/raid1/www/Hosts/bankrupt/TCRAP_Public/070226.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
Monday, February 26, 2007, Vol. 10, No. 40
Headlines
A U S T R A L I A
ALRHET PTY: Members and Creditors to Receive Wind-Up Report
APPLECROSS MEDICAL: Appoints Doran and Campbell as Liquidators
CELAD PTY: Members Resolve to Liquidate Business
COLES GROUP: Moody's Places Ratings on Review
INGLEBROOK PTY: Enters Wind-Up Proceedings
LANDIS PRINTING: Members and Creditors to Meet on March 22
NORTHERN DISTRICT: Members' Final Meeting Slated for March 23
NYLEX LIMITED: AU$18.3-M Turnaround Takes EBIT to AU$4.6 Million
PG&E CORPORATION: Creditors' Proofs of Debt Due on March 26
PSIVIDA LIMITED: Issues 50 Million Shares by Private Placement
PSIVIDA LIMITED: Shareholders Unanimously Pass Resolutions
RED DOOR: Creditors Must Prove Debts by March 6
SAFE-WASTE: To Declare Dividend on March 13
STARTUNE HOLDINGS: Placed Under Members' Voluntary Liquidation
US CYCLES: Members and Creditors to Meet on March 13
YANGEBUP PANEL: Members and Creditors to Meet on March 20
C H I N A & H O N G K O N G
AGRICULTURAL BANK: Posts CNY58.1 Bil. Operating Profit in 2006
AGRICULTURAL BANK: Aims for Public Listing in 2008
CENTIGAIN LIMITED: Enters Wind-Up Proceedings
CHENGDU BOOK: Names Ye Zhaoping as General Manager
CHINA SOUTHERN: To Launch 10 International Routes This Year
COMMERCIAL COMPUTING: Members' Final Meeting Slated for March 26
FAIR BUSINESS: Appoints Lam Kwong Chak, Zaloit as Liquidator
FRANCIS WONG: Wong Man Chung Resigns Liquidator Post
H.C.T. LIMITED: Members' Final Meeting Set for March 26
HAINAN AIRLINES: Inks Deal to Buy Stakes in Shenzhen Leasing
HAINAN AIRLINES: Expects to Post Profit in 2006
LANE CRAWFORD: Appoints Joint Liquidators
NINGBO BIRD: To Invest US$38 Million in TD-SCDMA
NINGBO BIRD: Unit Divest Holdings in 15 Companies
NINGBO BIRD: Expects to Record Profit in 2006
SCHNEIDER EQUIPMENT: Court to Hear Wind-Up Petition on April 11
SHENZHEN SEG: Reports 16% Increase in Net Income For 2006
SGIS SONGSHAN: Issues CNY1.5-Billlion Convertible Bonds
SHANGHAI PUDONG: To Raise Holdings in First Sino and UnionPay
SHANGHAI PUDONG: Divests Entire Holding in Jiugui Liquor
SICHUAN CHANGJIANG: Gets CNY18.67-M Help From Yibin Fin. Bureau
SONGLIAO AUTOMOBILE: Court Freezes Assets Due to Loan Dispute
SUN PROUD: Appoints Chang Tai as Liquidator
TAI YUAN TIANLONG: To Implement Share Merger Reform
TV MART: Liquidator Resigns from Post
WELLS ELECTRICAL: Wind-Up Hearing Slated for March 7
WINOWNER GROUP: Court Orders Payment of CNY10 Mln. Plus Interest
YUEYANG HENGLI: Gets New President; CEO Steps Down
YUEYANG HENGLI: Expects to Report CNY7-14 Mil. Profit in FY 2006
YUEYANG HENGLI: Settles Capital Dispute with Six Companies
I N D I A
AFFILIATED COMPUTER: Fitch Assigns Low B Ratings, Removes Watch
ALLAHABAD BANK: Increases Benchmark Prime Lending Rate to 12.50%
ANDHRA BANK: Prudential ICICI Increases Stake to 5.025%
ARTSON ENGINEERING: Profit Soars 363% to INR19.13MM in 4th Qtr.
BANK OF BARODA: Forms JV with Pioneer Global Asset Management
BRITISH AIRWAYS: Orders Four Longhaul Boeing 777-200 ER Aircraft
CENTURION BANK: To Increase Prime Lending Rate to 14.50%
GENERAL MOTORS: Inks US$1 Bil. Global Networking Deal with AT&T
* Fitch to Commence Rating India States
I N D O N E S I A
ALCATEL-LUCENT: Provides Content Platform for Partner Comms
ALCATEL-LUCENT: Selected by Datacom Company to Supply IP/MPLS
AVNET INC: Selects John Paget to Lead Technology Solutions Group
BANK CENTRAL ASIA: To Post More Than IDR4 Tril. Profit in 2006
BANK DANAMON: To Grant Loans to Motorcycle Dealers
BANK INTERNASIONAL: Posts 13% Fall In 2006 Net Profit
CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds
DAVOMAS: Expects Profit to Rise 40% in 2007, Investor Daily Says
EXCELCOMINDO PRATAMA: Posts IDR651.9-Billion Net Profit for 2006
GARUDA INDONESIA: Gov't to Complete Stake Sale by End-June 2006
INDAH KIAT: Incurs US$82-Bil. Net Loss for 2006 9-Month Period
MCDERMOTT INT'L: To Release 4th Quarter 2006 Results on March 1
PARKER DRILLING: Reports 4th Quarter & Full-Year 2006 Results
WILLBROS GROUP: Reveals Latest Project w/ Southeast Supply
J A P A N
AOZORA BANK: Appoints Kimikazu Noumi as New Chairman and CEO
BANCO BRADESCO: Paying Monthly Capital Interest on April 2
DELPHI CORP: Wants National Union to Provide Insurance Coverage
DELPHI CORP: Court Okays Bidding Procedures for Brake Hose Biz
JAPAN AIRLINES: To Operate Europe Charter Flights with JTB
SANYO ELECTRIC: SESC Initiates Probe Over Understated Losses
SAPPORO HOLDINGS: Steel Partners Steps Up Pressure on Bid
K O R E A
KOREA EXCHANGE BANK: Hana Financial to Make Second Bid for Bank
M A L A Y S I A
MYCOM BERHAD: Gets SC's Nod on Plan Implementation Extension
OLYMPIA INDUSTRIES: SC Okays Plan Completion Extension Request
STAR CRUISES: Incurs US$147.56 Mil. Net Loss in 4th Quarter 2006
TITAN CHEMICALS: Posts MYR773 Million Net Profit in FY 2006
N E W Z E A L A N D
ALERT ALARMS: Official Assignee Acts as Liquidator
BECKENHAM INVESTMENTS: Faces Liquidation Proceedings
CONNEXIONZ: To Raise Funds Through Share Purchase Plan
CROMDALE DEVELOPMENTS: Court Sets Liquidation Hearing on March 5
CRUSOE PROPERTIES: CIR Files Liquidation Petition
MAX TRANSPORT: Parsons and Kenealy to Act as Liquidators
MORRIS LIGHTING: CIR Seeks to Liquidate Company
NEW ZEALAND KNIGHTS: Creditors Must Prove Debts by March 9
NORTHSHORE TAVERNS: Court Appoints Joint Liquidators
NZ STONE: Creditors' Proofs of Claim Due on June 8
REVIVAL COMM: Liquidation Hearing Slated for March 1
SEALEGS CORP: Secures 2nd Patent for Amphibious Boat Technology
SSS GIFTS: Court to Hear Liquidation Petition on March 1
THREE SISTERS: Creditors to Prove Debts by March 9
P H I L I P P I N E S
EQUITABLE PCI: Board Resolves to Integrate Various Subsidiaries
GEOGRACE RESOURCES: Signs Garnierite MOA for Nickel Mine Rights
PHILCOMSAT HOLDINGS: Names Concepcion Poblador as New Director
GLOBE TELECOM: To Hold Annual Stockholder's Meeting on March 28
SAN MIGUEL: Moody's Affirms Ba1 Rating After Coca-Cola Sale
S I N G A P O R E
DIGILAND INTERNATIONAL: Director Increases Stake
ODYSSEY RE: Declares Dividend on Series A & B Preferred Shares
ODYSSEY RE: Increases Quarterly Dividend to US$0.0625 Per Share
REFCO INC: Refco LLC Trustee Pays Cure Amounts for US$38.3 Mil.
REFCO INC: Refco LLC Pays US$9.6 MM in Exchange Memberships
SCOTTISH RE: 4Q Earnings Report Cues Fitch to Lower Ratings
SCOTTISH RE: AM Best Continues Review After Reporting Loss
T H A I L A N D
COMPUTER SCIENCES: Soliciting Consents From Noteholders
DAIMLERCHRYSLER AG: Volkswagen & Renault-Nissan Snub Chrysler
DAIMLERCHRYSLER: Chrysler CEO Tells Workers of Partnership Talks
TOTAL ACCESS: Fitch Places BB+ Rating on Watch Negative
- - - - - - - -
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A U S T R A L I A
=================
ALRHET PTY: Members and Creditors to Receive Wind-Up Report
-----------------------------------------------------------
The members and creditors of Alrhet Pty Ltd will have their
final meeting on March 20, 2007, at 10:00 a.m., to receive the
liquidator's report regarding the company's wind-up proceedings
and property disposal.
The company's liquidator can be reached at:
Graeme Lean FCPA
G. T. Lean & Associates
424 Fitzgerald Street
North Perth
Western Australia 6006
Australia
About Alrhet Pty
Alrhet Pty Ltd provides photocopying and duplicating services.
The company is located in Western Australia, Australia.
APPLECROSS MEDICAL: Appoints Doran and Campbell as Liquidators
--------------------------------------------------------------
The members of Applecross Medical Group Pty Ltd held a meeting
on Feb. 7, 2007, and agreed to wind up the company's operations.
Accordingly, Gary Peter Doran and Christopher Robert Campbell
were appointed as joint liquidators.
The Joint Liquidators can be reached at:
Gary Peter Doran
Christopher Robert Campbell
Deloitte Touche Tohmatsu
Level 14, Woodside Plaza
240 St George's Terrace
Perth Western Australia 6000
About Applecross Medical
Applecross Medical Group Pty Ltd is engaged in managing offices
and clinics of medical doctors. The company is located in
Western Australia, Australia.
CELAD PTY: Members Resolve to Liquidate Business
------------------------------------------------
The members of Celad Pty Ltd held an extraordinary general
meeting on Feb. 7, 2007, and resolved to liquidate the company's
business.
Accordingly, Gary Peter Doran and Christopher Robert Campbell
were appointed as joint liquidators.
The Joint Liquidators can be reached at:
Gary Peter Doran
Christopher Robert Campbell
Deloitte Touche Tohmatsu
Level 14, Woodside Plaza
240 St George's Terrace
Perth, Western Australia 6000
Australia
About Celad Pty
Celad Pty Ltd provides health and allied services. The company
is located in New South Wales, Australia.
COLES GROUP: Moody's Places Ratings on Review
---------------------------------------------
Moody's Investors Service has placed the ratings of Coles Group
Limited on review with direction uncertain.
The review has been prompted by the announcement that the Coles
board is considering various ownership options for the company
and its various retail formats.
"The review will focus on the group's long-term asset and
financial profile, should a change of control emerge, or should
material changes occur to the company's asset base," says Peter
Fullerton, a Moody's AVP/Analyst.
"In the event a higher rated trade or industry participant
obtains control, then the ratings will likely experience upward
pressure," says Fullerton.
"Alternatively, if a private equity consortium gains control,
the rating would most likely come under downward pressure, given
expectations that gearing levels could increase materially
together with heightened risk of the sale of one or more its
retail formats," adds Fullerton.
"However, the ratings may remain at current levels if no
material change occurs to the company's ownership structure,
strategy, and operations" says Fullerton.
The ratings placed on review are:
Issuer Rating - Baa2
Senior Unsecured Rating - Baa2
Subordinated MTN Rating - Baa3
Preference Stock Rating - Ba1
Short-Term Commercial Paper Rating - P-2
Moody's notes that certain protections exist for debt holders
such as change of control provision, restriction on asset sales,
and certain financial covenants.
"Such a situation materially incentivises any new owners to
refinance or negotiate with existing debt holders," says
Fullerton.
Coles Group, based in Melbourne, is one of Australia's largest
retailers. Approximately 80% of its revenues are obtained from
its core supermarkets division, which encompasses the retailing
of food and groceries, liquor and fuel. The company also
operates a number of other retail formats, including Kmart and
Target, which retail general merchandise and apparel, and
Officeworks.
INGLEBROOK PTY: Enters Wind-Up Proceedings
------------------------------------------
At a general meeting held on Jan. 31, 2007, the members of
Inglebrook Pty Ltd resolved to voluntarily wind up the company's
operations.
Accordingly, creditors are asked to prove their debts by
March 9, 2007, to be included in the company's distribution of
dividend.
The company's joint & several liquidators can be reached at:
Anthony Jay Edward
Moira Kathleen Carter
Jessup & Partners
Level 3, 155-157 Denham Street
Townsville, Queensland 4810
Australia
Telephone:(07) 4772 3515
Facsimile:(07) 4721 4513
About Inglebrook Pty
Inglebrook Pty Ltd is a distributor of sugarcane and sugar
beets. The company is located in Queensland, Australia.
LANDIS PRINTING: Members and Creditors to Meet on March 22
----------------------------------------------------------
The members and creditors of Landis Printing & Publishing Pty
Ltd will have their meeting on March 22, 2007, at 2:30 p.m.
At the meeting, the members and creditors will be asked to:
-- receive the final receipts and payments from the company's
liquidator;
-- receive the formal notice of the end of the
administration; and
-- discuss other business.
The liquidator can be reached at:
Susan Carter
Worrells Solvency & Forensic Accountants
Web site: http://www.worrells.net.au
About Landis Printing
Landis Printing & Publishing Pty Ltd is engaged with
miscellaneous publishing. The company is located in Queensland,
Australia.
NORTHERN DISTRICT: Members' Final Meeting Slated for March 23
-------------------------------------------------------------
The members of Northern District Investments Pty Ltd will meet
on March 23, 2007, at 11:00 a.m., to receive the liquidator's
report regarding the company's wind-up proceedings and property
disposal.
The company's liquidator can be reached at:
Michael Schramm
c/o Michael Schramm
Pacifica Chartered Accountants
PO Box 993N Cairns
North Queensland 4870
Australia
About Northern District
Northern District Investments Pty Ltd is a land subdivider and
developer, except for cemeteries. The company is located in
Queensland, Australia.
NYLEX LIMITED: AU$18.3-M Turnaround Takes EBIT to AU$4.6 Million
----------------------------------------------------------------
Nylex Limited posted an AU$18.3 million turnaround in underlying
operating performance for the six months ending Dec. 31, 2006,
that wipes the company's operating losses and takes its earnings
before interest, tax, and one-off items (EBIT) to
AU$4.6 million.
The postitive result comes amid the recent completion of Nylex's
AU$40 million capital raising and refinancing of its existing
bank group and the appointment of three new Directors to its
board -- Ian Fraser, Suresh Withana, and John Nicholls.
The AU$40 million sum was raised from share and convertible
notes rights issues to existing shareholders including Garden
Park Equities and new investors Harmony Investment Fund Ltd. and
Investec Bank (Australia) Ltd. while attaching options may allow
future equity needs to be funded.
Half-yearly results for Nylex also show that all its businesses
have improved over the comparable trading period from January to
June 2006, as new managerial appointments take effect and the
planned company restructure outlined at its last annual general
meeting gathers pace.
According to the company's financials, EBIT excluding one-off
items has increased 30% over the first half of 2006 and under-
performing businesses have been stabilized.
Among the businesses to show strong growth are the Water and
Consumer arms, particularly in sales of garden and water-related
products, with new product initiatives being actively pursued.
Existing automotive contracts to manufacture and supply fuel
tanks for Holden's Commodores have also proved successful, while
new contracts to manufacture Army foot lockers, floating modules
for water conservation and Telstra pits are likely to boost
operations in the second half of the year.
Nylex Executive Chairman Peter George noted that "Nylex remains
on track to deliver substantially improved earnings for the full
year as the range of business improvement initiatives
implemented last year gather momentum. We expect continue
strong growth in sales of our range of water conservation
products and continued productivity improvement in manufacturing
operations." Mr. George adds.
About Nylex
Headquartered in Melbourne, Australia, Nylex Limited --
http://www.nylexlimited.com.au/-- is an Australian marketer,
manufacturer and service provider of plant hire services,
building products, automotive products, plastic products, and
engineered products.
Nylex has been in restructuring for 11 years, the past six saw
the Company management balance between keeping creditors happy
and placating shareholders, who over time lost 90% of their
investments. Nylex owed its bank lenders more than AU$400
million at the peak and has basically been in a controlled
liquidation of the mish-mash of assets built up in the 1990s.
The Company has sold many businesses to reduce its debt, moved
some production offshore and now has a strong balance sheet and
is looking for acquisitions. It has also launched a major push
to build on its strong position in garden water control to
become a leader in overall household water conservation.
The Troubled Company Reporter - Asia Pacific reported on
November 29, 2005, that Nylex's future earnings are uncertain
after shareholders sold the Company's profitable asset,
Lucrative AH Plant Hire, to a rival controlled by Nylex
shareholder and Seven Network Chairman Kerry Stokes.
Shareholders agreed to sell AH Plant Hire to the Stokes-
controlled National Hire group for AU$111 million, which just
scrapped in at the bottom of the valuation range calculated by
independent expert Ernst & Young Valuation Services.
Nylex is operating under the close supervision of a group of
banks, which are keen to end the five-year asset sell-off.
In May 2006, Nylex announced a restructure that will cost about
AU$10 million, and has started talks with potential financiers
and existing and potential senior debt providers.
PG&E CORPORATION: Creditors' Proofs of Debt Due on March 26
-----------------------------------------------------------
A final dividend will be declared by PG&E Corporation Australia
Pty Ltd on April 6, 2007.
Accordingly, creditors must prove their debts by March 26, 2007,
to be included in the company's distribution of dividend.
The liquidator can be reached at:
John Georgakis
Ernst & Young
Level 5, 1 Eagle Street
Brisbane Queensland 4001
Australia
Telephone:(07) 3243 3607
About PG & E
PG & E Corporation Australia Pty Ltd provides management-
consulting services. The company is located in Queensland,
Australia.
PSIVIDA LIMITED: Issues 50 Million Shares by Private Placement
--------------------------------------------------------------
pSivida Limited disclosed with the Australian Securities
Exchange a private placement of 50 million fully paid ordinary
shares issued at AU$0.23 each to raise AU$11.5 million before
costs to Australian, European, and United States investors --
subject to shareholder approval.
On Feb. 22, 2007, the company informed the United States
Securities and Exchange Commission that it has issued an
aggregate of 50,044,132 fully paid ordinary shares by way of
private placement.
Each share will be issued with two free attaching options at an
exercise price of AU$0.23 and a term of four years. Placements
to U.S. investors were made pursuant to Regulation D under the
U.S. Securities Act and placements to non-U.S. investors were
made pursuant to Regulation S. under that Act. HPC Capital
Management Corp., a New York-based investment bank, acted as the
sole placement agent.
The capital raising was undertaken in replacement of the
previously announce Nordic Biotech Fund interim financing.
According to Dr. Paul Ashton, Managing Director of pSivida, the
"capital raising allows the company to focus on the recently
announced exclusive licensing negotiations with a global
pharmaceutical company and continue its primary focus on near
and medium term opportunities, particularly in the area of
controlled slow release drug delivery technologies."
On Feb. 22, 2007, the company informed the United States
Securities and Exchange Commissio that pSivida has issued an
aggregate of 50,044,132 fully paid ordinary shares by way of
private placement.
About pSivida Limited
pSivida Limited -- http://www.psivida.com/-- is an Australian
company existing pursuant to the Australian Corporations Act
2001 with shares listed on the Australian Securities Exchange,
the NASDAQ Global Market, the Frankfurt Stock Exchange, and
London's OFEX International Market Service. The company is
committed to biomedical applications of nano-technology and has
as its core focus the development and commercialization of drug
delivery products in the healthcare sector, initially in
ophthalmology and oncology.
The company's corporate headquarter is located at:
Level 12 BGC Centre
28 The Esplanade
Perth WA 6000, Australia
Tel No. (+61 8) 9226 5099
The legal entity that became pSivida was incorporated as the
Sumich Group Ltd in April 1987. The Sumich Group operated a
business that was placed into administration or receivership in
1998. pSivida was subsequently formed on December 1, 2000, upon
entering into a court-approved arrangement with Sumich Group's
creditors which fully extinguished all prior liabilities as of
that time. Subsequently, the company appointed new directors
and officers and re-listed on the Australian Securities Exchange
as pSivida. The company was then recapitalized through a
placement to investors of 9.3 million ordinary shares at AU$0.30
per share, raising AU$2.79 million.
pSivida revealed that it has not made substantial divestitures
in the past three fiscal years through the present.
Going Concern Doubt
After auditing the company's consolidated balance sheet as of
June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered
Accountants, said that as of October 31, 2006, pSivida has
determined there may be a risk of default associated with
maintaining the US$1.5 million minimum cash balance. In the
event of a default, the noteholder is entitled to call the full
value of the liability. This risk of default, together with the
company's recurring losses from operations and negative cash
flows from operations, raise substantial doubt about its ability
to continue as a going concern.
Deloitte notes that the financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.
PSIVIDA LIMITED: Shareholders Unanimously Pass Resolutions
----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 26, 2007, pSivida Limited had scheduled to hold a General
Meeting for its shareholders on Feb. 20.
In an update, pSivida informs the Australian Securities Exchange
that its shareholders have unanimously passed all resolutions
presented during the Meeting:
1) Ratification of Past Placement of Shares and Options;
2) Ratification of Past Issue of Warrants to Absolute Octane
Fund and Australian Investments Limited;
3) Ratification of Past Issue of Warrants to Castlerigg;
4) Approval of Proposed Issue of Warrants to Castlerigg;
5) Approval of Proposed Issues of ADSs and Warrants to Nordic
Biotech;
6) Approval of Possible Placements of Shares and Options; and
7) Approval of Possible Placements of ADSs and Warrants.
About pSivida Limited
pSivida Limited -- http://www.psivida.com/-- is an Australian
company existing pursuant to the Australian Corporations Act
2001 with shares listed on the Australian Securities Exchange,
the NASDAQ Global Market, the Frankfurt Stock Exchange, and
London's OFEX International Market Service. The company is
committed to biomedical applications of nano-technology and has
as its core focus the development and commercialization of drug
delivery products in the healthcare sector, initially in
ophthalmology and oncology.
