/raid1/www/Hosts/bankrupt/TCRAP_Public/070221.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
Wednesday, February 21, 2007, Vol. 10, No. 37
Headlines
A U S T R A L I A
ADVANCED MARKETING: Wants PGW Employee Retention Prog. Approved
ADVANCED MARKETING: NBN Files Bid to Buy PGW Distribution Rights
ADVANCED MARKETING: Court Augments Prepetition Shipping Duty Cap
AVIS BUDGET: S&P Places Corporate Credit Rating at BB+
AVIS BUDGET: Agrees to Secure Unit's US$1 Billion Senior Notes
B.T.N. GROUP: Final Meeting Slated for March 7
CLASSIC FRAMELESS: Liquidator to Present Wind-Up Report
DIVONI PTY: Members and Creditors to Receive Wind-Up Report
ELITE COMMUNICATIONS: Final Meeting Slated for March 23
EVANS & TATE: Offers Counter-Proposal to Yarraman Winery
GOLDSPEAR FITNESS: Members and Creditors to Meet on March 20
HASBRO INC: Earns US$230.1 Million in Year Ended Dec. 31, 2006
HLP FINANCIAL: Court Orders Wind Up of 13 Investment Schemes
JAMES HARDIE: Three Directors Resign from Board
MULTIPLE SCLEROSIS: Undergoes Liquidation Proceedings
NICK23Q PTY: Members' and Creditors' Meeting Set for March 9
NOMURA DARLING: Members Resolve to Close Business
QUEANBEYAN COMMUNITY: Members and Creditors to Meet on March 21
ST ANNES: Members Opt to Shut Down Firm
UKRAINIAN CULTURAL: Members' Final Meeting Set for March 21
C H I N A & H O N G K O N G
BANK OF COMMUNICATIONS: Unveils 3-Year Plan to Tap VIP Customers
BESTAR INTERNATIONAL: Members' Final Meeting Set for March 26
FIRSTWORLD GARMENTS: Members to Hear Liquidator's Report
GLORY ELECTRICAL: Creditors' Meeting Slated for March 19
IAC BANK: Inks Long Term Strategic Support with China Aluminum
JADE REGAL: Final Meeting Slated for March 19
KENNEX ELECTRONICS: Members and Creditors to Meet on March 27
KINNON INTERNATIONAL: Liquidator to Present Wind-Up Accounts
MICHELE WATCH: Members to Hold Final Meeting on March 23
SHIMAO PROPERTY: Acquires Land Property for CNY1.2B in Han Park
SKY SUCCEED: Final Meetings Scheduled for March 19
WORLD EYES: Members to Meet on March 23
YIP FAT: Appoints Yam Ming Fai as Liquidator
YONG CHANG: Creditors Must Prove Debts by March 28
* Chinese Firms Rely More on Equity Funding, Xinhua Finance Says
I N D I A
GENERAL MOTORS: Collaborates With Colorado State on E85 Ethanol
KARNATAKA BANK: Net Profit Up 30% in Quarter Ended Dec. 31, 2006
KARNATAKA BANK: Eyes INR25,000-Cr. Business Turnover in FY 2007
KOTAK MAHINDRA: Allots 52,712 Shares Under Equity Options Plan
LLOYDS FINANCE: Posts INR4.57 Mil. Net Loss in December '06 Qtr.
ORIENTAL BANK OF COMMERCE: Board Okays 20% Interim Dividend
RYERSON INC: S&P Cuts Corporate Credit Rating to B+ from BB-
RYERSON INC: Posts US$4.4-Mil. Net Loss in 4th Quarter of 2006
I N D O N E S I A
ALCATEL-LUCENT: Inks Network Upgrade Deal with OJSC VimpelCom
ALCATEL-LUCENT: To Deploy Metro Ethernet Solution in Poland
ALCATEL-LUCENT: Completes Trial of Advanced WiMAX Tech in India
BANK DANAMON: Pefindo Assigns "idAA-" Ratings
BANK INDONESIA: May Use Overnight Lending Rate as Benchmark
CA INC: Appoints Bilar Mann to Lead Business Unit
MARSH & MCLENNAN: Reports 4th Quarter and Year-end 2006 Results
PERTAMINA: Reconsiders Plans to Build Refineries as Costs Surge
TELKOM INDONESIA: Targets 2 Million Subscribers by 2010
J A P A N
ALL NIPPON AIRWAYS: To Reduce Fuel Hedging Levels By 20%
AMERICAN SEAFOODS: Soliciting Consents for 11-1/2% Senior Notes
JAPAN AIRLINES: Keeping Matsumoto-Nagano-Sapporo Route on Demand
MACDERMID INC: Moody's Junks Rating on US$215 Mil. Senior Notes
NORTHWEST AIRLINES: S&P Says Disclosure Won't Affect Ratings
SADIA SA: Moody's Affirms Ba2 Currency Corporate Family Rating
XM SATELLITE: Inks US$13-Bil. Merger Pact With SIRIUS Satellite
XM SATELLITE: SIRIUS Canada Comments on Parent & XM's Merger
* Bankruptcy Cases in January Rise 4%; Debt Up To JPY573.63 Bil.
K O R E A
ARAMARK CORP: Earns US$87.7 Mln. in Fiscal Quarter Ended Dec. 31
ARAMARK CORP: Completes Merger with Private Investment Group
DURA AUTOMOTIVE: Panel Wants Bennett as Special Canadian Counsel
DURA AUTOMOTIVE: Wants to Complete Key Management Incentive Plan
HYNIX SEMICONDUCTOR: Shareholders to Interview CEO Candidates
HYNIX SEMICONDUCTOR: Toshiba Wants Investigation of Memory Chips
NOVELIS INC: Hindalco Deal Prompts Moody's Ratings Review
NOVELIS: Hindalco Purchase Prompts S&P to Put Ratings on Watch
NOVELIS INC: Hindalco Industries Acquires Firm for US$6 Billion
THERMA-WAVE: Posts US$2.3 Mln Net Loss in Quarter Ended Dec. 31
* SK's National Debt May Surpass GDP by 2050, KPIF Forecasts
M A L A Y S I A
DATUK KERAMAT: Delays Filing of 2006 Third Quarter Results
FA PENINSULAR: Bursa to Suspend Trading of Securities on Feb. 27
JOHAN CERAMICS: Bursa Defers Trading Suspension to February 27
LITYAN HOLDINGS: Balance Sheet Upside Down by MYR82M in Dec. '06
MBF CORP: Clarifies Report on Insurance Unit Acquisition
MYCOM BERHAD: Posts MYR10.43-Mil. Net Loss in Dec. '06 Quarter
OLYMPIA INDUSTRIES: Incurs MYR39.57-Million Net Loss in 2Q 2007
PANGLOBAL BERHAD: Parties End Share Disposal Negotiations
N E W Z E A L A N D
AIR NEW ZEALAND: Finalizes Order of 4 Boeing 787 for US$700 Mln.
BLOMFIELD CABINET: Court to Hear Liquidation Petition
C.D.M. CONSULTANT: Court to Hear CIR's Liquidation Petition
CORPORATE HOST: Creditors' Proofs of Claim Due on May 9
DIAMONDS CONSTRUCTIONS: Appoints Joint Liquidators
E.MAC ENTERPRISES: Court Releases Wind-Up Order
ITALIAN GROCER: Mountfort to Act as Liquidator
KITCHEN WORLD: Creditors Must Prove Debts by March 12
MONA VALE: Court Issues Liquidation Order
ONIX MOTORS: Liquidation Hearing Slated for February 22
REMA LTD: Court Sets Liquidation Hearing on March 15
SPORTFISHERS LTD: Faces Liquidation Proceedings
WAITOA SECURITY: Court Hears Liquidation Petition
P H I L I P P I N E S
ALLIED BANK: To Raise Tier II Capital for Basle II Requirements
MARIWASA MANUFACTURING: Mulls Issuance of Convertible Debentures
METRO PACIFIC: Delisted From PSE Listing Effective Feb. 16
PHIL. LONG DISTANCE: First Pacific to Increase Stake by 6.4%
PHIL. LONG DISTANCE: Capital Research & Mgmt. Buys 16% Stake
PHIL. LONG DISTANCE: Unit Enters Debt Market with PHP5BB Notes
S I N G A P O R E
CHEMTURA CORP: Board Declares 5 Cents Per Common Share Dividend
GATE PACIFIC: Enters Wind-Up Proceedings
ISOFT GROUP: Australia's IBA Health Sets Up All-Share Bid
LOGITEM SINGAPORE: Creditors Must Prove Debts by March 16
READER'S DIGEST: Doctor Acquisition Plans to Offer US$750 Notes
READER'S DIGEST: Moody's Cuts Corp. Family Rating to B2 from Ba1
READER'S DIGEST: Posts US$62 MM Net Income in 2nd Qtr. FY 2007
SEA CONTAINERS: Committee Taps Kroll as Financial Advisor
SEA CONTAINERS: Services Panel Selects Willkie Farr as Counsel
THAI SANG: Creditors Must Prove Debts by March 2
T H A I L A N D
TMB BANK: To Raise Capital Adequacy Ratio To At Least 12%
* Upcoming Meetings, Conferences and Seminars
- - - - - - - -
=================
A U S T R A L I A
=================
ADVANCED MARKETING: Wants PGW Employee Retention Prog. Approved
---------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
previously asked the United States Bankruptcy Court for the
District of Delaware for authority to sell Publishers Group West
Inc.'s rights under its distribution agreements with various
publishers to Perseus Books LLC, and Client Distribution
Services Inc.
The Debtors now ask the Court for authority to implement a PGW
Employee Retention Program, which provides bonuses to certain
PGW key employees in providing transition services in connection
with the aforementioned Perseus transaction -- the PGW
Transition Services Bonus Plan.
To preserve the Debtors' ability to effect the Perseus
transaction, including the provision of the transition services,
PGW must retain key employees in numerous departments, including
sales and merchandise, logistics and accounting, Mark D.
Collins, Esq., at Richards, Layton & Finger, PA, at Wilmington,
Delaware, relates.
According to Mr. Collins, the Debtors have determined that the
total anticipated cost of the PGW Employee Retention Program is
US$750,850. The PGW Employee Retention Program applies to
approximately 117 employees, but none of the PGW Key Employees
are officers of the Debtors.
Pursuant to the PGW Transition Services Bonus Plan, the PGW Key
Employees are eligible to receive bonuses in the range of US$303
to US$45,900, based on:
(1) a consideration of their compensation in effect upon
their approval for participation in the PGW Transition
Services Bonus Plan;
(2) employment position classification; and
(3) continued employment with PGW on July 31, 2007.
The total cost of the bonuses payable to PGW Key Employees under
the PGW Employee Retention Program will be paid by Perseus, Mr.
Collins notes. Hence, the direct cost to the PGW estate that
would otherwise be incurred to retain its key employees to
maintain operations pending a going concern sale will be paid by
the buyer of PGW's assets. Mr. Collins adds that the
implementation of the PGW Key Employee Retention Program is
contingent on the Court's approval of the Perseus transaction.
Mr. Collins asserts that the Debtors considered a number of
factors in designing the PGW Employee Retention Program in
conjunction with Perseus, including industry standards, PGW's
historic practices, and the nature of its business. The
potential costs associated with the loss of employees would be
far in excess of the cost of the PGW Employee Retention Program.
The successful consummation of the Perseus transaction, in turn,
relies on retaining employees with the knowledge and skill of
PGW's business to perform the transition services, Mr. Collins
asserts. PGW's employees, and in particular the PGW Key
Employees, are critical to performing the transition services.
"The loss of key employees would lead to further work force
attrition as employee morale would deteriorate with the
departures and concomitant increased work demands on remaining
employees," Mr. Collins says.
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). Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors. 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 will expire on Apr. 28, 2007.
ADVANCED MARKETING: NBN Files Bid to Buy PGW Distribution Rights
----------------------------------------------------------------
National Book Network Inc. made a competing and superior bid to
purchase Publishers Group West Inc.'s rights under its
distribution agreements with various publishers, Rich Publishing
LLC disclosed in its objection to the proposed sale to Perseus
Books LLC, and Client Distribution Services Inc.
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Advanced Marketing Services Inc. and its debtor-affiliates asked
the United States Bankruptcy Court for the District of Delaware
for authority to sell Publishers Group West's rights under its
distribution agreements with various publishers to Perseus Books
and Client Distribution Services Inc.
The Court set a hearing yesterday, Feb. 12, 2007, to consider
the Debtors' request to sell PGW's rights under its distribution
agreements with various publishers to Perseus Books and CDS.
NBN's Offer
NBN offered to pay 85 cents on the dollar for the claims of all
PGW publishers, Rich Publishing said.
The NBN offer was announced, in part, by Richard Freese,
president of PGW, who observed that all PGW publishers remain
"free to enter into an offer with NBN," according to Rich
Publishing.
NBN is a sales, marketing, and distribution company servicing
North American and overseas publishers of commercial fiction and
nonfiction books and audio titles. Founded in 1986, NBN is a
subsidiary of The Rowman & Littlefield Publishing Group, Inc.,
one of North America's largest academic publishers. NBN is
headquartered in Lanham, Maryland.
Parties Object to Sale
Seven parties filed objections to the proposed sale of PGW's
rights under its distribution agreements to Perseus Books and
CDS:
(1) Wells Fargo
Wells Fargo Foothill, Inc., contends that the proposed buyer
protections are inappropriate under the circumstances since the
proposed sale results in no cash or other monetary compensation
to the Debtors or the estate. The break-up fee will come out
from the Debtors' pocket.
Wells Fargo further notes that (i) Perseus' administrative claim
must be junior to Wells Fargo's administrative claim since Wells
Fargo was granted a superpriority administrative claim enjoying
priority over all other unsecured obligations, and (ii)
procedures to protect PGW's accounts receivable must be
established.
(2) Carus
Carus Publishing Group wants the order authorizing the sale to
reflect that PGW is authorized to assume its distribution
agreements with those publishers that have entered into
publisher agreements with Perseus and other successful bidder,
which assumption will occur prior to their assignment. Carus
further asks the Court to hold that no payments made prepetition
to consenting publishers pursuant to assumed agreements can be
recovered under Section 547 of the Bankruptcy Code or otherwise
by PGW.
(3) Creditors Committee
The Official Committee of Unsecured Creditors argues that the
Debtors' request fails to allow adequate time for the
postpetition solicitation of other purchasers and for
competitive bidding.
Although productive negotiations are ongoing among the
purchasers, the Debtors, and the Committee regarding the terms
of the Transaction Documents, the Committee informs the Court
that:
* it objects to the requirement that Advanced Marketing
Services, Inc., be responsible for the Administrative
Amount because AMS should not be obligated to incur any
expense that is the responsibility of PGW;
* the Transaction Documents must specify that CDS is
responsible for all costs related to the transition
involving the PGW Sale under the Transition Services
Agreement; specify the exact amounts of PGW's and AMS's
costs for which the Purchasers will be responsible; and
set forth a dispute resolution process;
* the Transaction Documents fail to provide that Perseus
Books guarantee all of the obligations of CDS under the
agreements; and
* the proposed Purchaser Protection is inappropriate under
the circumstances.
The Committee reserves its right to withdraw its objections in
whole, or in part, as issues are resolved.
(4) Elsevier
Elsevier, Inc., as successor-in-interest to CMP Media LLC,
objects to the sale insofar as PGW seeks to assume an executory
contract with CMP and assign that contract to the proposed
purchasers without complying with the assumption, assignment and
cure requirements. Elsevier also objects to the sale insofar as
it purports to transfer title to books owned by Elsevier, but
are currently held by PGW as a bailee.
(5) Rich Publishing
According to Rich Publishing LLC, it objects to the sale insofar
as there is a superior offer outstanding for the same PGW
assets. Rich Publishing wants the Court to postpone for at
least two weeks, the hearing on the request until the NBN offer
process has developed and other competing bids, if any, are
presented.
(6) LearningExpress
LearningExpress, LLC, objects to the PGW Sale to the extent that
it seeks to assume and assign its Distribution Agreement with
PGW without providing for (i) a cure of all pre- and post-
Petition Date defaults of PGW under the Agreement, and (ii)
adequate assurance of future performance by a proposed
purchaser, including with respect to its Loan Agreement with
PGW.
LearningExpress notes that it is willing to consider alternate
proposals, including from PGW, Perseus Books, or possibly other
potential purchasers.
(7) NAB
Society for the Study of Native Arts and Sciences, doing
business as North Atlantic Books, asserts that the sale unfairly
prejudices publishers, like itself, whose contracts will not be
assigned to the proposed purchasers.
Any benefits seems to inure only to creditor-publishers whose
agreements are being assigned to the Purchasers at the expense
of those publishers whose agreements will be rejected, NAB says.
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). Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than $100 million. The Debtors' exclusive
period to file a Chapter 11 Plan will expire on Apr. 28, 2007.
ADVANCED MARKETING: Court Augments Prepetition Shipping Duty Cap
----------------------------------------------------------------
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 pay the valid
prepetition claims of domestic and international common
carriers, shippers, freight forwarders, and truckers, and
increased the cap set forth in the Court order to US$2,225,000.
Before any payment of prepetition claims of the Common Carriers
is made, the Debtors will provide notice of the proposed Payment
to the financial advisors for the Official Committee of
Unsecured Creditors, Traxi LLC, Judge Sontchi says.
The Committee will have two business days to provide written
notice of objection to a proposed Payment. If no objection is
timely received, the Debtors will be authorized to make the
Payment.
Judge Sontchi notes that if the Creditors Committee timely
objects to a Payment, the Debtors will not make the Payment
without further agreement of the Committee of further Court
ruling.
To the extent the Committee timely objects to a proposed Payment
and the Debtors and the Committee are unable to resolve the
objection consensually, an emergency hearing in no less than
three business days' notice to all parties-in-interest will be
held to consider immediate approval of any proposed Payment.
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). Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors. 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 will expire on Apr. 28, 2007.
AVIS BUDGET: S&P Places Corporate Credit Rating at BB+
------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' corporate
credit rating to Avis Budget Group Inc., parent of Avis Budget
Car Rental LLC.
"The rating assignment follows Avis Budget Group's announcement
on Friday that it will now guarantee Avis Budget Car Rental's
unsecured notes," said Standard & Poor's credit analyst Betsy
Snyder.
"The ratings on both entities are the same since Avis Budget Car
Rental is the primary operating subsidiary of Avis Budget
Group."
The outlook is stable.
Ratings on Avis Budget Group Inc. and its primary operating
subsidiary, Avis Budget Car Rental LLC, reflect the strong
position of the Avis and Budget car rental brands within the
North American on-airport car rental market and access to fleet
financings through asset-backed securitizations.
However, the company's global car rental operations are more
limited than those of its major competitor Hertz Corp. and its
consumer truck rental operation is approximately one-third the
size of competitor U-Haul International. Avis Budget is the
remaining entity of Cendant Corp., after the sale and spin-off
of Cendant's other businesses were completed in August 2006.
Although the company's financial risk profile is aggressive,
with a substantial amount of debt on its balance sheet and a
significant portion of its assets secured, its financial profile
is somewhat stronger than the industry average.
Avis and Budget, which combined account for approximately 91% of
consolidated revenues, participate primarily in the on-airport
segment of the car rental industry. Their combined market share
at U.S. airports is approximately 32%, compared with the 28%
share of their major competitor Hertz. Other large on-airport
competitors include Vanguard Car Rental USA Holdings Inc., the
parent of the Alamo and National brands; unrated Dollar Thrifty
Automotive Group, the parent of the Dollar and Thrifty brands;
and Enterprise Rent-A-Car Co.
Avis focuses on the commercial traveler while Budget
concentrates on the leisure traveler. The on-airport segment is
heavily reliant on airline traffic. Demand tends to be cyclical,
and can also be affected by global events such as wars,
terrorism, and disease outbreaks.
Avis Budget's credit ratios are not expected to improve
materially over the near to intermediate term. Incremental debt
to purchase new vehicles will offset increasing cash flow. If
the company were to reduce debt or add equity to its capital
structure, the outlook could be revised to positive. An outlook
revision to negative is considered less likely, absent a general
downturn in the car rental industry.
Based in Parsippany, New Jersey, and operating under the AVIS
and BUDGET brand names, Avis Budget Car Rental, LLC --
http://www.avisbudgetgroup.com/-- is the one of the largest
general use car rental companies in the world. Avis is a
leading supplier to the premium travel segment and Budget is
considered a top value brand in the leisure segment. For 2005,
the rental company maintained an average fleet of 372,000
vehicles. Approximately 84% and 80% of the domestic Avis and
Budget car rental revenues, respectively, were derived from
airport locations in 2005.
The company has operations in Australia and New Zealand.
AVIS BUDGET: Agrees to Secure Unit's US$1 Billion Senior Notes
--------------------------------------------------------------
Avis Budget Group Inc. has agreed to guarantee the principal of,
and interest on, the US$1 billion aggregate principal amount of
senior notes issued by Avis Budget Car Rental, a subsidiary, in
April 2006.
Accordingly, Avis Budget Car Rental's 7.625% Senior Notes due
2014, 7.75% Senior Notes due 2016 and Floating Rate Senior Notes
due 2014 will now have the benefit of a parent-company
guarantee.
As a result of the guarantee, under applicable rules of the
Securities and Exchange Commission, the company will continue to
file periodic reports with the SEC for the company but does not
expect that periodic reports will be required for any of its
subsidiaries, including Avis Budget Car Rental.
The company expects to achieve cost savings as a result of
filing periodic reports for just one entity. In consideration
of Avis Budget Group's agreement to guarantee the notes, the
company received US$14 million, before fees and expenses, from
certain institutional investors in a transaction arranged by
Deutsche Bank Securities Inc.
The guarantee has not been registered under the Securities Act
of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements.
About Avis Budget
Avis Budget Group, Inc. -- http://www.avisbudgetgroup.com/--
(NYSE:CAR) provides vehicle rental services, with operations in
more than 70 countries. Through its Avis and Budget brands, the
company is the largest general-use vehicle rental company in
each of North America, Australia, New Zealand and certain other
regions. Avis Budget Group is headquartered in Parsippany, N.J.
and has more than 30,000 employees.
* * *
On Feb. 13, 2007, Standard & Poor's Ratings Services assigned
its 'BB+' corporate credit rating to Avis Budget Group Inc.,
parent of Avis Budget Car Rental LLC. According to S&P, the
rating assignment follows after Avis Budget Group's statement
that it will guarantee Avis Budget Car Rental's unsecured notes.
B.T.N. GROUP: Final Meeting Slated for March 7
----------------------------------------------
The members and creditors of B.T.N. Group Pty Limited will hold
a final meeting on March 7, 2007, at 10:30 a.m.
The meeting's agenda are:
-- to gauge creditor interest in funding an insolvent trading
claim;
-- to receive the final receipts and payments from the
liquidator, if no creditors are interested in funding an
insolvent trading claim; and
-- to resolve that the books and records of the company be
destroyed.
As reported by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on July 21, 2006.
The liquidator can be reached at:
Anthony Warner
CRS Warner Sanderson
Web site: http://www.crswarnersanderson.com.au
About B.T.N. Group
B.T.N. Group Pty Limited operates miscellaneous retail stores.
The company is located in New South Wales, Australia.
CLASSIC FRAMELESS: Liquidator to Present Wind-Up Report
-------------------------------------------------------
A final meeting will be held for the members and creditors of
Classic Frameless Showerscreens Pty Limited on March 21, 2007,
at 10:45 a.m.
During the meeting, Liquidator John Vouris will present the
report on the company's wind-up proceedings and property
disposal exercises.
The Liquidator can be reached at:
John Vouris
Lawler Partners
Level 7, 1 Margaret Street
Sydney, New South Wales 2001
Australia
Telephone:(02) 8346 6000
About Classic Frameless
Classic Frameless Showerscreens Pty Ltd is engaged with
manufacturing industries.
The company is located in New South Wales, Australia.
DIVONI PTY: Members and Creditors to Receive Wind-Up Report
-----------------------------------------------------------
The members and creditors of Divoni Pty Limited will hold a
final meeting on March 21, 2007, at 10:15 a.m., to hear the
liquidator's report on the company's wind-up proceedings and
property disposal exercises.
The company went into liquidation on Jan. 11, 2007, as reported
by the Troubled Company Reporter - Asia Pacific.
The liquidator can be reached at:
John Vouris
Lawler Partners
Level 7, 1 Margaret Street
Sydney, New South Wales 2001
Australia
Telephone:(02) 8346 6000
About Divoni Pty
Divoni Pty Limited is a distributor of fabricated textile
products.
The company is located in New South Wales, Australia.
ELITE COMMUNICATIONS: Final Meeting Slated for March 23
-------------------------------------------------------
The members and creditors of Elite Communications Australia Pty
Limited will meet on March 23, 2007, at 10:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal exercises.
The Troubled Company Reporter - Asia Pacific reported that the
company was placed under liquidation on June 28, 2006.
The liquidator can be reached at:
Roderick Mackay Sutherland
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9233 2111
Facsimile:(02) 9233 2144
About Elite Communications
Elite Communications Australia Pty Limited operates
miscellaneous retail stores.
The company is located in New South Wales, Australia.
EVANS & TATE: Offers Counter-Proposal to Yarraman Winery
--------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 15, 2007, Evans & Tate Limited did not accept the merger
proposal -- by way of a scheme of arrangement -- from Yarraman
Winery, Inc., in its current form.
On Feb. 6, 2007, the TCR-AP revealed that Evans & Tate has
received a revised offer from Yarraman.
On Feb. 16, 2007, the company received a second revised offer
and was open for acceptance on the same day.
The Second Revised Offer contained two principal revisions to
the Yarraman Offer:
* an increased enterprise value to AU$148.3million (up AU$6.6
million from the Feb. 1 offer);
* ANZ to receive AU$80 million cash and AU$17.3 million in
unlisted convertible redeemable preference shares in
discharge of its principal debt.
However, after considering the terms of the Second Revised
Offer, the Evans & Tate Board of Directors has made a counter-
offer to Yarraman.
Evans & Tate's Counter-Offer incorporated the terms of the
Second Revised Offer together with these conditions precedent:
* resolution of Evans & Tate's ongoing funding requirements
prior to completion of any scheme between Evans & Tate's
and Yarraman;
* due diligence by each of Evans & Tate and Yarraman to
their respective satisfaction. Evans & Tate's due
diligence will include verification of Yarraman's available
debt and equity funding for the proposed transaction as
well as its forecasts.
Both conditions precedent are to be satisfied by 5:00 p.m.
(WDST) on March 2, 2007. Until these are satisfied, Evans &
Tate is entitled to consider, and accept any other offer it
receives.
The Counter-Offer also includes a requirement for the parties to
enter into a Merger Implementation Agreement by 5:00pm (WDST) on
March 16, 2007.
On Feb. 19, 2007, Evans & Tate received a response constituting
a counter offer from Yarraman, which Evans & Tate will
immediately consider.
A further announcement will be made in due course, Evans & Tate
notes.
About Evans & Tate
Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine
company listed on the Australian Stock Exchange. The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.
The Troubled Company Reporter - Asia Pacific reported on
Sept. 15, 2006, that Evans & Tate posted a loss of AU$63.9
million for the 2005-2006 financial year, down 12% on the
corresponding figure for the previous year.
The TCR-AP report also stated that as of June 30, 2006, the
company's balance sheet revealed strained liquidity with
AU$90.930 billion in total current assets available to pay
AU$152.377 billion of total current liabilities coming due
within the next 12 months. Furthermore, Evans & Tate's June 30,
2006 balance sheet also showed total liabilities of
AU$207.445 billion exceeding total assets of AU$139.792 billion,
resulting to total shareholders' deficit of AU$67.653 billion.
GOLDSPEAR FITNESS: Members and Creditors to Meet on March 20
------------------------------------------------------------
The members and creditors of Goldspear Fitness Club Pty Ltd will
meet on March 20, 2007, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal exercises.
The liquidator can be reached at:
R. W. Whitton
Lawler Partners
Chartered Accountants
Level 7, 1 Margaret Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 8346 6000
About Goldspear Fitness
Goldspear Fitness Club operates aerobics clubs.
The company is located in New South Wales, Australia.
HASBRO INC: Earns US$230.1 Million in Year Ended Dec. 31, 2006
--------------------------------------------------------------
Hasbro Inc. reports record net earnings of US$230.1 million for
the year ended Dec. 31, 2006. This compares with
US$212.1 million of net income in 2005.
For the fourth quarter ended Dec. 31, 2006, the company reports
net earnings of US$108.3 million, compared with US$94.3 million
of net income last year.
