/raid1/www/Hosts/bankrupt/TCRAP_Public/070326.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, March 26, 2007, Vol. 10, No. 60
Headlines
A U S T R A L I A
ARCHTECT PTY.: Enters Voluntary Wind-Up
DELACOMBE COACHWORKS: Undergoes Wind-Up Proceedings
DROUGHTMASTER EXPORTERS: Appoints Neil Donaldson as Liquidator
GLASDON PTY: Final Meeting Slated for April 18
GVLT LOGISTICS: ASIC Bans Director from Managing Corporations
J. WARREN: Will Declare Dividend for Unsecured Creditors
MARK STEVENS: Members & Creditors Set to Meet on April 12
MAX DEVELOPMENT: Court Extends Orders to Preserve Scheme Assets
MEDMONT PTY: Members Opt to Liquidate Business
OPTISCAN EMPLOYEE: Taps Samuel Richwol as Liquidator
UNI-AIRE SECURITY: Creditors' Proofs of Debt Due on March 28
WINAMEA PTY: Members to Hear Wind-Up Report
C H I N A & H O N G K O N G
BENQ: Fourth Quarter Loss No Sudden Effect on Ratings, TRC Says
BIJOU TASZ: Names Poon Ching Wah as Liquidator
BRITE STAR: Members Pass Resolution to Wind Up Firm
FAIRAY INDUSTRIES: Names Sze Sau Wan as Liquidator
FORDSKY (HK): Liquidator Quits Post
GOLD HEALTH: Members Set to Meet on April 16
GREAT WALL: Chou Yiu Keung Quits Liquidator Post
H.K. 1618: Members' Final General Meeting Set for April 24
KWOK LUEN: Liquidator to Present Wind-Up Report
LIVENGOOD INVESTMENT: Members to Receive Wind-Up Report
MATTAWAN LIMITED: Taps Allan Yu Hon Wing as Liquidator
I N D I A
AFFILIATED COMPUTER: Darwin Deason & Cerberus Submit Buyout Plan
AFFILIATED COMPUTER: Moody's Reviews Ratings on Purchase Offer
AFFILIATED COMP: Buy Offer Cues Fitch to Put Ratings on Watch
ANDHRA BANK: Board Declares 20% Interim Dividend
DENA BANK: Eyes Non-Life Insurance Business; Seeks Partner
KINETIC ENGINEERING: To Release FY 2006 Financials by March 31
KINETIC ENGINEERING: M. K. Khera Gets Managing Director Post
TECUMSEH PRODUCTS: Brazilian Unit Seeks Judicial Restructuring
I N D O N E S I A
ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units
ALCATEL-LUCENT: To Upgrade Nautilus Ltd.'s Submarine Network
GOODYEAR TIRE: To Refinance Principal Credit Facilities
INDOFOOD SUKSES: 2006 Net Profit Jumps Fivefold to IDR661 Bil.
INDOSAT: 2006 Net Income Falls 13.6% to IDR1.4 Trillion
NORTEL: Commences US$1-Bil. Senior Convertible Notes Offering
NORTEL: Moody's Assigns 'B3' to US$1-Bil. Senior Unsecured Notes
NORTEL NETWORKS: S&P Puts B- Rating on Proposed US$1-Bil. Debt
MATAHARI PUTRA: Net Profit Falls 28% to IDR160.5 Billion in 2006
MATAHARI PUTRA: To Sell Stores for IDR572 Bil. to Property Trust
PERTAMINA: Court Orders US$319-Million Payment to Karaha Bodas
J A P A N
ALL NIPPON: LA Office Raid Part of FBI's Air Cargo Cartel Probe
COSMO OIL: To Pay For Iranian Crude Oil Using Other Currencies
DELPHI CORP: Eyes Plant Shutdown for Bankrupt Spanish Unit
LIVEDOOR: Fuji TV To File JPY38B-Billion Damages Suit Next Week
MAZDA MOTORS: Reveals Mid-Term Plan for Fiscal Years 2007-2010
MAZDA MOTORS: Announces "Sustainable Zoom-Zoom" Development Plan
NIKKO CORDIAL: Says 4Q Profits May Rise Due To Low Tax Costs
NOMURA HOLDINGS: To Implement Organizational Changes
NORTHWEST AIRLINES: Wants Court Nod on WCAA Settlement Agreement
NORTHWEST AIRLINES: Court Approves US$1.225 Bil. DIP Amendment
SAPPORO HOLDINGS: Fund Issues Letter Opposing Defense Measures
SHIKOKU BANK: Fitch Affirms Individual Rating at "D"
XM SATELLITE: National Music Publishers' Association Files Suit
XM SATELLITE: FCC Rules Doesn't Bar Planned Merger
YAMANASHI CHUO: Fitch Affirms Individual Rating at "C"
K O R E A
SHINHAN BANK: To Manage National Pension Service's Funds
SK CORP: To Spend KRW560 Billion on a Peruvian Gas Project
WOORI BANK: Appoints Park Hae-choon as President
* Korea's Fiscal Deficit Reaches KRW10.8 Trillion in 2006
M A L A Y S I A
MALAYSIA AIRLINES: Seeks New Aircrafts for Route Expansion Plan
MYCOM BERHAD: Extends Completion of Assets Purchase to Sept. 11
PSC INDUSTRIES: SC Okays Restructuring Plan and Assets Disposal
N E W Z E A L A N D
PLUS SMS: CRE8 Acquires Brazilian Content Provider
WOOL EQUITIES: Appoints Elizabeth Hopkings as CEO
P H I L I P P I N E S
BANK OF THE PHIL. ISLANDS: FSA Partially Approves London Branch
CHIQUITA: Moody's Says Plea Agreement Won't Affect Ratings Yet
CHIQUITA BRANDS: Media Group Analyzing CEO's Tie in Gov't. Probe
PHIL. LONG DISTANCE: Sale to First Pacific Questioned
* Philippines Cuts Interest Payments by PHP10BB in Two Months
S I N G A P O R E
COMPACT METAL: Raises SGD4.4 Million in Rights Issue
LINDETEVES-JACOBERG LTD: Chief Financial Officer Resigns
LINDETEVES-JACOBERG LTD: Appoints Manfred Engel as CEO
OPALTREE SYSTEMS: Liquidation Petition Hearing Set on March 30
PETROLEO BRASILEIRO: Argentine Energy Prices Impede Investment
PETROLEO BRASILEIRO: Aims to Lead LatAm Energy Sector by 2015
PETROLEO BRASILEIRO: Loses 188,000 Barrels Due to Labor Strike
VALEANT PHARMA: Peter Blott Replaces Bary Bailey as CFO
T H A I L A N D
G-STEEL: Posts THB1.68-Bil. Net Income For Fiscal Year 2006
G-STEEL: Appoints Kornpranom Wongmongkol as New Company Director
G-STEEL: Discloses Resolutions Passed At BOD Meeting
TOTAL ACCESS: Number-Shortage Woes Puts Company on Hold
- - - - - - - -
=================
A U S T R A L I A
=================
ARCHTECT PTY.: Enters Voluntary Wind-Up
---------------------------------------
On March 2, 2007, the members of Archtect Pty. Ltd. held a
general meeting and resolved to voluntarily wind up the
company's operations.
In this regard, Gregory Stuart Andrews was appointed as
liquidator.
The Liquidator can be reached at:
Gregory Stuart Andrews
G. S. Andrews & Assocs.
22 Drummond Street
Carlton, Victoria 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
About Archtect Pty
Located in Victoria, Australia, Archtect Pty Ltd is a
distributor of durable goods.
DELACOMBE COACHWORKS: Undergoes Wind-Up Proceedings
---------------------------------------------------
On March 5, 2007, the members of Delacombe Coachworks Pty Ltd
held a general meeting and agreed to voluntarily wind up the
company's operations.
In this regard, Samuel Richwol was appointed as liquidator.
The Liquidator can be reached at:
Samuel Richwol
O'Keeffe Walton Richwol
431 Burke Road, Glen Iris 3146
Australia
Telephone:(03) 9822 9823
About Delacombe Coachworks
Delacombe Coachworks Pty Ltd provides bus terminal and service
facilities. The company is located in Victoria, Australia.
DROUGHTMASTER EXPORTERS: Appoints Neil Donaldson as Liquidator
--------------------------------------------------------------
Droughtmaster Exporters Pty Ltd started to wind up its
operations on Feb. 22, 2007.
Accordingly, Neil Donaldson was appointed as liquidator.
The Liquidator can be reached at:
Neil Donaldson
PO Box 978
Kenmore, Queensland 4069
Australia
Telephone:(07) 3378 3040
About Droughtmaster Exporters
Droughtmaster Exporters Pty Ltd provides livestock services.
The company is located in Queensland, Australia.
GLASDON PTY: Final Meeting Slated for April 18
----------------------------------------------
The members and creditors of Glasdon Pty Ltd will hold their
final meeting on April 18, 2007, at 10:30 a.m., to hear a report
about the company's wind-up proceedings and property disposal.
The company's liquidator is:
Norman K. Jones
Pattisons Business Advisors & Insolvency Specialists
461 Bourke Street
Melbourne, Victoria 3000
Australia
About Glasdon Pty
Located in Victoria, Australia, Glasdon Pty Ltd is a distributor
of farm supplies.
GVLT LOGISTICS: ASIC Bans Director from Managing Corporations
-------------------------------------------------------------
On March 22, 2207, the Australian Securities Investments
Commission said that it has banned Numurkah businesswoman,
Marilyn Joy Sidebottom, from managing corporations for the
maximum period of five years.
Ms. Sidebottom was banned after an investigation into her
involvement in 11 failed companies:
1) GVLT Logistics Pty Ltd,
2) The G Apartments Pty Ltd,
3) Anchor (Vic) Pty Ltd,
4) RPM Commodities Pty Ltd,
5) DCT Services Pty Ltd,
6) APS (QLD) Pty Ltd,
7) Calnob Pty Ltd,
8) Feedstocks Pty Ltd,
9) Moama Industrial Solvents Pty Ltd,
10) Mountainglow Pty Ltd, and
11) Ritetyre Wholesale Pty Ltd.
Ten of the 11 liquidators appointed to the companies have
estimated that the companies' unsecured creditors, including
employees, trade creditors and the Australian Taxation Office,
will only receive between zero and ten cents in the dollar.
The ASIC found that Ms. Sidebottom had breached her obligations
as a director of these companies under the Corporations Act.
She was also found to have failed to understand and exercise her
duties in a number of instances as a director of eight other
companies.
"Ms. Sidebottom's reckless actions resulted in substantial
losses to creditors, and failed to meet the standards expected
of company directors. For these reasons we have decided to
impose the maximum disqualification period," ASIC's Executive
Director of Consumer Protection Greg Tanzer, said.
Ms. Sidebottom has the right to appeal to the Administrative
Appeals Tribunal for a review of ASIC's decision.
Background
Two of the companies -- Anchor (formerly GV Liquid Tankers Pty
Ltd) and DCT Services (formerly Australian Petroleum Supplies
Pty Ltd) -- were each fined AU$26.1 million by order of the
Victorian Supreme Court in June 2003 for excise fraud and other
offences arising from the illegal blending and sale of diesel
fuel mixed with cheaper fuels and waste oil products.
The twenty resulting convictions arose from an ATO investigation
which found that the companies had blended around 19 million
litres of solvents, heating oil, kerosene and waste oil (taxed
at lower excise rates) with around 13 million liters of genuine
diesel fuel. The tainted fuel was then sold as genuine diesel
fuel to unsuspecting customers in Victoria, New South Wales,
South Australia, and Queensland.
J. WARREN: Will Declare Dividend for Unsecured Creditors
--------------------------------------------------------
J. Warren (Medical) Pty Ltd, which is in liquidation, will
declare a first and final dividend for its unsecured creditors
on May 6, 2007.
Unsecured creditors are required to prove their debts by April
3, 2007, to share in the dividend distribution.
The company's liquidator is:
J. P. Cronin
McGrathNicol
Level 14, 145 Eagle Street
Brisbane, Queensland 4000
Australia
Web site: http://www.mcgrathnicol.com
About J. Warren
J. Warren (Medical) Pty Ltd -- also trading as Leichhardt
Medical Centre -- operates offices and clinics of medical
doctors.
MARK STEVENS: Members & Creditors Set to Meet on April 12
---------------------------------------------------------
The members and creditors of Mark Stevens Panel Shop Pty Ltd
will hold a final meeting on April 12, 2007, at 11:45 a.m. to
receive the liquidator's report regarding the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Leonard A. Milner
38 Oxford St.
Oakleigh, Victoria
Australia
Phone: 395682262
About Mark Stevens
Mark Stevens Panel Shop Pty Ltd operates top, body, and
upholstery repair and paint shops. The company is located in
Victoria, Australia.
MAX DEVELOPMENT: Court Extends Orders to Preserve Scheme Assets
---------------------------------------------------------------
On March 22, 2007, the Supreme Court of Queensland extended
orders obtained by the Australian Securities and Investments
Commission in relation to an unregistered property investment
schemes operated by the Max Development Group -- previously the
Glen Group.
On Feb. 28, 2007, the ASIC obtained ex parte orders to appoint
receivers and managers to identify and preserve the assets of
the scheme pending further investigation and Court orders.
The Supreme Court re-affirmed the appointment of Andrew Fielding
and David Whyte, of PPB Accountants, as receivers and managers
over the property of:
* Kevin Maxwell,
* Warren Maxwell,
* Jasmine Ink Pty Ltd,
* Max Qld Development Group Pty Ltd, and
* Macquarie Longford Estate Pty Ltd
The Court also continued a restraint previously imposed on
Messrs. Kevin and Warren Maxwell, and the companies, from
further promoting or operating the alleged illegal scheme or
dealing with the personal and company assets until further
ordered.
The scheme, which appears to have been operating since about
2002, involved about AU$3 million raised from approximately 40
investors for the purchase and development of various real
estate properties in Queensland and Tasmania.
In some cases, the Max Development Group assisted investors
acquire funds to invest in the scheme by arranging loans and, in
other cases, by arranging the roll-over of superannuation
benefits into self-managed superannuation funds, which they set
up for investors.
Many investors became concerned and complained to the ASIC when
they did not receive interest payments or the return of their
capital in accordance with the terms of their agreements and
were unable to contact any of the promoters of the scheme or
representatives of the companies.
The matter returns to Court on May 16, 2007.
MEDMONT PTY: Members Opt to Liquidate Business
----------------------------------------------
At a general meeting held on Feb. 28, 2007, the members of
Medmont Pty Ltd decided to liquidate the company's business.
Adrian Brown and John Lindholm were appointed as liquidators.
The Liquidators can be reached at:
Adrian Brown
John Lindholm
Ferrier Hodgson
PO Box 290, Collins Street West
Melbourne, Victoria 8007
Australia
About Medmont Pty
Medmont Pty Ltd is a distributor of durable goods. The company
is located in Victoria, Australia.
OPTISCAN EMPLOYEE: Taps Samuel Richwol as Liquidator
----------------------------------------------------
The members of Optiscan Employee Share Plan Company Pty Ltd held
a general meeting on March 5, 2007, and agreed to voluntarily
wind up the company's operations.
Samuel Richwol was appointed as liquidator.
The Liquidator can be reached at:
Samuel Richwol
O'Keeffe Walton Richwol
431 Burke Road, Glen Iris 3146
Australia
Telephone:(03) 9822 9823
About Optiscan Employee
Located in Victoria, Australia, Optiscan Employee Share Plan
Company Pty Ltd provides business services.
UNI-AIRE SECURITY: Creditors' Proofs of Debt Due on March 28
------------------------------------------------------------
Uni-Aire Security Pty Ltd, which is subject to a deed of company
arrangement, will declare a first and final dividend.
Accordingly, creditors are required to prove their debts by
March 28, 2007, to be included in the dividend distribution.
The company's deed administrator is:
William Bernard Abeyratne
c/o Harrisons Insolvency
Level 5, 150 Albert Road
South Melbourne, Victoria 3205
Australia
Telephone:(03) 9696 2885
About Uni-Aire Security
Uni-Aire Security Pty Ltd -- also trading as Uniaire
Airconditioners -- is a distributor of industrial and commercial
fans, blowers and air purification equipment.
WINAMEA PTY: Members to Hear Wind-Up Report
-------------------------------------------
A meeting for the members of Winamea Pty Limited will be held on
April 18, 2007, at 10:30 a.m.
David H. Scott, the company's liquidator, will present a report
regarding the company's wind-up proceedings and property
disposal.
According to the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on June 30, 2006.
Mr. Scott can be reached at:
David H. Scott
Jones Condon Chartered Accountants
First Floor, 173 Burke Road
Glen Iris, Victoria 3146
Australia
About Winamea Pty
Located in Victoria, Australia, Winamea Pty Limited is an
investor relation company.
================================
C H I N A & H O N G K O N G
================================
BENQ: Fourth Quarter Loss No Sudden Effect on Ratings, TRC Says
---------------------------------------------------------------
Taiwan Ratings Corp.'s ratings on BenQ Corp.
(twBB+/Negative/twB) are not immediately affected by the
company's announcement of the fourth quarter loss of
NT$7.89 billion, of which NT$6.72 billion was derived from its
mobile unit's warranty and maintenance cost, which is expected
to be a one-off expense.
The cost is subsidized by German-based Siemens AG, based on its
contractual commitment to BenQ.
Taiwan Ratings views the financial loss has no immediate impact
on BenQ's credit quality, since its cash flow and balance sheet
in the fourth quarter of 2006 remain consistent with the current
ratings. Its net debt reduced slightly to NT$33.23 billion at
the end of the fourth quarter 2006 from NT$35.18 billion at the
end of the previous quarter, mainly through proceeds from the
disposal of long-term investments and fixed assets of
NT$2 billion. Its liquidity is adequate, given that its cash
balance of NT$9.4 billion was larger than that of long-term debt
due within one year of NT$2 billion.
The company has arranged a syndication loan of NT$7 billion in
the first quarter of 2007, which provides additional financial
flexibility. However, the performance of BenQ's mobile business
continues to be weak, which drags down the company's overall
profitability. Its operating loss enlarged to NT$1 billion in
the fourth quarter 2006 from NT$80 million in the previous
quarter.
Taiwan Ratings considers that its ratings on BenQ could be under
pressure if the company fails to improve its handset business
unit over the short to medium term.
BIJOU TASZ: Names Poon Ching Wah as Liquidator
----------------------------------------------
On March 6, 2007, Poon Ching Wah was appointed to be the
liquidator of Bijou Tasz Films (International) Limited.
Mr. Poon can be reached at:
Poon Ching Wah
Room 902, 9th Floor
Bank Centre, 636 Nathan Road
Kowloon, Hong Kong
BRITE STAR: Members Pass Resolution to Wind Up Firm
---------------------------------------------------
At the annual general meeting held on March 19, 2007, the
members of Brite Star Limited decided to voluntarily wind up the
company's operations.
Moreover, Lo Wing Hung was appointed as liquidator.
The Liquidator can be reached at:
Lo Wing Hung
Room 401, 4th Floor
China Insurance Group Building
141 Des Voeux Road Central
Hong Kong
FAIRAY INDUSTRIES: Names Sze Sau Wan as Liquidator
--------------------------------------------------
On March 19, 2007, the members and creditors of Fairay
Industries Limited passed a resolution appointing Sze Sau Wan as
the company's liquidator.