The company's corporate headquarter is located at:
Level 12 BGC Centre
28 The Esplanade
Perth WA 6000, Australia
Tel No. (+61 8) 9226 5099
The legal entity that became pSivida was incorporated as the
Sumich Group Ltd in April 1987. The Sumich Group operated a
business that was placed into administration or receivership in
1998. pSivida was subsequently formed on December 1, 2000, upon
entering into a court-approved arrangement with Sumich Group's
creditors which fully extinguished all prior liabilities as of
that time. Subsequently, the company appointed new directors
and officers and re-listed on the Australian Securities Exchange
as pSivida. The company was then recapitalized through a
placement to investors of 9.3 million ordinary shares at AU$0.30
per share, raising AU$2.79 million.
pSivida revealed that it has not made substantial divestitures
in the past three fiscal years through the present.
Going Concern Doubt
After auditing the company's consolidated balance sheet as of
June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered
Accountants, said that as of October 31, 2006, pSivida has
determined there may be a risk of default associated with
maintaining the US$1.5 million minimum cash balance. In the
event of a default, the noteholder is entitled to call the full
value of the liability. This risk of default, together with the
company's recurring losses from operations and negative cash
flows from operations, raise substantial doubt about its ability
to continue as a going concern.
Deloitte notes that the financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.
RED DOOR: Creditors Must Prove Debts by March 6
-----------------------------------------------
Red Door Property Group Pty Ltd will declare a dividend on
March 13, 2007.
In this regard, creditors are asked to prove their debts by
March 6, 2007, to be included in the company's distribution of
dividend.
The liquidator can be reached at:
Ivor Worrell
Worrells Solvency & Forensic Accountants
8th Floor, 102 Adelaide Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3225 4383
Facsimile:(07) 3225 4311
Web site: http://www.worrells.net.au
About Red Door
Red Door Property Group Pty Ltd is a general contractor of
single-family houses. The company is located in Queensland,
Australia.
SAFE-WASTE: To Declare Dividend on March 13
-------------------------------------------
Safe-Waste Industries Pty Ltd, which is subject to a
deed of company arrangement, will declare a dividend on
March 13, 2007.
Accordingly, creditors are required to prove their debts by
March 6, 2007, to be included in the dividend distribution.
The deed administrator can be reached at:
Michael Peldan
Worrells Solvency & Forensic Accountants
8th Floor, 102 Adelaide Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3225 4300
Facsimile:(07) 3225 4311
Web site: http://www.worrells.net.au
About Safe-Waste Industries
Safe-Waste Industries Pty Ltd -- http://www.safewaste.com.au/--
is a privately owned Australian-based company.
The company develops the pollution control industry in Australia
by the application of unique innovation and practical
application of safe, effective and environmentally beneficial
technology.
Safe-Waste has a complete Environmental Consultancy Service,
which includes: Accredited EPA Consultants; Stormwater Diversion
Specialists; Waste Water Storage and Treatment; Site
Remediation; Pollution Control System Design; Complete Site
Assessment; Modifications to Existing Systems; and Turn Key
Installations.
STARTUNE HOLDINGS: Placed Under Members' Voluntary Liquidation
--------------------------------------------------------------
The members of Startune Holdings Pty Ltd held a general meeting
on Feb. 7, 2007, and decided to liquidate the company's
business.
In this regard, Gary Peter Doran and Christopher Robert Campbell
were appointed as joint liquidators.
The Joint Liquidators can be reached at:
Gary Peter Doran
Christopher Robert Campbell
Deloitte Touche Tohmatsu
Level 14, Woodside Plaza
240 St George's Terrace
Perth Western Australia 6000
Australia
About Startune Holdings
Startune Holdings Pty Ltd is engaged in managing offices and
clinics of medical doctors. The company is located in Western
Australia, Australia.
US CYCLES: Members and Creditors to Meet on March 13
----------------------------------------------------
The members and creditors of Us Cycles Pty Ltd will meet on
March 13, 2007, at 9:30 a.m.
At the meeting, the members and creditors will be asked to:
-- receive the final receipts and payments from the company's
liquidator;
-- receive the formal notice of the end of the
administration;
and
-- discuss other business.
The company's liquidator can be reached at:
Morgan Lane
Worrells Solvency & Forensic Accountants
8th Floor, 102 Adelaide Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3225 4300
Facsimile:(07) 3225 4311
Web site: http://www.worrells.net.au
About Us Cycles
About Us Cycles is a motorcycle dealer. The company is located
in Queensland, Australia.
YANGEBUP PANEL: Members and Creditors to Meet on March 20
---------------------------------------------------------
The members and creditors of Yangebup Panel & Paint Pty Ltd will
meet on March 20, 2007, at 11:00 a.m.
At the meeting, the members and creditors will be asked to:
-- receive the report of the company's liquidator regarding
the company's wind-up proceedings and property disposal
exercises;
-- consider and approve the liquidator's remuneration to
date; and
-- resolve other matters that may arise during the meeting.
The company's liquidator can be reached at:
Graeme Lean FCPA
G. T. Lean & Associates
424 Fitzgerald Street
North Perth
Western Australia 6006
Australia
About Yangebup Panel
Yangebup Panel & Paint Pty Ltd operates top, body, and
upholstery repair shops. The company is located in Western
Australia, Australia.
================================
C H I N A & H O N G K O N G
================================
AGRICULTURAL BANK: Posts CNY58.1 Bil. Operating Profit in 2006
--------------------------------------------------------------
The Agricultural Bank of China's operating profit in 2006 rose
37.04% to CNY58.1 billion, Forbes reports, citing a statement
from the bank.
In addition, the bank said its non-performing loan ratio at the
end of 2006 was 2.73 percentage points lower than the 26.17%
reported at the end of 2005, the report relates.
Agricultural Bank's outstanding loans rose by CNY308.6 billion
from the beginning of 2006, while outstanding deposits rose
CNY699.8 billion from the start of 2006, Forbes says, noting
that the bank however did not provide absolute figures.
At the end of 2005, the bank's outstanding loans totaled CNY2.83
trillion, while the outstanding deposits stood at CNY4.04
trillion, Forbes notes.
* * *
The Agricultural Bank of China -- http://www.abocn.com/-- is
the mainland's fourth largest bank. It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.
Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.
The Troubled Company Reporter - Asia Pacific reported on June
27, 2006, that the National Audit Office found accounting
irregularities involving CNY51.6 billion, CNY14.27 billion of
which come from deposit business, CNY27.62 billion from loan
grants, and CNY9.72 billion from fraudulent bill issuance.
Fitch Ratings gave the Bank an Individual rating 'E'.
AGRICULTURAL BANK: Aims for Public Listing in 2008
--------------------------------------------------
Agricultural Bank of China is aiming to go public in 2008,
probably offering both A-shares and H-shares simultaneously in
Shanghai and Hong Kong, Forbes says, citing China Securities
Journal.
"Although the time and place for the listing have not been
decided yet, the bank is very likely to go to market in 2008 if
the reform into a stockholding company goes smoothly," the
Securities Journal said citing an unnamed source with the bank.
Agricultural Bank of China is expected to become a joint stock
lender by the end of this year after receiving a capital
injection from the government, the Securities Journal added.
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, the Agricultural Bank will have its capital
increased by Central Huijin Investment Co., an investment
company owned by the central bank, in the first half of this
year.
The actual figure of the capital injection will depend on the
result of the National Audit Office's report, the TCR-AP said.
However, a Huijin senior official was cited by the Xinhua News,
saying that the figure will be at US$25 to US$30 billion,
without revealing how it got the number.
* * *
The Agricultural Bank of China -- http://www.abocn.com/-- is
the mainland's fourth largest bank. It has lagged behind other
major Chinese commercial banks, which have received government
injections of new capital and been allowed to link up with
foreign partners in preparation for raising money on foreign
stock exchanges.
Despite posting operating profits of over CNY42.4 billion in
2005, the Bank is still carrying billions of dollars in unpaid
loans to state companies, which it says accounted for 26% of its
lending at the end of last year.
The Troubled Company Reporter - Asia Pacific reported on June
27, 2006, that the National Audit Office found accounting
irregularities involving CNY51.6 billion, CNY14.27 billion of
which come from deposit business, CNY27.62 billion from loan
grants, and CNY9.72 billion from fraudulent bill issuance.
Fitch Ratings gave the Bank an Individual rating 'E'.
CENTIGAIN LIMITED: Enters Wind-Up Proceedings
---------------------------------------------
At an extraordinary general meeting held on Feb. 7, 2007, the
shareholders of Centigain Limited resolved to voluntarily
liquidate the company's business.
In this regard, Lam Kwong Chak, Zaloit was appointed as
liquidator.
The liquidator can be reached at:
Lam Kwong Chak, Zaloit
29th Floor, K. Wah Centre,
191 Java Road, North Point
Hong Kong
CHENGDU BOOK: Names Ye Zhaoping as General Manager
---------------------------------------------------
The board of directors of Chengdu Book Digital Co., Ltd. has
appointed Ye Zhaoping as General Manager, Reuters Key
Development reports.
* * *
Chengdu Book Digital Co., Ltd. -- http://www.e683.com/-- is a
manufacturer of electronic components, as well as digital audio
and video products. Deflection yokes, applied in kinescopes of
televisions and computer monitors, are the company's main
products. The company's major production workshops are based in
Dongguan, Guangdong Province, and have an aggregate construction
area of over 30,000 square meters.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$3.07 million, on total assets of US$21.50 million.
Xinhua Far East China Ratings gave the company a BB+ issuer
credit rating.
CHINA SOUTHERN: To Launch 10 International Routes This Year
-----------------------------------------------------------
China Southern Airlines plans to launch 10 international direct
routes that depart from Guangzhou within the year, China Daily
reports.
According to the report, the routes to be launched will connect
Guangzhou with:
* Dubai in the United Arab Emirates,
* Sendai and Sapporo in Japan,
* Kathmandu in Nepal,
* Delhi in India,
* Siem Reap in Cambodia,
* Phuket in Thailand,
* Yangon in Myanmar, and
* Vientiane in Laos
The airline will also open a new route to Luanda in Angola in
Africa.
"It is the first time for China Southern to launch so many
international routes within a year," China Southern general
manager Si Xianmin was quoted by China Daily as saying. "The
new routes will be strategically important for our company to
become an airline company with very dense international
flights."
China Southern will also increase international routes starting
from other cities in China this year, the paper adds.
China Southern currently operates 82 international routes from
Guangzhou as well as other cities including Beijing, Shanghai,
Urumqi, Dalian, Shenyang, Harbin, Changchun, Guilin and Shantou.
China Daily notes that after the planned expansion, it will have
182 international flights from Guangzhou per week as compared to
136 at present.
Mr. Si also told the paper that the company will put into
operation another 68 aircraft this year, and its total number
will reach 440 by the year 2010.
Mr. Si noted "China Southern will officially join the Skyteam, a
key global airline alliance, later this year. That is equal to
say that our passengers can get access to over 16,000
international flights offered by its 11 members."
* * *
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings has downgraded China Southern
Airlines Company Limited's Foreign Currency and Local Currency
Issuer Default Ratings to B+ from BB-.
The Troubled Company Reporter - Asia Pacific reported in April
2006, that the carrier posted a net loss of CNY1.85 billion for
2005 versus a net loss of CNY48 million a year earlier.
COMMERCIAL COMPUTING: Members' Final Meeting Slated for March 26
----------------------------------------------------------------
Commercial Computing Limited, which is under members' voluntary
liquidation, will hold a final general meeting on March 26,
2007, at 10:00 a.m., at Level 28, Three Pacific Place in 1
Queen's Road East, Hong Kong.
At the meeting, the members will be given a report regarding the
company's wind-up proceedings and property disposal exercises.
FAIR BUSINESS: Appoints Lam Kwong Chak, Zaloit as Liquidator
------------------------------------------------------------
The shareholders of Fair Business Limited held a general meeting
on Feb. 7, 2007, and resolved to wind up the company's
operations.
In this regard, Lam Kwong Chak, Zaloit was appointed as
liquidator.
The Liquidator can be reached at:
Lam Kwong Chak, Zaloit
29th Floor, K. Wah Centre
191 Java Road, North Point
Hong Kong
FRANCIS WONG: Wong Man Chung Resigns Liquidator Post
----------------------------------------------------
Wong Man Chung, Francis ceased to act as the liquidator of
Francis Wong C.P.A. Co. Limited on Feb. 13, 2007.
As reported by the Troubled Company Reporter - Asia Pacific,
Mr. Wong was appointed as the company's liquidator on Oct. 18,
2006.
H.C.T. LIMITED: Members' Final Meeting Set for March 26
-------------------------------------------------------
The members of H.C.T. Limited will hold a final meeting on
March 26, 2007, at 4:30 p.m., at 6th Floor, Kwan Chart Tower, 6
Tonnochy Road in Wanchai, Hong Kong.
At the meeting, Puen Wing Fai, as H.C.T. Limited's liquidator,
will present the final accounts of the company's wind-up
proceedings and property disposal exercises.
HAINAN AIRLINES: Inks Deal to Buy Stakes in Shenzhen Leasing
------------------------------------------------------------
Hainan Airlines Group will acquire the 21.66% stake of 999 Group
in Shenzhen Financial Leasing, China Hospitality News reports.
The paper, citing Shenzhen Financial Leasing General Manager
Wang Chong, said that the stock transfer will be completed soon.
After the purchase, Hainan Airlines will be engaged in the
aircraft leasing business and will become the first national
airlines company to enter the airplane-leasing field in China,
the paper says.
China Hospitality relates that Hainan Airlines top customers
will not be China's large airline companies, instead it will
capitalize on the upcoming Olympics as it is expected to
stimulate the demand of airplane transportation.
* * *
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 CC issuer credit rating.
HAINAN AIRLINES: Expects to Post Profit in 2006
-----------------------------------------------
Hainan Airlines Co. Ltd. expects to return to profitability in
2006 due to increased passengers and cargo traffic, Forbes
reports, citing a statement the company filed with the Shanghai
Stock Exchange.
Forbes recounts that in 2005, Hainan had a net loss of CNY215.82
million and a loss per share of CNY0.30.
* * *
Based in Haikou, Hainan Province, the People's Republic of
China, Hainan Airlines Co., Ltd. -- http://www.hnair.com/-- is
an airline company that operates nearly 500 domestic routes in
more than 80 major cities. It also provides scheduled and non-
scheduled international flights from Hainan Province to
Southeast Asia and other Asian countries.
Xinhua Far East China Ratings gave the company a CC issuer
credit rating on October 31, 2005.
LANE CRAWFORD: Appoints Joint Liquidators
-----------------------------------------
On Feb. 13, 2007, Katherine Fung Wai Yee and Chan Man To Lane
were appointed as the liquidators of:
1) Lane Crawford (Beijing) Limited,
2) Lane Crawford (Guangzhou) Limited, and
3) Lane Crawford (Shanghai) Limited
The Joint Liquidators can be reached at:
Katherine Fung Wai Yee
Chan Man To
23rd Floor, Wheelock House
20 Pedder Street, Cental
Hong Kong
NINGBO BIRD: To Invest US$38 Million in TD-SCDMA
------------------------------------------------
Ningbo Bird Co. intends to invest US$38 million to develop
handsets for the domestic 3G technology known as TD-SCDMA, EE
Times Online reports.
According to the report, the company has already designed two 3G
phones, both TD-SCDMA, and is currently developing a third.
Some of the early development funds are coming from a US$1.25
million grant from the government, EE Times says, citing a
company's statement.
Handset makers are eyeing the 3G market as the Chinese
government is likely to issue at least three 3G licenses in
2007, EE Times relates. Chipmakers are also beginning to roll
out second-generation TD-SCDMA products that they claim can hit
a peak data rate of 384Kbits per second, the minimum needed for
3G, the paper adds.
EE Times notes that Ningbo Bird is also working with Beijing-
based chip designer Vimicro Corp. to develop 3G multimedia
terminals, a project funded by the government. The project's
goal is to reach total annual sales of two million units of 3G
mobile multimedia chips, plus a domestic market share of 20% or
more within three years, EE Times notes.
* * *
Based in Ningbo, Zhejiang Province, Ningbo Bird Co., Ltd. --
http://www.birdintl.com/main.html-- is principally engaged in
the development, manufacture and sale of mobile communications
products. The company offers mobile phones and accessories,
communications system equipment, personal digital assistants
(PDAs), office equipment and other electronics products, under
the brand name of Bird. The company also exports its products
to over 60 countries, including the United States, Mexico,
Argentina, and France, among others.
Xinhua Far East China Ratings gave the company a BB- issuer
credit rating on April 5, 2006.
NINGBO BIRD: Unit Divest Holdings in 15 Companies
-------------------------------------------------
Ningbo Bird Co., Ltd.'s controlled subsidiary -- a Hubei-based
telecommunications company -- will divest its holdings in 15 of
its controlled subsidiaries, Reuters Key Development relates.
According to the report, the Hubei-based telecommunications
company will sell:
-- its entire holdings in four Hubei-based companies to Zhou
Guangzhi at CNY1.23 million;
-- its 34% stake each in six Henan-based companies to Sun
Guoqing at CNY1.44 million,
-- its entire holdings in a Jiangxi-based company to Liu Zhe
at CNY313,100,
-- its entire holdings in two Anhui-based companies to You
Xiaohe at CNY125,800, and
-- its entire holdings in two Zhejiang-based companies to
Ren Jian for CNY180,600.
* * *
Based in Ningbo, Zhejiang Province, Ningbo Bird Co., Ltd. --
http://www.birdintl.com/main.html-- is principally engaged in
the development, manufacture and sale of mobile communications
products. The company offers mobile phones and accessories,
communications system equipment, personal digital assistants
(PDAs), office equipment and other electronics products, under
the brand name of Bird. The company also exports its products
to over 60 countries, including the United States, Mexico,
Argentina, and France, among others.
Xinhua Far East China Ratings gave the company a BB- issuer
credit rating on April 5, 2006.
NINGBO BIRD: Expects to Record Profit in 2006
---------------------------------------------
Ningbo Bird Co., Ltd. expects to make positive profit for fiscal
2006 after reporting a loss of CNY471,202,679.59 in fiscal 2005,
Reuters Key Development reports.
* * *
Based in Ningbo, Zhejiang Province, Ningbo Bird Co., Ltd. --
http://www.birdintl.com/main.html-- is principally engaged in
the development, manufacture and sale of mobile communications
products. The company offers mobile phones and accessories,
communications system equipment, personal digital assistants
(PDAs), office equipment and other electronics products, under
the brand name of Bird. The company also exports its products
to over 60 countries, including the United States, Mexico,
Argentina, and France, among others.
Xinhua Far East China Ratings gave the company a BB- issuer
credit rating on April 5, 2006.
SCHNEIDER EQUIPMENT: Court to Hear Wind-Up Petition on April 11
---------------------------------------------------------------
Bank of China (Hong Kong) Limited filed a wind-up petition
against Schneider Equipment Limited on Feb. 1, 2007.
Accordingly, the wind-up petition will be heard before the High
Court of Hong Kong on April 11, 2007, at 9:30 a.m.
Bank of China's solicitor can be reached at:
Kao, Lee & Yip
17th Floor, Gloucester Tower
The Landmark
Central, Hong Kong
SHENZHEN SEG: Reports 16% Increase in Net Income For 2006
---------------------------------------------------------
Shenzhen Seg Samsung Glass Co., Ltd. posts a net income of
CNY46.85 million for the year ending Dec. 31, 2006, a 15.81%
increase from the net income of CNY40.46 million the company
registered a year ago, according to the company's financials.
Sales for the year 2006 fell 3% to CNY2.01 billion from CNY2.06
billion a year ago. The company's operating expenses increased
by 2.93% to CNY2.00 billion, causing the company's operating
income to fall 82.39% to CNY21.63 million.
* * *
Headquartered in Shenzhen, China, Shenzhen Seg Samsung Glass
Co., Ltd. -- http://www.ssg.com.cn/-- is principally engaged in
the manufacture and sale of colored glass substrates for color
televisions and computer display panels. The company offers its
products under two categories: color picture tube (CPT) glass
substrates, including 20-inch, 21-inch and 25-inch models, and
cathode ray display terminal (CDT) glass substrates, including
14-inch, 15-inch and 17-inch models.
Xinhua Far East China Ratings gave the company a BB+ issuer
credit rating on October 28, 2005.
SGIS SONGSHAN: Issues CNY1.5-Billlion Convertible Bonds
-------------------------------------------------------
SGIS Songshan Co., Ltd. will issue up to CNY1.538 billion
convertible corporate bonds, Reuters Key Development notes.
According to Reuters, the corporate bonds are issued at par
value (CNY100), with a term of five years and coupon rates of
1.9%, 2.3%, 2.68%, 3.06% and 3.44%, respectively.
The convertible period for the corporate bonds is from Aug. 6,
2007 to Feb. 5, 2012. The existing A shareholders will have
priority in the subscription and can buy CNY4.73 worth of bonds
for every share they hold, Reuters says.
Southwest Securities Co., Ltd. would act as the lead
underwriter.
* * *
Headquartered in Shaoguan, Guangdong Province, SGIS Songshan
Co., Ltd. -- http://www.sgss.com.cn/-- is principally engaged
in the manufacture and sale of iron and steel products, coke and
by-products of coal. The company offers medium steel plates,
which are mainly used for ships and automobiles; wire rods;
round bars, and deformed steel bars.
Xinhua Far East China Ratings gave the company a BB- issuer
credit rating on April 7, 2006.
SHANGHAI PUDONG: To Raise Holdings in First Sino and UnionPay
-------------------------------------------------------------
Shanghai Pudong Development Bank Company will increase its
holdings in First Sino Bank from 10% to 30% with an investment
of up to CNY300 million, Reuters reports.
In addition, the company will acquire 10 million shares in China
UnionPay at CNY25 million, Reuters adds.
* * *
Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business. The bank also offers Internet banking and
telephone banking.
On August 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed the bank's Individual D/E
rating. According to Fitch, the action reflects the bank's weak
credit profile, including sizeable under-capitalization and weak
asset quality relative to peers.
The bank also carries Moody's Ba1 rating for its long-term bank
deposits, NP short-term rating and a D bank financial strength
rating.
SHANGHAI PUDONG: Divests Entire Holding in Jiugui Liquor
--------------------------------------------------------
Shanghai Pudong Development Bank Company will sell its entire
stake of 31,000,000 shares in Jiugui Liquor Co., Ltd. for
CNY51,208,900 to Zhonghuang Co., Ltd., Reuters Key Development
reports.
