/raid1/www/Hosts/bankrupt/TCRAP_Public/070222.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
Thursday, February 22, 2007, Vol. 10, No. 38
Headlines
A U S T R A L I A
ADVANCED MARKETING: Inks LOI with Baker & Taylor on Asset Sale
ADVANCED MARKETING: Taps Houlihan Lokey as Investment Banker
ADVANCED MARKETING: Amber-Allen Not Signing with Perseus Books
APN NEWS: Posts AU$159.52 Million Net Profit for 2006, Up 7%
ARMOR HOLDINGS: Earns US$2.3 Bln. in Fiscal Year Ended Dec. 31
BIOTRACK AUSTRALIA: Taps de Vries and Tayeh as Liquidators
BROOKVALE CAR: Members and Creditors to Meet on March 21
BULLDOG STEEL: Final Meeting Slated for March 20
EVANS & TATE: To Perform Due Diligence on Yarraman Winery
JACOBENA INVESTMENTS: Members to Receive Wind-Up Report
JAMES HARDIE: Defers Release of 3rd Quarter Financial Results
JASPROP PTY: Members and Creditors to Meet on March 20
JUST MANOLIOS: To Declare Final Dividend on March 14
LAMA DEVELOPMENTS: Appoints Joint and Several Liquidators
LUXFER HOLDINGS: S&P Lowers Ratings to SD on Debt-to-Equity-Swap
NEURAGENIX PTY: To Declare Dividend for Priority Creditors
P.F.O. RETAIL: Members and Creditors' Meeting Set for March 20
SETON HOUSE: Members to Hold Final Meeting on March 20
SURFCOAST SPA: To Declare First and Final Dividend on March 15
WILD IT: Ferrier Hodgson Appointed as Voluntary Administrators
YAMASA AUSTRALIA: Members' Final Meeting Set for March 20
C H I N A & H O N G K O N G
BEIJING SHOUGANG: Acquires 23.62% Stake in Beijing Automotive
CHINA KEJIAN: Expects CNY50 Million Net Profit in 2006
CHINA KEJIAN: Launches Share Merger Reform
CHINA LIAONING: Discloses Verdicts in Three Lawsuits
CREDIT GLORY: Members Set to Meet on March 9
DIGITAL NETWORK: Auditors Raise Going Concern Doubt
FUJIAN CHANGYUAN: Equity Shares Unfrozen; H.K. Firm Wins Bid
FUJIAN CHANGYUAN: Expects CNY80-Million Net Loss in 2006
GRUPPO CONCIARIO: Members to Receive Wind-Up Accounts
GUANGDONG MEIYA: Expects a Turnaround for 2006
GUANGXIA (YINCHUAN): Expects CNY20-Million Net Loss in 2006
HAINAN AIRLINES: To Launch Beijing-Osaka Route in March
HITACHI ELECTRIC: Members to Hold Final Meeting on March 23
HSBC MEDICAL: Members' Final Meeting Set for March 16
LAN BAO: Expects Net Profit of Less Than CNY1 Million in 2006
MOUNT CITY: Creditors Must Prove Debts by March 17
SAMWELL LABELS: Members and Creditors to Receive Wind-Up Report
SHANGHAI ZI JIANG: Subsidiaries Apply For Working Capital Loan
SOLARICH LIMITED: Members to Meet on March 20
TECK SOON: Members' Final Meeting Set for March 16
UNIQUE INTERNATIONAL: Annual Meetings Slated for Feb. 23
YIP FAT: Creditors Must Prove Debts by March 20
* Police Starts Probe on Alleged IPO Subscription Malpractices
I N D I A
MODI RUBBER: Posts INR44.32 Mil. Net Income in Dec. '06 Quarter
PUNJAB NATIONAL BANK: Increases Benchmark Lending Rate to 12.25%
RELIANCE INDUSTRIES: Board to Review Plan to Raise US$2 Billion
RELIANCE INDUSTRIES: Seeks Government Nod to Sell Auto-LPG
RELIANCE INDUSTRIES: To Cut Petrol and Diesel Retail Prices
RPG LIFE: Members to Decide on Appointment of Managing Director
RYERSON INC: Harbinger Capital Comments on 2006 Financials
SAURASHTRA CEMENT: Net Profit Down 51% in December 2006 Quarter
SAURASHTRA CEMENT: Meeting of Scheme of Lenders Set for March 6
VISTEON CORP: Posts US$39 Mil. Net Loss in Fourth Quarter 2006
I N D O N E S I A
ALCATEL-LUCENT: To Build WiMAX Network in Latin America
ALCATEL-LUCENT: Inks Cooperation Deal With NXP Semiconductors
ALCATEL-LUCENT: Inks Partnership Deal with Orange Business
BANK DANAMON: Net Income Down 34% to IDR1.32 Tril. in 2006
BANK NEGARA: Delays US$150 Million Bond Sale, Bisnis Reports
BANK NISP: 2006 Net Income Up 16% to IDR237 Billion
CORUS GROUP: Tata Steel Hikes Equity Share Capital to 21.98%
CORUS GROUP: Tata Group to Launch Bond Issue In Overseas Markets
FREEPORT-MCMORAN: EU Approves Purchase of Phelps Dodge
GOODYEAR TIRE: Fourth Qtr. 2006 Loss Widens to US$358 Million
HILTON HOTELS: Creates Two New Executive Management Positions
INDOSAT: Selects Alcatel-Lucent to Deliver Carrier Ethernet
METSO OYJ: Paper Unit Launches Rebuilt Pilot Paper Machine
TELKOM: Wants to Team Up with CGWIC for Satellite Acquisition
J A P A N
DELPHI CORP: Signs Non-Binding Term Sheet with Renco Group
FORD MOTOR: To Miss February and March "Way Forward" Target
JAPAN AIRLINES: Proposes Changes To Board and Executive Officers
MILLIPORE CORP: Earns US$97 Million in Year Ended Dec. 31, 2006
MITSUBISHI MATERIALS: JCR Ups Long-Term Rating To BBB+ From BBB
SALLY BEAUTY: Acquires Salon Services Equity for US$59 Million
SAPPORO HOLDINGS: Denies Talks of Management-Led Buyback Plan
XM SATELLITE: NAB Wants SIRIUS Satellite Merger Blocked
K O R E A
ARROW ELECTRONICS: To Discuss Annual/Quarter Results on Feb. 22
ARROW ELECTRONICS: Names John McMahon as Human Resources Sr. VP
NOVELIS INC: Supplies Aluminum Sheet for 2007 GMC Acadia
NOVELIS: Hindalco Buy Cues Fitch to Put B Rating on Watch Neg.
SK CORP: Inks Deal with Nippon Oil to Purchase Shares
SK CORP: FTC Fines Firm KRW23.8 Billion for Price Fixing
M A L A Y S I A
DATAPREP HOLDINGS: Posts MYR1.8M Net Loss in F/Y Ended March '06
PUTERA CAPITAL: Unit Gets Summon and Claim from Fukada Eng.
SUNWAY INFRASTRUCTURE: Posts MYR19.53MM Net Loss in Dec. '06 Qtr
SUREMAX GROUP: Wins Jakarta Government's US$60-Million Project
TALAM CORP: SC Okays Changes to Europlus MYR350M Murabahah Notes
TAP RESOURCES: Discloses Details on Unit's Wind-Up Proceedings
TAP RESOURCES: Bursa Denies Request for Plan Filing Extension
TENCO BERHAD: Posts MYR14.25M Net Profit in Qtr Ended-Dec. '06
N E W Z E A L A N D
ALPHA KITCHENS: Creditors Must Prove Debts by March 12
ANGEL CAPITAL: Faces CIR's Liquidation Petition
BEULAH LAND: Faces Liquidation Proceedings
BOTRY-ZEN LTD: To Raise NZ$1.4 Mln. Through Share Purchase Plan
C E V MAINTENANCE: Court Sets Liquidation Hearing for March 1
CASE BOREHAM: Court Appoints Joint Liquidators
DIRECT LABOUR: Court Names van Delden and Wood as Liquidators
MOTORING PLUS: Court Hears Liquidation Petition
PACIFIC ALBACORE: Creditors Must Prove Debts by March 20
PLUS SMS: Changes Registered Office Address
RDS COACHLINES: Court to Hear Liquidation Petition on Feb. 26
SCHWASS PUMPS: Shareholders Appoint Liquidators
TURNER DISTRIBUTORS: Creditors' Proofs of Debt Due on March 23
WAINUIOTOTO BAY: Liquidation Hearing Set Today
WEIGHT WATCHERS: Posts US$1.2 Billion in Revenues for 2006
P H I L I P P I N E S
GEOGRACE RESOURCES: To Raise US$25 Million for Local Exploration
MIRANT CORP: Excluded Debtors File Amended Supplemental Plan
MIRANT CORP: Mirant NY-Gen Files Chapter 11 Plan
PSI TECHNOLOGIES: 2006 Net Loss Narrows to US$8.048 Mil.
S I N G A P O R E
COMPLETE HOME: Undergoes Liquidation Proceedings
GREEN POINT: Liquidators to Receive Claims Until March 16
INTERMEC INC: 2006 Net Earnings Down 48% to US$32 Million
LEVI STRAUSS: Posts US$96-Mil. Net Income in 4th Quarter 2006
OVERSEAS SHIPHOLDING: To Issue 4th Qtr. 2006 Results on Feb. 27
PHOENIX BOOK: Pays First and Final Dividend
SCOTTISH RE: Advisors Recommend 'Yes' Vote to MassMutual Deal
SCOTTISH RE: Hovde Capital Opposes MassMutual-Cerberus Proposal
SEA CONTAINERS: Aegis Financial Discloses 9% SeaCon Equity Stake
SEA CONTAINERS: Donald Smith Discloses 6.53% SeaCon Equity Stake
STEEL EAST: Creditors Must Prove Debts by March 16
T H A I L A N D
iTV PLC: Court Rejects Petition For Urgent Hearing
iTV PLC: to Hold Shareholders' Meeting on March 20
MANAGER MEDIA: Discloses Top Ten Shareholders
- - - - - - - -
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A U S T R A L I A
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ADVANCED MARKETING: Inks LOI with Baker & Taylor on Asset Sale
--------------------------------------------------------------
Advanced Marketing Services Inc. entered into a letter of intent
with Baker & Taylor to sell the majority of its assets,
excluding Publishers Group West Inc. The letter of intent is
subject to the negotiation of a definitive asset purchase
agreement and the United States Bankruptcy Court for the
District of Delaware's approval.
The asset purchase agreement will be subject to the requirements
of Section 363 of the Bankruptcy Code. Once the asset purchase
agreement is finalized, the company will file a motion with the
Bankruptcy Court to request a bidding procedures hearing,
expected to be held on Feb. 16, 2007. Following the completion
of the bidding process and an auction, if necessary, the company
anticipates a closing by March 15, 2007, as per the requirements
of the letter of intent.
"We are pleased to enter into this letter of intent with Baker &
Taylor and believe it marks a significant milestone in the
restructuring of our business," Gary Rautenstrauch, President
and CEO of AMS, said. "Baker & Taylor is a recognized leader in
the book distribution industry and has the experience to
seamlessly assume operations and continue meeting the needs of
our customers."
"An agreement with AMS will represent an important strategic
addition to Baker & Taylor's business," Richard Willis,
Chairman, President and CEO of Baker & Taylor, stated. "We are
excited about the opportunity to work with AMS to foster and
broaden the commitment to customer service and operational
excellence that AMS is known for."
About Baker & Taylor
Based in Charlotte, North Carolina, Baker & Taylor distributes
books, video and music products to public and academic
libraries. Founded in 1828, the company also distributes books
and entertainment products to many of brick and mortar
retailers, Internet retailers, as well as thousands of
independent book, music and video stores. It serves customers
in 125 countries around the world and has six distribution
facilities strategically located throughout the country. Baker
& Taylor is a portfolio company of Castle Harlan Partners IV,
L.P.
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: Taps Houlihan Lokey as Investment Banker
------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates ask
the United States Bankruptcy Court for the District of Delaware
for authority to employ Houlihan Lokey Howard & Zukin Capital
Inc. as their investment banker, nunc pro tunc to Dec. 29, 2006.
Mark D. Collins, Esq., at Richards, Layton & Finger, PA, in
Wilmington, Delaware, relates that Houlihan Lokey is one of the
leading advisors and investment bankers to troubled companies,
both inside and outside of bankruptcy. The firm's Financial
Restructuring Group has advised more than 500 transactions,
valued in excess of US$200 billion, over the past 12 years.
The Debtors have chosen Houlihan Lokey to act as their
investment banker because the firm has substantial expertise in
advising them, and is well qualified to perform the services and
represent their interests in the Chapter 11 cases, Mr. Collins
explains.
As investment banker, Houlihan Lokey will:
(a) evaluate the Debtors' strategic options based on
Houlihan's initial review;
(b) advise the Debtors generally as to available financing
and capital restructuring alternatives, including
recommendations of specific courses of action;
(c) assist the Debtors with the development, negotiation and
implementation of a restructuring plan, including
participation as an advisor to the Debtors in
negotiations with creditors and other parties involved
in a restructuring;
(d) assist the Debtors, if required, to draft an information
memorandum to seek potential new capital, and to
solicit, coordinate and evaluate indications of interest
regarding a transaction;
(e) assist the Debtors with the design of any debt and
equity securities or other consideration to be issued in
connection with a Transaction;
(f) advise the Debtors as to potential mergers or
acquisitions, and the sale or other disposition of any
of the Debtors' assets or businesses;
(g) assist the Debtors in communications and negotiations
with its constituents; including, creditors, employees,
vendors, shareholders and other parties in interest in
connection with any Transaction;
(h) assist the Debtors in locating and negotiating debtor-
in-possession financing with a new lender to replace the
DIP financing with Wells Fargo Foothill, Inc., in effect
as of the Effective Date of the Agreement; and
(i) render other financial advisory and investment banking
services as may be mutually agreed upon by Houlihan and
the Debtors.
Houlihan Lokey will be paid a flat monthly fee of US$150,000 for
the first three months of the engagement, and US$100,000 per
month afterwards.
The Debtors will also pay the firm:
(1) a Financing Fee upon the consummation of a DIP Financing
Transaction on behalf of the Debtors equal to the
Greater of (i) US$750,000 and (ii) 1.25% of the
aggregate principal amount of DIP Financing raised or
committed;
(2) a M&A Transaction Fee equal to a minimum of US$1.25
million plus incremental increases; and
(3) a US$1.25 million Restructuring Transaction Fee.
Houlihan Lokey will be reimbursed for all its reasonable out-of-
pocket expenses.
According to Mr. Collins, Houlihan Lokey's restructuring
expertise, as well as its capital markets knowledge, financing
skills, and mergers and acquisitions capabilities, some or all
of which may be required by the Debtors during the term of the
engagement, were important factors in the determination of the
amount of the firm's fees.
As its compensation will be calculated and paid based on certain
transaction fees, Houlihan Lokey will not be required to file
time records, Mr. Collins adds. Rather, in its fee applications
filed with the Court, Houlihan Lokey would present descriptions
of those services provided on behalf of the Debtors and the
individuals who provided the professional services.
The Debtors would indemnify and hold Houlihan Lokey harmless
against liabilities arising out of or in connection with its
retention.
Christopher R. Di Mauro, managing director at Houlihan Lokey,
assures the Court that his firm is a "disinterested person" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Objections
(a) Committee
The Official Committee of Unsecured Creditors says it is
inappropriate and unnecessary at this juncture for the Debtors
to retain Houlihan Lokey or any other investment banker.
Given the high fees Houlihan Lokey is seeking, there is no
benefit to the estates and creditors to retain them at this
time, Thomas F. Driscoll III, Esq., at Morris, Nichols, Arsht &
Tunnell LLP, in Wilmington, Delaware, tells Judge Sontchi.
Any beneficial services that Houlihan Lokey could realistically
provide at this point can be provided by the Debtors' other
professionals, Mr. Driscoll maintains. It is also possible that
Jefferies & Company, Inc., the Debtors' prepetition investment
banker, will make a claim for compensation, he adds.
In the event the Court determines that the Debtors can retain
Houlihan Lokey, the Committee believes that the terms of its
retention must be modified so that:
* the provision of the Engagement Letter providing for a
Financing Fee is stricken since no refinancing will take
place at this point in the Chapter 11 cases;
* the M&A Transaction Fee, if allowed at all, will be
reduced and modified so that any fee is directly tied to
specific value added to the Debtors' estates by Houlihan
Lokey's efforts; and
* the provision for a Restructuring Transaction Fee is
stricken as well.
Houlihan Lokey's compensation must be subject to review under
Section 330 of the Bankruptcy Code. A greater portion of any
monthly fees awarded to Houlihan Lokey should be credited
against any M&A Transaction Fee Houlihan may become entitled to
in these cases, Mr. Driscoll asserts.
(b) U.S. Trustee
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
reminds the Court that professional fees may not be awarded
unless and until the applicant shows that there is a benefit to
the estate. The fees must be reasonable and necessary, she
adds.
Ms. Stapleton notes that Houlihan Lokey's monthly fee, if
allowed, should be subject to Section 330 standards, while the
various transaction and financing fees should be disallowed
under the "improvident" standard set forth in Section 328 and
subject to Section 330.
Ms. Stapleton asserts that Houlihan Lokey should:
-- file applications in accordance with the Bankruptcy Code,
Bankruptcy Rules, and the prescripts of any
Administrative Order; and
-- submit fee applications that set forth a description of
the services performed by each of the firm's professional
on an hourly basis, the total number of hours spent each
month by the professionals, and a breakdown and
delineation of monthly expenses.
Additionally, Ms. Stapleton says, Houlihan Lokey should provide
hourly rates for its professionals.
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: Amber-Allen Not Signing with Perseus Books
--------------------------------------------------------------
Amber-Allen Publishing Inc., does not intend to enter into a
Publisher Agreement with Perseus Books LLC, Mark Felger, Esq.,
at Cozen O'Connor, in Wilmington, Delaware, discloses.
Debtor-affiliate Publishers Group West Incorporated and Amber-
Allen Publishing are parties to a marketing and distribution
agreement dated Jan. 1, 2001.
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Advanced Marketing Services Inc. and its debtor-affiliates asked
the United States 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
LLC and Client Distribution Services Inc.
Before PGW can assign its rights under the Amber-Allen
Distribution Agreement, Amber-Allen has first to sign a
publisher agreement with Perseus Books.
According to Mr. Felger, due to the exclusive arrangements
between PGW and PGW Publishers, PGW's failure to meet its
contractual obligations has placed Amber-Allen in a precarious
position. Amber-Allen has entrusted PGW with the exclusive
marketing and distribution of its titles, and is dependent on
payments from PGW as its primary source of income.
Mr. Felger asserts that compounding the difficulties experienced
by Amber-Allen and other PGW Publishers, the Debtors have been
unable to make payments for sales during the high-volume holiday
season. As of the Dec. 29, 2006 petition date, PGW owes Amber-
Allen in excess of US$1,000,000, which amount represents a
significant percentage of Amber-Allen's annual revenues.
For these reasons, Amber-Allen asks the Court to include these
provisions in the order approving the sale of PGW's rights under
its distribution agreements to Perseus Books and Client
Distribution Services:
(a) The Amber-Allen Distribution Agreement is deemed
rejected, effective immediately upon entry of the ruling
granting the PGW Sale; and
(b) Within five business days of entry of that Court ruling,
PGW will cooperate with Amber-Allen to return Amber-
Allen's books, and Amber-Allen will pay the reasonable
freight and handling charges.
Perseus Books Meets Agreement Conditions
Perseus Books informs the Court that notwithstanding the
confusion that has occurred in the publishing community based on
an "alleged, but ephemeral, competing proposal," Perseus Books
has signed agreements with publishers holding approximately 84%
of the prepetition claims of the PGW publishers, therefore,
fully satisfying the conditions of the Purchase Agreement with
PGW.
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP,
in Wilmington, Delaware, representing Perseus Books, tells Judge
Christopher S. Sontchi that with the exception of the conditions
of the Purchase Agreement requiring Court approval for the
Debtors' request to sell PGW's rights under the PGW Distribution
Agreements to Perseus and CDS, all of the other conditions to
the Agreement have been satisfied.
Mr. Brady relates that Perseus has put in place funding
sufficient to close the transaction almost immediately after the
Court's approval of the sale. Thus, if the Court approves the
transaction in accordance with the terms of the Purchase
Agreement, Perseus Books believes that with the Debtors'
anticipated cooperation, the parties should be able to close the
transaction promptly by no later than Feb. 15, 2007.
According to Mr. Brady, Perseus Books has read numerous quotes
in the press about the existence of an alleged competing bid by
National Book Network Inc.
Mr. Brady clarifies that the Debtors have not advised Perseus
Books that they have signed a purchase agreement with NBN. To
the extent the Debtors seek to delay the sale hearing to provide
NBN a further opportunity to conduct additional due diligence or
to address financing concerns, the delay will put the Perseus
Books transaction at risk, Mr. Brady continues.
While Perseus has met the conditions for the minimum number of
consenting publishers under the PGW Distribution Agreements, at
least one publisher necessary to the transaction has conditioned
its consent on Perseus Books closing the transaction not later
than Feb. 15, 2007, Mr. Brady notes. Accordingly, if, for any
reason, the transaction is not approved within that time
frame, Perseus Books cannot assure the Court that the parties
will continue to be in a position to satisfy the conditions to
closing.
Perseus reserves all of its rights, including its right to
refuse to agree to any amendments to the Purchase Agreement
requested by persons filing objections to the Debtors' request,
and its right to terminate the PGW Distribution Agreements based
on the Debtors' conduct or otherwise.
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.
APN NEWS: Posts AU$159.52 Million Net Profit for 2006, Up 7%
------------------------------------------------------------
APN News & Media Ltd posted a net profit of AU$159.52 million
(NZ$181 million) for calendar 2006, up 7% from the previous
year, ShareChat News cites a report from the New Zealand Press
Association.
The report cites APN Chief Executive Brendan Hopkins as saying
"2006 had been a challenging year, particularly in the middle
two quarters."
"For the 2007 year to date, trading is in line with expectations
and with the prior year," Mr. Hopkins noted.
Analysts have forecast earnings before interest, tax,
depreciation and amortization (EBITDA) of AU$373 million, NZPA
says.
Revenue for fiscal 2006 was down 2% to AU$1.34 billion,
ShareChat notes.
About APN News
APN News & Media Limited -- http://www.apn.com.au/-- is a major
multi-media company listed on both the Australian and New
Zealand Stock Exchanges. The Company operates in four segments:
publishing of newspapers, magazines, directories and general
printing; broadcasting of radio transmissions; outdoor, and
print.
APN's New Zealand national publishing division includes The New
Zealand Herald, The Herald on Sunday, The Aucklander, the New
Zealand Woman's Weekly, The Listener and Creme. The regional
publishing division publishes 14 regional daily newspapers in
Australia. The radio division has 12 Australian stations in key
metropolitan markets and 117 New Zealand stations broadcasting
across eight networks in all key cities and major regional
centers. The APN Online division operates job Websites in
Auckland and regional Queensland, and mapping, directory and
online auction Websites.
The Troubled Company Reporter - Asia Pacific's Distressed Bonds
Column on Jan. 30, 2007, listed APN News & Media's bond, with a
maturity date of October 31, 2008, and a 7.250% coupon, as
trading at 5.90%.
ARMOR HOLDINGS: Earns US$2.3 Bln. in Fiscal Year Ended Dec. 31
--------------------------------------------------------------
Armor Holdings Inc.'s revenue for the fourth quarter and fiscal
year ended Dec. 31, 2006, increased 77%, to US$801 million, from
US$453 million in the 2005 fourth quarter. Net income for the
fourth quarter was US$38 million versus US$38 million in 2005.
Earnings before interest, taxes, depreciation and amortization
for the fourth quarter increased by 23% to US$82 million versus
US$67 million in the 2005 quarter.
For the fiscal year ended Dec. 31, 2006, the company reported
revenue of US$2.3 billion, an increase of 44%, compared to
US$1.6 billion in 2005. Net income for 2006, was US$135 million
versus US$133 million, for 2005. EBITDA for the fiscal year
ended Dec. 31, 2006, increased by 19% to US$280 million versus
US$236 million in 2005 comparable period.
As of Dec. 31, 2006, the company's balance sheet reflected:
(i) Cash, cash equivalents, short-term investment securities
and equity-based securities of US$40 million compared to
US$500 million at Dec. 31, 2005. Cash equivalents at
Dec. 31, 2005 excluded US$29 million that was invested in
equity-based securities,
(ii) Total debt of US$767 million at Dec. 31, 2006, compared
to US$497 million at Dec. 31, 2005.
Headquartered in Jacksonville, Florida, Armor Holdings, Inc. --
http://www.armorholdings.com/-- manufactures and distributes
security products and vehicle armor systems for the law
enforcement, military, homeland security, and commercial
markets. The company has operations in Australia, England and
Brazil.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.
Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013. Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.
BIOTRACK AUSTRALIA: Taps de Vries and Tayeh as Liquidators
----------------------------------------------------------
At an extraordinary general meeting of Biotrack Australia Pty
Ltd held on Feb. 7, 2007, Riad Tayeh and Antony de Vries were
appointed as the company's joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Antony de Vries
Riad Tayeh
de Vries Tayeh
c/o Level 3, 95 Macquarie Street
Parramatta, New South Wales 2150
Australia
About BioTrack Australia
BioTrack Australia Pty Ltd measures biodiversity to deliver
objective information, decision support and environmental
management solutions in mining, forestry, agribusiness,
environmental health and restoration projects in Australia and
overseas. The company has developed technologies that rapidly
generate reliable environmental performance indicators to
demonstrate compliance, sustainability and profitable
production.
The company is located in New South Wales, Australia.
BROOKVALE CAR: Members and Creditors to Meet on March 21
--------------------------------------------------------
The members and creditors of Brookvale Car World Pty Ltd will
hold a final meeting on March 21, 2007, at 10:00 a.m., to
receive the liquidator's accounts of the company's wind-up
proceedings and property disposal exercises.
The liquidator can be reached at:
Brian Silvia
Ferrier Hodgson
GPO Box 4114
Sydney, New South Wales 2001
Australia
About Brookvale Car
Brookvale Car World Pty Ltd is a dealer of used motor vehicles.
The company is located in New South Wales, Australia.
BULLDOG STEEL: Final Meeting Slated for March 20
------------------------------------------------
A final meeting of Bulldog Steel Pty Ltd will be held on
March 20, 2007, at 10:00 a.m.
At the meeting, Liquidator Stan Traianedes will present the
report on 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 March 16, 2005.