The Liquidator can be reached at:
Sze Sau Wan
Room 602, 447 Lockhart Road
Hong Kong
FORDSKY (HK): Liquidator Quits Post
-----------------------------------
Chou Yiu Keung ceased to be the liquidator of Fordsky (H.K.)
Limited on March 9, 2007.
The former Liquidator can be reached at:
Chou Yiu Keung
Rooms 2101-3 China Insurance Group Building
141 Des Voeux Road Central
Hong Kong
GOLD HEALTH: Members Set to Meet on April 16
--------------------------------------------
The members of Gold Health Limited will have their final general
meeting on April 16, 2007, at 11:00 a.m., to hear the
liquidator's report about the company's wind-up proceedings and
property disposal.
The meeting will be held at the 31st Floor of Gloucester Tower,
The Landmark, 11 Pedder Street in Central, Hong Kong.
GREAT WALL: Chou Yiu Keung Quits Liquidator Post
------------------------------------------------
On March 9, 2007, Chou Yiu Keung ceased to be the liquidator of
Great Wall Cable Car Limited.
The former Liquidator can be reached at:
Chou Yiu Keung
Rooms 2101-3 China Insurance Group Building
141 Des Voeux Road Central
Hong Kong
H.K. 1618: Members' Final General Meeting Set for April 24
----------------------------------------------------------
The members of H.K. 1618 Comm Limited will have their final
general meeting on April 24, 2007, at 10:00 a.m., to hear the
liquidator's report about the company's wind-up proceedings and
property disposal.
The meeting will be held at Level 28 Three Pacific Place in 1
Queen's Road East, Hong Kong.
Ying Hing Chiu and Chung Miu Yin, Diana are the company's
liquidators.
KWOK LUEN: Liquidator to Present Wind-Up Report
-----------------------------------------------
A final general meeting will be held for the members of Kwok
Luen Food and Beverage Enterprises Limited on May 2, 2007, at
3:00 p.m., at Room 402 of Tung Chai Building in 88-90 Wellington
Street, Hong Kong.
Liquidator Kwaan Wing Lok will present a report about the
company's wind-up proceedings and property disposal.
LIVENGOOD INVESTMENT: Members to Receive Wind-Up Report
-------------------------------------------------------
The members of Livengood Investment Limited will have their
final general meeting on April 23, 2007, at 10:00 a.m., to
receive a report regarding the company's wind-up proceedings and
property disposal.
In a report by the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on Dec. 21, 2006.
The company's liquidator is:
Sum Wai Ching, Helena
19th Floor, S.B. Commercial Building
478 Nathan Road, Yau Ma Tei
Kowloon, China
MATTAWAN LIMITED: Taps Allan Yu Hon Wing as Liquidator
------------------------------------------------------
At an extraordinary general meeting held on March 7, 2007, the
members of Mattawan Limited appointed Allan Yu Hon Wing as the
company's liquidator.
The Liquidator can be reached at:
Allan Yu Hon Wing
23rd Floor, Wing Hang Finance Centre
60 Gloucester Road, Wanchai
Hong Kong
=========
I N D I A
=========
AFFILIATED COMPUTER: Darwin Deason & Cerberus Submit Buyout Plan
----------------------------------------------------------------
Affiliated Computer Services Inc. received a proposal from
Darwin Deason and Cerberus Capital Management L.P. to acquire
all of the outstanding shares of the company for US$59.25 per
share in cash, other than certain shares and options held by
Mr. Deason and members of the company's management team,
according to a regulatory filing with the United States
Securities and Exchange Commission.
Deason-Cerberus Buyout Proposal
In their proposal, Mr. Deason and Cerberus said their proposed
price represents a premium of 15.5% over the closing price of
the company's class A common stock on March 19, 2007, and an
18.3% premium over the 90-day average closing price.
Mr. Deason and Cerberus expect that the company's Board of
Directors will establish a special committee of independent
directors to consider and negotiate the proposal on behalf of
the company's public shareholders and ultimately to recommend to
the Board of Directors whether to approve the Acquisition.
Mr. Deason and Cerberus also expect that the Special Committee
will engage its own legal and financial advisors to assist in
its review.
Specifically, Mr. Deason and Cerberus propose, among others,
that:
a) the acquisition would be structured as a merger in which a
newly formed acquisition vehicle of a holding company
organized by the proponents for the transaction would
merge with and into the company;
b) Mr. Deason continue as Chairman following the acquisition;
c) the business would continue to be run in accordance with
the company's current practice while maintaining the
company's valuable employee base; and
d) in connection with the transaction, Mr. Deason would
receive performance-based equity incentives.
Financing
Mr. Deason committed to roll, into equity securities of the
acquiror, company common stock and options having an aggregate
value of approximately US$300 million based on the proposed
acquisition price.
Members of the company's executive management team would also be
required to roll over company common stock and options
representing at least 70% of the aggregate value of the company
common stock and options held by them based on proposed
acquisition price, and other members of the company's management
team would be required to roll over at least half of the
aggregate value of the company common stock and options held by
them.
Members of management would also be afforded the opportunity to
roll over more company common stock and options. Cerberus will
make a significant cash-equity investment to fund a substantial
portion of the purchase price.
The balance of the purchase price will be financed through a
combination of bank loans and high yield securities issued
pursuant to commitment letters from financial institutions.
Citigroup Commitment Letter
Mr. Deason and Cerberus received a letter from Citigroup Global
Markets Inc. stating that it is highly confident of its ability
to raise the debt necessary to complete the transaction.
In that letter, Citigroup stated, "It is our understanding that
acquiror intends to finance the acquisition with:
(i) up to US$4,050 million of funded Senior Secured Credit
Facilities;
(ii) the underwriting or private placement of up to
US$2,515 million High Yield Notes; and
(iii) the contribution by the acquiror of cash equity and
rollover equity, all of which will allow [the acquiror]
to complete the acquisition and to pay fees and expenses
associated therewith."
In evaluating the acquisition, Citigroup said it "is highly
confident of its ability to (i) underwrite fully or privately
place through a 144A offering with subsequent registration
rights the Notes and (ii) underwrite fully and syndicate the
Senior Credit Facilities."
Timetable
Cerberus has already begun its due diligence review, but will
need to conduct additional confirmatory business, accounting and
legal due diligence. The proposal is subject to completion of
the confirmatory due diligence by Cerberus, as well as
negotiation and execution of a mutually satisfactory merger
agreement.
Cerberus believes it can complete its due diligence within 45
days from the date it is granted full access to the company's
management and the requisite due diligence materials. The
proponents anticipate negotiation of the merger agreement
concurrently with the due diligence process, with a view to the
execution of the merger agreement in early-May 2007.
Cerberus said it is prepared to commence its confirmatory due
diligence review immediately following negotiation and execution
of a mutually satisfactory confidentiality agreement.
Second Quarter 2007 Results
As reported in the Troubled Company Reporter - Asia Pacific on
March 14, 2007, Affiliated Computer Services Inc. reported net
income of US$72.1 million on revenues of US$1.426 billion for
the second quarter of fiscal 2007 ended Dec. 31, 2006, compared
with net income of US$102.4 million on revenues of
US$1.347 billion for the second quarter of the prior year.
At Dec. 31, 2006, the company's balance sheet showed
US$5.928 billion in total assets, US$4.038 billion in total
liabilities, and US$1.89 billion in total stockholders' equity.
About Affiliated Computer
A FORTUNE 500 company, Affiliated Computer Services Inc.,
(NYSE: ACS) -- http://www.acs-inc.com/-- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries. The company has global operations in
India, Brazil, China, Dominican Republic, Guatemala, Ireland,
Philippines, Poland, and Singapore.
AFFILIATED COMPUTER: Moody's Reviews Ratings on Purchase Offer
--------------------------------------------------------------
Moody's Investors Service has placed the ratings, including the
Ba2 Corporate Family Rating, for Affiliated Computer Services
Inc. on review for possible downgrade following the company's
announcement that founder Darwin Deason and private equity fund
Cerberus Capital Management have proposed to buy the company.
Mr. Deason and Cerberus are offering US$59.25 for each
Affiliated Computer share, about 16% higher than Affiliated
Computer's closing price as of March 19, 2007.
"With a proposed consideration exceeding US$8 billion, the
transaction, once approved, would likely result in a significant
increase in financial leverage and a multiple notch downgrade of
the company's ratings", according to John Moore, Moody's Senior
Analyst.
Ratings Placed on Review for Possible Downgrade:
-- Ba2 Senior Secured Term Loan Rating
-- Ba2 Senior Secured Revolving Credit Facility Rating
-- Ba2 Senior Notes Rating (US$500 Million due 2010 and 2015)
-- Ba2 Corporate Family Rating
A FORTUNE 500 company, Affiliated Computer Services Inc.,
(NYSE: ACS) -- http://www.acs-inc.com/ -- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries.
Dallas-based Affiliated Computer Services Inc. has operations in
India, Brazil, China, Dominican Republic, Guatemala, Ireland,
Philippines, Poland and Singapore.
AFFILIATED COMP: Buy Offer Cues Fitch to Put Ratings on Watch
-------------------------------------------------------------
Fitch Ratings has placed Affiliated Computer Services, Inc.'s
ratings, including the BB Issuer Default Rating, on Rating Watch
Negative following the proposed offer from Darwin Deason,
founder and chairperson of the company, and Cerberus Capital
Management L.P. to acquire the company in a leveraged buyout
transaction valued at US$8.2 billion, including existing debt.
These ratings are affected:
-- Issuer Default Rating (IDR) 'BB';
-- Senior secured revolving credit facility at 'BB';
-- Senior secured term loan at 'BB'; and
-- Senior notes at 'BB-'.
Approximately US$3.3 billion of debt, including the US$1 billion
revolving facility, is affected by Fitch's action.
Resolution of the Negative Rating Watch is contingent on these
factors:
-- The decision reached by Affiliated Computer's Board of
Directors to accept or reject the offer following a
review of the transaction;
-- The degree of leverage utilized in financing the
acquisition should the Board approve the transaction; and
-- The acquirer's ability to arrange what Fitch believes
will be approximately US$6 billion of debt financing,
assuming a 30% equity contribution.
Fitch believes Affiliated Computer's credit metrics proforma for
the transaction support an IDR in the 'B' category. Based on
the proposed offer price and a 30% equity contribution, Fitch
estimates pro forma leverage (total debt/operating EBITDA) may
increase to 6.3x from 2.8x as of Dec. 31, 2006 (bank-defined =
2.4x) due to a projected US$3.3 billion increase in outstanding
debt to US$6 billion in order to finance the transaction. Fitch
believes proforma interest coverage (operating EBITDA/ gross
interest expense) may decline to 1.7x from 7.1x for the latest
12 months or LTM ended Dec. 31, 2006 (bank-defined = 7.4x).
Fitch believes the majority of outstanding debt will be
refinanced in an LBO transaction. 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. Under the terms
of the credit facility agreement, consummation of the proposed
transaction would be an event of default, requiring immediate
repayment of all outstanding borrowings under the facility due
to a change of control provision and likely violation of
financial covenants in the agreement, including maximum
consolidated total leverage ratio of 4x and interest coverage
covenant of 4.5x.
The indenture governing Affiliated Computer's US$500 million of
senior notes offers no protection in the event of a leveraged
buyout. Affiliated Computer previously granted equal and
ratable liens in favor of the holders of the senior notes in all
assets other than accounts receivable when it obtained the
current secured credit facility. The 'BB-' rating 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.
Acceleration of principal on the senior notes as a result of
Affiliated Computer's failure to timely file its 10-K for the
year ended June 30, 2006, remains uncertain due to the company's
pending lawsuit against its Trustee, in which Affiliated
Computer seeks a declaratory judgment affirming its position
that no default has occurred under the indenture. However,
Fitch believes there is a possibility the senior notes will be
refinanced in the proposed transaction to avoid the uncertainty
associated with a sizeable contingent payment relative to
current liquidity and minimal pro forma free cash flow in a
highly leveraged capital structure.
A FORTUNE 500 company, Affiliated Computer Services Inc.,
(NYSE: ACS) -- http://www.acs-inc.com/ -- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries.
Dallas-based Affiliated Computer Services Inc. has operations in
India, Brazil, China, Dominican Republic, Guatemala, Ireland,
Philippines, Poland, and Singapore.
ANDHRA BANK: Board Declares 20% Interim Dividend
------------------------------------------------
Andhra Bank's board of directors has declared an interim
dividend of 20% for 2006-07, the bank informs the Bombay Stock
Exchange in a regulatory filing.
The board made the move at a meeting on March 15.
The bank fixed March 23 as the record date for the purpose of
payment of the interim dividend. The dividend payout date will
be on March 30.
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.
DENA BANK: Eyes Non-Life Insurance Business; Seeks Partner
----------------------------------------------------------
Dena Bank is eyeing the non-life insurance business in the near
future, the Business Standard reports, citing the bank's
Chairman and Managing Director P. L. Gairola.
At present, however, the bank is not yet too keen on getting
into non life insurance on its own. BS says the bank does not
yet have the kind of funds required to enter the business.
BS also notes that the return of investment in the insurance
segment is also longer than any other business, which return
could start by the seventh year of operation.
"We would like to get into non-life insurance business, provided
we find a company with expertise in the same field," Mr. Gairola
told the news agency.
Currently, the bank's presence in non-life insurance is limited
only to its tie up with Oriental Insurance as its distributor,
BS points out.
Headquartered in Mumbai, Dena Bank -- http://www.denabank.com/
-- is principally engaged in the provision of a range of
financial and banking solutions. It offers both retail banking
and corporate banking services.
On March 16, 2007, Fitch affirmed the bank's 'D/E' Individual
Rating and '4' Support Rating.
KINETIC ENGINEERING: To Release FY 2006 Financials by March 31
--------------------------------------------------------------
Kinetic Engineering Ltd. advises the Bombay Stock Exchange that
it will publish its audited financial results for the financial
year ended Dec. 31, 2006, within three months from the end of
the last quarter of the financial year.
Hence, the company added, it will not be publishing the
unaudited financial results for the quarter ended Dec. 31, 2006.
The company's audited financial results for the period April 1,
2004, to Sept. 30, 2005, showed a net loss INR549.6 million on
net sales of INR1.98 billion.
India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,
which specializes in two wheelers. The company has sold over 6
million vehicles in India. Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks. The company offers top-end bikes, such as Comet and
Aquila. It has a nationwide network of nearly 450 dealers and
over 1,000 service centers. Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.
The Troubled Company Reporter - Asia Pacific reported on
March 23, 2007, that the company has a stockholders' equity
deficit of US$5.40 million.
KINETIC ENGINEERING: M. K. Khera Gets Managing Director Post
------------------------------------------------------------
Kinetic Engineering Ltd informs the Bombay Stock Exchange that
M. K. Khera has been reappointed as whole-time director of the
company and elevated to the position of managing director with
immediate effect.
The appointment, however, is still subject to necessary
approvals.
According to the company, Mr. Khera has been with Kinetic Group
for the last 10 years and his last designation was joint
managing director.
India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,
which specializes in two wheelers. The company has sold over 6
million vehicles in India. Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks. The company offers top-end bikes, such as Comet and
Aquila. It has a nationwide network of nearly 450 dealers and
over 1,000 service centers. Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.
The Troubled Company Reporter - Asia Pacific reported on
March 23, 2007, that the company has a stockholders' equity
deficit of US$5.40 million.
TECUMSEH PRODUCTS: Brazilian Unit Seeks Judicial Restructuring
--------------------------------------------------------------
TMT Motoco, the Brazil-based engine-manufacturing subsidiary of
Tecumseh Products Company, filed a request in Brazil for court
permission to pursue a judicial restructuring. The requested
protection under Brazilian bankruptcy law is similar to a U.S.
filing for Chapter 11 protection in that during such a
restructuring TMT Motoco would remain in possession of its
assets and its creditors could not impose an involuntary
restructuring on it.
TMT Motoco requested the judicial restructuring following the
rejection of its request for a temporary stay pending its
previously announced appeal of a Brazilian court's decision,
entered on March 15, 2007, denying its request to impose
financial restructuring terms on two of its lenders.
TMT Motoco has suspended operations and, with the consent of its
unions, has placed its employees on vacation furlough.
TMT Motoco and a majority of its lenders had previously signed
an out-of-court restructuring agreement extending payment dates
for TMT Motoco's debt on the same terms sought to be imposed on
the two dissenting lenders in the court action.
In conjunction with its March 15 ruling, the Brazilian court
lifted a stay that had previously prevented one of the
dissenting banks from pursuing collection proceedings. The
court also implemented sweep procedures for TMT Motoco's bank
accounts. These actions had the effect of accelerating TMT
Motoco's debt to the dissenting bank, which totals approximately
$18 million, making it all now due and payable and enabling the
bank to pursue its remedies for collection under Brazilian law.
TMT Motoco had also asked the Brazilian court for injunctive
relief to suspend the outcome of the ruling pending its appeal;
that request, however, was denied. TMT Motoco's appeal has been
withdrawn.
The filing in Brazil constitutes an event of default with the
Tecumseh's domestic lenders. This will enable these lenders to
accelerate repayment of Tecumseh's debt unless such lenders
agree to waive the defaults or enter into curative amendments to
Tecumseh's first and second lien credit agreements to eliminate
the default and make other necessary changes to those
agreements. In its ongoing discussions with these lenders,
Tecumseh to date has received no indication that it intends to
accelerate or that it will not agree to any requested consents,
waivers, or amendments. There can be no assurance, however,
that Tecumseh will reach an agreement with its domestic lenders
or as to what the terms of any such agreement may be.
Tecumseh's management is continuing to assess what impact the
developments at TMT Motoco may have on its other businesses.
Tecumseh's management is working to protect these other
businesses from any adverse effects of the events at TMT Motoco
to the greatest extent possible. In that regard, Tecumseh noted
that it expects to meet all existing commitments to its engine
customers in North America as it currently has six weeks of
inventory en route from Brazil and it also has inventory
available in its warehouse in El Paso, Texas and its plant in
Dunlap, Tennessee.
A full-text copy of Amendment No. 4 To First Lien Credit
Agreement is available for free at
http://ResearchArchives.com/t/s?1bfe
A full-text copy of Amendment No. 1 To Amended And Restated
Second Lien Credit Agreement is available for free at
http://ResearchArchives.com/t/s?1bff
A full-text copy of the Out-of-Court Restructuring Agreement is
available for free at http://ResearchArchives.com/t/s?1c00
Headquartered in Tecumseh, Michigan, Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors. The company has offices in Italy,
United Kingdom, Brazil, France, and India.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units
--------------------------------------------------------------
Patricia Russo, CEO of Alcatel-Lucent, during a meeting of the
company's European group committee, stressed that the staff
reductions undertaken by the company are the direct result of
redundancies linked to the merger announced on Dec. 1, 2006, and
of Nortel's UMTS activities acquisition.
Ms. Russo emphasized that the staff reductions are also linked
to the adaptation of the business model related to its
customers' rapidly evolving needs and to the adjustment of some
activities to the market perspectives.
