/raid1/www/Hosts/bankrupt/TCRAP_Public/061222.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, December 22, 2006, Vol. 9, No. 254
Headlines
A U S T R A L I A
AUSTRALIASIAN TRADE: Members & Creditors to Hear Wind-Up Report
AWB LIMITED: ATO Finalizes Tax Audit & Gives Good Report
BOUFFLERS ON: Undergoes Voluntary Wind-Up
DAYCOY PTY: Court Releases Wind-Up Order
EVERBLEST PTY: Schedules Members' Final Meeting on January 23
HCF NO.2: Members Resolve to Wind Up Firm
HORIZON LANDSCAPES: Court Issues Wind-Up Order
L H & B I JEWELL: Members Decide to Close Business
MULTIPLEX GROUP: Will Defend AU$100-Million Class Action
NATIONAL MEDICAL: Receivers and Managers Cease to Act
QUALITY CIVIL: To Declare Second and Final Dividend on Jan. 31
THE PITSTOP: To Hold Members' Final Meeting on January 31
UBS (AUSTRALIA): Members to Receive Liquidators' Report
WRIGHT & COMPANY: Members' Final Meeting Slated for Jan. 19
* Moody's Reveals Rating Impact of Joint Default Analysis Method
C H I N A & H O N G K O N G
ALERIS INT'L: S&P Affirms Corporate Credit Rating at B+
AUTOCAM CORP: Fails to Pay US$7.6-Mln Interest on 10.875% Notes
AUTOCAM CORP: Nonpayment of Interest Cues Moody's Default Rating
BALLY TOTAL: Appoints KPMG LLP as Independent Auditor
BROWN SHOE: Earns US$26.9 million in Quarter Ended Oct. 28, 2006
CITY TELECOM: Fitch Assigns 'B+' Long-Term Issuer Default Rating
HSINCHU INTL: Fitch Affirms C/D Individual Rating; Raises Others
I N D I A
AFFILIATED COMPUTER: Identifies US$51MM Addt'l. Non-Cash Expense
AFFILIATED COMPUTER: Promotes Two Executives as CFO's
AGILENT TECHNOLOGIES: Completes Acqiris and PXIT Acquisitions
BHARTI AIRTEL: Non-Convertible Debentures Gets CRISIL's AAA
JAMMU & KASHMIR: Reserve Bank Increases FII Holding Cap to 40%
JAMMU & KASHMIR: Share Price Reached Lifetime High on Dec. 18
JIK INDUSTRIES: Discloses Outcome of Dec. 11 Annual Gen. Meeting
JUNIPER NETWORKS: Sees US$900-Mil. Charge for Tainted Options
KOTAK MAHINDRA: Members Approve KMCC Scheme of Arrangement
KOTAK MAHINDRA: Allots 25,337 Shares Under Equity Options Plan
I N D O N E S I A
ALCATEL-LUCENT: Inks Internet Portfolio Deal with Indosat
ALCATEL-LUCENT: Supports Deutsche Telekom Initiative as Partner
BANK INDONESIA: Expects Lower Inflation Rates Over Next 2 Years
HESS CORP: Will Cut Capital Spending to US$3.6 Billion Next Year
HILTON HOTELS: Ties Up With Two Parties for New Hotels in China
MEDCO ENERGI: Expands Exploration Area in Gulf of Mexico
NORTEL NETWORKS: Subsidiary Amends US$750MM Master Facility Pact
NORTEL NETWORKS: Verizon Wireless Signs US$2-Billion Supply Deal
PERUSAHAAN GAS: Signs Gas Deal With Korea's Kodeco
J A P A N
AOZORA BANK: Moody's Place 'D' Bank Rating on Review
DAIWA SECURITIES: FSA Punishes Firm for Insider Trading
MITSUBISHI MOTORS: To Unveil Prototype-X Concept for Sport Sedan
NIKKO CORDIAL: Probed by SESC Over Alleged Accounting Violations
NIKKO CORDIAL: Fitch Places 'C' Individual Rating on Watch Neg.
SANYO ELECTRIC: Fitch Affirms BB+ Ratings on Revised 07 Forecast
TIMKEN CO: Sells Automotive Steering Biz to DriveSol Worldwide
K O R E A
CIRSA BUSINESS: S&P Lowers Corporate Credit Rating to B+
WOORI BANK: Agrees to Regularize All Temporary Personnel
M A L A Y S I A
COMSA FARMS: CIMB Demands INR8.7 Mil. for Various Facilities
COMSA FARMS: INR925,652 Payment Sought for CIMB Facility
FOAMEX INTERNATIONAL: Seeks Conversion of FMXI Into Delaware LLC
FOAMEX INT'L: U.S. Trustee Amends Creditors Panel Membership
* Moody's Reveals Rating Impact of Joint Default Analysis Method
N E W Z E A L A N D
APOLLO PRINTING: Creditors' Proofs of Claim Due on Jan. 29
BEST WHOLESALE: Court Appoints Joint Liquidators
DMP 1 LTD: Shareholders Appoint Liquidator
DMP 5 THE ROOST: Names John Francis Managh as Liquidator
J.P. COLLINS: Enters Liquidation Proceedings
LUMEN INTERNATIONAL: Creditors Must Prove Debts by Jan. 18
NICKY HOLDINGS: Undergoes Liquidation Proceedings
OAKHILL TRADING: Creditors Must Lodge Claims by Dec. 28
UMMBAR LTD: Shareholders Resolve to Liquidate Business
XCHECKER SECURITY: High Court Names Joint Liquidators
P H I L I P P I N E S
CHINA BANK: Inks Distributorship Agreement with M. Lhuillier
DEVELOPMENT BANK: Fitch Affirms Ratings on Ample Profitability
MIRANT CORP: Bankruptcy Court Approves New York Tax Settlement
PSI TECHNOLOGIES: Regains Nasdaq Compliance
S I N G A P O R E
CHINA VENTURE: Court to Hear Wind-Up Petition on Dec. 29
EPIC INTERNATIONAL: Proofs of Debt Due on Dec. 26
GETRONICS NV: Unveils Cash Offer for EUR100-Million 2008 Bonds
PETROLEO BRASILEIRO: Distributing Interest on Own Capital
PETROLEO BRASILEIRO: P-34 Platform Starts Operations in Jubarte
PETROLEO BRASILEIRO: Distributing Interest on Own Capital
SEA CONTAINERS: Gov't. Invites Bidders for GNER's Franchise
S R I L A N K A
* S&P Affirms 'B+/BB-' Ratings Affirmed with Negative Outlook
T H A I L A N D
* Capital Controls Come With Long-Term Costs, S&P Report Says
* Moody's Sees Credit Fundamentals Unaffected by Policy Misstep
V I E T N A M
ASIA COMMERCIAL BANK: Fitch Affirms 'D' Individual Rating
* Large Companies With Insolvent Balance Sheets
- - - - - - - -
=================
A U S T R A L I A
=================
AUSTRALIASIAN TRADE: Members & Creditors to Hear Wind-Up Report
---------------------------------------------------------------
The members and creditors of Australiasian Trade & Industry
Periodicals Pty Ltd will meet on Jan. 22, 2007, at 9:30 a.m., to
hear the company's wind-up report from Liquidator B. P. Cotter.
As reported by the TCR-AP, the company entered a members'
voluntary wind-up on July 22, 2005.
The Liquidator can be reached at:
B. P. Cotter
GPO Box 5151
Sydney, New South Wales 2001
Australia
Telephone: 02 9256 7700
About Australiasian Trade
Australiasian Trade & Industry Periodicals Pty Ltd is engaged
with publishing and printing periodicals.
The company is located in New South Wales, Australia.
AWB LIMITED: ATO Finalizes Tax Audit & Gives Good Report
--------------------------------------------------------
On December 20, 2006, AWB Limited disclosed that it has received
a written confirmation from the Australian Taxation Office
stating that the ATO has finalized the AWB Group business audit
for the years ended September 30, 2000, to 2004, inclusive in
relation to payments under the United Nations Oil-for-Food
program.
The ATO accepts that, for the reasons set out in the Cole
Inquiry report, payments made by AWB under the Oil-for-Food
program do not constitute bribes to foreign public officials for
the purposes of the Income Tax Assessment Act 1997.
About AWB
AWB Limited -- http://www.awb.com.au/-- is Australia's leading
agribusiness and one of the world's largest wheat marketing
companies. It is also one of Australia's top 100 publicly
listed companies. The Company is the exclusive manager and
marketer of all Australian bulk wheat exports through what is
known as the Single Desk. The Company markets wheat, and a
range of other grains, into more than 50 countries, with
Australian wheat exports worth up to AU$5 billion per year.
AWB's footprint includes more than 430 outlets through its
subsidiary landmark and has offices across the world. The
company employs more than 2,700 staff reaching over 100,000
customers. AWB is also one of the nation's largest suppliers of
rural merchandise, distributors of fertilizer, marketers of
livestock, brokers of rural real estate and handlers of wool.
In late 2005, AWB was accused of knowingly paying AU$290 million
in kickbacks to the Government of Iraq, under Saddam Hussein's
administration, through the United Nation's oil-for-food
program. A UN report then found out that AWB paid the kickbacks
to a Jordanian trucking company linked to Hussein's deposed
regime. The Australian Government then appointed a commission,
headed by retired judge Terence Cole, to investigate into the
Company's role in and the Government's alleged "knowledge" of
the scandal. The "Cole Inquiry" is currently underway. The
scandal is anticipated to create great political repercussions
to the Australian Government, given the country's contribution
to military action against President Hussein in the 2003
invasion of Iraq.
However, after auditing AWB's financial results for the fiscal
year ended September 30, 2006, Brett Kallio, a partner at Ernst
& Young, disclosed that there is inherent uncertainty
surrounding the consolidated entity with regard to matters
associated with the Federal Inquiry into certain Australian
companies in relation to the United Nations Oil-for-Food
Programme.
Mr. Kallio noted that there is uncertainty as to the nature of
the findings of the Oil-for-Food Inquiry and the resultant
impact, if any, on the company's financial position, financial
performance, cash flows and its operations arising directly or
indirectly from the Inquiry.
* * *
The Troubled Company Reporter - Asia Pacific reported on July
12, 2006, that six American wheat farmers have launched a AU$1-
billion class action against AWB in the United States, claiming
its dealings in overseas markets damaged their own incomes.
According to the TCR-AP report, more farmers are considering
joining the class action.
The TCR-AP also previously reported that Australian law firm
Maurice Blackburn Cashman was considering a class action against
AWB on behalf of shareholders who lost money in the wake of the
Cole Inquiry.
AWB's September 30, 2006, balance sheet showed total assets of
AU$5.65 billion and total liabilities of AU$4.52 billion
resulting to total shareholders' equity of AU$1.12 billion.
BOUFFLERS ON: Undergoes Voluntary Wind-Up
-----------------------------------------
On Dec. 8, 2006, the members of Boufflers On The Sea Pty Ltd met
and resolved to voluntarily wind-up the company's operations.
In this regard, Michael Lawrence Pinn was appointed as
liquidator.
The Liquidator can be reached at:
Michael Lawrence Pinn
Pinn Deavin & Associates
Level 5, 3-5 Stapleton Avenue
Sutherland, New South Wales 2232
Australia
About Boufflers On The Sea
Boufflers On The Sea Pty Ltd Ted operates restaurants.
The company is located in New South Wales, Australia.
DAYCOY PTY: Court Releases Wind-Up Order
----------------------------------------
On Dec. 4, 2006, the Supreme Court of New South Wales has
entered an order to wind up the operations of Daycoy Pty Ltd --
trustee for Daycoy Brookvale Trust -- and appointed R. M.
Sutherland as the official liquidator.
The Official Liquidator can be reached at:
R. M. Sutherland
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone: 02 9233 2111
Facsimile: 02 9233 2144
About Daycoy Pty
Daycoy Pty Limited is an investor relation company.
The company is located in New South Wales, Australia.
EVERBLEST PTY: Schedules Members' Final Meeting on January 23
-------------------------------------------------------------
Everblest Pty Ltd, which is in liquidation, will hold a final
meeting for its members on Jan. 23, 2007, at 10:00 a.m.
During the meeting, Liquidator Ian Richard Hall will present an
account of the company's wind-up proceedings and property
disposal exercises.
The Liquidator can be reached at:
Ian Richard Hall
PricewaterhouseCoopers
Waterfront Place
1 Eagle Street
Brisbane, Queensland 4001
Australia
About Everblest Pty
Everblest Pty Ltd is a subdivider and developer of land.
The company is located in Queensland, Australia.
HCF NO.2: Members Resolve to Wind Up Firm
-----------------------------------------
At a general meeting held on Nov. 29, 2006, the members of HCF
No.2 Pty Ltd resolved to voluntarily wind up the company's
operations.
Accordingly, Martin John Green was nominated to act as
liquidator.
The Liquidator can be reached at:
Martin J. Green
GHK Green Krejci
Level 13, 1 Castlereagh Street
Sydney, New South Wales 2000
Australia
About HCF No 2
HCF No 2 Pty Limited manages pension, health, and welfare funds.
The company is located in Victoria, Australia.
HORIZON LANDSCAPES: Court Issues Wind-Up Order
----------------------------------------------
On Dec. 7, 2006, the Supreme Court of New South Wales issued an
order to wind up Horizon Landscapes Pty Ltd's operations and
appointed Steven Nicols as liquidator.
The Liquidator can be reached at:
Steven Nicols
Level 2, 350 Kent Street
Sydney, New South Wales 2000
Australia
About Horizon Landscapes
Horizon Landscapes Pty Ltd is engaged with landscape counseling
and planning.
The company is located in New South Wales, Australia.
L H & B I JEWELL: Members Decide to Close Business
--------------------------------------------------
At a general meeting held on Dec. 8, 2006, the members of L H &
B I Jewell Pty Ltd passed a special resolution to voluntarily
wind up the company's operations and appointed Noel Robert
Willis as liquidator.
The Liquidator can be reached at:
Noel Robert Willis
c/o KPMG
KPMG Centre, 491 Smollett Street
Albury, New South Wales 2640
Australia
About L H & B I Jewell
L H & B I Jewell Pty Ltd is an investor relation company.
The company is located in Victoria, Australia.
MULTIPLEX GROUP: Will Defend AU$100-Million Class Action
--------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
December 19, 2006, law firm Maurice Blackburn Cashman filed with
the Federal Court in Melbourne a AU$100-million class action
against Multiplex Group on behalf of 45 investors -- ranging
from small shareholders to large institutions -- over the
redevelopment of London's Wembley Stadium.
On December 21, 2006, Multiplex confirmed its receipt of service
of proceedings in respect of the class action against it and its
subsidiary, Multiplex Funds Management Limited.
Multiplex and MFML said that they intend to vigorously defend
the action.
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 Aug.
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.
NATIONAL MEDICAL: Receivers and Managers Cease to Act
-----------------------------------------------------
Richard Albarran and Geoffrey McDonald resigned as receivers and
managers of National Medical Developments Pty Ltd on Nov. 30,
2006.
The Troubled Company Reporter - Asia Pacific has reported that
Messrs. Albarran and McDonald were appointed as the company's
receivers on Feb. 14, 2006
Messrs. Albarran and McDonald can be reached at:
Richard Albarran
Geofrey Mcdonald
Hall Chadwick
Level 29, St Martins Tower
31 Market Street, Sydney New South Wales 2000
Australia
About National Medical
National Medical Developments Pty Ltd is a general contractor of
industrial buildings and warehouses.
The company is located in New South Wales, Australia.
QUALITY CIVIL: To Declare Second and Final Dividend on Jan. 31
--------------------------------------------------------------
Quality Civil Constructions Pty Ltd will declare the second and
final dividend on Jan. 31, 2007.
Accordingly, creditors are required to submit their proofs of
debt by that day, or they will be excluded from the dividend
distribution.
The liquidator can be reached at:
Peter Hicks
Forsythes
Level 5, 175 Scott Street
Newcastle, New South Wales 2300
Australia
About Quality Civil
Quality Civil Constructions Pty Ltd manufactures durable goods.
The company is located in New South Wales, Australia.
THE PITSTOP: To Hold Members' Final Meeting on January 31
---------------------------------------------------------
The Pitstop Motor Group Pty Ltd, which is in liquidation, will
hold a final meeting for its members on Jan. 31, 2007, at
10:00 a.m., to consider Liquidator Hughes' final account
regarding the company's wind-up proceedings.
The Liquidator can be reached at:
Michael Hughes
Level 2, 175 Scott Street
Newcastle, New South Wales 2300
Australia
About The Pitstop
The Pitstop Motor Group Pty Ltd -- trading as Brighton Toyota;
Lexus of Brighton -- is a car dealer of new and used cars.
The company is located in Victoria, Australia.
UBS (AUSTRALIA): Members to Receive Liquidators' Report
-------------------------------------------------------
The members of UBS (Australia) Administration Pty Ltd, which is
in liquidation, will meet on Jan. 19, 2007, at 10:00, to receive
the liquidators' report regarding the company's wind-up
proceedings.
The liquidators can be reached at:
David Clement Pratt
Timothy James Cuming
PricewaterhouseCoopers
Level 15, 201 Sussex Street
Sydney, New South Wales 1171
Australia
About UBS (Australia) Administration
UBS (Australia) Administration Pty Ltd operates trusts, except
educational, religious, and charitable trusts.
The company is located in New South Wales, Australia.
WRIGHT & COMPANY: Members' Final Meeting Slated for Jan. 19
-----------------------------------------------------------
The final meeting of the members of Wright & Company Pty Ltd
will be held on Jan. 19, 2007, at 10:00 a.m., to consider the
liquidators' account of the company's wind-up proceedings and
property disposal exercises.
According to the TCR-AP, the company declared the final dividend
for its creditors on Dec. 20, 2006.
The liquidators can be reached at:
John Gibbons
Keiran Hutchison
Ernst & Young
680 George Street
Sydney, New South Wales 2000
Australia
Telephone: 02 9248 5864
About Wright & Company
Wright & Company Pty Limited manufactures sheet metalwork.
The company is located in New South Wales, Australia.
* Moody's Reveals Rating Impact of Joint Default Analysis Method
----------------------------------------------------------------
Moody's Investors Service has published the rating results of
the application of its joint default analysis methodology for
regional and local governments in Australia and Malaysia.
