughout the country.
Mr. St. Clair states that since the Debtors have continued to
focus primarily on winding down their businesses, formulating
and negotiating a global resolution of their cases, and
soliciting acceptances of their existing Plan of Reorganization,
neither the Debtors nor Refco Capital Markets, Ltd., has
reviewed all the Actions to determine whether any of those
should be removed under Rule 9027(a)(2) of the Federal Rules of
the Bankruptcy Procedure.
Furthermore, the results of the Plan solicitation and
confirmation process may well impact the Debtors' decisions
regarding the removal of Actions, Mr. St. Clair notes.
The Debtors believe that an extension of the Removal Period will
afford them sufficient opportunity to assess whether the Actions
can and should be removed, hence, protecting their valuable
right to adjudicate lawsuits under 28 U.S.C. Section 1452.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and $16.8 billion in debts to
the Bankruptcy Court on the first day of its chapter 11 cases.
On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement. On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.
The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006. Objections to
the plan, if any, must be in by Dec. 1, 2006.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada. Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner
is represented by Bingham McCutchen LLP. RCM is Refco's
operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).
Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436). RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.
(Refco Bankruptcy News, Issue No. 50; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
REFCO INC: Taps Sonnenschein Nath as Special Litigation Counsel
---------------------------------------------------------------
Refco Inc. and its debtor-affiliates seek the United States
Bankruptcy Court for the Southern District of New York's
authority to employ Sonnenschein Nath & Rosenthal LLP as their
special litigation counsel, effective as of November 20, 2006.
Sonnenschein will represent Refco Group Ltd., LLC, in connection
with matters involving Cantor Fitzgerald Securities.
Sonnenschein has been representing non-debtor Refco Securities
LLC in connection with Cantor's arbitration in New York City
with the National Association of Securities Dealers, Inc., on
June 19, 2006.
The Arbitration was based on a breach of a 2004 transaction fee
agreement among Cantor, Cantor Fitzgerald, L.P., eSpeed, Inc.,
RSL, and RGL. Cantor seeks more than US$11,000,000 in the
Arbitration from RSL.
In July 2006, Cantor filed a claim against RGL, which claim was
later amended in October 2006 to assert US$11,193,466.
The Debtors believe that Sonnenschein's representation of RGL is
necessary to:
(i) resolve the Claim against the Debtors' estates; and
(ii) handle other Cantor-related matters, including the sale
or other disposition of RGL's 10% interest in Cantor
Index Holdings, L.P., which RGL acquired in 2002 by
investing US$8,000,000 in Cantor Index.
Furthermore, the Debtors assert that Sonnenschein's familiarity
with the Transaction Agreement and its continued representation
of RSL in the Arbitration supports the firm's employment in the
Debtors' cases for RGL.
Specifically, Sonnenschein will represent RGL in connection
with:
(a) the Claim and Arbitration, including drafting,
negotiating and filing any and all papers to resolve the
Claim and Arbitration;
(b) the Sale Transaction, including drafting, negotiating and
filing any and all papers to effectuate the Sale
Transaction; and
(c) any other matter involving RGL and Cantor, Cantor
Fitzgerald, L. P., or any Cantor affiliate or related
entity.
Sonnenschein's current hourly rates, subject to periodic
adjustments, are:
Partners US$450 to US$880
Associates US$230 to US$480
Legal assistants US$130 to US$250
Sonnenschein will apply for allowance of compensation for
services rendered and reimbursement of expenses incurred in the
Debtors' cases. Sonnenschein will also follow the allocation
procedures for fees and expenses that will require the firm to
(i) report compensation received from RSL including its report
of compensation from RSL and (ii) abide by Court-established
procedures.
Peter D. Wolfson, a partner at Sonnenschein, attests that the
firm does not hold or represent any interest adverse to the
estates, and is a "disinterested person," as that term is
defined in Section 101(14) of the Bankruptcy Code.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement. On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.
The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006. Objections to
the plan, if any, must be in by Dec. 1, 2006.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada. Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner
is represented by Bingham McCutchen LLP. RCM is Refco's
operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).
Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436). RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.
