/raid1/www/Hosts/bankrupt/TCRAP_Public/070404.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
Friday, March 30, 2007, Vol. 10, No. 64
Headlines
A U S T R A L I A
BLACKTOWN APPLIANCES: Final Meeting Slated for April 20
BRYNEX PTY: To Declare First Interim Dividend Today
CENTRAL QUEENSLAND: To Declare First Interim Dividend Today
CYCLE & CARRIAGE: Members to Receive Wind-Up Report
FINCORP GROUP: Signs AU$5MM Sale Pact With First Capital Group
FINCORP GROUP: CEO Stubbs Received Pay Hike Before Collapse
HERITAGE PAINTS: To Declare First Interim Dividend Today
HUON CORPORATION: Workers Vote to Sell Empire Rubber to Flexara
MICROMASS AUSTRALIA: Placed Under Members' Voluntary Wind-Up
R & R LOMBO: Final Meeting Slated for April 20
S.B.S. ENTERPRISES: Will Declare Final Dividend on May 17
SOMERTON PTY: Will Declare Final Dividend on April 20
SUNCORP-METWAY: New Executive Team Formed After Promina Merger
SUNCORP-METWAY: To Hold Extraordinary Gen. Meeting on April 24
TARA NOMINEES: Members' Final Meeting Set for April 17
C H I N A & H O N G K O N G
BELL CHURCH: Undergoes Voluntary Liquidation
BENQ CORP: To Sell 1.3% Stake in AU Optronics for NT$4.5 Billion
BENQ CORP: Snubs Mobile Unit's EUR500-Mln Creditors' Claim
CHINA EVERBEST: Will Accept Proofs of Debt Until April 30
CHINA SOUTHERN: Starts Flying New Route to Dubai
CHINA SOUTHERN: Inks Code Sharing Service with Pakistan Air
EBIS ONE: Members' Final General Meeting Set for April 24
HANTCHY ENTERPRISES: Members Decide to Wind Up Firm
TEH KON (HONG KONG): Members' Final Meeting Set for April 26
TITAN PETROCHEMICALS: Inks US$175MM Investment Deal with Warburg
* Taiwan Banks' Average Bad Loan Ratio Continues to Rise
I N D I A
GENERAL MOTORS: Awards Stock Grants to Executives
GENERAL MOTORS: Annual Stockholders' Meeting Scheduled on June 5
GENERAL MOTORS: S&P Holds Negative Outlook on Liquidity Issues
JIK INDUSTRIES: To Meet Today to Implement Capital Increase
KARNATAKA BANK: To Raise INR150 Crore From Bond Issue
KOTAK MAHINDRA: International Finance Corp. to Invest US$45 Mil.
I N D O N E S I A
ALCATEL-LUCENT: Wins Contract to Expand Iusacell Mobile Network
ALCATEL-LUCENT: Signs Submarine Network Contract With Telstra
ALCATEL-LUCENT: Chinese Unit Signs Hunan Network Contract
FOSTER WHEELER: Subsidiary Taps Michael Stacey to Board
GOODYEAR TIRE: Moody's Puts Low-B Ratings on US$2.7-Bil. Loans
NORTEL NETWORKS: Closes US$1.15-Billion Senior Notes Offering
NORTEL: Selected to Deploy 4G and Satellite Broadband Trial
PERTAMINA: To Increase LPG Procurement to Address Shortages
TELKOM INDONESIA: Sets Lower Speedy Broadband Access Tariff
J A P A N
AMERICAN AIRLINES: Moody's Lifts Rating on Sr. Facility to Ba3
AMR CORP: Moody's Lifts Corporate Family Rating to B2 from B3
CONTINENTAL AIRLINES: Moody's Rates Class C Certificates at B1
CONTINENTAL AIRLINES: S&P Assigns B+ Rating on Class C Certs.
FONIX CORP: BroadRiver Buys Assets of Fonix Telecom and LecStar
MITSUBISHI MOTORS: Releases February Production & Sales Results
SAPPORO HOLDINGS: Asahi Snubs Proposal to Rescue Sapporo
US AIRWAYS: Completes US$1.6-Bil. Debt Refinancing Transaction
US AIRWAYS: Pilots Protest Management's Negotiating Tactics
K O R E A
ARROW ELECTRONICS: Launching Share Repurchase Program in Q2 2007
ARROW ELECTRONICS: Moody's Affirms Low B Provisional Ratings
CURON INC: Appoints Seo Myoung Hwan as New Co-CEO
DURA AUTOMOTIVE: Banner & Witcoff Okayed as Special IP Counsel
TOWER AUTOMOTIVE: Selling Assets to Cerberus Capital
TOWER AUTOMOTIVE: Hikes Due Diligence Amount to Over US$3.2 Mil.
TOWER AUTOMOTIVE: Wants Until July 31 to Decide on Leases
UNITED AIRLINES: Union Coalition Demands Shared Rewards
M A L A Y S I A
PANGLOBAL BERHAD: Wants to Discuss Unit's Disposal With Tokio
PROTON HOLDINGS: Partnership Talks Hang on Government's Report
SETEGAP BERHAD: Buyers Extend Sale Purchase Agreements
TENAGA NASIONAL: Signs Contract with Renewable Power
P H I L I P P I N E S
CHIQUITA BRANDS: Shows Interim Price & Volume Data for 1st Qtr.
GLOBE TELECOM: Shareholders Elect 11 Board Members
PHIL. LONG DISTANCE: Annual Stockholders Meeting Set for June 12
RIZAL COMMERCIAL BANKING: Moody's Holds E+ Fin'l Strength Rating
S I N G A P O R E
APM INTERNATIONAL: Court to Hear Wind-Up Petition on April 13
CITY INSIGHT: Court Orders Wind Up of Operations
CKE RESTAURANTS: Income Tax Benefit Overstated by US$16 Million
CKE RESTAURANTS: S&P Rates US$320MM Revolving Facility at 'BB'
CKE RESTAURANTS: Moody's Rates US$200-Mil. Senior Loan at (P)Ba2
DENFIELD PTE: Court Orders Wind Up of Operations
DONOVAN SYSTEMS: Undergoes Wind-Up Proceedings
FLEX CONSTRUCTION: Court to Hear Wind-Up Petition Today
GOH HUP HENG: Court to Hear Wind-Up Petition Today
NEWIN CONSTRUCTION: Undergoes Wind-Up Proceedings
PETROLEO BRASILEIRO: Investing BRL3.12 Billion in Santos Unit
PETROLEO BRASILEIRO: Signs Joint Biofuel Deal with Eni
PETROLEO BRASILEIRO: Wants 15-Year Reserves-Production Ratio
SING HENG SHENG: Pays Final Dividend to Unsecured Creditors
SOTHEBY'S: S&P Upgrades Corporate Credit Rating to BB+ from BB
WCM BETEILIGUNGS: To Sell Stakes in Maternus-Kliniken & YMOS
T H A I L A N D
ADVANCE AGRO: Posts Net Income of THB1.91 Billion for 2006
ADVANCE PAINT: Will Not Pay Out Dividends for 2006
ASIA HOTEL: ANS Audit Co. Raises Significant Going Concern Doubt
ASIA HOTEL: Sets General Shareholders Meeting for April 24
BANGKOK BANK: Sets Sights on Expanding in India and China
BANK OF AYUDHYA: Sells Entire 50.63% Stake in IFS for THB228MM
BLOCKBUSTER INC: Good Performance Cues S&P's Ratings' Upgrade
PHELPS DODGE: Moody's Lifts Rating on US$566.7MM Sr. Debt to Ba2
PRASIT PATANA: SET Moves Securities to "NPG" from Trading Board
SIAM COMMERCIAL: 2006 Net Income Declines 29.64% to THB13 Bil.
TRUE CORP: Plans to Acquire Wave Worker Shares at THB100 Apiece
* Large Companies With Insolvent Balance Sheets
- - - - - - - -
=================
A U S T R A L I A
=================
BLACKTOWN APPLIANCES: Final Meeting Slated for April 20
-------------------------------------------------------
Blacktown Appliances Pty Limited will hold a final meeting for
its members and creditors on April 20, 2007, at 10:00 a.m.
The meeting will be held at Level 1 of 32 Martin Place, Sydney
in New South Wales, Australia.
During the meeting, the members and creditors will receive a
report about the company's wind-up proceedings and property
disposal.
About Blacktown Appliances
Blacktown Appliances Pty Limited operates household appliance
stores. The company is located in New South Wales, Australia.
BRYNEX PTY: To Declare First Interim Dividend Today
---------------------------------------------------
Brynex Pty Ltd, which is subject to deed of company
arrangement, will declare its first interim dividend today,
March 30, 2007.
Creditors who were not able to file their proofs of debt on
March 29, 2007, are excluded from the company's dividend
distribution.
The company's deed administrators are:
B. R. Silvia
A. J. Love
Ferrier Hodgson
Level 13, 225 George Street
Sydney, New South Wales 2000
Australia
About Brynex Pty
Brynex Pty Ltd, which is also trading as Amazing Paints,
operates miscellaneous retail stores. The company is located in
New South Wales, Australia.
CENTRAL QUEENSLAND: To Declare First Interim Dividend Today
-----------------------------------------------------------
Central Queensland Petroleum Caltex Monto Pty Ltd, which is
subject to a deed of company arrangement, will declare its first
interim dividend today, March 30, 2007.
Creditors whose proofs of debt were not admitted on March 27,
2007, are excluded from the company's dividend distribution.
The company's deed administrators are:
B. R. Silvia
A. J. Love
Ferrier Hodgson
Level 13, 225 George Street
Sydney, New South Wales 2000
Australia
About Central Queensland
Central Queensland Petroleum Caltex Monto Pty Ltd operates
gasoline service stations. The company is located in
Queensland, Australia.
CYCLE & CARRIAGE: Members to Receive Wind-Up Report
---------------------------------------------------
The members of Cycle & Carriage Automotive Services Pty Ltd will
have their general meeting on April 20, 2007, to hear the
liquidator's report about the company's wind-up proceedings and
property disposal.
The company's liquidator is:
S. R. T. Craig
80 Pymble Avenue
Pymble, New South Wales 2073
Australia
About Cycle & Carriage
Cycle & Carriage Automotive Services Pty Limited operates unit
investment trusts, face-amount certificate offices, and closed-
end management investment offices. The company is located in
New South Wales, Australia.