In October 2006, Moody's published a special comment, "The
Application of Joint Default Analysis to Regional and Local
Governments." The methodology formally disaggregates the
ratings of RLGs into four components:
(i) an assessment of the RLGs' baseline credit risk (on a
scale of 1 to 21 in which 1 represents the equivalent
risk of Aaa, 2 represents Aa1 and so forth),
(ii) the higher-tier or supporting government's domestic
currency rating,
(iii) an estimate of the default dependence between the RLG
and the supporting government (expressed as a
percentage), and
(iv) an estimate of the likelihood of extraordinary support
from the supporting government (expressed as a
percentage).
The application of JDA in Australia and Malaysia resulted in two
RLG ratings upgraded and six RLG ratings affirmed.
The announcement of the application of JDA to RLGs in Australia
and Malaysia concludes the JDA initiative for non-U.S. RLGs
worldwide.
The results of the application of JDA to RLGs in the Americas
were published on November 14 and those for Europe, Middle-East
and Africa were published on December 15. On a global basis,
the application of JDA has resulted in 81 upgrades, 166 rating
affirmations and three downgrades.
Below is a list of the JDA inputs and final ratings for the RLGs
in Australia and Malaysia that are affected by the new rating
methodology.
Australia:
RLG Ratings Upgraded
Tasmania, State of -- debt rating upgraded to Aaa from Aa1,
with stable outlook, based on a BCA of 2, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 90%
default dependence
Northern Territory, Territory of -- issuer rating upgraded to
Aa1 from Aa2, with stable outlook, based on a BCA of 3, Aaa
rating on the Commonwealth of Australia, 80% probability of
support, 90% default dependence
RLG Ratings Affirmed
New South Wales, State of -- debt rating affirmed at Aaa,
with stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
Victoria, State of -- debt rating affirmed at Aaa, with
stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
Queensland, State of -- debt rating affirmed at Aaa, with
stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
Western Australia, State of -- debt rating affirmed at Aaa,
with stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
South Australia, State of -- debt rating affirmed at Aaa,
with stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence .
Malaysia:
RLG Rating Affirmed
Sarawak State of -- issuer rating affirmed at Baa1, with a
stable outlook, based on a BCA of 9, A3 rating on the
Republic of Malaysia, 50% probability of support, 70% default
Dependence.
================================
C H I N A & H O N G K O N G
================================
ALERIS INT'L: S&P Affirms Corporate Credit Rating at B+
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' loan and
'2' recovery ratings on the senior secured first-lien term loan
of Aleris International Inc., after the report that the company
increased the term loan by US$125 million.
With the add-on, the total amount of the facility is now
US$1.23 billion. The secured loan rating is the same as the
'B+' corporate credit rating on Aleris, and the '2' recovery
rating indicates the expectation of substantial recovery of
principal in the event of a payment default.
The term loan is a part of US$2.2 billion in financings being
used to fund the purchase of Aleris by Texas Pacific Group.
Ratings List:
* Aleris International Group
-- Corporate Credit Rating at B+/Stable/
-- Senior Secured B+
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.
AUTOCAM CORP: Fails to Pay US$7.6-Mln Interest on 10.875% Notes
---------------------------------------------------------------
Autocam Corp. has failed to make the semi-annual interest
payment of US$7.6 million due Dec. 15 under its US$140 million
of outstanding 10.875% senior subordinated notes due June 2014.
Non-payment of interest due on the Notes triggers a 30-day grace
period during which payment can be made before triggering an
event of default under the indenture governing the Notes and
cross-default provisions under agreements covering the company's
senior secured credit facilities and second lien credit
facility.
On Dec. 14, Autocam received a proposal signed by the holders of
85% of the Notes concerning the terms of a possible
recapitalization of the company. As part of the proposed
recapitalization, its Noteholders would purchase US$85 million
of newly issued equity securities in the form of a payment-in-
kind preferred stock and convert the Notes into 100% of the
company's common equity.
As of Dec. 14, Autocam had US$108.1 million in borrowings
outstanding under our senior secured credit facilities and
US$77.6 million in borrowings outstanding under its second lien
credit facility (including accrued paid-in-kind interest).
The proposal anticipates that the indebtedness under the
company's second lien credit facility will be repaid in full
with proceeds of the PIK Preferred Equity and any excess would
be used to satisfy expenses of the transaction and increase
working capital. It is also anticipated that its senior secured
credit facilities would be reinstated or refinanced on market
terms. After completion of the recapitalization, it is
anticipated that Autocam would have approximately US$110 million
of funded secured indebtedness.
This proposal would significantly enhance Autocam's financial
strength and operational flexibility, which would benefit all of
its stakeholders. The recapitalization would improve the
company's short- and long-term liquidity on a global basis,
allowing it to better serve its customers, meet its debt service
and working capital requirements and fund capital expenditures
for new programs.
The proposal is subject to approval by the company's board of
directors and equity holders and is subject to final
negotiations, documentation and customary conditions of closing.
As reported in the TCR-Europe on Nov. 27, Autocam disclosed of
in a regulatory filing with the U.S. Securities and Exchange
Commission that based on its current projections, it might be
unable to comply with the financial covenants set in its senior
credit facilities and second lien credit facility as of
Dec. 31, 2006.
The company however said that it was in compliance with the
covenants as of Sept. 30, 2006. The company's senior credit
facilities and second lien credit facility's financial covenants
are tested at each calendar quarter-end.
Headquartered in Kentwood, Michigan, Autocam Corporation --
http://www.autocam.com/ -- is a wholly owned subsidiary of
Titan Holdings, Inc. Autocam manufactures extremely close
tolerance precision-machined, metal alloy components, sub-
assemblies and assemblies, primarily for performance and safety
critical automotive applications. The company provides these
products from its facilities in North America, Europe, South
America and Asia to some of the world's largest suppliers to the
automotive industry. These suppliers include Autoliv, Delphi
Corporation, Robert Bosch GmbH, Siemens VDO, TRW Automotive,
Inc. and ZF Friedrichshafen AG. The company has operations in
Brazil, France and China.
AUTOCAM CORP: Nonpayment of Interest Cues Moody's Default Rating
----------------------------------------------------------------
Moody's Investors Service has lowered Autocam Corp.'s
Probability of Default Ratings to D from Ca. Ratings on
Autocam's senior secured first lien facilities (Caa1) and senior
subordinated notes (C) were confirmed although the expected loss
rates on those issues has increased from the assumed higher
probability of default. The company's Speculative Grade
Liquidity rating was also affirmed at SGL-4.
The actions follow disclosure by Autocam in an 8-K filing on
Dec. 15 that it had failed to pay interest on its subordinated
notes on Dec. 15, and it had entered into a 30-day grace period
under that obligation. Autocam further disclosed in the filing
it had received a proposal signed by 85% of its subordinated
note holders to recapitalize the company. The rating is stable
at the new PDR.
Moody's changed this rating:
-- Probability of Default, D from Ca.
Moody's confirmed these ratings:
-- Corporate Family Rating, Ca;
-- First lien revolving credit, Caa1 LGD2, 20%;
-- First lien term loan, Caa1 LGD2, 20%; and
-- Senior Subordinated Notes, C LGD5, 85%.
Moody's affirmed these ratings:
Autocam Corp:
-- Speculative Grade Liquidity rating, SGL-4.
Autocam France SARL:
-- First lien revolving credit, Caa1 LGD2, 20%; and
-- First lien term loan, Caa1, LGD2, 20%.
The last rating action was on Nov. 27, 2006, at which time
ratings were lowered and placed under review for possible
further downgrade.
Approximately US$7.6 million of interest on Autocam's
subordinated notes was due on Dec. 15 and was not paid.
Interest payments of roughly US$2.7 million on Autocam's US$77.6
million second lien credit facility plus interest on US$108.1
million of senior secured bank debt are due on Dec. 31, 2006.
In mid-November, Autocam disclosed it had approximately US$13
million of consolidated cash and US$1.2 million of remaining
availability under its revolving credit facilities.
The Probability of Default rating of D signifies an elevated
risk profile flowing from the company's failure to make a
payment when due under its subordinated notes. In the absence
of resolution during the applicable 30-day grace period, holders
of the subordinated notes could accelerate their claims.
Autocam faces challenges from approaching interest payments on
its secured credit facilities as well as obtaining requisite
approvals and satisfying the conditionality of the proposed
recapitalization to avoid default on its other obligations.
While higher expected loss percentages result from the change in
the probability of default, they remain within the range for
their respective ratings at both the Corporate Family level and
for the rated obligations. Hence, existing long-term ratings
have been confirmed. The Caa1 rating on the secured bank debt
continues to reflect the benefits of a first lien priority and
the amount of junior capital beneath their claims. The C rating
on the subordinated notes incorporates this junior position and
resultant loss experience in default scenarios. The second lien
credit facility is not rated.
The SGL-4 rating continues to represent a poor liquidity profile
arising from the pending default(s) which may arise should there
be no resolution during the grace period, limited, if any,
remaining external liquidity, prospective covenant compliance
issues noted in the company's November SEC filing, and an
unlikely ability to arrange any incremental sources of
alternative liquidity given the extensive amount of secured
obligations in its existing capital structure.
Headquartered in Kentwood, Michigan, Autocam Corporation --
http://www.autocam.com/-- is a wholly-owned subsidiary of Titan
Holdings, Inc. Autocam manufactures extremely close tolerance
precision-machined, metal alloy components, sub-assemblies and
assemblies, primarily for performance and safety critical
automotive applications. The company provides these products
from its facilities in North America, Europe, South America and
Asia to some of the world's largest suppliers to the automotive
industry. These suppliers include Autoliv, Delphi Corporation,
Robert Bosch GmbH, Siemens VDO, TRW Automotive, Inc. and ZF
Friedrichshafen AG. The company has operations in Brazil,
France, and China.
BALLY TOTAL: Appoints KPMG LLP as Independent Auditor
-----------------------------------------------------
Bally Total Fitness Holding Corp. disclosed the results of its
Annual Meeting held on Dec. 19, 2006, in Chicago. Stockholders
re-elected Don R. Kornstein to serve as a Class I Director for a
three-year term expiring in 2009.
At the meeting, stockholders also voted to ratify the
appointment of KPMG LLP as independent auditor for the company
and to approve the 2007 Omnibus Equity Compensation Plan.
Bally Total Fitness Holding Corp. --
http://www.Ballyfitness.com/-- is a commercial operator of
fitness centers in the U.S., with nearly 390 facilities and 30
franchises and joint ventures located in 29 states, China,
Mexico, Canada, Korea and the Caribbean. Bally also sells
Bally-branded apparel, nutritional products, fitness-related
merchandise and its licensed portable exercise equipment is sold
in more than 10,000 retail outlets.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service affirmed the Caa1
rating on Bally Total Fitness Holding Corp.'s US$235 million
10.5% senior unsecured notes (guaranteed) due 2011 and the Caa3
rating on the company's US$300 million 9.875% senior
subordinated notes due 2007. Moody's said the rating outlook
remains negative.
BROWN SHOE: Earns US$26.9 million in Quarter Ended Oct. 28, 2006
----------------------------------------------------------------
Brown Shoe Company Inc. reported US$26.9 million of net earnings
for the third quarter ended Oct. 28, 2006, compared with net
earnings of US$19.8 million in the year-ago period. Adjusted
net earnings were US$28.3 million, compared to third quarter
fiscal 2005 adjusted net earnings of US$23 million.
Net sales increased 9.6 percent to US$676.8 million, from
US$617.7 million in the third quarter of fiscal 2005.
The company's balance sheet at Oct. 28, 2006, showed US$1.06
billion in total assets, US$555.7 million in total liabilities,
and US$499.8 million in total stockholders' equity.
"We delivered an all-time record quarter driven by an
exceptional performance by our Famous Footwear chain in the
period and solid contributions from our wholesale and specialty
retail segments" Brown Shoe Chairman and CEO Ron Fromm
explained. "Famous Footwear recorded an 8.2 percent increase in
comparable store sales in the quarter, which, together with
strong gross margin performance, fueled a 51 percent increase in
its operating income, demonstrating our ability to meet our
customers' needs for fashion and value. Specialty retail, led
by Naturalizer stores, posted a 6 percent increase in comparable
store sales during the quarter, reflecting the continuation of
our efforts to improve the segment's performance. Wholesale
sales increased by 7 percent on the strength of our Naturalizer,
Children's and Dr. Scholl's brands. Excluding the Bass exit
costs, wholesale operating earnings increased by 16.1 percent.
In addition, we made solid progress on our strategic initiatives
and continue to expect to achieve the targeted savings we
announced last quarter."
Total sales at Famous Footwear rose 11.7 percent to US$366.3
million for the quarter, versus US$328.1 million for the same
13-week period last year. Same-store sales for the period rose
8.2 percent and gross margin increased by 160 basis points,
leading to operating earnings growth of 51 percent to US$39.6
million from US$26.2 million, for the year-ago period. Sales
were led by strong performances in the women's and children's
categories, while athletics grew 3.9 percent on a store-for-
store basis. Famous Footwear opened 26 stores in the quarter
and closed 10 stores, resulting in 979 stores open at quarter-
end. Approximately 90 new store openings and 45 closings are
expected during fiscal 2006.
The specialty retail segment, which includes Naturalizer, F.X.
LaSalle, Via Spiga, Franco Sarto, other concept stores and the
shoes.com e-commerce business, reported sales of US$68.2
million, an increase of 8 percent over last year's US$63.1
million. The segment generated operating income of US$978,000,
compared to a loss of US$7 million in the third quarter last
year, which included pre-tax costs of US$5.2 million to close
underperforming Naturalizer stores and consolidate Canadian
operations. The year-over-year improvement reflects a 6 percent
same-store sales increase, higher gross margin rates, and better
expense leverage following the closing of underperforming stores
in 2005. The division opened one new store and closed eight
during the quarter, leaving 298 stores open in the U.S. and
Canada at quarter end.
Wholesale sales increased 7 percent to US$242.3 million, versus
US$226.5 million last year, due primarily to higher sales of the
Naturalizer, Children's, and Dr. Scholl's brands.
Wholesale operating earnings were US$20 million, compared to
US$19.2 million last year. The 2006 operating earnings are net
of US$2.3 million of costs and losses associated with the
previously announced exit of the Bass license. Excluding these
costs, wholesale operating earnings increased 16.1 percent in
the quarter.
Net sales for the first nine months in 2006 increased 8.2
percent to US$1.8 billion, compared with US$1.7 billion in the
first nine months last year.
Net earnings were US$52.1 million compared to net earnings of
US$27.6 million the first nine months of fiscal 2005. Adjusted
net earnings were US$50.3 million. This compares to adjusted
net earnings of US$42.9 million for the first nine months of
fiscal 2005.
Full-text copies of the company's consolidated financial
statements for the quarter ended Oct. 28, 2006, are available
for free at http://researcharchives.com/t/s?1746
About Brown Shoe Company
Headquartered in St. Louis, Missouri, Brown Shoe Company, Inc. -
- http://www.brownshoe.com/-- is a US$2.3 billion footwear
company with global operations. The company operates the 900+
store Famous Footwear chain, which sells brand name shoes for
the family. It also operates 300+ specialty retail stores in
the U.S. and Canada under the Naturalizer, FX LaSalle and Via
Spiga names, and Shoes.com, the company's e-commerce subsidiary.
Brown Shoe, through its Wholesale divisions, owns and markets
leading footwear brands including Via Spiga, Naturalizer,
LifeStride, Nickels Soft, Connie and Buster Brown; it also
markets licensed brands including Franco Sarto, Dr. Scholl's,
Etienne Aigner, Bass and Carlos by Carlos Santana for adults,
and Barbie and Disney character footwear for children.
The company currently maintains offices in Brazil, Italy, China,
Hong Kong, and Taiwan.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on specialty footwear retailer and wholesaler
Brown Shoe Co. Inc. The rating was removed from CreditWatch,
where it was placed with negative implications on March 16,
2005. S&P said the outlook is negative.
At the same time, Standard & Poor's assigned its 'BB-' rating to
Brown Shoe's proposed US$150 million senior unsecured notes due
2012. These notes, to be offered pursuant to Rule 144A with
registration rights, are rated one notch below the corporate
credit rating due to the substantial amount of priority debt in
the capital structure (including borrowings from the company's
US$350 million secured revolving credit facility) relative to
total assets. Pro forma for the transaction, total funded debt
reaches about US$307 million.
Moody's Investors Service assigned a B1 rating to Brown Shoe
Company, Inc.'s US$150 million guaranteed senior unsecured notes
due 2012, a Ba3 senior implied rating, a B2 issuer rating, and
an SGL-2 Speculative Grade Liquidity Rating. Moody's said the
outlook is stable.
CITY TELECOM: Fitch Assigns 'B+' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has assigned a Long-term foreign currency Issuer
Default rating of 'B+' to Hong Kong-based City Telecom (HK)
Limited. The Outlook on the rating is Stable. At the same
time, Fitch assigned an instrument rating of 'BB-' to the
US$125 million senior unsecured notes due 2015 issued by CTI on
the expectation of good recovery prospects given default as
denoted by the agency's recovery rating of 'RR3'.
CTI's ratings reflect its position as the largest alternative
fixed-voice and broadband service operator, recognized
capability of technological and service innovation, as well as
its modest financial profile. The ratings also take into
account Hong Kong's well-developed and generally stable
regulatory environment in the telecom sector, and CTI's future
growth opportunities in international markets.
However, Fitch is concerned that CTI's market position and
operating performance may be adversely influenced by the
competitive landscape in Hong Kong's highly penetrated telecoms
market. CTI has smaller operating scale and subscriber base
relative to the dominate incumbent, while the company also faces
downward pressure on its tariffs and margins caused by
increasing competition in both international telephone and
broadband markets. Potential significant expansion in capital
expenditure on network expansion/upgrade or new technology could
further constrain CTI's free cash flow generation and heightened
its leverage in the future.
"Limited growth prospect due to market saturation and industry
liberalisation over the past 10 years have stimulated
competition across all telecom business segments in Hong Kong,"
said Eliza Liu, associate director in Fitch's Asia-Pacific
telecom, media and technology team. "To compete with Hong
Kong's incumbent and other alternative telecom operators, CTI
has differentiated itself by focusing on the residential and
small-to-medium enterprise market segments by providing local
voice over Internet Protocol, broadband internet and IPTV
services at competitive prices". Fitch notes that CTI has
expanded its fixed-line subscriber base and market share (now
about 16%) over the past five years.
