/raid1/www/Hosts/bankrupt/TCRAP_Public/061219.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, December 19, 2006, Vol. 9, No. 251
Headlines
A U S T R A L I A
C & S BRAKE: Final Meeting Slated for January 16
CITY WHOLESALERS: Liquidator to Present Wind-Up Report on Jan. 2
CLAM ENGINEERING: To Declare Dividend for Priority Creditors
DE BEIRA GOLDFIELDS: Auditor Issues Going Concern Doubt
EPICUREAN FOODS: Members' Final Meeting Set for January 11
FORTESCUE METALS: Court Favors Open Access to Railways
INDEPENDENT FAN: Commences Wind-Up Proceedings
JAMES HARDIE: Appoints Two Directors and Endorses Two More
MACMURY PTY: Members to Receive Wind-Up Report on January 11
METAL STORM: To Pay Interest on Convertible Notes
MULTIPLEX GROUP: Maurice Blackburn Files AU$100-Mln Class Action
MUNRO TAXI: To Declare First and Final Dividend on Jan. 15
NATURAL STONE: Members and Creditors to Receive Wind-Up Report
OMEGA MULTIMEDIA: John Georgakis Ceases to Act as Receiver
P MCCUBBERY: Schedules Members' Final Meeting on January 17
RAFTONY PTY: Placed Under Member's Voluntary Wind-Up
STEWEN PTY: To Hold Members' Final Meeting on January 12
ZINIFEX LIMITED: To Start Full Feasibility Study on Dugald River
C H I N A & H O N G K O N G
ALERIS INTERNATIONAL: Completes Sale of Carson Property
BANIN CO: Creditors' Proofs of Claim Due on January 15
BANK OF CHINA: Acquires Aircraft Lessor for US965 Million
BENQ CORP: PwC Leads U.K. Unit's Administrative Proceedings
C.T. NOMINEES: Liquidators Cease to Act
CROWN HOLDINGS: Gets Noteholders' Consent to Incur US$200MM Debt
DAIMLERCHRYSLER: YTD Sales in Latin America Climbs 23%
DANA CORP: Plans to Close Four Plants in Next Two Years
E-CHANCE LTD: Names Chiu Tin Lap Jack as Liquidator
EMI GROUP: Inks Video-on-Demand Deal with Yahoo! Music
JOINT BRIGHT: Appoints Leung Chi Wing as Liquidator
PACIFIC ACE: Court to Hear Wind-Up Petition on February 7
SANTEI INTERNATIONAL: Creditors' Proofs of Debt Due on Jan. 5
STANDARD CHARTERED (H.K.): Moody's Upgrades BFSR to C+
SUMIDEN TRADING: Undergoes Voluntary Liquidation
TELLINK LTD: Will Receive Proofs of Claim Until December 29
THE GRAND H.K.: Members Decide to Close Operations
WHOLE WIDER: Members to Receive Wind-Up Report on Jan. 16
C O O K I S L A N D S
* S&P Affirms Cook Islands' BB-/B Sovereign Ratings
I N D I A
AES CORP: Receives US$120 Million Payment from Dominican Govt.
DUERR AG: Expands Asian Business with EUR57 Million Hyundai Deal
ESSAR OIL: Ruias Increase Stake by Global Depository Shares
GENERAL MOTORS: S&P Affirms B Corporate Credit Rating
GENERAL MOTORS: Expects US$1 Million of Truck Sales in 2007
ICICI BANK: CRISIL Assigns Opinion to Receivables Program
INDIAN OIL: Seeks to Acquire 12.5% Stake in TAPCO
INDIAN OIL: To Offer Oil Recovery Services with Balmer Lawrie
JK PHARMACHEM: CRISIL Reaffirms 'D' Rating on INR440MM Debenture
KDL BIOTECH: CRISIL Reaffirms D Rating on INR67MM Debenture
SAURASHTRA CEMENT: Debenture Rating Not Meaningful, CRISIL Says
I N D O N E S I A
ALCATEL-LUCENT: Commences Consent Solicitation for Convertible
ALCATEL-LUCENT: Introduces Mobile TV Service in Asia Pacific
ALLIANCE ONE: Robert Harrison Replaces Brian Harker as CEO
AVNET INC: EC Inquires Into General Electric Access Acquisition
FOSTER WHEELER: Fin'l Improvements Prompt S&P's Positive Outlook
GOODYEAR TIRE: Judge Imposes Restrictions On Union Picketing
GOODYEAR: USW Workers Protest Retirees' Healthcare Abandonment
HESS CORP: Chief Executive Officer Sells 6,000 Shares
HILTON HOTELS: Moody's Affirms Low B Ratings on E & F Certs.
INTERNATIONAL NICKEL: Dep't. of Energy Restricts Tender Offer
METSO OYJ: EC Okays Takeover of Aker Kvaerner's Pulping Unit
METSO OYJ: Merges Business Operations to Form New Unit
METSO OYJ: Draws EUR100-Mln Loan from European Investment Bank
NORTEL: Unit Amends Facility Agreement with Export Development
ORBITAL SCIENCES: Earns US$8.6 Million in 2006 Third Quarter
PT PERTAMINA: Selects Mitsubishi Corp. to Build Gas Plant
* Bond Issuance Robust in 2006, Upbeat in 2007, Fitch Says
J A P A N
CONTINENTAL AIRLINES: Analyst Says UAL Merger Is Good Strategy
CONTINENTAL AIR: Union Ready to Respond to Likely UAL Merger
CONTINENTAL AIRLINES: Schedules US$292MM 4th Qtr. Debt Payments
CONVERIUM HOLDING: Fitch Upgrades Issuer Default Rating to BBB
DELPHI CORP: Court Indefinitely Adjourns Sec. 1113/1114 Hearing
DELPHI CORP: Behind by US$1,250,000,000 in Pension Payments
ELAN CORP: Converts and Redeems US$253.6-Million Notes
MITSUBISHI MOTORS: Launches Production of "Outlander" at Okazaki
K O R E A
DURA AUTOMOTIVE: Eight Vendors Want to Reclaim Prepetition Goods
INTEGRAL VISION: Posts US$661,000 Net Loss in 3rd Quarter 2006
JEONBUK BANK: ABN Amro Bank Accumulates 6.5% Stake
KRISPY KREME: Delays Filing Report for Third Qtr. Ended Oct. 29
HYNIX SEMICONDUCTOR: Claims Fastest PC Memory Chip
M A L A Y S I A
AKER KVAERNER: European Commission Okays Unit Sale to Metso Oyj
AKER KVAERNER: Inks NOK900-Mln Service Deal with ConocoPhillips
CELESTICA INC: Expects Lower 2006 4th Qtr. Revenues and Profits
CELESTICA INC: Updates Guidance for Quarter Ending Dec. 31, 2006
FALCONBRIDGE LTD: Xstrata Guarantees Notes and Preferred Shares
MYCOM BERHAD: Inks Pact to Underwrite up to 31,947,414 Shares
NORTH BORNEO: Faces Legal Suit from Southern Bank
OLYMPIA INDUSTRIES: Extends Assets Sale and Purchase Agreement
OLYMPIA INDUSTRIES: Four Underwriters Takes 91, 798 New Shares
SOLECTRON CORP: S&P Lifts BB- Rating on Solid Financial Profile
SOLUTIA INC: Has Until March 16 to Solicit Plan Acceptances
N E W Z E A L A N D
AIR NEW ZEALAND: To Boost Regional Services in 2007
BABA LOUIE'S: Petition Hearing Slated for January 29
B C AND P: Court Sets Liquidation Hearing on January 30
DIMENSION BUILDERS: Faces Liquidation Proceedings
E.MAC ENTERPRISES: Court to Hear Liquidation Petition on Jan. 29
FREEMONT DESIGN: Official Assignee Acts as Liquidator
HELA PHARMA: Court Appoints Joint Liquidators
IP SERVICES: Creditors to Prove Debts by December 20
KEVIN PURSER: Creditors Must Lodge Claims by December 21
R.K. ROWLAND: Liquidation Hearing Set on Jan. 30
VERSOIX CUSTODIANS: Shareholders Opt to Close Business
WHITEHEAD AND PEARS: Shareholders Opt to Liquidate Business
P H I L I P P I N E S
BANK OF THE PHILIPPINE ISLANDS: 10% Profit in 2006 on Track
DEVELOPMENT BANK: Finances PHP600-Million Oil Tanker
PHILIPPINE NATIONAL BANK: Board Approves Bad Assets Sale to ING
S I N G A P O R E
CIVIL GEO: Pays Dividend to Preferential and Unsecured Creditors
IPCOM PTE: Court Issues Wind-Up Order
ODYSSEY: Underwriters Exercise Overallotment Option to Buy Stock
PACIFIC CENTURY: Indirect Subsidiary Inks Purchase Agreement
REFCO INC: Judge Drain Confirms Modified Joint Chapter 11 Plan
SEE HUP SENG: SGX-ST Approves Listing and Quotation of Shares
T H A I L A N D
iTV PLC: PM's Office Seeks THB100-Bil. Fine Payment in 45 Days
BANGKOK BANK: To Pay Dividends for 2006
PICNIC CORP: Appoints Thananatt and Ameer as Directors
* BOND PRICING: For the Week 18 December to 22 December 2006
- - - - - - - -
=================
A U S T R A L I A
=================
C & S BRAKE: Final Meeting Slated for January 16
------------------------------------------------
The final meeting of the members and creditors of C & S Brake
and Clutch Service Pty Ltd will be held on Jan. 16, 2007, at
9:15 a.m., to consider the liquidators' account of the company's
wind-up proceedings.
According to the TCR-AP, the company commenced a wind-up of its
operations on Sept. 6, 2006.
The joint and several liquidators can be reached at:
Robyn Erskine
Peter Goodin
Brooke Bird & Co
Chartered Accountants
471 Riversdale Road
Hawthorn East 3123
Australia
Telephone:(03) 9882 6666
About C & S Brake and Clutch
C & S Brake And Clutch Service Pty Ltd -- also trading as
Blackburn And District Brake Service -- operates automotive
repair shops.
The company is located in Victoria, Australia.
CITY WHOLESALERS: Liquidator to Present Wind-Up Report on Jan. 2
----------------------------------------------------------------
City Wholesalers Pty Ltd, which is in voluntary liquidation,
will hold a final meeting for its members on Jan. 2, 2007, at
10:00 a.m.
During the meeting, Liquidator W. C. Noye will present a report
regarding the company's wind-up proceedings and property
disposal exercises.
The Liquidator can be reached at:
W. C. Noye
KPMG
Level 30, Central Plaza One
345 Queen Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3233 3111
About City Wholesalers
City Wholesalers Pty Ltd -- trading as Park Avenue Drive Way --
operates gasoline service stations.
The company is located in Queensland, Australia.
CLAM ENGINEERING: To Declare Dividend for Priority Creditors
------------------------------------------------------------
Clam Engineering Pty Ltd, which is in liquidation, will declare
a first and final dividend for its priority creditors on Jan. 4,
2007.
In this regard, priority creditors are asked to file their
proofs of debt by Jan. 3, 2007, to be included in the dividend
distribution.
The liquidator can be reached at:
Craig Crosbie
c/o PPB
Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About Clam Engineering
Clam Engineering Pty Ltd offers engineering services.
The company is located in Victoria, Australia.
DE BEIRA GOLDFIELDS: Auditor Issues Going Concern Doubt
-------------------------------------------------------
In its form 10-KSB filed with the United States Securities and
Exchange Commission, De Beira Goldfields Inc. disclosed that it
has incurred net losses of approximately US$849,000 and
US$16,000 for the years ended August 31, 2006, and 2005,
respectively.
De Beira stated that it has generated no operating revenues
since its inception on May 28, 2004, through the year ended
August 31, 2006. Accordingly, the company has not generated
cash flows from operations.
De Beira noted that it is uncertain as to when it will produce
cash flows from operations to meet operating and capital
requirements and will require significant funding from external
sources.
For the year ended August 31, 2006, De Beira used US$400,000 for
a deposit to acquire 80% of the outstanding shares of Minanca
Minera Nanguipa, Compania Anonima, which owns mineral
exploration property in Ecuador. De Beira has also invested
US$2,000,000 in loan advances to Minanca as per the terms of the
purchase agreement for the year ended August 31, 2006.
De Beira received an aggregate of US$4,500,000 cash through
private placements of its common stock on June 9, and August 30,
2006, raising US$2,000,000 and US$2,500,000, respectively. The
private placement on August 30 included 1,250,000 of purchase
warrants which entitle the holder to purchase one additional
common share at an exercise price of US$2.50 per share for a
period of two years expiring August 31, 2008.
As of August 31, 2006, De Beira had cash and cash equivalents of
US$1,326,000. In addition, subsequent to year-end and through
December 14, 2006, De Beira received US$2,476,000 in proceeds
from the sale of its common shares. Based on its operating
plan, the company believes that existing cash on hand will be
sufficient to fund De Beira's overhead through the end of 2007
fiscal year.
To Seek Financing During FY2007
De Beira currently intends to seek financing of between
US$4 million and US$6 million during fiscal year 2007 in the
form of equity and debt in addition to the US$2.476 million
proceeds received from sale of common shares after the year-end
and up to December 14, 2006. The proceeds will be used to
further exploration programs at Minanca and to develop
exploration programs at Titiribi, Condoroma, and Suyckutambo
projects.
De Beira revealed that with respect to the funding it intended
to seek, approximately US$2 million funds have been received
just prior to December 14, 2006, but with respect to which
common shares have not yet been issued.
Going Concern Doubt
In its report to the Board of Directors dated December 11, 2006,
De Beira's independent auditor -- GHP Horwath, P.C. -- expressed
substantial doubt on the company's ability to continue as a
going concern. GHP Horwath pointed at the company's incurred
net loss of US$848,560 for the year ended August 31, 2006, and a
deficit accumulated during the exploration stage of US$864,829
for the period from May 28, 2004, through August 31, 2006, as
well as the company's limited history and none-revenue producing
operations.
De Beira also revealed that there is no assurance that it will
be able to consummate the contemplated financing of up to
US$4,000,000 to US$6,000,000.
In the event that the company is unsuccessful in raising
additional capital in a timely manner, it will have a material
adverse affect on the company's liquidity, financial condition,
and business prospects.
About De Beira
De Beira Goldfields Inc. -- http://www.debeira.com/-- is a
Nevada corporation that was incorporated on May 28, 2004.
De Beira is an exploration stage company engaged in the
acquisition and exploration of mineral properties.
Since June 2006, De Beira has had its office at:
30 Ledgar Road, Balcatta 6021
Perth, Western Australia, Australia
Tel: +61 (08) 9240 6717 or 011-61-89-240-2836
Fax: +61 (08) 9240 2406
De Beira uses this office space under an arrangement wherein an
entity related to the president and director of the company and
its chairman provide office administration, accounting, and
corporate secretarial services for a fee based on time and
hourly charge rates.
EPICUREAN FOODS: Members' Final Meeting Set for January 11
----------------------------------------------------------
The final meeting of the members of Epicurean Foods and
Beverages Pty Ltd will be held on Jan. 11, 2007, at 10:00 a.m.,
to consider Liquidator Slattery's account of the company's wind-
up proceedings.
As reported by the TCR-AP, the members and creditors of the
company appointed Mr. Slattery as the company's liquidator on
June 13, 2006.
The Liquidator can be reached at:
Rod Slattery
PPB
Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About Epicurean Foods
Epicurean Foods and Beverages Pty Ltd operates investment
offices.
The company is located in Victoria, Australia.
FORTESCUE METALS: Court Favors Open Access to Railways
------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
October 27, 2006, that during a hearing on the dispute between
Fortescue Metals Group Limited and BHP Billiton over rail
access, Fortescue claimed that an old proposal within the mining
giant to sell its rail track shows that the track is not part of
BHP's iron ore production process. Thus, Fortescue believed
that the track should be open to access, the TCR-AP noted.
Fortescue has asserted that BHP is neither the owner nor the
operator of two railways in West Australia's Pilbara region.
According to the TCR-AP, Fortescue's lawyer, Norman O'Bryan QC,
submitted confidential documents about a 1997 Macquarie Bank
proposal for BHP to sell off its West Australian iron ore rail
network through an initial public offer. "None of the documents
consider that there would be an interference with the production
process," Mr. O'Bryan asserted.
In an update, on December 18, 2006, the Federal Court determined
that both the Mount Newman Railway and the Goldsworthy Railway
are not part of BHP Billiton's "Production Process."
Chris Lynch, BHP Billiton Executive Director and Group President
Carbon Steel Materials, admitted that he was disappointed with
the Court's decision. He asserted that the decision threatened
the further growth of one of Australia's critical export
industries.
Mr. Lynch added the "decision has much broader implications
beyond BHP Billiton. Open access to dedicated rail
infrastructure would compromise the efficient production of iron
ore and cause delays in future investment decisions, making
Australian producers less reliable."
BHP Billiton noted that it is reviewing the Federal Court
judgment in detail and will consider options with regards to an
appeal.
BHP Billiton said that the Federal Court ruling does not
automatically enable a third-party to run its trains on BHP
Billiton's Pilbara iron ore rail lines. Separate proceedings
underway in the Australian Competition Tribunal will now
determine the broader question of whether the rail lines should
be "declared" pursuant to Part IIIA of the Trade Practices Act.
Fortescue Metals initiated the ACT proceedings in June 2006
after the Federal Treasurer Peter Costello had earlier declined
to follow a National Competition Council recommendation that the
Mt. Newman rail line be declared. A full hearing of the facts,
including expert opinion, is expected to be conducted during the
second half of 2007.
According to the TCR-AP on November 7, 2005, the NCC declaration
was made in accordance with Part IIIA of the TPA, which
establishes a legal right for third parties to share the use of
certain infrastructure services on reasonable terms and
conditions.
Mr. Lynch said there is a sensible alternative that would
provide a workable approach to infrastructure access, without
significantly impacting BHP Billiton's iron ore production
process.
"We have been actively engaged in discussion with the WA State
Government about developing a revised iron ore haulage regime
based on BHP Billiton's current obligations under the Rail
Transport Agreement. It is our understanding that the State
plans to complete this process by the middle of 2007," Mr. Lynch
said.
Fortescue also said that it will push ahead with its appeal to
the Australian Competition Tribunal to get the Treasurer's
decision overturned.
Fortescue is currently considering the reasons for the decision.
About the Railways
The Mt. Newman and Goldsworthy rail lines are located in the
Pilbara region of Western Australia and transport more than 100
million tones of iron ore each year to Port Hedland for
blending, processing, and shipping.
The Pilbara iron ore operations currently provide annual export
income in excess of AU5.5 billion, directly employ more than
7,000 people, and deliver around AU$1 billion in royalties and
taxes to Australia each year.
About Fortescue
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
In 2005, Fortescue's chief executive officer, Andrew Forrest,
admitted to a AU$500-million blowout on the cost of port and
rail infrastructure in the Pilbara Project because of price
hikes for steel, fuel, construction materials, and contract
labor. The Company also disclosed that the hampered progress of
the Pilbara Project brings in the possibility that the Company
may not meet its ore delivery schedule and pushes up costs at
resource developments across Western Australia. In May 2005,
the Australian Stock Exchange pressured Fortescue to explain
matters about the project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products. The ASX then referred the matter to the
Australian Securities and Investments Commission, which
commenced a legal action against the Company.
The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on August 23 and November 5, 2004. In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters. The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.
* * *
Fortescue reported a net loss for the past two fiscal years.
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was AU$2.15
million.
INDEPENDENT FAN: Commences Wind-Up Proceedings
----------------------------------------------
On Dec. 4, 2006, the members of Independent Fan Supplies Pty Ltd
met and resolved to voluntarily wind up the company's
operations.
Warren Brian White was subsequently appointed as liquidator at
the creditors' meeting held that same day.
The Liquidator can be reached at:
Warren White
PPB
Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About Independent Fan
Independent Fan Supplies Pty Ltd manufactures industrial and
commercial fans, blowers and air purification equipment.
The company is located in Victoria, Australia.
JAMES HARDIE: Appoints Two Directors and Endorses Two More
----------------------------------------------------------
The Supervisory Board of James Hardie Industries Ltd. has
appointed Brian Anderson and Don DeFosset to the company's
Supervisory and Joint Boards effective December 14, 2006. Mr.
Anderson has also been appointed a member of the Audit Committee
and Mr. DeFosset a member of the Remuneration Committee.
The Board has also endorsed two candidates, Michael Hammes and
Rudy van der Meer, to stand for election at the Extraordinary
General Meeting of shareholders to be held in The Netherlands on
February 7, 2007. The Board was unable to immediately appoint
Messrs. Hammes and van der Meer due to restrictions under Dutch
law on the number of appointments the Supervisory Board is able
to make.
As required by the company's Articles of Association, Messrs.
Anderson and DeFosset will also stand for re-election at the
EGM.
Mr. Anderson is a United States resident with extensive
financial and business experience at both executive and board
levels.
Mr. DeFosset is also a resident in the United States, with broad
executive experience in the resources, automotive components,
transport and logistics, and industrial sectors.
Mr. Hammes has extensive commercial experience at senior
executive level in the medical products, hardware and home
improvement, and automobile sectors. He is also a United States
resident.
Netherlands resident, Mr. van der Meer, has considerable
knowledge of global businesses and the building and construction
sector.
James Hardie chairman, Meredith Hellicar, said the appointments
and nominations reflected her previously stated intention to
address the issue of Board renewal. "We promised a planned and
structured renewal process that would provide for a smooth
transition between Directors, and we have now taken significant
steps to achieve this," Ms. Hellicar said.
Ms. Hellicar is confident that Messrs. Anderson, DeFosset,
Hammes, and van der Meer "will add considerable depth to the
Board's business and finance experience, particularly in its
most significant market of the United States."
Director James Loudon who stood for and was re-elected to the
Supervisory and Joint Boards at James Hardie's 2005 Annual
General Meeting, has advised that he will retire from the Board
effective March 31, 2007.
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. The 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.
MACMURY PTY: Members to Receive Wind-Up Report on January 11
------------------------------------------------------------
The members of Macmury Pty Ltd will meet on Jan. 11, 2007, at
10:00 a.m., to receive Liquidator Rod Slattery's report of the
company's wind-up proceedings.
The Troubled Company Reporter - Asia Pacific previously reported
that the company was placed under voluntary wind-up on June 13,
2006.
The Liquidator can be reached at:
Rod Slattery
PPB
Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About Macmury Pty
Macmury Pty Limited manufactures durable goods.
The company is located in Victoria, Australia.
METAL STORM: To Pay Interest on Convertible Notes
-------------------------------------------------
On December 12, 2006, Metal Storm Limited advised that the
payment of interest on Convertible Notes for the period
October 1, 2006, to December 31, 2006, will occur on:
* December 22, 2006, as the record date to identify the Note
Holders entitled to receive interest payments on the
Convertible Notes; and
* January 2, 2007, as the interest payment date.
Interest is payable at 10% per annum.
The interest payment for this period is 0.34027 cents for each
Convertible Note.
The Convertible Notes will trade on an ex-interest basis from
the commencement of trading on December 18, 2006.
Change of Address
Effective as December 12, 2006, Metal Storm also advised that
it's registered business address and principal place of business
address has changed:
-- From
Level 34
Central Plaza One
345 Queen Street
Brisbane QLD 4000
-- To
Building 4
848 Boundary Road
Richlands QLD 4077
The new postal address is at:
P.O. Box 128
Richlands QLD 4077
Tel: 3123 4700
Fax: 3217 0811
About Metal Storm
Metal Storm Limited -- http://www.metalstorm.com/-- is
headquartered in Brisbane, Australia, and incorporated in
Australia, with an office in Arlington, Virginia. Metal Storm
works with government agencies and departments, as well as
industries, to develop a variety of systems utilizing the Metal
Storm non-mechanical, electronically fired stacked ammunition
system.
Metal Storm reflected a loss of AU$10,914,600 in its Annual
Financial Report for the year ended December 31, 2005, which was
attributable to members of its parent company. The Directors
noted that they are actively seeking funding to continue the
Company's operations.
After auditing the Company's 2005 Annual Report, Winna Irschitz,
a partner at Ernst & Young, raised significant uncertainty
regarding the Company's and its consolidated entity's ability to
continue as going concerns.
As stated in the 2005 Annual Report, Metal Storm's continuing
viability, and ability to continue as a going concern and to
meet debts and commitments as and when they fall due is
dependent on its ability to secure additional equity funding in
the near future and to continue the development and progress the
commercialization of its electronically initiated "stacked
projectile" weapons systems.
MULTIPLEX GROUP: Maurice Blackburn Files AU$100-Mln Class Action
----------------------------------------------------------------
Shareholders of Multiplex Group have launched a AU$100 million
class action against the company over the redevelopment of
London's Wembley Stadium, the Australian Associated Press
reports.
On December 18, 2006, in the Federal Court in Melbourne, law
firm Maurice Blackburn Cashman filed a class action on behalf of
45 investors ranging from small shareholders to large
institutions, the report relates.
