/raid1/www/Hosts/bankrupt/TCRAP_Public/070130.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, January 30, 2007, Vol. 10, No. 21
Headlines
A U S T R A L I A
ADVANCED MARKETING: Gets Court Nod to Employ BSI as Claims Agent
ANSELL LTD.: Raises Bid for Polish Condom Maker Unimil
AWB LIMITED: Government Starts Consulting Farmers on Veto Right
BAYPROP 14: Members to Receive Wind-Up Report on February 23
CEBA ENTERPRISES: Schedules Final Meeting on February 23
ILECIA PTY: Members Opt to Close Business
ILLAG NOMINEES: Members Opt for Voluntary Liquidation
JAMES MARSDEN: Enters Liquidation Proceedings
KNIGHTSBRIDGE PTY: Members' Final Meeting Slated for Feb. 23
LAW MORTGAGES: Members Appoint Liquidators
MASTRIDGE PTY: Members and Creditors to Meet on February 23
MENDRAN PTY: Nick Mascitelli Appoints Receivers and Managers
MINING SUPPLIES: Enters Voluntary Wind-Up
N. J. MCCOWAT: Shuts Down Business Operations
ONE.TEL LIMITED: Case Against Messrs. Rich & Silbermann Resumes
PEACH DEVELOPMENTS: Members Pass Resolution to Wind Up Firm
RECOLLECTIONS INVESTMENTS: Wind-Up Process Commenced
SUNCORP-METWAY: Gets FSSA Approval for Promina Merger
SYMBION HEALTH: National Australia Bank Adds Shareholdings
VILLAGE ROADSHOW: Court Favors AU$12-M Counterclaim v. Ziegler
C H I N A & H O N G K O N G
ASIA ALUMINUM: Starts Operations of Biggest Aluminum Processor
BESTFORM CONSTRUCTION: Court Sets Wind-Up Hearing on Feb. 21
CHINA WEST: LBB & Associates Expresses Going Concern Doubt
CITIC PACIFIC: Inks US1.12-Bil. Mine Dev. Project in Australia
DILIGENT WIN: Wind-Up Hearing Slated for February 21
FORSTERA COMPANY: Liquidators Cease to Act
GOSPELS DEBATING: Final Meeting Fixed for March 2
HONCHAMP LTD: Members to Receive Wind-Up Report on February 23
INCORPORATED OWNERS: Liquidators to Receive Claims Until Feb. 2
INTERGEN (HK): Creditors Must Prove Debts by March 1
MAN CHUNG: Members Pass Resolutions to Wind Up Firm
NO RISK: Placed Under Voluntary Wind-Up
SPIDER TEXTILES: Sole Member Opts to Close Business
THINK TECHNOLOGY: First Meetings Slated for February 12
TOP SILVER: Creditors and Contributories to Meet on January 27
I N D I A
BRITISH AIRWAYS: Resumes Talks Over Strike Action
CANARA BANK: Records INR3.63-Bil. Net Profit in Dec. '06 Qtr.
CENTURION BANK: Net Profit Up 40% in Quarter Ended Dec. 31, 2006
CITY UNION BANK: Net Rose 11.5% in Quarter Ended Dec. 31, 2006
CORPORATION BANK: Set to Enter Credit Card Business Next Month
DUNLOP INDIA: Discloses Director Appointments & Reappointments
ESSAR OIL: Largest Shareholder Seeks Firm's Delisting
GENERAL MOTORS: Plans to Sell Allison Transmission to Cut Costs
SUN MICROSYSTEMS: Posts US$3.56B Revenues for Dec. 2006 Quarter
SUN MICROSYSTEMS: Inks Landmark Agreement with Intel Corp.
SYNDICATE BANK: Net Profit Up 20% in Quarter Ended Dec. 31, 2006
I N D O N E S I A
ALCATEL-LUCENT: Provides Preliminary Unaudited Results for 2006
ALCATEL-LUCENT: Weak Financial Results Cue S&P to Hold Ratings
ALCATEL-LUCENT: Alenia Space Unit Inks EUR103-Mln Satellite Deal
CA INC: Launches Internet Security Protection for Windows Vista
CORUS GROUP: Takeover Panel Unveils Auction Rules for Asset Sale
GOODYEAR TIRE: Discloses Conversion Period for 4.00% Conv. Notes
GOODYEAR TIRE: Fire Halts Operations at Distribution Center
HILTON HOTELS: Declares US$0.04 Per Share Dividend
HUNTSMAN CORP: Completes Sale of HPL to SABIC Petrochemicals
INDOSAT: To Open Tender To Build New Satellite
METSO OYJ: Nomination Committee Proposes Seven Members to Board
METSO OYJ: Acquires 100% of Japanese Metso-SHI Joint Venture
METSO OYJ: Paper Unit to Supply Large Papermaking Line to Japan
PERTAMINA: To Export Low-Sulfur Fuel Oil, Naphtha in February
TELKOM INDONESIA: Posts IDR10.5-Trillion Profit for 2006
* Fitch Revises Indonesia's Rating Outlook to Positive
J A P A N
ASAHI MUTUAL: Fitch Upgrades IFS Rating to 'BB+'; Outlook Stable
MITSUBISHI MOTORS: Discloses December Sales and Export Results
NOMURA HOLDINGS: Posts JPY143BB Net Income for 9-Month Period
SANYO ELECTRIC: To Recall 160,000 Washing Machines Over Defects
SANYO ELECTRIC: Mitsubishi May Ask Sanyo to Pay for Lost Revenue
K O R E A
ACTUANT CORP: Acquires Injectaseal Deutschland for US$13 Million
DURA AUTOMOTIVE: Judge Carey Approves Deloitte as Tax Advisor
DURA AUTOMOTIVE: Judge Carey Okays Deloitte & Touche as Auditor
KOREA EXCHANGE BANK: Ties Up with Japan's Resona Bank
KOREA EXCHANGE BANK: Prosecutors Indict Lone Star's Korea Chief
KOREA EXCHANGE: Purchases Export Credit of Samsung Electronics
M A L A Y S I A
ANTAH HOLDINGS: Names MIMB Bank as New Rehab Scheme Adviser
ANTAH HOLDINGS: Unit Sells Entire Equity in KVR to Amanahraya
ARMSTRONG WORLD: Wants Intercompany Claims Okayed up to US$3Mil.
ARMSTRONG WORLD: Asks District Court if Sea-Pac Appeal is Proper
COMSA FARMS: Receives MYR43.97 Mil. AmTrustee Demand for Payment
COMSA FARMS: Unit Receives Demand for Payment of EUR35,207
GREIF INC: S&P Rates Proposed US$300-Mil. Senior Notes at BB-
GREIF INC: Moody's Rates US$300MM Senior Unsecured Notes at Ba2
SHAW GROUP: Posts US$1.27 Bil. Revenue for Quarter Ended Nov. 30
SOLUTIA INC: Court Extends Plan-Filing Period Through April 16
SOLUTIA INC: Completes Upsizing US$1.225 Billion DIP Financing
SOLUTIA INC: Equity Committee Hires Experts for Pharmacia Case
N E W Z E A L A N D
AIR NEW ZEALAND: Finds Common Ground with EPMU on Jobs' Future
ARCHITECTUAL CONCEPTS: Creditors Must Prove Claims by Feb. 28
BUSINESS I.T.: Liquidation Hearing Slated for February 1
LIFESTYLE OREWA: Court Sets Liquidation Hearing on February 1
PHOENIX SECURITY: Faces Liquidation Proceedings
SURFACE DESIGN: Court Hears CIR's Liquidation Petition
TOP CLASS: Creditors Must Prove Debts by February 28
TOURLINE LIMITED: Appoints Official Assignee as Liquidator
YMA INVESTMENTS: Shareholders Appoint R.L. Merlo as Liquidator
P H I L I P P I N E S
COVANTA HOLDING: Discloses Recapitalization Plan
COVANTA HOLDING: Commences Tender Offer on Various Senior Notes
LAND BANK: Pres. Arroyo Swears in G. Elepano as President & CEO
MIRANT CORP: Sells 6 U.S. Gas Plants for US$1.4 Bil. to LS Power
MIRANT CORP: S&P Says Ratings Unaffected by Power Plant Sale
MIRANT CORP: Mirant Lovett Wants More Time to File Plan
* Swiss Global Systems Integrator Offers Major Investment in RP
S I N G A P O R E
CLASSIC INTERNATIONAL: Court Sets Wind-Up Hearing on Feb. 9
CYGRON PTE: Court to Hear Wind-Up Petition on Feb. 2
DIGILAND INTERNATIONAL: P. Ngo Steps Aside; New Director Named
GUL TECHNOLOGIES: Six Shareholders Increase Stake in Company
HAI CHEONG: Pays First & Final Dividend to Creditors
LEAR CORP: Posts US$4.3 Billion Fourth Quarter 2006 Net Sales
MIYAMA FOOD: To Distribute Dividend for Unsecured Creditors
REFCO INC: Files December 2006 Monthly Operating Report
REFCO INC: Refco LLC Files Nov. 2006 Monthly Operating Report
SEAGATE TECHNOLOGY: Wants to Gain More Acquisitions
T H A I L A N D
BLOCKBUSTER INC: Declares US$18.75 Per Share Cash Dividend
DAIMLERCHRYSLER: Might Delay Releasing 2006 Financial Statements
* BOND PRICING: For the Week 15 January to 19 January 2006
- - - - - - - -
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A U S T R A L I A
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ADVANCED MARKETING: Gets Court Nod to Employ BSI as Claims Agent
----------------------------------------------------------------
The Hon. Christopher S. Sontchi of the United States Bankruptcy
Court for the District of Delaware authorized Advanced Marketing
Services Inc. and its debtor-affiliates to employ Bankruptcy
Services LLC as claims and noticing agent in their Chapter 11
cases to, among other things:
(1) maintain, process and docket claims filed in their
bankruptcy cases;
(2) transmit notices to appropriate parties as required by
the Bankruptcy Code, the Federal Rules of Bankruptcy
Procedure and the Local Rules of the District of
Delaware;
(3) assist the Debtors within the dissemination of
solicitation materials relating to a plan of
reorganization; and
(4) assist the Debtors with the preparation of their
schedules and statements.
Furthermore, BSI will assist the Debtors with:
(1) the preparation of amendments to the master creditor
lists;
(2) administrative tasks relating to the reconciliation and
resolution of claims; and
(3) the preparation, mailing, and tabulation of ballots for
the purpose of voting to accept or reject a
Reorganization Plan or Reorganization Plans.
BSI will not perform any services involving the exercise of
professional judgment without further Court ruling, Mark D.
Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, notes.
The Debtors submit that the employment of BSI will promote the
economical and efficient administration of their estates because
the Debtors will be able to avoid duplication in claims
administration, and in providing notices to their creditors. In
addition, the Court and the Clerk of Court will be relieved from
the heavy administrative burden and other burdens due to the
large number of creditors and other parties-in-interest involved
in the Debtors' Chapter 11 cases.
According to Mr. Collins, BSI is a firm that specializes in
claims processing, noticing, and other administrative tasks in
Chapter 11 cases. BSI has (a) substantial experience in the
matters on which it is to be engaged, and (b) acted as official
claims agent in several cases in the U.S. Bankruptcy Court for
the District of Delaware.
Daniel C. McElhinney, BSI Vice President of Client Services,
assures the Court that in its capacity as the Claims and
Noticing Agent in the Debtors' Chapter 11 cases, BSI:
(a) will not consider itself employed by the U.S. Government
and will not seek any compensation from the U.S.
Government;
(b) waives any rights to receive compensation from the U.S.
Government;
(c) will not be an agent of the U.S. Government and will not
act on behalf of the U.S. Government; and
(d) will not employ any past or present employees of the
Debtors in connection with its work as the Claims and
Noticing Agent.
Mr. Collins relates that BSI will bill the Debtors monthly, and
all invoices will be due and payable upon receipt at these
rates:
Consulting Services Hourly Rate
------------------- -----------
Senior Bankruptcy Consultant US$225 - US$295
Bankruptcy Consultant US$185 - US$225
IT Programming Consultant US$140 - US$190
Cash Managers-Document and Data Review US$125 - US$175
Clerical US$40 - US$60
BSI reserves the right to reasonably increase its prices,
charges and rates annually on January 2nd of each year.
However, if the increases exceed 10%, BSI will be required to
give 60 days' prior written notice to the Debtors.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services Inc.
-- http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution, and publishing services, currently
primarily to the book industry. The company has operations in
the U.S., Mexico, the United Kingdom, and Australia and employs
approximately 1,200 people worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No.
3; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
ANSELL LTD.: Raises Bid for Polish Condom Maker Unimil
------------------------------------------------------
Ansell Limited has made a new tender offer of PLN121.6 million
(approximately US$42.2 million) for all of the shares of the
Polish listed company Unimil S.A. subject to receiving 75%
acceptance, Ansell said in a press release.
Unimil is a condom manufacturer and marketer, with the leading
retail condom market share in Poland and a presence in Germany
through its Condomi subsidiary.
Ansell's CEO, Doug Tough, stated "since our effort to purchase
Unimil last July, Ansell has continued to follow Unimil's
progress. We believe the current offer, priced at PLN5.90 per
share (approximately 11% higher than the previous offer) will be
viewed favorably by Unimil's institutional and private
shareholders. As previously advised, this acquisition is in
accordance with Ansell's announced strategy of making bolt-on
acquisitions that broaden our geographic reach. Unimil offers
leading brands, strong market leadership and good people.
Moreover, it gives us a significant presence and additional
operational flexibility in Eastern Europe. It also follows our
acquisition earlier this year of 75% of Jissbon - a leading
Chinese branded condom company."
The acquisition will be paid for from available resources and is
expected to be EPS neutral in fiscal year 2007.
The Troubled Company Reporter - Asia Pacific learned that the
company first made a bid of PLN109 million for the Unimil shares
back in July 2006. In a market update on Aug. 14, 2006, the
company, however, declared that its tender offer did not reach
the targeted 80% acceptance level.
About Ansell Limited
Based in Melbourne, Australia, Ansell Limited --
http://www.ansell.com/-- is a global provider of healthcare
barrier protective products, primarily gloves and condoms.
On Oct. 5, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services affirmed its
'BB+' long-term corporate credit rating on Ansell and revised
the outlook on the company to positive from stable.
The TCR-AP also reported on Sept. 5, 2006, that Moody's
Investors Service upgraded Ansell's issuer and senior unsecured
ratings to Baa3 from Ba1. The outlook is stable.
AWB LIMITED: Government Starts Consulting Farmers on Veto Right
---------------------------------------------------------------
On Jan. 31, 2007, wheat farmers in Emerald, Queensland, will be
consulted on whether AWB Limited should lose its monopoly over
wheat exports, The Australian reports.
The meeting will be held at the Emerald Memorial Club.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 7, 2006, the veto powers for wheat exports will be taken
off AWB's monopoly wheat export arm, AWB International, and
given to Agriculture Minister Peter McGauran. Prime Minister
John Howard has confirmed that the government is rushing through
legislation to transfer the veto power.
The government has decided on the interim measure, the TCR-AP
noted.
According to the TCR-AP, West Australian MP Wilson Tuckey wanted
Prime Minister John Howard to consider changes to Australia's
wheat marketing system. Mr. Tuckey demanded that:
* AWB Limited be stripped of its single-desk monopoly as
Australia's wheat exporter; or
* responsibility for wheat be given to the Wheat Export
Authority, which would enlist private operators to handle
buying and selling.
According to The Australian, the Emerald meeting is the first of
25 events to be held around the country, as the federal
Government's new Wheat Export Marketing Consultation Committee
considers the question of whether AWB should lose the right to
veto the export of wheat by its competitors.
The Australian notes that the venues in the wheat state of
Western Australia have yet to be announced.
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.
BAYPROP 14: Members to Receive Wind-Up Report on February 23
------------------------------------------------------------
The members of Bayprop 14 Pty Ltd will meet on Feb. 23, 2007, at
10:00 a.m., to receive the liquidator's report of the company's
wind-up proceedings and property disposal exercises.
As reported by the Troubled Company Reporter - Asia Pacific, the
company entered members' voluntary wind-up on July 24, 2006.
The liquidator can be reached at:
Bruce N. Mulvaney
Bruce Mulvaney & Co
1st Floor, 613 Canterbury Road
Surrey Hills, Victoria 3127
Australia
About Bayprop 14
Bayprop 14 Pty Ltd -- trading as Track N Field Sportswear -- is
a distributor of Men's and Boys' Clothing.
The company is located in Victoria, Australia.
CEBA ENTERPRISES: Schedules Final Meeting on February 23
--------------------------------------------------------
CEBA Enterprises Pty Ltd will hold a final meeting for its
members on Feb. 23, 2007, at 2:30 p.m.
At the meeting, the members will be asked to:
-- receive the final receipts and payments from the appointed
liquidator, Jason Bettles;
-- receive a formal notice of the end of the administration;
and
-- discuss other business
As reported by the Troubled Company Reporter - Asia Pacific, Mr.
Beetles was appointed as the company's liquidator on June 29,
2006.
The Liquidator can be reached at:
Jason Bettles
Worrells Solvency & Forensic Accountants
Level 6, 50 Cavill Avenue
Surfers Paradise, Queensland 4217
Australia
Web site: http://www.worrells.net.au
About Ceba Enterprises
Ceba Enterprises Pty Ltd is an insurance carrier.
The company is located in Queensland, Australia.
ILECIA PTY: Members Opt to Close Business
-----------------------------------------
At a general meeting held on Jan. 12, 2007, the members of
Ilecia Pty Ltd passed a special resolution to close the
company's business and distribute the company's assets.
Accordingly, Martin James Hill was appointed as liquidator.
The Liquidator can be reached at:
Martin James Hill
Chartered Accountant
48 Greenhill Road, Wayville
Australia
About Ilecia Pty
Ilecia Pty Ltd is an investor relation company.
The company is located in South Australia, Australia.
ILLAG NOMINEES: Members Opt for Voluntary Liquidation
-----------------------------------------------------
On Dec. 29, 2006, the members of Illag Nominees Pty Ltd resolved
by a written resolution to voluntarily wind up the company's
operations.
In this regard, John Georgakis was appointed as liquidator.
The Liquidator can be reached at:
John Georgakis
Level 27, 8 Exhibition Street
Melbourne, Victoria 3000
Australia
Telephone: (03) 9288 8000
About Illag Nominees
Illag Nominees Pty Ltd is an investor relation company.
The company is located in Victoria, Australia.
JAMES MARSDEN: Enters Liquidation Proceedings
---------------------------------------------
On Jan. 4, 2007, James Marsden Pty Ltd was placed under members'
voluntary liquidation.
The liquidator can be reached at:
Eric P. Marsden
12 Mary Street
Como, Western Australia 6152
Australia
About James Marsden
James Marsden Pty Ltd is an investor relation company.
The company is located in Western Australia, Australia.
KNIGHTSBRIDGE PTY: Members' Final Meeting Slated for Feb. 23
------------------------------------------------------------
The final meeting of the members of Knightsbridge Pty Ltd will
be held on Feb. 23, 2007, at 10:15 a.m., to consider the
liquidator's account of how the company was wound up and its
properties disposed of.
According to the Troubled Company Reporter - Asia Pacific, the
company entered members' voluntary liquidation on July 24, 2006.
The liquidator can be reached at:
Bruce N. Mulvaney
Bruce Mulvaney & Co
1st Floor, 613 Canterbury Road
Surrey Hills, Victoria 3127
Australia
About Knightsbridge Pty
Knightsbridge Pty Ltd operates offices of holding companies.
The company is located in Victoria, Australia.
LAW MORTGAGES: Members Appoint Liquidators
------------------------------------------
The members of Law Mortgages Queensland Pty Ltd met on Jan. 12,
2007, and appointed Jason Bettles and Susan Carter as the
company's liquidators.
The Liquidators can be reached at:
Jason Bettles
Susan Carter
Worrells Solvency & Forensic Accountants
Level 6, 50 Cavill Avenue
Surfers Paradise, Queensland 4217
Australia
About Law Mortgages
Law Mortgages Queensland Pty Ltd is an investor relation
company.
The company is located in Queensland, Australia.
MASTRIDGE PTY: Members and Creditors to Meet on February 23
-----------------------------------------------------------
The members and creditors of Mastridge Pty Ltd will meet on
Feb. 23, 2007, at 10:30 a.m., to receive the liquidator's report
regarding the company's wind-up proceedings.
The Troubled Company Reporter - Asia Pacific has reported that
Leonard A. Milner was named as the company's liquidator on
Feb. 24, 2006.
The Liquidator can be reached at:
Leonard A. Milner
Venn Milner & Co
Chartered Accountants
Suite 1, 43 Railway Road
Blackburn, Victoria 3130
Australia
About Mastridge Pty
Mastridge Pty Ltd is a distributor of durable goods.
The company is located in Victoria, Australia.
MENDRAN PTY: Nick Mascitelli Appoints Receivers and Managers
------------------------------------------------------------
On Jan. 12, 2007, Nick Mascitelli Imports Pty Ltd appointed
Robert William Whitton and John Vouris as joint and several
receivers and managers of all the assets, undertakings, and
properties of Mendran Pty Ltd.
The Joint Receivers and Managers can be reached at:
Robert William Whitton
John Vouris
Level 7, 1 Margaret Street
Sydney, New South Wales 2000
Australia
About Mendran Pty
Mendran Pty Limited -- trading as Mandinga Brothers -- is a
distributor of footwears.
The company is located in New South Wales, Australia.
MINING SUPPLIES: Enters Voluntary Wind-Up
-----------------------------------------
At a general meeting held on Jan. 5, 2007, the members of Mining
Supplies Australia Pty Ltd passed a special resolution to
voluntarily wind up the company's operations and distribute the
proceeds of its assets disposal.
In this regard, Priit Ari Taylor was appointed as liquidator.
The Liquidator can be reached at:
Priit Ari Taylor
Chartered Accountant
48 Greenhill Road
Wayville, South Australia 5034
Australia
About Mining Supplies
Mining Supplies Australia Pty Ltd -- trading as Minsup -- is
involved with equipment rental and leasing.
The company is located in South Australia, Australia.
N. J. MCCOWAT: Shuts Down Business Operations
---------------------------------------------
At a meeting held on Jan. 4, 2007, the members of N. J. McCowat
Pty Ltd resolved to voluntarily wind up the company's operations
and appointed Dennis John Offermans as liquidator.
The Liquidator can be reached at:
Dennis John Offermans
Offermans PPB
PO Box 2424
Townsville, Queensland 4810
Australia
About N. J. McCowat
N. J. McCowat Pty Ltd is an investor relation company.
The company is located in Queensland, Australia.
ONE.TEL LIMITED: Case Against Messrs. Rich & Silbermann Resumes
---------------------------------------------------------------
This week, lawyers for One.Tel Limited founder Jodee Rich will
submit their final arguments as to why Mr. Rich and former
finance director Mark Silbermann should be cleared of any
wrongdoing in relation to the company's collapse, the Australian
IT cites a report from The Australian.
It will be the last chance for Mr. Rich to defend the
allegations of the Australian Securities and Investments
Commission, the paper says.
As reported in the Troubled Company Reporter - Asia Pacific on
February 8, 2006, the ASIC has initiated actions against Messrs.
Rich and Silbermann for allegedly allowing the company to trade
while it was insolvent and for providing misleading financial
information to the Company's Board of Directors.
The ASIC wants to ban Messrs. Rich and Silbermann from holding
directorships and is seeking compensation of AU$92 million, the
value allegedly lost by the telco by continuing to trade after
February 2001, when ASIC alleged it became insolvent, the TCR-AP
said.
The defense submissions, which will be given in writing to the
judge, are likely to contain recommendations as to how Justice
Robert Austin should view the evidence given by former One.Tel
directors James Packer and Lachlan Murdoch, as well as other
witnesses, the paper relates, noting that some of the witnesses
are key Publishing and Broadcasting Ltd executives.
In 2006, the ASIC's lawyers gave closing arguments, which are
yet to be made public, The Australian recounts.
PBL and News Limited, publisher of The Australian, were majority
shareholders in One.Tel and jointly invested close to
AU$1 billion in the company, the paper says.
According to The Australian, the legal and investigative costs
relating to the case are now estimated to be AU$30 million. Mr.
Rich is believed to have spent more than AU$12 million defending
the case, the paper cites insiders, as saying.
Although not a party to the proceedings, the Packer family has
retained James Elliott SC to monitor the hearing. The Packers
have spent millions of dollars on the court case, assisting ASIC
in its investigations, The Australian says.
The paper also reveals that a special liquidator, appointed to
investigate a controversial AU$132 million rights issue that was
cancelled just before One.Tel was placed into administration,
was allowed access to the documents and is likely to seek access
to the defense submissions.
* * *
One.Tel Limited is an Australian based telecommunications
company, belonging to One.Tel Group. One.Tel Ltd. was
established in 1995 soon after the deregulation of the
Australian telecommunications industry, most of which are
currently under external administration by court appointed
liquidators.