The Liquidator can be reached at:
Stan Traianedes
Hall Chadwick
Chartered Accountants & Business Advisers
Level 12, 459 Collins Street
Melbourne, Victoria 3000
Australia
About Bulldog Steel
Bulldog Steel Pty Ltd is involved with business services.
The company is located in Victoria, Australia.
EVANS & TATE: To Perform Due Diligence on Yarraman Winery
---------------------------------------------------------
Following a series of offers and counter-offers between Evans &
Tate Limited and Yarraman Winery Inc., the companies have agreed
to the manner in which they will proceed with Yarraman's
acquisition proposal.
Accordingly, the parties agree on these conditions precedent
that must be satisfied:
1) a 21-day period of due diligence investigation by each of
Evans & Tate and Yarraman will be conducted to their
respective satisfaction. Evans & Tate's due diligence
will allow it to verify the debt and equity commitments
for Yarraman's proposal as well as Yarraman's forecasts.
Due diligence is scheduled to be completed on March 14,
2007, at 5:00 p.m.;
2) during the due diligence period, Evans & Tate has granted
Yarraman "no-shop" exclusivity, subject to Yarraman
meeting specific milestones concerning the provision of
due diligence information to Evans & Tate. Exclusivity
is also subject to Evans & Tate's right to consider any
new unsolicited offer presented to it and accept that
offer if it is superior.
The terms of the Yarraman proposal as it relates to Evans & Tate
stakeholders and the requirement for the parties to enter into a
merger implementation agreement by 5:00 p.m. WDST on March 20,
2007, remain unchanged.
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.
JACOBENA INVESTMENTS: Members to Receive Wind-Up Report
-------------------------------------------------------
The members of Jacobena Investments Pty Ltd will hold a general
meeting on March 23, 2007, at 3:00 p.m., to hear the
liquidator's report regarding the company's wind-up proceedings
and property disposal exercises.
According to the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Sept. 26, 2006.
The liquidator can be reached at:
G. S. Andrews
G. S. Andrews & Assoc
22 Drummond Street
Carlton Victoria 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
About Jacobena Investments
Jacobena Investments Pty Ltd is an investor relation company.
The company is located in Victoria, Australia.
JAMES HARDIE: Defers Release of 3rd Quarter Financial Results
-------------------------------------------------------------
James Hardie discloses that the release of its 3rd quarter and
9-months financial results scheduled for Feb. 22, 2007, in
Sydney has been deferred.
The company announced last week that it had established a
Special Matter Committee comprising all non-conflicted directors
of the Joint Board to consider the corporate governance
implications for the company arising from the allegations
contained in the civil proceedings launched by the Australian
Securities and Investments Commission and to deal with the
proceedings.
On Feb. 21, 2007, the Troubled Company Reporter - Asia Pacific
reported that Chairman Meredith Hellicar, and non-executive
directors Michael Brown and Michael Gillfillan have resigned
from the Board and Board Committees. Thus, the SMC is now
composed of all members of the Joint Board.
Deferring the release of the Financial Results will allow the
company to review whether or not the ASIC Allegations are likely
to have any impact on the company's financial statements. In
this regard, the SMC has engaged independent external advisers
to assist with this review.
When the company underwent a similar review in reference to
allegations raised during the Jackson Inquiry in 2004, it
determined that there had been no impact on the financial
statements, James Hardie recounts.
As reported in the TCR-AP on Feb. 16, 2007, the ASIC has
commenced civil penalty proceedings seeking to address alleged
breaches by certain former and current corporate entities in the
James Hardie group, and by certain former executives and certain
former and current directors. The ASIC's investigation into
possible criminal actions continues, the TCR-AP noted.
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.
JASPROP PTY: Members and Creditors to Meet on March 20
------------------------------------------------------
The members and creditors of Jasprop Pty Ltd will meet for their
final meeting on March 20, 2007, at 11:00 a.m.
At the meeting, the members and creditors will receive the final
accounts of the company's wind-up and property disposal
exercises.
The liquidator can be reached at:
Anthony R. Cant
2nd Floor, 106 Hardware Street
Melbourne 3000
Australia
About Jasprop Pty
Jasprop Pty Ltd (Autumn Australia) is a distributor of women's,
children's, and infants' clothing and accessories.
The company is located in Victoria, Australia.
JUST MANOLIOS: To Declare Final Dividend on March 14
----------------------------------------------------
Just Manolios Pty Ltd will declare a final dividend on March 14,
2007.
Accordingly, creditors are asked to prove their debts by
March 9, 2007, to be included in the distribution of dividend.
The TCR-AP has reported that the company entered wind-up
proceedings on Aug. 14, 2006.
The joint and several liquidators can be reached at:
Timothy B. Norman
Salvatore Algeri
Deloitte Touche Tohmatsu
180 Lonsdale Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9208 7000
About Just Manolios
Just Manolios Pty Ltd is a distributor of durable goods.
The company is located in Queensland, Australia.
LAMA DEVELOPMENTS: Appoints Joint and Several Liquidators
---------------------------------------------------------
On Feb. 12, 2007, Lama Developments & Constructions Pty Ltd held
an extraordinary general meeting and appointed Riad Tayeh and
Antony de Vries as joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Riad Tayeh
Antony de Vries
de Vries Tayeh
c/o Level 3, 95 Macquarie Street
Parramatta, New South Wales 2150
Australia
About Lama Developments
Lama Developments & Constructions Pty Ltd is a special trade
contractor.
The company is located in New South Wales, Australia.
LUXFER HOLDINGS: S&P Lowers Ratings to SD on Debt-to-Equity-Swap
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on U.K.-based Luxfer Holdings PLC to
'SD' from 'CC', following the completion of a recapitalization
plan, including a debt-for-equity swap. At the same time, the
ratings on Luxfer's 10.125% notes due in 2009 were lowered to
'D' from 'C' and withdrawn.
The ratings were removed from CreditWatch, where they were
placed with negative implications on Oct. 16, 2006, following an
announcement that Luxfer, a manufacturer of gas cylinders,
magnesium alloys, and zirconium chemicals, had reached an
agreement in principle with the majority of existing
bondholders for the recapitalization and debt-for-equity swap.
The rating action follows an announcement that the agreement is
now legally effective.
Under the recapitalization plan, Luxfer's remaining outstanding
GBP131 million notes were cancelled and the company is released
by noteholders from its obligation under these notes. In
exchange for these notes, existing noteholders received common
equity and new notes. New noteholders will now have a 87% stake
in the company.
"Standard & Poor's views the completion of such exchange offers
as tantamount to default because the total value of the
securities offered is less than the originally contracted
amount," said Standard & Poor's credit analyst Werner Staeblein.
"The rating on the company may be revised pending an examination
of its debt-servicing abilities. We expect to complete this
process within the next four to six weeks," said Mr. Staeblein.
Headquartered in Manchester, United Kingdom, Luxfer Holdings PLC
-- http://www.luxfer.com/-- specializes in the design and
manufacture of high-pressure aluminium gas cylinders, as well as
aluminium, zirconium, and magnesium based engineering products
for use in the aerospace, automotive, medical and general
engineering industries. Luxfer has operations in the United
Kingdom, the United States, Australia, Germany, France and the
Czech Republic.
NEURAGENIX PTY: To Declare Dividend for Priority Creditors
----------------------------------------------------------
A first and final dividend will be declared for the priority
creditors of Neuragenix Pty Ltd, on March 13, 2007.
Accordingly, creditors must prove their debts by March 12, 2007,
to be included in the company's distribution of dividend.
The liquidator can be reached at:
Rod Slattery
c/o PPB Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About Neuragenix Pty
Neuragenix Pty Ltd provides computer-programming services.
The company is located in Victoria, Australia.
P.F.O. RETAIL: Members and Creditors' Meeting Set for March 20
--------------------------------------------------------------
P.F.O. Retail Pty Ltd will hold a final meeting for its members
and creditors on March 20, 2007, at 10:30 a.m.
At the meeting, the members and creditors will receive the final
accounts of the company's wind-up proceedings and property
disposal exercises.
The liquidator can be reached at:
Anthony R. Cant
2nd Floor, 106 Hardware Street
Melbourne 3000
Australia
About P.F.O. Retail
P.F.O. Retail Pty Ltd operates miscellaneous apparel and
accessory stores.
The company is located in Victoria, Australia.
SETON HOUSE: Members to Hold Final Meeting on March 20
------------------------------------------------------
The members of Seton House Property Holdings Pty Ltd. will meet
on March 20, 2007, at 9:00 a.m., to receive the final accounts
of the company's wind-up proceedings and property disposal
exercises.
In a report by the Troubled Company Reporter - Asia Pacific, the
company was placed under voluntary wind-up on Nov. 20, 2006.
The liquidator can be reached at:
Richard G. Mansell
R. G. Mansell & Associates
Level 3, 118 Queen Street
Melbourne
Australia
About Seton House
Seton House Property Holdings Pty Ltd is a land subdivider and
developer, except for cemeteries.
The company is located in Victoria, Australia.
SURFCOAST SPA: To Declare First and Final Dividend on March 15
--------------------------------------------------------------
Surfcoast Spa Health Retreat Pty Ltd, which is subject to deed
of company arrangement, will declare a first and final dividend
on March 15, 2007.
Creditors must prove their debts by Feb. 22, 2007, to be
included in the company's distribution of dividend.
The deed administrator can be reached at:
Dean R. McVeigh
Foremans Business Advisors (Southern) Pty Ltd
Suite 8, 56-60 Bay Road
Sandringham, Victoria 3191
Australia
About Surfcoast Spa
Surfcoast Spa Health Retreat Pty Ltd is an investor relation
company.
The company is located in Victoria, Australia.
WILD IT: Ferrier Hodgson Appointed as Voluntary Administrators
--------------------------------------------------------------
Steve Sherman and Adrian Brown of Ferrier Hodgson were appointed
voluntary administrators for Wild Internet & Telecom Pty
Limited.
The Administrators, with the assistance of management and key
stakeholders, are maintaining the supply of services to all Wild
IT's customers.
The Administrators are confident that the business can be
maintained or, if necessary, sold as a going concern. As far as
possible, all key stakeholders will be kept informed about the
process as it progresses.
In accordance with the Corporations Act, a first meeting of the
companies' creditors will be held on Feb. 22, 2007. All
creditors will be advised directly of the meeting details.
About Wild IT
Wild Internet & Telecom Pty Limited -- http://www.wildit.net.au/
-- is an aggregator of telecommunications services and related
technologies. The company notes that its staff operates from 6
different locations in Sydney (Waterloo), as well as Newcastle
and interstate (Brisbane & Melbourne).
Wild Internet is current under administration.
YAMASA AUSTRALIA: Members' Final Meeting Set for March 20
---------------------------------------------------------
The members of Yamasa Australia Pty Ltd will meet on March 20,
2007, at 11:00 a.m., to hear the liquidator's report regarding
the company's wind-up proceedings and property disposal
exercises.
The Troubled Company Reporter- Asia Pacific reported that the
company entered wind-up proceedings on March 1, 2006.
The liquidator can be reached at:
Robyn Beverley McKern
McGrathNicol
Level 8, IBM Centre
60 City Road
Southbank, Victoria 3006
Australia
Telephone:(03) 9038 3137
Web site: http://www.mcgrathnicol.com
About Yamasa Australia
Yamasa Australia Pty Ltd is a distributor of prepared fresh and
frozen fish and seafoods.
The company is located in Victoria, Australia.
================================
C H I N A & H O N G K O N G
================================
BEIJING SHOUGANG: Acquires 23.62% Stake in Beijing Automotive
-------------------------------------------------------------
Beijing Shougang Co Ltd. has said it would take a 23.62% stake
in the Chinese partner of Hyundai Motor for US$136 million or
approximateley CNY1.06 billion, News International reports.
Shougang said that it would pay CNY1.06 billion, including
CNY523.88 million in cash and CNY536.24 million worth of non-
core assets, for its state parent's stake in Beijing Automotive
Investment Holdings Co Ltd., News International relates.
According to a corporate disclosure, the breakdown of the
CNY536.24 million in equity stakes will be:
* 46.00% stake in Beijing Software Technology Park
Development Company;
* 71.25% stake in a Beijing-based software technology
company;
* 13.25% stake in Sino Life Insurance Co., Ltd;
* 12.00% stake in Tsinghua Venture Capital Co., Ltd., and;
* 6.64% stake in CapitalBio Corporation.
Beijing Automotive, which has a 50-50 venture in Beijing with
the South Korean automaker -- makes Accent and Elantra sedans --
in the world's second largest automobile market, News
International notes.
* * *
Based in Beijing, China, Beijing Shougang Co., Ltd. --
http://www.sggf.com.cn/index-1.asp-- is principally engaged in
the iron and steel industry. The company mainly produces steel
wire rods, square steel billets, steel plates, chemical
products, gas, coke, pig iron and granulating slag. The company
also provides compact discs, software, color-coated boards and
building materials, through its subsidiaries. As of December 31,
2005, the Company had three major subsidiaries and three major
associates.
Xinhua Far East China Ratings gave Beijing Shougang a BB+ issuer
credit rating.
CHINA KEJIAN: Expects CNY50 Million Net Profit in 2006
------------------------------------------------------
China Kejian Company Limited announced that it expects to report
a profit of CNY50 million for the fiscal 2006, Reuters Key
Development reports.
The company reported a loss of CNY137,260,048.26 for the fiscal
2005, Reuters notes.
* * *
Headquartered in Shenzhen, Guangdong Province, China, China
Kejian Company Limited -- http://www.chinakejian.net/-- is a
mobile phone manufacturer and is also engaged in the sales of
phone accessories, after-sales service and processing of
materials.
The Troubled Company Reporter - Asia Pacific reported on Feb.
16, 2007 that the company has a capital deficiency of US$179.23
million, on total assets of US$54.71 million.
CHINA KEJIAN: Launches Share Merger Reform
------------------------------------------
China Kejian Company Limited would be implementing the company's
share merger reform, Reuters Key Development says.
According to the report, the company will use paid-in capital to
issue new shares to holders of tradable shares of record as of
Jan. 15, 2007, with every 10 tradable shares to be given eight
new shares.
The share merger reform was previously approved on Dec. 4, 2006,
by the company's shareholders.
* * *
Headquartered in Shenzhen, Guangdong Province, China, China
Kejian Company Limited -- http://www.chinakejian.net/-- is a
mobile phone manufacturer and is also engaged in the sales of
phone accessories, after-sales service and processing of
materials.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$179.23 million, on total assets of US$54.71 million.
CHINA LIAONING: Discloses Verdicts in Three Lawsuits
----------------------------------------------------
China Liaoning International Cooperation Holdings Co. Ltd. has
disclosed the verdicts in three lawsuits filed against it,
Reuters Key Development reports.
According to the report, the cases were:
(a) filed by a Haikou-based company with regards to
shareholders' equities. The company has won an appeal in
this lawsuit and was exempted from a liability of CNY1.74
million;
2) two cases filed by Nanyang Commercial Bank Ltd. with
regard
to loan arrears worth:
-- US$1,937,788.52 (including interest). The liabilities
includes a principal loan amount of US$1,149,300.00 as
well as related interest worth US$788,488.52; and
-- US$696,097.83 (including interest). The liabilities
include a principal loan amount of US$504,725.68 as
well
as related interest worth US$191,372.15.
The company is required to repay 50% of the liabilities in each
of Nanyang Commercial's lawsuits, Reuters notes.
* * *
China Liaoning International Cooperation (Group) Holdings Ltd.
is principally engaged in the steel pressing and real estate
businesses. The company's major products are steel bars and
residential properties.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$42.96 million, on total assets of US$20.12 million.
CREDIT GLORY: Members Set to Meet on March 9
--------------------------------------------
The members of Credit Glory Company Limited will hold an
extraordinary general meeting on March 9, 2007, at 10:00 a.m.,
at 1401, Level 14, Tower 1, Admiralty Centre in 18 Harcourt
Road, Hong Kong.
During the meeting, these resolutions will be passed:
-- to voluntarily wind up the company due to its inability to
pay its liabilities; and
-- nominate and appoint Cosimo Borrelli and G Jacqueline
Fangonil Walsh as the company's joint and several
liquidators.
DIGITAL NETWORK: Auditors Raise Going Concern Doubt
---------------------------------------------------
Child, van Wagoner & Bradshaw, Pllc, raised substantial doubt on
Digital Network Alliance, Inc.'s ability to continue as a going
concern after auditing the company's financial report for the
fiscal year ended Dec. 31, 2005. The auditors' cited the
company's difficulty in generating sufficient cash flow to meet
its obligations and sustain its operations as the basis for the
going concern comment.
As of Dec. 31, 2005, the company's balance sheet showed strained
liquidity with current assets of US$236,153.00 and current
liabilities US$633,788.00.
Stockholders' deficit in the company reached US$361,588.00 while
accumulated deficit amounted to US$2.66 million.
Digital Network's net loss for the fiscal year ended December
2005, aggregated to US$456,470.00 on US$2.31 million revenues.
* * *
The principal activities of the consolidated company are that of
provision of voice termination, satellite and broadband internet
services throughout the Asia Pacific region, including Hong
Kong, Singapore, Indonesia, Bangladesh, Pakistan and Mongolia.
* * *
At December 31, 2005, and 2004, Digital Network had an
accumulated deficit of US$2,657,954 and US$2,201,484,
respectively, as well as a working capital deficit of US$397,635
in 2005. The Company also realized net losses of US$456,470 and
US$2,141,081 for the years ended Dec. 31, 2005, and 2004,
respectively. Operations to date have been primarily financed
by equity transactions. As a result, the Company's future
operations are dependent upon the identification and successful
completion of permanent equity financing and ultimately, the
achievement of profitable operations.
Child, van Wagoner & Bradshaw, Pllc, raised substantial doubt on
Digital Network Alliance, Inc's ability to continue as a going
concern after auditing the company's financial report for the
fiscal year ended Dec. 31, 2005. The auditors' cited the
company's difficulty in generating sufficient cash flow to meet
its obligations and sustain its operations as the basis for the
going concern comment.
FUJIAN CHANGYUAN: Equity Shares Unfrozen; H.K. Firm Wins Bid
------------------------------------------------------------
Fujian Changyuan Investment Co., Ltd. has announced that the
company's 58.89 million shares and bonus shares, held by a
Shanghai-based company, have been unfrozen, Reuters Key
Development reports.
A Hong Kong-based investment company has won a bid for the
shares, becoming Fujian Changyuan's largest shareholder, the
report reveals.
* * *
Based in Fuzhou, Fujian Province, Fujian Changyuan Investment
Co., Ltd. is principally engaged in real estate development and
property leasing in Fuzhou. The Company has two wholly-owned
subsidiaries, involved in the real estate development and
property management businesses, respectively.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$54.04 million, on total assets of US$31.36 million.
FUJIAN CHANGYUAN: Expects CNY80-Million Net Loss in 2006
--------------------------------------------------------
Fujian Changyuan Investment Co., Ltd. expects an approximate net
loss of CNY80 million for year 2006, Reuters reports, citing the
company's disclosure.
The company also expects an approximate net loss of CNY65
million for the fourth quarter of year 2006, the report adds.
Fujian recorded a CNY156 million net loss in 2005, Reuters
notes.
* * *
Based in Fuzhou, Fujian Province, Fujian Changyuan Investment
Co., Ltd. is principally engaged in real estate development and
property leasing in Fuzhou. The Company has two wholly owned
subsidiaries, involved in the real estate development and
property management businesses, respectively.
The Troubled Company Reporter - Asia Pacific reported on Feb.
16, 2007 that the company has a capital deficiency of US$54.04
million, on total assets of US$31.36 million.
GRUPPO CONCIARIO: Members to Receive Wind-Up Accounts
-----------------------------------------------------
The members of Gruppo Conciario Veneto (Asia) Limited will meet
for their final meeting on March 19, 2007, at 10:00 a.m., at
3801 Central Plaza, 18 Harbour Road in Wanchai, Hong Kong.
At the meeting, the members will hear the liquidator's report
regarding the company's wind-up proceedings and property
disposal exercises.
GUANGDONG MEIYA: Expects a Turnaround for 2006
----------------------------------------------
Guangdong Meiya Group Co., Ltd. expects a net profit within the
range of CNY5 million to CNY15 million for fiscal 2006, as
compared to the previous year's net loss of CNY306,864,479.54,
Reuters Key Development reports.
* * *
Headquartered in Heshan, Guangdong Province, Mainland China,
Guangdong Meiya Group Co., Ltd. -- http://www.meiya.com.cn/--
is principally engaged in the manufacture and sale of blankets
and wool, under the brand name Meiya. The company also offers
Raschel blankets, polyester yarns, spandex covering yarns,
support panty hose and polyvinyl chloride (PVC) film. In
addition, the company is engaged in the provision of import and
export trading services.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$49.54 million, on total assets of US$107.16 million.
GUANGXIA (YINCHUAN): Expects CNY20-Million Net Loss in 2006
-----------------------------------------------------------
Guangxia (Yinchuan) Industry Co., Ltd. expects an approximate
net loss of CNY20 million for fiscal 2006, as compared to the
previous year's net profit of CNY6,641,792.36, Reuters Key
Development said.
* * *
Guangxia (Yinchuan) Industry Co., Ltd. --
http://www.guangxia.com.cn/-- is a grape wine manufacturer.
Through its six subsidiaries, the company is also engaged in
real estate development, medlar development and the production,
trading, research and planting of natural medicines.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$115.50 million, on total assets of US$62.19 million.
HAINAN AIRLINES: To Launch Beijing-Osaka Route in March
-------------------------------------------------------
China's Hainan Airlines Co Ltd will start operations on its
Beijing-Osaka route on March 25, Xinhuanet News reports, citing
a statement from the airline.
According to a company official, Hainan will operate return
flights five days a week in its new route.
* * *
Hainan Airlines Company Ltd's principal activities are providing
domestic aeronautic transportation to passengers and cargoes,
domestic business chartering services, aeronautic maintenance
and services, air traveling and on-board food supply. Other
activities include manufacturing aeronautic field equipment and
components, plane and landing equipment, selling of plane
ticket, cargo & other related services, providing repair
services, development of hotels and managing properties.
On Oct. 31, 2005, Xinhua Far East China Ratings gave the company
a BB+ issuer credit rating.
HITACHI ELECTRIC: Members to Hold Final Meeting on March 23
-----------------------------------------------------------
The members of Hitachi Electric Service Co. (H.K.) Limited will
hold a final general meeting on March 23, 2007, at 10:00 a.m.,
to receive the liquidator's accounts of the company's wind-up
proceedings and property disposal exercises.
The liquidator can be reached at:
Chang Kwok Ting
Certified Public Accountant
22/F, Guangdong Investment Tower
148 Connaught Road Central
Hong Kong
HSBC MEDICAL: Members' Final Meeting Set for March 16
-----------------------------------------------------
The members of HSBC Medical Insurance Limited will hold a final
meeting on March 16, 2007, at 10:00 a.m., at 8th Floor,
Gloucester Tower, The Landmark in 15 Queen's Road Central,
Hong Kong.
During the meeting, the members will receive the liquidator's
report regarding 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 Oct. 27, 2006.
LAN BAO: Expects Net Profit of Less Than CNY1 Million in 2006
-------------------------------------------------------------
Lan Bao Technology Information Co., Ltd. expects to report a net
profit of no greater than CNY1 million for the full year of
2006, according to Reuters Key Developments.
According to the report, the company cited the pay-off of
liabilities from its largest shareholder and the receipt of
government subsidy as the primary reason for this estimated
outlook.
* * *
Lan Bao Technology Information Co., Ltd. is principally engaged
in the sale of car spare parts and optoelectronic products. The
company primarily offers plastic car bumpers and plastic fuel
tanks. The company is headquartered in Changchun, Jilin
Province, Mainland China. It has four major
subsidiaries/associates.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$16.49 million, on total assets of US$191.26 million.
MOUNT CITY: Creditors Must Prove Debts by March 17
--------------------------------------------------
The creditors of Mount City Property Limited are required to
prove their debts by March 17, 2007, to be included in the
company's distribution of dividend.
The liquidator can be reached at:
Ng Hon Wai, Derek
Room 1803, Sunbeam Commercial Building
No. 469 Nathan Road
Yau Ma Tei, Kowloon
Hong Kong
SAMWELL LABELS: Members and Creditors to Receive Wind-Up Report
---------------------------------------------------------------
Samwell Labels Company Limited will hold final meetings for its
members and creditors on March 27, 2007, at 9:00 a.m. and
9:30 a.m. respectively, at Room B, 4/F., Kiu Fu Commercial
Building, 300 Lockhart Road in Wan Chai, Hong Kong.
During the meetings, the members and creditors will receive the
liquidator's accounts of the company's wind-up proceedings and
property disposal exercises.
SHANGHAI ZI JIANG: Subsidiaries Apply For Working Capital Loan
---------------------------------------------------------------
Reuters Key Development reports that Shanghai Zijiang Enterprise
Group Co Ltd's three Shanghai-based subsidiaries have applied a
working capital loan with the Shanghai Caohejing Branch of
Industrial Bank Co Ltd.
According to the report:
1) the packaging unit applied for a CNY28 million;
2) the printing arm is seeking CNY17 million; and
3) the packing subsidiary applied for CNY10 million.
The loans have a one-year term.
* * *
Shanghai, China-based Shanghai Zi jiang Enterprise Co Ltd --
http://www.zijiangqy.com/-- is principally engaged in the
production and sale of various polyethylene terephthalate (PET)
bottles and semi-finished bottles, caps, labels, aluminum-plated
paper and cardboards, polyethylene (PE) films, printing inks,
plastic containers for multi-color screen printing, bi-axially
oriented PET (BOPET) membranes and other materials. The company
is also engaged in producing food and beverages, providing
property management services and others.
On Nov. 23, 2005, Xinhua Far East China Ratings gave the company
a BB+ issuer credit rating.
SOLARICH LIMITED: Members to Meet on March 20
---------------------------------------------
Solarich Limited, which is in members' voluntary liquidation,
will hold a final meeting for its members on March 20, 2007, at
10:00 a.m., at Unit 1110, Lippo Sun Plaza, 28 Canton Road,
Tsimshatsui in Kowloon, Hong Kong.
During the meeting, the members will receive the liquidator's
report regarding the company's wind-up proceedings and property
disposal exercises.
TECK SOON: Members' Final Meeting Set for March 16
--------------------------------------------------
A final meeting will be held for the members of Teck Soon Hong
Medicine Company Limited on March 16, 2007, at 10:00 a.m., at
Room 905, 9/F., China Resources Building, 26 Harbour Road in
Wanchai, Hong Kong.