As reported in the Troubled Company Reporter - Asia Pacific on
October 25, 2006, Maurice Blackburn has been instructed to
commence a class action against Multiplex on behalf of security
holders who purchased or acquired an interest in securities
between Nov. 7, 2003, and May 30, 2005.
According to The Australian, the class action claims that
shareholders were the victims of Multiplex's failure to keep the
market properly informed about its problems with the AU$1-
billion project and the likely impact those problems would have
on the company's profits.
It alleges that Multiplex was behind schedule and had incurred
cost overruns by August 2004, but did not announce until May
2005 that the project would be making a loss, the paper relates.
However, Multiplex group general manager of communications
Vivienne Bower noted that the company has not yet been served
with any proceedings relating to a class action. Thus, it is
not in a position to comment, AAP relates.
About Multiplex
Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its
revenue from property funds management, construction, property
development, and facilities management. The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East. In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion. Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.
Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties. Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down. In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits. This started a series of profit downgrades throughout
2005.
In May 2005, Multiplex admitted that its troubled Wembley
Stadium construction project may end up with a multimillion
loss. As of February 2006, the Company is faced with liquidity
crisis after posting a massive AU$474 million loss on Wembley.
The Troubled Company Reporter - Asia Pacific reported on
August 18, 2006, that Multiplex Group's financial results for
the year ended June 30, 2006, noted that the Wembley project in
the United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss. The project loss position has
remained unchanged since December 31, 2005.
MUNRO TAXI: To Declare First and Final Dividend on Jan. 15
----------------------------------------------------------
Munro Taxi Service Proprietary Ltd, which is in liquidation,
will declare the first and final dividend for its creditors on
Jan. 15, 2007.
Failure to submit proofs of debt by Dec. 29, 2006, will exclude
a creditor from sharing in the company's distribution of
dividend.
The liquidator can be reached at:
G. S. Andrews
G. S. Andrews & Associates
Certified Practising Accountants
22 Drummond Street
Carlton, Victoria 3053
Australia
About Munro Taxi
Munro Taxi Service Proprietary Limited operates taxicabs.
The company is located in Victoria, Australia.
NATURAL STONE: Members and Creditors to Receive Wind-Up Report
--------------------------------------------------------------
The members and creditors of Natural Stone Constructions Pty Ltd
will meet on Jan. 15, 2007, at 10:00 a.m., to receive the wind-
up report from Liquidator Ross A. Blakeley.
As reported by the TCR-AP, the company was placed under members'
voluntary wind-up, on Dec. 14, 2005, due to its inability to pay
its debts.
The Liquidator can be reached at:
Ross A. Blakeley
Taylor Woodings
Chartered Accountants
Suite 612, 530 Little Collins Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9909 7130
Facsimile:(03) 9909 7134
About Natural Stone
Natural Stone Constructions Pty Ltd specializes in construction
of highways and street construction, except elevated highways.
The company is located in Victoria, Australia.
OMEGA MULTIMEDIA: John Georgakis Ceases to Act as Receiver
----------------------------------------------------------
On Nov. 30, 2006, John Georgakis ceased to act as receiver of
the property of Omega Multimedia Pty Ltd.
According to the TCR-AP, Mr. Georgakis was appointed as the
company's receiver on July 4, 2006.
Mr. Georgakis can be reached at:
John Georgakis
Ernst & Young
8 Exhibition Street
Melbourne, Victoria 3000
Australia
Telephone: 03 9288 8000
About Omega Multimedia
Omega Multimedia Pty Ltd provides communications services.
The company is located in Victoria, Australia.
P MCCUBBERY: Schedules Members' Final Meeting on January 17
------------------------------------------------------------
P McCubbery Pty Ltd, which is in voluntary liquidation, will
hold a final meeting for its members on Jan. 17, 2007, at
10:00 a.m.
At the meeting, the members will receive Liquidator Jenni Nash's
report regarding the company's wind-up proceedings.
The Liquidator can be reached at:
Jenni Nash
35 Dalton Drive
Maroochydore, Queensland
Australia
About P McCubbery
P McCubbery Pty Ltd operates offices and clinics of health
practitioners.
The company is located in Queensland, Australia.
RAFTONY PTY: Placed Under Member's Voluntary Wind-Up
----------------------------------------------------
At a general meeting held on Nov. 29, 2006, the members of
Raftony Pty Ltd resolved to voluntarily wind up the company's
operations.
Accordingly, Robyn Erskine and Peter Goodin were appointed as
liquidators.
The Liquidators can be reached at:
Robyn Erskine
Peter Goodin
Brooke Bird & Co
Chartered Accountants
471 Riversdale Road
Hawthorn East, 3123
Australia
About Raftony Pty
Raftony Pty Ltd -- trading as Raffaele's Classic Italian
Restaurant -- operates eating places.
The company is located in Victoria, Australia.
STEWEN PTY: To Hold Members' Final Meeting on January 12
--------------------------------------------------------
Stewen Pty Ltd will hold a final meeting for its members on
Jan. 12, 2007, at 11:00 a.m., to consider the liquidator's
account of the company's wind-up proceedings.
The Troubled Company Reporter - Asia Pacific previously reported
that the company declared a first and final dividend on Aug. 13,
2006.
The liquidator can be reached at:
Mark Pearce
Pearce & Heers
Insolvency Accountants
Level 8, 410 Queen Street
Brisbane
Australia
About Stewen Pty
Stewen Pty Ltd is an investor relation company.
The company is located in New South Wales, Australia.
ZINIFEX LIMITED: To Start Full Feasibility Study on Dugald River
----------------------------------------------------------------
On December 18, 2006, Zinifex Limited revealed that a pre-
feasibility study of its Dugald River project has now been
completed and indicates that the development of a 200,000 tonne
per annum mine is viable. Accordingly, a full feasibility study
has been commissioned to commence in early 2007.
According to Zinifex's Chief Executive Officer, Greig Gailey,
Dugald River has taken the next step to becoming an operating
mine in 2011. "If developed, Dugald River would increase
Zinifex's zinc concentrate output by a third and is a key
component of our strategy to vigorously grow our mining
business, he said"
It would also extend Zinifex's mine life well beyond 2020, Mr.
Gailey added.
Located near Cloncurry in North-West Queensland, Dugald River is
one of the world's largest undeveloped deposits with good grades
of zinc, lead, and silver.
Mr. Gailey stated that Dugald River "is conveniently located
close to power, water and transport infrastructure thus reducing
the cost of developing the mine."
The pre-feasibility study concluded that Dugald River is
amenable to mining with conventional underground mining
techniques and high metal recovery rates are expected to be
achieved with standard crushing, grinding, and floatation
processing.
"Importantly the pre-feasibility study found that there is a
ready market for Dugald River zinc concentrate. Previous
concerns that manganese in the concentrate would be an issue
have diminished," Mr. Gailey noted.
The full feasibility study is expected to take 18 months to
complete at a cost of approximately AU$25 million.
"We are optimistic that the full feasibility study will deliver
a positive outcome and that we will be contemplating a mine
development decision in mid 2008," Mr. Gailey concluded.
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
================================
ALERIS INTERNATIONAL: Completes Sale of Carson Property
-------------------------------------------------------
Aleris International, Inc., has completed the sale of the real
property and buildings at its former manufacturing site in
Carson, California. Aleris discontinued its aluminum rolling
operations at this facility in the first quarter of 2006 and
later completed dismantling operations.
Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production. The company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust. The
company operates 50 production facilities in North America,
Europe, South America and Asia, and employs approximately 8,600
employees.
The company has production facilities in China.
* * *
The Troubled Company Reporter - Asia Pacific reported on
September 11, 2006, that Standard & Poor's Ratings Services
lowered its corporate credit rating on Aleris International to
'B+' from 'BB-'and removed it from CreditWatch, where it was
placed with negative implications on Aug. 9. The CreditWatch
placement comes after the report that Texas Pacific Group had
agreed to acquire Aleris' outstanding stock for nearly
US$3.4 billion, consisting of US$1.7 billion in cash plus
assumed debt, representing a 6.8x trailing-12-months EBITDA
multiple.
The outlook is stable.
Moody's Investors Service downgraded Aleris International Inc.'s
corporate family rating to B2 from B1.
At the same time Moody's assigned these ratings to Aurora
Acquisition Merger Sub, Inc:
-- proposed senior secured term loan at B2;
-- proposed senior unsecured notes at B3;
-- proposed senior subordinated notes at Caa1; and,
-- a B2 rating to Aleris Deutschland Holding GMBH's proposed
senior secured term loan.
BANIN CO: Creditors' Proofs of Claim Due on January 15
------------------------------------------------------
Liquidator David J. Lawrence requires the creditors of Banin
Company Ltd to submit their proofs of claim by Jan. 15, 2007.
Creditors who fail to submit proofs of claim by the due date
will be excluded from sharing in any distribution the company
will make.
The Troubled Company Reporter - Asia Pacific previously reported
that the company entered liquidation proceedings on Oct. 30,
2006.
The liquidator can be reached at:
David J. Lawrence
7/F, Alexandra House
18 Chater Road, Central
Hong Kong
BANK OF CHINA: Acquires Aircraft Lessor for US965 Million
---------------------------------------------------------
Bank of China Ltd will buy all shares of Singapore Aircraft
Leasing Enterprise for US$965 million making it the first major
acquisition made by a state-owned Chinese bank, various reports
say.
The bank agreed to buy Singapore Aircraft from controlling
shareholders:
-- Singapore Airlines (35.5% stake);
-- German bank WestLB (35.5% stake);
-- Temasek (14.5%); and
-- Government of Singapore Investment Corp (14.5%).
The price represents 1.8 times to the company's equity value of
US$535 million as of Sept. 30, 2006, Bloomberg says. Bank of
China will also assume Singapore Aircraft's US$2.28 billion of
debt.
Singapore Aircraft, whose clients include easyJet, AirAsia, and
Qantas Airways, posted an after-tax profit of US$34.7 million in
the year to March, up from a previous US$5.2 million, Reuters
notes.
The lessor owns a fleet of 63 aircraft and manages 14 more for
third parties. It has firm orders outstanding for 28 planes and
options and purchase rights to buy 20 more.
Wang Zhaowen, spokesperson for the Bank of China told Xinhuanet
that the acquisition formed part of the bank's overall corporate
strategy in expanding its scope of diverse financial services
and increasing its diversification into non-interest income.
"This is a unique opportunity for Bank of China to acquire a
global leasing platform," David Chin told Bloomberg.
Bank of China will appoint directors to the board of Singapore
Aircraft, which will be run by the company's existing management
based in Singapore. Robert Martin will remain the company's
chief executive officer.
Citigroup represented Singapore Aircraft shareholders, while UBS
and Morgan Stanley advised Bank of China.
About Singapore Aircraft Leasing Enterprise
Singapore Aircraft Leasing Enterprise --
http://www.saleleasing.com/-- is an Asia-based aircraft leasing
company providing fleet solutions for the global airline
industry.
SALE is headquartered in Singapore, and has representatives
based in the UK and the US. To date, the company has worked
with over 50 airlines worldwide, including carriers from the
full service, low cost and charter markets.
In addition to operating leases, SALE offers a wide range of
related services. These include sale and leaseback facilities
for single aisle and widebody aircraft types, third party lease
management and structured finance services.
* * *
Headquartered in Beijing, China, the Bank of China --
http://www.bank-of-china.com/-- provides corporate banking,
retail banking and investment banking. Other activities include
provision of corporate deposits, corporate loans, foreign
exchange business, savings deposits, consumer credit and
bankcards. It has 12,967 domestic branches and 559 overseas
branches. The bank received a US$22.5 billion capital injection
from the Government in 2003 to restructure state-owned banks.
* * *
On August 11, 2006, Moody's Investors Service affirmed the
bank's BFSR at D-.
On Dec. 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that 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.
BENQ CORP: PwC Leads U.K. Unit's Administrative Proceedings
-----------------------------------------------------------
William Birchall and David John Blenkarn of
PricewaterhouseCoopers LLP were appointed joint administrators
of Benq Mobile U.K. Ltd. (Company Number 05547397) on Oct. 16.
PricewaterhouseCoopers LLP -- http://www.pwcglobal.com/--
provides auditing services, accounting advice, tax compliance
and consulting, financial consulting and advisory services to
clients in a variety of industries.
About BenQ
Headquartered in Bracknell, England, Benq Mobile U.K. Ltd. is a
subsidiary of BenQ Corp. -- http://www.benq.com/BenQ is
principally engaged in manufacturing, developing and selling of
computer peripherals and telecommunication products. It is also
a major provider of 3G handset, 3G handset, Camera phones, and
other products.
BenQ Mobile GmbH & Co., BenQ Corp.'s wholly owned subsidiary in
Munich, Germany, filed for insolvency on Sept. 29. The collapse
follows a year after Siemens sold the company to Taiwanese
technology group BenQ. BenQ Mobile has lost market share
against giant competitors.
BenQ Mobile's UK division followed the German business unit into
administration after it exhausted all avenues to ensure minimal
impact on its plans for the Christmas quarter.
C.T. NOMINEES: Liquidators Cease to Act
---------------------------------------
On Dec. 12, 2006, Nicholas Peter Etches and John Lewis Lancaster
ceased to act as joint and several liquidators of C.T. Nominees
Ltd.
The former Liquidators can be reached at:
Nicholas Peter Etches
John Lewis Lancaster
8/F, Prince's Building
10 Chater Road, Central
Hong Kong
CROWN HOLDINGS: Gets Noteholders' Consent to Incur US$200MM Debt
----------------------------------------------------------------
Crown Holdings Inc. completed its consent solicitation and had
executed a supplemental indenture with respect to certain
amendments to the indenture dated Sept. 1, 2004, relating to the
6-1/4% first priority senior secured notes due 2011 of its
subsidiary, Crown European Holdings SA.
The amendments generally conform certain provisions of the
indenture to comparable provisions of the company's senior
secured credit facility.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 30, 2006, the company commenced a solicitation of consents
from holders of 6-1/4% First Priority Senior Secured Notes due
2011 to incur an additional US$200 million of pari passu first
priority indebtedness.
The solicitation also seek consents to proposed amendments that
will allow the company, among others, to make a US$100,000,000
of additional restricted payments of any type.
Philadelphia, Pa.-based Crown Holdings Inc. (NYSE: CCK)
-- http://www.crowncork.com/-- through its affiliated
companies, supplies packaging products to consumer marketing
companies around the world. The company has operations in
China, Argentina, and Eastern Europe.
* * *
Standard & Poor's Ratings Services affirmed its 'BB-' rating and
its '2' recovery rating on Crown Holdings Inc.'s existing US$1.5
billion credit facilities including its US$200 million add-on
senior secured term loan B due 2012.
DAIMLERCHRYSLER: YTD Sales in Latin America Climbs 23%
------------------------------------------------------
DaimlerChrysler AG's Chrysler Group operations outside North
America, November sales gains marked the milestone of 18
consecutive months of year-over-year sales gains; and with one
full month left, year-to-date sales have already surpassed the
total for all of 2005.
This month was the best November sales for Chrysler Group's
International operations in 10 years, and the sale of 18,900
units marked an increase of 17% over the same month last year.
Dodge Caliber sales accounted for much of the growth in November
with 2,867 units sold (15,042 units year-to-date), while top-
selling vehicles, such as Jeep(R) Grand Cherokee and Chrysler
300C, continued to perform well.
"We are confident that we made a sound decision by increasing
the number of vehicles equipped to meet the needs of customers
outside North America," executive director of international
sales and marketing Thomas Hausch said.
"This works hand-in-hand with our long-standing initiative to
continuously improve customer experience, and our dealers'
performance this year has been a major factor in our success."
Chrysler Group's year-to-date sales outside North America
climbed 14% compared with the same time period last year with
186,080 units sold. All three of Chrysler Group's brands
contributed to this gain, with Chrysler brand sales up 6%
(82,142 units), Jeep brand up 1% (77,220 units) and Dodge brand
up 176% (26,718 units).
"All three brands working together to reach customers with very
diverse needs [are] responsible for boosting sales. However,
despite the significant gains we've made in some of our key
markets, the competition is intense, and we must continue to
work hard to maintain sales growth," Mr. Hausch said.
Western and Central European sales, which account for the
largest part of Chrysler Group's sales outside North America,
have reached 100,583 units, a 20% increase over the region's
2005 sales through November. The top-three markets, Italy, U.K,
and Germany respectively, are all in Western Europe and
continued to experience double-digit sales improvement.
Growth in Latin America has been another driving force in the
sales increases, with year-to-date sales climbing 23% (33,202
units) so far in 2006. Venezuela, the highest-volume market for
Chrysler Group in Latin America, ranks as the company's number
four market outside North America, and has seen 33% growth so
far in 2006.
For the year, the Jeep Grand Cherokee led product sales with
35,558 units sold year-to-date. It was closely followed by the
Chrysler Voyager (32,616 units) and the Jeep Cherokee (24,733
units). The significant sales growth for the Chrysler 300C, 130
percent year-to-date, has landed the vehicle in the number four
position with 23,283 units sold outside North America.
"We anticipate continued positive results as more new products
reach dealerships in the local markets. By the end of this
year, we are confident that a double-digit increase in
performance is a lofty, yet attainable goal," Mr. Hausch said.
"It means, however, that we cannot let up, and must remain
dedicated to the business and needs of customers outside North
America."
Chrysler Group sells and services vehicles in more than 125
countries around the world, and Chrysler Group sales outside
North America currently account for approximately eight percent
of the company's total global sales. Vehicles available range
across all three Chrysler Group brands, with limited
availability on some trucks and SUV models. The company's
operations outside North America have been experiencing year-
over-year sales increases since 2004, and will continue to
increase the number of product offerings, powertrain options and
RHD availability through 2007.
In Latin America, DaimlerChrysler has operations in Argentina,
Brazil, and Venezuela.
About DaimlerChrysler AG
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, Australia, Indonesia,
Japan, Korea, Malaysia, and Thailand.
* * *
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.
DANA CORP: Plans to Close Four Plants in Next Two Years
-------------------------------------------------------
Dana Corp. disclosed four of eight facilities it plans to close
during the next two years. The actions will consolidate
production and are designed to balance capacity and take
advantage of lower-cost manufacturing locations. Dana disclosed
preliminary plans to close eight facilities last month.
The four facilities announced for closure are Dana's two
traction product facilities in Syracuse, Ind., and Cape
Girardeau, Mo.; and the company's structural solutions plants in
Guelph and Thorold, Ontario, Canada.
-- The Syracuse plant employs approximately 65 people and
manufactures axle components. The facility is expected to
close by Sept. 30, 2007.
-- The Cape Girardeau plant employs approximately 200 people
manufacturing axle components. The facility is expected
to close by June 30, 2008.
-- The Guelph operation employs approximately 25 people
manufacturing front and rear frame structures. The plant
is expected to close by Feb. 28, 2007.
-- The Thorold structures facility employs approximately 150
people manufacturing stampings. The plant is expected to
close by June 30, 2007.
Production from the Syracuse and Cape Girardeau facilities will
be moved to Dana operations in Mexico. Closure of the Guelph
plant coincides with the end of a customer program that
comprised all production volume at the facility. The majority
of the production at the Thorold operation will be moved to
Dana's Elizabethtown, Ky., structures plant.
Dana Chairman and CEO Mike Burns said, "The decision to close
any facility is extremely difficult and regrettable. But to
become competitive and emerge from Chapter 11 as a viable
company, it is absolutely critical that we further consolidate
work across our facilities to reduce overcapacity and high
operating costs."
Mr. Burns said that four additional facility closures are
expected to be finalized in 2007.
Dana expects to incur charges of approximately US$26 million
before tax during the fourth quarter of 2006 and additional
aggregate charges of approximately US$19 million in 2007-2009
for total charges of US$45 million before tax, in connection
with the plant closures announced today.
About Dana Corp.
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually. Dana has facilities in China, Argentina and
Italy.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors' exclusive period to file a plan expires on Jan. 3,
2007. They have until Mar. 5, 2007, to solicit acceptances to
that plan.
(Dana Corporation Bankruptcy News, Issue No. 27; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
Following Dana Corporation's announcement that it has filed for
Chapter 11 bankruptcy court protection and defaulted on its debt
agreements, Fitch downgraded Dana's issuer default rating to 'D'
from 'C'.
Fitch also affirmed and removed from Rating Watch Negative the
'CC' rating and 'RR4' recovery rating on Dana's unsecured notes.
These ratings will be withdrawn in 30 days. The 'B-' rating on
the pre-petition senior secured facility and the recovery rating
of 'RR1' are being withdrawn, as the facility is expected to
achieve full recovery through the establishment of US$1.45
billion in debtor-in-possession facilities.
Moody's Investors Service assigned B3 ratings to the US$1.45
billion debtor-in-possession financing of Dana Corporation as a
Debtor-in-Possession. The DIP financing consists of a US$750
million super priority senior secured asset based revolving
credit and a US$700 million super priority senior secured term
loan B.
E-CHANCE LTD: Names Chiu Tin Lap Jack as Liquidator
---------------------------------------------------
At an extraordinary general meeting held on Dec. 7, 2006, the
members of E-Chance Ltd appointed Chiu Tin Lap Jack as
liquidator by virtue of a special resolution.
The Liquidator can be reached at:
Chiu Tin Lap, Jack
Flat 5, 8/F
Fontana Gardens, Ka Ning Path
Causeway Bay
Hong Kong
EMI GROUP: Inks Video-on-Demand Deal with Yahoo! Music
------------------------------------------------------
EMI Music, a unit of EMI Group Plc, has signed a pan-European
agreement with Yahoo! Music to enable consumers of the online
service to watch videos from EMI's digital catalogue.
Yahoo! Music will now offer European music fans free access to
videos from EMI Music artists including Lily Allen, Corinne
Bailey Rae, Coldplay, Gorillaz, Janet Jackson, Norah Jones, KT
Tunstall and Robbie Williams, as well as Bebe (Spain), Tiziano
Ferro (Italy), LaFee (Germany) and Diam's (France).
The Yahoo! Music portal allows consumers to select videos by
their favorite artists and stream them free of charge on their
PC. The service is supported by targeted advertising.
The service also enables music fans to create their own
personalized "My Video" list, which tracks recently played
videos and lists videos that have been rated by the fan. They
can also discover videos by brand new artists through expert
recommendations.
"As the digital music market grows, we must continue to look for
new ways to offer consumers the opportunity to enjoy our
artists' content," Jean-Francois Cecillon, chairman and CEO of
EMI Music Continental Europe, said. "Thanks to services such as
Yahoo! Music, video-on-demand is becoming a valuable new channel
that enables us to connect fans with the music they love."
"It's important to maximize the value of our artists' music in
this rapidly changing market and the recent growth of
advertising spending on line is just one of the many ways in
which we seek to do this," said Tony Wadsworth, chairman and CEO
of EMI Music U.K. and Ireland.
"We are extremely excited to add videos from EMI Music to the
web's largest collection of music videos," said Shannon
Ferguson, Managing Director of Yahoo! Music Europe. "Yahoo! is
committed to giving consumers a compelling and comprehensive
music experience, and the addition of EMI Music classic and new
release videos, from both international and European artists, is
critical to providing depth of choice for fans."
About EMI
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.
The Troubled Company Reporter - Asia Pacific reported on
November 27, 2006, that Moody's Investors Service downgraded EMI
Group plc's senior debt and guaranteed debt ratings to Ba2 from
Ba1. At the same time Moody's assigned a Ba2 Corporate Family
Rating to EMI. The downgrade is based on Moody's expectation
that EMI's debt protection measurements will not improve near-
term to a level commensurate with the Ba1 rating category. The
rating outlook is now stable.
JOINT BRIGHT: Appoints Leung Chi Wing as Liquidator
---------------------------------------------------
On Dec. 5, 2006, Joint Bright (Asia) Ltd passed a special
resolution to appoint Leung Chi Wing as liquidator.
Mr. Leung's appointment was confirmed at the creditors' meeting
held subsequently that 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
PACIFIC ACE: Court to Hear Wind-Up Petition on February 7
---------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Pacific Ace Trading Hong Kong Ltd on Feb. 7, 2007,
at 9:30 a.m.
Tectura Hong Kong Ltd -- formerly known as Enterprise Solutions
Group (HK) Ltd -- filed the petition with the Court on Dec. 1,
2006.
The solicitors for the Petitioner can be reached at:
Tung, Ng, Tse & Heung
Units 05-06, 25/F
Vicwood Plaza
199 Des Voeux Road, Central
Hong Kong
SANTEI INTERNATIONAL: Creditors' Proofs of Debt Due on Jan. 5
-------------------------------------------------------------
Creditors of Santei International (Hong Kong) Ltd are required
to submit their proofs of debt to Liquidators Ying Hing Chiu and
Chung Miu Yin Diana, by Jan. 5, 2007.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the company will make.
The Joint Liquidators can be reached at:
Ying Hing Chiu
Chung Miu Yin, Diana
Level 28
Three Pacific Place
1 Queen's Road East
Hong Kong
STANDARD CHARTERED (H.K.): Moody's Upgrades BFSR to C+
------------------------------------------------------
On December 15, 2006, Moody's Investors Service upgraded
Standard Chartered Bank (Hong Kong) Limited's bank financial
strength rating to C+ from C. No debt or deposit ratings have
been affected.