For the year, worldwide net revenues were US$3.2 billion, an
increase of 2.1% or US$63.9 million, compared with
US$3.1 billion a year ago. The 2006 results included
US$284.9 million in STAR WARS revenue, compared with
US$494.1 million in the prior year. For the fourth quarter, the
company reported worldwide net revenues of US$1.1 billion, an
increase of 4.1% or US$44.2 million.
"2006 was another good year for Hasbro, we achieved the highest
net earnings in the history of the company," Hasbro President
and Chief Executive Officer Alfred J. Verrecchia said.
"Our performance for both the quarter and year is a solid
indication of the success we have had in growing our core
brands. Given the exceptional performance of Star Wars in 2005,
it is particularly meaningful to have grown revenue 2.1% for the
year and 4.1% for the quarter.
"As we look ahead, we have momentum in our core brands and
commitment to continued innovation. With the richest and most
diversified toy and game product line in the industry, including
product tied to upcoming releases of the Transformers and
Spider-Man movies, we're very excited about the opportunities
for 2007," Mr. Verrecchia concluded.
North American segment revenues, which include all of the
company's toys and games business in the United States, Canada,
and Mexico, were US$2.1 billion for the year compared with US$2
billion a year ago, reflecting strong performances from Littlest
Pet Shop, Clue, Playskool, Monopoly, Transformers, Nerf, Play-
Doh, and Magic: The Gathering.
The segment reported an operating profit of US$276 million for
the year compared with US$165.7 million last year, as adjusted
to include the impact of stock-based compensation. In addition
to the higher revenues, the improvement in operating profit
reflected lower amortization and royalty expenses, as well as a
decline in inventory obsolescence expenses.
International segment revenues for the year were
US$959.3 million compared with US$988.6 million a year ago and
included a US$24.3 million favorable impact from foreign
exchange.
The results reflect declines in Furby, Star Wars, and Duel
Masters, partially offset by strong performance from a number of
core brands including Littlest Pet Shop, Playskool,
Transformers, and MONOPOLY. The International segment reported
an operating profit of US$90.9 million for the year compared to
an operating profit of US$106.4 million in 2005, as adjusted to
include the impact of stock-based compensation expense. The
decline in operating profit was primarily due to lower revenues.
During the fourth quarter, the company repurchased approximately
1.6 million shares of common stock at a total cost of
US$39.5 million. For the year, the company purchased
22.8 million shares at a total cost of US$456.7 million. Since
June of 2005, Hasbro has repurchased approximately 25.2 million
shares, at a total cost of US$504.8 million.
"I am pleased we delivered our sixth consecutive year of
earnings growth," Hasbro Chief Financial Officer David
Hargreaves said. "Our balance sheet remains strong and our
operating margin at 11.9% is very close to the near-term target
of 12% that we have been articulating for a number of years,"
Mr. Hargreaves concluded.
The quarter and full year results for 2006 were impacted by the
Lucas mark to market adjustment. For the quarter and full year
periods in 2006, the impact of the mark to market adjustment for
the Lucas warrants was a non-cash expense of US$24 million and
US$31.8 million, respectively. This compares to non-cash income
of US$1 million and US$2.1 million, respectively, for the
comparable periods in 2005.
The company's 2006 net earnings also include stock-based
compensation due to the required implementation of SFAS 123R at
the beginning of the year. Net earnings prior to fiscal 2006
did not include stock-based compensation.
Additionally, the 2005 results include a tax impact of
US$25.8 million for the repatriation of foreign earnings under
the American Jobs Creation Act.
The company reported full year Earnings Before Interest, Taxes,
Depreciation and Amortization of US$515.7 million compared with
US$521.6 million in 2005.
Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. --
http://www.hasbro.com/-- provides children's and family leisure
time entertainment products and services, including the design,
manufacture and marketing of games and toys ranging from
traditional to high-tech. The company has operations in
Australia, France, Hong Kong, and Mexico, among others.
* * *
Moody's Investors Service affirmed the Baa3 long-term debt
rating of Hasbro, Inc. and changed the ratings outlook to
positive from stable to reflect the expectation for continued-
strong operating performance and cash flows, leading to further
debt reduction and credit metric improvement over the near-to-
intermediate-term. Ratings affirmed include the Baa3 senior
unsecured debt rating and the (P)Ba1 rating for subordinated
debt.
HLP FINANCIAL: Court Orders Wind Up of 13 Investment Schemes
------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 8, 2007, the Australian Securities and Investments
Commission has filed an application with the Federal Court of
Australia to wind up Melbourne-based investment schemes operated
by Peter Berlowitz, HLP Financial Planning (Aust) Pty Ltd,
Leaberl Pty Ltd, and Beachmere View Pty Ltd, as well as 10 other
companies associated with the schemes.
On Feb. 20, 2007, the ASIC disclosed that it has successfully
obtained the orders.
The Honorable Justice Finkelstein ordered that George Georges of
Ferrier Hodgson be appointed as liquidator of these companies:
1) HLP Financial Planning (Aust) Pty Ltd,
2) Leaberl Pty Ltd,
3) Beachmere View Pty Ltd,
4) HLP/FP One Pty Ltd,
5) HLP/FP Two Pty Ltd,
6) HLP/FP Three Pty Ltd,
7) HLP/FP Four Pty Ltd,
8) HLP/GI One Pty Ltd,
9) HLP/GI Two Pty Ltd,
10) HLP/GI Three Pty Ltd,
11) HLP/GI Four Pty Ltd,
12) HLP/GI Five Pty Ltd,
13) HLP/GI Six Pty Ltd
Pending the Liquidator's report into the financial affairs of
the companies, the Court has adjourned the ASIC's application
for declarations that the alleged schemes were managed
investment schemes and subsequently required to be registered
under the Corporations Act and orders winding up the schemes.
The ASIC was successful in joining another Berlowitz company,
HLP Mortgage Company (Aust) Pty Ltd (administrator appointed),
to the proceeding. Its application to wind up that company was
also adjourned until the liquidator files his report.
Mr. Berlowitz provided an undertaking to the court restraining
him from dealing with his assets other than in specific
circumstances.
The ASIC alleged that investors were offered the opportunity to
invest in the business of HLP Financial Planning (Aust) Pty Ltd,
described in promotional material as a company that "seeks out
and develops worthy investment opportunities for its clients."
Investors were promised returns of 5% in the first year of
investment, 11% in year two, 57% in year three and 67% in year
four.
The ASIC's investigations to date revealed that 55 individuals
invested funds totaling AU$5,000,000 between April 1, 2005, and
Sept. 15, 2005, with companies associated with Mr. Berlowitz.
The ASIC believes that there are more investors.
In March 2006, investors' investments were converted to loans to
Beachmere View Pty Ltd and Mr. Berlowitz. Investors were
offered a return of 10% per annum.
The ASIC said it was concerned that investors were not provided
with the appropriate information and protection required by the
Corporations Act and that neither Mr. Berlowitz nor the
companies associated with the schemes were in a position to
repay investors their money.
Background
On Dec. 21, 2006, the ASIC filed an application in the Federal
Court of Australia seeking orders winding up the unregistered
managed investment schemes and the winding up of the companies
the ASIC alleges were involved in the operation of the schemes.
On Feb. 6, 2007, The ASIC applied to join HLP Mortgage Company
(Aust) Pty Ltd (administrator appointed), another company linked
to Mr. Berlowitz, to the proceeding.
The Honorable Justice Finkelstein heard the ASIC's applications
on Feb. 16, 2007.
JAMES HARDIE: Three Directors Resign from Board
-----------------------------------------------
On Feb. 20, 2007, the Board of Directors of James Hardie
announced that it has regretfully accepted the resignations of
Chairman Meredith Hellicar, and non-executive directors Michael
Brown and Michael Gillfillan from the Board and Board
Committees.
The resignations bring forward by some months the planned
departures of each of the three directors. When Ms. Hellicar
and Mr. Gillfillan were re-elected to the Board in September,
they each announced that they would resign during their current
three-year term.
Mr. Brown announced his plans for departure within three years
when he was re-elected in September 2005.
Board renewal has largely been completed with two new directors
appointed in December 2006 (Brian Anderson and Don DeFosset) and
two more in February 2007 (Michael Hammes and Rudy van der
Meer).
After the directors' resignations, the Board revealed that the
current deputy chairman, John Barr, has been appointed Acting
Chairman and Donald McGauchie has been appointed Acting Deputy
Chairman.
Brian Anderson has been appointed chairman and designated
financial expert of the company's Audit Committee, replacing
Mr. Brown.
The other members of the Audit Committee are Michael Hammes and
James Loudon. Mr. Loudon had previously advised his plans to
retire from the Board on March 31, 2007, but he has now agreed
to stay on for a brief period to oversee the smooth transition
to the new directors.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/-
- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives. On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring. James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL. Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.
On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001. In connection with the 2001
reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV. Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.
The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established.
By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia. Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.
In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades. When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.
On Dec. 1, 2005, the Company announced that the NSW Government
and a wholly owned Australian subsidiary of the Company -- LGTDD
Pty Ltd -- had entered into a conditional agreement to provide
long-term funding to a special purpose fund that will provide
compensation for Australian asbestos-related personal injury
claims against certain former James Hardie asbestos companies.
The amount of the asbestos provision of AU$1 billion, at March
31, 2006, is the Company's best estimate of the probable
outcome. The estimate includes an actuarial calculation
prepared by KPMG Actuaries Pty Ltd of the projected future cash
outflows, undiscounted and uninflated, and the anticipated tax
deduction arising from Australian legislation, which came into
force on April 6, 2006.
MULTIPLE SCLEROSIS: Undergoes Liquidation Proceedings
-----------------------------------------------------
At a general meeting held on Jan. 31, 2007, the members of
Multiple Sclerosis Society of New South Wales resolved to
voluntarily wind up the company's operations.
Accordingly, Garth Desmond Olling and Paul Andrew Billingham
were appointed as liquidators.
The Liquidators can be reached at:
Garth Desmond Olling
Paul Andrew Billingham
Chartered Accountants
Grant Thornton
Level 17, 383 Kent Street
Sydney, New South Wales 2000
Australia
About Multiple Sclerosis
Multiple Sclerosis New South Wales --
http://www.msaustralia.org.au/-- has been supporting and
helping people with multiple sclerosis since 1956. Through an
extensive network of centers, branches, support groups and
health services, MS NSW provides specialist programs to people
with multiple sclerosis, their families, careers, friends and
health care professionals.
NICK23Q PTY: Members' and Creditors' Meeting Set for March 9
------------------------------------------------------------
The members and creditors of Nick23Q Pty Ltd will meet on
March 9, 2007, at 10:30 a.m.
At the meeting, the members and creditors will be asked to:
-- receive the final receipts and payments from the
liquidator;
-- receive formal notice of the end of the administration;
and
-- discuss other business.
The liquidator can be reached at:
Ivor Worrell
Worrells Solvency & Forensic Accountants
Level 3, 333 George Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9249 1205
Facsimile:(02) 9249 1211
Web site: http://www.worrells.net.au
About Nick23q Pty
Nick23q Pty Ltd is a distributor of roofing, siding, and
insulation materials.
The company is located in New South Wales, Australia.
NOMURA DARLING: Members Resolve to Close Business
-------------------------------------------------
At a general meeting held on Feb. 1, 2007, the members of
Nomura Darling Park Development Pty Ltd passed a resolution to
wind up the company's operations.
The liquidators can be reached at:
David Clement Pratt
Timothy James Cuming
Level 15, 201 Sussex Street
Sydney, New South Wales 1171
Australia
About Nomura Darling
Nomura Darling Park Development Pty Ltd is engaged with real
estate investment trusts.
The company is located in New South Wales, Australia.
QUEANBEYAN COMMUNITY: Members and Creditors to Meet on March 21
---------------------------------------------------------------
The members and creditors of Queanbeyan Community Training
Centre Inc. will hold a joint meeting on March 21, 2007, at
10:30 a.m., to hear the liquidator's report on the company's
wind-up proceedings and property disposal exercises.
The company entered wind-up proceedings on Sept. 1, 2006, as
reported by the Troubled Company Reporter - Asia Pacific.
The liquidator can be reached at:
Daniel I. Cvitanovic
Shop 5 Old Potato Shed
74-76 Hoddle Street
Robertson, New South Wales 2577
Australia
Telephone:(02) 4885 2500
Facsimile:(02) 4885 2995
About Queanbeyan Community
Queanbeyan Community Training Centre Inc. is involved with
employment agencies.
The company is located in ACT, Australia.
ST ANNES: Members Opt to Shut Down Firm
---------------------------------------
The members of St Annes Pty Limited met on Dec. 22, 2006, and
decided to wind up the company's operations.
In this regard, Sule Arnautovic was appointed as liquidator.
The Liquidator can be reached at:
Sule Arnautovic
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9233 2111
Facsimile:(02) 9233 2144
About St Annes
St Annes Pty Limited is involved with residential care.
The company is located in New South Wales, Australia.
UKRAINIAN CULTURAL: Members' Final Meeting Set for March 21
-----------------------------------------------------------
The members of Ukrainian Cultural & Social Club Limited will
meet on March 21, 2007, at 10:00 a.m.
At the meeting, the members will receive the report of
Liquidator R. G. Tolcher regarding the company's wind-up
proceedings and property disposal exercises.
The TCR-AP noted that the company entered wind-up proceedings on
July 30, 2006.
The Liquidator can be reached at:
R. G. Tolcher
Lawler Partners
Chartered Accountants
763 Hunter Street
Newcastle West
New South Wales 2302
Australia
About The Ukrainian Cultural
The Ukrainian Cultural & Social Club Ltd is involved with civic,
social, and fraternal associations.
The company is located in New South Wales, Australia.
================================
C H I N A & H O N G K O N G
================================
BANK OF COMMUNICATIONS: Unveils 3-Year Plan to Tap VIP Customers
----------------------------------------------------------------
China's Bank of Communications has prepared a three-year plan
for restructuring its customer portfolio to attract wealthy
domestic customers to strengthen its wealth management
operations, The Standard reports.
Qian Wenhui, in an interview with Chinese publication Economic
Observer, said Chinese banks face intense competition from
foreign lenders in luring high-end accounts in the wealth
management sector, the paper relates.
In this regard, the bank is trying to market a brand, OTO
Fortune, which is specifically designed for its VIP customers,
Mr. Qian said.
The Standard notes that the name "OTO," when pronounced in
Chinese, means "providing virtue and moral excellence for the
rich and fertile."
According to the bank's new scheme, a VIP customer would be
matched with a bank employee, who would provide exclusive
service, the paper says.
"Our goal is to establish an OTO Fortune outlet in every major
city in the mainland," Mr. Qian said. However, he admitted
there are areas in which Chinese banks will lag behind foreign
lenders in the near future, The Standard relates.
"Large corporates, small-to-medium enterprises, or companies
seeking to become global all demand certain innovative financial
products which foreign lenders will have the niches in
providing," Mr. Qian said. "These companies have some specific
demands for financing and clearing services."
However, BoCom will take advantage of its strategic partnership
with HSBC Holdings to establish a larger presence in the retail
banking sector, Mr. Qian noted. HSBC currently owns a 19.9%
stake in BoCom, the first bank in China to have a strategic
partnership with a foreign lender, The Standard relates.
* * *
Bank of Communications Co Ltd --
http://www.bankcomm.com/jh/en/index.jsp-- is a commercial bank
in the People's Republic of China. As of December 31, 2005, the
bank had 137 branches and sub-branches, in addition, to over
2,600 business outlets in China. It also has its branches in
Hong Kong, New York, Tokyo, Singapore and Seoul. The bank's
business is divided into four segments: corporate banking,
retail banking, treasury and others. Its corporate banking
business provides products and services to the corporate
customers, such as loans, deposits, bill discounting, trade
finance, fund custody and guarantees. The retail banking
business provides retail banking products and services to its
retail customers, such as deposits, mortgage loans, debit cards,
credit cards, wealth management and foreign exchange trading
services. The treasury operations include inter-bank money
market transactions, foreign exchange trading and government,
and finance bond trading and investment.
The bank carries Fitch Rating's D individual rating effective on
November 21, 2005.
BESTAR INTERNATIONAL: Members' Final Meeting Set for March 26
-------------------------------------------------------------
The members of Bestar International Industries Limited will hold
their final meeting on March 26, 2007, at 4:00 p.m., at Room
502, 5/F., Sun Hung Kai Centre, 30 Harbour Road in Wanchai, Hong
Kong.
At the meeting, the members will receive the liquidator's
accounts of the company's wind-up proceedings and property
disposal exercises.
As reported by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on Aug. 21, 2006.
FIRSTWORLD GARMENTS: Members to Hear Liquidator's Report
--------------------------------------------------------
Firstworld Garments Limited will hold a final general meeting
for its members on March 19, 2007, at Room 1307 Dominion Centre,
43 Queen's Road East in Wanchai, Hong Kong.
The Troubled Company Reporter - Asia Pacific reported that the
company was placed under liquidation on June 15, 2006.
GLORY ELECTRICAL: Creditors' Meeting Slated for March 19
--------------------------------------------------------
The creditors of Glory Electrical Manufacturing (HK) Company
Limited will meet on March 19, 2007, at 11:30 a.m., at Room 401,
4th Floor, China Insurance Group Building in 141 Des Voeux Road
Central, Hong Kong.
During the meeting, the creditors will receive the liquidator's
accounts of the company's wind-up proceedings.
IAC BANK: Inks Long Term Strategic Support with China Aluminum
--------------------------------------------------------------
The Industrial and Commercial Bank of China and China Aluminum
have signed an agreement on long-term strategic cooperation,
Xinhuanet News reports.
Based on the agreement, ICBC will provide comprehensive
financial services to China Aluminum including loans, assets
management, financing, cash management, and debt risks control.
However, the bank did not reveal the exact figures on the credit
line it made available to China Aluminum, the paper says.
* * *
The Industrial and Commercial Bank of China --
http://www.icbc.com.cn-- is the largest state-owned commercial
bank, and is authorized by the State Council and the People's
Bank of China. ICBC conducts operations across China as well as
in major international financial centers.
On Sept. 18, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed ICBC' Individual D/E
rating.
On Dec. 6, 2006, Moody's Investors Service upgraded to D- from
E+ the Bank Financial Strength Rating for Industrial and
Commercial Bank of China. The D- BFSR has a stable outlook.
The upgrade concludes a review of ICBC's BFSR started on Aug. 9,
2006.
JADE REGAL: Final Meeting Slated for March 19
---------------------------------------------
On March 19, 2007, the members of Jade Regal Limited will meet
for their final meeting.
During the meeting, the members will receive the liquidator's
report on the company's wind-up proceedings and property
disposal exercises.
The TCR-AP noted that the company entered wind-up proceedings on
June 10, 2006.
KENNEX ELECTRONICS: Members and Creditors to Meet on March 27
-------------------------------------------------------------
The members and creditors of Kennex Electronics Limited will
meet for their final meeting on March 27, 2007, at 4:00 p.m. and
4:30 p.m., respectively at Room B, 4/F., Kiu Fu Commercial
Building, 300 Lockhart Road in Wan Chai, Hong Kong.
The company went into liquidation on April 19, 2006, as reported
by the Troubled Company Reporter - Asia Pacific.
KINNON INTERNATIONAL: Liquidator to Present Wind-Up Accounts
------------------------------------------------------------
Kinnon International Limited, which is in members' voluntary
liquidation, will hold the final meeting for its members on
March 19, 2007, at 3:00 p.m., at 8/F, Chinachem Tower in 34-37
Connaught Road Central, Hong Kong.
At the meeting, Liquidator George Law Kwan Wah will present the
final accounts of the company's wind-up proceedings and property
disposal exercises.
MICHELE WATCH: Members to Hold Final Meeting on March 23
--------------------------------------------------------
The members of Michele Watch (Far East) Limited will hold their
final meeting on March 23, 2007, at 10:00 a.m., at Rooms 2305-8,
23/F., Hang Seng North Point Building in 341 King's Road, Hong
Kong.
At the meeting, the members will receive the final accounts of
the company's wind-up proceedings and property disposal
exercises.
SHIMAO PROPERTY: Acquires Land Property for CNY1.2B in Han Park
---------------------------------------------------------------
Shimao Property Holdings Limited has acquired a land property
with an aggregate area of over 670,000 square metres to provide
a gross floor area of about 1.3 million square metres located at
Han Cultural and Scenic Park, Xuzhou for CNY1.2 billion.
The site will be developed into a multi-function urban complex
that will integrate facilities for cultural, tourism,
entertainment, commercial and residential purposes, the company
told the Hong Kong Stock Exchange.
* * *
Shimao Property Holdings Limited --
http://www.shimaogroup.com/english/main.asp-- is a large-scale
developer of real estate projects in China, specializing in
high-end developments in prime locations. The company's
business portfolio comprises the development of residential
properties, retail properties, offices and hotels. The company
has 15 projects at various stages of development located in
Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou, Kunshan,
Changshu, Shaoxing and Wuhu.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services on November 8, 2006, assigned
its BB+ long-term corporate credit rating to China-based Shimao
Property Holdings Ltd. The outlook is stable.
SKY SUCCEED: Final Meetings Scheduled for March 19
--------------------------------------------------
The final separate meetings for Sky Succeed Limited and its
creditors will be held on March 19, 2007, at 3:00 p.m. and 3:30
p.m., respectively, at Room 401, 4th Floor, China Insurance
Group Building in 141 Des Voeux Road Central, Hong Kong.
At the meeting, the liquidator will present the final accounts
of the company's wind-up proceedings and property disposal
exercises.
The liquidator can be reached at:
Lo Wing Hung
Room 804, Cheong K Building
84 Des Voeux Road Central
Hong Kong
WORLD EYES: Members to Meet on March 23
---------------------------------------
The members of World Eyes (China) Limited will meet on March 23,
2007, at 4:00 p.m., at Rooms 301 Lucky Building, 39 Wellington
Street in Central, Hong Kong.
At the meeting, the members will receive the liquidator's report
regarding the company's wind-up proceedings and property
disposal exercises.
YIP FAT: Appoints Yam Ming Fai as Liquidator
--------------------------------------------
On Feb. 8, 2007, Yam Ming Fai was appointed as the liquidator of
Yip Fat Book Binding and Printing Company Limited.
The company entered liquidation proceedings on Feb. 8, 2007, as
reported by the Troubled Company Reporter - Asia Pacific.
YONG CHANG: Creditors Must Prove Debts by March 28
--------------------------------------------------
The creditors of Yong Chang Glass Company Limited are required
to file their proofs of debt by March 28, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's distribution of dividend.
As reported by the TCR-AP, the company went into liquidation on
Feb. 13, 2007.
* Chinese Firms Rely More on Equity Funding, Xinhua Finance Says
----------------------------------------------------------------
Xinhua Finance and Milken Institute on Feb. 2, 2007, released
updated values for the Market Adjusted Debt (MAD) Indicator for
the second and third quarters of 2006, both of which dropped
from the first quarter 2006 and were lower than a year prior.
The quarterly released MAD indicator focuses on China's debt
market. It measures the capital structure of Chinese companies
using a long-term debt-to-equity ratio based on market value
instead of book value.
The MAD indicator for the second quarter of 2006 was 11.3,
falling 10.9 percentage points from the first quarter, and 6.6
percentage points from a year prior. The indicator value for
the third quarter 2006 was 15.5, which is a 4.2 percentage point
increase from the previous quarter and 5.5 percent point
decrease from a year prior. The updated indicator chart can be
found at:
http://www.xinhuafinance.com/en/charts/mad.html
-- and --
http://www.milkeninstitute.org/chinaindicators
The indicator decrease in the second quarter 2006 was partially
determined by seasonal factors.
Blue chip companies like China Unicom and Baoshan Iron & Steel
are among those companies that had significant changes in book
value during this period. China Unicom retired approximately
CNY5.6 billion in debt from March to June 2006. In the same
period, Baoshan Iron & Steel also reduced its long-term loans by
CNY2.5 billion.
The domestic interest rates hikes in April and August also led
to a lower market value of outstanding debts. Furthermore, the
performance of the Chinese stock market contributed
significantly to an increase in companies' market value. The
free-float market capitalization increased by 36% in the second
quarter of 2006, and another 7% in the third quarter of 2006.
All these factors combined pulled down the indicator values.
Glenn Yago, Director of Capital Studies at the Milken Institute,
pointed out, "the low mark-to-market debt to equity ratio shows
that Chinese companies continue to rely on equity capital as
major source of financing."
=========
I N D I A
=========
GENERAL MOTORS: Collaborates With Colorado State on E85 Ethanol
---------------------------------------------------------------
General Motors Corp. and Governor Bill Ritter's Colorado E85
Coalition have announced plans for the addition of 40 new E85
ethanol-fueling locations to be opened throughout the state by
the end of 2007. GM will promote the new fueling locations as
part of a broader, ongoing national GM campaign to boost the use
and awareness of ethanol-based E85 fuel in the United States.
The announcement was made at the State Capitol during an event
presided over by Colorado Governor Bill Ritter, GM executives,
and the U.S. Department of Energy.
"I commend General Motors, our retail partners, the Coalition,
and local organizations including the Colorado Corn Growers for
making alternative fuels more widely available to Colorado
drivers. The Coalition's goal to increase alternative fuel
awareness and infrastructure statewide bring Coloradans more
options and reasons for choosing biofuels. These are the
necessary steps to support new energy economies and decrease our
oil dependence," Gov. Ritter said.
Colorado's plans for adding an additional forty stations to the
existing 13 E85 fueling locations is significant since it is the
largest one-time announcement made by GM and any state partner
to-date. Noteworthy to Colorado's efforts, and which other
states will benefit from, is how collaboration with state
government leadership is important to help ensure E85 ethanol
can be made more widely available to consumers at a time when
Underwriters Laboratories has temporarily suspended
authorization for manufacturers to use UL Markings on E85 fuel
dispensing devices.
Working together, the Fire Marshals' Association of Colorado,
the Colorado Division of Oil and Public Safety, the Colorado
Division of Fire Safety and the Office of Energy Management and
Conservation were able to develop appropriate guidelines for
local jurisdictions to continue to use E85 fuel dispensers until
UL resumes listing fuel-dispensing equipment.
"We appreciate the efforts of Governor Ritter and the OEMC to
support E85 ethanol and we commend the fire marshals for
developing a state-wide plan to continue to make this great fuel
alternative available in Colorado as UL progresses with testing
and certification," General Motors Vice President of Environment
and Energy Elizabeth Lowery said.
"At GM, we believe that the biofuel with the greatest potential
to displace petroleum-based fuels in the U.S. is ethanol and we
have made a major commitment to vehicles that can run on E85
ethanol-with over two million of our FlexFuel vehicles on the
road today and plans to expand production going forward. We
will continue to work with government, organizations and
retailers to promote increased use and awareness of E85 ethanol
across the country."
As part of the partnership, GM will promote the availability of
the fuel with consumer and dealer outreach. Local GM dealers
will help promote these new refueling stations whenever
customers purchase flex-fuel vehicles. [Thi]s announcement is
part of a nationwide effort by GM to help grow the E85 ethanol
fueling station infrastructure. Since May of 2005, GM has
announced partnerships in 12 states (South Dakota, California,
Texas, Illinois, Minnesota, Michigan, Indiana, Ohio,
Pennsylvania, Florida, New York, and Virginia) to locate more
than 200 E85 fueling pumps at stations around the country.
The goals of the Colorado E85 Coalition depend upon strategic
partnerships with key retailers like Pester Marketing and
Western Convenience. These two retailers announced that they
are committed to respectively opening 12 and 10 E85 ethanol-as
well as some biodiesel-fueling sites this year.
Rich Spresser, Executive Vice President, Pester Marketing added,
"As the number of flex fuel vehicles on Colorado roads continues
to increase, Pester is pleased to be able to provide our
customers with convenience while supporting the use of cleaner
burning fuels, like E85 ethanol."
"Western Convenience is proud to offer its customers and the
many Colorado motorists greater access to E85 fuel," Western
Convenience Director of Operations Bob Van Meter said. "Our 10
sites will make alternative fuels available across the state."
"The Department of Energy congratulates Governor Ritter's
Colorado E85 Coalition and General Motors in the formation of
this partnership to promote renewable biofuels for consumers at
more retail locations," the Department of Energy Principal
Deputy Assistant Secretary John Mizroch said.
"Recently, DOE awarded the Coalition nearly US$400,000 for
increasing alternative fuel infrastructure development and usage
in Colorado. All of these efforts will help our nation to wean
itself from its addiction to oil by providing consumers with
domestically grown and produced fuel choices like E85 ethanol."
GM's E85 partnership and marketing campaign are designed to
encourage greater E85 use and showcase GM's E85 FlexFuel vehicle
leadership to U.S. consumers. E85 FlexFuel vehicles can run on
any combination of gasoline and/or E85, a fuel blend of 85%
ethanol and 15% gasoline. E85 can contribute to energy
independence because it diversifies the source of transportation
fuels beyond petroleum, and it provides positive environmental
benefits in the form of reduced greenhouse gas emissions.