* * *
Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business. The bank also offers Internet banking and
telephone banking.
On August 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed the bank's Individual D/E
rating. According to Fitch, the action reflects the bank's weak
credit profile, including sizeable under-capitalization and weak
asset quality relative to peers.
The bank also carries Moody's Ba1 rating for its long-term bank
deposits, NP short-term rating and a D bank financial strength
rating.
SICHUAN CHANGJIANG: Gets CNY18.67-M Help From Yibin Fin. Bureau
---------------------------------------------------------------
Sichuan Changjiang Packaging Holding Co will gain a subsidy of
CNY18,667,300 from the Yibin Finance Bureau, Reuters says.
* * *
Headquartered in Yuban, Sichuan Province, China, Sichuan
Changjiang Packaging Holding Co.Ltd is primarily engaged in the
repair and installation of paper-manufacturing machinery, as
well as the manufacture of paper testing instruments. During
the year ended December 31, 2005, the company discontinued its
paper-manufacturing business and leased paper-manufacturing
machinery of its subsidiary to another company.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$72.76 million, on total assets of US$13.11 million.
SONGLIAO AUTOMOBILE: Court Freezes Assets Due to Loan Dispute
-------------------------------------------------------------
Dandong Intermediate People's Court has frozen the shares owned
by SongLiao Automobile Co., Ltd. in a Shenyang-based automobile
company, Reuters reports.
According to the report, a total of 25 million shares were
frozen due to a loan dispute between the company and Dandong
Shuguang Vehicle Axle Company Limited.
* * *
Based in Shenyang, Liaoning Province, China, SongLiao Automobile
Co., Ltd. is a manufacturer of automobile components.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$3.76 million, on total assets of US$49.56 million.
SUN PROUD: Appoints Chang Tai as Liquidator
-------------------------------------------
Sun Proud Enterprises Limited held an extraordinary general
meeting on Feb. 21, 2007, and appointed Chang Tai as liquidator.
The company's Liquidator can be reached at:
Chang Tai
Flat A, 21/F., Block 7
King's Park Villa
1 King's Parkrise
Hong Kong
TAI YUAN TIANLONG: To Implement Share Merger Reform
---------------------------------------------------
Tai Yuan Tianlong Group Co., Ltd will implement its share merger
reform, which involves compensation to holders of the company's
tradable shares, Reuters reports.
Based on the final terms of the reform plan, holders of tradable
shares will be compensated 6.8 shares for every 10 tradable
shares they hold of record on Feb. 7, 2007.
The company's shareholders had previously approved the reform
plan, Reuters recounts.
* * *
Taiyuan, China-based Tai Yuan Tianlong Group Co., Ltd. is
principally engaged in the manufacture and sale of digital
versatile disc (DVD) players, amplifiers, speakers and other
consumer electronics, as well as the wholesaling and retailing
of various merchandise. The company 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$87.63 million, on total assets of US$13.47 million.
TV MART: Liquidator Resigns from Post
-------------------------------------
On Feb. 21, 2007, Kong Chi How, Johnson ceased to act as
liquidator of TV Mart Limited, which was under members'
voluntary liquidation.
The company's former Liquidator can be reached at:
Kong Chi How, Johnson
8/F., Wing On Centre
111 Connaught Road
Central, Hong Kong
WELLS ELECTRICAL: Wind-Up Hearing Slated for March 7
----------------------------------------------------
On Jan. 3, 2007, All-Line Incorporation has filed a petition to
wind up the operations of Wells Electrical (Hong Kong).
The petition will be heard before the High Court of Hong Kong on
March 7, 2007, at 9:30 a.m.
All-Line Incorporation's solicitor can be reached at:
Messrs. Chan, Wong & Lam
Suites 3009-12, 30th Floor
Shui On Centre
6-8 Harbour Road
Hong Kong SAR
WINOWNER GROUP: Court Orders Payment of CNY10 Mln. Plus Interest
----------------------------------------------------------------
Winowner Group Co., Ltd. was ordered by the court to repay the
debt it owed to Wuhan Branch of Cinda Asset Management Corp,
Reuters reports.
According to the report, Winowner owed Cinda Asset's Wujan
Branch with a principal amount of CNY10 million plus related
interest.
* * *
Formerly known as Wuhan Cheng Cheng Investment In Culture Group
Co., Ltd, Winowner Group Co., Ltd. -- http://www.winowner.com/-
- is principally engaged in the printing business, the
distribution of paper products, as well as the leasing and
renting of properties. The company primarily provides package
printing services for beer and cigarette manufacturers.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$62.88 million, on total assets of US$38.03 million.
YUEYANG HENGLI: Gets New President; CEO Steps Down
--------------------------------------------------
Yueyang Hengli Air-Cooling Equipment Inc. has announced the
resignation of Yin Mingkun as Chairman of the Board and the
appointment of Lin Bangzhao as President, Reuters reports.
* * *
Headquartered in Yueyang, Hunan Province, China, Yueyang Hengli
Air-Cooling Equipment -- http://www.yyhengli.com/-- is
principally engaged in the manufacture, processing, sale,
installation and maintenance of automotive air conditioners, as
well as the provision of air conditioning equipment testing
services. The company is also involved in the sale of
automobiles and the real estate business.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$17.71 million, on total assets of US$49.89 million.
YUEYANG HENGLI: Expects to Report CNY7-14 Mil. Profit in FY 2006
----------------------------------------------------------------
Yueyang Hengli Air-Cooling Equipment Inc. expects to report a
profit between CNY7 million to CNY14 million for the fiscal
2006, Reuters reports.
The company posted a loss of CNY158,480,812.10 in fiscal 2005,
Reuters recounts.
* * *
Headquartered in Yueyang, Hunan Province, China, Yueyang Hengli
Air-Cooling Equipment -- http://www.yyhengli.com/-- is
principally engaged in the manufacture, processing, sale,
installation and maintenance of automotive air conditioners, as
well as the provision of air conditioning equipment testing
services. The company is also involved in the sale of
automobiles and the real estate business.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$17.71 million, on total assets of US$49.89 million.
YUEYANG HENGLI: Settles Capital Dispute with Six Companies
----------------------------------------------------------
Yueyang Hengli Air-Cooling Equipment Inc. has reached a
settlement with six companies regarding a tied-up capital
dispute, Reuters reports.
Reuters relates that under the terms of the agreement, a
Jieyang-based real estate company will acquire the company's
41.1 million shares or a 28.99% stake from a holding company and
a Hunan-based investment company for CNY30 million.
The amount will then be transferred to the Yueyang as repayment
of the tied-up capital by the two transferees, the report notes.
Yueyang's liabilities of CNY23,478,614 owing to China Greatwall
Asset Management Co., Ltd. will be offset with the same tied-up
capital owed by the holding company, Reuters adds.
* * *
Headquartered in Yueyang, Hunan Province, China, Yueyang Hengli
Air-Cooling Equipment -- http://www.yyhengli.com/-- is
principally engaged in the manufacture, processing, sale,
installation and maintenance of automotive air conditioners, as
well as the provision of air conditioning equipment testing
services. The company is also involved in the sale of
automobiles and the real estate business.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007 that the company has a capital deficiency of
US$17.71 million, on total assets of US$49.89 million.
=========
I N D I A
=========
AFFILIATED COMPUTER: Fitch Assigns Low B Ratings, Removes Watch
---------------------------------------------------------------
Fitch Ratings has removed Affiliated Computer Services, Inc.
from Rating Watch Negative and affirmed these ratings:
-- Issuer default rating at 'BB';
-- Senior secured revolving credit facility at 'BB';
-- Senior secured term loan at 'BB'; and
-- Senior notes at 'BB-'.
The Rating Outlook is Negative. Approximately US$3.3 billion of
debt, including the US$1 billion revolving facility, is affected
by Fitch's action.
The removal of Affiliated Computer from Rating Watch Negative is
based on the company's fulfillment of all financial reporting
requirements necessary to maintain covenant compliance with its
credit facility agreement following the filing of its 10-K for
the fiscal year ended June 2006 and 10-Qs for the quarters ended
Sept. 30, 2006 and Dec. 31, 2006. The previous filing delay was
the result of the company's internal investigation into its
historical stock option grant practices. The investigation
concluded in late November 2006, leading to a non-cash,
cumulative, pre-tax restatement for previously unrecognized
stock-based compensation expense of US$51.2 million and the
resignation of the company's CEO and CFO. The cash tax impact
associated with the restatement is approximately US$40 million.
The Negative Rating Outlook reflects the potential continuation
of debt-financed share buybacks funded via the company's
uncommitted accordion feature under Affiliated Computer's term
loan facility. Remaining term loan availability under the
accordion feature for either share repurchases or redemption of
Affiliated Computer's existing senior notes was US$2 billion as
of Dec. 31, 2006. Although Fitch believes there is some
flexibility in the current ratings for incremental debt-financed
share repurchases, full utilization of the company's term loan
accordion feature would lead to negative rating actions.
Furthermore, the Outlook considers a potential reduction of
liquidity should Affiliated Computer receive an unfavorable
court ruling in its pending lawsuit against its Trustee, in
which ACS seeks a declaratory judgment affirming its position
that no default has occurred under the indenture as a result of
its failure to timely file its 10-K for the year ended June 30,
2006. If the court rules an event of default has occurred,
Fitch believes ACS will utilize its US$1 billion revolver to
refinance the US$500 million of senior notes that would become
immediately due at par value plus accrued interest. Lastly, the
Outlook considers the ongoing informal SEC investigation and
grand jury subpoena issued by the United States Attorney for the
Southern District of New York related to the company's timing of
historical stock option grants and identification of two
material weaknesses with respect to financial reporting.
Rating concerns continue to center on Affiliated Computer's
uncertain capital structure plans, which could include further
debt-financed stock buybacks; the company's acquisitive nature,
which could lead to further increases in total debt; and
limited, but improving, organic revenue growth in the government
segment. Positively, the ratings are supported by Affiliated
Computer's consistent, although pressured, free cash flow due
primarily to higher interest expense from increased debt
balances and higher capital expenditures, which Fitch expects to
moderate; significant recurring revenue base from long-term
outsourcing contracts; and favorable growth prospects for
business process outsourcing, which accounted for approximately
75% of Affiliated Computer's total revenue in fiscal year 2006.
Lastly, the company experienced a material improvement in
renewal rates, which rose to 95% of available renewal dollars in
the first half of fiscal 2007 ended Dec. 31, 2006, compared with
only 85% in fiscal 2006.
Even though the company's senior notes are equally and ratably
secured with the senior secured credit facilities under the
terms of the related indenture, the rating of 'BB-' for the
senior notes incorporates the fact that the secured credit
facilities have the sole rights to Affiliated Computer's
accounts receivable, which represented approximately 21% of
total assets and 43% of tangible assets as of Dec. 31, 2006.
The credit facility is secured by a first priority perfected
pledge of all notes owned by the borrowers and guarantors, all
capital stock of predominantly all domestic subsidiaries and
certain foreign subsidiaries of Affiliated Computer, and a first
priority perfected security interest in all other assets owned
by the Company, including tangible and intangible assets. As of
June 30, 2006, the financial covenant ratios contained in the
credit facility, which are based on a quarterly schedule that
becomes more restrictive over time relative to the amount of
covenant adjusted debt outstanding, consist of bank-defined
maximum consolidated senior leverage ratio of 3 times or x,
maximum consolidated total leverage ratio of 4x and interest
coverage covenant of 4.5x.
Fitch estimates leverage (total debt/operating EBITDA) increased
as expected to 2.8x as of Dec. 31, 2006 (bank-defined = 2.4x)
from 1.7x for fiscal 2006 ended June 30, 2006, due to increased
borrowings. Interest coverage (operating EBITDA/ gross interest
expense) declined to 7.1x for the latest 12 months ended
Dec. 31, 2006, (bank-defined=7.4x) compared with 14x for fiscal
2006. Fitch believes credit protection measures could
deteriorate further if Affiliated Computer uses the term loan
accordion feature to support additional share repurchase
programs.
Total debt as of Dec. 31, 2006, was approximately
US$2.6 billion, consisting primarily of US$1.8 billion of
secured term loans due 2013, US$275 million of borrowings under
the revolving credit facility, US$250 million of senior notes
due June 2010 and US$250 million of senior notes due June 2015.
Affiliated Computer's near-term debt maturities are manageable
with a very limited amount of debt due in the next three fiscal
years aside from US$18 million in annual amortization associated
with current secured term loans of US$1.8 billion. The next
material debt obligation is US$268 million in fiscal year 2010,
consisting of US$250 million of senior notes and US$18 million
of term loan amortization. However, the senior notes would be
immediately due if the court rules that an event of default has
occurred.
Fitch believes Affiliated Computer's liquidity is adequate and
was supported by approximately US$333 million of cash at
Dec. 31, 2006, and US$584 million of availability on its
US$1 billion secured revolving credit facility expiring 2012 due
to US$275 million of borrowings and US$141 million of
outstanding letters of credit. The credit facility also
includes an uncommitted accordion feature enabling the Company
to increase it by up to US$750 million for general corporate
purposes under certain circumstances. Liquidity is further
supported by Affiliated Computer's consistent, but pressured,
free cash flow that totaled US$170 million for the LTM ended
Dec. 31, 2006, down from adjusted free cash flow of US$328
million in fiscal 2006, which excludes transition services
previously provided by Mellon Financial Corp. in conjunction
with Affiliated Computer's acquisition of Mellon's Human
Resources business and other less significant non-recurring
items.
Dallas-based Affiliated Computer Services Inc. has global
operations in India, Brazil, China, Dominican Republic,
Guatemala, Ireland, Philippines, Poland and Singapore.
ALLAHABAD BANK: Increases Benchmark Prime Lending Rate to 12.50%
----------------------------------------------------------------
Allahabad Bank has decided to increase its Benchmark Prime
Lending Rate by 50 basis points from 12% to 12.50%, the bank
informs the Bombay Stock Exchange.
The rate hike took effect on Feb. 15, 2007.
Allahabad Bank -- http://www.allahabadbank.com/-- is a public
sector bank in India. The company's offerings include personal
loans, AllBank-Expo scheme, loan against National Savings
Certificate and Kisan Vikas Patra, housing finance, furnishing
loan, car finance and education loan. The Company offers a
range of deposit schemes to the non-resident Indians. The
company has retail banking boutique branches all over India.
The company's other services include AllBank-Property, All
Ayushman Bima Yojana, Cash Management Services, Kisan Credit
Card, Flexi-Fix Deposit, Gold Deposit, SSI Finance, Gold Card
Scheme for Exporters, Kisan Shakti Yojana, Bancassurance and
Mutual fund, Real Time Gross Settlement and Clean Note Policy.
The Troubled Company Reporter - Asia Pacific reported on
Sept. 14, 2006, that Fitch Ratings assigned an Individual
rating of C/D to Allahabad Bank. The Support rating is affirmed
at '4'. The outlook on the rating is stable.
ANDHRA BANK: Prudential ICICI Increases Stake to 5.025%
-------------------------------------------------------
Prudential ICICI Mutual Fund increased its stake in Andhra Bank
to 5.025% with its acquisition of the bank's 256,398 shares on
Feb. 2, a disclosure with the Bombay Stock Exchange states.
With the acquisition, Prudential ICICI's shares in the bank
increased from 24,116,024 to 24,372,422 shares.
Headquartered in Hyderabad, India, Andhra Bank --
http://www.andhrabank-india.com/ -- offers various products and
services including deposits, loans, corporate banking products,
non-resident Indian services and technology products. The
deposits offered by the Bank include current deposits, savings
bank deposits and term deposits. It offers housing, personal,
mortgage and agricultural loans. Under corporate banking, it
offers working capital loans, export and import finance, foreign
currency loans, term finance and corporate loans.
As of June 2006, the Bank rendered services through 1,788
business delivery channels consisting of 1,216 branches, 123
extension counters, 412 ATMs and 37 satellite offices spread
over 21 states and two union territories in India.
* * *
On Sept. 16, 2002, Fitch Ratings assigned Andhra Bank a C/D
Individual Rating.
ARTSON ENGINEERING: Profit Soars 363% to INR19.13MM in 4th Qtr.
---------------------------------------------------------------
Artson Engineering Ltd's net profit for the three months ended
Dec. 31, 2006, soared to INR19.13 million, 363% more than the
INR4.13 million booked in the same period in 2005.
The soaring profit is attributable to the sharp rise in the
company's revenues. For the quarter ended Dec. 31, 2006, the
company posted total income of INR100.68 million, a 193%
increase from the INR34.33 million earned in the December 2005
quarter.
Expenditures also swelled from INR29.1 million in the quarter
ended Dec. 31, 2005, to INR80.15 million in the last quarter of
2006.
There was only a slight increase in the company's depreciation
-- from INR1.1 million in the December 2005 quarter to
INR1.24 million in the December 2006 quarter.
A copy of Artson Engineering's financial results is available
for free at the Bombay Stock Exchange at:
http://ResearchArchives.com/t/s?1a50
Headquartered in Mumbai, India, Artson Engineering Limited --
http://www.artson.net/-- is a niche engineering company,
active in specialized area of refineries, ports and airports.
The Company was referred to the Board for Industrial and
Financial Reconstruction as a sick company. It's proposal for
restructuring is currently under review.
BANK OF BARODA: Forms JV with Pioneer Global Asset Management
-------------------------------------------------------------
Bank of Baroda signed on Feb. 14, 2007, a memorandum of
understanding with Pioneer Global Asset Management, an Italian
investment management company and member of Uni Credit Group, to
form a joint venture with a view to enhance its presence in the
area of asset management.
The bank proposes to disinvest a portion of its shareholding in
its wholly owned subsidiary BOB Asset Management Company Ltd in
favor of Pioneer Global to convert its asset management company
into a joint venture. The bank and the Italian firm propose to
hold 49% and 51% of equity share capital and 30% and 70% of
total paid-up capital respectively in the proposed JV.
The bank and Pioneer Global will leverage on respective joint
expertise in building a leading asset management platform in
India through the proposed Joint Venture.
Headquartered in Mumbai, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking
services in India. The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.
Fitch Ratings, on June 1, 2005, gave Bank of Baroda an
individual rating of C/D.
BRITISH AIRWAYS: Orders Four Longhaul Boeing 777-200 ER Aircraft
----------------------------------------------------------------
British Airways Plc has taken the first step towards expanding
its longhaul fleet by ordering four Boeing 777-200 ER aircraft
for delivery during early 2009.
The airline has also taken out options on four Boeing 777-200 ER
aircraft for delivery in 2010.
Robert Boyle, British Airways' commercial director, said: 'These
new aircraft will enable us to grow our longhaul business after
we move to Terminal 5.
"It was a close decision between the Boeing 777s and Airbus
A330s. However, the ease of assimilating up to eight aircraft
into our existing 777 fleet, rather than having a small number
of A330s, swung the balance in Boeing's favor.
"We are confident of a similarly competitive approach from both
manufacturers as we move towards our major longhaul fleet
renewal and expansion order later this year."
Negotiations continue with GE and Rolls Royce about which
engines will be used on the new Boeing 777 aircraft.
The airline's competition for additional and replacement
longhaul aircraft to be delivered in the next decade is
considering the Airbus A330, Airbus A350, Airbus
A380, Boeing 787, Boeing 777 and Boeing 747-8. The first
aircraft to be replaced will be 20 Boeing 747s and 14 Boeing
767s, the oldest of which are currently 17 years old.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 8, 2007, Moody's Investors Service changed the outlook on
the Ba1 corporate family and Ba2 senior unsecured debt ratings
of British Airways Plc and its guaranteed subsidiaries to
positive from negative.
CENTURION BANK: To Increase Prime Lending Rate to 14.50%
--------------------------------------------------------
Centurion Bank of Punjab is set to increase the Prime Lending
Rate by 100 basis points to 14.50% p.a.
Speaking on the change, Mr. Shailendra Bhandari, Managing
Director and CEO, Centurion Bank of Punjab said, "Indian
Economic data has continued to be buoyant in terms of GDP
growth, industrial production and core sector growth. In recent
months, we have witnessed a plethora of fiscal and monetary
measures from the government and the central bank to control
inflation and to address concerns with respect to overheating in
certain sectors. We will however try to pass on benefits to our
customers through a higher deposit rate."
This new lending interest rate will come into effect from
March 1, 2007.
Headquartered in Goa, India, Centurion Bank of Punjab Limited --
http://www.centurionbop.co.in/-- is a private-sector bank. The
bank provides a range of transaction banking products under cash
management services to various customer segments, such as
corporates, small and medium enterprises, utility providers and
domestic correspondent banks. The bank has entered into an
enterprise partnership with Indecomm Global Services to form
Centillion Solutions and Services. Centillion will focus on
operations and services for banking and related financial
services. The Retail Asset servicing operations of the Bank are
being transitioned to Centillion. The bank has entered into an
arrangement with IL&FS Investsmart Limited for offering equity
broking services to its customers. The wholesale banking
business is divided into Corporate, SME and Financial
Institutions Group. NRI business has been a focus of the bank.
In Trade Finance business, the bank provides services, such as
export trade, import trade, remittance, domestic trade and
structured trade.
On Jan. 31, 2007, Fitch Ratings assigned the bank an individual
rating of 'D'.
GENERAL MOTORS: Inks US$1 Bil. Global Networking Deal with AT&T
---------------------------------------------------------------
General Motors Corp. has awarded AT&T Inc. a five-year global
networking contract worth nearly US$1 billion. The agreement is
one of the largest commercial contracts in AT&T history.
Under the agreement, AT&T will deliver next-generation
telecommunications capabilities that will enable GM to further
integrate its global resources. In addition, GM named AT&T a
strategic information technology supplier to support its third-
generation information technology business model, which is
designed to ensure that GM's IT suppliers are working as one
around the world. In that role, AT&T will provide network-
integration management covering all aspects of GM's worldwide
telecommunications infrastructure, including voice and data
applications and systems support.
As part of the agreement, AT&T will be responsible for managing
the performance of key regional telecommunications providers
around the world in addition to network management
responsibility for participating telephone companies to drive
consistent, uniform IT service delivery and support. In
addition, AT&T will continue to collaborate with GM's
Information Systems and Services organization to support its
global business strategy.
The contract renews and expands an existing strategic global
relationship in which AT&T provides GM with a global Virtual
Private Network solution, integrating GM locations around the
world. AT&T's solution supports a full range of capabilities
including local, long distance, global voice mail, conferencing,
high speed Internet access and telecommunications business-
continuity services.