Those reasons, and especially the redefinition of the product
portfolio, explain why a part of the plan concerns job
reductions in R&D. While the company's presence in emerging
countries is essential to adapt products to the specificities of
those growing markets, the company insisted on the fact that
those countries would experience the impact of synergies as
well.
Ms. Russo also reaffirmed the company's strong commitment to R&D
in Western Europe and North America in particular.
The missions of the company's major European R&D competence
centers were also confirmed:
-- access in Belgium and Spain;
-- optics in Italy, Germany and France;
-- submarine networks in France;
-- IP in Belgium;
-- 2G mobile in France and Germany;
-- 3G mobile in France, following Nortel's UMTS activities
acquisition, and in Germany;
-- WiMAX in France and Germany;
-- convergence in France, Belgium, Germany and Spain;
-- enterprise in France; and
-- research & innovation in France, Germany and Belgium.
Alcatel-Lucent's active involvement in the working group on the
future of telecom in Europe put in place by the French
government is also dedicated to this commitment.
Twelve members of the management team, along with 27 delegates
from nine European countries, attended the meeting.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move. The company has operations in
Indonesia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
* * *
As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating. It's Short-Term Corporate Credit rating stands at B.
Moody's on the other hand put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.
Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.
ALCATEL-LUCENT: To Upgrade Nautilus Ltd.'s Submarine Network
------------------------------------------------------------
Alcatel-Lucent and Mediterranean Nautilus Limited, a broadband
network service provider owned by Telecom Italia Sparkle, have
further strengthened their cooperation, after successfully
inaugurating the first regional dense wavelength division
multiplexing submarine network in the Mediterranean Sea. Under
the terms of a turnkey, multi-million Euro contract, Alcatel-
Lucent will upgrade and extend the existing submarine network
which began service in 2001. As a result, MedNautilus will
benefit from extra capacity and a new route to support the
accelerated regional growth in broadband data services and
applications.
The current submarine network broke new ground for emerging data
services in the region such as high-speed Internet access,
managed hosting and storage networking. Spanning approximately
6,000 km, it is an interlocking loop that links Italy, Greece,
Turkey and Israel providing seamless broadband connectivity to
business and residential users.
With completion scheduled in the fourth quarter 2007, the new,
two-phase project will further enhance the hub located in Cyprus
enabling MedNautilus to meet the island's and neighboring
countries' increased capacity requirements. In the first phase,
Alcatel-Lucent will upgrade to 10 Gbit/s the submarine link
providing direct connection between Mazara del Vallo in Sicily,
Italy, to Yeroskipos, Cyprus. In the second phase, a new
branching unit will be deployed in Pentaskhinos to add a new
connection from Cyprus to the existing infrastructure.
"We are focused on enhancing capacity and connectivity for
maximum effectiveness to best serve our customers, while
capitalizing on our existing infrastructure," said Francesco
Nanotti, CEO of Mediterranean Nautilus. "Alcatel-Lucent
continues to be a valued partner to help us take a new step in
our regional and global capabilities in the timelines required."
"As broadband adoption rates continue growing, we are delivering
to Mediterranean Nautilus the most advanced submarine technology
to meet new service demands," affirmed Jean Godeluck, President
of Alcatel-Lucent's submarine network activity. "Our submarine
solutions offer the flexibly and reliability our customers
require to support the cost-effective delivery of innovative
services."
The Alcatel-Lucent solution will be based on the 1620 Light
Manager next-generation DWDM submarine platform, managed by the
existing Alcatel-Lucent 1350 management. Alcatel-Lucent will
also offer a comprehensive suite of professional services,
including project management, engineering, marine operation, and
installation testing and commissioning.
About Mediterranean Nautilus
Mediterranean Nautilus Limited is an Irish based company fully
owned by Telecom Italia Sparkle. Mediterranean Nautilus owns
and operates the only telecommunication submarine cable ring in
the Mediterranean, which has been in operation since 2001. The
MedNautilus network provides end-to-end connectivity from the
eastern part of the Mediterranean to major destinations in
Europe and is the leading provider in the region.
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.
GOODYEAR TIRE: To Refinance Principal Credit Facilities
-------------------------------------------------------
The Goodyear Tire & Rubber Company intends to refinance its
principal credit facilities. These include:
* A US$1.5 billion first-lien credit facility due April 30,
2010;
* A US$1.2 billion second-lien term loan facility due April
30, 2010; and
* A EUR505 million credit facility for the company's
Goodyear Dunlop Tires Europe affiliate due April 30, 2010.
Goodyear said it expects to amend, restate and extend these
facilities to provide for:
* A US$1.5 billion first-lien credit facility due in 2013,
* A US$1.2 billion second-lien term loan due in 2014 and
* A EUR505 million European revolving credit facility due
in 2012.
The transaction is subject to normal conditions and the
execution of definitive documentation. The facilities are
expected to close in April.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,and
Thailand. Goodyear employs more than 80,000 people worldwide.
* * *
The Troubled Company Reporter - Asia Pacific reported on
March 15, 2007, that Fitch Ratings has affirmed ratings for The
Goodyear Tire & Rubber Company and revised the rating outlook to
stable from negative:
--Issuer Default Rating 'B';
--US$1.5 billion first lien credit facility 'BB/RR1';
--US$1.2 billion second lien term loan 'BB/RR1';
--US$300 million third lien term loan 'B/RR4';
--US$650 million third lien senior secured notes 'B/RR4';
-- Senior unsecured debt 'CCC+/RR6'.
Goodyear Dunlop Tires Europe B.V.
--EUR505 million European secured credit facilities 'BB/RR1'
Moody's Investors Service affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1. Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed,
as was the company's Speculative Grade Liquidity rating of SGL-
2. The outlook has reverted to stable from negative.
The TCR-AP also reported on Jan. 5, 2007, that Standard & Poor's
Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on
Oct. 16, 2006, as a result of the labor dispute at several of
the company's North American plants.
INDOFOOD SUKSES: 2006 Net Profit Jumps Fivefold to IDR661 Bil.
--------------------------------------------------------------
PT Indofood Sukses Makmur Tbk's 2006 net profit rose to
IDR661.21 billion (US$72.74 million) from IDR124.02 billion in
2005, Reuters reports. The report says the more than five-fold
jump was due to firmer sales and the rebounds earned after hefty
one-off charge in 2005.
Indofood Sukses' 2006 sales rose almost 17% to
IDR21.94 trillion.
According to Bloomberg News, the company's operating profit rose
19% to IDR1.98 trillion after it began selling its Indomie
noodles, La Fonte pasta and Promina baby food at more outlets in
Indonesia.
Reuters recounts that the company suffered heavy foreign
exchange losses on its dollar denominated debts last year, while
had one-off charges from a currency swap contract and a premium
paid on the redemption of its dollar denominated bonds.
Indofood is planning to issue rupiah denominated bonds in the
second quarter of this year to reduce its foreign debt exposure
and reduce the risk of exchange rate fluctuation, Reuters adds.
About Indofood Sukses
PT Indofood Sukses Makmur Tbk (Indofood)
-- http://www.indofood.co.id/-- is Indonesia's premier
processed foods company. Its products, including instant
noodles, wheat flour, branded edible oils and fats, baby foods,
snack foods, food seasoning, lead domestic market shares.
Indofood is currently the largest instant noodles manufacturer
and the largest flour miller in the world, with installed
capacities of approximately 13 billion packs and 3.6 million
tons per annum, respectively. Indofood's products are
distributed mainly through its subsidiaries, including
Indomarco, independent distributors, as well as some
cooperatives, which bring the Company's products to more than
150,000 retail outlets in the country. Total employees as of
December 1999 were 42,172. A combination of shrinking profits,
escalating costs, losses, competition and a declining rupiah
prompted the Company to cut around 2,000 or 4.4% of its
workforce and slash 40 products from its range in 2005.
In 2005, Indofood's total outstanding debt fell to
IDR6.8 trillion from IDR7.9 trillion in 2004. The United States
dollar-denominated debts also fell to US$190.6 million in the
same period from US$317.4 million in 2004.
Indofood has bought back US$166.3 million (IDR1.55 trillion) of
its US$280 million (IDR2.61 trillion) Eurobonds due in 2007.
The Company also plans to redeem all the outstanding balance of
the Eurobonds this year.
The Troubled Company Reporter - Asia Pacific reported on
July 19, 2006, that Standard & Poor's Ratings Services has
withdrawn its 'B' corporate credit rating on Indofood at the
company's request.
INDOSAT: 2006 Net Income Falls 13.6% to IDR1.4 Trillion
-------------------------------------------------------
PT Indosat Tbk's 2006 net income fell 13.6% to IDR1.4 trillion
from IDR1.62 trillion in 2005, Bloomberg News reports.
"That compares with a median estimate of IDR1.63 trillion
by 16 analysts compiled by Bloomberg," the report points out.
The company reported sales for 2006 totaling IDR12.2 trillion.
Bloomberg, citing Finance Director Wong Heang Tuck, says the
company expects both profit and sales to rise 20% this year.
Indosat plans to raise as much as US$500 million selling debt
and use the proceeds to expand its network, Mr. Wong added.
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company is a provider of international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has affirmed the Ba1 local
currency corporate family rating of PT Indosat Tbk, and the Ba3
foreign currency senior unsecured bond rating of Indosat Finance
Company B.V. and Indosat International Finance Company B.V. The
onds are irrevocably and unconditionally guaranteed by Indosat.
The outlooks for the ratings remain positive.
A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'. The outlook on the ratings is
stable.
NORTEL: Commences US$1-Bil. Senior Convertible Notes Offering
-------------------------------------------------------------
Nortel Networks Corporation has commenced a proposed offering of
an aggregate of US$1 billion in principal amount of senior
unsecured convertible notes in two series, one maturing in 2012
and the other in 2014, to qualified institutional buyers
pursuant to Rule 144A under the U.S. Securities Act of 1933, as
amended, and in Canada to qualified institutional buyers that
are also accredited investors pursuant to applicable Canadian
private placement exemptions, subject to market and other
conditions. The Company would grant the initial purchasers
over-allotment options to purchase up to an aggregate US$150
million of additional Notes. The Notes would be convertible
into common shares of the Company and would be fully and
unconditionally guaranteed by the Company's principal direct
operating subsidiary, Nortel Networks Limited, and initially
fully and unconditionally guaranteed by the Company's indirect
subsidiary, Nortel Networks Inc. The Notes will be senior
unsecured obligations and will rank pari passu with all other
senior obligations of the Company.
The Company expects that the net proceeds from the sale of the
Notes would be approximately US$980 million and plans to use
these net proceeds to redeem on or about September 1, 2007 at
par a corresponding amount of its US$1.8 billion outstanding
principal amount of 4.25% Convertible Notes due 2008. Pending
this redemption, the Company plans to invest the net proceeds in
money market instruments.
The Notes and related guarantees and any common shares issuable
upon conversion of the Notes have not been registered under the
Securities Act or the securities laws of any other jurisdiction
and may not be offered or sold unless so registered except
pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act and
applicable securities laws in other jurisdictions.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.
* * *
As reported in the Troubled Company Reporter on Oct. 5, 2006
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
NORTEL: Moody's Assigns 'B3' to US$1-Bil. Senior Unsecured Notes
----------------------------------------------------------------
Moody's Investors Service affirmed Nortel's existing ratings B3
corporate family and assigned a B3 rating to the proposed
US$1 billion convertible senior unsecured notes offering.
Proceeds of the offering will be used to refinance a portion of
the US$1.8 billion in 4.25% convertible notes due in 2008 when
they become payable at par. The outlook remains stable.
Moody's notes the company's progress in several fronts in its
recently released year end 2006 results including revenue
increases in each of its business segments and reduction in
material weaknesses from 5 to 1. EBITDA for the year decreased
however, despite the revenue increases. Nortel's management
team has made progress in it turnaround plan but it still has
considerable challenges to return operating margins to double-
digit levels.
The recent divestiture of the UMTS business and recently
announced US$400 million cost cutting program should positively
affect EBITDA going forward if the company is able to maintain
its growth momentum. The proposed notes offering will address a
significant 2008 maturity issue and allow the company to
substantially maintain its strong cash position.
The following rating was assigned:
Nortel Networks Corporation
* Proposed US$1.0 billion Convertible Senior Unsecured
notes (guaranteed by Nortel Networks Limited) -- B3,
LGD4, 67%
The following ratings were affirmed:
Nortel Networks Corporation
* us$1.8 billion 4.25% Convertible Senior Unsecured notes
(guaranteed by Nortel Networks Limited) -- B3, LGD4, 67%
Nortel Networks Limited
* Corporate Family Rating -- B3, LGD4, 67%
* US$2.0 billion Senior Unsecured notes -- B3, LGD4, 67%
* US$200 million 6.875% senior unsecured notes -- B3,
LGD4, 67%
* Preferred Stock -- Caa3
Nortel Networks Capital Corporation
* 7.875% Senior Unsecured notes (guaranteed by Nortel
Networks Limited) -- B3, LGD4, 67%
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.
NORTEL NETWORKS: S&P Puts B- Rating on Proposed US$1-Bil. Debt
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' debt rating
to Canada-based Nortel Networks Corp.'s proposed US$1 billion
senior unsecured convertible notes, which will consist of two
tranches of US$500 million, maturing in 2012 and 2014,
respectively.
Proceeds from the convertible notes will be used to partially
refinance NNC's US$1.8 billion senior unsecured convertible
notes due Sept. 1, 2008, and therefore the overall debt level is
not expected to change.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on 100%-owned Canada-based
subsidiary, Nortel Networks Ltd. At the same time, the ratings
on the US$200 million notes of NNL and the US$150 million notes
of Nortel Networks Capital Corp. were lowered to 'CCC' from
'B-'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks
Inc., are collectively referred to as Nortel.
The outlook on NNL is stable.
"The proposed US$1 billion senior unsecured convertible notes of
the parent will be guaranteed by both NNL and NNI," said
Standard & Poor's credit analyst Madhav Hari.
"We note that the inclusion of the NNI guarantee in the proposed
offering will effectively subordinate about US$1.15 billion of
existing debt," Mr. Hari added.
This debt includes the US$200 million unsecured notes of NNL due
September 2023, the US$150 million unsecured notes of NNCC due
June 2026, and the remaining US$800 million convertible notes of
NNC due September 2008.
Given that, on a pro forma basis, priority debt and liabilities
will represent more than 30% of total adjusted assets, the
ratings on the US$200 million notes of NNL and the US$150
million notes of NNCC were lowered as noted above, reflecting
the relatively weaker recovery prospects of this structurally
junior debt in the event of a reorganization.
Nevertheless, the US$800 million remaining senior unsecured
convertible notes of NNC will continue to be rated 'B-' despite
the structural subordination; this is because Standard & Poor's
believe investors can expect a higher likelihood of full
recovery given the notes near-term maturity, particularly in the
context of Nortel's meaningful cash balances of US$3.5 billion
at Dec. 31, 2006, which are expected to be sustained.
The ratings on NNL, which are based on the consolidation with
parent NNC, reflect a highly competitive telecom equipment
industry, notably in the context of continuing carrier
consolidation; ongoing major changes in the industry's
technology direction, resulting in potential rapid adverse
changes in demand patterns; a weak but stable spending
environment for global telecom equipment and services; the
company's high level of debt and weak credit protection
measures; and profitability that continues to lag that of its
peers.
These factors are partially mitigated by the company's broad
portfolio of wireline and wireless products and services;
reasonable-scale, geographically diversified operations; strong
customer relations; early indications of a trend toward improved
profitability; and a healthy liquidity position.
The stable outlook reflects our expectations of only modest
improvement in Nortel's operating performance, including modest
growth in revenues, EBITDA, and cash flow in the next two years.
The stable outlook also assumes that Nortel will be able to
maintain a healthy liquidity position supported by a minimum of
US$1.5 billion in cash balances. The outlook could be revised
to positive should Nortel deliver better-than-expected operating
performance and improved free operating cash flows. Should
Nortel's profitability weaken, and if its free operating cash
flow remains negative in the medium term, the outlook could be
revised to negative.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.
MATAHARI PUTRA: Net Profit Falls 28% to IDR160.5 Billion in 2006
----------------------------------------------------------------
PT Matahari Putra Prima Tbk's 2006 net profit fell 28% to
IDR160.50 billion on higher financial charges and foreign
exchange losses, XFN-ASIA reports, citing a company statement.
The company's 2006 sales, however, increased by 22.7% to
IDR8.49 trillion after it opened four new department stores and
10 new hypermarkets during the year, the report points out.
According to the report, Matahari Putra department store sales
rose 7.9% to IDR4.4 trillion while its supermarket sales and
hypermarket business increased 49.4% to IDR3.7 trillion.
The company's operating profit in 2006 increased 30% to IDR401.4
billion from IDR308.8 billion a year earlier, which increase the
company attributed to better sales.
The report notes that the decreased net profit is caused by an
increase in net other charges to IDR211.70 billion from IDR59.81
billion a year ago. Financial charges rose 57% rise to
IDR176.67 and Matahari incurred forex losses of IDR50.94 billion
in 2006, compared to a gain of IDR3.96 billion in 2005, the
report adds.
About Matahati Putra
Headquartered in Tangerang, Indonesia, PT Matahari Putra Prima
Tbk -- http://www.matahari.co.id/-- is a consumer goods company
engaged in the retail business, providing clothes, jewelries,
bags, shoes, cosmetics, electronics appliances, toys,
stationeries, books, drugs and other everyday needs. It is also
engaged in the family entertainment industry through the
operation of Time Zone, a game center. The company operates
Matahari Supermarket, Hypermart stores, Cut Price stores, Boston
Drugs pharmacies, Baker's Delight bakeries, Deli Bon stores and
Market Place grocery stores. During the year ended December 31,
2005, the company opened its first store in Shenzhen, China, 13
Hypermart stores, four Cut Price stores and one Matahari
Supermarket.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Nov. 10, 2006, that Moody's Investors Service has affirmed its
B1 corporate family rating assigned to PT Matahari Putra
Prima Tbk. At the same time, Moody's has affirmed its B1 senior
unsecured rating on Matahari Finance BV's US$150 million bond
issuance, which is guaranteed by Matahari. The ratings outlook
is stable.
The TCR-AP reported on Oct. 2, 2006, that Standard & Poor's
Ratings Services affirmed its 'B+' rating to the proposed long-
term senior unsecured bonds to be issued by Matahari Finance
B.V., a special purpose financing vehicle wholly owned by
Indonesia-based retailer PT Matahari Putra Prima Tbk. (Matahari;
B+/Stable/--). The bond, which will be due in 2009, will have
an issue size of US$100 million to US$150 million.
MATAHARI PUTRA: To Sell Stores for IDR572 Bil. to Property Trust
----------------------------------------------------------------
PT Matahari Putra Prima Tbk plans to sell its stores to a
Singapore-based Property Trust for IDR572.6 billion, XFN-Asia
reports citing a company statement.
Matahari Putra said that sale depends on the success of Property
Trust's fundraising exercise.
After the sale, Matahari Putra plants to rent back the stores on
long leases after, the report points out.