Currently, GM has more than 2 million E85 FlexFuel vehicles on
the road in all 50 states, and will produce more this year. For
the 2007 model year, GM is offering 16 E85 ethanol-capable
vehicle models, with an annual production of more than 400,000
vehicles. This is more than any other manufacturer.
GM believes that developing alternative sources of energy and
propulsion is the key to mitigating many of the issues
surrounding energy availability. Producing E85 FlexFuel
vehicles is one part of GM's strategy to help reduce the use of
petroleum and also reduce vehicle emissions. GM's strategy also
includes improving the efficiency of the traditional internal
combustion engine with technologies available today; and
developing electrically driven vehicles such as hybrids, plug-in
hybrids, fuel cell vehicles, and electric vehicles.
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
Jan. 31, 2007, S&P said that the company's announcement that it
is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).
As reported in TCR-AP on Nov. 16, 2006, Moody's Investors
Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5
Billion secured term loan. The term loan is expected to be
secured by a first priority perfected security interest in all
of the US machinery and equipment, and special tools of GM and
Saturn Corporation.
KARNATAKA BANK: Net Profit Up 30% in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
Karnataka Bank Ltd posted a net profit of INR538.8 million for
the three months ended Dec. 31, 2006, a 30% increase from the
INR415.2 million earned in the corresponding period in 2005.
According to the disclosure, the boost in profit could be
attributed to rising revenues and the bank booking lesser
provisions.
The bank's revenues rose 19% from the INR3.031 billion in the
quarter ended Dec. 31, 2005, to INR3.617 billion in the current
quarter under review. Expenses also increased from the
INR2.249 billion incurred in the fourth quarter of 2005 to
INR2.722 billion in the December 2006 quarter.
The bank set aside INR61.9 million for provisions and
contingencies in the December 2006 quarter, a decline of 51%
from the INR127.6 million provided for in the December 2005
quarter.
A copy of the bank's financial results is available for free at
the Bombay Stock Exchange at:
http://ResearchArchives.com/t/s?1a13
Headquartered in Mangalore, India, Karnataka Bank Ltd --
http://karnatakabank.com/ktk/Index.jsp-- provides products and
services for business and personal purposes that include
borrowing facilities, deposits, providing optimum returns on
surplus funds or helping with overseas transactions. The bank
has two business segments: Treasury and Other Banking
Operations. Treasury Operations mainly comprise of surplus
statutory liquidity ratio and non-SLR investments. Other
Banking Operations mainly consist of advance portfolio of the
bank and SLR securities to the extent of SLR requirements. The
bank provides Working Capital Finance, Term Loans and
Infrastructure Finance. The Business Finance Products offers
both fund-based and non-fund-based products. The bank has
diversified into the marketing of life insurance products of
MetLife India Insurance Co. Pvt. Ltd. The Bank has entered into
a memorandum of understanding with Bajaj Allianz General
Insurance Co. Ltd. for distribution of its general insurance
products through its branches.
Fitch Ratings gave Karnataka Bank a support rating of 5.
KARNATAKA BANK: Eyes INR25,000-Cr. Business Turnover in FY 2007
---------------------------------------------------------------
Karnataka Bank Ltd is eyeing a business turnover of INR25,000
crore this fiscal year, the Press Trust of India reports.
Additionally, the bank is planning to add 11 branches by the end
of 2007, which will increase the total number of its branches to
415.
Headquartered in Mangalore, India, Karnataka Bank Ltd --
http://karnatakabank.com/ktk/Index.jsp-- provides products and
services for business and personal purposes that include
borrowing facilities, deposits, providing optimum returns on
surplus funds or helping with overseas transactions. The bank
has two business segments: Treasury and Other Banking
Operations. Treasury Operations mainly comprise of surplus
statutory liquidity ratio and non-SLR investments. Other
Banking Operations mainly consist of advance portfolio of the
bank and SLR securities to the extent of SLR requirements. The
bank provides Working Capital Finance, Term Loans and
Infrastructure Finance. The Business Finance Products offers
both fund-based and non-fund-based products. The bank has
diversified into the marketing of life insurance products of
MetLife India Insurance Co. Pvt. Ltd. The Bank has entered into
a memorandum of understanding with Bajaj Allianz General
Insurance Co. Ltd. for distribution of its general insurance
products through its branches.
Fitch Ratings gave Karnataka Bank a support rating of 5.
KOTAK MAHINDRA: Allots 52,712 Shares Under Equity Options Plan
--------------------------------------------------------------
Kotak Mahindra Bank Ltd allotted has 52,712 equity shares of
INR10 each pursuant to the exercise of stock options granted
under the bank's equity options plan 2002-03:
Plan Series Equity Shares
----------- -------------
2002-03/03 7,500
2002-03/04 10,000
2002-03/05 3,750
2002-03/06 31,462
The bank issued the shares through its ESOP Allotment Committee
at a meeting held on Feb. 8, 2007.
Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank. The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services. Corporate Centre segment includes
strategic investment and activities. Car Finance segment offers
car financing. Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization. Investment
Banking segment includes advisory and transactional services
providing financial advisory services. Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits. Insurance segment offers life
insurance. Others segment includes forex broking, asset
management services and others.
On Jan. 19, 2007, Fitch assigned a 'C/D' Individual
rating to Kotak Mahindra Bank Ltd. and affirmed the bank's
support rating at '5'.
LLOYDS FINANCE: Posts INR4.57 Mil. Net Loss in December '06 Qtr.
----------------------------------------------------------------
Lloyds Finance Ltd. recorded a net loss of INR4.57 million in
the quarter ended Dec. 31, 2006, the company disclosed in a
regulatory filing with the Bombay Stock Exchange. For the
corresponding quarter in 2005, the company booked a net loss of
INR9.29 million.
In the quarter under review, Lloyds Finance recorded
INR1.57 million as total income, operating expenses aggregating
INR6.12 million and provision for fringe benefit tax of
INR30,000.
There was no business operation for the company by virtue of the
restrictions imposed by the Reserve Bank of India, the BSE
filing notes. Pursuant to an order of a Bombay High Court, the
company is currently winding up its operations.
A copy of Lloyds Finance's financial results for the quarter
ended Dec. 31, 2006, is available for free at:
http://ResearchArchives.com/t/s?1a17
Lloyds Finance Ltd. provides financial services including
leasing, hire purchase, merchant banking, equity research,
corporate finance, portfolio management, forex and other
advisory services.
Pursuant to a winding up petition, the Honorable High Court of
Bombay on March 12, 2004, appointed a special committee to take
charge of the management and affairs of Lloyds Finance. The
special committee has been appointed instead of an official
liquidator. The committee has been empowered to take all
necessary steps to generate funds from the company's debtors and
frame the scheme of repayment to all creditors including
debenture holders.
In that regard, the committee formulated a scheme for repayment
to debenture holders and placed the plan before the High Court
for approval. Approval of Securities and Exchange Board of
India to the scheme has already been accorded via order dated
May 5, 2006. Repayment to debenture holders will commence after
approval of the High Court as per terms and conditions of
scheme.
The company's fixed deposits and senior unsecured debt carry
Credit Analysis and Research Limited's CARE D rating.
Additionally, Lloyds Finance's short-term FD 3800, long-term NCD
217 and OFCD 517 all carry a CARE D rating effective on
August 31, 2006.
ORIENTAL BANK OF COMMERCE: Board Okays 20% Interim Dividend
-----------------------------------------------------------
Oriental Bank of Commerce's board of directors has approved a
20% interim dividend for the financial year 2006-2007, a filing
with the Bombay Stock Exchange states. The board came up with
the decision at its meeting held on Feb. 20, 2007.
The bank fixed March 8, 2007, as the record date for the purpose
of payment of the interim dividend.
Headquartered in New Delhi, India, Oriental Bank of Commerce --
http://www.obcindia.com/-- is a scheduled commercial bank. The
company's domestic services include deposits, comprised of term
deposits, savings accounts, current accounts and the Suvidha
deposit scheme; advances, which consist of corporate advances, a
range of retail credit products and specialty schemes, and
government business, comprised of direct tax collection, pension
disbursement and savings bonds. It also provides non-resident
Indian banking solutions, including non-resident external
accounts, non-resident ordinary accounts, foreign currency non-
resident accounts and resident foreign currency accounts. It
also offers debit card services. The bank also provides
treasury services and merchant banking services. The bank has
introduced products and services, such as Anywhere Branch
Banking, Cash Management Service, Telebanking, automated teller
machines and Internet banking through select branches. During
the fiscal year ended March 31, 2006, the Bank had a total of
1,148 branches.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Aug. 21, 2006, that Fitch Ratings assigned a long-term foreign
currency issuer default rating of BB+ to Oriental Bank of
Commerce. The Bank's individual and support ratings have been
affirmed at C/D and 4, respectively. The outlook on the ratings
is stable.
RYERSON INC: S&P Cuts Corporate Credit Rating to B+ from BB-
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating to 'B+' from 'BB-' on Chicago, Illinois-based metals
processor and distributor Ryerson Inc., and lowered its senior
unsecured rating to 'B-' from 'B'.
The outlook is developing, reflecting the uncertainties
associated with Ryerson's decision to retain an investment bank
to explore strategic alternatives. A developing outlook means
ratings can be either raised, lowered, or affirmed.
"We believe Ryerson's decision is in response to the intention
of hedge-fund Harbinger Capital to take control of the board of
directors," said Standard & Poor's credit analyst Thomas
Watters.
"The downgrade reflects the persistence of poor operating
performance by Ryerson relative to its some of its peers, high
debt leverage, softening end-market demand, weak credit measures
that have not met our expectations, and concerns about working
capital management--a critical factor in companies with this
type of working-capital-intensive business model."
In a highly fragmented industry, Ryerson is one of the leading
North American metal service centers with an approximate 5%
market share and about US$5.9 billion in revenues.
* * *
Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a
distributor and processor of metals in North America, with 2006
revenues of US$5.9 billion. The company services customers
through a network of service centers across the United States
and in Canada, Mexico, India, and China. On Jan. 1, 2006, the
company changed its name from Ryerson Tull, Inc. to Ryerson Inc.
RYERSON INC: Posts US$4.4-Mil. Net Loss in 4th Quarter of 2006
--------------------------------------------------------------
Ryerson Inc. has reported results for the fourth quarter and
full year ended Dec. 31, 2006. Net income was US$71.8 million
for 2006, compared with US$98.1 million for 2005. For the
fourth quarter of 2006, Ryerson reported a net loss of
US$4.4 million, compared with net income of US$6.3 million for
the fourth quarter of 2005.
"Fourth quarter 2006 volume, as anticipated, reflected the
typical year-end slowdown, exacerbated by high inventories in a
variety of products throughout the supply chain," Ryerson
Chairman, President, and Chief Executive Officer Neil S. Novich
said.
"Additionally, this excess industry-wide inventory, coupled with
an extraordinary run up in stainless steel prices, due to nickel
surcharges (up an average of approximately US$700 per ton from
the third quarter to the fourth), exerted margin pressure in the
quarter.
"For the full year, we accomplished a great deal," Mr. Novich
continued. "By year-end, we reached annualized cost savings of
US$42 million from the Integris integration.
"Additionally, we identified increased cost savings
opportunities and raised our target for total synergy savings
from US$50 million to US$60 million.
"We made steady progress toward consolidating multiple software
platforms, shutting down one legacy platform and beginning the
SAP conversion of service centers formerly part of the Integris
network.
"We acquired Lancaster Steel Service Company Inc., which
complements our existing capabilities in western New York and
creates cross-selling opportunities.
"With the establishment of VSC-Ryerson China Limited, we
participate in the world's largest and fastest growing metals
consuming market. And we've improved our procurement
capabilities with a new global sourcing office in Hong Kong."
With stainless steel and aluminum accounting for roughly one-
half of Ryerson's revenues, rising material costs for these
metals-up 84% and 25%, respectively, in 2006-had a significant
effect on reported earnings.
The effect of rising materials costs on reported earnings is
more immediate under the LIFO method of inventory accounting
than FIFO, as LIFO matches current selling prices with the
current replacement cost.
Under FIFO inventory accounting, profits would have been higher
than reported under LIFO by approximately US$190 million pretax
in 2006, and US$70 million pretax in the fourth quarter of 2006.
Fourth-Quarter Performance
Fourth quarter sales increased 8.5% from the fourth quarter of
2005, as the average selling price per ton increased 21.2%,
partially offset by a 10.5% decline in tons shipped.
Sequentially, sales decreased 8% from the third quarter of 2006.
While the average selling price per ton increased 3.1%,
sequentially, tons shipped declined 10.8%, consistent with
industry trends.
Gross profit per ton was US$249 in the fourth quarter of 2006,
compared with US$240 in the fourth quarter of 2005 and US$267 in
the third quarter of 2006. Gross margin declined to 12.9% in
the fourth quarter of 2006, compared with 15.1% in the fourth
quarter of 2005 and 14.3% in the third quarter of 2006, due to
both the impact of rising nickel surcharges on stainless steel,
which are passed through without mark-up, and competitive
pricing pressure.
Operating expenses per ton were US$234 in the fourth quarter of
2006, compared with US$207 in the fourth quarter of 2005 and
US$204 in the third quarter of 2006. The year-over-year
increase in operating expenses per ton was primarily due to the
effect of reduced shipments as well as higher spending on the
SAP conversion and inflationary pressure, particularly in energy
and employee benefit costs, partially offset by synergy cost
savings associated with the Integris integration. Sequentially,
fourth quarter expenses per ton increased due to lower volume
and a favorable credit loss adjustment in the third quarter.
Interest expense was US$21.1 million in the fourth quarter of
2006, compared with US$16.3 million in the fourth quarter of
2005 and US$18.8 million in the third quarter of 2006.
Full-Year Performance
For the full year, sales increased 2.2% to US$5.9 billion on an
8.7% increase in the average selling price per ton, offset by a
5.9% decline in tons shipped.
Gross profit per ton increased to US$261 in 2006, compared with
US$254 in 2005. Gross margin declined to 14.5% in 2006,
compared with 15.3% in 2005. 2006 operating expenses per ton
were US$205, compared with US$187 in 2005. 2006 results
included a US$4.5 million pre-tax restructuring charge and a
US$21.6 million pre-tax gain on the sale of assets. 2005
results included a US$4 million pre-tax restructuring charge a
US$21 million pre-tax pension curtailment gain and a US$6.6
million pre-tax gain on the sale of assets.
Volume declined primarily because of two previously reported
first quarter 2006 events -- the sale of the oil and gas
business and the loss of two large accounts.
Operating expenses increased, primarily due to greater spending
on the SAP rollout, higher employee costs, and inflationary
pressure, principally in energy, partially offset by synergy
cost savings associated with the Integris integration.
Financial Condition
Ryerson ended 2006 with a debt-to-capital ratio of 65%, compared
with 62.7% at the end of the third quarter and 61.6% at year-end
2005. Availability under the revolving credit facility was
US$188 million at the end of the fourth quarter of 2006,
compared with US$323 million at the end of the third quarter and
US$575 million at year-end 2005. Higher debt levels in 2006
were driven by increased inventory levels, consistent with
trends in the service center industry. However, the company has
made progress reducing inventories in 2007, which are down
approximately US$50 million in January, from year-end 2006
levels of US$1,632.6 million, as measured on a current value
basis.
In January 2007, Ryerson refinanced its existing US$1.1 billion
revolving credit facility, replacing it with a 5-year,
US$750 million revolving credit facility and a 5-year, US$450
million accounts receivable securitization.
The new securitization facility will result in annualized
interest expense savings of approximately US$5 million, compared
with interest costs under the prior facility. In the first
quarter of 2007, there will be a one-time, US$2.7 million write
off of unamortized expense associated with the prior credit
facility.
Outlook
"Higher inventories throughout the supply chain will continue to
affect the industry for at least the first quarter of 2007," Mr.
Novich concluded. "But we are optimistic that our initiatives
will improve the operating performance of the company."
2007 initiatives include:
-- Reducing current value of inventory at least US$100
million by the end of the first quarter of 2007, compared
to year-end 2006 levels; achieving inventory turnover of 5
turns by year end.
-- Addressing underperforming service centers, targeting
operating profit improvement of US$30 million in 2007,
exclusive of any potential restructuring charges.
-- Completing the SAP conversion of Integris; consolidating
15 service centers; capturing additional savings of
US$10 million to achieve annualized Integris synergy
savings of US$60 million by year-end 2007.
The company has already implemented organizational and
management changes in January consistent with the ongoing
aperformance initiatives.
In addition to these specific initiatives for 2007, Ryerson
remains on schedule to complete the conversion to SAP by the end
of 2008. Moving to a single, modern platform allows the company
to manage inventories in a uniform fashion, significantly reduce
overall IT expense, and complete the integration of Integris.
Ryerson now expects total project costs for the 2004 to 2008
time frame of US$80 million, compared with the earlier estimate
of US$65 million. The increase is largely to enhance system
functionality and productivity and provide additional savings
opportunities. The company will also continue to pursue long-
term profitable growth based on its three fundamental
principles: achieve world-class operations, drive organic
growth, and enhance competitive position domestically and
globally through targeted acquisitions and joint ventures.
Shareholder Proposal
On Jan. 2, 2007, Harbinger Capital Partners announced it is
seeking to elect seven nominees, which would be a majority, to
Ryerson's Board of Directors at the company's 2007 Annual
Meeting.
Ryerson's Board of Directors and its advisors conducted a
thorough evaluation of Harbinger's analysis and proposal
compared to Ryerson's short-term and long-term plans.
Based on this evaluation, Ryerson's Board disagrees with
Harbinger's analysis and will oppose its efforts to obtain
control of Ryerson's Board and consequently, the company.
The Board believes that implementing the company's current
strategic plan will significantly enhance value for all
shareholders.
UBS Investment Bank Retention
In addition, the Board has retained UBS Investment Bank as its
financial advisor to assist in comparing the company's current
plan with other strategic alternatives, which may create
additional value.
Ryerson may not update its process or disclose developments with
respect to potential strategic initiatives unless the Board has
approved a definitive course of action or transaction.
The company will elaborate on its opposition to Harbinger's
efforts to obtain control of the Board in appropriate filings
with the SEC.
About Ryerson Inc.
Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a
distributor and processor of metals in North America, with 2006
revenues of US$5.9 billion. The company services customers
through a network of service centers across the United States
and in Canada, Mexico, India, and China. On Jan. 1, 2006, the
company changed its name from Ryerson Tull, Inc. to Ryerson Inc.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 24, 2006, Moody's Investors Service confirmed its B1
Corporate Family Rating for Ryerson and its B3 rating on the
company's US$150 million issue of 8.25% guaranteed senior
unsecured global bonds. Moody's also assigned an LGD6 rating to
those loans, suggesting noteholders will experience a 91% loss
in the event of a default.
Standard & Poor's Ratings Services lowered its corporate credit
rating to 'B+' from 'BB-' on Chicago, Illinois-based metals
processor and distributor Ryerson Inc., and lowered its senior
unsecured rating to 'B-' from 'B'.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Inks Network Upgrade Deal with OJSC VimpelCom
-------------------------------------------------------------
OJSC Vimpel-Communications has selected Alcatel-Lucent to
upgrade and enhance the operator's wireless network with the
latest generation of Alcatel-Lucent's GSM/EDGE radio platform,
which is based on the industry most advanced hardware
architecture.
With its compact new design and high performance, this platform
will leverage VimpelCom's existing radio access network
investments while reducing operating expenses.
Following intensive and successful testing carried out jointly
with VimpelCom, the new platform is planned for commercial
deployment for the first time throughout Russia and the
Commonwealth of Independent States (CIS) on the operator's
existing network built on Alcatel-Lucent systems.
Alcatel-Lucent's 9130 Base Station Controller/Multi-BSC Fast
Packet Server (BSC/MFS) is a new BSS (Base Station Sub-System)
controllerplatform that supports the ever-increasing market-
driven volume of voice and data traffic. This state-of-the art
equipment based on the field-proven Advanced Telecom Computing
Architecture (ATCA) will enable VimpelCom to create a more
centralised and optimized GSM/EDGE network architecture, thereby
bringing significant cost savings in network deployments and
extensions.
"Rapidly evolving market conditions combined with the ongoing
introduction of innovative subscriber services and applications
dictate the need for a high degree of flexibility and
scalability within network infrastructures," said Sergey Avdeev,
VimpelCom executive vice-president of business development in
the CIS and VimpelCom CTO. "We are confident that with Alcatel-
Lucent's 9130 BSC/MFS we are geared for future network
evolutions, including full IP connectivity."
"This is the first commercial deployment of Alcatel-Lucent's
9130 BSC/MFS, and we are very proud of that and of being
selected once again by VimpelCom to provide the technology
needed to further develop its network," said Johan
Vanderplaetse, President of Alcatel-Lucent's activities in CIS.
"This further demonstrates Alcatel-Lucent's commitment in
delivering the most advanced GSM/EDGE solution for network
expansion. As VimpelCom's network grows and evolves, the
requirement for more base station controllers will increase,
requiring state-of-the art equipment that can deliver the new
services and IP-based applications that VimpelCom's customers
will expect."
Mr. Vanderplaetse added that Alcatel-Lucent's solution will
prepare VimpelCom for a next-generation network architecture
that will ease the introduction of new advanced services while
decreasing operating expenses and optimizing the ability of
their network to accommodate growth.
Alcatel-Lucent has more than 170 GSM/EDGE customers in more than
90 countries, making it a leading provider of mobile
communications solutions. Alcatel-Lucent is boosting its
GSM/EDGE portfolio by introducing the field-proven ATCA-based
BSC Evolution associated with the powerful TWIN Transceiver
module
About VimpelCom
Headquartered in Moscow, Russia, OJSC Vimpel-Communications
-- http://www.vimpelcom.com/-- provides mobile
telecommunications services in Russia and Kazakhstan with newly
acquired operations in Ukraine, Tajikistan and Uzbekistan. The
Company operates under the 'Beeline' brand in Russia and
Kazakhstan. In addition, VimpelCom is continuing to use 'K-
mobile' and 'EXCESS' brands in Kazakhstan. The group wholly
owns Mobitel in Georgia.
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 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 of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB-
rating. It's Short-Term Corporate Credit rating stands at B.
Moody's on the other hand put a Ba2 rating on Alcatel' s
Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.
Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.
ALCATEL-LUCENT: To Deploy Metro Ethernet Solution in Poland
-----------------------------------------------------------
Alcatel-Lucent's IP solutions have been selected by Netia,
Poland's largest alternative fixed telecommunications provider,
as the basis for the countrywide deployment of its next-
generation 10G Metro Ethernet networks. The Alcatel-Lucent
solution provides a single unified infrastructure upon which
Netia can offer highly reliable business services such as
Virtual Private LAN Services and IP VPNs, and also will form the
base for all future services including triple play.
Netia chose to replace its existing equipment with the Alcatel-
Lucent Metro Ethernet solution, which supports multiple service
types with superior scale, hierarchical quality of service and
availability - all critical for guaranteeing stringent Service
Level Agreements on business-critical data. The Alcatel-Lucent
solution will also accommodate triple play services allowing
Netia to offer the next wave of advanced services with minimal
further investment.
"Poland has one of the fastest growing broadband markets in
Central-Eastern Europe and that requires us to aggressively
expand our services to meet customer demand," said Jolanta
Ciesielska, Netia spokesperson. "Alcatel-Lucent offers
excellent technology and proven performance giving us a solid
base to grow our business with services that are a cut above
those of our competitors. It also will be the infrastructure
for future advanced broadband services."
"As broadband penetration is still low in Poland compared to
other European Union countries, the opportunity is huge for
services providers who are willing to invest in a converged
IP/MPLS network and offer advanced Ethernet services," said
Basil Alwan, President of Alcatel-Lucent's IP activities.
"Netia has replaced its legacy gear with a solution that gives
them the freedom of introducing services quickly, simply and in
line with market demand."
Alcatel-Lucent will deploy its industry-leading Metro Ethernet
portfolio in various locations across Poland over the next three
years. The Alcatel-Lucent solution consists of the 7750 Service
Router, 7450 Ethernet Service Switch, 7250 Service Access Switch
and the 5620 Service Aware Manager.
Worldwide, more than 160 service providers in 60 countries,
including AT&T, BT, Telia Sonera, Telefonica and France Telecom,
have selected the Alcatel-Lucent IP portfolio.
About Netia SA
Netia is the leading alternative fixed-line telecommunications
operator in Poland. It operates on the basis of its own, state-
of-the-art fiber-optic backbone network that connects the
largest Polish cities as well as its local access networks.
Netia provides a broad range of telecommunications services,
including voice, data and network wholesale services. P4 - the
mobile telephony venture of Netia - creates an opportunity for
Netia to extend further its range of products on offer by
providing mobile telephony and convergent services. To provide
high quality voice and data services Netia builds its access
network based on WiMax technology and using 3.6 - 3.8 GHz
frequency. International and Polish finance funds are the
biggest Netia's shareholders. Netia's shares are listed on the
Warsaw Stock Exchange.
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 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 of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB-
rating. It's Short-Term Corporate Credit rating stands at B.
Moody's on the other hand put a Ba2 rating on Alcatel' s
Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.
Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.
ALCATEL-LUCENT: Completes Trial of Advanced WiMAX Tech in India
---------------------------------------------------------------
Alcatel-Lucent revealed that the C-Dot Alcatel-Lucent Research
Centre in Chennai, India, successfully completed the country's
first live WiMAX IEEE 802.16e-2005 field trial using Aircel's
licensed spectrum, confirming this technology is ready for
commercial deployment.
The trials were conducted using the 2.5GHz band and successfully
demonstrated applications in moving conditions such as video
streaming, high-speed file downloads, Voice over IP and Web
browsing.
"WiMAX technology is likely to become a widely used high-speed
Internet access technology like DSL and cable modem access. By
offering customized, cost-effective enterprise solutions using
next-generation technologies such as WiMAX, Aircel aims to
become the 'Service Provider of Choice' for enterprise, SMEs and
corporate clients," said Jagdish Kini, Group Chief Executive
Officer, Aircel, stated. "Alcatel-Lucent's WiMAX solutions and
their capability to offer higher throughput are poised to
address service providers' challenges to offer reliable &
affordable broadband services bundled with VoIP."
"Alcatel-Lucent and Aircel both see WiMAX Rev-e as a
revolutionary broadband access technology," said Patrick Veron,
CEO, C-DOT Alcatel-Lucent Research Centre. "The success of
WiMAX Rev-e trials is another milestone for CARC and Alcatel-
Lucent, as these trials reinforce our technological leadership
for broadband wireless access in the country. This technology
enables the subscribers in urban and rural areas to enjoy
wireless broadband access services any time, anywhere. WiMAX
has the potential to provide India with widespread broadband
access that can usher in economic growth, better education and
health care, and improved entertainment services as it has done
elsewhere in the world."
About WiMAX
WiMAX (802.16e-2005) stands for Worldwide Interoperability for
Microwave Access. It enables Voice and Broadband connectivity
for fixed, nomadic or mobile use in urban, suburban and rural
areas.
About Aircel Business Solutions
Aircel Business Solutions, a part of Aircel, is headquartered in
Chennai and is an ISO 9000 certified company. ABS is a
registered member of WiMAX forum -- both in the Indian and
International Chapters. ABS's product range includes a host of
cutting-edge enterprise solutions such as Multi Protocol Label
Switching Virtual Private Networks, Voice over Internet Protocol
and Managed Video Services on wireless platform including WiMAX.
ABS is the first operator in the county to have deployed WIMAX
with PAN city coverage and among top five players across the
globe. Main benefit of WIMAX for ABS is that it is able to
offer very high uptime for end to end connectivity with Service
level agreement as it owns the last mile access using WIMAX
technology.
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 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 of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB-
rating. It's Short-Term Corporate Credit rating stands at B.
Moody's on the other hand put a Ba2 rating on Alcatel' s
Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.
Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.
BANK DANAMON: Pefindo Assigns "idAA-" Ratings
---------------------------------------------
Pefindo assigned "idAA-" ratings to PT Bank Danamon Indonesia
Tbk and the Bank's proposed 5-year Bond I/2007 amounting to a
maximum of IDR2.0 trillion. The outlook for both ratings is
"Stable".
The ratings reflect the Bank's well positioned in the high-yield
assets and robust financial profile. However, unfavorable third
party deposit structure as well as increased competition has
slightly constrained the above strengths.