One.tel is currently in liquidation due to financial problems.
Ferrier Hodgson was appointed as voluntary administrator on
May 29, 2001. The administrator's report stated that the
company was insolvent as of March 2001. Accordingly, the
administrator terminated approximately 3,000 employees in June
that same year.
Steve Sherman and Peter Walker of Ferrier Hodgson were then
named liquidators on July 24, 2001.
The Liquidators can be reached at:
Steve Sherman
Peter Walker
Joint Liquidators
Ferrier Hodgson
Level 17
2 Market Street
Sydney, NSW
Australia 2000
PEACH DEVELOPMENTS: Members Pass Resolution to Wind Up Firm
-----------------------------------------------------------
At a general meeting held on Dec. 18, 2006, the members of Peach
Developments & Investments Pty Ltd passed a special resolution
to voluntarily wind up the company's operations.
Subsequently, an ordinary resolution was passed to appoint Erik
Hipwood as liquidator.
The Liquidator can be reached at:
Erik Hipwood
Mulraney Accountants Caloundra
Level 1, Echelon Centre
65 Bulcock Street
Caloundra, Queensland 4551
Australia
About Peach Developments
Peach Developments & Investments Pty Ltd operates offices of
holding companies.
The company is located on Queensland, Australia.
RECOLLECTIONS INVESTMENTS: Wind-Up Process Commenced
----------------------------------------------------
At a general meeting held on Jan. 10, 2007, the members of
Recollections Investments Pty Ltd passed a special resolution to
voluntarily wind up the company's operations and distribute the
assets among its members.
In this regard, Timothy James Clifton and Mark Christopher Hall
were appointed as joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Timothy James Clifton
Mark Christopher Hall
Chartered Accountants
Level 10, 26 Flinders Street
Adelaide
Australia
About Recollections Investments
Recollections Investments Pty Ltd operates hardware stores.
The company is located in Victoria, Australia.
SUNCORP-METWAY: Gets FSSA Approval for Promina Merger
-----------------------------------------------------
Suncorp-Metway Limited's proposal to acquire Promina Group
Limited has received another regulatory clearance after being
approved under the Financial Sector (Shareholdings) Act 1998,
the company said in a press release.
The Hon. Peter Dutton MP, Minister for Revenue and Assistant
Treasurer, unconditionally approved Suncorp's proposal under
section 14 of the FSSA, considering it to be in the national
interest.
Suncorp Chief Executive John Mulcahy said high-level integration
planning is proceeding well, ahead of the Promina shareholder
vote scheduled for March 5, 2007.
The company has earlier obtained the Australian Competition and
Consumer Commission's approval for the merger.
Mr. Mulcahy says the merger "will bring together two successful
and well-managed businesses to create one of Australia and New
Zealand's leading diversified financial services organizations."
About Suncorp-Metway
Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses. Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.
Standard and Poor's gave the company a B financial strength
rating on July 10, 2005.
SYMBION HEALTH: National Australia Bank Adds Shareholdings
----------------------------------------------------------
Symbion Health Ltd. discloses that National Australia Bank has
increased its shareholdings in Symbion from 52.75 million
ordinary shares to 77.71 million ordinary shares, the company
said in a regulatory fling to the Australian Stock Exchange.
The increased acquisition gives NAB a 12.04% voting power in the
company.
Melbourne-based Symbion Health Limited --
http://www.symbionhealth.com/-- formerly Mayne Group Limited,
provides health products and services. The company's principal
activities during the fiscal year ended June 30, 2006, consisted
of diagnostic and wellness products and services through its
Pathology, Imaging, Medical Centers, Pharmacy Services and
Consumer divisions. Symbion Pathology owns and operates private
pathology practices, providing pathology services to healthcare
professionals and their patients. Symbion Medical Centers
provides local communities with healthcare and family medicine.
Symbion Imaging provides imaging services to patients on the
eastern seaboard of Australia. Symbion Pharmacy Services
supplies a line of pharmaceuticals and associated products to
pharmacies. Symbion Consumer manufactures and markets
nutraceuticals (vitamins and mineral supplements).
The Troubled Company Reporter - Asia Pacific reported on
Oct. 12, 2005, that Moody's Investors Service affirmed the
company's senior unsecured rating of Ba1. At the same time,
Moody's revised the rating outlook to stable from negative. The
company also carries Moody's NP rating for its short-term.
The TCR-AP has also reported that Standard & Poor's Ratings
Services placed its 'BB' corporate credit rating and debt issue
ratings on Mayne Group Ltd. on CreditWatch with positive
implications. The action follows the lodgment of the company's
scheme booklet for consideration by shareholders.
VILLAGE ROADSHOW: Court Favors AU$12-M Counterclaim v. Ziegler
---------------------------------------------------------
On Jan. 25, 2007, Justice Habersberger of the Supreme Court of
Victoria ruled that all claims against Village Roadshow Limited
by Orrong Strategies Pty Ltd, the company of former employee
Peter Ziegler, had failed.
The company recounts that Orrong Strategies claimed various
amounts in bonus and other payments in relation to Mr. Ziegler's
role as the company's consultant for eight years. Mr. Ziegler
left Village Roadshow in 2002.
The company's counterclaim against Mr. Ziegler, Orrong
Strategies, and another company, Remut Pty Ltd, succeeded for
AU$12,020,849.
Village Roadshow notes that it has reviewed the judgment and, as
a result, has reduced its provision in relation to this matter
by AU$3.6 million (AU$2.5 million after tax). Accordingly, the
2007 reported net profit guidance previously released to the
market, has now been adjusted to approximately AU$38 million.
The balance of the provision is not material and will be
retained pending the outcome of any appeal process, Village
Roadshow notes.
On Jan. 10, 2007, the Troubled Company Reporter - Asia Pacific
reported that Village Roadshow had expectations for the 2007
financial year of a Net Profit after Tax of AU$27 million
including a loss of approximately AU$13 million as a result of
fair value movements. Following the change in accounting
treatment, Net Profit after Tax is now expected to be
approximately AU$36 million including an approximate
AU$4 million unrealized derivative loss (based on the Dec. 31,
2006, fair value movement).
Net Profit after Tax before accounting for the fair value
movements remains unchanged at approximately AU$40 million, the
TCR-AP noted.
About Village Roadshow
Headquartered in Melbourne, Australia, Village Roadshow Limited
-- http://www.villageroadshow.com.au/-- is an international
media and entertainment company that operates core businesses in
cinema, movie production, film distribution, radio, and theme
parks.
The Company's troubles began in 2003 when it offered to buy back
its preference shares to head off a litigation threat by some
preference shareholders who were angered at the Company's
suspension of dividend payments. Village Roadshow's reported
and budgeted profitability would not allow it to comfortably
fund about AU$42 million worth of ordinary and preference share
dividends out of annual earnings. For the past years, the
Company has been facing major litigation brought by former
business partners, who had invested in its film investment
scheme.
In December 2005, the Film Production division undertook a
substantial restructure. As part of this restructure, a US$115
million Promissory Note was issued to Crescent Film Holdings and
options to acquire a 50% shareholding in the Hollywood film
production and related film exploitation business, Village
Roadshow Pictures Group, were granted to Crescent and its
affiliates. This initiative, together with the release of a
US$70 million security deposit (replaced by a etter of Credit),
returned significant cash reserves to Village Roadshow. By
January 2006, Village Roadshow had advised that VRPG had reached
agreement with its financiers to increase its film production
facility from US$900 million to US$1.4 billion. VRPG will
continue to co-produce and co-finance films with its principal
production partner, Warner Bros. The revolving period of the
facility has also been extended for a further three years. As a
result, drawdowns will now be available under the facility until
January 2011 (previously February 2008) with the debt now
scheduled to be fully repaid by January 2015 (previously January
2012).
* * *
The Troubled Company Reporter - Asia Pacific reported on
September 18, 2006, that Village Roadshow Limited recorded an
after tax loss of AU$35.1 million for the year ended June 30,
2006, consistent with guidance previously provided by the
Company. The result compared to a profit re-stated under
Australian Equivalents to International Financial Reporting
Standards of AU$49.3 million for the year ended June 30, 2005.
================================
C H I N A & H O N G K O N G
================================
ASIA ALUMINUM: Starts Operations of Biggest Aluminum Processor
--------------------------------------------------------------
Asia Aluminum Holdings Ltd has funded more than CNY8 billion to
Asia's biggest aluminum producer, China Daily reports.
Production at the facility, which is located in Guangzhou city's
Dawang Industrial Development Zone, began on Jan. 26, 2007.
The facility is expected to produce more than 350,000 metric
tons of high quality aluminum this year, the paper relates.
Annual output however, is expected to double and reach more than
700,000 metric tons when the project's second phase is completed
in the fourth quarter of 2007, making it one of the three
largest aluminum production facilities in the world, China Daily
adds.
The project also includes a multi-function metal testing center
and an aluminum mould-processing center.
Kwong Wuichun, chairman of Asia Aluminum, told the paper that
the project will have a bright future due to growing demand for
aluminum products in both domestic and international markets.
"The project will help establish China as a major aluminum
production base and one of the largest aluminum product
suppliers in the world," Mr. Kwong said.
The facility's automated production lines, major equipment as
well as its technology, were imported from Germany, Italy, Japan
and the United States, Mr. Kwong added.
* * *
Headquartered in Kowloon, Hong Kong, Asia Aluminum Holdings
Limited -- http://www.asiaalum.com/-- is the powerhouse of
aluminum extrusion, offering comprehensive solutions in design
and engineering, extrusion, surface finishes, fabrication and
delivery. The Company is quoted on the Hong Kong Stock Exchange
and is one of the largest investor-owned aluminum businesses in
Asia, serving the infrastructure, transportation, industrial,
and home improvement sectors.
The company currently operates five production facilities in
Nanhai in China's Guangdong Province with an aggregate capacity
of 150,000 metric tons, and is building a new avant-garde
platform in the neighboring city Zhaoqing, to facilitate future
progressive business rollouts.
The Troubled Company Reporter - Asia Pacific reported on July
10, 2006, that Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Asia Aluminum Holdings Ltd
to BB- from BB. At the same time, it lowered its issue rating
on US$450 million in senior unsecured notes due 2011 to BB- from
BB. The ratings were removed from CreditWatch, where they had
been placed with negative implications on Feb. 8, 2006. Both
rating outlook are negative.
In addition, the TCR-AP reported on July 7, 2006, that Moody's
Investors Service has downgraded Asia Aluminum Holdings Ltd's
corporate family and senior unsecured bond ratings to B1 from
Ba3. The ratings outlook is stable. This concludes the review
for possible downgrade commenced on March 15, 2006, following
the announcement on the privatization of the Company.
BESTFORM CONSTRUCTION: Court Sets Wind-Up Hearing on Feb. 21
------------------------------------------------------------
The High Court of Hong Kong will hear the wind-up petition
against Bestform Construction Ltd on Feb. 21, 2007, at 9:30 a.m.
Jiang Guozhao filed the petition with the Court on Dec. 18,
2006.
Jiang Guozhao's solicitor can be reached at:
Chong Yan-Tung Chris
34/F, Hopewell Centre
183 Queen's Road East
Wanchai
Hong Kong
CHINA WEST: LBB & Associates Expresses Going Concern Doubt
----------------------------------------------------------
LBB & Associates Ltd, LLP, an independent registered public
accounting firm, expressed substantial doubt about China West
Coal Energy Inc.'s ability to continue as a going concern after
auditing the company's financial statements for the fiscal years
ended Sept. 30, 2006, and 2005.
The auditing firm specifically pointed to the company's
sustained recurring losses, no source of revenue, and limited
working capital problem.
China West incurred US$602,399 net loss on US$923,129 revenues
for the 12-month period ended Sept. 2006, as compared with
US$214, 221 net loss on US$1.30 million revenues for the same
period of 2005.
As of end-Sept. 2006, the company's balance sheet showed no
current and total assets. The company, however, has US$10,000
current liability resulting to a shareholders' deficit of the
same amount.
* * *
China West Coal Energy Inc., formerly known as Endo Networks,
Inc., was originally incorporated in Texas as "Discount Mortgage
Services, Inc." on July 11, 2000. The Company purchased Endo
Networks, Inc., a corporation incorporated in Ontario, Canada on
Jan. 11, 2001. In November 2001, the Company changed its name
to Endo Networks, Inc. and was re-domiciled to the State of
Nevada in December 2002. The Company conducted business through
Endo Canada and all of its assets were contained within Endo
Canada, which engaged in conceptual and software development
business for approximately two years through ongoing contract
relationships with software development companies.
The company's principal executive office is located at Xi'an,
Shaanxi Province, People's Republic of China.
CITIC PACIFIC: Inks US1.12-Bil. Mine Dev. Project in Australia
--------------------------------------------------------------
CITIC Pacific has signed a US$1.12 billion contract with China
Metallurgical Group to develop an iron ore mine in Australia,
The Standard reports.
According to the report, China Metallurgical will be responsible
for the procurement of mining equipment, design, construction,
installation, and testing of the infrastructure at the mining
area.
As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 9, 2007, CITIC Pacific is geared to start its planned
mining operations in Australia's Pilbara region.
In July 2006, Citic Pacific paid Australian businessman Clive
Palmer AU$290 million in cash for the initial mining rights to 1
billion tonnes of magnetite at its Balmoral deposits, south of
Cape Preston, where it plans to build Western Australia's first
magnetite mining and processing venture by 2010, TCR-AP said.
In addition, the TCR- AP recently reported that CITIC Pacific
has joined the queue of international groups casting its eyes
over Cape Lambert Iron's namesake magnetite project on the
Pilbara coast.
State-owned China Metallurgical has undertaken similar
construction works for large-scale iron ore projects in
countries including China, Brazil, Iran, and Venezuela, The
Standard notes.
* * *
Based in Hong Kong, CITIC Pacific Ltd --
http://www.citicpacific.com/-- is engaged in a range of
businesses in China and Hong Kong, including steel
manufacturing, property development and investment, power
generation, aviation, infrastructure, communications and
distribution. It is 29% indirectly owned by China International
Trust & Investment Corporation.
On June 28, 2006, The Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on CITIC Pacific Ltd to BB+
from BBB-. At the same time, it removed the rating from
CreditWatch, where it had been placed with negative implications
on April 7, 2006. The outlook is stable.
In addition, the TCR-AP also reported that Moody's Investors
Service on June 16, 2006, assigned a Ba1 corporate family rating
to CITIC Pacific Ltd and has withdrawn its Baa3 issuer rating.
The senior unsecured rating for CITIC Pacific Finance (2001)
Ltd's bond is downgraded to Ba1 from Baa3. The rating outlook
is stable. This concludes the review initiated by the rating
agency in April 2006.
DILIGENT WIN: Wind-Up Hearing Slated for February 21
----------------------------------------------------
On Dec. 20, 2006, Li Yuk San filed a petition before the High
Court of Hong Kong to wind up Diligent Win Ltd.
The Court will hear the petition on Feb. 21, 2007, at 9:30 a.m.
Li Yuk San's solicitors can be reached at:
Chong Yan-Tung Chris
34/F, Hopewell Centre
183 Queen's Road East, Wanchai
Hong Kong
FORSTERA COMPANY: Liquidators Cease to Act
------------------------------------------
On Jan. 17, 2007, Lai Kar Yan Derek and Darach E. Haughey ceased
to act as joint and several liquidators of Forstera Company Ltd.
According to the Troubled Company Reporter - Asia Pacific,
Messrs. Derek and Haughey were appointed as the company's
liquidators on July 20, 2006.
The former Liquidators can be reached at:
Lai Kar Yan, Derek
Darach E. Haughey
35/F, One Pacific Place
88 Queensway
Hong Kong
GOSPELS DEBATING: Final Meeting Fixed for March 2
-------------------------------------------------
Gospels Debating Society Ltd will hold a final meeting on
March 2, 2007, at 11:00 a.m., to consider the liquidator's
account of the company's wind-up proceedings.
According to the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on Oct. 27, 2006.
The liquidator can be reached at:
Wong Leung Wai
Room 2001-4
China Insurance Group Building
141 Des Voeux Road, Central
Hong Kong
HONCHAMP LTD: Members to Receive Wind-Up Report on February 23
--------------------------------------------------------------
The members of Honchamp Ltd will meet on Feb. 23, 2007, at 11:00
a.m., to receive a report regarding the company's wind-up
proceedings and property disposal exercises from the
liquidators.
As reported by the Troubled Company Reporter - Asia Pacific, the
company's creditors were required to file their proofs of claim
before Oct. 31, 2006.
The joint and several liquidators can be reached at:
Andrew C. C. Ma
Felix K. L. Lee
19/F, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
INCORPORATED OWNERS: Liquidators to Receive Claims Until Feb. 2
---------------------------------------------------------------
Bruno Arboit and Simon Blade, as liquidators of The Incorporated
Owners of Foremost Building, will be receiving proofs of claim
from the company's creditors until Feb. 2, 2007.
The Liquidators can be reached at:
Bruno Arboit
Simon Blade
1203-1213 China Merchants Tower
Shun Tak Centre
168-200 Connaught Road, Central
Hong Kong
INTERGEN (HK): Creditors Must Prove Debts by March 1
----------------------------------------------------
The creditors of Intergen (Hong Kong) Ltd are required to submit
their proofs of claim by March 1, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in any distribution the company will make.
As reported by The Troubled Company Reporter - Asia Pacific, the
company's members appointed Philip Brendan Gilligan as
liquidator on Dec. 29, 2006.
The Liquidator can be reached at:
Philip Brendan Gilligan
7/F, Alexandra House
18 Chater Road, Central
Hong Kong
MAN CHUNG: Members Pass Resolutions to Wind Up Firm
---------------------------------------------------
On Jan. 16, 2007, the members of Man Chung Ltd passed a special
resolution to voluntarily wind up the company's operations.
Accordingly, Wong Chun Keung was appointed as liquidator and was
authorized to divide the company's assets to its members.
The Liquidator can be reached at:
Wong Chun Keung
29/F, K. Wah Centre
191 Java Road, North Point
Hong Kong
NO RISK: Placed Under Voluntary Wind-Up
---------------------------------------
At an extraordinary general meeting held on Jan. 15, 2007, the
members of No Risk Company Ltd passed a special resolution to
voluntarily wind up the company's operations.
In this regard, Ip Pui Lam was appointed as liquidator and was
authorized to divide the company's assets to its members.
The Liquidator can be reached at:
Ip Pui Lam
2/F, Jonsim Place
228 Queen's Road East, Wanchai
Hong Kong
SPIDER TEXTILES: Sole Member Opts to Close Business
---------------------------------------------------
On Jan. 19, 2007, the sole member of Spider Textiles Ltd passed
a special resolution to voluntarily wind up the company's
operations.
Subsequently, Chung Miu Yin Diana and Yeung Betty Yuen were
appointed as joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Chung Miu Yin Diana
Yeung Betty Yuen
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
THINK TECHNOLOGY: First Meetings Slated for February 12
-------------------------------------------------------
The first meetings of the creditors and contributories of Think
Technology (International) Ltd will be held on Feb. 12, 2007, at
3:00 p.m. and 5:00 p.m., respectively.
According to the Troubled Company Reporter - Asia Pacific, the
company faced wind-up proceedings on June 14, 2006.
TOP SILVER: Creditors and Contributories to Meet on January 27
--------------------------------------------------------------
The creditors and contributories of Top Silver International
Holdings Ltd will meet on Jan. 27, 2007, at 11:00 a.m. and
11:30 a.m., respectively.
As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Hong Kong heard a wind-up petition against the
company on April 13, 2005. Royal Light International Ltd.,
filed the petition.
=========
I N D I A
=========
BRITISH AIRWAYS: Resumes Talks Over Strike Action
-------------------------------------------------
British Airways Plc revealed that talks aimed at averting a
strike action by the Transport & General Workers Union,
representing 11,000 of its cabin crew employees, resumed
yesterday, Jan. 29, James Lumley writes for Bloomberg News.
As previously disclosed, the T&G will carry out a strike
Today and Wednesday until a dispute over sick leave, pay and
staffing is resolved.
According to the Associated Press, BA Chief Executive Willie
Walsh met with union officials last Sunday.
Both parties declined to comment on the said weekend
discussions.
According to reports, the T&G agreed to postpone the first 24
hours of a planned three-day strike to allow more time for
further labor negotiations.
Tony Woodley, general secretary of TGWU, told Bloomberg that the
decision was made after a personal intervention of Mr. Walsh
with union representatives and "as a goodwill gesture."
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
British Airways carry these ratings:
* Moody's Investors Service:
-- Long-Term Corporate Family Rating: Ba1
-- Senior Unsecured Debt: Ba2
-- Outlook: Negative
* Standard & Poor's:
-- Long-Term Foreign Issuer Credit Rating: BB+
-- Long-Term Local Issuer Credit Rating: BB+
CANARA BANK: Records INR3.63-Bil. Net Profit in Dec. '06 Qtr.
-------------------------------------------------------------
Canara Bank's financial results as filed with the Bombay Stock
Exchange show a slight change in the bank's net profit in the
quarter ended Dec. 31, 2006, compared to that in the
corresponding quarter in 2005.
For the December 2006 quarter, Canara Bank posted a net profit
of INR3.630 billion, a 2% increase from the INR3.563 booked in
the December 2005 quarter.
The bank's income for the last three months of 2006 total
INR32.607 billion, a 28% increase from the INR25.512 billion in
the corresponding period in 2005.
The percentage increase of the bank's total expenditures,
however, is more than the rise in revenues. The bank's total
expenditures rose by 38% from INR18.520 billion in the quarter
ended Dec. 31, 2005, to INR25.597 billion in the December 2006
quarter.
The bank provided INR2.630 billion for provisions and
contingencies for the December 2006 quarter and recorded
INR750 million in taxes.
Headquartered in Bangalore, India, Canara Bank --
http://www.canbankindia.com/-- provides services to a
diverse clientele group with a range of subsidiaries and
sponsored institutions. The bank services include networked
automated teller machines, anywhere banking, telebanking, remote
access terminals Internet, and mobile banking and debit card.
The bank's Merchant Banking Division handles assignments as
arrangers/lead manager/co-manager/manager to the
offer/advisor/share valuator. Bancassurance arm of the Bank has
tie-up arrangements in both life and non-life insurance
segments. Corporate Cash Management Services network of the
Bank provides services related to local and upcountry cheque
collection, bulk cheques collection and zero balance account
facility. Executor, Trustee and Taxation Services of the bank
provides services, such as debenture trusteeship, will and
executorship, trusteeship, personal tax assistance and power of
attorney services. Its Agricultural Consultancy Services
handled 60 projects during the fiscal year ended March 31, 2006.
Fitch Ratings gave Canara Bank an individual rating of D on
June 1, 2005.
CENTURION BANK: Net Profit Up 40% in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
For the three months ended Dec. 31, 2006, Centurion Bank of
Punjab Limited gained a net profit of INR335.1 million, or
INR0.23 earnings per share, the bank's financial results as
filed in the Bombay Stock Exchange shows. The net profit for
the quarter under review is 44% more than the INR232.7 million
booked in the quarter ended Dec. 31, 2005.
The bank's total income for the quarter ended Dec. 31, 2006,
soared by 62% to INR4.342 billion from the INR2.673 billion
recorded in the corresponding period in 2005.
Higher expenses followed the increased revenues. The bank's
total expenditures for the December 2006 quarter leaped to
INR3.637 billion from the INR2.324 billion incurred in the
December 2005 quarter.
Provisions for tax and contingencies also increased. Tax more
than doubled to INR208 million in the quarter under review from
the INR77.8 million in the December 2005 quarter. Provisions
and contingencies quadrupled to INR161.5 million in the December
2006 quarter from the INR38.2 million booked in the
corresponding period in 2005.
A copy of the bank's financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange http://ResearchArchives.com/t/s?1926
Headquartered in Goa, India, Centurion Bank of Punjab Limited --
http://www.centurionbop.co.in/-- is a private-sector bank. The
bank provides a range of transaction banking products under cash
management services to various customer segments, such as
corporates, small and medium enterprises, utility providers and
domestic correspondent banks. The bank has entered into an
enterprise partnership with Indecomm Global Services to form
Centillion Solutions and Services. Centillion will focus on
operations and services for banking and related financial
services. The Retail Asset servicing operations of the Bank are
being transitioned to Centillion. The bank has entered into an
arrangement with IL&FS Investsmart Limited for offering equity
broking services to its customers. The wholesale banking
business is divided into Corporate, SME and Financial
Institutions Group. NRI business has been a focus of the bank.
In Trade Finance business, the bank provides services, such as
export trade, import trade, remittance, domestic trade and
structured trade.
Fitch Ratings, on November 2, 2005, gave Centurion Bank of
Punjab a support rating of 5.