The other ratings are not affected:
-- Senior Unsecured MTN (Foreign) A2
-- LT Bank Deposits (Foreign) A2
-- LT Bank Deposits (Local) A2
-- LT Issuer Rating (Foreign) A2
-- Subordinate (Foreign) A3
-- Subordinate (Domestic) A3
-- Subordinate MTN (Foreign) A3
-- Junior Subordinate MTN (Foreign) A3
-- ST Bank Deposits (Foreign) P-1
-- ST Bank Deposits (Local) P-1
The outlook for all ratings is stable.
"The upgrade mainly reflects SCBHK's solid franchise in Hong
Kong, the improvement in its financials and its strong capital
base," says Leo Wah, a Moody's Assistant Vice President/Analyst.
SCBHK started operations on July 1, 2004. The bank was formed
through the consolidation of the Hong Kong branch of Standard
Chartered Bank, Manhattan Card Company Ltd, Standard Chartered
Finance Ltd and Chartered Capital Corporation Ltd.
The consolidation has been successful and has strengthened its
franchise in Hong Kong, especially in the areas of credit cards,
mortgages and other consumer lending. It is now the fourth
largest bank in Hong Kong with a market share of 7% in terms of
loans.
SCBHK's performance has improved since the consolidation in
2004, particularly with regard to its financials. The bank's
risk-adjusted pre-provision profit ratio was 3.62% in 2005 and
4.12% in 1H2006, placing it at the high-end of the range for the
banks in Hong Kong.
It is also encouraging to note that the improvement in SCBHK's
financials has been largely across the board, with higher net
interest margins, steadily growing non-interest income, a
contained cost base and a lower impaired loan ratio.
Thanks to its strong internal capital generation ability,
SCBHK's capital base is strong with a capital adequacy ratio
("CAR") of 16%, of which 90% is in Tier-1 capital. However, as
a key earnings contributor of its parent SCB (22% of total),
SCBHK may be called upon to upstream capital to support group
operations if needed. Nevertheless, Moody's does not expect CAR
to fall to a level, which would undermine the C+ rating.
"Despite the upgrade of SCBHK's rating, SCBHK's long-term debt
nor its deposit ratings have been affected. This is because its
existing A2 senior debt and deposit ratings are already at a
level usually associated with a "C+" rating," adds Wah.
Standard Chartered Bank (Hong Kong) Limited, headquartered in
Hong Kong SAR, is a wholly owned subsidiary of UK-based Standard
Chartered PLC. The bank had consolidated total assets of HK$365
billion (US$47 billion) as of June 30, 2006.
SUMIDEN TRADING: Undergoes Voluntary Liquidation
------------------------------------------------
On Dec. 4, 2006, the members of Sumiden Trading (Hong Kong)
Company Ltd passed a special resolution to voluntarily liquidate
the company's business.
Accordingly, Thomas Andrew Corkhill and Iain Ferguson Bruce were
appointed as joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8/F, Gloucester Tower
The Landmark
15 Queen's Road, Central
Hong Kong
TELLINK LTD: Will Receive Proofs of Claim Until December 29
-----------------------------------------------------------
Liquidators Cosimo Borrelli and Kelvin Edward Flynn are
receiving proofs of claim from the creditors of Tellink Ltd
until Dec. 29, 2006.
As reported by the TCR-AP, Mr. Borrelli and Mr. Flynn were
appointed as the company's liquidators on Jan. 3, 2006.
The Liquidators can be reached at:
Cosimo Borrelli
Kelvin Edward Flynn
1401, Level 14 Tower 1
Admiralty Centre
18 Harcourt Road
Hong Kong
THE GRAND H.K.: Members Decide to Close Operations
--------------------------------------------------
At an extraordinary general meeting held on Dec. 8, 2006, the
members of The Grand Hong Kong Development Ltd passed a special
resolution to voluntarily wind up the company's operations.
In this regard, Ha Yue Fuen Henry was appointed as liquidator
and was authorized to divide the company's assets.
The Liquidator can be reached at:
Ha Yue Fuen, Henry
Room 1010, 10/F
Wing On Centre
111 Connaught Road, Central
Hong Kong
WHOLE WIDER: Members to Receive Wind-Up Report on Jan. 16
---------------------------------------------------------
The members of Whole Wider Ltd will meet on Jan. 16, 2007, at
10:00 a.m., to receive the liquidators' account of the company's
wind-up proceedings.
The joint and several liquidators can be reached at:
Chan Chi Bor
Li Fat Chung
Unit 1202, 12/F
Malaysia Building
No. 50, Gloucester Road, Wanchai
Hong Kong
About Whole Wider
Whole Wider Ltd manages real estate agents and managers.
The company is located in Central District, Hong Kong.
=======================
C O O K I S L A N D S
=======================
* S&P Affirms Cook Islands' BB-/B Sovereign Ratings
---------------------------------------------------
On December 18, 2006, Standard & Poor's Ratings Services
affirmed its 'BB-' long-term and 'B' short-term sovereign credit
ratings on the Cook Islands. This action follows the passage by
the Cook Islands' parliament of the 2006-2007 budget on Dec. 14.
The outlook on the ratings remains positive.
"The ratings and positive outlook are based on the ongoing
strengthening of the Cook Islands' fiscal position and its low
debt, with the expectation that underlying sound fiscal policies
will be sustained in the future," said Standard & Poor's credit
analyst Kyran Curry of the Sovereign Ratings group.
"Further supporting the ratings is the Cook Islands' close
political and economic relationship with New Zealand, which adds
to monetary and external financial stability, and the Cook
Islands relatively high income level."
The ratings on the Cook Islands remain constrained by the
vulnerabilities inherent in a small, narrowly based, island
economy. The Cook Islands' main industry, tourism, is exposed
to several risks including climatic events, global terrorism
which can adversely affect global tourist flows, air links, and
the changing tastes and preferences of tourists. There also
remains the potential risk of a reversal in government finances
stemming from a political culture that needs strong
administrative oversight.
"A ratings upgrade would require continued strengthening in the
government's fiscal position, a commitment to uphold past
reforms, strengthening of institutional and political stability,
and an improvement in economic sustainability," said Mr. Curry.
=========
I N D I A
=========
AES CORP: Receives US$120 Million Payment from Dominican Govt.
--------------------------------------------------------------
Radhames Seguro, the secretary of state and vice president of
the Dominican Corp. of States Electricity Cos., told Prensa
Latina that the Government of the Dominican Republic has paid
out US$120 million to AES Corp.
Prensa Latina relates that the Government said that from 2001 up
to the present, it has paid out millions of dollars to plants
for power it never received.
A US$148-million payment was also made for Smith Enron Co., and
there was no electricity supply in five years, Prensa Latina
notes. The amount almost covered the Government's
US$156 million initial investment.
According to Prensa Latina, the Government also spent
US$185.65 million on Cogentrix, which was 70.6% of its original
contribution.
Contracts with power distributing and generating plants,
including Palamara-La Vega, Dominican Powers Partners and AES
Andres may be terminated, Mr. Segura told Prensa Latina.
The administration of former President Hipolito Mejia signed the
contracts for a generating capacity of 3,340 megabytes, and
extended the validity until 2016, with an inflated value, Prensa
Latina reports, citing Mr. Segura.
About AES Corp.
AES Corporation -- http://www.aes.com/-- is a global power
company. The company operates in South America, Europe, Africa,
Asia and the Caribbean countries. Generating 44,000 megawatts
of electricity through 124 power facilities, the company
delivers electricity through 15 distribution companies.
The company has presence in India, China and Sri Lanka.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology. Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.
DUERR AG: Expands Asian Business with EUR57 Million Hyundai Deal
----------------------------------------------------------------
The Duerr Group has received an order worth EUR57 million from
South Korean automaker Hyundai Motors for the design and
construction of a paint shop in Beijing.
Already in November, an Indian vehicle manufacturer also ordered
a new paint shop for EUR27 million. Against this background
Duerr expects to show an increase of incoming orders from Asia
by almost 70% to about EUR400 million in 2006.
In terms of consolidated sales of about EUR1.4 billion, Asia
thus already accounts for 30% of total business. Experts expect
strong growth of automobile production in Asia also in the
future. Growth of about 70% is expected for China in the next
five years, and of almost 60% for India. In view of this, Duerr
expects a good business trend in Asia again in the coming year.
"Besides the large, established automobile manufacturers," says
Duerr AG CEO Ralf Dieter, "new, expanding automobile
manufacturers from the growth markets themselves will play an
increasingly important role. We can profit from this additional
demand through our direct presence on the local markets."
Duerr will execute the order from Hyundai in Beijing together
with Rotem, a plant engineering company belonging to the Hyundai
group. Duerr will take the lead in technical aspects, be
responsible for the entire design, and supply extensive parts of
the plant technology. Assembly of the new paint systems will
begin in April of next year, and Hyundai intends to start
production already at the end of 2007. The project in Beijing
is already the third large order that Duerr has received from
Hyundai or its subsidiary Kia this year. Before, the South
Korean group ordered paint shops for its plants in Yancheng,
China, (June) and Chennai, India (January). In China, Duerr is
currently executing further large paint shop projects for joint
venture Dongfeng Peugeot Citro?n and for a Chinese automaker.
The EUR27-million project in India is a paint shop for trucks.
The customer intends to start production in the new facility in
May 2008; the trucks will be sold mainly on the domestic market.
Besides paint systems, the Group's largest line of business, the
other parts of the Duerr Group are also registering growing
demand from Asia. In the balancing and diagnostics systems
business unit, for example, Asia probably accounted for 38% of
new orders in 2006. That reflects not least the strong demand
for balancing systems from the growing power plant sector.
The Duerr Group is one of the world's leading suppliers of
products, systems, and services for automobile manufacturing.
Its range embraces important stages in the vehicle production
process. As a systems supplier, Duerr designs and builds paint
shops and final assembly plants. Duerr also supplies cleaning
and filtration equipment used in the production of engine and
transmission components as well as balancing and diagnostic
systems for vehicle components. Business with automobile
manufacturers and their suppliers accounts for about 90% of
consolidated sales. Other important customer groups are the
mechanical engineering sector and the chemical, pharmaceutical,
coating, and aviation industries.
About Duerr
Headquartered in Stuttgart, Germany, Duerr AG --
http://www.durr.com/en-- supplies products, systems, and
services for automobile manufacturing. Its range of products
and services covers important stages of vehicle production. As
a systems supplier, Duerr plans and builds complete paint shops
and final assembly facilities. It also delivers cleaning and
filtration systems for the manufacture of engine and
transmission components as well as balancing systems.
The company has operations in Brazil, China and India.
* * *
In Sept. 2006, Moody's Investors Service affirmed the B2
corporate family rating of Duerr AG and the Caa1 rating on the
senior subordinated notes. Moody's said the Outlook on the
ratings remains negative.
Duerr AG's 9-3/4% senior subordinated notes due 2011 carry
Moody's Investors Service's Caa1 rating and Standard & Poor's
CCC+ rating.
ESSAR OIL: Ruias Increase Stake by Global Depository Shares
-----------------------------------------------------------
The Ruias of Essar Energy Holdings Ltd. have marginally raised
their stake in Essar Oil Ltd. through subscription of global
depository shares by the promoter group's controlled entities,
The Telegraph reports.
Pursuant to a filing with the Bombay Stock Exchange, Essar Oil
disclosed that Essar Energy Holdings, along with 16 Persons
Acting in Concert, subscribed to 365,708 global depository
shares representing 55,953,324 of the oil company's equity
shares.
The PACs are:
1. Essar Investments Ltd
2. Teletech Investments (India) Ltd
3. Reclme Commercials & Services Pvt Ltd
4. Essar Steel Ltd
5. Essar Shipping Ltd
6. Asia Pacific Far East Ltd
7. Asia Pacific Corporation Ltd
8. Asia Pacific Enterprises Ltd
9. Asia Pacific Markets Ltd
10. ETHL Global Capital Ltd
11. Hazira Steel 2
12. Vadinar Oil
13. Essar Steel Holding Ltd
14. Essar Logistics Holding Ltd
15. Essar Infrastructure Holdings Ltd
16. Essar Global Ltd
With the subscription, Essar Energy Holding increases its stake
in Essar Oil from 4.28% to 8.98%, the BSE filing reveals.
Officials from the Essar group told The Telegraph that the
subscription to GDS is part of a corporate debt-restructuring
program.
According to the news agency, there is now speculation that the
Ruias may move to delist Essar Oil over the next few months.
About Essar Oil Ltd.
Headquartered in Jamnagar, India, Essar Oil Limited --
http://www.essar.com/-- is engaged in the exploration,
production and marketing of oil and gas. The company's
principal activities are developing, exploring, producing and
refining oil and gas. Vadinar Power Company Limited is a wholly
owned subsidiary of the company.
On August 23, 2005, CRISIL Ratings reaffirmed the outstanding
"D" rating on the INR5.65-billion and INR2-billion Non-
Convertible Debenture programmes of Essar Oil Limited. The
rating indicates that the instruments are in default.
GENERAL MOTORS: S&P Affirms B Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006.
The outlook is negative.
At Sept. 30, 2006, GM's automotive balance sheet debt
outstanding totaled US$32.8 billion.
The affirmation reflects our view that the comprehensive costs
of a consensual, rather than court-imposed, resolution of GM's
operational and financial exposure to bankrupt former unit
Delphi Corp. is well within the scope of GM's liquidity,
particularly in light of its recent sale of a 51% stake in GMAC
LLC (formerly General Motors Acceptance Corp.). Still, progress
toward a resolution concerning Delphi remains lengthy and
complex, involving negotiations among many disparate parties,
and no specific outcome is assured.
The affirmation does not incorporate the consequences of an
outright collapse in talks or a Delphi strike because Standard &
Poor's currently think these scenarios are unlikely. If GM were
to experience severe Delphi-related operational disruptions, or
if GM's payments to resolve Delphi's restructuring were much
greater than Standard & Poor's expects, it would likely review
the ratings on GM.
Because of the GMAC sale, Standard & Poor's expects GM to end
2006 with a cash and short-term VEBA balance in excess of the
level at Sept. 30, 2006, about US$20.4 billion, even after a
substantial fourth-quarter cash burn that resulted in part from
lower North American production. For the first nine months of
2006, GM's automotive operating cash flow was a negative
US$4.2 billion (before cash restructuring costs) versus a
negative US$7.1 billion in the comparable period in 2005.
Fourth-quarter 2006 automotive cash flow will be worse than last
year's slightly positive results in the same quarter because of
a 13% decline in production from 2005.
GM still faces daunting near-term and long-term competitive and
structural challenges in its North American automotive
operations.
"We are still concerned about GM's ability to generate adequate
profitability and cash flow in this key region for the
foreseeable future," said Standard & Poor's credit analyst
Robert Schulz, "even if cash use in North America is declining
from last year's levels." Although the company has demonstrated
progress in reducing its cost base and remains in a solid part
of its product launch cycle, the rating agency still considers
prospects for a sustainable recovery to be fragile and
vulnerable to a host of challenges in 2007, including consumer
demand and preferences, raw material costs, and the outcome of
the fall 2007 labor negotiations. It would not take a very
sharp downturn in the North American market or particularly
significant underperformance to reverse any progress the company
has made in reducing its cash burn.
GM's ratings reflect primarily the lack of intermediate-term
visibility for the company's North American automotive
operations, given the magnitude of recent losses, negative cash
flow generation, and the need to continue implementing its
massive cost-cutting program. GM has been hampered by
persistent market share erosion and adverse product mix trends
in the U.S., most notably a precipitous weakening of sales of
midsize and large SUVs -- products that had been highly
disproportionate contributors to GM's earnings. GM is
undertaking yet another significant round of cost reductions to
address these challenges, but sustainable improvements in North
America will also require success with product acceptance and
pricing, in addition to cost reductions. Some, but not all, new
products launched in 2006 are selling well. Consumer acceptance
of GM's new full-size pickup truck product line and other
launches will remain crucial determinants of results into 2007.
GM has significantly improved its pension funding position in
recent years, but the unfunded retiree medical liability remains
onerous, even after significant negotiated reductions. The
liability totaled approximately US$64 billion at year-end 2005,
excluding from offsetting plan assets readily available assets
of the VEBA trust. This deficit will decline after GM reduces
the liability by US$19.9 billion as a result of benefit
reductions for hourly and salaried employees, the effect of
employee buyouts, and a higher discount rate. These factors
will be partly offset by US$4 billion in VEBA withdrawals made
during 2006.
The rating outlook on GM is negative. Prospects for GM's
automotive operations remain clouded. The ratings could be
lowered further if Standard & Poor's came to expect that GM's
substantial cash outflow would fail to continue to moderate due
to setbacks, whether GM-specific or stemming from market
conditions. GM would need to reverse its current financial and
operational trends, and sustain such a reversal, before the
rating agency would revise its outlook to stable.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.
GENERAL MOTORS: Expects US$1 Million of Truck Sales in 2007
-----------------------------------------------------------
General Motors Corp. anticipates selling more than US$1 million
pickup trucks in the North America market next year, Reuter
reports.
According to the source, analysts predict that unstable gasoline
prices and slow housing would strike pickup sales in 2007. In
addition, GM's competitors Ford Motor Co. and DaimlerChrysler
AG's Chrysler Group, are offering heavy discounting and big
incentives on their older models.
GM product chief Bob Lutz told Reuters that the level of pickups
discounting is new territory and said that incentives of
US$7,000 to US$8,000 per vehicle are not sustainable. Mr. Lutz
remains confident that GM will able to sell its vehicles at a
very good profit.
Reuters discloses that GM launched the Chevrolet Silverado and
the GMC Sierra in November. Mr. Lutz expects the two models,
which boast industry-leading fuel saving features, to sell at a
good price for a few months. The company offered cash rebates
of US$4,000 on its 2006 Silverados and Sierras.
Reuters relates that the company plans to recover from a US$10.6
billion loss in 2005 by job layoffs and plants shutdown.
Improving new products and pickup trucks sales are another step
at recovery, Reuter adds.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan. The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.
ICICI BANK: CRISIL Assigns Opinion to Receivables Program
---------------------------------------------------------
Credit Rating Information Services of India Ltd. assigned
provisional credit opinions to ICICI Bank's assignment of
receivables program:
Issue Size Tenure
Details (mil.) (mos.) Credit Opinion
------- ---------- ------ --------------
Acquirer's share INR2,877.2 54 Credit Quality
equivalent to a rating
of AAA (so)
Deferred Purchase Credit Quality
Consideration 62.6 44 equivalent to a rating
of AAA (so)
Second Loss Facility 77.6 54 Credit Quality
equivalent to a rating
of BBB (so)
Liquidity Facility 18.4 54 Credit Quality
equivalent to a rating
of AAA (so)
The credit opinions are based on the credit quality of the pool
cash flows, ICICI Bank's origination and servicing capabilities,
the available enhancements, and the soundness of the legal
structure.
The transaction involves assigning of receivables to the
acquirer in exchange for initial and deferred purchase
consideration. The enhancements are segregated into liquidity
facility and credit collateral. The liquidity facility will be
used to fund short-term collection shortfalls and the credit
collateral will be used to fund shortfalls that are probable
losses. As the liquidity facility has a priority in payment
over the acquirer, CRISIL has assigned a credit opinion
equivalent to a rating of AAA (so) to the liquidity facility
also. The first loss facility enhances the pool profile to a
credit quality of BBB (so) and second loss facility enhances it
further to AAA (so). Hence, CRISIL has assigned a credit
opinion equivalent to a rating of BBB (so) to the second loss
facility.
In the past, CRISIL has rated twenty-seven pools of ICICI Bank,
backed by car loan receivables. The performance of these pools
has been good, with limited use of stipulated enhancements.
ICICI Bank is a market leader in new car financing, with an
outstanding loan book of INR235 billion as on July 31, 2006.
Its robust underwriting standards and adequate collection
infrastructure support the vigorous growth in its portfolio size
and help the bank to maintain low loss levels that are amongst
the best in the industry.
The credit opinion is provisional and will become valid once the
legal documentation pertaining to the transaction is duly
executed to the satisfaction of CRISIL. CRISIL will thereafter
issue a compliance letter.
About ICICI Bank
Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance. It also has
interests in the software development, software services and
business process outsourcing businesses. The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others. It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
* * *
Fitch Ratings gave ICICI a 'C' Individual Rating.
On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On
Oct. 16, S&P assigned its 'BB+' issue rating to its senior
unsecured, five-year, fixed-rate U.S. dollar notes.
INDIAN OIL: Seeks to Acquire 12.5% Stake in TAPCO
-------------------------------------------------
Indian Oil Corporation Ltd. seeks to participate in the Samsun-
Ceyhan crude oil pipeline project by acquiring 12.5% of the
shares of the Trans-Anatolian Pipeline Company. TAPCO is
currently owned by Eni S.p.A. (of Italy) and alik Enerji A.S.
(of Turkey) on a 50-50 basis.
Indian Oil Chairman Sarthak Behuria remarked, "Indian Oil feels
that its participation in this international project will boost
the company's growth beyond its domestic borders and aid in
realization of its vision of becoming a transnational,
integrated energy company." The entire deal package has been
agreed in principle and will be submitted soon for the requisite
corporate approvals of the respective companies.
The development of the project is already under way. Indian
Oil's participation in the Eni/alik Joint Venture will
consolidate this partnership and contribute to the successful
completion of this strategic project, which aims at by-passing
the Turkish Straits. Upon completion, the Samsun-Ceyhan crude
oil pipeline will ensure expeditious, safe and economical export
of crude oil from the Black Sea to the Mediterranean Sea in an
environment friendly manner, thus reducing congestion of tanker
traffic in the Bosphorus and Dardanelles Straits. A large
quantity of additional crude oil is expected to reach the Black
Sea from Central Asia in the next few years.
About Indian Oil Corporation
Headquartered in New Delhi, Indian Oil Corporation Limited --
http://www.iocl.com/-- is engaged in the sale of petroleum
products. Other businesses comprise the sale of imported crude
oil, sale of gas, petrochemicals and oil and gas exploration
activities jointly undertaken in the form of unincorporated
joint ventures. The company's premium fuels include XTRAPREMIUM
petrol and XTRAMILE diesel. AutoGas is Indian Oil's auto liquid
petroleum gas brand and sells SERVO lubricants in 10 countries.
The aviation fuel supply business caters to the aviation fuel
requirements of the defense services, national carriers,
scheduled private airlines and international airlines. The
Digboi Refinery of the Assam Oil Division processes crude oil
and its marketing network comprises 366 retail outlets, 399
kerosene/light diesel oil dealerships, and 271 Indane
distributors. It owns and operates 18 refineries with a
combined refining capacity of 54.20 million tones per annum (1.1
million barrels per day).
* * *
The Troubled Company Reporter - Asia Pacific reported on
April 21, 2006, that Standard & Poor's Ratings Services revised
the outlook on Indian Oil to positive from stable. At the same
time, S&P affirmed the 'BB+' issuer credit rating on the
Company. The outlook revision follows the revision in the
outlook on the sovereign credit ratings on India
(BB+/Positive/B) on April 19, 2006.
Additionally, Moody's Investors Service gave Indian Oil a Ba1
long-term corporate family rating and a Ba2 issuer rating on
March 3, 2005.
INDIAN OIL: To Offer Oil Recovery Services with Balmer Lawrie
-------------------------------------------------------------
Indian Oil Corporation Ltd. and Balmer Lawrie & Co. Ltd. entered
into a non-exclusive Memorandum of Collaboration agreement to
jointly offer services of tank cleaning, oil recovery and bio-
remediation of recovered sludge to oil corporates in India.
As per the agreement, Indian Oil's R&D Centre will be
responsible for bio-remediation in terms of technical
assessment, support and implementation, while Balmer Lawrie will
be the sole agency responsible for operating the contract and
carrying out activities for specific projects.
For disposal of oily sludge through the bio-remediation process,
Indian Oil will deploy its unique 'Oilivorous S' technology,
which it has developed in association with TERI. Indian Oil has
extensive expertise in disposal of oily sludge through bio-
remediation. Balmer Lawrie, a premier multi-faceted PSU, is the
licensee of internationally accepted BLABO technology of M/s.
Oreco A/s, Denmark, for tank bottom sludge recovery and tank
cleaning, and holds considerable experience in the area.
This technology alliance will leverage the strengths of Indian
Oil and Balmer Lawrie and offer integrated services in the area
of tank cleaning, oil recovery and bio-remediation of recovered
sludge with distinct advantages to clients in terms of improved
oil recovery, time saving, eco-friendliness and enhanced safety.
About Indian Oil Corporation
Headquartered in New Delhi, Indian Oil Corporation Limited --
http://www.iocl.com/-- is engaged in the sale of petroleum
products. Other businesses comprise the sale of imported crude
oil, sale of gas, petrochemicals and oil and gas exploration
activities jointly undertaken in the form of unincorporated
joint ventures. The company's premium fuels include XTRAPREMIUM
petrol and XTRAMILE diesel. AutoGas is Indian Oil's auto liquid
petroleum gas brand and sells SERVO lubricants in 10 countries.