(Refco Bankruptcy News, Issue No. 50; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
VELOOCO GENERAL: Pays Preferential Dividend to Creditors
--------------------------------------------------------
Velooco General Contractors Pte Ltd, which is in liquidation,
has paid the first and final preferential dividend to its
creditors.
The company paid 10.68% to all admitted preferential claims.
The company's liquidators can be reached at:
Chee Yoh Chuang
Lim Lee Meng
Stone Forest Corporate Advisory Pte Ltd
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
===============
T H A I L A N D
===============
iTV PLC: Court Favors Concession Payment; Faces Bankruptcy
----------------------------------------------------------
The Supreme Administrative Court upholds the Central
Administrative Court's verdict by voiding the arbitration ruling
on concession fee payments won by iTV in 2004, various reports
say.
On June 23, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Prime Minister's Office demanded a concession
fee payment and fines to the government from the television
network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
However on May 9, 2006, the Central Administrative Court ruled
that sharp reductions in iTV's concession fees were illegal,
overturning the arbitration committee's 2004 ruling.
iTV filed an appeal with the Supreme Administrative Court on
June 8, 2006, asking it to overrule the lower court's decision.
Based on the decision, iTV would have to pay THB1 billion a year
to the Prime Ministry's Office, which granted the concession, or
at least THB20 billion over the next 20 years of the concession
term.
In addition iTV faces a fine of THB100 million a day for breach
of contract, amounting to THB94 billion throughout the remaining
contract period. The fine far exceeds the company's assets of
about THB3.7 billion.
In its ruling, the Administrative Court rendered the amendment
invalid as it never received cabinet endorsement. Under
Thailand's joint public-private law, any changes to public-
private joint venture contracts require cabinet approval.
The court also said the arbitration panel was not authorized to
rule on the station's editorial content. The Bangkok Post notes
that iTV was initially set up to provide hard news, public
service, thus the matter should be ruled on by the state.
The Post recounts that the arbitration panel allowed iTV to
increase its entertainment programs to 50% from 30%. The ruling
means the station must devote 70% of its content to news and
documentaries.
Meanwhile PM's Office Secretary Jullayuth Hiranyawasit told the
Nation that the PM's Office has not yet decided whether the huge
fine would be reduced or remain unchanged, adding the PM's
Office still has six months to go to court on the fine payment
before the statute of limitations expires.
"The PM's Office can proceed with the fine payment now that the
court's ruling has been issued" Mr. Jullayuth added.
* * *
iTV Plc's principal activity is producing and broadcasting
television programmes and channels, including the promotion of
related rights and assets. Shin Corp Plc is iTV's major
shareholder, with a 53% stake. Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family. Earlier this year, it sold its majority
stake in iTV to Temasek.
NAKORNTHAI STRIP: Cuts Par Value to THB1.12, Reduces Capital
------------------------------------------------------------
Maharaj Planner Company Ltd, the plan administrator for
Nakornthai Strip Mill Public Company Ltd notified the Stock
Exchange of Thailand of NSM's capital reduction exercise.
According to the plan administrator, NSM reduced its par value
from THB8.25 to THB1.12 on December 12, 2006.
After the capital reduction, the company has a registered
capital of THB49,057,325,351 and a registered paid-up capital of
THB23,279,551,064.
The company's registered capital is divided into 43,801,183,349
ordinary shares with the par value of THB1.12, of which
20,785,313,450 ordinary shares are issued and fully paid.
NSM claims that the capital reduction does not have any impact
on the book value of shares of the company.