Intensifying competition in Hong Kong's telecom sector,
particularly in international telephony business, has caused
substantial decline in CTI's profitability over the past three
years. Fitch notes that total revenues declined in FY04 and
FY05 mainly due to the fall in international telephony revenue
despite robust growth in fixed-line revenues. Although total
revenues slightly rebounded by 2.0% and operating EBITDAR margin
subsequently improved in FY06, CTI still reported a net loss on
the back of higher financing costs.
Fitch notes that CTI's operating cash flow and liquidity have
also substantially deteriorated since FY04, mainly due to the
decline in profitability and a surge in capex for network
construction. Consequently, main coverage ratios significantly
weakened with funds from operations fixed charge cover at 3.8x
at FYE06 compared to 28.7x at FYE04. Meanwhile, leverage has
significantly increased since FY05 on the issuance of the
US$125 million senior notes. Nevertheless, key leverage ratios
notably improved in FYE06 owing to the strong rebound in
operating EBITDAR, with total adjusted debt net of cash to
operating EBITDAR at 2.8x compared to 6.5x at FYE05.
"Given the high market penetration rates and competitive
pressure, effective cost management will be crucial for CTI to
notably improve its profitability and cash generation going
forward," added Ms. Liu. Fitch says CTI's efforts to cut
operating expenses in H206 could deliver more tangible result in
FY07, while expected substantial reduction in capex would enable
the company to generate positive FCF and maintain its leverage
at current level. The Stable Outlook reflects Fitch's
expectation that CTI's business and financial profile will not
change materially over the medium term.
CTI was incorporated in Hong Kong in 1992 and has been listed on
the Hong Kong Stock Exchange since 1996. Its largest
shareholder is Top Group International Limited, which holds a
51.9% interest in the company.
HSINCHU INTL: Fitch Affirms C/D Individual Rating; Raises Others
----------------------------------------------------------------
Fitch Ratings upgraded the ratings of Hsinchu International Bank
and simultaneously removed them from Rating Watch Positive on
which they were placed on Sept. 29, 2006. The upgrades are as
follows:
-- Long-term Issuer Default rating upgraded to 'A' from
'BBB-',
-- Short-term upgraded to 'F1' from 'F3',
-- National Long-term upgraded to 'AA+(twn)' from 'A(twn)',
-- National Short-term upgraded to 'F1+(twn)' from 'F1(twn)',
and
-- Support rating upgraded to '1' from '4'.
The agency also affirmed Hsinchu's Individual ratings at 'C/D'.
The Outlook for all the ratings is Stable.
The rating actions follow Standard Chartered Bank's (rated
'A+'/Stable) successful tender offer to acquire 95.4% of
Hsinchu's shares in early November and later securing all the
seats on Hsinchu's board during the re-elections on Dec. 13,
2006. SCB plans to delist Hsinchu from the Taiwan stock
exchange and will seek to acquire the remaining stakes that were
left out in the previous offer. The transaction makes Hsinchu
the first domestic bank to be majority owned by foreigners. SCB
intends to combine its existing Taiwanese operations with
Hsinchu by late-2007. The consolidation makes Taiwan the fourth
largest market of SCB by income and represents about 7% of SCB's
consolidated assets. Hsinchu's IDR, one notch below that of
SCB, is constrained by SCB's ratings. However, improvements in
Hsinchu's stand-alone profitability, asset quality and capital
ratios would lead to a higher Individual rating.
Hsinchu's strategic focus in 2005 and 2006 has been on
developing its retail consumer finance and wealth management
businesses by leveraging the bank's strong market presence in
its home base, Hsinchu region. At end-H106, 62% of Hsinchu's
total loans were consumer loans (70% residential mortgage and
28% unsecured consumer loans). The agency notes that limited
corporate product offerings and thin spreads have deterred the
bank from growing its corporate credits in recent years. Fitch
views the participation by SCB as positive for Hsinchu to
develop its institutional businesses given SCB's international
network and cross-border product capabilities.
Hsinchu, like many other consumer finance-oriented banks,
suffered a sharp spike in credit losses on unsecured consumer
lending. This coupled with a one-time charge-off of its legacy
problematic corporate lending resulted in Hsinchu reporting
operating losses in the first nine months of 2006 and a decline
in its capital ratios. Asset quality has stabilized and the
bank witnessed negative new bad debt formation in Q306. The
agency notes that further credit losses in the bank's unsecured
consumer credit portfolio should be manageable given its credit
portfolio being less concentrated on unsecured consumer lending
(18% of total credits at end-Q306) and relatively less exposed
to the problematic sub-prime segment; the latter is evidenced by
the relatively small portion (11.5% versus the industry-average
of 20%) of its unsecured consumer loans entering the industry-
wide debt restructuring program.
Pre-provision profitability was held up steadily in 9M06 thanks
to Hsinchu's strong push into wealth management in 2005 to 2006
and strong growth in residential mortgage (up 28% year-on-year)
offsetting decreased revenue on unsecured consumer lending. In
December 2005 and September 2006, Hsinchu securitized
TWD12 billion and TWD13.2 billion of mortgage, respectively,
Taiwan's first cross-border issues of its kind. The issues help
the bank diversify its funding sources and elevate its
distribution value. Hsinchu's mortgage portfolio has an average
loan-to-value ratio slightly above 70% and is of relatively low
risk nature.
=========
I N D I A
=========
AFFILIATED COMPUTER: Identifies US$51MM Addt'l. Non-Cash Expense
----------------------------------------------------------------
Affiliated Computer Services Inc. determined that the
incremental cumulative non-cash compensation expense through
June 30, 2006, related to incorrect accounting measurement dates
is approximately US$51 million and that prior year financial
statements will be restated.
The determination was arrived at after it has completed the
review and evaluation of the results of its internal
investigation of its historical stock option practices.
The company is currently reviewing the tax impact, including
related interest and penalties, associated with stock options
and other matters.
The company's management made on Dec. 7, 2006, a presentation of
its determination to the audit committee of its board of
directors who concurred with and approved management's
determination.
Previously, the company disclosed that it was continuing to
review and evaluate the results of the internal investigation
and recent accounting guidelines established by the Securities
and Exchange Commission to determine the accounting consequences
of the use of incorrect measurement dates for certain stock
option grants during the period from 1994 through 2005.
The company's management is also currently evaluating the impact
of the results of the internal investigation of its stock option
practices on its internal control over financial reporting and
disclosure controls and procedures.
The company's management has already discussed the matter with
the Audit Committee and PricewaterhouseCoopers LLP, the
company's independent registered public accounting firm.
Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides
business process outsourcing and information technology
solutions to commercial and government clients. The company's
global presence include operations in China, Brazil, Dominican
Republic, India, among others.
* * *
As reported in the Troubled Company Reporter on Nov. 29, 2006,
Standard & Poor's Ratings Services kept its ratings for
Affiliated Computer, including the 'B+' corporate credit rating,
on CreditWatch, where they were placed with negative
implications on Sept. 29, 2006.
Fitch Ratings assigned its BB issuer default rating, BB senior
secured revolving bank credit facility rating, BB senior secured
term loan rating, and BB senior notes rating on Affiliated
Computer Services, Inc. The rating outlook is negative.
AFFILIATED COMPUTER: Promotes Two Executives as CFO's
-----------------------------------------------------
Affiliated Computer Services, Inc., has promoted two key leaders
into new positions of responsibility. Ann Vezina, Executive
Vice President and Group President of ACS Commercial Solutions,
has been promoted to Chief Operating Officer - Commercial
Solutions Group, and Tom Burlin, Executive Vice President and
Group President of ACS Government Solutions, has been promoted
to Chief Operating Officer - Government Solutions Group,
reporting directly to Lynn Blodgett, ACS president and chief
executive officer.
The promotions set in motion Ms. Blodgett's vision for the
future of ACS. Ms. Blodgett envisions an ACS that is more
client-focused than ever and absolutely committed to operational
excellence and organizational simplicity. The promotions
underscore Ms. Blodgett's desire to give ACS' proven leaders and
operating groups more authority and autonomy.
Ms. Blodgett said, "Promoting Ann and Tom to their new positions
opens the door for better and deeper client relationships and
provides an improved market-facing structure for our operating
groups. This organizational change will help meet our objective
of future growth in two ways. First, by eliminating a layer of
leadership between my office and the field, we can push
authority back into our lines of business, giving our employees
the freedom to make critical, client-affecting decisions
quickly. Second, it improves the simplicity and effectiveness
of our operations that will best leverage our knowledge, best
practices, and advanced technologies across the company and
throughout our operations."
In her new position, Ms. Vezina will be responsible for the
operations and growth of the Commercial Solutions Group or CSG
that contributes more than US$3 billion to ACS' annual revenue.
CSG serves thousands of clients around the world in industries
including communications, education, energy, financial services,
healthcare, insurance, manufacturing, retail, and transportation
and travel.
Ms. Vezina has more than 20 years of global BPO and IT
experience across a broad spectrum of industries. Before
joining ACS, she spent 18 years with EDS, progressively
advancing her management and leadership skills through
experience in BPO operations, sales and business development,
project and client management, relationship development, and IT
services.
Ms. Vezina said, "In basic terms, our vision is to be a leader
of the global, integrated BPO and IT services market. The
capabilities we've built are in place today and are the best in
the market. I've never seen a more exciting time in our
history."
In his new position, Mr. Burlin will be responsible for the
operations and growth of the Government Solutions Group or GSG
that contributes more than US$2 billion to the company's annual
revenue and is the leading provider of BPO services to state and
local governments.
Mr. Burlin has almost 30 years of industry experience, joining
ACS in 2005 after a successful 26-year career with IBM. Prior to
his work at ACS, he was a Partner of the U.S. Federal Industry
Group of IBM's Business Consulting Services, responsible for a
US$1.5 billion book of business servicing the U.S. Federal
Government. Under his leadership, all IBM Global Services
offerings to the Federal Government were consolidated.
Mr. Burlin commented, "ACS is proud of its record of helping
governments around the world improve the levels of services they
provide their citizens. With a renewed focus on client service,
our future growth is assured."
Ms. Blodgett concluded, "Together, Ann and Tom have more than 50
years of industry experience. With the full weight, scope,
autonomy, and authority deserving of their titles, we are in the
right hands to continue growing ACS and I have the utmost faith
in their abilities."
Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides
business process outsourcing and information technology
solutions to commercial and government clients. The company's
global presence include operations in China, Brazil, Dominican
Republic, India, among others.
* * *
As reported in the Troubled Company Reporter on Nov. 29, 2006,
Standard & Poor's Ratings Services kept its ratings for
Affiliated Computer, including the 'B+' corporate credit rating,
on CreditWatch, where they were placed with negative
implications on Sept. 29, 2006.
Fitch Ratings assigned its BB issuer default rating, BB senior
secured revolving bank credit facility rating, BB senior secured
term loan rating, and BB senior notes rating on Affiliated
Computer Services, Inc. The rating outlook is negative.
AGILENT TECHNOLOGIES: Completes Acqiris and PXIT Acquisitions
-----------------------------------------------------------
Agilent Technologies Inc. has completed the acquisition of
Acqiris SA and PXIT Inc. Financial details of these two
transactions were not disclosed. All of Acqiris and PXIT's
employees have joined Agilent.
Acqiris is a privately held company that provides high-speed
digitizers and analyzers used in commercial, industrial and
government electronics markets. Acqiris' products include a
broad offering of digitizers, time-to-digital converters and
waveform analyzers with high resolution and high-speed
performance. The company also offers software, integration and
development support as well as long-term maintenance and
support.
PXIT is a privately held company that provides signal integrity
testing systems for broadband optical transceiver manufacturers.
Agilent Technologies, Inc. -- http://www.agilent.com/-- is a
measurement company providing core bio-analytical and electronic
measurement solutions to the communications, electronics, life
sciences and chemical analysis industries.
The company has operations in India, Argentina and Luxembourg.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 18, 2006, Moody's Investors Service upgraded the ratings of
Agilent Technologies Inc. to Ba1 from Ba2 and revised the
outlook to positive.
Moreover, Standard & Poor's Ratings Services placed its 'BB+'
corporate credit rating on Agilent Technologies on CreditWatch
with positive implications.
BHARTI AIRTEL: Non-Convertible Debentures Gets CRISIL's AAA
-----------------------------------------------------------
Credit Rating Information Services of India Ltd gives Bharti
Airtel Ltd. these ratings:
* INR1.35 Billion Non Convertible Debenture: AAA (so)
(Reaffirmed)
* INR0.95 Billion Non Convertible Debenture: AAA (so)/Stable
(Reaffirmed)
* INR0.70 Billion Non Convertible Debenture: AAA/Stable
(Reaffirmed)
* INR2 Billion Non Convertible Debenture: AAA/Stable
(Reaffirmed)
* INR1 Billion Commercial Paper Programme: P1+ (Reaffirmed)
* INR0.05 Billion Non-Convertible Debenture: AAA/Stable
(Assigned)
The ratings on Bharti Airtel continue to reflect the company's
strong position in the fast-growing Indian wireless market,
characterized by its sustained market share despite intense
competition. The rating also reflects the continued improvement
in Bharti Airtel's financial profile, driven by continued
subscriber growth and increased economies of scale. The rating
also derives comfort from the improved regulatory scenario in
India, and the Indian government's efforts to increase tele-
density in the country by reducing regulatory costs. However,
the company remains exposed to the impact of any unexpected
changes in regulation or government policy.
Bharti Airtel will have to continuously invest in network
maintenance and expansion and the rating factors in the impact
of such investments. Given Bharti Airtel's strong and improving
cash generation, and its liquid investments, CRISIL expects the
company to meet its future expansion requirements largely
through internal cash accruals. In the absence of major capital
expenditure plans for rolling out of broadband or 3G services by
the company, CRISIL expects Bharti Airtel's capital structure to
improve in the medium term. The rating derives support from the
company's demonstrated ability to raise funds at extremely
competitive rates from the Indian as well as international
markets. The change in the foreign direct investment limits for
the telecom industry from 49% to 74% has enhanced Bharti
Airtel's ability to meet investment requirements that may arise.
Outlook
CRISIL expects the domestic wireless market to maintain its
healthy growth rate and help it to sustain its high
profitability.
About the Company
Bharti Airtel is one of India's leading integrated
telecommunications service operators, providing Global System of
Mobile Communications cellular, basic telephony, long distance,
and data services. Bharti provides mobile telephony services in
all the 23 circles across the country today. It provides
telecommunication services across the entire telecom vertical
through its various subsidiaries: cellular services, fixed-line
services, national and international long-distance services, and
data and enterprise services. For the year ended March 31,
2006, Bharti Airtel reported a net profit of INR20.3 billion on
net sales of INR115.4 billion as against a net profit of INR12.1
billion on net sales of INR80 billion in the previous
corresponding period.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+
ratings on September 21, 2005.
JAMMU & KASHMIR: Reserve Bank Increases FII Holding Cap to 40%
--------------------------------------------------------------
The Reserve Bank of India approved the increase the cap of the
Foreign Institution Investors' holding in Jammu & Kashmir Bank
Ltd., the bank discloses in a filing with the Bombay Stock
Exchange.
With the authorization, the FII holding cap in J&K Bank is
increased from 33% to 40% of its paid up capital.
About Jammu & Kashmir Bank
India-based Jammu & Kashmir Bank Limited --
http://www.jammuandkashmirbank.com/-- is a private sector bank
that provides a range of traditional commercial banking products
and services to corporations and middle market businesses. The
key commercial banking products and services to corporate
customers include credit products and structured finance, cash
management, trade and commodity finance, and investment banking,
local debt syndication and securitization. The bank, through
its operations, is focusing on banking, insurance and asset
management.
Fitch Ratings gave Jammu & Kashmir Bank a 'D' individual rating
on June 1, 2005.
JAMMU & KASHMIR: Share Price Reached Lifetime High on Dec. 18
-------------------------------------------------------------
Jammu & Kashmir Bank's stocks on Dec. 18, 2006, closed at a
lifetime high of INR614.70 per share on the Bombay Stock
Exchange, up 7% from the previous day's close at INR574 per
share. The banking scrip met another milestone this year, after
breaking the psychological barrier last year on Dec. 22, when it
crossed the INR500/share mark.
Looking closer, a quarter ago, the stock was trading at
INR400/share levels on the bourses, and the new achievement has
recorded a return of over 50% for those investors who invested a
quarter ago.
The behavior of the stocks is owed to the results delivered by
the bank during the recent quarters in line with the market
expectations, and also due to high interest of Foreign
Institution Investor's who have been major buyers in the market.
Top FII's now own one third of the bank's stocks. The profile
of holders has also transformed from the hedge funds to niche
capital investors. Recently, the Reserve Bank of India approved
an increase in cap of FII holding from 33% to 40% for J&K Bank.
The performance of the bank in the first two quarters of the
current fiscal has been exceptionally good exceeding the
expectations of banking analysts. The new business initiatives
undertaken by the bank are also bearing fruit. The key
strategic shift of the bank has been to focus on J&K by
increasing lending to SME's, Horticulture related activities,
and Micro Finance. This combined with better liability
management has ensured that the bank's balance sheet is fully
leveraged with a credit deposit ratio of 73%. Within J&K, the
credit deposit ratio is at an all time high of 53%.
For over one and a half years, the stock markets have reacted
very positively. On 9th June, 2005, when Dr Haseeb A Drabu took
over as the Chairman and Chief Executive of the J&K Bank the
stocks were trading at INR327/share levels, in October '05 the
prices touched INR480/share levels. This was soon after the
Chairman's presentation to foreign investors presentation made
in New York titled "Peace, Prosperity and Profits' Plan for
Revitalisation of J&K Bank". In this presentation the Chairman
shared the new business model and the road to revitalization of
J&K Bank with the world's top forty investors
The combination of stock trends and the bank's performance
clearly indicates a boost in confidence in the market -- both
for stocks as an investor's favorite, and the bank for its
proactive and aggressive strategy to focus within J&K and target
un-banked channels through financial inclusions and micro
finance initiatives.
From a time when stocks were trading below book value and
nowhere close to the Indian average, the scrip is now 1.5 times
more than the book value -- putting a positive number to
indicate the visibility of the bank's stock to investors.