The members will receive the liquidator's report regarding the
company's wind-up proceedings during the meeting.
UNIQUE INTERNATIONAL: Annual Meetings Slated for Feb. 23
--------------------------------------------------------
The members and creditors of Unique International (Hong Kong)
Limited will hold their annual meetings on Feb. 23, 2007, at
3:00 p.m. and 3:30 p.m., respectively, at 2nd Floor, Double
Building, 22 Stanley Street in Central, Hong Kong.
At the meeting, the members and creditors will receive the final
accounts of the company's wind-up proceedings and property
disposal exercises.
YIP FAT: Creditors Must Prove Debts by March 20
-----------------------------------------------
Yip Fat Book Binding and Printing Company Limited requires its
creditors to file their proofs of debt by March 20, 2007.
Creditors who cannot prove debts by the due date will be
excluded from the company's distribution of dividend.
The liquidator can be reached at:
Yam Ming Fai
Flat I, 3/F.,
285 King's Road, North Point
Hong Kong
* Police Starts Probe on Alleged IPO Subscription Malpractices
--------------------------------------------------------------
Hong Kong police have its investigation into alleged incidents
of investors subscribing to H-share sales of mainland companies
in the second half of 2006 using multiple identities, The
Standard reports.
According to the report, the illegal practice was noticed during
the initial public offerings of Industrial and Commercial Bank
of China and Bank of China on the Hong Kong bourse.
Eager investors opted to take the illegal route to raise their
odds of share allotments amid massive over-subscriptions for the
mainland banks, the paper relates.
Sources told The Standard that investors could have used their
Hong Kong identity card numbers as well as passport numbers in
different applications, while others are suspected to have
opened multiple accounts at brokerages and banks to subscribe
for shares.
Police are scrutinizing the subscription documentation relating
to IPOs from June to October 2006, when the multibillion-dollar
offerings of BOC and ICBC came on the market, sources told The
Standard.
Commercial Crime Bureau investigators are preparing to question
some individuals, the sources added.
The Securities and Futures Commission warned that the abuse of
the system for IPO subscriptions is tantamount to fraud, the
paper says, noting that the maximum penalty is two years
imprisonment and a HK$100,000 fine.
=========
I N D I A
=========
MODI RUBBER: Posts INR44.32 Mil. Net Income in Dec. '06 Quarter
---------------------------------------------------------------
Modi Rubber Ltd recorded a net profit of INR44.32 million for
the three months ended Dec. 31, 2006, a turn around from the net
losses of INR15.85 million and INR13.52 million in the quarter
ended Sept. 30, 2006, and in the quarter ended June 30, 2006,
respectively.
Since the operation at Modi Rubber's plants remained suspended
since August 2001, its financial results for the three and nine
months ended Dec. 31, 2005, could not be compiled, the company
tells the Bombay Stock Exchange.
For the December 2006 quarter, the company recorded income
totaling INR84.61 million, almost 17 times the INR5.07-million
income gained in the immediately preceding quarter.
The company's operating expenses for the current quarter under
review total INR33.34 million, a 130% rise from the INR14.49
million incurred in the September 2006 quarter.
A copy of the company's financial results for the quarter ended
Dec. 31, 2006, is available for free at BSE at:
http://ResearchArchives.com/t/s?1a1a
Headquartered in Delhi, India, Modi Rubber Limited --
http://www.mepc.com/-- is principally involved in the
development, manufacture and distribution of automobile tires,
tubes and flaps. The company's financial performance has not
been all that impressive, as it continuously reported losses in
the past years, which eventually lead to its closure in 2001.
The financial health of its subsidiaries was also in question
with Modistone being referred to the Board of Industrial and
Financial Reconstruction due to the erosion in net worth.
Modi Rubber's equity shares were the delisted from the Uttar
Pradesh Stock Exhange, Kanpur. The delisting, effective
Feb. 22, 2006, came after news that 44% stake in the rubber
manufacturer was acquired by a group of financial institutions.
The Board for Industrial and Financial Reconstruction on May 23,
2006, declared the company as "Sick Company" and appointed IDBI
Bank has been appointed as the operating agency. BIFR directed
IDBI or the company to prepare a revival scheme.
PUNJAB NATIONAL BANK: Increases Benchmark Lending Rate to 12.25%
----------------------------------------------------------------
Punjab National Bank increased its Benchmark Prime Lending Rate
from the existing level of 11.75% p.a. to 12.25% p.a. with
effect from Feb. 15, 2007, the bank informs the Bombay Stock
Exchange in a regulatory filing.
The BPLR hike is the second this year. As reported in the
Troubled Company Reporter - Asia Pacific on Jan. 3, the bank had
already increased its BPLR early this year from 11.50% to
11.75%.
The bank also informs BSE that on Feb. 14, it opened a Capital
Market Service branch in New Delhi.
Headquartered in New Delhi, India, Punjab National Bank --
http://www.pnbindia.com/-- is a public-sector commercial bank
in India, offering banking products and services to corporate
and commercial, retail and agricultural customers. The bank has
expanded its operations to provide products and services to over
36 million customers across India through more than 4,510
branches. Its banking operations for corporate and commercial
customers include a range of products and services for large-
corporate customers, as well as for small- and middle-market
businesses and government entities. It also caters to the
financing needs of the agricultural sector and other priority
sectors, including small-scale industries. Its retail credit
products include home loans, personal loans and automobile
loans. Through its subsidiaries and joint ventures, the Bank
deals in Indian government securities and provides housing
finance and asset-management services.
Fitch Ratings gave Punjab National Bank a 'C/D' individual
rating.
RELIANCE INDUSTRIES: Board to Review Plan to Raise US$2 Billion
---------------------------------------------------------------
Reliance Industries Ltd' board of directors will hold a meeting
on Feb. 24, to review its decision to raise US$2 billion.
As previously reported in the Troubled Company Reporter - Asia
Pacific, the board, at a meeting on Nov. 9, 2006, approved the
company's plan to raise US$2 billion subject to approvals as may
be required.
The company will use the funds to finance capital expenditure in
its oil and gas exploration and production business.
At the Feb. 24 meeting, the board will also discuss raising of
further resources to finance the company's on-going capital
expenditure across several new projects through syndicate loans,
non-convertible debentures, convertible debentures, external
commercial borrowings, foreign currency convertible bonds,
preference shares, warrants or any other instruments.
Reliance Industries Ltd -- http://www.ril.com/-- is engaged
in the exploration and production sector. The company is
organized into three major business segments, which include
Exploration and Production of oil and gas; Refining and
Marketing of petroleum products, and Petrochemicals, including
the manufacturing and marketing of polymers, polyester,
polyester intermediates and chemicals. RIL's operations capture
value addition at every stage, from the production of crude oil
and gas to polyester, polymer and chemical products, and finally
to the production of textiles. RIL also has exploration and
production interests in India, Yemen and Oman. The company
operates mainly in India but has business activities and
customers in more than 100 countries around the world.
Fitch Ratings gave Reliance Industries Ltd's foreign currency
long-term debt, long-term issuer default and local currency
long-term debt BB+ ratings effective on December 15, 2005.
Moody's Investors Service gave the company 'Ba2' long-term
corporate family, issuer, and senior unsecured debt ratings
effective March 17, 2005.
RELIANCE INDUSTRIES: Seeks Government Nod to Sell Auto-LPG
----------------------------------------------------------
Reliance Industries Ltd is seeking the Indian Government's
permission to sell liquefied petroleum gas from its Jamnagar
refinery as a fuel to automobiles, the Central Chronicle
reports.
According to the news agency, Reliance is currently having a
surplus of its LPG because public-sector firms have decreased
purchases after the company increased its production. The
company reportedly sells most of its LPG to state-run retailers.
The Government is yet to take any decision, the news agency
says, citing an industry source.
Only state-run firms Indian Oil Corp, Bharat Petroleum Corp and
Hindustan Petroleum Corp are presently allowed to sell
indigenously produced LPG as a fuel for automobiles, the agency
notes. Private companies, including Reliance, have to use
imported LPG.
Reliance Industries Ltd -- http://www.ril.com/-- is engaged
in the exploration and production sector. The company is
organized into three major business segments, which include
Exploration and Production of oil and gas; Refining and
Marketing of petroleum products, and Petrochemicals, including
the manufacturing and marketing of polymers, polyester,
polyester intermediates and chemicals. RIL's operations capture
value addition at every stage, from the production of crude oil
and gas to polyester, polymer and chemical products, and finally
to the production of textiles. RIL also has exploration and
production interests in India, Yemen and Oman. The company
operates mainly in India but has business activities and
customers in more than 100 countries around the world.
Fitch Ratings gave Reliance Industries Ltd's foreign currency
long-term debt, long-term issuer default and local currency
long-term debt BB+ ratings effective on December 15, 2005.
Moody's Investors Service gave the company 'Ba2' long-term
corporate family, issuer, and senior unsecured debt ratings
effective March 17, 2005.
RELIANCE INDUSTRIES: To Cut Petrol and Diesel Retail Prices
-----------------------------------------------------------
Reliance Industries Ltd has decided to cut the retail prices of
its petroleum products, myiris.com reports, citing unnamed
sources.
The report, however, did not state when and how much the company
plans to reduce the prices.
According to myiris, private sector oil firms like Reliance are
busy coming up with strategies to compete with public sector
undertakings after the Indian Government decided to cut petrol
prices by INR2 per liter and diesel by INR1 per liter.
Reliance Industries Ltd -- http://www.ril.com/-- is engaged
in the exploration and production sector. The company is
organized into three major business segments, which include
Exploration and Production of oil and gas; Refining and
Marketing of petroleum products, and Petrochemicals, including
the manufacturing and marketing of polymers, polyester,
polyester intermediates and chemicals. RIL's operations capture
value addition at every stage, from the production of crude oil
and gas to polyester, polymer and chemical products, and finally
to the production of textiles. RIL also has exploration and
production interests in India, Yemen and Oman. The company
operates mainly in India but has business activities and
customers in more than 100 countries around the world.
Fitch Ratings gave Reliance Industries Ltd's foreign currency
long-term debt, long-term issuer default and local currency
long-term debt BB+ ratings effective on December 15, 2005.
Moody's Investors Service gave the company 'Ba2' long-term
corporate family, issuer, and senior unsecured debt ratings
effective March 17, 2005.
RPG LIFE: Members to Decide on Appointment of Managing Director
---------------------------------------------------------------
RPG Life Sciences Ltd's shareholders will consider approving, by
way of postal ballot, a special resolution pertaining to the
appointment of Arvind Vasudeva as managing director of the
company for a period of five years with effect from Aug. 25,
2006, on remuneration, terms & conditions.
The company's Board of Directors, at its meeting on Jan. 30,
2007, has appointed Ashish Bhatt, proprietor of Ashish Bhatt and
Associates, Company Secretaries, as scrutinizer for conducting
the postal ballot process in fair and transparent manner.
The Postal Ballot forms duly completed should reach the
Scrutinizer on or before the close of working hours on March 19,
2007. The Securitizer will submit his report to the Chairman of
the Company after completion of scrutiny and the results of the
Postal Ballot will be announced on March 23, 2007.
Headquartered in Mumbai, India, RPG Life Sciences Ltd --
http://www.rpglifesciences.com/-- is a full spectrum, world
class, customer focused, innovative pharmaceutical organization.
Formerly known as Searle (India) Ltd., the company develops,
manufactures and markets, for national and international
markets, a broad range of branded formulations, generics and
bulk drugs developed through fermentation and chemical synthesis
routes.
On April 17, 2003, Credit Analysis and Research Limited
downgraded the rating of the outstanding NCD program of
INR145.5 million of RPG Life Sciences rating from CARE BBB to
CARE D. The downgrade is on account of a default in debt
servicing obligations towards institutional investors.
RYERSON INC: Harbinger Capital Comments on 2006 Financials
----------------------------------------------------------
Harbinger Capital Partners Master Fund I Ltd. and Harbinger
Capital Partners Special Situations Fund L.P. has commented on
Ryerson Inc.'s fourth quarter and full year 2006 results.
Larry Clark, Managing Director of Harbinger Capital Partners
said: "There has also been no improvement to Ryerson's dismal
execution of steel service center basics -- buying and selling
steel profitably. Management's plan to fix Ryerson's serious
inventory problem is linked to a technology conversion that is
escalating in cost and will not be complete for almost two
years.
"Considering this team's long history of substantial
underperformance on the basic service center operating metrics
of inventory management and cash generation, we harbor
substantial doubts that they will deliver on this or any of
their other stated initiatives to turn this business around."
Mr. Clark added, "As [Ryerson]'s largest shareholder, we are
very disappointed with but not surprised by today's announced
fourth quarter and full year 2006 results.
"They are significantly below consensus estimates and certainly
make the case for change in [Ryerson]'s Board even more
compelling. Along with a precipitous decline in net income,
which resulted in a 17 cent per share loss, [Ryerson]'s gross
margins are lower than they have been in almost a decade.
"We found it particularly troublesome to hear CEO Neil Novich
attempt to minimize Ryerson's poor profit performance on [its]
quarterly call, when he stated that 'looking at gross margin
percent ... is just not very useful' in gauging a company's
financial health and relative performance."
Specifically, Harbinger Capital noted that, based on the Ryerson
earnings announcement and its previous public filings:
-- Despite a slight increase in fourth quarter revenue,
Ryerson's net income declined precipitously from a year-ago
profit of US$6.3 million, or 24 cents a share, to a loss of
US$4.5 million, or 17 cents a share;
-- Ryerson' came in below consensus estimates on both the top
and bottom line;
-- Tons shipped decreased 10.5% year-over-year from
820 thousand tons in fourth quarter of 2005 to 734 thousand
tons in fourth quarter of 2006;
-- Operating profit per ton decreased 55% year-over-year from
US$33 to US$15 for fourth quarter 2006;
-- EBITDA margin decreased to 1.5% in fourth quarter of 2006
from 2.7% in fourth quarter 2005;
-- Total debt increased 37.5% year-over-year from
approximately US$877.2 million to US$1.2 billion;
-- Debt to total capitalization stood at 65% at end of 2006
versus 61.6% at end of 2005;
-- LIFO adjusted inventory increased 47.4% from US$1.11
billion to US$1.63 billion, with 50% of that increase
related to increased volume, not pricing;
-- Inventory turns for fourth quarter of 2006 were 3.1x vs.
3.9x in fourth quarter of 2005;
-- The SAP conversion is now expected to cost US$80 million
instead of original estimate of US$65 million; and
-- Ryerson failed to provide meaningful financial guidance for
the next quarter or for the 2007 full-year.
"Management continues to fail to execute their business plan and
the Board is unable or unwilling to provide the appropriate
guidance to enhance value for shareholders. [Ryerson]'s cursory
dismissal of Harbinger's proposals and failure to detail what
elements of Harbinger's analysis they disagree with demonstrate
their complete disregard for shareholders concerns, especially
considering that [its] performance issues we noted in January
have only worsened. The bottom line is [its] announcement
clearly demonstrates a real need for change at the board level,"
Mr. Clark concluded.
Harbinger's Proposal
Harbinger, which owns a 9.7% stake in Ryerson, is seeking the
election of seven independent directors to replace the majority
of the existing Board of Directors of Ryerson Inc. at Ryerson's
2007 Annual Meeting of shareholders.
Harbinger's experienced and independent director nominees
include Keith E. Butler, Eugene I. Davis, Daniel W. Dienst,
Richard Kochersperger, Larry J. Liebovich, Gerald Morris, and
Allen Ritchie.
About Harbinger Capital Partners
The Harbinger Capital Partners investment team located in New
York City manages in excess of US$5 billion in capital through
two complementary strategies. Harbinger Capital Partners Master
Fund I Ltd. is focused on restructurings, liquidations, event-
driven situations, turnarounds, and capital structure arbitrage,
including both long and short positions in highly leveraged and
financially distressed companies. Harbinger Capital Partners
Special Situations Fund L.P. is focused on distressed debt
securities, special situation equities, and private loans/notes
in a predominantly long-only strategy.
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
Feb. 21, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating to 'B+' from 'BB-' on Ryerson Inc., and
lowered its senior unsecured rating to 'B-' from 'B'.
TCR-AP reported on Oct. 24, 2006, that 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.
SAURASHTRA CEMENT: Net Profit Down 51% in December 2006 Quarter
---------------------------------------------------------------
Even with increased revenues, Saurashtra Cement Ltd.'s net
profit sharply fell by 51% from INR282.17 million in the quarter
ended Dec. 31, 2005, to INR138.54 million in the corresponding
quarter in 2006.
In the fourth quarter of 2006, Saurashtra Cement recorded income
totaling INR893.04 million, a 39% increase from the
INR642.26 million booked in the December 2005 quarter.
The company's operating expenses for the December 2006 quarter
aggregated INR761.56 million, a 41% increase from the
INR539.89 million incurred in the corresponding quarter in 2005.
The sharp dip in net profit could be attributed to the interest
booked by the company. In the fourth quarter of 2006, the
company reported net interest expense of INR44.94 million
compared to net interest income of INR13.22 million in the
corresponding period in 2005. The company also booked a higher
depreciation expense in the December 2006 quarter --
INR48.18 million -- compared to the INR40.15 million in the
December 2005 quarter.
A copy of the company's financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange at http://ResearchArchives.com/t/s?1a27
The flagship company of The Mehta Group, Saurashtra Cement Ltd.
-- http://www.mehtagroup.com/scement.htm-- manufactures and
exports cement including Ordinary Portland Cement, Pozzolana
Portland Cement, Sulphate Resistant Cement and Portland Slag
Cement. SCL markets cement under the brand name "HATHI CEMENT".
The company also exports clinker.
On Dec. 9, 2006, Credit Rating Information Services of India Ltd
changed the outstanding rating of Saurashtra Cement's INR477.6-
million Non Convertible Debenture Issue from 'D' to 'Not
Meaningful.' The revision followed the company's registration
in the Board of Industrial and Financial Reconstruction as a
Sick Industrial Company pursuant to the SIC (SP) Act, 1985.
Saurashtra Cement is currently restructuring its debts. Its
proposal for restructuring under the Corporate Debt
Restructuring Mechanism was approved through the letters issued
by CDR Cell on Dec. 26, 2005, and Feb. 17, 2006.
SAURASHTRA CEMENT: Meeting of Scheme of Lenders Set for March 6
---------------------------------------------------------------
Saurashtra Cement Ltd informs the Bombay Stock Exchange that
pursuant to the order made by the High Court of Gujarat at
Ahmedabad, a meeting of the Scheme Lenders specified in the
Scheme of the Company will be held on March 6, 2007.
During the March 6 meeting, the lenders will consider and if
thought fit, approve, the arrangement embodied in the
arrangement specified in the Scheme of the Company.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 23, 2007, the company filed an application before the
Gujarat High Court under Section 391-394 of the Companies Act,
1956 on the matter of the Scheme of Arrangement and Compromise
between the company and its Scheme Lenders.
The flagship company of The Mehta Group, Saurashtra Cement Ltd.
-- http://www.mehtagroup.com/scement.htm/-- manufactures and
exports cement including Ordinary Portland Cement, Pozzolana
Portland Cement, Sulphate Resistant Cement and Portland Slag
Cement. SCL markets cement under the brand name "HATHI CEMENT".
The company also exports clinker.
On Dec. 9, 2006, Credit Rating Information Services of India Ltd
changed the outstanding rating of Saurashtra Cement's INR477.6-
million Non Convertible Debenture Issue from 'D' to 'Not
Meaningful.' The revision followed the company's registration
in the Board of Industrial and Financial Reconstruction as a
Sick Industrial Company pursuant to the SIC (SP) Act, 1985.
Saurashtra Cement is currently restructuring its debts. Its
proposal for restructuring under the Corporate Debt
Restructuring Mechanism was approved through the letters issued
by CDR Cell on Dec. 26, 2005, and Feb. 17, 2006.
VISTEON CORP: Posts US$39 Mil. Net Loss in Fourth Quarter 2006
--------------------------------------------------------------
Visteon Corp. reported a net loss of US$39 million on total
sales of US$2.84 billion for the fourth quarter 2006. For full
year 2006, Visteon reported a net loss of US$163 million on
total sales of $11.4 billion.
Visteon's balance sheet at Dec. 31, 2006, showed total assets of
US$6,938 million and total liabilities of US$6,750 million
resulting in a total shareholders' deficit of US$188 million.
The company's total shareholders' deficit as of Dec. 31, 2005,
stood at US$48 million.
Commenting on the results, Michael F. Johnston, the company's
chairman and chief executive officer, said, "[o]ur full year
results demonstrate solid progress in achieving our multi- year
improvement plan, even while facing significant production
declines from a number of our customers. We're leaner, more
efficient and better positioned from a product, customer and
footprint perspective than we were a year ago."
"This new business reflects the strength of our product
portfolio and our manufacturing and engineering footprints,
which are already among the best in the industry," said Donald
J. Stebbins, president and chief operating officer. "We also
continued to diversify our customer base which will enable us to
better withstand global production shifts."
Fourth Quarter 2006
Sales for fourth quarter 2006 totaled US$2.84 billion. Fourth
quarter 2006 product sales were US$2.7 billion, essentially
unchanged from fourth quarter 2005, as favorable currency and
increased sales in Asia were offset by lower production volumes,
principally in North America. Product sales to non-Ford
customers of US$1.62 billion rose 13 percent, or US$188 million,
over fourth quarter 2005 and represented 60 percent of total
product sales. Services sales of $131 million decreased US$33
million from the same period in 2005, reflecting the transfer of
about 1,000 Visteon salaried employees associated with two
Automotive Components Holdings (ACH) manufacturing facilities to
Ford in early 2006.
Visteon reported a net loss of US$39 million for the fourth
quarter of 2006, which included reimbursable restructuring
expenses and other qualified costs of US$71 million and a net
tax benefit of US$32 million. The net tax benefit resulted
primarily from tax effecting current year U.S. operating losses
to the extent of increases in other comprehensive income in
2006, principally attributable to favorable foreign currency
translation.
For the fourth quarter 2005, Visteon reported net income of
US$1.3 billion, which included a gain of US$1.8 billion related
to the ACH transactions, US$335 million of non-cash asset
impairments, US$34 million of restructuring expenses and other
qualified reimbursable costs. Reimbursements from the escrow
account totaled US$51 million, which included reimbursements for
qualified costs recognized in previous periods.
Cash provided by operating activities for the fourth quarter of
2006 was US$239 million, an increase of US$197 million over the
same period a year ago. Fourth quarter 2005 was adversely
impacted by the unwinding of the retained negative working
capital associated with the ACH transactions. Capital
expenditures for the fourth quarter of 2006 of US$108 million
were US$77 million lower than the same period a year ago. Free
cash flow for the fourth quarter of 2006 was positive US$131
million, compared with negative US$143 million in the same
period of 2005.
Full Year 2006
Sales for full year 2006 totaled US$11.4 billion, including
product sales of US$10.9 billion and services sales of US$547
million. Product sales to non-Ford customers totaled US$6.0
billion, or 55% of total product sales. Sales for the same
period a year ago totaled $17.0 billion, including product sales
of US$16.8 billion and services sales of US$164 million. Of the
total product sales for 2005, 62% were to Ford and 38% were to
non-Ford customers. The transfer of 23 North American
facilities on Oct. 1, 2005, as part of the ACH transactions
decreased year-over-year product sales by US$6.1 billion.
Visteon's net loss of US$163 million for full year 2006
represents an improvement of US$107 million over 2005's net loss
of US$270 million despite lower sales levels.
The net loss for full year 2006 included US$22 million of non-
cash asset impairments related to the company's restructuring
actions and an extraordinary gain of US$8 million associated
with the acquisition of a lighting facility in Mexico.
Restructuring expenses for full year 2006 were US$95 million,
all of which qualified for reimbursement from the escrow
account.
The net loss of US$270 million for full year 2005 included asset
impairments of US$1.5 billion, a US$1.8 billion gain on the ACH
transactions, and US$26 million of restructuring expenses,
partially offset by US$51 million of reimbursements from the
escrow account.
Cash provided by operating activities was US$281 million for
full year 2006 compared with US$417 million for full year 2005.
Capital expenditures of US$373 million for the full year 2006
were US$212 million lower than 2005. Free cash flow for full
year 2006 was negative US$92 million compared with negative
US$168 million for full year 2005.
Cash and Debt
As of Dec. 31, 2006, cash and equivalents totaled
US$1.057 billion as compared to US$865 million at the end of
2005. Total debt of US$2.2 billion as of Dec. 31, 2006,
compared with US$2.0 billion at the end of 2005, principally
reflecting the closing of an additional US$200 million secured
term loan under its existing term loan credit agreement in
November 2006.
Restructuring
In connection with the company's salaried reduction program
announced in October 2006, about 800 salaried positions have
been identified as of Dec. 31, 2006. Restructuring expenses in
the fourth quarter of 2006 for these salaried reductions were
US$19 million and qualified for reimbursement from the escrow
account. The company expects to complete the salaried reduction
program by the end of March 2007 and anticipates achieving per
annum savings of about US$65 million.
Visteon also recognized US$20 million of restructuring expenses
and US$8 million of pension curtailment losses during the fourth
quarter of 2006 related to the company's plan to close a U.S.
climate control manufacturing facility in 2007 in response to
lower sales volumes and cost pressures.
In addition, in 2006 the company completed 11 restructuring
actions in connection with its multi-year improvement plan.
Reimbursable restructuring expenses and other qualified costs
from the escrow account totaled US$106 million for the full year
2006.
As of Dec. 31, 2006, the escrow account had a balance of
US$319 million, US$55 million of which related to expenses
incurred in the fourth quarter of 2006, which were reimbursed
from the escrow account in February 2007.
About Visteon Corp.
Headquartered in Van Buren Township, Michigan, Visteon
Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global
automotive supplier that designs, engineers and manufactures
innovative climate, interior, electronic and lighting products
for vehicle manufacturers, and also provides a range of products
and services to aftermarket customers. With corporate offices
in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany;
the company has more than 170 facilities in 24 countries and
employs approximately 50,000 people.
With approximately 2,200 employees, Visteon has a significant
presence in India in electronics, climate (car air conditioning
and engine cooling systems), interior (instrument panel and door
trims), rotating electronics and lighting systems. Visteon
facilities in India include:
* Climate Systems India Limited,
* Visteon Automotive Systems India Private Ltd.
* Visteon Automotive Systems India Private Ltd.
* Visteon Powertrain Control Systems India Private Ltd.
* TATA Visteon Automotive Private Ltd.