The aviation fuel supply business caters to the aviation fuel
requirements of the defense services, national carriers,
scheduled private airlines and international airlines. The
Digboi Refinery of the Assam Oil Division processes crude oil
and its marketing network comprises 366 retail outlets, 399
kerosene/light diesel oil dealerships, and 271 Indane
distributors. It owns and operates 18 refineries with a
combined refining capacity of 54.20 million tones per annum (1.1
million barrels per day).
* * *
The Troubled Company Reporter - Asia Pacific reported on
April 21, 2006, that Standard & Poor's Ratings Services revised
the outlook on Indian Oil to positive from stable. At the same
time, S&P affirmed the 'BB+' issuer credit rating on the
Company. The outlook revision follows the revision in the
outlook on the sovereign credit ratings on India
(BB+/Positive/B) on April 19, 2006.
Additionally, Moody's Investors Service gave Indian Oil a Ba1
long-term corporate family rating and a Ba2 issuer rating on
March 3, 2005.
JK PHARMACHEM: CRISIL Reaffirms 'D' Rating on INR440MM Debenture
----------------------------------------------------------------
On Dec. 9, 2006, Credit Rating Information Services of India Ltd
reaffirmed the 'D' rating of J.K. Pharmachem Ltd.'s
INR440.1-million Non Convertible Debenture.
The outstanding 'D' rating on the partially convertible
debenture program of J.K. Pharmachem indicates that the
instrument is in default and is as in arrears of interest or
principal payments, CRISIL says.
Based in Cuddalore, India, J.K. Pharmachem Ltd is involved in
the manufacture and sale of drugs and pharmaceuticals. The
company is second largest producer of Penicillin G in the
country. Its installed capacity for Penicillin G is at 1250
MMU.
KDL BIOTECH: CRISIL Reaffirms D Rating on INR67MM Debenture
-----------------------------------------------------------
Credit Rating Information Services of India Ltd., on Dec. 9,
2006, reaffirmed its 'D' rating on KDL Biotech Ltd.'s
INR6.7-million Non Convertible Debenture Issue.
According to CRISIL, the outstanding 'D' rating on the Non
Convertible Debenture Program indicates that the instrument is
in default and in arrears of interest or principal payments.
The company is in the process of restructuring its outstanding
rated instrument, the rating agency notes.
Headquartered in Maharashtra, India, KDL Biotech Ltd. --
http://www.kdlbiotech.com/-- manufactures biotechnology-based
products. The Group specializes in Semi-synthetic Penicillin
and related Enzymes. KDL Biotech has a joint venture with
Synpac Pharmaceuticals to develop Penicillin-related products.
SAURASHTRA CEMENT: Debenture Rating Not Meaningful, CRISIL Says
---------------------------------------------------------------
Credit Rating Information Services of India Ltd changed the
outstanding rating of the INR477.6-million Non Convertible
Debenture Issue of Saurashtra Cement Ltd. from 'D' to 'Not
Meaningful' on Dec. 9, 2006.
The revision followed Saurashtra Cement's registration by the
Board of Industrial and Financial Reconstruction as a Sick
Industrial Company pursuant to the SIC (SP) Act, 1985.
About Saurashtra Cement
The flagship company of The Mehta Group, Saurashtra Cement Ltd.
-- http://www.mehtagroup.com/scement.htm-- manufactures and
exports cement including Ordinary Portland Cement, Pozzolana
Portland Cement, Sulphate Resistant Cement and Portland Slag
Cement. SCL markets cement under the brand name "HATHI CEMENT".
The company also exports clinker.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Commences Consent Solicitation for Convertible
--------------------------------------------------------------
Alcatel-Lucent commenced a solicitation of consents from holders
of record as of December 14, 2006, of Lucent's 2.75% Series A
Convertible Senior Debentures due 2023 and 2.75% Series B
Convertible Senior Debentures due 2025 to amend the Indenture
for the Debentures. The amendment would allow Alcatel-Lucent to
provide the holders of the Debentures such information,
documents and other reports that are required to be filed by the
company pursuant to sections 13 and 15(d) of the United States
Securities Exchange Act of 1934, instead of having to produce
separate information, documents and reports for Lucent.
Under the terms of the consent solicitation, if Alcatel-Lucent
receives the required consents, the company will:
1) issue a full and unconditional subordinated guaranty of
the Debentures;
2) increase the interest payable on the principal amount of
the Debentures by 12.5 basis points per year;
3) provide a one-time upward adjustment to the conversion
rate to 59.7015 ADSs for each US$1,000 in principal amount
of Series A Debentures and to 65.1465 ADSs for each
US$1,000 principal amount of Series B Debentures; and
4) add a provision to the Indenture that will cause an upward
adjustment to the conversion rate upon cash dividends or
distributions on the Alcatel-Lucent ordinary shares in
excess of EUR0.08 per share per year.
The details regarding the terms of the consent solicitation can
be found in the consent solicitation statement/prospectus, dated
December 15, 2006, which supercedes the joint solicitation
statement/prospectus and supplement dated November 14, 2006, and
November 27, 2006, respectively. All holders of the Debentures
who have previously delivered consents must redeliver such
consents.
The consent solicitation will expire at 1:00 p.m. Eastern Time
on December 29, 2006, unless extended. The adoption of the
proposed amendments to the Indenture requires the consent of the
holders of a majority in aggregate principal amount of each
series of Debentures.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
Alcatel-Lucent also has operations in Indonesia.
* * *
As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
ALCATEL-LUCENT: Introduces Mobile TV Service in Asia Pacific
------------------------------------------------------------
Alcatel-Lucent disclosed of the availability of its managed
Mobile Interactive TV service in the Asian Pacific Region.
The solution will allow content and service providers to address
the growing demand for Interactive Mobile TV services by
offering a differentiating user-centric experience to their
customers based on best in class technology. The managed
business model will enable them to introduce the new service
quickly, cost-effectively and at low risk.
Alcatel-Lucent will deploy, host and operate the end-to-end
solution whilst content and service providers will focus on
developing service marketing programs and enhancing user
satisfaction. The service also offers content providers an open
environment for content aggregation to easily create compelling
"interactive made-for-mobile channels".
The service is providing a high quality experience for users
thanks to ergonomic and intuitive navigation interfaces such as
fast channel zapping and can accommodate a diverse range of
handset configurations and network delivery methods such as
those that are 3G circuit switched, packet switched or
broadcasted.
"Mobile TV is a reality and is gaining momentum in Asia. With
more than 80 multimedia services in operation worldwide,
Alcatel-Lucent enjoys a leadership position in the booming
mobile TV market and is ideally positioned to help its customers
deliver a user-centric experience for their subscribers," said
Frederic Rose, Head of Alcatel-Lucent's activities in Asia
Pacific. "The Alcatel-Lucent's managed Mobile Interactive TV
service gives content and service providers a fantastic
opportunity to deliver revenue generating entertainment services
to their customers."
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
Alcatel-Lucent also has operations in Indonesia.
* * *
As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
ALLIANCE ONE: Robert Harrison Replaces Brian Harker as CEO
----------------------------------------------------------
Alliance One International, Inc., has appointed Robert E. "Pete"
Harrison, who is the firm's president and chief operating
officer, as chief executive officer, replacing Brian J. Harker,
effective Jan. 1, 2007.
Alliance One will move forward the implementation of the
succession plan formulated at the time of its merger.
Reflecting the successful completion of the merger integration
process, Mr. Harker will retire as chief executive officer of
the corporation, effective Dec. 31, 2006. Mr. Harker will
continue to serve as Chairman of the Board until the company's
annual meeting in August 2007.
Mr. Harrison has served as president and chief operating officer
of Alliance One International since the merger in May 2005 of
Standard Commercial Corp. and DIMON Incorporated. Previously,
he was president and chief executive officer of Standard
Commercial Corp. from August 1996, and its chairperson from
August 2003 to May 2005.
Mr. Harker has been with Alliance One or its predecessor
companies since 1990, and has served as chairperson and chief
executive officer of the company since the merger in May 2005.
Previously, he was president and chief executive officer of
DIMON Inc. from May 1999, and its chairperson from March 2003.
Mr. Harker stated, "We are pleased to move our anticipated
succession plan forward, marking the completion of our merger
integration process and the implementation of our shared vision
for Alliance One International and its many talented and
dedicated employees. Accordingly, Pete's succession to the CEO
(chief executive officer) role represents the fulfillment of a
smooth transitional period for our entire company, as well as
the full confidence of the entire Board in Pete Harrison and our
management team. They are uniquely well qualified to build on
the success of our integration and to lead our unified company
forward in refining our footprint, enhancing our superior
service to customers, and building value for our shareholders
through continued strong operational and financial performance."
"Since our merger announcement, Brian and I have worked closely
together to address significant industry challenges and changes,
and integrate the company so that it is well-positioned to
capitalize on market leadership opportunities. It is gratifying
to see it all coming together ahead of plan, and we thank all
our stakeholders for their ongoing support. The corporation has
a strong management team in place, a clear vision for success,
and an overarching commitment to deliver shareholder value by
best serving our customers. I am confident that, working
together, we can bring our vision to fruition in the years
ahead," Mr. Harrison noted.
Based in Morrisville, North Carolina, Alliance One
International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a
leaf tobacco merchant.
The company has worldwide operations, including in Indonesia,
Argentina, Brazil, Bulgaria, Canada, China, France, India,
Philippines, Malaysia, and Singapore.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 29, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the US Consumer
Products, Beverage, Toy, Natural Product Processors, Packaged
Food Processors and Agricultural Cooperative sectors, the rating
agency confirmed its B2 Corporate Family Rating for Alliance One
International, Inc., and upgraded its B2 rating on the company's
US$300 million senior secured revolver to B1. In addition,
Moody's assigned an LGD3 rating to notes, suggesting noteholders
will experience a 37% loss in the event of a default.
AVNET INC: EC Inquires Into General Electric Access Acquisition
---------------------------------------------------------------
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 10, 2006, Avnet Inc. has agreed to buy a business from
Fairfield-based General Electric Company for US$412.5 million to
become a distributor of Sun Microsystems Inc. products.
In an update, Hemscott News relates that the European Commission
said the deadline for its inquiry into Avnet's proposed
acquisition of General Electric's unit, Access Distribution, is
set for Dec. 22.
According to the report, the deal is being examined under the
European Commission's simplified merger review procedure.
The report notes that Access Distribution distributes and
services computer systems and software for networks, network
security and storage and has anticipated sales of more than
US$2 billion in 2006. Access will be integrated into Avnet's
Technology Solutions Group, the report points out.
Avnet, Inc., headquartered in Phoenix, Arizona, is one of the
largest worldwide distributors of electronic components and
computer products, primarily for industrial customers. Revenues
for the fiscal year ended July 1, 2006 were US$14.3 billion. It
has operations in these Asia-Pacific countries: Indonesia,
Australia, China, Hong Kong, India, Japan, Malaysia, New
Zealand, Philippines and Singapore.
The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. technology
semiconductor and distributor sector, the rating agency affirmed
its Ba1 corporate family rating on Avnet, Inc.
Additionally, Moody's 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$400MM 8.00% Sr.
Unsecured Notes
due 2006 Ba1 Ba1 LGD3 49%
US$250MM 6.00% Sr.
Unsecured Notes
due 2015 Ba1 Ba1 LGD3 49%
US$300MM 6.625% Sr.
Unsecured Notes
due 2016 Ba1 Ba1 LGD3 49%
US$300MM 2.00%
Convertible Sr.
Debentures due 2034 Ba1 Ba1 LGD3 49%
Shelf - Sr.
Unsecured (P)Ba1 (P)Ba1 LGD3 49%
Shelf - Subor. (P)Ba2 (P)Ba2 LGD6 97%
FOSTER WHEELER: Fin'l Improvements Prompt S&P's Positive Outlook
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company. The company had about
US$217 million of total debt at Sept. 29, 2006.
"The outlook revision reflects greater-than-expected improvement
in the company's financial risk profile resulting from recent
debt reduction initiatives, decreased asbestos liability, and a
refinancing of its credit facility," said Standard & Poor's
credit analyst James Siahaan.
The outlook also reflects the company's healthy business
prospects, as backlogs in its chemicals, refinery, power, and
oil and gas markets have exhibited considerable increases over
the past few years.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand, and Vietnam.
GOODYEAR TIRE: Judge Imposes Restrictions On Union Picketing
------------------------------------------------------------
A judge imposed restrictions on union picketing at the Goodyear
Tire and Rubber Co. plant after accusations of harassment and
vandalism, the Associated Press reports.
According to Tribune Chronicle, an order was issued by Shawnee
County District Judge Charles Andrews prohibiting the United
Steelworkers from having more than 25 pickets in front of the
plant at any time and it also bars union members from damaging
property or harassing temporary employees.
The report notes that the order was prompted by Goodyear's
allegations that strikers threw nails, impeded traffic into the
plant and harassed workers crossing picket lines.
A member of Local 307, Ron Hoag, denied the accusations on
Saturday, saying that they haven't been fouling any locks and
haven't been throwing nails.
However, Judge Andrews stated in his order that there was
evidence of a temporary worker being followed from the plant by
union members and that they appeared to try to force the worker
off the road, the report relates.
The AP says that the judge also found that union members spit on
and verbally abused temporary workers, shined lights or flashed
cameras in the eyes of people driving into the plant and pounded
on vehicles passing the picket line.
Mr. Hoag countered that temporary employees had also harassed
strikers.
Vice president of Local 307, Glen Griffith said that the company
was upset at the union's show of strength in a Dec. 6
demonstration wherein about 300 workers were outside the plant
as workers entered, the report notes. The AP notes that Mr.
Griffith added there was some congestion as a result of the
picket but that he had no knowledge of intimidation or
vandalism.
Mr. Andrews set a hearing on the order for Jan. 3, the AP says.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide. The company's Asia Pacific headquarters is in
Shanghai, China.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 22, 2006, that Fitch Ratings assigned debt and Recovery
Ratings of CCC+/RR6 to US$1 billion of new private placement
notes issued by The Goodyear Tire and Rubber Company. All
ratings remain on Rating Watch Negative.
The TCR-AP also stated on Nov. 22, that Standard & Poor's
Ratings Services assigned its 'B-' ratings to Goodyear Tire's
US$500 million floating rate senior notes due 2009 and its
US$500 million fixed rate senior notes due 2011, and placed the
ratings on CreditWatch with negative implications.
Moody's Investors Service assigned a B2, LGD4, 63% rating to
Goodyear Tire's new US$1 billion offering of unsecured notes.
GOODYEAR: USW Workers Protest Retirees' Healthcare Abandonment
--------------------------------------------------------------
AFL-CIO President John Sweeney and United Steelworkers President
Leo Gerard held a media teleconference on Dec. 15, 2006, to
discuss the nationwide labor movement protest on Dec. 16 of
Goodyear Tire & Rubber Co.'s betrayal of U.S. workers and
retirees. Union and community activists will join in actions at
more than 100 tire store locations across the country to condemn
Goodyear's assault on the living standards of its workers and
abandonment of health care for some 30,000 retirees.
The effort was intended to educate the public about the
company's proposal to cut jobs and drastically scale back health
care coverage for Goodyear workers and retirees. In addition to
Mr. Sweeney and Mr. Gerard, a striking USW member joined the
call on Dec. 15 to offer perspective from the front lines of the
strike.
Some 15,000 experienced Goodyear workers at 16 facilities were
forced out on strike Oct. 5 due to the company's demands to gut
their health care, close factories and increase tires being
imported from China and other low-wage countries -- even after
the workers took steps to help Goodyear get through a rough time
in 2003, when it was on the brink of bankruptcy. Goodyear's
stock has risen to almost five times as much as it was in early
2003, and top executives have awarded themselves millions of
dollars in bonuses. The company is nonetheless threatening to
walk away from its health care obligations to some 30,000
retirees, offering a one-time fund that is a fraction of the
company's current retiree health care liability.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide. The company's Asia Pacific headquarters is in
Shanghai, China.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 22, 2006, that Fitch Ratings assigned debt and Recovery
Ratings of CCC+/RR6 to US$1 billion of new private placement
notes issued by The Goodyear Tire and Rubber Company. All
ratings remain on Rating Watch Negative.
The TCR-AP also stated on Nov. 22, that Standard & Poor's
Ratings Services assigned its 'B-' ratings to Goodyear Tire's
US$500 million floating rate senior notes due 2009 and its
US$500 million fixed rate senior notes due 2011, and placed the
ratings on CreditWatch with negative implications.
Moody's Investors Service assigned a B2, LGD4, 63% rating to
Goodyear Tire's new US$1 billion offering of unsecured notes.
HESS CORP: Chief Executive Officer Sells 6,000 Shares
-----------------------------------------------------
Hess Corp.'s chairman and chief executive officer, John B. Hess,
sold 6,000 shares of common stock under a prearranged trading
plan, Business Week reports.
According to the report, Mr. Hess disclosed in a pair of Form 4s
filed with the United States Securities and Exchange Commission
that he sold the shares on Dec. 12, 2006, for US$50.69 to
US$51.79 apiece.
The report notes that the stock sales were conducted under a
prearranged 10b5-1 trading plan, which allows a company insider
to set up a program in advance for such transactions and proceed
with them even if he comes into possession of material non-
public information.
Business Week explains that insiders file Form 4s with the SEC
to report transactions in their companies' shares. Open market
purchases and sales must be reported within two business days of
the transaction, the report says.
Headquartered in New York, Hess Corporation (NYSE:HES)
-- http://www.hess.com/-- is a global integrated energy company
engaged in the exploration for and the development, production,
purchase, transportation and sale of crude oil and natural gas.
The corporation also manufactures, purchases, trades and markets
refined petroleum and other energy products.
The company has operations in the United States, United Kingdom,
Norway, Thailand and Indonesia, among others.
The Troubled Company Reporter - Asia Pacific reported on
September 27, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. and Canadian
Exploration and Production sector this week, the rating agency
confirmed its Ba1 Corporate Family Rating for Hess Corporation.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings to these securities:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
7.375% Sr. Unsec.
Notes due 2009 Ba1 Ba1 LGD4 55%
7.875% Sr. Unsec.
Bonds due 2029 Ba1 Ba1 LGD4 55%
7.3% Sr. Unsec.
Notes due 2031 Ba1 Ba1 LGD4 55%
6.65% Sr. Unsec.
Notes due 2011 Ba1 Ba1 LGD4 55%
7.125% Sr. Unsec.
Bonds due 2033 Ba1 Ba1 LGD4 55%
5.75% Pollution
Control Revenue
Bonds, Ser 2002
due 2032 Ba1 Ba1 LGD 4 55%
6.05% Pollution
Control Revenue
Bonds, Ser 2004
due 2034 Ba1 Ba1 LGD4 55%
Multiple Seniority
Shelf (Senior
Unsecured (P)Ba1 (P)Ba1 LGD4 55%
Multiple Seniority
Shelf (Subordinate) (P)Ba2 (P)Ba2 LGD6 97%
Multiple Seniority
Shelf (Cumulative
Preferred) (P)Ba3 (P)Ba2 LGD6 97%
Multiple Seniority
Shelf (Non-Cumulative
Preferred) (P)Ba3 (P)Ba2 LGD6 97%
HILTON HOTELS: Moody's Affirms Low B Ratings on E & F Certs.
------------------------------------------------------------
Moody's Investors Service affirmed the ratings of eight classes
of Hilton Hotels Pool Trust, Commercial Mortgage Pass-Through
Certificates, Series 2000-HLT as:
-- Class A-1, US$46,892,257. Fixed, affirmed at Aaa;
-- Class A-2, US$175,000,000, Floating, affirmed at Aaa;
-- Class X, Notional, affirmed at Aaa;
-- Class B, US$60,800,000, Fixed, affirmed at Aa2;
-- Class C, US$66,800,000,000, Fixed, affirmed at A3;
-- Class D, US$32,900,000, Fixed, affirmed at Baa3;
-- Class E, US$24,700,000,000, Fixed, affirmed at Ba1; and
-- Class F, US$46,880,781, Fixed, affirmed at Ba3.
The transaction consists of five cross-defaulted and cross-
collateralized first mortgages secured by fee interests in five
full service hotel properties owned by affiliates of Hilton
Hotels Corp. (Moody's senior unsecured rating Ba2; stable
outlook). The properties include the Hilton San Francisco &
Towers, Chicago Hilton & Towers, McLean Hilton at Tyson's
Corner, Hilton at Short Hills and the Pointe Hilton Squaw Peak
Resort.
As of the Dec. 5, 2006 distribution date, the transaction's
aggregate certificate balance has decreased by approximately
9.1% to US$454.0 million from US$499.6 million at securitization
as a result of loan amortization. In July 2003 Moody's
downgraded Classes B, C, D, E and F to their current ratings
based on a significant decline in collateral performance.
Collateral performance has improved since its all-time low in
calendar year 2003, although net cash flow remains significantly
lower than that at securitization.
RevPAR for the total pool was US$121.67 for the trailing 12-
month period ending September 2006, representing a 1.7% increase
from Moody's RevPAR of US$119.50 at securitization. However,
Moody's net cash flow for calendar year 2006 of US$55.2 million
represents an approximate decrease of 35.0% from Moody's
expectation of US$84.9 million at securitization. The decrease
in net cash flow is due to increases in operating expenses,
which exceed increases in revenues.
The loan documents provide for the trapping of excess cash flow
when the debt service coverage ratio or DSCR falls below 1.52x
or when net cash flow falls below US$70.0 million. Thus far,
US$166.1 million in reserves have been trapped under this
provision. At such time as DSCR or cash flow thresholds are
again met, trapped cash will be distributed to the borrower.
Based on Moody's adjusted net cash flow and capitalization
rates, as well as the use of floor values, the pool's weighted
average loan to value ratio or LTV is 72.6%, compared to 76.4%
at last review. At securitization Moody's LTV was 63.9%.
The Hilton San Francisco & Towers represents 50.0% of the
allocated loan amount. RevPAR for the trailing 12-month period
ending September 2006 and Moody's net cash flow for calendar
year 2006 were US$114.71 and US$13.8 million, compared to
Moody's expectation of US$127.50 and US$37.9 million at
securitization. The hotel is under performing its competitive
set based on penetration rates provided by Smith Travel
Research.
The Chicago Hilton & Towers represents 28.0% of the allocated
loan amount. RevPAR for the trailing 12-month period ending
September 2006 and Moody's net cash flow for calendar year 2006
were US$127.72 and US$22.7 million, compared to Moody's
expectation of US$113.50 and US$27.8 million at securitization.
The hotel is underperforming its competitive set.
The McLean Hilton at Tyson's Corner represents 8.0% of the
allocated loan amount. RevPAR for the trailing 12-month period
ending September 2006 and Moody's net cash flow for calendar
year 2006 were US$120.01 and US$8.2 million, compared to Moody's
expectation of US$88.50 and US$6.3 million at securitization.
The hotel's performance has steadily improved since 2002. The
hotel is significantly outperforming its competitive set.
Low debt service coverage and the weak performance of the Hilton
San Francisco & Towers remain concerns for this transaction.
However, Moody's is affirming its ratings based on the improved
performance of the remaining hotels, the significant cash
reserves and the Hilton sponsorship.
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, Barbados, India,
Philippines and Vietnam.
INTERNATIONAL NICKEL: Dep't. of Energy Restricts Tender Offer
-------------------------------------------------------------
The Department of Energy and Mineral Resources will not permit
the tender for the offer of shares of PT International Nickel
Indonesia Tbk, Tempo Interactive reports.
According to the report, this was a final decision after the
Department of Energy and Capital Market Supervisory Agency held
a special meeting on Dec. 13 in Jakarta.
Tempo Interactive relates that the Director General of Mineral,
Coal and Geothermal at the Department of Energy Simon Sembiring
stated that the tender offer of International Nickel's shares
was a contradiction to the regulation regarding working
contracts of mining companies in Indonesia.
The working contracts of the company state that minimally, the
Government or a local or public company must control 20% of
share ownership, the report points out.
The report notes that, according to Mr. Sembiring, the share
ownership of the public and the Government on International
Nickel will automatically be gone if the tender offer is
realized.
Tempo Interactive adds that although International Nickel is a
listed company that is bound by special regulations at the
capital market, it must still follow the regulation in the
working contract. Mr. Sembiring told Tempo that the tender
offer of the company's shares definitely violates the
regulations, the report points.
The report adds that Mr. Sembiring stated that Capital Market
Supervisory does not have to be afraid of forbidding
International Nickel because it is supported by the strong
regulation in the working contract.
Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://www.pt-inco.co.id/-- is a nickel
producer with a production facility and mine are in Sorowako,
Sulawesi, where it has a contract agreement until 2025. It
produces nickel matte, an intermediate product, from lateritic
ores at its integrated mining and processing facilities near
Sorowako on the island of Sulawesi. Inco Limited of Canada
holds a 60.8% stake of the company and Sumitomo Metal Mining Co
Ltd. holds a 20.1% stake.