The stores are located in seven shopping malls namely WTC
Matahari, Metropolis Town Square, Depok Town Square, Grand
Palladium, Malang Town Square, Java Supermall and Plaza Madiun
malls.
About Matahati Putra
Headquartered in Tangerang, Indonesia, PT Matahari Putra Prima
Tbk -- http://www.matahari.co.id/-- is a consumer goods company
engaged in the retail business, providing clothes, jewelries,
bags, shoes, cosmetics, electronics appliances, toys,
stationeries, books, drugs and other everyday needs. It is also
engaged in the family entertainment industry through the
operation of Time Zone, a game center. The company operates
Matahari Supermarket, Hypermart stores, Cut Price stores, Boston
Drugs pharmacies, Baker's Delight bakeries, Deli Bon stores and
Market Place grocery stores. During the year ended December 31,
2005, the company opened its first store in Shenzhen, China, 13
Hypermart stores, four Cut Price stores and one Matahari
Supermarket.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Nov. 10, 2006, that Moody's Investors Service has affirmed its
B1 corporate family rating assigned to PT Matahari Putra
Prima Tbk. At the same time, Moody's has affirmed its B1 senior
unsecured rating on Matahari Finance BV's US$150 million bond
issuance, which is guaranteed by Matahari. The ratings outlook
is stable.
The TCR-AP reported on Oct. 2, 2006, that Standard & Poor's
Ratings Services affirmed its 'B+' rating to the proposed long-
term senior unsecured bonds to be issued by Matahari Finance
B.V., a special purpose financing vehicle wholly owned by
Indonesia-based retailer PT Matahari Putra Prima Tbk. (Matahari;
B+/Stable/--). The bond, which will be due in 2009, will have
an issue size of US$100 million to US$150 million.
PERTAMINA: Court Orders US$319-Million Payment to Karaha Bodas
--------------------------------------------------------------
PT Pertamina (Persero) has been ordered by a Cayman Island Court
to pay Karaha Bodas US$319 million in a civil suit settlement,
Dow Jones Newswires reports, citing Pertamina Chief Executive
Officer Ari Soemarno.
According to Dow Jones, Mr. Soemarno said that he would discuss
with the Indonesian Government on Pertamina's response to the
court decision but he did not elaborate on the matter.
Karaha Bodas made the claim against Pertamina after a geothermal
plant both companies were building was cancelled due to the
1997-1998 Asian financial crisis, which crisis led to the
devaluation of the Indonesian rupiah that made dollar-
denominated deals became unaffordable, Bloomberg News relates.
Bloomberg recounts that in December 2000, a Swiss arbitration
tribunal ordered the company to pay Karaha Bodas US$261 million
to cover US$100 million spent on the project, plus the lost
profits and interest.
The Indonesian Government has contested the Swiss arbitration
tribunal's ruling and sought an out-of-court settlement with the
Karaha Bodas ever since, Dow Jones notes.
About Pertamina
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
=========
J A P A N
=========
ALL NIPPON: LA Office Raid Part of FBI's Air Cargo Cartel Probe
---------------------------------------------------------------
The United States Federal Bureau of Investigation's raid on All
Nippon Airways Co.'s Los Angeles office on March 15, 2007, was
part of American and European authorities' joint efforts to
investigate suspected cartel activities in the air cargo
industry, The Nichi Bei Times says, citing Justice Department
spokeswoman Gina Talamona.
As reported in the Troubled Company Reporter - Asia Pacific on
Mar. 19, ANA's customer relations and service office in suburban
Torrance, Los Angeles, was searched 7:30 a.m. until 4:22 p.m.,
local time, by the FBI. According to the TCR-AP report, the FBI
agents executed a federal search warrant that provided no
details on the investigation.
In the update, The Nichi Bei Times explains that the U.S.
Justice Department's Antitrust Division is investigating the
possibility of anti-competitive practices in the air cargo
sector. ANA officials have said that the company will cooperate
with the FBI's investigation.
The report recounts that the U.S. Justice Department and the
European Commission began a probe in February 2006 of airlines
in many countries, including ANA and Japan Airlines Corp., in
connection with a suspected cartel over airfreight charges.
The report says that the FBI took some documents and copied
digital data at the ANA office. An FBI representative said the
bureau could not reveal the charge, in line with federal court
instructions.
About All Nippon Airways
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The airlines flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.
The Troubled Company Reporter - Asia Pacific reported on
Jun. 13, 2006, that Fitch said the credit quality gap between
Japan's top two airlines continues to widen with All Nippon
Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from
market improvements, while its rival, Japan Airlines Corporation
-- rated 'BB-'/Stable -- continues to be grounded by internal
woes.
The TCR-AP also stated on May 30, 2006, that Moody's Investors
Service has upgraded to Ba1 from Ba3 the senior unsecured debt
ratings of All Nippon Airways Co., Ltd. The rating action
concludes the review initiated on March 3, 2006. The rating
outlook is stable.
On May 3, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability,
thanks to cost reductions efforts as well as a stronger
competitive position.
COSMO OIL: To Pay For Iranian Crude Oil Using Other Currencies
--------------------------------------------------------------
Cosmo Oil Company Limited is considering switching the payment
for its term purchases of Iranian crude from U.S. dollar to
other currencies as early as April when it finalizes contract
terms for the next fiscal year, Iran Oil Gas reports, citing a
senior company source.
The report says that Cosmo Oil had been contacted by Tehran some
six months ago about paying in alternative currencies such as
the yen or euro. Other Japanese refiners have thought about
using other currencies to pay for Iranian oil, officially priced
in American Dollars.
Iran Oil Gas says that Cosmo Oil was informed by its bank --
without giving any explanations -- in January that it chooses
not to accept dollar-based transactions related to the purchase
of Iranian crude oil.
The report also recounts that Iran, reacting to pressure from
the United States, planned to switch from the dollar to the euro
for foreign transactions and state-owned overseas assets.
According to the report, the source said that Cosmo Oil aims to
make its Iranian term crude import volume next month at about
50,000-60,000 b/d for the fiscal year ending March 2008.
Volumes lifted from Iran last year were down 14.3% at about
60,000 b/d, following a series of refinery troubles.
About Cosmo Oil
Headquartered in Tokyo, Japan, Cosmo Oil Company, Limited --
http://www.cosmo-oil.co.jp/-- is primarily an oil refining
company. The company is also involved in the purchase and
sale of real estate, the manufacture and sale of alpha lipoic
acid (ALA) products, as well as the provision of leasing and
insurance services.
Moody's Investors Service placed a Ba1 rating on Cosmo Oil's
senior unsecured debt and issuer rating on July 1, 2005.
DELPHI CORP: Eyes Plant Shutdown for Bankrupt Spanish Unit
----------------------------------------------------------
Delphi Corporation intends to shut down a chassis and steering
products manufacturing facility in Cadiz, Spain, with the loss
of about 1,600 workers.
Since the company disclosed the closure, workers and their
families have rallied in protest almost everyday, receiving
extensive media coverage in Spain, Reuters reports.
In a regulatory filing with the United States Securities and
Exchange Commission, Thomas S. Timko, chief accounting officer
and controller of Delphi Corp., explains that the Cadiz Facility
Closure is consistent with:
-- Delphi's overall transformation plan and decisions to
close or sell facilities manufacturing non-core products;
and
-- Delphi's efforts to optimize its manufacturing footprint
in order to lower its overall cost structure.
The Cadiz Facility is the primary asset of Delphi's indirect
wholly owned Spanish subsidiary Delphi Automotive Systems
Espana, S.L. Mr. Timko notes that Delphi previously recorded
long-lived asset impairments for the Facility in the fourth
quarter of 2005 but does not expect to incur significant future
impairments.
Mr. Timko relates that Delphi could incur costs for the Closure
based upon the outcome of its negotiations with the unions
representing the Cadiz Facility Employees. Delphi estimates its
costs to be around US$70,000,000 although the exact amount
cannot be ascertained pending the resolution of DAS Espana's
recent bankruptcy filing.
Concurso Filing
DAS Espana filed a petition for Concurso, or bankruptcy, under
Spanish law, on March 20, with the approval of Delphi's Board of
Directors.
Delphi has informed the Spanish Court and the Cadiz Facility
Employees that it would voluntarily provide funds sufficient to
satisfy the separation allowance to which the Employees are
entitled under applicable Spanish law, Mr. Timko says.
Delphi cautions that its ability to commit to fund any
severance-related payments and other closure charges in excess
of the legally required minimum, depending on the amount, may be
subject to the approval of the Bankruptcy Court.
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.
LIVEDOOR: Fuji TV To File JPY38B-Billion Damages Suit Next Week
---------------------------------------------------------------
Fuji Television Network Inc. plans to file a JPY38-billion
damages suit against Livedoor Co. next week over huge losses
caused by sharp declines in Livedoor's share prices, Japan Today
reports, citing a source close to the matter.
The report recounts that Livedoor shares took a plunge after
prosecutors raided the company in January 2006 on suspicion of
securities fraud. The Tokyo Stock Exchange subsequently
delisted the Internet company in April 2006 after the accounting
scandal erupted.
Japan Today recalls that about 3,600 individual investors have
already filed suits for some JPY23 billion in damages, and trust
banks entrusted by investors with managing their stocks have
also brought cases to court.
Prosecutors, earlier press reports relate, began investigating
Livedoor after the firm sought to acquire a radio network --
Nippon Broadcasting -- that owned a 32% stake in parent Fuji
TV. As reported in the Troubled Company Reporter - Asia Pacific
on March 30, 2006, Fuji TV bought a 12.74% stake in Livedoor for
JPY44 billion at a time when it assumed that the financial
information provided by the company was accurate.
About Fuji TV
Headquartered in Tokyo, Japan, Fuji Television Network, Inc. --
http://www.fujitv.co.jp/-- is engaged in the cultural,
entertainment, sports, news and environmental fields. It has
four core business segments. The Broadcasting segment is
engaged in the broadcasting of television and radio programs.
The Broadcasting-related segment specializes in the planning,
production, transmission of broadcast programs, as well as the
provision of technical support. The Mail Order segment offers
mail-order services and flowers. The Image and Music segment is
involved in the manufacture and sale of audio and video
software, as well as the management of music copyrights.
Through its subsidiaries and associated companies, the company
is also engaged in the development of software, the leasing of
real estate, as well as the provision of publishing and staffing
services. As of Mar. 31, 2006, the company had 55 subsidiaries
and 34 associated companies is engaged in the cultural,
entertainment, sports, news and environmental fields.
About Livedoor Company
Headquartered in Tokyo, Japan, Livedoor Company, Limited
-- http://corp.livedoor.com/en/-- is involved in out portal
site "livedoor," financial business, corporate web solutions,
data center and IP telephony business.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 18, 2006, that former Livedoor President Takafumi Horie and
other Livedoor directors were found to have conspired to cover
up the company's JPY310-million pre-tax loss for the business
year ended September 2004, by tampering financial accounts to
instead show an inflated pre-tax profit of JPY5.03 billion.
Moreover, Mr. Horie and the company executives allegedly relayed
false information on a merger, with the intent to boost the
stock price of Livedoor Marketing Co.
Following the accounting scandal surrounding the company in
January 2006, Livedoor's stock price plunged to JPY94 per share
from over JPY300 per share before the company was delisted from
the Tokyo Stock Exchange on Apr. 14, 2006.
MAZDA MOTORS: Reveals Mid-Term Plan for Fiscal Years 2007-2010
--------------------------------------------------------------
Based on its long-term strategy and looking 10 years ahead,
Mazda Motor Corporation has announced its new, four-year mid-
term plan, the Mazda Advancement Plan, for fiscal years 2007
through 2010. Manufacturing innovation and accelerated
structural reforms will be key focus points during this period.
Other key areas include continuing to improve Mazda's brand
value and increasing business efficiencies together with
maintaining a consistent and steady growth rate to position
Mazda for a successful future.
Mazda President and CEO, Hisakazu Imaki, said, "Under the Mazda
Momentum plan, Mazda succeeded in its efforts to build a solid
foundation for consistent and steady future growth. We
understand the challenges ahead and are addressing them.
The next steps that Mazda needs to take for the future are
clear: deepen our synergies with Ford, improve Mazda's brand
value and seek increased business efficiencies. Our new mid-
term plan, "Mazda Advancement Plan", has three numerical targets
to be achieved by 2010: 1.6 million global retail sales, an
operating profit over JPY200 billion, and a return on sales
(ROS) ratio of 6%, in addition to a stable payout of dividends."
Synergies with the Ford Motor Company, attained through deep
cooperation in a number of areas and long considered a 'win-win'
partnership, will continue to be a top priority for Mazda.
In addition, better brand value is to be achieved through
desirable new products along with quality and customer retention
improvements to further evolve Mazda's enduring Zoom-Zoom brand
ethos. Mazda will also continue to initiate structural reforms
for improved business efficiencies, with particular emphasis on
key models, enhanced product competitiveness through integrated
development, manufacturing and purchasing activities, as well as
manufacturing innovation and cost optimization that will lead
the company into another era of future growth.
Overview of the New Mid-term Plan:
A. FY2010 Targets
-- Global retail volume of over 1.6 million units
-- Operating profit of over JPY200 billion
-- Operating ROS of 6%
-- Stable payout of dividends
B. Action items
* Brand-related
1. North America
a. Strengthen the product lineup by introducing products
that reflect the voice of the customer. Improve
customer satisfaction at all touchpoints.
b. Accelerate development of next-generation
dealerships that are consistent with Mazda's brand
strategy. Improve sales productivity at exclusive
dealers.
c. Strengthen marketing initiatives to deepen
relationships with Mazda's younger customer base.
d. Work toward gaining 100% control of distributors in
the United States and Canada.
2. Japan
a. Strengthen product offerings in the registered
vehicle segment.
b. Move forward with establishing dealers in the Tokyo
metropolitan region in areas without dealer
representation at present. Grow profitability at
dealers.
c. Shift to next-generation dealer outlets in alignment
with Mazda's brand strategy.
d. Achieve outstanding satisfaction levels for customers
throughout the vehicle ownership experience.
3. Europe
a. Deliver advanced powertrains which will improve
customer satisfaction.
b. Sustain profitability in key mature markets by
improving sales productivity and forging ahead with
dealer openings in major urban areas.
c. Enter selected emerging markets.
4. China
a. Achieve a smooth launch of operations at the Nanjing
plant.
b. Develop the China dealer network to support sales of
300,000 units per year.
c. Execute efficient product launches.
5. ASEAN and Australia
a. Strengthen the ASEAN market(s) model lineup and
launch the CX-7 and CX-9 models in Australia.
b. Reinforce sales in growth markets by focusing on
urban areas.
c. Strengthen the ASEAN Regional Sales Company. Improve
customer satisfaction levels in Australia.
* Products and Technology
1. Over the course of the next four years, increase R&D
investment by 30% as well as raise capital investment
expenditures by 50% compared to the last four years.
2. Enhance Mazda's business structure through an evolution
of current key model lineups and by promoting a new
business model.
3. With evolved Zoom-Zoom attributes, accelerate the
development of next-generation technology for further
business growth after 2011.
* Production System
1. Increase production capacity in Japan
a. Expand production capacity in Japan to 996,000 units
in FY2007 through increasing production at the
Hiroshima plant by 31,000 units and by 67,000 units
at the Hofu plant.
b. Concurrently raise engine production capacity.
2. Overseas production facilities
a. Smoothly launch the Nanjing plant in China that will
introduce an evolved Mazda Manufacturing System.
b. Improve quality and cost competitiveness at
production facilities in Thailand and the U.S.
3. Future production capacity expansion policy
a. Promote manufacturing innovation to enable volume and
model mix flexible production which is competitive in
quality and cost.
b. Build sales in all markets and develop overseas
production capacity by taking into account the
balance in each market of sales demand and resource
availability.
c. Maintain domestic production capacity levels and
transfer the technical excellence developed in Japan
to other regions.
4. Human Resources Development
a. Promote the training of people who can drive
globally-oriented, 'One Mazda'-style growth.
b. Develop people who energize each workplace.
c. Foster a dynamic work environment where employees can
thrive.
About Mazda Motors
Headquartered in Hiroshima Prefecture, Mazda Motor Corporation
-- http://www.mazda.co.jp/-- together with its subsidiaries and
associates, is primarily involved in the manufacture and
distribution of automobiles. The company manufactures passenger
cars and commercial vehicles. Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.
Standard and Poor's Ratings Service gave Mazda Motor's long-term
local and foreign issuer a BB- rating.
MAZDA MOTORS: Announces "Sustainable Zoom-Zoom" Development Plan
----------------------------------------------------------------
Recognizing the challenges of CO2 mitigation will require a
concerted and coordinated effort between governments, the auto
industry, the energy industry, suppliers and consumers.
Mazda Motor Corporation has announced its long-term vision for
technology development, "Sustainable Zoom-Zoom", as part of its
brand value improvement initiatives. The plan also articulates
Mazda's role in the automotive industry's response to global
climate and transportation issues, outlining Mazda's efforts
toward realizing a sustainable environment for the future.
Amongst other aims, Mazda's primary focus will include
harnessing synergies with Ford and improving the HEV system of
the Hydrogen RE Hybrid. Introduction of Mazda's independently
developed Smart Idling Stop System (SISS) is also planned for
Japan.
In announcing the long-term technology development plan's
vision, Seita Kanai, Mazda's director and senior executive
officer in charge of R&D, said: "Mazda is committed to working
towards a sustainable future that brings continued happiness and
excitement to people in a global society, by developing vehicles
that never fail to excite, visually capture the customer's heart
and provide a fun driving experience that keeps bringing them
back to Mazda."
Under the Sustainable Zoom-Zoom plan, Mazda will pursue the
harmony felt between driving pleasure and environmental and
safety features, and the quest for an advanced Zoom-Zoom world.
Mazda's long-term vision will be supported by this new
technology development plan. Elements of the technology plan
include a drive to create captivating design, a renewed desire
for continual driving pleasure and an ongoing mission to achieve
improved safety and environmental features, all part of Mazda's
goal of improving its brand value in the eyes of consumers.
Global environmental benefits will be sought by building highly
efficient, clean powertrains and striving to reduce vehicle
weight. Working toward a better transportation environment,
Mazda is moving forward with Human Machine Interface (HMI)
technologies. HMI supports accurate recognition and assessment
of hazards, more compact design attributes, and improved vehicle
dynamics to minimize the risk of collisions. Through the
continuous development of a wide range of technologies, Mazda
seeks a balance between driving pleasure and environmental
safety features as part of its dedication to attain the goals
set out in the Sustainable Zoom-Zoom plan.
Mazda's key technical development initiatives are as follows:
1. Powertrains
-- As part of Mazda's drive toward achieving a sustainable
global environment for the future, Mazda will develop
powertrains which unite advanced environmental performance
with thrilling driving characteristics and which make cars
so fun to drive people will keep coming back for more.
-- For the future embodiment of Zoom-Zoom, Mazda will
research hydrogen fuel technologies, with particular
emphasis on internal combustion engine applications, as
part of the goal of realizing a hydrogen society in the
future. During this development period, other practical
technologies will also be introduced in line with the
advancing social infrastructure.