About Jammu & Kashmir Bank
India-based Jammu & Kashmir Bank Limited --
http://www.jammuandkashmirbank.com/-- is a private sector bank
that provides a range of traditional commercial banking products
and services to corporations and middle market businesses. The
key commercial banking products and services to corporate
customers include credit products and structured finance, cash
management, trade and commodity finance, and investment banking,
local debt syndication and securitization. The bank, through
its operations, is focusing on banking, insurance and asset
management.
Fitch Ratings gave Jammu & Kashmir Bank a 'D' individual rating
on June 1, 2005.
JIK INDUSTRIES: Discloses Outcome of Dec. 11 Annual Gen. Meeting
----------------------------------------------------------------
JIK Industries Ltd informed the Bombay Stock Exchange that its
members, at the 15th Annual General Meeting held on Dec. 11,
2006, inter alia, have agreed to:
1. adopt the audited Balance Sheet as of June 30, 2006, and
the Profit and Loss Account for the year ended on that
date and the Directors and the related auditor's reports;
2. reappoint Shri S C Gurav as director;
3. appoint Motilal & Associates, Chartered Accountants,
as the company's statutory auditors to hold office from
the conclusion of the AGM until the conclusion of the next
AGM on remuneration, terms & conditions;
4. appoint Shri Kartik K Kotadia as director, liable to
retire by rotation; and
5. consolidate the equity shares of INR1 per share each
comprised in the authorized capital of the company in such
manner that every 10 existing fully paid equity share of
INR1 per share will constitute one equity share of INR10
each fully paid.
About JIK Industries
Headquartered in Mumbai, India, JIK Industries Limited --
http://www.jikindustriesltd.com/-- manufactures handmade non-
lead crystalware segment and is the only organized player in the
country. JIK has had over seven years of experience in
manufacturing and marketing crystal. Its products include
crystal glassware such as, glass tumblers, bowls, stemware,
showpieces, vases, etc, manufactured at Balkum, Thane,
Maharashtra. The company had collapsed following accidents at
its chemical waste recycling plant and at its crystal-making
unit. The Company, which had diversified interests -- crystal
making, money changing and chemical waste recycling -- was
forced to exit the money changing business after its net worth
was eroded. Under the Reserve Bank of India stipulations
companies whose net worth was eroded were not allowed to
continue in the money changing business.
On April 17, 2006, the Corporate Debt Restructuring Committee
has approved JIK's debt-restructuring package. The CDR package
has entitled the Company to a INR105-million debt waiver, in
addition to the reduction in loan interest rate to 9% and FITL
interest rate to 6%. The package allowed the Company to
complete the major part of its debt and business restructuring.
So far, the Company's chemical division is shelved closed and
discontinued as whole. Post restructuring, the Company will
remove and reduce approximately 48% of outstanding debt and
increase Share Capital and Network.
JUNIPER NETWORKS: Sees US$900-Mil. Charge for Tainted Options
-------------------------------------------------------------
Juniper Networks Inc. says it anticipates recording additional
non-cash charges for stock-based compensation expense of around
US$900 million after a seven-month investigation revealed
improperly recorded option grants. Nearly all of the charge
relate to stock options granted between June 9, 1999, and
Dec. 31, 2003, a company press release states.
In the Dec. 20 press release, Juniper Networks announced the
completion of an independent investigation on the company's
historical stock option granting practices. Juniper Networks'
Audit Committee, assisted by an independent counsel and forensic
accountants, conducted the investigation.
Juniper Networks believes that the actual measurement dates for
financial accounting purposes of numerous stock option grants
issued in the past differ from the recorded grant dates of the
awards.
Pursuant to the result of the review, the Audit Committee
determined that:
-- there were numerous instances in which grant dates were
chosen with the benefit of hindsight as to the price of
the company's stock, so as to give favorable prices;
-- formal documentation often lagged the referenced grant
date; and
-- there was insufficient exercise by management of
responsibility for the stock option process.
The Audit Committee raised "serious concerns" regarding unnamed
"former management".
Juniper Networks makes it clear that its board of directors and
the Audit Committee remain confident in company CEO Scott Kriens
and the current management.
According to the release, Mr. Kriens received two stock option
awards with measurement date issues. Both options were,
however, canceled unexercised in 2001. He has not exercised any
stock options since 1998, approximately a year before the
company's initial public offering, Juniper states.
"As the leader of this company, I would like to express our
regret, to everyone who relies on Juniper, for the difficulties
this situation has caused for us all. In prior years, we should
have had better stock option granting processes, controls and
oversight in place, and we did not," Mr. Kriens says. "While we
cannot undo the past, we will focus going forward on the filing
of our financial statements, further improving the robustness of
the Company's stock option granting procedures, the ongoing
cooperation with government agencies and the continued execution
of our business strategy."
To File Forms 10-Q in Feb. 2007
At Juniper's request, the NASDAQ Listing Qualifications Panel
permitted its continued listing on The NASDAQ Stock Market,
subject to the conditions that the company will file on or
before Feb. 12, 2007:
-- a written summary of the Audit Committee's finding; and
-- its Forms 10-Q for the quarters ended June 30, 2006, and
Sept. 30, 2006.
Juniper makes it clear that it intends to comply with the NASDAQ
listing qualifications.
About Juniper Networks
Headquartered in Sunnyvale, California, Juniper Networks Inc. --
http://www.juniper.net/-- designs and sells products and
services that together provide its customers with Internet
Protocol network solutions. The Company's solutions are
incorporated into the global Web of interconnected public and
private networks across media, including voice, video and data,
travel to and from end users around the world. The Company's
network infrastructure solutions enable service providers and
other network-intensive businesses to support and deliver
services and applications on a low-cost integrated network.
During the year ended Dec. 31, 2005, the Company completed five
acquisitions: Kagoor Networks, Inc., Redline Networks, Inc,
Peribit Networks, Inc., Acorn Packet Solutions, Inc. and Funk
Software, Inc.. During 2005, the Company's operations were
organized into three segments: Infrastructure, Service Layer
Technologies Products (SLT), and Service.
The company has sales and development offices in the Asia
Pacific, including in India and China.
* * *
As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Rating Services placed ratings on Juniper
Networks Inc., including its 'BB' long-term and 'B-1' short-term
corporate credit ratings, on CreditWatch with negative
implications.
KOTAK MAHINDRA: Members Approve KMCC Scheme of Arrangement
----------------------------------------------------------
The members of Kotak Mahindra Bank Ltd. approved by requisite
majority the company's Scheme of Arrangement with its
subsidiary, Kotak Mahindra Capital Company Ltd, a filing with
the Bombay Stock Exchange relates.
The Scheme is for the de-merger of the Trading & Principal
undertaking of KMCC, including Primary Dealership, into the
bank.
The members came up with their decision at a court-convened
meeting on Dec. 5, 2006.
About Kotak Mahindra
Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank. The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services. Corporate Centre segment includes
strategic investment and activities. Car Finance segment offers
car financing. Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization. Investment
Banking segment includes advisory and transactional services
providing financial advisory services. Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits. Insurance segment offers life
insurance. Others segment includes forex broking, asset
management services and others.
Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
KOTAK MAHINDRA: Allots 25,337 Shares Under Equity Options Plan
--------------------------------------------------------------
Kotak Mahindra Bank Ltd.'s ESOP Allotment Committee at its
meeting held on Dec. 14, 2006, has allotted 25,337 equity shares
of INR10 each, pursuant to exercise of Stock Options granted
under the Kotak Mahindra Equity Options Plan 2002-03:
Plan Series Equity Shares
----------- -------------
2002-03/03 17,500
2002-03/06 7,837
About Kotak Mahindra
Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank. The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services. Corporate Centre segment includes
strategic investment and activities. Car Finance segment offers
car financing. Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization. Investment
Banking segment includes advisory and transactional services
providing financial advisory services. Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits. Insurance segment offers life
insurance. Others segment includes forex broking, asset
management services and others.
Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Inks Internet Portfolio Deal with Indosat
---------------------------------------------------------
Alcatel-Lucent reveals that its IP/MPLS portfolio has been
selected by PT Indosat as the basis of the country's first
Carrier Ethernet service offering, including the launch of a
Virtual Private LAN Service, which they call Premium Ethernet
Services.
Alcatel-Lucent's new-generation, multi-service infrastructure
will enable Indosat to set a new standard for the delivery of
highly reliable business services in the fast-emerging Southeast
Asia market. It will also support triple play services and the
convergence of Indosat's fixed and mobile networks. Indosat
released the Premium Ethernet services at the end November 2006
for its corporate customers in Jakarta, Surabaya, Bandung, Medan
and Semarang.
The Indosat network will offer businesses the benefits of
advanced virtual private network (VPN) technology to operate
highly reliable and quality-controlled voice, video and data
services across an IP/MPLS-based infrastructure. In the initial
phase, targeting some big cities like Jakarta, Surabaya,
Bandung, Medan and Semarang, Indosat will deploy the Alcatel-
Lucent 7750 Service Router, Alcatel-Lucent 7450 Ethernet Service
Switch and Alcatel-Lucent 7250 Service Access Switch. Indosat
has also commissioned Alcatel-Lucent for consulting services in
order to leverage its expertise in deploying IP/MPLS networks
and extensive industry knowledge.
"Our business customers require point-to-point, multi-point and
mesh VPN connectivity with high bandwidth and stringent Service
Level Agreements," Wahyu Wijayadi, Marketing Director of
Indosat, said. "It's our goal to surpass their expectations in
the delivery of these services. Based on Alcatel-Lucent's
Carrier Ethernet solution, we will be able to deliver a range of
services that provide flexibility, scalability and reliability
to our data customers."
"Indosat joins a growing list of service providers that are
shifting to Ethernet using our highly available end-to-end MPLS-
based solution," Basil Alwan, Head of Alcatel-Lucent's IP
activities, said. "Indosat also benefits from our consultative
marketing services which are dedicated to supporting the service
provider's sales, marketing and network operation development
for the country's first VPLS services."
About Indosat
Indosat Tbk is a leading telecommunication and information
service provider in Indonesia that provides cellular services,
IDD service, fixed telecommunication services. Indosat also
provides Multimedia, Internet & Data Communication Services
(MIDI).
About the Company
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-
U.S. 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: Supports Deutsche Telekom Initiative as Partner
---------------------------------------------------------------
Alcatel-Lucent said that it is supporting Deutsche Telekom's "T-
City" competition as an exclusive premium partner. Under the
terms of a five-year contract concluded at the end of November,
Alcatel-Lucent will support Deutsche Telekom in the development
and introduction of innovative integrated telecommunication
solutions.
Alcatel-Lucent will also make its expertise in the development
and introduction of new services available for the "T-City"
program. Alcatel-Lucent has found that close and direct
cooperation between end-users, service providers and solution
suppliers considerably accelerates the development and
implementation of new solutions. Thus the citizens, local
authorities, organizations and enterprises of the future "T-
City" will find their service needs met with an unprecedented
"quality of experience".
A total of 52 cities entered the "T-City" competition. The
winning concept will be realized -- with regards to
telecommunications solutions and applications - by Deutsche
Telekom, Alcatel-Lucent as the Premium partner and -- if needed
-- additional non-premium partners. The participants share the
expectation that an advanced technical infrastructure, the
applications running on it and the degree of networking among
municipal institutions will provide a basis for a sustained
increase in the quality of life for their citizens.
Of the 52 cities which participated in the initial round of the
competition, an independent jury selected ten cities to go
forward to the final round: Arnsberg, Coburg, Frankfurt (Oder),
Friedrichshafen, Gorlitz, Kamp-Lintfort, Kaiserslautern,
Neuruppin, Osterholz-Scharmbeck and Schwabisch-Hall. The winner
will be the city that has made the best municipal application to
use the modern telecommunications technology to meet the
specific tasks and challenges a 21st century community face.
The future T-City will act as a role model for other cities, and
will be selected in February 2007.
Deutsche Telekom will implement the innovative ideas of the
future T-City jointly with Alcatel-Lucent as its premium partner
in defined product and cooperative areas. Deutsche Telekom may
recruit additional partners to implement other areas, which are
not covered by the premium partnership with Alcatel-Lucent.
"We are pleased with having won Alcatel-Lucent as a strong
technology and premium partner for a quite demanding T-City
project. We are looking forward to use our joint know-how for
giving birth to an exemplary, networked city of the future",
Joerg Bollow, project leader T-City, Deutsche Telekom AG.
Hans-Burghardt Ziermann, an executive with Alcatel-Lucent's
operations in Germany, is a member of the 11-strong jury, which
selected the ten finalists at the end of November. "This
exclusive partnership in the "T-City" project represents a
continuation of our long-lasting and successful partnership with
Deutsche Telekom", says Hans-Burghardt Ziermann. "We are happy
to be able to help a city become a more attractive place for
living and as an industrial location thanks to a modern
telecommunications network."
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 th
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.
BANK INDONESIA: Expects Lower Inflation Rates Over Next 2 Years
---------------------------------------------------------------
Bank Sentral Republik Indonesia expects inflation to decline
over the next two years, allowing it to cut its benchmark
interest rate to boost consumption and investment in Indonesia,
Bloomberg News reports.
According to the report, Bank Indonesia Governor Burhanuddin
Abdullah said that the annual average rate for the bank's one-
month bills, which mirrors its benchmark rate, will decline to
8.88% next year and 8.50% in 2008 from the current 9.75%.
The report notes that the central bank has cut its key interest
rate seven times since May from a three-year high of 12.75% in
December, after economic growth slowed.
Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- was
created by a new Central Bank Act, the UU No. 23/1999 on Bank
Indonesia, enacted on May 17, 1999. The Act confers it the
status and position as an independent state institution and
freedom from interference by the Government or any other
external parties.
In its capacity as central bank, Bank Indonesia has one single
objective of achieving and maintaining stability of the rupiah
value. The stability of the value of the rupiah comprises two
aspects, one is stability of rupiah value against goods and
services and the other is the stability of the exchange rate of
the rupiah against other currencies. The first aspect is as
reflected by the rate of inflation and the second aspect is as
reflected by the development of rupiah exchange rate against
other currencies.
Standard and Poors Rating Services gave Bank Indonesia's long-
term foreign issuer credit a B+ rating and long-term local
issuer credit a BB rating, both effective on December 21, 2004.
It also gave its short-term local issuer credit a B rating on
May 12, 2003.
HESS CORP: Will Cut Capital Spending to US$3.6 Billion Next Year
----------------------------------------------------------------
Hess Corp. intends to cut its capital budget by about 10% to
US$3.6 billion in 2007, throttling back spending amid rising
costs for finding and developing petroleum deposits, Asbury Park
Press reports, citing Bloomberg News.
The report relates that, according to the company, about
US$3.5 billion is earmarked for exploration and production, and
US$75 million will go to refining and marketing.
Bloomberg notes Hess spokesman Jim Allen as saying that the
company will finish 2006 with capital spending of about
US$4 billion, excluding US$378 million to buy a stake in an oil
and natural gas project in the Gulf of Mexico.
The company said that about half of its spending will be in the
United States, where it is focusing on deepwater projects in the
Gulf of Mexico, while the rest will be spent in Europe and
Africa, Asbury says.
Doug Hohertz, who helps manage about US$400 million, including
Hess shares, at the Mitchell Group in Houston, said that part of
Hess Corp's spending cut may be attributable to Chief Executive
Officer John Hess's focus on the Gulf, which "only moves at a
certain pace," Asbury Park Press points out.
An analyst at Oppenheimer & Co., Fadel Gheit, said that this
year's spending includes a US$366 million payment made to Libya
to resume oil production after the U.S. ended two decades of
sanctions against the North African country, the report adds.
Hess said its development projects this year include: the Shenzi
oil and gas project in the deepwater Gulf of Mexico; Ujung
Pangkah, an oil and gas development in east Java; Okume, an oil
development in Equatorial Guinea; and JDA Phase 2, a gas
development in the Gulf of Thailand, Asbury Park Press points
out.
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: Ties Up With Two Parties for New Hotels in China
---------------------------------------------------------------
Hilton Hotels Corporations, RREEF -- the real estate and
infrastructure investment management arm of Deutsche Bank -- and
private equity firm H&Q Asia Pacific have confirmed that they
will form an alliance to introduce more than 20 focused service
hotels across China, e-Travel Blackboard reports.
According to the report, a Letter of Understanding has been
signed by the parties to form a partnership to acquire, develop
and convert sites for around 5,000 new rooms under Hilton Garden
Inn. Hilton Hotels would provide experienced assistance in site
selection, development, training, operations support, brand
management and marketing.
The report notes that locations that are being considered as
sites for the new hotels include Shanghai, Beijing and Tianjin.
Executive Vice President Hilton Hotels Corporation and CEO of
International Operations, Ian Carter commented that China is an
outstanding market and this strategic relationship with two very
experienced specialists would allow Hilton to rapidly roll out
their first focused service hotel brand in China, the report
relates.
This latest announcement follows RREEF's entry to China's real
estate market last month via the investment in a mid-market,
residential project in Zhuhai. It was reported that RREEF will
develop a US$225-million residential project to provide more
than 2,000 affordable apartments with three local co-investors,
the report says.
RREEF's Head of Acquisitions for East Asia, Brian Chinappi, said
that they believe long-term prospects for real estate market
fundamentals in China are very good and are proactively pursuing
investment opportunities which are supported by China's long
term economic growth prospects, rising middle class and
urbanization.
Mr. Chinappi also said that they are very positive on the
focused service business and leisure travel sector in China
where there is limited supply of branded product and growing
demand, and that they are pleased to be working towards a
partnership with such experienced sector experts as Hilton and
H&Q Asia Pacific, the report adds.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.
* * *
Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.
MEDCO ENERGI: Expands Exploration Area in Gulf of Mexico
--------------------------------------------------------
PT Medco Energi Internasional expanded the area that it is
seeking to explore in the Gulf of Mexico with the purchase of a
concession for US$500,000, Bloomberg News reports.
According to the report, the company said in an e-mail that the
area, known as Brazos Area Block 437, covers a 5,760-acre field
in the Gulf of Mexico. The report notes that this is the
company's fifth U.S. concession in the second half of 2006 and
the fourth in the Brazos area.
Bloomberg points out that Medco's U.S. unit bought Brazos Area
Blocks 435, 492 and 514 on Oct. 19, adding that the company
expects to start drilling in the Brazos blocks next year.
The company also purchased a 43.75% interest in the Mustang
Island Block 758 oil area on May 30, 2006, in the Mexican Gulf,
the company said on June 8, Bloomberg relates.