FINCORP GROUP: Signs AU$5MM Sale Pact With First Capital Group
--------------------------------------------------------------
First Capital Group said it entered into an agreement to buy
Fincorp Group for AU$5 million two weeks ago, The Australian
relates.
First Capital Group also lent AU$3 million to the company, the
report adds.
According to the paper, First Capital invests in high-risk
property development loans through its First Capital Securities
arm and currently controls about AU$40 million of investor
funds, offering annual returns of up to 9.95%.
Anthony Klan of The Australian writes that Fincorp Group's
would-be white knight also has a checkered past. Mr. Klan
relates that First Capital's Managing Director Leslie Freeman
oversaw the failure of a AU$29 million high-risk property group
-- Co-Develop Group -- two years ago. Mr. Freeman was quick to
point out that any allegations of improper conduct concerning
Co-Develop Group was never proven.
About Fincorp
Fincorp Group -- http://www.fincorp.com.au/-- in its current
structure was established in July 2005. The company is a
boutique funds management and property development business that
focuses on mortgage-backed and property products. It is based
in Grosvenor Place, Sydney, with around 40 employees across New
South Wales, Victoria, and Queensland.
Two companies with the Fincorp Group (Fincorp Financial Services
Limited and Fincorp Managed Investments Limited) hold Australian
Financial Services Licenses and act as Responsible Entities
under the Corporations Act 2001. Fincorp and its Funds are
regulated by the Australian Securities and Investment
Commission.
* * *
On March 27, 2007, the Troubled Company Reporter - Asia Pacific
reported that Fincorp Group went into administration with AU$290
million in debt of which AU$200 million were owed to investors
and AU$90 million to external financiers.
David Winterbottom was appointed as administrator together with
Mark Korda and Lachlan McIntosh, partners at corporate recovery
firm KordaMentha.
Fincorp Group has reportedly been struggling under heavy inter-
company debt loads and negative cashflow, the TCR-AP cited a
report from The Australian, published on March 26, 2007.
FINCORP GROUP: CEO Stubbs Received Pay Hike Before Collapse
-----------------------------------------------------------
Fincorp Group Chief Executive Craig Stubbs's salary was
increased from AU$450,000 a year to a package in excess of
AU$700,000 in January 2007, The Daily Telegraph reports citing a
source close to the company.
The salary increase was approved by Fincorp's former chairman,
Peter Pengilley, who resigned from the company on Feb. 16, 2007,
the source told the paper.
The increase came just weeks before the company was placed in
administration due to its inter-company debt. Fincorp's debt
was exacerbated by 17 external loans, 10 of which are in
default, The Daily says.
Mr. Stubbs' employment contract was to expire on March 31 but he
resigned as director from 24 Fincorp group companies on Feb. 26.
Mr. Stubbs also stepped down from his executive management role.
When Fincorp was placed in administration, it only had one
director.
About Fincorp
Fincorp Group -- http://www.fincorp.com.au/-- in its current
structure was established in July 2005. The company is a
boutique funds management and property development business that
focuses on mortgage-backed and property products. It is based
in Grosvenor Place, Sydney, with around 40 employees across New
South Wales, Victoria, and Queensland.
Two companies with the Fincorp Group (Fincorp Financial Services
Limited and Fincorp Managed Investments Limited) hold Australian
Financial Services Licenses and act as Responsible Entities
under the Corporations Act 2001. Fincorp and its Funds are
regulated by the Australian Securities and Investment
Commission.
* * *
On March 27, 2007, the Troubled Company Reporter - Asia Pacific
reported that Fincorp Group went into administration with AU$290
million in debt of which AU$200 million were owed to investors
and AU$90 million to external financiers.
David Winterbottom was appointed as administrator together with
Mark Korda and Lachlan McIntosh, partners at corporate recovery
firm KordaMentha.
Fincorp Group has reportedly been struggling under heavy inter-
company debt loads and negative cashflow, the TCR-AP cited a
report from The Australian, published on March 26, 2007.
HERITAGE PAINTS: To Declare First Interim Dividend Today
--------------------------------------------------------
Heritage Paints Pty Ltd, which is subject to deed of company
arrangement, will declare its first interim dividend today,
March 30, 2007.
Creditors who were not able to file their proofs of debt on
March 29, 2007, are excluded from the company's dividend
distribution.
The company's deed administrators are:
B. R. Silvia
A. J. Love
Ferrier Hodgson
Level 13, 225 George Street
Sydney, New South Wales 2000
Australia
About Heritage Paints
Heritage Paints Pty Ltd operates unit investment trusts, face-
amount certificate offices, and closed-end management investment
offices. The company is located in New South Wales, Australia.
HUON CORPORATION: Workers Vote to Sell Empire Rubber to Flexara
---------------------------------------------------------------
Empire Rubber's 220-strong workforce has voted to sell the
company to Flexara Industries, according to various reports
citing the Australian Associated Press.
Huon Corporation, which owns Empire Rubber, placed the business
on the market in mid-2006 and cut jobs -- less than a year after
it acquired the business from Nylex Ltd.
The AAP relates that the workers accepted Flexara's offer over
that of rival bidder, Indian multinational Motherson, during a
three-hour meeting with the National Union of Workers and
liquidators of Huon Corp.
Citing a union official, the AAP says, Flexara proposes to keep
145 full-time jobs -- 45 more than offered by Motherson. The
sale, however, will cost 75 more jobs. Redundant workers will
receive a payout equivalent to 70% to 80% of their entitlements
under the plan.
The liquidator is expected to formalize the sale very soon, with
the sale process estimated to take several weeks.
About Huon Corporation
Based in Victoria, Australia, Huon Corp. manufactures car
parts. It has factories that supply parts including air intake
hoses, steering column covers, rubber seals, and fuel filler
shields to major car companies like Toyota, Holden, Ford, and
PBR.
Huon Corp. went into voluntary administration after concerns
about its financial situation, saying the failure to perform
occurred after it purchased Empire Rubber, and Melbourne-based
firms FRN and Mills Elastomers from Nylex Ltd., in December
2005. Tony Sims and Ken Sellars of SimsPartners were appointed
as administrators.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 10, 2006, that Huon's creditors voted to put the company
into liquidation.
According to ABC News Online, the Australian Manufacturing
Workers Union asked the Australian Securities and Investment
Commission to investigate Huon's demise. Huon administrator
Tony Sims said that the company could be referred to the ASIC
for trading while insolvent.
MICROMASS AUSTRALIA: Placed Under Members' Voluntary Wind-Up
------------------------------------------------------------
At a general meeting held on March 6, 2007, the members of
Micromass Australia Pty Ltd resolved to voluntarily wind up the
company's operations.
Wayne L. Smith was appointed as liquidator.
The Liquidator can be reached at:
Wayne L. Smith
Wayne L. Smith & Associates
Suite 20, 401 Pacific Highway
Artarmon, New South Wales 2064
Australia
Telephone:(02) 9460 8233
About Micromass Australia
Micromass Australia Pty Ltd operates investment offices. The
company is located in Victoria, Australia.
R & R LOMBO: Final Meeting Slated for April 20
----------------------------------------------
The members and creditors of R & R Lombo Pty Limited will have
their final meeting on April 20, 2007, at 9:30 a.m., to receive
a report about the company's wind-up proceedings and property
disposal.
The meeting will be held at Level 1 of 32 Martin Place, Sydney
in New South Wales, Australia.
N. C. Malanos is the company's liquidator.
About R & R Lombo
R & R Lombo Pty Limited is a distributor of office and store
fixtures, partitions, shelving, and lockers, except for wood
materials.
S.B.S. ENTERPRISES: Will Declare Final Dividend on May 17
---------------------------------------------------------
S.B.S. Enterprises Pty Ltd, formerly trading as Darby's Pies and
subject to deed of company arrangement, will declare its final
dividend on May 17, 2007.
Creditors are required to file their proofs of debt by April 11,
2007, to be included in the company's dividend distribution.
The company's deed administrator is:
R. G. Tolcher
Lawler Partners
Chartered Accountants
763 Hunter Street
Newcastle West, New South Wales 2302
Australia
Telephone:(02) 4962 2294
Facsimile:(02) 4962 2290
About S.B.S. Enterprises
S.B.S. Enterprises Pty Ltd, also trading as Darby's Oven Door,
operates eating places. The company is located in New South
Wales, Australia.
SOMERTON PTY: Will Declare Final Dividend on April 20
-----------------------------------------------------
Somerton Pty Ltd, which is in liquidation, will declare a first
and final dividend for its unsecured creditors on April 20,
2007.
Creditors are required to file their proofs of debt by April 18,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
G. L. Pearce
35 Montague Street
Goulburn, New South Wales 2580
Australia
About Somerton Pty
Located in Western Australia, Somerton Pty Ltd is involved with
heavy construction.
SUNCORP-METWAY: New Executive Team Formed After Promina Merger
--------------------------------------------------------------
Suncorp-Metway Ltd. will be led by a new executive team after
its merger with Promina Group Ltd.
Suncorp-Metway Ltd. Chief Executive John Mulcahy said the
executive team, which includes a mix of experienced executives
from Suncorp and Promina as well as an external candidate, will
be tasked to confirm the merged group's business model and the
strategic direction of their individual business lines, as well
as meeting integration targets.
The new executive team is composed of:
1) Roger Bell
2) Robert Belleville
3) Mark Blucher
4) David Foster
5) Dennis Fox
6) Bernadette Inglis
7) Stuart McDonald
8) Mark Milliner
9) Chris Skilton
10) Jeff Smith
The merged group will implement the organizational structure
agreed between them in October as part of the merger
implementation agreement.
Mr. Mulcahy said the confirmation of the management is important
to enable them to immediately focus on integration activities,
clarify the merged group's business model and specific
responsibilities associated with it, and ensure continued
delivery of core business performance.
Suncorp's new management structure is effective today.
About Suncorp-Metway
Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses. Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.
Standard and Poor's gave the company a 'B' insurer financial
strength rating on July 10, 2005.