The network, based on Multiprotocol Label Switching technology,
provides a standardized technology infrastructure that will
enable GM to integrate networks, applications and devices and to
evolve into a single streamlined, communications platform based
on Internet Protocol with consistent standards and capabilities.
As a result, employees across the enterprise will have the same
telecommunications tools, such as common voice mail and
conferencing capabilities, and will enjoy the same quality of
service whether they're sitting in the corporate headquarters in
Detroit or in a manufacturing facility in Australia.
"AT&T's networking expertise and global reach make it uniquely
qualified to meet the telecommunications needs of a global,
multinational company like ours," said Ralph Szygenda, group
vice president and chief information officer of General Motors.
"This agreement is a strategic step toward strengthening
telecommunications across our global enterprise. It ensures
that we have the basic infrastructure in place to give GM
employees anywhere in the world the ability to collaborate
online in real time on engineering, manufacturing, design and
supply-chain. It is expected to enable increased productivity
and collaboration and to maximize GM's global network."
"GM's vision for global integration using an IP-based technology
platform and uniform service standards around the world managed
by trusted technology partners is a bellwether for multinational
corporations," said Ron Spears, executive vice president of AT&T
Global Business Sales. "We are excited to be a strategic
information technology supplier to GM and are anxious to deliver
the benefits of next-generation telecommunications services."
About AT&T
AT&T Inc. (NYSE: T) -- http://www.att.com/-- is a premier
communications holding company in the United States and around
the world, with operating subsidiaries providing services under
the AT&T brand. AT&T is the recognized world leader in
providing IP-based communications services to businesses and the
U.S. leader in providing wireless, high speed Internet access,
local and long distance voice, and directory publishing and
advertising through its Yellow Pages and YELLOWPAGES.COM
organizations.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, S&P said that the company's announcement that it
is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).
As reported in TCR-AP on Nov. 16, 2006, Moody's Investors
Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5
Billion secured term loan. The term loan is expected to be
secured by a first priority perfected security interest in all
of the US machinery and equipment, and special tools of GM and
Saturn Corporation.
* Fitch to Commence Rating India States
---------------------------------------
In an exposure draft published Feb. 22, Fitch Ratings released
its proposed guidelines for assigning ratings to state
government debt in India. Given numerous recent developments
concerning state public finances especially the recommendations
of the Twelfth Finance Commission, whereby states are required
to assume direct responsibility for their market borrowings,
Fitch believes that the time is opportune to introduce credit
ratings of individual states.
"Markets are starting to distinguish more and more between
individual state credits," said Amit Tandon, Managing Director
of Fitch Ratings in India. Fitch will assign two types of
ratings to state government credits. The first will be an
issuer rating that reflects Fitch's opinion of a state's stand-
alone creditworthiness and the second will be a rating assigned
to state development loans.
Fitch is proposing to assign these issuer ratings using its
international criteria for rating sub-national governments.
Fitch's evaluation covers a number of qualitative and
quantitative factors, including states' political, economic and
social profiles, their institutional and administrative
frameworks, budgetary factors, management practices and
financial analysis. Despite clear evidence of federal support
in the past, Fitch believes that this will not automatically
guarantee all states an investment-grade rating of 'BBB-' or
above and as such it proposes that state ratings should not have
a support-based implicit floor.
SDL debt is a direct obligation of the state for which it is
issued, and there is neither an explicit nor an implicit
guarantee from the Government of India for this debt.
Nevertheless, Reserve Bank of India's state account cash flow
oversight role (which includes the intercept mechanism for SDL
debt service) and the states' excellent repayment track record
are the key rating considerations behind the agency's proposal
to rate this debt at the highest rating of 'AAA' irrespective of
the underlying state's anchor rating.
Fitch will be soliciting market feedback on this exposure draft
and then incorporate any changes warranted by industry
commentary.
A full copy of the report is available on the agency's Web sites
http://www.fitchindia.comor http://www.fitchratings.com
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Provides Content Platform for Partner Comms
-----------------------------------------------------------
Alcatel-Lucent disclosed that Partner Communications Co. Ltd.,
operating the Orange mobile network in Israel, has launched
enhanced content services using Alcatel-Lucent's delivery and
management solution.
Partner Communications consolidated its existing content
management platforms onto the Alcatel-Lucent mPower Content
Management and Delivery System enabling the service provider to
deliver more compelling television, video and music experiences
to its customers.
The software platform, obtained by Alcatel-Lucent through the
Mobilitec acquisition, enables Partner Communications to
decrease the time to market for content and reduce operating and
content management expenses.
"We are pleased to launch the new platform which we consider to
be a further enhancement of our leadership status in the content
arena in Israel," said Alon Berman, Vice President, Technology,
Partner Communications. "As a leader in 3G in Israel, this
sophisticated platform allows us the flexibility to launch a
large number of services with a shorter time to market."
The Alcatel-Lucent platform can help broadband and mobile
providers such as Partner Communications increase the operators'
average revenue per subscriber by faster delivery of more
relevant mobile and broadband content.
"The Alcatel-Lucent platform consolidates all content services
under a unified framework providing real end-to-end multimedia
experience to their subscribers," Olivier Picard, President of
Alcatel-Lucent's activities in Europe & South. "This enhanced
capability enables Partner Communication to continuously provide
attractive new services to their customers and easily manage
delivery of a large variety of new content."
The Alcatel-Lucent mPower system enables Partner Communications
to create a more personalized experience for its subscribers
because the software can handle any data format and ensure
delivery to any handset, regardless of manufacturer.
Additionally, new workflow and management tools will eliminate
manual tasks, add security and enable content providers to
easily add large numbers of new content items into the system.
The Alcatel-Lucent system will also ensure full digital rights
management for content partners.
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: Selected by Datacom Company to Supply IP/MPLS
-------------------------------------------------------------
Alcatel-Lucent revealed that Armenian Datacom Company, a
competitive data provider in Armenia, selected Alcatel-Lucent to
supply an IP/MPLS network to deliver high quality data and
Internet services to business and residential customers.
Covering most of the Armenian capital city of Yerevan, Alcatel-
Lucent's IP/MPLS network will allow Armenian Datacom to benefit
from a wider variety of service offerings and increased service
flexibility. Once deployed, the operator can provide advanced
services such as high speed Internet and virtual private LAN
services for corporate customers. By running all services on a
single, next generation IP infrastructure, Armenian Datacom can
achieve significant economies of scale and maximize
profitability of services while streamlined and simplified
network management tools will result in significant operational
savings.
"By leveraging Alcatel-Lucent's IP portfolio of products,
Armenian Datacom Company can offer advanced business and
residential services for the first time in Armenia," said
Armenian Datacom CEO Harald Grytten. "Implementing Alcatel-
Lucent's leading-edge solutions gives us the business and
technology tools we need to compete and to offer subscribers a
variety of converged services."
"As an early supplier of cutting edge IP/MPLS solutions in
Armenia, we are in a position to contribute to further
development and modernization of the data infrastructure in
Armenia," said Basil Alwan, President of Alcatel-Lucent's IP
activities. "Armenian Datacom is able to leverage the unique
features of our IP/MPLS solution to provide a new generation of
services to its customers."
Armenian Datacom Company joins a list of more than 160 service
providers in over 60 countries who have selected the Alcatel-
Lucent IP portfolio, including massive, multi-year IP network
and service transformation projects at AT&T, BT, Cable &
Wireless, and Telstra. According to Ovum-RHK, Alcatel-Lucent
was #2 in the IP/MPLS Edge market segment in Q4 2006, with 19%
market share.
About ADC
Armenian Datacom Company CJSC is an Armenian-Norwegian joint
venture formed in 2006. The company is set up to provide
telecommunications services in and around the city of Yerevan
with focus on the latest available services for commercial data
communication and Internet access for an unlimited amount of
users. ADC's vision is to invite businesses and the population
of Yerevan into a new digital world that is always available, is
secure and offers access to advanced services of today and
tomorrow. ADC is built up by a highly competent and dedicated
organisation with international IT & telecommunications
experience Continuous development ensures availability of
advanced services for new customers. 24/7 support operations
secure optimal subscriber connections at all times. ADC has
professional owners with extensive international experience from
telecommunications, IT and capital markets. The combination is
a small company operating telecommunications services to the
best international standards.
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.
AVNET INC: Selects John Paget to Lead Technology Solutions Group
----------------------------------------------------------------
Global technology distribution and services company Avnet, Inc.,
has named John E. Paget as global president of its Technology
Solutions operating group. Effective March 5, 2007, Paget will
have responsibility for the strategic direction and day-to-day
worldwide operations for Avnet Technology Solutions, a global,
value-added distributor focused on enterprise computer products
and embedded subsystems that does business in more than 30
countries. Mr. Paget succeeds and reports to Rick Hamada, who
was promoted to chief operating officer of Avnet, Inc. in July
2006.
"John brings with him the passion and vision to lead Technology
Solutions globally as the distribution industry continues to
evolve and focus more on solutions," said Mr. Hamada. "He has a
deep understanding of the technology industry and a proven track
record that I believe make him uniquely suited to the position
and a definite asset as we continue to expand our value to
customers, suppliers and, of course, our shareholders."
Mr. Paget comes to Avnet from Synnex Corporation, where he was
president of the Technology Solutions Division and credited for
the success of driving the company's focus on higher-end
solutions. He previously served as president of Synnex North
America and chief operating officer. Prior to that position, he
had worldwide responsibility for GE Technology Financial
Services as senior vice president and general manager. The
organization was a part of GE Commercial Finance, a General
Electric company. Prior to that, Mr. Paget served as president
and chief executive officer of GE Access, a worldwide
distributor of Sun Microsystems and complementary products,
which was later renamed Access Distribution and acquired by
Avnet in December 2006.
"Avnet has a reputation in the industry of being truly a class
act that sets the standard for others to follow," said Mr.
Paget. "I'm excited to be joining a team that exemplifies what
it means to be dedicated to quality and professionalism in
serving the needs of its business partners."
Throughout his career, Mr. Paget has held a variety of executive
management positions in sales and operations, including time
spent with one of the largest Sun Microsystems value-added
resellers in the Northeast and one of the top ten HP VARs in the
U.S. Mr. Paget also held management-level positions in
services, sales and marketing operations with many
manufacturers, including Compaq Computer Corporation, Digital
Equipment Corporation and Xerox Corporation. He received a B.S.
in Administrative Services from Pepperdine University.
About Avnet Technology Solutions
Avnet Technology Solutions is a global, value-added distributor
focused on enterprise computing solutions and an operating group
of Avnet, Inc. representing US$4.99 billion in annual revenue
for FY'06, with locations in more than 30 countries. As a
global technology sales and marketing organization, Avnet
Technology Solutions has sales divisions focused on specific
customer segments and a select line card strategy enabling an
exceptional level of attention to the needs of its customers and
suppliers.
About Avnet Inc.
Avnet, Inc., headquartered in Phoenix, Arizona, is one of the
largest worldwide distributors of electronic components and
computer products, primarily for industrial customers. Revenues
for the fiscal year ended July 1, 2006 were US$14.3 billion. It
has operations in these Asia-Pacific countries: Indonesia,
Australia, China, Hong Kong, India, Japan, Malaysia, New
Zealand, Philippines and Singapore.
The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. technology
semiconductor and distributor sector, the rating agency affirmed
its Ba1 corporate family rating on Avnet, Inc.
Additionally, Moody's held its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$400MM 8.00% Sr.
Unsecured Notes
due 2006 Ba1 Ba1 LGD3 49%
US$250MM 6.00% Sr.
Unsecured Notes
due 2015 Ba1 Ba1 LGD3 49%
US$300MM 6.625% Sr.
Unsecured Notes
due 2016 Ba1 Ba1 LGD3 49%
US$300MM 2.00%
Convertible Sr.
Debentures due 2034 Ba1 Ba1 LGD3 49%
Shelf - Sr.
Unsecured (P)Ba1 (P)Ba1 LGD3 49%
Shelf - Subor. (P)Ba2 (P)Ba2 LGD6 97%
BANK CENTRAL ASIA: To Post More Than IDR4 Tril. Profit in 2006
--------------------------------------------------------------
PT Bank Central Asia Tbk is expected to post a net profit of
more than IDR4 trillion in 2006, Reuters reports, citing Bank
Central Asia Vice President Director Jahja Setiaatmadja.
Reuters says that Mr. Setiaatmadja, however, did not disclose
how far above IDR4 trillion it would be.
According to the report, the bank's preliminary net profit would
translate to more than 11% growth in the bottom line figure
compared with the IDR3.6 trillion in 2005. Mr. Setiaatmadja
said that the strong growth in its 2006 net profit was due to
the low cost of funds of the bank, since around 70% of its third
party funds were in savings or checking accounts, which had a
low interest rate.
The report says that analysts polled by Reuters Estimates were
expecting the bank to post a net profit of IDR4.18 trillion for
2006.
Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk
-- http://www.klikbca.com/-- offers individual and business
products and services. The bank's individual services consist
of savings accounts, home loans and car loans, remittance,
collection and safe deposit facilities. The bank's business
services consist of working capital loans, investment loans and
bank guarantee for small and medium-sized enterprises. In
addition, it provides export import facilities such as letters
of credit, negotiation and discounting. The bank's subsidiaries
include PT BCA Finance, BCA Finance Limited and BCA Remittance
Limited. It has 772 branches in Indonesia, Singapore and New
York, 42,958 EDCs and operates 4,425 ATMs. The bank serves
6.6 million accounts throughout Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that Fitch Ratings has affirmed all the ratings of Bank
Central Asia as follows:
* Long-term foreign currency Issuer Default rating: 'BB-'
* Short-term foreign currency rating: 'B'
* National Long-term rating: 'AA (idn)'
* Individual: 'C/D' and
* Support: '4'.
The Outlook for all the ratings is Stable.
BANK DANAMON: To Grant Loans to Motorcycle Dealers
--------------------------------------------------
PT Bank Danamon Indonesia Tbk has agreed to provide working
capital loans to motorcycle dealers in Indonesia in
collaboration with consumer finance firm PT Adira Dinamika Multi
Finance Tbk, The Jakarta Posts reports.
Under the agreement, Bank Danamon will provide unsecured loans
of up to IDR20 billion to motorcycle dealers that work together
with Adira, The Post says, citing Bank President Director
Sebastian Paredes.
The report notes that, according to Adira Senior Vice President,
Irawati Koswara, only 600 dealers have so far signed up for
loans.
Adira President Director Stanley S. Atmadja said that the
company hoped to increase lending for the purchase of cars and
motorcycles by 10% to IDR10 trillion this year, the report adds.
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 rating agency's action follows its change in Indonesia's
sovereign rating outlook to positive from stable on Feb. 5,
2007. Specifically, the revision affected the following ratings
of Indonesia: the foreign currency and local currency government
bond of B1, the foreign currency deposit of B2 and the foreign
currency country ceiling of Ba3.
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 INTERNASIONAL: Posts 13% Fall In 2006 Net Profit
-----------------------------------------------------
PT Bank International Indonesia posted a 13% fall in net profit
in 2006 to IDR634 billion (US$69.8 million) on higher loan
provisions, as domestic interest rates remained high, Reuters
reports. Specifically, loan provisions rose 284% to
IDR702 billion in 2006 from IDR183 billion in 2005.
According to the report, the bank expects an improving outlook
this year partly due to improvements in bad loan recovery.
Indonesia's banking sector has been suffering since the central
bank lifted the reference interest rate to a peak of 12.75% last
year to cope with soaring inflation, making it tough for banks
to extend loans and also hitting consumer spending, the report
points out.
PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/
engages in general banking services and in other bankin
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard. The bank is headquartered in Jakarta,
Indonesia.
With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.
The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service changed the outlook for
Bank Internasional Indonesia Tbk's long-term credit ratings to
positive from stable. The bank's 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:
-- issuer/subordinated debt of Ba3/Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E+.
Another TCR-AP report on Feb. 1, 2007, said that Fitch Ratings
affirmed all the ratings of Bank Internasional as follows:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA-(idn)'
* Individual 'C/D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds
---------------------------------------------------------
In accordance with Rule 2.10 of the City Code on Takeovers and
Mergers, Corus Group plc confirms that, as at Feb. 21, it had
these relevant securities in issue (including any ordinary
shares represented by American Depositary Shares but excluding
any ordinary shares held in treasury):
-- 946,191,929 ordinary shares of 50 pence each under
ISIN code GB00B127GF29.
-- 4.625% convertible subordinated bonds due 2007
amounting to NLG334,376,000 convertible into
19,320,834 ordinary shares of Corus Group plc.
The ISIN code for these securities is NL0000183184.
Each American Depositary Share represents two ordinary shares of
the company.
As previously reported in the TCR-Europe, Tata Steel 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.
DAVOMAS: Expects Profit to Rise 40% in 2007, Investor Daily Says
----------------------------------------------------------------
PT Davomas Abadi Tbk expects sales and profit to rise at least
40% this year from last year as it raises production capacity,
Bloomberg News reports, citing Corporate Secretary Rully Junaidi
in an interview with Investor Daily Indonesia.
According to the report, Davomas expects that it can boost
annual production capacity to 140,000 metric tons by end of this
year from 100,000 tons.
The report adds that Davomas also expects to expand its
shipments to China, the Middle East and Eastern Europe this
year.
Headquartered in Jakarta, Indonesia, PT Davomas Abadi Tbk
processes cocoa beans into cocoa butter and cocoa powder.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 15, 2006, that Standard & Poor's Ratings Services affirmed
its 'B+' rating onIndonesia's PT Davomas Abadi Tbk. The outlook
is stable. At the same time, it assigned its 'B+' rating on the
proposed US$25 million long-term senior secured bonds to be
issued by Davomas International Finance Co. Ltd., a special
purpose financing vehicle wholly owned by Davomas.
Moody's Investors Service had affirmed PT Davomas Abadi Tbk's
stable 'B2' corporate family rating and the 'B2' foreign
currency rating of Davomas International Finance Company Pte
Limited's IDR1.13-trillion senior secured notes due in 2011.
Moody's afffirmed the rating after the Company had completed its
notes issuances and subsequent repayments of its outstanding
debts.
EXCELCOMINDO PRATAMA: Posts IDR651.9-Billion Net Profit for 2006
----------------------------------------------------------------
PT Excelcomindo Pratama Tbk returned to profit in 2006, thanks
to higher revenue and foreign exchange gains, Bloomberg News
reports.
The report, citing Bisnis Indonesia, relates that Excelcomindo
posted a net income of IDR651.9 billion, or IDR92 a share, for
2006, compared with a net loss of IDR224.1 billion, or IDR37 a
share, in 2005.
The report discloses that sales rose to IDR4.7 trillion in 2006
from IDR3.1 trillion in 2005. Moreover, the company posted a
foreign exchange gain of IDR344.8 billion last year, compared
with a loss of IDR362.3 billion in 2005, the report points out.
Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
services. In addition, Excelcomindoprovides voice, data and
other value-added cellular telecommunications services. Its
product lines include jempol, bebas and xplor. The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
call centers. Excelcomindo starter packs and voucher reloads
are also sold by independent retailers.
Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%. TM and
its parent Khazanah together hold 73.7% in XL.
* * *
A Feb. 7, 2007 report by the Troubled Company Reporter - Asia
Pacific stated that Moody's Investors Service revised the
outlook to positive from stable on Excelcomindo Finance Company
B.V.'s Ba3 foreign currency senior unsecured bond rating.
The bond is irrevocably and unconditionally guaranteed by PT
Excelcomindo Pratama.
This rating action follows Moody's decision to revise the rating
outlook on Indonesia's Ba3 foreign currency sovereign ceiling to
positive.
At the same time, Moody's has affirmed the Ba2 local currency
corporate family rating of Excelcomindo Pratama. The outlook
for the rating remains stable.
A subsequent TCR-AP report says that Fitch Ratings, on June 5,
2006, upgraded PT Excelcomindo Pratama's Long-term foreign
currency and local currency Issuer Default Ratings to 'BB-' from
'B+'. The outlook on the ratings is stable.
GARUDA INDONESIA: Gov't to Complete Stake Sale by End-June 2006
---------------------------------------------------------------
Indonesia expects to complete the sale of as much as 49% of its
stake in PT Garuda Indonesia by the end of June, Bloomberg News
reports, citing State Enterprises Minister Sugiharto.
According to the report, Minister Sugiharto said that there are
quite a number of interested investors, but declined to disclose
their identities.
The Troubled Company Reporter - Asia Pacific reported on Feb. 7,
2007, that several investors who are interested in investing in
Garuda Indonesia are now undergoing due diligence.
Minister Sugiharto said that the selection will take place over
two or three months. Bloomberg relates that, according to Mr.
Sugiharto, the Government hopes to complete the entire sale
process before the end of June.
A TCR-AP report on Jan. 2, 2007, indicated that the Government
is considering selling a stake in Garuda, possibly through an
initial public offering, as the company struggles to
restructure around US$800 million in debt mostly owed to the
European Credit Agency.
About Garuda
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves another 10 domestic routes. Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
were due on December 31, 2005.
The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.
Garuda is currently undergoing debt restructuring. The Troubled
Company Reporter - Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.
Reuters reported that Garuda's outstanding debt, mostly owed to
the ECA, fell to US$749 million as of November 2006 from
US$794.5 million by the end of 2005.
INDAH KIAT: Incurs US$82-Bil. Net Loss for 2006 9-Month Period
--------------------------------------------------------------
PT Indah Kiat Pulp & Paper Tbk, for the nine months ended
September 30, 2006, recorded a net sale of US$1.16 billion, 9%
higher compared with the net sales of US$1.07 billion for the
same period in 2005.
The company disclosed a net loss of US$82 billion for the nine-
month ended September 30, 2006.
Headquartered in Jakarta, Indonesia, PT Indah Kiat Pulp & Paper
Tbk is a manufacturing company engaged in the production of
paper and pulp.
Finance Asia said on Nov. 13, 2006, that Indah Kiat, a
subsidiary of Asia Pulp & Paper, had defaulted on US$14 billion
of debt and is "one of the world's largest defaulters, if not
certainly Asia's." The Widjaja family, the controllers of
Asia Pulp, have been struggling with their creditors since they
ceased all payments on their debt in 2001.
Indonesian ratings company Pefindo gave the company's long-term
debt an idD rating, effective on April 14, 2001. Additionally,
Reuters reports that Indah Kiat delayed filing its first quarter
2006 financials, and that the company will not pay dividends for
the FY2005.