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter - Asia Pacific stated on Dec. 21,
2006, that Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit rating on Medco Energi. The outlook
remains negative.
According to S&P, the negative outlook on Medco reflects the
company's weaker financial profile due to its increased debt
burden to fund its aggressive capital expenditure.
In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service
has changed the outlook on Medco Energi's ratings to negative
from stable. The ratings affected by the outlook change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
NORTEL NETWORKS: Subsidiary Amends US$750MM Master Facility Pact
----------------------------------------------------------------
Nortel Networks Corporation's principal operating subsidiary,
Nortel Networks Limited, has amended its US$750 million master
facility agreement with Export Development Canada to extend the
maturity date to Dec. 31, 2008.
The Facility includes US$300 million of committed support for
performance bonds and similar instruments. As of Sept. 30,
2006, there was approximately US$175 million of outstanding
support utilized under the Facility, of which approximately
US$143 million was outstanding as committed support and
US$32 million as uncommitted support.
A full text-copy of Amendment No. 2 to the Amended Master
Facility Agreement between NNL and EDC may be viewed at no
charge at http://ResearchArchives.com/t/s?1736
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers 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.
* * *
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Network 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.
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.
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.
NORTEL NETWORKS: Verizon Wireless Signs US$2-Billion Supply Deal
----------------------------------------------------------------
Nortel Networks Corp. has signed a US$2-billion supply deal with
Verizon Wireless to help the cellphone company cope with an
explosion in demand for mobile broadband Internet access,
Reuters reports.
According to the companies, the five-year agreement is aimed at
expanding the quality and reach of Verizon's network in the
United States as users clamor for online video, games and music,
Reuters notes.
The report cites Nortel's mobility and converged core networks
president, Richard Lowe, as saying that consumers expect more
from their mobile devices than voice communication and text
messaging.
Mr. Lowe said that Nortel is making it simple for Verizon
Wireless to expand its network to meet this demand and to
competitively drive new services to market, the report relates.
Reuters points out that Nortel is betting that demand for online
media and gaming will push the Internet to the brink in terms of
capacity, prompting both wireline and wireless network
expansions from service providers such as Verizon.
Billions of dollars are at stake for equipment suppliers like
Nortel and its rivals, as users watch movies and download music
on desktops and laptops, as well as on cellphones and portable
e-mail devices, the report says.
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 Network 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.
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.
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.
PERUSAHAAN GAS: Signs Gas Deal With Korea's Kodeco
--------------------------------------------------
PT Perusahaan Gas Negara Tbk has signed a deal to buy gas
supplied from a field operated by Kodeco Energy of South Korea,
Reuters reports.
According to the report, Perusahaan Gas will buy 20 to 30
million cubic feet per day of natural gas from Kodeco's gas
field in East Java for six years starting this year.
The report notes that PGN President Director Sutikno told
reporters that Kodeco has already been supplying gas to the
company from the middle of this year but in a very small amount.
Mr. Sutikno said that with the new contract, Kodeco will ensure
gas supply to Perusahaan Gas, which will distribute the gas to
industry customers in East Java. He believes that the Kodeco
Contract would boost revenue at the company.
Headquartered in Jakarta, Indonesia, PT Perusahaan Gas Negara
(Persero) Tbk -- http://www.pgn.co.id/-- is a gas and energy
company that is comprised of two core businesses: distribution
and transmission. For distribution, PGN signs long-term supply
agreements with upstream operators, which give the company
scheduled and reliable gas volumes and fixed gas prices. These
volumes are subsequently sold to commercial and industrial
customers under gas sales agreements. Under these agreements,
sales volumes are take-or-pay and the gas pricing is fixed and
in US dollar. On the transmission business, PGN ships gas on
behalf of the upstream suppliers under a fixed US dollar tariff
with ship-or-pay volumes agreements. The company is 59.4%
owned by the Government of Indonesia
The Troubled Company Reporter - Asia Pacific reported on
Dec. 21, 2006, that Standard & Poor's Ratings Services revised
the outlook on Indonesia's PT Perusahaan Gas Negara (Persero)
Tbk. to positive from stable. The ratings on the company are
affirmed at 'B+'.
The TCR-AP reported on June 28, 2006, that Fitch Ratings Agency
assigned these ratings to PT Perusahaan Gas Negara Tbk on June
27:
-- Long-term foreign currency Issuer Default Rating 'BB-';
-- Long-term local currency IDR 'BB-'; and
-- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due
2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN
and its subsidiaries 'BB-'.
Additionally, the TCR-AP said on May 23, 2006, that Moody's
Investors Service has upgraded the foreign currency debt rating
of PGN Euro Finance 2003 Ltd. and guaranteed by PT Perusahaan
Gas Negara to Ba3 from B1. This rating action follows Moody's
decision to upgrade Indonesia's foreign currency sovereign
rating for bonds from B2 to B1. At the same time, Moody's has
affirmed the Ba2 corporate family rating of PGN. The rating
outlook is stable.
=========
J A P A N
=========
AOZORA BANK: Moody's Place 'D' Bank Rating on Review
----------------------------------------------------
Moody's Investors Service has placed on review for possible
upgrade the Baa1 long-term deposit and senior unsecured ratings
and the D bank financial strength rating of Aozora Bank, Ltd.
The bank's Prime-2 short-term deposit rating is not affected by
the review. The upward reviews are prompted by Aozora's
continued demonstration of a positive earnings track record
while maintaining its strong capital base.
The BFSR review will focus on the bank's:
1) competitive position in its investment banking businesses,
2) likely future risk appetite in its investment banking
activities, which may take place both inside and outside
Japan,
3) effectiveness in its risk management of its diverse
business risks, and
4) liquidity management.
On the other hand, the credit rating review will focus on an
assessment of the bank's importance in the Japanese banking
system in light of its evolving business profiles.
Aozora Bank, Ltd., headquartered in Tokyo, had consolidated
total assets of JPY6.4 trillion as of September 30, 2006.
DAIWA SECURITIES: FSA Punishes Firm for Insider Trading
-------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
November 24, 2006, that Japan's Financial Services Agency called
for a disciplinary action against Daiwa Securities Group Inc.
after it was found that the brokerage firm had been involved in
insider trading.
Japan Today relates that the FSA had ordered Daiwa Securities to
suspend part of its operations for its failure to prevent
insider trading. The FSA banned Daiwa's branch in Himeji, Hyogo
Prefecture, from accepting stock buy and sell orders for two
days from Dec. 19.
The FSA also ordered Daiwa itself to report to the agency by
Jan. 4 certain measures to improve its operations, Japan Today
notes.
The report recounts that a deputy department chief in charge of
investment banking at the Himeji branch received an order in
October 2005 to buy 1,500 Fujipream Corp shares from an
executive of the Himeji-based chemical company. At that time,
Fujipream, listed on the Jasdaq Securities Exchange, planned a
stock split. A Daiwa official received the order although he
suspected the deal might constitute insider trading and was
aware that it was placed through an account in a name different
from the executive's name, according to the FSA.
About Daiwa Securities Group
Headquartered in Tokyo, Daiwa Securities Group Inc. --
http://www.daiwa.jp/ -- is a Japan-based securities company.
The company primarily is engaged in the securities, investment,
financing and service businesses. Daiwa Securities Group is
comprised of 46 consolidated subsidiaries and five associated
companies, which are engaged in the securities, investment
trust, information service, real estate leasing, venture
capital, financing and other businesses. The company with its
subsidiary and associated companies has operations in both
domestic and overseas markets, including Japan, the United
Kingdom, the United States, the Netherlands, Hong Kong and
Singapore.
The Troubled Company Reporter - Asia Pacific reported that Fitch
Ratings, on October 25, 2006, affirmed the company's 'C'
individual rating.
MITSUBISHI MOTORS: To Unveil Prototype-X Concept for Sport Sedan
----------------------------------------------------------------
Mitsubishi Motors Corporation and Mitsubishi Motors North
America Inc. (MMNA, based in Cypress California) will give the
Mitsubishi Lancer compact sport sedan (U.S. market model) its
global premiere and will also unveil the Prototype X concept for
a next-generation high-performance 4WD sport sedan at the 2007
North American International Auto Show (the Detroit Motor Show).
The 2007 NAIAS runs from January 7 to 21 at the Cobo Center in
Detroit and opens to the general public on January 13.
The Prototype-X concept car on show is an advance development
model for the new Lancer Evolution due to be launched in the
2007 fiscal year. Embodying Mitsubishi Motors' trademark "fun
to drive" qualities throughout, Prototype-X features styling
based on the current Lancer but was developed to project a
visibly higher performance image. The concept model is fitted
with Mitsubishi's S-AWC(1) (Super All-Wheel Control) vehicle
dynamics system that delivers the ultimate in four-wheel drive
traction and handling control together with a new turbocharged
MIVEC(2) engine with an aluminum cylinder block and a high
performance 6-speed manual transmission.
In addition to the Lancer and Prototype-X, Mitsubishi Motors
will be featuring the Outlander sport utility vehicle, which was
released in the U.S. market this October. Outlander is powered
by a new high-performance 3-liter V6 MIVEC(2) engine together
with a 6-speed automatic transmission to deliver strong
acceleration and ample power at cruising speeds. The Raider
pick-up, winner of the 2006 Baja 1000 (Stock Mini class), will
also be showcased along with other local production models.
1. S-AWC: Super All-Wheel Control. Vehicle dynamics system that
integrates control of drive torque, braking, steering and
suspension at all four wheels.
2. MIVEC: Mitsubishi Innovative Valve timing and lift Electronic
Control.
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.
NIKKO CORDIAL: Probed by SESC Over Alleged Accounting Violations
----------------------------------------------------------------
The Securities and Exchange Surveillance Commission is
investigating Nikko Cordial Corp. for allegedly padding its
group profit for fiscal 2004, Kyodo News reports.
According to The Yomiuri Shimbun, Nikko Cordial is suspected of
falsifying its annual financial statements for the business year
ended March 30, 2005, declaring JPY14 billion in false profits,
and using them to procure money from the market.
The Japan Times recounts that Nikko Cordial issued JPY50 billion
in bonds in November 2005, using the fiscal 2004 earnings
statements to explain its financial conditions to investors.
Thus, the SESC noted, people may have invested in Nikko Cordial
based on inaccurate information.
Moreover, at issue is the company's acquisition of the call
center operator Bellsystem24 Inc. in fiscal 2004, Jiji Press
English News Service says.
Nikko Cordial acquired call center operator Bellsystem24 for
JPY240 billion through a special purpose company, NPI Holdings,
that underwrote newly issued stocks and carried out a tender
offer from August 2004 to January 2005, Yomiuri Shimbun recalls,
citing share acquisition reports that the company submitted to
the Finance Ministry.
According to the report, to finance the deal, NPI Holdings
issued corporate bonds worth JPY104 billion to Nikko Principal
Investments Japan Ltd., a subsidiary of Nikko Cordial Corp. that
owned 100%t of shares in NPI Holdings. The contract between NPI
Holdings and Nikko Principal Investments stated the special
purpose company was to pay back the bonds with Bellsystem stock.
Nikko Principal Investments posted JPY14 billion in profit when
it acquired the Bellsystem stock from NPI Holdings, thanks to
the complex mechanism of derivative transactions that had been
designed to yield profits as the stock price rose.
Bellsystem had been listed on the Tokyo Stock Exchange, but was
delisted in January 2005.
Kyodo News points out that Nikko Cordial's consolidated earnings
reports cover Nikko Principal but do not include NPI Holdings.
The SESC thinks it inappropriate for Nikko Cordial to have
included only the valuation profit in its fiscal 2004 earnings
results.
The SESC believes that the profit claimed by Nikko Principal
Investments was canceled out by a loss sustained by NPI Holdings
through the derivative transactions, and that Nikko Cordial
Group deliberately misled the market with inappropriate
accounting methods.
Yet, Nikko Cordial has said there was no problem with the
accounting procedure as it was judged appropriate through an
external audit, Kyodo News notes.
Press reports relate that the SESC may recommend that the
Financial Services Agency direct Nikko Cordial to correct its
financial statements and pay a JPY500-million fine once the
brokerage group is found to have violated Securities and
Exchange Law or accounting rules.
Moreover, top Nikko Cordial executives may be forced to resign
to take responsibility for the alleged window-dressing, The
Japan Times says.
About Nikko Cordial Corporation
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The Company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The
Asset Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore. The
Company has a global network.
On April 12, 2006, Fitch Ratings upgraded Nikko Cordial Corp.'s
individual rating to C from C/D.
NIKKO CORDIAL: Fitch Places 'C' Individual Rating on Watch Neg.
---------------------------------------------------------------
Fitch Ratings has today placed the ratings of Nikko Cordial
Corporation and Nikko Cordial Securities Inc. on Rating Watch
Negative. This action follows the decision announced on Dec. 18
by the Tokyo Stock Exchange to place the shares of NCC on its
official watchlist pending the full investigation into reported
accounting breaches by the company. Fitch's action affects the
following ratings:
Nikko Cordial Corporation:
-- Long-term foreign currency Issuer Default rating of
'BBB',
-- Long-term local currency Issuer Default rating of 'BBB',
-- Short-term foreign currency IDR of 'F2'
-- Short-term local currency IDRs of 'F2' and
-- Individual rating of 'C'.
Nikko Cordial Securities:
-- Long-term foreign currency IDRs of 'BBB+',
-- Long-term local currency IDRs of 'BBB+',
-- Short-term foreign currency IDRs of 'F2',
-- Short-term local currency IDRs of 'F2', and
-- Individual rating of 'C'.
On December 18, the TSE announced that it had placed the shares
of NCC (traded on the First Section of the Tokyo Stock Exchange)
on its official 'watchlist' with immediate effect. This
followed the decision by Japan's Securities and Exchange
Surveillance Commission to recommend a monetary fine of
JPY500 million against NCC for breaches of domestic securities
reporting regulations. The irregularities identified by the
SESC refer to the overstatement of unrealized investment gains
at one of the company's subsidiary investment vehicles, Nikko
Principal Investments; NCC has consequently adjusted downwards
its reported, audited financial results for FYE05 (ending-March
2005) and FYE06 (ending-March 2006). The adjustment in stated
earnings varies from year-to-year (due to revaluation changes)
but has resulted in a reduction in NCC's consolidated total
equity of 1% or so as of end-September 2006.
The TSE has now entered into a full and comprehensive review of
the matter. While Fitch believes that the downward adjustment
in reported results has no meaningful implications for the
financial position of NCC, the agency considers the move by the
TSE to place NCC on its watchlist to be of much graver concern.
The TSE action allows for the potential de-listing of NCC shares
from the Tokyo stock market, if the TSE investigation concludes
that the reporting breach by NCC has a significant and material
negative impact on the integrity of the Japanese capital
markets.
The agency will monitor the fallout from the TSE review of NCC
closely in order to gauge the full implications for the group
and its ratings. While Fitch recognizes the company's solid
position as one of Japan's leading securities houses, we are
concerned about the potential impact on NCC and the group
entities associated with the 'Nikko' name as the company is sure
to face a struggle in regaining investor confidence and faith.
As such, Fitch considers its current action to be reasonable and
prudent.
SANYO ELECTRIC: Fitch Affirms BB+ Ratings on Revised 07 Forecast
----------------------------------------------------------------
Fitch Ratings has affirmed the 'BB+' Long-term foreign and local
currency Issuer Default and senior unsecured ratings on Sanyo
Electric Co., Ltd. The Outlook on the ratings remains Stable.
The rating affirmations follow Sanyo's latest downward revision
of its forecast for the fiscal year ending March 2007,
reflecting the difficulty of its operating environment, the need
for additional restructuring activities, as well as the recent
recall of its rechargeable batteries. Fitch says Sanyo's
revised forecast is in line with the agency's expectation for
the company at the time of assigning the current ratings.
According to Fitch, the current ratings on Sanyo already
incorporate the company's deteriorating financial performance
and weakening market position in major consumer electronics
products. That said, the agency will closely monitor the
development of these matters and their effect on Sanyo's credit
profile going forward.
Fitch notes that in the half-year period ended Sept. 30, 2006,
Sanyo showed better operating performance in all business
segments compared to the same period last year, leading to the
turnaround of its free cash flow, which was negative in H106.
Its total debt decreased slightly at end-H107, with its net
debt/EBITDA at 2.5x, unchanged from FYE06. The company also
maintained healthy liquidity, with cash and equivalents of
JPY532.2 billion representing 25% of its total assets.
Nonetheless, Sanyo revised its FY07 forecast downwards recently,
saying it now expects operating profit of JPY35billion
(previously JPY65 billion) due mainly to weakening digital
camera and mobile phone operations. It also expects a net loss
of JPY50 billion (previously JPY20 billion net profit) on higher
restructuring charges from additional reductions in its
workforce and that of group companies. As part of the
restructuring, Sanyo is selling its stake in the liquid crystal
display panel joint venture, Sanyo Epson Imaging Devices Corp.,
to its partner Seiko Epson Corp. Fitch expects the additional
restructuring activities, together with those already
implemented, will likely lead to substantially lower fixed costs
for the company from the next fiscal period onwards.
On Dec. 7, 2006, Mitsubishi Electric Corporation ('BBB+'/Stable)
and NTT DoCoMo ('AA-' (AA minus)/Negative) announced that they
would recall 1.3 million mobile handset batteries manufactured
by Sanyo GS Soft Energy Co., a Sanyo subsidiary, with the costs
for the recall to be shared by the three companies. Fitch views
the negative implication of the recall as rather limited at this
moment, although the agency warns that a negative rating action
could be warranted should the scale of battery recall increase
to the point that it threatens Sanyo's leadership position in
the global rechargeable battery market. For H107, Sanyo's
rechargeable battery business had JPY18.7 billion in operating
profit, larger than the total operating profit of
JPY15.8 billion during the period.
Fitch says it is challenging for Sanyo to regain its
competitiveness against the stronger and more-integrated
competitors, and Sanyo's management needs to articulate its
strategic direction and show how it intends to manage the
intensifying competition. Fitch also expresses concern as to
the ambiguity in the current management structure of the
company. However, Fitch believes the support provided to Sanyo
by the three financial institutions, namely Sumitomo Mitsui
Banking Corp. ('A'/Stable), Daiwa Securities SMBC Co., and
Goldman Sachs Group Inc. ('AA-' (AA minus)/Stable), which the
agency views as an important positive rating factor, will remain
intact.