SUNCORP-METWAY: To Hold Extraordinary Gen. Meeting on April 24
--------------------------------------------------------------
Suncorp-Metway Ltd. will hold an Extraordinary General Meeting
on April 24, 2007, at 2:30 p.m., in Meeting Rooms 3 and 4 at the
Brisbane Convention & Exhibition Centre, corner of Merivale and
Glenelg Streets, South Brisbane.
The agenda of the meeting include:
1) Amendment of the Constitution,
2) Election of Directors, and
3) Directors' Remuneration
About Suncorp-Metway
Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in retail and
business banking, general insurance, life insurance,
superannuation and funds management with a focus on retail
consumers and small to medium businesses. Its brand offering
includes Suncorp and GIO, with GIO being the main insurance
brand outside of Queensland.
Standard and Poor's gave the company a 'B' insurer financial
strength rating on July 10, 2005.
TARA NOMINEES: Members' Final Meeting Set for April 17
------------------------------------------------------
Tara Nominees Pty Ltd will hold a final meeting for its members
on April 17, 2007, at 10:30 a.m.
During the meeting, the members will hear a report about the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Craig Crosbie
PPB Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About Tara Nominees
Located in Western Australia, Tara Nominees Pty Ltd is an
investor relation company.
================================
C H I N A & H O N G K O N G
================================
BELL CHURCH: Undergoes Voluntary Liquidation
--------------------------------------------
At an extraordinary general meeting held on March 12, 2007, the
members of Bell Church Hong Kong Foundation Limited resolved to
voluntarily wind up the company's operations.
In this regard, Yu Hung Wai was appointed as liquidator.
The Liquidator can be reached at:
Yu Hung Wai
Block C, 11th Floor
Chi Wah Industrial Building
1 C7 Kin Hong Street
Kwai Chung, N.T.
Hong Kong
BENQ CORP: To Sell 1.3% Stake in AU Optronics for NT$4.5 Billion
----------------------------------------------------------------
BenQ Corp. disclosed in a filing with the Taiwan Stock Exchange
that it plans to sell 100 million shares it owned, or about
1.3%, in AU Optronics Corp., The China Post reports.
According to BenQ, it expects to gain NT$4.5 billion from the
sale to be conducted in a block trade. Proceeds, The Taipei
Times notes, will be used to increase the company's cash flow.
The report relates that after the sale, BenQ will cut its
shareholding in AU Optronics to 8.2% from 9.7%.
AFX News Limited says that BenQ currently owns 638.03 million
shares in AU Optronics.
The company did not present a timetable as to when to proceed
with the offer.
* * *
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, 3G handset, Camera phones, and other products.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29, 2006, after BenQ Corp.'s board decided
to discontinue capital injection into the mobile unit in order
to stem unsustainable losses. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's:
* continuing operating losses from its handset operations;
* high leverage; and
* the competitive nature and low profitability of the LCD
monitor industry. et assets as of Dec. 31.
BENQ CORP: Snubs Mobile Unit's EUR500-Mln Creditors' Claim
----------------------------------------------------------
BenQ Corp. will not heed the EUR500 million claims sought by the
insolvency administrator of the company's German unit, BenQ
Mobile GmbH & Co, as there is no legal basis to it, various
reports say.
BenQ Corp. has denied allegations that it received assets
allegedly transferred by BenQ Mobile before the German unit
filed for insolvency in September 2006.
As reported by the Troubled Company Reporter-Europe on March 26,
Martin Prager, the insolvency manager for BenQ Mobile, was
seeking to recover EUR382 million from the company's Taipei
headquarters and EUR122 million from a Shanghai subsidiary.
In an e-mailed statement to Bloomberg News, BenQ stressed that
it "does not believe there is a legal basis" for claims made by
the unit's insolvency manager.
At the same time, contrary to reports, BenQ reiterated, "it has
received no document from the insolvency administrator of BenQ
Mobile explaining any legal ground for a claim of EUR500
million," XFN Asia says.
In addition, Mike Clendenin, writing for the EE Times, quoted
the parent company's defense on its move to transfer assets "as
actually outstanding payment for goods sold and shipped to the
unit from BenQ Corp and its affiliates." BenQ added that, in
fact, there was still account receivables of approximately
US$216 million by the German unit at the time of the
insolvency," the Times notes.
BenQ also said that it reserves all rights to hold the
insolvency administrator responsible if the administrator makes
any incorrect statement without legal ground, which could be
damaging to the company's goodwill and interest, Bloomberg says.
* * *
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, 3G handset, Camera phones, and other products.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29, 2006, after BenQ Corp.'s board decided
to discontinue capital injection into the mobile unit in order
to stem unsustainable losses. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's:
* continuing operating losses from its handset operations;
* high leverage; and
* the competitive nature and low profitability of the LCD
monitor industry.
CHINA EVERBEST: Will Accept Proofs of Debt Until April 30
---------------------------------------------------------
China Everbest Motors Company, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by April 30, 2007.
Creditors who cannot file their claims by the bar date will be
excluded from sharing in the company's dividend distribution.
Li Pui Ying, Michelle, is the company's liquidator.
CHINA SOUTHERN: Starts Flying New Route to Dubai
------------------------------------------------
China Southern Airlines started operating on its new route from
the southern city of Guangzhou to Dubai in the United Arab
Emirates, CCTV News relates, citing Xinhuanet News.
As reported by the Troubled Company Reporter - Asia Pacific on
March 20, 2007, China Southern said it will start its new
service to Dubai on March 26.
The opening of the new route was prompted by the increase in
travel between the Gulf countries and China, mainly due to trade
links, the TCR-AP said.
The Chinese airline will soon add Jeddah to its international
route. The planned service will be via the UAE and link the
Chinese city of Urmuqi with Jeddah.
An earlier TCR-AP report said that China Southern plans to
launch 10 international direct routes that depart from Guangzhou
within the year. The routes to be launched will connect
Guangzhou with:
* Dubai in the UAE,
* Sendai and Sapporo in Japan,
* Kathmandu in Nepal,
* Delhi in India,
* Siem Reap in Cambodia,
* Phuket in Thailand,
* Yangon in Myanmar, and
* Vientiane in Laos.
The airline will also open a new route to Luanda in Angola in
Africa.
* * *
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com/-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings downgraded China Southern Airlines
Company Limited's Foreign Currency and Local Currency Issuer
Default Ratings to B+ from BB-.
The Troubled Company Reporter - Asia Pacific reported in April
2006 that the carrier posted a net loss of CNY1.85 billion for
2005 versus a net loss of CNY48 million in 2004.
CHINA SOUTHERN: Inks Code Sharing Service with Pakistan Air
-----------------------------------------------------------
China Southern Airlines signed a code-sharing pact with Pakistan
International Airlines with immediate effect, Travel Daily News
reports.
Under the agreement, China Southern will code share with PIA on
the Islamabad-Beijing service operated by PIA and the Urumqi-
Islamabad service operated by China Southern.
China Southern Airlines currently has code-share agreements with
numerous carriers including Japan Airlines and Garuda Indonesia,
as well as future SkyTeam partners KLM Royal Dutch Airlines,
Delta Air Lines, Korean Air, and Air France.
* * *
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com/-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings downgraded China Southern Airlines
Company Limited's Foreign Currency and Local Currency Issuer
Default Ratings to B+ from BB-.
The Troubled Company Reporter - Asia Pacific reported in April
2006 that the carrier posted a net loss of CNY1.85 billion for
2005 versus a net loss of CNY48 million in 2004.
EBIS ONE: Members' Final General Meeting Set for April 24
---------------------------------------------------------
The members of Ebis One Enterprises Limited and Ebis Two
Enterprises Limited will have their final general meeting on
April 24, 2007, at 10:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property
disposal.
The meeting will be held at Level 28 of Three Pacific Place in 1
Queen's Road East, Hong Kong.
As reported in the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on June 7, 2006.
The company's liquidators are:
Ying Hing Chiu
Chung Miu Yin, Diana
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
HANTCHY ENTERPRISES: Members Decide to Wind Up Firm
---------------------------------------------------
On March 23, 2007, the members of Hantchy Enterprises Limited
had their general meeting and decided to wind up the company's
operations.
Creditors are asked to prove their debts by May 18, 2007, to be
included in the company's dividend distribution.
The company's liquidator is:
Liu, Wing Ting Stephen
17th Floor, Shun Kwong Commercial Building
No. 8, Des Voeux Road West
Sheung Wan
Hong Kong
TEH KON (HONG KONG): Members' Final Meeting Set for April 26
------------------------------------------------------------
Teh Kon (Hong Kong) Limited will hold a final meeting for its
members on April 26, 2007, at 10:00 a.m.
The meeting will be held at Flat B of 13th Floor, Hop Ying Comm.
Bldg, 755 Nathan Rd in Kln. Hong Kong.
During the meeting, the members will receive a report about the
company's wind-up and property disposal.
According to the TCR-AP, the company commenced wind-up
proceedings on Dec. 27, 2006.
The company's liquidator is:
Chan Wing Kee Andrew
Flat B, 13/F
Hop Ying Comm. Bldg
755 Nathan Rd, Kowloon
Hong Kong
TITAN PETROCHEMICALS: Inks US$175MM Investment Deal with Warburg
----------------------------------------------------------------
Titan Petrochemicals Group Limited disclosed that it has reached
a definitive agreement to introduce Warburg Pincus as a
strategic investor in Titan and China StorageCo, the vehicle
through which Titan will hold its on-shore storage terminals in
China.
Warburg Pincus, one of the world's leading private equity
investors, will invest a total of US$175 million
(HK$1,365 million) in Titan, split between a US$75 million
(HK$585 million) investment in equity, convertible preferred
shares and warrants in Titan and a US$100 million (HK$780
million) investment in China StorageCo.
China StorageCo, in which Warburg Pincus will have a 49.9%
ownership, will remain a consolidated subsidiary of Titan.
The investment supports Titan's growth strategy of transforming
its business towards an integrated oil logistics model, offering
end-to-end transportation, storage, supply and distribution
services on a single platform, and thus reducing its previous
exposure to the volatile VLCC market.
Consistent with this strategy, Titan also announced that it has
entered into a MOU in relation to the potential acquisition of
Titan Quanzhou Shipyard, a strategically located shipyard
in China's Fujian Province which is capable of both repairing
and building ships.