CITY UNION BANK: Net Rose 11.5% in Quarter Ended Dec. 31, 2006
--------------------------------------------------------------
For the three months ended Dec. 31, 2006, City Union Bank Ltd
posted INR138.62 million in net profit, an 11.5% increase from
the INR124.33 million booked in the corresponding period in
2005.
The bank's total income rose from INR929.34 million in the
quarter ended Dec. 31, 2005, to INR1.117 billion in the December
2006 quarter. Its expenses also grew from INR668.31 million in
the December 2005 quarter to INR846.93 million incurred in the
quarter under revenue.
For the quarter under review, the bank made a INR73.2-million
provision for taxes and INR58.2 million for other provisions and
contingencies.
City Union Bank Limited -- http://cityunionbank.com/-- provides
savings accounts, current accounts, fixed deposits, cash
certificates, monthly savings, VIP deposit schemes, Flexifix
deposits, CUB Smart deposits and the insurance linked Multiple
Benefits Plan.
As reported in the Troubled Company Reporter - Asia Pacific on
Aug. 8, 2006, Fitch Ratings affirmed City Union's Individual
and Support ratings at 'D/E' and '5', respectively.
CORPORATION BANK: Set to Enter Credit Card Business Next Month
--------------------------------------------------------------
Corporation Bank is set to enter the credit card business in
February.
According to a report by The Economic Times, Corporation Bank
sees entering the credit card segment by February 2007.
The Press Trust of India, citing bank Chairman and Managing
Director B. Sambamurthy, says all the groundwork for the card
business has been completed.
The bank tied up with VISA International for this venture, The
Times relates.
The bank also reportedly plans to add 27 branches in the next
two months in the Northern and Western India.
Headquartered in Mangalore, India, Corporation Bank --
http://www.corpbank.com/-- offers a range of deposit schemes
and loan products to customers. The various products offered by
the bank include Corp Pragathi savings bank account, current
account products and term deposits. Corporation Bank offers
housing loans, education loans, consumer loans for purchase of
consumer durables, loans against future rent receivables on
leased out building/premises, loans to purchase two wheelers and
four wheelers, loans against shares, loans for purchase of
medical and other such equipments, loan to acquire office
premises/building and furniture, personal loans, loans to women
to buy gold/jewelry, and loan against mortgage of property. It
also offers a range of non-resident Indian services, as well as
debit and credit cards.
Fitch Ratings gave Corp Bank a 'C' individual rating on June 1,
2005.
DUNLOP INDIA: Discloses Director Appointments & Reappointments
--------------------------------------------------------------
Dunlop India Ltd's members, at its 79th Annual General Meeting
on Dec. 20, 2006, among others, agreed to the:
-- reappointment of Pawan Kumar Ruia and Ram Krishen
Sadhu as directors;
-- reappointment of Messrs. Lodha & Co., Chartered
Accountants, Kolkata, as the company's auditors to hold
office from the conclusion of the AGM until the conclusion
of the next AGM on remuneration, terms and conditions;
-- appointment of Ashok Kumar Jajodia and Sajjid Amir Khan as
directors;
-- appointment of Ashok Kumar Jajodia as the whole-time
director for three years with effect from Feb. 1, 2006, on
remuneration, terms and conditions;
-- appointment of Samir Kumar Paul as managing director, not
liable to retire by rotation, for a period of three years
with effect from August 3, 2006, on remuneration, terms
and conditions.
The shareholders also accorded to the adoption of the Audited
Balance Sheet as at March 31, 2006, and the Profit and Loss
Account for the year ended March 31, 2006, together with the
related directors' and auditors' report.
Headquartered in Kolkota, India, Dunlop India Limited is
involved principally in manufacturing and distributing
automotive tires and tubes. The firm's other activities include
manufacturing high-pressure hoses, steelcord belting and
vibration isolators.
In January 1998, the Board of Directors decided that the company
had become sick. The Board of Directors decided to refer the
company to the Board for Industrial and Financial Reconstruction
and abruptly announced suspension of Dunlop's operations in both
Sahagunj and Ambattur in February 1998. The Ministry for Law,
Justice and Company Affairs had also come to the conclusion
after inspection of the Books of Accounts of Dunlop India that
there were serious irregularities and had moved the Company Law
Board for appointment of Government Directors.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 29, 2006, Dunlop India submitted a INR582-crore draft
rehabilitation scheme to the BIFR.
ESSAR OIL: Largest Shareholder Seeks Firm's Delisting
-----------------------------------------------------
Essar Energy Holdings Limited, a Mauritius-based subsidiary of
Essar Global Limited and the largest shareholder and promoter of
the company, has sought to delist the equity of Essar Oil
Limited from three stock exchanges.
EEHL and the promoter group currently holds approximately 88% in
Essar Oil. EEHL has requested the Board of Essar Oil Limited to
obtain consent of the equity shareholders of the company for the
proposed delisting of the shares in accordance with the
Securities and Exchange Board of India.
Essar Oil will take up the matter in its board meeting to be
held today, Jan. 30, 2007.
The delisting of equity shares will offer more flexibility in
the operations and management of the company, greater
efficiencies and at the same time provide an exit opportunity
for its shareholders, a company release states.
EEHL intends to delist the company's equity shares from the
Bombay Stock Exchange, National Stock Exchange and Calcutta
Stock Exchange Association by following the voluntary delisting
method. After obtaining the consent of the shareholders, a
public announcement will be made in accordance with the SEBI
Guidelines for ascertaining the exit price to be paid to the
shareholders.
Essar Oil is a fully integrated oil company of international
size and scale, covering the entire value chain from exploration
and production to refining and retailing of oil. Essar has set
up over 900 retail outlets which are fully operational and plans
to set up 2500 retail outlets by the end of 2007. Essar Oil
employs highly qualified and experienced technical staff at its
refinery.
* * *
On Aug. 23, 2005, CRISIL Ratings reaffirmed the outstanding
"D" rating on the INR5.65-billion and INR2-billion Non-
Convertible Debenture programmes of Essar Oil Limited. The
rating indicates that the instruments are in default.
GENERAL MOTORS: Plans to Sell Allison Transmission to Cut Costs
---------------------------------------------------------------
General Motors Corp. is considering strategic options for
subsidiary Allison Transmission, including a possible sale, in
an effort to boost liquidity, Reuters reports.
The company, Reuters says, is in the middle of a restructuring
effort that focuses on cutting costs and improving cash flow.
"This process is another potential step in GM's plan to improve
liquidity through the assessment of strategic options for a
business that is not central to GM's mission of designing,
manufacturing and selling cars and light trucks globally," GM
said in a statement cited by Reuters.
Indianapolis-based Allison makes transmissions and hybrid
propulsion systems for commercial trucks and buses and military
vehicles and employs more than 4,000 workers.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan. The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.
SUN MICROSYSTEMS: Posts US$3.56B Revenues for Dec. 2006 Quarter
---------------------------------------------------------------
Sun Microsystems, Inc., reported results for its fiscal second
quarter, which ended Dec. 31, 2006.
Revenues for the second quarter of fiscal 2007 were
US$3.566 billion, an increase of 7% as compared with
US$3.337 billion for the second quarter of fiscal 2006. The
year-over-year revenue increase was due to sales of SPARC chip
multithreading servers and x64-based servers as well as the
increased acceptance of the Solaris 10 Operating System.
Computer Systems products revenues increased 14% year-over-year,
the fourth consecutive quarter of year-over-year revenue growth.
Net income for the second quarter of fiscal 2007 on a GAAP basis
was US$126 million or US$0.03 per share on a diluted basis, as
compared with a net loss of US$223 million, or (US$0.07) per
share, for the second quarter of fiscal 2006.
GAAP net income for the second quarter of fiscal 2007 included:
-- US$58 million of stock-based compensation charges,
-- US$26 million of restructuring and
-- related impairment of assets charges and a related tax
benefit of US$4 million.
The net impact of these three items was approximately (US$0.02)
per share on a diluted basis.
Cash generated from operations for the second quarter of fiscal
2007 was US$153 million, and cash and marketable debt securities
balance at the end of the quarter was US$4.837 billion.
"Sun's financial performance this quarter demonstrates that our
strategy and discipline are paying off," said Jonathan Schwartz,
CEO of Sun Microsystems. "The steady increase in adoption of
our key developer platforms, the outstanding performance of our
systems group, coupled with yesterday's endorsement of Solaris
by Intel and today's landmark investment by KKR Private Equity
Investors, L.P., are all validation of our momentum, and key
drivers behind our push towards sustained growth and
profitability."
Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services. It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels. The company has
operations in Brazil, Hungary and India, among others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 27, 2006, Moody's Investors Service confirmed its Ba1
Corporate Family Rating for Sun Microsystems Inc.
SUN MICROSYSTEMS: Inks Landmark Agreement with Intel Corp.
----------------------------------------------------------
Sun Microsystems, Inc., and Intel Corp. disclosed a broad
strategic alliance centered on Intel's endorsement of the
Solaris Operating System and Sun's commitment to deliver a
comprehensive family of enterprise and telecommunications
servers and workstations based on Intel Xeon processors. The
scope of the agreement spans Solaris, Java and NetBeans software
and Intel Xeon microprocessors, as well as other Intel and Sun
enterprise-class technologies. The alliance also includes joint
engineering, design and marketing efforts.
Intel is embracing Solaris as a mainstream OS and the enterprise
class, mission critical UNIX OS for Intel Xeon processor-based
servers. Intel also endorses Sun's Solaris, Java and NetBeans
products and will actively support the OpenSolaris and open Java
communities from which they continue to evolve.
Sun is committed to leading on performance and energy efficiency
in its server product line. After a comprehensive evaluation of
industry platform solutions, Sun has decided to complement its
current offerings with platforms based on Intel Architecture
optimized for Solaris beginning in the first half of 2007. Sun
believes Intel's model of alternating new microarchitectures
with new process technologies on an annual basis will offer
outstanding building blocks for Sun's customers.
Sun plans to deliver a comprehensive family of Intel-based
systems with uni-, dual- and multi-processor based servers and
workstations supporting Solaris, Windows and Linux. Intel and
Sun will also collaborate around greater than four processor
scale-up systems optimized for the Solaris OS.
"We're excited about Intel's long term Xeon road map and the
performance we're seeing with Solaris and Sun Java on the Xeon
platforms," said Jonathan Schwartz, president and CEO, Sun
Microsystems, Inc. "And Intel's endorsement for and agreement
to OEM Solaris opens markets for both of us across the world.
This is truly a landmark relationship for the industry."
"We're thrilled to be working with Sun to make Solaris on Intel
Xeon processors a great solution for our enterprise customers
worldwide," said Paul Otellini, president and CEO, Intel.
"Bringing together the best technologies from both Sun and Intel
will result in innovative products for years to come."
As part of this alliance, Intel has signed a Solaris OEM
agreement enabling Intel to distribute and support the Solaris
OS to its customers as market opportunities may arise and
consistent with Intel's product strategies. Intel and Sun will
strongly encourage independent software vendors and system
providers to expand their offerings for Solaris on Intel-based
systems, and Intel will support Sun in its efforts to optimize
applications for Solaris on Intel Xeon processor-based systems.
Intel and Sun also believe that the combination of Sun's open
source Solaris and Java development environments and the Intel
architecture provide a solid platform for ISVs to develop and
deliver applications and web services to deliver outstanding
differentiated value to enterprise customers. The Solaris
platform is supported by more than 2000 ISVs on 800+ platforms
that deliver the essential scaling, functionality and security
capable of handling explosive network growth.
Both companies expect this alliance to expand the reach of Intel
Xeon processor and Solaris OS based solutions. Solaris adoption
will be driven by the Intel Xeon processor's significant market
presence and in turn Solaris will give Intel a broader presence
in the datacenter, virtualization and high performance computing
space. The two companies will also work together on the rapid
adoption of key enterprise-class Intel and Sun technologies for
Sun's systems based on Intel Xeon processors including Intel
Virtualization Technology, Intel IO Acceleration Technology
(IOAT) and Intel Demand Based Switching.
Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services. It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels. The company has
operations in Brazil, Hungary and India, among others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 27, 2006, Moody's Investors Service confirmed its Ba1
Corporate Family Rating for Sun Microsystems Inc.
SYNDICATE BANK: Net Profit Up 20% in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
Syndicate Bank Ltd posted a net profit of INR2.261 billion for
the quarter ended Dec. 31, 2006, a 20% increase from the
INR1.879 billion booked in the quarter ended Dec. 31, 2005.
The increased profit resulted from soaring revenues while
keeping operating expenses just about the same. The bank's
total income rose by 53% from the INR11.652 billion earned in
the three months ended Dec. 31, 2005, to the INR17.843 billion
recorded in the corresponding period in 2006, while its
operating expenses showed a very slight change --
INR3.618 billion posted in the December 2005 quarter compared to
the INR3.768 billion in the December 2006 quarter.
Interest expanded by the bank for the December 2006 quarter,
however, increased to INR10.794 billion from the INR5.127
billion in the corresponding quarter in 2005.
A copy of the bank's unaudited financial results is available
for free at http://ResearchArchives.com/t/s?1923
Syndicate Bank Ltd -- http://syndicatebank.in/-- provides a
range of banking services. The bank's services include
deposits, loans, recoveries and electronic funds transfer. The
bank has also tied up with United India Insurance Company to
provide general insurance. As of March 31, 2006, the bank had
2006 branches. The bank has 38 specialized branches, which
focus on business segments, such as small and medium
enterprises.
Fitch Ratings, on June 1, 2005, gave Syndicate Bank a 'D'
individual rating.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Provides Preliminary Unaudited Results for 2006
---------------------------------------------------------------
Alcatel-Lucent expects reported revenues for the fourth quarter
of 2006 to be approximately EUR3.87 billion and reported
operating income to be approximately EUR0.12 billion, including
the impact from purchase accounting entries of approximately
EUR(0.23) billion. Restructuring charges (which consist
primarily of non cash write-offs of intangibles associated with
product rationalization and of a limited impact from headcount
reduction at this point) and asset impairment charges of
capitalized development costs are expected to be approximately
EUR(0.80) billion for the fourth quarter 2006.
Alcatel-Lucent expects on a preliminary basis its full year 2006
reported revenue to be approximately EUR12.3 billion and
reported operating income to be approximately EUR0.71 billion,
including the impact from purchase accounting entries of
approximately EUR(0.23) billion.
The reported results for the fourth quarter 2006 will include
Alcatel stand-alone operations for October and November 2006,
and the combined operations of Alcatel-Lucent for December 2006.
Businesses to be contributed to Thales will be presented as
discontinued activities.
The reported results for the full year 2006 will include Alcatel
stand-alone operations from January to November 2006, and
combined operations of Alcatel-Lucent for December 2006.
Businesses to be contributed to Thales will be presented as
discontinued activities.
These preliminary results are based on unaudited financial
information and on preliminary information reviewed by the
management to date. These results remain subject to the
completion of the Alcatel-Lucent accounting closing process, and
approval by the Board of Directors. The company will provide
its fourth quarter and full year 2006 results on Feb. 9, 2007.
Fourth Quarter and Full Year 2006
Adjusted Pro-Forma Results
In order to provide meaningful comparable information, Alcatel-
Lucent intends to provide adjusted pro-forma financial results,
in addition to reported results for the fourth quarter and full
year 2006, in its Feb. 9, 2007, announcement. These results
will include combined operations for Alcatel-Lucent as of
Jan. 1, 2006. Businesses to be contributed to Thales will be
presented as discontinued activities. These results will
exclude any impact from purchase accounting entries.
On an adjusted pro-forma basis, Alcatel-Lucent expects fourth
quarter 2006 revenue to be approximately EUR4.42 billion,
compared with revenue of EUR5.25 billion in the 2005 fourth
quarter. Fourth quarter 2006 operating profit is expected to be
approximately at breakeven, compared with EUR0.57 billion profit
for the 2005 fourth quarter.
On an adjusted pro-forma basis, Alcatel-Lucent expects full year
2006 revenue to be approximately EUR18.3 billion, compared with
EUR18.6(3) billion revenue for full year 2005. Full year 2006
operating profit is expected to be approximately EUR1.04
billion, compared with EUR1.41(3) billion in full year 2005.
Executive Commentary
"2006 was an extraordinary year in many ways for our company,"
said Patricia Russo, Chief Executive Officer of Alcatel-Lucent.
"We completed the first and largest merger to date in our
industry, we enhanced our wireless portfolio through the
acquisition of Nortel's UMTS radio business and we completed a
substantial part of the transfer of some of our operations to
Thales.
In the past few months, these moves created short-term
uncertainty for our customers and for our people as we worked to
develop the combined company's product portfolio and new
organization structure. This uncertainty together with the work
required to close the merger significantly impacted the
business. In addition, the last quarter of the year proved to
be challenging from a market perspective, driven by a shift in
spending from some of our large North American customers and
heightened competition in the global wireless market. Overall,
the 2006 adjusted pro-forma financial results of the combined
company were impacted by the weak performance in the fourth
quarter resulting in cumulative revenues for full year 2006 at a
similar level to full year 2005 revenues.
Despite the challenges we faced during the quarter, considerable
progress was made in planning the convergence of product lines,
the optimization of synergies and the preparation of cost
cutting programs. As we begin our first year as a combined
Alcatel-Lucent we can now more fully benefit from the impact of
these major strategic moves as well as begin to achieve our
future potential. Based on our outstanding combined portfolio
of technology and global footprint, we feel confident that
Alcatel-Lucent can resume growth in full year 2007, with growth
gaining momentum throughout the year, and with a growth rate at
least at the carrier market growth rate which today we see in
the mid single digits. In a market that continues to be highly
competitive, Alcatel-Lucent has decided to take additional
actions to further reduce its cost structure. Together with the
initial cost synergies plan, we expect to achieve combined cost
savings of at least EUR600 million in full year 2007, which is
EUR200 million higher than our initial synergy target for 2007.
With the merger closed and with 2006 behind us, we now look
forward to beginning a new era as a diversified player, well-
positioned with the scale and scope needed to address ongoing
market changes and opportunities," Ms. Russo concluded.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move. The company has operations in
Indonesia.
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.
* * *
As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
ALCATEL-LUCENT: Weak Financial Results Cue S&P to Hold Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said its ratings and outlook
on equipment supplier Alcatel-Lucent (BB-/Positive/B) remain
unchanged following the group's announcement of poor preliminary
annual and fourth-quarter 2006 sales and operating profit.
The shortfall is within the risks we identified that triggered
our downgrade on Dec. 5, 2006. Standard & Poor's is also
comforted by the group's cash balances of about EUR7 billion,
which provide headroom for restorative measures. Standard &
Poor's will closely examine Alcatel Lucent's final and complete
2006 results, to be published on Feb. 9, 2007, to assess in
detail the group's performance, particularly its cash
generation, and any changes in market dynamics that could affect
our expectations for the group's ratings evolution.
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. The company has operations in
Brazil and Indonesia.
ALCATEL-LUCENT: Alenia Space Unit Inks EUR103-Mln Satellite Deal
----------------------------------------------------------------
Alcatel Alenia Space, a unit of Alcatel-Lucent, signed a EUR103
million contract with the Italian Ministry of Defense to provide
the telecommunication satellite SICRAL-1B.
The satellite, dedicated to the Italian Armed Forces, will
ensure strategic and tactical communications on the Italian and
foreign territories as well as mobile communications between
terrestrial, naval and air platforms. It will also provide UHF
and SHF band satellite capacities to NATO forces, further to a
Memorandum of Understanding, which was signed in 2004 between
the Ministries of Defense of Italy, France, the United Kingdom,
and the Atlantic Alliance.
This contract, signed end of 2006, is financed by the Italian
Ministry of Economic Development, in the scope of the industry
competitiveness and high technology initiatives currently
undertaken by the Ministry.
As prime contractor, Alcatel Alenia Space will manufacture and
deliver the satellite as well as several ground segment's
subsystems, amongst which the Telecommunications Control Centre
in Vigna di Valle (Italy).
This announcement follows previous contracts signed with the
Italian Ministry of Defense, including one worth EUR72 million
signed in 2003, for non-recurring costs related to SICRAL-1B
satellite and ground segment. A further contract for the
completion of SICRAL-1B ground segment and satellite launch is
forecast in the near future.
SICRAL-1B structure manufacturing and satellite integration is
taking place in Alcatel Alenia Space's facility in Turin, Italy,
whilst the environmental tests will be carried out in its
facility in Cannes, France. The payload, which is manufacturing
in Rome, Italy, is composed of 3 UHF band, 5 SHF band and 1
EHF/Ka band transmitters.
"The SICRAL system is particularly strategic for the Italian
Defense Administration as it has already demonstrated its
efficiency in past military operations," Carlo Alberto Penazzi,
CEO of Alcatel Alenia Space in Italy, said. "SICRAL-1B
satellite, which represents a further technological development
for the Italian industry, consolidates Alcatel Alenia Space's
leading role in SICRAL system development and in the delivery of
end-to-end military telecommunications systems."
SICRAL-1B, which is set for launch end of 2007, will supplement
SICRAL-1 in operation since 2001. It will increase the
availability and the complete reliability of the SICRAL system
and will satisfy the operational requirements that the Italian
Armed Forces are facing, mainly coming from "foreign areas."
SICRAL-1B will be operational until 2019 and will be followed by
SICRAL-2, which should be operational from 2011 until 2026.
The SICRAL system has been chosen by NATO, together with the
French program Syracuse -- also under the prime contractorship
of Alcatel Alenia Space -- and its British counterpart, to
develop a network of protected telecommunications available to
allied countries (the NATO SatCom program post-2000_NSP2K). In
this position, the SICRAL system, which already guarantees
efficient operation with the other systems, will be enhanced,
thanks to the development of the SICRAL-1B satellite that will
extend the potential of the system within NATO programs until
2019, contributing to increase the total capacity available to
the Italian Armed Forces and its allies.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move. The company has operations in
Indonesia.
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.
* * *
As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent to
'BB-' from 'BB', in line with its preliminary indication in its
Nov. 7, 2006 research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
CA INC: Launches Internet Security Protection for Windows Vista
---------------------------------------------------------------
CA Inc. will deliver comprehensive virus protection for
consumers using the new Windows Vista operating system with CA
Anti-Virus 2007. CA expects to make its entire Home and Home
Office product line of Internet security software available for
Windows Vista users in the coming weeks.
In May 2006, CA was one of the first security vendors to offer
security software to Windows Vista beta users with CA Anti-
Virus. To date, more than 160,000 Windows Vista beta customers
have successfully installed the software and have realized the
benefits of CA's powerful virus protection.
As an additional benefit, all CA Anti-Virus 2007 customers are
eligible for up to US$1,500 in Virus Protection coverage. This
covers technical support, repair services and hardware
replacement in the event a user's laptop or PC fails due to a
virus infection following installation of the software.
In the coming weeks, CA expects to make available Windows Vista-
compatible versions of CA Internet Security Suite 2007, CA Anti-
Spyware 2007, CA Anti- Spam 2007, and CA Personal Firewall 2007,
which deliver easy-to-use, award- winning protection against
Internet-borne threats that can jeopardize privacy, identity,
data, and PC performance.
"We are pleased with the global security partner support we have
received on Windows Vista and that our customers will have
security solutions from CA for Windows Vista," said Ben Fathi,
corporate vice president of the Security Technology Unit at
Microsoft Corp. "Partners play a vital role in helping secure
the Windows platform, and CA has developed security technologies
that will offer our customers a more secure computing experience
on Windows Vista, Microsoft's most secure operating system to
date."
"CA is committed to making sure everyone can use the Internet
safely," said David Luft, senior vice president of product
development at CA. "By working closely with Microsoft, we are
delivering solutions that work seamlessly with the Windows Vista
operating system so they deliver optimum protection with minimal
impact on PC performance."
CA has a long-standing relationship with Microsoft to help keep
consumers safe online. Since 2003, 7.5 million customers have
installed CA Anti-Virus, as a key step of Microsoft's Protect
Your PC guidance.
About CA Inc.
Headquartered in Islandia, New York, CA Inc. (NYSE:CA)
-- http://www.ca.com/-- is an information technology management
software company that unifies and simplifies the management of
enterprise-wide IT. Founded in 1976, CA serves customers in
more than 140 countries. In Asia-Pacific, the company has
operations in Indonesia, Australia, China, Japan, Hong Kong,
India, Philippines and Thailand.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Software sectors this week,
the rating agency confirmed its Ba1 Corporate Family Rating for
CA, Inc.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$350 Million
6.5% Senior
Unsecured Notes
due 2008 Ba1 Ba1 LGD4 54%
US$1 Billion
Senior Global
Notes due 2011 Ba1 Ba1 LGD4 54%
US$460 Million
Convertible
Senior Unsecured
Notes due 2009 Ba1 Ba1 LGD4 54%
Standard & Poor's Rating Services affirmed its 'BB' corporate
credit and senior unsecured debt ratings on CA Inc., and removed
them from CreditWatch where they were placed on July 5, 2006,
with negative implications. S&P said the outlook is negative.