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$180 million to buy a secured right, which will be used
to convert Nakornthai Strip Mill Public Company Limited's debt
into equity. The deal was part of Nakornthai's debt
restructuring plan.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Allstate Explorations NL ALX 12.65 -51.62
Austar United Communications Ltd. AUN 231.54 -52.58
Hutchison Telecommunications
(Aust) Ltd. HTA 1696.65 -786.31
Indophil Resources NL IRN 37.79 -69.96
Intellect Holdings Limited IHG 15.01 -0.83
KH Foods Ltd KHF 62.30 -1.71
Lafayette Mining Limited LAF 78.17 -127.82
Stadium Australia Group SAX 135.23 -41.84
Tooth & Company Limited TTH 97.05 -70.08
CHINA AND HONG KONG
Artel Solutions Group
Holdings Limited 931 29.19 -18.65
Asia Telemedia Limited 376 10.89 -5.50
Bestway International 718 25.00 -0.67
Chang Ling Group 561 77.48 -76.83
Chengdu Book - A 600083 21.50 -3.07
China Liaoning International
Cooperation Holdings Ltd. 638 20.12 -42.96
China Kejian Co. Ltd. 35 54.71 -179.23
Dynamic Global Holdings Ltd. 231 39.43 -2.21
Everpride Biopharmaceutical
Company Limited 8019 10.16 -2.16
Fujian Changyuan Investment
Holdings Limited 592 31.36 -54.04
Guangdong Meiya Group
Company Ltd. 529 107.16 -49.54
Hainan Overseas Chinese
Investment Co. Ltd. 600759 32.70 -15.28
Hans Energy Company Limited 554 94.75 -10.76
Heilongjiang Sun & Field
Science & Tech. 620 29.96 -49.18
Hualing Holdings Limited 382 242.26 -28.15
Huda Technology & Education
Development Co. Ltd. 600892 17.29 -0.19
Hunan Anplas Co., Ltd. 156 94.17 -65.04
Hunan GuoGuang Ceramic
Co., Ltd. 600286 87.44 -68.55
Hunan Hengyang 600762 68.45 -7.20
Innovo Leisure Recreation
Holdings Ltd. 703 13.68 -2.01
Jiamusi Paper Co. Ltd. 699 120.30 -56.84
Jiangxi Paper Industry
Co. Ltd 600053 19.58 -12.80
Loulan Holdings Limited 8039 13.01 -1.04
Mindong Electric Group Co., Ltd. 536 21.63 -1.50
New City (Beijing) Development
Limited 456 242.25 -21.46
New World Mobile Holdings Ltd 862 295.66 -12.53
Orient Power Holdings Ltd. 615 176.86 -64.20
Shenyang Hejin Holding
Company Ltd. 633 83.18 -20.87
Shenz China Bi-A 17 39.13 -224.64
Shenzhen Dawncom Business Tech
and Service Co., Ltd 863 79.84 -37.30
Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25
Sichuan Changjiang Packaging
Holding Co. Ltd. 600137 13.11 -72.76
Sichuan Topsoft Investment
Company Limited 583 113.12 -148.61
SMI Publishing Group Ltd. 8010 10.48 -7.83
Songliao Automobile Co. Ltd. 600715 49.56 -3.76
Taiyuan Tianlong Group Co.
Ltd 600234 13.47 -87.63
UDL Holdings Limited 620 12.04 -9.31
Winowner Group Co. Ltd. 600681 38.03 -62.88
Xinjiang Hops Co. Ltd 600090 86.63 -11.26
Yantai Hualian Development
Group Co. Ltd. 600766 59.99 -7.66
Yueyang Hengli Air-Cooling
Equipment Inc. 622 49.89 -17.71
Zarva Technology Co. Ltd. 688 101.76 -102.01
Zhejiang Haina Sporting and
Touring Goods Co. Ltd. 925 21.43 -33.33
INDONESIA
Ades Waters Indonesia Tbk ADES 21.35 -8.93
Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21
Hotel Sahid Jaya SHID 71.05 -4.26
Jakarta Kyoei Ste JKSW 44.72 -38.57
Mulialand Tbk MLND 141.33 -45.99
Panca Wiratama Sakti Tbk PWSI 39.72 -18.82
Steady Safe SAFE 19.65 -2.43