Sanyo is a major Japanese consumer electronics manufacturer,
with its business segmented into three groups, namely consumer,
commercial and components. For FYE06, the company recorded
sales of JPY2,484.3 billion, an operating loss of
JPY17.2 billion and a net loss of JPY205.7 billion.
TIMKEN CO: Sells Automotive Steering Biz to DriveSol Worldwide
--------------------------------------------------------------
The Timken Company has completed the sale of its automotive
steering business, which operates facilities in Watertown,
Connecticut, and Nova Friburgo, Brazil, to DriveSol Worldwide,
Inc. The terms of the sale were not disclosed.
"The sale of this business, which has not been profitable in
recent quarters, is part of the structural changes we are
pursuing to improve our ability to create shareholder value,"
said Timken President and Chief Executive Officer James W.
Griffith.
The steering business employs approximately 600 people at the
Watertown plant and about 300 people in Brazil and had 2005
sales of US$110 million.
DriveSol, which is an affiliate of Sun Capital Partners, Inc.,
will continue to manufacture steering tilt shafts, intermediate
shafts and steering components at the Watertown plant and
steering columns at the Nova Friburgo plant. The products at
both facilities are focused on tube forming, coating, painting
and precision assembly.
"As a result of our focus on driving innovation in the core
areas of friction management and power transmission, we have
decided to exit this non-strategic business," said Jacqueline A.
Dedo, president of Timken's Automotive Group. "In addition to
our previously announced restructuring programs, we are
continuing to examine and implement further actions to improve
financial performance in our Automotive Group."
The Blackstone Group advised Timken on this transaction.
About The Timken Company
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The company has
operations in Japan, Australia, Canada, China, France, Germany,
India, Korea, Mexico, Netherlands, Russia, Singapore, Spain,
Taiwan, the United States, and Venezuela, and employs 27,000
employees.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that Moody's Investors Service confirmed The Timken
Company's Ba1 Corporate Family Rating and the Ba1 rating on the
company's US$300 Million Unsecured Medium Term Notes Series A
due 2028 in connection with the rating agency's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology.
=========
K O R E A
=========
CIRSA BUSINESS: S&P Lowers Corporate Credit Rating to B+
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Spanish gaming company Cirsa Business
Corp. S.A. to 'B+' from 'BB-'. The outlook is stable.
At the same time, the senior unsecured debt rating on related
entity Cirsa Finance Luxembourg S.A. was lowered to 'B' from
'B+' and the senior unsecured debt rating on Cirsa Capital
Luxembourg S.A. was lowered to 'B-' from 'B'. Cirsa Capital
Luxembourg's proposed EUR100-million bond issue due 2012
has been assigned a preliminary rating of 'B-', subject to
receipt of final documentation. All bonds are guaranteed by
Cirsa.
"The one-notch downgrade reflects Cirsa's aggressive financial
profile and a shortfall in achieving expected leverage ratios,"
said Standard & Poor's credit analyst Philip Temme.
Standard & Poor's warned in May 2006 that a substantial
improvement in operating cash flows would be required to avoid a
downgrade, and set 2006 target leverage ratios of lease-adjusted
debt to EBITDA below 4x and funds from operations (FFO) to
adjusted debt of 15%. Given that Cirsa's lease-adjusted debt to
EBITDA was well in excess of this target in the 12 months to
Sept. 30, 2006, and FFO to debt was 14% at the same date, key
leverage measures remain outside levels commensurate with a
'BB-' rating.
Assuming the bond refinancing proceeds as planned, thereby
improving the group's liquidity position, Standard & Poor's
expects the outlook for Cirsa to remain stable.
"To maintain the ratings, we expect Cirsa to continue to
exercise capital expenditure restraint and to achieve lease-
adjusted debt to EBITDA of about 5x and FFO to net debt of about
15%," Mr. Temme added.
The outlook could be revised to positive in the medium term if
the new CEO's restructuring measures and commitment to
deleveraging feed through successfully to key credit measures--
specifically, a return to lease-adjusted debt to EBITDA of about
4x.
* * *
Headquartered in Terrassa, Spain, Cirsa Business Corp. --
http://www.cirsa.com/-- is a leading Spanish gaming company,
with substantial operations in Brazil, Korea, and Italy.
WOORI BANK: Agrees to Regularize All Temporary Personnel
--------------------------------------------------------
Woori Bank and its trade union agreed on Dec. 20, 2006, that the
bank would make all of its 3,100 non-regular personnel regular
in March 2007, The Chosun Ilbo reports citing a statement made
by bank president Hwang Young-gi at a snap press conference.
The bank further agreed to refrain from hiring non-regular staff
in the future and instead will freeze the salaries of 10,000
regular staff, Chosun Ilbo states.
According to Mr. Hwang, the regular employees agreed to forego a
2.9% pay rise, with the money to be used to improve benefits for
non-regular staff. Salaries will increase gradually, the
president added.
The report points out that highly paid consultants, like lawyers
and chartered accountants, will be exempt from the move.
An unnamed official with the Korea Deposit Insurance
Corporation, one of the largest shareholders in Woori Financial
Group, told the news agency that there had been no prior
consultation.
"The decision to grant regular worker status to such a large
number of non-regular workers is a critical issue that affects
the bank's operation, and we need to review the decision," the
KDIC officer said.
About Woori Bank
Woori Bank -- http://www.wooribank.com/-- is a government-owned
bank headquartered in Seoul, Korea. The bank was established in
2002, and includes the former Hanbit Bank, Sangup Bank and Hanil
Bank. It is a part of the Woori Financial Group. It has
branches all over the world, including in New York, Los Angeles,
Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore,
Moscow, London, and Dhaka.
Fitch Ratings gave Woori Bank an individual rating of 'B/C'
effective July 20, 2005.
Moody's Investors Service gave Woori a 'D+' Bank Financial
Strength Rating effective March 14, 2006.
===============
M A L A Y S I A
===============
COMSA FARMS: CIMB Demands INR8.7 Mil. for Various Facilities
------------------------------------------------------------
CIMB Bank Berhad, in a letter of demand dated Nov. 29, 2006,
asks Comsa Farms Berhad and its subsidiary company, Comsa Cold
Storage Sdn Bhd, to pay INR8,734,875 plus interest.
The outstanding amount relate to four facilities granted by the
bank:
Outstanding
Facility Limit Sum 09/30/06
-------- -------- ---------------
Short Term Advance INR4,000,000 INR1,334,821.97
Term Loan 550,000 481,568.67
Overdraft 500,000 530,207.56
Multi-option Line
Bankers Acceptance 5,900,000 6,388,277.95
---------------
INR8,734,875.15
===============
The bank intends to commence legal actions against Comsa Farms
and subsidiary absent their immediate payment of the outstanding
debt.
* * *
Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in
the wholesale and retail of fresh and frozen chicken products,
meat and foodstuff. Its other activities include livestock,
aqua feed milling, poultry feeding, hatchery operations, and
layer farming.
On April 10, 2006, the company was declared a Practice Note 17
company by Bursa Malaysia due to a stockholders' equity deficit.
As an affected listed issuer, Comsa Farms is required to submit
a plan to regularize its financial condition.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 3, 2006, the company registered US$63.60 million in total
assets and a US$5-million shareholders' equity deficit as of
Nov. 2.
COMSA FARMS: INR925,652 Payment Sought for CIMB Facility
--------------------------------------------------------
Comsa Farms Berhad and subsidiary Comsa Breeding Farms Sdn Bhd
received on Dec. 15, 2006, a letter of demand from CIMB Bank
Berhad seeking payment of INR925,652 plus interest.
The amount, outstanding as of Sept. 30, 2006, relates to a
INR790,000 overdraft facility of which Comsa Breeding is the
borrower. The guarantors of the facility are Comsa Farms, Datuk
Kour Nam Ngum, Datin Heng Chui Koon and Chia Yam Kung.
The Demand Letter states that failure of the immediate payment
of the outstanding sum together with interest and incidental
expenses will prompt CIMB to take legal actions against Comsa
Breeding, Comsa Farms, and other guarantors.
Any subsequent part-payment or payments made by Comsa Breeding
and the Guarantors will be accepted on a without prejudice basis
and will not tantamount to a waiver of CIMB's rights to proceed
with legal action for recovery of the full amount outstanding
under the Facility, the Letter notes.
* * *
Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in
the wholesale and retail of fresh and frozen chicken products,
meat and foodstuff. Its other activities include livestock,
aqua feed milling, poultry feeding, hatchery operations, and
layer farming.
On April 10, 2006, the company was declared a Practice Note 17
company by Bursa Malaysia due to a stockholders' equity deficit.
As an affected listed issuer, Comsa Farms is required to submit
a plan to regularize its financial condition.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 3, 2006, the company registered US$63.60 million in total
assets and a US$5-million shareholders' equity deficit as of
Nov. 2.
FOAMEX INTERNATIONAL: Seeks Conversion of FMXI Into Delaware LLC
----------------------------------------------------------------
Foamex International Inc. and its debtor-affiliates seek the
U.S. Bankruptcy Court for the District of Delaware's authority
to convert FMXI Inc. from a Delaware corporation to a Delaware
limited liability company in connection with their Second
Amended Joint Plan of Reorganization.
Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware, relates that the Debtors
originally planned to effectuate the conversion on the Effective
Date of the Second Amended Plan; however, they determined that
certain savings could be realized if the FMXI is converted
before the end of 2006.
Ms. Morgan adds that FMXI's conversion before year-end will
simplify the Debtors' overall tax structure and reduce their tax
burden and collective tax compliance costs.
Furthermore, since FMXI's conversion is contemplated by the
Second Amended Plan, doing it now will eliminate the need to
incur further tax compliance costs associated with filing a tax
return for the period from Jan. 1, 2007, through the Effective
Date.
Ms. Morgan says the Debtors' estimated savings could range from
US$50,000 to US$90,000.
Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries. Foamex
has Asian locations in Malaysia, Thailand and China.
The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693). Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors. As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts. (Foamex International Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'. The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.
The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate. The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.
FOAMEX INT'L: U.S. Trustee Amends Creditors Panel Membership
------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
amends the membership of the Official Committee of Unsecured
Creditors in Foamex International Inc. and its debtor-
affiliates' chapter 11 cases, to reflect the resignation of J.
Donald Hamilton of Lyondell Chemical Corporation; Candida
Wolfram of Shell Chemical, LP; and Jack Howard of Steel Partners
II, LP.
The Creditors Committee is now composed of:
1. Stuart Kratter
Bank of New York
101 Barclay Street, 8W
New York, New York 10286
Tel: (212) 815-5466
Fax: (212) 815-5131
2. Dana Cann
Financial Analyst
Pension Benefit Guaranty Corporation
1200 K. Street, NW-Ste 340
Washington, DC 20005-4026
Tel: (202) 326-4020x3062
Fax: (202) 326-4112
3. Mark E. Schwarz
Newscastle Partners, LP
300 Crescent Court, Ste. 1110
Dallas, Texas 75201
Tel: (214) 661-7474
Fax: (214) 661-7475
4. Donovan Williams
439 Fairview Avenue
Coventry, Rhode Island 02816
Tel: (401) 615-2861
Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries. Foamex
has Asian locations in Malaysia, Thailand and China.
The Company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693). Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at
Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul
Ewings, LP, represent the Official Committee of Unsecured
Creditors. As of July 3, 2005, the Debtors reported
US$620,826,000 in total assets and US$744,757,000 in total
debts. (Foamex International Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
Standard & Poor's Ratings Services lowered its senior secured
and subordinated debt ratings on Foamex L.P./Foamex Capital
Corp. to 'D' from 'C'. The downgrades follow Foamex's
announcement that it has filed a voluntary pre-negotiated
Chapter 11 bankruptcy plan.
The ratings were also removed from CreditWatch with negative
implications, where they were placed on July 11, 2005, on
concerns that Foamex's leveraged financial profile and liquidity
would continue to deteriorate. The corporate credit rating was
lowered to 'D' on August 15, 2005, following the company's
failure to make a US$51.6 million principal payment on its 13.5%
subordinated notes that matured Aug. 15, 2005.
* Moody's Reveals Rating Impact of Joint Default Analysis Method
----------------------------------------------------------------
Moody's Investors Service has published the rating results of
the application of its joint default analysis methodology for
regional and local governments in Australia and Malaysia.
In October 2006, Moody's published a special comment, "The
Application of Joint Default Analysis to Regional and Local
Governments." The methodology formally disaggregates the
ratings of RLGs into four components:
(i) an assessment of the RLGs' baseline credit risk (on a
scale of 1 to 21 in which 1 represents the equivalent
risk of Aaa, 2 represents Aa1 and so forth),
(ii) the higher-tier or supporting government's domestic
currency rating,
(iii) an estimate of the default dependence between the RLG
and the supporting government (expressed as a
percentage), and
(iv) an estimate of the likelihood of extraordinary support
from the supporting government (expressed as a
percentage).
The application of JDA in Australia and Malaysia resulted in two
RLG ratings upgraded and six RLG ratings affirmed.
The announcement of the application of JDA to RLGs in Australia
and Malaysia concludes the JDA initiative for non-U.S. RLGs
worldwide.
The results of the application of JDA to RLGs in the Americas
were published on November 14 and those for Europe, Middle-East
and Africa were published on December 15. On a global basis,
the application of JDA has resulted in 81 upgrades, 166 rating
affirmations and three downgrades.
Below is a list of the JDA inputs and final ratings for the RLGs
in Australia and Malaysia that are affected by the new rating
methodology.
Australia:
RLG Ratings Upgraded
Tasmania, State of -- debt rating upgraded to Aaa from Aa1,
with stable outlook, based on a BCA of 2, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 90%
default dependence
Northern Territory, Territory of -- issuer rating upgraded to
Aa1 from Aa2, with stable outlook, based on a BCA of 3, Aaa
rating on the Commonwealth of Australia, 80% probability of
support, 90% default dependence
RLG Ratings Affirmed
New South Wales, State of -- debt rating affirmed at Aaa,
with stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
Victoria, State of -- debt rating affirmed at Aaa, with
stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
Queensland, State of -- debt rating affirmed at Aaa, with
stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
Western Australia, State of -- debt rating affirmed at Aaa,
with stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence
South Australia, State of -- debt rating affirmed at Aaa,
with stable outlook, based on a BCA of 1, Aaa rating on the
Commonwealth of Australia, 80% probability of support, 70%
default dependence .
Malaysia:
RLG Rating Affirmed
Sarawak State of -- issuer rating affirmed at Baa1, with a
stable outlook, based on a BCA of 9, A3 rating on the
Republic of Malaysia, 50% probability of support, 70% default
Dependence.
=====================
N E W Z E A L A N D
=====================
APOLLO PRINTING: Creditors' Proofs of Claim Due on Jan. 29
----------------------------------------------------------
Shareholders of Apollo Printing Co Ltd appointed John Howard
Ross Fisk and Craig Alexander Sanson as joint and several
liquidators on Nov. 29, 2006.
Creditors are required by the liquidators to submit their proofs
of claim by Jan. 29, 2007, or they will be excluded from the
company's distribution.
The Joint and Several Liquidators can be reached at:
John Howard Ross Fisk
Craig Alexander Sanson
PricewaterhouseCoopers
113-119 The Terrace (P.O. Box 243)
Wellington
New Zealand
Telephone:(04) 462 7188
Facsimile:(04) 462 7492
About Apollo Printing
Apollo Printing Co Ltd -- http://www.apolloprint.co.nz-- is a
manufacturer of letterheads, office stationery, and posters. At
the same time, the company also publishes books.
The company is located in Wellington, New Zealand.
BEST WHOLESALE: Court Appoints Joint Liquidators
------------------------------------------------
On Nov. 30, 2006, the High Court of Auckland appointed Henry
David Levin and Barry Jordan as joint and several liquidators of
Best Wholesale Ltd.
Accordingly, Liquidators Levin and Jordan will be receiving the
creditors' proofs of debt until Dec. 28, 2006.
As reported by the TCR-AP, the Court heard the liquidation
petition against the company on Nov. 30, 2006, filed by the
Commissioner of Inland Revenue.
The Joint and Several Liquidators can be reached at:
Henry David Levin
Barry Jordan
PPB McCallum Petterson
Level Eleven, Forsyth Barr Tower
55-65 Shortland Street, Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
DMP 1 LTD: Shareholders Appoint Liquidator
------------------------------------------
The shareholders of DMP 1 Ltd appointed John Francis Managh of
Napier as the company's liquidator on Nov. 28, 2006.
The Troubled Company Reporter - Asia Pacific previously reported
that the Commissioner of Inland Revenue filed the petition
against the company on Oct. 10, 2006.
The Liquidator can be reached at:
John Managh
Gladstone Chambers
50 Tennyson Street (P.O. Box 1022)
Napier
New Zealand
Telephone/Facsimile:(06) 835 6280
Email: jmanagh@xtra.co.nz
DMP 5 THE ROOST: Names John Francis Managh as Liquidator
--------------------------------------------------------
On Nov. 28, 2006, the shareholders of DMP 5 The Roost Ltd
appointed John Francis Managh as liquidator by virtue of a
resolution.
As reported by the TCR-AP, the High Court of Napier heard the
liquidation petition against the company on Nov. 30, 2006, filed
by the Commissioner of Inland Revenue.
The Liquidator can be reached at:
John Managh
Gladstone Chambers
50 Tennyson Street (P.O. Box 1022)
Napier
New Zealand
Telephone/Facsimile:(06) 835 6280
Email: jmanagh@xtra.co.nz
J.P. COLLINS: Enters Liquidation Proceedings
--------------------------------------------
On Nov. 27, 2006, the shareholders of J.P. Collins & Associates
Ltd agreed to liquidate the company's business and appointed
Philip Craig Macey as liquidator.
The Liquidator can be reached at:
Philip Craig Maxey
Staples Rodway Taranaki Limited
109-113 Powderham Street, New Plymouth
New Zealand
Telephone:(06) 758 0956
Facsimile:(06) 757 5081
LUMEN INTERNATIONAL: Creditors Must Prove Debts by Jan. 18
----------------------------------------------------------
Creditors of Lumen International NZ Ltd are required by
Liquidators John Robert Buchanan and Callum James MacDonald to
prove their debts by Jan. 18, 2007.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the company will make.