CORUS GROUP: Takeover Panel Unveils Auction Rules for Asset Sale
----------------------------------------------------------------
The British Takeover Panel had last week set the rules on the
auction process for the acquisition of Corus Group Plc, DNA
Money earlier stated.
As previously reported in the TCR-AP on Dec. 27, 2006, the panel
said that it requires an auction procedure to determine Corus'
buyer if the "competitive situation" between Tata Steel U.K.
Ltd. and CSN Acquisitions Ltd. remains unresolved.
On Dec. 19, 2006, the panel had given the bidders until Jan. 30
to come up with revised offers for Corus.
According to The Journal, the takeover watchdog is in
discussions with the parties involved.
Merchant banking sources close to Corus revealed that both
bidders are apprehensive about the auction process, adding the
procedure could further delay the outcome.
Analysts expect Tata Steel to offer up to 550 pence a share to
acquire Corus, The Business Standard says.
CSN is also believed to return with a higher offer as it has
increased the size of its loan facilities in recent weeks, Times
Online relates.
CSN Bid
As reported in the TCR-AP on Dec. 13, 2006, CSN increased its
purchase offer for Corus to US$11.4 billion or 515 pence a
share, topping Tata Steel's 500 pence per share offer.
Companhia Siderurgica's proposed purchase of Corus will be
funded through BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says. Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009. The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.
Tata Offer
As reported in the TCR-AP on Dec. 11, 2006, the Boards of
Directors of Tata Steel Ltd. and Corus Group have agreed on the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.
Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share. This represents a price of 1,000 pence in cash for each
Corus ADS.
The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:
-- an increase of approximately 10% compared with 455 pence,
being the Price under the original terms of the
Acquisition;
-- on an enterprise value basis, a multiple of approximately
7.5x EBITDA from continuing operations for the 12 months
to Sept. 30, 2006 (excluding the non-recurring pension
credit of GBP96 million) and a multiple of approximately
5.9x EBITDA from continuing operations for the year ended
Dec. 31, 2005;
-- a premium of approximately 38.7% to the average closing
mid-market price of 360.5 pence per Corus Share for the
12 months ended Oct. 4, 2006, being the last business day
before the announcement by Tata Steel that it was
evaluating various opportunities including Corus; and
-- a premium of approximately 22.7% to the closing mid-market
price of 407.5 pence per Corus Share on Oct. 4, 2006,
being the last business day before the announcement by
Tata Steel that it was evaluating various opportunities
Including Corus.
The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.
About Companhia Siderurgica Nacional
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Portugal and the U.S.
About Tata Steel
Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.
In March 2006, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating for Corus Group on
CreditWatch.
At the same time, Fitch Ratings changed Corus Group's outlook to
Positive from Stable and affirmed its Issuer Default Rating at
BB-.
GOODYEAR TIRE: Discloses Conversion Period for 4.00% Conv. Notes
----------------------------------------------------------------
The Goodyear Tire & Rubber Co. disclosed that its 4.00%
Convertible Senior Notes due June 15, 2034, are now convertible
at the option of the holders and will remain convertible through
March 30, 2007, the last business day of the current fiscal
quarter.
The notes became convertible because the last reported sale
price of the company's common stock for at least 20 trading days
during the 30 consecutive trading-day period ending on Jan. 18,
2007, (the 11th trading day of the current fiscal quarter) was
greater than 120% of the conversion price in effect on that day.
The notes have been convertible in previous fiscal quarters but
no conversions have taken place.
The company will deliver shares of its common stock upon
conversion of any notes surrendered prior to March 30, 2007.
Cash will be paid in lieu of fractional shares only. Issued in
June 2004, the notes are currently convertible at a rate of
83.0703 shares of common stock per US$1,000 principal amount of
notes, which is equal to a conversion price of US$12.04 per
share.
There is currently US$350 million in aggregate principal amount
of notes outstanding.
If all outstanding notes are surrendered for conversion, the
aggregate number of shares of common stock issued would be
approximately 29 million. The notes could be convertible after
March 31, 2007, if the sale price condition described above is
met in any future fiscal quarter or if any of the other
conditions to conversion set forth in the indenture governing
the notes are met.
About Goodyear Tire
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service affirmed Goodyear
Tire & Rubber Company's Corporate Family Rating of B1. Ratings
on Goodyear's existing secured and unsecured obligations were
also affirmed as was the company's Speculative Grade Liquidity
rating of SGL-2. The outlook has reverted to stable from
negative.
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company and removed the ratings from Rating Watch
Negative. The ratings were placed on Rating Watch Negative on
Oct. 18, 2006, when the company announced a US$975 million draw
down of its bank revolver. Goodyear's debt and recovery ratings
are as follows:
-- Issuer Default Rating (IDR) 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';and
-- Senior unsecured debt 'CCC+/RR6'.
The TCR-AP also reported on Jan. 5, 2007, that Standard & Poor's
Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on
Oct. 16, 2006, as a result of the labor dispute at several of
the company's North American plants.
GOODYEAR TIRE: Fire Halts Operations at Distribution Center
-----------------------------------------------------------
A fire at Goodyear Tire & Rubber Co. has stopped operations at
its distribution center in Kingston, Jamaica, Radio Jamaica
reports.
Emeleo Ebanks, the public relations officer for the Fire
Brigade, told Jamaica Observer that the fire started shortly
after 8:00 p.m. on Jan. 11 at Goodyear Tire's distribution
center and Queen's Warehouse. It took 110 firefighters 10 hours
to subdue the blaze that gutted the distribution center and
destroyed a section of the adjoining Queen's Warehouse.
Radio Jamaica relates that investigators have not yet determined
the cause of the fire.
Cynthia Jonas, manager of Goodyear Tire's distribution center,
told The Observer that the losses resulting from the fire have
not been ascertained. She said that thousands of tires were
stored in the warehouse, in addition to tubes, forklifts,
palette riders, machines and computers.
The warehouse had about three months' supply of tires, The
Observer says, citing Bryan Young -- chairperson of Tire Sales,
the company that distributes the tires on behalf of Goodyear
Tire -- told the Observer.
"This will affect sales tremendously. This is the only Goodyear
warehouse in the island and we distribute island-wide," Ms.
Jonas commented to The Observer.
Limited operations at the distribution center will resume this
week, Radio Jamaica states.
Shipments will start arriving in the island shortly, Goodyear
Tire's General Manager Steven Miller told RJR News.
About Goodyear Tire
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service affirmed Goodyear
Tire & Rubber Company's Corporate Family Rating of B1. Ratings
on Goodyear's existing secured and unsecured obligations were
also affirmed as was the company's Speculative Grade Liquidity
rating of SGL-2. The outlook has reverted to stable from
negative.
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company and removed the ratings from Rating Watch
Negative. The ratings were placed on Rating Watch Negative on
Oct. 18, 2006, when the company announced a US$975 million draw
down of its bank revolver. Goodyear's debt and recovery ratings
are as follows:
-- Issuer Default Rating (IDR) 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';and
-- Senior unsecured debt 'CCC+/RR6'.
The TCR-AP also reported on Jan. 5, 2007, that Standard & Poor's
Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on
Oct. 16, 2006, as a result of the labor dispute at several of
the company's North American plants.
HILTON HOTELS: Declares US$0.04 Per Share Dividend
--------------------------------------------------
Hilton Hotels Corp. declared a dividend of US$0.04 per share,
payable in cash on March 16, 2007, to stockholders of record at
the close of business on March 2, 2007.
About Hilton Hotels
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.
Additionally, Moody's revised and held its probability-of
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior Notes
with an average
rate of 8.1%
due 2007 - 2031 Ba2 Ba2 LGD4 53%
Chilean inflation
indexed note
effective rate
7.65% due 2009 Ba2 Ba2 LGD4 53%
3.375%
Contingently
convertible
senior notes
due 2023 Ba2 Ba2 LGD4 53%
Minimum Leases
Commitments Ba2 Ba2 LGD4 53%
Term Loan A
at adjustable
rates due 2011 Ba2 Ba2 LGD4 53%
Term Loan B
at adjustable
rates due 2013 Ba2 Ba2 LGD4 53%
Revolving loans
at adjustable
rates, due 2011 Ba2 Ba2 LGD4 53%
Senior unsecured
debt shelf Ba2 Ba2 LGD4 53%
Subordinate debt
Shelf Ba3 B1 LGD6 97%
Preferred B1 B1 LGD6 97%
HUNTSMAN CORP: Completes Sale of HPL to SABIC Petrochemicals
------------------------------------------------------------
In a regulatory filing with the United States Securities and
Exchange Commission, Huntsman Corp. disclosed that Huntsman
Petrochemicals (UK) Holdings, as seller, and Huntsman
International LLC, as guarantor, completed a sale on Dec. 29,
2006, to SABIC (UK) Petrochemicals Holdings Limited, as
purchaser, and SABIC Europe B.V., as guarantor, of all the
outstanding equity interests of Huntsman Petrochemicals (UK)
Limited for an aggregate purchase price of $685 million in cash
plus the assumption by the purchaser of approximately $126
million in unfunded pension liabilities.
The final purchase price is subject to adjustments relating to
working capital, investment in Huntsman's LDPE plant currently
under construction in Wilton and unfunded pension liabilities.
Each of Huntsman Petrochemicals (UK) Limited, Huntsman
Petrochemicals (UK) Holdings and Huntsman International LLC is a
wholly-owned subsidiary of Huntsman Corporation. As a result of
this transaction, SABIC has acquired Huntsman's European base
chemicals and polymers business. The transaction did not
include Huntsman's Teesside-based Pigments division or the
Wilton-based aniline and nitrobenzene operations of its
Polyurethanes division.
About Huntsman
Huntsman Corporation -- http://www.huntsman.com/-- is a global
manufacturer of differentiated and commodity chemical products.
Huntsman's products are used in a wide range of applications,
including those in the adhesives, aerospace, automotive,
construction products, durable and non-durable consumer
products, electronics, medical, packaging, paints and coatings,
power generation, refining and synthetic fiber industries. The
company has operations in Indonesia, Italy and Guatemala.
The Troubled Company Reporter - Asia Pacific reported on Jan 23,
2007 that Standard & Poor's Ratings Services affirmed its 'BB-'
corporate credit rating and other ratings on Salt Lake City,
Utah-based chemicals producer Huntsman Corp. and its subsidiary
Huntsman International LLC.
Moody's Investors Service assigned a B3 rating to Huntsman
International LLC's, a wholly owned subsidiary of Huntsman
Corporation, proposed US$400 million senior subordinated notes.
Moody's also assigned Loss Given Default Assessment of LGD6 to
these notes in accordance with its Loss-Given-Default rating
methodology that was initially implemented at the end of
September 2006.
INDOSAT: To Open Tender To Build New Satellite
----------------------------------------------
PT Indosat Tbk is set to open a tender to build a new
telecommunications satellite, Antara News reports.
According to the report, Indosat Director Wityasmoro Sih
Handayanto said that nine companies from various countries have
indicated interest in building the Palapa D to replace Palapa
C2, which will end its service in 2011.
Mr. Handayanto said that the new satellite was to be launched in
2009 and would have a slot at an orbit of 113 degrees east
longitude, the report notes.
The report adds that the Indonesian Satellite Association said a
telecommunications satellite will cost around US$200 million.
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company is a provider of international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has affirmed the Ba1 local
currency corporate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat Finance
Company B.V. and Indosat International Finance Company B.V. The
bonds are irrevocably and unconditionally guaranteed by Indosat.
The outlooks for the ratings remain positive.
A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'. The outlook on the ratings is
stable.
METSO OYJ: Nomination Committee Proposes Seven Members to Board
---------------------------------------------------------------
The Nomination Committee established by Metso's Annual General
Meeting on April 4, 2006, proposes to the next Annual General
Meeting, which is planned to be held on April 3, 2007, that the
number of board members remains at seven.
The Nomination Committee proposes the re-election of these
current Board members:
-- Svante Adde,
-- Maija-Liisa Friman,
-- Christer Gardell,
-- Matti Kavetvuo,
-- Yrjo Neuvo and
-- Jaakko Rauramo.
Matti Kavetvuo is proposed to continue as Chairman of the Board
and Jaakko Rauramo as Vice Chairman. It is also proposed that
Eva Liljeblom, Professor at Swedish School of Economics and
Business Administration, Helsinki, Finland, be elected as a new
member of the Metso Board.
The new proposed Board member, Eva Liljeblom, Ph.D. (Econ.), is
the Professor in Finance and Head of the Department of Finance
and Statistics at Swedish School of Economics and Business
Administration, Helsinki, Finland. She holds currently Board
membership positions at Stockman PLC, a Finnish-based department
store and retailer, at Fennia Mutual Insurance Company, Finland,
at Municipality Finance PLC, Finland and is the Chairman of the
Investment Consultative Committee of the State Pension Fund,
Finland, the member of the Investment Strategy Council of the
Government Pension Fund - Global, Norway, and Official
Controller of the OMXH25 index (Indeksiasiamies) for the
Helsinki stock market.
The Nomination Committee proposes these annual fees to be paid:
* Chairman of the Board -- EUR80,000,
* Vice Chairman of the Board and Chairman of the Audit
Committee -- EUR50,000, and
* other Board members -- EUR40,000.
In addition, a fee of EUR500 per meeting is paid to all members
for the Board and Board committee meetings they attend.
Metso's Board of Directors will include these proposals into the
Annual General Meeting notice.
Personnel Participation
The Nomination Committee notes that a personnel representative
will participate as an external expert in the Metso Board
meetings also in the next Board term within the limitations
imposed by the Finnish law. The new Board will invite the
personnel representative as its external expert in April 2007.
The Nomination Committee
The members of the Nomination Committee were:
-- Markku Tapio (Chairman of the Nomination Committee),
Director General, State Shareholdings unit
(State of Finland);
-- Harri Sailas, CEO (Ilmarinen Mutual Pension Insurance
Company);
-- Mikko Koivusalo, Director, Investments (Varma Mutual
Pension Insurance Company) and
-- Henry Wiklund, Managing Director (Svenska
litteratursallskapet i Finland r.f.).
Matti Kavetvuo, Chairman of Metso's Board of Directors, served
as the committee's expert member.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
METSO OYJ: Acquires 100% of Japanese Metso-SHI Joint Venture
------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, has acquired all of Sumitomo
Heavy Industries' shares at Metso-SHI Co. Ltd. joint venture.
Previously Metso Paper possessed 50%, Metso Automation 15% and
SHI 35% of the joint venture, through which Metso Paper has
handled all its business, and Metso Automation its pulp and
paper industry related business in Japan. This arrangement
allows Metso Paper to organize their Japanese operations
flexibly now that the company has closed the acquisition of Aker
Kvaerner's Pulping and Power businesses.
The Japanese pulp and paper market, in which Metso has been
actively present in cooperation with SHI since 1976, is widely
considered as one of the world's most demanding. In 2005 the
country's paper and board production totaled around 31 million
tons, whereas pulp production reached 11 million tons.
The Metso-SHI joint venture employs a total of about 50 people,
located in Tokyo and Okayama.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
METSO OYJ: Paper Unit to Supply Large Papermaking Line to Japan
---------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, will supply a large
OptiConcept papermaking line to a Japanese paper mill. The name
of the customer is not disclosed. The new line will come on
stream during the 2nd quarter of 2008. The order, valued at
more than EUR100 million, has been recorded in the 4th quarter
2006 order intake. The line will produce more than 400,000 t/y
of woodfree-coated paper.
Metso's scope of supply contains stock preparation equipment; a
1,800 m/min, 10.7-m-wide OptiConcept paper machine, air systems,
auxiliary systems and automation systems.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
PERTAMINA: To Export Low-Sulfur Fuel Oil, Naphtha in February
-------------------------------------------------------------
According to notices sent to customers, PT Pertamina (Persero)
plans to export 1.85 million barrels of low-sulfur waxy residue,
a type of fuel oil known as LSWR, and 675,000 barrels of naphtha
in February, Bloomberg News reports.
The report notes that Pertamina's LSWR supplies that load from
the Sugai Pakning refinery in Indonesia's western Sumatra island
are called straight-run, a residue from the plant's crude
distillation unit, which can be refined into oil products such
as gasoline, kerosene and gas oil.
According to the report, the cargoes loading from Balipakpan
refinery in Kalimantan are so-called mixed-cracked LSWR,
typically burned by power plants.
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
TELKOM INDONESIA: Posts IDR10.5-Trillion Profit for 2006
--------------------------------------------------------
PT Telekomunikasi Indonesia Tbk recorded a profit of
IDR10.5 trillion in 2006, compared with the IDR7.99 trillion in
2005, Bloomberg News relates, citing Bisnis Indonesia.
According to the report, net income rose partly because the
rupiah strengthened against the U.S. dollar, which lowered the
cost of repaying overseas debt.
The report also notes that an early retirement program reduced
profit, which could have reached IDR12.5 trillion.
Telkom Indonesia's cellular phone unit generated half the
revenue of the company, Bloomberg says. The report adds that
another 31% in revenue came from Telkom's Internet and data
business.
Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com
-- provides local and long distance telephone service in
Indonesia. Known as Telkom, the company also offers fixed
wireless service, leased lines, and data transport through
affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service gave Telekomunikasi
Indonesia a Ba1 local currency corporate family rating.
Standard & Poor's Ratings Services gave the company foreign and
local currency corporate credit ratings of BB+.
Fitch Ratings has assigned Telkom Indonesia Long-term foreign
and local currency Issuer Default Ratings of 'BB-'.
* Fitch Revises Indonesia's Rating Outlook to Positive
------------------------------------------------------
Fitch Ratings revised the Outlook on the foreign and local
currency Issuer Default ratings of the Republic of Indonesia to
Positive from Stable, while affirming both ratings at 'BB'. At
the same time, the agency has also affirmed Indonesia's Short-
term IDR at 'B' and the Country Ceiling at 'BB'.
"The revision to the Outlook on Indonesia's sovereign ratings
reflects the authorities' commitment to maintaining economic
stability and fiscal discipline, as well as the government's
stronger top-down policy intent to implement a structural reform
agenda aimed at improving the investment climate," says Ai Ling
Ngiam, Director in Fitch's Sovereign Ratings team in Singapore.
The government's efforts to tackle key investor concerns on
corruption, bureaucratic and regulatory hindrances particularly
in the areas of taxation and customs may slowly be paying off.
A culture of fear of openly engaging in corruption has emerged
amid anti-corruption investigations leading to several high
profile prosecutions, asset recoveries and rising complaints via
the whistle-blower programme. Meanwhile the Government's
electronic open tender procurement system has improved
transparency. Indonesia has also improved its ranking in the
World Economic Forum's Global Competitiveness Index, moving up
to 50 in 2006 from 69 in 2005.
Public finances and improving surveillance of broader fiscal
risks are Indonesia's fundamental rating strengths. Fitch
forecasts the fiscal deficit will stay manageable at 1.1% of GDP
this year, while the government debt-to-GDP ratio should drop to
around 38% this year, levels last seen only in 1997 and better
than the 41% median for the 'BB' rating category. Nonetheless,
the debt-to-revenue ratio of 212% in 2006 is less favourable
than the 'BB' median of 162% and further tax efforts are needed
to increase revenue. Domestic debt re-profiling efforts have
successfully reduced the bunching risks of domestic debt
repayments in 2007-2009 by switching these bonds into long-dated
bonds maturing in 2010 and 2025.
On the external front, a strong build-up in the forex reserves
position thanks to commodity price increases, larger-than-
expected import compression by manufacturers and robust
portfolio inflows has provided a more comfortable cushion to
deal with systemic shocks. Indonesia's gross financing
requirement including short-term debt is expected to drop to
around 66% of official reserves, in line with the 'BB' median.
Nonetheless, Indonesia's external balance sheet risks remain, as
an up-tick in emerging market risk aversion could lead to a
disruptive outflow of portfolio equity or debt investment, while
a larger resident accumulation of private external assets may
also weigh on the balance of payments. Furthermore, on the
current account front, a higher consumer and manufacturers'
import bill attributable to the recovery in real GDP growth to
approximately 5.9% this year from 5.6% in 2006 pose dollar
demand pressures.
Trade facilitation through the creation of Special Economic
Zones, the push for an Economic Partnership Agreement with top
export destination Japan and the implementation of National
Single Window scheme for traders by 2008 is vital to raise
Indonesia's current external receipts. Indonesia's gross
external debt, external debt service and interest service ratios
are weak compared to 'BB' peer medians. Looking ahead, Fitch
says the resilience of the external position will require
accelerated efforts to build sustainable capital inflows in the
form of foreign direct investment, as a preferred alternative to
possibly volatile portfolio flows. Indonesia's export
competitiveness will also need to be addressed in the near term
with greater urgency to improve Indonesia's credit risk profile.
=========
J A P A N
=========
ASAHI MUTUAL: Fitch Upgrades IFS Rating to 'BB+'; Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded Asahi Mutual Life Insurance Company's
Insurer Financial Strength rating to 'BB+' from 'BB-'. The
rating Outlook is Stable.
The upgrade reflects the ongoing improvement in the company's
capital position. This has been driven by improvements in
profitability supported by successful implementation and
progress of aggressive business restructuring programmes. These
include a substantial reduction of operating costs, promotion of
a profit-oriented business model with more focus on higher-
profit medical and nursing care products, continued improvements
in the surrender and lapse ratio and policy persistency rate,
improvements in productivity of sales staff, and significant
reductions in capital losses from the investment portfolio and
risk exposure as a result of reduced holdings of domestic
equities.
The Stable Outlook reflects Fitch's anticipation that Asahi
Mutual Life will continue to show a gradual and constant
improvement in its capital position for FYE07 and onwards.
Fitch expects the company to continue to put importance on cost
savings and on improving its operating efficiency by further
promoting and developing its current restructuring programs,
especially in the areas of increasing annualized premium from
new policies for higher-profits medical and nursing care
products, improving policy persistency, and enhancing efficiency
and persistency of sales staff. In addition, Asahi Mutual Life
is also working on improving the quality of products and
services to policyholders.
In the first half of FYE07, Asahi Mutual Life achieved a further
reduction in the surrender & lapse value of insurance, an
improvement of policy persistency rate, an increase in
annualized premium from policies in force for medical and
nursing care products, and an improvement in the capital
position. However, profitability weakened due to decreases in
investment returns associated with the termination of investment
in some high yield non-Japanese yen denominated bonds. This was
in turn due to a decline in yields causing a slight increase in
the negative spread burden, despite the gradual reduction of
guaranteed rates.
Asahi Mutual Life's statutory solvency margin ratio improved to
694.6% at end-September 2006 from 670.2% at end-March 2006 and
570.3% at end-March 2005, due to a sharp increase in revaluation
gains on securities associated with the surge in the Japanese
stock market and the accumulation of reserves. However, Fitch
also notes that the capital position of the company is still
weak in absolute terms. In addition, the negative spread
burden, unrealized losses in the real estate portfolio and the
competitive operating environment impose strong pressures on its
profitability.
Fitch recognizes that Asahi Mutual Life still faces the
challenges of a relative weak capital position, the company's
exposure to investment performance and the negative spread
burden, though gradually decreasing, and will continue to
monitor improvements at Asahi Mutual Life.
About Asahi Mutual
Headquartered in Tokyo, Japan, Asahi Mutual Life Insurance
Company -- http://www.asahi-life.co.jp/-- is a Japanese life
insurance Company that focuses on individual life insurance.
The Group also sells non-insurance products provided by its
partners and provides investment trust products.
MITSUBISHI MOTORS: Discloses December Sales and Export Results
--------------------------------------------------------------
Mitsubishi Motors Corporation revealed global production, as
well as domestic sales and export results, both for December
2006 and calendar year 2006.
Total global production came in at 109,960 units, 97.0% of the
year ago period. Japanese production increased 17.7% year-on-
year to 71,898 units, making the third consecutive month of
year-on-year production volume increases.
Total vehicle sales in Japan reached 16,418 units, 15.7% decline
over the December 2005 total. Registered vehicle sales declined
to 4,794 units, or 58.0% of the year ago figure due to slower
sales of Outlander and the Colt series. Minicar sales continued
year-on-year growth however, increasing to 11,624 units, 103.6%
of the total for December 2005. Total sales for passenger cars
were 12,103 units, 85.7% of December 2005 level, and commercial
vehicle sales were 4,315 units, 19.6% less than the level for
the same period last year.
Overseas production for the month totaled 38,062 units, 72.9% of
the year ago period figure. European production slightly
increased to 4,886 units, or 107.4% of last year's total. North
American production came in at 6,506 units, a 23.9% increase
year-on-year. Asian production totaled 24,091 units, a 36.8%
decline from December 2005's levels representing continued
weakness in Asian markets such as Malaysia and Taiwan where
economic conditions are not favorable for the industry.
Total exports from Japan grew in December 2006, up 38.6% over
the pervious period to 38,606 units. Exports to Europe
increased to 14,651 units, 179.9% of the same period last year
due to strong sales of new Pajero and new Outlander models.