Toba Pulp Lestrari Tbk INRU 403.58 -198.86
Unitex Tbk UNTX 29.08 -5.87
Wicaksana Overseas
International Tbk WICO 43.09 -46.36
Sekar Bumi Tbk SKBM 23.07 -41.95
Suba Indah Tbk SUBA 85.17 -9.18
Surya Dumai Industri Tbk SUDI 105.06 -30.49
JAPAN
Mamiya-OP Co., Ltd. 7991 152.37 -67.11
Montecarlo Co. Ltd. 7569 66.29 -3.05
Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10
Sumiya Co., Ltd. 9939 89.32 -11.57
Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14
MALAYSIA
Antah Holdings Bhd ANT 184.60 -98.30
Ark Resources Berhad ARK 25.91 -28.35
Cygal Bhd CYG 58.47 -69.79
Comsa Farms Bhd CFB 50.74 -25.55
Mentiga Corporation Berhad MENT 22.13 -18.25
Metroplex Bhd MEX 323.51 -49.28
Mycom Bhd MYC 222.58 -136.17
Lityan Holdings Bhd LIT 22.22 -19.11
Olympia Industries Bhd OLYM 272.49 -281.44
Pan Malay Industries PMRI 199.08 -6.30
Panglobal Bhd PGL 188.83 -60.07
Park May Bhd PMY 11.04 -13.58
PSC Industries Bhd PSC 62.80 -116.18
Sateras Resources Bhd SRM 43.84 -27.08
Setegap Berhad STG 19.92 -26.88
Wembley Industries Holdings Bhd WMY 111.72 -204.61
PHILIPPINES
APC Group Inc. APC 67.04 -163.14
Atlas Consolidated Mining and
Development Corp. AT 33.59 -57.17
Cyber Bay Corporation CYBR 11.54 -58.06
East Asia Power Resources Corp. PWR 92.55 -64.61
Fil-Estate Corporation FC 33.30 -5.80
Filsyn Corporation FYN 19.20 -8.83
Gotesco Land, Inc. GO 17.34 -9.59
Prime Orion Philippines Inc. POPI 98.36 -74.34
Swift Foods Inc. SFI 26.95 -8.23
Unioil Resources & Holdings
Company Inc. UNI 10.64 -9.86
United Paragon Mining Corp. UPM 21.19 -21.52
Universal Rightfield Property
Holdings Inc. UP 45.12 -13.48
Uniwide Holdings Inc. UW 61.45 -30.31
Victorias Milling Company Inc. VMC 127.83 -32.21
SINGAPORE
ADV Systems Auto ASA 14.32 -8.54
China Aviation Oil (Singapore)
Corporation CAO 211.96 -390.07
Compact Metal Industries Ltd. CMI 54.36 -25.64
Falmac Limited FAL 10.90 -0.73
Gul Technologies Singapore
Limited GUL 152.80 -27.74
HLG Enterprise HLGE 150.70 -12.72
Informatics Holdings Ltd INFO 22.30 -9.14
L&M Group of Companies LNM 57.98 -5.20
Liang Huat Aluminium Ltd. LHA 19.30 -76.43
Lindeteves-Jacoberg Limited LJ 225.52 -53.23
Pacific Century Regional PAC 1381.26 -107.11
See Hup Seng Ltd. SHS 17.36 -0.09
SOUTH KOREA
BHK Inc 3990 24.36 -17.38
C & C Enterprise Co. Ltd. 38420 28.05 -14.50
Cenicone Co. Ltd. 56060 36.82 -1.46
Cheil Entech Co. Ltd. 53330 37.25 -0.31
DaeyuVesper Co. Ltd. 41140 19.06 -1.60
Dewell Elecom Inc. 32590 10.93 -6.92
Everex Inc. 47600 23.15 -5.10
EG Greentech Co. 55250 186.00 -1.50
EG Semicon Co. Ltd. 38720 166.70 -12.34
Tong Yang Major 1520 2332.81 -86.95
TriGem Computer Inc 14900 629.32 -292.96
THAILAND
Bangkok Rubber PCL BRC 70.19 -56.98
Central Paper Industry PCL CPICO 40.41 -37.02
Circuit Electronic
Industries PCL CIRKIT 20.37 -64.80
Daidomon Group Pcl DAIDO 12.92 -8.51
Datamat PCL DTM 12.69 -6.13
Kuang Pei San Food Products
Public Co. POMPUI 12.51 -9.87
Sahamitr Pressure Container
Public Co. Ltd. SMPC 20.77 -28.13
Sri Thai Food & Beverage Public
Company Ltd SRI 18.29 -43.37
Tanayong PCL TYONG 178.27 -734.30
Thai-Denmark PCL DMARK 21.37 -18.88
Thai-Wah PCL TWC 91.56 -41.24
*********
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 ***