MCDERMOTT INT'L: To Release 4th Quarter 2006 Results on March 1
---------------------------------------------------------------
McDermott International, Inc., expects to release its financial
results for the fourth quarter of 2006 on March 1, 2007. The
Company will host its quarterly conference call with the
financial community the following morning, Friday, March 2, at
11:00 a.m. The Company invites investors and other interested
individuals to listen to the call live or to the replay, both
available on McDermott's website, http://www.mcdermott.com,in
the investor relations section.
McDermott is a leading worldwide energy services company.
McDermott's subsidiaries provide engineering, construction,
installation, procurement, research, manufacturing,
environmental systems, project management and facilities
management services to a variety of customers in the power and
energy industry, including the U.S. Department of Energy.
About McDermott Int'l
Headquartered in Houston Texas, McDermott International, Inc.
(NYSE:MDR) -- http://www.mcdermott.com/-- through its
subsidiaries, operates as energy services company worldwide
including Indonesia and the United Kingdom.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Oct. 11, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the oilfield service
and refining and marketing sectors last week, the rating agency
confirmed its B1 Corporate Family Rating for McDermott
International Inc.
Moody's also 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
---------- ------- ------- ------ ----------
Multiple Seniority
Shelf (Senior
Unsecured) (P)B3 (P)B3 LGD6 97%
Multiple Seniority
Shelf (Subordinate) (P)Caa2 (P)B3 LGD6 97%
Multiple Seniority
Shelf (Preferred) (P)Caa3 (P)B3 LGD6 97
PARKER DRILLING: Reports 4th Quarter & Full-Year 2006 Results
-------------------------------------------------------------
Parker Drilling Company, a global drilling contractor
specializing in drilling services in the Gulf of Mexico and
international land and offshore markets, reported strong
financial and operating results for the three-month and full-
year periods ended December 31, 2006. Financial highlights in
2006 include:
* Full-year 2006 revenues of US$586.4 million and EBITDA of
US$205.0 million were the highest since 1982.
* Pretax income increased 67% to US$117.4 million for
2006 driven by strong operating results and lower interest
costs.
* Quail Tools reported record rental tool revenues of
US$122.0 million and record EBITDA of US$75.5 million in
2006 and announced expansion into new markets.
* Strong financial results enabled the Company to utilize
US$99.5 million of net operating loss carry forwards in
2006. Based on current market conditions, Parker believes
it will report continued strong result 2007.
* Debt decreased to US$329.4 million in 2006, a decrease of
US$242.2 million or 42 percent since 2003 with a
corresponding decrease in interest expense of
US$22.2 million compared to 2003.
* Ended 2006 with a debt to capitalization ratio of 42%,
down significantly from 59% at the end of 2005 and 76% at
the end of 2004. This was achieved through debt
reduction, the successful issuance of US$99.9 million of
equity in January 2006 and equity from earnings of
US$179.9 million over the last two years.
Robert L. Parker Jr., chairman, president and chief executive
officer of Parker Drilling, said: "2006 was a year of
significant accomplishment for Parker Drilling. Our
strengthening financial performance is the result of the
steadfast execution of our strategic growth plan, as we
converted investments in our fleet and expansion platform into
growth opportunities, expanded our international footprint to
include Algeria and Saudi Arabia, capitalized on record margins
in our U.S. barge rig and rental tool operations and sharpened
our focus on providing our customers with high-performance
integrated drilling solutions."
For the three months ended December 31, 2006, Parker posted
earnings of US$37.2 million, or US$0.34 per diluted share, on
revenues of US$146.3 million, compared to revenues of US$149.6
million and net income of US$56.7 million, or US$0.58 per
diluted share, for the fourth quarter of 2005. Net income in
the fourth quarter of 2006 included net non-routine income of
US$0.12 per diluted share or US$12.8 million, of which
US$12.6 million was non-cash deferred taxes. The fourth quarter
of 2005 included US$0.45 per diluted share or US$44.6 million of
non-routine items, US$44.9 million of which was non-cash
deferred tax benefit. The tax benefit was incurred as a result
of the Company's profitability in 2005 with a sustained profit
outlook, thereby making the realization of past net operating
loss tax deductions highly likely.
Earnings before interest, taxes, depreciation and amortization
were US$51.7 million for the fourth quarter of 2006, 18% higher
than the US$43.9 million in the fourth quarter of 2005.
Significantly higher dayrates resulted in a 61% EBITDA
improvement for Parker's U.S. Gulf of Mexico barge rigs over the
prior year's quarter. Quail Tools also showed an improvement,
with a 29% increase from the prior year's quarter. For the year
2006, EBITDA was US$205.0 million, a 27% increase over the
US$161.6 million for 2005.
For the year ended December 31, 2006, Parker Drilling reported
revenues of US$586.4 million, a 10 percent increase from
US$531.7 million in 2005. Net income was US$81.0 million, or
US$0.75 per diluted share, compared to US $98.9 million, or
US$1.02 per diluted share, in 2005. Net income for 2006
includes non-routine items of US$0.14 per diluted share, and net
income for 2005 includes non-routine items of US$0.56 per
diluted share. The details of the non-routine items for the
year and the quarter are available on Parker's website and can
be viewed or downloaded by going to "Investor Relations" and
then to "Reconciliation of Non-Routine Items."
Capital expenditures for the year 2006 totaled US$195.0 million.
Total debt was US$329.4 million at December 31, 2006, a
reduction of US$50.6 million from the previous year. The
Company's cash, cash equivalents and marketable securities
totaled US$155.1 million at year-end compared to US$78.2 million
at year end 2005.
Average utilization for the Gulf of Mexico barge rigs for the
fourth quarter of 2006 was 68%, compared to 73%reported for the
fourth quarter of 2005. The decline in utilization is
attributable to customers delaying some projects until 2007,
causing two deep barge rigs to experience downtime during the
quarter; however, both rigs have since re-entered the active
fleet. In addition, two rigs were alternatively down for
upgrades and scheduled preventive maintenance. Deep barge rig
50 completed its refurbishment program and re-entered the fleet
in December under a six-month contract, and intermediate barge
rig 8 is scheduled to re-enter the fleet in April under a ten-
month contract.
Current utilization is 76% for the Gulf of Mexico barge rigs.
Despite the slight decline in average utilization during the
fourth quarter, the Company's deep drilling barge dayrates in
the Gulf of Mexico continued to experience record levels,
averaging US$49,500 per day during the fourth quarter of 2006,
up approximately 44%, or US$15,000 per day, from the fourth
quarter of 2005 and up approximately 8%, or US$3,700 per day,
above the third quarter of 2006.
The average utilization of international land rigs for the
fourth quarter of 2006 decreased to 46% from the 84% reported
for the fourth quarter of 2005 as a result of rigs mobilizing to
new areas of operation. International utilization should
increase during the first quarter of 2007 as newly constructed
land rigs are deployed in Algeria, and as rigs working under
previously announced contracts contribute for the full quarter.
Quail Tools, Parker Drilling's drilling and production rental
tools subsidiary, continued its outstanding performance as it
posted revenues of US$31.6 million in the fourth quarter. 2007
is anticipated to improve as additional equipment is scheduled
to be delivered during the first half of 2007. Quail's new
operating facility in Northeast Texas will open in March, and
will provide increased coverage of the Barnett Shale area and
Fayetteville Shale area in Arkansas, in addition to the East
Texas and Oklahoma markets.
"Looking ahead, we expect increasing contributions from our
international segments in 2007 due to higher demand, forecasted
increased customer spending and a greater focus on our
international markets," said Parker. "Domestically, we expect
continued steady demand for our preferred barge rigs in our U.S.
Gulf of Mexico transition zone market; although we anticipate
the growth in dayrates will begin to level out during the first
half of 2007 as they normalize from the record pace of increases
seen over the last two years. Finally, we also expect continued
growth and outstanding performance from our rental tools
segment, as the benefits from expansion plans and capital
investment are realized in the first half of 2007."
Parker continued: "In 2006, we completed the first full year of
our strategic growth plan, resulting in dramatic improvements in
key operational metrics and a stronger balance sheet. As we
continue execution of our plan we expect to strengthen our
financial position and increase our market share in the critical
domestic and international markets that value our competitive
differentiation based on preferred rigs, rental tools and
project management services. We also plan to build on our
competitive advantages in deep and frontier drilling through
technological innovation while maintaining our industry
leadership in safety and performance. These factors will enable
us to capture demand, manage our Company's growth and provide
our customers with cost-effective integrated drilling solutions.
The combination of these factors makes us optimistic about our
outlook for 2007."
Operating Segment Highlights
* Barge rig 53 was awarded an additional two-year contract
by Pemex for drilling services in Mexico. The rig has
drilled continuously in the region since 2004, and new
contract terms contain dayrates in accordance with current
market pricing that will improve the rig's operating
margins.
* Rig 188 in New Zealand was awarded an extension of its
current long- term contract. The rig is expected to drill
continuously throughout 2007 and into 2008.
* Construction on two of our four new 2,000 horsepower,
variable-frequency drive land rigs has been completed.
The rigs are currently being mobilized to Algeria for a
three-year contract with Sonatrach and should begin
operations during the second quarter.
* Ultra-deep barge rig 77, the newest barge rig in our Gulf
of Mexico fleet, completed construction and mobilized in
December, and is currently operating under two consecutive
three-month contracts.
* The scope of our previously announced joint venture in
Saudi Arabia, which will perform a three-year contract for
Saudi Aramco with a one-year option has expanded from four
rigs to six. Four of the rigs are in-country and are
currently rigging up and commissioning equipment, with
expected spud dates ranging throughout the late first
quarter and second quarter of 2007.
Parker has scheduled a conference call at 9 a.m. CST Feb. 22,
2007 to discuss fourth quarter 2006 results. Those interested in
participating in the call may dial in at (303) 262-2138. The
conference call replay can be accessed from Feb. 22 through Mar.
1 by dialing (303) 590-3000 and using the access code 11083271#.
Alternatively, the call can be accessed live through the
Company's website at http://www.parkerdrilling.com/and will be
archived on the site for 12 months.
(a) The 2005 results reflect a US$44.9 million non-cash
benefit from the elimination of the valuation allowance
related to federal Net Operating Loss Carryforwards and
other deferred tax assets. The valuation allowance was
originally recorded in accordance with Generally
Accepted Accounting Principles as an offset to the
Company's deferred tax assets, which consisted primarily
of net operating loss carryforwards. GAAP required the
Company to recognize a valuation allowance unless it
was "more likely than not" that the Company could
realize the benefit of the NOL and deferred tax assets
in future periods. Because expected earnings
performance would enable the Company to benefit from the
federal NOL, the valuation allowance was no longer
required in the fourth quarter of 2005. The 2006
results reflect a US$12.6 million non-cash benefit from
the elimination of the valuation allowance related to
state NOL carryforward and other deferred tax assets.
The Company fully utilized its federal NOL during 2006
and expects to utilize the state NOL over the next
three to five years.
Headquartered in Houston, Texas, Parker Drilling Company
-- http://www.parkerdrilling.com/-- provides contract drilling
and drilling-related services worldwide. The company has rigs
located in Indonesia, New Zealand, Colombia and Mexico, among
others.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 12, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the oilfield service
and refining and marketing sectors last week, the rating agency
confirmed its B2 Corporate Family Rating for Parker Drilling
Company, as well as it B2 rating on the company's 9.625% Senior
Unsecured Guaranteed Global Notes Due 2013, and Senior Unsecured
Guaranteed Floating Rate Global Notes Due 2010. Moody's
assigned those debentures an LGD4 rating suggesting note holders
will experience a 55% loss in the event of default.
WILLBROS GROUP: Reveals Latest Project w/ Southeast Supply
----------------------------------------------------------
Willbros Group, Inc., revealed that its North American pipeline
construction business unit has been awarded a contract with
Southeast Supply Header, LLC, a joint venture between
subsidiaries of Spectra Energy Corp and CenterPoint Energy Inc.,
to construct approximately 190 miles of the SESH project,
consisting of 42-inch and 36-inch diameter pipeline. SESH will
begin near the Perryville Hub in northeast Louisiana and will
interconnect with the Gulfstream Natural Gas System, L.L.C.
pipeline in Mobile County, Alabama. Construction of the project
is anticipated to begin in the fourth quarter of 2007 and to be
completed in the summer of 2008.
Willbros had previously indicated in its November 2006
conference call that it was "highly confident" in the award of
multiple contracts, which were expected to exceed US$250 million
in total contract value. This most recent award becomes an
important part of those work assignments, which include projects
to perform large diameter pipeline construction in Texas,
Louisiana, Mississippi, and Alabama.
John Allcorn, Executive Vice President, commented, "We're
pleased to have negotiated terms and conditions that are a win-
win scenario for both us and our clients. Winning these
multiple awards allows us to more efficiently schedule our
resources."
Willbros also disclosed that on February 15, 2007, the U.S.
District Court for the Southern District of Texas issued an
Order approving final settlement of the previously disclosed
consolidated securities class action lawsuit. The class action
was filed in 2005 and named as defendants:
-- the Company,
-- certain of its then-current officers, and;
-- a former officer of its international subsidiary.
The Order dismissed with prejudice all claims against all
defendants. No members of the settlement class exercised their
right to be excluded from or object to the final settlement,
which was funded by Willbros' insurance carrier. The Court's
Order ends the class action litigation.
About Willbros Group
Willbros Group, Inc. (NYSE:WG) -- http://www.willbros.com/-- is
an independent contractor serving the oil, gas and power
industries, providing engineering and construction, and
facilities development and operations services to industry and
government entities worldwide. Willbros has operations in
Indonesia.
Long-term Debt Waivers
During the period from Nov. 23, 2005, to June 14, 2006, the
company entered into four additional amendments and waivers to
the 2004 Credit Facility with its syndicated bank group to waive
non-compliance with certain financial and non-financial
covenants. Among other things, the amendments provided that:
(1) certain financial covenants and reporting obligations were
waived and/or modified to reflect the Company's current and
anticipated future operating performance; (2) the ultimate
reduction of the facility to US$70,000 for issuance of letter of
credit obligations only; and (3) a requirement for the Company
to maintain a minimum cash balance of US$15,000.
=========
J A P A N
=========
AOZORA BANK: Appoints Kimikazu Noumi as New Chairman and CEO
------------------------------------------------------------
Aozora Bank named Kimikazu Noumi as chairman and chief executive
officer, replacing Michael Rossi, The International Herald
Tribune reports.
The report says that Mr. Noumi's promotion took effect on
Feb. 22, 2007.
The Tribune states that Mr. Noumi joined Aozora bank in June
2006 as vice president, having started his career at Norinchukin
Bank -- the central bank for Japan's agricultural cooperatives.
According to The Tribune, Federico Sacasa, president and chief
executive officer of Caribbean Central American Action, will
become Aozora's president and chief operating officer upon
approval from shareholders.
About Aozora Bank
Aozora Bank (formerly Nippon Credit Bank) --
http://www.aozorabank.co.jp/-- was the second Japanese credit
bank nationalized in the wake of Asia's financial crisis after
the Long-Term Credit Bank of Japan (now Shinsei Bank). Bad
loans and Japan's "Big Bang" financial deregulation added to the
bank's troubles. Traditionally a lender to small and midsized
businesses, before the takeover it had started closing overseas
branches and expanding its financial services. Aozora has a
network of some 20 branches in Japan and four offices overseas.
US investment fund Cerberus now owns 62% of the company after
buying Softbank's stake (49%) in spring of 2003. Orix Corp and
Millea Holdings each own 15%, and the Japanese government also
owns a stake.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 22, 2006, Moody's Investors Service has placed on review
for possible upgrade the Baa1 long-term deposit and senior
unsecured ratings and the D bank financial strength rating of
Aozora Bank, Ltd.
Fitch Ratings, on October 23, 2006, affirmed the Bank's
individual and support ratings at 'C' and '3'. The outlook on
the ratings is stable.
BANCO BRADESCO: Paying Monthly Capital Interest on April 2
----------------------------------------------------------
Banco Bradesco S.A., in conformity with the System for Monthly
Payment to Stockholders, will pay on April 2, 2007,
Interest on Own Capital related to the month of March 2007, in
the amount of BRL0.036052500 per common stock and
BRL$0.039657750 per preferred stock to the stockholders
registered in the company's records on March 1, 2007.
The payment, net of the Withholding Income Tax of 15%, except
for legal entity stockholders exempted from the referred
taxation, which will receive for the stated amount, will be made
through the net amount of BRL$0.030644625 per common stock and
BRL$0.033709088 per preferred stock, as follows:
* credit in the current account informed by the stockholder;
* the stockholders who do not inform their banking data or do
not hold a current account in a Financial Institution must
go to a Bradesco Branch on their preference having their
identification document and the "Notice For Receipt of
Earnings from Book-Entry Stocks", sent by mail to those
having their address updated in the Company's records;
* to those with stocks held on custody with the CBLC -
Companhia Brasileira de Liquidacao e Custodia (CBLC -
Brazilian Clearing and Depository Corporation), the payment
of interest will be made to CBLC, which will transfer them
to the stockholders through the Depository Agents.
About Banco Bradesco
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco is
Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management. Bradesco has branches throughout Brazil as well as
one in New York, and Japan. Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers. The bank also
provides personal and commercial loans, along with leasing
services.
* * *
Fitch Ratings upgraded Banco Bradesco S.A.'s short-term local
currency rating to 'F3' from 'B.'
Fitch has also taken these rating actions on Banco Bradesco:
-- Foreign Currency Issuer Default Rating upgraded to
'BB+' from 'BB', Outlook remains Stable;
-- Short-term Foreign Currency rating affirmed at 'B';
-- Local Currency Issuer Default Rating affirmed at 'BBB-',
Outlook Stable;
-- Individual rating affirmed at 'B/C';
-- Support rating affirmed at '4';
-- National Long-term affirmed at 'AA+(bra)', Outlook remains
Stable; and
-- National Short-term affirmed at 'F1+(bra)'.
As reported on Nov. 30, 2006, Moody's Investors Service upgraded
these ratings of Banco Bradesco SA:
-- long-term foreign currency deposits to Ba3 from B1; and
-- long- and short-term global local currency deposit
ratings to A1/Prime fom A3/Prime-2.
Moody's said the ratings outlook is stable.
DELPHI CORP: Wants National Union to Provide Insurance Coverage
---------------------------------------------------------------
Delphi Corporation and its debtor-affiliates ask the Honorable
Robert D. Drain of the United States Bankruptcy Court for the
Southern District of New York to:
(a) find that all of the fees, costs and expenses it incurred
in investigating and defending itself and certain of its
employees in response to the Securities and Exchange
Commission investigation and the securities litigation
are a loss incurred while a Securities Claim is jointly
made and maintained against Delphi and its Employees
under the D&O Policy, and that those costs apply towards
satisfaction of the Retention;
(b) direct National Union to provide Delphi with insurance
coverage, in excess of the Retention, for all of the
fees, costs and expenses Delphi paid to jointly defend
itself and its Employees since Oct. 15, 2004, in response
to the SEC investigation and the Securities Litigation
going forward, as long as those costs are within the
US$25,000,000 Limit of Liability of the D&O Policy; and
(c) award it reasonable attorneys' fees, costs, and judgment
interest.
Delphi Corporation and certain of its current and former
directors, officers and employees are parties to numerous
lawsuits, including securities fraud actions and derivative
litigation and Employee Retirement Income Security Act actions
filed in connection with the company's March 2005 restatement of
its financial reports, Neil Berger, Esq., at Togut, Segal &
Segal LLP, in New York, tells the Court. Delphi was also party
to an
investigation initiated by the Securities and Exchange
Commission of alleged financial fraud in Delphi.
Delphi is the recipient of Executive and Organization Liability
Insurance Policy No. 931-88-56 issued by National Union Fire
Insurance Company of Pittsburgh, PA. Mr. Berger relates that:
1. The D&O Policy's Preset Allocation provision provides
coverage for losses incurred by Delphi while a Securities
Claim is jointly made and maintained against both Delphi
and its Employees;
2. The D&O Policy's Coverage B provision provides coverage
for indemnification costs Delphi paid in indemnifying and
advancing fees, costs and expenses to its Employees,
arising from a claim asserted against those Employees;
3. The D&O Policy provides for US$10,000,000 retention for
Securities Claims; and
4. The D&O Policy defines "Limit of Liability" as "[f]or all
Loss, in the aggregate, under this policy including
Defense Costs: US$25,000,000."
Mr. Berger notes that as of Oct. 15, 2004, a Securities Claim
has been jointly made and maintained against both Delphi and its
Employees. Since that date, Delphi has expended approximately
$19,000,000 in defending itself and the Employees and in
advancing defense costs to the Employees, in response to the SEC
investigation, the Securities Litigation, and the ERISA Actions,
Mr. Berger avers.
Mr. Berger asserts that the costs Delphi paid or advanced after
Oct. 15, 2004, in response to the SEC investigation and the
Securities Litigation are covered under the D&O Policy.
Pursuant to the D&O Policy, Mr. Berger points out, once Delphi
meets the Policy's US$10,000,000 Retention, National Union must
reimburse 100% of:
(1) Delphi's costs in the joint investigation and defense of
itself and certain of its Employees after October 15,
2004, in response to the SEC investigation and the
Securities Litigation; and
(2) Delphi's advancement of costs to its Employees after
October 15, 2004, in response to the SEC investigation
And the Securities Litigation.
Mr. Berger maintains that Delphi timely gave notice to National
Union of the SEC investigation, the Securities Litigation, and
the ERISA Actions. Delphi also submitted to National Union, Mr.
Berger continues, detailed documentation of both the costs it
paid to defend itself and its Employees and the costs it
advanced to its Employees, in response of the Litigation and
Actions.
However, National Union has refused to (i) reimburse Delphi in
full, (ii) pay on Delphi's and its Employees' behalf, or (iii)
advance defense costs for amounts Delphi paid in excess of the
Retention to jointly investigate and defend itself and its
Employees in response to the SEC investigation and the
Securities Litigation, as required by the D&O Policy, Mr. Berger
informs Judge Drain.
The Retention has been satisfied, Mr. Berger maintains. "All
conditions precedent for coverage under the D&O Policy have been
fulfilled or waived or are subject to estoppel."
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.
DELPHI CORP: Court Okays Bidding Procedures for Brake Hose Biz
--------------------------------------------------------------
The Honorable Robert D. Drain of the United States Bankruptcy
Court for the Southern District of New York approves the bidding
procedures for the sale of Delphi Corp. and its debtor-
affiliates' Brake Hose Business.