Founded in 1956, the Bank has grown to become the fifth-largest
commercial bank and the second-largest private bank in
Indonesia. Following the recapitalization program in 1998, the
Bank was majority owned by the Government of Indonesia through
IBRA. Subsequently, in June 2003, IBRA sold its shares at the
Bank to Asia Financial Indonesia Pte. Ltd., an entity
established by the consortium of Temasek Holdings and Deutsche
Bank. A new management was then appointed by AFI to manage the
Bank. By the end of 2006, the Bank delivered its services
through 1,107 network offices located in major cities across
Indonesia with total employees of 31,075. BDMN's major
shareholders, AFI, owned 69.25% of the Bank's shares as of
December 2006, while public held about 25.73%.
The ratings reflect the Bank's:
* Well positioned in the high-yield assets. Focusing on two
high-yield businesses, micro lending and consumer loan,
BDMN has underscored its well positioned within those two
segments. In its micro lending business, BDMN penetrated
the market through 'Danamon Simpan Pinjam', a business
unit established to serve banking needs of mass market,
both self-employed individuals and employed consumers.
Within a period of about two and a half years, BDMN has
built a network of 693 units of DSP Self Employed Mass
Market with outstanding loan balances of IDR6,228 billion,
accounted for about 15% of the Bank's total loans as of
FY06. Located in the traditional wet markets, DSP SEMM
has a specific target market, i.e. traders within the
certain pasar, with an average loan size per debtor of
IDR40 million and high loan rates of about 2% per month.
With simplicity, proximity, and speedy service, DSP SEMM
has gained satisfactory reception from its target market,
as evidenced by strong growth of loan balances of more
than eleven folds from IDR545 billion in 2004 and almost
doubled from IDR3,650 billion in 2005. Other high-yield
segment, consumer loans, remains as the largest
contributor with total outstanding loan balance of
IDR14,917 billion, accounted for around 36% of total loans
as of FY06. BDMN acquired 75% stake of Adira Finance in
2004, the country's second-largest motor vehicle financing
company, through which the Bank gained access to the
growing and lucrative motorcycle financing business. As a
result, the Bank's consumer loan portfolio is dominated by
auto loans, in which motorcycle loans made up 54% and car
loans 24%, whereas housing, credit card, and other
consumer loans made up the remaining 22%. Although motor
vehicle sales weakened last year, the economy has started
to improve, and thus borrowers' capacity to repay their
existing loans and motor vehicle sales going forward are
expected to quickly recover. The acquisition of American
Express and the consolidation of Adira Quantum should also
give opportunities for BDMN to further grow its consumer
loans going forward.
* Robust financial profile. With strong capitalization,
manageable asset quality, and favorable interest margin,
the Bank's financial profile is robust. Capitalization as
measured by equity to total asset ratio stood relatively
strong at 11.8% as of FY06, while Capital Adequacy Ratio
remained strong at 22.4%. Asset quality measured by non-
performing loan ratio also continued to decline to 3.5%
and 3.3% respectively as of 3Q06 and FY06 after peaking up
to 3.6% in 1H06. With loan loss provision amounting to
IDR1.4 trillion and coverage ratio of 104.0%, the net NPL
remained zero. On the profitability side, more than fifty
percent of the Bank's loans are made up by high-yield
assets, making net interest revenue grow substantially.
BDMN booked IDR5.6 trillion net interest revenue as of
FY06, up 22.6% from IDR4.6 trillion a year earlier.
Accordingly, the Bank's net interest margin ratio improved
to 8.1% from 7.9% over the period. Meantime, cost to
income ratio remained stable at 49.7% compared to 49.6% a
year earlier on the back of growth in staffs yet
compensated by higher operating income. Although reported
net income was down to IDR1.3 tn (FY06) from IDR2.0 tn ,
the Bank's reported pre-provision profit has improved to
IDR3.6 tn from IDR3.1 tn over the period. Therefore, the
lower reported net income was mainly due to credit costs,
particularly on consumer and micro lending, which have an
automatic write-off at 180 days overdue. Overall, with a
focus on high-yield lending and consistent strong risk
management implementation, BDMN should be able to maintain
such a robust financial profile going forward.
Those factors are slightly constrained by:
* Unfavorable third party deposit structure. Seventy-four
percent of the Bank's customer deposit structure as of
December 2006 was constituted by time deposit. As a
result, the Bank's cost of fund is relatively higher as
compared to its peers' average. Nevertheless, even with
such unfavorable funding composition, BDMN still has
strong profitability arising from its lending on high-
yield segment.
* Increased competition. BDMN's ability to smoothly run its
micro-lending business will encourage many others to
replicate the model although it will take times for them
to catch up. The challenge for BDMN will become more
visible if the competitors with low cost of funds enter
the segment and compete by offering lower lending rates.
However, given the market potential and insensitive
nature of the consumers in targeted market to interest
rates, the tight competition is still seen distant.
Outlook
A'stable' outlook is assigned to the above ratings. BDMN is
expected to gain benefits from the current downward trend of
interest rates in which the Bank's cost of fund will be lower,
while big part of its loans are fixed rates, particularly
consumer loans with the borrowers that are less sensitive to
interest rate change. Less pressure from credit cost is also
expected, as the economy has started to recover.
About the Bank
Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking. Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services. The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers. DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income. Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb. 6, 2007 that Moody's Investors Service revised the outlook
for PT Bank Danamon Indonesia's long-term credit ratings to
positive from stable. The short-term deposit rating continues
to carry a stable outlook while the BFSR remains on review for
possible upgrade.
The bank's detailed ratings are:
-- subordinated debt of Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of D-.
The TCR-AP reported on Feb. 1, 2007, that Fitch Ratings has
affirmed all the ratings of PT Bank Danamon Indonesia Tbk as
follows:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA-(idn)' (AA minus(idn))
* Individual 'C/D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
BANK INDONESIA: May Use Overnight Lending Rate as Benchmark
-----------------------------------------------------------
Bank Sentral Republik Indonesia plans to overhaul its monetary
policy instrument of Bank Indonesia Certificates (SBI), which
has been criticized for siphoning off idle funds from the
banking sector that could have been channeled the real sector as
loans, The Jakarta Post reports.
The central bank is ready to replace its SBIs with State
Treasury Certificates (SPN), Antara News cites the bank's deputy
governor, Aslim Tadjudin, as saying.
According to Mr. Tadjudin, the withdrawal of SBIs would not be
implemented immediately as Indonesia only had two monetary
control instruments -- namely SBI and minimum reserve
requirements -- to regulate liquidity. He hopes that SPNs will
begin to be issued in the first quarter of this year.
The Jakarta Post says that Bank Indonesia is considering
deepening its overnight lending market as an alternative market
instrument, as well as gradually replacing its one- and three-
month bills with the government short-term treasury bills
planned to be issued this year.
The overnight lending rate is the interest rate banks use to
borrow and lend one-day funds among each other, the Jakarta Post
explains. The central bank can use it as a monetary policy
instrument to influence market liquidity, the news agency
suggests.
BI deputy governor Hartadi A. Sarwono acknowledged difficulties
in developing the local overnight lending market and using its
rate as a benchmark in the near future, considering the still
diverse condition of the banking sector, with smaller banks
likely to have problems in participating with larger banks in
the overnight lending market, The Post relates.
Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- was
created by a new Central Bank Act, the UU No. 23/1999 on Bank
Indonesia, enacted on May 17, 1999. The Act confers it the
status and position as an independent state institution and
freedom from interference by the Government or any other
external parties.
In its capacity as central bank, Bank Indonesia has one single
objective of achieving and maintaining stability of the rupiah
value. The stability of the value of the rupiah comprises two
aspects, one is stability of rupiah value against goods and
services and the other is the stability of the exchange rate of
the rupiah against other currencies. The first aspect is as
reflected by the rate of inflation and the second aspect is as
reflected by the development of rupiah exchange rate against
other currencies.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 29, 2007, that Fitch Ratings affirmed the ratings of Bank
Indonesia as follows:
-- Long-term foreign currency Issuer Default rating at 'BB-',
-- Short-term rating at 'B',
-- National Long-term rating at 'AA-',
-- Individual rating at 'C/D' and
-- Support rating at '4'.
Standard and Poors Rating Services gave Bank Indonesia's long
term foreign issuer credit a B+ rating and long-term local
issuer credit a BB rating, both effective on December 21, 2004.
May 12, 2003.
CA INC: Appoints Bilar Mann to Lead Business Unit
-------------------------------------------------
CA Inc. revealed the appointment of Bilhar Mann as senior vice
president and general manager of CA's Security Management
business unit.
Mann is responsible for continuing to build out CA's portfolio
of world-class security management solutions and ensuring they
are integrated with CA's other Enterprise IT Management
solutions. Specific focus areas are identity and access
management, threat management and security information
management.
Mann has 15 years of experience in security management. He
joined CA in 2003 to advance its security management strategy
and was instrumental in CA's 2004 acquisition of Netegrity, Inc.
a leading provider of IAM software. Later, he was named senior
vice president of product development for CA's SIM and threat
management product families.
"The security industry is facing new opportunities and
challenges, given the dramatic growth in scale and complexity of
the threats to IT infrastructures," said Russ Artzt, executive
vice president of products at CA. "Bill's extensive experience
in enterprise security and product management make him the ideal
executive to lead CA's security business at this critical
juncture."
Prior to CA, Mann was director of product management at Volera,
a majority-owned subsidiary of Novell. As director of business
development at Novell's Net Content business unit, he defined a
co-hosted content distribution service and established strategic
partnerships with key data center hosting companies. Mann
joined Novell upon its acquisition of JustOn, Inc., an
application service provider startup that he co-founded.
Earlier, as director of product management for email and web
security firm Worldtalk, Mann launched one of the first
integrated web security products for anti-spam, anti-virus,
malicious code and content inspection.
Before moving to the United States in 1996, Mann ran a London-
based IT consulting firm where he held security-related
consulting and engineering positions for major European clients.
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.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb.
07, 2007, that Moody's Investors Service comments that it is
maintaining the negative outlook for CA Inc. following the
company's fiscal third quarter 2007 earnings reported yesterday
evening.
TCR-AP noted that "CA's fiscal third quarter results provide
evidence of its bookings and billings growth, reversing previous
negative trends" commented John Moore, VP/Senior Analyst.
"Moody's is monitoring CA's negative rating outlook pending
further evidence of organic business growth" Moore added.
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.
MARSH & MCLENNAN: Reports 4th Quarter and Year-end 2006 Results
---------------------------------------------------------------
Marsh & McLennan Companies, Inc. reported financial results for
the fourth quarter and year ended December 31, 2006.
Consolidated revenues in the fourth quarter were US$3.1 billion,
an increase of 9% from 2005. Consolidated net income was US$226
million, an increase of over 500% from the fourth quarter of
2005, and earnings per share grew to US$.40 from US$.06.
Earnings per share from continuing operations rose to US$.39 in
the fourth quarter from US$.03 last year.
Full-year consolidated revenues were US$11.9 billion, an
increase of 3% from US$11.6 billion in 2005. Consolidated net
income was US$990 million, or US$1.76 per share, compared with
US$404 million, or US$.74 per share, in 2005. Results from
discontinued operations, net of tax, were US$172 million, or
US$.31 per share, resulting primarily from MMC's sale of its
investment in Sedgwick Claims Management in early 2006. Results
from discontinued operations in 2005 were US$37 million, or
US$.07 per share. Income from continuing operations was US$818
million, or US$1.45 per share, compared with US$367 million, or
US$.67 per share, in 2005. Stock option expense in 2006 was
US$116 million. Stock option expense in 2005 was US$64 million,
and related only to the last two quarters of 2005 since MMC
adopted SFAS No. 123, "Share-Based Payment," on July 1, 2005.
A number of noteworthy items affected financial results,
including restructuring costs and credits; legal and regulatory
costs primarily related to market service agreements; and other
items indicated in the attached supplemental information. In
the fourth quarter of 2006, noteworthy items were a credit of
US$5 million, including the realized gain of US$74 million on
the sale of five floors in MMC's corporate headquarters, while
noteworthy items in 2005 reduced earnings per share from
continuing operations by US$.18. For the full year, noteworthy
items reduced earnings per share by US$.19 in 2006, compared
with US$.76 in 2005.
"MMC had another good quarter, reporting its strongest revenue
growth in three years," said Michael G. Cherkasky, president and
chief executive officer of MMC. "The progress we saw at Marsh
in the first nine months of 2006 continued in the fourth
quarter, including improved revenue trends and increased
profitability. Revenues from new business at Marsh were the
highest they have been since the first half of 2004. In light
of this, we are encouraged about Marsh's prospects in 2007.
Throughout the year, Guy Carpenter rose to the challenges of a
complex reinsurance marketplace, producing increased revenues
driven by double-digit growth in new business. Kroll's
increased revenues in the quarter were driven by solid results
in its technology business. In the quarter, Mercer Human
Resource Consulting improved margins and produced strong revenue
growth, and Mercer Specialty Consulting continued its
exceptional performance, reporting double-digit revenue growth.
Putnam's net flows were neutral in the quarter, achieving a
long-standing goal.
"The announced sale of Putnam will enhance our financial
flexibility and allow us to concentrate on our market-leading
risk and human capital businesses. We have reignited MMC's
engines of growth, and we look forward to the future with
confidence," Mr. Cherkasky concluded.
Risk and Insurance Services
Risk and insurance services revenues in the fourth quarter
increased 4% to US$1.4 billion, or 5% on an underlying basis.
Operating income more than doubled to $127 million, compared
with US$62 million in the fourth quarter of 2005, reflecting
gains from private equity investments, operating efficiencies,
cost discipline, and restructuring efforts.
Marsh's underlying revenues grew 3%, excluding the impact of
market service revenues, the second consecutive quarter of
revenue growth by this measure and the largest in over two
years. Strong new business growth across all geographies drove
Marsh's performance. For the full year, new business increased
a robust 10%, with accelerating growth as the year progressed,
including 9% growth in the Americas. As reported, Marsh's
revenues declined 1% to US$1.1 billion in the fourth quarter.
Guy Carpenter's revenues increased 9% in the fourth quarter to
US$171 million, or 8% on an underlying basis, driven by 13%
growth in new business. These results were achieved despite a
reinsurance marketplace where increases in U.S. property
catastrophe rates were mitigated by reduced reinsurance capacity
and higher client risk retentions, and where rates in most other
lines of business were stable to down globally.
Risk Capital Holdings generated revenues of US$74 million in the
fourth quarter, compared with US$27 million in the same period
of 2005. This increase was entirely due to mark-to-market gains
in private equity investments. Full-year revenues were US$193
million, compared with US$189 million in 2005.
Risk Consulting and Technology
Kroll's revenues increased 12% in the fourth quarter to US$241
million, or 4% on an underlying basis. Kroll's technology
enabled solutions business produced 17% growth in revenues,
including double-digit growth in background screening and
technology services. Kroll's profitability in the quarter
increased significantly, due to revenue growth, expense control,
and the early termination of a licensing agreement. Results
reflect the sale of Kroll's international security business,
which has been included in MMC's discontinued operations.
Consulting
Revenues for consulting increased 15% to US$1.1 billion in the
fourth quarter, or 10% on an underlying basis. Operating income
grew 24%. Full-year revenues increased 11% to US$4.2 billion, or
9% on an underlying basis.
Mercer Human Resource Consulting increased revenues 12% to
US$769 million in the fourth quarter, or 8% on an underlying
basis. This strong growth was driven by the retirement and
investment business and the talent business. Full-year revenues
increased 8% to US$3 billion, or 7% on an underlying basis.
Mercer Specialty Consulting's revenues grew 23% to US$341
million in the fourth quarter, or 15% on an underlying basis.
Full-year revenues increased 19% to US$1.2 billion, or 16% on an
underlying basis. Each of the Mercer Specialty companies
contributed to this exceptional performance, led by Mercer
Oliver Wyman, which increased underlying revenues 22%.
Investment Management
Putnam's revenues of US$359 million were flat, compared with the
fourth quarter last year. Ending assets on December 31, 2006
were US$192 billion, comprising US$124 billion in mutual fund
assets and US$68 billion in institutional assets. Average
assets under management were US$189 billion, compared with
US$188 billion in the fourth quarter of 2005. Operating income
increased on a year-over-year basis, due to lower expenses.
With the announced sale of Putnam on February 1, Putnam will be
classified as a discontinued operation in 2007.
Other Items
MMC's net debt position, which is total debt less cash and cash
equivalents, was US$2.9 billion at year-end 2006, a decrease of
US$520 million in the fourth quarter and US$640 million in the
year, driven by strong operating cash flows. The company
increased its quarterly dividend by 12%, from US$.17 to US$.19,
payable in the first quarter of 2007.
During the fourth quarter, MMC made a discretionary contribution
of its investment position in Trident III of US$182 million to
its U.K. defined benefits plans.
Conference Call]
A conference call to discuss fourth quarter and year-end 2006
results will be held today at 10:00 a.m. Eastern Time. To
participate in the teleconference, please dial 866 564 7444 or
719 234 0008. The access code for both numbers is 2424845. The
audio webcast may be accessed at http://www.mmc.com. A replay
of the webcast will be available approximately two hours after
the event at the same Web address.
MMC is a global professional services firm with annual revenues
of approximately US$12 billion. It is the parent company of
Marsh, the world's leading risk and insurance services firm; Guy
Carpenter, the world's leading risk and reinsurance specialist;
Kroll, the world's leading risk consulting company; Mercer, a
major global provider of human resource and specialty consulting
services; and Putnam Investments, one of the largest investment
management companies in the United States. Approximately 55,000
employees provide analysis, advice, and transactional
capabilities to clients in over 100 countries. Its stock is
listed on the New York, Chicago, and London stock exchanges.
MMC's Web site address is http://www.mmc.com
Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a
global professional services firm with annual revenues of
approximately US$12 billion. It is the parent company of Marsh,
the world's leading risk and insurance services firm; Guy
Carpenter, the world's leading risk and reinsurance specialist;
Kroll, the world's leading risk consulting company; Mercer, a
major global provider of human resource and specialty consulting
services; and Putnam Investments, one of the largest investment
management companies in the United States. Approximately 55,000
employees provide analysis, advice, and transactional
capabilities to clients in over 100 countries, including
Indonesia, Australia, China, India, Japan, Korea and Singapore.
* * *
As reported in the Troubled Company Reporter on Aug. 25, 2006,
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+' preferred
stock ratings to Marsh & McLennan's unlimited universal shelf.
Standard & Poor's also affirmed its 'BBB' counterparty credit
rating on MMC. The outlook in negative.
As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Moody's Investors Service assigned provisional
ratings to Marsh & McLennan's new universal shelf registration,
including a (P)Ba1 rating on the Company's provisional preferred
stock. The rating outlook for MMC remains negative.
PERTAMINA: Reconsiders Plans to Build Refineries as Costs Surge
---------------------------------------------------------------
PT Pertamina (Persero) is reconsidering plans to build new
refineries after construction costs surged, Bloomberg News
reports, citing Pertamina President Director Ari Soemarno.
According to the report, the company will just focus on
restoring its existing refineries refineries to make products
with higher profit margins.
Mr. Soemarno told Bloomberg of the high equipment prices -- last
year's cost estimates rose by more than 50%, even doubled.
There's no competition since everyone offers the same price, he
added.
The country imports a third of its oil-product requirements as
its daily refining capacity of about 1 million barrels isn't
enough to meet demand and Pertamina wants to boost production of
gasoline and petrochemicals and cut output of fuel oil,
consumption of which is falling in Indonesia, the report
relates.
Bloomberg says Pertamina plans to build a 60,000 barrel-a-day
cracker, at its Balikpapan refinery and plans a similar
conversion unit of 50,000 barrels a day capacity at the Cilacap
refinery.
Pertamina previously said that it plans to build a 250,000
barrel-a-day refinery in Selayar Island with Kuwait Petroleum
Corp. and another processing plant of a similar capacity in
Tuban in with China Petroleum & Chemical Corp, Bloomberg
recounts.
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: Targets 2 Million Subscribers by 2010
-------------------------------------------------------
PT Telekomunikasi Indonesia Tbk targets 2 million users of its
high-speed Internet service by 2010, compared with its 108,000
users currently, Bloomberg News says, citing a Bisnis Indonesia
report.
Bisnis Indonesia, citing Pertamina Director Guntur Siregar, said
that the Telkom plans to attract more subscribers to its high-
speed Internet service by making the tariff rates more
affordable.
According to the company's Web site, Telkom's Internet and data
business accounted for 17% of its consolidated revenue as of
September 30, Bloomberg notes.
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
January 31, 2007, Fitch Ratings has revised the Outlook on
Telekomunikasi Indonesia Long-term foreign and local currency
Issuer Default ratings to Positive from Stable and affirmed the
ratings at 'BB-'.
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+.
=========
J A P A N
=========
ALL NIPPON AIRWAYS: To Reduce Fuel Hedging Levels By 20%
--------------------------------------------------------
All Nippon Airways Co. will reduce the amount of fuel it hedges
using forward contracts by about 20% in the next fiscal year as
spot fuel prices remain lower, Bloomberg News reports.
Bloomberg, citing company spokesman Yoshifumi Miyake, says that
the airline will cut the amount of fuel it hedges using the
contracts to 80% from almost 100% in the fiscal year starting
April 1, 2007.
The report explains that forward contracts allow buyers to lock
in a price at a future date and avoid cost uncertainty.
According to Bloomberg, the price of jet kerosene has fallen 25%
after touching a record SG$93 in Singapore on Aug. 8 2006, while
it traded at SG$69.50 in Singapore on Feb. 16, 2007.
About All Nippon Airways
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The airlines flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 16, 2007, Fitch Ratings advised All Nippon Airways Co.
Ltd., along with Japan Airlines Corporation, that it may need to
further increase fares and yields and adopt additional cost
reduction measures in order to improve, or at least maintain,
their current financial profiles.
The TCR-AP reported on June 13, 2006, that Fitch said the credit
quality gap between Japan's top two airlines continues to widen
with All Nippon Airways Co. Limited -- rated 'BB+'/Stable --
benefiting from market improvements, while its rival, Japan
Airlines Corporation -- rated 'BB-'/Stable -- continues to be
grounded by internal woes.
The TCR-AP also stated on May 30, 2006, that Moody's Investors
Service has upgraded to Ba1 from Ba3 the senior unsecured debt
ratings of All Nippon Airways Co., Ltd. The rating action
concludes the review initiated on March 3, 2006. The rating
outlook is stable.
On May 3, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability,
thanks to cost reductions efforts as well as a stronger
competitive position.
AMERICAN SEAFOODS: Soliciting Consents for 11-1/2% Senior Notes
---------------------------------------------------------------
Last week, ASG Consolidated LLC commenced a solicitation of
consents from holders of record of the 11-1/2% Senior Discount
Notes due 2011 issued by the company and ASG Finance Inc.
The purpose of the consent solicitation is to obtain approval of
amendments to the reporting and certification covenants under
the indenture governing the Notes. The proposed amendments
would delete the requirement to file periodic and current
reports with the Securities and Exchange Commission and instead
require information to be provided to the trustee and holders of
the Notes, and made available via the Internet. The proposed
amendments would substitute a reporting obligation similar to,
but more extensive than, that required under the senior credit
facility of American Seafoods Group LLC.
The company would remain obligated to provide annual and
quarterly financial information and current information of the
type required to be reported on Form 8-K. The company would
also agree to provide quarterly certifications as to the absence
of any pending or existing defaults and to conduct quarterly and
annual conference calls to discuss earnings results.
The record date for the Consent Solicitation is 5:00 p.m., New
York City time, on Feb. 13, 2007. The Consent Solicitation will
expire at 5:00 p.m., New York City time, on Friday, Feb. 23,
2007, unless extended. The company will pay a fee of US$5.00 in
cash per US$1,000 principal amount at maturity of Notes for
which a consent is validly delivered and not revoked. The
company's obligation to accept consents and pay the consent fee
is conditioned on the receipt prior to the Consent Deadline of
consents from holders of at least a majority in aggregate
principal amount at maturity of the outstanding Notes and the
necessary consents from lenders under American Seafoods Group
LLC's senior credit facility to permit the Company to enter into
the proposed amendments.
Banc of America Securities LLC is serving as exclusive
solicitation agent in connection with the Consent Solicitation.
Information concerning the Consent Solicitation may be obtained
by contacting High Yield Special Products, at (704) 388-9217
(collect) or (888) 292-0070 (U.S. toll-free).
Global Bondholder Services Corporation is serving as information
agent and tabulation agent in connection with the Consent
Solicitation. Requests for assistance in delivering consents or
for additional copies of the Consent Solicitation Statement
should be directed to GBS at (212) 430-3774 or (866) 470-3800
(U.S. toll-free).
About American Seafoods
American Seafoods Group LLC -- http://www.americanseafoods.com/
-- harvests and processes a variety of fish species aboard its
catcher-processor vessels, its freezer-longliner vessels, and at
its land-based processing facilities. The company markets its
products to a diverse group of customers in North America, Asia,
and Europe. In the U.S., American Seafoods is the largest
harvester and at-sea processor of pollock and hake and the
largest processor of catfish. The company also harvests and
processes cod, scallops, and yellowfin sole. The company
maintains an international marketing network through its
U.S., Japan, and European sales offices.
The Troubled Company Reporter - Asia Pacific reported on
Sept. 29, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. Consumer
Products, Beverage, Toy, Natural Product Processors, Packaged
Food Processors, and Agricultural Cooperative sectors, the
rating agency confirmed its B1 Corporate Family Rating for
American Seafoods Group LLC.
JAPAN AIRLINES: Keeping Matsumoto-Nagano-Sapporo Route on Demand
----------------------------------------------------------------
Japan Airlines Corp. will retain its flight linking Matsumoto,
Nagano Prefecture, and Sapporo, The Japan Times says, citing a
statement by the Nagano Prefectural Government.
The report relates that the decision will mark the first change
in JAL's plan to downsize domestic flight operations for the
year ending March 2008.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 19, 2007, JAL was planning to cancel the Matsumoto-Nagano
Prefecture-Sapporo route as part of its consolidation plans.
Specifically, JAL planned to realign 10 domestic routes, which
also included seven flights per week between Nagoya and
Kitakyushu, between Nagoya and Nagasaki, between Kobe and
Sendai, between Kagoshima and Naha, and four flights per week
between Fukuoka and Aomori.
According to the TCR-AP report, the possibility of retaining the
Matsumoto-Nagano Prefecture-Sapporo route was discussed during a
meeting between Nagano Governor Jin Murai and JAL Senior
Managing Director Kiyoshi Kishida after Nagano residents have
collected and submitted to JAL more than 150,000 signatures to
support the retention of the Matsumoto-Sapporo route.
The Japan Times notes that JAL's flight curtailment plan had
been touted as the centerpiece of its program to revive its
ailing business. However, the report cites company sources as
saying that the airline will argue that the Matsumoto-Sapporo
route will be retained as an exceptional measure considering its
higher load factor than that for other routes, and that the
airline has received a petition bearing signatures pleading that
the service be kept.
JAL has said that retaining the route will not affect its
earnings projections.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP reported on October 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic. JAL International will be the
surviving company. The rating outlook is stable.
Meanwhile, Fitch Ratings Tokyo analyst Satoru Aoyama said that
the company's debt obligations and expenses for new aircraft
have placed it in an unfavorable financial position. Fitch
assigned a BB- rating on the Company, which is three notches
lower than investment grade.
MACDERMID INC: Moody's Junks Rating on US$215 Mil. Senior Notes
---------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
to MacDermid, Incorporated and assigned ratings and loss given
default assessments to the company's proposed bank and public
debt financings.
Proceeds from the new debt offerings combined with private
equity investments from funds managed by Court Square Capital
Partners and Weston Presidio, along with an investment from
MacDermid's CEO, Daniel Leever, and management will be used to
purchase all of MacDermid's outstanding stock in a transaction
valued at approximately US$1.3 billion. These are first time
ratings for MacDermid as a privately held corporation.
The rating outlook is stable.
These are the rating actions:
Ratings assigned:
* MacDermid, Incorporated
-- Corporate family rating at B2
-- Probability of default rating at B2
-- US$50 million Guaranteed Senior secured revolving
credit facility due 2013, B1, LGD3, 33%
-- US$510 million Guaranteed Senior secured term loan due
2014, B1, LGD3, 33%
-- US$250 million Guaranteed Senior unsecured notes due
2014-2015, B2, LGD4, 53%
-- US$215 million Guaranteed Senior subordinated notes due
2017, Caa1, LGD6, 92%
MacDermid's B2 corporate family rating reflects the company's
high leverage, elevated interest expense and limited growth
opportunities in certain businesses. The company has grown top
line sales over the past three years, however earnings have not
kept pace. While the overall EBITDA for the company has been
relatively stable over the past three years, certain of the
company's businesses have grown sales and profits, and other
businesses have turned in lackluster returns.