A. Gasoline engines
* To introduce Mazda's independently developed Smart
Idling Stop System (SISS) in the Japanese market in
2009.
* To introduce an E85 fuel-compatible flex-fuel engine to
the Northern European market in 2009.
* To upgrade Mazda's gasoline engines toward the start of
the decade beginning in 2010; increase performance and
significantly improve fuel efficiency.
B. Diesel engines
* To further evolve our clean diesel engine that has
become popular in Europe, and introduce a new diesel
engine that meets Japanese and North American long-term
emissions regulations toward the start of the decade
beginning in 2010.
C. Automatic transmissions
* To introduce a new automatic transmission with improved
fuel efficiency and performance comparable to that of a
manual transmission toward the start of the decade
beginning in 2010.
D. Rotary engines
* To introduce a new generation gasoline rotary engine
with enhanced power and fuel efficiency toward the start
of the decade beginning in 2010.
E. Future technologies
* To begin commercial leasing of the Premacy Hydrogen RE
Hybrid in 2008. Increase its power by 40% and achieve a
200-kilometer range.
* To Launch a vehicle with HEV system based on the
Hydrogen RE Hybrid toward the start of the decade
beginning in 2010.
* Develop an all-new Hydrogen RE with dynamic performance
equivalent to a 3.0-liter gasoline engine and a range of
400 km.
2. Design
-- To design cars that people will want to drive at first
sight; that people will recognize as Mazda at first sight;
and that connect with the tastes of families.
-- To offer new and exciting Mazda design cues.
-- To present new proportions that are aligned with platform
development.
3. Vehicle Technologies
-- Seeks to create vehicles that are fun to drive as well as
safe, and invent technologies that allow the designers the
freedom to create captivating styling which attracts the
eyes of potential buyers.
-- Seeking a sustainable future transportation environment,
the company will offer vehicles that have a comfortable
ride together with excellent safety features such as
collision avoidance systems.
-- To reduce vehicle weight to improve handling and cut CO2
emissions.
A. Platforms
* From 2010, the company will steadily develop safe,
lightweight new generation platforms with eye-catching
design and excellent dynamics.
* To achieve a weight reduction of approximately 100kg
for the new Mazda2/Demio due for launch in 2007, as
compared to the current model.
B. Safety technologies
* To introduce safety technologies with Mazda's Zoom-Zoom
DNA to make cars easier to operate, such as a Human
Machine Interface (HMI) system that supports accurate
recognition and assessment of hazards and user-friendly
collision avoidance dynamics.
* From next year, the company will start an Intelligent
Transportation System (ITS) verification experiment in
the Hiroshima area to examine safety in collaboration
with the government and the local community.
* Material technologies and production technologies
* To expand the applications of carbon neutral
bioplastics that were developed in collaboration with
government, industry and academia. Utilize bioplastics
in the Premacy Hydrogen RE Hybrid that is scheduled to
begin commercial leasing in 2008.
* From 2008, the company will make its paint shops the
cleanest of any plant by evolving our Three Layer Wet
Paint System with our unique water-based painting
technology.
About Mazda Motors
Headquartered in Hiroshima Prefecture, Mazda Motor Corporation
-- http://www.mazda.co.jp/-- together with its subsidiaries and
associates, is primarily involved in the manufacture and
distribution of automobiles. The company manufactures passenger
cars and commercial vehicles. Mazda Motor distributes its
products in both domestic and overseas markets. The company has
58 subsidiaries. It has overseas operations in the United
States, Canada, Mexico, Germany, Belgium, France, the United
Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia,
Columbia, New Zealand, Thailand, Indonesia and China. The
Company has a global network.
Standard and Poor's Ratings Service gave Mazda Motor's long-term
local and foreign issuer a BB- rating.
NIKKO CORDIAL: Says 4Q Profits May Rise Due To Low Tax Costs
------------------------------------------------------------
Nikko Cordial Corp. said that its fourth-quarter profit may rise
at least 39% after its tax bill declined, BLoomberg News
reports.
Specifically, the report notes that Nikko Cordial's net income
in the quarter to March 31, 2007, may rise to JPY26.5 billion
(US$225.6 million), based on calculations using the company's
forecast of JPY80 billion in full-year profit announced on
Friday. Nikko Cordial posted a profit of JPY19.2 billion in the
year-earlier quarter.
About Nikko Cordial
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The Company
operates in four business segments. The Retail segment provides
consulting services for financial products management.
The Asset Management segment provides asset management services
for individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services.
The Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore.
The company has a global network.
* * *
The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2007, that Fitch Ratings revised the Rating Watch on the foreign
and local currency Issuer Default and Individual ratings of
Nikko Cordial Corporation and Nikko Cordial Securities Inc. to
Evolving from Negative. These ratings were placed on Watch
Negative on Dec. 21, 2006:
* NCC: Individual rating C/D and Support rating 5.
* Nikko Cordial Securities: Individual C and Support rating 4.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating Nikko
Cordial for falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.
NOMURA HOLDINGS: To Implement Organizational Changes
----------------------------------------------------
Nomura Holdings, Inc., will have these organizational changes,
effective April 1, 2007:
* establishment of an IT Innovation Planning Department. The
new department will be responsible for planning and
supporting IT development for Nomura Group; and
* renaming of the Group's IT Strategy Department to IT Policy
and Governance Support Department.
About Nomura Holdings
Nomura Holdings, Inc. -- http://www.nomura.com/-- is a
securities and investment banking firm in Japan and have
worldwide operations in more than 20 countries and regions
including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries. Nomura
operates in five business segments: Domestic Retail, which
includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading
and asset finance businesses in and outside Japan; Global
Investment Banking, which includes mergers and acquisitions
advisory and corporate financing businesses in and outside
Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which
includes development and management of investment trusts, and
investment advisory services.
On Apr. 13, 2006, Fitch Ratings gave Nomura Holdings a 'C'
individual rating.
NORTHWEST AIRLINES: Wants Court Nod on WCAA Settlement Agreement
----------------------------------------------------------------
Northwest Airlines Corp. and its debtor-affiliates ask the
United States Bankruptcy Court for the Southern District of New
York to authorize a settlement agreement dated Feb. 27, 2007,
relating to Special Airport Facilities Revenue Refunding Bonds
Series 1995 among the Debtors; U.S. Bank, National Association
as trustee; and Wayne County Airport Authority, for itself and
as successor to the Charter County of Wayne, Mich.
Barry J. Dichter, Esq., at Cadwalader, Wickersham & Taft LLP, in
New York, relates that the Settlement Agreement represents a
comprehensive, integrated resolution of disputes among the
Parties with respect to their obligations related to the Special
Airport Facilities Revenue Refunding Bonds Series 1995, and
corresponding leases and agreements.
The salient terms of the agreement are:
A. The Trustee will receive claim consideration from the
Debtors, specifically:
(i) a General Unsecured Claim against Northwest Airlines for
US$49,000,000 on account of a special facilities lease;
and
(ii) a General Unsecured Claim against NWA Corp. for
US$17,000,000 with respect to the Trustee's claim on
Account of a Guarantee and Covenant Agreement dated
Nov. 1, 1995, between itself and the Debtors, which
claim will be treated for purposes of distributions
under the Plan as a claim based on a guarantee by a
Consolidated Debtor of the primary obligation of another
Consolidated Debtor.
The Trustee will also retain all special facilities charges
previously paid to it together with any other amounts held by
the Trustee pursuant to a bond ordinance plus Special Facilities
Charges for US$15,619 per day, from Dec. 1, 2006, through and
including the date of approval of the Settlement Agreement - the
Effective Date.
The Trustee will be entitled, from and after the Effective Date,
to apply and distribute the Special Facilities Payments in
accordance with the terms of the Bond Ordinance and to make
distributions to holders of the Refunding Bonds.
Upon the occurrence of the Effective Date, the allowance of the
Allowed Claims will be deemed (i) a prepayment in full of all of
the Special Facilities Charges except for current expenses items
of a similar nature, pursuant to a special facilities lease, and
(ii) a full satisfaction of the Wayne Airport Authority's
reletting obligations of the Bond Ordinance and of the Special
Facilities Lease.
After the Effective Date, the statutory lien established by the
Bond Ordinance on net revenues will be limited only to a total
claim consideration and all its proceeds, and will not apply to
any other Net Revenues. Moreover, the Refunding Bonds will
remain outstanding only for the purpose of entitlement to
distributions from the Total Claim Consideration, and the
Trustee will have no further rights or obligations under the
Bond Ordinance or the Special Facilities Lease.
When all distributions to be made on account of the Total Claim
Consideration have been received by the Trustee in accordance
with the terms of the Settlement Agreement, the Refunding Bonds
will be cancelled and will no longer be outstanding for any
purpose, except as evidence of a right to receive a pro rata
percentage of the Total Claim Consideration from the Trustee.
The Bond Ordinance and the Special Facilities Lease will
continue in effect, for the benefit of the Trustee, solely for
the purposes of:
(i) allowing the Trustee to apply funds and make any
distributions relating to the Refunding Bonds and to
perform other necessary administrative functions;
(ii) permitting the Trustee to maintain and assert any right
to, and any charging liens it may have for, its fees,
costs, expenses, and indemnification under the Bond
Ordinance and under the Special Facilities Lease; and
(iii) continuing in effect the provisions of the Bond
Ordinance and the Special Facilities Lease that provide
Protection to the Trustee with respect to the holders of
The Refunding Bonds.
B. The Debtors may continue to store and deliver jet fuel for
their own use and for the use of other air carriers
operating at the Airport without the need to construct new
facilities and to continue operating the existing flight
kitchen at the Airport without the risk of disruption to
catering operations.
The Debtors will continue to occupy these facilities under
the terms of the Special Facilities Lease, but will no
longer be obligated to make payments of the Special
Facilities Charges, except for Current Expenses of the
Special Facilities Lease and items of a similar nature, which
include expenses incurred by the Wayne Airport Authority
related to maintenance, utilities, insurance and accounting
costs related to the premises occupied by Northwest Airlines
pursuant to the Special Facilities Lease.
The amounts will be paid by Northwest pursuant to the Special
Facilities Lease.
C. The Parties exchange mutual releases.
The Settlement Agreement, which has been executed by the Wayne
Airport Authority's Chief Executive Officer, will not become
binding on the Authority until it is approved by the Authority's
Board, Mr. Dichter says.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks. Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents. The Company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts. The Official Committee of
Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld
LLP as its bankruptcy counsel in the Debtors' chapter 11 cases.
When the Debtors filed for protection from their creditors, they
listed US$14.4 billion in total assets and US$17.9 billion in
total debts. On Feb. 15, 2007, the Debtors filed an Amended
Plan & Disclosure Statement. The hearing to consider the
adequacy of the Disclosure Statement has been scheduled for
March 26, 2007. (Northwest Airlines Bankruptcy News, Issue No.
59; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
NORTHWEST AIRLINES: Court Approves US$1.225 Bil. DIP Amendment
--------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York approves Northwest Airlines Corp. and its debtor-
affiliates' first amendment to their US$1,225,000,000 super
priority DIP and exit credit and guarantee agreement dated Aug.
21, 2006, with Citicorp USA, Inc., as administrative agent,
lender and issuing lender.
Amendment to Loan Terms
The Debtors sought amendments to the DIP/Exit Credit Agreement
from their Lenders to take advantage of current much improved
market conditions to help lower their borrowing costs.
The amendments proposed will further reduce the Debtors' cost of
borrowing funds under the DIP/Exit Credit Agreement in exchange
for, among other things, acceleration of the payment of certain
deferred fees previously authorized by the Court that would have
been due and payable upon confirmation of a plan of
reorganization under the DIP/Exit Credit Agreement, Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in
Washington D.C., explains.
In view of improved market conditions, United Airlines has
recently amended its corporate credit facility to achieve lower
borrowing costs, which reduced the applicable interest rate from
about LIBOR plus 375 basis points to LIBOR plus 200 basis
points, Mr. Ellenberg relates. In addition, United Airlines'
downsizing of their credit facility by approximately
US$1,000,000,000 as part of their refinancing should provide
some additional investor appetite in the market place that could
improve investor interest in the Debtors' credit facility,
thereby providing additional demand to help the Debtors achieve
the lowest borrowing cost for re-pricing the facility prior to
emergence from bankruptcy, Mr. Ellenberg adds.
The amendments set forth in the First Amendment will allow the
Debtors to:
(a) benefit from the original intent of the hedging lines
of credit and use -- subject to an amendment of the
intercreditor agreement entered into in connection with
the DIP/Exit Credit Agreement -- up to an additional
US$150,000,000 of the value of the collateral securing
the US$1,225,000,000 in obligations under the DIP/Exit
Credit Facility and the US$150,000,000 in pari passu
Obligations due and owing to U.S. Bank to secure fuel,
currency and interest rate hedging contracts with an
incremental dollar-for-dollar pari passu first lien on
the collateral securing the obligations to the lenders
under the DIP/Exit Credit Agreement and to U.S. Bank
without having to pay down the revolving loans
outstanding under the DIP/Exit Credit Agreement; and
(b) streamline certain administrative compliance procedures.
Subject to the satisfaction of the conditions precedent set
forth in the First Amendment, the proposed amendments to the
DIP/Exit Credit Agreement are:
Pursuant to the First Amendment, "Hedging Obligations" will be
amended to refer to all obligations and liabilities of an entity
under any Interest Rate Protection Agreement, Fuel Hedging
Agreement or Currency Exchange Rate Protection Agreement, which
are payable upon the termination of the agreement. Hedging
Obligations under Specified Hedging Agreements will be valued on
a mark-to-market basis from time to time pursuant to a
methodology agreed to among the Debtors, the applicable
counterparty, and the Administrative Agent.
"Specified Currency Exchange" will mean any Currency Exchange
Rate Protection Agreement entered into by the Debtors and any
entity that was a Lender or Lender Affiliate designated by the
relevant lender and the Debtors through a written notice to the
Administrative Agent providing for methodology agreed to by the
Debtors, Lender and the Administrative Agent of valuing on mark-
to-market basis the amount of Hedging Obligations and (ii) an
agreed upon maximum amount of Hedging Obligations.
"Specified Hedging Agreement" will mean any specified currency
exchange rate protection agreement, specified interest rate
protection agreement, or any specified fuel hedging agreement.
The Debtors agree that the aggregate amount of all Hedging
Obligations under all Specified Hedging Agreements at any time
outstanding that will be included as "Obligations" will not
exceed US$150,000,000.
The Debtors also agree to pay a fee on all outstanding Letters
of Credit at a per annum rate equal to the Applicable Rate then
in effect with respect to Eurodollar Loans, shared ratably among
the Revolving Lenders and payable quarterly in arrears on each
Letter of Credit Fee Payment Date after the issuance date.
With respect to all Letter of Credit amounts outstanding prior
to the First Amendment Date, the fee will be at a per annum rate
equal to the Applicable Rate as in effect with respect to
Eurodollar Loans prior to the First Amendment Date; with respect
to all Letter of Credit amounts outstanding on or after the
First Amendment Date, the fee will be at a per annum rate equal
to the Applicable Rate as in effect with respect to Eurodollar
Loans on or after the First Amendment Date.
The Applicable Rate with respect to Loans outstanding prior to
the First Amendment Date will be:
(i) 1.50%, in the case of ABR Loans, and
(ii) 2.50%, in the case of Eurodollar Loans.
The Applicable Rate with respect to Loans outstanding on or
after the First Amendment Date will be:
(i) 1.00%, in the case of ABR Loans, and
(ii) 2.00%, in the case of Eurodollar Loans.
Among other things, the Debtors will default under the amended
DIP/Exit Credit Facility in the event:
-- its number of Flights during any fiscal quarter using the
Pacific Routes declines by more than 25% from the number
Of Flights using the Pacific Routes during the
Corresponding quarterly period in the fiscal year ending
Dec. 31, 2004;
-- the aggregate number of Disposed Japanese Foreign Slots
plus Unavailable Japanese Foreign Slots will exceed 15% of
the Base Number of Japanese Foreign Slots; or
-- one or more rulings will be entered against the Debtors
involving a liability of US$25,000,000 or more in the case
of any one ruling, or US$50,000,000 or more in the
aggregate for all the rulings, and those rulings will not
have been vacated, discharged, satisfied or stayed or
bonded pending appeal within 60 days after the ruling is
entered.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks. Northwest and its
travel partners serve more than 900 cities in excess of 160
countries on six continents. The Company and 12 affiliates
filed for chapter 11 protection on Sept. 14, 2005 (Bankr.
S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP
in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in
their restructuring efforts. The Official Committee of
Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld
LLP as its bankruptcy counsel in the Debtors' chapter 11 cases.
When the Debtors filed for protection from their creditors, they
listed US$14.4 billion in total assets and US$17.9 billion in
total debts. On Feb. 15, 2007, the Debtors filed an Amended
Plan & Disclosure Statement. The hearing to consider the
adequacy of the Disclosure Statement has been scheduled for
March 26, 2007. (Northwest Airlines Bankruptcy News,
Issue No. 59; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SAPPORO HOLDINGS: Fund Issues Letter Opposing Defense Measures
--------------------------------------------------------------
Steel Partners Japan Strategic Fund issued a letter to
shareholders in Sapporo Holdings Ltd. urging them to vote
against Sapporo's proposed "Advance Warning System" at its
annual general meeting of shareholders on March 29, 2007.
The text of the letter follows:
March 22, 2007
To: Shareholders of Sapporo Holdings Limited (Sapporo) and
persons who are registered shareholders of Sapporo as at
Dec. 31, 2006
Voting Against Sapporo's Advance Warning System
We wrote to you on Mar. 12, 2007 about Sapporo's forthcoming
annual general meeting to be held on Mar. 29, 2007 (the AGM).
We are writing again following the letter from the Board of
Sapporo to you dated Mar. 14, 2007.
We hope that the following explanation aids your understanding
of the reasons why we are respectfully requesting that
shareholders reject the motion to approve Sapporo's proposed
advance warning system (AWS) at the AGM.
* You and we are investors in Sapporo. We, like you, want
to see the companies in which we invest be successful.
We also want shareholders to be treated fairly.
* You, as shareholders, are the owners of Sapporo.
Management itself says: "shareholders should decide
whether to approve significant purchases of the company's
shares". But the new AWS does not do that.
* The new AWS proposed by Sapporo puts management in a
position to frustrate offers being made to you, its
shareholders. Management can demand virtually any
information from an offeror and management can do
so repeatedly. After that, an offeror has to wait while
management decides if it is satisfied with the offeror's
responses. This process could take many months or
longer. In certain cases, the new AWS may preclude
interested parties from even considering making an offer
to you.
* Japanese law (which has recently been revised for this
very purpose) already provides a carefully considered and
effective framework for all relevant information an
offeror must provide, a mechanism for management to ask
for more information and the timetable for any tender
offer. Why is this not good enough for management?
* The "independent committee" set up by management does not
solve the problem. There are no directors on the
committee. Its members do not owe any duty to
shareholders and the new AWS does not allow shareholders
to hold them accountable for their actions.
* Sapporo's proposed board is dominated by insiders, whose
interests may well diverge from those of shareholders.
For example, what if one potential offeror is offering
management benefits that another potential offeror is not
offering them?