Exports to Asia also showed strong growth, up 76.9% year-on-year
due to the introduction of new Outlander into Chinese market and
steady sales of Lancer in Singapore. Exports to North America
came in at 3,653 units, 90.8% of the December 2005 total.
January to December 2006
In calendar year 2006, global production totaled 1,313,076
units, 96.4% of the levels seen in calendar year 2005. Japanese
production came to 758,478 units, 14.1% increase year-on-year
due to the sales launch of Outlander in overseas markets, strong
sales of Lancer in Russian market, and steady sales of "i"
minicar in Japanese market.
Japanese vehicle sales in calendar year 2006 reached 263,490
units, an increase of 7.9% over the year ago period. Registered
vehicle volume declined 5.0% year-on-year to 78,752 units while
minicar sales grew to 184,738 units, 14.5% higher than levels
seen last year. Passenger car volume increased to 190,074
units, 116.4% of the total for the same period last year, and
commercial vehicle volume declined to 73,416 units, down 9.2%
over the comparable period last year. Market share for the
period improved to 4.8%, an increase of 0.5 percentage points
from last year.
Overseas production in the period dropped to 554,598, or 79.5%
of the total for the pervious period. Production in Europe came
in at 82,544 units, an 18.4% increase over the year ago total
due to strong sales of the Colt CZC cabriolet model. Production
in North America increased 5.6% year-on-year to 92,689, however
Asian production declined to 339,685 units, a 31.2% decline from
the total for the comparable period due to weak economic
conditions in markets such as Indonesia, Malaysia and Taiwan.
Lastly, exports from Japan totaled 406,238 units, a 15.2%
increase over the total for calendar year 2005, marking the
fourth consecutive years of year-on-year gains since calendar
year 2002. Exports to Europe increased to 136,660 units, up
13.2% year-on-year due to introduction of new Pajero and
Outlander models, and continuous sales growth in Russia and
Ukraine. Exports to North America rose to 47,130 units, 109.7%
of the year ago total due to improving sales in the US, Canada
and Mexico. Finally exports to Asia totaled 31,512 units, 88.0%
of the previous period total.
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.
NOMURA HOLDINGS: Posts JPY143BB Net Income for 9-Month Period
-------------------------------------------------------------
Nomura Holdings, Inc., and its consolidated entities reported
net revenue of JPY779.8 billion for the nine months ended
Dec. 31, 2006, a decrease of 4.9% from the same period in 2005,
and non-interest expenses of JPY541.2 billion, an 8% year-on-
year increase. Income before income taxes decreased 28.9% to
JPY238.6 billion, while net income decreased 18.8% to
JPY142.7 billion. As a result, ROE for the nine-month period is
8.9%.
Nomura reported net revenue of JPY322.9 billion for the three
months ended Dec. 31, 2006, a 28.7% increase from the previous
quarter and a 10.2% decline compared to the prior-year third
quarter. Non-interest expenses increased 7.3% from the previous
quarter and increased 4.5% compared to the prior-year third
quarter to JPY190.8 billion. Income before income taxes of
JPY132.1 billion was up 80.8% from the previous quarter and down
29.4% compared to the third quarter last year, while net income
increased 81.7% from the previous quarter and decreased 25.7%
compared to the prior-year third quarter to JPY79.1 billion.
ROE for the quarter was 14.6%.
Net revenue of business segments for the nine months ended
Dec. 31, 2006, decreased 0.4% year-on-year to JPY774.2 billion.
Non-interest expenses increased 12.0% year-on-year to
JPY478.1 billion, and income before income taxes fell 15.6%
year-on-year to JPY296.0 billion.
Net revenue of business segments for the three months ended
Dec. 31, 2006, was JPY308.7 billion, a 20.7% increase from the
prior quarter and 20.1% decrease compared to the same period in
2005. Non-interest expenses increased 4.3% from the previous
quarter increased 6.6% compared to the prior-year third quarter
to JPY164.8 billion. Income before income taxes increased 47.3%
from the previous quarter and decreased 37.9% compared to the
prior-year third quarter to JPY143.9 billion.
Other income before income taxes for the nine months to Dec. 31,
2006, was JPY24.4 billion. Total income before income taxes for
all business segments decreased 15.6% from the prior year to
JPY296.0 billion.
Other income before income taxes for the third quarter ended
Dec. 31, 2006, was JPY43.1 billion. Total income before income
taxes for all business segments was JPY143.9 billion, up 47.3%
from the prior quarter and down 37.9% from the prior-year third
quarter.
Total assets as of December 31, 2006, were JPY36.9 trillion, an
increase of JPY1.9 trillion compared to March 31, 2006,
reflecting an increase in collateralized agreements, trading
assets and private equity investments. Total liabilities as of
Dec. 31, 2006, were JPY34.7 trillion, an increase of JPY1.8
trillion compared to March 31, 2006, due to an increase in
collateralized financing and long-term borrowings. Total
shareholders' equity at Dec. 31, 2006, was JPY2.2 trillion, an
increase pf JPY146.5 trillion compared to March 31, 2006, due to
an increase in retained earnings and cumulative translation
adjustments.
Nomura Holdings' financial results for the three-month and nine-
month periods ended Dec. 31, 2006, is available at the company's
Web site at:
http://www.nomuraholdings.com/investor/financial/data/2007_3q_usgaap.pdf
About Nomura Holdings
Nomura Holdings, Inc. -- http://www.nomura.com/-- is a
securities and investment banking firm in Japan and have
worldwide operations in more than 20 countries and regions
including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries. Nomura
operates in five business segments: Domestic Retail, which
includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading
and asset finance businesses in and outside Japan; Global
Investment Banking, which includes mergers and acquisitions
advisory and corporate financing businesses in and outside
Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which
includes development and management of investment trusts, and
investment advisory services.
On April 13, 2006, Fitch Ratings gave Nomura Holdings' a 'C'
individual rating.
SANYO ELECTRIC: To Recall 160,000 Washing Machines Over Defects
---------------------------------------------------------------
Sanyo Electric Co. said that it will recall some 160,000 washing
machines due to a defect suspected of causing fires, The Age
relates.
According to the report, the Japanese electric company indicated
that it would recall its AWD-A842 series of laundry machines
that were released in April 2002 and sold in Japan. This after
Sanyo Electric heard of four accidents in which fires broke out,
including one in which a person suffered injuries.
WebWire points out that Sanyo Electric had announced on Jan. 26,
2007, that it will intensify inspections and repairs for
affected washer/dryer units previously sold in the country.
Although the company has already taken actions to implement free
inspections and repairs for affected units announced from
September 2004, the company revealed further measures recently.
The affected units were sold within Japan only and overseas
units will not be affected, WebWire clarifies.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
operations in Brazil, Germany, India, Ireland, Spain, the United
States and the United Kingdom, among others.
Sanyo, according to press reports, has struggled after an
earthquake damaged a key chip-making plant in 2004. It has been
undergoing extensive restructuring, including job cuts and
alliances with companies to lower production costs.
The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that 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.
The TCR-AP also reported on Dec. 20, 2006, that Standard &
Poor's Ratings Services lowered to 'BB-' from 'BB'
its long-term corporate credit rating on Sanyo Electric.
At the same time, Standard & Poor's lowered to 'BB' from 'BB+'
its issue ratings on Sanyo Electric's senior unsecured debt.
The outlook on the long-term credit rating is negative. The
ratings were removed from CreditWatch, where they were placed on
Nov. 22, 2006.
SANYO ELECTRIC: Mitsubishi May Ask Sanyo to Pay for Lost Revenue
----------------------------------------------------------------
NTT DoCoMo Inc. resumed sales of mobile phones made by
Mitsubishi Electric Corp. that were suspended on Dec. 7, 2006,
due to faulty batteries, MarketWatch reports.
In a press release, NTT DoCoMo said that sales will resume since
a sufficient supply of replacement batteries were now available.
MarketWatch recounts that the sales of the handsets were halted
after some of the battery packs, which are made by a subsidiary
of Sanyo Electric Co., were found to overheat and crack during
recharging.
NTT DoCoMo, according to the report, has been replacing the
battery packs of the phones, and a company spokesman said that
of the 1.3 million units in use, about 880,000 had been replaced
as of Jan. 23.
MarketWatch explains that the suspension led to slower sales for
Mitsubishi Electric during the lucrative holiday shopping
season, typically a key time for mobile phone sales in Japan.
The company has said that it is considering asking Sanyo to pay
for lost revenue.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
operations in Brazil, Germany, India, Ireland, Spain, the United
States and the United Kingdom, among others.
Sanyo, according to press reports, has struggled after an
earthquake damaged a key chip-making plant in 2004. It has been
undergoing extensive restructuring, including job cuts and
alliances with companies to lower production costs.
The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that 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.
The TCR-AP also reported on Dec. 20, 2006, that Standard &
Poor's Ratings Services lowered to 'BB-' from 'BB'
its long-term corporate credit rating on Sanyo Electric.
At the same time, Standard & Poor's lowered to 'BB' from 'BB+'
its issue ratings on Sanyo Electric's senior unsecured debt.
The outlook on the long-term credit rating is negative. The
ratings were removed from CreditWatch, where they were placed on
Nov. 22, 2006.
=========
K O R E A
=========
ACTUANT CORP: Acquires Injectaseal Deutschland for US$13 Million
----------------------------------------------------------------
Actuant Corp. has purchased the outstanding stock of Injectaseal
Deutschland GmbH for approximately US$13 million in cash.
Funding for the transaction came from the company's revolving
credit facility.
Injectaseal will operate within Hydratight, which is included in
Actuant's Industrial Segment.
"Injectaseal is a logical extension of Hydratight's joint
integrity platform" Mark Goldstein, Executive Vice President of
Actuant, stated. "The addition of Injectaseal's leak management
and testing services will enable Hydratight to broaden its
product and service offering to existing customers worldwide.
Injectaseal also provides Hydratight with service personnel and
long standing relationships with utilities and companies in
Germany and The Netherlands that can benefit from Hydratight's
other joint integrity products and services."
Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial
company with operations in more than 30 countries, including
Australia, China, Hong Kong, India, Japan, Taiwan and South
Korea. The Actuant businesses are market leaders in highly
engineered position and motion control systems and branded
hydraulic and electrical tools and supplies. Since its
creation through a spin-off in 2000, Actuant has grown its sales
from US$482 million to over US$1 billion and its market
capitalization from US$113 million to over US$1.5 billion. The
company employs a workforce of approximately 6,000 worldwide.
Actuant Corporation trades on the NYSE under the symbol ATU.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 24, 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. manufacturing
sector, the rating agency affirmed its Ba2 Corporate Family
Rating for Actuant Corporation.
Additionally, Moody's held its Ba2 ratings on the company's
US$250 million Senior Unsecured Revolver Due 2009, and
US$250 million Senior Term Loan Due 2009. Moody's assigned
those debentures an LGD3 rating suggesting lenders will
experience a 43% loss in the event of a default.
Actuant Corp.'s 2% Convertible Senior Subordinated Debentures
due 2023 carry Standard & Poor's B+ rating.
DURA AUTOMOTIVE: Judge Carey Approves Deloitte as Tax Advisor
-------------------------------------------------------------
The Honorable Kevin J. Carey of the United States Bankruptcy
Court for the District of Delaware authorized Dura Automotive
Systems Inc. and its debtor-affiliates to employ Deloitte Tax
LLP as their tax service providers and tax consultants, nunc pro
tunc to Oct. 30, 2006.
Judge Carey clarifies that Deloitte Tax is an independent
contractor and is not considered an agent, partner or
representative of the Debtors.
Deloitte Tax will continue to provide the Debtors with the same
scope of tax consulting services as well as strategic
restructuring and bankruptcy tax advisory services that include:
(a) assistance with Federal Tax Effects of Bankruptcy Filing/
Tax Advisory Services related to debt discharge issues,
including:
-- computing the Debtors' tax basis to provide management
with information regarding income from the discharge
of indebtedness and the tax effect of post-bankruptcy
distributions to new equity holders;
-- advising the Debtors in evaluating and modeling
alternative tax methodologies to assist management in
understanding post-bankruptcy tax attributes;
-- advising the Debtors as to the proper tax treatment of
postpetition interest; and
-- advising the Debtors on the state tax aspects of the
post-bankruptcy environment with a focus on the
Debtors' efforts to optimize the post-bankruptcy tax
structure for tax purposes.
(b) general corporate tax advisory assistance, including:
-- tax return review and preparation;
-- Internal Revenue Service or state audit responses;
-- United States, state, and foreign income tax planning;
and
-- transfer pricing documentation and review.
The Debtors will pay Deloitte Tax according to its
professionals' customary hourly rates:
Partner US$595
Senior Manager US$485
Manager US$435
Senior Associate US$375
Deloitte Tax will also seek reimbursement for reasonable and
necessary expenses incurred in the Debtors' Chapter 11 cases.
The Debtors will indemnify Deloitte Tax for any claim arising
from Deloitte Tax's performance of the services. The firm will
not be entitled to indemnification, contribution or
reimbursement for services other than tax services. The Debtors
will have no obligation to indemnify any person, or provide
contribution to any person for any claim or expense that have
arisen from that person's gross negligence or willful
misconduct.
Scott J. Vickman, a member of the Deloitte Tax, assured the
Court that his firm does not hold any adverse interest to the
Debtors' estates, and is a disinterested person as the term is
defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia: China,
Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 6,
2006, that Fitch Ratings placed one tranche from one public
collateralized debt obligation and one tranche from private CDO
on Rating Watch Negative following Dura Automotive Corp.'s
filing for protection under Chapter 11.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
* * *
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'
special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors'
investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors. As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities. (Dura Automotive Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTOMOTIVE: Judge Carey Okays Deloitte & Touche as Auditor
---------------------------------------------------------------
The Honorable Kevin J. Carey of the United States Bankruptcy
Court for the District of Delaware authorized Dura Automotive
Systems Inc. and its debtor-affiliates employ Deloitte & Touche
LLP as independent auditors and accountants, nunc pro tunc to
Oct. 30, 2006.
Deloitte & Touche functioned as the Debtors' independent
auditors and accountants before their bankruptcy filing.
The firm has agreed to:
(a) audit the consolidated annual financial statements of the
Debtors and its subsidiaries for the fiscal years ended
December 31, 2006, and onwards;
(b) review the Debtors' interim financial information for
each quarter for the fiscal year ending December 31,
2006, and onwards;
(c) render other audit and accounting services, including
assistance in connection with reports requested by the
Court, United States Trustee or parties-in-interest;
accounting advisory services during the course of
reorganization; and other similar requested assistance at
an hourly rate basis; and
(d) provide additional audit services, should the assumptions
underlying the fixed fee estimate cost not materialize.
As of the Debtors' bankruptcy filing, Deloitte & Touche holds a
minimal retainer of approximately US$5,000, and provides
services upon a fixed fee between US$3,430,000 and US$3,800,000.
The additional services will be billed on an hourly rate basis:
Designation Hourly Rate
----------- ---------------
Partner, Principal, Director US$460 - US$650
Senior Manager US$390 - US$490
Manager US$320 - US$390
Senior Accountants US$200 - US$250
Staff Accountants US$135 - US$180
Paraprofessionals US$60
The firm disclosed that from time to time, certain Deloitte &
Touche Tohmatsu member firms will assist it in connection with
its ongoing audit services with approximately US$15,000 in
services that will be included in Deloitte & Touche's fee
applications.
The DTT Member Firms will be retained and paid by the applicable
non-filing Debtor affiliates.
Deloitte & Touche will be reimbursed for reasonable and
necessary expenses incurred in connection with the Debtors
Chapter 11 cases, including costs of transportation, lodging,
working meals, telephone, photocopy and messenger services.
The Debtors have also sought to retain Ernst & Young LLP as
their internal auditors and tax service providers. Deloitte &
Touche has advised the Debtors that it will make every effort to
avoid duplication of its work and that of Ernst & Young, and
Deloitte Tax.
Christopher A. Swanson, a partner of Deloitte & Touche,
disclosed certain relationships with parties in connection with
matters unrelated to the Debtors' Chapter 11 cases:
-- the firm provides services to certain of the Debtors'
largest unsecured creditors, including its lenders GE
Capital Corp., Goldman Sachs, and Barclays Bank or their
affiliates; and
-- certain financial institutions that are prepetition
lenders of the Debtors, including AXA, Harris Bank,
Comerica, JPMorgan Chase, Wachovia Bank, Citigroup, Bank
of America and affiliates of GE are lenders to the firm.
Mr. Swanson assured the Court that the firm will not serve those
entities in the Debtors' Chapter 11 cases. He attests that his
firm is a disinterested person, as the term is defined in
Section 101(14) of the Bankruptcy Code.
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia: China,
Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 6,
2006, that Fitch Ratings placed one tranche from one public
collateralized debt obligation and one tranche from private CDO
on Rating Watch Negative following Dura Automotive Corp.'s
filing for protection under Chapter 11.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
* * *
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'
special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors'
investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors. As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities. (Dura Automotive Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
KOREA EXCHANGE BANK: Ties Up with Japan's Resona Bank
-----------------------------------------------------
Korea Exchange Bank concluded a strategic business alliance on
Jan. 17 with Resona Bank of Japan, a company release states.
Under the business pact, KEB will offer a variety of financial
services, including deposit, exports and imports, foreign
exchange, payment guarantee and loans, to locally incorporated
Japanese firms in Korea that have trade relations with Resona
Bank.
KEB also plans to attract various Resona Bank businesses related
to Korea (exports & imports, foreign exchange, NDF won-dollar
transactions, etc.) through its branches in Tokyo and Osaka,
seriously expanding bilateral business.
According to the release, Resona Bank is affiliated with Resona
Group, reportedly the No. 4 financial group in Japan in terms of
assets and capital. Resona Bank is a community bank in Japan
with 8,162 employees and 336 manned branches. It targets mid-
size companies as its main customers.
Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank. KEB Futures -- http://www.kebf.com/english/-- is
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.
* * *
Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.
Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.
KOREA EXCHANGE BANK: Prosecutors Indict Lone Star's Korea Chief
---------------------------------------------------------------
South Korean prosecutors indicted on Jan. 26, 2007, Lone Star
Funds' head for Korea -- Paul Yoo -- over stock-manipulation and
tax evasion allegations, press reports say.
Mr. Yoo's indictment is part of the prosecutors' probe over the
sale of Korea Exchange Bank to the United States-based Lone
Star.
"This is the continuation of the investigation," The Wall Street
Journal quotes a spokesman at South Korea's Supreme Prosecutors
Office as saying. "The case will pass now to the court."
WSJ relates that Mr. Yoo is the third Lone Star officer to be
indicted over chargers relating the KEB-sale probe. The other
two are Ellis Short, Lone Star's vice chairman, and Michael
Thomson, its general counsel.
In 2003, Lone Star acquired a controlling stake in KEB. As
reported in the Troubled Company Reporter - Asia Pacific on
Dec. 8, 2006, the prosecutors declared the KEB sale to the
investment fund as illegal. The probe in the sale led them to
conclude that the deal was conducted "abnormally without
following regulations and due procedure, and the sale price did
not reach the adequate level."
According to WSJ, the recent indictment relates to the merger of
KEB's credit-card unit into the bank after Lone Star acquired
control.
Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank. KEB Futures -- http://www.kebf.com/english/-- is
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.
* * *
Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.
Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.
KOREA EXCHANGE: Purchases Export Credit of Samsung Electronics
--------------------------------------------------------------
Korea Exchange Bank dealt with a large-scale ruble currency
exchange business on Jan. 10 and was the first foreign exchange-
dealing business for the Russian currency since November last
year in Korea.
The ruble transaction was made as Samsung Electronics, which
exported SGH-E500 mobile phones to Russia, requested KEB to
purchase its export credit worth RUR620 million (US$23 million).
Before KEB launched the ruble currency business, a locally
incorporated firm of Samsung Electronics in Russia purchased the
U.S. dollar with rubles and settled the payment with its
headquarters in Seoul, having a burden on possible exchange
risk.
An official of Samsung Electronics explained, "With the KEB's
ruble currency-dealing business, Korea's locally incorporated
firms in Russia were able to get out of the exchange risk and
their headquarters in Korea could make integrated management of
exchange risk of locally incorporated firms."
Another KEB official said, "On the occasion of the large-scale
ruble currency transactions by Samsung Electronics, the trading
volume of the currency is expected to increase gradually and
give actual help to enterprises."
KEB specialized in foreign exchange plans to provide domestic
exporters and importers with a better environment free from
exchange risk and will expand such services to other currencies,
including the currency of South Africa, the rand.
For the first time in Korea, KEB has been engaging in the ruble
currency business to meet rising demands for rubles by domestic
companies and help them reduce exchange risk
Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank. KEB Futures -- http://www.kebf.com/english/-- is
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.
* * *
Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.
Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.
===============
M A L A Y S I A
===============
ANTAH HOLDINGS: Names MIMB Bank as New Rehab Scheme Adviser
-----------------------------------------------------------
Antah Holdings Bhd informed the Bursa Malaysia Securities Bhd on
the appointment of MIMB Investment Bank Bhd as its new
restructuring scheme adviser.
MIMB's appointment replaces ECM Libra Ave. as the company's
corporate adviser.
* * *
Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing. The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management
services, and investment holding.
The Group discontinued its beverage and security services
operations. The Group operates in Malaysia, Australia, United
Kingdom, and Singapore.
Antah's balance sheet as of Sept. 30, 2006, showed insolvency
with total assets at MYR691.364 million and total liabilities at
MYR1.059 billion. Shareholders' deficit amounted to
MYR369.42 million.
ANTAH HOLDINGS: Unit Sells Entire Equity in KVR to Amanahraya
-------------------------------------------------------------
Antah Holdings Services Sdn Bhd, a wholly owned subsidiary of
Antah Holdings Bhd, had entered into a Share Sale Agreement with
Amanahraya Development Sdn Bhd for the disposal of its entire
equity interest in Klang Valley Recreational Bhd, another wholly
owned unit of Antah, comprising 1,000,000 ordinary shares of
MYR1.00 each.
The sale share of MYR1.00 was arrived at a willing buyer-willing
seller agreement after taking into account the audited net loss
and capital deficiency of KVR amounting to MYR38,193,728 for the
financial year ended June 30, 2006, the company told the Bursa
Malaysia Securities Bhd.
Antah also clarified that the company and Amanahraya Development
will not assume any additional liabilities arising from the
proposed disposal.
Salient Terms of the SSA
The salient terms of the SSA are:
(a) The Purchaser will purchase the Sale Shares free from all
encumbrances and together with all rights, benefits and
advantages;
(b) The Consideration for the sale and purchase of the Sale
Shares will be Ringgit Malaysia One only and will be paid on
Completion;
(c) The Purchaser will redeem the Land from HSBC for the purpose
of releasing the Land from the Land Charges as full and
final settlement of total amount owing by Antah and Kaseh
thus releasing Antah and Kaseh from any further liability to
HSBC;
(d) AHS will procure Antah to write-off such loan granted and to
discharge the legal charges created by HSBC prior to
completion and will cause Antah to execute such documents
for the purpose of effecting the loan write-off and
discharge of charge;
(e) All relevant and necessary consents and approvals, if any,
being granted and not withdrawn or revoked by third parties
(including without limitation, government bodies, stock
exchange and other relevant authorities having jurisdiction
over the transactions contemplated under this Agreement);
(f) Where applicable, the approval of the board of directors and
shareholders of AHS and Antah for the sale of the Sale
Shares to the Purchaser under this Agreement and the
Transactions contemplated under this Agreement; and
(g) The SSA will be completed within three months upon the
signing of the SSA.
Basis for the Disposal
Antah and its wholly owned subsidiary, Kaseh Lebuhraya Sdn Bhd
was served with a Writ of Summons by HSBC for default in payment
in respect of overdraft facilities granted to Antah and Kaseh
amounting to MYR19,381,069.03 and MYR30,380,152.29 respectively.
HSBC had also served on KVR two Notices of Notice of Default
With Respect To A Charge, in respect of the Land and had further
filed Originating Summons No. MT3-24-1645-2006 in order to
obtain Order to sale the Land.
Pursuant to a foreclosure action initiated by HSBC and both
Antah and Kaseh's inability to settle the loans secured from
HSBC, Antah took measures to protect the company from future
liability to HSBC's legal action. Accordingly, the proposed KVR
Disposal was primarily to minimize Antah's exposure to the
foreclosure action initiated by HSBC.
As a reciprocating gesture to the Company's effort to amicably
resolve the foreclosure action on the Proposed KVR Disposal,
HSBC will grant a full release to Antah, Kaseh and KVR of all
their liabilities to HSBC.
* * *
Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia,
Antah Holdings Berhad -- http://www.antah.com.my/--
manufactures and trades pharmaceutical products and fluid
engineering and manufacturing. The Company's other activities
include retailing of houseware and kitchenware, property
development, insurance broking, provision of management
services, and investment holding.
The Group discontinued its beverage and security services
operations. The Group operates in Malaysia, Australia, United
Kingdom, and Singapore.