Moody's expect that MacDermid should be better positioned to
grow after the introduction of certain new products and the
integration of the 2005 Autotype acquisition. The notes will be
privately placed and the company does not plan to register the
notes at a later time. As a result, the company does not
anticipate that it will file public financial statements, but
will provide more abbreviated disclosure to debtholders.
The ratings are supported by MacDermid's relatively stable
EBITDA margins that have remained positive despite some adverse
market conditions over the past seven years, geographic,
operation and product diversity, strong market positions in
certain niche markets, modest capital expenditure requirements
and limited exposure to volatile raw materials costs.
The stable outlook reflects Moody's expectation that MacDermid
will be able to grow its sales and apply positive free cash flow
to debt reduction. The outlook also assumes that MacDermid will
smoothly transition to a private ownership structure and be
capable of shouldering the significant new debt burden. Before
an upgrade could be considered, Moody's would expect to see
MacDermid demonstrate the ability to generate EBITDA greater
than US$160 million per year and maintain a Debt / EBITDA ratio
less than 7.0 times on a sustained basis as well as generate
meaningful free cash flow. Should the company not be successful
in improving profitability and generating meaningful free cash
flow to be applied towards debt reduction, the ratings could
come under negative pressure.
About MacDermid Inc.
MacDermid Inc. -- http://www.macdermid.com/-- is manufacturer
of a broad line of chemicals and related equipment for a range
of applications, including metal and plastic finishing,
electronics, graphic arts and printing, and offshore drilling.
The company maintains its headquarters in Denver, Colorado, but
operates facilities worldwide, including China, Germany, Italy,
and Japan. Revenues for the twelve months ended June 30, 2006,
were US$797 million.
NORTHWEST AIRLINES: S&P Says Disclosure Won't Affect Ratings
------------------------------------------------------------
Northwest Airlines Corp. and its Northwest Airlines Inc.
subsidiary, both rated 'D', filed a disclosure statement, adding
information and details to its previously filed plan of
reorganization.
Standard & Poor's Ratings Services said the development has no
immediate impact on the companies' corporate credit ratings,
which are based on their bankruptcy status.
Upon emergence from bankruptcy, Standard & Poor's would assign
new corporate credit ratings. Ratings on certain equipment
trust certificates remain on CreditWatch, excepting 'AAA' rated,
bond-insured certificates, which are not on CreditWatch.
Upon emergence from bankruptcy, Standard & Poor's would resolve
the CreditWatch review on affected securities.
The 'BBB-' bank loan rating, also not on CreditWatch, on
Northwest Airlines Inc.'s debtor-in-possession credit facility
is likewise unaffected. That facility is expected to convert to
exit financing, at which time Standard & Poor's would re-rate
it. The resulting bank loan rating is likely to be
substantially lower than the current rating on the debtor-in-
possession facility, as it would be notched up from Northwest's
new corporate credit rating based on recovery prospects in a
default scenario.
The disclosure statement presents a business plan that foresees
further revenue and earnings improvements through 2010.
Northwest forecasts somewhat higher pretax margins than those
projected by Delta Air Lines Inc. in its disclosure statement,
supported in part by its better current performance. However,
Delta forecasts somewhat greater improvements in its revenue
generation.
"Standard & Poor's considers that the assumptions in Northwest's
plan, like those in Delta's plan, are broadly plausible in the
near term, but more suspect in later years, when an industry
downturn may well occur," said Standard & Poor's credit analyst
Philip Baggaley.
Northwest's proposed reorganization plan would lower debt by
US$4.3 billion, an approximate one-third decline. The company
did not terminate pension plans, in contrast to Delta's
termination of its pilot pension plan, which means that its
total obligations will continue to include funding shortfalls in
those plans. Overall, Delta's plan achieves greater percentage
deductions in financial obligations.
Northwest anticipates that the bankruptcy court will hold a
hearing on the disclosure statement on March 26, 2007, after
which and upon court approval, the reorganization plan would be
submitted to creditors to vote on confirmation. The disclosure
statement includes the result of an equity valuation by outside
advisors, which resulted in a range of expected values around
US$7 billion. This compares to Delta's valuation in a range
that averaged US$10.7 billion. With total unsecured claims in
the range of $8.75 billion to US$9.5 billion, recovery for
Northwest's unsecured creditors is expected to be substantial.
The reorganization plan provides for a fully underwritten common
stock rights offering of US$750 million.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks. Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents. The company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases. When the Debtors filed for
protection from their creditors, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.
SADIA SA: Moody's Affirms Ba2 Currency Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service affirmed Sadia's Ba2 global local
currency corporate family rating, and changed the outlook to
positive from stable.
The change in outlook was prompted by the continued positive
fundamentals for Brazilian poultry producers and Sadia's
continued progress in its strategy to move its product portfolio
into higher value-added products, which should lead to continued
margin expansion.
"Sadia's Ba2 global local currency corporate family rating
continues to reflect Sadia's strong brand portfolio and solid
market position in most of the diverse product categories in
which it participates, its highly competitive cost-structure,
its conservative financial policies, and worldwide geographic
sales diversity," says Moody's analyst Soummo Mukherjee.
"These positive factors balance against its exposure to earnings
volatility due to commodity price movements, the risk of export
markets being closed to its products, and the fact that free
cash flow will be negative for the next few years because of its
high expansion capital expenditures program."
Sadia remains exposed to the event risk of there being an
outbreak of the high pathogenic avian influenza virus in Brazil.
While the largest concentration of the disease is in certain
Asian countries, the disease is spreading in Europe as well.
Should an outbreak occur in Brazil, some trading partners could
prohibit the import of Brazilian poultry, with negative
repercussions for Brazilian poultry processors such as Sadia.
While an AI outbreak in Brazil could have a significant negative
impact on Sadia, the company has made the investments this past
year that would enable it to produce 100% of its poultry exports
in cooked form (the high-pathogenic avian influenza virus is
killed when cooked at temperatures above 70% Celsius) should the
bird-flu virus hit Brazil. This could help replace a portion of
the fresh meat exports that could be lost under such
circumstances. Additionally, Moody's notes that Sadia's
strategy to maintain a 50/50 mix of revenues derived from
exports and the domestic market in order to reduce the
dependency on the export revenues.
Sadia's ongoing investments in plant modernizations and
expansions, improved internal cost-control and technological
processes and new plants are expected to continue to lead to
productivity gains translating into a reduced cost base, despite
the expected increase in grain prices. In terms of top-line
growth, Sadia is expected to benefit from its strategy to
improve its mix of higher value-added products, a continued
recovery of poultry demand leading to higher volumes and prices,
growth of the beef segment, and Brazil's overall continued
market share gain in the global poultry export markets due to
its competitive cost position.
Sadia's Ba2 global local currency rating could come under upward
pressure if the company continues to deliver on its strategy to
transition its product portfolio into higher value-added
products leading to an EBITDA margin of above 14%, while
maintaining three-year average total debt / EBITDA below three
times and three-year average EBITA to Interest above 3.5 times
on a sustainable basis (all incorporating Moody's standard
analytic adjustments).
Conversely, the outlook could stabilize if the company's
operating performance does not improve in 2007 compared to 2006
leading to EBITDA margin of less than 10% in 2007 or LTM Debt /
EBITDA to increase above four times.
About Sadia S.A
Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork. The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, China, Japan, and Italy, among
others.
XM SATELLITE: Inks US$13-Bil. Merger Pact With SIRIUS Satellite
---------------------------------------------------------------
XM Satellite Radio Inc. and SIRIUS Satellite Radio Inc. have
entered into a definitive agreement, under which the companies
will be combined in a tax-free, all-stock merger of equals with
a combined enterprise value of approximately US$13 billion,
which includes net debt of approximately US$1.6 billion.
Under the terms of the agreement, XM shareholders will receive a
fixed exchange ratio of 4.6 shares of SIRIUS common stock for
each share of XM they own. XM and SIRIUS shareholders will each
own approximately 50% of the combined company.
Mel Karmazin, currently Chief Executive Officer of SIRIUS, will
become Chief Executive Officer of the combined company and Gary
Parsons, currently Chairman of XM, will become Chairman of the
combined company.
The new company's board of directors will consist of 12
directors, including Messrs. Karmazin and Parsons, four
independent members designated by each company, as well as one
representative from each of General Motors and American Honda.
Hugh Panero, the Chief Executive Officer of XM, will continue in
his current role until the anticipated close of the merger.
The combined company will benefit from a highly experienced
management team from both companies with extensive industry
knowledge in radio, media, consumer electronics, original
equipment manufacturer engineering and technology. Further
management appointments will be announced before closing.
The companies will continue to operate independently until the
transaction is completed and will work together to determine the
combined company's corporate name and headquarters location
before closing.
The combination creates a nationwide audio entertainment
provider with combined 2006 revenues of approximately
US$1.5 billion based on analysts' consensus estimates.
Today, the companies have approximately 14 million combined
subscribers. Together, SIRIUS and XM will create a stronger
platform for future innovation within the audio entertainment
industry and will provide significant benefits to all
constituencies, including:
* Greater Programming and Content Choices
The combined company is committed to consumer choice,
including offering consumers the ability to pick and choose
the channels and content they want on a more a la carte
basis. The combined company will also provide consumers
with a broader selection of content, including a wide range
of commercial-free music channels, exclusive and non-
exclusive sports coverage, news, talk, and entertainment
programming. Together, XM and SIRIUS will be able to
improve on products such as real-time traffic and rear-seat
video and introduce new ones such as advanced data services
including enhanced traffic, weather and infotainment
offerings.
* Accelerated Technological Innovation
The merger will enable the combined company to develop and
introduce a wider range of lower cost, easy-to-use, and
multi-functional devices through efficiencies in chip set
and radio design and procurement. Such innovation is
essential to remaining competitive in the consumer
electronics-driven world of audio entertainment.
* Benefits to OEM and Retail Partners
The combined company will offer automakers and retailers
the opportunity to provide a broader content offering to
their customers. Consumer electronics retailers, including
Best Buy, Circuit City, RadioShack, Wal-Mart and others,
will benefit from enhanced product offerings that should
allow satellite radio to compete more effectively.
* Enhanced Financial Performance
This transaction will enhance the long-term financial
Success of satellite radio by allowing the combined company
to better manage its costs through sales and marketing and
subscriber acquisition efficiencies, satellite fleet
synergies, combined R&D and other benefits from economies
of scale. Wall Street equity analysts have published
estimates of the present value of cost synergies ranging
from US$3 billion to US$7 billion.
* More Competitive Audio Entertainment Provider
The combination of an enhanced programming lineup with
improved technology, distribution and financials will
better position satellite radio to compete for consumers'
attention and entertainment dollars against a host of
products and services in the highly competitive and rapidly
evolving audio entertainment marketplace. In addition to
existing competition from free "over-the-air" AM and FM
radio as well as iPods and mobile phone streaming,
satellite radio will face new challenges from the rapid
growth of HD Radio, Internet radio and next generation
wireless technologies.
"We are excited for the many opportunities that an XM and SIRIUS
combination will provide consumers," XM Satellite Radio Chairman
Gary Parsons and XM Satellite Radio Chief Executive Officer Hugh
Panero said in a joint statement.
"The combined company will be better positioned to compete
effectively with the continually expanding array of
entertainment alternatives that consumers have embraced since
the Federal Communications Commission first granted our
satellite radio licenses a decade ago."
SIRIUS Satellite Radio Chief Executive Officer Mel Karmazin
said, "This combination is the next logical step in the
evolution of audio entertainment."
"Together, our best-in-class management team and programming
content will create unprecedented choice for consumers, while
creating long-term value for shareholders of both companies.
"The combined company will be positioned to capitalize on SIRIUS
and XM's complementary distribution and licensing agreements to
enhance availability of satellite radios, offer expanded content
to subscribers, drive increased advertising revenue and reduce
expenses.
"Each of our companies has a strong commitment to providing
listeners the broadest range of music, news, sports and
entertainment and the best customer service possible.
"We look forward to sharing the benefits of the exciting new
growth opportunities this combination will provide with all of
our stakeholders."
The transaction is subject to approval by both companies'
shareholders, the satisfaction of customary closing conditions
and regulatory review and approvals, including antitrust
agencies and the FCC. Pending regulatory approval, the
companies expect the transaction to be completed by the end of
2007.
Advisors
SIRIUS Satellite's financial advisor on the transaction is
Morgan Stanley. Simpson Thacher & Bartlett LLP and Wiley Rein
LLP are acting as legal counsel.
XM's financial advisor on the transaction is J.P. Morgan
Securities Inc. Skadden Arps, Slate, Meagher & Flom LLP; Jones
Day; and Latham & Watkins LLP are acting as legal counsel.
About SIRIUS
New York-based SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) --
http://www.sirius.com/-- delivers more than 125 channels of the
best programming in all of radio. SIRIUS is the original and
only home of 100% commercial free music channels in satellite
radio, offering 69 music channels available nationwide. SIRIUS
also delivers 65 channels of sports, news, talk, entertainment,
traffic, weather, and data. SIRIUS is the Official Satellite
Radio Partner and broadcasts live play-by-play games of the NFL,
NBA, and NHL and. All SIRIUS programming is available for a
monthly subscription fee of only US$12.95.
SIRIUS products for the car, truck, home, RV and boat are
available in more than 25,000 retail locations, including Best
Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's
Club, RadioShack and at http://shop.sirius.com/
SIRIUS radios are offered in vehicles from Audi, BMW, Chrysler,
Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus,
Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Rolls
Royce, Scion, Toyota, Porsche, Volkswagen and Volvo. Hertz also
offers SIRIUS in its rental cars at major locations around the
country.
About XM Satellite
Headquartered in Washington, D.C., XM Satellite Radio Inc.
(Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned
subsidiary of XM Satellite Radio Holdings Inc. XM has been
publicly traded on the NASDAQ exchange since Oct. 5, 1999.
XM's 2007 lineup includes more than 170 digital channels of
choice from coast to coast: commercial-free music channels,
premier sports, news, talk, comedy, children's and entertainment
programming; and the most advanced traffic and weather
information. XM has broadcast facilities in New York and
Nashville, and additional offices in Boca Raton, Fla.;
Southfield, Mich.; and Yokohama, Japan.
At Sept. 30, 2006, XM Satellite Radio Inc.'s balance sheet
showed a stockholders' deficit of US$253,183,000, compared with
a deficit of US$358,079,000, at June 30, 2006.
* * *
As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's Ratings Services assigned its 'CCC' rating to
XM Satellite Radio Inc.'s US$600 million senior unsecured notes.
At the same time, Standard & Poor's assigned its 'B-' rating and
recovery rating of '1' to XM's $250 million first-lien secured
revolving credit facility, indicating an expectation of full
recovery of principal in the event of a payment default.
XM SATELLITE: SIRIUS Canada Comments on Parent & XM's Merger
------------------------------------------------------------
SIRIUS Canada Inc. issued a statement after the announcement
that U.S.-based SIRIUS Satellite Radio Inc. and XM Satellite
Radio Inc. intend to merge.
"With the exciting news coming from SIRIUS and XM in the U.S. .
. ., SIRIUS Canada's 300,000 subscribers will continue to
receive the best news, talk, sports, entertainment and
commercial-free music programming available," SIRIUS Canada Inc.
President and Chief Executive Officer Mark Redmond said.
"SIRIUS Canada's board of directors and senior leadership team
is working closely with SIRIUS Satellite Radio in the U.S.,
CBC and Standard Radio Inc. here in Canada to ensure the
Canadian operation continues to deliver the best entertainment
available."
Canada's Satellite Radio Company
SIRIUS Canada announced on Feb. 13, 2007,that it had surpassed
300,000 paying subscribers and currently leads the satellite
radio industry in Canada with 75% market share year-to-date,
within NPD's measured channels.
More than 150 vehicle models are expected to be available in
2007 with SIRIUS Satellite Radio receivers either factory or
dealer-installed in Aston Martin, Audi, BMW, Chrysler, Dodge,
Ford, Jaguar, Jeep, Land Rover, Lexus, Lincoln, MINI, Subaru,
Toyota, Volkswagen, and Volvo vehicles.
About SIRIUS Canada
From broadcast studios in Vancouver, Toronto, Montreal and New
York, SIRIUS Canada Inc. -- http://www.siriuscanada.ca/--
delivers 110 premium channels of commercial-free music plus
sports, news, talk, and entertainment programming. With a total
of 65 commercial-free music channels -- the most in Canada --
SIRIUS is the original and only home of 100% commercial-free
music. SIRIUS offers the broadest range of Canadian content on
satellite radio with 11 English and French channels. SIRIUS
Canada is the Official Satellite Radio Partner of the CFL, NHL,
NFL, and NBA and broadcasts live play-by-play games of the CFL,
NHL, NFL, and NBA. In addition, SIRIUS Satellite Radio is home
to broadcasts of U.S. College Football, English Premier League,
and NASCAR.
SIRIUS Canada's automotive partners include Aston Martin, Audi,
BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Land Rover, Lexus,
Lincoln, MINI, Pana-Pacific, Subaru, Toyota, Volkswagen, and
Volvo.
About SIRIUS
New York-based SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) --
http://www.sirius.com/-- delivers more than 125 channels of the
best programming in all of radio. SIRIUS is the original and
only home of 100% commercial free music channels in satellite
radio, offering 69 music channels available nationwide. SIRIUS
also delivers 65 channels of sports, news, talk, entertainment,
traffic, weather, and data. SIRIUS is the Official Satellite
Radio Partner and broadcasts live play-by-play games of the NFL,
NBA, and NHL and. All SIRIUS programming is available for a
monthly subscription fee of only US$12.95.
SIRIUS products for the car, truck, home, RV and boat are
available in more than 25,000 retail locations, including Best
Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's
Club, RadioShack and at http://shop.sirius.com/
SIRIUS radios are offered in vehicles from Audi, BMW, Chrysler,
Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus,
Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Rolls
Royce, Scion, Toyota, Porsche, Volkswagen and Volvo. Hertz also
offers SIRIUS in its rental cars at major locations around the
country.
About XM Satellite
Headquartered in Washington, D.C., XM Satellite Radio Inc.
(Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned
subsidiary of XM Satellite Radio Holdings Inc. XM has been
publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's
2007 lineup includes more than 170 digital channels of choice
from coast to coast: commercial-free music channels, premier
sports, news, talk, comedy, children's and entertainment
programming; and the most advanced traffic and weather
information. XM has broadcast facilities in New York and
Nashville, and additional offices in Boca Raton, Fla.;
Southfield, Mich.; and Yokohama, Japan.
At Sept. 30, 2006, XM Satellite Radio Inc.'s balance sheet
showed a stockholders' deficit of US$253,183,000, compared with
a deficit of US$358,079,000, at June 30, 2006.
* * *
As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's Ratings Services assigned its 'CCC' rating to
XM Satellite Radio Inc.'s US$600 million senior unsecured notes.
At the same time, Standard & Poor's assigned its 'B-' rating and
recovery rating of '1' to XM's $250 million first-lien secured
revolving credit facility, indicating an expectation of full
recovery of principal in the event of a payment default.
* Bankruptcy Cases in January Rise 4%; Debt Up To JPY573.63 Bil.
----------------------------------------------------------------
Bankruptcy cases in January 2007 among Japanese companies with
debts more than JPY10 billion rose 4% year-on-year, Bloomberg
News reports, citing a study by Tokyo Shoko Research Ltd.
The report notes that in January 2007, there were 1,091
bankruptcy cases, representing a 1.62% fall from the 1,109 cases
in December 2006.
Bloomberg News says that out of the 1,091 bankruptcy cases, 285
cases involve Japanese companies that are in the construction
business, while 160 cases involve Japanese wholesale firms. The
rest of the cases are spread out among the retail, finance,
manufacturing, real estate, transportation and communication
industries, and other services.
Bloomberg notes that the total amount of debt in January 2007
fell 5.08% to JPY573.63 billion from the amount recorded in
January 2006. The January 2007 debt amount is 13.47% more than
the JPY505.52 billion in debt recorded in December 2006.
The report says that out of the total debt amount for January,
JPY257.67 billion came from the real estate industry and
JPY48.85 billion came from construction companies.
=========
K O R E A
=========
ARAMARK CORP: Earns US$87.7 Mln. in Fiscal Quarter Ended Dec. 31
----------------------------------------------------------------
Aramark Corp. earned US$87.7 million of net income on
US$3.1 billion of sales for the first quarter of fiscal 2007,
compared to US$93.1 million of net income on US$2.9 billion for
the same period last year.
Operating income was US$172.3 million for the first quarter of
fiscal 2007, a 9% increase over the prior year period.
Interest and other financing costs, net, for the first quarter
of fiscal 2007 increased approximately US$1.8 million from the
prior year period due principally to higher year-over-year
interest rates.
At Dec. 29, 2006, the company's balance sheet showed
US$5.3 billion in total assets, US$3.7 billion in total
liabilities, and US$1.6 billion in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended Dec. 31, 2006, are available
for free at http://researcharchives.com/t/s?19aa
Total debt increased US$208 million during the first quarter due
principally to the normal seasonal working capital needs and the
acquisition of a regional uniform company.
During the first quarter of fiscal 2007, the company borrowed
US$125 million under its U.S. and Canadian credit facility to
repay the company's 7.10% notes that matured on Dec. 1, 2006.
At Dec. 29, 2006, there was approximately US$330 million of
unused committed credit availability under the company's U.S.
and Canadian credit facility. As of Dec. 29, 2006, there was
approximately US$516 million outstanding in foreign currency
borrowings.
About Aramark Corp.
Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation
(NYSE:RMK) -- http://www.aramark.com/-- is a leader in
professional services, providing award-winning food services,
facilities management, and uniform and career apparel to health
care institutions, universities and school districts, stadiums
and arenas, and businesses around the world. In FORTUNE
magazine's 2006 list of "America's Most Admired Companies,"
ARAMARK was ranked number one in its industry, consistently
ranking since 1998 as one of the top three most admired
companies in its industry as evaluated by peers and industry
analysts. The company was also ranked first in its industry in
the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000
employees serving clients in 20 countries, including Japan and
Korea.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 13, 2007, Fitch Ratings downgraded the Issuer Default
Rating (IDR) for both ARAMARK Corporation (NYSE: RMK) and its
wholly owned subsidiary, ARAMARK Services, Inc. to 'B' from 'BB-
' and has rated the new financing of ARAMARK Corporation as
follows:
-- US$600 million revolving senior secured credit facility
due 2013 'BB-/RR2';
-- US$4.15 billion senior secured term loans due 2014 'BB-
/RR2';
-- US$250 million senior secured synthetic letter of credit
facility due 2013 'BB-/RR2';
-- US$1.78 billion senior unsecured notes due 2015 'B-/RR5'.
ARAMARK CORP: Completes Merger with Private Investment Group
------------------------------------------------------------
ARAMARK Corp. disclosed the completion of the acquisition of
ARAMARK by an investor group led by Joseph Neubauer, chairman
and chief executive officer of ARAMARK, and investment funds
managed by GS Capital Partners, CCMP Capital Advisors and J.P.
Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC.
"We are pleased to complete this transaction," said Neubauer,
who will remain Chairman and Chief Executive Officer of ARAMARK.
"I am particularly grateful for the support we have received
from our people who have worked hard to deliver outstanding
performance over many years, and our senior managers who will
further dedicate themselves by making a significant investment
in the company.
"This merger opens a new and exciting chapter in ARAMARK's
history. The new structure will enable us to fully unleash the
company's potential. Today, we are positioned to drive greater
innovation, pursue strategic opportunities, and build
sophisticated, long-term solutions that deliver the most value
for our clients and customers around the world.
"As we invest in new strategies that will define the future of
our industry, we will continue to build on our heritage of
delivering value to our employees, our partners, our clients and
our customers. We remain dedicated to providing outstanding
experiences, environments and outcomes each and every day for
our clients around the world."
On Aug. 8, 2006, ARAMARK said it had signed a definitive merger
agreement under which the private investor group would acquire
ARAMARK in a transaction valued at approximately US$8.3 billion,
including the assumption or repayment of approximately
US$2 billion of debt.
On Dec. 20, 2006, ARAMARK held a special meeting of its
stockholders, at which 86% of the outstanding votes and 97% of
the votes actually cast voted in favor of the adoption of the
merger agreement.
Under the terms of the agreement, ARAMARK shareholders are
entitled to receive US$33.80 in cash for each share of ARAMARK
common stock held.
About GS Capital Partners
Founded in 1869, Goldman Sachs is one of the oldest and largest
investment banking firms. Goldman Sachs is also a global leader
in private corporate equity and mezzanine investing.
Established in 1992, the GS Capital Partners Funds are part of
the firm's Principal Investment Area in the Merchant Banking
Division. With $8.5 billion in committed capital, GS Capital
Partners V is the current primary investment vehicle for Goldman
Sachs to make privately negotiated equity investments.
About CCMP Capital
CCMP Capital Advisors LLC is a leading private equity firm
formed in August 2006 by the former buyout/growth equity
investment team of JPMorgan Partners, a private equity division
of JPMorgan Chase. CCMP Capital is a registered investment
adviser with the Securities and Exchange Commission.
About J.P. Morgan Partners
J.P. Morgan Partners LLC is a private equity division of
JPMorgan Chase & Co., one of the largest financial institutions
in the United States. JPMP has invested over $15 billion
worldwide in consumer, media, energy, industrial, financial
services, healthcare and technology companies since its
inception in 1984.
About Thomas H. Lee Partners
Thomas H. Lee Partners, L.P. is one of the oldest and most
successful private equity investment firms in the United States.
Since its founding in 1974, THL Partners has invested
approximately $12 billion of equity capital in more than 100
businesses with an aggregate purchase price of more than $90
billion, completed over 200 add-on acquisitions for portfolio
companies, and generated superior returns for its investors and
partners.
About Warburg Pincus LLC
Warburg Pincus has been a leading private equity investor since
1971. The firm currently has approximately $16 billion of assets
under management with an additional $4 billion available for
investment in a range of sectors including consumer and retail,
industrial, business services, healthcare, financial services,
energy, real estate and technology, media and
telecommunications.
About Aramark Corp.
Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation
(NYSE:RMK) -- http://www.aramark.com/-- is a leader in
professional services, providing award-winning food services,
facilities management, and uniform and career apparel to health
care institutions, universities and school districts, stadiums
and arenas, and businesses around the world. In FORTUNE
magazine's 2006 list of "America's Most Admired Companies,"
ARAMARK was ranked number one in its industry, consistently
ranking since 1998 as one of the top three most admired
companies in its industry as evaluated by peers and industry
analysts. The company was also ranked first in its industry in
the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000
employees serving clients in 20 countries, including Japan and
Korea.
* * *
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 13, 2007, Fitch Ratings downgraded the Issuer Default
Rating (IDR) for both ARAMARK Corporation (NYSE: RMK) and its
wholly owned subsidiary, ARAMARK Services, Inc. to 'B' from 'BB-
' and has rated the new financing of ARAMARK Corporation as
follows:
-- US$600 million revolving senior secured credit facility
due 2013 'BB-/RR2';
-- US$4.15 billion senior secured term loans due 2014 'BB-
/RR2';
-- US$250 million senior secured synthetic letter of credit
facility due 2013 'BB-/RR2';
-- US$1.78 billion senior unsecured notes due 2015 'B-/RR5'.
DURA AUTOMOTIVE: Panel Wants Bennett as Special Canadian Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Dura
Automotive Systems Inc. and its debtor-affiliates' bankruptcy
cases seeks authority from the United States Bankruptcy Court
for the District of Delaware to retain Bennett Jones LLP as its
special Canadian counsel, effective as of Jan. 18, 2007.
Nick Walsh, Chairman of the Creditors Committee, tells the Court
that Bennett Jones was selected because its Bankruptcy and
Restructuring Department has extensive experience in the fields
of bankruptcy and creditors' rights under Canadian insolvency
law.
In addition to acting as counsel for significant parties-in-
interest in Canadian restructuring cases including Stelco Inc,
Canada's largest steel company; Doman Industries; and AT&T
Canada, Bennett Jones has also substantial experience in
Canada/U.S. cross-border cases including Laidlaw Inc., Pioneer
Chemicals, Mirant Energy, General Chemical Industrial Products
and Teleglobe Inc.
The Creditors Committee has engaged Bennett Jones to perform a
review of certain security interest in collateral located in
Canada in respect of a Fifth Amended and Restated Credit
Agreement, dated May 3, 2005, among Dura Automotive Systems,
Inc., as parent guarantor; the subsidiary guarantors party
thereto, Dura Operating Corp., as borrower; Dura Automotive
Systems (Canada), Ltd., as borrower; Bank of America, N.A., as
collateral agent and syndication agent; and JPMorgan Chase Bank,
N.A., as administrative agent.