* * *
Standard and Poor's gave the company's long-term foreign and
local issuer credit both a BB- rating.
The company carries Fitch Ratings' BB long-term issuer default
and foreign currency long-term debt ratings.
METSO OYJ: EC Okays Takeover of Aker Kvaerner's Pulping Unit
------------------------------------------------------------
The European Commission has approved the sale of Aker Kvaerner
ASA's Pulping and Power businesses to Metso Oyj, Bloomberg News
reports.
The regulator cleared the deal after Metso pledged to dispose of
its cooking and bleaching equipment-making unit to Groupe
Laperriere & Verreault Inc, Bloomberg News relays.
"There is no longer a serious risk that this proposed takeover
could significantly reduce competition in the pulp-equipment
market," Competition Commissioner Neelie Kroes said.
The companies expect to complete the sale by Dec. 31, with the
final transaction value based on the unit's balance sheet as of
the same date. The estimated deal value is around NOK3 billion
(EUR335 million). Aker expects the deal to have net cash effect
of around NOK2.6 billion and net gain compared to book value of
about NOK2.4 billion. The profit earned during 2006 will be
consolidated into Aker Kvaerner's accounts.
The unit will be integrated into Metso once the sale is
completed, Aker said in a statement.
Acquiring Aker's pulping unit will allow Metso add technology
for chemical pulping mills and seek growth as paper prices are
rebounding from a 20% slump for the past five years.
About Aker Kvaerner
Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and
affiliates, provides engineering and construction services,
technology products and integrated solutions.
The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C. The group operates in
Austria, Azerbaijan, Belgium, Denmark, Finland, France, Germany,
Netherlands, Poland, Russia, Spain, Sweden, United Kingdom,
Australia, China, India, Indonesia, Japan, Malaysia, Singapore,
South Korea, Thailand, Brazil, Chile, Canada and the United
States.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of around EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.
The company also has operations in Indonesia.
* * *
As reported in the TCR-Europe on April 11, Standard & Poor's
Ratings Services revised its outlook on Finland-based machinery
and engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating. The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.
METSO OYJ: Merges Business Operations to Form New Unit
------------------------------------------------------
Metso Oyj has decided to transfer the business operations of the
Finland-based Metso Powdermet Oy, currently a part of Metso
Ventures, to its rock and minerals processing business area
Metso Minerals.
The operation will form a new Metso Materials Technology
business unit within Metso Minerals' Business Development
function, reporting to Ms Tuula Puhakka, SVP, Business
Development.
Metso Materials Technology will provide Metso's business areas
and selected external customers with materials technology based
product solutions and research and development services. With
the transfer Metso aims to strengthen its materials technology
based competence and offering. The businesses will be
transferred on Jan. 1, 2007, and it affects 15 people.
Metso Powdermet has over the years developed unique technology
into components and wear parts among others for wood processing,
as well as energy, minerals and chemical industries. The new
name of the business unit is Metso Materials Technology Oy.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of around EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.
The company also has operations in Indonesia.
* * *
As reported in the TCR-Europe on April 11, Standard & Poor's
Ratings Services revised its outlook on Finland-based machinery
and engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating. The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.
METSO OYJ: Draws EUR100-Mln Loan from European Investment Bank
--------------------------------------------------------------
Metso Oyj drew a EUR100 million loan from the European
Investment Bank. The purpose of the loan, which was agreed in
2004, is to finance R&D activities carried out within Metso.
The loan has a floating interest rate, its tenor is 10 years and
amortizing will begin in 2010.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.
The company also has operations in Indonesia.
* * *
As reported in TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating. The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.
NORTEL: Unit Amends Facility Agreement with Export Development
--------------------------------------------------------------
Nortel Networks Corp. disclosed that its principal operating
subsidiary, Nortel Networks Limited, has amended its master
facility agreement with Export Development Canada. The
amendment extends the maturity date of the Facility for an
additional year to Dec. 31, 2008.
The total Facility is maintained at US$750 million, including
the existing US$300 million of committed support for performance
bonds and similar instruments.
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.
* * *
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). All trends are Stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes. The outlook is stable.
ORBITAL SCIENCES: Earns US$8.6 Million in 2006 Third Quarter
----------------------------------------------------------
Orbital Sciences Corp. reported preliminary financial results
for the third quarter and first nine months of 2006.
Net income for the third quarter of 2006 was US$8.6 million, up
from US$6.8 million in the third quarter of 2005. Net income
for the first nine months of 2006 was US$27.2 million, compared
to US$20.5 million in the same period of 2005.
Orbital's third quarter revenues increased 24% to US$197.7
million in 2006, compared to US$159.3 million in 2005. The
company's third quarter operating income rose 25% to US$15.3
million in 2006, as compared to US$12.2 million in 2005.
The third quarter increase in revenues was primarily due to a
58% increase in satellites and space systems segment revenues,
driven by growth in the communications satellites product line
related to progress on several new satellite contracts awarded
in 2005. Launch vehicles segment revenues decreased 11% due to
lower revenues from the interceptor launch vehicle and target
vehicle product lines, partially offset by higher revenues from
the space launch vehicle product line. Transportation
management systems segment revenues increased 46% largely driven
by work on several new contracts started in 2005 and early 2006.
Commenting on Orbital's third quarter 2006 results, Mr. David W.
Thompson, Chairman and Chief Executive Officer, said, "The
company generated strong across-the-board financial results this
past quarter. Of particular significance were robust revenue
growth and profit margin expansion in our satellite business,
continued solid free cash flow, and exceptional new orders and
contract backlog."
For the first nine months of 2006, Orbital reported US$586.8
million in revenues, up 16% over the same period last year,
primarily due to a 38% increase in satellites and space systems
segment revenues that was driven by growth in the communications
satellites product line. Launch vehicles segment revenues
decreased 7% primarily due to lower revenues from the
interceptor and target vehicle product lines, partially offset
by higher revenues from the space launch vehicle product line.
Transportation management systems segment revenues increased 36%
largely driven by the work on several new contracts started in
2005 and early 2006.
At Sept. 30, 2006, the company's balance sheet showed US$746,409
in total assets, US$318,833 in total liabilities, and US$427,576
in total stockholders' equity.
The company reported free cash flow of US$21.0 million for the
third quarter of 2006 and US$75.2 million for the first nine
months of 2006. Orbital's unrestricted cash balance increased
to US$233.0 million as of Sept. 30, 2006. In the first nine
months of 2006, Orbital repurchased 1.1 million shares of its
common stock for US$16.2 million as part of the company's 12-
month, US$50 million securities repurchase program which began
in April 2006.
Stock-Based Compensation Review
In the third quarter, the company's Board of Directors
established a special committee to conduct a review of stock
option and restricted stock unit grants and related procedures
dating from the time of the company's initial public offering in
1990 to the present. The special committee is being assisted by
independent legal counsel and accounting consultants. This
company-initiated review is substantially complete and the
special committee has concluded that there was no fraud or
intentional misconduct in its past stock-based compensation
practices.
As a result of the stock-based compensation review, Orbital has
determined that incorrect accounting measurement dates were used
for a number of grants. Accordingly, the company expects to
revise prior period financial statements to record non-cash
compensation expenses that should have been recorded with
respect to the misdated options.
Based on Orbital's current analysis and assessment, the company
does not expect that such adjustments will be material to any of
its current financial statements for periods subsequent to the
year ended Dec. 31, 2000. Since the adjustments to the current
financial statements are not expected to be material, the
company does not expect to file any amended Forms 10-Q or Forms
10-K for prior periods. The revised prior period financial
statements will be reported when the company files its third
quarter 2006 Form 10-Q and 2006 Form 10-K. The company expects
to record pre-tax compensation charges of approximately
US$300,000 in 2006, a total of about US$2.5 million in the five-
year period 2001 through 2005 and a total of about US$11.5
million for all periods prior to 2001.
Orbital is in the process of assessing the impact of this matter
on its system of internal controls.
About Orbital Sciences
Orbital Sciences Corp. (NYSE: ORB) -- http://www.orbital.com/--
develops and manufactures small rockets and space systems for
commercial, military and civil government customers. he
company's primary products are satellites and launch vehicles,
including low-orbit, geosynchronous-orbit and planetary
spacecraft for communications, remote sensing, scientific and
defense missions; ground- and air-launched rockets that deliver
satellites into orbit; and missile defense systems that are used
as interceptor and target vehicles. Orbital also offers space-
related technical services to government agencies and develops
and builds satellite-based transportation management systems for
public transit agencies and private vehicle fleet operators.
The company has operations in Brazil, Spain and Indonesia.
Standard & Poor's Ratings Services assigned its 'B+' rating to
the US$143.8 million 2.4375% convertible subordinated notes due
2027 of Orbital Sciences Corp. The notes will be issued via SEC
Rule 144A with registration rights. The proceeds and cash on
hand will be used to repurchase the company's outstanding 9%
senior unsecured notes due 2011, as well as US$50 million of
common stock.
The Troubled Company Reporter reported on Oct. 3, 2006, that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba2 Corporate
Family Rating for Orbital Sciences Corporation and its Ba3
rating on the company's 9% Senior Notes due 2011. Moody's
assigned those debentures an LGD4 rating suggesting noteholders
will experience a 61% loss in case of default.
PT PERTAMINA: Selects Mitsubishi Corp. to Build Gas Plant
---------------------------------------------------------
PT Pertamina (Persero) has selected Japan's Mitsubishi Corp. to
build a liquefied natural gas plant on Sulawesi Island in a bid
to boost output, Reuters reports.
According to the report, Pertamina's upstream deputy director,
Tri Siwindono, said that the plant will have annual capacity of
2 million tonnes of Liquefied Natural Gas.
The report notes that Mr. Siwindono said natural gas supplies
will come from Pertamina's Matindok and Senoro fields, operated
by PT Medco Energy International, with combined reserves of
around 2 trillion cubic feet.
Mr. Siwindono told Reuters that Pertamina, Medco and Mitsubishi
are working together to conclude a framework agreement and they
expect to sign the deal by the end of the year or early next
year, the report says.
Reuters relates that Mr. Siwindono also added that the report
construction is expected to kick off next year and it will start
producing in 2009.
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being met
by imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
* Bond Issuance Robust in 2006, Upbeat in 2007, Fitch Says
----------------------------------------------------------
Fitch Ratings commented that 2006 has been a remarkable year for
Indonesian corporate bond issuance, with more than
US$2.7 billion worth of international issuance from 11 different
companies representing a diverse range of industries. The
domestic bond market for new issuances, on the other hand,
remained quiet with very few issues in 2006. However, led by a
lower interest rate environment, the agency expects market
conditions for domestic bond issuance to improve next year.
"A combination of macroeconomic stability and a relatively
stable Indonesian Rupiah for most of 2006 were important
contributors to the renewed interest of international bond
investors in Indonesian issuers, and Fitch has played a very
active role in the market, with the agency having rated six of
the 11 international issues in the year to date," said Tony
Stringer, managing director and Head of Corporate Ratings, Asia
Pacific. "Investors were also attracted by higher returns on
Indonesian high-yield issues, compared with issuers rated at
similar levels in more developed markets," he added.
The increase in fuel prices in October 2005 had adversely
affected many industries, but it had a very positive affect on
government finances, which resulted in stability in the
Indonesian economy this year.
On the relatively weak national bond market, Mr. Stringer
explained that the sharp increase in interest rates in 2005
adversely affected the performance of mutual funds in the
country, traditionally large investors in Indonesian Rupiah
bonds. Large corporate borrowers also preferred to access the
more liquid international bond markets, as well as taking
advantage of the lower borrowing cost of dollar-denominated
bonds. The agency, however, expects more companies to issue
local currency bonds as market conditions improve in 2007.
As inflation pressure has started to decline, particularly in
Q306, the central bank has progressively cut the benchmark
interest rate to 9.75% (as of December 2006), with indications
of more rate cuts to come. However, Fitch also noted that most
of the recent bond issues have resulted in an increase in
financial leverage ratios. Therefore, either a sustained
increase in earnings or substantial debt retirement would be
necessary prerequisites for any upgrade of the ratings assigned
to existing issuers. Such improvements in credit fundamentals,
if they do occur, are more likely to happen in the medium term
(two to three years) than in the next 12 months.
"Fitch believes that the credit profiles of Indonesian companies
rated by the agency are likely to remain stable in 2007," said
Mr. Stringer. "The threat to a generally stable outlook is
primarily from the potential impact of a US-led global economic
slowdown on the Indonesian economy. On the other hand, there
could be positive surprises if government spending, particularly
on infrastructure, takes off as planned, although there is
limited evidence of progress in this area to date," he added.
The agency's on-the-ground presence in Indonesia played a key
role in the increased use of its ratings, said Mr. Stringer.
Investors benefited from Fitch's detailed research on the
fundamental analysis of the individual issuers and their
recovery prospects. In addition, the agency's national rating
scale provides a better differentiation between Indonesian
credits, which tend to be compressed on the international scale
as a result of Fitch's 'BB-' Sovereign rating and 'BB' Country
Ceiling for Indonesia, to the benefit of both investors and
issuers.
=========
J A P A N
=========
CONTINENTAL AIRLINES: Analyst Says UAL Merger Is Good Strategy
--------------------------------------------------------------
Roger King, an analyst at CreditSights, told the Jamaica Gleaner
that a merger would be a good aggressive strategy by UAL Corp.,
the parent of United Airlines, and a good defesive strategy by
Continental Airlines Inc.
As reported in the Troubled Company Reporter-Latin America on
Dec. 15, 2006, Continental Airlines and UAL started talking of
merging their companies to create a US$9 billion carrier. An
unnamed source said that US Airways' move to bid for rival Delta
Airlines prompted Continental Airlines to respond to UAL's bid,
which was broached three months ago.
The Gleaner relates that the combined firm would have many
interesting components, due to United Airlines' presence in the
West Coast, London (through the Heathrow Airport) and in China,
and Continental Airline's presence in Newark, New Jersey and in
the Latin America as well as its Trans-Atlantic access.
However, a deal between United Airlines and Continental Airline
would face hurdles like the usual complexity of integrating
workforces and combining fleets and route networks, The Gleaner
notes.
Mike Boyd, an airline consultant, told The Gleaner that the two
airlines would also have to convince Continental Airline's
management to do a deal. He said, "There's probably more smoke
than fire at this point."
The Gleaner underscores that Northwest Airlines, which holds a
"golden share" in Continental Airlines, has the right to block
mergers involving the carrier. The airlines could offer
Northwest Airlines assets or other incentives in exchange for
its support.
Bob Harrell, an airline consultant at Harrell Associates, told
The Gleaner, "Anything can be negotiated."
According to The Gleaner, Continental Airline has reiterated
that it would prefer to remain independent. However, it also
said that it would consider a deal, if necessary, to remain
competitive.
The Gleaner emphasizes that a deal, which would create an
airline with over 26% market share, would also face close
scrutiny from antitrust authorities.
US regulators in the past had been against big airline mergers
due to competition concerns. This had derailed a planned merger
between United Airlines and US Airways in 2001, The Gleaner
notes.
Ray Neidl, an analyst with Calyon Securities, commented to The
Gleaner, "The big question is what the regulators will do."
However, airline officials told The Gleaner that they are
positive that the U.S. Department of Justice may be more
agreeable to big deals now.
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, and in Canada, Mexico, as well as
in 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.
* * *
As reported in the Troubled Company Reporter on Nov. 10, 2006
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. Moody's said the outlook is stable.
As reported in the Troubled Company Reporter on Oct. 23, 2006,
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. Continental has about US$17
billion of debt and leases.
At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Fitch said
the rating outlook was stable.
CONTINENTAL AIR: Union Ready to Respond to Likely UAL Merger
------------------------------------------------------------
In response to the reported Continental Airlines and United
Airlines discussion for a possible merger, the International
Association of Machinists and Aerospace Workers' general vice
president, Robert Roach, Jr., issued this statement:
"The Machinists Union has not been contacted by United or
Continental about any potential merger. The IAM is fully
prepared to defend the wages, contracts, and defined benefit
pension plans earned by our 25,000 members at United and
Continental. The IAM's Transportation Merger Team is also
prepared to respond to any airline merger scenario. In the
event a United-Continental merger d[o] occur, United's Flight
Attendants could gain the defined benefit pension plan currently
enjoyed by our United Airlines members and being ratified by our
Continental Flight Attendants."
About the IAM
The IAM represents 16,000 United Airlines Ramp & Stores, Public
Contact, Food Service, Fleet Technical Instructors, Maintenance
Instructors, Security Officer and Food Service employees.
The Machinists Union also represents more than 9,000 Continental
Airlines Flight Attendants.
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, and in Canada, Mexico, as well as
in 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.
* * *
As reported in the Troubled Company Reporter on Nov. 10, 2006
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. Moody's said the outlook is stable.
As reported in the Troubled Company Reporter on Oct. 23, 2006,
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. Continental has about US$17
billion of debt and leases.
At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Fitch said
the rating outlook was stable.
CONTINENTAL AIRLINES: Schedules US$292MM 4th Qtr. Debt Payments
---------------------------------------------------------------
Continental Airlines Inc. disclosed that its scheduled debt and
capital lease principal payments for the fourth quarter 2006 are
estimated to be approximately US$292 million.
The company also disclosed that it had hedged, as of December
11, approximately 36% of its projected fuel requirements for the
fourth quarter, using petroleum swap contracts, with a weighted
average price of US$72.36 per barrel, and another 3% with zero
cost collars on jet fuel. The company had also hedged about 18%
of its projected fuel requirements for the first quarter 2007,
using petroleum swap contracts with a weighted average price of
US$67.46, and another 8% with zero cost collars on heating oil.
Fourth Quarter Outlook
The company expects to record income of approximately
US$26 million for the full year 2006 related to the tax sharing
agreement with ExpressJet.
Pension plans contributions of the company totaled
US$246 million and estimates its non-cash pension expense will
be approximately US$159 million for calendar year 2006, which
excludes year-to-date settlement charges of US$37 million
related to lump-sum distributions from the pilot's frozen
defined benefit plan.
The company also expects to record stock option expense of
US$6 million for the fourth quarter and US$26 million for the
full year 2006.
Cargo, mail and other revenue is estimated by the company to be
between US$280 million and US$290 million for the fourth quarter
2006.
The company further disclosed that it anticipates ending the
year 2006 with an unrestricted cash and short-term investments
balance of between US$2.4 and US$2.5 billion.
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, and in Canada, Mexico, as well as
in 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.
* * *
As reported in the Troubled Company Reporter on Nov. 10, 2006
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. Moody's said the outlook is stable.
As reported in the Troubled Company Reporter on Oct. 23, 2006,
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. Continental has about US$17
billion of debt and leases.
At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Fitch said
the rating outlook was stable.
CONVERIUM HOLDING: Fitch Upgrades Issuer Default Rating to BBB
--------------------------------------------------------------
Fitch Ratings upgraded Swiss-based Converium AG's Insurer
Financial Strength rating to BBB+ from BBB- and removed the
rating from Rating Watch Positive. The agency also upgraded and
removed from RWP other ratings within the Converium group.
Stable Outlooks were assigned to all ratings.
The rating action follows the conclusion of the sale by
Converium of its North American operations to the Berkshire
Hathaway Group for US$95 million in cash. In addition,
Berkshire Hathaway has assumed US$200 million of senior debt
from the North American operation.
Fitch views the sale of Converium's North American business
positively. This business has historically been a drag on the
group's ratings due to potential further adverse reserve
development on prior-year liabilities, the management time and
effort required to manage the run-off of the portfolio and the
non-fungibility of capital tied up in these operations.
Fitch also views positively the transfer of Converium's US
senior debt to Berkshire Hathaway and the impact that the sale
should have on the group's consolidated expense ratio.
Significantly, Converium has not provided guarantees or
indemnities relating to the reserves of the North American
operations.
The ratings also reflect Converium's strong capitalization,
conservative investment strategy and improving franchise.
Partially offsetting these positive rating factors are
Converium's high expense base relative to its peers and
outstanding class action lawsuits, which if defended
unsuccessfully, could have a material effect on the group's
financial strength, operating results and cash flows.
Converium group ratings are:
-- Converium AG's IFS upgraded to BBB+ from BBB-; off RWP;
-- Converium AG's Issuer Default rating upgraded to BBB+ from
BBB-; off RWP;
-- Converium Insurance (U.K.) Limited's IFS upgraded to BBB+
from BBB-;off RWP;
-- Converium Ruckversicherungs (Deutschland) AG's IFS
upgraded to BBB+ from BBB-; off RWP;
-- Converium Holding AG's IDR upgraded to BBB from BB; off
RWP; and
-- Converium Finance S.A.'s US$200 million subordinated debt
due 2032 upgraded to BBB from BB+; off RWP.
Headquartered in Zug, Switzerland, Converium Holding AG --
http://www.converium.com/-- provides treaty and individual
coverage for risks including accident and health, credit and
surety, e-commerce, third party and professional liability,
life, and special casualty. The company also operates in Japan,
Germany, United Kingdom, France, Malaysia, Singapore, Australia,
U.S.A., Brazil and Canada.
DELPHI CORP: Court Indefinitely Adjourns Sec. 1113/1114 Hearing
---------------------------------------------------------------
The Honorable Robert D. Drain of the United States Bankruptcy
Court for the Southern District of New York has indeterminately
adjourned the hearing on Delphi Corporation and its debtor-
affiliates' Section 1113/1114 Motion in light of the further
progress reported by the Debtors at the status conference held
on Nov. 30, 2006.
The Court held an in-person, in-camera status conference with
the Debtors, the Respondents, and the Official Committee of
Equity Security Holders on Dec. 13, 2006, regarding the status
of negotiations with respect to the consensual resolution of the
1113/1114 Motion.
Delphi is seeking to reject its collective bargaining agreements
with unions and to modify obligations to provide insurance
benefits for its hourly retirees. To restructure its U.S.
operations, Delphi is planning to cut 4/5 of its 33,100 U.S.
hourly workers, close 21 of its 29 U.S. union plants and slash
wages and benefits for workers who stay.
The Section 1113-1114 proceedings began May 9, 2006, with
opening statements by Delphi, the UAW, other objecting unions --
IUE-CWA, USW, IAM, IBEW and IUOE -- the Official Committee of
Unsecured Creditors and others.
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 recovery rating on
Delphi's senior secured bank facility was withdrawn. Delphi,
the largest U.S. manufacturer of automotive components, has
total debt of about US$6 billion and total unfunded pension
obligations and other postretirement employee benefit
liabilities of about US$14.5 billion.
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. 50; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
DELPHI CORP: Behind by US$1,250,000,000 in Pension Payments
---------------------------------------------------------
Delphi Corporation is delinquent by at least US$1,250,000,000 in
payments to its pension fund since the Petition Date, David
Shepardson of The Detroit News reports, citing federal pension
regulators.
The Pension Benefit Guaranty Corp. told The Detroit News that
Delphi's pension fund may be underfunded by as much as
US$10,600,000,000.
Mr. Shepardson discloses that Delphi has already filed a request
with the Internal Revenue Service seeking to waive excise taxes
it may liable for in connection with its inability to meet the
minimum required pension payments.
According to Delphi's counsel, the company may stop the pension
fund next year, Mr. Shepardson relates.
U.S. hourly pension and other post-employment benefits exposed
Delphi to approximately US$10,700,000,000 in unfunded
liabilities at December 31, 2005, according to the company's
annual report filed with the United States Securities and
Exchange Commission in July 2006.
Delphi reported that approximately US$2,300,000,000 was
attributable to unfunded pension obligations and
US$8,400,000,000 was attributable to OPEB obligations.
Before filing for bankruptcy, Delphi projected that cash
outflows for hourly pension contributions and OPEB payments
through 2007 would approximate US$1,900,000,000. Through the
Chapter 11 process, however, Delphi is permitted to defer a
significant portion of the contributions until it emerges from
bankruptcy.
During the six months ended June 30, 2006, Delphi contributed
US$119,000,000 to its U.S. pension plans, according to the
company's quarterly report filed in August 2006. The amount
represents the portion of the pension contribution attributable
to services rendered by Delphi employees in the fourth quarter
of 2005 and the first quarter of 2006.
Under the Employee Retirement Income Security Act and the U.S.
Internal Revenue Code, a US$600,000,000 minimum funding payment
to the U.S. pension plans was due in the first six months of
2006.
As permitted under Chapter 11, Delphi contributed only the
portion of the contribution attributable to post-bankruptcy-
petition service. Accordingly, Delphi did not meet the minimum
funding standards of ERISA and the Internal Revenue Code for its
primary U.S. pension plans for the plan years ended Sept. 30,
2005.
Delphi said the US$173,000,00 underfunded amount was due June
15, 2006. The default triggered a US$17,000,000 excise tax.
On July 14, 2006, Delphi contributed approximately US$60,000,000
to its U.S. pension plans. The amount represents the portion of
the pension contribution attributable to services rendered by
Delphi employees in the postpetition portion of the second
quarter of 2006.