Barry Cheung, Chief Executive of Titan, said: "We are truly
excited to welcome Warburg Pincus as a long-term partner in our
effort to build the leading integrated oil logistics company in
Asia. The investment of US$175 million will fully fund our on-
shore storage terminals in China and provide financial
flexibility to support the growth of Titan's overall business
portfolio."
Rajiv Ghatalia, Managing Director of Warburg Pincus, added: "We
are attracted to Titan's management team and their vision of
putting a scalable logistical platform in place which can
capitalize on the tremendous growth of oil flows into China. We
have structured our investment to assist Titan to rapidly and
securely achieve that goal. Warburg Pincus is proud to back
Titan with our capital support and energy experience. We look
forward to a successful partnership based on achieving the best
in business strategy and corporate governance."
The transaction, which is subject to regulatory clearance and
customary closing conditions, is expected to close in the second
quarter of 2007.
Merrill Lynch is acting as the financial adviser to Titan and
Morgan Stanley is acting as the financial adviser to Warburg
Pincus in respect of the transaction.
About Warburg Pincus
Warburg Pincus LLC -- http://www.warburgpincus.com/-- has been
a leading private equity investor since 1971. It has sponsored
11 private equity investment funds which have invested
approximately US$25 billion in more than 550 companies in 30
countries. The firm currently has approximately US$22 billion
under management and invests in a range of industries, including
energy, consumer, information and communication technology,
financial services, healthcare, industrial, media business
services and real estate. The firm has invested more than US$2
billion in Asia since 1994 and has invested an equivalent amount
in equity funding for energy companies around the world since
the late 1980's.
About Titan
Headquartered in Hong Kong, with strategic business operations
in Singapore, Malaysia and China, Titan Petrochemicals Group
Limited -- http://www.petrotitan.com/-- is an integrated oil
service provider, offering a broad range of oil services,
including transportation, storage, distribution, including ship
refueling (bunkering) and supply. Titan operates and manages a
fleet of over 30 oil tankers ranging from 400 to 270,000
deadweight tones.
On May 4, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Standard & Poor's Ratings Services has revised
its outlook on Titan Petrochemicals Group Ltd. to negative from
stable. At the same time, it affirmed the "BB-" long-term
corporate credit rating on Titan. The "B+" issue rating on the
company's senior unsecured notes was also affirmed.
Meanwhile, Moody's Investors Service, on July 20, 2006,
downgraded the corporate family rating of Titan Petrochemicals
Group Ltd to B1 from Ba3. At the same time, Titan's senior
unsecured bond rating has been downgraded to B2 from B1. The
outlook for both ratings is stable. This concludes the ratings
review initiated in April 2006.
* Taiwan Banks' Average Bad Loan Ratio Continues to Rise
--------------------------------------------------------
The average bad loan ratio of Taiwan's 41 local banks continued
to rise for two consecutive months to 2.38% last month, up 0.1
percentage points from a month earlier, Taipei Times relates,
citing a statement from the Financial Supervisory Commission.
In addition, the coverage ratio used to gauge the sufficiency of
bad debts reserves dropped to 53.30% from 55.21% over the same
period, the financial regulator's data showed.
The Times also notes that bad debts ratio of cash card lending
climbed 1.58 percentage points month-on-month to 7.74% last
month, due to a decrease of NT$4.2 billion in total lending
balance and a rise of NT$2.4 billion in defaulted loans balance.
That of credit card lending nudged up to 2.36%, up 0.09
percentage points in January.
=========
I N D I A
=========
GENERAL MOTORS: Awards Stock Grants to Executives
-------------------------------------------------
General Motors Corporation is giving bonuses in the form of
stock to Chairman and Chief Executive Rick Wagoner and other top
executives, the Wall Street Journal reports.
Filings with the U.S. Securities and Exchange Commission show
that Mr. Wagoner received restricted stock valued at
US$2.8 million and 500,000 options. A total of 18 executives
also disclosed equity grants in separate filings, the WSJ
relates.
The move, according to WSJ, could cause difficulties in the
company's efforts to get additional concessions from its biggest
U.S. labor union.
Citing company spokeswoman Renee Rashid-Merem, WSJ relates that
GM's board makes a decision annually on granting stock-based
compensation. Executive compensation had undergone scrutiny in
recent years due to the company's sinking financial position.
WSJ further relates that these executives also receive stock
grants:
* Vice Chairman Bob Lutz with 60,000 restricted stock units
valued at US$1.8 million and 250,000 options,
* Chief Financial Officer Frederick Henderson with 60,000
restricted stock units valued at US$1.8 million and
250,000 options;
* North American Chief Troy Clarke with 45,000 restricted
stock units valued at US$1.32 million and 50,000 options;
and
* Europe Chief Carl-Peter Forster with 40,000 restricted
stock units valued at US$1.17 million and 40,000 options.
The value of the restricted stock units was calculated based on
the closing price of US$29.35 as of March 20, 2007. Restricted
stock units vest in equal installments every year over five
years, while their option awards vest annually in three equal
installments over three years while the options have an exercise
price of US$29.11 each, and expire in 2017, WSJ reports.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
* * *
In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006. S&P said
the outlook is negative.
In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.
GENERAL MOTORS: Annual Stockholders' Meeting Scheduled on June 5
----------------------------------------------------------------
General Motors Corporation will hold its annual meeting of
stockholders at 9:00 a.m., on June 5 at the Hotel du Pont, 11th
and Market Streets in Wilmington, Delaware.
At the meeting, stockholders will be asked to vote on:
* The election of directors for the next year;
* The ratification of the selection of independent public
accountants for the next year;
* The approval of the 2007 Annual Incentive Plan;
* The approval of the 2007 Long-Term Incentive Plan; and
* Ten stockholder proposals, if they are properly presented
at the meeting.
Holders of GM Common Stock at the close of business on April 9
will be entitled to vote at the meeting.
A full-text copy of the definitive proxy statement for the
annual meeting is available for free at:
http://ResearchArchives.com/t/s?1c1f
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
* * *
In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006. S&P said
the outlook is negative.
In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.
GENERAL MOTORS: S&P Holds Negative Outlook on Liquidity Issues
--------------------------------------------------------------
General Motors Corp. has made progress in some aspects of the
company's multiyear turnaround plans for its North American
operations, but the automaker's use of cash remains a serious
concern, says Standard & Poor's Ratings Services in a special
report.
In the article titled "Are GM And Ford Making The Right Turns In
Their Turnaround Plans?" Standard & Poor's credit analyst Robert
Schulz notes, "There have been some successes, most notably on
headcount reductions and in bolstering liquidity. And we view
the current backdrop for their turnaround attempts as
supportive. Economic conditions are broadly favorable, and the
capital markets have been forthcoming with credit. But this
initial progress is no guarantee of the sustained success that
is necessary, and we are maintaining our negative outlooks
assigned to both companies."
The report comments that the heart of the problem for Ford and
GM remains a combination of North American issues:
-- revenue shortfalls stemming from an adverse shift
in product mix,
-- high legacy costs relative to current market share,
and
-- excess manufacturing capacity.
The automakers' operations outside the US, including GM's
significant share in growing markets such as China, do not begin
to offset the poor performance in North America.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 280,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
JIK INDUSTRIES: To Meet Today to Implement Capital Increase
-----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 20, 2007, JIK Industries Ltd's board of directors decided
to increase the company's authorized capital and to issue fresh
equity shares, convertible tradable bonds, and other convertible
or tradable instruments to strategic investors, promoter and
associates.
In an update, the company informs the Bombay Stock Exchange that
its board will hold a meeting today -- March 30 -- to, among
others, implement the capital increase. The capital increase is
pursuant to the order of the Board for Industrial and Financial
Reconstruction for the company to be able to fulfill its dues.
The board will also consider the cancellation of equity shares
issued on preferential basis to promoter R. G. Parikh on
June 29, 2006, as per Corporate Debt Restructuring Package, and
also to consider remedial measures to ratify and re-allot those
equity shares.
The board will also be inducting nominee directors during the
meeting, the company adds.
Headquartered in Mumbai, India, JIK Industries Limited --
http://www.jikindustriesltd.com/-- manufactures handmade non-
lead crystalware segment and is the only organized player in the
country. JIK's products also include crystal glassware such as,
glass tumblers, bowls, stemware, showpieces, and vases,
manufactured at Balkum, Thane, Maharashtra. The company had
collapsed following accidents at its chemical waste recycling
plant and at its crystal-making unit. The Company, which had
diversified interests -- crystal making, money changing and
chemical waste recycling -- was forced to exit the money
changing business after its net worth was eroded, and pursuant
to the Reserve Bank of India stipulations.
On April 17, 2006, the Corporate Debt Restructuring Committee
approved JIK's debt-restructuring package. The CDR package
entitled the Company to a INR105-million debt waiver, in
addition to the reduction in loan interest rate to 9%. The
package allowed the Company to complete the major part of its
debt and business restructuring. So far, the Company's chemical
division is shelved closed and discontinued as whole. Post
restructuring, the Company will remove and reduce approximately
48% of outstanding debt and increase Share Capital and Network.
KARNATAKA BANK: To Raise INR150 Crore From Bond Issue
-----------------------------------------------------
Karnataka Bank Ltd intends to raise as much as INR150 crore by
issuing unsecured redeemable non-convertible subordinated (Tier-
II) bonds (Series I) in the nature of promissory notes or
debentures.
The bank's board of directors decided to make the move at its
meeting held on March 26, 2007.
The bank plans to use the proceeds to augment its capital.
Headquartered in Mangalore, India, Karnataka Bank Ltd --
http://karnatakabank.com/ktk/Index.jsp-- provides products and
services for business and personal purposes that include
borrowing facilities, deposits, providing optimum returns on
surplus funds or helping with overseas transactions. The bank
has two business segments: Treasury and Other Banking
Operations. Treasury Operations mainly comprise of surplus
statutory liquidity ratio and non-SLR investments. Other
Banking Operations mainly consist of advance portfolio of the
bank and SLR securities to the extent of SLR requirements. The
bank provides Working Capital Finance, Term Loans and
Infrastructure Finance. The Business Finance Products offers
both fund-based and non-fund-based products. The bank has
diversified into the marketing of life insurance products of
MetLife India Insurance Co. Pvt. Ltd. The Bank has entered into
a memorandum of understanding with Bajaj Allianz General
Insurance Co. Ltd. for distribution of its general insurance
products through its branches.