The Creditors Committee will also rely on Bennett Jones, to the
extent necessary, for counsel with respect to other Canadian
legal issues.
As special Canadian counsel, Bennett Jones will be paid on an
hourly basis, based on its customary billing rates, which are
subject to periodic adjustments:
Profession Hourly Rate
---------- -----------
Partners US$450 - US$800
Associates US$260 - US$515
Legal Assistants US$120 - US$180
Bennett Jones will also be reimbursed for out-of-pocket expenses
incurred in connection with the Debtors' Chapter 11 cases,
including, inter alia, word processing, secretarial time,
telecommunications, photocopying, postage and package delivery
charges, court fees, transcript costs, travel expenses, expenses
for "working meals" and computer-aided research.
About DURA Automotive Systems Inc.
Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia, namely in
China, Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on 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 Oct. 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. 12;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTOMOTIVE: Wants to Complete Key Management Incentive Plan
----------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates seek
authority, pursuant to Section 363(b) and 503(c)(3) of the
Bankruptcy Code, from the U.S. Bankruptcy Court for the District
of Delaware to complete their Key Management Incentive Plan
implemented on Aug. 21, 2006, and make all attendant payments
upon notice to the counsel to:
(a) the Official Committee of Unsecured Creditors;
(b) their postpetition secured lenders; and
(c) the ad hoc committee of certain of their prepetition
second lien secured lenders.
The Debtors believe that, ordinarily, an incentive program can
be undertaken in the ordinary course of business without the
need for any further Court approval. Nonetheless, the Debtors
are mindful that, as part of a global resolution of issues
among the Debtors and parties-in-interest, the Court has
specifically ordered the Debtors to seek further Court order
before making any payments related to a key management incentive
plan.
In February 2006, the Debtors and their non-debtor affiliates
launched their "50 Cubed" operational restructuring plan, which
is designed to enhance performance optimization, worldwide
efficiency and financial results. The restructuring plan's goal
is increasing profitability by 50% of its worldwide operations
through either product movement or facility closures.
The 50 Cubed Plan is scheduled to be completed by the end of
2007. It also included shifting certain of the company's
operations to lower-cost countries so that 50% of the company's
revenues would be generated by Dura Automotive Systems, Inc.'s
"best-in-cost facilities," which is to result in five to 10
facilities worldwide being closed.
To achieve the estimated US$40,000,000 in annual savings, the 50
Cubed Plan will require certain one-time, front-end costs
associated with moving entire assembly operations and associated
equipment across continents. The Company's goal is to complete
the transition while spending more than US$100,000,000 in plant
relocation costs, severance payments and capital expenditures.
In early 2006, the company also knew that the 50 Cubed Plan, by
itself, would not be enough to bring back to health, Jason M.
Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, informs the Court. The company needed to cut overhead
as well.
The company's senior management determined that gross profit
margins could be further improved by eliminating approximately
510 salaried and hourly positions in Canada, the United States
and Western Europe that were not directly involved in
production.
The company recently completed the 510 Program at an estimated
cost of US$2,800,000 in severance payments made to certain of
the 513 indirect workers whose positions were eliminated by
Dec. 31, 2006. The 510 Program has eliminated approximately
US$26,800,000 in annual salary and wages costs.
Historically, the Debtors compensated a core management team of
approximately 150 key employees through salary, equity-based
long-term incentive plans and an annual bonus plan.
In October 2006, the Debtors cancelled their employee discount
stock purchase plan and suspended their equity-based long-term
incentive plan.
The Debtors did not make any payments under the Annual Bonus
Plan in 2006 with respect of the 2005 Plan, and will not be
making any payments under that Plan until February 2008 at the
earliest, Mr. Madron relates.
Mr. Madron tells the Court that the virtual elimination of
performance-based compensation has severely eroded the
competitiveness of the Debtors and their non-debtor affiliates'
compensation program.
In mid-2006, the Debtors and their affiliates commissioned
Hewitt Associates LLC to provide a report on the competitiveness
of the salary structure.
In its report, Hewitt determined that the total compensation
levels for certain identified officers were approximately 24.9%
below the industry average.
In mid-2006 until the present, the Company needs to singularly
focus its key management employees on fulfilling their goals set
forth in the 50 Cubed Plan, the 510 Program and related
restructuring efforts, Mr. Madron relates. Thus, the company
determined that targeted financial incentives for working toward
those specific goals would further motivate these key employees
to complete the company's global operational restructuring on
time and under budget.
Accordingly, the company developed the Key Management Incentive
Plan that tied highly targeted bonuses for approximately 55 key
management employees who are primarily responsible for
implementing the 50 Cubed Plan and the 510 Program and achieving
their goals.
The individual targets were set based upon a percentage of the
sum of each individual's total target direct compensation. The
maximum aggregate amount payable under the KMIP is approximately
US$6,800,000.
According to Mr. Madron, the KMIP is flexible by design and does
not have fixed award dates, although the performance period runs
through Dec. 31, 2007 -- the Debtors' target for the
completion of the 50-Cubed Plan and the 510 Program. The
flexibility is critical to maximizing the effect of the
incentives on the KMIP participants, he asserts.
The Compensation Committee -- a group of three independent
directors who have no direct interest in the KMIP -- has the
discretion to make the meaningful awards when it determines that
the Company has made substantial and measurable progress in
achieving, at first interim and then the final, 50 Cubed Plan
and 510 Plan milestones.
KMIP payments are determined by the company's progress in four
specific areas:
(a) Moving production for 2,000 positions to "best-in-cost"
and facilities in lower-cost countries by Dec. 31, 2007;
(b) Completing the 50 Cubed Plan at or under budget of
approximately US$100,000,000;
(c) Eliminating at least 510 indirect labor positions by
Dec. 31, 2006;
(d) Achieving personal goals as set by each participant's
manager in support of the above three activities.
"These aggressive and well-defined metrics provide targets for
KMIP participants to meet that are congruent with, and directly
support achievement of, the formidable goals articulated in the
Company's 50 Cubed Plan and 510 Program," Mr. Madron says.
Providing those targeted incentives helps maximize the
likelihood that the company will meet the restructuring goals on
time and under budget.
The company and the Compensation Committee purposely did not tie
the KMIP incentive payments to the company's current financial
performance, Mr. Madron notes. He explains that the Company's
present financial condition results from a multitude of factors
that were in place many months ago, most of which are
macroeconomic in nature.
Mr. Madron adds that tying KMIP incentives to short-term
performance would ignore the fact that the company's operational
restructuring is designed to spend money now to put the company
on stronger financial footing for the foreseeable future.
Therefore, short-term financial results are not indicative of
whether management's restructuring efforts are succeeding, he
asserts.
Moreover, the present financial results would also eliminate the
KMIP's intention, which is to further motivate KMIP participants
to singularly focus on the company's operational restructuring,
Mr. Madron tells the court.
On Aug. 21, 2006, the board of directors approved, and the
company implemented, the KMIP. On Sept. 29, 2006, the Debtors
made their first payments to participants, in the aggregate
amount of US$952,480, or 14.4% of the total KMIP goals on a
weighted basis.
Mr. Madron informs the Court that the commencement of the
Debtors' Chapter 11 cases has not altered:
-- the Company's need to complete its operational
restructuring on time and under budget;
-- the need to singularly focus key employees on the task at
hand.
Since the Debtors' bankruptcy filing, management has remained
motivated, and the company has continued to move down the path
to success, Mr. Madron says. "The Debtors cannot afford to
allow this momentum to slacken."
Thus, on Jan. 18, 2007, the Compensation Committee approved a
further award of 16.9% of the US$6,800,000 award pool based upon
achievements in the four KMIP metrics as of December 31, 2006.
The Compensation Committee took this action at year-end largely
in light of the company's highly successful, and ahead-of-
schedule, completion of the 510 Program.
In addition to completing the 510 Program, the company had also
made substantial progress in its goal of completing the 50 Cubed
Plan on time, and under budget, before year's end. In
particular, as of Dec. 31, 2006, production based upon 823
positions in Canada, the United States and Western Europe had
been shifted to LCC facilities in Eastern Europe and Mexico, and
"best in cost" facilities in the United States and Canada.
For award purposes, the company considered only the production
shifted to LCC facilities, or approximately 740 positions.
Production shifts related to 83 positions from donor facilities
to "best in cost" facilities within Canada and the United States
were not taken into account for purposes of determining the KMIP
interim milestone accomplishments.
As with the first payout, the Compensation Committee did not
consider the favorable, below-budget performance in determining
interim milestone achievements and the concomitant KMIP
payments, Mr. Madron notes. Instead, no credit will be
considered for any interim "below budget" milestones until the
Company has finished the job in its entirety. Thus, payments
with respect to "on budget" performance will not be made until,
at least, late 2007, and will depend upon when all 50 Cubed Plan
actions are finally completed.
According to Mr. Madron, the company believes that the 50 Cubed
Plan can be completed on time and under budget, "but it has no
illusions about the attendant risks and uncertainties". The
company similarly has no doubt that the concerted and focused
efforts of its management team are vital to the Company's future
success.
The bonus targets set forth in the KMIP will continue to push
key employees to complete the company's operational
restructuring on time and under budget, Mr. Madron tells the
Court. In short, the company developed the KMIP, and seeks to
continue making payments pursuant to its terms, in order to
further motivate key employees to drive forward, and
expeditiously conclude a successful operational restructuring
for the benefit of all the company's constituents.
About DURA Automotive Systems Inc.
Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia, namely in
China, Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on 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 Oct. 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. 12;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
HYNIX SEMICONDUCTOR: Shareholders to Interview CEO Candidates
-------------------------------------------------------------
Major shareholders of Hynix Semiconductor Inc. will interview
five candidates for the chief executive position on Feb. 26, The
Korea Times reports.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 7, 2007, Hynix Semiconductor CEO Woo Eui-jei revealed his
intention to resign.
According to the TCR-AP, the company's board of directors and
shareholders are expected to name and approve a new CEO by the
end of March.
The Korea Times relates that a committee of six shareholders
named the five contenders, that include three outsiders, one of
which will be selected as an official nominee by Feb. 28, to be
approved by the Hynix executive board meeting and at a general
shareholders meeting in March.
The Committee comprises of:
1) the Korea Exchange Bank,
2) Woori Bank,
3) Korea Development Bank,
4) Shinhan Bank,
5) National Agricultural Cooperative Federation, and
6) Resolution & Finance Cooperation
The five candidates are:
1) Chin; Kim Jong-kap, former vice minister of commerce,
industry and energy;
2) Oh Kye-hwan, president of the Ubiquitous IT-Cluster
Center;
3) Oh Choon-sik, executive vice president and chief
operations officer of Hynix; and
4) Choi Jin-seog, senior vice president and head of
manufacturing at Hynix; and
5) Chin Dae-je, former minister of information and
communication.
Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.
HYNIX SEMICONDUCTOR: Toshiba Wants Investigation of Memory Chips
----------------------------------------------------------------
On Jan. 9, 2007, Toshiba Corp. filed a complaint against Hynix
Semiconductor alleging that the importation and sale of Hynix's
NAND flash memory devices violates the U.S. Tariff Act on 1930,
Daniel Jacobs writes for the International Business Times.
Toshiba asserts that the devices infringe on its patents, the
IBTimes adds.
"The products at issue in this investigation are semiconductor
memory chips that are used in applications such as digital
cameras, USB drives, musical players, personal digital
assistants, and memory cards," the IBTimes cites a statement by
the U.S. International Trade Commission.
According to IBTimes, Toshiba is seeking a permanent exclusion
order and permanent cease and desist orders from the ITC.
The ITC will make a final determination in the investigation at
the earliest practicable time, the paper relates. Within 45
days after the institution of investigation, the ITC will set a
target date for completing the investigation, IBTimes notes.
Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.
NOVELIS INC: Hindalco Deal Prompts Moody's Ratings Review
---------------------------------------------------------
Moody's Investors Service placed the ratings of Novelis Inc. and
its subsidiary, Novelis Corporation, under review for possible
downgrade.
The review is prompted by the company's report that it has
entered into a definitive agreement with Hindalco Industries
Limited, one of India's largest non-ferrous metals companies,
for Hindalco to acquire Novelis in an all-cash transaction which
values Novelis at approximately US$6.0 billion, including
approximately US$2.4 billion of debt. Under the terms of the
agreement, Novelis shareholders will receive US$44.93 in cash
for each outstanding common share.
The review for downgrade reflects Moody's concerns that the
transaction could be accompanied by an increased level of debt
at Novelis to accomplish the acquisition. The review for
Novelis's ratings will focus on the completion of the proposed
transaction, including the final composition of debt within
Novelis and Hindalco, pro-forma credit metrics, the strategic
positioning of the combined company, and the potential for a
change in financial philosophy at Novelis. Although the
transaction has been approved by both companies' boards, Novelis
shareholders must still agree to the deal with a two-thirds
majority vote. The transaction also remains subject to
regulatory approvals.
To the extent existing debt at Novelis is repaid, the relevant
ratings will be withdrawn.
On Review for Possible Downgrade:
* Novelis Corporation
-- Ba2 Guaranteed Senior Secured Term Loan B, Placed on
Review for Possible Downgrade
* Novelis Inc.
-- B1 Corporate Family Rating, Placed on Review for
Possible Downgrade
-- B1 Probability of Default Rating, Placed on Review for
Possible Downgrade
-- Ba2 Guaranteed Senior Secured Revolving Credit
Facility, Placed on Review for Possible Downgrade
-- Ba2 Guaranteed Senior Secured Term Loan B, Placed on
Review for Possible Downgrade
-- B2 Guaranteed Senior Global Notes, Placed on Review for
Possible Downgrade
Outlook Actions:
* Novelis Corporation
-- Outlook, Changed To Rating Under Review From Stable
* Novelis Inc.
-- Outlook, Changed To Rating Under Review From Stable
Headquartered in Atlanta, Georgia, Novelis is the world's
largest producer of aluminum rolled products. In the trailing
twelve months ended Sept. 30, 2006, the company had total
shipments of approximately 3.2 million tons and generated
approximately US$9.4 billion in revenues.
The company also has operations in Malaysia and Korea.
NOVELIS: Hindalco Purchase Prompts S&P to Put Ratings on Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Novelis
Inc., including the 'BB-' long-term corporate credit rating, on
CreditWatch with developing implications after the company
announced a definitive agreement to be acquired by Hindalco
Industries Ltd. This CreditWatch placement means the ratings
could be raised, lowered, or affirmed depending on the currently
unknown sequence of events. The ratings on Novelis or its rated
debt could also be withdrawn as details of the financing package
are revealed. All of Novelis' rated debt instruments--the
US$1.4 billion unsecured notes and the US$1.8 billion secured
credit facilities--include change-of-control provisions that
could trigger their redemption.
"Novelis' credit profile continues to be pressured by
unexpectedly volatile profitability and higher interest expenses
stemming from amendments on its senior secured credit
facilities," said Standard & Poor's credit analyst Donald
Marleau. "Furthermore, persistently high metals prices are
contributing to higher debt-financed working capital
investments," Mr. Marleau added. The company's liquidity
remains exposed to its volatile earnings, although the financial
covenants were relaxed through March 31, 2008, such that the
company should maintain adequate access under its US$500 million
revolving credit facility.
Standard & Poor's does not rate Hindalco, but the company
appears to have a good credit profile, with attractive primary
aluminum assets and a solid financial risk profile, offset by
low and volatile profitability in its copper assets and a strong
growth orientation. The credit implications of Hindalco's
ownership by the Aditya Birla Group are unclear.
Standard & Poor's will resolve the CreditWatch only after the
companies outline the final ownership structure and financing
package.
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has approximately 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.
The company also has operations in Malaysia and Korea.
NOVELIS INC: Hindalco Industries Acquires Firm for US$6 Billion
---------------------------------------------------------------
Novelis Inc. and Hindalco Industries Ltd. entered into a
definitive agreement for Hindalco to acquire Novelis in an all-
cash transaction.
The deal values Novelis at around US$6 billion, including
approximately US$2.4 billion of debt. Under the terms of the
agreement, Novelis shareholders will receive US$44.93 in cash
for each outstanding common share.
Hindalco is a leader in Asia's aluminum and copper industries,
and is the flagship company of the Aditya Birla Group, a
US$12-billion multinational conglomerate, with a market
capitalization in excess of US$20 billion. Following the
transaction, Hindalco, with Novelis, will be the world's largest
aluminum rolling company, one of the biggest producers of
primary aluminum in Asia, and India's leading copper producer.
"The acquisition of Novelis is a landmark transaction for
Hindalco and our Group," Kumar Mangalam Birla, Chairman of the
Aditya Birla Group, said. "It is in line with our long-term
strategies of expanding our global presence across our various
businesses and is consistent with our vision of taking India to
the world. The combination of Hindalco and Novelis will
establish a global integrated aluminum producer with low-cost
alumina and aluminum production facilities combined with high-
end aluminum rolled product capabilities. The complementary
expertise of both these companies will create and provide a
strong platform for sustainable growth and ongoing success."
"After careful consideration, the Board has unanimously agreed
that this transaction with Hindalco delivers outstanding value
to Novelis shareholders. Hindalco is a strong, dynamic company,"
Ed Blechschmidt, Acting CEO of Novelis, said. "The combination
of Novelis' world-class rolling assets with Hindalco's growing
primary aluminum operations and its downstream fabricating
assets in the rapidly growing Asian market is an exciting
prospect. Hindalco's parent, the Aditya Birla Group, is one of
the largest and most respected business groups in India, with
growing global activities and a long-term business view."
"There are significant geographical market and product
synergies, Debu Bhattacharya, Managing Director of Hindalco and
Director of Aditya Birla Management Corp. Ltd., said. "Novelis
is the global leader in aluminum rolled products and aluminum
can recycling, with a global market share of about 19%.
Hindalco has a 60% share in the currently small but potentially
high-growth Indian market for rolled products. Hindalco's
position as one of the lowest cost producers of primary aluminum
in the world is leverageable into becoming a globally strong
player. The Novelis acquisition will give us immediate scale
and a global footprint."
The transaction has been unanimously approved by the Boards of
Directors of both companies. The closing of the transaction is
not conditional on Hindalco obtaining financing. The
transaction will be completed by way of a plan of arrangement
under applicable Canadian Law. It will require the approval of
66-2/3% of the votes cast by shareholders of Novelis Inc. at a
special meeting to be called to consider the arrangement
followed by Court approval. The transaction is also subject to
certain other customary conditions, including the receipt of
regulatory approvals. The transaction will be completed in the
second quarter of 2007.
About the Aditya Birla Group
The Aditya Birla Group -- http://www.adityabirla.com/--
participates in a wide range of market sectors including,
viscose staple fiber, non-ferrous metals, cement, viscose
filament yarn, branded apparel, carbon black, chemicals,
fertilizers, sponge iron, insulators, financial services,
telecom, BPO and IT services.
About Hindalco
Headquartered in Mumbai, India, Hindalco Industries Ltd. --
http://www.hindalco.com/-- is structured into two strategic
businesses, aluminum and copper, with 2006 revenues of
approximately US$2.6 billion. Hindalco's integrated operations
and operating efficiency have positioned the company as Asia's
largest integrated primary producer of aluminum and among the
most cost-efficient producers globally. Its copper smelter is
the world's largest custom smelter at a single location.
Hindalco stock is publicly traded on the Bombay Stock Exchange
and the National Stock Exchange of India Ltd. Its current market
capitalization is US$4.3 billion.
About Novelis
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has approximately 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets. In Asia, the company has
operations in Malaysia and Korea.
* * *
The company carries Standard & Poor's Ratings Services' 'BB-'
long-term corporate credit rating.
Moreover, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the North American Metals &
Mining sectors, the rating agency confirmed its B1 Corporate
Family Rating for Novelis Inc.
THERMA-WAVE: Posts US$2.3 Mln Net Loss in Quarter Ended Dec. 31
---------------------------------------------------------------
Therma-Wave Inc. reported a US$2.3 million net loss on
US$18.9 million of revenues for the third fiscal quarter ended
Dec. 31, 2006, compared with a US$3.8 million net loss on
US$15.4 million of revenues for the same period ended Jan. 1,
2006.
Boris Lipkin, Therma-Wave's president and chief executive
officer, stated, "The strength of our sequential and year-over-
year revenue growth during the fiscal third quarter of 2007
reflects the success of our products as well as our ability to
meet our customers evolving needs for next generation advanced
metrology production solutions.
"We are pleased with our bookings for the quarter coming in at
$21.8 million representing a sequential increase of 16%. As we
move forward with completing the recently announced acquisition
with KLA-Tencor Corporation we continue to focus on delivering
to our customers advanced technology products in the areas of
thin film and optical critical dimension (OCD) metrology.
Looking forward, we feel the proposed integration of Therma-Wave
with KLA-Tencor will extend our latest metrology technologies to
our customer base."
Gross margin for the fiscal third quarter 2007 was 34.5%
compared to 34.8% in the year ago period.
Cash and cash equivalents totaled US$14.7 million as of
Dec. 31, 2006, reflecting cash utilization of US$2.9 million
during the fiscal third quarter.
Full-text copies of the company's consolidated financial
statements for the quarter ended Dec. 31, 2006, are available
for free at http://researcharchives.com/t/s?19a7
Merger Agreement
On Jan. 8, 2007, Therma-Wave announced that the company signed a
definitive Merger Agreement with KLA-Tencor Corp. Under the
agreement, KLA-Tencor Corp. agreed to acquire Therma-Wave
through a cash tender offer for US$1.65 per share, or
approximately US$75 million. The tender offer is scheduled to
expire at 12:00 midnight, Eastern Time, on Wednesday, Feb. 14,
2007.
The transaction is subject to customary closing conditions,
including regulatory approvals, and is expected to close by
March 31, 2007.
Going Concern Doubt
As reported in the Troubled Company Reporter on June 20, 2006,
PricewaterhouseCoopers, LLP, in San Jose, California, raised
substantial doubt about Therma-Wave Inc.'s ability to continue
as a going concern after auditing the company's consolidated
financial statements for the year ended April 2, 2006. The
auditor pointed to the company's recurring net losses and
negative cash flows from operations.
About Therma-Wave
Based in Fremont, California, Therma-Wave, Inc. (NASDAQ: TWAV)
-- http://www.thermawave.com/-- develops, manufactures and
markets process control metrology systems used in the
manufacture of semiconductors. Therma-Wave offers products to
the semiconductor manufacturing industry for the measurement of
transparent and semi-transparent thin films; for the measurement
of critical dimensions and profile of IC features and for the
monitoring of ion implantation. The company also has locations
in Korea and Japan.
* SK's National Debt May Surpass GDP by 2050, KPIF Forecasts
------------------------------------------------------------
South Korea's national debt will possibly surpass its gross
domestic product by the year 2050 if the government continues to
expand its budget in the welfare sector at the current rate, The
Dong-A Ilbo cites a report by the Korea Institute of Public
Finance on February 15, "The Sustainability of South Korea's
national debt."
Based on an analysis, the report showed that the percentage of
national debt in relation to GDP, which is currently about 30%,
will rise up to 42.7% in 2035 if the government continues to
expand its expenditures on welfare at the current rate without
reducing expenditures in the economic sector, The Dong-A
relates.
The report also anticipated that the percentage of national debt
in relation to GDP will soar up to 113.7% by 2050, 226.7% by
2060, and 371.9% by 2070, The Dong-A Ilbo relates.
The Dong-A recounts that South Korea's national debt grew from
KRW133.6 trillion at the end of 2002 to KRW248 trillion at the
end of 2005, and to KRW283.5 trillion at the end of 2006. It is
expected to rise beyond KRW300 trillion won at the end of 2007,
the paper notes.
"The national debt of South Korea is sustainable in the short-
and mid- run, but not in the long run. Taking into
consideration the potential debt from the national pension, the
fall in potential growth and the aging of Korean society, it is
highly necessary that the government pays keen attention to the
rate at which national debt grows," The Dong-A cites the KIPF,
as saying.
===============
M A L A Y S I A
===============
DATUK KERAMAT: Delays Filing of 2006 Third Quarter Results
----------------------------------------------------------
Datuk Keramat Holdings Bhd told the Bursa Malaysia Securities
Bhd that it may not be able to submit its financial results for
the third quarter ended September 30, 2006, on or before the
Feb. 28, 2007 deadline.
Datuk Keramat is still working on its corporate restructuring
scheme, thus the delay, the company said in a disclosure
statement with the bourse.
On Aug. 29, 2006, the Troubled Company Reporter - Asia Pacific
reported that the company also failed to submit its interim
financial report for the first quarter ended March 31, 2006, by
the end of the extended timeframe on August 31, 2006.
Subsequent reports by the TCR-AP also showed that the revamp
plan has also prevented Datuk Keramat from issuing its Annual
Audited Accounts for fiscal 2005, which was due in July 31,
2006. The expected date to submit the Report will depend on the
outcome of the proposed restructuring scheme.
The TCR-AP reported on May 29, 2006, that the Company's
securities have already been suspended since August 1, 2005,
because it has not issued the Annual Audited Accounts and Annual
Report for the 15-month period ended December 31, 2004,
Quarterly Reports for the periods ended March 31, 2005, June 30,
2005, and September 30, 2005, by the given due dates.
* * *
Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings
Berhad is engaged in investment and property holding. The
Company is also involved in management services; property
investment services; project management services and
development; credit and financing activities; distribution and
publication of magazines; media design and advertising;
management of supermarket and departmental store; trading and
distribution of pharmaceutical, management of car park, garment
manufacturing and financial services.
The Group is facing numerous suits filed by financiers and trade
creditors who have alleged that outstanding debts are owed to
them. On January 24, 2005, the Company was served with a wind-
up petition by Affin Bank Bhd, who claimed a sum of
MYR15.66 million in respect of revolving credit facilities
granted to the Company.
FA PENINSULAR: Bursa to Suspend Trading of Securities on Feb. 27
----------------------------------------------------------------
The Bursa Malaysia Securities Bhd will suspend the trading of FA
Peninsular Bhd's securities on Feb. 27, 2007, after the company
failed to comply with the bourse's listing requirements.
According to Bursa Securities, it decided to suspend FA
Peninsular's securities after the company failed to:
-- make the Requisite Announcement of the Company's
regularization plans in accordance with paragraph 8.14C
of the Listing Requirements of Bursa Securities and
Practice Note No. 17/2005 by Feb. 8, 2007; and
-- submit its regularization plans to the Securities
Commission and other relevant authorities for approval
subsequent to the date of the RA.
* * *
FA Peninsular's principal activities are processing and trading
cocoa. Other activity includes stock and share-broking.
Operations are carried out mainly in Malaysia.
The company is currently listed in the Amended PN-17 list of
companies in the Bursa Malaysia Securities Bhd.
As of Sept. 30, 2006, the company's balance sheet showed
insolvency with MYR15.879 million in total assets and
MYR21.804 million in total liabilities. Shareholders' deficit
of the company reached MYR5.92 million.
JOHAN CERAMICS: Bursa Defers Trading Suspension to February 27
--------------------------------------------------------------
The Bursa Malaysia Securities Bhd deferred the suspension of
Johan Ceramics Bhd's securities from trading starting Feb. 16 to
Feb. 27, 2007, in order to facilitate the proposed take-over by
Lembaga Tabung Angkatan Tentera.
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 14, 2007, the bourse decided to suspend the trading of the
company's securities after it failed to submit its
regularization plan to relevant authorities on Feb. 11.
However, Johan Ceramics asked the bourse to defer the suspension
and delisting of its securities to enable its shareholders to
have a ready market to dispose their shares during the offer
period of the VGO and to facilitate the take over offer of
Lembaga Tabung.
Johan Ceramics received the notice of take-over offer from
Lembaga Tabung on Jan. 15, 2007. The offer was made with regard
to the remaining 26,053,000 ordinary shares of MYR1.00 each not
already owned by LTAT in the company.
The ordinary shares being acquired represents 40.08% of the
issued and paid-up share capital of Johan Ceramics at a cash
price of MYR0.30 per share.
* * *
Headquartered in Malaysia, Johan Ceramics Berhad --
http://johanceramics.com/-- principally engages in the
manufacture and sale of glazed ceramic wall and floor tiles.
The Troubled Company Reporter - Asia Pacific reported that the
Company's balance sheet as of June 30, 2006 showed that the
Company has accumulated losses of MYR36,062,000. March 31, 2006,
showed accumulated losses of MYR35.5 million in shareholders
equity.
On June 12, 2006, the Company was classified as an affected
listed issuer under the Amended Practice Note 17 category of
Bursa Malaysia Securities Berhad's Listing Requirements after
its auditors expressed doubt on the Company's ability to
continue as a going concern and after its shareholders' equity
plunged below the listing requirement. As an affected issuer,
the Company was required to formulate and implement a plan to
regularize its financial condition.