Antah's balance sheet as of Sept. 30, 2006, showed insolvency
with total assets at MYR691.364 million and total liabilities at
MYR1.059 billion. Shareholders' deficit amounted to
MYR369.42 million.
ARMSTRONG WORLD: Wants Intercompany Claims Okayed up to US$3Mil.
--------------------------------------------------------------
Armstrong World Industries Inc. asks the United States
Bankruptcy Court for the District of Delaware to allow the
intercompany claims asserted by Armstrong Holdings Inc. and
Armstrong Worldwide Inc. as prepetition unsecured claims in
Class 6 under its fourth amended plan of reorganization in an
aggregate amount of US$3,000,000, and to disallow the
Intercompany Claims in excess of US$3,000,000.
AHI was the parent holding company of AWI and owned all AWWD
stock, which in turn owned all of AWI's stock.
AHI became the parent company of AWI on May 1, 2000, following
AWI shareholders' approval of a plan of exchange under which
each share of AWI common stock was automatically exchanged for
one share of AHI common stock. Stock certificates that formerly
represented shares of AWI were automatically converted into
certificates representing the same number of shares of AHI. AHI
and AWWD did not have any significant assets or operations other
than their respective equity interests.
As of AWI's bankruptcy filing, and as a result of certain
prepetition relationships and transactions, AHI and AWWD each
filed a prepetition claim in a contingent and unliquidated
amount against AWI in its Chapter 11 case. AWWD held Claim No.
3059 and AHI held Claim No. 3060.
The Modified Plan eliminated the distribution of any
consideration to existing equity, thus, the Intercompany Claims
remain disputed and have not been resolved, Jason M. Madron,
Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, tells the Court.
To the extent the Intercompany Claims are allowed, they would be
treated as unsecured claims under Class 6 of the Modified Plan.
In light of the contingent and unliquidated nature of the
intercompany Claims, and to facilitate the calculation of the
pro rata share with respect to Class 6 of the Modified Plan,
AWI, AHI and AWWD entered into a stipulation and agreement with
respect to unliquidated claims of AHI and AWWD, dated Nov. 2,
2006, Mr. Madron informs the Court.
Pursuant to the Stipulation, the Intercompany Claims, "to the
extent Allowed, shall be prepetition Unsecured Claims in Class 6
under the [Modified] Plan and shall be capped in the aggregate
amount of US$30,000,000."
The Stipulation further provides that subject to the approval of
the Court, the parties agree the aggregate minimum amount of the
Intercompany Claims will be US$3,000,000.
* * *
Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world.
The company has Asia-Pacific locations in Australia, China, Hong
Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam. It also has locations in
Colombia, Costa Rica, Greece and Iceland, among others.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services assigned its 'BB' bank loan
rating to the proposed US$1.1 billion senior secured bank
facility of Armstrong World Industries Inc. (D/--/--), based on
preliminary terms and conditions.
As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on Oct. 2,
2006. The outlook is stable.
ARMSTRONG WORLD: Asks District Court if Sea-Pac Appeal is Proper
----------------------------------------------------------------
Armstrong World Industries Inc. asks the United States District
Court for the District of Delaware to determine whether the U.S.
Bankruptcy Court for the District of Delaware properly found
that Sea-Pac Sales Company failed to timely initiate arbitration
under the terms of the expired underlying agreements because it
did not do so within 70 days of the dispute arising.
AWI also asks the District Court to determine that based on the
facts presented to her, the Honorable Judith K. Fitzgerald of
the U.S. Bankruptcy Court for the District of Delaware correctly
concluded that the Bankruptcy Court, rather than a panel of
arbitrators, could determine that Sea-Pac failed to timely
initiate arbitration.
Jason M. Madron, Esq., at Richards, Layton & Finger P.A., in
Wilmington, Delaware, notes that in November 2004, Sea-Pac Sales
Company filed a proof of claim asserting breaches by Armstrong
World Industries, Inc., beginning in 2000 and 2002. Sea-Pac
notified AWI on numerous occasions of the alleged breaches, but
never requested mediation or arbitration until Sept. 15, 2006.
As reported in the Troubled Company Reporter on Jan. 10, 2007,
Sea-Pac took to the U.S. District Court for the District of
Delaware an appeal from the U.S. Bankruptcy Court for the
District of Delaware's order, for reasons stated on the record
at the Oct. 23, 2006 hearing, denying its request:
(i) to stay Armstrong World Industries, Inc.'s claims
objection proceeding pending mediation or arbitration in
accordance with provisions of certain agreements; and
(ii) for relief from automatic stay or, in the alternative,
from the discharge injunction under AWI's Plan of
Reorganization.
* * *
Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world.
The company has Asia-Pacific locations in Australia, China, Hong
Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam. It also has locations in
Colombia, Costa Rica, Greece and Iceland, among others.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services assigned its 'BB' bank loan
rating to the proposed US$1.1 billion senior secured bank
facility of Armstrong World Industries Inc. (D/--/--), based on
preliminary terms and conditions.
As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on Oct. 2,
2006. The outlook is stable.
COMSA FARMS: Receives MYR43.97 Mil. AmTrustee Demand for Payment
----------------------------------------------------------------
Comsa Farms Bhd received on Jan. 22, 2007, a demand for payment
of MYR43,970,602.84 outstanding sum, composed of principal
amount and accrued interest due on Jan. 31, from AmTrustee Bhd.
The debt is in respect of a MYR50 million Redeemable Unsecured
2000/2005 Bonds owed by the company.
Amount owing to Malaysian Assurance Alliance Berhad:
* Principal: MYR32,000,000.00
* Interest at 8% per annum from Nov. 5, 2005, to Feb. 28, 2006:
MYR813,589.04
* Interest at 8% per annum from March 1, 2006, to Aug. 31,
2006: MYR1,323,331.59
* Interest at 7.75% per annum from Sept. 1, 2006, until
Jan. 31, 2007: MYR1,039,561.64
* Total: MYR35,176,482.27
Amount owing to CIMB Investment Bank Berhad (formerly known as
Commerce International Merchant Bankers Berhad):
* Principal: MYR8,000,000
* Interest at 8% per annum from Nov. 5, 2005, until Feb. 28,
2006: MYR203,397.26
* Interest at 8% p.a. from March 1, 2006, until Aug. 31, 2006:
MYR330,832.90
* Interest at 7.75% per annum from Sept. 1, 2006, until
Jan. 31, 2007: MYR259,890.41
* Total: MYR8,794,120.57
The demand letter states that:
a. AmTrustee demands full payment of the Outstanding Sum within
14 days from the date of Notice; and
b. If Comsa fails to settle the Outstanding Sum within the time
stipulated, AmTrustee's has strict instructions to commerce
legal action against Comsa without further notice.
Meanwhile, Comsa Farms stated that they had been granted a
restraining and stay order for any legal actions for a period of
120 days effective from November 3, 2006, to March 2, 2007, by
the High Court of Malaya at Kuala Lumpur.
* * *
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, the
company registered US$63.60 million in total assets and a US$5-
million shareholders' equity deficit as of Nov. 2, 2006.
COMSA FARMS: Unit Receives Demand for Payment of EUR35,207
----------------------------------------------------------
Comsa Breeding Farms Sdn Bhd, a wholly owned subsidiary of Comsa
Farms Bhd, has been served with a statutory notice by BD
Dutchman International Gmbh asking for payment of goods sold and
delivered amounting to EUR35,207.99.
Comsa Breeding received the Notice on January 26, 2007.
Details of the notice, among others, states:
1. Comsa Breeding is indebted to BD Dutchman for a sum of
EUR35,207.99, comprising principal amount of EUR12,124.72 and
interest charges of EUR23,083.27, due on May 31, 2006.
2. Comsa Breeding is now required to pay BD Dutchman the debt
within three weeks after receiving the notice. If the
company fails to pay BD Dutchman within the stipulated time,
Comsa Breeding will be deemed in default and a wind-up
proceeding will be commenced against the company.
The company however clarifies that it had been granted a
restraining and stay order on any legal actions for a period of
120 days effective from Nov. 3, 2006, to March 2, 2007 by the
High Court of Malaya at Kuala Lumpur.
* * *
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, the
company registered US$63.60 million in total assets and a US$5-
million shareholders' equity deficit as of Nov. 2, 2006.
GREIF INC: S&P Rates Proposed US$300-Mil. Senior Notes at BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' ratings to
Greif Inc.'s proposed US$300 million senior unsecured notes due
2017.
The proceeds from the notes will be used to retire approximately
US$248 million in existing senior subordinated notes due 2012
and for general corporate purposes. The new senior notes issue
is contingent upon consummation of the tender offer for the
senior subordinated notes.
In addition, Standard & Poor's affirmed its 'BB+' corporate
credit rating on the Delaware, Ohio-based company.
The outlook is stable.
"The speculative-grade ratings on Greif reflect the company's
business profile, which Standard & Poor's considers to be weak.
This factor is mitigated to some extent by the company's
intermediate financial policies, satisfactory liquidity, and
fair credit protection measures. Although it has leading
positions in niche markets, the company competes in cyclical,
commodity-like sectors that experience intense pricing
pressures, and its business units have significant operating
leverage," said Standard & Poor's credit analyst Dan Picciotto.
* * *
Headquartered in Delaware, Ohio, Greif, Incorporated, --
http://www.greif.com- is engaged in industrial packaging
products and services. The company has operations in Australia,
Argentina, Brazil, Belgium, China, Malaysia, among others.
The Troubled Company Reporter - Asia Pacific reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed its Ba2 Corporate Family Rating for Greif,
Incorporated, as well as revised its rating on the company's
US$250 million 8.875% senior subordinate notes due 2012 to Ba3
from B1. Those debentures were assigned an LGD5 rating
suggesting lenders will experience an 82% loss in the event of
default.
GREIF INC: Moody's Rates US$300MM Senior Unsecured Notes at Ba2
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of Greif,
Inc., a leading global provider of industrial packaging products
and service, and assigned a first time rating to the company's
new senior unsecured notes.
The rating outlook is stable.
The rating on the new senior unsecured notes remains subject to
review of the final financing documentation.
Ratings upgraded:
-- Corporate Family Rating, to Ba1 from Ba2,
-- Probability-of-default rating, to Ba1 from Ba2,
Ratings assigned:
-- US$300 million senior unsecured notes due 2017 at Ba2,
LGD5, 75%.
In addition, the company speculative-grade liquidity rating of
SGL-1 has been affirmed.
The rating upgrade reflects the significant improvement in the
company's financial performance and credit profile. The ratings
also reflect the company's leading market position in global
industrial packaging, its geographic, customer and end market
diversity as well as the meaningful financial flexibility
provided by its holdings of a large amount of unencumbered
timber assets.
On the other hand, the ratings continue to be constrained by the
cyclicality in the company's industrial shipping container and
paper packaging businesses, declining demand for steel and fibre
drum products, its modest profit margins due to the mostly
commodity nature of its products, and considerable exposure to
volatile raw material prices.
The rating outlook is stable.
Factors that could favorably impact the ratings include:
1) sustained improvement in the credit profile, through
margin expansion and cash flow generation;
2) demonstrated commitment to maintaining Moody's adjusted
debt to EBITDA below 2.0x; and,
3) further successful reduction of costs through strategic
sourcing and operational excellence.
Factors that could negatively impact the ratings include
deteriorating revenues due to substitution or market share shift
away from the company, declining profit margins, or large debt-
financed acquisitions.
Moody's also affirmed Greif's speculative-grade liquidity rating
of SGL-1, which indicates very good liquidity and reflects
Moody's expectation that the company's operating cash flow,
together with its cash balance and availability under its
committed revolver and A/R securitization facility, should be
more than sufficient to cover its capital spending and other
operational needs over the next 12 months.
The Ba2 rating on the senior unsecured notes reflects an LGD5
loss given default assessment that reflects its contractual
subordination to all of Greif's senior secured creditors. The
notes will rank pari passu in right of payment to Greif's
existing and future senior debt and will be senior to all
existing and future senior subordinated debt.
The proceeds from the senior unsecured notes will be used to
fund the purchase of Greif's 8.875% senior subordinated notes
due 2012. Moody's will withdraw the ratings on the senior
subordinated notes upon the successful issuance of the senior
unsecured notes.
* * *
Headquartered in Delaware, Ohio, Greif, Incorporated, --
http://www.greif.com- is engaged in industrial packaging
products and services. The company has operations in Australia,
Argentina, Brazil, Belgium, China, Malaysia, among others.
The Troubled Company Reporter - Asia Pacific reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed its Ba2 Corporate Family Rating for Greif,
Incorporated, as well as revised its rating on the company's
US$250 million 8.875% senior subordinate notes due 2012 to Ba3
from B1. Those debentures were assigned an LGD5 rating
suggesting lenders will experience an 82% loss in the event of
default.
SHAW GROUP: Posts US$1.27 Bil. Revenue for Quarter Ended Nov. 30
----------------------------------------------------------------
The Shaw Group Inc. has filed its quarterly report on Form 10-Q
with the United States Securities & Exchange Commission for the
quarter ended Nov. 30, 2006. Consolidated financial results for
the three months ended Nov. 30, 2006 included charges totaling
US$49.3 million, US$35.3 million after tax, or US$0.44 per
diluted share, related to Shaw's 20% investment in Westinghouse.
The pre-tax charges related to Shaw's 20% investment in
Westinghouse include US$4.6 million of accrued interest on the
Yen-denominated bonds, US$30.6 million for non-cash foreign
currency translation losses on the Yen-denominated bonds,
US$1.6 million of amortization of the commercial relationship
agreement, US$5.8 million of amortization of Shaw's put option
to sell its ownership interest in Westinghouse to Toshiba, and a
US$6.7 million non-cash charge to mark-to-market the foreign
currency financial instrument embedded in the put option. Not
including the Westinghouse related charges, net income was
US$15.0 million, or US$0.19 per diluted share. For the three
months ended Nov. 30, 2005, Shaw reported net income of
US$32.7 million, or US$0.41 per diluted share. For the three
months ended Nov. 30, 2006, Shaw's consolidated results,
including the charges related to the investment in Westinghouse,
was a net loss of US$20.3 million, or US$0.26 per diluted share.
Revenues were a record US$1,273.9 million for the quarter ended
Nov. 30, 2006, compared with US$1,135.5 million in the prior
year period, which included approximately US$300 million of
revenue from hurricane response activities. Net cash provided
by operating activities for the first quarter of fiscal 2007 was
US$134.8 million compared with net cash used in operating
activities of US$112.3 million in the prior year period, an
improvement of over US$247 million. Shaw's backlog at Nov. 30,
2006, was a record US$9.5 billion, up from US$9.1 billion at
Aug. 31, 2006, excluding the recently announced China nuclear
projects.
* * *
Headquartered in Baton Rouge, LA, The Shaw Group Inc. --
http://www.shawgrp.com/-- is a global provider of services to
the environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution. In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Malaysia, Japan, Chile, China, the
United Kingdom and, Venezuela, among others.
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating and other ratings for The Shaw Group Inc. on
CreditWatch with negative implications.
SOLUTIA INC: Court Extends Plan-Filing Period Through April 16
--------------------------------------------------------------
Pursuant to an amended order, the Honorable Prudence Carter
Beatty of the United States Bankruptcy Court for the Southern
District of New York extended Solutia Inc. and its debtor-
affiliates' exclusive period to file a plan of reorganization
through and including Feb. 13, 2007, and their exclusive period
to solicit acceptances of the plan through and including
April 16, 2007.
The Debtors' exclusive period to file a plan expired on Jan. 15,
2007.
The extension order is without prejudice to:
(a) the Debtors moving for further extensions of
the Exclusive Periods pursuant to Section 1121(d)
of the Bankruptcy Code; and
(b) the rights of parties-in-interest to request that the
Exclusive Periods be shortened upon appropriate
notice and motion and the Debtors' and other
parties' rights to oppose the motion.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications. Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.
The Company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts. Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.
SOLUTIA INC: Completes Upsizing US$1.225 Billion DIP Financing
--------------------------------------------------------------
Solutia Inc. has completed the extension and upsizing of its
debtor-in-possession credit facility at a reduced interest rate.
Solutia's US$1.225 billion amended DIP credit facility matures
March 31, 2008. This represents a $400 million increase and a
one-year extension over Solutia's prior DIP financing.
The interest rate for the US$975 million term loan portion of
the DIP credit facility is LIBOR plus 300 basis points, a 50
basis point reduction from the rate on the previous US$650
million of term loans. The interest rate for the US$250 million
revolver portion of the DIP credit facility is unchanged from
the rate of LIBOR plus 225 basis points that applied to the
previous US$175 million revolver.
The increased availability under the DIP financing provides
Solutia with further liquidity for operations and the ability to
fund mandatory pension payments that come due in 2007. Up to
US$150 million of the increased availability will be used to
facilitate the purchase of Akzo Nobel's stake in its 50%/50%
rubber chemicals joint venture with Solutia, known as Flexsys.
The DIP credit facility can be repaid by Solutia at any time
without prepayment penalties. Citigroup acted as lead arranger
in the successful syndication of the financing.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications. Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.
The Company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts. Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.
SOLUTIA INC: Equity Committee Hires Experts for Pharmacia Case
--------------------------------------------------------------
In accordance with the United States Bankruptcy Court for the
Southern District of New York's order approving procedures for
the retention of experts entered on Dec. 15, 2005, the Official
Committee of Equity Security Holders of Solutia Inc. filed
separate notices of the retention of David O. Carpenter and
Walter P. Schuetze, as experts in the adversary proceeding
commenced by the Equity Committee against Monsanto Company and
Pharmacia Corporation.
Solutia Inc. and its debtor-affiliates have consented to the
retention of Messrs. Carpenter and Schuetze.
Mr. Carpenter is knowledgeable on the effects of PCBs on human
health and PCB regulation by federal and international agencies
before September 1997. He has been retained to provide analyses
and opinions regarding Pharmacia Corporation's, "Old Monsanto",
knowledge of the distribution of and health effects of PCBs at
the time of the spin-off of Solutia.
Mr. Carpenter's analysis will focus on, among other things, the
contrast between:
* the facts in Old Monsanto's possession at the time of the
spin related the human health effects of PCBs; and
* the characterization of the risks by Old Monsanto in its
spin related disclosure statements.
Mr. Carpenter will be paid US$400 per hour and reimbursed for
out-of- pocket expenses incurred in connection with his
services.
The Equity Committee also seeks the retention of Mr. Schuetze,
an expert on Federal Accounting Standards Board Statement No. 5.
He has been retained to provide analyses and opinions regarding
Old Monsanto's compliance with FAS 5 at the time of the spin-off
of Solutia from Old Monsanto based on statements contained in
various spin-related disclosure documents, including the
July 14, 1997 proxy statement seeking shareholder approval of
the spin.
The opinions will include Old Monsanto's spin-related compliance
with FAS 5 as to the Anniston PCB toxic tort litigation and the
disclosure and accrual of other legacy liabilities.
Mr. Schuetze's analysis will focus on, among other things, the
contrast between:
* the facts in Old Monsanto's possession at the time of the
spin related the economic risks that the legacy
liabilities posed to the economic viability of Solutia;
and
* the characterization of the economic risks by Old
Monsanto in its spin related disclosure statement.
Mr. Schuetze will receive US$1,000 per hour and will be
reimbursed for out-of-pocket expenses incurred in connection
with the services.
Reservation of Rights
Pharmacia Corporation and Monsanto Company reserve any and all
rights relating to the proposed witnesses, Messrs. Carpenter and
Schuetze, beyond the mere issue of retention, including the
right to object to the qualifications of each of the proposed
witnesses; to the subject matter of the testimony purported to
be given; to the admissibility of any testimony from the
witnesses; and to the fees and expenses for the proposed
witnesses under any standard.
About Solutia
Headquartered in St. Louis, Missouri, Solutia, Inc.
(OTCBB:SOLUQ) -- http://www.solutia.com/-- with its
subsidiaries, make and sell a variety of high-performance
chemical-based materials used in a broad range of consumer and
industrial applications. Solutia has operations in Malaysia,
China, Singapore, Belgium, and Colombia.
The Company filed for chapter 11 protection on Dec. 17, 2003
(Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for
protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts. Solutia is represented by
Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden,
Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin
Gump Strauss Hauer & Feld LLP represent the Official Committee
of Unsecured Creditors, and Derron S. Slonecker at Houlihan
Lokey Howard & Zukin Capital provides the Creditors' Committee
with financial advice.
=====================
N E W Z E A L A N D
=====================
AIR NEW ZEALAND: Finds Common Ground with EPMU on Jobs' Future
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 16, 2007, talks started between the Engineering, Printing
and Manufacturing Union and Air New Zealand over the future of
the airlines' passenger and ground-handling services and the
1,700 jobs involved.
According to EPMU, the talks represent the last opportunity to
stop the outsourcing of the services, the TCR-AP noted.
A follow-up report from The Press relates that the parties are
finding some common ground. Thus, they may strike a deal next
week over the future of the 1,700 jobs.
The jobs include those who load planes, staff desks and issue
tickets, stuff.co.nz says, noting that at Christchurch
International Airport, 450 staff are affected.
However, "there are still some big issues to get across," the
report cites EPMU secretary Andrew Little, as saying.
Talks are continuing. An agreement between the negotiating
parties will have to be voted on by staff, The Press notes.
The TCR-AP previously reported that Swissport International and
partner company Transfield Services New Zealand Ltd. agreed with
Air New Zealand to be the preferred bidders in the potential
outsourcing of Air New Zealand's ground handling operations at
Auckland, Wellington, and Christchurch airports.
The TCR-AP said Swissport International had put in a formal
offer to provide frontline services for NZ$20 million a year
less than current costs. Air New Zealand assumed that the
contractor could do the job NZ$20 million cheaper.
If the consortium gets the contract, ground services staff will
be made redundant and have to reapply for what is expected to be
fewer jobs with less pay, The Press says.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.
As reported in the Troubled Company Reporter - Asia Pacific on
September 2, 2005, Moody's Investors Service affirmed its Ba1
issuer rating on Air New Zealand Limited after the airline
announced its annual results for FY2005. Air NZ's rating
reflected its dominant position in the New Zealand domestic
market, with around 80% market share, and the profitability of
domestic operations following their restructuring to a low-cost
network model. Also supporting Air NZ's rating was its
solidliquidity position, with cash balances of NZ$1.071 billion
held as at June 30, 2005.
However, while Air NZ has a solid position in New Zealand and
other parts of the international network are performing well,
intense competition on trans-Tasman routes has resulted in it
being unprofitable for Air NZ. International competition also
limits Air NZ's ability to expand. Its management is also aware
of the airline's vulnerability to external shocks and the
actions of key competitors.
ARCHITECTUAL CONCEPTS: Creditors Must Prove Claims by Feb. 28
-------------------------------------------------------------
The creditors of Architectual Concepts Painter & Decorators Ltd
are required to prove their claims by Feb. 28, 2007.
Failure to prove claims by the due date will exclude a creditor
from sharing in any distribution the company will make.
The liquidator can be reached at:
Kevin J. Gilligan
PO Box 26022
Epsom, Auckland
New Zealand
Telephone:(09) 834 4486
Facsimile:(09) 834 4990
e-mail: kgill@ihug.co.nz
BUSINESS I.T.: Liquidation Hearing Slated for February 1
--------------------------------------------------------
On Nov. 6, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against Business I.T. Support Ltd before
the High Court of Auckland.
The petition will be heard on Feb. 1, 2007, at 10:45 a.m.
The CIR's solicitor can be reached at:
Justine Berryman
Technical and Legal Support Group
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue (PO Box 33150)
Takapuna, Auckland
New Zealand
Telephone:(09) 984 1538
Facsimile:(09) 984 3116
LIFESTYLE OREWA: Court Sets Liquidation Hearing on February 1
-------------------------------------------------------------
A liquidation petition filed against Lifestyle Orewa Ltd will be
heard before the High Court of Auckland on Feb. 1, 2007, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 6, 2006.
The CIR's solicitor can be reached at:
Justine Berryman
Technical and Legal Support Group
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue (PO Box 33150)
Takapuna, Auckland
New Zealand
Telephone:(09) 984 1538
Facsimile:(09) 984 3116
PHOENIX SECURITY: Faces Liquidation Proceedings
-----------------------------------------------
A petition to liquidate Phoenix Security Systems Ltd will be
heard before the High Court of Auckland on Feb. 8, 2007, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition with the
Court on Oct. 9, 2006.
The CIR's solicitor can be reached at:
Hi Chong (Sylvia) Ko
Technical and Legal Support Group
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue (PO Box 33150)
Takapuna, Auckland
New Zealand
Telephone:(09) 984 1294
Facsimile:(09) 984 3116
SURFACE DESIGN: Court Hears CIR's Liquidation Petition
------------------------------------------------------
The High Court of Palmerston North heard the liquidation
petition against Surface Design Ltd on Jan. 29, 2006.