The closing of the Sale is subject to the Debtors' obtaining the
waiver by the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union, Local 871, AFL-CIO/CLC, of any "no-sale"
clause contained in every agreement between Delphi Corporation
and the Union, Judge Drain rules.
Judge Drain permits the USW to send a representative to attend
the Sale Auction.
Judge Drain also approves the Bid Protections for Harco
Manufacturing Group, LLC. Judge Drain permits the Debtors to
pay Harco Mfg. either the Break-Up Fee or the Expense
Reimbursement, whichever is higher. The allowed amount will
constitute a superpriority administrative expense claim against
the Debtors' estate.
The Court will convene the Sale Hearing on March 22, 2007, or on
subsequent dates as may be announced in open court.
Objections to the Sale Motion must be filed by March 15, 2007.
Bidding Procedures
For a potential bidder to become a Qualified Bidder, it must:
-- execute a confidentiality agreement;
-- provide certain financial assurances as to its ability to
close a transaction; and
-- submit a preliminary purchase proposal.
The Bid Deadline is ay 11:00 a.m. on March 2, 2007.
For a bid to be deemed a Qualified Bid, it must be received by
the Bid Deadline and, among other things, must have a value
greater than the aggregate value of the Purchase Price, the
Break-Up Fee, and US$500,000. The Bid must not be conditioned
on bid protections and must include a commitment to consummate
the purchase of the Acquired Assets within 15 days after the
Court approves the alternative purchase.
If the Debtors receive a Qualified Bid, they will conduct an
auction of the Acquired Assets before March 20, 2007.
A full-text copy of the Bidding Procedures for the sale
of the Brake Hose Business is available for free at
http://ResearchArchives.com/t/s?1971
Harco Mfg.
As reported in the Troubled Company Reporter on Feb. 13, 2007,
the Debtors want to sell the Brake Hose Business and certain of
Delphi Technologies Inc.'s intellectual property related to the
Brake Hose Business to Harco Mfg. for US$9,800,000, free and
clear of liens, claims, and encumbrances, subject to higher and
better bids.
The Debtors supply a complete array of brake hose assemblies for
various vehicles from small automobiles to mid-size trucks. The
Debtors operate the Brake Hose Business as part of the Chassis
Systems Product Business Unit within their Automotive Holdings
Group Division.
The Debtors deliver brake hose components to Harco Brake Systems
Inc. for final assembly. Harco Manufacturing Group LLC, an
affiliate of Harco Brake, then ships the finished products to
General Motors Corporation. The Debtors are a Tier I supplier
to GM and a Tier II supplier to several Tier I brake hose
assembly suppliers to GM.
In 1997, the brake hose final assembly operation was moved to
Harco Mfg.
The Debtors informed the Court that the Brake Hose Business does
not fit within the anticipated product portfolio under their
transformation plan. The Debtors believe they lack a global
manufacturing presence in the Brake Hose product line to make
the Business grow. The Debtors, however, believed that as a
stand alone business unencumbered by legacy costs, the Brake
Hose product line could be a profitable and competitive business
line.
When the Debtors' long-term supply agreement with Harco Mfg.
expired in 2004, Delphi Automotive Systems LLC and Harco Mfg.
executed an extension of the term of the Agreement through
Dec. 31, 2007, under a Brake Hose Assembly Contract Policy
Statement.
The Policy Statement, among other things, provided that:
-- DAS will pay Harco US$2,500,000 in cancellation costs if
the Brake Hose Business is in-sourced or completely exited
by DAS;
-- Harco is entitled to a right of first refusal to buy the
brake hose business before any alternative purchaser is
considered by DAS; and
-- Harco or an alternative purchaser of the Business must
assume the Statement, whereby the Debtors would have no
further obligations under it.
Since early 2005, the Debtors exerted efforts to market the
Brake Hose Business and ultimately, determined that Harco Mfg.'s
bid is the best offer for the Business.
Subsequently, the Debtors and Harco Mfg. entered into a Purchase
Agreement for the sale for Brake Hose Business on Jan. 25, 2007.
The salient terms of the Purchase Agreement are:
* The Purchase Price represents US$9,750,000 for the Acquired
Assets and US$50,000 for the Intellectual Property;
* Harco will place US$500,000 of the Purchase Price into an
escrow account, and another US$750,000 into an indemnity
escrow account;
* Harco is entitled to a US$294,000 Break-Up Fee if the
Debtors sell, transfer, lease, or otherwise dispose the
Acquired Assets to another party; and
* The Debtors will reimburse Harco, up to US$100,000, for
reasonable and actual out-of-pocket fees and expenses it
incurred in connection with the transactions contemplated
by the Agreement upon the Agreement's termination when:
-- the Closing fails to occur within 90 days after the
Court approves the Sale; or
-- the Court fails to enter a Sale Order by
May 25, 2007, or the Sale Order is subject to a stay
or injunction.
In the event Harco Mfg. is entitled to receive both the
Break-Up Fee and the Expense Reimbursement, Harco Mfg. will only
be awarded with the larger of the two amounts.
The Agreement does not provide for a transfer of the Business's
workforce to Harco Mfg. Under a manufacturing services
agreement to be entered into at the Sale's Closing, the Debtors'
hourly employees will continue to produce brake hose products
for a maximum period of 12 months. Under a transition services
agreement, salaried employees of the Business will support those
activities for a similar period.
The Business's hourly workforce is represented by the United
Steel, Paper And Forestry, Rubber, Manufacturing, Energy, Allied
Industrial And Service Workers International Union. The Debtors
are currently negotiating with the USW to obtain the labor
union's waiver of any no-sale clause contained in agreements
between Delphi Corporation and the USW prior to the Closing, Mr.
Butler informs the Court.
Pursuant to the Agreement, the Debtors also seek to assume and
assign certain executory contracts, unexpired leases, and
liabilities to Harco Mfg. or an alternative purchaser. To the
extent that any defaults exist under the Assumed and Assigned
Contracts or Leases, the Debtors intend to cure those defaults
prior to any assumption and assignment.
A full-text copy of the Harco Sale and Purchase Agreement is
available for free at http://ResearchArchives.com/t/s?1928
Union
The United Steel, Paper And Forestry, Rubber, Manufacturing,
Energy, Allied Industrial And Service Workers International
Union is concerned that the Debtors have not presented to the
Court an attrition program for USW-represented employees.
The Attrition Program would be a critical step in addressing the
legacy costs identified in the Debtors' request, according to
Lowell Peterson, Esq., at Meyer, Suozzi, English & Klein, P.C.,
in New York.
Mr. Peterson noted several months have passed since the parties'
last meeting in connection with the Attrition Program.
In addition, Mr. Peterson related that the Debtors have not yet
obtained the USW's waiver of the no-sale/no-close provision in
the parties' collective bargaining agreement.
Thus, the USW asked the Court to:
(a) direct the Debtors to modify the Bidding Procedures for
the proposed sale of the Brake Hose Business to alert any
potential Bidder to the fact that the Debtors must obtain
the USW's waiver as a condition of proceeding with any
sale; and
(b) permit the Union to attend the Sale Auction.
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.
JAPAN AIRLINES: To Operate Europe Charter Flights with JTB
----------------------------------------------------------
Japan Airlines and Japan Travel Bureau have decided to jointly
operate a series of charter flights offering package tour to
Europe in summer and autumn 2007. The joint charter tour
programme is the latest development in a comprehensive business
tie-up agreement between JAL and JTB, who have been cooperating
to create new demand for overseas travel from various parts of
Japan, develop new overseas destinations and increase demand for
travel to Japan from overseas.
To meet tourism demand to various Europe regions by senior
Japanese travelers, including the baby-boomer generation now
starting to retire, 31 direct charter flights will be operated
from June to September 2007 from regional airports in Japan to
Switzerland and Italy, and from July to October from Narita,
Nagoya, Osaka and Fukuoka to Central European cities in Croatia,
Hungary and the Czech Republic.
Charter flights to Switzerland and Italy will depart from
Sapporo, Hakodate, Sendai, Niigata, Hiroshima, Kita-Kyushu,
Fukuoka, Nagasaki, Oita, Kumamoto, and Kagoshima directly to the
destinations and thus eliminate the need for domestic air
connections in Japan. Some flights will be operated as open-
jaw, a form of operation in which different airports are used
for the outbound arrival destination and inbound departure
point. This will enable travelers to take a more varied vacation
itinerary, and thus increase their convenience and enjoyment.
Direct JAL charter flights to Croatia, which has been gaining
popularity as a tourist destination, will be operated for the
first time from Japan. Three round trips are planned from Narita
in August and September. The charter flights will fly direct
between Narita and Zagreb, the Croatian capital, and Dubrovnik,
a World Heritage city facing the Adriatic Sea. The ground tour
will cross Croatia.
The charter flights from Narita, Osaka, Nagoya and Fukuoka to
Budapest (Hungary) and Prague (Czech Republic) will be open jaw
operations that fly alternatively to the two cities, in
consideration of the itinerary for an excursion tour of the
Central European region between the two cities. A total of 14
round trips are planned between July and October.
JAL and JTB will continue to share and utilize the merits of
both companies, and develop and increase tourism demand by
providing attractive travel products meeting customer needs.
About Japan Travel Bureau (JTB)
Headquartered in Tokyo, JTB --
http://www.jtbgmt.com/eng/index.html-- has been synonymous with
Japanese hospitality, welcoming millions of tourists and
business travelers to Japan. Boasting more than 400 offices in
22 countries, JTB offers a wide variety of corporate, consumer
and specialty travel services. GMT expands inbound businesses
to all of Asian countries, by using the accumulated know-how on
your long experience in 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.
SANYO ELECTRIC: SESC Initiates Probe Over Understated Losses
------------------------------------------------------------
The Securities and Exchange Commission commenced an
investigation on whether Sanyo Electric Co. failed to fully
disclose its losses, Bloomberg News reports.
According to Zee News, Tokyo, Sanyo Electric said on Friday that
it was fully cooperating with the SESC's investigation into the
alleged window-dressing of earnings at the company. AFX News
Limited explains that Sanyo allegedly underestimated valuation
losses on its holdings in struggling subsidiaries and affiliates
in reporting earnings for fiscal 2003.
Specifically, the Asahi newspaper earlier reported that Sanyo
had written off losses of JPY190 billion (US$1.6 billion) at its
subsidiaries, but reported the losses as JPY50 billion
(US$412 million). The Osaka-based company may have falsely
reported a profit when it was in the red, the newspaper said.
The Asahi report, however, stated that the differences have been
corrected over the years, thus, Sanyo Electric's recent earnings
reports are no longer false.
According to Bloomberg, the SESC probe may hamper efforts by
Goldman Sachs Group Inc., Daiwa Securities SMBC Co. and Sumitomo
Mitsui Financial Group Inc. to revive Sanyo, which is projecting
a third year of losses.
The report recounts that New York-based Goldman, the world's
most profitable securities firm, Daiwa and Sumitomo Mitsui
invested JPY300 billion (US$2.5 billion) in Sanyo in January
2006 in return for management control. Goldman and Daiwa each
bought JPY125 billion of preferred stock that can be converted
into a 24.5% stake in the company and sold to outside investors
without Sanyo's consent starting March 14.
Shares Fall
Sanyo Electric shares lost more than a fifth of their value on
Friday after the consumer electronics group admitted it was
under investigation, The Australian relates.
Bloomberg says that Sanyo's stock fell JPY48 to JPY181 at last
week's close in Tokyo -- 35% lower than Thursday's closing price
of JPY229. The cost of protecting the company's debt against
default doubled compared with that of Feb. 22 as perceptions of
its creditworthiness deteriorated, the report cites BNP Paribas.
Five-year credit-default swaps based on JPY1 billion of Sanyo
bonds rose to JPY16.8 million from JPY8 million on Feb. 22,
according to BNP Paribas.
To Restate 2003 Financials
AFX News, citing the Nikkei, notes that Sanyo Electric has
decided to voluntarily restate its year to March 2004 earnings
following the launch of the SESC investigation into its
accounting procedures for that year.
The exact size of the revision has yet to be determined, the
report says.
Sanyo, AFX says, is expected to make the announcement next
month.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
operations in Brazil, Germany, India, Ireland, Spain, the United
States and the United Kingdom, among others.
Sanyo, according to press reports, has struggled after an
earthquake damaged a key chip-making plant in Niigata, central
Japan in October 2004. Operating losses in the unit mounted to
JPY17.7 billion in the year to March 2005 and JPY35.1 billion
the following year.
An investigation was launched by Japan's Securities and Exchange
Commission on Sanyo's financial accounts for the year to March
2004. The probe, media reports say, is a blow to Sanyo at a
time when it has been struggling to turn around its business,
trimming thousands of jobs, reducing factory space and dropping
some businesses since announcing a restructuring plan in 2004.
The company got a much-needed capital boost in January 2006 from
a group of investors led by Goldman Sachs Group Inc., which
became the company's top shareholders and took over the board,
putting new management in place.
The Troubled Company Reporter - Asia Pacific reported on
December 22, 2006, that Fitch Ratings has affirmed the 'BB+'
Long-term foreign and local currency Issuer Default and senior
unsecured ratings on Sanyo Electric Co., Ltd. The Outlook on
the ratings remains Stable. The rating affirmations follow
Sanyo's latest downward revision of its forecast for the fiscal
year ending March 2007, reflecting the difficulty of its
operating environment, the need for additional restructuring
activities, as well as the recent recall of its rechargeable
batteries. Fitch says Sanyo's revised forecast is in line with
the agency's expectation for the company at the time of
assigning the current ratings.
The TCR-AP also reported on Dec. 20, 2006, that Standard &
Poor's Ratings Services lowered to 'BB-' from 'BB' its long-term
corporate credit rating on Sanyo Electric. At the same time,
Standard & Poor's lowered to 'BB' from 'BB+' its issue ratings
on Sanyo Electric's senior unsecured debt. The outlook on the
long-term credit rating is negative. The ratings were removed
from CreditWatch, where they were placed on Nov. 22, 2006.
SAPPORO HOLDINGS: Steel Partners Steps Up Pressure on Bid
---------------------------------------------------------
Steel Partners may sell its shares in its buyout target,
Sapporo Holdings Ltd., if another company launches a tender
offer for the brewery, The Japan Times says, citing Steel
Partners representative Yusuke Nishi.
According to the report, Mr. Nishi said that if another brewer
or even Sapporo management makes a buyout proposal, Steel
Partners will decide whether to comply with them after assessing
their business plans and purchase terms.
The representative added that it would be good for Sapporo
Holdings if it would be acquired by a company involved in beer
production, rather than by an investment fund like Steel
Partners, The Times states.
Mr. Nishi said that Steel Partners will begin a hostile takeover
bid if Sapporo management snubs its buyout proposal.
Steel Partners wants to acquire Sapporo Holdings because it has
become a more attractive target as a result of an increase in
the appraisal value of its real estate holdings, The Times adds.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 19, 2007, that Steel Partners Japan Strategic Fund
(Offshore), L.P., which currently owns 17.52% of the outstanding
common shares in Sapporo Holdings as of December 31, 2006,
submitted a proposal to the management of Sapporo Holdings Ltd.
requesting discussions aimed at securing their recommendation
for a negotiated transaction to acquire (including the Fund's
current holding) shares representing 66.6% of the voting rights
in the company.
The Times recounts that Steel Partners began buying Sapporo
shares nearly three years ago, spending an average of JPY460 per
share.
The report also states that Mr. Nishi denied that his firm had
been approached by Asahi Breweries Ltd, or any other firms
interested in Sapporo Holdings, now that the stock price for
Sapporo Holdings has already doubled.
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.
=========
K O R E A
=========
KOREA EXCHANGE BANK: Hana Financial to Make Second Bid for Bank
---------------------------------------------------------------
Hana Financial Group has decided to make a second bid to buy
Korea Exchange Bank once it is put up for sale again, AFX News
Limited says, citing a report from the Dong-A Daily newspaper.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 12, 2007, Lone Star Fund's decision last year to sell the
bank to a strategic investor has not changed.
Lone Star was set to sell KEB to Kookmin Bank when prosecutors
ruled that the U.S.-based fund's purchase of KEB was illegal --
due to the bank fixing the share prices of its card subsidiary,
KEB Credit Services. Kookmin Bank had outbid Singapore's DBS
Bank and Hana to buy KEB. The TCR-AP reported on Nov. 27, 2006,
that Lone Star then terminated its agreement to sell its
controlling stake in KEB to Kookmin.
"The KEB is likely to be up for sale next year. . .and we will
proceed with a bidding (for it)," the paper quotes Hana Chief
Executive Officer Yoon Kyo-Joong as saying.
According to the paper, Hana is preparing for various strategies
in preparation for a possible bidding.
"For Hana, KEB's credit card unit with a customer base of 8 mln
is more attractive than the lender (as a whole). KEB has many
overseas branches in the U.S. and Europe but Hana is focused
more on its China operations," the Dong-A Daily cites another
Hana official.
The paper adds that Kookmin Bank has also affirmed its
willingness to make another bid for KEB once it comes on to the
market again.
Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank. KEB Futures -- http://www.kebf.com/english/-- is
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.
* * *
Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.
Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.
On Feb. 22, 2007, Standard & Poor's Ratings Services affirmed
its C+ Fundamental Strength Rating on Korea Exchange Bank.
===============
M A L A Y S I A
===============
MYCOM BERHAD: Gets SC's Nod on Plan Implementation Extension
------------------------------------------------------------
At Mycom Bhd's request, the Securities Commission extended up to
April 30, 2007, the time within which the company may complete
its restructuring scheme, the company told the Bursa Malaysia
Securities Bhd.
Along with the approval, the SC required Mycom to disclose in
its Abridged Prospectus the avenue and timeframe for the
elimination of its accumulated losses.
* * *
Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged
in the provisions of granite quarry services, manufactures and
sells latex rubber thread, tape, plywood, laminated board and
sawn timber, cultivates oil palm fruits, and develops property.
The company is also involved in hotel operation, provision of
management and financial services and investment holding.
Operations of the Group are carried out in Malaysia and South
Africa.
Mycom is in the advanced stage of negotiations to settle its
foreign debts. The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction will reduce the company's accumulated losses.
Mycom's balance sheet as of end-December 2006 showed total
assets of MYR817 million and total liabilities of
MYR1.34 billion, resulting to a shareholders' deficit of
MYR528.84 million.
OLYMPIA INDUSTRIES: SC Okays Plan Completion Extension Request
--------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Jan. 25, 2007, that the Olympia Industries Bhd asked the
Securities Commission to extend its deadline to complete the its
regularization plan.
Specifically, the company asked for:
-- up to April 30, 2007, to complete a restructuring scheme;
and
-- up to July 31, 2007, for Jupiter Securities Sdn Bhd, a
subsidiary company, to merge with another stock-broking
company.
In an update, Oympia Industries told the Bursa Malaysia
Securities Bhd that the SC has approved its requested extension,
subject to the condition that it disclose in its Abridged
Prospectus the avenue and timeframe for the elimination of its
accumulated losses.
* * *
Headquartered in Kuala Lumpur, Malaysia, Olympia Industries
Berhad organizing and managing numbers forecast pools and public
lotteries, operation of recreation clubs, investment holding and
property development. Other activities include trading in
securities, paint spraying of aluminium, other metal products
and architectural products, letting of properties, maintaining
and operating internet based transaction facilities and
services, food and beverage business, events organizer and
project management, travel and tours agency, servicing of oil
and gas pipeline, asset management, money lending and
stockbroking.
Operations are carried out in Malaysia, Papua New Guinea and
Singapore. The Company has incurred continuous losses in the
past and has also been fined many times by Bursa Malaysia
Securities for failing to maintain appropriate standards of
corporate responsibility and accountability to the investing
public.
Olympia's balance sheet as at Dec. 31, 2006, showed total assets
of MYR1.02 billion and total liabilities of MYR2.13 billion.
Shareholders' deficit of the company reached MYR1.105 billion.
STAR CRUISES: Incurs US$147.56 Mil. Net Loss in 4th Quarter 2006
----------------------------------------------------------------
Star Cruises Ltd posted a sharply higher net loss in the fourth
quarter due to weak bookings coupled with high impairment
charges, higher interest costs and foreign exchange losses,
Reuters relates.
For the three months ended December 31, 2006, the group, which
owns US cruise ship operator NCL group, posted a loss of
US$147.56 million against a loss of US$25.71 million in the
year-ago corresponding period.
Full-year 2006 loss was US$156.2 million versus a full-year
profit of US$17.91 million in 2005.
The company said NCL continues to experience strong downward
pricing pressure due to over-capacity and it expects revenue
yield to be negative in the first half of 2007 compared with the
same period last year.
* * *
Star Cruises Limited -- http://www.starcruises.com/-- is a
Company publicly listed in Hong Kong and is a core member of the
Genting Group and 36.1% owned by Resorts World, which is, in
turn, 57.7% owned by Genting Berhad. Star Cruises operates 22
ships with 35,000 lower berths under five main brands: Star
Cruises and Cruise Ferries, which service Asia Pacific, and
three brands under NCL. The company also has operations in
Malaysia.
Moody's Investors Service has placed the B1 corporate family
rating of Star Cruises Limited on review for possible downgrade
on Jan. 25, 2007.
The review has been prompted by SCL's announcement that it and
Genting International Plc, a subsidiary of Genting Berhad, will
acquire a 75% interest in Macau Land Investment Corporation,
which will develop a hotel and casino project on the foreshore
of downtown Macau.
In addition, on December 11, 2006, Standard & Poor's Ratings
Services placed its BB- long-term corporate credit ratings on
Malaysia-based cruise operator Star Cruises Ltd. on CreditWatch
with negative implications.
S&P also placed its BB- long-term corporate credit ratings on
U.S. based cruise operator NCL Corp. Ltd. (NCL) and its B
foreign currency ratings on NCL's senior unsecured debt of
US$250 million due 2014 on CreditWatch with negative
implications.
TITAN CHEMICALS: Posts MYR773 Million Net Profit in FY 2006
-----------------------------------------------------------
Titan Chemicals Corp. Bhd posted a net profit of
MYR773.18 million on MYR5.45 billion of revenues in the fiscal
year ended Dec. 31, 2006, as compared with a net profit of
MYR319.40 million on MYR4.49 billion of revenues in the fiscal
period 2005.
The year-to-date profit gained by the company in the fiscal year
ended 2006 was 142% higher than what was recorded in 2005. The
consolidated profit after tax of the company saw a 35% increase
in 2006, as compared to the preceding year.
Titan said that the strengthening of business and consumer
confidence during the period enhanced the company's operating
profit.