The Liquidators can be reached at:
John Robert Buchanan
Callum James Macdonald
Buchanan Macdonald Limited
Chartered Accountants
P.O. Box 101-993
North Shore Mail Centre, Auckland
New Zealand
Telephone:(09) 441 4165
Facsimile:(09) 441 4167
NICKY HOLDINGS: Undergoes Liquidation Proceedings
-------------------------------------------------
On Nov. 27, 2006, the shareholders of Nicky Holdings Ltd decided
by a special resolution to liquidate the company's business.
Accordingly, Bruce Carlaw Richards was appointed as liquidator.
The Liquidator can be reached at:
Bruce Carlaw Richards
Staples Rodway Taranaki Limited
109-113 Powderham Street, New Plymouth
New Zealand
Telephone:(06) 758 0956
Facsimile:(06) 757 5081
OAKHILL TRADING: Creditors Must Lodge Claims by Dec. 28
-------------------------------------------------------
The High Court of Auckland appointed Henry David Levin and Barry
Jordan as joint and several liquidators of Oakhill Trading Ltd
on Nov. 30, 2006.
Accordingly, the company's creditors are required to file their
claims by Dec. 28, 2006, and to establish any priority claims
they may have.
The TCR-AP has reported that the Court heard the petition
against the company on Nov. 30, 2006. The Commissioner of
Inland Revenue filed the petition.
The Joint and Several Liquidators can be reached at:
Henry David Levin
Barry Jordan
PPB McCallum Petterson
Level Eleven, Forsyth Barr Tower
55-65 Shortland Street, Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
UMMBAR LTD: Shareholders Resolve to Liquidate Business
------------------------------------------------------
The shareholders of Ummbar Ltd resolved by a special resolution
to put Ummbar Ltd into liquidation and appointed Grant Bruce
Reynolds as liquidator.
The Liquidator can be reached at:
Grant Bruce Reynolds
Reynolds & Associates Limited
Insolvency Practitioners
P.O. Box 259-059
Burswood, East Tamaki
Auckland
New Zealand
Telephone:(09) 577 0162
Facsimile:(09) 576 5503
XCHECKER SECURITY: High Court Names Joint Liquidators
-----------------------------------------------------
The High Court of Wellington appointed David Vance and Barry
Jordan as joint and several liquidators of Xchecker Security Ltd
on Nov. 20, 2006.
Creditors who were unable to make their claims on Dec. 19, 2006,
are excluded from sharing in any distribution the company will
make.
The Joint and Several Liquidators can be reached at:
David Vance
Barry Jordan
PPB McCallum Petterson
P.O. Box 3156, Wellington
New Zealand
Telephone:(04) 499 7796
Facsimile:(04) 499 7784
=====================
P H I L I P P I N E S
=====================
CHINA BANK: Inks Distributorship Agreement with M. Lhuillier
------------------------------------------------------------
China Bank further expands its remittance network with the
recent signing of a domestic remittance distributorship
agreement with M. Lhuillier Pawnshop, Inc., a leading pawnshop
chain and money transfer agency with almost 1,000 branches
nationwide.
Through this agreement, beneficiaries of China Bank On-Time
Remittance, can conveniently pick-up their remittances not only
from any China Bank branch but also from any M. Lhuillier
branch.
"This partnership affirms our commitment to make our remittance
service more convenient and accessible," says Ramon R. Zamora,
China Bank Senior Vice President and Head of Centralized
Operations Group, where the Remittance Business Division is also
under, headed by Jose Q. Cifra, Assistant Vice President.
"Our joint efforts with M. Lhuillier will result to a fast and
reliable remittance service for a large number of OFW
beneficiaries in as far as Appari in Luzon to Tawi-tawi in
Mindanao."
Aside from cash pick-up, China Bank On-Time Remittance is also
available for direct credit to the beneficiary's China Bank
account or account in other banks, can be loaded in a China Bank
On-Time Remittance Card, or sent via door-to-door delivery.
About China Bank
China Banking Corporation -- http://www.chinabank.com.ph/-- is
the first privately-owned local commercial bank in the
Philippines, with products and services including deposits and
related services, international banking services, insurance
products, loans and credit facilities, trust and investment
services, insurance products, and other services such as
acceptance of various bill payments and donations to charitable
institutions.
China Bank has 140 branches and 166 Automated Teller Machines
nationwide.
* * *
Moody's Investors Service gave China Bank a 'B' Long-term Issuer
Default Rating effective May 17, 2006.
DEVELOPMENT BANK: Fitch Affirms Ratings on Ample Profitability
--------------------------------------------------------------
Fitch Ratings has affirmed Manila-based Development Bank of the
Philippines' ratings as follows:
-- Long-term foreign currency Issuer Default rating of 'BB',
-- Long-term local currency IDR of 'BB+',
-- National Long-term rating of 'AA+(phi)',
-- Individual raring of 'C/D' and
-- Support ratings of '3'.
The Outlook on the ratings is Stable. The ratings reflect DBP's
adequate profitability and balance sheet strength, underpinned
by a considerable likelihood of support arising from its wholly-
government owned status. As a state-owned policy bank focusing
on the economic sectors, DBP's loans are 30:70 split between
commercial and developmental loans, with the latter
predominantly funded by Official Development Assistance
programmes from the World Bank and other agencies. The highest
exposure is to some 41 accredited local financial institutions
("PFIs", 36% of total loans), which on-lend the ODA/DPB funding
to industrial end-borrowers, usually for developmental projects.
DBP's end-2005 impaired assets (PHP8.9 billion in NPLs and
PHP4.8bn in foreclosed property assets) ratio of 15.0% was
notably better than the industry's 19.8%, albeit still high by
international standards, thanks to the substantial low-risk
exposure to PFIs. Reserves coverage of NPLs, at 91%, should
prove sufficient. However, DBP's foreclosed property assets are
likely to be more problematic given a low 15.5% reserves
coverage. But even after taking uncovered impaired assets into
account, DBP's balance sheet strength should remain sound as
reflected by its quite solid 9.6% equity-to-asset and 21.9% CAR
ratio at mid-2006.
Meanwhile, despite its developmental lending role, DBP's
profitability is above average (ROE and ROA of 13.4% and 1.5%
compared to the industry's 8.7% and 1.1% for 2005) thanks to it
low-cost, long-term funds and lower operating expenses (cost to
income ratio of 56% vs the industry's 65%).
Established in 1947 to finance various businesses and economic
sectors in line with the government's development agenda, DBP is
the Philippines' seventh-largest bank with 5.1% of system-wide
assets.
MIRANT CORP: Bankruptcy Court Approves New York Tax Settlement
--------------------------------------------------------------
Mirant Corp. disclosed that the United States Bankruptcy Court
for the Northern District of Texas has approved a settlement
among certain of its New York subsidiaries still in bankruptcy
and various local jurisdictions of disputed property taxes for
Mirant's Bowline and Lovett electric generating facilities.
The settlement resolves pending disputes regarding refunds
sought by Mirant for property taxes paid for 1995 through 2003
and unpaid taxes assessed for 2003 through 2006. Property taxes
paid for 1995 through 2003 and unpaid taxes assessed for 2003
through 2006 were previously expensed by Mirant for financial
reporting purposes. Under the settlement, Mirant will receive
refunds totaling approximately US$163 million for 1995 through
2003, and will pay unpaid taxes of approximately US$115 million
for 2003 through 2006, resulting in Mirant receiving a net cash
amount of US$48 million. As a result of the refunds and the
reduction in unpaid taxes under the settlement, Mirant will
recognize in the fourth quarter of 2006 a gain of approximately
US$244 million.
About Mirant
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.
When the Debtors filed for protection from their creditors, they
listed US$20,574,000,000 in assets and US$11,401,000,000 in
debts. The Debtors emerged from bankruptcy on Jan. 3, 2006.
(Mirant Bankruptcy News, Issue No. 107; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Moody's Investors Service assigned its B2 corporate family
rating, effective July 13, 2006, on Mirant Corporation.
PSI TECHNOLOGIES: Regains Nasdaq Compliance
-------------------------------------------
On July 17, 2006, PSi Technologies Holdings, Inc., received a
Nasdaq Staff Deficiency letter indicating that the company
failed to comply with the minimum bid price requirement of
US$1.00 over the previous 30 consecutive business days as
required by the Nasdaq Marketplace Rules.
During the subsequent 180-day compliance period provided under
the Marketplace Rules, the closing bid price of the company's
American Depositary Share has been at US$1.00 per share or
greater for at least 10 consecutive business days.
Accordingly, PSi Technologies disclosed that it received a
Nasdaq Staff Letter, dated December 12, 2006, advising that the
company has regained compliance with the minimum bid price
requirement for continued listing found in Nasdaq Marketplace
Rule 4320(e)(2)(E)(i).
About PSi Tech
PSi Technologies (NASDAQ: PSIT) --
http://www.psitechnologies.com/-- is an independent
semiconductor assembly and test service provider to the power
semiconductor market. The Company provides comprehensive
package design, assembly and test services for power
semiconductors used in telecommunications and networking
systems, computers and computer peripherals, consumer
electronics, electronic office equipment, automotive systems and
industrial products.
As reported in the Troubled Company Reporter - Asia Pacific on
August 10, 2006, PSi Technologies Holdings, Inc., disclosed that
its financial statements for the year ended December 31, 2004,
contained in its 2004 Annual Report on Form 20-F/A, as filed
with the United States Securities and Exchange Commission on
July 24, 2006, included an audit report containing a going
concern qualification from SyCip Gorres Velayo & Co., its
independent public accounting firm.
SGV pointed to the Company's recurring losses from operations
and net capital deficiency, the TCR-AP said.
=================
S I N G A P O R E
=================
CHINA VENTURE: Court to Hear Wind-Up Petition on Dec. 29
--------------------------------------------------------
On Dec. 7, 2006, Portcullis Trustnet has filed an application to
wind up the operations of China Venture Group Pte Ltd.
Accordingly, the High Court of Singapore will hear the wind-up
petition on Dec. 29, at 10:00 a.m.
The Petitioner's solicitor can be reached at:
Aptus Law Corporation
No. 6 Temasek Boulevard
#09-05 Suntec Tower Four
Singapore 038986
EPIC INTERNATIONAL: Proofs of Debt Due on Dec. 26
-------------------------------------------------
Epic International Pte Ltd, which was placed under creditors'
voluntary wind-up, requires its creditors to submit their proofs
of debt by Dec. 26, 2006.
Failure to comply with the requirement will exclude a creditor
from sharing in the company's distribution of dividend.
The company's joint liquidators can be reached at:
Ong Lee Wha
Ong Soo Hwa
c/o S.H.Ong & Company
545 Orchard Road #11-07
Far East Shopping Centre
Singapore 238882
GETRONICS NV: Unveils Cash Offer for EUR100-Million 2008 Bonds
--------------------------------------------------------------
Getronics N.V. discloses that EUR89,131,000 in aggregate
principal amount of the Bonds 2008 has been tendered by holders
of the Bonds 2008.
The bonds have been tendered under the cash offer for its
outstanding EUR100 million unsubordinated convertible bonds due
2008, which have been tendered in the cash tender offer launched
in respect of the Bonds 2008 on Dec. 14, 2006.
The Purchase Price of the Bonds 2008 will be determined during
the calculation period which commences on Dec. 20, 2006, and,
will expire at 5:00 p.m. CET on Dec. 21, 2006. A detailed
description of the manner in which the Purchase Price will be
determined is set out in the Tender Offer Memorandum on Dec. 14,
2006. The Company expects to announce the Purchase Price and
the aggregate principal amount of Bonds 2008, which it has
accepted for purchase on 22 December 2006.
Settlement of the Cash Offer is expected to take place on or
about Jan. 15, 2007, subject to the terms and conditions set out
in the Tender Offer Memorandum -- including the condition of the
successful closing and settlement of the Company's offering of
EUR95,050,000 3.875% senior unsecured convertible bonds due
2014, which is expected to occur on Jan. 12, 2007.
The dealer managers in relation to the Cash Offer are Rabo
Securities and KBC Financial Products U.K. Ltd. Rabo Securities
is the tender agent. Linklaters acts as legal adviser on behalf
of Getronics and Clifford Chance LLP acts as legal adviser on
behalf of the dealer managers.
About Getronics
Headquartered in Amsterdam, Netherlands, Getronics N.V.
-- http://www.getronics.com/-- designs, integrates and manages
ICT infrastructures and business solutions for many of the
world's largest global and local companies and organizations,
helping them maximize the value of their information technology
investments. Getronics has some 27,000 employees in over 30
countries and approximate revenues of EUR3 billion. The
company has regional offices in Boston, Madrid and Singapore.
Its shares are traded on Euronext Amsterdam.
* * *
Getronics N.V.'s 'B' long-term corporate credit rating, along
with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3'
recovery ratings on CreditWatch with negative implications,
where they had originally been placed on Jan. 19.
The '3' recovery rating indicates Standard & Poor's expectation
of meaningful (50%-80%) recovery of principal for secured
lenders in the event of a payment default.
Moody's Investors Service downgraded Getronics' corporate family
rating to B2 from B1 and placed the ratings on review for
possible downgrade following the company's announcement of half
year results showing a widening of net losses and fall in
margins below the company's expectations. Concurrently the
rating on the EUR100 million senior unsecured convertible Dutch
bonds due 2008 has been downgraded to Caa1 from B3
PETROLEO BRASILEIRO: Distributing Interest on Own Capital
---------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras approved remuneration
distribution to its shareholders in the form of interest on
self-owned capital. The value to be distributed, totaling
BRL1,974 million, corresponds to a gross value of BRL0.45 per
ordinary and preferred share. The sum will be accrued in the
accounting statements for Dec. 31, 2006, and is expected to be
disbursed by March 31, 2007, based on the shareholding position
on Dec. 28, 2006. As of Jan. 2, 2007, the shares will start
being traded ex-interest on self-owned capital.
If the payment is made after Dec. 31, 2006, it will be added to
the SELIC rate variation accumulated between Dec. 31 and the
actual payment date. This interest on self-owned capital must
be discounted from the remuneration that is distributed at the
end of the 2006 fiscal year and is subject to 15% (fifteen
percent) withholding tax, except for shareholders who declare
immunity or exemption.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: P-34 Platform Starts Operations in Jubarte
---------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras disclosed that the P-34
platform has started operations, beginning the Phase 1 of
production at the Jubarte field.
The Jubarte-4 horizontal well will produce 15,000 barrels per
day of heavy oil, with API gravity of 17 degrees. Three other
wells will constitute a contribution to P-34 to achieve its
nominal capacity of 60 thousand barrels per day in the coming
months. The second producer well, ESS-110, is estimated to
start producing by the end of 2006. When the P-34 production
reaches its peak, the Espirito Santo Business Unit (UN-ES) is
expected to attain a production of 135,000 bpd, contributing
more significantly to the increase of the national oil
production.
The start of production of the P-34 platform represents another
important step towards the achievement of Petrobras' petroleum
production goals set in its Strategic Plan.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Distributing Interest on Own Capital
---------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras approved remuneration
distribution to its shareholders in the form of interest on
self-owned capital. The value to be distributed, totaling
BRL1,974 million, corresponds to a gross value of BRL0.45 per
ordinary and preferred share. The sum will be accrued in the
accounting statements for Dec. 31, 2006, and is expected to be
disbursed by March 31, 2007, based on the shareholding position
on Dec. 28, 2006. As of Jan. 2, 2007, the shares will start
being traded ex-interest on self-owned capital.
If the payment is made after Dec. 31, 2006, it will be added to
the SELIC rate variation accumulated between Dec. 31 and the
actual payment date. This interest on self-owned capital must
be discounted from the remuneration that is distributed at the
end of the 2006 fiscal year and is subject to 15% (fifteen
percent) withholding tax, except for shareholders who declare
immunity or exemption.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
SEA CONTAINERS: Gov't. Invites Bidders for GNER's Franchise
-----------------------------------------------------------
The U.K. Government has invited participants to bid for Great
North Eastern Railways's franchise on the main London to
Edinburgh route, BBC News reports.
As reported in the TCR-Europe on Dec. 11, the Government decided
to end GNER's GBP1.3-billion franchise agreement to operate the
East Coast main line railway.
A GNER spokesman told BBC that the company, or its bankrupt
parent, Sea Containers Ltd., is likely to bid for the contract.
Other possible bidders, analysts say, could include First Group
and Virgin Trains.
As previously reported, the U.K. Department of Transport
temporarily authorized GNER to run the East Coast main line
railway for up to two years on a new, fixed management-contract
basis, as a temporary solution.
In 1996, Sea Containers entered into a franchise agreement with
the Strategic Rail Authority of the British Government to
operate the GNER carrying passengers on high-speed trains along
the East Coast main line in Great Britain, United Kingdom. Sea
Containers and the Transport Department entered into a new 10-
year contract in April 2005, under which the Debtor agreed to
pay the British Government GBP1.3 billion over the course of the
franchise.
London-based The Times said GNER is reportedly close to
breaching the liquidity ratio legally required to its franchise
agreement.
Robert Mackenzie, Sea Containers CEO & GNER chairman, asserts
that the rail company did not breach its franchise agreement.
It would be, however, unable to meet payments that were due to
start in May, BBC relates.
Some rail operators have expressed difficulty in turning in
profits because of the government's high revenue expectations,
BBC relates.
According to the report, GNER was unable to meet a 10% revenue
growth requirement in 2005, stipulated under the terms of its
franchise agreement.
Headquartered in London, United Kingdom -- Great North Eastern
Railway (GNER) Limited -- http://www.gner.co.uk/-- operates
high-speed express train services on the East Coast Main Line.
Most of their trains run between London King's Cross and either
Edinburgh Waverley or Leeds.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.
=================
S R I L A N K A
=================
* S&P Affirms 'B+/BB-' Ratings Affirmed with Negative Outlook
-------------------------------------------------------------
Standard & Poor's Ratings Services said it had affirmed its 'B+'
long-term foreign currency and 'BB-' local currency sovereign
credit ratings on the Democratic Socialist Republic of Sri
Lanka. The outlook remains negative. The 'B' short-term
foreign and local currency sovereign credit ratings were also
affirmed.
"The ratings on Sri Lanka reflect the high level of government
indebtedness and weak revenue mobilization, together with
security concerns posed by the unresolved conflict with Tamil
separatists," said Standard & Poor's credit analyst Agost
Benard. "These factors are balanced against the economy's
demonstrated resilience and favorable medium-term growth
prospects, as well as the benign terms of its external debt,
which impose minimal stress on external liquidity."