* TACO Visteon Engineering Private Ltd.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 4,
2006, that Fitch Ratings rates the amended senior secured bank
debt announced by Visteon Corp. B/RR1. The Issuer Default
Rating remains at CCC, and the senior unsecured rating remains
at CCC-/RR5. The Rating Outlook is Negative.
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on Visteon to 'B' from 'B+' and its
short-term rating to 'B-3' from 'B-2'. These actions stem from
the company's weaker-than-expected earnings and cash flow
generation, caused by vehicle production cuts, inefficiencies at
several plant locations, sharply lower aftermarket product
sales, continued pressure from high raw material costs, and
several unusual items that will impact 2006 results.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: To Build WiMAX Network in Latin America
-------------------------------------------------------
Alcatel-Lucent has been awarded a major contract by Telmex, the
leading telecommunications operator in Mexico and one of the
largest in Latin America, to deploy Latin America's first
commercial universal WiMAX network, which will be deployed in
Chile.
Latin America's first WiMAX contract underscores Alcatel-
Lucent's commitment to WiMAX as a key element of its universal
broadband access strategy, and expands the company's footprint
in the region.
This new network will provide full coverage for Telmex'
corporate and residential customers in 24 major cities in Chile,
giving them one-stop access to broadband wireless applications
such as high-speed Internet, video streaming and Voice over IP
using their laptops, computers, modems or wireless handheld
terminals.
The Telmex Chile WiMAX network will comply with the IEEE
802.16e-2005 standard for fixed, nomadic and mobile usage and
will be deployed in the 3.5GHz frequency band using Alcatel-
Lucent's 9100 WiMAX end-to-end solution. The network is
scheduled to be operational in the second half of 2007.
"WiMAX will enable innovative telecommunications for operators
such as Telmex to offer their customers cutting-edge broadband
services that can be accessed from anywhere," said Olivier
Picard, President, Alcatel-Lucent's Europe & South Region.
"This contract follows Alcatel-Lucent's series of WiMAX
announcements made at 3GSM World Congress, including a
commercial WiMAX 802.16e-2005 contract in the Caribbean. At the
Congress Alcatel-Lucent was able to demonstrate live WiMAX
coverage in the 3.5GHz frequency band, a first for Spain."
Picard noted that as a WiMAX pioneer, Alcatel-Lucent is among
the world's leading WiMAX vendors, with more than 40 operators
world wide deploying its WiMAX equipment, and this premiere' in
Chile further strengthens Alcatel-Lucent's WiMAX footprint in
Latin America.
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: Inks Cooperation Deal With NXP Semiconductors
-------------------------------------------------------------
Alcatel-Lucent and NXP Semiconductors signed an agreement
strengthening their collaboration in the framework of Alcatel-
Lucent's Unlimited Mobile TV solution.
This solution will allow the delivery of broadcast mobile TV in
the S-band (2.2GHz) based on the forthcoming DVB-SH standard.
NXP's reception modules family for UHF and L-Band will be
extended to the S-Band. This will enable users to further
upgrade their existing media players, smartphones and other
portable or mobile devices to support digital Mobile TV
reception in the S-Band.
The delivery of the first release of NXP's S-Band-compatible
Radio Frequency chipset, currently under development, is
scheduled before June 2007. Both companies agreed to develop
plans to market NXP DVB-SH chipsets in line with market
expectations.
Furthermore, based on their current contribution to the
definition of the DVB-SH Mobile TV standard in the framework of
the DVB Project, both companies will collaborate to enlarge the
ecosystem associated with the forthcoming standard through
selected co-marketing activities spanning the mobile industry
and the TV broadcast industry at large.
"We are happy to collaborate with Alcatel-Lucent to accelerate
the availability of chipsets in the S-Band to enable the advent
of mass market Mobile TV," GertJan Kaat, Senior Vice-President
and General Manager, Mobile & Personal Business Unit of NXP
Semiconductors declared. "As one of the biggest customer-
focused semiconductor brands in the industry, NXP is committed
to deliver better sensory experiences for mobile communications
and to take advantage of the promising business potential
brought about by Alcatel-Lucent's solution in the S-Band."
"Alcatel-Lucent's Unlimited Mobile TV solution based on the
forthcoming DVB-SH standard is clearly gaining strong momentum.
We are happy to be in a position to profit from NXP's RF chipset
technology expertise and market-leading baseband performance,"
Olivier Coste, President of Alcatel-Lucent's mobile broadcast
activities, added. "This strengthened partnership will allow us
to further enlarge the reach of our solution onto all types of
mobile terminals, thus enriching the Mobile TV users' experience
on a global basis."
About NXP Semiconductors
NXP is a top 10-semiconductor company founded by Philips more
than 50 years ago. Headquartered in the Netherlands, the company
has 37,000 employees working in 26 countries across the world.
NXP creates semiconductors, system solutions and software that
deliver better sensory experiences in mobile phones, personal
media players, TVs, set-top boxes, identification applications,
cars and a wide range of other electronic devices.
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: Inks Partnership Deal with Orange Business
----------------------------------------------------------
Alcatel-Lucent and Orange Business Services inked a global
agreement that enables enterprises around the world to harness
the power and economics of IP-based communications solutions as
part of an overall network and business transformation effort.
With mainstream adoption of IP technologies underway today,
industries are changing the way they use communications to
competitively transform their businesses. Together, Orange and
Alcatel-Lucent are partnering to help drive this transformation.
Both companies will provide enterprises with a comprehensive set
of end-to-end business critical solutions, supported from design
to global implementation, which will enable businesses to
utilize the new technologies available to drive new business
opportunities, improve employee productivity and deliver
enhanced customer service.
Key services emphasized in this agreement include:
* Business telephony services
* IP VPNs
* Fixed-mobile convergence solutions
* Unified Communication software applications
* Contact centers with multimedia traffic processing
Customers of Orange will have the choice to deploy end-to-end
Alcatel-Lucent technologies as either a traditional network that
is owned and operated by the enterprise, or as part of a Managed
Communications Services model where the technologies are owned
and managed by Orange as part of an innovative service offering.
About Orange Business Services
Orange Business Services represents the business communications
solutions and services provided by the France Telecom Group as
of June 1, 2006. They were previously sold under the France
Telecom, Orange, Equant, Etrali, Almerys, EGT, Expertel
Consulting, France Telecom Intelmatique, SETIB and Solicia
brands. The offers include converged voice, data and mobile
services as well as IT expertise and managed services, all
designed to transform business processes and improve
productivity. Orange Business Services is present in 166
countries and territories and serves customers in 220.
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: Net Income Down 34% to IDR1.32 Tril. in 2006
----------------------------------------------------------
PT Bank Danamon Indonesia Tbk disclosed annual financial results
for the period ended Dec. 31, 2006.
The company recorded a net income of IDR1.32 trillion for the
year ended Dec. 31, 2006, 33.83% lower compared to the IDR2-
trillion income booked in the year ended Dec. 31, 2005.
The bank's fully diluted earnings per share decreased by 34.15%
from the IDR$402.590 in 2005, to IDR265.070 in 2006.
Bank Danamon's financial report for the year ended Dec. 31,
2006, in Indonesia, is available at the Surabaya Stock Exchange
site at http://http://www.bes.co.id/
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 NEGARA: Delays US$150 Million Bond Sale, Bisnis Reports
------------------------------------------------------------
PT Bank Negara Indonesia (Persero) Tbk delayed a plan to sell
US$150 million of bonds, as it will sell shares in a rights
offer, Bloomberg News says citing a report by Bisnis Indonesia.
The subordinated bonds will be sold in 2008, the local newspaper
says, citing the bank's President Director Sigit Pramono.
Bank Negara has plans to acquire a bank to be converted into a
unit that follows Islamic principles, Bloomberg notes.
Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id/-- is a financial
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature. The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore. The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
a securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 6, 2007, that Moody's Investors Service revised the outlook
from positive to stable the ratings of PT Bank Negara
Indonesia's senior debt and foreign currency long-term deposit
ratings to positive from stable.
The bank's short-term deposit rating and long-term subordinated
debt rating continue to carry the rating agency's stable outlook
and the bank financial strength rating a positive outlook.
The bank's detailed ratings are:
-- senior/subordinated debt of Ba3/Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E.
TCR-AP reported on Feb. 1, 2007, that Fitch Ratings has affirmed
all the ratings of PT Bank Negara Indonesia (Persero) Tbk as
follows:
* Long-term foreign and local currency Issuer Default ratings
'BB-',
* Short-term rating 'B',
* National Long-term rating 'A+(idn)',
* Individual 'D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
Standard & Poor's Ratings Services revised the outlook on the
local currency counterparty credit rating on Bank Negara to
stable from positive. At the same time, Standard & Poor's
affirmed its foreign and local currency ratings on BNI
(B+/Stable/B).
BANK NISP: 2006 Net Income Up 16% to IDR237 Billion
---------------------------------------------------
PT Bank NISP Tbk disclosed annual financial results for the
period ended Dec. 31, 2006.
The company recorded a net income of IDR237 billion for the year
ended Dec. 31, 2006, 15.64% higher compared to the net income of
IDR2.04 billion for the year ended Dec. 31, 2005.
PT Bank NISP Tbk -- http://www.banknisp.com/english/index.html
-- categorizes its products into two groups: Funding, which
consists of savings and deposits, and Lending, consisting of
working capital loans, investment loans and consumer loans. In
addition, the bank has three service categories: Individual,
Corporate and Others. As of January 18, 2006, the bank has 29
branch offices, 101 representative offices and 26 cash offices
throughout the country. The Bank is headquartered in Jakarta,
Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb 01, 2007, that Fitch Ratings has affirmed all the ratings of
PT Bank NISP Tbk as follows:
* Long-term foreign and local currency Issuer Default ratings
'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '3'.
The Outlook for the ratings was revised to Positive from Stable.
CORUS GROUP: Tata Steel Hikes Equity Share Capital to 21.98%
------------------------------------------------------------
Tata Steel U.K. Ltd., the indirect wholly owned subsidiary of
Tata Steel Ltd., acquired a 7,136,094 equity share capital,
representing 0.8% stake, in Corus Group Plc at 601.75 pence for
an aggregate of GBP42.94 million (US$84.38 million), according
to published reports.
Following the transaction, the subsidiary now holds 207,092,046
equity share capital or 21.98% stake in the company.
Tata Steel had won an auction for Corus over Companhia
Siderurgica Nacional after offering investors 608 pence per
share in cash, or GBP5.7 billion (US$11.3 billion).
About Tata Steel
Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the disclosure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review.
CORUS GROUP: Tata Group to Launch Bond Issue In Overseas Markets
----------------------------------------------------------------
Tata Steel U.K. Ltd. and its holding companies intend to launch
a bond issue in the overseas markets aimed at raising US$2.6
billion to US$3 billion, Reuters reports citing the Mint
business paper as its source.
According to the paper, bond proceeds will be used to repay a
loan obtained for the acquisition of Corus Group plc.
Tata Steel had won an auction for Corus over Companhia
Siderurgica Nacional after offering investors 608 pence per
share in cash, or GBP5.7 billion (US$11.3 billion).
About Tata Steel
Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'\
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the disclosure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review.
FREEPORT-MCMORAN: EU Approves Purchase of Phelps Dodge
------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. obtained the European
Commission's permission to buy Phelps Dodge Corp. for US$25.9
billion in cash and stock, Reuters reports.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Freeport-McMoRan agreed to buy Phelps Dodge for
about US$26 billion in cash and stock to create the world's
largest publicly traded copper company.
TCR-AP points outs that Freeport will pay US$88 plus 0.67 share
of its stock for each Phelps share, which, based on trading
levels, was worth about US$129.31 per share.
Reuters notes that Freeport, in all is paying US$18 billion in
cash and US$7.9 billion in shares.
The acquisition is subject to Freeport and Phelps shareholder
approval, regulatory approvals and customary closing conditions,
TCR-AP relates.
Reuters recounts that the combined company would have produced a
net 3.1 billion pounds of copper and a net 1.7 million ounces of
gold last year and that combined reserves would have totaled 75
billion pounds of copper and 41 million ounces of gold.
For the 12-month period ended Sept. 30, 2006, the companies had
combined revenues of US$16.6 billion, Reuters notes.
About Phelps Dodge
Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.
Phelps Dodge has operations in Venezuela, Thailand, China, the
Philippines and Japan, among others.
* * *
On June 26, 2006, Moody's Investors Services has placed Phelps
Dodge's Ba1 junior preferred shelf rating in CreditWatch for a
possible downgrade.
About Freeport-McMoRan
Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper
& Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries,
engages in the exploration, mining, and production of copper,
gold, and silver. The company has operations in Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Nov. 24, 2006, that Standard & Poor's placed its 'BB-' corporate
credit and its other ratings on Freeport-McMoRan on
CreditWatch with positive implications and its 'BBB' corporate
credit and its other ratings on Phelps Dodge Corp. on
CreditWatch with negative implications. The actions followed
the report that Freeport entered into an agreement with Phelps
Dodge to acquire Phelps in a transaction valued at US$25.9
billion.
The TCR-AP stated on Oct. 18, 2006, Moody's Investors Service
confirmed Freeport-McMoran's Ba3 Corporate Family Rating in
connection with the rating agency's implementation of its ne
Probability-of-Default and Loss-Given-Default rating
methodology.
Dominion Bond Rating Service confirmed in April the rating of
Freeport-McMoRan Copper & Gold Inc. at BB (low). DBRS said the
trend is Stable.
GOODYEAR TIRE: Fourth Qtr. 2006 Loss Widens to US$358 Million
-------------------------------------------------------------
Goodyear Tire & Rubber Co reported a wider quarterly loss due to
a nearly three-month strike that cost the company US$367
million, Reuters reports.
Goodyear's fourth-quarter net loss widened to US$358 million, or
US$2.02 per share, from US$51 million, or 29 cents per share, a
year earlier, when Goodyear took a loss on asset sales, the
report recounts.
The report explains that excluding one-time items -- a loss of
US$2.07 per share from the strike, restructuring charges of
US$1.03 per share, and a gain of 86 cents per share related to a
tax matter -- Goodyear earned 22 cents per share in the latest
quarter.
J.P. Morgan analyst Himanshu Patel expects a modestly negative
stock reaction to the results due to, in part, a softer
international pricing environment, Reuters relates.
Goodyear executives see a possible increase in the company's
target for cost cuts in its multiyear restructuring plan
announced in 2005 after making substantial progress in 2006,
Reuters states.
Akron, Ohio-based Goodyear's revenue rose less than 1% to
US$4.98 billion, which excludes businesses sold from the year-
earlier revenue, the rise was 2%, the report discloses.
The report adds that for most of the quarter, about 15,000
members of the United Steelworkers union were on strike at
Goodyear plants in the United States and Canada.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,and
Thailand. Goodyear employs more than 80,000 people worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2007, that Moody's Investors Service affirmed Goodyear
Tire & Rubber Company's Corporate Family Rating of B1. Ratings
on Goodyear's existing secured and unsecured obligations were
also affirmed as was the company's Speculative Grade Liquidity
rating of SGL-2. The outlook has reverted to stable from
negative.
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company and removed the ratings from Rating Watch
Negative. The ratings were placed on Rating Watch Negative on
Oct. 18, 2006, when the company announced a US$975 million draw
down of its bank revolver. Goodyear's debt and recovery ratings
are as follows:
-- Issuer Default Rating (IDR) 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';and
-- Senior unsecured debt 'CCC+/RR6'.
The TCR-AP also reported on Jan. 5, 2007, that Standard & Poor's
Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on
Oct. 16, 2006, as a result of the labor dispute at several of
the company's North American plants.
HILTON HOTELS: Creates Two New Executive Management Positions
-------------------------------------------------------------
Hilton Hotels Corporation revealed the creation of two new
executive management positions and the promotions of two
distinguished executives to fill these roles. Kenneth Smith has
been appointed executive vice president - Americas Operations,
Sales & Revenue Management, and Ernest Wooden has been appointed
executive vice president - Brand Management. Kenneth Smith is
based in Dallas, Texas, and Ernest Wooden is based in the Hilton
Hotels Corporation World Headquarters in Beverly Hills. Both
report to Tom Keltner, executive vice president - Hilton Hotels
Corporation and chief executive officer - Americas & Global
Brands.
"As proven executives with world-class leadership ability and a
thorough working knowledge of our business and our brands, Ken
Smith and Ernie Wooden are ideally suited to excel in these
positions which are designed to effectively manage our
operations and our brands," said Keltner.
In his new role, Smith, a 38-year veteran of Hilton, will
oversee the United States, Canada, the Caribbean, Central and
South America to ensure optimal alignment between hotel
operations and the sales and revenue management functions for
the company's owned and managed properties of all brands. Prior
to being promoted to his current position, he served as senior
vice president of Operations, where he oversaw the full-service
properties in the Central U.S., Caribbean, Mexico & Latin
America as well as limited service properties in the United
States. Smith first joined Hilton in 1969 as a busboy while
working his way through college. Since then Smith served in a
number of property-level management positions, including general
manager roles at the DeSoto Hilton in Savannah, the Brown Hilton
Hotel in Louisville, the Hilton Chicago O'Hare, and Hilton
Chicago. Smith is a graduate of the University of St. Thomas in
St. Paul, Minnesota, the Cambridge International Program in
Cambridge, UK and received his MBA from Lake Forest Graduate
School of Management in Chicago.
As Hilton Hotels Corporation continues to develop and expand its
brand offerings around the globe, the company's brand managers,
Hilton's best in class Hilton Honors(R) organization as well as
the Customer, Quality and Performance Metrics group will now
report to Wooden. A 35-year veteran of the hospitality
industry, Wooden most recently served as senior vice president
of Hotel Operations - Western Region, where he was responsible
for the company's hotel operations in the Western United States
and the Hawaiian Islands. Wooden is uniquely qualified in his
role, having risen through the ranks of Sheraton, Doubletree,
Omni and Hilton Hotels with hands-on operating experience
spanning single, multi-property and mixed-use hotel
developments. Wooden holds a Bachelor of Science degree and is
a candidate for Master of Science in Management from Thomas
Edison State College.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.
* * *
The Troubled Company Reporter reported on Feb. 6, 2007, that
Standard & Poor's Ratings Services placed its ratings on Hilton
Hotels Corp., including the 'BB' corporate credit rating, on
CreditWatch with positive implications.
TCR-AP reported on Feb. 2, 2007, that Fitch Ratings has upgraded
the debt ratings for Hilton Hotels as follows:
--Issuer Default Rating to 'BB+' from 'BB';
--Senior credit facility to 'BB+' from 'BB'; and
--Senior notes to 'BB+' from 'BB'.
The ratings apply to its US$5.75 billion credit facility and
roughly US$2.6 billion of its senior notes. Fitch has also
revised Hilton's Rating Outlook to Positive from Stable.
Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.
Additionally, Moody's revised and held its probability-of
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior Notes
with an average
rate of 8.1%
due 2007 - 2031 Ba2 Ba2 LGD4 53%
Chilean inflation
indexed note
effective rate
7.65% due 2009 Ba2 Ba2 LGD4 53%
3.375%
Contingently
convertible
senior notes
due 2023 Ba2 Ba2 LGD4 53%
Minimum Leases
Commitments Ba2 Ba2 LGD4 53%
Term Loan A
at adjustable
rates due 2011 Ba2 Ba2 LGD4 53%
Term Loan B
at adjustable
rates due 2013 Ba2 Ba2 LGD4 53%
Revolving loans
at adjustable
rates, due 2011 Ba2 Ba2 LGD4 53%
Senior unsecured
debt shelf Ba2 Ba2 LGD4 53%
Subordinate debt
Shelf Ba3 B1 LGD6 97%
Preferred B1 B1 LGD6 97%
INDOSAT: Selects Alcatel-Lucent to Deliver Carrier Ethernet
-----------------------------------------------------------
PT Indosat Tbk has selected Alcatel-Lucent to supply it with an
IP/MPLS portfolio to deliver Carrier Ethernet services including
Virtual Private LAN Services in Indonesia's main cities,
Telegeography reports.
According to the report, Alcatel-Lucent's infrastructure will
enable Indosat to deliver a consistent level of business
services in Southeast Asia market, supporting triple-play
services and the convergence of the operator's fixed and mobile
networks.
The report notes that the new VPLS service was introduced for
corporate customers in Jakarta, Surabaya, Bandung, Medan and
Semarang at the end of January.
Indosat says that the new network offers businesses the benefits
of advanced virtual private network technology to operate highly
reliable voice, video and data services across an IP/MPLS-based
infrastructure, the report points out.
In the initial phase, Indosat will deploy the Alcatel-Lucent
7750 Service Router, Alcatel-Lucent 7450 Ethernet Service Switch
and Alcatel-Lucent 7250 Service Access Switch. Indosat has also
commissioned Alcatel-Lucent for consulting services, the report
adds.
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.
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company is a provider of international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has affirmed the Ba1 local
currency corporate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat Finance
Company B.V. and Indosat International Finance Company B.V. The
bonds are irrevocably and unconditionally guaranteed by Indosat.
The outlooks for the ratings remain positive.
A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'. The outlook on the ratings is
stable.
METSO OYJ: Paper Unit Launches Rebuilt Pilot Paper Machine
----------------------------------------------------------
Metso Paper, a unit of Metso Oyj, inaugurated the rebuilt pilot
paper machine PM 2 on Feb. 13, at the Rautpohja Paper Technology
Center in Jyvaskyla, Finland.
The PM 2 was successfully started up after the rebuild in
September 2006. The rebuild investment included a new press
section, modernization of the dryer section and several other
improvements throughout the whole process line. The pilot PM 2
now has a design speed of 3,000 m/min (180 km/h).
The rebuilt pilot paper machine features a closed draw press
section, designed with a totally new felt change system, with
which the felts can be pulled into the press with a new-type of
felt insertion equipment. Also ergonomics and safety have been
raised to a new level with a cross machine access way and other
operator-friendly solutions.
Another new feature is an impingement-drying unit, which reduces
the number of dryer cylinders substantially. Its drying capacity
enables a noticeable speed increase. It is also an excellent
tool for quality and runnability control.
In total, Metso Paper has 12 technology centers covering paper,
board and tissue making as well as all commercial pulping
processes. The Rautpohja pilot PM 2 is one of the three pilot
paper machines. In addition, Metso Paper has a pilot board
machine and two pilot tissue machines, as well as an extensive
range of surface treatment pilot equipment for paper finishing.
With these pilot facilities, any kind of raw material can be
tested from fiber to print.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
TELKOM: Wants to Team Up with CGWIC for Satellite Acquisition
-------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk is exploring the possibility of
teaming up with the China Great Wall Industry Corporation in
acquiring a satellite to replace its Telkom-1 satellite, Antara
News reports.
According to the report, PT Telkom President Director Arwin
Rasyid and his CGWI counterpart signed a memorandum of
understanding on the cooperation in Beijing on Feb. 16, 2007.
The report notes that under the MoU, studies would be made on
the possibility of the Chinese company providing services for
the design, fabrication, testing and launching of the proposed
satellite to replace the Telkom-1 satellite, which will expire
in 2014.
The MoU also said China Great was likely not only to build
telecommunication but also navigation and climate satellites for
Indonesia in the future, the report relates.
Telkom and CGWIC reportedly plans to also set up a joint working
team to determine the technical specifications and designs of
the telecommunication satellite and various other satellites.
So far, PT Telkom has 2 satellites in orbit, namely Telkom-1 and
Telkom-2. Telkom-1 was launched on August 13, 1999 and Telkom-2
on November 17, 2005, the report adds.
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
Jan. 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
=========
DELPHI CORP: Signs Non-Binding Term Sheet with Renco Group
----------------------------------------------------------
Delphi Corporation has signed a non-binding term sheet with The
Renco Group, Inc. for the sale of its Interiors and Closures
business.
This non-binding term sheet signals the initiation of a
comprehensive due diligence period, including consultations with
customers and unions, aimed at the development and execution of
a master sale and purchase agreement. The sale of Delphi's
Interiors and Closures business is subject to the approval of
the U.S. Bankruptcy Court for the Southern District of New York
and other constituencies in the U.S. and abroad, and waiver of
any "no sale" clause in any union collective bargaining
agreements.
Delphi's Interior and Closures business includes products such
as instrument panels, consoles, cockpits, door modules and latch
systems. The business serves a number of Original Equipment
Manufacturers through a global footprint that includes
manufacturing operations in the United States, Mexico, Austria,
Germany, China and Korea and generates annual revenue of
approximately US$1.3 billion.
Details of the negotiations between Delphi and The Renco Group
will remain confidential until a master sale and purchase
agreement has been negotiated, signed and filed with the U.S.
Bankruptcy Court.
Any sale of the Interior and Closures business would be done in
coordination with Delphi's customers, unions and other
stakeholders to carefully manage the transition of the business
and would be subject to the completion of the consultation
process with the relevant works councils in Europe. Also, the
disposition of any U.S. operations would be accomplished in
accordance with the requirements of the U.S. Bankruptcy Court.
About The Renco Group
The Renco Group, Inc. is a private diversified investment
holdings company with a broad portfolio of operating companies
and financial investments. Renco holds interests in number of
companies in the mining, automotive, magnesium, steel, metals
fabrication and material handling industries. Operating
companies in which Renco holds an interest include AM General,
US Magnesium, Doe Run Resources, Unarco Material Handling and
Baron Drawn Steel. Renco generates in excess of US$3.5 billion
in revenue while employing over 12,000 people worldwide.
About Delphi Corporation
Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology. The company's technology and
products are present in more than 75 million vehicles on the
road worldwide. Delphi has regional headquarters in Japan,
Brazil and France.
The Company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.
FORD MOTOR: To Miss February and March "Way Forward" Target
-----------------------------------------------------------
Ford Motor Co. expects to miss some points in its "Way Forward"
restructuring plan, according to an internal report titled
"Report Card: Ford North America," various news agencies report.
The reports said that although Ford hit the US$400 million
material cost savings in January, the company would likely miss
its target for February and March. Also, Ford missed its
U.S. retail sales goal in January for Focus by 10,600 vehicles.
Ford is also likely to miss its market share goals for February
and March, news agencies add.
According to the reports, about 15,000 employees were surveyed,
of which about half voted confidence in the restructuring plan,
The "Way Forward" is Ford's restructuring plan that includes
closing plants and laying off up to 45,000 employees.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
The company also has operations in Japan.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.
The TCR reported on Dec. 7, 2006, Fitch Ratings downgraded Ford
Motor Company's senior unsecured ratings to 'B-/RR5' from
'B/RR4' due to the increase in size of both the secured
facilities and the senior unsecured convertible notes being
offered.