In addition, the excess of the group's interest in the net fair
value of the acquired company, Chemical Brothers Ltd, was also
recognized.
As of end-December 2006, the company's current assets reached
MYR1.42 billion and current liabilities amounted to
MYR675.15 million.
A full text-copy of the company's financial statement can be
viewed for free at:
http://bankrupt.com/mis/titan-4q-2006.pdf
* * *
Based in Malaysia, Titan Chemicals Corp. Berhad --
http://www.titangroup.com-- has two main business segments,
manufacture and sale of olefin products, and manufacture and
sale of polyolefins products. Its subsidiaries include Titan
Petchem (M) Sdn. Bhd., Titan Trading Corp. Sdn. Bhd., Titan
Capital (L) Limited, Titan Petrochemicals (M) Sdn. Bhd., Titan
Vinyl (M) Sdn. Bhd., Titan Ethylene Glycol (M) Sdn. Bhd., Titan
Styrene (M) Sdn. Bhd. and Titan Trading Corp. Limited.
Standard and Poors gave the company a BB on its long-term issuer
default rating on July 8, 2005.
=====================
N E W Z E A L A N D
=====================
ALERT ALARMS: Official Assignee Acts as Liquidator
--------------------------------------------------
On Feb. 7, 2007, the Official Assignee of Alert Alarms Ltd was
appointed as the company's liquidator.
As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Rotorua heard the liquidation petition against the
company Nov. 13, 2006. Wiseman Electric Co Wgtn Ltd filed the
petition.
The Liquidator can be reached at:
Official Assignee
Insolvency and Trustee Service
Private Bag 4714, Christchurch
New Zealand
Telephone: 0508 467 658
Website: http://www.insolvency.govt.nz
BECKENHAM INVESTMENTS: Faces Liquidation Proceedings
----------------------------------------------------
On Dec. 21, 2006, GM Jordan Construction Ltd filed with the High
Court of Christchurch a petition to liquidate Beckenham
Investments Ltd.
The Court heard the liquidation petition on Feb. 26, 2007, at
10:30 a.m.
GM Jordan's solicitor can be reached at:
M. H. O. Maling
Lane Neave
Level 15, PricewaterhouseCoopers Centre
119 Armagh Street, Christchurch
New Zealand
CONNEXIONZ: To Raise Funds Through Share Purchase Plan
------------------------------------------------------
In a filing with the New Zealand Stock Exchange, Connexionz
Limited will hold a Special General Meeting on Feb. 27, 2007, at
5:30 p.m. at the Company's offices, in Level 1 Building 2, 1
Show Place, in Addington, Christchurch.
The Special General Meeting has been called to consider and vote
on the proposed Share Purchase Plan to be offered to all
shareholders of Connexionz Limited.
The proposed Share Purchase Plan will further support the
company's recent formation of a 50-50 joint venture company by
taking a 50% stake in the United Kingdom's Infocell Investments
Ltd. A syndicate of United Kingdom investors holds the other
50%. This included a contract for Connexionz to manage and
market the joint venture.
The proposed Share Purchase Plan follows the arrangements for
the initial formation of the joint venture company, where the
cost to Connexionz of taking up 50% of the joint venture company
is GBP75,000, and a working-capital loan of GBP100,000 is
provided. The money was raised by a private placement of
Connexionz shares with a small number of existing shareholders
in which 3,033,651 shares were issued at 24 cents per share
being 2 cents per share discount to the market on the date of
issue.
Connexionz Chairman Craig Boyce explains that the proposed Share
Purchase Plan:
(a) is designed to involve shareholders in the successful
formation of the new joint venture, by raising further
funds to meet the additional costs in bringing together
the product, marketing and sales strengths of each
organization; and
(b) takes advantage of the Securities Act (NZX - Share and
Unit Purchase Plans) Exemption Notice 2005 which allows
funds to be raised from existing shareholders without
incurring the costs of developing a prospectus and
investment statement.
Proceeds of the Share Purchase Plan may also be used to assist
with Connexionz's ongoing marketing efforts in the United States
of America, Mr. Boyce says.
Under the Exemption, the rights to purchase additional shares
are limited to NZ$5,000 to each shareholder and the rights
issued must be non-renounceable.
Mr. Boyce notes that "non-renounceable" means that the right to
the shares on offer may not be transferred to someone else, even
another existing shareholder.
As previously advised, the joint venture provides an entry for
Connexionz's software, BusFinder Xpress signage and development
services into this important UK market. If approved, each of
the Directors in Connexionz proposes to take up full entitlement
for new shares.
* * *
Christchurch, New Zealand-based Connexionz Limited --
http://www.connexionz.co.nz/-- is a technology company that
develops real-time vehicle tracking systems for the local and
international markets. The company's products include city-side
systems, airport buses, bus interchanges, the BusFinder and
technical papers. Connexionz has a real time system for
tracking a fleet of buses across a city, handling up to 10,000
vehicles and up to 2,500 routes. The Company's BusFinder signs
provide passengers with information citywide at bus stops,
within interchange buildings and in malls and restaurants. The
Company has also customized their system to provide real time
information for airport bus services.
Going Concern Doubt
After examining the company's annual report for the financial
year ending March 31, 2006, Deloitte -- the company's
independent auditors -- raised a fundamental uncertainty on the
company's ability to continue as a going concern, which is
dependent upon the ability to fund future activities from
operational cash flows and/or raise further capital. Deloitte
adds that the company may need to provide for further
liabilities that might arise, and to reclassify non-current
assets as current assets.
CROMDALE DEVELOPMENTS: Court Sets Liquidation Hearing on March 5
----------------------------------------------------------------
The High Court of Wellington will hear a liquidation petition
filed against Cromdale Developments Ltd on March 5, 2007, at
10:00 a.m.
Westview Aluminum Ltd filed the petition on July 21, 2006.
Westview Aluminum's solicitor can be reached at:
T. M. Bates
Accounts Enforcement Limited
Ground Floor, 31-33 Great South Road
Newmarket, Auckland
New Zealand
CRUSOE PROPERTIES: CIR Files Liquidation Petition
-------------------------------------------------
On Dec. 5, 2006, the Commissioner of Inland Revenue filed before
the High Court of Auckland a liquidation petition against Crusoe
Properties Ltd.
The petition is scheduled for hearing on March 1, 2007, at
10:45 a.m.
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
MAX TRANSPORT: Parsons and Kenealy to Act as Liquidators
--------------------------------------------------------
On Feb. 8, 2007, Dennis Clifford Parsons and Katherine Louise
Kenealy were appointed as joint and several liquidators of Max
Transport Ltd.
The company's Joint and Several Liquidators can be reached at:
Dennis Clifford Parsons
Katherine Louise Kenealy
Indepth Forensic Limited
Insolvency Practitioners
PO Box 278, Hamilton
New Zealand
Telephone:(07) 957 8674
Facsimile:(07) 957 8677
MORRIS LIGHTING: CIR Seeks to Liquidate Company
-----------------------------------------------
On Nov. 30, 2006, the Commissioner of Inland Revenue filed a
petition to liquidate Morris Lighting (NZ) Ltd.
The petition will be heard before the High Court of Auckland on
March 1, 2007, at 10:45 a.m.
The CIR's solicitor can be reached at:
S. J. Eisdell Moore
Meredith Connell
Level 17, Forsyth Barr Tower
55-65 Shortland Street, Auckland
New Zealand
NEW ZEALAND KNIGHTS: Creditors Must Prove Debts by March 9
----------------------------------------------------------
The creditors of New Zealand Knights Football Club Ltd are
required to prove their debts by March 9, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in any distribution the company will make.
The Joint Liquidators can be reached at:
Karen Betty Mason
Michael Lamacraft Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
NORTHSHORE TAVERNS: Court Appoints Joint Liquidators
----------------------------------------------------
The High Court of Auckland appointed Henry David Levin and Barry
Phillip Jordan as joint and several liquidators of Northshore
Taverns Ltd on Feb. 8, 2007.
Accordingly, the company's creditors are required to make their
claims and to establish any priority claims they may have on
March 8, 2007.
The Troubled Company Reporter - Asia Pacific previously reported
that the company faced liquidation proceedings on Feb. 8, 2007.
The Joint Liquidators can be reached at:
Henry David Levin
Barry Phillip Jordan
PPB McCallum Petterson
Level 11, Forsyth Barr Tower
55-65 Shortland Street, Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
NZ STONE: Creditors' Proofs of Claim Due on June 8
--------------------------------------------------
The creditors of NZ Stone Masonry Ltd are required to make their
claims by June 8, 2007, and to establish any priority claims
they may have.
According to the Troubled Company Reporter - Asia Pacific, the
High Court of Auckland heard the liquidation petition against
the company on Feb. 8, 2007.
The Joint Liquidators can be reached at:
Vivian Judith Fatupaito
Richard Dale Agnew
PricewaterhouseCoopers
Level 8, PricewaterhouseCoopers Tower
188 Quay Street (Private Bag 92162), Auckland
New Zealand
Telephone:(09) 355 8000
Facsimile:(09) 355 8013
REVIVAL COMM: Liquidation Hearing Slated for March 1
----------------------------------------------------
A petition to liquidate Revival Comm Security Systems Ltd will
be heard before the High Court of Auckland on March 1, 2007, at
10:00 a.m.
Bosch Security Systems Ltd filed the petition with the Court on
Nov. 16, 2006.
Bosch Security's solicitor can be reached at:
T. M. Bates
Accounts Enforcement Limited
Ground Floor, 31-33 Great South Road
Newmarket, Auckland
New Zealand
SEALEGS CORP: Secures 2nd Patent for Amphibious Boat Technology
---------------------------------------------------------------
Sealegs Corporation Limited's wholly owned subsidiary -- Sealegs
International -- has been granted and issued its second patent
in New Zealand for its amphibious boat technology.
The second patent is in addition to Sealegs first patent which
was granted in April 2006 in New Zealand and subsequently in
Australia, South Africa, and the U.S.A. Both Sealegs first and
second patents are also pending in other worldwide markets.
"The second patent is complimentary to our first patent in that
it is more specific and detailed in regards to our current
production designs, especially in relation to the Sealegs
retractable and steerable front leg assembly," Sealegs CEO Mr
David McKee Wright explains.
"Sealegs has and will continue to invest in protecting its
unique amphibious boat technology through further international
patents," Mr. McKee notes, adding that "this intellectual
property protection is very important and valuable in protecting
our market position as the world's leading manufacturer of
amphibious boats, especially as we add future potential
licensing revenue streams."
In addition to its patent protection, Sealegs has been
registered as a trademark and is a registered design in most of
its major markets.
About Sealegs Corp.
Headquartered in Albany, New Zealand, Sealegs Corporation
Limited -- http://www.sealegs.com/-- is engaged in the
manufacture of amphibious marine craft. The company's wholly
owned subsidiaries are Sealegs International Limited, Sealegs
Middle East Limited, and Sealegs Australia Pty Limited. Sealegs
International Limited manufactures amphibious marine craft.
Sealegs Middle East Limited and Sealegs Australia Pty Limited
are dormant. Sealegs are motorized, retractable and steerable
boat wheels, which are fitted to a customized 5.6-meter rigid
inflatable boat. Sealegs amphibious boats are used by customers
in New Zealand, Australia, the United States, the United Arab
Emirates, France and the United Kingdom.
The group and parent posted consecutive net deficits after
taxation for the years ended March 31, 2006 and 2005, with the
group suffering net losses of NZ$1,211,061 and NZ$1,063,354 for
2006 and 2005 (company: NZ$209,582 and NZ$3,575,464),
respectively.
SSS GIFTS: Court to Hear Liquidation Petition on March 1
--------------------------------------------------------
On Nov. 22, 2006, the High Court of Auckland received a petition
to liquidate SSS Gifts Ltd from the Commissioner of Inland
Revenue.
The petition will be heard on March 1, 2007, at 10:00 a.m.
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
THREE SISTERS: Creditors to Prove Debts by March 9
--------------------------------------------------
The creditors of Three Sisters Hills No2 Ltd are required to
prove their debts by March 9, 2007.
Failure to comply with the requirement will exclude a creditor
from sharing in the company's distribution.
As reported by the Troubled Company Reporter - Asia Pacific, the
petition to liquidate the company was heard before the High
Court of Auckland on Feb. 1, 2007.
The Joint Liquidators can be reached at:
Peri Micaela Finnigan
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
=====================
P H I L I P P I N E S
=====================
EQUITABLE PCI: Board Resolves to Integrate Various Subsidiaries
---------------------------------------------------------------
Equitable PCI Bank, Inc.'s board of directors resolved to
consolidate, integrate or merge:
a. its two IT company subsidiaries -- PCI Automation Center,
Inc., and Equitable Data Center, Inc., with the latter as
the surviving entity;
b. Equitable Exchange, Inc., with its parent EBC Investments,
c., once the merger with Banco de Oro Universal Bank
ceives the required regulatory approvals; and
c. PCI Capital Corp. and EBC Capital Corp. with the merged
Banco de Oro-EPCI, Inc., after the latter receives the
necessary regulatory approvals.
According to a disclosure with the Philippine Stock Exchange,
the board made the decision at its meeting on Feb. 22.
The board also resolved to sell or dispose the bank's equity
investments in certain corporations. In that regard, the bank
will engage the services of a broker and an investment portfolio
manager to handle the disposition of the shares. The board also
decided to sell or dissolve non-operating non-stock companies,
which companies the bank did not identify.
Palmiery Resigns from Audit Committee
On the same board meeting, Director Reynaldo P. Palmiery
tendered his resignation as a member of the bank's board audit
committee, effective immediately. Mr. Palmiery cites
irreconcilable conflict in schedule between the BAC meetings and
meetings of the Board of Trustees of the Government Service
Insurance System to which he is also a member.
After the board accepted the resignation, it adopted a
resolution to reduce the BAC membership from six to five
directors.
PSE Approves Additional BDO Listing
In a separate PSE filing, the bank discloses the stock
exchange's approval of the listing of BDO's additional
1,308,606,021 common shares with par value of PHP10 per share to
cover the merger with EPCIB at an exchange of 1.80:1 -- 1.80 BDO
common shares for each EPCIB common share.
Actual listing of the new shares will take effect only after the
compliance of BDO with various PSE requirements. The
corresponding delisting of EPCIB common shares will
simultaneously take effect on the listing date of the BDO
shares.
About EPCIB
Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a
universal bank formed from the consolidation of Equitable
Banking Corp. and PCI Bank on Sept. 2, 1999. EBC and its
subsidiaries provide commercial, corporate, and retail banking
and financial services, including lending and deposit taking,
branch banking, international banking, electronic banking, trade
finance, cash management, and trust and treasury services.
Aside from commercial banking, the Bank also capitalizes in
credit card, investment banking, leasing, trust banking, and
remittance business.
About Banco de Oro
Banco de Oro Universal Bank -- http://www.bdo.com.ph/--
provides a wide range of corporate, commercial and retail
banking services in the Philippines, which include traditional
loan and deposit products, as well as treasury, trust banking,
investment banking, cash management, insurance, remittance,
retail cash cards and credit card services.
Banco de Oro is a member of the SM Group of Companies, one of
the Philippines' largest conglomerates, and is currently ranked
among the top 10 banks in the Philippines in terms of assets,
capital, deposits and loans. Its asset quality indicators (non-
performing loans & non-performing assets) are among the lowest
in the industry.
BDO - EPCI Merger
The Troubled Company Reporter - Asia Pacific has reported that
on Nov. 6, 2006, the boards of BDO and EPCIB passed resolutions
approving a plan to merge the two companies. Both Boards have
endorsed to their shareholders the approved Plan of Merger for
final ratification. Completion of the transaction is subject to
regulatory approval and is anticipated to close by the first
quarter of 2007.
The combination will be structured as a merger and executed by
means of a share-for-share exchange. Under the proposed terms,
Banco de Oro will serve as the surviving entity, and Equitable
PCI shareholders will receive 1.80 BDO common shares for every
Equitable PCI share. The name of the combined institution will
be Banco de Oro - EPCI, Inc.
* * *
On Feb. 5, 2007, Fitch Ratings commented on the upcoming merger
of Banco de Oro and Equitable PCI, noting that the merged entity
will be superior to the pre-merged EPCI in several aspects, and
will likely take on the higher Individual rating of BDO. Fitch
currently has the ratings of BDO at Individual 'C/D', Support
'3'; and EPCI at Individual 'D', Support '3'. Fitch also has a
Long-term foreign currency Issuer Default rating on EPCI of
'BB'/Outlook stable.
GEOGRACE RESOURCES: Signs Garnierite MOA for Nickel Mine Rights
---------------------------------------------------------------
GEOGRACE Resources Philippines, Inc., signed a memorandum of
agreement to acquire 100% of the issued and outstanding capital
of Garnierite Mining, Inc., or, in the alternative, Garnierite's
mining rights over 6,804 hectares of nickel property located in
Malaybalay, Bukidnon.
The move is pursuant to GEOGRACE's aim to build up its nickel
assets for development arrangements with mining companies, the
company says.
If GEOGRACE decides to acquire Garnierite, the parties intend to
enter into a share-for-share swap arrangement under which
GEOGRACE will issue new shares in favor of Garnierite's
shareholders in exchange for 100% of the total and issued
outstanding capital stock of Garnierite.
If GEOGRACE opts for the Bukidnon Mining Rights, the parties
will enter into a share-for-property swap agreement where GEO
will issue new shares in exchange for the Bukidnon Mining
Rights.
With the Garnierite acquisition, the company estimates its
nickel properties to total approximately 31,990 hectares
positioned in three areas -- Zambales, Palawan and Bukidnon.
Under the deal, GEO will act as Garnierite's attorney in fact to
negotiate and conclude with third parties for the off take of
nickel ore that may be found in the Bukidnon Property.
The execution of the definitive agreements are still subject to
due diligence by both parties, valuation of mining rights and
the necessary approvals by their respective board of directors,
the Securities and Exchange Commission and the Philippine Stock
Exchange.
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.
PHILCOMSAT HOLDINGS: Names Concepcion Poblador as New Director
--------------------------------------------------------------
Philcomsat Holdings Corporation informs the Philippine Stock
Exchange that its shareholders, by majority vote, has elected
Concepcion A. Poblador as the company's new director.
Ms. Poblador will replace Atty. Roberto V. San Jose who resigned
from his director post. Atty. San Jose remains to be PHC's
corporate secretary.
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, PHC was one of
the active participants in search of oil. The company has since
withdrawn from oil exploration because there was no commercial
discovery of oil.
On Jan. 10, 1997, the company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
According to a Troubled Company Reporter - Asia Pacific report
on May 18, 2006, PHC has not declared dividends for the past two
fiscal years.
Philcomsat is involved in an anomaly brought about by huge
losses. The company reported a PHP16.9-million net loss in
2005. The Philippine Senate has initiated an inquiry into the
matter. Moreover, according to press reports, a huge fraction
of the shareholdings of Philcomsat, which is said to be ill-
gotten, had been confiscated by the Government.
GLOBE TELECOM: To Hold Annual Stockholder's Meeting on March 28
---------------------------------------------------------------
In a disclosure with the Philippine Stock Exchange on, Globe
Telecom, Inc., said that its annual stockholder's meeting will
be held on March 28, 2007, at 2:30 p.m. at the Grand Ballroom,
Intercontinental, Manila, in Ayala Center, Makati City.
Globe Telecom, Inc. -- http://www.globe.com.ph/-- is one of the
country's major telecommunications companies. It was
incorporated on January 15, 1935 as a traditional provider of
telex/telegram and VSAT services. Thereon, it diversified its
business into a cellular, landline and international gateway
facility services provider for long distance telephone calls.
The Company offers a wide range of telecommunications services
to business and residential subscribers, including wireless,
wireline and carrier services. It has introduced innovative
features like text messaging, Infotext and Handyphone Mobile
Office. It also offers caller ID, voice mail, call forwarding
and data/fax capabilities. Recently, it launched various
services like video messaging, streaming video, wireline data
services, over-the-air loading and its latest, MyGLobe G-TV
service, which allows subscribers to view selected TV programs
on mobile phones, among others.
* * *
Standard and Poors gave Globe Telecom's Long Term Foreign Issuer
Credit and Long Term Local Issuer Credit both a BB+ rating,
effective Nov. 3, 2005, and June 23, 2004, respectively.
On Sept. 1, 2006, the Troubled Company Reporter - Asia Pacific
reported that S&P affirmed its ratings on Globe Telecom Inc. at
'BB+', with a stable outlook.
On Nov. 3, 2006, Moody's Investors Service affirmed Globe
Telecom's Ba2 senior unsecured foreign currency rating and
changed its outlook to stable from negative. At the same time,
Moody's has affirmed Globe's Baa2 domestic currency issuer
rating. The outlook for this rating remains stable.
SAN MIGUEL: Moody's Affirms Ba1 Rating After Coca-Cola Sale
-----------------------------------------------------------
Moody's affirmed on Feb. 22, 2007, the Ba1 local currency
corporate family rating of San Miguel Corporation after the
company announced it is to sell its 65% stake in Coca-Cola
Bottlers Philippines Inc to The Coca-Cola Company. The rating
outlook remains stable.
"The reduction in revenue and operating cash flow as a result of
the sale is offset by SMC's plan to apply the sale proceeds to
repay short-term debts, which will improve its short-term
liquidity and lower its leverage," says Renee Lam, a Moody's
Vice President/Senior Analyst.
Moody's expects the loss of revenue and profits due to the
disposal to be moderate. For the 9 months ended Sep 30, 2006,
CCBPI accounted for 15% and 3% of SMC's consolidated revenue and
operating profits respectively.
Historically SMC has relied heavily on uncommitted short-term
bank facilities, which is a rating negative. Of the total sale
consideration of US$590 million, SMC will immediately receive
US$370 million (about PHP18 billion) to be used to reduce part
of its short-term borrowings.
SMC would then receive the balance of the sale proceeds in
stages, which would further improve the company's relatively
weak liquidity profile.
SMC's rating continues to reflect the size, diversity and
profitability of its operations, as well as the company's strong
brand equity and commanding positions in most of its markets,
which provide it with a strong platform for cash flow
generation.
These strengths are offset by the company's relatively weak
financial metrics, partly resulting from its debt-funded
acquisition of National Foods Limited in 2005.
The rating may experience upward pressure should SMC generate
continued growth outside of the Philippines and improved margins
in its beverages and food businesses. Such an outcome may be
indicated by a stabilization of EBITA margins at 13% or higher;
Adjusted Debt/Adjusted EBITDA approaching 2.0x; and Adjusted
RCF/Adjusted Net Debt steadying at around 22%. A longer track
record of integrating acquisitions will also be helpful.