Sri Lanka's limited fiscal flexibility due to weak public
finances and a narrow tax base is a significant constraint on
its credit rating. Although recent tax rises caused a notable
increase in the tax-to-GDP ratio to an estimated 15.5% in 2006
from 13.1% in 2003, the country's tax base remains fundamentally
deficient. "Sri Lanka's revenue and expenditure rigidities
prevent a more robust pace of fiscal consolidation, which is
needed for improved debt sustainability. The attendant fiscal
gaps in turn fuel the inflationary impetus via the government's
partial monetization of its deficits," said Mr. Benard.
The high level of public indebtedness resulting from perennial
large fiscal deficits (averaging 8.7% of GDP for the past ten
years excluding grants) is an additional constraint on the
ratings. A lack of political will and the divergent policies of
successive governments hampered consolidation efforts in the
past. General government debt stood at an estimated 90% of GDP
in 2006, and the interest burden on this debt at close to 30% of
general government revenues further restricts fiscal
flexibility. The debt-to-revenues ratio at an estimated 470% is
more than double that of the median for similarly rated
countries, and highlights Sri Lanka's high level of indebtedness
and the relatively low fiscal resource base to service it.
"The outlook on the rating on Sri Lanka could revert to stable
with more robust initiatives to further fiscal consolidation, or
if tangible progress were achieved in a final peace settlement
with the Tamil separatists," said Mr. Benard. "A resumption of
full-scale war and fiscal slippage, however, would exert
downward pressure on the rating."
===============
T H A I L A N D
===============
* Capital Controls Come With Long-Term Costs, S&P Report Says
-------------------------------------------------------------
While controls on short-term capital inflows in the Republic of
Thailand (foreign currency BBB+/Stable/A-2, local currency
A/Stable/A-1) have succeeded in stemming further speculative
inflows, they could also trigger a pullout of foreign funds
already invested in the Kingdom, says a report published today
by Standard & Poor's Ratings Services. Titled "Capital Controls
Come At A Cost To Thailand," the report also reveals that the
country's new capital controls have spawned tighter domestic
financing conditions, harmed the Bank of Thailand's reputation,
and made investors cautious.
"Foreign investors will now be far more wary of investing in
Thai financial markets," said Standard & Poor's credit analyst
Kim Eng Tan. "This will lead to higher funding costs in the
Kingdom, with negative implications for the prices of debt and
equity assets. Although this should not harm Thai economic
prospects in the near term, it could adversely affect domestic
investment if planned government capital spending leads to the
reappearance of current account deficits. This is because such
deficits would increase Thailand's reliance on foreign
financing."
The Bank of Thailand's latest controls initially triggered a
wave of volatility across Asian financial markets, accentuated
by the seasonally low liquidity in most financial markets as
traders closed their books for the year. The disruption came at
a time of significant concerns regarding near-term market
conditions, with an expected slowdown in global economic growth
in 2007 and uncertainty over where the U.S. monetary policy on
interest rates is heading. Nevertheless, although the losses in
Thailand outpaced those of elsewhere, most markets have since
recovered.
Moreover, the implementation of capital controls in Thailand is
unlikely to heighten perceptions of risk in Asian markets, as
financial market volatilities are likely to dissipate in the
short-term unless the region suffers another significant
negative shock or abrupt policy adjustments.
"Barring a further significant negative shock, the volatility in
Asian financial markets should subside in the near term," said
Kim Eng Tan. "The healthier external balance sheets of both
Asian central banks and corporations also make the recurrence of
a 1997-type financial crisis unlikely. Asian governments,
however, must balance their instincts against exchange rate
volatility and appreciation, as well as the need to focus on the
fundamental determinants of competitiveness. While a weaker
currency could support short-term export growth, it also reduces
the urgency to engage in domestic reforms. This ultimately
results in a loss of long-term economic gains."
The report is available to subscribers of RatingsDirect, the
real-time Web-based source for Standard & Poor's credit ratings,
research, and risk analysis, at http://www.ratingsdirect.com If
you are not a RatingsDirect subscriber, you may purchase a copy
of the report by calling (1) 212-438-9823 or sending an e-mail
to research_request@standardandpoors.com. Ratings information
can also be found on Standard & Poor's public Web site at
http://www.standardandpoors.comunder Credit Ratings in the left
navigation bar, select Find a Rating, then Credit Ratings
Search. Members of the media may request a copy of this report
by contacting the media representative provided.
* Moody's Sees Credit Fundamentals Unaffected by Policy Misstep
---------------------------------------------------------------
Moody's Investors Service said that the Bank of Thailand's
abortive attempt to introduce controls on non-trade-related
short-term capital inflows and the resulting turbulence in the
country's equity market do not signify deterioration in
Thailand's credit fundamentals.
"However, the authorities' quick reversal and scaling back of
the controversial measures does raise concerns about the
consistency and soundness of current policies over the long
run," said Moody's Vice President Thomas Byrne, "although
currently it does not seem that the authorities are about to
adopt systematic protectionist and inward-looking policies which
would adversely affect Thailand's economic competitiveness and
credit fundamentals."
He said that the government of Thailand's Baa1 foreign and local
currency bond ratings and its A3 foreign currency country
ceiling have been supported by liberalization measures and sound
fiscal, monetary and exchange rate polices since the 1997
financial crisis that have helped produce overall macroeconomic
stability with annual real GDP growth trending between 5 and 6%.
"The sharp reduction in external debt and substantial
accumulation of official foreign exchange reserves also reflects
the success of Thai policies," said Byrne. "Sizable current
account surpluses, until last year, coupled with increasingly
large foreign direct investment inflows have been the main
reason for the build-up in official reserves since the '97
crisis to almost US$65 billion in early December, a level that
exceeds the country's total stock of external debt."
He said the Bank of Thailand's abortive attempt on December 18
to regulate speculative inflows was in reaction to the rise in
portfolio and other short-term inflows since 2005 and especially
in recent months. However, the measures had the unintended
consequence of precipitating, rather than stabilizing,
volatility in short-term capital flows
In contrast, concerns that the year-to-date 15% appreciation of
the baht against the dollar would erode export competitiveness
are not readily evident. Thai exports grew 17% in the first 10
months of 2006 compared with the same period in 2005, noted the
analyst. This may, nevertheless, have been a distant concern.
"The BOT may have rejected orthodox options as unappealing, as
the recent focus of policy has been focused on restraining
inflationary pressures, and, therefore, the Bank probably did
not opt to lower interest rates in an attempt to discourage
capital inflows," said Byrne. "Concerns about the costs of
sterilizing large capital inflows and complications for monetary
policy may have been a contributing factor to take the
alternative, more drastic action."
Although the massive sell-off in the Thai stock exchange index
on Oct. 19 was the steepest since the financial crisis of almost
a decade ago, he said, economic conditions have nothing in
common with that period.
"While Thailand's economic fundamentals and overall policy
capabilities are much improved, we believe the introduction of
burdensome regulations affecting investment or prolonged
enforcement of capital controls would, over time, introduce
distortions and cloud the overall investment climate of a
country at Thailand's level of development," said Byrne.
=============
V I E T N A M
=============
ASIA COMMERCIAL BANK: Fitch Affirms 'D' Individual Rating
---------------------------------------------------------
Fitch Ratings has affirmed Vietnam-based Asia Commercial Bank's
Individual and Support ratings of 'D' and '5', respectively.
The ratings reflect ACB's good profitability and adequate level
of capital. The bank has grown rapidly over recent years, with
its balance sheet expanding 130% over the three years to end-
2005. Its loan book is 50:40:10 split between consumer, private
businesses and state-owned enterprises, reflecting its niche
focus in the retail business segments which has been
considerably neglected by Vietnam's larger state-owned banks.
Despite its rapid growth, ACB has maintained good asset quality,
with little in the way of new NPLs over recent years and a
NPLs/loans ratio of just 0.3% at end-2005. Additionally, almost
all loans are tangibly secured on a low/conservative loan-to-
value basis. However, foreclosure is a time-consuming and
uncertain process in Vietnam due to a relatively inefficient
legal system. Meanwhile, profitability has been good with the
bank typically achieving a RoAA of 1.5%, thanks to good margins
from its retail oriented deposit base, reasonable fee income and
cost efficiency levels, and low loan loss charges.
ACB's capital strength is also sufficiently adequate, with an
end-2005 equity/assets ratio and CAR of 5.3% and 12.0%
respectively. That said, and given the emerging and therefore
potentially volatile nature of Vietnam's economy, and legal
system concerns, Fitch believes a higher level of capitalisation
is warranted to support the bank's rapid growth. In this
regard, the bank advises that it plans to issue VND1.65 trillion
in convertible bonds (compared to its end-2005 capital base of
VND1.3trillion), most of which will convert in early-2007.
ACB was founded in 1993 by a group of local businessmen who
still hold 20% of the bank. Other shareholders include the
International Finance Corp. and Standard Chartered Bank
('A+'/Stable), both of which are represented on the board and
provide ACB with considerable technical assistance.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Allstate Explorations NL ALX 12.65 -51.62
Austar United Communications Ltd. AUN 231.54 -52.58
Hutchison Telecommunications
(Aust) Ltd. HTA 1696.65 -786.31
Indophil Resources NL IRN 37.79 -69.96
Intellect Holdings Limited IHG 15.01 -0.83
KH Foods Ltd KHF 62.30 -1.71
Lafayette Mining Limited LAF 78.17 -127.82
Life Therapeutics Limited LFE 59.00 -0.38
RP Data Ltd RPX 24.25 -6.30
Stadium Australia Group SAX 135.23 -41.84
Tooth & Company Limited TTH 97.05 -70.08
CHINA AND HONG KONG
Artel Solutions Group
Holdings Limited 931 29.19 -18.65
Asia Telemedia Limited 376 10.89 -5.50
Bestway International
Holdings Limited 2994 25.00 -0.67
Chang Ling Group 561 77.48 -76.83
Chengdu Book - A 600083 21.50 -3.07
China Liaoning International
Cooperation Holdings Ltd. 638 20.12 -42.96
China Kejian Co. Ltd. 35 54.71 -179.23
Datasys Technology
Holdings Ltd 8057 14.1 -2.07
Dynamic Global Holdings Ltd. 231 39.43 -2.21
Everpride Biopharmaceutical
Company Limited 8019 10.16 -2.16
Fujian Changyuan Investment
Holdings Limited 592 31.36 -54.04
Guangdong Kelon Electrical
Holdings Co Ltd 921 685.74 -96.88
Guangdong Meiya Group
Company Ltd. 529 107.16 -49.54
Hainan Overseas Chinese
Investment Co. Ltd. 600759 32.70 -15.28
Hans Energy Company Limited 554 94.75 -10.76
Heilongjiang Sun & Field
Science & Tech. 620 29.96 -49.18
Hualing Holdings Limited 382 242.26 -28.15
Huda Technology & Education
Development Co. Ltd. 600892 17.29 -0.19
Hunan Anplas Co., Ltd. 156 94.17 -65.04
Hunan GuoGuang Ceramic
Co., Ltd. 600286 87.44 -68.55
Hunan Hengyang 600762 68.45 -7.20
Innovo Leisure Recreation
Holdings Ltd. 703 13.68 -2.01
Jiamusi Paper Co. Ltd. 699 120.30 -56.84
Jiangxi Paper Industry
Co. Ltd 600053 19.58 -12.80
Junefield Department
Store Group Limited 758 16.80 -6.34
Loulan Holdings Limited 8039 13.01 -1.04
Mindong Electric Group Co., Ltd. 536 21.63 -1.50
New City (Beijing) Development
Limited 456 242.25 -21.46
New World Mobile Holdings Ltd 862 295.66 -12.53
Orient Power Holdings Ltd. 615 176.86 -64.20
Shenyang Hejin Holding
Company Ltd. 633 83.18 -20.87
Shenz China Bi-A 17 39.13 -224.64
Shenzhen Dawncom Business Tech
and Service Co., Ltd 863 79.84 -37.30
Shenzhen Shenxin Taifeng
Group Co., Ltd. 34 95.27 -44.65
Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25
Sichuan Changjiang Packaging
Holding Co. Ltd. 600137 13.11 -72.76
Sichuan Topsoft Investment
Company Limited 583 113.12 -148.61
SMI Publishing Group Ltd. 8010 10.48 -7.83
Songliao Automobile Co. Ltd. 600715 49.56 -3.76
Success Information
Industry Group Co. 517 88.67 -18.67
Taiyuan Tianlong Group Co.
Ltd 600234 13.47 -87.63
UDL Holdings Limited 620 12.04 -9.31
Winowner Group Co. Ltd. 600681 38.03 -62.88
Xinjiang Hops Co. Ltd 600090 86.63 -11.26
Yantai Hualian Development
Group Co. Ltd. 600766 59.99 -7.66
Yueyang Hengli Air-Cooling
Equipment Inc. 622 49.89 -17.71
Zarva Technology Co. Ltd. 688 101.76 -102.01
Zhejiang Haina Sporting and
Touring Goods Co. Ltd. 925 21.43 -33.33
INDONESIA
Ades Waters Indonesia Tbk ADES 21.35 -8.93
Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21
Hotel Sahid Jaya SHID 71.05 -4.26
Jakarta Kyoei Ste JKSW 44.72 -38.57
Mulialand Tbk MLND 141.33 -45.99
Panca Wiratama Sakti Tbk PWSI 39.72 -18.82
Steady Safe SAFE 19.65 -2.43
Toba Pulp Lestrari Tbk INRU 403.58 -198.86
Unitex Tbk UNTX 29.08 -5.87
Wicaksana Overseas
International Tbk WICO 43.09 -46.36
Sekar Bumi Tbk SKBM 23.07 -41.95
Suba Indah Tbk SUBA 85.17 -9.18
Surya Dumai Industri Tbk SUDI 105.06 -30.49
JAPAN
Mamiya-OP Co., Ltd. 7991 152.37 -67.11
Montecarlo Co. Ltd. 7569 66.29 -3.05
Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10
Tsuchiya Twoby Home Co., Ltd. 1753 24.01 -2.05
Sumiya Co., Ltd. 9939 89.32 -11.57
Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14
MALAYSIA
Antah Holdings Bhd ANT 184.60 -98.30
Ark Resources Berhad ARK 25.91 -28.35
Cygal Bhd CYG 58.47 -69.79
Comsa Farms Bhd CFB 50.74 -25.55
Mentiga Corporation Berhad MENT 22.13 -18.25
Metroplex Bhd MEX 323.51 -49.28
Mycom Bhd MYC 222.58 -136.17
Lityan Holdings Bhd LIT 22.22 -19.11
Olympia Industries Bhd OLYM 272.49 -281.44
Pan Malay Industries PMRI 199.08 -6.30
Panglobal Bhd PGL 188.83 -60.07
Park May Bhd PMY 11.04 -13.58
PSC Industries Bhd PSC 62.80 -116.18
Sateras Resources Bhd SRM 43.84 -27.08
Setegap Berhad STG 19.92 -26.88
Wembley Industries Holdings Bhd WMY 111.72 -204.61
PHILIPPINES
APC Group Inc. APC 67.04 -163.14
Atlas Consolidated Mining and
Development Corp. AT 33.59 -57.17
Cyber Bay Corporation CYBR 11.54 -58.06
East Asia Power Resources Corp. PWR 92.55 -64.61
Fil-Estate Corporation FC 33.30 -5.80
Filsyn Corporation FYN 19.20 -8.83
Gotesco Land, Inc. GO 17.34 -9.59
Prime Orion Philippines Inc. POPI 98.36 -74.34
Swift Foods Inc. SFI 26.95 -8.23
Unioil Resources & Holdings
Company Inc. UNI 10.64 -9.86
United Paragon Mining Corp. UPM 21.19 -21.52
Universal Rightfield Property
Holdings Inc. UP 45.12 -13.48
Uniwide Holdings Inc. UW 61.45 -30.31
Victorias Milling Company Inc. VMC 127.83 -32.21
SINGAPORE
ADV Systems Auto ASA 14.32 -8.54
China Aviation Oil (Singapore)
Corporation CAO 211.96 -390.07
Compact Metal Industries Ltd. CMI 54.36 -25.64
Falmac Limited FAL 10.90 -0.73
Gul Technologies Singapore
Limited GUL 152.80 -27.74
HLG Enterprise HLGE 150.70 -12.72
Informatics Holdings Ltd INFO 22.30 -9.14
L&M Group of Companies LNM 57.98 -5.20
Liang Huat Aluminium Ltd. LHA 19.30 -76.43
Lindeteves-Jacoberg Limited LJ 225.52 -53.23
Pacific Century Regional PAC 1381.26 -107.11
See Hup Seng Ltd. SHS 17.36 -0.09
SOUTH KOREA
BHK Inc 3990 24.36 -17.38
C & C Enterprise Co. Ltd. 38420 28.05 -14.50
Cenicone Co. Ltd. 56060 36.82 -1.46
Cheil Entech Co. Ltd. 53330 37.25 -0.31
DaeyuVesper Co. Ltd. 41140 19.06 -1.60
Dewell Elecom Inc. 32590 10.93 -6.92
Everex Inc. 47600 23.15 -5.10
EG Greentech Co. 55250 186.00 -1.50
EG Semicon Co. Ltd. 38720 166.70 -12.34
Tong Yang Major 1520 2332.81 -86.95
TriGem Computer Inc 14900 629.32 -292.96
THAILAND
Bangkok Rubber PCL BRC 70.19 -56.98
Central Paper Industry PCL CPICO 40.41 -37.02
Circuit Electronic
Industries PCL CIRKIT 20.37 -64.80
Daidomon Group Pcl DAIDO 12.92 -8.51
Datamat PCL DTM 12.69 -6.13
Kuang Pei San Food Products
Public Co. POMPUI 12.51 -9.87
Sahamitr Pressure Container
Public Co. Ltd. SMPC 20.77 -28.13
Sri Thai Food & Beverage Public
Company Ltd SRI 18.29 -43.37
Tanayong PCL TYONG 178.27 -734.30
Thai-Denmark PCL DMARK 21.37 -18.88
Thai-Wah PCL TWC 91.56 -41.24
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Nolie Christy Alaba, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara
Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,
Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is $575 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are $25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***