* We believe that the AWS actually damages shareholder
value because it could result in shareholders being
denied their ultimate right to sell their shares to an
offeror.
We therefore ask you to vote against Resolution No. 7 at the
AGM. Additional information on our campaign is available online
at http://www.spjkk.jp. We are confident that shareholders will
understand the reasons we disagree with management on this
matter and will exercise their votes fairly and impartially.
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.
SHIKOKU BANK: Fitch Affirms Individual Rating at "D"
----------------------------------------------------
Fitch Ratings has affirmed Shikoku Bank, Ltd.'s individual
rating and Support rating at 'D' and '3', respectively.
Shikoku's ratings reflect its relatively poor profitability and
capital quality. Credit costs have continued to put pressure on
the bank's profitability although the NPLs showed a modest
decrease for the period between March 2006 and December 2006.
Capital position has improved since March 2003 when the bank
reported a substantial net loss due to NPL write-offs.
However, there is still room to strengthen retained earnings as
its pure Tier1 ratio remains somewhat weak.
About Shikoku Bank, Ltd.
Headquartered in Kochi Prefecture, The Shikoku Bank, Ltd. --
http://www.shikokubank.co.jp/-- operates in four business
segments. The Banking segment is engaged in the provision of
general banking services for personal and corporate customers,
such as savings accounts services, fixed-deposit accounts and
foreign currency deposit accounts services, money transfer
services, securities trading services, international trade
finance services, investment services, automated teller machine
(ATM) services and other banking services. The Credit Guarantee
segment is engaged in credit guarantee-related financial
services.
The Leasing segment is engaged in the provision of leasing
services. The Others segment is involved in the provision of
real estate management, computer-relates, capital research,
venture capital-related and other financial services. The Bank
has six subsidiaries and one associated company.
XM SATELLITE: National Music Publishers' Association Files Suit
---------------------------------------------------------------
The National Music Publishers' Association has filed a lawsuit
against XM Satellite Radio for refusing to acknowledge the
rights of or pay compensation to the music publishers and
songwriters who own songs being distributed through its
unauthorized digital download service.
The suit, filed on behalf of several leading music publishers,
includes such well-known works as "Let It Be," "My Heart Will Go
On," "Me and Bobby McGee" and "Like a Prayer."
The publishers' suit, filed Thursday afternoon in federal court
in the Southern District of New York, alleges that XM engages in
massive copyright infringement through its illegal subscription
digital music download service known as "XM + MP3."
The suit was filed after months of discussions between NMPA and
XM regarding the satellite radio company's obligation to
compensate creators fairly for the songs it distributes.
"Filing a lawsuit was our last resort, but we felt that we had
no choice," NMPA President and CEO David Israelite said. "We
want new technologies to succeed, but it can't be at the expense
of the creators of music. All that we ask is that music
publishers and songwriters be fairly compensated for their
efforts."
The NMPA represents music publishers and their songwriting
partners, who are dependent on copyright protection to keep
making music. The plaintiffs in the suit are Famous Music,
Warner/Chappell, Sony/ATV and EMI music publishing entities.
The complaint seeks a maximum of US$150,000 in statutory damages
for each work infringed by XM, and lists over 175 songs as a
"small fraction" of those being illegally distributed through
the XM + MP3 service.
The music publishers allege in the lawsuit that XM operates an
unlawful download service that delivers perfect digital copies
of copyrighted recordings to its subscribers.
The XM + MP3 service allows users to record and store individual
songs on portable music players at the touch of a button,
creating extensive permanent libraries for so long as the user
remains an XM subscriber.
The service also allows subscribers to create personal playlists
and automatically record large blocks of programming from which
favorite tunes can be cherry-picked and permanently retained for
replay.
XM, which is alleged to compete with Apple's iTunes and other
legitimate download services, urges its subscribers to "Hear It,
Click It, Save It!"
"XM has been profiting at the expense of others," said Debra
Wong Yang of Gibson, Dunn & Crutcher LLP, the lead attorney on
the case and the former U.S. Attorney for Los Angeles.
"The XM + MP3 service constitutes pervasive and willful
copyright infringement to the overwhelming detriment of
copyright holders, legitimate online music services and,
ultimately, consumers."
Last year, the Recording Industry Association of America filed a
similar copyright infringement lawsuit against XM on behalf of
its record label members. Earlier this year in the RIAA suit, a
federal judge ruled against XM on its claim that the Audio Home
Recording Act gave the company immunity from following copyright
law.
In the lawsuit filed by the record labels, XM has argued that it
is just a "radio broadcaster" that does not provide download
services. But after it announced its intent to merge with one
of its main competitors, SIRIUS Satellite Radio, XM began
aggressively defending against charges that the merger would
create an unacceptable monopoly.
XM has asserted that it is in the same market as "music
subscription services, iPods, CD players and cell phones,"
making clear that its unlicensed service is designed to compete
with legitimate digital music download services and other
distributors of recorded music.
About the NMPA
Founded in 1917, the National Music Publishers' Association --
http://www.nmpa.org/-- is a trade association representing more
than 600 American music publishers. The NMPA's mandate is to
protect and advance the interests of music publishers and their
songwriter partners in matters relating to the domestic and
global protection of music copyrights.
About XM Satellite
Headquartered in Washington, D.C., XM Satellite Radio Inc.
(Nasdaq: XMSR) - http://www.xmradio.com/-- is a wholly owned
subsidiary of XM Satellite Radio Holdings Inc. XM has been
publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's
2006 lineup includes more than 170 digital channels of choice
from coast to coast: the most commercial-free music channels,
plus premier sports, talk, comedy, children's and entertainment
programming; and 21 channels of the most advanced traffic and
weather information. XM has broadcast facilities in New York
and Nashville, and additional offices in Boca Raton, Florida;
Southfield, Michigan; and Yokohama, Japan.
At June 30, 2006, XM Satellite Radio Inc.'s balance sheet showed
a stockholders' deficit of US$358,079,000, compared to a deficit
of US$362,713,000, at Dec. 31, 2005.
The Troubled Company Reporter - Asia Pacific reported on Feb 23,
2007 that Moody's Investors Service affirmed the existing debt
ratings of XM Satellite Radio Holdings, Inc. and its subsidiary
XM Satellite Radio, Inc. and changed the outlook to developing
from stable in connection with the company's Feb. 19, 2007
report that XM and SIRIUS Satellite Radio, Inc. have entered
into a definitive merger agreement.
XM SATELLITE: FCC Rules Doesn't Bar Planned Merger
--------------------------------------------------
Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.
disclosed in a joint statement filed with the United States
Securities and Exchange that Federal Communications Commission
rules doesn't bar Sirius from buying rival XM, Reuters reports.
In the statement, the two companies said that "[t]he
commission's published rules do not prohibit one satellite radio
licensee from acquiring control of the other."
"Nowhere does that rule prohibit the ability of a satellite
radio licensee to transfer or assign its license in any way,"
Reuter relates citing the two companies. "Indeed, the
commission's 1997 reference to this rule expressly recognizes
that the agency's rules contemplate and permit the filing of
this application for the transfer of control of both satellite
radio licensees to common ownership."
The statement, Reuters says, is in sharp contrast to what FCC
Chairman Kevin Martin said when the deal was first disclosed.
Mr. Martin had said that the deal faced a high hurdle because
the commission prohibited one company from holding the only two
existing satellite radio licenses.
Sirius and XM Merger
XM Satellite Radio and Sirius Satellite Radio entered into a
definitive agreement, under which the companies will be combined
in a tax-free, all-stock merger of equals with a combined
enterprise value of approximately US$13 billion, which includes
net debt of approximately US$1.6 billion.
Under the terms of the agreement, XM shareholders will receive a
fixed exchange ratio of 4.6 shares of Sirius common stock for
each share of XM they own.
XM and Sirius shareholders will each own approximately 50% of
the combined company. The combination creates a nationwide
audio entertainment provider with combined 2006 revenues of
approximately US$1.5 billion based on analysts' consensus
estimates.
The transaction is subject to approval by both companies'
shareholders, the satisfaction of customary closing conditions
and regulatory review and approvals, including antitrust
agencies and the FCC. Pending regulatory approval, the
companies expect the transaction to be completed by the end of
2007.
About SIRIUS Satellite Radio
New York-based SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) --
http://www.sirius.com/-- delivers more than 125 channels of the
best programming in all of radio. SIRIUS is the original and
only home of 100% commercial free music channels in satellite
radio, offering 69 music channels available nationwide. SIRIUS
also delivers 65 channels of sports, news, talk, entertainment,
traffic, weather, and data. SIRIUS is the Official Satellite
Radio Partner and broadcasts live play-by-play games of the NFL,
NBA, and NHL and. All SIRIUS programming is available for a
monthly subscription fee of only US$12.95.
SIRIUS products for the car, truck, home, RV, and boat are
available in more than 25,000 retail locations, including Best
Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's
Club, RadioShack, and at http://shop.sirius.com/
SIRIUS radios are offered in vehicles from Audi, BMW, Chrysler,
Dodge, Ford, Infiniti, Jaguar, Jeep(R), Land Rover, Lexus,
Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Rolls
Royce, Scion, Toyota, Porsche, Volkswagen and Volvo. Hertz also
offers SIRIUS in its rental cars at major locations around the
country.
About XM Satellite
Headquartered in Washington, D.C., XM Satellite Radio Inc.
(Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned
subsidiary of XM Satellite Radio Holdings Inc. XM has been
publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's
2006 lineup includes more than 170 digital channels of choice
from coast to coast: the most commercial-free music channels,
plus premier sports, talk, comedy, children's and entertainment
programming; and 21 channels of the most advanced traffic and
weather information. XM has broadcast facilities in New York
and Nashville, and additional offices in Boca Raton, Florida;
Southfield, Michigan; and Yokohama, Japan.
At June 30, 2006, XM Satellite Radio Inc.'s balance sheet showed
a stockholders' deficit of US$358,079,000, compared to a deficit
of US$362,713,000, at Dec. 31, 2005.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 23, 2007, that Moody's Investors Service affirmed the
existing debt ratings of XM Satellite Radio Holdings, Inc. and
its subsidiary XM Satellite Radio, Inc. and changed the outlook
to developing from stable in connection with the company's
Feb. 19, 2007 report that XM and SIRIUS Satellite Radio, Inc.
have entered into a definitive merger agreement.
YAMANASHI CHUO: Fitch Affirms Individual Rating at "C"
------------------------------------------------------
Fitch Ratings has affirmed the ratings of Yamanashi Chuo Bank,
Ltd. as follows:
-- Long-term foreign and local currency Issuer Default
Ratings at 'A-',
-- Short-term foreign and local currency IDRs at 'F1',
-- Individual rating at 'C' and
-- Support rating at '2'.
The rating Outlook is Stable. Support rating floor is 'BBB-'.
Yamanashi Chuo's ratings reflect its steady profitability and
relatively good capital position. Although an increase in
interest revenues has been rather slow despite the constant
growth in average loan balance, securities investment and
commission revenues have underpinned the bank's top-line
profitability.
As for the asset quality, gross RML to total loan ratio remained
slightly higher than the regional banks' average. However,
outstanding RMLs decreased by 25% from the recent peak level at
end-March 2003 while credit costs have been well covered by
operating profit.
About Yamanashi Chuo Bank
Headquartered in Yamanashi Prefecture, The Yamanashi Chuo Bank,
Ltd. -- http://www.yamanashibank.co.jp/-- is a regional bank
based in Yamanashi Prefecture, Japan. The Bank offers
individual and corporate customers a wide range of banking
services, including the leasing and credit card business.
Through its main office, the Bank provides deposit, loan,
trading of securities, investment securities, domestic and
foreign exchange services and underwriting of bonds.
In addition, it is involved in the sale of government bonds and
investment trust.
Through its subsidiaries, the bank is engaged in the guarantee
trust, leasing and credit card business to offer comprehensive
financial services. Its credit card business includes venture
capital investment and consulting services. The Bank is
comprised of five consolidated subsidiaries.
=========
K O R E A
=========
SHINHAN BANK: To Manage National Pension Service's Funds
--------------------------------------------------------
The National Pension Service, South Korea's largest pension
service provider, has picked Shinhan Bank as its financial
partner to manage its funds worth some KRW200 trillion until
2012, The Korea Times reports.
According to the report, Shinhan will exclusively provide
banking services for NPS and can use its funds for investment
purposes after business hours. Shinhan will offer an interest
rate of 4.4% on the NPS funds.
As NPS' financial partner, Shinhan is expected to be in a
stronger position to compete with rival banks to attract pension
funds, The Korea Times says, adding that the NPS has a reserve
of some KRW182 trillion and collects up to KRW20 trillion of
fresh funds annually.
"Managing the NPS funds means we can use an additional
KRW250 billion in funds every day," the report cites a Shinhan
official as saying. "We can use the NPS funds for investments
in bonds, stocks and lending services."
Since 1991, SC First Bank had managed NPS funds, but the
contract ended early this year, The Korea Times relates. Last
year, Kookmin Bank was picked as a preferred bidder in a bid for
the funds late last year, but NPS canceled the deal due to
differences over costs for electronic banking systems, the paper
recounts.
The Korea Times reveals that Shinhan had a deposit reserve of
KRW105 trillion as of the end of February, while its rival Woori
Bank has KRW101 trillion. The gap is expected to widen when
Shinhan begins managing the NPS funds, the paper notes, citing
Shinhan officials.
About Shinhan Bank
Headquartered in Taepyeong-no, Seoul, Shinhan Bank --
http://www.shinhan.com/-- was established in 1982 with capital
from Korean residents in Japan. It is Korea's fourth largest
bank by assets -- second largest after merging with Chohung Bank
-- holding a 9% share of deposits and 11% of loans. The bank
has developed a strong franchise in the consumer as well as
small and medium-sized enterprise segments. In September 2001,
it formed a holding company, Shinhan Financial Group, under
which it and five other affiliates became stable companies.
Since then, the Shinhan Financial Group has expanded its
organizational structure to include 11 subsidiaries and is now
Korea's second largest financial group.
* * *
The Troubled Company Reporter - Asia Pacific reported on
March 16, 2006, that Moody's Investors Service raised Shinhan
Bank's Bank Financial Strength Rating to D+ from D. The revised
rating carries a stable outlook. The higher BFSR reflects the
bank's sustained financial fundamentals upon its merger with
affiliate Chohung Bank.
SK CORP: To Spend KRW560 Billion on a Peruvian Gas Project
----------------------------------------------------------
SK Corp. said that it plans to spend a total of KRW560 billion
(US$592 million) over the next five years on a Peruvian project
that liquifies and exports natural gas, Yonhap News reports.
Citing the company's regulatory filing, the report says that SK
Corp. will invest the amount in building a gas pipeline and a
gas-liquefying plant, as well join a gas export business in
Peru.
Construction of the gas-liquefying plant will start by 2010.
According to SK Corp, it will spend about KRW250 billion on the
project for the first year, The Korea Times relates, noting that
with the expenditure, the company will have a 30% stake in Peru
LNG Co.
Peru LNG leads the project, the report says.
Headquartered in Seoul, South Korea, SK Corp. --
http://eng.skcorp.com/-- is an energy and petrochemical company
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina. SK Corp.
currently explores, develops and produces oil in 13 nations,
including Peru, London and the United States.
The Troubled Company Reporter - Asia Pacific reported that on
Feb. 20, 2006, Moody's Investors Service has placed on review
for possible upgrade the Ba1 long-term rating of SK Corp.
WOORI BANK: Appoints Park Hae-choon as President
------------------------------------------------
On March 21, 2007, LG Card President Park Hae-choon was
appointed as president of Woori Bank, The Korea Times relates,
citing a statement from the bank.
The Korea Times says that Mr. Park was appointed through a "fair
and transparent" process.
However, unionists at Woori Bank protested Mr. Park's
appointment, calling him a "puppet of the government," Na Jeong-
ju writes for The Korea Times.
According to a union official, they will vote and decide on
whether to go on strike, the paper relates.
Rumors say that the government favors Mr. Park because of his
achievement as the head of the country's largest credit card
firm.
Mr. Park is expected to push for the privatization of Woori in
close cooperation with Woori's largest shareholder, the Korea
Deposit Insurance Corp., a state-owned deposit insurer, the
paper says.
Under Mr. Park's leadership, LG Card completed restructuring
programs to reduce its default risks and turned itself into a
stable card issuer with a client base of some 10 million, The
Korea Times notes.
Woori Bank -- http://www.wooribank.com/-- is a government-owned
bank headquartered in Seoul, Korea. The bank was established in
2002, and includes the former Hanbit Bank, Sangup Bank and Hanil
Bank. It is a part of the Woori Financial Group. It has
branches all over the world, including in New York, Los Angeles,
Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore,
Moscow, London, and Dhaka.
Moody's Investors Service gave Woori a 'D+' Bank Financial
Strength Rating effective March 14, 2006.
* Korea's Fiscal Deficit Reaches KRW10.8 Trillion in 2006
---------------------------------------------------------
Korea's fiscal deficit has deepened for three years in a row,
reaching KRW10.8 trillion (US$11.5 billion) in 2006, The Korea
Herald says, citing a report from the Finance Ministry.
The Korea Times report relates that the 2006 figure turned out
to be less than the Finance Ministry's earlier projection of
KRW14 trillion when budget plans were revised to add the
spending in restoration of homes and infrastructure damaged by
the flood last summer.
"The size of the deficit expanded as the government focused on
backing an economic recovery and tackled market risk factors
such as the North Korean nuclear crisis last year. But the
adjusted fiscal deficit accounts for only 1.3% of the national
output, so Korea can handle this," The Korea Times cites Kim
Hyung-soo, director of fiscal planning at the Finance Ministry,
as saying.
According to the paper, the "adjusted fiscal balance" indicates
the overall state of government finances. It is consolidated
fiscal balance minus the surplus in social security funds plus
repaid public funds.
The paper recounts that after posting a surplus of KRW1 trillion
in 2003, the adjusted fiscal balance fell further into the red
from minus KRW4 trillion in 2004 to minus KRW8.1 trillion in
2005.
However, Korea's consolidated fiscal balance was in the black,
gaining a surplus of KRW100 billion to KRW3.6 trillion last
year, The Korea Times relates.
The government has collected a total of KRW209.6 trillion in tax
revenue and other income from selling off assets last year, The
Korea Times reveals, noting that KRW205.9 trillion was spent.
===============
M A L A Y S I A
===============
MALAYSIA AIRLINES: Seeks New Aircrafts for Route Expansion Plan
---------------------------------------------------------------
Malaysian Airline Systems is considering acquiring long-range
narrow body aircraft to service its new routes, various reports
say, citing the airline's managing director and chief executive
officer, Idris Jala.
Speaking to reporters at Invest Malaysia 2007, Mr. Jala said
that the new aircrafts are needed to ply its new routes where
the A330s are too large and the Boeing 737-400s do not have the
range.
Funds for the acquisition will come from part of the proceeds of
the airline's recent MYR1.5 billion rights issue and redeemable
convertible preference shares, Mr. Jala added.
According to Mr. Jala, the flag carrier is now in talks with
Airbus and Boeing, but has yet to decide on the type of aircraft
to be bought.