LITYAN HOLDINGS: Balance Sheet Upside Down by MYR82M in Dec. '06
----------------------------------------------------------------
Lityan Holdings Bhd's unaudited balance sheet as of December 31,
2006, went upside down with total assets of MYR66.35 million and
total liabilities of MYR148.19 million, resulting to a
shareholders' deficit of MYR81.84 million.
In addition, the company's balance sheet at end-December 2006
showed strained liquidity with current assets of
MYR34.79 million and current liabilities of MYR145.46 million.
Lityan Holdings also incurred a net loss of MYR9.78 million on
MYR10.702 million revenues in the fourth quarter ended
Dec. 2006, as compared with a MYR27.63-million net loss on
MYR16.12 million of revenues recorded in the same period in
2005.
A full text-copy of the company's financial statement for the
fourth quarter ended-Dec. 2006 can be viewed for free at:
http://bankrupt.com/misc/lityan-4q-2006.xls
* * *
Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding. The Group carries out its operations in
Malaysia and the Philippines.
On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category. On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring itself onto stronger financial footing via an
injection of new viable businesses.
Lityan Holdings Bhd's unaudited balance sheet as of December 31,
2006, showed total assets of MYR66.35 million and total
liabilities of MYR148.19 million, resulting to a shareholders'
deficit of MYR81.84 million.
MBF CORP: Clarifies Report on Insurance Unit Acquisition
--------------------------------------------------------
MBf Corp Bhd clarified an article written on Nanyang Siang Pau
pertaining to several purchase offers the company has received
for its insurance unit.
According to the company, Nanyang Siang Pau printed an article
on its business section on Feb. 13, 2007, stating that:
1. MBF Corporation Bhd had received several bids, including
from a listed company, for its interest in the insurance
unit.
2. These parties may opt to acquire MBF Corp's shares
directly in view of its market value of about
MYR40 million.
3. The asking price of Dato' Loy Teik Ngan's controlling
stake is believed to be about MYR75 million or MYR0.63
per share.
MBf Corp told the Bursa Malaysia Securities Bhd that the company
is not aware or has any knowledge of the subject matters
referred to items 2 and 3. "We have not been informed or
notified of such plans by any Director or major shareholder of
the company or any other person," the company said in its
statement.
However for Item 1, the company confirms that it has received
the approval of Bank Negara Malaysia to commence discussions
with an interested party concerning a possible disposal of its
equity interest in its insurance associate, MBf Corp said.
* * *
Headquartered in Kuala Lumpur, Malaysia, MBf Corporation Berhad
is principally involved in promoting and selling property, club
and timeshare memberships; leasing factoring facilities, credit
cards, consumer financing and related products and property
development. Other activity include investment holding.
The Group operates in three main areas, namely, Malaysia,
Indonesia and Hong Kong and Taiwan collectively. The Group's
principal activities are mainly operated in Malaysia except for
the credit card business, which is carried out in Indonesia.
The Group has no significant operations in Hong Kong and Taiwan
other than certain residual assets from a subsidiary that has
since been liquidated in Taiwan.
The Company is classified under Bursa Malaysia Securities
Berhad's Practice Note 17 category and is required to formulate
a plan to raise its shareholders' equity to avoid getting
delisted.
MYCOM BERHAD: Posts MYR10.43-Mil. Net Loss in Dec. '06 Quarter
--------------------------------------------------------------
Mycom Berhad incurred a MYR10.43-million net loss on
MYR24.77 million of revenues recorded in the second quarter
ended Dec. 31, 2006, as compared with a net loss of
MYR18.81 million on MYR21.35 million of revenues in the same
period in 2005.
The company's consolidated balance sheet as of Dec. 31, 2006,
showed illiquidity with current assets of MYR55.23 million and
current liabilities of MYR1.31 billion.
In addition, Mycom's balance sheet as of end-December 2006
showed total assets of MYR817 million and total liabilities of
MYR1.34 billion, resulting to a shareholders' deficit of
MYR528.84 million.
A full text-copy of the company's financial report for the
second quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/Mycom-2q-report.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.
The company is also involved in hotel operation, provision of
management and financial services and investment holding.
Operations of the Group are carried out in Malaysia and South
Africa.
Mycom is in the advanced stage of negotiations to settle its
foreign debts. The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the company's accumulated losses.
Mycom's balance sheet as of end-December 2006 showed total
assets of MYR817 million and total liabilities of
MYR1.34 billion, resulting to a shareholders' deficit of
MYR528.84 million.
OLYMPIA INDUSTRIES: Incurs MYR39.57-Million Net Loss in 2Q 2007
---------------------------------------------------------------
Olympia Industries Bhd posted a MYR39.57-million net loss on
MYR72.95 million of revenues in the second quarter period ended
Dec. 31, 2006, as compared with a MYR34.38-million net loss on
MYR56.39 million of revenues in the same quarter in 2005.
As of Dec. 31, 2006, the company's balance sheet reflected
illiquidity with MYR385.39 million in current assets and
MYR2.06 billion in current liabilities.
In addition, Olympia's balance sheet as at Dec. 31, 2006, showed
total assets of MYR1.02 billion and total liabilities of
MYR2.13 billion. Shareholders' deficit of the company reached
MYR1.105 billion.
A full text-copy of the company's financial report for the
quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/olympia-2q-report.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development. Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.
Operations are carried out in Malaysia, Papua New Guinea and
Singapore. The Company has incurred continuous losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.
Olympia's balance sheet as at Dec. 31, 2006, showed total assets
of MYR1.02 billion and total liabilities of MYR2.13 billion.
Shareholders' deficit of the company reached MYR1.105 billion.
PANGLOBAL BERHAD: Parties End Share Disposal Negotiations
---------------------------------------------------------
The parties involved in Panglobal Bhd's proposed share disposal
of its entire equity shareholdings of 99.97% interest in
PanGlobal Insurance Berhad have agreed to mutually terminate
negotiations.
As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 4, 2007, Panglobal Bhd secured Bank Negara Malaysia's
approval to enter into discussions with AMMB Holdings Bhd and
IAG International Pty Ltd on its plan to dispose its entire
99.97% equity shareholdings in its unit, PanGlobal Insurance.
Bank Negara has been informed of the termination of the
discussion, the company said in a disclosure statement with the
Bursa Malaysia Securities Bhd.
* * *
Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.
PanGlobal is listed under Practice Note 4/2001. The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating. The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005. On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme.
The company's balance sheet as of Sept. 30, 2006, revealed total
assets of MYR690.55 million and total liabilities of
MYR1.58 billion, resulting to a stockholders' deficit of
MYR368.08 million.
=====================
N E W Z E A L A N D
=====================
AIR NEW ZEALAND: Finalizes Order of 4 Boeing 787 for US$700 Mln.
----------------------------------------------------------------
Air New Zealand Limited has finalized its order for four more
Boeing 787 Dreamliners, taking the order to eight, ShareChat
News cites the New Zealand Press Association.
The value of the new order is about US$700 million (NZ$1
billion) at list prices. Delivery of the planes will be from
2011 through 2013, ShareChat says.
"The new aircraft are important to Air New Zealand's growth
plans during the next decade," NZPA quotes Air New Zealand Chief
Executive Officer Rob Fyfe as saying.
"Their long-haul capabilities will reach to a variety of
destinations in Africa, India, the Americas and Asia, bringing
some exciting prospects that we can pursue," Mr. Fyfe said.
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
Sept. 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.
BLOMFIELD CABINET: Court to Hear Liquidation Petition
-----------------------------------------------------
A liquidation petition filed against Blomfield Cabinet Craft Ltd
will be heard before the High Court of Auckland on April 19,
2007, at 10:00 a.m.
Carters, a division of Carter Holt Harvey Ltd, filed the
petition on Dec. 4, 2006.
Carters' solicitor can be reached at:
Karl Robinson
Edmund Lawler & Associates
PO Box 25931
St Heliers, Auckland
New Zealand
C.D.M. CONSULTANT: Court to Hear CIR's Liquidation Petition
-----------------------------------------------------------
The High Court of Auckland will hear a liquidation petition
against C.D.M. Consultant Ltd on Feb. 22, 2007, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition on Oct.
11, 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
CORPORATE HOST: Creditors' Proofs of Claim Due on May 9
-------------------------------------------------------
The creditors of Corporate Host Events Ltd are required by
Liquidators Vivian Judith Fatupaito and David Murray Blanchett
to submit their proofs of claim by May 9, 2007.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the company will make.
The Joint Liquidators can be reached at:
Vivian Judith Fatupaito
David Murray Blanchett
PricewaterhouseCoopers
Level 8, PricewaterhouseCoopers Tower
188 Quay Street, Auckland
New Zealand
Telephone:(09) 355 8000
Facsimile:(09) 355 8013
DIAMONDS CONSTRUCTIONS: Appoints Joint Liquidators
--------------------------------------------------
On Feb. 8, 2007, Diamonds Constructions and Maintenance Ltd
appointed Grant Bruce Reynolds and Gilbert Dale Chapman as joint
and several liquidators.
In this regard, the liquidators fixed March 20, 2007, as the day
for which the company's creditors are to prove their debts.
The Joint Liquidators can be reached at:
Grant Bruce Reynolds
Gilbert Dale Chapman
Reynolds & Associates Limited
Insolvency Practitioners
PO Box 259059, Greenmount
East Tamaki, Auckland
New Zealand
Telephone:(09) 577 0162
Facsimile:(09) 577 0243
E.MAC ENTERPRISES: Court Releases Wind-Up Order
-----------------------------------------------
The High Court of Christchurch entered an order on Jan. 29,
2007, to liquidate the business of E.Mac Enterprises Ltd.
Accordingly, Iain Andrew Nellies and Wayne John Deuchrass were
appointed as joint and several liquidators.
As reported by the Troubled Company Reporter - Asia Pacific, the
Commissioner of Inland Revenue filed the liquidation.
The Joint Liquidators can be reached at:
Iain Andrew Nellies
Wayne John Deuchrass
c/o Insolvency Management Limited
Level 1, 148 Victoria Street (PO Box 13401)
Christchurch
New Zealand
ITALIAN GROCER: Mountfort to Act as Liquidator
----------------------------------------------
Curtis John Mountfort was appointed as liquidator of The Italian
Grocer Ltd by a special resolution of the company passed on
Feb. 8, 2007.
Accordingly, Mr. Mountfort fixed March 16, 2007, as the day for
which the company's creditors are to prove their debts.
The Troubled Company Reporter - Asia Pacific previously reported
that the Commissioner of Inland Revenue filed the liquidation
petition against the company on Oct. 11, 2006.
The Liquidator can be reached at:
Curtis John Mountfort
Mountfort & Associates
Chartered Accountants
PO Box 82161, Auckland
New Zealand
Telephone:(09) 272 2241
Facsimile:(09) 272 2251
KITCHEN WORLD: Creditors Must Prove Debts by March 12
-----------------------------------------------------
The creditors of Kitchen World N Z Ltd are required to prove
their debts by March 12, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the distribution.
The liquidator can be reached at:
John Francis Managh
Gladstone Chambers
50 Tennyson Street (PO Box 1022), Napier
New Zealand
Telephone/Facsimile:(06) 835 6280
e-mail: jmanagh@xtra.co.nz
MONA VALE: Court Issues Liquidation Order
-----------------------------------------
On Jan. 29, 2007, the High Court of Christchurch released an
order to liquidate the business of Mona Vale Construction Ltd.
Accordingly, Iain Andrew Nellies and Wayne John Deuchrass were
appointed as joint and several liquidators.
The Joint Liquidators can be reached at:
Iain Andrew Nellies
Wayne John Deuchrass
c/o Insolvency Management Limited
Level 1, 148 Victoria Street (PO Box 13401)
Christchurch
New Zealand
ONIX MOTORS: Liquidation Hearing Slated for February 22
-------------------------------------------------------
On Oct. 13, 2006, Dr. Amir Butt filed a liquidation petition
against Onix Motors Ltd before the High Court of Auckland.
The petition will be heard on Feb. 22, 2007, at 10:00 a.m.
Dr. Butt's solicitor can be reached at:
Pawan Kumar Varma
Blomkamp Cox
12 Auburn Street (PO Box 331600, DX BP 66073)
Takapuna, North Shore
New Zealand
REMA LTD: Court Sets Liquidation Hearing on March 15
----------------------------------------------------
A liquidation petition filed against Rema Ltd will be heard
before the High Court of Auckland on March 15, 2007, at
10:00 a.m.
Westpac New Zealand Ltd filed the petition with the Court on
Nov. 17, 2006.
Westpac's solicitor can be reached at:
M. M. B. Van Ryn
Simpson Grierson
Level 27, 88 Shortland Street
Auckland
New Zealand
SPORTFISHERS LTD: Faces Liquidation Proceedings
-----------------------------------------------
A petition to liquidate Sportfishers Ltd was heard before the
High Court of Whangarei on Feb. 19, 2007.
Ross John Stevenson filed the petition on Nov. 30, 2006.
Ross John's solicitor can be reached at:
L. A. Foley
Le Pine & Co
corner of Paora Hapi and Gascoigne Streets
(PO Box 140 or DX KP 37001), Taupo
New Zealand
WAITOA SECURITY: Court Hears Liquidation Petition
-------------------------------------------------
The High Court of Wellington heard a liquidation petition
against Waitoa Security Ltd on Feb. 19, 2007.
The Commissioner of Inland Revenue filed the petition on Dec.
20, 2006.
The CIR's solicitor can be reached at:
Mary Kate Crimp
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 1067
Facsimile:(04) 890 0009
=====================
P H I L I P P I N E S
=====================
ALLIED BANK: To Raise Tier II Capital for Basle II Requirements
---------------------------------------------------------------
Allied Banking Corp. informs the Philippine Stock Exchange that
it will raise tier II capital to meet the Basle II requirements
effective July 2007. In this regard, the bank advises the PSE
that it will not pursue the issuance of hybrid tier I notes.
Allied Banking Corporation -- http://www.alliedbank.com.ph/--
is a universal bank incorporated in the Philippines on April 4,
1977. The Company and its subsidiaries/affiliates are engaged
in all aspects of banking, financing and leasing to personal,
commercial, corporate and institution clients. Allied Bank
offers a full range of domestic and international banking
products and services including deposit taking, lending and
related services, domestic and foreign fund transfer, treasury,
foreign exchange and trust services. In addition, the Bank is
licensed to enter into regular financial derivatives as a means
of reducing and managing the bank's and its customers' foreign
exchange exposure.
The Troubled Company Reporter - Asia Pacific reported on Nov. 6,
2006, that Moody's Investors Service revised the outlook of
Allied Banking Corp.'s foreign currency long-term deposit rating
of B1 to stable from negative. The bank's foreign currency Not-
Prime short-term deposit rating and bank financial strength
rating of E+ remain stable.
This action follows the change in Moody's outlook to stable for
the Philippine country ceilings -- Ba3 foreign currency long-
term debt and B1 local currency government bond rating.
On Oct. 31, 2006, Fitch Ratings affirmed Allied Banking
Corporation's Individual rating at 'D' and Support rating at '4'
after a review of the bank.
MARIWASA MANUFACTURING: Mulls Issuance of Convertible Debentures
----------------------------------------------------------------
Mariwasa Manufacturing Corp. is considering the issuance of
convertible subordinated debentures, a filing with the
Philippine Stock Exchange reveals.
In the disclosure, Mariwasa schedules a special stockholders'
meeting on March 15, 2007, at Peninsula Manila in Makati City,
for the shareholders to approve the amendment of the company's
articles of incorporation to include the corporate power to
issue debentures. The stockholders will also decide on the
amount and features of the debentures that the company intends
to issue, and the mechanics for their conversion.
Additionally, the stockholders will also consider the company's
plan to:
-- reclassify its authorized capital stock into common and
preferred shares; and
-- increase in the company's capital stock from
PHP1.5 billion to PHP1.83 billion;
Incorporated on November 5, 1963, Mariwasa Manufacturing
Corporation -- http://www.mariwasa.com/-- manufactures and
sells glazed ceramic floor tiles in various sizes, colors and
designs via a distribution network that spans the whole
archipelago. The Company has 76 distributors and a significant
number of exclusive distributors nationwide. Aside from the
local market, Mariwasa tiles also exports to foreign markets
such as the United States and Hong Kong, among others.
Going Concern Doubt
After auditing the Company's 2005 Annual Report, Aileen Saringan
of Sycip Gorres Velayo and Co. raised substantial doubt on the
Company's ability to continue as a going concern. According to
Ms. Saringan, "the Parent Company and its subsidiaries have
incurred recurring net losses and have a working capital
deficiency. In addition, the Parent Company and its major
subsidiary have not complied with certain loan covenants with
creditor banks."
Mariwasa has deferred payments pending the approval of its
proposed restructuring scheme.
Loan restructuring has been initiated and with the completion of
the loan restructuring, the Group expects to reduce its interest
expense and achieve more flexibility in its cash management.
The Group has also implemented these measures:
* Tightening credit control to avert potential bad debts; and
* Continuously improving production efficiencies and cutting
down overall costs by optimizing capacities and reducing
downtime.
METRO PACIFIC: Delisted From PSE Listing Effective Feb. 16
----------------------------------------------------------
Metro Pacific Corp. had been delisted from the registry of the
Philippine Stock Exchange effective Feb. 16, 2007, a filing with
the exchange states.
The exclusion of MPC from the listed companies is the result of
the initial listing of Metro Pacific Investments Corp. Pursuant
to and on the basis of the Revised Listing Rules of the PSE, MPC
will be withdrawn from the list to include MPIC.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 20, 2006, PSE approved MPIC's application for, among
others:
(a) the initial listing by way of introduction of its
1,206,978,766 common shares with a par value of PHP1.00
per share; and
(b) a listing price of PHP1.00 per share.
Metro Pacific Corporation -- http://www.metropacific.com/-- is
the flagship publicly listed investment and management company
of the First Pacific Group in the Philippines. The Company,
which was formerly known as Metro Drug, Inc., has since then
evolved from a pharmaceutical and consumer products distribution
company into one of the country's leading corporations.
Metro Pacific has these significant subsidiaries:
* Landco, Inc.
* Metro Tagaytay Land Co. Inc.
* Negros Navigation Co. Inc.
* Lucena Commercial Land Corporation
* First Pacific Realty Partners Corporation
* Landco Pacific Centers, Inc.
As reported in the Troubled Company Reporter - Asia Pacific on
June 28, 2006, Marydith C. Miguel, of Sycip Gorres Velayo & Co.,
raised significant doubts on MPC's ability to continue as a
going concern after auditing the Company's annual report for the
period ended December 31, 2005.
Ms. Miguel noted in the auditors' report that MPC suffered
significant losses in prior years leading to its inability to
meet its maturing obligations, on principal and interest, to
certain third-party lenders and to a related company. Although
the Company has generated a PHP194.26-million net income
attributable to equity holders for the year ended December 31,
2005, it continues to reflect a deficit of PHP27.5 billion as of
December 31, 2005, due to prior year's accumulated losses.
In response, the company continues to implement measures geared
towards generating liquidity to meet maturing obligations and
profitability, including debt rehabilitation activities and a
capital restructuring plan.
PHIL. LONG DISTANCE: First Pacific to Increase Stake by 6.4%
------------------------------------------------------------
Hong Kong-based First Pacific Company Limited, through
subsidiary Metro Pacific Assets Holdings, signed an agreement
with the Philippine Government pursuant to which the company
will acquire 111,415 shares in PTIC for PHP25,217,556,000
(US$510,580,198).
The shares, which is approximately 46% of the Government's
shareholding in PTIC, represents an attributable economic
interest of around 6.4% in the issued common share capital of
Philippine Long Distance Telephone Company, a filing with the
Philippine Stock Exchange reveals.
Pursuant to the agreement, First Pacific has deposited half of
the purchase price in an escrow account.
First Pacific, which already holds a 24% stake in PLDT, has
until March 8 to deliver full payment, Reuters says. PLDT
accounts for three-quarters of First Pacific's operating profit,
the news agency points out.
The purchase is still subject to the approval of First Pacific's
shareholders. In that regard, First Pacific's shareholders will
hold a special general meeting on Feb. 28, to consider the deal.
If the shareholders' approval is obtained, completion of the
agreement is anticipated to take place not later than March 2,
2007.
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT. Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.
Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+. Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.
PHIL. LONG DISTANCE: Capital Research & Mgmt. Buys 16% Stake
------------------------------------------------------------
Capital Research and Management Company, a United States-based
fund manager, has acquired 14,575,690 common shares of
Philippine Long Distance Telephone Co.
According to a filing with the Philippine Stock Exchange, the
shares represent approximately 1.6% of PLDT's 895,551,164 total
outstanding capital stock as of Jan. 31, 2007.
The CRMC stake would be worth PHP37.39 billion (US$773 million)
at Feb. 14's PHP2,565 close, Reuters notes.
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT. Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.
Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+. Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.
PHIL. LONG DISTANCE: Unit Enters Debt Market with PHP5BB Notes
--------------------------------------------------------------
Smart Communications marked its first peso debt capital markets
issue with a successful auction of PHP5 Billion in Fixed Rate
Corporate Notes on February 9, 2007.
The issue, jointly managed by Citicorp Capital Philippines,
Inc. and Land Bank of the Philippines, drew a distinguished
investor base including Philamlife, Rizal Commercial Banking
Corp., Sun Life of the Philippines and Insular Life in addition
to the two joint lead managers.
Smart, a wholly owned subsidiary of the Philippine Long Distance
Telephone Company, achieved the lowest pricing for a Corporate
Notes issuance in recent history, demonstrating the strong
investor confidence in the company's track record and financial
capabilities.
The Smart Corporate Notes is made up of Series A and B with five
and ten year tenors, respectively.
Series A was priced at 5.625%, 25 basis points lower than the
February 9th 5-year MART1 rate of 5.879%. Series B, on the
other hand, was priced at 6.500%, 26 basis points below the
February 9th 10-year MART1 of 6.760%. The issue has the
distinction of being one of the lowest-priced peso-denominated
debt deals successfully closed in the Philippines.
Smart President and CEO Napoleon L. Nazareno commented, "We are
extremely pleased with the outcome of the transaction.
Certainly, tapping the local debt market has become quite an
attractive choice for issuers like ourselves."
Citigroup Country Officer Sanjiv Vohra said: "Citicorp Capital
Philippines, together with Land Bank, is proud to have led
Smart's first peso debt capital markets issue. The landmark
pricing achieved for this transaction is testament to Smart's
outstanding credit and financial strength."
Land Bank President and CEO Gilda Pico said: "This is one of
those rare moments that a prime corporate credit such as Smart
taps the debt markets, and the timing was just right with
interest rates at all time lows. We are very happy that Smart
considered Land Bank for this deal. Apart from being a prime
issue, our support for the transaction underscores the crucial
role of telecommunications in countryside development."
Funds raised from the issuance will be used primarily for
Smart's capital expenditures for network improvement and
expansion.
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT. Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.
Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+. Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.
=================
S I N G A P O R E
=================
CHEMTURA CORP: Board Declares 5 Cents Per Common Share Dividend
----------------------------------------------------------------
Chemtura Corporation's Board of Directors declared a regular
quarterly dividend of five cents per share on the common stock
of the corporation, payable March 16, 2007, to shareholders of
record on Feb. 26, 2007.
About Chemtura Corporation
Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:
CEM) -- http://www.chemtura.com/-- is a global manufacturer and
marketer of specialty chemicals, crop protection and pool, spa
and home care products. The company has approximately 6,400
employees around the world and sells its products in more than
100 countries. In the Asia Pacific, Chemtura has facilities in
Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan and Thailand.
* * *
In November 2006, Moody's Investors Service assigned a Ba1
rating to Chemtura Corp.'s US$400 million of senior notes due
2016 and affirmed the Ba1 ratings for its other debt and the
corporate family rating.
GATE PACIFIC: Enters Wind-Up Proceedings
----------------------------------------
The High Court of Singapore released an order on Feb. 2, 2007,
to wind up the operations of Gate Pacific Pte Ltd.
The liquidator can be reached at:
The Official Receiver
45 Maxwell Road
#05-11/#06-11
The URA Centre (East Wing)
Singapore 069118
ISOFT GROUP: Australia's IBA Health Sets Up All-Share Bid
---------------------------------------------------------
IBA Health Ltd. is preparing an all-share offer for iSoft Group
Plc, Reuters reports.
According to the report, IBA stated that it was negotiating on
obtaining funds to refinance iSoft's existing debt facilities
and give IBA sufficient working capital for a bigger group.
iSoft disclosed that it is still considering a number of
alternatives after preferred buyer McKesson Corp. placed
takeover talks for a GBP200 million deal on hold, Reuters
relates.
According to the Times, McKesson insisted on unspecified
contract conditions with Computer Sciences Corp., which broke
down the negotiations. Any new owner of iSoft will need the
approval of CSC, a major contractor to the National Health
Services, as it subcontracts work to iSoft.
"McKesson would be the best buyer because they're a cash bidder,
but they would have to be persuaded to drop all their current
demands," a source close to the sale was quoted by the Times as
saying. "Until they do that, they've been told that they're not
going forward."
About iSOFT
Headquartered in Manchester, United Kingdom, iSOFT Group plc
-- http://www.isoftplc.com/-- supplies advanced medical
software applications for the healthcare sector. Its products
are used by more than 8,000 organizations in 27 countries for
managing patient information and driving improvements in
healthcare services. In international markets, the group has a
strong presence in the Asia-Pacific, including Singapore and
India.
* * *
In June 2006, the Group disclosed of a change in accounting
policy, as a consequence of which it became necessary to review
revenue recognition in prior years, in order to re-state some
prior year revenues. Arising out of that review, a number of
possible accounting irregularities came to light in which it
appears that some revenues reported in 2003/04 and 2004/05 may
have been recognized earlier than they should have been.
On July 20, 2006, the Group engaged its auditors, Deloitte &
Touche LLP, to conduct a formal initial investigation into these
possible irregularities. In August 2006, it was confirmed that
there were indeed matters that needed further investigation and
we handed over relevant documents to the Financial Services
Authority (FSA), which is now conducting further investigations.
The Group is working closely and co-operatively with the FSA in
order to complete these investigations as quickly as possible.
At the current time it would be inappropriate to comment on the
likely outcome.
On Oct. 25, 2006, the Accountancy Investigation and Discipline
Board (AIDB) disclosed that it would conduct its own
investigation. The AIDB investigation is a review of the
conduct of those members of accountancy bodies that are
regulated by the AIDB who were executive or non-executive
directors of iSOFT during the relevant periods, and RSM Robson
Rhodes LLP, iSOFT's auditor for the financial years ended
April 30 2003, 2004 and 2005.
All current executive directors of iSOFT who are members of
those accountancy bodies were appointed after the dates under
investigation, as was the non-executive director who is
currently chairman of the audit committee. The initial
investigation into possible accounting irregularities --
conducted by the Group's current auditors, Deloitte & Touche
LLP, in July and August 2006 -- did not uncover evidence that
any of the current non-executive directors had any knowledge of
the irregularities.
On the basis of information that has come to light so far, the
Group does not believe that these matters will have any impact
on the current or future financial position of iSOFT.
Going Concern Doubt
At Oct. 31, 2006, the company's board of directors recognized
that there are material uncertainties that may cast significant
doubt on the Group's ability to continue as a going concern.
LOGITEM SINGAPORE: Creditors Must Prove Debts by March 16
---------------------------------------------------------
Logitem Singapore Pte Ltd, which is in members' voluntary
liquidation, requires its creditors to prove their debts by
March 16, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from sharing in the company's distribution of dividend.
The liquidator can be reached at:
Lau Chin Huat
c/o 6 Shenton Way
#32-00 DBS Building Tower Two
Singapore 068809
READER'S DIGEST: Doctor Acquisition Plans to Offer US$750 Notes
---------------------------------------------------------------
Doctor Acquisition Co., which is proposed to be merged with and
into The Reader's Digest Association, Inc., intends to offer an
aggregate of US$750 million principal amount of senior
subordinated notes due on 2017. The notes are being offered in
connection with the acquisition of the company by an investor
group led by Ripplewood Holdings L.L.C.
In the Merger, Doctor Acquisition Co. will merge with and into
RDA and the notes will be issued by RDA as the surviving
corporation in the Merger. The net proceeds from the offering
of the notes, together with other financing sources, will be
used to consummate the Merger and related transactions. The
consummation of the offering is subject to market and other
conditions, including the closing of the Merger.
The notes will not be registered under the Securities Act of
1933 and may not be offered or sold in the United States or to
U.S. persons absent registration or an applicable exemption
from, or in a transaction not subject to, the registration
requirements of the Securities Act and other applicable
securities laws.