On Dec. 5, 2006, Moody's Investors Service assigned a Caa1,
LGD4, 62% rating to Ford Motor Company's US$3 billion of senior
convertible notes due 2036.
JAPAN AIRLINES: Proposes Changes To Board and Executive Officers
----------------------------------------------------------------
The Japan Airlines Group revealed changes to the boards of
directors and executive officers of Japan Airlines Corporation
(the JAL Group holding company) and Japan Airlines
International, the Group's main operating airline.
The changes announced today are effective April 1, although some
of them are subject to the approval of the annual general
meeting of shareholders in late June 2007, when the proposed new
board members can be formally elected. New executive officers
do not have board voting rights and their appointments do not
require shareholder approval.
Haruka Nishimatsu remains as President and CEO of the JAL
Corporation and JAL International. Toshiyuki Shinmachi stays as
chairman of both companies.
A new senior appointment is the promotion of Katsuhiko Nawano to
the post of executive vice president of both JAL Corporation and
JAL International from managing director, cabin attendants
division. He will have representative power and in his new post
will act as deputy to Mr. Nishimatsu.
JAL Group's announcement covers 14 board members and executive
officers who are retiring on March 31, and 15 new appointments
of executive officers.
Among the new executive officers appointed effective Apr. 1,
2007, is Yoriko Nagata, who will be deputy general manager of
cabin crew. Ms. Nagata is JAL's first female executive officer
appointee.
To further enhance service quality, such as on-time performance,
comfort and convenience, while further increasing safety
standards, JAL is establishing a new Customer Satisfaction
Promotion Division directly under the President, parallel to the
Corporate Safety Division which was established in FY2006.
This new division will be headed by a board member acting as
General Manager and Senior Vice President.
JAL will also strengthen sales to corporate clients with an
improved sales organization to maximize revenue under a new
board member.
Overall the number of full-time board members will go down from
15 to 13. Also, by promoting generation change, and slimmer and
younger organization, JAL's top management aims to establish a
system to respond faster to firmly promote reform.
External board members and external corporate auditors will be
increased by one each and will be announced later.
Another change affecting the JAL board will be the discontinuing
of individual offices for individual board members at JAL's
Tokyo Head Office. Senior vice presidents and above, including
the President, will work in the same open-plan office. The
purpose is to improve information sharing among board members,
promote speedy management decision-making and create an open
climate.
Board Members & Executive Officers Retiring Mar. 31, 2007:
a) JAL Corporation & JAL International
(from April 1 they will be JAL advisors)
Board members
-- Katsuyuki Arai, managing director cabin attendants
-- Fumio Tsuchiya, managing director corporate
communications
-- Yutaka Yoshino, senior vice president cargo
-- Osamu Sasahara senior vice president engineering and
maintenance
Executive officers
-- Toshiro Moriya, corporate communications and executive
office
-- Shinobu Kobayashi
b) JAL International Only
Board members
-- Shoji Fukai, senior vice president, flight operations
Senior executive officers
-- Mikihiro Shishido, general manager Tokyo and East Japan
-- Chikara Sugimoto, international affairs
Executive officers
-- Masato Nishigori, vice president Haneda Airport
-- Masao Iguchi, deputy general manager, passenger
marketing (international)
-- Toshinao Yoshida, international affairs
New Appointees - JAL Corporation & JAL International:
a) JAL Corporation & JAL International
New board members (senior vice presidents) subject to
confirmation at AGM.
-- Takao Fukuchi (executive officer, cargo and mail from
April 1, post AGM senior vice president, cargo and
mail)
-- Shigemi Kurosu (executive officer, cabin crew
department from April 1, post AGM senior vice
president, cabin crew department).
New executive officers - effective April 1, 2007
-- Muneyuki Mitsui, IT service planning director
-- Tadao Sakai, deputy general manager, flight safety
division
-- Ichiro Morii, deputy general manager, sales planning.
Investor relations director
b) JAL International Only
New Executive officers - effective Apr. 1, 2007
-- Katsushige Takemura, deputy general manager, flight
operations
-- Tetsuo Ohta, deputy general manager, engineering and
maintenance
-- Toshio Takahashi, deputy general manager, flight
operations planning
-- Teruo Sugawa, deputy general manager airport division,
VP Haneda Airport
-- Katsuaki Suzuki, deputy general manager passenger
marketing, planning
-- Yoriko Nagata, deputy general manager, cabin crew
department
-- Hisao Takuchi, CEO Americas
-- Tsutomu Ando, international affairs
-- Yasushi Torigoe, deputy general manager, passenger
sales
-- Eiichi Yamaguchi, general manager Tokyo and East Japan
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.
MILLIPORE CORP: Earns US$97 Million in Year Ended Dec. 31, 2006
---------------------------------------------------------------
In its annual and quarterly financial statements for period
ended Dec. 31, 2006, Millipore Corp. reported US$97 million of
net income on US$1.3 billion of net sales for the year ended
Dec. 31, 2006, compared to a net income of US$80.2 million on
net sales of US$991 million for 2005.
Millipore Corp. also earned US$18.5 million in net income on net
sales of US$383 million for the three-month period ended
Dec. 31, 2006, compared to net income of US$1.1 million on net
sales of US$256 million in the same prior year period.
Changes in foreign exchange rates during the quarter increased
total revenue growth by 4%. Excluding currency rate changes and
revenues from the company's acquisition of Serologicals,
Millipore's total revenue growth in the fourth quarter was 9%,
which included 12% growth in its Bioscience Division and 7%
growth in its Bioprocess Division.
For the full year, revenues grew 27% totaling US$1.26 billion.
Changes in foreign exchange rates increased total revenue growth
by 1% during 2006. Excluding currency rate changes and revenues
from the company's acquisition, the company's total revenue
growth in 2006 was 11%. This performance included 10% growth
from Millipore's Bioscience Division and 12% growth from its
Bioprocess Division.
"For the second year in a row we generated attractive revenue
and earnings growth," said Martin Madaus, Chairman & CEO of
Millipore. "The transformational changes we have implemented
are driving higher-levels of performance throughout the
organization and we have greatly expanded our future market
opportunities through the acquisitions we completed in 2006.
In the last two years, we have significantly improved our
execution and increased the growth of both of our divisions,
particularly our Bioscience Division which has doubled its
adjusted currency growth rate since 2004. I am very proud of
our employees who have delivered these great results, even while
acquiring and integrating four companies during this time."
"In 2006, we successfully executed on several initiatives to
increase our profitability, which enabled us to grow our non-
GAAP earnings per share by 18%. These initiatives included
reducing our manufacturing costs and increasing the efficiency
of our supply chain, driving increased leverage from our SG&A
investments, and completing accretive acquisitions. As we move
forward, we expect the balanced growth profile between both
divisions will enable us to maximize our growth and
profitability. Our focus this year will be on driving returns
and generating cash flow from the substantial investments we
made in 2006."
About Millipore
Headquartered in Billerica, Massachusetts, Millipore Corporation
-- http://www.millipore.com/-- is a bioprocess and bioscience
products and services company. The Bioprocess division offers
solutions that optimize development and manufacturing of
biologics. The Bioscience division provides high performance
products and application insights that improve laboratory
productivity. The company has worldwide offices in Japan,
Austria, and Argentina, among others.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 13, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology, the rating agency
confirmed its Ba1 Corporate Family Rating for Millipore
Corporation. Additionally, Moody's revised 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
---------- ------- ------- ------ ----------
Unsecured Notes
due 2007 Ba2 Ba2 LGD5 72%
Senior Unsecured
EURO-Denominated
Notes due 2016 Ba2 Ba2 LGD5 72%
MITSUBISHI MATERIALS: JCR Ups Long-Term Rating To BBB+ From BBB
---------------------------------------------------------------
Japan Credit Rating Agency Ltd. upgraded its long-term rating
for Mitsubishi Materials Corp. from BBB to BBB+. The proceeds
from the sale of bonds are expected to be used for funds to
repay the borrowings.
Issue : Bonds No. 20
Amount : JPY15 billion
Issue Date : Feb. 28, 2007
Due Date : Feb. 28, 2013
Coupon : 1.82%
Rating : BBB+
Covenants : Negative Pledge
Commissioner : No
About Mitsubishi Materials
Headquartered in Tokyo, Mitsubishi Materials Corp. --
http://www.mmc.co.jp/english/-- was formed on Dec. 21, 1990,
from the merger of two firms, Mitsubishi Metal Mining Company
Limited and Mitsubishi Cement Limited. The company's principal
activity is the manufacture of metals and ceramics.
The company has international offices in the United States,
Canada, Brazil, Chile, France, Italy, Indonesia and the rest of
Asia.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Standard & Poor's Ratings Services revised
to positive from stable the outlook on its 'BB' long-term
corporate credit rating on Mitsubishi Materials Corp. based on
the company's increasing level and stability of cash flows, and
expectations for further improvement in the company's financial
profile.
SALLY BEAUTY: Acquires Salon Services Equity for US$59 Million
--------------------------------------------------------------
Sally Beauty Holdings Inc. has completed the acquisition of the
stock of Chapelton 21 Limited, a private company incorporated in
Scotland, conducting its business through direct and indirect
subsidiaries including Salon Services (Hair and Beauty Supplies)
Ltd. The company acquired the equity of Salon Services for
approximately GBP30 million, or approximately US$59 million,
subject to certain adjustments.
The company's acquisition of Salon Services includes over 80
stores with a combination of company-owned and franchised
locations in the United Kingdom, Ireland, Germany, and Spain.
The Salon Services business consists of stores, franchises and a
mail order catalog offering over 9,000 products. Total revenues
for Salon Services were approximately GBP54 million for the
fiscal year ended Sept. 30, 2006.
"We are pleased to announce our first major acquisition as an
independent public company," Gary Winterhalter, President and
Chief Executive Officer, stated. "We believe that Salon
Services represents a solid strategic fit for the continued
international expansion of our Sally Beauty Supply stores."
About Sally Beauty
New Sally Holdings, Inc., headquartered in Denton, Texas, will
be a leading national retailer and distributor of beauty
supplies with operations under its Sally Beauty Supply and
Beauty Systems Group businesses. For the fiscal year ended
September 30, 2005, New Sally's revenues exceeded
US$2.2 billion. The company has stores in Canada, Mexico,
Puerto Rico, the U.K., Ireland, Germany and Japan.
As of Dec. 31, 2006, the company's balance sheet showed a
stockholders' deficit of US$836,209,000, compared to a
stockholders' equity of US$1,005,967,000 at Sept. 30, 2006.
SAPPORO HOLDINGS: Denies Talks of Management-Led Buyback Plan
-------------------------------------------------------------
Denying earlier news reports, Sapporo Holdings Ltd. said that it
is not considering a management-led shares buyback to counter a
takeover bid from Steel Partners Ltd, Bloomberg News relates.
Reuters cites Kyodo News as having indicated earlier that
Sapporo Holdings is contemplating a management buyout as well as
considering buying back the shares already held by Steel
Partners to counter any possible takeover attempt that the U.S.-
based hedge fund may take.
A Troubled Company Reporter - Asia Pacific report on
Feb. 20, 2007, noted that Steel Partners Japan Strategic Fund
L.P. is already Sapporo's biggest shareholder with an 18.6%
stake. Steel Partners had last week proposed discussions with
Sapporo pertaining to its desire to acquire a 66.6% holding in
the brewery in terms of voting rights.
"There is no truth to this. It's mere speculation," Bloomberg
quotes Sapporo spokesman Jingo Kikuchi, referring to the
reported management buyback plan.
Reuters, citing Kyodo News, says that it would cost Sapporo
about JPY60 billion (US$500 million) to buy back the shares held
by Steel Partners at the current market price.
Sapporo's main lender, Mizuho Financial Group Inc., has offered
help if managers seek money for a buyback, and managers are
seeking other investment funds willing to back them, Kyodo
reportedly said.
Reuters notes that the Japanese media have also reported talks
of a tie-up between Sapporo and rivals Asahi Brewery or Kirin
Brewery, in order to improve Sapporo's presence in the
struggling domestic beer market, and at the same time, saving
Sapporo from a Steel Partners takeover.
Yet, as stated in the previous TCR-AP report, Sapporo had also
denied reports that it has held tie-up negotiations with
domestic rival brewers to counter Steel Partners' unsolicited
takeover bid. A Sapporo executive, however, indicated that the
company was not ruling out a friendly merger proposal from a
firm willing to save the company from a hostile takeover, the
TCR-AP said.
About Steel Partners Japan
Steel Partners Japan Strategic Fund(Offshore), L.P. is a limited
partnership type investment fund domiciled in the Cayman Islands
with SPJS Holdings LLC as its General Partner. The principal
business of the Fund is to invest in companies in Japan.
About Sapporo Holdings
Sapporo Holdings Limited -- http://www.sapporoholdings.jp/--
formerly known as Sapporo Breweries, brews beer and operates
more than 200 beer halls and restaurants. Sapporo is one of
Japan's oldest brewers, and is Japan's third largest brewing
company, with brews ranging from its flagship Black Label to the
pricier Yebisu. Sapporo also makes the low-malt happoshu brew.
The Company sells Guinness beer in Japan through its Sapporo
Guinness Company and owns a beverage company that makes canned
coffee, bottled water, and soft drinks.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 26, 2007, Fitch Ratings affirmed the ratings of Sapporo
Holdings Limited as follows:
-- Long-term foreign and local currency Issuer Default rating
'BB'/ Outlook Stable;
-- Senior unsecured debt 'BB';
-- Short-term foreign and local currency IDR 'B'.
Standard & Poor's Rating Service gave Sapporo Holdings 'BB'
Long-Term Foreign Issuer Credit and Long-Term Local Issuer
Credit Ratings.
XM SATELLITE: NAB Wants SIRIUS Satellite Merger Blocked
-------------------------------------------------------
Dennis Wharton, Executive Vice President of The National
Association of Broadcasters, released a statement Monday
concerning the proposed merger of SIRIUS Satellite Radio Inc.
and XM Satellite Radio Inc.
"Given the government's history of opposing monopolies in all
forms, NAB would be shocked if federal regulators permitted a
merger of XM and Sirius. It bears mentioning that regulators
summarily rejected a similar monopoly merger of the nation's
only two satellite television companies -- DirecTV and DISH
Network -- just a few years back.
"When the FCC authorized satellite radio, it specifically found
that the public would be served best by two competitive
nationwide systems. Now, with their stock prices at rock bottom
and their business model in disarray because of profligate
spending practices, they seek a government bail-out to avoid
competing in the marketplace.
"In coming weeks, policymakers will have to weigh whether an
industry that makes Howard Stern its poster child should be
rewarded with a monopoly platform for offensive programming.
We're hopeful that this anti-consumer proposal will be
rejected."
Sirius-XM Merger
As reported in the Troubled Company Reporter on Feb. 20, 2007,
SIRUIS and XM entered into a definitive merger agreement
pursuant to which 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.
About NAB
The National Association of Broadcasters -- http://www.nab.org/
-- is a trade association that advocates on behalf of more than
8,300 free, local radio and television stations and also
broadcast networks before Congress, the Federal Communications
Commission and the Courts.
About SIRIUS Satellite Radio
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 US$250 million first-lien secured
revolving credit facility, indicating an expectation of full
recovery of principal in the event of a payment default.
=========
K O R E A
=========
ARROW ELECTRONICS: To Discuss Annual/Quarter Results on Feb. 22
---------------------------------------------------------------
Arrow Electronics Inc. will host a conference call to discuss
its fourth quarter and year-end earnings 10:00 a.m. ET on
Feb. 22, 2007.
The live conference call is accessible by telephone at:
-- 800-310-6649 (toll-free) or
-- 719-457-2693 (outside the United States and Canada)
The call ID is 9754570.
Audio replay of the call will be available through March 1.
The replay numbers are:
-- 888-203-1112 (United States and Canada), and
-- 719-457-0820 (other countries).
The access code is 9754570.
About Arrow Electronics
Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- is a global provider of products,
services and solutions to industrial and commercial users of
electronic components and computer products. Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories. In Asia Pacific, the
company operates in Australia, China, Hong Kong, India,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Korea.
* * *
Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating. The rating
outlook is positive.
ARROW ELECTRONICS: Names John McMahon as Human Resources Sr. VP
---------------------------------------------------------------
Arrow Electronics, Inc. has appointed John P. McMahon as senior
vice president, Corporate Human Resources, effective March 12.
Mr. McMahon will have responsibility for Arrow's global human
resources function, including compensation, benefits, talent
management, professional development and human resources policy
for the company's nearly 12,000 employees worldwide. He will be
a member of the company's Executive Committee, and report to
William E. Mitchell, Arrow chairman, president and chief
executive officer.
"We are delighted to welcome such a seasoned professional to
Arrow," Mr. Mitchell said. "With 25 years of experience in
human resources, John will be instrumental in formulating and
implementing effective human resources policies and programs in
support of our employees and businesses worldwide. John will
create a framework that supports Arrow's short- and long-term
growth and business strategy, which includes driving shared
leadership to the next level of success."
Prior to joining Arrow, Mr. McMahon served as senior vice
president and chief human resource officer at UMass Memorial
Health Care System, the largest health care system in Central
and Western Massachusetts. He held the position of senior vice
president, Global Human Resources, at Fisher Scientific, a
division of Thermo Fisher Scientific that provides laboratory
equipment, chemicals, supplies and services, and at Terra Lycos,
S.A., a provider of telecommunications and Internet services
worldwide. Earlier in his career, Mr. McMahon held leadership
roles in human resources at companies that included ITT
Corporation, a world leader in engineering and manufacturing,
and Raytheon Corporation, an industry leader in defense and
aerospace systems.
Mr. McMahon holds a Master of Science degree in human resource
management from Upsala College and a Bachelor of Science degree
from Mercy College.
About Arrow Electronics
Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- is a global provider of products,
services and solutions to industrial and commercial users of
electronic components and computer products. Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories. In Asia Pacific, the
company operates in Australia, China, Hong Kong, India,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Korea.
* * *
Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating. The rating
outlook is positive.
NOVELIS INC: Supplies Aluminum Sheet for 2007 GMC Acadia
--------------------------------------------------------
General Motors Corp. has selected Novelis Inc. to supply
aluminum sheet for the hood of the all-new 2007 GMC Acadia, the
brand's first crossover SUV.
The aluminum sheet for the Acadia will be supplied from Novelis
rolling mills in Oswego, N.Y., and Kingston, Ont.
"The automotive market is a key growth segment for Novelis,"
Buddy Stemple, Vice President and General Manager of Novelis
North America's Specialty Products Group, said. "The award of
this business signifies the growing demand for light-weight
solutions and further demonstrates our ability to deliver
innovative products and services to the market."
The Acadia is now available in North American showrooms. Built
on GM's new unibody Lambda platform, the new crossover vehicle
delivers car-like handling and available seating for up to eight
adults.
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.
NOVELIS: Hindalco Buy Cues Fitch to Put B Rating on Watch Neg.
--------------------------------------------------------------
Fitch Ratings has placed the Issuer Default Ratings or IDR of
'B' for Novelis Inc. and its subsidiary Novelis Corp. on Rating
Watch Negative. The company's senior secured bank debt ratings
and senior unsecured debt ratings have been affirmed:
Novelis Inc.
-- Senior secured revolver and term loan at 'BB/
Recovery Rating (RR) 1'; and
-- Senior unsecured notes at 'B/RR4'.
Novelis, Corp.
-- Senior secured revolver and term loan B at 'BB/RR1'.
Approximately US$2.3 billion of debt is covered by these
ratings. The company's Korean bank debt is excluded from the
ratings.
The rating actions follow Novelis' announcement that it has
reached an agreement to be acquired by Hindalco Industries
Limited. The transaction has been approved by the Boards of
Directors of both companies. The transaction will require
shareholder and regulatory approval.
The placement of the IDR's on Rating Watch Negative reflects
uncertainty regarding the financing of the transaction,
potential changes to Novelis' capital structure as a result of
the transaction, and possible changes in the company's operating
and financial strategy. The Rating Watch Negative will be
resolved following Fitch's assessment of these factors before or
concurrent with the consummation or termination of the
transaction.
The affirmations of the senior secured bank debt and senior
unsecured notes are based on credit protections incorporated
into the credit agreement and bond indenture. Both of these
documents contain change of control protections, and it appears
that the bank debt and unsecured notes also benefit from other
covenants that limit credit risk resulting from the proposed
transaction.
Fitch rates the debt of Hindalco Industries Ltd. 'AAA (ind)' on
a National Ratings basis in India. The ratings have been placed
on Ratings Watch with negative implications. Given the
additional debt with recourse to Hindalco, Fitch expects the
long-term rating to come under pressure if the acquisition is
finalized with the indicated debt financing. Hindalco's current
ratings denote the best credit risk relative to all other
issuers or issues in the country. This rating is therefore not
directly comparable to the North American ratings on Novelis.
Novelis' financial condition is supported by the company's
leading market position, strong and flexible asset base,
emphasis on innovation and value-added applications, and solid
cash-generating potential. Credit concerns focus on high
leverage, inflexible contract pricing with some customers, near-
term cash flow constraints, high and volatile aluminum prices
and material weaknesses in internal controls.
Fitch's Recovery Ratings are a relative indicator of creditor
recovery prospects on a given obligation within an issuers'
capital structure in the event of a default.
The suffix '(ind)' refers to National Ratings assigned by Fitch
India. Fitch's National ratings provide a relative measure of
creditworthiness for rated entities in countries with sub- or
low-investment grade international sovereign ratings. The best
risk within a country is rated 'AAA' and other credits are rated
only relative to this risk. National ratings are designed for
use mainly by local investors in local markets and are signified
by the addition of an identifier for the country concerned, such
as 'AAA (ind)' for National ratings in India. Specific letter
grades are not therefore internationally comparable.
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.
SK CORP: Inks Deal with Nippon Oil to Purchase Shares
-----------------------------------------------------
On Feb. 20, 2007, SK Corp., disclosed its plan to buy 0.98% or
14.32 million shares in Japan's top oil company, Nippon Oil
Corp. by March under a deal the two companies signed in January
to forge a strategic alliance, The Korea Times reports.
In turn, Nippon Oil plans to buy 1.29 million shares of SK, the
report relates.
SK and Nippon Oil will join forces for the development of
overseas resources, oil refining technology and overseas
research and development projects over the long haul, The Korea
Times cites an SK official as saying.
The Korea Times notes that SK's refining capability is currently
estimated at 1.11 million barrels per day, the fourth largest in
the Asia-Pacific region, while Nippon Oil has seven oil
refineries in Japan and refines 1.22 million barrels per day,
the third largest in the region.
Headquartered in Seoul, South Korea, SK Corp. --
http://eng.skcorp.com/-- is an energy and petrochemical company
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina. SK Corp.
currently explores, develops and produces oil in 13 nations that
include Peru in Latin America.
Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency
Long-Term Debt Rating effective Feb. 17, 2006.
SK CORP: FTC Fines Firm KRW23.8 Billion for Price Fixing
--------------------------------------------------------
South Korea's Fair Trade Commission has fined SK Corp. with
KRW23.8 billion, for having held monthly price-fixing meetings
since 1994 concerning its polypropylene and high-density
polyethylene products, mostly used in plastic containers and
bottles, The Hankyoreh cites a report from Yonhap News.
According to the report, SK Corp.'s fine was the highest, among
10 local petrochemical companies, followed by Korea Petro
Chemical Ind. Co. with KRW21.2 billion and LG Chemical Ltd. with
KRW13.1 billion.
Yonhap News says that the fine for the 10 companies aggregated
KRW105.1 billion (US$111.61 million).
The FTC also plans to file criminal charges against five
companies for allegedly playing a key role in holding the price-
rigging meetings, the paper adds.
The FTC stated "the sanctions are designed to ensure a stable
supply for the local plastic industry."
The irregularities are estimated to have cost consumers
KRW1.56 trillion in damages, the FTC said, explaining that the
routine price rigging prompted hikes in the prices of consumer
products.
However, the companies objected to the decision, asserting that
their actions weren't intended to reap excessive profits, Yonhap
relates.
"The meetings were aimed at seeking a balance in supply and
demand amid fierce competition, and a breakthrough from a long-
term slump within the petrochemical industry," the paper quotes
an unnamed industry official as saying.
Yonhap News recounts that FTC Chairman Kwon Oh-seung earlier
said that the agency plans to tighten its grip on the country's
raw materials sector, saying it was "deeply linked to people's
everyday lives and corporate competitiveness."
Headquartered in Seoul, South Korea, SK Corp. --
http://eng.skcorp.com/-- is an energy and petrochemical company
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina. SK Corp.
currently explores, develops and produces oil in 13 nations that
include Peru in Latin America.
Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency
Long-Term Debt Rating effective Feb. 17, 2006.
===============
M A L A Y S I A
===============
DATAPREP HOLDINGS: Posts MYR1.8M Net Loss in F/Y Ended March '06
----------------------------------------------------------------
Dataprep Holdings Bhd incurred a MYR1.8-million net loss on
MYR74.65 million of revenues in the financial year ended
March 31, 2006, as compared with the MYR2.4-million net profit
on MYR71.3 million of revenues recorded in financial year 2005.
As of end-March 2006, the company's balance sheet showed current
assets of MYR48.28 million and current liabilities of
MYR43.86 million.
The consolidated total assets of Dataprep as of end-March 2006
was MYR58.42 million and total liabilities reached
MYR44.3 million resulting to a shareholders' equity of
MYR14.12 million.
Dataprep's Annual Report for the fiscal year ended March 31,
2006, is available at:
http://www.dataprepgroup.com/repository/Dataprep_AR2006.pdf
* * *
Headquartered in Petaling Jaya, Dataprep Holdings Berhad is an
investment holding company that provides management services to
its subsidiary companies. The company provides a spectrum of
information, communication and technology services from business
and technology consulting, systems and network integration,
software developments to managed services, e-business and
application services.
The company was classified as an affected listed issuer of the
Amended PN 17 category of the Bursa Malaysia Securities Bhd on
May 5, 2006. Based on the unaudited consolidated quarterly
results of the company for the financial quarter ended Dec. 31,
2005, shareholders' equity, amounting to MYR12.171 million, is
less than 25% of the issued and paid-up share capital of
MYR76.118 million and is also less than the minimum issued and
paid-up share capital of MYR40.0 million for companies listed on
the Second Board of Bursa Securities.
PUTERA CAPITAL: Unit Gets Summon and Claim from Fukada Eng.
-----------------------------------------------------------
Putera Capital Bhd's wholly owned subsidiary, Pembinaan PCB Sdn
Bhd, received a writ of summons together with a statement of
claims from Fukada Engineering Sdn Bhd.