The new aircrafts will be used on realizing Malaysian Airlines'
five-year plan to capitalize on high growth travel regions
through a more connected network.
Malaysian Airlines plan emphasizes on expanding its core network
in Asia Pacific while strengthening its hub and spoke
connectivity in Europe, Australia and New Zealand.
* * *
Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.
The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes. In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007. Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.
MYCOM BERHAD: Extends Completion of Assets Purchase to Sept. 11
---------------------------------------------------------------
Mycom Bhd has entered into an agreement extending the period
within which it must fulfill the conditions to an assets
acquisition pact with Olympia Industries Berhad, originally
inked on Aug. 14, 2000.
According to Mycom's disclosure with the Bursa Malaysia
Securities Bhd, the completion date for the assets acquisition
is extended until Sept. 11, 2007.
The acquisition agreement states that Mycom will acquire these
assets from Olympia Industries and its subsidiaries:
* 100% equity interest in Olympia Land Berhad;
* 100% equity interest in City Properties Development Sdn
Bhd;
* 100% equity interest in Olympia Plaza Sdn Bhd;
* 100% equity interest in Rambai Realty Sdn Bhd;
* 70% equity interest in Maswarna Colour Coatings Sdn Bhd;
* 100% equity interest in Salhalfa Sdn Berhad;
* 100% equity interest in Mascon Construction Sdn Bhd;
together with
* a four-storey shop office situated at Taman Shamelin
Perkasa, Kuala Lumpur;
* a factory unit situated at Beranang Industrial Estate,
Selangor; and
* a five-acre land situated at District of Kota Kinabalu,
Sabah.
Mycom agreed to pay a total of MYR56,377,660 for the Olympia
assets.
* * *
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
1MYR1.34 billion, resulting to a shareholders' deficit of
MYR528.84 million.
PSC INDUSTRIES: SC Okays Restructuring Plan and Assets Disposal
---------------------------------------------------------------
On March 19, 2007, Malaysia's Securities Commission approved PSC
Industries Bhd's proposed restructuring plan and proposed
disposal of a unit's assets.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 26, 2006, that PSC Industries filed with the Bursa Malaysia
Securities Bhd a restructuring scheme, pursuant to which the
company proposes to implement:
-- a capital reconstruction comprising the Proposed Share
Capital Reduction, Proposed Share Capital Consolidation
and Proposed Share Premium Account Reduction;
-- settlement of liabilities due and owing by PSCI and Penang
Shipbuilding & Construction Sdn Bhd to their respective
creditors; and
-- a renounceable rights issue of new ordinary shares of
MYR1.00 each in PSCI.
In addition, the TCR-AP reported on Nov. 8, 2006, that PSC
Industries' wholly owned subsidiary, PSC Asset Holdings Sdn Bhd,
had entered into a conditional sale and purchase agreement with
Boustead Holdings Berhad to dispose three pieces of land held
under:
-- Geran No. 27123 Lot No. 1199;
-- Geran No. 27124 Lot No. 1197; and
-- Geran No. 27125 Lot No. 1198, Section 13, all in Town of
Georgetown, State of Pulau Pinang measuring approximately
71,817 square feet together with a building known as
Menara PSCI, for a cash consideration of MYR54 million,
which will be satisfied through:
(i) a deposit and part payment of MYR5,400,000, which
will be paid by Boustead Holdings upon the execution
of the sale and purchase agreement; and
(ii) the payment of remaining balance of MYR48,600,000 by
Boustead Holdings to a stakeholder within 30 days
from the date of receipt of the approvals required or
six months from the date of the Sale and Purchase
Agreement.
The capital gained from the assets disposal will be utilized for
repayment of the company's bank borrowings.
* * *
PSC Industries Berhad's principal activities are shipbuilding
and ship repairing. It is also involved in heavy engineering
construction, provision of shipping management services,
manufacturing of aluminum fast passenger sea ferries, supplies
equipment and machineries, marketing and distributing Exocet
Weapon system, manufacturing of confectioneries, snack food and
related products, general trading, power plant construction and
its support activities, printing, property development, and
property and investment holding. The PSC Group operates in
Malaysia, Australia and the Republic of Ghana.
The Company is currently formulating a regularization plan
pursuant to Practice Note 17/2005 of the Bursa Malaysia
Securities Berhad's Listing Requirements.
PSC Industries' unaudited balance sheet as of Dec. 31, 2006,
showed solvency problems with total assets of MYR204.43 million
and total liabilities of MYR741.71 million, resulting to a
shareholders' deficit of MYR537.28 million.
=====================
N E W Z E A L A N D
=====================
PLUS SMS: CRE8 Acquires Brazilian Content Provider
--------------------------------------------------
On March 22, 2007, CRE8 disclosed the acquisition of Mobile
Development Limitada, a company that specializes in the
production and distribution of content services to mobile
operators and corporations in Brazil.
Based in Florianopolis with offices in Sao Paolo and Rio de
Janeiro, MDEV is focused on the creation and distribution of
mobile entertainment, employing some 40 people.
MDEV is a recognized industry leader in the development, testing
and distribution of Java, Symbian and BREW games and a trusted
business partner of Vivo (Telefonica), Brasil Telecom, Claro
(America Movil), Oi, Telemig Cel and Teleamazon Cel for the
management of mobile content.
In addition to its content offering, MDEV has been selected by
one of the world's leading software corporations to rollout
mobile interactive services throughout Latin America.
Additional information regarding this partnership will be
released to the market in the coming months.
Brazil is a significant emerging market ranking as the fifth
largest country in the world by size and population, and has
over 100 million mobile subscribers. The acquisition of MDEV is
a key step in company's service evolution, extending CRE8's
capabilities, content portfolio and reach throughout Latin
America.
Under the terms of the agreement, MDEV will operate as a wholly
owned subsidiary of CRE8, with CRE8 acquiring all of the equity
in return for cash and share consideration. The acquisition is
expected to have a positive material impact to CRE8's revenue
and earnings.
According to CRE8's Chief Executive Officer Christopher Tiensch,
"through this acquisition, we will deliver enormous long term
value to our shareholders by creating a business that is
uniquely positioned to provide customers with the ability to
reach over 200 million mobile subscribers throughout Latin
America."
"The acquisition of MDEV represents an important continuation of
CRE8's successful expansion into Latin America and will allow us
to be even more effective in delivering high quality, leading
edge solutions into the hands of satisfied customers," Nicolas
Barrera Rios, CRE8's General Manager in Latin America said.
About CRE8
CRE8 (NZAX: PLS) is a subsidiary company of Plus SMS Holdings
Limited. CRE8 is a provider of content, connectivity, and
network services for mobile operators, brands and media
companies worldwide.
About Plus SMS
Plus SMS Holdings Ltd. -- http://www.cre-eight.com/-- is the
parent company of Plus SMS Limited. It provides access to
businesses to the number ranges required for the routing of
short message service (SMS) and multimedia messaging system
(MMS) messages worldwide using a single short number. On July
4, 2005, Plus SMS Limited acquired Plus SMS Holdings Limited in
a reverse acquisition.
The company suffered net losses of NZ$366,000 and NZ$362,000 for
the years ended March 31, 2006, and 2005, respectively.
WOOL EQUITIES: Appoints Elizabeth Hopkings as CEO
-------------------------------------------------
Elizabeth Hopkins has been appointed as chief executive officer
of Wool Equities Limited.
Ms. Hopkins is currently CEO of ENCOATE Ltd, and from 2001 to
2003 was Chief Development Officer, NEURONZ Ltd.
According to Wool Equities Chairman Dr. Andy Pearce, "Elizabeth
has an outstanding background and experience to lead the
development and growth of our investments in Keratec and Orico."
Prior to coming to New Zealand in 2001, Elizabeth was Global
Project Manager - Early Development at PFIZER, the world's
largest pharmaceutical company, based in the UK, where she was
responsible for leading major development projects through Phase
I and Phase II clinical trials. She also spent 8 years in drug
discovery projects in Pfizer culminating in her leadership of a
Pharmacology Team within Pfizer's Neurology Group.
In addition to her experience in a major multi-national drug
company, Elizabeth has successfully transitioned into two start-
up companies in New Zealand, playing key leadership roles
through out the phases of establishment, capital raising,
intellectual property generation and product launch. She also
has extensive experience in the Agri-Biotech sector gained
whilst working as CEO of EnCoate, an AgResearch/Ballance
AgriNutrients Joint Venture.
Wellington, New Zealand-based Wool Equities Ltd. --
http://www.woolequities.co.nz/-- is a technology investment
company, with shareholdings in a diverse range of companies,
focusing in the biotech sector. The companies include Karatec
Limited, which is a manufacturing, marketing/distribution and
technology licensing business extracting high-value protein
fractions used for applications in personal care, consumer
health and medical materials; Canesis Networks Limited, which is
engaged in wool science and textile technology; Orico Limited,
and Paracco Limited. From June 30, 2006, Covita Limited was a
subsidiary of the company.
The group suffered net losses of NZ$3,571,000 and NZ$7,996,000
for the years ended June 30, 2006, and 2005, respectively
(parent: NZ$2,852,000 and NZ$5,942,000).
=====================
P H I L I P P I N E S
=====================
BANK OF THE PHIL. ISLANDS: FSA Partially Approves London Branch
---------------------------------------------------------------
British regulator Financial Services Authority has approved in
principal the Bank of the Philippine Islands' application to
establish a wholly owned banking subsidiary in London, the bank
informs the Philippine Stock Exchange in a regulatory filing.
BPI reportedly wants to venture into London to get a bigger
share of the lucrative overseas Filipino workers' remittance
business in the European market. This is the bank's first foray
in Europe.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 12, 2006, BPI has received the approval of the Bangko
Sentral ng Pilipinas' policy-making Monetary Board to establish
the London subsidiary.
The subsidiary will be called BPI Europe, the TCR-AP reported,
citing BSP Deputy Governor Nestor Espenilla Jr.
According to the PSE filing, the FSA's approval is still subject
to the bank's submission of evidence of capitalization and a
required document.
Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is
the oldest bank in South East Asia and is the second largest
commercial bank in the Philippines in terms of assets, deposits,
loans and capital base in the year 2003. The Bank has two major
products and services categories: the first covers its deposit
taking and lending/investment activities, while the second
covers income derived from all services other than deposit
taking, lending and investing, which are generally in the form
of commissions, service charges and fees.
The Troubled Company Reporter - Asia Pacific reported that on
Nov. 2, 2006, Moody's Investors Service revised the outlook of
the Bank of the Philippine Islands' foreign currency long-term
deposit rating of B1 to stable from negative. The outlook for
BPI's foreign currency Not-Prime short-term deposit rating and
bank financial strength rating of C- remains stable.
CHIQUITA: Moody's Says Plea Agreement Won't Affect Ratings Yet
--------------------------------------------------------------
Moody's Investors Service related that the March 19, 2007,
approval and acceptance by the U.S. District Court for the
District of Columbia of the March 14 plea agreement entered by
Chiquita Brands International, Inc. has not at this point had
any impact on the company's ratings. The rating outlook remains
stable.
As previously disclosed, in April 2003 Chiquita voluntarily
disclosed to the U.S. Department of Justice that its former
banana-producing subsidiary in Colombia, which was sold in June
2004, had made payments to right- and left-wing paramilitary
groups to protect the lives of its employees. The company's
disclosure was made shortly after its senior management became
aware that the paramilitary group had been designated as foreign
terrorist organizations under a U.S. stature that forbids
payments to such organizations. In the fourth quarter of 2006,
Chiquita recorded a charge of US$25 million to reflect liability
for payment of a proposed financial sanction contained in the
company's offer of settlement to the Justice Department. Court
approval for the plea agreement and the payment of the US$25
million in five annual installments with interest was received
on March 19. The first US$5 million principal will be paid upon
formal sentencing, currently scheduled for June 1, 2007.
As part of its ongoing monitoring of Chiquita, Moody's will
remain close to the situation, especially in regards to the
company's ability to fund its annual payments. Should there be
negative repercussions to the business of Chiquita or its
ability to operate in any markets as a consequence of its plea,
Moody's would consider negative rating action.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
* * *
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
CHIQUITA BRANDS: Media Group Analyzing CEO's Tie in Gov't. Probe
----------------------------------------------------------------
Sun-Times Media Group Inc. told the Associated Press that its
board will study the potential effect on its President and Chief
Executive Officer Cyrus F. Freidhim Jr.'s involvement in a
government probe on Chiquita Brands International Inc.
AP relates that Mr. Freidheim was chief executive officer at
Chiquita Brands from 2002 to 2004.
As reported in the Troubled Company Reporter - Asia Pacific on
March 16, 2007, Chiquita Brands entered into a plea agreement
with the United States Attorney's Office for the District of
Colombia and the National Security Division of the U.S.
Department of Justice relating to the previously disclosed
investigation by the government into payments made by the
company's former banana-producing subsidiary in Colombia to
certain groups designated under U.S. law as foreign terrorist
organizations. Chiquita Brands voluntarily disclosed the
payments to the government in April 2003. Under the terms of
the agreement, the company will plead guilty to one count of
Engaging in Transactions with a Specially-Designated Global
Terrorist, and will pay a fine of US$25 million, payable in five
equal annual installments, with interest. The company said it
would continue to cooperate with the government in any
continuing investigation into the matter.
Sun-Times Media said in a filing with the Securities and
Exchange Commission that Mr. Freidheim informed the company that
he has not been advised that he is a target of the US government
investigation. However, he said that should the probe continue,
he would be part of a group of current and former Chiquita
Brands workers that would undergo investigation.
The board will conduct further inquiry into the matter as it may
affect the firm, Sun-Times Media told AP.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
PHIL. LONG DISTANCE: Sale to First Pacific Questioned
-----------------------------------------------------
The PHP25.2-billion sale of Philippine Long Distance Telephone
Co.'s shares to First Pacific had violated the Philippine
constitution, PLDT stockholder Wilson Gamboa complains.
As reported in the Troubled Company Reporter - Asia Pacific on
March 2, 2007, First Pacific completed the acquisition of 46%
stake in Philippine Telecommunications Investment Corp., which
translates to approximately 6.4% of PLDT's issued common share
capital. The transaction raised First Pacific's interest in
PLDT from 23% to approximately 29%.
First Pacific is a Hong Kong-based investment and management
company with operations located in Southeast Asia. Its
principal business interests relate to telecommunications and
consumer food products.
Stockholder Seeks TRO
Mr. Gamboa asserts that the sale violated the constitutional
provision that limits foreign ownership of a local public
utility like PLDT. Hence, Mr. Gamboa filed a petition asking
the Philippine Supreme Court to issue a temporary restraining
order to stop the sale.
According to The Manila Times, the respondents named in the
petition include:
1. Finance Secretary Margarito Teves, chairman of the
Privatization Council;
2. First Pacific Chairman Anthoni Salim;
3. Manuel Pangilinan, chairman of PLDT;
4. PLDT Ppresident Napoleon Nazareno;
5. Finance Undersecretary John Sevilla;
6. Presidential Commission on Good Government Commissioner
Ricardo Abcede;
7. Securities and Exchange Commission Chairman Fe Barin; and
8. Philippine Stock Exchange President Francis Lim.
Mr. Gamboa points out that Section 11, Article 12 of the 1987
Constitution mandated a maximum allowable limit of 40% capital
of a public utility company like PLDT, The Times says. After
First Pacific sale, foreigners would own 149,358,188 common
shares or 81.47% of PLDT's 180,789,003 total common shares, he
argued.
The local daily says that PLDT Director Rey Espinosa believes
that the 40% cap applies to a combination of common and
preferred-or nonvoting-stocks. Mr. Espinosa cited a Security
and Exchange Commission finding, which shows PLDT has met the
required 60-percent Filipino equity for a corporation.
Court Issues Status Quo Order
However, instead of a TRO, the high court issued a status quo
order, Philip M. Lustre Jr. of the Manila Standard Today
reported on March 22.
The Supreme Court made the decision during its regular en banc
session on March 6, but the copy of the order came out only on
March 14, Mr. Lustre relates.
According to the Manila Standard report, unnamed lawyer friends
said that a status quo order is "a far more exacting animal than
a TRO."
"While a TRO is good for 20 to 60 days depending on the court
giving the order, an status quo order has an indefinite
duration," the news agency states. "In short, nothing moves
while the case undergoes litigation."
About PLDT
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is a national
telecommunications service provider. Through three principal
business groups -- wireless, fixed line, and information and
communications technology -- the company offers a wide range of
telecommunications services to over 22 million subscribers in
the Philippines across the nation's most extensive fiber optic
backbone and fixed line, cellular and satellite networks.
* * *
On Nov. 3, 2006, Moody's Investors Service affirmed PLDT's Ba2
senior unsecured foreign currency rating and changed its outlook
to stable from negative. The Ba2/stable rating is above the
Philippines' foreign currency country ceiling of Ba3/stable,
Moody's notes. According to the agency, the foreign currency
senior unsecured debt rating incorporates convertibility risk,
which is the likelihood of the government declaring a debt
moratorium to counter a foreign currency crisis.
Moody's views foreign currency bonds subject to international
law as less likely to be subject to a debt moratorium than
foreign currency obligations subject to local law. Therefore, a
differential exists between PLDT's foreign currency bond rating
and the sovereign rating.
As such, PLDT's foreign currency bond rating is a function of
its own risk of default and the probability of a Philippine
government default on its foreign debt (implied by its B1
rating), the likelihood that the government would declare a
moratorium in the event of a default (implied by the Ba3 foreign
currency ceiling) and, if it did, the chances that it would
exempt a company such as PLDT.
* Philippines Cuts Interest Payments by PHP10BB in Two Months
-------------------------------------------------------------
The Philippines' interest payments went down by close to
PHP10 billion in the first two months of 2007 due to lower
interest rates and the continued strengthening of its currency
against the United States dollar, the Manila Standard Today
reports, citing data from the country's Bureau of Treasury.
The country reduced its interest payments by 14.5% to
PHP58.8 billion in January to February 2007, from
PHP68.7 billion in the same period last year.
"Interest payments accounted for about 32.5% of the total
P180.9-billion government expenditures during the first two
months of the year," the newspaper notes. This was lower than
the 38.75% share of interest payments in the total spending or
P177.3 billion in the same period in 2006, saving the government
more than PHP3 billion during the first two months this year.
* * *
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Jan. 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
BB+/Stable/B) proposed US$1.0 billion global bond issue maturing
in 2032.
On Nov. 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.
The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.
=================
S I N G A P O R E
=================
COMPACT METAL: Raises SGD4.4 Million in Rights Issue
----------------------------------------------------
Compact Metal Industries Limited has received approximately
SGD4.4 million in rights issue proceeds.
The company has utilized the proceeds from the Rights Issue in
this manner:
* payment of approximately SGD0.2 million for Rights Issue's
expenses;
* payment of approximately SGD0.6 million as down-payment for
the construction of a new paint line and an extrusion press
line; and
* approximately SGD3.6 million has been utilized for working
capital purposes such as buying of aluminum billets and
operational costs.