About Reader's Digest
Headquartered in Pleasantville, New York, The Reader's Digest
Association, Inc, -- http://www.rda.com-- is a global publisher
and direct marketer of products including magazines, books,
recorded music collections and home videos. Products include
Readers Digest magazine, which is published in 50 editions and
21 languages. Annual revenues approximate US$2.4 billion.
Reader's Digest has offices in Singapore, Korea, Malaysia,
Philippines, Thailand and India.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 14, 2007, Standard & Poor's Ratings Services lowered its
ratings on the company, including lowering the corporate
credit rating to 'B' from 'BB', reflecting the increase in
financial risk resulting from the leveraged acquisition, and
removed the ratings from CreditWatch, where they were placed
with negative implications on Aug. 15, 2006. The outlook is
negative
The TCR-AP also noted that Moody's Investors Service downgraded
the company's family rating to B2 from Ba1, concluding the
review for downgrade initiated on Sept. 6, 2006 and continued on
Nov. 16, 2006 in connection with the proposed US$2.4 billion
acquisition by a consortium of investors led by Ripplewood
Holdings LLC. The downgrade reflects the significant increase
in leverage that will occur as a result of the debt - financed
buyout and RDA's concurrent combination with Ripplewood
portfolio companies WRC Media Inc. and Direct Holdings U.S.
Corp.
READER'S DIGEST: Moody's Cuts Corp. Family Rating to B2 from Ba1
----------------------------------------------------------------
Moody's Investors Service downgraded The Reader's Digest
Association's Corporate Family rating to B2 from Ba1, concluding
the review for downgrade initiated on Sept. 6, 2006 and
continued on Nov. 16, 2006 in connection with the proposed
US$2.4 billion acquisition by a consortium of investors led by
Ripplewood Holdings LLC. The downgrade reflects the significant
increase in leverage that will occur as a result of the debt-
financed buyout and RDA's concurrent combination with Ripplewood
portfolio companies WRC Media Inc. and Direct Holdings U.S.
Corp.
Moody's also assigned a B1 rating to Doctor Acquisition Co.'s
proposed US$1.46 billion senior secured credit facilities and
Caa1 rating to DAC's proposed US$750 million senior subordinated
notes to be issued in connection with the acquisition. Together
with US$466 million of cash common equity and the sale of US$274
million of senior PIK preferred stock by RDA Holding Co., the
parent holding company established by Ripplewood for this
transaction, the proceeds will be used as follows:
-- US$1.7 billion to fund the buyout of RDA's common stock;
-- approximately US$700 million to retire existing RDA debt;
-- US$194 million to retire existing debt and other
obligations of Weekly Reader and Direct Holdings; and
-- approximately US$140 million for transaction-related fees
and expenses including a US$25 million transaction fee to
Ripplewood.
DAC is an acquisition vehicle owned by Ripplewood and affiliates
that will be merged into RDA to complete the acquisition with
RDA continuing as the survivor and borrower post-closing.
The rating outlook is stable.
Downgrades:
* Reader's Digest Association, Inc.
-- Corporate Family Rating, Downgraded to B2 from Ba1
-- Probability of Default Rating, Downgraded to B2 from
Ba1
Assignments:
* Doctor Acquisition Co.
-- Corporate Family Rating, Assigned B2
-- Probability of Default Rating, Assigned B2
-- Guaranteed Senior Secured Revolver, Assigned B1 LGD3,
33
-- Guaranteed Senior Secured Term Loan B, Assigned B1
LGD3, 33
-- Guaranteed Senior Subordinated Notes, Assigned Caa1
LGD5,85
Outlook Actions:
* Reader's Digest Association, Inc.
-- Outlook, Changed To Stable From Rating Under Review
* Doctor Acquisition Co.
-- Outlook, Assigned Stable
The B2 CFR reflects the combined company's high leverage, low
EBITDA margins and the moderate growth prospects of the mature
and largely print-based publishing portfolio.
Moody's expects debt-to-EBITDA will remain high at approximately
7.2-7.4x in FY 2008. Debt reduction will initially be modest
due to the higher interest burden and spending associated with
restructuring actions.
Recognizable brands, significant global presence and broad
diversity of publishing products support the ratings. Moody's
believes the publishing product lines are mature, but that new
initiatives including the Everyday with Rachel Ray magazine,
Taste of Home Entertaining business and continued expansion into
developing countries will contribute to modest revenue growth.
A key area of focus is improving the cost structure and
operational efficiency to drive margin expansion. The company's
print publishing and direct marketing businesses nevertheless
have high customer churn and acquisition costs, and recurring
editorial and paper costs that restrain margin potential.
Moody's believes the high leverage and weak margins limit
financial flexibility over the intermediate term.
The stable rating outlook reflects Moody's expectation that cost
savings and moderate revenue gains will lower debt-to-EBITDA
over the next 12-18 months. Moody's believes the credit
agreement provides near term flexibility for cost reduction
plans to gain traction as the debt-to-EBITDA covenant does not
begin until March 31, 2008.
The Ba2 rating on RDA's existing US$300 million notes remains on
review for downgrade pending the outcome of the tender offer for
the notes. Moody's will withdraw the rating if the notes are
repaid in connection with the tender offer and would likely
lower the rating to B3/LGD4 on any stub portion that remains
after the tender offer.
About Reader's Digest
Headquartered in Pleasantville, New York, The Reader's Digest
Association, Inc, -- http://www.rda.com-- is a global publisher
and direct marketer of products including magazines, books,
recorded music collections and home videos. Products include
Readers Digest magazine, which is published in 50 editions and
21 languages. Annual revenues approximate US$2.4 billion.
Reader's Digest has offices in Singapore, Korea, Malaysia,
Philippines, Thailand and India.
READER'S DIGEST: Posts US$62 MM Net Income in 2nd Qtr. FY 2007
--------------------------------------------------------------
The Reader's Digest Association, Inc. reported higher revenues,
operating profits, earnings per share and cash flow for the
second quarter of Fiscal 2007 ended December 31, 2006, versus
the second quarter of Fiscal 2006, reflecting stronger operating
results at RD North America and RD International.
Some of the company-wide results for the Fiscal 2007 quarter
compared with Fiscal 2006:
* Revenues were US$802 million, versus US$765 million.
* Operating Profits were US$114 million, versus a loss of
US$76 million.
* Net Income was US$62 million, versus a loss of
US$122 million.
* EPS was US$0.65, versus a loss of US$1.27.
* Free Cash Flow was US$133 million, versus US$120 million.
For Fiscal 2007, reported results for the quarter included a
loss on the sale of American Woodworker of US$6 million, and
costs related to the pending merger with an entity formed by an
investor group led by Ripplewood Holdings L.L.C. totaling
US$5 million, which included higher stock-based compensation
expenses as a result of increases in the company's stock price
and non-operating transaction costs. Excluding these items,
adjusted operating profits were US$122 million and adjusted EPS
was US$0.72. For Fiscal 2006, reported results included a non-
cash charge of US$188 million, or US$1.94 per share, in
connection with the write-down of goodwill associated with Books
Are Fun and a gain on an asset sale of US$1 million. Excluding
these items, Fiscal 2006 adjusted operating profits were US$111
million, and adjusted EPS was US$0.67.
Free cash flow was US$133 million in the quarter, favorable to
last year's free cash flow by US$13 million. The improvement is
attributable to improved operating results, proactive working
capital management across the divisions, and the final
installment of US$10 million from the sale of the Pleasantville
headquarters facility. Free Cash Flow for the first six months
was US$72 million, US$50 million favorable compared with the
prior year. Net debt declined to US$608 million from US$733
million at September 30th.
"The improved operating results for this quarter were in line
with our expectations," said Eric W. Schrier, President and
Chief Executive Officer. "We had strong performances from our
North America and International divisions, and we saw signs of
improvement at Consumer Business Services, especially Books Are
Fun. Free cash flow increased, as we had projected, building on
our cash flow improvement in the first quarter. In particular,
I am very encouraged by the performance of our new initiatives,
which are increasingly contributing to the company's growth,"
added Mr. Schrier.
Factors Driving 2nd Quarter Variance:
Revenues
* Total revenues increased 5% to US$802 million, versus
US$765 million. Foreign currency fluctuations increased
total company revenues by US$25 million. Higher revenues
were driven by improved sales at RD North America and
Reader's Digest International, partly offset by lower sales
at Consumer Business Services.
Operating Profits
* Operating profits were US$114 million, versus a loss of
US$76 million. Fiscal 2007 profits included a US$6 million
loss related to the sale of American Woodworker magazine
and US$2 million in higher stock-based compensation
expenses related to the pending merger transaction. The
Fiscal 2006 quarter included US$188 million from a write-
down of goodwill at Books Are Fun.
Adjusted Operating Profits
* Adjusted Operating Profits were US$122 million, versus
US$111 million, up 10%. Higher profits at RD North America
and Reader's Digest International in the Fiscal 2007
quarter were partly offset by lower profit at Consumer
Business Services as well as higher Corporate Unallocated
expenses.
Other Income
* Other Income Expense, Net was US$18 million, versus
US$10 million in the prior year. The variance mainly
reflects an increase of US$5 million in interest expense
because of higher debt balances and interest rates in the
second quarter of 2007 versus the prior year. The company
also incurred US$3 million of non-operating expenses
related to the merger transaction.
EPS
* Reported Earnings Per Share was US$0.65. In the prior-year
period, net loss per share was US$1.27. Adjusted EPS was
US$0.72, versus US$0.67 last year.
Pending Merger Transaction
* The company has entered into a merger agreement under which
an investor group led by Ripplewood Holdings L.L.C. will
acquire all of the outstanding common shares of the company
for US$17.00 per share. The transaction is expected to
close by the end of February 2007, and is subject to the
funding of the investor group's committed financing and the
approval of the holders of a majority of the outstanding
shares of RDA common stock, as well as other customary
closing conditions. A shareholders' meeting to consider
adoption of the merger agreement was scheduled on Feb. 2,
2007. The company will neither hold a second-quarter
conference call nor provide guidance for the rest of the
fiscal year.
Income Taxes
* Income tax expense was US$34 million, versus US$36 million
in the second quarter the prior year. For the second
quarter of 2007, the company recorded discrete tax benefits
of US$2 million related to adjustments to valuation
allowances.
Reader's Digest North America
* In the second quarter, revenues for RD North America were
US$275 million, up 11% over last year, and operating
profits were US$37 million, up 31%.
Revenue and profit gains were driven by the favorable
impact of investments in new businesses including Every Day
with Rachael Ray, Taste of Home Entertaining, and the
acquisition of Allrecipes.com. Further driving results
were recent cookbook launches including The Taste of Home
Cookbook. Increased sales of U.S. Books and Home
Entertainment products also contributed to higher RD North
America revenues. These gains were partly offset by lower
advertising sales at Reader's Digest magazine and reduced
revenues from American Woodworker magazine, which was sold
in December 2006.
Reader's Digest International
* Revenues for RD International were US$330 million, versus
US$301 million in the 2006 quarter. Foreign currency
fluctuations increased revenues in Fiscal 2007 by US$23
million. Higher revenues reflected strong continuous and
attached mail campaigns in Australia, and strong product
performance in Germany, including new products. Revenues
improved in many of the newer markets, including Ukraine,
Bulgaria and Romania. These results were partly offset by
lower revenues for Books and Home Entertainment products in
the United Kingdom, Poland, Portugal and Hungary as a
result of lower response rates from outside list customers,
and postal disruptions in Poland and Portugal.
Operating profits were US$47 million, versus US$39 million
in the prior-year quarter, an increase of 22%, or 13%
currency-neutral. Foreign currency fluctuations increased
operating profits by US$3 million. The revenue
improvement, as well as a shift in timing of certain
promotional campaigns, contributed to the profit increase.
Consumer Business Services
* In the second quarter, CBS reported revenues of
US$211 million, down 8% from last year, and operating
profits of US$49 million, down 9%. At BAF, revenue
declines were driven by fewer corporate events, reflecting
higher vacancies of corporate sales representatives in
certain markets due to the departure of those sales reps in
Fiscal 2006, as well as the absence of revenue from exited
lines of business. BAF has made significant progress in
replacing sales reps, as well as gaining traction with
initiatives designed to lower the cost base, upgrade the
management team, improve the effectiveness of the sales
force and strengthen cash flow. At QSP, revenues and
profits declined principally because of lower magazine and
gift sales. In December 2006, QSP named James A. Northrop
as President of QSP. Northrop is a seasoned executive with
considerable experience running large direct sales
organizations.
Corporate Unallocated
* Corporate Unallocated expenses were US$13 million, versus
US$10 million in the year-ago quarter. The increase in
these costs was driven by additional stock-based
compensation expense attributed to a 29 percent increase in
the price of RDA common stock during the second quarter of
Fiscal 2007. In addition, the variance was driven by lower
expense in Fiscal 2006 because of the reversal of a
litigation-related reserve that was no longer necessary.
As of Dec. 31, 2006, the company's balance sheet showed US$2.27
million in total assets and US$2.08 million in total
liabilities, resulting in a stockholders' equity of US$0.19
million.
About Reader's Digest
Headquartered in Pleasantville, New York, The Reader's Digest
Association, Inc, -- http://www.rda.com-- is a global publisher
and direct marketer of products including magazines, books,
recorded music collections and home videos. Products include
Readers Digest magazine, which is published in 50 editions and
21 languages. Annual revenues approximate US$2.4 billion.
Reader's Digest has offices in Singapore, Korea, Malaysia,
Philippines, Thailand and India.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 14, 2007, Standard & Poor's Ratings Services lowered its
ratings on the company, including lowering the corporate
credit rating to 'B' from 'BB', reflecting the increase in
financial risk resulting from the leveraged acquisition, and
removed the ratings from CreditWatch, where they were placed
with negative implications on Aug. 15, 2006. The outlook is
negative
The TCR-AP also noted that Moody's Investors Service downgraded
the company's family rating to B2 from Ba1, concluding the
review for downgrade initiated on Sept. 6, 2006 and continued on
Nov. 16, 2006 in connection with the proposed US$2.4 billion
acquisition by a consortium of investors led by Ripplewood
Holdings LLC. The downgrade reflects the significant increase
in leverage that will occur as a result of the debt - financed
buyout and RDA's concurrent combination with Ripplewood
portfolio companies WRC Media Inc. and Direct Holdings U.S.
Corp.
SEA CONTAINERS: Committee Taps Kroll as Financial Advisor
---------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Services Ltd. and its debtor-affiliates' Chapter 11 cases asks
authority from the U.S. Bankruptcy Court for the District of
Delaware to retain Kroll Ltd. as its financial advisor, nunc pro
tunc to Oct. 26, 2006, pursuant to the terms and conditions of a
letter agreement between the parties dated Feb. 8, 2007.
According to Jane Kathryn Fryer, a director at Aspen Trustees
Limited, Kroll has significant financial advisory skills and
7expertise in the pensions covenant field, among other things.
Kroll has advised the trustees of the Trinity Retirement Benefit
Scheme, The Rank Group Plc, Mowlem Plc, Alliance Unichem Plc,
Gala Group and Coral Group, Capita Group Plc, Galliford Try Plc,
and HCA International Limited. In addition, the firm has
significant experience in cross-border restructurings and has
been involved as administrator of the Federal-Mogul U.K. Group
and Collins & Aikman.
Kroll has acted to protect and advance the interests of the
Official Services Committee in the Debtors' bankruptcy cases
since its formation on Oct. 26, 2006. Ms. Fryer notes that
Kroll's services have materially benefited the unsecured
creditors of Sea Containers Services, and have served to protect
their rights until Kroll's formal retention.
As a result of its services, Kroll has become directly familiar
with the facts and circumstances surrounding Sea Containers
Services and the issues that the Official Services Committee
will face during the bankruptcy cases. Kroll and its
professionals are uniquely qualified to advise the Official
Services Committee, Ms. Fryer relates.
As the Official Services Committee's financial advisor, Kroll
will:
a. evaluate the assets and liabilities of the Debtors and
their affiliates;
b. analyze and review the financial and operating statements
of the Debtors and their affiliates;
c. analyze the business plans and forecasts of the Debtors
and their affiliates;
d. provide specific valuation or other financial analysis as
the Official Services Committee may require;
e. help with the claim resolution process and related
distributions;
f. provide consideration of and advice on financial and
commercial aspects of any plan of reorganization proposed
as part of the Debtors' bankruptcy cases, including
preparation, analysis and explanation of the plan to the
Official Services Committee;
g. attend meetings of the Official Services Committee and
their advisors;
h. assist as required with negotiations among the various
creditors and stakeholders in the bankruptcy cases;
i. coordinate Kroll's work with that of other professional
advisors and assist the Official Services Committee in the
understanding and interpretation of the work;
j. coordinate regular communications among the Official
Services Committee, its professionals, and other parties
as required, to discuss ongoing matters;
k. provide accounting advice and expertise to the Official
Services Committee as required; and
1. any other matters for which the Official Services
Committee seeks the financial advisory services of Kroll
and for which Kroll agrees to provide.
Kroll will be paid for its services based on its standard hourly
rates:
Designation Hourly Rate
----------- -----------
Partner US$550
Director US$425
Senior Associate US$400
Other Senior Professional US$200 - US$295
Other Staff US$75 - US$150
The firm will also be reimbursed for necessary expenses
incurred.
Ms. Fryer discloses that the Kroll Agreement provides for a
limitation of liability, in certain circumstances, for Kroll in
connection with its engagement.
The terms and conditions of the firm's engagement will be
governed and interpreted in accordance with the laws of England
and Wales and, as applicable, the Bankruptcy Code.
Gary Squires, Esq., a partner in the corporate advisory and
restructuring group at Kroll, assures the Court that his firm is
a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code. Kroll does not represent or
hold an interest adverse to the Debtors or any other party-in-
interest in the matters regarding its engagement, Mr. Squires
adds.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides
passenger and freight transport and marine container leasing.
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. On October 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 11;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' exclusive period to file a chapter 11 plan expires
on June 12, 2007.
SEA CONTAINERS: Services Panel Selects Willkie Farr as Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Services, Ltd. and its debtor-affiliates' Chapter 11 case asks
authority from the U.S. Bankruptcy Court for the District of
Delaware to retain Willkie Farr & Gallagher LLP as its counsel,
nunc pro tunc to Jan. 22, 2007.
The Official Services Committee represents the interests of Sea
Containers 1983 Pension Scheme and Sea Containers 1990 Pension
Scheme in the Debtors' bankruptcy cases.
Jane Kathryn Fryer, a director at Aspen Trustees Limited, says
WF&G's attorneys have extensive experience and knowledge in the
fields of debtors' and creditors' rights, debt restructuring and
corporate reorganizations, tax, real estate, employee benefits,
and commercial litigation, among others. WF&G's Business
Reorganization and Restructuring Department regularly represents
debtors, official and unofficial committees, and groups of
creditors or equity security holders in Chapter 11 cases and
financial restructurings.
Ms. Fryer adds that the Official Services Committee engaged WF&G
as its counsel on Jan. 22, 2007, and has since acted to protect
and advance the interests of the Committee. The firm's
attorneys have conducted, and continue to conduct, due diligence
in conjunction with its engagement. WF&G's services have
materially benefited the Official Services Committee and have
served to protect its rights. Hence, WF&G is well qualified to
represent the Official Services Committee's interests in the
Debtors' bankruptcy cases.
Among other things, WF&G will:
a. provide legal advice with respect to the Official
Services Committee's rights, powers, claims, and duties
in the bankruptcy cases;
b. represent the Services Committee at all negotiations,
hearings, and other proceedings;
c. advise and assist the Services Committee in discussions
with the Debtors and other parties-in-interest, as well as
professionals retained by any of the parties, regarding
the overall administration of the Chapter 11 cases;
d. assist with the Services Committee's investigation of the
assets, liabilities, and financial condition of the
Debtor, and of the operations of the Debtors' businesses;
e. assist and advise the Services Committee with respect to
its communications with other creditors;
f. review and analyze on behalf of the Services Committee all
pleadings, orders, statements of operations, schedules,
and other legal documents;
g. prepare on behalf of the Services Committee all pleadings,
motions, orders, reports, and other papers in furtherance
of its interests and objectives; and
h. perform all other legal services for the Services
Committee that may be necessary and proper.
The firm will be paid for its services based on its standard
hourly rates, plus reimbursement of actual and necessary
expenses incurred by WF&G.
Designation Hourly Rate
----------- -----------
Attorneys US$265 - US$885
Paralegals US$150 - US$235
The current hourly rates of the professionals that are likely to
be engaged in the Debtors' Chapter 11 cases are:
Professionals Designation Hourly Rate
------------- ----------- -----------
Marc Abrams, Esq. Partner US$885
Michael J. Kelly, Esq. Partner US$725
Casey Boyle, Esq. Associate US$460
Seth Kleinman, Esq. Law Clerk US$260
Marc Abrams, Esq., a member of WF&G, assures the Court that his
firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code. The members and
associates of WF&G do not represent or hold an interest adverse
to the Debtors, their creditors, or any other party-in-interest
in the matters regarding WF&G's engagement, Mr. Abrams adds.
Mr. Abrams can be contacted at:
Marc Abrams, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019-6099
Tel: (212) 728-8000
Fax: (212) 728-8111
http://www.willkie.com/
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides
passenger and freight transport and marine container leasing.
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. On October 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 11;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' exclusive period to file a chapter 11 plan expires
on June 12, 2007.
THAI SANG: Creditors Must Prove Debts by March 2
------------------------------------------------
Thai Sang Pawnshop Pte Ltd, which is in compulsory liquidation,
will declare a dividend for its creditors.
Accordingly, creditors must file their claims by March 2, 2007,
to be included in the company's distribution of dividend.
The liquidator can be reached at:
Tay Swee Sze
c/o Tay Swee Sze & Associates
137 Telok Ayer Street #04-01
Singapore 068602
===============
T H A I L A N D
===============
TMB BANK: To Raise Capital Adequacy Ratio To At Least 12%
---------------------------------------------------------
TMB Bank expects to complete its capital-increase plans by next
month, The Bangkok Post reports, citing TMB CEO Subhak
Siwaraksa.
According to The Post, Dr. Subhak said that Singapore's DBS Bank
was welcome to increase its shareholdings, adding that DBS was
unable to consolidate its investment as part of revenues due to
DBS' current 16% in TMB.
The report recounts that Dr. Subhak did not elaborate on the
capital increase or how much shares would be allocated, only
saying that in the medium-term, TMB Bank would raise its capital
adequacy ratio to at least 12% of risk assets.
The Post adds that TMB intends to reduce its non-performing
loans by THB30 to THB40 billion and lend THB24 billion in new
loans this year.
The report also states that about THB30 billion worth of
non-performing assets are expected to be cleared within three
years.
The Post adds that the bank had a capital adequacy ratio of
10.44% at the end of December 2006, and non-performing loans
totaled THB56 billion, or 10.33% of total loans.
Due to new provisioning requirements under the IAS 39 accounting
standard, TMB Bank posted a THB12.28 billion loss for 2006.
About TMB Bank PCL
Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders
financial services to all groups of customers. TMB Bank had
total assets of about THB717 billion as at December 31, 2005.
Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.
On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.
Moody's Investor Service gave TMB Bank a 'Ba1' Junior
Subordinated Debt Rating and an 'E+' Bank Financial Strength
Rating.
Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
February 2007
American Bankruptcy Institute
International Insolvency Symposium
San Juan, Puerto Rico
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
February 22, 2007
Turnaround Management Association
TMA PowerPlay - Atlanta Thrashers
Philips Arena, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
February 21-22, 2007
Euromoney
Euromoney Pakistan Conference
Perceptions & Realities
Marriott Hotel, Islamabad, Pakistan
Web site: http://www.euromoneyplc.com/
February 22, 2007
Euromoney
2nd Annual Euromoney Japan Forex Forum
Mandarin Oriental, Tokyo, Japan
Web site: http://www.euromoneyplc.com/
February 25-26, 2007
Norton Institutes
Norton Bankruptcy Litigation Institute
Marriott Park City, UT
Contact: http://www2.nortoninstitutes.org/
March 9, 2007
Fitch Training
Asian Regional Insurance Roadshow 2007
Kuala Lumpur, Malaysia
Telephone: +65 6336 6801
e-mail: zuraidah.ramli@fitchratings.com
March 12-15, 2007
Fitch Training
Corporate Credit Fundamentals
Hong Kong
Telephone: +44-(0)20-7201-2770
Web site: http://www.FitchTraining.com/
e-mail: enquiry@fitchtraining.com
March 14, 2007
Turnaround Management Association
The Great Debate
Sydney, Australia
Web site: http://www.turnaround.org/
March 16, 2007
Fitch Training
Asian Regional Insurance Roadshow 2007
Taipei, Taiwan
Telephone: +8862 2514 0580
e-mail: kathy.chang@fitchratings.com
March 21, 2007
Fitch Training
Asian Regional Insurance Roadshow 2007
Seoul, South Korea
Telephone: +822 2076 8364
e-mail: young.ha@fitchratings.com
March 21-22, 2007
Euromoney
2nd Annual Vietnam Investment Forum
Melia, Hanoi, Vietnam
Web site: http://www.euromoneyplc.com/
March 21-22, 2007
Euromoney
Euromoney Indian Financial Market Congress
Grand Hyatt, Mumbai, India
Web site: http://www.euromoneyplc.com/
March 22-23, 2007
Euromoney Institutional Investor
Euromoney Indonesian Financial Markets Congress
Bali, Indonesia
Web site: http://www.euromoneyplc.com/
March 26, 2007
Fitch Training
Asian Regional Insurance Roadshow 2007
Hong Kong
Telephone: +852 2263 9977
e-mail: carey.kwan@fitchratings.com
March 27-31, 2007
Turnaround Management Association - Australia
2007 TMA Spring Conference
Four Seasons Las Colinas, Dallas, TX, USA
e-mail: livaldi@turnaround.org
April 2-3, 2007
Fitch Training
Leveraged Finance Workshop
Hong Kong
Telephone: +44-(0)20-7201-2770
Web site: http://www.FitchTraining.com/
e-mail: enquiry@fitchtraining.com
April 11-15, 2007
American Bankruptcy Institute
ABI Annual Spring Meeting
J.W. Marriott, Washington, DC, USA
Telephone: 1-703-739-0800
Web site: http://www.abiworld.org/
May 28-31, 2007
Fitch Training
Corporate Credit Fundamentals
Hong Kong
Telephone: +44-(0)20-7201-2770
Web site: http://www.FitchTraining.com/
e-mail: enquiry@fitchtraining.com
June 13-15, 2007
Fitch Training
Intensive Bank Analysis
Hong Kong
Telephone: +44-(0)20-7201-2770
Web site: http://www.FitchTraining.com/
e-mail: enquiry@fitchtraining.com
June 18-20, 2007
Fitch Training
Insurance Company Analysis
Singapore
Telephone: +44-(0)20-7201-2770
Web site: http://www.FitchTraining.com/
e-mail: enquiry@fitchtraining.com
October 16-19, 2007
Turnaround Management Association - Australia
TMA 2007 Annual Convention
Boston Marriott Copley Place, Boston, MA, USA
e-mail: livaldi@turnaround.org
March 25-29, 2008
Turnaround Management Association - Australia
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, FL, USA
e-mail: livaldi@turnaround.org
October 28-31, 2008
Turnaround Management Association - Australia
TMA 2008 Annual Convention
New Orleans Marriott, New Orleans, LA, USA
e-mail: livaldi@turnaround.org
TBA 2008
INSOL
Annual Pan Pacific Rim Conference
Shanghai, China
Web site: http://www.insol.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Web site: http://www.insol.org/
October 5-9, 2009
Turnaround Management Association - Australia
TMA 2009 Annual Convention
JW Marriott Desert Ridge, Phoenix, AZ, USA
e-mail: livaldi@turnaround.org
October 4-8, 2010
Turnaround Management Association - Australia
TMA 2010 Annual Convention
JW Marriot Grande Lakes, Orlando, FL, USA
e-mail: livaldi@turnaround.org
Beard Audio Conferences
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Audio Conferences CD
Beard Audio Conferences
Distressed Real Estate under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Changes to Cross-Border Insolvencies
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Healthcare Bankruptcy Reforms
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Calpine's Chapter 11 Filing
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Employee Benefits and Executive Compensation
under the New Code
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Dana's Chapter 11 Filing
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Reverse Mergers-the New IPO?
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Distressed Market Opportunities
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Homestead Exemptions under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Surviving the Digital Deluge: Best Practices in
E-Discovery and Records Management for Bankruptcy
Practitioners and Litigators
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Deepening Insolvency - Widening Controversy: Current Risks,
Latest Decisions
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Equitable Subordination and Recharacterization
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
*********
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 ***