Fitch Ratings gave Karnataka Bank a support rating of 5.
KOTAK MAHINDRA: International Finance Corp. to Invest US$45 Mil.
----------------------------------------------------------------
International Finance Corp. will put up as much as US$45 million
in Kotak Mahindra Bank Ltd pursuant to a subscription agreement
entered into by the parties on March 21, 2007.
Under the deal, the bank will issue Upper Tier II subordinated
bonds to IFC by way of debentures totaling US$45 million
(approximately INR200 crores). The bond has a final maturity of
over 15 years.
The issue will help Kotak Mahindra augment its capital base and
enhance its long term funding resources, Kotak Mahindra says in
a filing with the Bombay Stock Exchange.
"IFC's investment in Kotak Mahindra Bank supports our larger
goal of developing and strengthening the financial sector in
India," The Hindu quotes Iyad Malas, director, IFC South Asia,
as saying. "Our support will help the bank leverage its
improved capitalisation, enhancing credit distribution to its
clients, especially the SME sector."
IFC is the private sector arm of the World Bank Group.
Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank. The Commercial
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services. Corporate Centre segment includes
strategic investment and activities. Car Finance segment offers
car financing. Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization. Investment
Banking segment includes advisory and transactional services
providing financial advisory services. Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits. Insurance segment offers life
insurance. Others segment includes forex broking, asset
management services and others.
On Jan. 19, 2007, Fitch assigned a 'C/D' Individual
rating to Kotak Mahindra Bank Ltd. and affirmed the bank's
support rating at '5'.
==================
I N D O N E S I A
==================
ALCATEL-LUCENT: Wins Contract to Expand Iusacell Mobile Network
---------------------------------------------------------------
Alcatel-Lucent signed a one-year contract to expand and enhance
Iusacell's existing mobile network to support third-generation
CDMA2000 1xEV-DO Revision A technology.
Iusacell is the largest CDMA mobile telecommunications operator
in Mexico.
The new EV-DO Rev. A network will enable Iusacell to continue
the deployment of unique services such as IusaTV, BAM-Banda
Ancha M¢vil and other multimedia services such as video
telephony to its growing consumer base.
The parties' contract signing ceremony took place at the
Cellular Telecommunications Industry Association Wireless 2007
trade show.
As part of this project, which will begin in June 2007,
Iusacell's existing Alcatel-Lucent-supplied base stations and
core network will be upgraded to support EV-DO Rev. A
technology. Alcatel-Lucent also will provide its 9400 AWY
Digital Microwave Radio links to transport network traffic and
transmission lines and antennas from Radio Frequency Systems.
In addition, Alcatel-Lucent will provide integration,
deployment, maintenance and project management services.
"Alcatel-Lucent's technology is critical to Iusacell's success,"
said Eduardo Kuri, director of infrastructure and systems for
Iusacell. "With this new project we will further strengthen our
network, which is the most powerful, reliable and secure 3G
network in Mexico."
"Our expanded portfolio resulting from the Alcatel-Lucent
merger, global leadership in CDMA and our multi-vendor
integration capabilities were extremely valuable to Iusacell and
allowed us to deliver a winning proposition for this complex and
multi-technology project," said Olivier Picard, president of
Alcatel-Lucent's Europe and South activities. "This is our first
EV-DO Rev. A contract in the region as a new company."
Alcatel-Lucent leads the way in building next-generation
communications networks in more than 21 countries in the Central
and Latin American region. Alcatel-Lucent covers a broad range
of technologies, being the regional leader in CDMA, Optical,
IPTV, IP Call Center and Operation & Maintenance, and helping
service providers, enterprises and governments meet the market
demand for converged voice, data and multimedia services.
EV-DO Rev. A is an enhanced version of CDMA2000 1xEV-DO that
increases the efficiency, data speeds and capacity of existing
CDMA2000 1X and 1xEV-DO networks. EV-DO Rev. A enables users to
receive data at speeds up to 3.1 Megabits per second and send
data at speeds of up to 1.8 Mbps. These increased forward and
reverse link data speeds reduce data latency and will enable
Iusacell to deliver multimedia services.
CDMA 2000 is a registered trademark of the Telecommunications
Industry Association
About Iusacell
Grupo Iusacell, S.A. de C.V. -- http://www.iusacell.com/-- is a
wireless cellular and PCS service provider in Mexico with a
national footprint. Iusacell offers more and better voice
communication and data services through state-of-the-art
technology, such as its new 3G network, throughout all of the
regions in which it operate. In addition to Iusacell's core
mobile telephony services, the company also provides a wide
range of other telecommunications services, including long
distance, wireless local telephony and data transmission
services.
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 Ratings
Services' BB rating. Its Short-Term Corporate Credit rating
stands at B.
Moody's Investor Services, 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 Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.
ALCATEL-LUCENT: Signs Submarine Network Contract With Telstra
-------------------------------------------------------------
Alcatel-Lucent has signed a turnkey contract with Telstra, a
telecommunication and information services company in Australia.
Alcatel-Lucent will lay a new submarine cable network directly
linking Sydney to Hawaii. The new submarine network will serve
as an added-value vehicle to support Telstra's IP network
transformation strategy and infrastructure expansion.
Greatly increasing international and regional connectivity, the
Sydney-Hawaii network will span nearly 9,000 kilometers and ease
the delivery of high quality, innovative services to Telstra's
more than 5 million customers. With completion scheduled in the
second half of 2008, the Sydney-Hawaii submarine network will
deliver a capacity of 1.28 Tbit/s.
Businesses and consumers will benefit from enhanced capacity and
reliability to enjoy innovative services such as telecommuting,
video conferencing and mobile video applications. As a result,
Telstra will be able to further expand its end-to-end offering
that ranges from broadband, IP, mobile and intelligent network
services, to voice and data network hubs, call centers and
advanced multimedia as well as e-commerce applications.
"The Sydney-Hawaii submarine network will enable us to offer
improved international connectivity and offer new, high-speed
services such as fixed and mobile IP-based services," stated
Greg Winn, chief operations officer at Telstra. "Alcatel-Lucent
is a valuable partner offering a comprehensive product and
service portfolio to support our seamless and cost-effective
network transformation."
"Today, operators have to manage their networks by minimizing
operational costs, while guaranteeing performance continuity at
the highest level possible," said Jean Godeluck, president of
Alcatel-Lucent's submarine network activity. "Our solutions
enable the introduction of new services and applications
smoothly to help our customers strengthen end-user satisfaction
and retention, as well as achieve new revenue streams."
The Alcatel-Lucent submarine solution will be based on its 1620
Light Manager next-generation DWDM submarine platform, and will
also include cable and submarine repeaters, providing direct
connectivity to landing stations. A comprehensive suite of
professional services, including permitting and project
management, engineering, marine operation, and installation
testing and commissioning, is part of this turnkey project.
This new project further strengthens the long-lasting and
successful cooperation between Alcatel-Lucent and Telstra for
undersea projects, dating back to the early '90s. In
particular, Alcatel-Lucent has successfully installed several
submarine systems for Telstra, such as the Pac Rim and Tasman
projects.
More on Alcatel-Lucent and Telstra Cooperation
Alcatel-Lucent deployed Telstra's first Bass Strait optic fiber
cable, linking Sandy Point and Boat Harbour, to provide a highly
reliable transmission link between Tasmania and the mainland.
Other links where subsequently deployed, one of them connecting
Adelaide to Darwin over 3,100km to meet Australia's expanded
voice, data and Internet traffic demands. Most recently,
Alcatel-Lucent deployed the Bass Strait 2 submarine link to
support Telstra in meeting Tasmania's growing demand for
advanced telecommunications services while enhancing the overall
capacity and service reliability of its existing infrastructure.
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 Ratings
Services' BB rating. Its Short-Term Corporate Credit rating
stands at B.
Moody's Investor Services, 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 Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.
ALCATEL-LUCENT: Chinese Unit Signs Hunan Network Contract
---------------------------------------------------------
Alcatel-Lucent's flagship Chinese company, Alcatel Shanghai
Bell, has signed a contract with Hunan Netcom, a subsidiary of
China Netcom, for the launching of a next-generation network
throughout Hunan Province with Alcatel-Lucent's solution.
The NGN deployment will provide Hunan Netcom with a more
flexible network, enabling the carrier to deliver new NGN
services and applications. As a result, Hunan Netcom's
residential and business customers will be able to enjoy a wider
range of multimedia services, including local and long distance
voice over IP services, traditional voice with additional value-
added services, multi-media conferencing and voice virtual
private network services.
"Alcatel-Lucent has extensive experience in deploying NGN
solutions throughout China and has a strong partnership with
China Netcom," said Zhang Zhe, president of Hunan Netcom. "We
are confident that their expertise and know-how will result in a
successful network transformation project."
Under the terms of the contract, Alcatel-Lucent will provide
Hunan Netcom with products from its comprehensive IMS-compliant
NGN portfolio, including soft switches, media gateways, line
gateways and integrated access devices. These products provide
end-to-end quality of service and security functionality that
enable service providers to bring innovative, value-added
services to their customers. Alcatel-Lucent will also provide
network design and integration, deployment, maintenance and on-
going support for Hunan Netcom.
"Our worldwide experience in NGN, thorough understanding of the
Chinese market and end-to-end solution will allow Hunan Netcom
to bring the highest quality of service to their customers,"
said Gerard Dega, president of Alcatel Shanghai Bell. "Further,
this project reinforces our leading position as China Netcom's
premier network transformation partner."
Alcatel-Lucent is a leading NGN solutions provider for telecom
operators, government organizations and enterprises around the
world with more than 200 NGN fixed and mobile customers to date,
including operators such as BT, China Telecom, Asia Pacific
Telecom Group and T-Mobile USA.
About Alcatel Shanghai Bell
Alcatel Shanghai Bell -- http://www.alcatel-sbell.com.cn-- is
the first foreign-invested company limited by shares in the
telecommunications sector in China, with Alcatel-Lucent holding
50%+1 shares and Chinese shareholders holding the remainder.
The multi-billion dollar telecom technology leader delivers end-
to-end telecommunications solutions and high-quality services,
covering the fixed, mobile networking, broadband access,
intelligent optical networking, multimedia solutions and network
applications. It also has a key international R&D center with
full access to Alcatel-Lucent's global technology pool,
developing original technology for use in China and export to
Alcatel-Lucent's customers worldwide. With 6,500 employees, an
advanced manufacturing center, and the most extensive sales and
support network in China, it is the only company capable of
meeting the global needs of Chinese customers.