On the other hand, the ratings may come under adverse pressure
should SMC experience delays in reducing leverage, either due to
additional acquisitions or unexpected costs associated with
expansion and problems absorbing input prices. This may be
reflected by EBITA margins falling below 10%; Adjusted
Debt/EBITDA surpassing 3.5x in 2007; and/or FCF/Total Adjusted
Debt remaining negative beyond 2007.
SMC is the third largest corporation in the Philippines in terms
of revenue, and the largest food and beverage company in
Southeast Asia. SMC is engaged in the production, processing
and marketing of alcoholic beverages and soft drinks, food and
packaging products in the Philippines, as well as having food
and beverage operations in Australia.
=================
S I N G A P O R E
=================
DIGILAND INTERNATIONAL: Director Increases Stake
------------------------------------------------
Dr. Philip Poh Siew Chuan, a director of Digiland International
Ltd, has purchased the company's shares in the open market.
As a result, Dr. Philip now holds 4,006,000 direct shares with
0.052% issued share capital. Prior to the purchase, Dr. Philip
held 3,250,000 direct shares with 0.042% issued share capital.
About Digiland
Digiland International Limited -- http://www.digiland.com.sg/--
is a major distributor of IT products and provider of IT
services in the Asia-Pacific. The Digiland International Group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited. It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific. The company has been
reporting a string of losses in the recent years due to the
negative impact of the highly cyclical nature of the computer
industry. Sales were adversely affected by the shortening
product cycles of IT products and downward pressure on selling
prices as newer and more technologically advanced products enter
mass production. Aside from recurring losses, the company's
subsidiaries have also been bombarded by wind-up petitions filed
by creditors.
The company has acquired losses for the past two years. For the
fiscal year ended June 2005, the Company's annual report showed
a US$18.7-million loss while fiscal year ended June 2004 showed
a US$44.7-million loss.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 13, 2006, the company registered US$31.32 million in total
assets and a US$11.94 million shareholders' equity deficit as of
October 12.
ODYSSEY RE: Declares Dividend on Series A & B Preferred Shares
--------------------------------------------------------------
Odyssey Re Holdings Corp has declared a cash dividend of
US$0.5078125 per share on its 8.125% non-cumulative Series A
preferred shares. Likewise, Odyssey Re declared a US$0.5381250
per share on its floating rate non-cumulative Series B preferred
shares. The dividends will be payable on April 20, 2007, to the
Series A and Series B preferred shareholders of record on
March 31, 2007.
About Odyssey Re
Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance. Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited. The company underwrites through offices in the United
States, London, Paris, Toronto, Mexico City and Singapore.
Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.
* * *
Odyssey Re Holdings Corp.'s preferred stock carries a Ba2 rating
from Moody's and a BB rating from Fitch. Fitch also gave the
company senior unsecured debt and long-term issuer default
ratings of BB+.
ODYSSEY RE: Increases Quarterly Dividend to US$0.0625 Per Share
---------------------------------------------------------------
Odyssey Re Holdings Corp. unveiled that it has increased its
quarterly cash dividend by 100% from US$0.03125 per common share
to US$0.0625 per common share. The company also declared a
dividend payable on March 30, 2007, to shareholders of record at
the close of business on March 16, 2007.
About Odyssey Re
Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance. Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited. The company underwrites through offices in the United
States, London, Paris, Toronto, Mexico City and Singapore.
Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.
* * *
Odyssey Re Holdings Corp.'s preferred stock carries a Ba2 rating
from Moody's and a BB rating from Fitch. Fitch also gave the
company senior unsecured debt and long-term issuer default
ratings of BB+.
REFCO INC: Refco LLC Trustee Pays Cure Amounts for US$38.3 Mil.
---------------------------------------------------------------
Pursuant to an order authorizing him to (i) assume and perform
an Acquisition Agreement with Man Financial, Inc., (ii) sell
regulated futures commission merchant business, and (iii) assume
and assign related executory contracts to Man Financial, Albert
Togut, the Chapter 7 Trustee overseeing the liquidation of
Refco, LLC's estate, reports that he has paid US$38,354,067 in
cure amounts on account of more than 700 contracts:
Date Description Amount
---- ----------- ------
11/28/05 Pioneer Futures-Viola Contract Cure US$27,225,000
03/17/06 Currenex Cure Payment 1,422,137
04/28/06 Broker Cure Payments 5,397,005
05/23/06 Nyfix Overseas Cure Payment 251,196
06/02/06 Gombas Cure Payment 319,899
07/07/06 Broker Cure Payments 759,591
09/21/06 Broker Cure Payments 2,973,855
Various Dates Property Lease Cure Payments 5,384
Refco LLC is a debtor-affiliate of Refco Inc.
A schedule detailing all counterparties to assumed contracts and
leases and the Cure Amounts paid is available at no charge at
http://ResearchArchives.com/t/s?1a1e
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
REFCO INC: Refco LLC Pays US$9.6 MM in Exchange Memberships
-----------------------------------------------------------
Albert Togut, the Chapter 7 Trustee overseeing the liquidation
of the Refco LLC estate, discloses that more than 90 claims were
satisfied from the US$9,601,267 proceeds of the Debtor's
exchange memberships in accordance with an order authorizing him
to assume and perform the Acquisition Agreement with Man
Financial, Inc.
To facilitate the transfer of Refco LLC's Exchange Memberships
to Man Financial free and clear of liabilities pursuant to the
Acquisition Agreement, the Chapter 7 Trustee posted deposits
with commodity exchanges totaling approximately US$87,100,000.
The deposits served as a proxy for the exchange memberships that
were transferred to Man Financial, and secured payment of any
claims that were made in accordance with applicable exchange
rules.
Consequently, a number of exchanges and exchange members
asserted claims against the deposits that had been posted by the
Chapter 7 Trustee.
The Chapter 7 Trustee states that all claims asserted at
commodity exchanges have now been resolved, and all claims
allowed at the exchanges have been paid from the proceeds of the
deposits used to secure the transfer of the Exchange Memberships
to Man Financial free and clear of liens and liabilities.
The consolidated amounts paid for Exchange Fees & Member Claims
are:
Fee Type Exchange Amount
-------- -------- ------
Exchange Fees Chicago Board Options Exchange US$1,369,273
Member Claims Chicago Board Options Exchange 765,869
Exchange Fees Chicago Mercantile Exchange 4,261,488
Member Claims Chicago Mercantile Exchange 1,200,888
Exchange Fees New York Mercantile Exchange, Inc. 1,815,810
Exchange Fees New York Board Of Trade 26,937
Exchange Fees Kansas City Board of Trade 23,444
Member Claims Kansas City Board of Trade 128,794
Exchange Fees Mineapolis Grain Exchange 8,763
Refco LLC is a debtor-affiliate of Refco Inc.
A detailed report of claims paid from the deposits used to
secure the transfer of Exchange Memberships is available at no
charge at http://ResearchArchives.com/t/s?1a1f
http://bankrupt.com/misc/refcollcExchangefees.pdf
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
SCOTTISH RE: 4Q Earnings Report Cues Fitch to Lower Ratings
-----------------------------------------------------------
Fitch Ratings has downgraded Scottish Re Group Ltd.'s (NYSE:
SCT) ratings:
Scottish Re Group Ltd.:
-- Issuer Default Rating to 'B+' from 'BB';
-- Preferred Stock to 'B-' from 'B+'; and
-- 'RR6' Recovery Rating Assigned.
Operating subsidiaries:
-- Insurer Financial Strength to 'BB+' from 'BBB'.
All ratings remain on Rating Watch Evolving.
The ratings action follows Scottish Re's release of earnings for
the fourth quarter of 2006, which highlight the business and
operating challenges and uncertainties that the Company
continues to face. Excluding one-time items, run-rate operating
earnings capacity is significantly below Fitch's ratings
expectations. Of note was the significant impact of higher than
estimated retrocession costs, as well as adverse mortality and
lapse experience. Additional items such as lower new business
profits, and higher financing and collateral costs can be
attributed to the Company's liquidity issues and ratings
downgrades in the summer and fall of 2006.
The rating action reflects Fitch's heightened concern that the
pending agreement with MassMutual Capital Partners LLC and
Cerberus Capital Management, L.P. or MassMutual/Cerberus could
be called off due to further deterioration in Scottish Re's
business position and earnings profile as discussed in the
above-mentioned earnings release.
The ratings remain on Rating Watch Evolving reflecting the
pending MassMutual/Cerberus agreement, which is expected to
result in a new equity investment into the company of US$600
million. The successful close of that agreement would alleviate
near-term concerns for collateral financing in 2007, is expected
to have a positive impact on Scottish Re's business prospects
and franchise, and may result in an upgrade in the ratings
assigned to SCT and its affiliates sometime shortly following
the close of the transaction.
If the transaction does not close, Fitch expects that the
ratings of the holding company would be downgraded to a level no
higher than 'CC' and the IFS ratings would be downgraded to no
higher than 'CCC'.
These ratings have been downgraded and remain on Rating Watch
Evolving:
Scottish Annuity & Life Insurance Company (Cayman) Limited
-- IFS downgraded to 'BB+' from 'BBB'
Scottish Re (U.S.) Inc.
-- IFS downgraded to 'BB+' from 'BBB'
Scottish Re Limited
-- IFS downgraded to 'BB+' from 'BBB'
Scottish Re Group Limited
-- IDR downgraded to 'B+' from 'BB'; and
-- 7.25% US$125 million non-cumulative perpetual preferred
stock downgraded to 'B-' from 'B+'; 'RR6' Assigned.
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
SCOTTISH RE: AM Best Continues Review After Reporting Loss
----------------------------------------------------------
A.M. Best Co. has commented that the financial strength, issuer
credit and debt ratings of Scottish Re Group Limited (Cayman
Islands) [NYSE: SCT] and its operating subsidiaries remain
unchanged and continue to be under review with positive
implications following the announcement by Scottish Re that its
net loss for fourth quarter and full year 2006 was US$233.8
million and US$376.7 million, respectively.
The loss for fourth quarter 2006 was driven primarily by a
number of write-downs including goodwill, deferred acquisition
costs, reinsurance recoverables and deferred tax assets.
Moreover, Scottish Re's operating earnings from its North
American reinsurance segment were adversely affected by higher
mortality and unfavorable lapse experience.
The results for 2006 continue to reflect the difficulties
Scottish Re has with earlier tax planning strategies, weak
accounting systems and higher expenses associated with
collateral financing and interest costs as a result of rating
downgrades and liquidity concerns.
Despite the reported loss in fourth quarter 2006, which was
significantly below expectations, A.M. Best is maintaining
Scottish Re's ratings based on the belief that MassMutual
Capital Partners LLC and Cerberus Capital Management L.P. will
move forward with their previously announced intent to invest
US$600 million into Scottish Re. In addition, Scottish Re is
amending the original terms of the agreement to provide for
additional indemnification to these investors of up to US$68.5
million should mortality experience deteriorate below a
predetermined level over the next three years. A.M. Best
expects the transaction to close in second quarter 2007. The
capital investment will be a major step toward improving
Scottish Re's liquidity posture and should enable it to resume
meaningful new business activities.
Scottish Re's statutory results for its onshore operating
companies are not yet public. Although the main items driving
the reported net loss are primarily GAAP related and thus not
expected to materially impact U.S. statutory results, A.M. Best
will revisit Scottish Re's ratings should statutory earnings and
capital levels be reported significantly below A.M. Best's
expectations. Furthermore, any deterioration in the perceived
commitment of the acquiring entities by A.M. Best would result
in a downgrading of the company's ratings.
A.M. Best last rated Scottish Re last Nov. 28, 2006. The same
ratings continue to be under review after the announcement of
the Scottish Re's net loss for last year.
Nov. 28, 2006 Ratings:
The FSRs of B (Fair) and the ICRs of "bb+" remain under review,
and the implications have been revised to positive from negative
for the following subsidiaries of Scottish Re Group Ltd.:
-- Scottish Annuity & Life Insurance Company (Cayman) Ltd.
-- Scottish Re (U.S.), Inc.
-- Scottish Re Life Corporation
-- Scottish Re Limited
-- Orkney Re, Inc.
The ICR of "b" remains under review and the implication has been
revised to positive from negative for Scottish Re Group Ltd.
The following debt ratings remain under review, and the
implications have been revised to positive from negative:
Scottish Re Group Limited:
-- "b" on US$115 million 4.5% senior unsecured convertible
notes, due 2022
-- "ccc+" on US$143 million 5.875% of hybrid capital units,
due 2007
-- "ccc+" on US$125 million non-cumulative preferred shares
Stingray Pass-thru Trust:
-- "bb" on US$325 million senior unsecured pass-thru
certificates, due 2012
The following indicative ratings for debt securities under the
shelf registration remain under review, and the implications
have been revised to positive from negative:
Scottish Re Group Limited:
-- "ccc+" on preferred stock
-- "b-" on subordinated debt
-- "b" on senior unsecured debt
-- Scottish Holdings Statutory Trust II and III
-- "b-" on preferred securities
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.
===============
T H A I L A N D
===============
COMPUTER SCIENCES: Soliciting Consents From Noteholders
-------------------------------------------------------
Computer Sciences Corporation is soliciting consents from the
holders of record, as of 5:00 p.m. on Feb. 20, 2007, of all of
its outstanding:
-- 3.50% Notes due 2008,
-- 6.25% Notes due 2009,
-- 7.375% Notes due 2011, and
-- 5.00% Notes due 2014.
CSC is requesting a one-time waiver through July 9, 2007, of any
default or event of default that has arisen prior to the
effective date of the waiver by virtue of CSC's failure to file
with the Securities and Exchange Commission and furnish to
Citibank, N.A., the Trustee with respect to the Notes, and
holders of the Notes, certain reports required to be so filed
and furnished by CSC pursuant to the terms of the indentures
governing the Notes.
Holders of the Notes are referred to CSC's Consent Solicitation
Statement dated Feb. 21, 2007, and the related Letter of Consent
for the detailed terms and conditions of the consent
solicitation.
As previously announced, CSC has not yet filed with the SEC its
Quarterly Report on Form 10-Q for either the fiscal quarter
ended Sept. 29, 2006, or the fiscal quarter ended Dec. 29, 2006.
On Dec. 8, 2006, CSC received a notice of default from the
Trustee alleging a default under the various indentures
governing the Notes arising from CSC's failure to timely file
the Quarterly Report for the fiscal quarter ended Sept. 29,
2006.
On Dec. 21, 2006, CSC obtained a waiver through March 9, 2007,
from more than a majority of the holders of CSC's outstanding
6.25% Notes with respect to its failure to file the Quarterly
Report for the fiscal quarter ended Sept. 29, 2006.
As of the date of the Consent Solicitation Statement, CSC has
not received any notice of default from holders of 25% or more
of the aggregate principal amount of any series of Notes.
CSC is offering an initial consent fee of a $1.25 in cash for
each $1,000 in principal amount of the Notes to all holders of
record on Feb. 20, 2007, who properly execute and deliver a
Letter of Consent, that is not thereafter revoked, on or prior
to the expiration of the consent solicitation.
If CSC has not filed its Quarterly Reports with the SEC on or
before 5:30 p.m., New York City time, on the ninth day of each
month (beginning April 9, 2007) following payment of the initial
consent fee, CSC will pay to each consenting holder an
additional $1.00 in cash for each $1,000 in principal amount of
Notes until the earlier of the date on which CSC has filed its
Quarterly Reports with the SEC and July 9, 2007.
The proposed waiver will become effective with respect to each
series of Notes promptly following the receipt of valid and
unrevoked consents from holders representing a majority of the
outstanding aggregate principal amount of such series of Notes.
The consent solicitation will expire at 5:00 p.m., New York City
time, on Monday, March 5, 2007, unless otherwise extended by CSC
with respect to one or more series of Notes.
Holders may submit their Letters of Consent to the Tabulation
Agent at any time on or prior to the expiration date. Holders
may revoke their consents prior to the effectiveness of the
proposed one-time waiver with respect to the applicable series
of Notes as described in the Consent Solicitation Statement.
Agents
CSC has retained Global Bondholder Services Corporation to serve
as its Tabulation Agent for the consent solicitation. Requests
for documents should be directed to Global Bondholder Services
at (866) 470-3800 or (212) 430-3774.
CSC has also retained Merrill Lynch & Co. and Banc of America
Securities LLC as Solicitation Agents for the consent
solicitation. Questions regarding the terms of the consent
solicitation should be directed to the Solicitation Agents at:
Merrill Lynch (888) 654-8637 or (212) 449-4914 (collect), or
Banc of America Securities (866) 475-9886 or (704) 386-3244
(collect).
About Computer Sciences Corporation
Headquartered in El Segundo, Calif., Computer Sciences
Corporation (NYSE: CSC) -- http://www.csc.com/-- is a global
information technology services company. The company's services
include systems design and integration; IT and business process
outsourcing; applications software development; Web and
application hosting; and management consulting. It maintains
operations in Thailand, Australia, China, Czech Republic,
Slovakia, Denmark, France, among others. The company has
approximately 77,000 employees.
DAIMLERCHRYSLER AG: Volkswagen & Renault-Nissan Snub Chrysler
-------------------------------------------------------------
Volkswagen AG, Renault SA, and Nissan Motor Co. are not
interested in acquiring or entering into a partnership with
DaimlerChrysler AG's Chrysler Group, the Wall Street Journal
reveals.
Reports say that Volkswagen and Chrysler agreed last year to
manufacture a mini-van model bearing the Volkswagen brand in a
Chrysler facility.
The Renault-Nissan auto alliance had initially been tagged as
possible Chrysler partners after DaimlerChrysler disclosed its
intention to sell the unit or find partners among other
automakers to help run the company, WSJ says.
Thierry Moulonguet, Renault's chief financial officer, said that
despite their desire to welcome a North American partner, they
are not so keen about buying a stake in Chrysler or purchasing
the whole company, WSJ states.
Carlos Ghosn, chief executive officer of both Renault and
Nissan, explored an alliance with General Motors Corp. through
negotiations last year but failed at the attempt, WSJ relates.
A source recently said that Mr. Ghosn finds Chrysler less
appealing than General Motors because of its considerably
smaller size, as well as DaimlerChrysler's failure to make the
company profitable, WSJ reports.
The Chrysler Group posted an operating loss of EUR1.1 billion
in 2006, compared with an operating profit of EUR1.5 billion
in 2005. In the fourth quarter of 2006, Chrysler reported a
US$1.5 billion loss.
As reported in the Troubled Company Reporter-Europe on Feb. 19,
citing German publication Manager Magazin, DaimlerChrysler AG
and General Motors Corp. are in talks about a possible purchase
of the Chrysler Group by GM.
GM and DaimlerChrysler AG's Chrysler Group are also in talks of
an alliance to share costs of chassis designs and reduce
development expenses for a large sport utility vehicle, Jeff
Green and Jeff Bennett of Bloomberg report citing people
familiar with the talks.
GM and the Chrysler Group have been discussing the matter for
six months without reaching an agreement, the Wall Street
Journal noted.
About Renault SA
Headquartered in Cedex, France, Renault SA --
http://www.renault.com/-- designs, develops, manufactures, and
sells innovative, safe, and environmentally friendly vehicles
worldwide. It has industrial and commercial presence in 118
countries with 128,893 employees who contribute to a strategy of
profitable growth based on three key factors: competitiveness,
innovation, and international expansion.
About Nissan Motor
Based in Tokyo, Japan, Nissan Motor Co., Ltd. --
http://www.nissan-global.com/provides automotive products and
services that deliver superior measurable values to all
stakeholders in alliance with Renault.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in 33
countries and its vehicles are sold in 200 countries. GM sells
cars and trucks under these brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.
About Volkswagen AG
Headquartered in Wolfsburg, Germany, the Volkswagen Group --
http://www.volkswagen.de/-- is one of the world's leading
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DAIMLERCHRYSLER: Chrysler CEO Tells Workers of Partnership Talks
----------------------------------------------------------------
Chrysler Group Chief Executive Tom LaSorda has sent an e-mail
message to employees saying that a "frenzy of rumors" circulated
that DaimlerChrysler AG is seeking partners and strategic
options for the group.
In his message posted on a media Web site, Mr. LaSorda said,
"The board of management has a duty to consider all options, but
while this process is ongoing, the board -- including myself --
can't comment on developments because of strict legal
requirements."
He added that, "It may take weeks or months before official
comments can be made on some issues."
He stressed that: "Meanwhile, our job is very clear. Our
mission is to produce great cars and trucks, to take care of our
customers and to restore profitability. . . Whatever fork in
the road we may take, we first have to make sure we're on the
road -- and the recovery and transformation plan is that road."
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 15, 2007, Chrysler Group disclosed a three-year Recovery
and Transformation Plan that will result in an employee
reduction of 13,000 people from 2007 to 2009 and US$4.5 billion
financial improvements by 2009.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
TOTAL ACCESS: Fitch Places BB+ Rating on Watch Negative
-------------------------------------------------------
Fitch Ratings has, on February 23, 2007, placed the ratings of
Total Access Communication Plc on Rating Watch Negative. The
ratings placed on RWN are:
-- Long-term foreign currency IDR 'BB+',
-- National Long-term 'A(tha)',
-- Short-term 'F1(tha)', and
-- senior unsecured debentures rated 'A(tha)'.
The RWN follows heightening policy, regulatory and legal risks
that could substantially affect the major telecom operators in
Thailand. The agency notes that these risks may go beyond
merely a tightening in the foreign ownership laws proposed last
month. Rising policy uncertainties may lead to a review of the
concessions for the telecom operators in Thailand, which could
also affect new investment and shareholder support. The RWN
will be resolved once there is greater certainty on the key
policy and regulatory issues.
DTAC's ratings reflect its strong market position, strengthening
financial position and shareholder support from Telenor of
Norway. At end-2006, DTAC's net debt-to-EBITDA ratio continued
to improve to 2.1x from 2.4x at end-2005. Nonetheless, in light
of intensified competition and the effort to improve network
coverage in remote areas, DTAC will likely continue to make
higher investments as a percentage of revenue, compared to rival
Access Communication Plc. For 9M06, DTAC's total capital
expenditures to revenue ratio was 23.7% (2005; 23.6%), compared
to that of 18.1% for AIS (2005; 17.5%).
Notwithstanding these policy and regulatory risks, the
underlining performance of DTAC should remain strong in 2007,
despite moderating subscriber growth.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Andrei Sanchez, Nolie Christy Alaba, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano,
Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez,
and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***