The writ of summons and the statement of claim were both dated
February 6, 2007.
According to Putera, Fukada Engineering is seeking, among others
claims:
1) Full settlement of MYR1,141,710.38 as at December 17,
2005, arising from the outstanding payment to Fukada in
respect of progress claims payable for sub-contract works
executed pertaining to the "Cadangan Merekabentuk &
Membina Infrastruktur Pakej "E" bagi Projek Pembinaan 4
Blok Kolej Asrama Pelajar; 4 Blok Rumah Felo dan sebuah
Rumah Arked di tapak "A", Universiti Teknologi Malaysia,
Skudai Johor" and the 8% interest per annum from the date
of judgment to final settlement date;
2) Legal costs and any other relief deemed suitable by the
Court.
The company will try to negotiate with Fukada to resolve the
matter amicably, Putera said in a statement with the Bursa
Malaysia Securities Bhd.
* * *
Headquartered in Kamunting-Taiping, Malaysia, Putera Capital
Berhad is principally involved in the investment and development
of properties. Its other activities include the manufacture and
sale of yarn and woven fabrics, construction and management of
water and sewage treatment plant, contractor of construction
projects, distribution of marble, tiles, and related business
and investment holding.
The company is classified as an Affected Listed Issuer due to
these reasons:
a) The shareholders' equity of the company on a consolidated
basis has fallen below 25% of its issued and paid up
capital as per its unaudited 3rd quarter financial
results as announced on April 28, 2006. As such its
shareholders equity is less than the minimum issued and
paid up capital.
b) The auditors have expressed a modified opinion with
emphasis on Putera's going concern in its audited
accounts as of May 31, 2005.
c) There are defaults in repayment of certain debt
obligation by Putera and its subsidiaries and Putera is
unable to provide a solvency declaration to Bursa
Malaysia Securities Berhad.
As of end-November 2006, total assets of the company amounted to
MYR44.79 million and liabilities totaled MYR49.8 million,
resulting to a shareholders' equity deficit of MYR5.01 million.
SUNWAY INFRASTRUCTURE: Posts MYR19.53MM Net Loss in Dec. '06 Qtr
----------------------------------------------------------------
Sunway Infrastructure Bhd posted a MYR19.53-million net loss on
MYR7.2 million of revenues in the second quarter ended Dec. 31,
2006.
The company's balance sheet as of Dec. 31, 2006, showed strained
liquidity with current assets of MYR116.58 million and current
liabilities of MYR173.07 million.
As at Dec. 31, 2006, total assets of Sunway Infrastructure
reached MYR1.38 billion and total liabilities amounted to
MYR1.37 billion.
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/sunway-infra-2q-results.xls
* * *
Headquartered in Petaling Jaya, Malaysia, Sunway Infrastructure
Berhad -- http://www.sunway.com.my/-- is an investment holding
company in Malaysia. The Company's wholly owned subsidiary,
Sistem Lingkaran-Lebuhraya Kajang Sdn. Bhd. (SILK), is
responsible for the construction of the Kajang Traffic Dispersal
Ring Road. Silk's activities are the upgrading and widening of
existing roads; the design and construction of a new alignment,
and the operation of the Kajang Traffic Dispersal Ring Road,
including toll operations and maintenance. Through SILK, the
Company owned Salient Million Sdn. Bhd. Salient Million Sdn. Bhd
mainly focuses on undertaking housing development for residents
whose dwellings are located on the land, on which the Kajang
Traffic Dispersal Ring Road is constructed or who are affected
by the construction of the Kajang Traffic Dispersal ring road.
On November 22, 2005, SILK disposed of Salient Million Sdn. Bhd.
The company is an affected listed issuer pursuant to the Amended
PN17 since its auditors have expressed a modified opinion with
emphasis on the company's going concern in the company's audited
financial statements for the year ended June 30, 2006, and since
the unaudited shareholders' equity of approximately
MYR26.702 million based on its quarterly results for the period
ended September 30, 2006, is less than 50% of its issued and
paid up capital of MYR90 million.
SUREMAX GROUP: Wins Jakarta Government's US$60-Million Project
--------------------------------------------------------------
Suremax Group Bhd has bagged the Local Government of Jakarta
Raya's US$60-million worth project at Sentra Primer Tanah Abang.
According to the company, they received on Feb. 16, 2007, a
Letter of Award from PD Pembangunan Sarana Jaya, a wholly owned
company of the Local Government of Jakarta Raya, to construct
wholesales shopping centre, condominium, market stores and
kiosks at Sentra Primer Tanah Abang Phase-1, in Central of
Jakarta.
On Feb. 12, 2007, the Troubled Company Reporter - Asia Pacific
reported that Suremax entered into an agreement with Al-Hidayah
Investment Bank (Labuan) Ltd for the bank to extend financial
and advisory services for the company to secure a construction
project with the Jakarta Local Government.
* * *
Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works. The firm's
other activities include the provision of property management
services and building construction. The Group is also involved
in the manufacture and sale of ready mixed concrete.
The Troubled Company Reporter - Asia Pacific reported on May 16,
2006, that based on the Audited Financial Statements of Suremax
Group for the year ended August 31, 2005, the company's auditors
have expressed a modified opinion with emphasis on Suremax's
ability to continue as a going concern. Furthermore, based on
the company's six-month period accounts to February 28, 2006,
Suremax's shareholders' equity on a consolidated basis is less
than 50% of its issued and paid-up capital.
As such, Suremax is an affected listed issuer of the Bursa
Malaysia Securities Berhad's Amended Practice Note 17 category,
and is therefore required to implement a plan to regularize its
financial condition.
TALAM CORP: SC Okays Changes to Europlus MYR350M Murabahah Notes
----------------------------------------------------------------
The Securities Commission has approved the proposed variations
to the revised principal terms and conditions of Europlus
Corporation Sdn Bhd's, a subsidiary of Talam, MYR350 million
Murabahah Notes Issuance Facility.
The revised principal terms and conditions involves:
a. restructuring of ECSB's outstanding MuNIF of MYR196.0
million via, a cash settlement of MYR6 million from the
money available in the Sinking Fund Account and Talam's
proposed issuance of Redeemable Convertible Secured Loan
Stocks amounting to MYR190 million;
b. to utilize:
-- all money in the development accounts, comprising
Housing Developers Accounts and Non-Housing Developers
Accounts, and all money standing credit thereto,
consisting of total locked-in sales receivables and
future sales receivable of MYR327 million and RM79
million, for development cost payments in respect of
the participating projects where such payments will be
verified and approved by IJM Construction Sdn Bhd, the
appointed contractor; and
-- all money in the Debt Service Reserve Account and all
money standing credit thereto for development cost
payments in respect of the participating projects where
such payments will be verified and approved by IJMC,
the appointed contractor; and
c. to create charges on the properties identified and
approved by the Noteholders in favor of the Security
Agent.
However, the approved PTC is conditional upon, inter-alia, and
with:
1. RHB INVESTBANK duly notifying the MuNIF holders that the
SC's approval on the Proposed Variation is not to be
construed as a decision by the SC on Talam's proposed
issuance of RCSLS, which has yet to be submitted to the
SC for consideration; and
2. in relation to the replacement of the outstanding MuNIF
with the proposed RCSLS to be issued by Talam, RHB
INVESTBANK to submit a written confirmation that the
MuNIF holders are aware that such replacement does not
comply with the Syariah requirements and have
acknowledged the same.
The company's proposed issuance of RCSLS will be submitted to
the SC for approval together with the overall regularization
plan, Talam told the Bursa Malaysia Securities Bhd.
* * *
Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad is principally engaged in property development. Its
other activities include trading building materials,
manufacturing of ready mixed concrete, provision for higher
educational programs, development and management of hotel, golf
and country club horticulturists, agriculturists and landscaping
designers and contractors and investment holding. Operations of
the group are carried out in Malaysia and China.
The Troubled Company Reporter - Asia Pacific reported on Sept.
11, 2006, that based on the Audited Financial Statements of
Talam Corporation for the financial year ended January 31, 2006,
the Auditors Ernst & Young were unable to express their opinion
on the Company's Audited Accounts. As such, the Company is an
affected listed issuer of the Amended Practice Note 17 category.
In accordance with PN 17, the company is required to submit and
implement a plan to regularize its financial condition within
eight months from Sept. 1, 2006.
TAP RESOURCES: Discloses Details on Unit's Wind-Up Proceedings
--------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Feb. 16, 2007, that Tanco Properties (North) Sdn Bhd, a wholly
owned subsidiary of Tap Resources Bhd, received on Feb. 9 the
court's wind-up order.
According to the TCR-AP, Tanco North has been served with a
wind-up petition by Thayalan & Associates, the solicitors of New
Legend Sdn Bhd.
New Legend Sdn Bhd, was asserting these claims against Tanco
Properties:
-- the sum of MYR272,186.70 being the balance of the
outstanding judgment sum of MYR370,321.42, the liquidated
damages for late delivery of a unit of shop-office in Tg.
Bungah, Penang;
-- interest sum of MYR51,865.28 being interest accruing on
the judgment sum at the rate of 4% per annum from Feb. 8,
2002, to Oct. 5, 2004, and interest at the rate of 8% per
annum from date of judgment until full payment; and
-- client costs of MYR30,000.
In this regard, Tap Resources received a query letter from the
Bursa Malaysia Securities Bhd pertaining to the extent of
shareholding of the company to its unit and the effect to its
financial results due to the unit's wind-up.
In an update, Tap Resources made a public disclosure with
regards to the bourse's query.
The company's disclosure statement, among others, states:
a) Tanco North is a wholly-owned subsidiary of TAP but is not
a major subsidiary as TAP's investment in Tanco North is
only 4.25% of its total assets employed based on the
audited financial statements as at April 30, 2006.
b) Tanco North has yet to be notified on the date of
appointment of the official receiver.
c) Tanco North was incorporated in Malaysia as a private
limited company under the Companies Act, 1965 on Dec. 10,
1993, and its principal activity is property development.
The authorized share capital of Tanco North is
MYR10,000,000.00 comprising 10,000,000 ordinary shares of
which 8,500,000 ordinary shares of MYR1.00 each have been
issued and fully paid-up.
d) Tanco North has negative net book value of MYR866,611 based
on the audited financial statements as at April 30, 2006.
e) The financial impact of the appointment of the Official
Receiver on the Group:
As at April 30, 2006, the accumulated losses of Tanco North
amounted to MYR9.37 million. The total cost of TAP's
investment in Tanco North is MYR10,455,000. As at to date,
full impairment losses have been provided for.
The operational impact of the appointment of the Official
Receiver on the Group:
Tanco North is in the midst of applying for the sub-division
of 266 building titles for its completed project i.e. Permai
Ria Apartment. The defective period of 18 months will
expire in August 2007 to undertake any works that requires
repair. The winding up proceedings may jeopardize the above
operations process.
g) The expected losses would be the costs of and incidental to
the Petition.
h) Tanco North will hand over all the necessary documents or
records to the Official Receiver. As at to date the
Official Receiver has not called for any meeting of
creditors and contributories or notices to the directors.
In a related development, the Bursa Securities lifted the
suspension of the trading of the company's securities on
Feb. 16. The company's securities were suspended from trading
on Feb. 14, following the wind-up order received by its unit.
* * *
TAP Resources Berhad is principally engaged in property
development. Its other activities include general contracting;
manufacturing and general trading of building materials,
construction chemicals, ready mixed concrete and non-baked
bricks; installing air-conditioners, process control and switch
gear automation; selling of electrical goods; and investment
holding. The Group operates wholly in Malaysia.
The company is classified under the PN17 category because, for
the nine months ended January 31, 2006, its shareholders' equity
on a consolidated basis is equal to or less than 25% of the
issued and paid up capital of the Company and such shareholders
equity is less than the minimum issued and paid up capital as
required under paragraph 8.16A (1) of the Listing Requirements
of Bursa Malaysia Securities Berhad, plus it has a default in
payments and is unable to provide a solvency declaration.
TAP RESOURCES: Bursa Denies Request for Plan Filing Extension
-------------------------------------------------------------
The Bursa Malaysia Securities Bhd has denied Tap Resources Bhd's
further request to extend its time to file its regularization
plan. Bursa Malaysia said that the earlier extension given to
the company was final.
According to Tap Resources, it requested the bourse for an
extension of until April 6, 2007.
The Troubled Company Reporter - Asia Pacific on Feb. 5, 2007,
reported that the Bursa Securities has already extended Tap
Resources Bhd's regularization plan filing deadline to Feb. 28.
With Tap's failure to comply with the requirements, Bursa
Securities will commence a suspension and delisting procedure on
the company's securities.
* * *
TAP Resources Berhad is principally engaged in property
development. Its other activities include general contracting;
manufacturing and general trading of building materials,
construction chemicals, ready mixed concrete and non-baked
bricks; installing air-conditioners, process control and switch
gear automation; selling of electrical goods; and investment
holding. The Group operates wholly in Malaysia.
The company is classified under the PN17 category because, for
the nine months ended January 31, 2006, its shareholders' equity
on a consolidated basis is equal to or less than 25% of the
issued and paid up capital of the Company and such shareholders
equity is less than the minimum issued and paid up capital as
required under paragraph 8.16A (1) of the Listing Requirements
of Bursa Malaysia Securities Berhad, plus it has a default in
payments and is unable to provide a solvency declaration.
TENCO BERHAD: Posts MYR14.25M Net Profit in Qtr Ended-Dec. '06
--------------------------------------------------------------
Tenco Bhd posted a net profit of MYR14.25 million on
MYR16.63 million of revenues in the third quarter period ended
Dec. 31, 2006, as compared with MYR192,000 net profit on
MYR16.17 million revenues in the same period of 2005.
As of end-December 2006, the company's balance sheet showed
current assets of MYR41.82 million and current liabilities of
MYR34.78 million.
Total assets of the company as at Dec. 31, 2006, amounted to
MY51.13 million, while net current assets totaled
MYR16.34 million.
A full text-copy of the company's third quarter financial
results can be viewed for free at:
http://bankrupt.com/misc/Tenc0-3q-report.xls
* * *
Headquartered in Selangor, Malaysia, Tenco Berhad's principal
activities are manufacturing and selling of polymer, chemicals,
adhesive, decorative coatings and related products, building
materials, equipment and consumer products. Other activities
include investment holding and provision of management services.
The Group operates in Malaysia, Singapore and Canada.
Tenco is classified as a Practice Note 17 company because its
current shareholders' equity on a consolidated basis is less
than 25% of its issued and paid up capital, and it defaulted on
various loan facilities and is unable to provide a solvency
declaration. Tenco is therefore required to submit and
implement a plan to regularize its financial condition.
=====================
N E W Z E A L A N D
=====================
ALPHA KITCHENS: Creditors Must Prove Debts by March 12
------------------------------------------------------
The creditors of Alpha Kitchens Ltd are required by Liquidator
John Francis Managh to file their proofs of debt by March 12,
2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in any distribution the company will make.
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
ANGEL CAPITAL: Faces CIR's Liquidation Petition
-----------------------------------------------
On Dec. 14, 2006, the Commissioner of Inland Revenue filed a
liquidation petition against Angel Capital Corporation Ltd
before the High Court of Wellington.
The petition was heard on Feb. 19, 2007.
The CIR's solicitor can be reached at:
Philip Hugh Brian Latimer
Technical and Legal Support Group
Wellington Service Centre
1st Floor, New Zealand Post House
7-27 Waterloo Quay, Wellington
New Zealand
Telephone:(04) 890 1028
Facsimile:(04) 890 0009
BEULAH LAND: Faces Liquidation Proceedings
------------------------------------------
A petition to liquidate Beulah Land Investments Ltd was heard
before the High Court of Auckland today, Feb. 22, 2007, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition on Nov. 3,
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
BOTRY-ZEN LTD: To Raise NZ$1.4 Mln. Through Share Purchase Plan
---------------------------------------------------------------
Botry-Zen Limited wants to raise NZ$1.4 million from
shareholders to fund development and marketing of its grape
fungus treatment, stuff.co.nz cites a report from The Press.
Thus, the company discloses in a filing with the New Zealand
Stock Exchange, that eligible shareholders will have the
opportunity to support the company's future development pathway
through participation in a share purchase plan.
The share purchase plan will enable eligible shareholders to
subscribe for up to NZ$5,000 of new ordinary shares in Botry-
Zen. The issue price has tentatively been set at NZ$0.04 per
share, but is yet to be finalized. The Board's intention is to
offer the shares at a discount of around 10% to the current
average market price, in a manner that complies with NZSX
Listing Rule 8.1.3.
The company's directors including Max Shepherd, John Gilks and
John Forrest, had committed to a full subscription, The Press
says.
However, Botry-Zen has not checked on any commitment from key
shareholders including Southern Viticulture, and family members
related to the late Howard Paterson, the original driving force
in the Dunedin biotech scene.
The Press relates that Botry-Zen is still awaiting significant
revenue flows, and needs the money to cover for a five-month
delay in the upgrade of its Dunedin factory.
Botry-Zen also needed funds for marketing, product refinement
and operational needs given it was still a "biotech startup,"
the report cites Chief Executive John Scandrett, as saying.
Further details of the share purchase plan will be provided to
shareholders and the market in due course, the company notes.
Headquartered in Dunedin, New Zealand, Botry-Zen Limited --
http://www.botryzen.co.nz/-- is engaged in the research,
development and commercialization of biological control agents
for use in the agriculture and horticulture industry. The
company operates in New Zealand, and is engaged in the
production and marketing for sale of the BOTRY-Zen product.
BOTRY-Zen is a live spore preparation of a non-pathogenic
saprophytic fungus.
The company recorded a net deficit NZ$1,579,020 and NZ$757,746
for the years ended March 31, 2006, and 2005, respectively.
C E V MAINTENANCE: Court Sets Liquidation Hearing for March 1
-------------------------------------------------------------
The High Court of Napier will hear a liquidation petition filed
against C E V Maintenance Ltd on March 1, 2007, at 10:00 a.m.
Smith Timber (1990) Ltd filed the petition with the Court on
Jan. 8, 2007.
Smith Timber's solicitor can be reached at:
Carol Denise Hall
Carlile Dowling
Raffles Street, Napier
New Zealand
Telephone:(06) 835 7394
Facsimile:(06) 835 1338
CASE BOREHAM: Court Appoints Joint Liquidators
----------------------------------------------
On Jan. 24, 2007, the High Court of Auckland appointed Dennis
John Wood and Boris van Delden as joint and several liquidators
of Case Boreham Associates Ltd.
Accordingly, creditors are required to prove their debts by
March 19, 2007.
The Joint Liquidators can be reached at:
Dennis John Wood
Boris van Delden
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
DIRECT LABOUR: Court Names van Delden and Wood as Liquidators
-------------------------------------------------------------
The High Court of Auckland appointed Boris van Delden and Dennis
John Wood as joint and several liquidators of Direct Labour
Services Ltd on Jan. 24, 2007.
The company's creditors are required to prove their debts by
March 23, 2007.
The Troubled Company Reporter - Asia Pacific previously reported
that the company faced liquidation proceedings on Oct. 5, 2006.
The Joint Liquidators can be reached at:
Dennis John Wood
Boris van Delden
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
MOTORING PLUS: Court Hears Liquidation Petition
-----------------------------------------------
The High Court of Wellington heard a liquidation petition
against Motoring Plus Ltd on Feb. 19, 2007.
The Commissioner of Inland Revenue filed the petition on Dec.
14, 2006.
The CIR's solicitor can be reached at:
Aaron Reynolds Lyne
Technical and Legal Support Group
Wellington Service Centre
1st Floor, New Zealand Post House
7-27 Waterloo Quay, Wellington
New Zealand
Telephone:(04) 890 1079
Facsimile:(04) 890 0009
PACIFIC ALBACORE: Creditors Must Prove Debts by March 20
--------------------------------------------------------
The creditors of Pacific Albacore Ltd are required to prove
their debts by March 20, 2007.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the company will make.
As reported by the Troubled Company Reporter - Asia Pacific, the
liquidation hearing against the company was heard on Nov. 13,
2006, filed by S J Ashby Boatbuilder Ltd.
The liquidator can be reached at:
Grant Bruce Reynolds
Reynolds & Associates Limited
Insolvency Practitioners
PO Box 259059, Greenmount
East Tamaki, Auckland
New Zealand
Telephone:(09) 577 0162
Facsimile:(09) 577 0243
PLUS SMS: Changes Registered Office Address
-------------------------------------------
In a filing with the New Zealand Stock Exchange dated Feb. 19,
2007, Plus SMS Holdings Ltd., disclosed the changes in its
contact details:
* Registered Office and Address for Service
C/-Murray G Allott
Chartered Accountant
111 Bealey Avenue
Christchurch
New Zealand
* Address for Communication
In New Zealand:
C/-Murray G Allott
Chartered Accountant
111 Bealey Avenue
Christchurch
New Zealand
* In Guernsey:
PO Box 585
Elizabeth House
Ruettes Brayes
St Peter Port, Guernsey
GY1 6PL
British Isles
About Plus SMS
Plus SMS Holdings Ltd. -- http://www.cre-eight.com/-- is the
parent company of Plus SMS Limited. It provides access to
businesses to the number ranges required for the routing of
short message service (SMS) and multimedia messaging system
(MMS) messages worldwide using a single short number. On July
4, 2005, Plus SMS Limited acquired Plus SMS Holdings Limited in
a reverse acquisition.
The company suffered net losses of NZ$366,000 and NZ$362,000 for
the years ended March 31, 2006 and 2005, respectively.
RDS COACHLINES: Court to Hear Liquidation Petition on Feb. 26
-------------------------------------------------------------
A liquidation petition filed against RDS Coachlines Ltd will be
heard before the High Court of Christchurch on Feb. 26, 2007, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition on Nov. 7,
2006.
The CIR's solicitor can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception
518 Colombo Street, Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
SCHWASS PUMPS: Shareholders Appoint Liquidators
-----------------------------------------------
On Feb. 1, 2007, the shareholders of Schwass Pumps n Pipes Ltd
appointed John Trevor Whittfield and Peri Micaela Finnigan as
joint and several liquidators.
In this regard, Mr. Whittfield requires the company's creditors
to prove their debts by March 9, 2007.
The Joint Liquidators can be reached at:
John Trevor Whittfield
Peri Micaela Finnigan
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
TURNER DISTRIBUTORS: Creditors' Proofs of Debt Due on March 23
--------------------------------------------------------------
The creditors of Turner Distributors Ltd are required to submit
their proofs of claim by March 23, 2007, or they will be
excluded from the company's distribution.
According to the Troubled Company Reporter - Asia Pacific, the
High Court of Auckland heard a petition filed by Hot Cycles Ltd.
against the company on Feb. 8, 2007.
The joint liquidators can be reached at:
Boris van Delden
Peri Micaela Finnigan
McDonald Vague
PO Box 6092, Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
WAINUIOTOTO BAY: Liquidation Hearing Set Today
----------------------------------------------
A petition to liquidate Wainuiototo Bay Property Co. Ltd was
heard before the High Court of Auckland today, Feb. 22, 2007, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition on Nov. 7,
2006.
The CIR's solicitor can be reached at:
Geraldine Ann Ryan
Auckland South Service Centre
17 Putney Way (PO Box 76198)
Manukau, Auckland
New Zealand
Telephone:(09) 984 2002)
WEIGHT WATCHERS: Posts US$1.2 Billion in Revenues for 2006
----------------------------------------------------------
Weight Watchers International Inc. disclosed financial results
for the full year and fourth quarter ended Dec. 30, 2006.
For the year ended Dec. 30, 2006, the company's net revenues
increased 7.1% to US$1.2 billion from US$1.1 billion in 2005.
Full year 2006 reported net income was US$209.8 million compared
to net income was US$174.4 million. In 2006, the Company began
recognizing stock option compensation expense incompliance with
FAS 123R, "Share-Based Payment."
For the fourth quarter of 2006, net revenues increased 13.7% to
US$285.5 million from US$251.2 million in 2005. Net income was
US$44.3 million, up from US$38.9 million in the fourth quarter
of 2005. This includes the benefit from the reversal of tax
reserves in the fourth quarter 2006 of US$6.3 million.
Full Year 2007 Guidance
The company provided full year 2007 earnings guidance of between
US$2.33 and US$2.47 per fully diluted share, including US$0.02
per share of non-recurring expense associated with the early
extinguishment of debt in the first quarter of 2007.
Commenting on the company's full year results and 2007 guidance,
David Kirchhoff, President and Chief Executive Officer of the
Company, said, "The Company has made excellent progress on
several fronts in 2006 and continues to lay critical groundwork
for 2007 and beyond. At our investor presentation tomorrow in
New York City, I look forward to sharing my strategic assessment
of our business and discussing in greater detail key initiatives
and opportunities that will help drive our business in the years
to come."
About Weight Watchers
Headquartered in New York, U.S.A., Weight Watchers International
Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/
-- provides weight management services, with a presence in 30
countries around the world, including Brazil, Netherlands, and
New Zealand. The company serves its customers through Weight
Watchers branded products and services, including meetings
conducted by Weight Watchers International and its franchisees.
* * *
On Dec. 27, 2006, the Troubled Company Reporter - Asia Pacific,
reported that Standard & Poor's Ratings Services placed its
ratings for commercial weight-loss service provider Weight
Watchers International Inc., including the 'BB' corporate credit
rating, on CreditWatch with negative implications, indicating
that the ratings could be lowered or affirmed after the
completion of Standard & Poor's review.
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 services sector, the rating
agency confirmed its Ba1 Corporate Family Rating for Weight
Watchers International, Inc.
=====================
P H I L I P P I N E S
=====================
GEOGRACE RESOURCES: To Raise US$25 Million for Local Exploration
----------------------------------------------------------------
GEOGRACE Resources Philippines, Inc., will raise US$25 million
this year by issuing quasi-equity instruments, BusinessWorld
reports, citing GEOGRACE Chairman Jerry C. Angping.
Mr. Angping told BusinessWorld in an interview that the funds
will be used for GEOGRACE's local exploration activities.
According to Mr. Angping, the company is currently in talks with
a major investment house, which has already started its due
diligence. The report, however, did not disclose the identity
of the investment house.
"We are entering another phase of development of fixing our
infrastructure as far as permit process is concerned, becoming a
globally competitive Philippine exploration company," the news
agency quotes Mr. Angping as saying.
The company also wants to acquire properties that are adjacent
to mines found to have ore reserves and those that already have
infrastructure in place, the report said citing GEOGRACE
President David M. dela Cruz.