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 Ratings
Services' BB rating. Its Short-Term Corporate Credit rating
stands at B.
Moody's Investor Services, 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 Ratings rates Alcatel's Issuer Default Rating and Senior
Unsecured Debt rating at BB.
FOSTER WHEELER: Subsidiary Taps Michael Stacey to Board
-------------------------------------------------------
Foster Wheeler Ltd.'s subsidiary Foster Wheeler Energy Limited,
part of its Global Engineering and Construction Group, has
appointed Dr. J. Michael Stacey to its main board. Foster
Wheeler Energy Limited is headquartered in Reading, UK.
"I am delighted to have Mike working with us," said Steve
Davies, chairman and chief executive officer, Foster Wheeler
Energy Limited. "Mike's experience and expertise will
strengthen our board as we continue to implement our strategy to
further develop and grow our upstream oil and gas business
internationally. We have been increasingly successful in
securing new business in this sector over the past two years
since the establishment of our Upstream Oil and Gas Group in the
UK in 2005, and it is our intention to continue to increase our
share of the global market by further broadening our technical
offering and customer base."
Dr. Stacey is a chemical engineer with 39 years' experience in
the international oil and gas business. In 1984 he founded the
oil and gas consulting company Granherne Limited in the UK, and,
as chairman and chief executive, grew the company
internationally. In 1996 Dr. Stacey sold Granherne to The M. W.
Kellogg Co. and remained with them in an executive role until
2001, when he invested in Petrofac and joined the company as an
executive director. He established Petrofac Engineering in the
UK and, as vice chairman of Petrofac Ltd., was closely involved
in its successful initial public offering in 2005.
About Foster Wheeler
With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research, and plant operation
services. Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology, and healthcare industries.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand and Vietnam.
* * *
On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company. The company had about
US$217 million of total debt at Sept. 29, 2006.
GOODYEAR TIRE: Moody's Puts Low-B Ratings on US$2.7-Bil. Loans
--------------------------------------------------------------
Moody's Investors Service affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1 but raised the outlook
to positive.
In addition, a Ba1 rating was assigned to Goodyear's new
US$1.5 billion first lien revolving credit facility and a Ba2
rating was assigned to the company's new US$1.2 billion second
lien term loan. At the same time, a Ba1 rating was assigned to
Goodyear Dunlop Tyres Europe's new first lien credit facilities
for EUR505 million (approximately US$650 million). The
Speculative Grade Liquidity rating of SGL-2 was also affirmed.
Amounts being refinanced are identical to current facilities,
relative priorities are unchanged, but maturity profiles have
been extended under improved terms.
Accordingly, the composition of the company's capital structure
and the impact on respective recovery expectations are
essentially unchanged.
Goodyear is amending, restating and extending the maturity of
its US$1.5 billion first lien revolving credit facility. The
facility will have a maturity in April 2013 compared to the
current 2010. The facility will continue as an asset backed
arrangement with first liens over the parent's and its
guaranteeing subsidiaries current assets, trademark and other
intangibles, shareholdings in subsidiaries and certain other
assets.
Similarly, Goodyear is also amending and restating the terms of
its US$1.2 billion second lien term loan whose new maturity will
be April 2014 compared to the current April 2010. The restated
facility will have an option to include a Luxembourg or a
Canadian subsidiary as borrowers under a Goodyear guarantee.
The term loan will continue with a second priority lien over the
collateral package pledged to the domestic revolving credit
facility and up-streamed North American subsidiary guarantees.
GDTE is also amending, restating and extending the maturities of
its bank credit facilities. These currently consist of
EUR350 million of revolving credit facilities and a term loan to
its German subsidiary of EUR155 million.
The new facilities will consist of a EUR350 million revolving
credit facility available to GDTE and several of its
subsidiaries and a separate EUR155 million revolving credit
facility to a German subsidiary. The facilities continue with
their respective first lien collateral packages and cross-
guarantees as in the current arrangements. The new maturity
will be April 2012. An unsecured guarantee from Goodyear will
also remain in place.
The B1 Corporate Family Rating recognizes strong scores for
several factors in Moody's Automotive Supplier Methodology.
These include the company's substantial scale, global brands
with refreshed product offerings, leading market share,
diversified geographic markets, lengthened debt maturities and
continuing solid liquidity profile. Scores for those
qualitative attributes would normally track to a higher
Corporate Family rating.
However, the B1 rating also considers Goodyear's substantial
leverage, low EBIT returns and weak coverage ratios, which were
affected by the recent strike in North America as well as
un-recouped raw material costs and weak replacement tire demand
in that region. Scores from these factors counter qualitative
strengths and position the overall rating in the high B
category.
Nonetheless, debt levels should crest during 2007 and leverage
measurements should begin to decline as savings are realized
from an improved cost structure, rationalized manufacturing
footprint, pricing actions, and ultimate recovery in unit demand
in the critical North American tire market.
The pending sale of its Engineered Products business for
US$1.475 billion could also provide substantial capacity for the
company's pension contributions and potential contributions to a
VEBA trust, which would address union retirement health care
liabilities.
"The change in outlook reflects several positive trends which
should develop over the intermediate term," said Ed Wiest, VP
and Senior Analyst at Moody's.
"Among these are resumption of modest growth in replacement tire
demand in select North American markets, improved cost structure
and operating flexibility in the region following resolution of
its labor contract, and higher global utilization rates in its
manufacturing footprint over the next 12 months as
rationalization efforts are completed."
In addition, Goodyear should benefit from healthier margin
realization upon pricing actions, introduction of new tire
models, and moderation in raw material costs. The company may
fund up to US$1 billion into a VEBA structure for its post
retirement obligations to hourly employees in the United States
in 2007. Additionally, it is likely the peak in pension funding
requirements will occur in 2007 with significant declines
occurring in subsequent years.
Accordingly, Moody's would expect Goodyear's debt burden to be
lower by the end of the coming year. Stronger coverage ratios
and free cash flow metrics should emerge in the second half of
2007.
The Speculative Grade Liquidity rating of SGL-2 liquidity
rating, designating good liquidity over the coming year,
reflects significant internal and external resources as well as
increased flexibility in financial covenants under the
refinanced bank obligations. Although Goodyear will incur
meaningful working capital requirements as production levels
recover following the labor settlement in North America, and it
may need to fund up to US$1 billion into a VEBA for retirement
health care liabilities for its USW employees as well as US$700-
US$750 million of global pension contributions, the company
finished 2006 with roughly US$2.8 billion in un-restricted cash
pro forma for repayments under its domestic and GDTE's German
revolving credit facilities in early January.
The report of an agreement to sell its Engineered Products
business for US$1.475 billion may also add substantial liquidity
in the coming year. Upon closing of the new facilities,
Goodyear would have roughly US$1.0 billion of unused and
available capacity under its domestic revolving credit facility
and the majority of the European revolving credit facilities.
Going forward, Goodyear will have improved covenant flexibility.
The Ba1, LGD1, 4% rating assigned to the new first lien
revolving credit facility at Goodyear incorporates the benefits
of its first priority liens over substantial collateral as well
as the sizable amount of liabilities junior to its claims.
The Ba2, LGD2, 20% rating assigned to the new second lien term
loan results from its second priority claims against the
identical collateral package as well as the level of junior
capital beneath it. The higher rating and improved recovery on
the second lien facility compared to the current second lien
term loan reflects a reassessment of its collateral position
which, in turn, yielded a lower modeled deficiency claim. The
Ba1, LGD1, 4% rating assigned to the European facilities of GDTE
recognizes the benefits of liens over substantially all tangible
and intangible assets in the borrowing and guaranteeing group of
GDTE entities.
Ratings assigned:
* Goodyear Tire & Rubber Company
-- US$1.5 billion first lien revolving credit facility,
Ba1, LGD1, 4%
-- US$1.2 billion second lien term loan, Ba2, LGD2, 20%
* Goodyear Dunlop Tyres Europe B.V. and certain subsidiaries
-- EUR505 million of first lien revolving credit
facilities, Ba1, LGD1, 4%
Ratings changed:
* Goodyear Tire & Rubber Company
-- Outlook, to positive from stable
Ratings affirmed and applicable Loss Given Default Assessments:
* Goodyear Tire & Rubber Company
-- Corporate Family Rating, B1
-- Probability of Default, B1
-- third lien secured term loan, B2 with LGD assessment
changed to LGD4, 59% from LGD4, 63%
-- 11% senior secured notes, B2 with LGD assessment
changed to LGD4, 59% from LGD4, 63%
-- floating rate senior secured notes, B2 with LGD
assessment changed to LGD4, 59% from LGD4, 63%
-- 9% senior notes, B2 with LGD assessment changed to
LGD4, 59% from LGD4, 63%
-- 8 5/8 % senior unsecured notes due 2011, B2 with LGD
assessment changed to LGD4, 59% from LGD4, 63%
-- floating rate unsecured note due 2009, B2 with LGD
assessment changed to LGD4, 59% from LGD4, 63%
-- 6 3/8% senior notes, B3, LGD6, 94%
-- 7 6/7% senior notes, B3, LGD6, 94%
-- 7% senior notes, B3, LGD6, 94%
-- senior unsecured convertible notes, B3, LGD6, 94%
Speculative Grade Liquidity rating, SGL-2
The last rating action was on Jan. 10, 2007, at which time
Goodyear and GDTE ratings were affirmed and the outlook was
changed to stable from negative. Upon closing of the new
facilities, ratings on Goodyear's existing first and second lien
facilities will be withdrawn as will the ratings on GDTE's
existing bank credit facilities.
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.
NORTEL NETWORKS: Closes US$1.15-Billion Senior Notes Offering
-------------------------------------------------------------
Nortel Networks Corporation closed the offering of US$1.15
billion aggregate principal amount of senior unsecured
convertible notes 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.