About Compact Metal
Headquartered in Singapore, with offices in Malaysia, Compact
Metal Industries Limited manufactures, fabricates, and sells
aluminum windows and doors, aluminum sections, and other metal
products. The company also manufactures and sells bricks,
undertakes aluminum architectural contracts and engineering
works, and sub-contracts building projects. Its other
activities include trading aluminium and related products, and
hotel ownership and others.
As reported by the Troubled Company Reporter - Asia Pacific on
Aug. 10, 2006, auditors KPMG raised significant doubt on Compact
etal's ability to continue as a going concern, citing reasons
that include:
i. the group's and company's current liabilities that
exceeded their current assets by SGD81.96 million and
SGD78.82 million, respectively, as of December 31, 2005;
ii. the group's and company's recorded net liabilities
attributable to equity holders of the parent of
SGD43.10 million and US$43.83 million, respectively, as
of December 31, 2005; and
iii. the group's recorded recurring losses with net losses
attributable to equity holders of the parent of
US$24.09 million for the year ended Dec. 31, 2005.
LINDETEVES-JACOBERG LTD: Chief Financial Officer Resigns
--------------------------------------------------------
Lindeteves-Jacoberg Limited's board of directors disclosed that
Low Hui Hua had tendered her resignation as chief financial
officer of the company. Ms. Low will continue in her role as
CFO until end May 2007 so as to effect a smooth transition and
handover of her duties to her successor.
The company will start to search and identify a new CFO and an
announcement will be made as soon as possible.
The board wishes to express their appreciation to Ms. Low for
her contribution and efforts and wishes her success in her
future endeavors.
About Lindeteves-Jacoberg
Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group. Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The company is currently working out further debt restructuring
plans for its liabilities, in addition to an earlier approved
Scheme of Arrangement with its creditors.
The TCR-AP reported on Nov. 10, 2006, that the company has total
assets of US$225.52 million and US$53.23 million equity deficit
as of Nov. 9, 2006.
LINDETEVES-JACOBERG LTD: Appoints Manfred Engel as CEO
------------------------------------------------------
Lindeteves-Jacoberg Limited has named Manfred Engel as its new
chief executive officer, effective March 1, 2007.
Mr. Manfred will be responsible for the overall performance of
the LJ Group with focus on increased sales, management of cost
and enhanced synergies across the Group.
Mr. Manfred has 10 years working experienced before appointed in
this post. He was formerly the Vice President and Member of the
Management Team of ABB Environmental Systems Zurich, Suisse. He
was also General Manager of Purchasing and Logistics, HOCHTIEF
International Essen, Germany. Formerly the Vice President of
HOCHTIEF AG Material and Logistics Essen, Germany, General
Manager and Consultant Large Projects Herzog International AG
Zurich, Suisse.
About Lindeteves-Jacoberg
Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group. Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The company is currently working out further debt restructuring
plans for its liabilities, in addition to an earlier approved
Scheme of Arrangement with its creditors.
The TCR-AP reported on Nov. 10, 2006, that the company has total
assets of US$225.52 million and US$53.23 million equity deficit
as of Nov. 9, 2006.
OPALTREE SYSTEMS: Liquidation Petition Hearing Set on March 30
--------------------------------------------------------------
A petition to liquidate the business of Opaltree Systems
(Singapore) Pte Ltd., was filed by CRICT Research & Consulting
Pte Ltd., on Feb. 17, 2007.
The petition will be heard before the High Court of Singapore on
March 30, 2007, at 10:00 a.m.
CIRCT Research's solicitors are:
Kelvin Chia Partnership
6 Temasek Boulevard
#29-00 Suntec Tower Four
Singapore 038986
PETROLEO BRASILEIRO: Argentine Energy Prices Impede Investment
--------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA told
Reuters that energy prices in Argentina hamper investment in the
sector, as they don't reflect scarcity of products like oil
derivatives and natural gas.
Reuters relates that Petroleo Brasileiro Chief Executive Jose
Sergio Gabrielli called for changes in Argentina's pricing
system.
The Argentine government has "de facto" control over energy
prices, the report says.
According to Reuters, most of Petroleo Brasileiro's foreign
production comes from Argentina, where it is actively operating
Petrobras Energia after acquiring Perez Companc in 2003.
Mr. Gabrielli told Reuters, "We believe that the price system is
not a system that could stimulate much investment. We believe
that there is a need for some changes in the sector, especially
in the area of derivatives and also natural gas so that they can
convey more adequately signals of relative scarcity of these
products."
Petroleo Brasileiro was worried on the decreasing oil and
natural gas reserves in Argentina, which called for additional
investment, Reuters notes, citing Mr. Gabrielli.
Energy analysts confirmed to Reuters the shortage of gas and
electricity in Argentina, as supply didn't rise as much as the
robust economic growth of the past few years.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Aims to Lead LatAm Energy Sector by 2015
-------------------------------------------------------------
Brazil's state-owned oil firm Petroleo Brasileiro SA Chief
Executive Officer Jose Gabrielli told news magazine Carta
Capital that the company aims to become the leading energy firm
in Latin America by 2015.
Mr. Gabrielli told Business News Americas that Petroleo
Brasileiro is competing against Venezuelan counterpart Petroleos
de Venezuela and Mexican counterpart Pemex.
BNamericas relates that Petroleo Brasileiro wants to boost
output at home and abroad to over 4.5 million barrels of oil
equivalent per day by 2015 from the current 2 million barrels of
oil equivalent per day.
Petroleo Brasileiro's corporate governance is solid, BNamericas
notes, citing Mr. Gabrielli. He said that no government does
whatever it wants with Petroleo Brasileiro, as the company is
separate from the government. It has its own budget. The board
members, except for the chairperson, are chosen at a
shareholders' assembly and subject to rules of securities
regulator Comissao de Valores Mobiliarios.
Mr. Gabrielli reiterated to Carta Capital Petroleo Brasileiro's
strategy to:
-- continue expanding domestic oil and gas output,
-- expand the gas pipeline network to 10,000 kilometers
from 6,000 kilometers, and
-- increase the firm's fleet renewal program to 42 new
ships by 2011.
According to BNamericas, Mr. Gabrielli also played down the
effect of recent changes in Bolivia and a new accord reached on
imported gas prices.
"Bolivia is seen by the market as a very small thing for
Petrobras [Petroleo Brasileiro]. Bolivia is important to Brazil
because 50% of the gas [Brazilians] consume comes from there,"
Mr. Gabrielli told BNamericas.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Loses 188,000 Barrels Due to Labor Strike
--------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has lost 188,000 barrels of
oil after production has stopped due to labor strikes in
Ecuador's Orellana province in the Amazon, Business News
Americas reports.
The workers, with close residence in Petrobras' block 18 in the
Amazon region, alleged that the company ignored their demands to
raise salaries and limit environmental damage.
BNamericas states that the government of Ecuador failed to end
the protests. The government owned more than 50% of the lost
production.
Reports show that Petrobras has been complying with community
investment plans approved by the local authorities.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
VALEANT PHARMA: Peter Blott Replaces Bary Bailey as CFO
-------------------------------------------------------
Valeant Pharmaceuticals International reported the resignation
of its chief financial officer, Bary G. Bailey. Mr. Bailey
joined the company in 2002 to work on its restructuring after
the removal of the former management team. Consistent with
succession planning discussions with the board of directors,
Peter J. Blott, ACA, the company's group financial controller,
has been appointed chief financial officer. Mr. Bailey will
remain with the company through May 31, 2007, to assist with
transition matters.
Timothy C. Tyson, president and chief executive officer, said,
"On behalf of the board of directors and the Valeant management
team, I want to thank Bary for his outstanding contributions to
the company over the past four years. He has guided us through
some very complex financial issues and we will all miss his
leadership and counsel. We wish Bary well in his future
endeavors. At the same time, we are very excited to appoint
Peter to this critical role. I have known Peter for many years
and his financial expertise and industry background will serve
the company well now and into the future."
Mr. Blott is a member of the Valeant management team and has
worked closely with Messrs. Bailey and Tyson and the board of
directors since joining the company in 2003. He currently
oversees all group financial information, including
consolidation and financial reporting, operations finance,
accounting shared services, and all planning, budgeting and
forecasting activities. Prior to joining Valeant, Mr. Blott
held several senior finance positions for Otsuka Pharmaceuticals
Europe Ltd. and GlaxoSmithKline. Mr. Blott began his career at
PriceWaterhouseCoopers in London where he qualified as a
Chartered Accountant. He graduated with a BA (Hons) in
Economics and Law from the University of Newcastle-upon-Tyne.
About Valeant Pharmaceuticals
Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com-- is a global specialty
pharmaceutical company with US$823 million of 2005 revenues. It
has offices in Singapore and Taiwan.
* * *
The Troubled Company Reporter - Asia Pacific reported on Jan.
26, 2007, that Moody's Investors Service confirmed the ratings
of Valeant, including the B2 Corporate Family Rating, and
concluded the rating review for possible downgrade, which was
first initiated on October 23, 2006. Valeant's rating outlook
is now stable.
===============
T H A I L A N D
===============
G-STEEL: Posts THB1.68-Bil. Net Income For Fiscal Year 2006
-----------------------------------------------------------
G-Steel PCL posted a net income of THB1.68 billion over total
revenues of THB19.12 billion for the year ended Dec. 31, 2006,
compared with the net income of THB1.74 billion over total
revenues of THB18.74 billion for the year ended Dec. 31, 2005.
As at end-December 2006, G-Steel reported THB12.56 billion in
current assets available to settle THB8.27 billion in current
liabilities.
G-Steel's balance sheets as of Dec. 31, 2006, showed total
assets of THB41.62 billion over total liabilities of
THB15.04 billion, resulting in a THB26.58 billion shareholders'
equity.
A full-text copy of G-Steel PCL's consolidated financial
statements for the year ended Dec. 31, 2006, can be viewed for
free at: http://bankrupt.com/misc/GSTEELE06.xls
About G-Steel PCL
headquartered in Bangkok, G-Steel PCL -- http://www.g-steel.com/
-- is primarily engaged in the production and distribution of
hot rolled coils, which are the main materials for cold rolled
coils, hot dipped galvanized sheets, steel pipes, construction
materials and auto parts. The company is a self-contained plant
equipped with advanced integrated technology starting from
liquid steel making, slab casting to hot rolling. This
multiphase steel plant has a production capacity of 1.8 million
tons per annum of hot rolled coils. G Steel distributes its
products in both domestic and overseas markets.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 29, 2006, that Moody's Investors Service had placed the B1
corporate family rating and senior unsecured bond rating of
G Steel Public Company Limited on review for possible downgrade.
The report said that the rating action follows G Steel's
announcement that it will purchase approximately US$180 million
in convertible bonds issued by Nakornthai Strip Mill PLC.
The TCR-AP reported that Standard & Poor's Ratings Services, on
June 27, 2006, placed its ratings on G Steel, including the B+
corporate credit rating, on CreditWatch with negative
implications.
G-STEEL: Appoints Kornpranom Wongmongkol as New Company Director
----------------------------------------------------------------
In a disclosure to the Stock Exchange of Thailand, G-Steel PCL
stated that it has appointed a new company director when it
convened its Board of Directors Meeting on Feb. 26, 2007.
Specifically, the company named Kornpranom Wongmongkol as its
new director, replacing Stephane Benayon, who resigned on
Jan. 5, 2007.
The appointment was supported by the other directors:
-- Somsak Leeswadtrakul
-- Patama Chiachuabsilp
-- Pol. Lt. General Prakard Sataman
-- Yanyong Kurovat co-signing with Vijit Supinit
-- Ryuzo Ogino
-- Sasivimon Kasemsri together
About G-Steel PCL
Headquartered in Bangkok, G-Steel PCL -- http://www.g-steel.com/
-- is primarily engaged in the production and distribution of
hot rolled coils, which are the main materials for cold rolled
coils, hot dipped galvanized sheets, steel pipes, construction
materials and auto parts. The company is a self-contained plant
equipped with advanced integrated technology starting from
liquid steel making, slab casting to hot rolling. This
multiphase steel plant has a production capacity of 1.8 million
tons per annum of hot rolled coils. G Steel distributes its
products in both domestic and overseas markets.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 29, 2006, that Moody's Investors Service had placed the B1
corporate family rating and senior unsecured bond rating of G
Steel Public Company Limited on review for possible downgrade.
The report said that the rating action follows G Steel's
announcement that it will purchase approximately US$180 million
in convertible bonds issued by Nakornthai Strip Mill PLC.
The TCR-AP reported that Standard & Poor's Ratings Services, on
June 27, 2006, placed its ratings on G Steel, including the B+
corporate credit rating, on CreditWatch with negative
implications.
G-STEEL: Discloses Resolutions Passed At BOD Meeting
----------------------------------------------------
G-Steel PCL, in a regulatory filing with the Stock Exchange of
Thailand on Mar. 15, 2007, disclosed the resolutions passed at
its Board of Directors Meeting on Mar. 15, 2007.
The disclosure outlines these resolutions:
-- that the net profit for fiscal year 2006 will be
proposed for shareholder approval:
* Legal reserve THB86,915,400
* Dividend payment at THBTHB0.025 per share, amounting
to THB277,500,000. The remaining profit will be
reserved for expansion projects of the company. The
Dividend payment date is May 21, 2007.
-- that the re-election of the following five directors,
retired by rotation for the Year 2007, will be proposed at
the Annual General Meeting:
1) Professor Paichitr Roajanavanich
2) Assoc. Prof. Prapanpong Vejjajiva
3) Pol. Lt. General Prakard Sataman
4) General Choochat Kambhu Na Ayudhya
5) Preecha Prakobkit
-- that the directors' remuneration of THB8,000,000 for
the Year 2007, for which the Board of Directors will have
power to allocate such amount, will be proposed for
shareholder approval.
-- that the appointment of Ernst and Young Office Ltd.
Certified Public Accountants, as company auditors for
the 2007 financial year, will be proposed for shareholder
approval:
Rungnapa Lertsuwankul CPA License No. 3516
Vissuta Jariyathanakorn CPA License No. 3853
Sumalee Reewarabandith CPA License No. 3970,
The Auditing Fee, which includes the quarterly reviewing
fee of THB2,450,000, will also be proposed for
shareholder approval.
-- that the amendment to Company Regulation number 62 and the
Memorandum of Association regarding the change of the
company seal will be proposed for shareholder approval.
-- that the amendment to the terms and conditions of rights
of warrant for the employee stock ownership plan will be
proposed for shareholder approval
-- that the Annual General Meeting of Shareholders for
2007 will be on Apr. 23, 2007, at 9:00 a.m. in the Arnoma
Room at the 3rd Floor of the Arnoma Hotel, No. 99
Rajjadamri Road, Lumpini, Pathumwan, Bangkok, Thailand.
-- that the closing date of the share registration will
be on Apr. 3, 2007, at 12:00 p.m., so as to determine the
rights of shareholders who will attend the Annual General
Meeting and the rights to receive dividend.
About G-Steel PCL
Headquartered in Bangkok, G-Steel PCL -- http://www.g-steel.com/
-- is primarily engaged in the production and distribution of
hot rolled coils, which are the main materials for cold rolled
coils, hot dipped galvanized sheets, steel pipes, construction
materials and auto parts. The company is a self-contained plant
equipped with advanced integrated technology starting from
liquid steel making, slab casting to hot rolling. This
multiphase steel plant has a production capacity of 1.8 million
tons per annum of hot rolled coils. G Steel distributes its
products in both domestic and overseas markets.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 29, 2006, that Moody's Investors Service had placed the B1
corporate family rating and senior unsecured bond rating of G
Steel Public Company Limited on review for possible downgrade.
The report said that the rating action follows G Steel's
announcement that it will purchase approximately US$180 million
in convertible bonds issued by Nakornthai Strip Mill PLC.
The TCR-AP reported that Standard & Poor's Ratings Services, on
June 27, 2006, placed its ratings on G Steel, including the B+
corporate credit rating, on CreditWatch with negative
implications.
TOTAL ACCESS: Number-Shortage Woes Puts Company on Hold
-------------------------------------------------------
Total Access Communications (DTAC) expects The National
Telecommunications Commission to release additional mobile-phone
numbers to help ease its number-shortage problem, The Nation
reports.
According to the report, NTC Commissioner Suchart Suchatvejapoom
said that the board will consider DTAC's application for
3 million new phone numbers next week.
The report says that after DTAC receives the new numbers, it
still has to feed them into its system. Other operators will do
the same so the numbers can be recognized.
The Bangkok Post says that DTAC threatened to cut off telephone
lines of its existing inactive customers if the NTC does not
grant its request. NTC explained that it has to consider
matters before releasing any new numbers to maximize the use of
its resources.
"We'll be forced to begin cutting off lines of our existing
inactive customers who have made no outgoing calls for one year,
starting from next month," the report quotes DTAC CEO Sigve
Brekke. Three hundred thousand of DTAC's 12 million subscribers
have been inactive for the past nine months.
According to the Nation, Mr. Sigve said that the NTC was able to
produce a billion new phone numbers when it introduced 10-digit
mobile numbers. He says that the NTC should hasten the
allocation of new additional numbers to keep up with the brisk
sales of telecom operators.
The report says Mr. Sigve would like the Information and
Communications Technology Ministry to address four unresolved
issues: full implementation of the interconnection-charge
system, an access-charge resolution, a clear definition of the
NTC roles and authority, and a level playing field on revenue
sharing.
The Bangkok Post says telecom operators pay THB2 to the NTC for
each number each month. DTAC pays THB20 million per month for
numbering fees.
The Nation states that DTAC has also informed TOT of its
application for 3 million new numbers. DTAC was involved in a
dispute with TOT when the state agency refused 1.5 million of
DTAC's new numbers.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 5, 2007, that the NTC instructed TOT to integrate
1.5 million new mobile-phone numbers from both DTAC and rival,
True Move, into its system immediately and permanently,
A TCR-AP report on Jan. 12, said that TOT declined to integrate
DTAC and True Move's new numbers because both companies had not
paid their access charges.
The Nation adds that cellular concessionaires of CAT telecom
need to pay access charges so that they can connect to different
networks through TOT's facilities.
About Total Access Communications, DTAC
Total Access Communications, DTAC -- http://www.dtac.co.th/--
is the second-largest cellular operator in Thailand with an
approximately 30% market share and strong brand recognition.
With Telenor's recent purchase of a 39.9% interest in United
Communication Industry Plc and its subsequent tender offers for
UCOM and DTAC shares, Telenor lifted its aggregate economic
interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest
acquisition in Asia and it ranks second in terms of EBITDA
contribution outside Norway.
Standard and Poor's gave the Company a BB+ Long-term local and
foreign issuer credit ratings.
DTAC's local and foreign issuer credit were both given a Ba1
rating by Moody's Investor Service.
On Jan. 12, 2007, Fitch Ratings affirmed the ratings of Total
Access Communication following the proposed amendments to
Thailand's Foreign Business Act.
-- Long-term foreign currency Issuer Default rating at BB+;
-- National Long-term rating at A(tha);
-- National Short-term rating at F2(tha); and
-- National senior unsecured rating at A(tha).
The Outlook on DTAC's ratings is Stable.
*********
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, Rousel Elaine Tumanda, Valerie
Udtuhan, Francis James Chicano, Catherine Gutib, Tara Eliza
Tecarro, Freya Natasha Fernandez, and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
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