Certain of Delphi's non-U.S. subsidiaries also sponsor defined
benefit pension plans, which generally provide benefits based on
negotiated amounts for each year of service. Delphi's primary
non-U.S. plans are located in France, Germany, Luxembourg,
Mexico, Portugal, and the United Kingdom. The UK and certain
Mexican plans are funded. In addition, Delphi has defined
benefit plans in Korea and Italy for which amounts are payable
to employees immediately upon separation.
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 recovery rating on
Delphi's senior secured bank facility was withdrawn. Delphi,
the largest U.S. manufacturer of automotive components, has
total debt of about US$6 billion and total unfunded pension
obligations and other postretirement employee benefit
liabilities of about US$14.5 billion.
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. 50; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
ELAN CORP: Converts and Redeems US$253.6-Million Notes
------------------------------------------------------
Elan Corp. plc reveals that following the issuance of a notice
of redemption for the outstanding 6.5% Convertible Guaranteed
Notes due 2008 issued by Elan Capital Corp. Ltd, a wholly owned
subsidiary, and guaranteed by Elan, holders of around
US$253.6 million of Convertible Notes elected to convert their
Convertible Notes, on or before the close of business on
Dec. 13, into American Depository Shares or ordinary shares of
Elan at a conversion rate of 134.7709 ADSs or 134.7709 ordinary
shares per US$1,000 principal amount of Convertible Notes.
The conversion price of the Convertible Notes is approximately
US$7.42 per ADS/ordinary share. As a result of the conversion
of such Convertible Notes, around 34.2 million ADS/ordinary
shares were issued to holders electing to convert their
Convertible Notes. The remaining US$0.4 million of outstanding
Convertible Notes will be redeemed at a redemption price of 100%
of the principal amount thereof plus accrued and unpaid interest
to, but excluding, the redemption date of Dec. 22, 2006.
Elan Capital Corp. will redeem such unconverted Convertible
Notes solely with cash from Elan's consummated senior notes
offering. As of Dec. 18, Elan has approximately 466.6 million
ADS/ordinary shares outstanding, which includes the ADS/ordinary
shares issued to holders electing to convert their Convertible
Notes.
In addition, Elan announced that Athena Neurosciences Finance,
LLC, its wholly owned subsidiary, delivered a notice of
redemption to the holders of Athena's outstanding US$613 million
aggregate principal amount of 7.25% Guaranteed Senior Notes due
2008. The Athena Notes are guaranteed by Elan. As stated in
the notice of redemption and in accordance with the indenture
under which the Athena Notes were issued, Athena is exercising
its right to redeem all of its Athena Notes on Jan. 12, 2006, at
a redemption price equal to accrued and unpaid interest to, but
excluding, the redemption date plus the sum of the present
values of the future interest and principal payments on the
Athena Notes, based upon prevailing U.S. treasury rates plus 25
basis points, as determined three business days prior to the
redemption date in accordance with the terms of the indenture.
Athena will redeem such Athena Notes with cash from Elan's
consummated senior notes offering and cash on hand. After
completion of the redemption of the remaining outstanding
Convertible Notes and the outstanding Athena Notes, the next
scheduled maturity date for outstanding long-term indebtedness
of Elan will occur in 2011.
About the company
Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company. Elan shares trade on the New York, London and Dublin
Stock Exchanges.
The company has locations in Bermuda and Japan.
* * *
As reported in the Troubled Company Reporter - Europe on
Nov. 13, Standard & Poor's Ratings Services assigned its 'B'
rating to Elan Finance plc's proposed offering of US$500 million
senior unsecured notes due 2013, to be issued in a combination
of fixed and floating-rate notes. Elan Finance plc is a wholly
owned subsidiary of Dublin, Ireland-based specialty
pharmaceutical company Elan Corp. plc. The notes are guaranteed
on a senior unsecured basis by Elan and all of its existing
material subsidiaries.
Outstanding ratings on Elan (including the 'B' corporate credit
rating) and its related entities were affirmed. The ratings
outlook is stable.
Also, Moody's Investors Service assigned a B3 rating to the
proposed new senior unsecured notes of Elan Finance plc
reflecting a guarantee from Elan Corporation plc and material
subsidiaries. At the same time, Moody's affirmed Elan's
existing ratings (B3 Corporate Family Rating) and the stable
rating outlook.
The rating outlook is stable.
Rating assigned:
Elan Finance plc
* B3 fixed rate senior notes due 2013 (guaranteed by
Elan Corporation, plc and subsidiaries)
* B3 floating rate senior notes due 2013 (guaranteed by
Elan Corporation, plc and subsidiaries)
Ratings affirmed:
Elan Corporation, plc
* B3 corporate family rating
Elan Finance plc
* B3 fixed rate senior notes of US$850 million
due 2011 (guaranteed by Elan Corporation, plc
and subsidiaries)
* B3 floating rate senior notes of US$300 million
due 2011 (guaranteed by Elan Corporation, plc
and subsidiaries)
Athena Neurosciences Finance, LLC
* B3 senior notes of US$613 million due 2008 (guaranteed
by Elan Corporation, plc and subsidiaries)
Moody's does not rate Elan's US$254 million convertible notes
due 2008.
MITSUBISHI MOTORS: Launches Production of "Outlander" at Okazaki
----------------------------------------------------------------
Mitsubishi Motors Corporation disclosed that it starts
production of "Outlander" SUV at Okazaki plant, located in
Okazaki City, Aichi Prefecture. Okazaki plant will produce
29,000 units of "Outlander" in the second half of fiscal year
2006 mainly for North America, Russia and Japanese markets.
Mizushima plant has been producing its model so far, but due to
robust growth in sales of domestic mini-cars and export models,
the plant's production capacity has reached maximum level.
Transferring a part of "Outlander" production will ease current
production condition of overloaded Mizushima plant.
Mitsubishi Motors celebrated production launch of "Outlander" at
Okazaki plant on Dec. 15, 2006. President Masuko made remarks
during the ceremony, "This is an impressive moment to celebrate
a new start of Okazaki plant, however we also need to reaffirm
that we are still on a passing point on the execution of the
revitalization plan. I would like to ask all the employees here
today to challenge forward to create Okazaki plant's new
history."
Okazaki plant had been operated with one-shift from April 2004.
Its operation shift is changed to two-shift for the first time
in the past 32 months.
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 Troubled 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 Troubled 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.
=========
K O R E A
=========
DURA AUTOMOTIVE: Eight Vendors Want to Reclaim Prepetition Goods
----------------------------------------------------------------
Eight vendors ask DURA Automotive Systems Inc., pursuant to
Sections 503 and 546 of the Bankruptcy Code and applicable non-
bankruptcy law, to return certain goods that are subject to
reclamation:
Vendor Value of Goods
------ --------------
Freedom Technologies Corp. US$164,576
S&S Porcelain Metals, LLC 144,449
Dexon Computer, Inc. 23,930
Sharon Tube Company 40,148
Metco Industries, Inc. 54,065
Steadfast Engineered Products, LLC 15,531
ACK Controls Inc. 169,260
Supreme Machined Products Co., Inc.
of Spring Lake, Michigan 23,391
The Vendors inform the Honorable Kevin J. Carey of the United
States Bankruptcy Court for the District of Delaware that the
reclaimed goods were sold in the ordinary course of their
businesses and delivered to the Debtors during the 45 days
before they filed for bankruptcy. The Vendors believe that the
Debtors were insolvent at the time that they received the goods.
Steadfast Engineered Products requests for an inventory of the
goods it delivered to the Debtors.
Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia, namely in
China, Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Fitch Ratings placed one tranche from one
public collateralized debt obligation and one tranche from
private CDO on Rating Watch Negative following Dura Automotive
Corp.'s filing for protection under Chapter 11.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
* * *
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'
special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors'
investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors. As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities. (Dura Automotive Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
INTEGRAL VISION: Posts US$661,000 Net Loss in 3rd Quarter 2006
--------------------------------------------------------------
Integral Vision Inc. recorded a US$661,000 net loss on
US$353,000 of net revenues for the three months ended Sept. 30,
2006, compared to a US$780,000 net loss on US$14,000 of net
revenues for the same period in 2005.
At Sept. 30, 2006, the company's balance sheet showed
US$1.2 million in total assets and US$933,000 in total
liabilities.
The company's investing activities included the purchase of
approximately US$49,000 of equipment and US$8,000 for patents in
the nine months ended Sept. 30, 2006. Additionally, the company
reported US$153,000 of consignment and demonstration equipment
was reclassified from inventory to Marketing Demonstration
Equipment as capital goods to more accurately reflect how it is
being used.
A full-text copy of the company's quarterly report is available
for free at http://researcharchives.com/t/s?16b8
Integral Vision, Inc. (OTCBB: INVI) -- http://www.iv-usa.com/--
develops, manufactures, and markets flat panel display
inspection systems to ensure product quality in the display
manufacturing process. The company has operations in Japan and
Korea.
In May 2006, the Troubled Company Reporter disclosed that
Rehmann Robson in Troy, Michigan, raised substantial doubt about
Integral Vision, Inc.'s ability to continue as a going concern
after auditing the Company's consolidated financial statements
for the year ended Dec. 31, 2004, and 2005. The auditor pointed
to the Company's recurring losses and difficulties in achieving
necessary sales to attain profitability.
JEONBUK BANK: ABN Amro Bank Accumulates 6.5% Stake
--------------------------------------------------
ABN Amro Bank N.V. has accumulated a 6.5% stake in Jeonbuk Bank
through the local stock market, marketwatch.com reports citing
the bank's filing with Korea's Financial Supervisory Service.
The stake makes the Netherland's-based bank as the third largest
shareholder in Jeonbuk Bank, marketwatch notes.
According to the Web site, ABN did not specify its purpose of
the investment.
About Jeonbuk Bank
Jeonbuk Bank -- http://www.jbbank.co.kr/-- provides commercial
and retail banking services mainly to the Jeonbuk province in
South Korea. The Bank's services include deposits, loans,
credit cards, foreign exchange, trust accounts, corporate loans,
telebanking, and Internet banking.
Moody's Investors Service gave Jeonbuk Bank a 'D-' Bank
Financial Strength Rating.
KRISPY KREME: Delays Filing Report for Third Qtr. Ended Oct. 29
---------------------------------------------------------------
Krispy Kreme Doughnuts Inc. will be unable to timely file a
quarterly report on Form 10-Q with the United States Securities
and Exchange Commission for the third quarter ended Oct. 29,
2006.
The company's filing with the SEC on Dec. 11, 2006, disclosed
that the delay is due to the substantial resources devoted in
completing its annual report on Form 10-K for fiscal 2006, filed
on Oct. 31, 2006, and its quarterly reports on Form 10-Q for the
first three quarters of fiscal 2006, filed on Nov. 9, 2006.
In addition, the company has also been devoting substantial
resources to complete its quarterly reports on Form 10-Q for the
first two quarters of fiscal 2007. Due to the substantial
resources devoted to these reports, the company was unable to
finalize its quarterly report on Form 10-Q for the third quarter
of fiscal 2007 before the filing deadline of Dec. 8, 2006.
Michael C. Phalen, chief financial officer, also disclosed that
the company has not yet filed its Quarterly Reports on Form 10-Q
for the first two quarters of fiscal 2007 or the third quarter
of fiscal 2005 or its Annual Reports on Form 11-K for the
periods ended Dec. 31, 2005 and 2004.
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed. There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.
Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.
Freedom Rings operates six out of the approximately 360 Krispy
Kreme stores and 50 satellites located worldwide. The company
filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268).
M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew
Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP,
represent the Debtor in its restructuring efforts. When the
Debtor filed for protection from its creditors, it estimated
US$10 million to US$50 million in assets and debts.
Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-
00932). The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately
US$10 million to Westward Dough, the Krispy Kreme area developer
for Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts. When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to
US$50 million.
KremeKo Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings. The Monitor
is attempting to sell the KremeKo business.
The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.
HYNIX SEMICONDUCTOR: Claims Fastest PC Memory Chip
--------------------------------------------------
Hynix Semiconductor Inc. has developed the world's fastest
memory chip for personal computers, the Korea Government's Web
site -- Korea.net -- reports, citing a company statement.
Recently, Hynix also claimed it has developed the world's
fastest and smallest mobile DRAM. As reported in the Troubled
Company Reporter - Asia Pacific on Dec. 6, 2006, Hynix launched
a 512MB mobile DRAM in 8mm x 10mm size.
According to Hynix, the fastest PC memory chip, which was
developed using a 60-nano engraving technique, has passed a
verification test by Intel. The chip operates at a clock speed
of 800 MHz, faster than current ones in the market that work on
667 MHz, Korean.net relates.
The new 1-gigabyte, 300 MHz DDR2 DRAM module is also said to be
50% more cost-efficient than previous chips made by the 80-nano
method.
The company intends to start mass-production of the chip early
next year.
Hynix disclosed that it has developed new technologies named "3-
D Transistor" and "3-Tier Wiring Technique" in improving the
transaction speed and the capacity of the chip's memory.
About Hynix Semiconductor
Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.
===============
M A L A Y S I A
===============
AKER KVAERNER: European Commission Okays Unit Sale to Metso Oyj
---------------------------------------------------------------
The European Commission has approved the sale of Aker Kvaerner
ASA's Pulping and Power businesses to Metso Oyj, Bloomberg News
reports.
The regulator cleared the deal after Metso pledged to dispose of
its cooking and bleaching equipment-making unit to Groupe
Laperriere & Verreault Inc, Bloomberg News relays.
"There is no longer a serious risk that this proposed takeover
could significantly reduce competition in the pulp-equipment
market," Competition Commissioner Neelie Kroes said.
The companies expect to complete the sale by Dec. 31, with the
final transaction value based on the unit's balance sheet as of
the same date. The estimated deal value is around NOK3 billion
(EUR335 million). Aker expects the deal to have net cash effect
of around NOK2.6 billion and net gain compared to book value of
about NOK2.4 billion. The profit earned during 2006 will be
consolidated into Aker Kvaerner's accounts.
The unit will be integrated into Metso once the sale is
completed, Aker said in a statement.
Acquiring Aker's pulping unit will allow Metso add technology
for chemical pulping mills and seek growth as paper prices are
rebounding from a 20% slump for the past five years.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of around EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.
The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.
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.
AKER KVAERNER: Inks NOK900-Mln Service Deal with ConocoPhillips
---------------------------------------------------------------
ConocoPhillips has awarded Aker Kvaerner ASA a service contract
for provision of personnel and equipment for well intervention
services on the Norwegian Continental Shelf.
The firm contract period is three years with an estimated value
of NOK900 million. The contract includes an option to extend
another 2 x 2 years.
"This is a strategically important contract which ensures Aker
Kvaerner Well Service's position as the leading provider of well
intervention services on the Norwegian Continental Shelf," said
Mads Andersen, Executive Vice President in Aker Kvaerner.
The scope of work comprises mechanical wireline services,
wireline tractor services and cased and open hole logging
services. The work will be undertaken by the Aker Kvaerner
subsidiary, Aker Kvaerner Well Service in Stavanger. Data
acquisitions services are subcontracted to Baker Atlas.
Through this agreement, Aker Kvaerner continues a good
cooperation with an important client.
"We look forward to jointly developing and implementing new well
intervention technologies that will further enhance safety and
increase operational efficiency," says Ole Petter Thomesen,
President of Aker Kvaerner Well Service.
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.
CELESTICA INC: Expects Lower 2006 4th Qtr. Revenues and Profits
---------------------------------------------------------------
Celestica Inc. has disclosed lower than expected forecasts on
its profits and sales for the fourth quarter of 2006 due to
fewer orders by its customers, reported John Stebbins of
Bloomberg News.
The global electronics company told Bloomberg that it predicted
around US$2.2 billion to US$2.25 billion of revenue instead of
the October forecast of US$2.25 billion to US$2.45 billion,
clearly less than the US$2.27 billion average anticipated by
Bloomberg analysts.
The company disclosed that the revision in revenue is due to
recent demand reductions from several customers. Included in
the revised adjusted net earnings per share is an expected net
charge of between US$0.08 to US$0.12 resulting predominantly
from an increase in inventory provisions at its Monterrey,
Mexico facility
The company also expects cost increases in its Monterrey plant
in Mexico, from 8 cents to 12 cents a share due to increased
inventory. The company bought more supplies and material than
what was ordered, Craig H. Muhlhauser, Celestica's chief
executive officer, told Bloomberg. "Problems should be fixed by
the second quarter," says Mr. Muhlhauser.
The company's fourth quarter results will be released on
Jan. 30, 2007.
About Celestica
Headquartered in Toronto, Ontario, Celestica, Inc. (NYSE: CLS,
TSX: CLS/SV) -- http://www.celestica.com/-- is a world leader
in the delivery of innovative electronics manufacturing
services. Celestica operates a highly sophisticated global
manufacturing network with operations in Malaysia, Brazil,
China, Ireland, Italy, Japan, Philippines, Puerto Rico, and the
United Kingdom, among others, providing a broad range of
integrated services and solutions to original equipment
manufacturers. Celestica's expertise in quality, technology and
supply chain management, enables the company to provide
competitive advantage to its customers by improving time-to-
market, scalability and manufacturing efficiency.
* * *
Moody's has affirmed its Ba3 Corporate Family Rating for
Celestica International.
Celestica carries Fitch's 'BB-' issuer default and unsecured
credit facility ratings. Fitch also assigned a 'B+' rating to
the company's senior subordinated debt. Fitch said the Rating
Outlook is Stable.
In February 2005, Moody's Investors Service lowered Celestica's
senior implied rating to Ba3 from Ba2, senior unsecured issuer
rating to B1 from Ba3 and the subordinated notes rating to B2
from Ba3.
CELESTICA INC: Updates Guidance for Quarter Ending Dec. 31, 2006
----------------------------------------------------------------
Celestica Inc. provided an update to its financial guidance for
the fourth quarter ending Dec. 31, 2006.
Based on its current estimates, the company now expects revenue
in the range of US$2.20 to US$2.25 billion, and adjusted net
earnings per share of US$0.00 to US$0.06. The company's
previous guidance for the fourth quarter, which was provided on
Oct. 26, 2006, was for revenue of US$2.25 to US$2.45 billion and
US$0.15 to US$0.23 adjusted net earnings per share.
The revision in revenue is due to recent demand reductions from
several customers. Included in the revised adjusted net
earnings per share is an expected net charge of between US$0.08
to US$0.12 resulting predominantly from an increase in inventory
provisions at the Monterrey, Mexico facility.
Headquartered in Toronto, Ontario, Celestica, Inc. (NYSE: CLS,
TSX: CLS/SV) -- http://www.celestica.com/-- is a world leader
in the delivery of innovative electronics manufacturing
services. Celestica operates a highly sophisticated global
manufacturing network with operations in Malaysia, Brazil,
China, Ireland, Italy, Japan, Philippines, Puerto Rico, and the
United Kingdom, among others, providing a broad range of
integrated services and solutions to original equipment
manufacturers. Celestica's expertise in quality, technology and
supply chain management, enables the company to provide
competitive advantage to its customers by improving time-to-
market, scalability and manufacturing efficiency.
* * *
Moody's has affirmed its Ba3 Corporate Family Rating for
Celestica International.
Celestica carries Fitch's 'BB-' issuer default and unsecured
credit facility ratings. Fitch also assigned a 'B+' rating to
the company's senior subordinated debt. Fitch said the Rating
Outlook is Stable.
In February 2005, Moody's Investors Service lowered Celestica's
senior implied rating to Ba3 from Ba2, senior unsecured issuer
rating to B1 from Ba3 and the subordinated notes rating to B2
from Ba3.
FALCONBRIDGE LTD: Xstrata Guarantees Notes and Preferred Shares
---------------------------------------------------------------
Xstrata plc has fully and unconditionally guaranteed
Falconbridge Ltd.'s Notes and its cumulative redeemable
preferred shares, Series 2, Series 3 and Series H.
Falconbridge will not file interim financial statements for the
nine months ended Sept. 30, 2006, as it has obtained an order
from Canadian securities regulators permitting Falconbridge to
satisfy its continuous disclosure obligations as a reporting
issuer by filing Xstrata's U.K. disclosure documents in place of
disclosure documents relating solely to Falconbridge.
These senior debt of Falconbridge has been guaranteed by
Xstrata:
* US$250 million principal amount of 6.2% notes
due June 15, 2035;
* US$250 million principal amount of 5.5% notes
due June 15, 2017;
* US$350 million principal amount of 6% notes
due Oct. 15, 2015;
* US$250 million principal amount of 5.375% notes
due June 1, 2015;
* US$250 million principal amount of 7.35% notes
due June 5, 2012;
* US$300 million principal amount of 7.25% notes
due July 15, 2012;
* US$300 million principal amount of 8.375% notes
due Feb. 15, 2011; and
* CDN$175 million principal amount of 8.5% debentures
due Dec. 8, 2008.
The guarantee of Falconbridge's Notes was implemented by
amending the trust indentures pursuant to which the Notes were
issued. Pursuant to the terms of the Note Indentures, as
amended by supplemental indentures to implement the guarantees,
Xstrata has fully and unconditionally guaranteed the payment,
within 15 days of when due, of the principal and interest owing
by Falconbridge to the holders of the Notes. Computershare
Trust Company of Canada is the trustee for the holders of the
Notes under the terms of the Note Indentures.
The guarantee of the Preferred Shares is governed by the terms
of a guarantee indenture entered into by Xstrata, Falconbridge
and Computershare Trust Company of Canada, as guarantee trustee.
Pursuant to the terms of the Guarantee Indenture, Xstrata has
fully and unconditionally guaranteed in favor of the holders of
the Preferred Shares the payment, within 15 days of when due, of
all financial liabilities and obligations of Falconbridge to
such holders under the terms of the Preferred Shares, whether in
respect of:
-- any accrued and unpaid dividends on the
Preferred Shares, regardless of the ability
of Falconbridge to satisfy any financial or
legal condition to the declaration or payment
of dividends;
-- the redemption price and all accrued and unpaid
dividends to the date of redemption with respect to
the Preferred Shares called for redemption; or
-- the liquidation amount payable on the
Preferred Shares upon a voluntary or
involuntary dissolution, liquidation or winding up
of Falconbridge, without regard to the amount of assets
of Falconbridge available for distribution.
Xstrata's obligation to make a guarantee payment may be
satisfied by direct payment of the required amounts by Xstrata
to the holders of Preferred Shares entitled to those payments or
by causing Falconbridge to pay those amounts to the holders.
Structural Subordination
Xstrata's guarantees of the Notes and the Preferred Shares
constitute unsecured obligations of Xstrata.
The terms of the guarantees do not limit the ability of Xstrata
to incur additional indebtedness, nor do they limit the ability
of Xstrata's subsidiaries or joint ventures to incur additional
secured or unsecured indebtedness. Xstrata's obligations under
the guarantees will be effectively subordinate to all
indebtedness and other liabilities of Xstrata's subsidiaries and
joint ventures, except to the extent Xstrata is a creditor of
such subsidiaries or joint ventures ranking at least pari passu
with such other creditors.
The Notes and the Preferred Shares, as guaranteed by Xstrata,
have been rated by the following rating agencies as follows:
Notes Preferred Shares
Rating agency Rating Rating
------------- ------ ----------------
Moody's Investor Service Baa2 not rated
Standard & Poor's BBB+ BBB-
Dominion Bond Rating
Service Limited BBB(high) Pfd-3(high)
Holders of the Notes and the Preferred Shares should consult the
Rating Agencies with respect to the interpretation of the
foregoing ratings and their implications.
The credit ratings accorded to the Notes and the Preferred
Shares by the Rating Agencies are not recommendations to
purchase, hold or sell the Notes or the Preferred Shares
inasmuch as such ratings do not comment as to market price or
suitability for a particular investor. There is no assurance
that the ratings will remain in effect for any period of time or
that the ratings will not be revised or withdrawn entirely by
one or more of the Rating Agencies at any time in the future if,
in the judgment of one or more of the Rating Agencies,
circumstances so warrant.
Tax Consequences of Guarantee of Preferred Shares
The guarantee of the Preferred Shares constitutes a 'guarantee
agreement' for purposes of subsection 112(2.2) of the Income Tax
Act (Canada). Accordingly, a dividend received on a Preferred
Share of a particular series by a holder of Preferred Shares
that is a corporation resident in Canada for purposes of the
Tax Act generally will not be deductible in computing the
taxable income of the corporation unless the Preferred Share is
of a class or series of shares of the capital stock of
Falconbridge that is listed on a prescribed stock exchange,
which includes the Toronto Stock Exchange and the corporation,
and persons with which the corporation does not deal at arm's
length, or any partnership or, in certain circumstances, trust
of which the corporation or any such person is a member or
beneficiary, do not, at the time the dividend is received,
receive dividends in respect of more than 10% of the issued
and outstanding shares to which the guarantee agreement applies.
Holders of Falconbridge Preferred Shares to which these
provisions may be relevant are urged to consult their own tax
advisors.
Guarantee of Payment
Each guarantee constitutes a guarantee of payment and not of
collection. This means that legal proceedings may be brought
directly against Xstrata to enforce its obligations under each
guarantee without first instituting a legal proceeding against
Falconbridge. The guarantees of the Notes will not be
discharged except by payment in full of Falconbridge's
obligations to the holders of the Notes. The guarantee of the
Preferred Shares will not be discharged except by payment of the
related guaranteed payments in full to the extent not paid by
Falconbridge or upon the cancellation of the Preferred Shares.