The Commissioner of Inland Revenue filed the petition with the
Court on Nov. 3, 2006.
The CIR's solicitor can be reached at:
Philip Hugh Brian Latimer
Technical and Legal Support Group
Wellington Service Centre
1st Floor, New Zealand Post House
7-27 Waterloo Quay (PO Box 1462)
Wellington
New Zealand
Telephone:(04) 890 1028
Facsimile:(04) 890 0009
TOP CLASS: Creditors Must Prove Debts by February 28
----------------------------------------------------
On Jan. 5, 2007, Top Class Roofing Ltd passed a special
resolution to liquidate its business and appointed Kevin John
Gilligan as liquidator.
Accordingly, the company's creditors are required to prove their
debts by Feb. 28, 2007. Failure to prove debts will exclude a
creditor from sharing in any distribution the company will make.
The Liquidator can be reached at:
Kevin J. Gilligan
PO Box 26022
Epsom, Auckland
New Zealand
Telephone:(09) 834 4486
Facsimile:(09) 834 4990
e-mail: kgill@ihug.co.nz
TOURLINE LIMITED: Appoints Official Assignee as Liquidator
----------------------------------------------------------
The official assignee of Tourline Ltd was appointed as the
company's liquidator on Dec. 18, 2006.
As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Auckland heard a liquidation petition against the
company on Dec. 14, 2006, filed by Van Extras Ltd.
The Liquidator can be reached at:
Official Assignee
Insolvency and Trustee Service
Private Bag 4714, Christchurch
New Zealand
Telephone: 0508 467 658
Web site: http://www.insolvency.govt.nz
YMA INVESTMENTS: Shareholders Appoint R.L. Merlo as Liquidator
--------------------------------------------------------------
On Dec. 28, 2006, the shareholders of YMA Investments Ltd
appointed Robert Laurie Merlo as the company's liquidator.
Accordingly, creditors are required to prove their debts on
Jan. 31, 2007.
The Liquidator can be reached at:
Robert Laurie Merlo
Merlo Burgess & Co. Limited
PO Box 51486
Pakuranga, Auckland
New Zealand
Telephone:(09) 520 7101
Facsimile:(09) 529 1360
e-mail: merloburgess&co@xtra.co.nz
=====================
P H I L I P P I N E S
=====================
COVANTA HOLDING: Discloses Recapitalization Plan
------------------------------------------------
Covanta Holding Corp. intends to implement a comprehensive
recapitalization plan through a series of equity and debt
financings. The proposed plan includes these components:
-- refinancing of all credit facilities of Covanta's
principal subsidiary, Covanta Energy Corp., with new
Covanta Energy credit facilities comprised of a US$300
million revolving credit facility, a US$320 million funded
letter of credit facility, and US$680 million first lien
term loan facility;
-- an underwritten public offering of approximately US$125
million of Covanta's common stock;
-- an underwritten public offering of approximately US$325
million of Covanta's convertible debentures;
-- the repurchase of outstanding notes at Covanta Energy's
intermediate subsidiaries of approximately US$612 million
in principal amount.
The financings are expected to close in February 2007.
As part of the financings, Covanta also intends to use a portion
of the proceeds of its offerings and cash on hand to permit
certain intermediate subsidiaries to commence tender offers to
repurchase any and all outstanding notes previously issued by
those subsidiaries, consisting of outstanding 8.50% senior
secured notes due 2010 of MSW Energy Holdings LLC, outstanding
7.375% senior secured notes due 2010 of MSW Energy Holdings II
LLC, and outstanding 6.26% senior notes due 2015 of Covanta ARC
LLC.
The Company also updated its full year 2006 guidance and issued
full year 2007 guidance on Covanta Energy's adjusted EBITDA (as
calculated for financial covenant purposes under Covanta
Energy's credit agreements), Covanta Energy's free cash flow,
and Covanta's diluted earnings per share.
2006 Guidance
-- Confirming prior guidance for Covanta Energy Adjusted
EBITDA in the range of US$535 million to US$545 million;
-- Increasing prior guidance for Covanta Energy free cash
flow to a range of US$250 million to US$260 million, from
approximately US$235 million, primarily due to the impacts
of tax refunds and lower than expected tax payments, as
well as favorable changes in working capital; and
-- Confirming prior Covanta guidance for diluted earnings per
share of approximately US$0.75.
2007 Guidance
Assuming that
(i) the recapitalization plan as described above is fully
implemented as anticipated, without taking into account
the potential exercise of any over-allotment options that
may be available to underwriters in the public offerings
of common stock and convertible debentures, and
(ii) that the company has recorded an aggregate of
approximately US$680 million of indebtedness at Covanta
Energy under the new credit facilities, and subject to
the further assumptions set forth in Exhibit A hereto,
the company is projecting the following for the full 2007
calendar year:
-- Covanta Energy Adjusted EBITDA in the range of US$545
million to US$565 million;
-- Covanta Energy free cash flow in the range of US$290
million to US$320 million, which includes the impact
of US$39 million in interest expense savings
associated with the financings; and
-- Covanta diluted earnings per share in the range of
US$0.65 to US$0.75, which includes the impacts of
US$38 million in estimated expenses and US$39 million
in estimated interest expense savings associated with
the financings.
To the extent that any of its assumptions prove to be incorrect,
the company's actual results will differ, perhaps materially.
Headquartered in Fairfield, New Jersey, Covanta Energy Corp. --
http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad. Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.
* * *
As reported in the Troubled Company Reporter on Jan. 24 2007,
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating (reflecting 80% to 100% of recovery in a default
scenario) to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
US$320 million in funded LOCs, and US$300 million in revolving
credit facilities. The outlook remains stable.
Moody's Investors Service also assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures. The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp. Concurrently, the CFR has been
upgraded to Ba2 from Ba3.
COVANTA HOLDING: Commences Tender Offer on Various Senior Notes
---------------------------------------------------------------
Covanta Holding Corp. has commenced cash tender offers for:
(a) any and all of the outstanding 8-1/2% Senior Secured
Notes due 2010 issued by MSW Energy Holdings LLC and
its wholly owned subsidiary, MSW Energy Finance Co. Inc.;
(b) any and all of the outstanding 7-3/8% Senior Secured
Notes due 2010 issued by MSW Energy Holdings II LLC and
its wholly owned subsidiary, MSW Energy Finance Co. II,
Inc.; and
(c) any and all of the outstanding 6.26% Senior Notes due
2015 of Covanta ARC LLC.
The tender offers are being launched as part of Covanta's
recapitalization plan.
Under the terms of the MSW I Tender Offer, Covanta is offering
to purchase the outstanding MSW I Notes for a total
consideration, for each US$1,000 principal amount of MSW I Notes
validly tendered and accepted for payment, equal to the present
value on the date of purchase of all future payments on the MSW
I Notes to Sept. 1, 2007, based on the assumption that the MSW I
Notes will be redeemed in full at US$1,042.50 per US$1,000
principal amount on the MSW I Target Redemption Date and that
the yield to the MSW I Target Redemption
Date is equal to the sum of
(a) the bid-side yield on the 4% U.S. Treasury Note due
Aug. 31, 2007, plus
(b) 50 basis points (such price being rounded to the nearest
US$0.01 per US$1,000 principal amount of MSW I Notes),
minus accrued but unpaid interest to, but not including,
the date of purchase.
Under the terms of the MSW II Tender Offer, Covanta is offering
to purchase the outstanding MSW II Notes for a total
consideration, for each US$1,000 principal amount of MSW II
Notes validly tendered and accepted for payment, equal to the
present value on the date of purchase of all future payments on
the MSW II Notes to Sept. 1, 2007, based on the assumption that
the MSW II Notes will be redeemed in full at US$1,036.88 per
US$1,000 principal amount on the MSW II Target Redemption Date
and that the yield to the MSW II Target Redemption
Date is equal to the sum of
(a) the bid-side yield on the 4% U.S. Treasury Note due
Aug. 31, 2007, plus
(b) 50 basis points (such price being rounded to the nearest
US$0.01 per US$1,000 principal amount of MSW II Notes),
minus accrued but unpaid interest to, but not including,
the date of purchase.
Under the terms of the ARC Tender Offer, Covanta is offering to
purchase the outstanding ARC Notes for a total consideration,
for each US$1,000 original principal amount of ARC Notes validly
tendered and accepted for payment, equal to the present value of
all remaining interest and principal payments, discounted at a
yield equal to the sum of
(a) the bid-side yield on the 4-5/8% U.S. Treasury Note due
Dec. 31, 2011, plus
(b) 50 basis points (such price being rounded to the nearest
US$0.01 per US$1,000 original principal amount of the ARC
Notes), minus accrued but unpaid interest to, but not
including, the date of purchase.
In connection with each of the tender offers, Covanta is
soliciting the consents of the holders of each of the Notes to
certain proposed amendments to the indentures governing such
Notes. The primary purpose of the solicitations and the
proposed amendments is to eliminate from the indentures
substantially all of the restrictive covenants and certain
events of default provisions contained therein.
In connection with each of the tender offers, holders who
validly tender (and do not validly withdraw) their Notes prior
to 5:00 p.m., New York City time, on Feb. 5, 2007, will be
eligible to receive the total consideration. Holders who
validly tender their Notes after the Consent Payment Deadline
and prior to 5:00 p.m., New York City time, on Feb. 21, 2007,
will be eligible to receive the tender offer consideration,
which equals the total consideration minus the consent payment
of US$30.00 per US$1,000 principal amount of the MSW I and MSW
II Notes and US$30.00 per US$1,000 original principal amount of
the ARC Notes. The price determination date for each of the
tender offers will be at 2:00 p.m. on Feb. 5, 2007.
Subject to the terms and conditions of each of the tender
offers, Covanta will, at the time after the Expiration Date,
accept for purchase all the Notes validly tendered prior to the
Expiration Date. Covanta will pay the total consideration or the
tender offer consideration, as applicable, for the Notes
accepted for purchase at the Acceptance Time on such date
promptly following the Acceptance Time. Also, on the Payment
Date, Covanta will pay accrued and unpaid interest up to, but
not including, the Payment Date, on the Notes accepted for
purchase at the Acceptance Time.
The consummation of the tender offers is conditioned upon, among
other things,
(1) the receipt of proceeds sufficient to finance the tender
offers and related solicitations of consents from
Covanta's proposed new financings, consisting of
Offerings of common stock and convertible debentures and
new senior secured first lien credit facilities of
Covanta's wholly owned subsidiary, Covanta Energy Corp.,
which proceeds, together with cash on hand, are
sufficient to fund the tender offers, and
(2) for each Issuer, the consent of the holders of a majority
in aggregate principal amount of that Issuer's notes to
the proposed amendments to the applicable indentures
governing such notes.
The tender offers are also subject to customary closing
conditions. If any of the conditions are not satisfied, Covanta
is not obligated to accept for payment, purchase or pay for, or
may delay the acceptance for payment of, any tendered Notes, and
may terminate the tender offers. Full details of the terms and
conditions of the tender offers will be included in the Offer to
Purchase.
Holders who validly tender their notes and deliver consents may
revoke the consents and withdraw such notes at any time prior to
the Consent Payment Deadline, upon compliance with the
procedures in the Offer to Purchase. Notes tendered pursuant to
the tender offers and consents delivered pursuant to the
solicitations may not be validly withdrawn after the Consent
Payment Deadline, except upon limited circumstances as are set
in the Offer to Purchase.
Lehman Brothers Inc. is acting as exclusive dealer manager and
solicitation agent for each of the tender offers and related
solicitations of consents. The information agent and tender
agent for each of the tender offers is D.F. King & Co., Inc.
Questions regarding the tender offers and related solicitations
of consents may be directed to:
Lehman Brothers Inc.,
Tel: (800) 438-3242 (toll free)
(212) 528-7581 (call collect)
Requests for copies of the Offer to Purchase and related
documents may be directed to:
D.F. King & Co., Inc.
Tel: (800) 758-5378 (toll free)
(212) 269-5550 (banks and brokerage firms)
Detailed contact information for D.F. King & Co., Inc. is also
provided in the Offer to Purchase.
Headquartered in Fairfield, New Jersey, Covanta Energy Corp. --
http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad. Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.
* * *
As reported in the Troubled Company Reporter on Jan. 24 2007,
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating (reflecting 80% to 100% of recovery in a default
scenario) to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
US$320 million in funded LOCs, and US$300 million in revolving
credit facilities. The outlook remains stable.
Moody's Investors Service also assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures. The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp. Concurrently, the CFR has been
upgraded to Ba2 from Ba3.
LAND BANK: Pres. Arroyo Swears in G. Elepano as President & CEO
---------------------------------------------------------------
In a statement filed at its Web site, the Land Bank of the
Philippines discloses that President Gloria Macapagal-Arroyo
recently swore into office Gilda Elepano Pico as president and
chief executive officer of the bank.
Ms. Pico is the first woman-president and the first to have come
from the ranks in the bank's 43-year history. Starting her
career with the bank 25 years ago as assistant vice president,
Ms. Pico succeeds now Finance Secretary Gary B. Teves as the 8th
president of Land Bank.
About Land Bank
The Land Bank of the Philippines is a government financial
institution that strikes a balance in fulfilling its social
mandate of promoting countryside development while remaining
financially viable. This dual function makes Land Bank unique.
The profits derived from its commercial banking operations are
used to finance the bank's developmental programs and
initiatives.
From its initial role as the financing arm of the agrarian
reform, Land Bank has evolved into a full-service commercial
bank. Over the years, Land Bank continued to expand its loan
portfolio in favor of its priority sectors: the farmers and
fisherfolk, small and medium enterprises and microenterprises,
livelihood loans and agribusiness, agri-infrastructure and other
agri- and environment-related projects.
Land Bank ranks among the top five commercial banks in the
country in terms of deposits, assets, loans and capital.
* * *
On October 6, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings has assigned a Long-term foreign
currency and local currency Issuer Default rating of 'BB', and a
National Long-term rating of 'AA(phi)' to Land Bank of the
Philippines. The Outlook on the ratings is Stable. At the same
time, the agency also assigned an expected rating of 'BB-' to
LBP's planned subordinated debt issue of up to US$100 million to
US$150 million. Fitch also affirmed the bank's Individual and
Support ratings at 'D' and '3', respectively.
The TCR-AP also reported that on November 2, 2006, Moody's
Investors Service revised the outlook of the Land Bank of the
Philippines' foreign currency long-term deposit rating of B1 to
stable from negative. The outlook for Land Bank's foreign
currency Not-Prime short-term deposit rating and bank financial
strength rating of E+ remains stable.
MIRANT CORP: Sells 6 U.S. Gas Plants for US$1.4 Bil. to LS Power
----------------------------------------------------------------
Mirant Corporation entered into a definitive purchase and sale
agreement with LS Power Equity Partners, a member of the LS
Power Group, for the sale of six U.S. natural gas fired plants
for a purchase price of US$1.407 billion, which includes
estimated working capital. The net proceeds to Mirant from the
sale after extinguishing US$83 million of project-level debt are
expected to be US$1.324 billion.
The company does not expect to recognize any significant tax or
book gain on the transaction. The U.S. plants being sold are:
Zeeland (903 MW), West Georgia (613 MW), Shady Hills (469 MW),
Sugar Creek (561 MW), Bosque (546 MW) and Apex (527 MW),
constituting a total of 3,619 MW. The transaction is expected
to close by the second quarter of 2007 after the satisfaction of
certain customary conditions to closing.
"Although these plants do not fit within our business strategy,
they are excellent facilities," said Edward R. Muller, Chairman
and Chief Executive Officer of Mirant Corporation. "We wish LS
Power great success with them."
Mirant plans to continue returning cash to its shareholders upon
completion of its planned asset and business sales. The amount
of cash returned will be determined based on the outlook for the
continuing business:
(1) to preserve the credit profile of the continuing
business,
(2) to maintain adequate liquidity for expected cash
requirements including, among other things, capital
expenditures for the continuing business, and
(3) to retain sufficient working capital to manage
fluctuations in commodity prices.
Proceeds from the sales of the Zeeland and Bosque plants,
expected to be approximately US$500 million, will be reinvested
in Mirant North America, a subsidiary of Mirant Americas
Generation, and/or used to retire debt at Mirant North America.
Mirant Corporation was advised in the transaction by J. P.
Morgan Securities Inc., as financial advisor, and King &
Spalding, as legal counsel. LS Power Equity Partners was
advised by Barclays Capital, as financial advisor, and Latham &
Watkins, as legal counsel.
About LS Power Group
LS Power Group -- http://www.lspower.com/-- was founded in 1990
and is a fully integrated development, investment and asset
management group of companies focused on the power industry. LS
Power maintains offices in New York, New Jersey, Missouri,
California, Florida and Massachusetts.
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
MIRANT CORP: S&P Says Ratings Unaffected by Power Plant Sale
------------------------------------------------------------
Standard & Poor's Ratings Services said that merchant power
company Mirant Corp.'s announcement that it has reached an
agreement to sell six U.S.-based natural gas-fired power plants
to LS Power Equity Partners does not immediately affect the
issuer credit ratings on Mirant (B+/Watch Neg/--) and its U.S.
subsidiaries Mirant North America LLC, (B+/Watch Neg/--), and
Mirant Americas Generating LLC (B+/Watch Neg/--).
The U.S. plant sale is part of Mirant's program to sell U.S.,
Asian, and Caribbean assets and use most of the proceeds to buy
back stock. In December, Mirant announced an agreement to sell
its Philippine assets to a consortium for US$3.4 billion.
Standard & Poor's continues to monitor Mirant's asset sale
program and assess the company's capitalization plan after
completing the sales. Mirant's ability to maintain current
ratings will rely on the financial performance of its U.S.
merchant market operations under reasonable stress cases and
liquidity adequacy to support capital expenditures and trading
and marketing activities.
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
MIRANT CORP: Mirant Lovett Wants More Time to File Plan
-------------------------------------------------------
Mirant Lovett LLC asks the Hon. Barbara J. Houser of the United
States Bankruptcy Court for the Northern District of Texas to
further extend its exclusive periods to:
(i) adopt Mirant Corporation's Plan of Reorganization or to
file its own plan until May 16, 2007; and
(ii) solicit acceptances of its plan or plans until July 16,
2007.
According to Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in
Fort Worth, Texas, Mirant New York, Inc., Mirant NY-Gen, LLC,
Mirant Bowline, LLC, and Hudson Valley Gas Corporation
anticipate meeting the Feb. 15, 2007 Plan-filing Deadline.
Mirant Lovett, LLC, however, needs more time to file a plan, Mr.
Prostok tells the Court.
In July 1999, Mirant Lovett, LLC, purchased three power
productions units -- Unit 3, Unit 4, and Unit 5 -- from Orange
and Rockland Utilities, Inc.
In October 2006, the Bankruptcy Court entered an order
authorizing Mirant Lovett and Mirant New York, under certain
conditions, to discontinue operations at the Lovett Facility.
Subsequently, Mirant New York and Mirant Lovett entered into
discussions with the state of New York concerning, among other
things, Mirant Lovett's options by which to reduce the maximum
emissions of sulfur dioxide and nitrogen oxide to either:
(a) discontinue the operations of the Lovett Facility Unit 5
by April 30, 2007, and Lovett Unit 4 by April 30, 2008;
or
(b) invest in the technology required to reduce the
emissions so that the various units at the Lovett
Facility are in compliance with the 2003 Consent Decree
Mirant Lovett entered into with the New York Attorney
General's office and the New York State Department of
Environmental Conservation, resolving certain alleged
violations of the "new source view" provisions of the
Clean Air Act, and certain "repair or replacement"
actions taken by Orange and Rockland while it owned the
Lovett Facility.
The 2003 Consent Decree and the October 2006 Order provide
Mirant New York and Mirant Lovett with the flexibility to make
alternative decisions in connection with the contained operation
of Units 3, 4 and 5 at the Lovett Facility.
Currently, Mr. Prostok says, Mirant Lovett is continuing to
explore options that would allow Unit 5 to remain in operation
past April 30, 2007. Until the likelihood of continued
operation has been resolved, Mirant Lovett has difficulty
finalizing a plan of reorganization. Mirant Lovett does not
anticipate that the issue of continued operation of Unit 5 will
be resolved by Feb. 15, 2007 Plan-filing Deadline, Mr. Prostok
explains.
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
* Swiss Global Systems Integrator Offers Major Investment in RP
---------------------------------------------------------------
President Gloria Macapagal-Arroyo hauled in her first big
investment catch on the sidelines of the 37th World Economic
Forum in Davos, Switzerland, when a major global systems
integrator offered to invest in a secure and integrated
infrastructure authentication program in the Philippines that
will enhance government revenues under the build-operate-
transfer scheme.
Maurice Amon, co-executive chairman of the Swiss-based SICPA,
briefed the President on his company's overseas investment
program, saying the decision affirmed SICPA's confidence in the
Philippines.
Mr. Amon told the Chief Executive that his company's proposal
was in response to her call for greater public sector
participation in the country's Medium Term Public Investment
Program.
"By this proposal, we are affirming our confidence in the
Philippines as an investment site and as a partner in a major
cooperative undertaking," Mr. Amon told the President.
SICPA, which has an 80-year heritage of securing a majority of
the world's currencies, has the distinct advantage of being the
only company that can integrate secure track and trace solutions
to protect products and government revenues.
This proprietary technology has generated substantial additional
revenues in other countries that have adopted the program.
Given the enormity of the funding requirement of the Medium Term
Philippine Development Program, the President has called for
greater public sector participation in developing the country's
infrastructure and other development projects.
In welcoming the President's invitation, Mr. Amon said that
SICPA is offering the Philippines an integrated technology that
will allow the government to enforce its tax laws with greater
efficiency, security and consistency across domestically-
produced and imported products.
All set-up and implementation costs will be borne by SICPA under
a business model wherein the Swiss firm fully absorbs all
investments in the information technology and technical
infrastructure program in the Philippines.
* * *
On January 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
(BB+/Stable/B) proposed US$1.0 billion global bond issue
maturing in 2032.
On January 10, 2007, Fitch Ratings assigned a Long-term foreign
currency rating of 'BB' to the Republic of the Philippines'
(rated foreign currency Issuer Default 'BB') US$1 billion global
bond maturing in 2032 and priced to yield 6.55%.
On November 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.
The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.
=================
S I N G A P O R E
=================
CLASSIC INTERNATIONAL: Court Sets Wind-Up Hearing on Feb. 9
-----------------------------------------------------------
On Jan. 17, 2007, Daikin Airconditioning (Singapore) Pte Ltd
filed a petition to wind up the operations of Classic
International M & E Engineering Pte Ltd.
The High Court of Singapore will hear the wind-up petition on
Feb. 9, 2007, at 10:00 a.m.
Daikin Airconditioning's solicitors can be reached at:
Tan, Oei & Oei LLC
18 Cross Street #07-05
China Square Central
Singapore 048423
CYGRON PTE: Court to Hear Wind-Up Petition on Feb. 2
----------------------------------------------------
Mindmaker, Inc. filed a petition to wind up the operations of
Cygron Pte Ltd on Jan. 5, 2007.
The High Court of Singapore will convene a hearing to consider
the petition on Feb. 2, 2007, at 10:00 a.m.
Mindmaker's solicitor can be reached at:
Gateway Law Corporation
152 Beach Road
#37-06 Gateway East
Singapore 189721
DIGILAND INTERNATIONAL: P. Ngo Steps Aside; New Director Named
--------------------------------------------------------------
Digiland International Limited disclosed that Patrick Ngo Swee
Kiat has resigned from the company's board of directors.
Mr. Ngo has also ceased to act as the member of the company's
Audit, Nominating and Remuneration Committee.
On the other hand, Digiland names Dr. Robert Henry Keith Sloan
as the Independent Director and Chairman of the Nominating
Committee effective on Jan. 26, 2007.
For the past ten years, Dr. Sloan has worked as the Senior
Lecturer and then Associate Professor for teaching and
researching in Corporate Finance, International Finance,
Investment and Portfolio Management, Economics and Supply Chain
Manager at Southern Cross University in Lismore, Australia.
Moreover, Dr. Sloan has been the previous Head for the
Department of Accounting and Finance and School of Commerce and
Management.
Dr. Sloan is presently the director of Digiland Pty Ltd, a
wholly owned subsidiary of the company. He is also an
independent director of Advanced Integrated Manufacturing Corp,
Ltd, a company majority-owned by a major shareholder of
Digiland.
About Digiland
Digiland International Limited -- http://www.digiland.com.sg/--
is a major distributor of IT products and provider of IT
services in the Asia-Pacific. The Digiland International Group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited. It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific. The company has been
reporting a string of losses in the recent years due to the
negative impact of the highly cyclical nature of the computer
industry. Sales were adversely affected by the shortening
product cycles of IT products and downward pressure on selling
prices as newer and more technologically advanced products enter
mass production. Aside from recurring losses, the company's
subsidiaries have also been bombarded by wind-up petitions filed
by creditors.