Formerly known as Global Equities Inc., GEOGRACE Resources
Philippines, Inc., manufactures and distributes absorbent
cotton, personal, health and baby care products. The company
also develops premier vacation residential area within a Nature
Park along Tagaytay Ridge in Batangas. The company also
develops properties.
GEOGRACE Resources was originally incorporated as La Suerte Gold
Mining Corporation on April 20, 1970, primarily to engage in the
exploration, exploitation, and development of mineral resources;
to purchase, lease and otherwise acquire mining claims and
concessions anywhere in the Philippines; and to carry on the
business of mining, extracting, smelting, treating, and
otherwise producing and dealing in metals and minerals of all
kinds including all its products and by-products.
The company was included in the Troubled Company Reporter - Asia
Pacific's Feb. 9 "Large Companies with Insolvent Balance Sheet"
column -- having total assets of US$24.18 million and a
stockholders' deficit of US$1.81 million.
The parent company and subsidiaries have recorded negative
stockholders' equity of PHP263.302 million as of Sept. 30, 2006,
and PHP27.207 million as of Sept. 30, 2005.
MIRANT CORP: Excluded Debtors File Amended Supplemental Plan
------------------------------------------------------------
Mirant Corp.'s affiliates, Mirant New York Inc., Mirant Bowline
LLC, and Hudson Valley Gas Company, delivered an Amended
Supplemental Joint Chapter 11 Plan to the U.S. Bankruptcy Court
for the Northern District of Texas on Feb. 16, 2007,
incorporating additional provisions regarding Mirant NY-Gen,
LLC, and a joint stipulation and agreed order regarding Claim
No. 7886.
Under the Amended Supplemental Plan, all Claims against Mirant
NY, Mirant Bowline and Hudson Valley -- the Emerging New
York Entities -- other than Administrative Claims and Tax
Claims, are grouped into five separate classes:
Class Type
----- ----
1 Taxing Jurisdiction Settlement Claims
2 Unsecured Claims Against Mirant Bowline, Hudson
Valley and Mirant NY
3 Equity Interests
4 Convenience Claims
5 MSE Secured Claim
Classes 1, 3 and 5 are unimpaired and are deemed to have
accepted the Supplemental Plan. Classes 2 and 4 are impaired
and previously voted to accept the confirmed Joint Plan of
Reorganization filed by the New Mirant Entities.
The Amended Plan provides that Classes 2 and 4 will receive the
same treatment that they would have received had the Emerging
New York Entities emerged under the confirmed Mirant Plan.
Accordingly, Class 2 and 4 are each deemed to have accepted the
Supplemental Plan without any further voting.
Each holder of an Allowed Convenience Claim will receive on the
Distribution Date, the same treatment received by holders of
Claims classified as "MAG Debtor Class 7 - Convenience Claims"
under the confirmed Mirant Plan.
The MSE Secured Claim refers to Claim No. 7886, a secured Claim
filed by MSE Power Systems, Inc., for $613,112. MSE Power will
receive a single Cash payment for its Claim.
Holders of Administrative Claim must file with the Bankruptcy
Court and serve on the Emerging New York Entities and the Office
of the United States Trustee, notice of the Administrative Claim
within 30 days after service of Notice of Confirmation.
Intercompany Settlement
In settlement and compromise of certain existing and potential
disputes regarding Intercompany Claims and related matters, the
Supplemental Plan treats Mirant Bowline, Hudson Valley, and
Mirant NY as a single estate for purposes of making any other
Plan Distributions under the Supplemental Plan, including Plan
Distributions in respect of the Convenience Claims, the MSE
Secured Claim and the Tax Claims if any.
Additional Guarantees
The 100% membership interest in Mirant NY-Gen owned by Mirant NY
will not be included as security for the Additional Guarantee
and will instead be transferred to Alliance Energy Renewables,
LLC, or any prevailing bidder for the interests, as the case may
be, pursuant to terms of the Membership Interest Purchase and
Sale Agreement and related orders, or alternate agreements and
orders, whichever is applicable.
The Purchase and Sale Agreement
In the event of a conflict between the Supplemental Plan and the
terms of any of the Membership Interest Agreements and Orders or
Alternative Agreements and Orders, the terms of the Membership
Agreements and Orders or Alternative Agreements and Orders will
prevail. Notwithstanding the occurrence of the Supplemental
Plan Effective Date, (a) each party to a Membership Interest
Agreement and Order and to an Alternate Agreement and Order will
be legally bound by the terms of the Agreements and Orders; (b)
each Membership Interest Agreement and Order and Alternate
Agreement and Order will be fully enforceable against the
parties according to the Agreements' and Orders' terms; and (c)
all Membership Interest Claims and all defenses now existing or
later arising will be unaffected by these terms and all related
rights, claims and defenses are expressly preserved.
Nothing will affect, alter, release, limit or modify any
Membership Interest Claim, and the Emerging New York Entities
will not be exculpated from any Claims. Nothing will enjoin any
holder of a Membership Interest Claim from asserting or
persecuting its Membership Interest Claim.
Membership Interest Claims refer to claims arising under any of
the Membership Interest Agreements and Orders or the Alternate
Agreements and Orders.
A full-text copy of the Emerging New York Entities' Amended
Supplemental Plan is available for free at:
http://ResearchArchives.com/t/s?1a0c
About Mirant Corp.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03- 46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.
When the Debtors filed for protection from their creditors, they
listed US$20,574,000,000 in assets and US$11,401,000,000 in
debts. The Debtors emerged from bankruptcy on Jan. 3, 2006.
(Mirant Bankruptcy News, Issue No. 107; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Moody's Investors Service assigned its B2 corporate family
rating, effective July 13, 2006, on Mirant.
MIRANT CORP: Mirant NY-Gen Files Chapter 11 Plan
------------------------------------------------
Mirant NY-Gen LLC, an affiliate of Mirant Corp., delivered its
Chapter 11 Plan of Reorganization to the U.S. Bankruptcy Court
for the Northern District of Texas on Feb. 15, 2007.
Under the Plan, all Claims against Mirant NY-Gen, other than
Administrative Expenses, Tax Claims, and the DIP Secured Claims,
are grouped into six separate classes:
Class Type
----- ----
1 Priority Claims (except Tax Claims)
2 Secured Tax Claims
3 Other Secured Claims
4 General Unsecured Claims
5 Affiliates Unsecured Claims
6 Membership Interest
Classes 1 and 6 are unimpaired under the Plan and are deemed to
have accepted the Plan. Classes 2, 3, 4 and 5 are impaired and
are entitled to vote to accept or reject the Plan.
Allowed Priority Claims will be paid in full on the Distribution
Date.
Holders of Allowed Class 2 and 3 Claims will receive the amount
of the Claim plus interest in one Cash payment, or other
treatments as may be agreed upon by the parties.
Holders of Allowed Class 4 Claims will be paid an amount in Cash
equal to the principal amount of the Allowed Class 4 Claim.
Holders of Allowed Class 5 Claims will receive releases, in full
and complete satisfaction of the Allowed Claim.
The sole holder of the Membership Interest, on the other hand,
will retain its interest in the Membership Interest.
Sale of Mirant NY's Membership Interest
Simultaneously with the occurrence of the effective date of
Mirant NY-Gen's Plan, Mirant New York, Inc., will close the sale
of its Membership Interest in Mirant NY-Gen to Alliance Energy
Renewables, LLC, or any prevailing bidder, free and clear of all
claims, liens and interests.
Under the terms of the Membership Interest Purchase and Sale
Agreement, all of Mirant NY-Gen's right, title and interest in
certain of its assets will be assigned to, and vested in, Mirant
Americas, Inc.
The Assigned Assets include, among other things (i) Mirant NY-
Gen's affirmative claims and causes of action against any third
parties for actions or inactions arising prior to the Sale
Closing Date, including claims filed against Orange and Rockland
Utilities, Inc., and Consolidated Edison Company of New York,
Inc., and (ii) all of Mirant NY-Gen's pending insurance claims
for losses with respect to the Swinging Bridge Station and the
Hillburn Station.
Upon assignment, Mirant Americas will be entitled to liquidate
the Assigned Assets without further Court order, and to retain
any proceeds generated from the liquidation for its own account.
Mirant Americas will have full standing, and will be fully
empowered to pursue all Avoidance Actions and other Causes of
Action, without further Court order.
The Sale Proceeds
Mirant Americas' lien granted under the DIP Facility on
substantially all of Mirant NY-Gen's Assets will attach to the
proceeds of the sale of Mirant NY's Membership Interest.
The Sale Proceeds will be deposited in a Sale Proceeds Account.
Mirant NY-Gen agrees (i) that the Lien will be valid, perfected,
non-avoidable, and fully enforceable and (ii) that all amounts
due and owing under the DIP Facility are not subject to any set-
offs, counterclaims or defenses of any kind or nature
whatsoever.
Mirant Americas will release its Lien on the Estate Assets and
will agree that its Lien on the Sale Proceeds will be subject to
a carve-out in:
(a) the Unsecured Creditor Amount -- the Court's estimate of
the total amount of Allowed General Unsecured Claims;
and
(b) the Other Amount -- the Court's estimate of the total
amount of Allowed Administrative Expenses except Fee
Claims and DIP Secured Claims, Tax Claims, Priority
Claims except Tax Claims, Secured Tax Claims, and Other
Secured Claims.
The Court's estimation of the Unsecured Creditor Amount and each
category of the Other Amount will be conclusive. None of Mirant
NY-Gen, the Reorganized Debtor, Mirant NY, Mirant Americas,
Alliance Energy, the Prevailing Bidder, the Sale Proceeds, or
the Assets will be liable for Allowed Claims exceeding the
estimated amounts for the Unsecured Creditor Amount or any Other
Amount category.
The Plan Carve-Out will replace the carve-out set forth in the
DIP Facility in its entirety.
Any portion of the Unsecured Creditor Amount not needed to pay
General Unsecured Claims and any portion of the Other Amount not
required to pay the allocated category of Administrative
Expenses will revert to Mirant Americas.
No Administrative Expenses, other than the DIP Secured Claim and
Fee Claims, of the Chapter 11 case or any future proceeding or
case which may result from it, will be charged pursuant to
Section 506(c) of the Bankruptcy Code or otherwise against
Mirant NY-Gen, the Reorganized Debtor, Mirant Americas or the
Sale Proceeds or Assigned Assets in each case without Mirant
Americas' prior written consent.
Neither Mirant NY-Gen, the Reorganized Debtor, Mirant Americas
nor the Sale Proceeds or Assigned Assets will be liable for the
payment of any other Claims of any kind against Mirant NY-Gen.
Disbursing Agent
The Plan provides that Mirant Corporation will be appointed to
serve as the Disbursing Agent under the Plan. Mirant Corp. will
(i) take all steps and execute all instruments and documents
necessary to make Plan Distributions to holders of Allowed
Claims, (ii) comply with the Plan and the obligations under the
Plan, (iii) employ, retain, or replace professionals to
represent it with respect to its responsibilities, (iv) object
to Claims as specified in the Plan and prosecute the objections,
(v) compromise and settle any issue or dispute regarding the
amount, validity, priority, treatment, or Allowance of any Claim
as provided in the Plan, (vi) make annual and other periodic
reports regarding the status of distributions under the Plan to
the holders of Allowed Claims that are outstanding at that time,
with the reports to be made available upon request to the holder
of any Contested Claim, and (vii) exercise other powers as may
be vested in the Disbursing Agent pursuant to the Plan, the Plan
Documents or Court order.
The Disbursing Agent will make the required Plan Distributions
specified under the Plan on the relevant Distribution Date.
The Disbursing Agent, together with its officers, directors,
employees, agents, and representatives, are exculpated under the
Plan, except solely for actions or omissions arising out of the
Disbursing Agent's willful misconduct or gross negligence.
All Cash necessary for the Disbursing Agent to make payments
under the Plan and Plan Distributions will be obtained only from
the Sale Proceeds located in the Sale Proceeds Account.
No Plan Distribution of less than $50 dollars will be made by
the Disbursing Agent to the holder of any Claim unless a request
is made in writing. If no request is made within 90 days of the
Effective Date, all Plan Distributions will revert to Mirant
Americas.
Checks issued in respect of Allowed Claims will be null and void
if not negotiated within 90 days after the date of issuance.
Requests for re-issuance of any voided check will be made
directly to the Disbursing Agent by the holder of the Allowed
Claim to whom the check was originally issued. Any claim in
respect of the voided check will be made within 180 days after
the date of issuance of the check. If no request is made, any
claims in respect of the void check will be discharged and
forever barred and the unclaimed Plan Distribution will revert
to Mirant Americas.
Distribution of Plan Carve-Out
The Disbursing Agent will reserve Sale Proceeds in the Sale
Proceeds Account in the amount of the Unsecured Creditor Amount
and the Other Amount, and the reserve will constitute the Plan
Carve-Out. Funds located in the Sale Proceeds Account that are
not subject to the Plan Carve-Out will be used to fund Allowed
Fee Claims, and afterwards paid to Mirant Americas.
After all Plan Distributions have been made with respect to the
Unsecured Creditor Amount or any Other Amount category, any
funds reserved and remaining in the Sale Proceeds Account will
be paid to Mirant Americas.
Charter and Bylaws
On the Effective Date, the charter, bylaws, and other
appropriate corporate documents of the Reorganized Debtor will
be amended or created as necessary to satisfy the provisions of
the Plan, including, but not limited to, the transactions, as
applicable to Mirant NY-Gen, in accordance with the Membership
Interest Purchase and Sale Agreement. After the Plan Effective
Date, the Reorganized Debtor will be permitted to amend or
modify its corporate documents as permitted by applicable law
without Court approval.
Estimation of Contested Claims
The Disbursing Agent may ask the Court to estimate any Contested
Claim regardless of whether the Disbursing Agent or Mirant NY-
Gen has previously objected to the Claim or whether the Court
has ruled on the objection. In the event that the Court
estimates any Contested Claim, that estimated amount will
constitute the Allowed amount of the Claim for all purposes
under the Plan. All of the objection, estimation, settlement,
and resolution procedures set forth in the Plan are cumulative
and not necessarily exclusive of one another. Claims may be
estimated and subsequently compromised, settled, withdrawn, or
resolved by any mechanism approved by the Bankruptcy Court.
A full-text copy of Mirant NY-Gen's Plan of Reorganization is
available for free at http://ResearchArchives.com/t/s?1a0b
About Mirant Corp.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03- 46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.
When the Debtors filed for protection from their creditors, they
listed US$20,574,000,000 in assets and US$11,401,000,000 in
debts. The Debtors emerged from bankruptcy on Jan. 3, 2006.
(Mirant Bankruptcy News, Issue No. 107; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Moody's Investors Service assigned its B2 corporate family
rating, effective July 13, 2006, on Mirant.
PSI TECHNOLOGIES: 2006 Net Loss Narrows to US$8.048 Mil.
--------------------------------------------------------
PSi Technologies Holdings, Inc., filed with the United States
Securities and Exchange Commission its financial results for the
fourth quarter ended December 31, 2006.
Year-to-Date Financial Results
Our sales revenue for fiscal year 2006 totaled an all-time high
of US$91.8 million, compared to US$80.3 million in 2005. This
14.2% increase occurred despite the ceasing of our operations in
Chengdu, China during the end of the first quarter of 2006, in
accordance with our Business Blueprint consolidation strategy.
A new record was also achieved in terms of sales from our
Philippine production facilities, with revenues from those
facilities totaling US$89.5 million, a 22.9% increase compared
to US$72.9 million in revenues generated from the Philippine
facilities in 2005.
Cost reduction programs implemented during 2006 were effective
in bringing about a much lower increase in cost of goods sold at
2.3%, thereby resulting to an expansion and improvement in
consolidated gross margins to 6% compared with (2.3%) in 2005.
These cost reduction programs included consolidation, portfolio
pruning, material substitutions and productivity initiatives.
Operating expenses decreased by 16.1% to US$8.2 million versus
US$9.8 million in 2005 thus achieving an improvement in reducing
the Operating Loss Margins to (3.1%) in 2006 from (14.5%) in
2005.
As a result of the ongoing progress in reducing cost and
expenses and increasing sales, EBITDA increased by US$5.1
million in 2006 rising from US$6.4 million in 2005 to US$11.5
million or an 80.4% increase. Moreover, operating losses
declined from (US$11.6) million in 2005 to (US$2.8) million in
2006, an improvement of 76.1%.
Another highlight during 2006 was the reduction in net loss from
(US$19.7) million in 2005 to (US$8.0) million in 2006. The 2006
net loss includes losses on discontinued operations and special
charges amounting to US$1.5 million. Excluding the losses on
discontinued operations and special charges, net loss would have
reduced from (US$14.4) million in 2005 to (US$6.5) million in
2006.
Fourth Quarter Financial Results
The performance turnaround during the 2006 financial year
concluded with the fourth quarter results consolidating the
positive improvements witnessed in the previous quarters.
Consistent with our expectations and despite a shorter working
period due to the holiday season during the fourth quarter,
revenues grew by 3.4% to US$24.9 million, a sequential increase
compared to US$24.1 million in the previous quarter. The power
semiconductor market remained buoyant and, coupled with the
Blueprint activities, helped to provide the recovery in our
financial results for the full year. Our Philippine operations
alone increased revenues by 29.8% in the fourth quarter of 2006
compared to the same quarter last year, and revenues are now
consistently higher from our two plants than they had been in
prior quarters with three operational plants.
These positive shifts in operating conditions have culminated in
a reduction in operating loss from US$1.5 million in the fourth
quarter of 2005 to US$0.5 million in the current quarter,
although slightly higher than the US$0.3 million operating loss
in the previous quarter. However, EBITDA has improved by US$0.8
million from US$2.4 million in the fourth quarter last year to
US$3.2 million in the same period this year, approximating
similar results in the previous quarter.
"In relative terms, 2006 was an excellent year. Despite being
confronted with the challenge of rapidly increasing copper
prices, our strategies and revitalized focus on cost management
delivered us much closer to our profitability goal which we
expect to achieve in 2007," said Arthur J. Young, Jr., Chairman
and Executive Officer.
Further progress was made with respect to consolidated gross
margins, where we witnessed a rise from 3.6% in the fourth
quarter last year to 6.4% in the fourth quarter of 2006. While
consolidated gross margins were slightly down by 1.3% compared
with previous quarter, this was not unexpected given the impact
of fewer operating days in the fourth quarter.
Reflecting the efforts to control costs, operating expenses
decreased to US$2.1 million during the fourth quarter of 2006,
from US$2.2 million in the previous quarter and US$2.3 million
in the fourth quarter last year.
Net other expenses were higher by US$0.4 million during the
fourth quarter of 2006, mainly due to a one-time non-recurring
charge and higher financing charges related to our Exchangeable
Notes.
"While the usual challenges remain, our ability to respond much
quicker to market forces has been enhanced, and we expect to
strengthen our team further this year to ensure we realize the
multitude of opportunities open to our business," said Gordon J.
Stevenson, COO & Executive Vice President.
Excluding the one-time charge, net loss decreased by 41.8% from
(US$2.8) million or (US$0.21) per outstanding share in the
fourth quarter of 2005 to (US$1.6) million or (US$0.12) per
outstanding share in the fourth quarter of 2006.
Balance Sheet Highlights
Cash and cash equivalents totaled US$3.3 million in 2006,
compared to US$1.6 million as of December 31, 2005.
New acquisitions in property, plant and equipment during 2006
totaled US$8.9 million, which consists of equipment purchased to
accommodate the Sales/Investment Agreement with major customers
as well as to address the capabilities of our Power QFN line.
Despite the capital expenditure and increased volume of business
in 2006, total current liabilities declined to US$35.9 million
as of the end of 2006 from US$36.9 million as of December 31,
2005.
There was also a significant decline in the total bank loans and
trust receipts payable from US$14.9 million as of end December
31, 2005 to US$10.5 million as of December 31, 2006. The long-
term liability account of US$4.5 million includes the carrying
amount of the Exchangeable Notes issued in July 2003 and June
2005, net of the discount representing the embedded conversion
feature of the Exchangeable Notes.
As of December 31, 2006, tangible book value was US$1.65 per
share on 13,289,525 outstanding shares.
Business Outlook
Arthur J. Young, Jr., Chairman and CEO said, "We expect volumes
in the first quarter of 2007 to be relatively stable, consistent
with the general semiconductor market and the industry's
cautious approach towards managing inventory. We do anticipate,
however, incremental growth in the second quarter and better
gains in the second half of 2007, leading to an overall
satisfactory level of growth in the full year. Nevertheless, we
are sufficiently prepared to respond to volatility in the market
through our continuous drive towards reducing costs and
improving efficiencies, productivity and asset utilization. We
plan and expect to achieve profitability in 2007."
About PSi Technologies
PSi Technologies -- http://www.psitechnologies.com/-- is an
independent semiconductor assembly and test service provider to
the power semiconductor market. The Company provides
comprehensive package design, assembly and test services for
power semiconductors used in telecommunications and networking
systems, computers and computer peripherals, consumer
electronics, electronic office equipment, automotive systems and
industrial products.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 24, 2007, SyCip Gorres Velayo & Co., in its audit report
for PSi Technologies' 2005 financial statements, raised
substantial doubt about the company's ability to continue as a
going concern. The auditor pointed at the company's recurring
losses from its operations and negative net working capital
position. SGV also noted that the consolidated financial
statements as of and for the years ended Dec. 31, 2005, and 2004
do not include any adjustments that might result from the
outcome of this uncertainty.
=================
S I N G A P O R E
=================
COMPLETE HOME: Undergoes Liquidation Proceedings
------------------------------------------------
On Feb. 9, 2007, the High Court of Singapore entered an order to
liquidate the business of Complete Home D.Zign Pte Ltd.
The petition against the company has been filed by J2 Pte Ltd.
The liquidators can be reached at:
Kung Seah Lim
c/o Kung Seah Lim Consultancy Pte Ltd
336 Smith Street #05-309
Singapore 050336
GREEN POINT: Liquidators to Receive Claims Until March 16
---------------------------------------------------------
Chia Soo Hien and Ng Geok Mui, liquidators of Green Point
(S.E.A) Pte Ltd, will be receiving proofs of debt from the
company's creditors until March 16, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's distribution of dividend.
The joint and several liquidators can be reached at:
Chia Soo Hien
Ng Geok Mui
c/o BDO Raffles
5 Shenton Way
#07-01 UIC Building
Singapore 068808
INTERMEC INC: 2006 Net Earnings Down 48% to US$32 Million
---------------------------------------------------------
Intermec Inc. disclosed on Feb. 20, 2007, its financial results
for its fourth quarter and fiscal year ended December 31, 2006.
The company reported 2006 fourth quarter revenues of US$218.8
million and earnings from continuing operations of US$5.2
million, or US$0.09 per diluted share, compared to 2005 fourth
quarter revenues of US$241.7 million and earnings from
continuing operations of US$12.1 million, or US$0.19 per diluted
share.
The results for the fourth quarter include a pre-tax
restructuring charge which reduced operating profit by US$7.4
million, or US$0.07 per diluted share. This includes a
restructuring charge relating to the comprehensive plan
announced in mid-November 2006 to reduce costs, streamline
global operations and improve profitability, and a restructuring
charge relating to the closure of the company's design centers
in Goteborg and Lund, Sweden, announced in the first quarter
2006. The company's 2006 fourth quarter includes US$1 million
of incremental stock compensation expense recorded under the
provisions of FAS 123(R), which reduced EPS by US$0.01 per
diluted share.
The company realized a net tax benefit for the current quarter
compared to an effective tax rate of 25% in the prior-year
quarter.
Fiscal year 2006 revenues were US$873.0 million and earnings
from continuing operations were US$35.0 million, or US$0.55 per
diluted share, compared to 2005 revenues of US$875.5 million and
earnings from continuing operations of US$40.6 million, or
US$0.64 per diluted share.
Revenues and earnings from continuing operations before income
taxes for fiscal year 2006 included a settlement for an
intellectual property dispute regarding its smart battery
patents in the amounts of US$23.0 million and US$16.5 million,
respectively. The results for 2006 included a pre-tax gain of
US$2.3 million, or US$0.02 per diluted share, from the gain on
investment in Savi Technology completed in June of 2006. The
company adopted amendments to its US pension and certain
employee plans, effecting a "freeze" to benefit accruals for
most participants as of June 30, 2006. These changes resulted
in a net curtailment gain which increased operating profit from
continuing operations by US$2.1 million or US$0.02 per diluted
share in the third quarter of 2006.
The company's 2006 results also included a restructuring charge
of US$11.4 million or US$0.11 per diluted share, relating to the
comprehensive plan announced in mid-November 2006 and the
closure of the company's design centers in Goteborg and Lund,
Sweden, announced in the first quarter 2006. The 2006 results
included US$4.8 million of incremental stock compensation
expense recorded under the provisions of FAS 123(R), which
impacted EPS by US$0.05 per diluted share. Including
discontinued operations, net earnings for fiscal year 2006 were
US$32.0 million or US$0.50 per diluted share compared to net
earnings of US$61.8 million or US$0.98 per diluted share in the
prior fiscal year.
Geographically during the fourth quarter, North American
revenues decreased 21% over the comparable prior-year period.
Revenues in Europe, Mid-East and Africa were flat over the prior
year period; and the rest of the world, consisting of Asia
Pacific and Latin America, increased 28%.
During the fourth quarter, Systems and Solutions revenue
decreased 13% and Printer and Media revenues decreased 6% over
the comparable prior-year period. Service revenue decreased 3%
over the comparable prior-year period.
Geographically for fiscal year 2006, North American revenues
decreased 4% over the comparable prior-year period. Revenues in
Europe, Mid-East and Africa decreased 7%; and the rest of the
world, consisting of Asia Pacific and Latin America, increased
13%.
For the full fiscal year 2006, Systems and Solutions revenue
decreased 4% and Printer and Media revenues decreased 4% over
the comparable prior-year period. Service revenue increased
2% over the comparable prior-year period.
During the fourth quarter, the company repurchased stock with an
aggregate value of approximately US$50 million at an average
share price of US$23.95. This completed the stock repurchase
program authorized by the board of directors in 2006, for up to
US$100 million in which the company repurchased a total of
approximately 3.8 million shares. The company's cash
equivalents and short-term investments position at the end of
the fourth quarter was US$184.5 million. The decrease in cash
equivalents and short term investments of US$53.2 million during
the fourth quarter was primarily due to the stock repurchases
and capital expenditure outlays.
"During the fourth quarter, Europe rebounded from the third
quarter decline as anticipated following the product redesign
required by European Regulations on Hazardous Substances", said
Larry Brady, Chairman & CEO. "North America remains sluggish
awaiting the full introduction of a slate of new products and
the corresponding build in enterprise roll-outs. The rest of
the world continues to post strong sales growth."