Amendments and Assignment
The guarantees of the Notes may not be amended without the prior
approval of the holders of the Notes in accordance with the
terms of the Note Indentures, provided that no approval of the
holders of the Notes is required for certain changes that do not
adversely affect the rights of holders of the Notes.
The guarantee of the Preferred Shares may not be amended without
the prior approval of the holders representing not less than a
majority of the aggregate liquidation amount of the outstanding
Preferred Shares, or, in the event that a meeting is held to
obtain the consent of the holders of the Preferred Shares,
representing not less than a majority of the aggregate
liquidation amount of the outstanding Preferred Shares held by
holders of the Preferred Shares present at the meeting, provided
that no approval of the holders of the Preferred Shares is
required for certain changes that do not adversely affect the
rights of holders of the Preferred Shares. For purposes of the
guarantee, a meeting of the holders of the Preferred Shares
requires a quorum consisting of holders of the Preferred Shares
holding at least 25% of the aggregate liquidation amount of the
outstanding Preferred Shares.
The guarantees of the Notes and the Preferred Shares will be
binding on the successors and assigns of Xstrata and will enure
to the benefit of the holders of the Notes and Preferred Shares
then outstanding.
Termination
The guarantee of the Notes will terminate upon the repayment in
full and discharge of all Notes. The guarantee of the Preferred
Shares will terminate and be of no further force and effect upon
full payment of the applicable redemption price of all Preferred
Shares, including any accrued and unpaid dividends at the time
of redemption.
Governing Law
The guarantees of the Notes (other than the CDN$175 million 8.5%
debentures due 2008) are governed by and construed in accordance
with the laws of the State of New York except with respect to
the rights, powers, duties and responsibilities of the Note
Trustee under the Note Indentures, which are governed by the
laws of the Province of Ontario.
The guarantees of the CDN$175 million 8.5% debentures due 2008
and the Preferred Shares are governed by and construed in
accordance with the laws of the Province of Ontario.
Consent to Jurisdiction and Service
Xstrata has appointed CT Corporation System, 111 Eighth Avenue,
New York, New York, as its agent for service of process in any
suit, action or proceeding arising out of or relating to its
guarantee of the Notes (other than the CDN$175 million 8.5%
debentures due 2008) and for actions brought under United States
federal or state securities laws brought in any federal or state
court located in the City of New York and submits to such
jurisdiction.
Xstrata has appointed Falconbridge as its agent for service of
process in any suit, action or proceeding arising out of or
relating to its guarantee of the Preferred Shares or the
CDN$175 million 8.5% debentures due 2008 and for actions brought
under provincial securities laws brought in any court located in
the City of Toronto and submits to such jurisdiction.
Information Concerning the Trustee
Computershare Trust Company of Canada is the Note Trustee under
the terms of the Note Indentures and is the guarantee trustee
for the holders of the Preferred Shares. The terms of the
Guarantee Indenture and the terms of the Note Indentures provide
that, except in certain circumstances, no action may be brought
against Xstrata to enforce the guarantees except by the Trustee.
Changes to Falconbridge
Continuous Disclosure Reporting
In connection with Xstrata's guarantees of the Notes and the
Preferred Shares, the securities commissions of each Canadian
province -- other than Prince Edward Island -- and territory
have granted Falconbridge an exemption from certain requirements
of the securities legislation that will permit Falconbridge to
satisfy its continuous disclosure obligations as a reporting
issuer by filing Xstrata's U.K. disclosure documents, including
Xstrata's annual and interim financial statements, in place of
disclosure documents relating solely to Falconbridge. As a
result of this relief, in lieu of the quarterly interim
financial statements that Falconbridge has historically filed,
Falconbridge will file on SEDAR Xstrata's annual and half-yearly
financial statements, prepared in accordance with International
Financial Reporting Standards. As a result, Falconbridge will
not be filing interim financial statements for the nine months
ended September 30, 2006. The terms of the exemption require
that Falconbridge file on SEDAR copies of all documents filed by
Xstrata pursuant to the continuous disclosure requirements of
the United Kingdom.
Falconbridge will file Xstrata's financial statements on SEDAR
at the same time they are filed in the United Kingdom. The
continuous disclosure requirements of the United Kingdom require
that Xstrata file its financial statements as soon as possible
after they have been approved, with annual financial statements
filed no later than six months after its Dec. 31 year end and
half yearly financial statements filed no later than 90 days
after the end of the six month period ending June 30. Xstrata
generally publishes its annual financial statements in March and
its half yearly financial statements in August.
The availability of the exemption is subject to Falconbridge and
Xstrata satisfying a number of other conditions that are set
forth in the decision of the securities commissions. A copy of
the decision is available on the website of the Ontario
Securities Commission at http://www.osc.gov.on.ca/
About Xstrata
Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges. The Group is and has approximately 24,000 employees
worldwide, including contractors.
Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver. The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the United Kingdom and
Canada. Xstrata holds a 97% stake in Falconbridge.
About Falconbridge
Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets. Its primary focus is the
identification and development of world-class copper and nickel
orebodies. It employs 14,500 people at its operations and
offices in 18 countries, including Malaysia. The company owns
nickel mines in Canada and the Dominican Republic and operates a
refinery and sulfuric acid plant in Norway. It is also a major
producer of copper (38% of sales) through its Kidd mine in
Canada and its stake in Chile's Collahuasi mine and Lomas Bayas
mine. Its other products include cobalt, platinum group metals,
and zinc.
* * *
Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.
MYCOM BERHAD: Inks Pact to Underwrite up to 31,947,414 Shares
-------------------------------------------------------------
Mycom Berhad on December 13, 2006, entered into an underwriting
agreement with four parties to underwrite the open portion of up
to 31,947,414 new ordinary shares in the company:
Shares
Underwriters Underwritten
------------ ------------
OSK Securities Berhad (managing underwriter) 18,132,414
PM Securities Sdn. Bhd. 10,000,000
Alliance Investment Bank Berhad 1,000 000
Hwang-DBS Securities Berhad 2,815,000
------------
31,947,414
The shares will be issued pursuant to the Rights Issue with
Warrants representing approximately 81.36% of the total of
39,268,207 Rights Shares at an issue price of INR1.00 per Rights
Share.
Duta Equities Sdn Bhd, a major shareholder of Mycom, has given
its irrevocable undertaking to subscribe for its provisional
entitlement of 7,320,793 rights shares.
In consideration for the underwriting services, an underwriting
commission of 2.50% and a managing underwriting commission of
1.0% of the INR1.00 issue price for each of the Rights Share
underwritten will be payable to the underwriters and managing
underwriter respectively.
The underwriting agreement is available for inspection at
Mycom's registered office, Level 23, Menara Olympia, No. 8,
Jalan Raja Chulan, 50200 Kuala Lumpur during normal business
hours from Mondays to Fridays (except for public holidays) for a
period of three months starting Dec. 14.
* * *
Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.
The company is also involved in hotel operation, provision of
management and financial services and investment holding.
Operations of the Group are carried out in Malaysia and South
Africa.
Mycom is in the advanced stage of negotiations to settle its
foreign debts. The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the company's accumulated losses.
As of Sept. 30, 2006, Mycom's balance sheets show total assets
of MYR815.37 million and total liabilities of MYR1.33 billion,
resulting in shareholders' deficit MYR518.41 million.
NORTH BORNEO: Faces Legal Suit from Southern Bank
-------------------------------------------------
On December 12, 2006, The North Borneo Corp Bhd informed the
Bursa Malaysia Securities Bhd regarding a lawsuit filed against
the company by Southern Investment Bank Bhd.
The company will serve as the second defendant involving a claim
of MYR151,619 plus interests and costs for outstanding
professional fees and disbursements made by the bank regarding
the company's Proposed Revised Rescue Cum Corporate
Restructuring Scheme.
The Court sets hearing of the case on January 1, 2007.
* * *
Headquartered in Sabah, Malaysia, The North Borneo Corporation
Berhad engages in the management of forest management unit and
investment holding. The Group operates in Malaysia and Bermuda.
Due to its continuous losses, the Kuala Lumpur Stock Exchange
placed the Company under the Practice Note 4/2001 category in
April 2001 and was ordered to start regularizing its financial
condition. On April 28, 2005, the Securities Commission has
agreed to North Borneo's proposal to dispose of its business as
part of the Company's efforts to regularize its finances and
restructure its debts. The Plan, however, met objections from
creditors. On March 6, 2006, two scheme creditors of North
Borneo -- Sabah Development Bank and Prokhas Sdn Bhd -- withdrew
their support of the Company's proposed debt restructuring,
saying that they are no longer agreeable to the terms of the
planned business disposal as part of the restructuring program.
The Company's March 31, 2006 balance sheet showed total assets
of MYR1,662,000 and total liabilities of MYR163,379,000
resulting in a MYR161,717,000 deficit in shareholders' funds.
OLYMPIA INDUSTRIES: Extends Assets Sale and Purchase Agreement
--------------------------------------------------------------
On December 7, 2006, Olympia Industries Bhd entered into two
separate agreements for a six-month extension of time to fulfill
conditions of two sale and purchase agreements.
The first agreement pertains to a conditional land acquisition
agreement and a supplemental agreement between Mycom and Kenny
Height Developments Sdn Bhd for the acquisition of approximately
41.14 acres of land situated at Mukim Batu, Wilayah Persekutuan,
for MYR261,000,000.
The second agreement is a conditional-assets acquisition deal
and supplemental agreement between Mycom, and Olympia Industries
Berhad and its subsidiaries.
Under the first agreement, Mycom will acquire:
* 100% equity interest in Olympia Land Berhad;
* 100% equity interest in City Properties Development Sdn
Bhd;
* 100% equity interest in Olympia Plaza Sdn Bhd;
* 100% equity interest in Rambai Realty Sdn Bhd;
* 70% equity interest in Maswarna Colour Coatings Sdn Bhd;
* 100% equity interest in Salhalfa Sdn Berhad;
* 100% equity interest in Mascon Construction Sdn Bhd;
together with
* a four-storey shop office situated at Taman Shamelin
Perkasa, Kuala Lumpur;
* a factory unit situated at Beranang Industrial Estate,
Selangor; and
* a five-acre land situated at District of Kota Kinabalu,
Sabah.
Mycom agreed to pay a total of MYR56,377,660 for the Olympia
assets.
The date for fulfillment of the conditions precedent of the two
conditional sale and purchase agreements has been further
extended by six months from September 12, 2006, to March 11,
2007, or to a later date as the parties may agree.
* * *
Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development. Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.
Operations are carried out in Malaysia, Papua New Guinea and
Singapore. The Company has incurred continuous losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.
Olympia's balance sheet as of Sept. 30, 2006, reflected MYR1.01
billion in total assets and MYR2.07 billion in total
liabilities, resulting to a shareholders' deficit of MYR1.06
billion.
OLYMPIA INDUSTRIES: Four Underwriters Takes 91, 798 New Shares
--------------------------------------------------------------
Olympia Industries Bhd signed an agreement with five
underwriters to underwrite the open portion of up to 91,798,206
new ordinary shares of INR1.00 each in the company to be issued
pursuant to the Rights Issue with Warrants representing
approximately 90.28% of the total of 101,676,239 Rights Shares
at an issue price of INR1.00 per Rights Share.
The five underwriters and the respective Right Shares
underwritten are:
Right Shares
Underwriters Underwritten
------------ ------------
OSK Securities Berhad (managing underwriter) 45,798,206
TA Securities Holdings Berhad 5,000,000
Alliance Investment Bank Berhad 1,000,000
M & A Securities Sdn Bhd 15,000,000
Kuala Lumpur City Securities Sdn Bhd 25,000,000
------------
91,798,206
Duta Equities Sdn Bhd, a major shareholder of Mycom, which in
turn a major shareholder of OIB, has given its irrevocable
undertaking to subscribe for its provisional entitlement of
9,878,033 rights shares.
An underwriting commission of 2.50% and a managing underwriting
commission of 1.0% of the issue price of RM1.00 for each of the
Rights Share underwritten will be payable to the underwriters
and managing underwriter respectively.
* * *
Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development. Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.
Operations are carried out in Malaysia, Papua New Guinea and
Singapore. The Company has incurred continuous losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.
Olympia's balance sheet as of Sept. 30, 2006, reflected MYR1.01
billion in total assets and MYR2.07 billion in total
liabilities, resulting to a shareholders' deficit of MYR1.06
billion.
SOLECTRON CORP: S&P Lifts BB- Rating on Solid Financial Profile
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured ratings on Milpitas, Calif -based Solectron
Corp. to 'BB-' from 'B+', and its subordinated debt rating to
'B' from 'B-'. The outlook is revised to stable.
"The rating action is based on the company's solid financial
profile, which has proven resilient despite significant
operating challenges, and modest expectations for improved
revenue and profitability performance in the near to mid term,"
said Standard & Poor's credit analyst Lucy Patricola.
Ratings reflect operating profitability at the low end of the
range of its peers in the highly competitive electronics
manufacturing services industry and expectations of modest,
incremental improvements, offset by a financial profile that is
stronger than the corporate rating with good liquidity and light
leverage. The company had about US$834 million of lease-
adjusted debt outstanding at Aug. 31, 2006.
Sales continue a four-quarter trend of gradual sequential
improvement from the trough level of August 2005, up 7%
sequentially and up 21% over the year earlier period. Market
recovery is broad-based, with all end markets expanding in the
August quarter. Revenue from nontraditional EMS markets,
including consumer, industrial and automotive was up 32%
compared to the year earlier quarter. Networking was up 21% but
remains volatile because of revenue concentration. Revenues are
likely to continue to gradually expand, although the company may
experience some quarter-to-quarter volatility because of uneven
order patterns for its key customer, Cisco, and the increasing
share of seasonal consumer business.
Headquartered in Milpitas, California, Solectron Corporation
(NYSE: SLR) -- http://www.solectron.com/-- provides a full
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.
SOLUTIA INC: Has Until March 16 to Solicit Plan Acceptances
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
extended Solutia Inc. and its debtor-affiliates' exclusive
period to file a plan of reorganization through and including
Jan. 15, 2007, and their exclusive period to solicit acceptances
of the plan through and including March 16, 2007.
The Extension Order is without prejudice to:
(a) the Debtors moving for further extensions of the
Exclusive Periods pursuant to Section 1121(d) of the
Bankruptcy Code; and
(b) the rights of parties-in-interest to request that the
Exclusive Periods be shortened upon appropriate notice
and motion and the Debtors' and other parties' rights to
oppose the motion.
Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications. Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.
The company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts. Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.
=====================
N E W Z E A L A N D
=====================
AIR NEW ZEALAND: To Boost Regional Services in 2007
---------------------------------------------------
Air New Zealand Limited will launch three new direct regional
services and increase capacity on selected routes next year.
The move comes off the back of the announcement to buy three
additional Bombardier Q300 aircraft for Air Nelson.
As reported in the Troubled Company Reporter - Asia Pacific on
November 7, 2006, Air New Zealand has placed a firm order for
three 50-seat Bombardier Q300 turboprop airliners on behalf of
its wholly owned regional airline subsidiary Air Nelson.
"The introduction of the new non-stop Air New Zealand Link
routes will commence in October with the launch of Invercargill-
Wellington and New Plymouth-Christchurch. December will see the
launch of a direct Tauranga-Christchurch service," Air New
Zealand Group General Manager of Short Haul Airlines Norm
Thompson said.
Additionally, frequency on the Dunedin-Wellington and
Queenstown-Wellington non-stop routes will increase in December
2007 with the use of Mount Cook's 66 seat ATR72 aircraft.
Mr. Thompson said the increase in regional operations will mean
the creation of new jobs, noting that "additional flight
attendants will be recruited and regional crew bases extended to
support the increased Air Nelson operations."
As at December 2006, twelve Q300s are in service, progressively
replacing Air Nelson's Saab 340A.
Mr. Thompson said the Q300s had proven the right choice for
regional customers, who were providing overwhelmingly positive
feedback on the comfort and reliability of the aircraft.
Confirmed schedules and ticket sale dates for the new routes
will be advised in the New Year.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.
As reported in the Troubled Company Reporter - Asia Pacific on
September 2, 2005, Moody's Investors Service affirmed its Ba1
issuer rating on Air New Zealand Limited after the airline
announced its annual results for FY2005. Air NZ's rating
reflected its dominant position in the New Zealand domestic
market, with around 80% market share, and the profitability of
domestic operations following their restructuring to a low-cost
network model. Also supporting Air NZ's rating was its solid
liquidity position, with cash balances of NZ$1.071 billion held
as at June 30, 2005.
However, while Air NZ has a solid position in New Zealand and
other parts of the international network are performing well,
intense competition on trans-Tasman routes has resulted in it
being unprofitable for Air NZ. International competition also
limits Air NZ's ability to expand. Its management is also aware
of the airline's vulnerability to external shocks and the
actions of key competitors.
BABA LOUIE'S: Petition Hearing Slated for January 29
----------------------------------------------------
An application to liquidate the business of Baba Louie's Ltd
will be heard before the High Court of Christchurch on Jan. 29,
2007, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 15, 2006.
The solicitor for the Petitioner can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception, 518 Colombo Street
(P.O. Box 1782), Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
B C AND P: Court Sets Liquidation Hearing on January 30
-------------------------------------------------------
A liquidation petition filed against B C and P Ltd will be heard
before the High Court of Hamilton on Jan. 30, 2007, at
10:45 a.m.
Tirohanga Group Ltd filed the petition on Nov. 20, 2006.
The solicitor for the Petitioner can be reached at:
Brendan Cullen
McCaw Lewis Chapman
One on London
1 London Street, Hamilton
New Zealand
DIMENSION BUILDERS: Faces Liquidation Proceedings
-------------------------------------------------
A petition to liquidate Dimension Builders Ltd will be heard
before the High Court of Christchurch on Jan. 29, 2007.
The Commissioner of Inland Revenue filed the petition with the
Court on Oct. 31, 2006.
The solicitor for the Petitioner can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception, 518 Colombo Street
(P.O. Box 1782), Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
E.MAC ENTERPRISES: Court to Hear Liquidation Petition on Jan. 29
----------------------------------------------------------------
The High Court of Christchurch will hear a liquidation petition
against E.Mac Enterprises Ltd on Jan. 29, 2007, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition on
Oct. 31, 2006.
The solicitor for the Petitioner can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception, 518 Colombo Street
(P.O. Box 1782), Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
FREEMONT DESIGN: Official Assignee Acts as Liquidator
-----------------------------------------------------
On Nov. 23, 2006, the Official Assignee of Freemont Design &
Construction Ltd was appointed as the company's liquidator.
As reported by the TCR-AP, the High Court of Auckland heard the
petition against the company on Nov. 23, 2006. Natures View
Joinery Ltd filed the petition.
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
HELA PHARMA: Court Appoints Joint Liquidators
---------------------------------------------
On Nov. 30, 2006, the High Court of Auckland appointed Grant
Robert Graham and Brendon James Gibson as joint and several
liquidators of Hela Pharma Australasia Ltd.
The TCR-AP previously reported that the Court heard a
liquidation petition filed against the company on Nov. 30, 2006.
The Joint and Several Liquidators can be reached at:
Grant Robert Graham
Brendon James Gibson
Ferrier Hodgson & Co
Level Sixteen, Tower Centre
45 Queen Street (P.O. Box 982)
Auckland
New Zealand
Telephone:(09) 307 7865
Facsimile:(09) 377 7794
IP SERVICES: Creditors to Prove Debts by December 20
----------------------------------------------------
Creditors of IP Services Ltd are required by Liquidators Arron
Leslie Heath and Jeffrey Philip Meltzer to prove their debts by
Dec. 20, 2006.
Failure to prove debts by the due date will exclude a creditor
from any distribution the company will make.
According to the TCR-AP, the High Court of Auckland heard a
liquidation petition against the company on Dec. 19, 2006.
The Liquidators can be reached at:
Arron Leslie Heath
Jeffrey Philip Meltzer
Meltzer Mason Heath
Chartered Accountants
P.O. Box 6302
Wellesley Street, Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
KEVIN PURSER: Creditors Must Lodge Claims by December 21
--------------------------------------------------------
Joint Liquidators Edward Christian Jansen and Brian Joseph
Walshe require the creditors of Kevin Purser Contracting Ltd to
file their claims by Dec. 21, 2006, and to establish any
priority claims they may have.
The Joint and Several Liquidators can be reached at:
Edward Christian Jansen
Brian Joseph Walshe
P.O. Box 30-568
Lower Hutt
New Zealand
Telephone:(04) 569 9069
R.K. ROWLAND: Liquidation Hearing Set on Jan. 30
------------------------------------------------
On Nov. 17, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against R.K. Rowland Fencing (2002) Ltd
before the High Court of Hamilton.
The petition will be heard on Jan. 30, 2007, at 10:45 a.m.
The solicitor for the Petitioner can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception, 518 Colombo Street
(P.O. Box 1782), Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
VERSOIX CUSTODIANS: Shareholders Opt to Close Business
------------------------------------------------------
On Nov. 27, 2006, the shareholders of Versoix Custodians (19)
Ltd resolved to liquidate the company's business. Accordingly,
Peter Carroll Morpeth was appointed as liquidator.
Creditors who were unable to make their claims by Dec. 18, 2006,
are excluded from any distribution of the company's assets.
The Liquidator can be reached at:
Peter Carroll Morpeth
94 Dixon Street, Wellington
New Zealand
Telephone:(04) 385 8893
Facsimile:(04) 385 8899
WHITEHEAD AND PEARS: Shareholders Opt to Liquidate Business
-----------------------------------------------------------
The shareholders of Whitehead and Pears Ltd resolved by a
special resolution to liquidate the company's business and
appointed Dominic Zame as liquidator.
The Liquidator can be reached at:
Dominic Zame
Level Five, St John House
114 The Terrace (P.O. Box 2853)
Wellington
New Zealand
Telephone:(04) 471 1776
Facsimile:(04) 916 057
=====================
P H I L I P P I N E S
=====================
BANK OF THE PHILIPPINE ISLANDS: 10% Profit in 2006 on Track
-----------------------------------------------------------
While loan demand was relatively weak for most of 2006, a strong
asset base coupled with successful disposition of bad assets
will keep the Bank of the Philippines Islands on track of its
10% profit growth target in 2006, The Philippine Star cites a
top bank official as saying.
BPI recounts that on April 7 and August 1, 2006, it has
disclosed a net income target of PHP9.0 billion.
According to BPI President Aurelio R. Montinola III, though
spreads were down for the most part of the year, consumer
lending was strong.
Net income was recorded at PHP8.1 billion in 2005 and is seen to
grow to almost PHP9 billion in 2006, The Star relates, adding
that net earnings in 2004 reached PHP6.7 billion.
The bank has sold a total of PHP17.3 billion worth of non-
performing loans in wholesale transactions, the paper says.
The Star further says BPI has sold PHP2 billion worth of bad
assets inherited from the Prudential Bank acquisition.
BPI also sold another PHP3 billion worth of real and other
properties acquired this year, the paper adds, noting that
outstanding ROPAs still for disposition next year amounts to
PHP20 billion.
BPI will continue with its retail selling with very low
discounts as the property market has improved. "We sold at
discounts from 20% to 40%, it will not be higher than say, 5%
next year," the BPI official said.
Book values of the foreclosed properties are low while their
appraised values are higher, the Star notes.
About BPI
Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is
the oldest bank in South East Asia and is the second largest
commercial bank in the Philippines in terms of assets, deposits,
loans and capital base in the year 2003. The Bank has two major
products and services categories: the first covers its deposit
taking and lending/investment activities, while the second
covers income derived from all services other than deposit
taking, lending and investing, which are generally in the form
of commissions, service charges and fees.
Moody's Investors Service gave BPI a 'B1' Long-Term Bank
Deposits Rating effective February 16, 2005. On November 2,
2006, Moody's revised the outlook of the BPI's foreign currency
long-term deposit rating of B1 to stable from negative.
DEVELOPMENT BANK: Finances PHP600-Million Oil Tanker
----------------------------------------------------
The Development Bank of the Philippines has approved a
PHP600-million term-loan facility under its Sustainable
Logistics Development Program/Domestic Shipping Modernization
Program II to Transoil Corporation of the Petrolift Group of
Companies for the acquisition of a brand new, double-hull
oil/chemical tanker. M/T Petro Carahas a capacity of 24,000
barrels.
The Petrolift Group of Companies operates a fleet of six
petroleum tankers and an LPG tanker that transports petroleum
products, liquified petroleum gas and chemical to all major
ports and depots in the country. Its clients include Pilipinas
Shell, Petron and Caltex.
The project is in anticipation of the implementation of the
International Marine Organization's new Marine Pollution
regulation requiring international black cargo tankers worldwide
to be double-hulled and double-bottomed by 2008.
About DBP
Development Bank of the Philippines --
http://www.devbankphil.com.ph/-- prides itself for being "the
Philippines's most progressive development banking institution,"
providing for the medium and long-term financing needs of
enterprises, with emphasis on small and medium-scale industries,
particularly in the countryside.