As previously disclosed, the Notes issued by the Company consist
of US$575 million principal amount of Senior Convertible Notes
due 2012 and US$575 million of Senior Convertible Notes due
2014, which principal amounts include Notes issued pursuant to
the exercise in full of the over-allotment options granted to
the initial purchasers. The 2012 Notes pay interest semi-
annually at a rate per annum of 1.75% and the 2014 Notes pay
interest semi-annually at a rate per annum of 2.125%. The Notes
are fully and unconditionally guaranteed by the Company's
principal direct operating subsidiary, Nortel Networks Limited,
and initially guaranteed by the Company's indirect subsidiary,
Nortel Networks Inc. The Notes are senior unsecured obligations
and will rank pari passu with all other senior obligations of
the Company.
The 2012 Notes and 2014 Notes are each convertible into common
shares of the Company at any time based on an initial conversion
rate of 31.25 common shares per US$1,000 principal amount of
Notes, in each case subject to adjustment in certain events.
The Company expects that the net proceeds from the sale of the
Notes will be approximately US$1.125 billion 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 - Asia Pacific on
Mar. 26, 2007, 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.
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.
This rating was assigned:
Nortel Networks Corporation
* Proposed US$1.0 billion Convertible Senior Unsecured
notes (guaranteed by Nortel Networks Limited) -- B3,
LGD4, 67%
These 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%
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: Selected to Deploy 4G and Satellite Broadband Trial
-----------------------------------------------------------
Mobile Satellite Ventures, L.P., one of North America's leading
providers of mobile satellite communications services, will
deploy what is believed to be the first integrated 4G and
satellite broadband trial powered by Nortel Networks' mobile
WiMAX and IMS technologies.
The hybrid satellite-terrestrial trial was disclosed at CTIA
Wireless 2007, the industry's premier wireless event.
MSV is designing a next-generation integrated network,
incorporating the benefits of both terrestrial and satellite
wireless communications systems, for customers across the United
States and Canada.
"This trial is a significant step toward next-generation
mobility," said Drew Caplan, MSV chief network officer.
"Nortel's 4G and IMS expertise will help us demonstrate our
transparency network architecture to support hybrid satellite-
terrestrial communications on the basis of a 4G broadband
platform, enabling new dimensions of service for our customers."
The trial with Nortel, which will be conducted in the Reston,
Virginia area, will initially feature high-speed wireless voice,
data and Web access, file sharing, and VoIP connectivity using
residential gateway devices and PC Cards for users in fixed and
portable modes of use. Subsequently, MSV expects to incorporate
push-to-talk, video calling, picture-caller ID, and presence
capabilities, full MSS/ATC integration, and support for a range
of mobile devices. Nortel will integrate its WiMAX and IMS
connectivity as well as devices and ASIC technology from
Kyocera, WiNetworks, and Runcom Technologies.
"Combining the FCC's and Industry Canada's ATC rulings with the
broadband capabilities of WiMAX and the service delivery
capabilities of IMS could support new telecom models, giving
players like MSV the tools to deliver the services that
consumers and enterprises want, at a palatable pricepoint," said
Peter Jarich, prinicipal analyst with Current Analysis. "Nortel
has been talking about WiMAX services in the 1.5 GHz spectrum
for some time. A trial with MSV proves out the opportunity
while giving MSV the tools to complement its existing satellite
system with a new terrestrial component, expanding wireless
services with prospectively new business models and into new
areas . . . potentially even those not covered by traditional
carriers."
"The rapid blurring of boundaries between telecom, broadcast,
and broadband is challenging the limits of traditional
communications networks and giving bold new players like MSV a
chance to get in on the game," said Peter MacKinnon, general
manager, WiMAX, Nortel. "The enablers are technologies like
WiMAX and IMS through which broadband, video and voice services
can be seamlessly delivered -- from the desktop, to the living
room, and out into the community. Now, the sky's the limit with
MSV adding satellite to the mix."
Nortel equipment used in the trial will include WiMAX base
stations and terminals, ancillary cell site gear, an IP core
network, signaling equipment, authentication servers, media
gateways, optical transport and IMS core elements. In addition,
Nortel will provide design, network management and maintenance
services from the Nortel Global Services portfolio for the
entire trial infrastructure.
MSV plans to build a next-generation integrated network, which
incorporates the benefits of both terrestrial, and satellite
wireless communications systems. MSV currently offers a range
of mobile satellite services using two geostationary satellites
that support the delivery of two-way radio, mobile data voice
and fax services to business and government subscribers across
the United States and Canada.
Nortel's 4G WiMAX and IMS innovations improve the subscriber's
communication experience and deliver the one of the highest
network performances with one of the most competitive costs per
megabit in the industry. Nortel's WiMAX technology is built on
a foundation of OFDM-MIMO, a combination of innovative
transmission and antenna technologies that maximizes spectrum to
deliver the lightning-fast speeds and high bandwidth essential
to high-quality mobile video and TV.
About MSV
MSV is developing a state-of-the-art hybrid satellite-
terrestrial communications network, which it expects will
provide seamless, transparent and ubiquitous wireless coverage
of the United States and Canada to conventional handsets. MSV
holds the first FCC license to provide hybrid satellite-
terrestrial services. MSV plans to launch two satellites for
coverage of the United States and Canada, which are expected to
be among the largest and most powerful commercial satellites
ever built. When completed, the network is expected to support
communications in a variety of areas including public safety,
homeland security, aviation, transportation and entertainment,
by providing a platform for interoperable, user-friendly and
feature-rich voice and high-speed data services. MSV is
majority owned and controlled by SkyTerra Communications, Inc.
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 - Asia Pacific on
Mar. 26, 2007, 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.
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.
This rating was assigned:
Nortel Networks Corporation
* Proposed US$1.0 billion Convertible Senior Unsecured
notes (guaranteed by Nortel Networks Limited) -- B3,
LGD4, 67%
These 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%
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.
PERTAMINA: To Increase LPG Procurement to Address Shortages
-----------------------------------------------------------
PT Pertamina (Persero) says several regions in Indonesia is
experiencing liquefied petroleum gas shortages because its
Processing Refinery Unit V in Balikpapan is undergoing an annual
scheduled maintenance, Tempo Interactive reports.
Pertamina's spokesperson said the company will increase
procurement of gas in Jakarta and the surrounding areas to 1,500
metric tons of gas each day from the normal 1,100 metric tons
per day, until conditions return to normal, according to the
report.
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.
TELKOM INDONESIA: Sets Lower Speedy Broadband Access Tariff
-----------------------------------------------------------
PT Telekomunikasi Indonesia Tbk has finally re-lowered the
tariff of Speedy broadband access after having been prevailing
months of discount through promotion program of Formula 5.
The new tariff will be effective starting April 1, 2007. The
promotion program of Formula 5 will end on March 31, 2007.
The Vice President of Public and Marketing Communication of
Telkom, Eddy Kurnia, said that Speedy's lowered tariff cannot be
separated from Telkom's commitment in keeping a hard effort for
delivering a high-speed Internet access service with affordable
price for society.
Starting April 1, 2007, Telkom will also release a speedy time-
based package, which will cost IDR200.000 per month.
About Telkom Indonesia
Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/
-- provides local and long distance telephone service in
Indonesia. Known as Telkom, the company also offers fixed
wireless service, leased lines, and data transport through
affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.
Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.
Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit ratings.
=========
J A P A N
=========
AMERICAN AIRLINES: Moody's Lifts Rating on Sr. Facility to Ba3
--------------------------------------------------------------
Moody's Investors Service raised the debt ratings of AMR
Corporation and its subsidiaries, including the corporate family
rating, to B2. Moody's also raised the ratings of most tranches
of AMR's Enhanced Equipment Trust Certificates, affirmed the
SGL-2 rating, and increased the Loss Given Default rate to 30-
LGD3 on the secured debt and to 83-LGD5 on the senior unsecured
debt. The outlook is stable.
"The rating upgrades follow meaningful improvement to the debt
protection metrics of AMR Corp. and American Airlines, Inc.
(jointly "American") after a sustained period of free cash flow
generation, including American's first full year of net profits
since 2000", said George Godlin of Moody's Investors Service.
Moody's anticipates continued gains in profits, as management
works to implement a number of planned cost saving initiatives.
American's long-term debt declined and is not expected to
increase in the near term as the company has no mainline or
regional aircraft delivering until 2013 and the company improved
the funded status of its pension plan in 2006 through excess
contributions. Management efforts are ongoing to strengthen the
balance sheet, and Moody's expects debt to be paid down during
2007 at least equal to the scheduled debt maturities of
US$1.35 billion. American has amassed a substantial cash
position (about $5.2 billion or approximately 38.7% of gross
debt), which is not likely to diminish over the near term
because of a strong revenue environment.
The company's liquidity rating was affirmed at SGL-2 reflecting
American's compliance with the terms of its financial covenants
and increased borrowing capacity as the company pays down debt
and satisfies pension plan obligations from cash from
operations. Despite the fact that a substantial portion of its
assets are encumbered, American's ratings acknowledge the
company's leadership position in the North American airline
industry and its large unrestricted cash and short-term
investments to support additional secured borrowings.
The rating could be raised further if growth in
internally-generated cash flows is sufficient to sustain EBIT to
interest greater than 2x and retained cash flow to debt greater
than 15%. Downward pressure on the ratings could occur with an
EBITDA margin lower than 15%, or if debt to EBITDA exceeds 8x or
EBIT to interest expense falls to close to 1x.
Upgrades:
* AMR Corporation
-- Probability of Default Rating, Upgraded to B2 from B3
-- Corporate Family Rating, Upgraded to B2 from B3
-- Senior Unsecured Convertible Bond, Upgraded to Caa1
from Caa2
-- Senior Unsecured Medium-Term Note Program, Upgraded to
Caa1 from Caa2
-- Senior Unsecured Regular Bond/Debenture, Upgraded to
Caa1 from Caa2
-- Senior Unsecured Shelf, Upgraded to Caa1 from Caa2
* Alliance Airport Authority, Inc.
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* American Airlines 1988-A Grantor Trust
-- Senior Secured Equipment Trust, Upgraded to B2 from B3
* American Airlines, Inc.