As of Dec. 31, 2006, the company's balance sheet showed US$807.2
million in total assets and total liabilities of US$389.6
million resulting in a stockholders' equity of US$417.6 million.
Other Fourth Quarter Business Highlights
During the quarter, Intermec introduced a number of new
products:
* The SR61 a rugged handheld wireless scanner offers a choice
of all Intermec scanning options: standard range area
imager, MEMS laser scanning or linear scanning. This
wireless scanner allows companies to standardize on a
single form factor and choose the scanning technology that
best suits their application needs, from low-light
environments to highly dense or difficult to read barcodes.
* Intermec introduced a compact, reusable, ruggedized rigid
RFID tag capable of withstanding temperature extremes and
hazardous exposures common in manufacturing and material
handling operations. Innovative antenna design provides
superior performance on a range of materials, including
metal, wood and plastic.
* Intermec and Cascade introduce a Mobile RFID Forklift
Adaptable Load Backrest for Rugged, Industrial Warehouse
Use. This ground-breaking system allows forklift drivers
to remain in their vehicles and use RFID and other data
collection technologies to gather complete real-time
inventory data efficiently and safely.
First Quarter Outlook
Intermec also reported today its GAAP basis revenue outlook for
the first quarter 2007. Revenues for the period are expected to
be within a range of US$177 million to US$197 million. For the
first quarter of 2007, EPS from continuing operations are
expected to be US$0.01 per diluted share, plus or minus US$0.04.
The first quarter of 2006 reported EPS from continuing
operations of US$0.23. By comparison, the first quarter of 2006
included an Intellectual Property Settlement, which positively
impacted operating profit from continuing operations by US$16.5
million, or US$0.16 per share. In addition, the tax provision
for the first quarter of 2006 was favorably impacted by US$0.05
per share primarily due to the conclusion of a foreign tax
audit.
About Intermec Inc.
Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets. Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.
The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, United Kingdom and Singapore.
* * *
On Oct. 31, 2006, Moody's Investors Service confirmed its Ba2
Corporate Family Rating for Intermec Inc., as well as its Ba3
rating on the company's US$400 million Senior Unsecured Shelf in
connection with Moody's implementation of its new Probability-
of-Default and Loss-Given-Default rating methodology for the
U.S. manufacturing sector.
Those debentures were assigned an LGD5 rating suggesting
noteholders will experience an 85% loss in the event of default.
As reported by the Troubled Company Reporter - Asia Pacific on
Dec 20, 2006, Fitch Ratings has affirmed and simultaneously
withdrawn these ratings for Intermec, Inc.:
-- Issuer Default Rating at 'BB-';
-- Senior secured bank facility at 'BB+'; and,
-- Senior unsecured debt at 'BB-'.
LEVI STRAUSS: Posts US$96-Mil. Net Income in 4th Quarter 2006
-------------------------------------------------------------
Levi Strauss & Co. disclosed its financial results for the
fourth quarter and fiscal year ended November 26, 2006, and
filed its 2006 Form 10-K with the Securities and Exchange
Commission.
Fourth-quarter results reflect improvements across key operating
measures. Net revenues for the quarter increased 4% or
US$48 million and net income increased 119% or US$52 million.
Fiscal-year 2006 results show continued profitability
improvements with stable net revenues. Net income improved 53%
or US$83 million.
"Our fourth-quarter performance was encouraging, with net
revenue growth in each of our three regions," said John
Anderson, chief executive officer. "For the full year, we
delivered stable revenues and strong profits, and paid down
debt. The year ended with improved performance in virtually all
of our business units. I am pleased with our positive momentum
heading into 2007."
Fourth-Quarter 2006 Highlights
* Fourth-quarter net revenues increased 4% to US$1.24 billion
compared to US$1.19 billion for the same period in 2005.
Net revenues increased in all three regions.
* Gross profit increased 9% to US$593 million compared with
US$542 million for the same period of 2005. Gross margin
increased 240 basis points to 48% of revenues for the
fourth quarter of 2006 compared to 45.6% of revenues in the
fourth quarter of 2005. The margin increase was primarily
due to increased sales of higher margin products.
* Selling, general and administrative expenses increased 1%
or US$5 million to US$422 million for the quarter from
US$417 million in the 2005 period. Higher SG&A expenses in
the 2006 period were primarily attributable to an increase
in company-operated retail stores and the impact of
currency translations, partially offset by lower
advertising and promotion expense in Europe.
* Operating income for the fourth quarter increased
S$49 million to US$170 million compared to US$121 million
for the 2005 period. The 40% increase was primarily due to
higher net revenues and improved gross margin.
* Net income for the fourth quarter was US$96 million
compared to US$44 million in same period of 2005. The
improvement was driven primarily by higher operating income
and lower tax expense primarily attributable to a
US$29 million net reversal of valuation allowances due to
operating profits in certain jurisdictions.
Fiscal-Year 2006 Highlights
* Net revenues for the fiscal year were US$4.19 billion
compared to US$4.22 billion in 2005, a 0.8% decrease.
Stable net revenue reflects higher net revenues in the U.S.
Levi's, U.S. Dockers and Asia Pacific businesses, offset by
lower net revenues in the Europe and U.S. Levi Strauss
Signature businesses and currency translation.
* Selling, general and administrative expenses decreased 2%
or US$33 million to US$1.3 billion for 2006 compared to the
prior year. The decrease reflects reduced advertising and
promotion expense and a US$29 million third-quarter benefit
plan curtailment gain, partially offset by costs related to
new company-operated retail stores.
* Operating income increased US$24 million to US$614 million
compared to US$589 million in 2005. The increase was
driven primarily by lower selling, general and
administrative expenses. The operating margin for 2006 was
14.6% compared to 13.9% in 2005.
* Interest expense for the year decreased US$13 million to
US$251 million compared to US$264 million in 2005. The
decrease was primarily attributable to lower debt levels
and lower average interest rates in 2006.
* Net income for 2006 was US$239 million compared to US$156
million in the prior year. The increase in net income was
primarily due to the curtailment gain, lower losses on
early extinguishment of debt, and lower income tax and
interest expense. The effective tax rate for 2006 was
30.8% compared to 44.8% for 2005, driven by a US$32 million
benefit resulting from a modification of the ownership
structure of certain of our foreign subsidiaries in the
second quarter of 2006 and a US$29 million net reversal of
valuation allowances in certain jurisdictions in the fourth
quarter of 2006.
* Strong cash flow in 2006 is attributable to lower income
tax payments, improved working capital management, and
lower restructuring and interest payments.
"We accomplished our objectives for 2006," said Hans Ploos van
Amstel, chief financial officer. "We ended the year with
revenues growing, and we sustained our strong margins while
increasing our investments in our brands, retail expansion and
SAP. We also delivered strong cash flow, which is a key
priority for us. For 2007, we expect to continue our strong
profits and cash flow and, at minimum, achieve revenue
stability."
As of November 26, 2006, the company's balance sheet showed
total assets of US$2.8 billion, total liabilities of US$3.8
billion and US$2 million temporary equity, resulting in a
stockholders' equity deficit of US$994 million.
The company's financial results for the fourth quarter and
fiscal year ended November 26, 2006, is available for free at:
http://bankrupt.com/misc/LeviStrauss4qtr.pdf
About Levi Strauss
Levi Strauss & Co. -- http://www.levistrauss.com/-- is a
branded apparel company, with sales in more than 110 countries.
Levi Strauss designs and markets jeans and jeans-related pants,
casual and dress pants, tops, jackets and related accessories
for men, women and children under its Levi's(R), Dockers(R) and
Levi Strauss Signature(R) brands. Levi Strauss also licenses its
trademarks in various countries throughout the world for
accessories, pants, tops, footwear, home and other products.
The company's global divisions are based in Singapore, San
Francisco and Brussels.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Oct. 11, 2006, Moody's Investors Service confirmed the company's
B2 Corporate Family Rating and its B3 rating on the company's
various senior unsecured notes. Additionally, Moody's assigned
an LGD5 rating to those bonds, suggesting noteholders will
experience a 59% loss in the event of a default.
OVERSEAS SHIPHOLDING: To Issue 4th Qtr. 2006 Results on Feb. 27
---------------------------------------------------------------
Overseas Shipholding Group Inc. plans to release its fourth
quarter and fiscal 2006 results on Tuesday, February 27, 2007,
at approximately 7:00 a.m. ET, and will host a conference call
at 11:00 a.m. ET on the same day.
All interested parties are invited to participate by calling:
Telephone: (800) 435-1398 within the United States; and
(617) 614-4078 for international calls.
A participate passcode number 20038277 is required.
A webcast of the conference call and an accompanying slide
presentation will be available on the company's Web site at
htpp://www.osg.com in the Investor Relations Webcasts and
Presentations section.
An audio replay of the conference call will be available from
1:00 p.m. ET on Tuesday, February 27, 2007, through midnight ET
on Tuesday, March 6, 2007, by calling:
Telephone: (888) 286-8010 within the United States; or
(617) 801-6888 for international callers.
The passcode for the replay is 20191145.
About Overseas Shipholding
Headquartered in New York, U.S.A., Overseas Shipholding Group,
Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest
publicly traded tanker companies in the world with an owned,
operated and newbuild fleet of 117 vessels, aggregating 13.0
million dwt and 865,000 cbm, as of June 30, 2006. As a market
leader in global energy transportation services for crude oil
and petroleum products in the U.S. and International Flag
markets, the company is committed to setting high standards of
excellence for its quality, safety and environmental programs.
OSG is recognized as one of the world's most customer-focused
marine transportation companies, with offices in New York,
Athens, London, Newcastle and Singapore.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
August 14, 2006, Moody's Investors Service affirmed the debt
ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured
at Ba1. The outlook has been changed to stable from negative.
PHOENIX BOOK: Pays First and Final Dividend
-------------------------------------------
Phoenix Book Binding Pte Ltd. paid a first and final dividend to
its creditors on Feb. 7, 2007.
The company paid 1.5328% to all received claims.
The liquidator can be reached at:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
SCOTTISH RE: Advisors Recommend 'Yes' Vote to MassMutual Deal
-------------------------------------------------------------
Scottish Re Group Ltd. disclosed that Institutional Shareholder
Services and Glass Lewis & Co., both independent proxy advisory
firms, have recommended that Scottish Re shareholders vote for
each of the proposals described in Scottish Re's proxy statement
dated Jan. 19 relating to its proposed transaction with
MassMutual Capital Partners LLC and certain affiliates of
Cerberus Capital Management, L.P.
Scottish Re's board of directors previously unanimously approved
the proposed transaction with MassMutual Capital and Cerberus
and recommends that shareholders vote for each of the proposals
relating to the proposed transaction.
In making its recommendation to Scottish Re's shareholders, ISS
said, "there is no guarantee that the company will find an equal
or superior offer from another party. Scottish Re appears to
have completed a thorough bid process, as well as conducted
financial due diligence on the feasibility of conducting a
rights issuance or run-off scenario."
"Based on our analysis and the unanimous support of the board,
we believe that the approval of the Securities Purchase
Agreement is in the interests of shareholders," The Glass Lewis
report stated. "Accordingly, we believe that shareholders
should vote for the proposal."
"We are pleased that ISS and Glass Lewis have advised our
shareholders to vote in favor of the proposed transaction with
MassMutual Capital and Cerberus, which will stabilize Scottish
Re, provide long-term liquidity benefits and offers the best
opportunity to deliver long-term value to our shareholders,"
Paul Goldean, chief executive of Scottish Re, said.
On Nov. 27, 2006, Scottish Re announced it had entered into an
agreement whereby MassMutual Capital and Cerberus would each
invest US$300 million into Scottish Re, resulting in a total new
equity investment of US$600 million. Under the terms of the
agreement, MassMutual Capital and Cerberus will purchase a total
of 1,000,000 newly issued convertible preferred shares of
Scottish Re, which may be converted into 150,000,000 ordinary
shares of Scottish Re at any time, subject to certain
adjustments, representing a 68.7% ordinary share ownership on a
fully diluted basis at the time of investment.
The transaction has cleared U.S. antitrust review, but remains
subject to additional regulatory approvals, including approvals
by certain insurance regulators, as well as various state and
foreign regulatory authorities and self-regulatory
organizations, and approval by the holders of 66-2/3% of
Scottish Re's outstanding ordinary shares entitled to vote at
the extraordinary general meeting of shareholders that will be
held in Bermuda on Feb. 23, 2007.
All shareholders of record are urged to return their proxy card
or to vote by following the instructions for phone or Internet
voting that appear on the proxy card. If a shareholder does not
vote, the effect will be the same as if he voted against the
transaction.
About Scottish Re
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities
* * *
As of Feb. 15, Scottish Re's Senior Unsecured Debt carry Moody's
Ba3 rating and its Preferred Stock carry Moody's B2 rating. The
company's Long-Term Local Issuer Credit rating carry Standard &
Poor's B rating.
Fitch rates the company's Long-Term Issuer Default at BB; Senior
Unsecured Debt at BB-; and Preferred Stock at B+.
A.M. Best rates the company's Long-Term Issuer Credit at b-.
SCOTTISH RE: Hovde Capital Opposes MassMutual-Cerberus Proposal
---------------------------------------------------------------
Hovde Capital Advisors LLC will not vote in favor of the
proposals relating to a proposed investment in Scottish Re Group
Limited by MassMutual Capital Partners LLC and an affiliate of
Cerberus Capital Management, L.P. at the upcoming Extraordinary
General Meeting of Shareholders of Scottish Re later this month.
In an earlier letter to Scottish Re's Board of Directors in
November 2006, Hovde Capital stated that it would resist any
sale of the company at a price that did not fairly reflect the
true implied value of Scottish Re and would resist any capital
raising initiative that dilutes existing shareholders at a
depressed valuation through a sale of stock to one or more large
institutional investors.
"The concern we expressed in November, 2006, about the outcome
of Scottish Re's evaluation of its strategic alternatives has
materialized in a recommendation to shareholders of a proposal
by MassMutual and Cerberus," Eric Hovde, Portfolio Manager of
Hovde Capital, stated. "The Board of Scottish Re has
recommended that the company's shareholders accept a deal that
is far more dilutive and more grossly unfair to existing
shareholders of Scottish Re than we ever could have imagined.
When factoring in the extremely dilutive original issuance price
of US$4.50 per share or lower, coupled with the 7.25% special
preferred dividend attached to those convertible shares that
will siphon off a significant amount of any future earnings, in
our opinion, the ordinary common shareholders will be left with
little or no value."
Hovde Capital also pointed out that under the MassMutual-
Cerberus proposal, possible adjustments to the conversion ratio
for the convertible shares that they will receive could push the
per share price into the US$2.00 range -- further diluting the
common shareholders. Mr. Hovde said that the proposal
recommended by the Board "flies in the face of the company's own
independent third-party valuation performed by Tilinghast."
On Sept. 11, 2006, Scottish Re reported that the Tilinghast
valuation had concluded that the company's aggregate value was
in excess of its last reported GAAP book value; according to the
company's September 30th 10-Q, the most recently reported GAAP
book value is US$19.13. Hovde Capital said it will vote against
the MassMutual-Cerberus proposal because it believes the
proposal treats existing shareholders inequitably and represents
a significant and unacceptable level of dilution and because
Hovde believes the Board of Scottish Re should be pursuing other
courses of action that were clearly available to the company,
including:
-- a liquidation run-off, which Hovde Capital believes could
capture more of the true imbedded value of the company for
the existing shareholders that is not being recognized in
the current proposal and will be lost by the existing
shareholders; or
-- a shareholder-backed rights offering in which all existing
shareholders would have an opportunity to participate,
such as the proposal made by Brandes Investment Partners,
L.P., which included a "backstop" of the US$600 million in
capital to be raised but which the Board of Scottish Re
rejected.
Mr. Hovde went on to say that Hovde Capital believes the
recommendation of the Board of Scottish Re ignores the best
interests of the company's existing shareholders and that "Hovde
Capital cannot support such an egregious proposal."
Hovde Capital is a registered investment advisor that advises a
series of hedge funds focused on the financial services sector.
About Scottish Re
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities
* * *
As of Feb. 15, Scottish Re's Senior Unsecured Debt carry Moody's
Ba3 rating and its Preferred Stock carry Moody's B2 rating. The
company's Long-Term Local Issuer Credit rating carry Standard &
Poor's B rating.
Fitch rates the company's Long-Term Issuer Default at BB; Senior
Unsecured Debt at BB-; and Preferred Stock at B+.
A.M. Best rates the company's Long-Term Issuer Credit at b-.
SEA CONTAINERS: Aegis Financial Discloses 9% SeaCon Equity Stake
----------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission dated Feb. 12, 2007, Aegis Financial Corp.
disclosed that it beneficially owns 2,342,805 shares of Sea
Containers Ltd.'s common stock, which represents 9.0% of the
total outstanding shares issued.
William S. Berno, Paul Gambal, Scott L. Barbee, also
beneficially own 2,342,805 shares of SCL's common stock, or 9.0%
of the total outstanding shares issued.
Aegis Financial has the sole power to vote or direct the votes
of and to dispose of or direct the disposition of 2,342,805
shares. Mr. Barbee has the sole power to vote or direct the
votes of and to dispose of or direct the disposition of 600
shares.
Messrs. Berno, Gambal, and Barbee have the shared power to vote
or to direct the vote and to dispose of or direct the
disposition of 2,342,805 shares.
About 26,145,000 shares of SCL common stock are outstanding as
of Oct. 31, 2006. Shares of SCL stock were traded at US$1.01 a
share at the close of business on Feb. 15, 2007.
Based 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. The Debtor has until August 11, 2007 to
accept solicitations of that plan.
SEA CONTAINERS: Donald Smith Discloses 6.53% SeaCon Equity Stake
----------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission dated Feb. 12, 2007, Donald G. Smith, president of
Donald Smith & Co., Inc., disclosed that the company
beneficially owns 1,707,400 shares of Sea Containers Ltd.'s
common stock, which represents 6.53% of the total outstanding
shares issued.
Donald Smith & Co. has the sole power to direct the votes of
1,256,300 shares and the sole power to dispose of 1,707,400
shares.
All securities reported are owned by advisory clients of Donald
Smith & Co. and not one of which owns more than 5% of the class.
About 26,145,000 shares of SCL common stock are outstanding as
of Oct. 31, 2006. Shares of SCL stock were traded at US$1.01 a
share at the close of business on Feb. 15, 2007.
Based 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. The Debtor has until August 11, 2007 to
accept solicitations of that plan.
STEEL EAST: Creditors Must Prove Debts by March 16
--------------------------------------------------
Steel East (Pte) Ltd, which is members' voluntary liquidation,
will be receiving proofs of debt from its creditors until
March 16, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from sharing in the company's dividend distribution.
The liquidator can be reached at:
Lee Ming
c/o 5 Shenton Way
#07-01 UIC Building
Singapore 068808
===============
T H A I L A N D
===============
iTV PLC: Court Rejects Petition For Urgent Hearing
--------------------------------------------------
The Central Administrative Court denied iTV Plc's request for an
urgent hearing pertaining to its petition to temporarily block
the Prime Minister's Office from revoking its broadcast
concession if it fails to pay the THB100-billion fee and fine by
March 6, 2007, The Bangkok Post reports.
iTV asked the court to bar the PMO from revoking its concession
contract until the new arbitration panel rules on iTV's latest
request, and until the judicial process over the dispute between
iTV and the PMO is over, The Post explains. iTV also asked that
once the judicial process is over, the court allows it 30 days
to pay its overdue concession fee.
According to the report, iTV Chairman Niwatthamrong
Boonsongpaisal said that the company sought provisional
protection from the Central Administrative Court because it felt
that the THB100 billion payment was not only unfair but also in
breach of the concession contract and the law. He also said
that iTV could not secure any funding to pay the THB100 billion
by the PMO's imposed deadline.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 6, 2007, the Prime Minister's Office required iTV's
immediate payment of its THB1 billion debt or it will commence a
legal proceeding against the company. The TCR-AP said that,
according to the company's disclosure with the Stock Exchange of
Thailand, the PMO is seeking payment of THB2.21 million on
account of remaining compensation plus interest at 15% per annum
starting from April 2004 to Dec. 2006. In addition, the PMO is
also asking for the payment of a THB97.76-million fine imposed
on the broadcaster after it changed its broadcasting schedule
without the PMO's consent.
Mr. Niwatthamrong said that the PMO should not penalize iTV
because the company had already changed its programming content
according to the ruling of an arbitration panel, and that even
if the company is made to pay a fine, it shouldn't be higher
than THB300 million, The Post relates.
"We're asking for empathy. It's not an attempt to buy time.
The court petition is my company's attempt to protect more than
10,000 shareholders, 1,000 employees and the iTV audience," The
Post quotes Mr. Niwatthamrong.
According to The Post, Mr. Niwatthamrong said that the court did
not give any ruling on the exact amount of fines and interests
iTV must pay.
About iTV PLC.
iTV PLC's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets. Shin Corp Plc is iTV's major
shareholder, with a 53% stake. Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family. Earlier this year, it sold its majority
stake in iTV to Temasek.
The TCR-AP reported on June 23, 2006, that the Prime Minister's
Office demanded a concession fee payment and fines to the
government from the television network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's Office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
On Dec. 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Supreme Administrative Court upheld the
Central Administrative Court's verdict by voiding the
arbitration ruling on concession fee payments won by iTV in
2004. The overdue concession payment and fines that the
broadcaster must pay reached THB100 billion.
iTV PLC: to Hold Shareholders' Meeting on March 20
--------------------------------------------------
In a notice to the Stock Exchange of Thailand, iTV Plc announced
that its Board of Directors has set the Extraordinary General
Meeting of Shareholders for Mar. 20, 2007, at 2:00 p.m., at the
9th floor auditorium of Shinawatra Tower 3, Viphavadee Rangsit
Road, in Jatujak, Bangkok.
The agenda of the meeting include:
-- the acknowledgment of the progress of disputes between
the company and the Office of the Permanent Secretary,
Prime Minister's Office. The Board recommended that the
progress of the disputes be reported to shareholders in
accordance with the guidelines of Extraordinary Annual
General Meeting of Shareholders No. 1/2006 held on
December 29, 2006.
-- the consideration and approval of procedures in settling
the dispute between the company and the Office of the
Permanent Secretary, Prime Minister's Office and grant the
Executive Committee authority to undertake these
procedures in accordance with the guidelines of the
shareholders' meeting.
The Company will close the share registration book starting at
12:00 a.m. on March 6, 2007, to determine the shareholders who
are eligible to attend and vote in this meeting.
New Appointments
In addition, iTV's Board approved the appointment of new
directors replacing those who have resigned, and the designation
of the company's new authorized signatories.
The outgoing directors are:
1. Sarita Bunnag Member of the Audit Committee
and Independent Director
2. Siripen Sitasuwan Director
3. Somprasong Boonyachai Director
4. Dumrong Kasemset Director
The new directors who have been appointed are:
1. Somkid Wangcherdchuwong Director
2. Ajsha Suwonpakprak Director
3. Boonchai Siripoksup Director
4. Suparanan Tanvirach Director
The new authorized signatories are:
Boonklee Plangsiri, Niwattumrong Boonsongpaisan, and
Songsak Pramsuk. Validation of all documents requires
the signatures of any two of these three directors along
with the Company's seal."
About iTV
iTV PLC's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets. Shin Corp Plc is iTV's major
shareholder, with a 53% stake. Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family. Earlier this year, it sold its majority
stake in iTV to Temasek.
The TCR-AP reported on June 23, 2006, that the Prime Minister's
Office demanded a concession fee payment and fines to the
government from the television network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's Office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
On Dec. 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Supreme Administrative Court upheld the
Central Administrative Court's verdict by voiding the
arbitration ruling on concession fee payments won by iTV in
2004. The overdue concession payment and fines that the
broadcaster must pay reached THB100 billion.
MANAGER MEDIA: Discloses Top Ten Shareholders
---------------------------------------------
In a filing with the Stock Exchange of Thailand, Manager Media
Group Pcl disclosed changes in its list of majority
shareholders.
The disclosure makes a reference to an earlier notice sent by
Kasikornbank PCL to the SET pertaining to Kasikornbank PCL's,
together with subsidiary Phethai Asset Management Co., Ltd.'s,
sale of common shares in Manager Media, which changed the
company's shareholding structure.
The new top ten majority shareholders of Manager Media are:
Amount %
Shareholder (Shares) held
Krung Thai Bank PC 20,111,300 15.55
Asia Credit Limited Bank PCL 11,357,571 8.78
Gamma Capital Fund 9,964,463 7.70
Bangkok Commercial Asset
Management Company Limited 8,278,351 6.39
Thai Military Bank PCL 7,979,966 6.15
Somchai Sunanthanasuk 7,525,135 5.82
BankThai Public Company Limited 6,748,402 5.22
Duangporn Wongchookrau 6,000,000 4.63
Napalai Chongdarakul 6,000,000 4.63
Kamolwan Limthongkul 6,000,000 4.63
About Manager Media Group PCL
Headquartered in Bangkok, Thailand, Manager Media Group Public
Company Limited -- http://www.manager.co.th/-- publishes a
variety of daily, weekly, and monthly publications. Periodicals
include Manager monthly magazine, Manager weekly newspaper,
Manager daily newspaper, and Thai Investment weekly magazine.
The Company also partners with the Vietnam News Agency to
publish The Vietnam News, an English-language daily newspaper in
Vietnam.
On October 30, 2006, Prawit Wipusirikup of RSM Nelson Wheeler
Audit Limited, the company's independent auditors, raised
substantial doubt on the company's ability to continue as a
going concern. The auditor cited that Manager Media Group and
its subsidiary company is in the process of business
rehabilitation and has built up significant accumulated losses
over the last few years and has suffered recurring losses from
operations. The company recorded consolidated shareholders'
deficit as of September 30, 2006, amounting to THB391.23 million
(the company's shareholders' deficit as of that date was
THB361.76 million).
Moreover, the group's amended business rehabilitation plan
approved by the court requires the group to complete such
rehabilitation by February 2, 2007.
The auditor adds that the continuing business operations of the
Group substantially depends on: a) the Group's ability to
complete the business rehabilitation plan within the timeframe
set by the court; and b) the ability of the group to operate
successfully in the future and generate adequate cash flows from
operations.
However, on Jan. 31, 2006, Manager Media Group PCL filed a
request to the court to extend the due date of the
administration period of the Rehabilitation Plan to 6 months
from its Feb. 2, 2007 deadline.
Manager Media PCL is waiting for the court's response on the
matter.
*********
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.
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