The company has acquired losses for the past two years. For the
fiscal year ended June 2005, the Company's annual report showed
a US$18.7-million loss while fiscal year ended June 2004 showed
a US$44.7-million loss.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 13, 2006, the company registered US$31.32 million in total
assets and a US$11.94 million shareholders' equity deficit as of
October 12, 2006.
GUL TECHNOLOGIES: Six Shareholders Increase Stake in Company
------------------------------------------------------------
Gul Technologies Singapore Ltd discloses the increased stake of
six shareholders in the company.
Nuri Holdings (Singapore) Pte Ltd, a substantial shareholder of
the company, is presently holding 403,431,996 deemed shares with
43.330% issued share capital. Prior to the change, Nuri
Holdings held 281,431,996 deemed shares with 34.785% issued
share capital.
Another substantial shareholder, Michelle Liem Mei Fung is
currently holding 803,431,996 deemed shares with 86.292% issued
share capital. Before the change, Ms. Fung held 681,431,996
deemed shares with 84.225% issued share capital.
Tuan Sing Holdings Limited, also a substantial shareholder now
holds 403,431,996 deemed shares with 43.33% issued share
capital. Previously, Tuan Sing held 281,431,996 deemed shares
with 34.79% issued share capital.
TS Technologies Pte Ltd, another substantial shareholder, is
presently holding 403,431,996 direct shares with 43.33% issued
share capital. Before the change, TS Technologies held
281,431,996 direct shares with 34.79% issued share capital.
Tan Enk Ee, a director of the company, increased his stake to
803,431,996 deemed shares with 86.292% issued share capital.
Previously, Mr. Tan held 681,431,996 deemed shares with 84.225%
issued share capital.
Another director of the company, David Lee Kay Tuan, has
increased his stake in the company making it 803,431,996 deemed
shares with 86.292% issued share capital. Before the change,
Mr. Tuan held 681,431,996 deemed shares with 84.225% issued
share capital.
About Gul Technologies
Incorporated in Singapore, Gul Technologies Singapore Limited --
http://www.gultech.com/-- is a global supplier with sales and
representative offices in North America, Asia and Europe. Its
printed circuit boards are supplied to the Automotive industry
(electronic engine control, power control module, anti-lock
braking systems, speed controls, clusters, telematics etc),
Telecommunications industry (mobile phones, digital enhanced
cordless telephones, land mobile radios), Information Technology
industry (disk and tape drives for computers, network routers,
servers, firewalls, port adapters, voice over internet protocol,
wireless local area network), Healthcare industry (hearing aids,
infusion pumps, glucose monitoring devices), and other products
like instrumentation (programmable logic controllers, industrial
controllers, bar code readers), digital cameras and avionics.
The company manufactures its products in its production
facilities in China.
* * *
PricewaterhouseCoopers, the company's independent auditors,
raised a going concern issue in their report on the company's
financial statements for the year ended Dec. 31, 2005. PwC
cited these reasons:
* The group incurred a net loss of US$48.24 million for the
financial year ended Dec. 31, 2005, and a net loss of
US$21.75 million for the year 2004.
* As of Dec. 31, 2005, the group and the company are in a
net liabiltities position of US$27.74 million and US$30.31
million, respectively.
* The company has not complied with certain debt covenants
relating to bank borrowings amounting to US$19.82 million.
Such non-compliance has resulted in the related bank
borrowing becoming repayable on demand.
* Tuan Sing Holdings Ltd., the ultimate holding corporation,
has indicated its intention to provide continuing financial
support to enable the group and the company to meet their
obligations provided that the group remains a subsidiary.
However, on Sept. 7, 2005, the company entered into a
subscription agreement with Nuri Pacific Pte. Ltd which
would result in the cessation of Tuan Sing's position as
the ultimate holding corporation of the group.
As reported by the Troubled Company Reporter - Asia Pacific, the
company's balance sheet as of June 30, 2006, showed US$150.38
million in total assets and US$182.51 million in total
liabilities, resulting to a stockholders' deficit of US$32.13
million.
HAI CHEONG: Pays First & Final Dividend to Creditors
----------------------------------------------------
Hai Cheong Co Pte Ltd paid the first and final dividend to its
creditors on Jan. 19, 2007.
The company paid 51.84% to all the admitted claims.
The liquidator can be reached at:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
LEAR CORP: Posts US$4.3 Billion Fourth Quarter 2006 Net Sales
-------------------------------------------------------------
Lear Corp. reported net sales of US$4.3 billion for the fourth
quarter of 2006.
In last year's fourth quarter, Lear had a pretax loss of
US$635.9 million, including a loss of US$607.3 million related
to the divestiture of the Interior business, restructuring costs
of US$42.5 million and a loss on the extinguishment of debt of
US$48.5 million.
For the fourth quarter of 2005, Lear reported net sales of
US$4.4 billion and a pretax loss of US$346.1 million. Excluding
the loss on divestiture, restructuring costs and other special
items, Lear had pretax income of US$63.2 million in the fourth
quarter of 2006. This compares with pretax income before
special items of US$77.6 million in the same period a year
earlier.
The decline in net sales for the quarter reflects primarily
lower production in North America and the divestiture of Lear's
European Interior business. Operating results also declined,
reflecting the lower production, offset in part by the addition
of new business and cost improvements.
Lear reported a net loss of US$645.0 million, or US$8.90 per
share, including the loss on divestiture, restructuring costs
and other special items, for the fourth quarter of 2006. This
compares with a net loss of US$602.6 million, or US$8.97 per
share, including special items, for the fourth quarter of 2005.
Fourth-quarter free cash flow was US$254.4 million, compared
with US$46.0 million in the fourth quarter of 2005. The
improvement reflects primarily lower capital spending and the
timing of commercial recoveries. Net cash provided by operating
activities was US$179.2 million and US$332.0 million in the
fourth quarters of 2006 and 2005, respectively.
During the quarter, the Lear made important progress on
strategic priorities by reaching an agreement to transfer its
North American Interior business to the International Automotive
Components -- North America joint venture IAC North America in
return for a 25% equity stake. Lear also successfully completed
the offering of US$900 million in senior notes and the
subsequent tender offer for substantially all of its outstanding
2008 and 2009 senior notes. In addition, Lear maintained its
quality and customer service momentum and received several
awards of recognition, including Assembly Plant of the Year by
Assembly magazine for its Hyundai seating plant in Montgomery,
Alabama.
For the full-year 2006, Lear reported record net sales of
US$17.8 billion and a pretax loss of US$655.5 million, including
a loss of US$636.0 million related to the divestiture of the
Interior business, restructuring costs of US$99.7 million and a
fourth-quarter loss on the extinguishment of debt of US$48.5
million. For 2005, Lear reported net sales of US$17.1 billion
and a pretax loss of US$1,187.2 million. Excluding the loss on
divestiture, restructuring costs and other special items, Lear
had pretax income of US$114.7 million in 2006. This compares
with pretax income before special items of US$96.6 million in
2005.
Full-year net sales increased, reflecting primarily the addition
of new business, partially offset by lower production in North
America and unfavorable platform mix. Operating results
improved, reflecting the addition of new business and ongoing
cost and efficiency actions, largely offset by lower production
in North America and unfavorable platform mix.
"In a challenging environment last year, we improved our
financial results for the full year, improved our liquidity
position and took a number of important steps to reposition Lear
for future success. We refocused our strategy to manage our
business on a product-line basis. We increased our emphasis on
new technology and innovation with our Core Dimension(TM)
strategy. We also continued to make steady progress in
diversifying our sales on a customer, regional and vehicle
segment basis," said Lear chairperson and chief executive
officer Bob Rossiter.
Lear reported a net loss of US$707.5 million, or US$10.31 per
share, including the loss on divestiture, restructuring costs
and other special items, for the full-year 2006. This compares
with a net loss of US$1,381.5 million, or US$20.57 per share,
including special items, in 2005.
Free cash flow in 2006 was positive US$115.7 million. This
compares with negative free cash flow of US$418.7 million in
2005. The improvement reflects primarily the non-recurrence of
the one-time net negative impact of changes in customer payment
terms, lower capital spending and the timing of commercial
recoveries. Net cash provided by operating activities was
US$285.3 million and US$560.8 million in 2006 and 2005,
respectively.
Lear expects 2007 worldwide net sales of approximately US$15
billion, reflecting primarily the addition of new business
globally and the positive impact of foreign exchange, partially
offset by unfavorable platform mix.
Lear anticipates 2007 income before interest, other expense,
income taxes, restructuring costs and other special items (core
operating earnings) to be in the range of US$560 to US$600
million. The improvement in core operating earnings reflects
the addition of new business and cost improvements, offset in
part by unfavorable platform mix.
Restructuring costs in 2007 are estimated to be about US$100
million.
Interest expense is estimated to be in the range of US$215 to
US$225 million. Pretax income before restructuring costs and
other special items is estimated to be in the range of US$270 to
US$310 million. Tax expense is expected to be between US$100
and US$120 million, depending on the mix of earnings by country.
Capital spending in 2007 is estimated at approximately US$250
million.
Depreciation and amortization expense is estimated at about
US$310 million.
Free cash flow is expected to be positive at about US$225
million for the year.
Key assumptions underlying Lear's financial outlook include
expectations for industry vehicle production of approximately
15.3 million units in North America and 19.2 million units in
Europe. Lear continues to see production for the Big Three in
North America being down slightly. In addition, the company is
assuming an exchange rate of US$1.30/Euro.
About Lear Corporation
Headquartered in Southfield, Michigan , Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive interior
systems and components. Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.
Lear has operations in these Asian countries: Singapore, China,
India, Japan, the Philippines and Thailand.
* * *
Moody's Investors Service assigned a B3, LGD4, 61% rating to
Lear Corp.'s new offering of US$700 million of unsecured notes.
At the same time, Moody's affirmed Lear's Corporate Family
Rating of B2, Speculative Grade Liquidity rating of SGL-2 and
negative outlook. All other long-term ratings are unchanged.
Standard & Poor's Ratings Services also assigned its 'B-'
ratings to Lear Corp.'s US$300 million senior notes due 2013 and
its US$400 million senior notes due 2016. Lear's 'B+' corporate
credit and other ratings were affirmed. S&P said the outlook is
negative.
Standard & Poor's also affirmed the 'B+' rating on the US$1
billion first-lien term loan. Standard & Poor's corporate
credit rating on Lear Corp. is B+/Negative/B-2. The
speculative-grade rating reflects the company's depressed
operating performance caused by severe industry pressures.
Moreover, Moody's Investors Service has raised Lear
Corporation's rating outlook to stable from negative and
affirmed all the company's other ratings, as reported by the
TCR-AP on Dec. 7, 2006.
MIYAMA FOOD: To Distribute Dividend for Unsecured Creditors
--------------------------------------------------------
Miyama Food Pte Ltd will be distributing dividend for its
unsecured creditors.
Accordingly, creditors are asked to file their proofs of debt by
Feb. 14, 2007, to be included in the distribution.
The Troubled Company Reporter - Asia Pacific previously reported
that Teo Keng Thwan filed the wind-up petition against the
company on August 18, 2006.
The liquidator can be reached at:
Don M Ho, FCPA
c/o Don Ho & Associates
Certified Public Accountants
Corporate Advisory & Recoveries
Equity Plaza
20 Cecil Street #12-02 & 03
Singapore 049705
Telephone: 6532 0320 (8 lines)
Facsimile: 6532 0331
REFCO INC: Files December 2006 Monthly Operating Report
-------------------------------------------------------
Refco Inc. and its debtor-affiliates delivered to U.S.
Bankruptcy Court for the Southern District of New York a
statement of their cash receipts and disbursements for the
period from Dec. 1 to 31, 2006.
Peter F. James, controller of Refco, reports that the company
held a US$1,957,687,000 cash balance at the start of the
reporting period. Refco received US$520,999,000 and disbursed
US$1,809,093,000 in cash. Refco's ending cash balance totals
US$669,594,000.
As paying agent for certain non-debtors and Refco, LLC, the
Debtors disbursed approximately US$2,200,000.
Mr. James discloses that Refco paid US$504,000 in gross wages,
of which US$187,000 was paid on behalf of and reimbursed by the
Non-Debtors and Refco LLC. Refco also withheld US$154,000 in
employee payroll taxes, of which US$10,000 was remitted to a
third party vendor.
Mr. James states that Refco has received tax notices from the
IRS and other state taxing authorities in the aggregate amount
of US$137,000. The notices are currently under investigation by
RJM, LLC, Refco's duly appointed Chapter 11 Plan Administrator.
Refco paid US$40,327,000 for professional fees for December, and
US$145,338,000 since the Petition Date.
Mr. James says all insurance policies are fully paid for the
current period, including amounts owed for workers' compensation
and disability insurance.
Refco prepared its Monthly Report in lieu of comprehensive
financial statements.
A full-text copy of Refco's December 2006 Monthly Statement is
available at no charge at http://ResearchArchives.com/t/s?18fe
Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services
organization with operations in 14 countries and an extensive
global institutional and retail client base. Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore. In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products. Refco is one of the largest global
clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. (Refco Bankruptcy News, Issue No. 55; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
REFCO INC: Refco LLC Files Nov. 2006 Monthly Operating Report
-------------------------------------------------------------
Albert Togut, the Chapter 7 trustee appointed to oversee
the liquidation of Refco LLC's estate, filed with the U.S.
Bankruptcy Court for the Southern District of New York a
monthly statement of cash receipts and disbursements for the
period from Nov. 1 to 30, 2006.
The Chapter 7 Trustee reports that Refco LLC's beginning balance
as of October 1 totals US$616,608,000. The Debtor's beginning
purchase price account balance totals US$25,038,000, while its
beginning capital account "A" balance totals US$591,570,000.
The purchase price account includes activity related to Man
Financial, Inc. sale proceeds and related disbursements.
Capital account "A" includes activity related to collection of
excess capital.
Refco LLC received US$7,706,000 and disbursed US$3,864,000. The
Debtor held US$620,450,000 at the end of the period.
The Chapter 7 Trustee prepared the Monthly Statement in lieu of
comprehensive financial statements.
Headquartered in New York, New York, Refco Inc. --
http://www.refco.com/-- is a diversified financial services
organization with operations in 14 countries and an extensive
global institutional and retail client base. Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore. In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products. Refco is one of the largest global
clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. (Refco Bankruptcy News, Issue No. 55; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
SEAGATE TECHNOLOGY: Wants to Gain More Acquisitions
---------------------------------------------------
Seagate Technology wants to make acquisitions to better compete
with conglomerates, including Japan's Hitachi Ltd., Reuters
cites the company's Chief Executive Bill Watkins, as saying.
"If we want to compete against the big guys, we've got to have
scale" Reuters quotes Mr. Watkins.
Mr. Watkins, however, points it out to the news agency that the
company has to make the planned acquisitions "in a way that's
profitable."
The report did not disclose the company's potential acquisition
targets but said that Mr. Watkins is interested in software
companies that help consumers manage stored digital data such as
photos, videos and music.
About Seagate Technology
Headquartered in Scotts Valley, California, Seagate Technology,
-- http://www.seagate.com/-- designs, manufactures and markets
rigid disc drives (disc drives or hard drives), which are used
as the primary medium for storing electronic information in
systems ranging from desktop and notebook computers, and
consumer electronics devices to data centers delivering
information over corporate networks and the Internet. Seagate
Technology has R&D and product sites in: Silicon Valley,
California; Pittsburgh, Pennsylvania; Longmont, Colorado;
Bloomington and Shakopee, Minnesota; Springtown, Northern
Ireland; and Singapore. Manufacturing and customer service
sites are located in: California, Colorado, Minnesota, Oklahoma,
Northern Ireland, China, Malaysia, Thailand and Singapore.
* * *
Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate. This concludes the review initiated
by Moody's on Dec. 21, 2005. The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. The
ratings outlook is stable.
Moody's confirmed these ratings:
-- Corporate Family Rating: Ba1; and
-- SGL Rating of 1.
Moody's upgraded these ratings:
Seagate Technology HDD Holdings:
-- US$400 million senior notes 8%, due 2009: to Ba1
===============
T H A I L A N D
===============
BLOCKBUSTER INC: Declares US$18.75 Per Share Cash Dividend
----------------------------------------------------------
Blockbuster Inc.'s board of directors has declared a quarterly
cash dividend of US$18.75 per share on its shares of 7-1/2%
Series A Cumulative Convertible Perpetual Preferred Stock, in
accordance with the terms of the Series A Preferred Stock.
The dividend will be payable on Feb. 15, 2007, to the holders of
record of the Series A Preferred Stock at the close of business
on Feb. 1, 2007.
Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia. The company also operates
in Taiwan, Thailand, and New Zealand.
The Troubled Company Reporter - Asia Pacific reported on Dec.
21, 2006, that Standard & Poor's Ratings Services revised its
outlook on video rental retailer Blockbuster Inc. to stable from
negative. The ratings on the Dallas-based company, including
the 'B-' corporate credit rating, were affirmed.
In November 2006, Fitch Ratings has affirmed Blockbuster Inc.'s
Issuer default rating at 'CCC'; Senior secured credit facility
rating at 'CCC/RR4'; and Senior subordinated notes rating at
'CC/RR6'.
The Troubled Company Reporter - Asia Pacific reported on Oct.
12, 2006, that Moody's Investors Service confirmed its B3
Corporate Family Rating for Blockbuster Inc.
DAIMLERCHRYSLER: Might Delay Releasing 2006 Financial Statements
----------------------------------------------------------------
DaimlerChrysler AG's fourth quarter and full year 2006 financial
statements may not be released as planned on Feb. 14, and the
company's April 4 annual general assembly may be postponed, a
company spokeswoman told the Frankfurter Allgemeine
Sonntagszeitung.
She confirmed that the delay is caused by the refusal of the
company's works council to approve overtime work for accountants
to complete the annual report on time, reports said.
The prohibition to work extra hours by the council is in protest
against management plans to cut 6,000 administrative jobs.
The company plans to move some administrative work to Prague
where labor costs are lower than in Germany.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.
DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.
* BOND PRICING: For the Week 15 January to 19 January 2006
----------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA & NEW ZEALAND
-----------------------
Ainsworth Game 8.000% 12/31/09 AUD 0.87
Alinta Networks 5.750% 09/22/10 AUD 6.81
APN News & Media Ltd 7.250% 10/31/08 AUD 5.90
A&R Whitcoulls Group 9.500% 12/15/10 NZD 9.50
Arrow Energy NL 10.000% 03/31/08 AUD 1.19
Babcock & Brown Pty Ltd 8.500% 12/31/49 NZD 7.90
Becton Property Group 9.500% 06/30/10 AUD 0.74
Capital Properties NZ Ltd 8.500% 04/15/07 NZD 8.55
Capital Properties NZ Ltd 8.500% 04/15/09 NZD 8.00
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 8.00
Cardno Limited 9.000% 06/30/08 AUD 5.50
CBH Resources 9.500% 12/16/09 AUD 0.50
Chrome Corporation Ltd 10.000% 02/28/08 AUD 0.02
Clean Seas Tuna Ltd 9.000% 09/30/08 AUD 1.04
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.57
Evans & Tate Ltd 8.250% 10/29/07 AUD 0.41
Fletcher Building Ltd 8.600% 03/15/08 NZD 8.00
Fletcher Building Ltd 7.800% 03/15/09 NZD 8.20
Fletcher Building Ltd 8.850% 03/15/10 NZD 7.70
Fletcher Building Ltd 7.550% 03/15/11 NZD 7.90
Futuris Corporation Ltd 7.000% 12/31/07 AUD 2.45
Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 8.00
Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 10.05
Hutchison Telecoms Australia 5.500% 07/12/07 AUD 0.50
IMF Australia Ltd 11.500% 06/30/10 AUD 0.80
Infrastructure & Utilities
NZ Ltd 8.500% 09/15/13 NZD 8.65
Infratil Ltd 8.500% 11/15/15 NZD 8.18
Kagara Zinc Ltd 9.750% 05/06/07 AUD 6.65
Kiwi Income Properties Ltd 8.000% 06/30/10 NZD 1.21
Minerals Corporation Ltd 10.500% 09/30/07 AUD 0.87
Nuplex Industries Ltd 9.300% 09/15/07 NZD 9.00
Pacific Print Group Ltd 10.250% 10/15/09 NZD 10.65
Primelife Corporation 10.000% 01/31/08 AUD 1.03
Salomon SB Australia 4.250% 02/01/09 USD 7.61
Silver Chef Ltd 10.000% 08/31/08 AUD 1.04
Software of Excellence 7.000% 08/09/07 NZD 1.80
Speirs Group Ltd. 10.000% 06/30/49 NZD 70.00
Structural Systems 11.000% 06/30/07 AUD 1.10
TrustPower Ltd 8.300% 09/15/07 NZD 8.50
TrustPower Ltd 8.300% 12/15/08 NZD 8.05
TrustPower Ltd 8.500% 09/15/12 NZD 8.20
TrustPower Ltd 8.500% 03/15/14 NZD 8.10
KOREA
-----
Korea Development Bank 7.350% 10/27/21 KRW 48.92
Korea Development Bank 7.450% 10/31/21 KRW 48.89
Korea Development Bank 7.400% 11/02/21 KRW 48.88
Korea Development Bank 7.310% 11/08/21 KRW 48.84
Korea Development Bank 8.450% 12/15/26 KRW 70.04
MALAYSIA
--------
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.81
AHB Holdings Bhd 5.500% 03/06/07 MYR 0.18
Asian Pac Bhd 4.000% 12/21/07 MYR 0.20
Berjaya Land Bhd 5.000% 12/30/09 MYR 0.78
Bumiputra-Commerce 2.500% 07/17/08 MYR 1.30
Camerlin Group Bhd 5.500% 07/15/07 MYR 2.20
Crescendo Corporation Bhd 3.000% 08/25/07 MYR 0.90
Denko Industrial Corp. Bhd 5.000% 03/15/07 MYR 0.80
Eastern & Oriental Hotel 8.000% 07/25/11 MYR 1.76
Eden Enterprises (M) Bhd 2.500% 12/02/07 MYR 0.69
EG Industries Bhd 5.000% 06/16/10 MYR 0.64
Equine Capital Bhd 3.000% 08/26/08 MYR 0.37
Greatpac Holdings Bhd 2.000% 12/11/08 MYR 0.36
Gula Perak Bhd 6.000% 04/23/08 MYR 0.44
Hong Leong Industries Bhd 4.000% 06/28/07 MYR 0.90
Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.62
I-Berhad 5.000% 04/30/07 MYR 0.55
Insas Bhd 8.000% 04/19/09 MYR 0.56
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.32
Kosmo Technology Industrial 2.000% 06/23/08 MYR 0.61
Kretam Holdings Bhd 1.000% 08/10/10 MYR 0.62
Kumpulan Jetson 5.000% 11/27/12 MYR 0.54
LBS Bina Group Bhd 4.000% 12/31/07 MYR 0.50
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.52
LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.52
Media Prima Bhd 2.000% 07/18/08 MYR 1.62
Mithril Bhd 8.000% 04/05/09 MYR 0.41
Mithril Bhd 3.000% 04/05/12 MYR 0.63
Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.51
Pelikan Int'l Corp Bhd 3.000% 04/08/10 MYR 2.00
Pelikan Int'l Corp Bhd 3.000% 04/08/10 MYR 1.52
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.13
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.89
Ramunia Holdings 1.000% 12/20/07 MYR 0.86
Rashid Hussain Bhd 3.000% 12/23/12 MYR 1.38
Rashid Hussain Bhd 0.500% 12/24/12 MYR 1.52
Rhythm Consolidated Bhd 5.000% 12/17/08 MYR 0.42
Senai-Desaru Exp. 3.500% 12/09/19 MYR 74.33
Senai-Desaru Exp. 3.500% 06/09/20 MYR 73.34
Senai-Desaru Exp. 3.500% 12/09/20 MYR 71.99
Senai-Desaru Exp. 3.500% 06/09/21 MYR 71.01
Senai-Desaru Exp. 3.500% 12/09/21 MYR 70.05
Senai-Desaru Exp. 3.500% 12/09/22 MYR 68.53
Senai-Desaru Exp. 3.500% 06/09/23 MYR 67.60
Senai-Desaru Exp. 3.500% 12/08/23 MYR 66.69
Senai-Desaru Exp. 3.500% 06/07/24 MYR 65.79
Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.30
Southern Steel 5.500% 07/31/08 MYR 1.50
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.29
Tradewinds Corp. 2.000% 02/08/12 MYR 0.70
Tradewinds Plantations Bhd 3.000% 02/28/16 MYR 1.00
WCT Land Bhd 3.000% 08/02/09 MYR 1.24
Wah Seong Corp 3.000% 05/21/12 MYR 4.02
YTL Cement Bhd 4.000% 11/10/15 MYR 1.55
SINGAPORE
---------
Sengkang Mall 8.000% 11/20/12 SGD 1.10
*********
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. Andrei Sanchez, 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 2007. 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 US$625 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 US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***