* * *
On September 4, 2006, Fitch Ratings assigned a rating of 'BB-'
to DBP's hybrid issue of up to US$130 million.
Standard & Poor's Ratings Services also assigned its 'B+' long-
term issue credit ratings to the bank's Tier-I Hybrid Security
of up to US$130 million. S&P also assigned its 'BB-/B' foreign
currency and 'BB+/B' local currency counterparty credit ratings
to DBP, with a stable outlook.
On December 4, 2006, Standard & Poor's assigned its 'BB-'rating
to the DBP's PHP2.35 billion existing lower Tier II subordinated
notes due 2016, which will have a tenor of ten years with a call
option at the end of five years. The differential between the
'BB+' counterparty credit rating and the 'BB-' rating on the
lower Tier II notes reflects the subordinated nature of the
notes.
Moody's Investors Service has revised the outlook of Development
Bank's foreign currency long-term deposit rating of B1 and local
currency long-term deposit rating of Ba2 from negative to
stable.
PHILIPPINE NATIONAL BANK: Board Approves Bad Assets Sale to ING
---------------------------------------------------------------
Philippine National Bank advises that during the Meeting of the
Board of Directors on December 15, 2006, the Board approved and
confirmed the award of a Structured Sale of the Bank's Non-
Performing Assets totaling PHP19.3 billion to ING Bank
N.V./Golden Dragon Star Equities Incorporated.
The portfolio consists of PHP15.3 billion in bad loans and
PHP3.99 billion in foreclosed assets, Eileen A. Mencias of
Manila Standard says.
According to the Standard, PNB has planned to sell as much as
PHP22 billion of bad assets in two phases until April 2007.
The Standard reveals that PNB's bad loans as of early November
amounted to PHP15 billion while foreclosed assets were estimated
at PHP5 billion to PHP7 billion.
PNB's exposure in Victorias Milling Company Inc. will not likely
be included in the sale, The Standard says, noting that
Victorias Milling, one of the bigger bad loan accounts in the
industry, is now two-thirds owned by banks, including PNB.
Victorias Milling is currently undergoing debt restructuring.
About Philippine National Bank
Philippine National Bank -- http://www.pnb.com.ph/-- is the
Philippine's first universal bank established on July 22, 1916.
The Bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units. Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance. Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services. It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.
* * *
Standard and Poor's Ratings Services has given PNB 'B' Short-
Term Foreign Issuer Credit and Short-Term Local Issuer Credit
Ratings, as well as 'B-' Long-Term Foreign Issuer Credit and
Long-Term Local Issuer Credit Ratings effective as of April 26,
2006.
On October 31, 2006, Fitch Ratings affirmed PNB's Individual
rating at 'E' and Support rating '3' after a review of the bank.
Moody's Investors Service has revised the outlook of PNB's
foreign currency long-term deposit rating of B1, local currency
senior debt rating of Ba2, and local currency subordinated debt
rating of Ba3 to stable from negative.
=================
S I N G A P O R E
=================
CIVIL GEO: Pays Dividend to Preferential and Unsecured Creditors
----------------------------------------------------------------
Civil Geo Pte Ltd, which is in liquidation, has paid the first
interim dividend to its preferential and unsecured creditors.
The company paid 100% to its preferential creditors and 1.5% to
its unsecured creditors.
Civil Geo's liquidator can be reached at:
Don M Ho, FCPA
c/o Don Ho & Associates
Certified Public Accountants
Corporate Advisory & Recoveries
Equity Plaza
20 Cecil Street #12-02 & 03
Singapore 049705
Telephone: 6532 0320 (8 lines)
Facsimile: 6532 0331
IPCOM PTE: Court Issues Wind-Up Order
-------------------------------------
The High Court of Singapore has entered an order on Dec. 8,
2006, directing the wind-up of Ipcom Pte Ltd's -- formerly known
as Inter-Photo Co Pte Ltd -- operations.
Accordingly, all creditors asserting claims against the company
are required to submit their proofs of debt to the company's
liquidators Kon Yin Tong, Wong Kian Kok, and Aw Eng Hai.
The Liquidators can be reached at:
Kon Yin Tong
Wong Kian Kok
Aw Eng Hai
47 Hill Street #05-01
Singapore Chinese Chamber of Commerce
& Industry Building
Singapore 179365
ODYSSEY: Underwriters Exercise Overallotment Option to Buy Stock
----------------------------------------------------------------
Odyssey Re Holdings Corp. disclosed that its underwriters have
exercised their overallotment option to purchase an additional
1,165,000 shares of ORH common stock in connection with the
underwritten public offering priced on Dec. 4, 2006. Including
the over-allotment shares, 10,165,000 shares were sold
at a price of US$34.60 per share, resulting in net proceeds to
Fairfax Financial Holdings Limited of approximately US$338
million. The offering was jointly led by Citigroup Corporate
and Investment Banking and Wachovia Capital Markets, LLC.
Fairfax, which continues to own a majority of the shares of
Odyssey Re after the offering, intends to use the proceeds from
the offering for general corporate purposes, which may include
opportunistically effecting open market or privately negotiated
repurchases of its outstanding debt or shares. Odyssey Re will
not receive any proceeds from the sale of the shares.
A written prospectus relating to the offering may be obtained
from:
Citigroup Corporate and Investment Banking
Brooklyn Army Terminal
140 58th Street, 8th Floor
Brooklyn, NY 11220
Telephone: 718-765-6732;
-- or --
Wachovia Capital Markets, LLC
Attn: Equity Syndicate
375 Park Avenue, 4th Floor
New York, NY 10152
e-mail: equity.syndicate@wachovia.com
About Odyssey Re
Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance. Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited. The company underwrites through offices in the United
States, London, Paris, Toronto, Mexico City and Singapore.
Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.
* * *
Odyssey Re Holdings Corp.'s preferred stock carries a Ba2 rating
from Moody's and a BB rating from Fitch. Fitch also gave the
company senior unsecured debt and long-term issuer default
ratings of BB+.
PACIFIC CENTURY: Indirect Subsidiary Inks Purchase Agreement
------------------------------------------------------------
Pacific Century Regional Developments Limited disclosed that
Shabhala International Limited, an indirect wholly owned
subsidiary of Pacific Century Insurance Holdings Limited, which
in turn is a subsidiary of pacific Century, has, on Dec. 13,
2006, inked a Share Purchase Agreement worth HK$1,472,295,000
with:
(a) HKL Quarry Bay Limited, to purchase the entire issued
share capital of HKL (King's Road);
(b) The Hong Kong Land Company Limited "HKLC" to purchase the
entire issued share capital of a shareholder's loan due
by HKL (King's Road); and
(c) The Hongkong Land Property Company Limited, to purchase
the entire issued share capital of Foundasia.
The consideration price of HK$1,472,295,000, which will be
funded from internal resources and bank borrowings of PCIH will
be paid through:
(a) an initial deposit of HK$30,000,000, which was paid by
Shabhala International on signing of the Share Purchase
Agreement;
(b) a further deposit of HK$117,229,500, which is payable
within 14 days of signing of the Share Purchase
Agreement; and
(c) the balance consideration of HK$1,325,065,500 is payable
on completion, which will take place on March 31, 2007,
or earlier that is conditional upon:
-- the passing of a resolution to approve the Share Purchase
Agreement at the company's general meeting, in accordance
with the Listing Rules, or the company's obtaining of all
necessary consents required under the Listing Rules;
-- satisfaction of Shabhala International that:
(i) HKL (Quarry Bay) has legal and beneficial title to the
shares of HKL (King's Road) free from encumbrances;
(ii) the shareholders' loans are due and owing; and
(iii) Foundasia has good title and is the sole registered
owner to the Property in accordance with section 13 of
the Conveyancing and Property Ordinance.
In the event that the above conditions are not satisfied by
March 31, 2007, the transaction will not proceed.
The Group entered the Share Purchase Agreement because the Group
intends to hold the Property as a long-term investment, which
offers attractive yield with long term capital appreciation
potential. The Group currently utilizes approximately 200,000
square feet of office space for its corporate and insurance
operations at various locations in Hong Kong. The majority of
the existing leases are expected to expire in the next two to
eight years. Subject to existing tenancy agreements, the Group
intends to move its operations to the Property in phases so that
it can benefit from the certainty of future rental expenses and
the improved efficiency of operating under one roof.
About Pacific Century
Pacific Century Regional Developments Limited is a Singapore
based company with operations in Hong Kong, China, Vietnam and
India. The group's principal activities include the provision
of international, local and mobile telecommunications services.
Other activities include sale and rental of telecommunication
equipment, provision of life insurance services, investment in
and development of infrastructure and properties, investment in
and development of technology-related businesses, Internet and
interactive multimedia services, provision of computer,
engineering and other technical services, and hotel operations.
* * *
The company has remained insolvent for the two consecutive years
from April 2005 up to the present.
According to a TCR-AP report on Nov. 17, 2006, the company has a
US$107.11 million shareholder's deficit on total assets of
US$1.38 billion.
REFCO INC: Judge Drain Confirms Modified Joint Chapter 11 Plan
--------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York confirmed Dec. 15 the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates
LLC, enabling the companies' expeditious completion of an
orderly wind-up of their businesses.
"We are delighted to have achieved this milestone," said
Harrison J. Goldin, Refco's chief executive officer. "It
represents the culmination of an arduous process, but provides
the optimal outcome for all involved."
Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital
Markets added, "We are committed to expediting the consummation
of the Plan and anticipate making a substantial distribution to
creditors before year end."
The Plan, which is premised on a series of interdependent
settlements and compromises, was supported by all the companies'
major constituencies, including both official committees of
unsecured creditors, secured lenders, bondholders, certain
customer groups and certain former equity holders; and it
represents the culmination over just 14 months of protracted
negotiations in one of the most complex bankruptcy cases in
history.
Under the terms of the settlements which form the basis for the
Plan, secured lenders who were owed US$717.7 million were paid
in full in cash prior to confirmation of the Plan; bondholders
are expected to receive 83.4 cents on the dollar for their
claims; Refco Capital Markets' securities customers are expected
to receive approximately 85.6 cents on the dollar for their
claims; and general unsecured creditors are expected to receive
between 23 and 37.5 cents on the dollar for their claims. In
addition, shareholders and creditors of the company will have
the opportunity to participate in recoveries obtained by both
the Litigation Trust and Private Actions Trust, which will hold
certain litigation claims.
"It is a tribute to the excellent and focused job done by the
professionals representing all parties that a consensual plan
could be confirmed in such a short time in such an exceptionally
complex and highly litigious case" said J. Gregory St. Clair, an
attorney with the law firm of Skadden, Arps, Slate, Meagher &
Flom LLP, which represents Refco. Mr. St. Clair added that he
expected the agreements outlined in the Plan to be effective by
the end of the year.
About Refco Inc.
Based in New York, Refco Inc. (OTC: RFXCQ) --
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.
SEE HUP SENG: SGX-ST Approves Listing and Quotation of Shares
-------------------------------------------------------------
On Dec. 15, 2006, See Hup Seng Limited has been granted an in-
principle approval by the Singapore Exchange Securities Trading
Limited to list and quote 28,000,000 new ordinary shares in the
SGX-Sesdaq.
The in-principle approval of SGX-ST is subject to:
(a) the company's periodic announcements on the use of the
Placement proceeds as and when the funds from the
Placement are materially disbursed, and providing a
status report on the use of the placement proceeds in the
company's annual report;
(b) compliance with continuing listing requirements; and
(c) submission of Notification in Rule 864(4) of the SGX-ST
Listing Manual, if applicable, upon any significant
changes affecting the matter in the application.
See Hup Seng also disclosed that the Placement Shares will be
allotted and issued to Merrill Lynch International and SBI E2-
Capital Asia Securities Pte Ltd pursuant to the general mandate
to issue shares passed by way of an ordinary resolution by the
company's shareholders at the extraordinary general meeting held
on Oct. 6, 2006.
The completion of the Placement Agreements is expected to take
place by Dec. 22, 2006, and the date of the listing and
quotation of the Placement Shares on the SGX-Sesdaq will
be announced in due course.
About See Hup Seng
See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is
engaged in the provision of corrosion prevention services
through a range of marine and industrial blasting and coating
methods. Its other activities are the provision of tank
cleaning, painting and coating, ship repair, shipbuilding and
scaffolding services, trading and manufacturing of blasting and
painting equipment and investment holding. The group is
domiciled in Singapore and markets its products and services
domestically and in the People's Republic of China, Hong Kong
and Cayman Islands.
Significant Doubt
As reported in the Troubled Company Reporter - Asia Pacific on
May 24, 2006, after reviewing the company's full year financials
for the year 2005, Moore Stephens -- See Hup Seng's independent
auditors -- expressed, on April 7, significant doubt in the
company's ability to continue as going concern, citing the
company's losses and net current liabilities. Moore Stephens
adds that the ability of the group and the company to continue
as going concerns is dependent the company's debt restructuring
exercise.
===============
T H A I L A N D
===============
iTV PLC: PM's Office Seeks THB100-Bil. Fine Payment in 45 Days
--------------------------------------------------------------
iTV Plc must pay its concession fee and fines to the Prime
Minister's Office amounting to almost THB100 billion within 45
days, the Bangkok Post reports citing Chulayut Hiranyawasit,
PM's Office permanent secretary.
The office, however, is willing to extend the deadline by
another 45 days if the company is unable to pay, Mr. Chulayot
told reporters in a press conference.
"At this stage, we must only abide by the Supreme Administrative
Court's ruling and implement it quickly," Mr. Chulayut added.
On December 15, 2006, the Troubled Company Reporter - Asia
Pacific reported that Thailand's Supreme Administrative Court
uphold an earlier ruling by the Central Administrative Court
voiding the arbitration ruling on concession fee payment won by
iTV in 2004.
TCR-AP recounted that in 2004, the Arbitration Court consented
to iTV's concession fee payment of THB230 million instead of the
original rate before the consent of 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.
Mr. Chulayot also said that his office had already submitted the
dispute on the calculation method of annual fee and fine to the
Office of the Attorney-General shortly after the ruling in May
by the Central Administrative Court.
Attorney-General Pachara Yutidhammadamrong told the Bangkok Post
that iTV has the right to re-appeal and an arbitration panel
will rule upon the dispute.
According to a report by the TCR-AP, iTV would have to pay THB1
billion a year to the PM's Office 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.
Mr. Pachara told the Bangkok Post that if no solution can be
reached after 45 days in the arbitration stage his agency would
seek the court to declare iTV bankrupt.
"The pressing issue is that both parties must find a solution
soon. If they fail, the station is likely to be restored as a
state asset," he said.
However, deputy Attorney-General Poramet Intarachumnum said a
new arbitration panel will be set up to rule on the case if the
station objects to the PM's Office's demand. The director-
general for conflict resolution and arbitration is examining the
PM's Office document before taking the next step, he said.
"The government has a reconciliation approach. If both parties
feel negotiation will benefit the state, they should negotiate,"
he said.
He noted that it would be too early to discuss a bankruptcy
lawsuit against the station.
Meanwhile, iTV chairman Niwatthamrong Boonsongpaisal assured his
staff that their salary and welfare benefits would not be
affected and he would do his best to keep the station going, the
Post relates. He said the board would meet on Dec. 29, 2006, to
discuss the penalty payment and consider options.
* * *
iTV Plc's principal activity is producing and broadcasting
television programs 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.
On December 15, 2006, the Troubled Company Reporter - Asia
Pacific reported that 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.
The TCR-AP reported on June 23, 2006, 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.
BANGKOK BANK: To Pay Dividends for 2006
---------------------------------------
Bangkok Bank will pay dividends this year to its shareholders in
spite of having to meet more stringent provisions standards, the
Nation reports.
Singh Tangtatswas, the bank's managing director, said its
capital base is strong enough to comply with new Bank of
Thailand's financial standards and will be able to pay a
dividend to shareholders.
The Nation recounts that Bangkok Bank paid an interim dividend
of THB1 a share for the first half of 2006.
Mr. Singh told the paper that the bank's capital adequacy ratio
had stood at around 14% of risk-weighted assets at the end of
the third quarter. That complies with International Accounting
Standard 39 and Basel II.
The Nation relates that IAS39 implementation will be completed
at the end of this month, followed by another round in June and
the last one in December next year. Basel II will be adopted in
2008.
* * *
Headquartered in Bangkok -- http://www.bangkokbank.com/--
Bangkok Bank is Thailand's largest bank, with total assets of
THBB1.498 trillion (US$39 billion) at end-June 2006.
Moody's Investors Service has upgraded on August 29, 2006,
Bangkok Bank's bank financial strength rating to D+ from D and
was re affirmed on September 20, 2006, following the military
coup in Thailand.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Fitch Ratings affirmed Bangkok Bank's Individual
rating at C.
PICNIC CORP: Appoints Thananatt and Ameer as Directors
------------------------------------------------------
On December 15, 2006, Picnic Corp Pcl's board of directors
resolved to appoint Thananatt Thianthirabunya and Ameer Singh as
Directors of the company.
The appointment was effective immediately.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 17, 2006, Picnic Corp's board appointed Pongthep
Lapvusutisin as acting managing director after Prasit Phetkat
resigned from the position.
* * *
Headquartered in Bangkok, Thailand, Picnic Corporation Public
Company Limited -- http://www.picniccorp.com/-- is engaged in
liquefied petroleum gas trading business under "Picnic Gas"
trademark transferred from Union Gas and Chemicals Company Ltd.
Picnic's financial troubles began in the middle of last year
when its two major shareholders and former executives, Supaporn
and Theeratchanon Lapvisuthisin, were charged with accounting
fraud and dishonest management. Troubles add up as it took over
B Grimm Engineering Plc, a company that had languished in the
Stock Exchange of Thailand's rehabilitation sector since the
financial crisis.
As reported by the Troubled Company Reporter - Asia Pacific,
Picnic Corporation Pcl posted a THB252.097-million net loss on
THB3 billion in revenues for the quarter ended September 30,
2006, compared with a net loss of THB1.423 billion on THB5.529
billion of revenues recorded in the same quarter the previous
year.
Going Concern Doubt
After auditing the company's financial statement for the third
quarter ended September 30, 2006, Somchai Kurujitkosol of S.K.
Accountant Services Co Ltd, raised substantial doubt on Picnic
Corp's ability to continue as a going concern.
Mr. Somchai specifically pointed at the company's strained
liquidity status, where current liability exceeds current assets
by THB1.6 million.
Mr. Somchai added that the Picnic Corp's ability to continue its
operations is dependent on its ability to negotiate its debt
restructuring and share capital increment. The auditor also
added the ability of the company to collect debt is significant
in the company's capability to continue operations.
* BOND PRICING: For the Week 18 December to 22 December 2006
------------------------------------------------------------
Issuer Coupon Maturity Price
------ ------ -------- -----
AUSTRALIA & NEW ZEALAND
-----------------------
Ainsworth Game 8.000% 12/31/09 1
Alinta Networks 5.750% 9/22/10 6
APN News & Media Ltd 7.250% 10/31/08 5
A&R Whitcoulls Group 9.500% 12/15/10 10
Arrow Energy NL 10.000% 03/31/08 1
Babcock & Brown Pty Ltd 8.500% 12/31/49 8
Becton Property Group 9.500% 06/30/10 1
BIL Finance Ltd 8.000% 10/15/07 9
Capital Properties NZ Ltd 8.500% 04/15/07 9
Capital Properties NZ Ltd 8.500% 04/15/09 8
Capital Properties NZ Ltd 8.000% 04/15/10 8
Cardno Limited 9.000% 06/30/08 5
CBH Resources 9.500% 12/16/09 1
Chrome Corporation Ltd 10.000% 02/28/08 1
Clean Seas Tuna Ltd 9.000% 09/30/08 1
Djerriwarrh Investments Ltd 6.500% 09/30/09 4
Evans & Tate Ltd 8.250% 10/29/07 1
Fletcher Building Ltd 8.600% 03/15/08 8
Fletcher Building Ltd 7.800% 03/15/09 8
Fletcher Building Ltd 8.850% 03/15/10 8
Fletcher Building Ltd 7.550% 03/15/11 8
Futuris Corporation Ltd 7.000% 12/31/07 2
Hy-Fi Securities Ltd 7.000% 08/15/08 8
Hy-Fi Securities Ltd 8.750% 08/15/08 11
Hutchison Telecoms Australia 5.500% 07/12/07 1
IMF Australia Ltd 11.500% 06/30/10 1
Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 9
Infratil Ltd 8.500% 11/15/15 8
Kagara Zinc Ltd 9.750% 05/06/07 7
Kiwi Income Properties Ltd 8.000% 06/30/10 1
Minerals Corporation Ltd 10.500% 09/30/07 1
Nuplex Industries Ltd 9.300% 09/15/07 8
Pacific Print Group Ltd 10.250% 10/15/09 11
Primelife Corporation 9.500% 12/08/06 1
Primelife Corporation 10.000% 01/31/08 1
Salomon SB Australia 4.250% 02/01/09 7
Silver Chef Ltd 10.000% 08/31/08 1
Software of Excellence 7.000% 08/09/07 2
Speirs Group Ltd. 10.000% 06/30/49 61
Tower Finance Ltd 8.750% 10/15/07 8
TrustPower Ltd 8.300% 09/15/07 9
TrustPower Ltd 8.300% 12/15/08 8
TrustPower Ltd 8.500% 09/15/12 8
TrustPower Ltd 8.500% 03/15/14 8
Vision Systems Ltd 9.000% 12/15/08 3
KOREA
-----
Korea Development Bank 7.350% 10/27/21 50
Korea Development Bank 7.450% 10/31/21 50
Korea Development Bank 7.400% 11/02/21 49
Korea Development Bank 7.310% 11/08/21 50
MALAYSIA
--------
Aliran Ihsan Resources Bhd 5.000% 11/29/11 1
AHB Holdings Bhd 5.500% 03/06/07 1
Asian Pac Bhd 4.000% 12/21/07 1
Berjaya Land Bhd 5.000% 12/30/09 1
Bumiputra-Commerce 2.500% 07/17/08 1
Camerlin Group Bhd 5.500% 07/15/07 2
Crescendo Corporation Bhd 3.000% 08/25/07 1
Dataprep Holdings Bhd 4.000% 08/06/07 1
Denko Industrial Corporation Bhd 5.000% 03/15/07 1
Eastern & Oriental Hotel 8.000% 07/25/11 2
Eden Enterprises (M) Bhd 2.500% 12/02/07 1
EG Industries Bhd 5.000% 06/16/10 1
Equine Capital Bhd 3.000% 08/26/08 1
Greatpac Holdings Bhd 2.000% 12/11/08 1
Gula Perak Bhd 6.000% 04/23/08 1
Hong Leong Industries Bhd 4.000% 06/28/07 1
Huat Lai Resources Bhd 5.000% 03/28/10 1
I-Berhad 5.000% 04/30/07 1
Insas Bhd 8.000% 04/19/09 1
Kamdar Group Bhd 3.000% 11/09/09 1
Kosmo Technology Industrial Bhd 2.000% 06/23/08 1
Kretam Holdings Bhd 1.000% 08/10/10 1
Kumpulan Jetson 5.000% 11/27/12 1
LBS Bina Group Bhd 4.000% 12/29/06 1
LBS Bina Group Bhd 4.000% 12/31/07 1
LBS Bina Group Bhd 4.000% 12/31/08 1
LBS Bina Group Bhd 4.000% 12/31/09 1
Media Prima Bhd 2.000% 07/18/08 2
Mithril Bhd 8.000% 04/05/09 1
Mithril Bhd 3.000% 04/05/12 1
Mutiara Goodyear Development Bhd 2.500% 01/15/07 1
Nam Fatt Corporation Bhd 2.000% 06/24/11 1
Pantai Holdings Bhd 5.000% 03/28/07 2
Pantai Holdings Bhd 5.000% 07/31/07 2
Pelikan International Corp Bhd 3.000% 04/08/10 1
Pelikan International Corp Bhd 3.000% 04/08/10 1
Poh Kong Holdings Bhd 3.000% 01/20/07 1
Puncak Niaga Holdings Bhd 2.500% 11/18/16 1
Ramunia Holdings 1.000% 12/20/07 1
Rashid Hussain Bhd 3.000% 12/23/12 1
Rashid Hussain Bhd 0.500% 12/24/12 1
Rhythm Consolidated Bhd 5.000% 12/17/08 1
Silver Bird Group Bhd 1.000% 02/15/09 1
Southern Steel 5.500% 07/31/08 1
Tanah Emas Corporation Bhd 2.000% 12/09/06 1
Tenaga Nasional Bhd 3.050% 05/10/09 1
Tradewinds Plantations Bhd 3.000% 02/28/16 1
WCT Land Bhd 3.000% 08/02/09 1
Wah Seong Corp 3.000% 05/21/12 3
YTL Cement Bhd 4.000% 11/10/15 1
SINGAPORE
---------
Sengkang Mall 8.000% 11/20/12 1
Structural System Singapore 11.000% 06/30/07 1
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
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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.
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