-- Senior Secured Bank Credit Facility, Upgraded to Ba3
from B1
-- Senior Secured Enhanced Equipment Trust, Upgraded to a
range of Ba3 to Baa1 from a range of B1 to Baa3
-- Senior Secured Equipment Trust, Upgraded to a range of
Caa1 to Baa1 from a range of Caa2 to Baa2
-- Senior Secured Regular Bond/Debenture, Upgraded to a
range of B1 to Ba1 from a range of B2 to Ba2
-- Senior Secured Shelf, Upgraded to Ba3 from B1
* Chicago O'Hare International Airport, Illinois
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Dallas-Fort Worth Intl. Airport Facility Imp. Corp.
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Secured Revenue Bonds, Upgraded to Caa1 from
Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Dallas-Fort Worth Texas, Regional Airport
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* New Jersey Economic Development Authority
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* New York City Industrial Development Agcy, New York
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Puerto Rico Ports Authority
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Raleigh-Durham Airport Authority, North Carolina
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* Regional Airports Improvement Corporation, California
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Tulsa Oklahoma, Municipal Airport Trust
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Secured Revenue Bonds, Upgraded to Caa1 from
Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
American Airlines -- http://www.AA.com/-- is the world's
largest airline. American, American Eagle and the
AmericanConnection regional airlines serve more than 250 cities
in over 40 countries with more than 3,800 daily flights.
American Airlines flies to Belgium, Brazil, Japan, among others.
The combined network fleet numbers more than 1,000 aircraft.
American Airlines is a founding member of the oneworld Alliance,
whose members serve more than 600 destinations in over 135
countries and territories.
AMR CORP: Moody's Lifts Corporate Family Rating to B2 from B3
-------------------------------------------------------------
Moody's Investors Service raised the debt ratings of AMR
Corporation and its subsidiaries, including the corporate family
rating, to B2. Moody's also raised the ratings of most tranches
of AMR's Enhanced Equipment Trust Certificates, affirmed the
SGL-2 rating, and increased the Loss Given Default rate to 30-
LGD3 on the secured debt and to 83-LGD5 on the senior unsecured
debt. The outlook is stable.
"The rating upgrades follow meaningful improvement to the debt
protection metrics of AMR Corp. and American Airlines, Inc.
(jointly "American") after a sustained period of free cash flow
generation, including American's first full year of net profits
since 2000", said George Godlin of Moody's Investors Service.
Moody's anticipates continued gains in profits, as management
works to implement a number of planned cost saving initiatives.
American's long-term debt declined and is not expected to
increase in the near term as the company has no mainline or
regional aircraft delivering until 2013 and the company improved
the funded status of its pension plan in 2006 through excess
contributions. Management efforts are ongoing to strengthen the
balance sheet, and Moody's expects debt to be paid down during
2007 at least equal to the scheduled debt maturities of
US$1.35 billion. American has amassed a substantial cash
position (about US$5.2 billion or approximately 38.7% of gross
debt), which is not likely to diminish over the near term
because of a strong revenue environment.
The company's liquidity rating was affirmed at SGL-2 reflecting
American's compliance with the terms of its financial covenants
and increased borrowing capacity as the company pays down debt
and satisfies pension plan obligations from cash from
operations. Despite the fact that a substantial portion of its
assets are encumbered, American's ratings acknowledge the
company's leadership position in the North American airline
industry and its large unrestricted cash and short-term
investments to support additional secured borrowings.
The rating could be raised further if growth in internally-
generated cash flows is sufficient to sustain EBIT to interest
greater than 2x and retained cash flow to debt greater than 15%.
Downward pressure on the ratings could occur with an EBITDA
margin lower than 15%, or if debt to EBITDA exceeds 8x or EBIT
to interest expense falls to close to 1x.
Upgrades:
* AMR Corporation
-- Probability of Default Rating, Upgraded to B2 from B3
-- Corporate Family Rating, Upgraded to B2 from B3
-- Senior Unsecured Convertible Bond, Upgraded to Caa1
from Caa2
-- Senior Unsecured Medium-Term Note Program, Upgraded to
Caa1 from Caa2
-- Senior Unsecured Regular Bond/Debenture, Upgraded to
Caa1 from Caa2
-- Senior Unsecured Shelf, Upgraded to Caa1 from Caa2
* Alliance Airport Authority, Inc.
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* American Airlines 1988-A Grantor Trust
-- Senior Secured Equipment Trust, Upgraded to B2 from B3
* American Airlines, Inc.
-- Senior Secured Bank Credit Facility, Upgraded to Ba3
from B1
-- Senior Secured Enhanced Equipment Trust, Upgraded to a
range of Ba3 to Baa1 from a range of B1 to Baa3
-- Senior Secured Equipment Trust, Upgraded to a range of
Caa1 to Baa1 from a range of Caa2 to Baa2
-- Senior Secured Regular Bond/Debenture, Upgraded to a
range of B1 to Ba1 from a range of B2 to Ba2
-- Senior Secured Shelf, Upgraded to Ba3 from B1
* Chicago O'Hare International Airport, Illinois
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Dallas-Fort Worth Intl. Airport Facility Imp. Corp.
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Secured Revenue Bonds, Upgraded to Caa1 from
Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Dallas-Fort Worth Texas, Regional Airport
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* New Jersey Economic Development Authority
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* New York City Industrial Development Agcy, New York
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Puerto Rico Ports Authority
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Raleigh-Durham Airport Authority, North Carolina
-- Revenue Bonds, Upgraded to Caa1 from Caa2
* Regional Airports Improvement Corporation, California
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
* Tulsa Oklahoma, Municipal Airport Trust
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Secured Revenue Bonds, Upgraded to Caa1 from
Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1 from
Caa2
About AMR Corp.
Forth Worth, Tex.-based AMR Corp., operates with its principal
subsidiary, American Airlines, Inc., -- http://www.aa.com/-- a
worldwide scheduled passenger airline. At the end of 2006,
American provided scheduled jet service to approximately 150
destinations throughout the world. American Airlines flies to
Belgium, Brazil, Japan, among others. The combined network
fleet numbers more than 1,000 aircraft. American Airlines is a
founding member of the oneworld Alliance, whose members serve
more than 600 destinations in over 135 countries and
territories. American is also a scheduled airfreight carrier,
providing freight and mail services to shippers throughout its
system.
Its wholly-owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines, Inc. and Executive
Airlines, Inc. and does business as "American Eagle." American
Beacon Advisors, Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
CONTINENTAL AIRLINES: Moody's Rates Class C Certificates at B1
--------------------------------------------------------------
Moody's Investors Service assigned ratings of Baa1 to the Class
A, Ba2 to the Class B and B1 to the Class C Certificates of the
Continental Airlines Pass Through Certificates, Series 2007-1.
Property of the Trust will be Equipment Notes to be issued by
Continental Airlines, Inc., which will be secured by an interest
in the aircraft being financed by this transaction
The ratings of the Certificates consider the credit quality of
Continental as obligor under the Notes, the value of the
aircraft pledged as security for the Notes, the credit support
provided by the liquidity facilities on the Class A and Class B
Certificates, and the additional structural features of the
transaction.
The ratings assigned reflect Moody's opinion of the ability of
the Pass Through Trustees to make timely payment of interest and
the ultimate payment of principal at a date no later than April
2022 for the Class A and B Certificates, which is the final
maturity date. Moody's also notes that this transaction
includes two features not found in previous Continental EETCs.
The first feature provides for cross-collateralization of the
aircraft securing the individual notes underlying the
transaction, which enhances the potential recovery for investors
in the event of default. Second, there is a revised waterfall
which, under certain circumstances could permit the Class C
Certificates to receive interest before the Class A Certificates
receive principal payments.
Any future changes in the underlying credit quality or ratings
of Continental, or material changes in the value of the aircraft
pledged as collateral, or changes in the status of the liquidity
facilities or the credit quality of the liquidity provider for
the benefit of the Class A and Class B Certificates could cause
a change in the ratings assigned.
Proceeds from the sale of the Certificates will be used to
purchase Notes to finance 10 B737-800 and 15 B737-900ER aircraft
scheduled to deliver beginning in January 2008 and ending in
September 2008. Proceeds from the Certificates will be held in
escrow until aircraft deliveries to Continental actually occur.
Until the aircraft are delivered, the Certificates will be
secured by the cash held in escrow, and the risk of the
difference between the coupon rate on the Certificates and the
investment rate on the cash held in escrow is borne by the
Depositary, Credit Suisse, to which Moody's has assigned a long
term unsecured debt rating of Aa3.
The Certificates issued to finance the aircraft are not
obligations of, nor are they guaranteed by, Continental.
However, the amounts payable by Continental under the Notes will
be sufficient to pay in full all principal and interest on the
Certificates when due. The Notes will be secured by a perfected
security interest in the aircraft. It is the opinion of counsel
to Continental, that the Notes will be entitled to benefits
under Section 1110 of the U.S. Bankruptcy Code. Under Section
1110 of the U.S. Bankruptcy Code, if Continental fails to pay
its obligations under the Notes, the collateral trustee has the
right to repossess any aircraft, which have been rejected by
Continental. The Class C Certificates rank junior in priority to
the Class B Certificates and the Class B Certificates rank
junior to the Class A Certificates
Interest on the Class A Certificates and Class B Certificates
will be supported by liquidity facilities intended to pay up to
three semi-annual interest payments in the event Continental
defaults on its obligations under the Notes. The liquidity
facilities do not provide for payments of principal due, nor are
the liquidity facilities available to the Class C Certificates.
The liquidity provider is RZB Finance LLC, the obligations of
which are guaranteed by Raiffeisen Zentralbank Oesterreich
Aktiengesellschaft, which has a Moody's short-term rating of P-
1. The liquidity provider has a priority claim on proceeds from
liquidation ahead of any of the holders of the Certificates and
is also the controlling party following default.
The ratings of all Certificates benefit from the cross
collateralization of the Notes because Moody's believes this
feature potentially enhances recovery in the event of default.
The structure provides that, in the event all aircraft are sold,
any surplus proceeds are made available to cover shortfalls due
under the Notes related to the sale of any other aircraft.
Importantly, all surplus proceeds are retained until maturity of
the financing or the indentures are cancelled. Moody's believes
expected recovery is enhanced because of the number of aircraft
that no single aircraft type comprises a substantial portion of
the equipment pool and that, while there is some correlation
between the values of the aircraft types, there is sufficient
diversity to produce a benefit given cross collateralization.
This transaction was accorded the maximum rating benefit from he
existence of cross collateralization because of the number of
aircraft and different types of aircraft.
Moody's notes that the waterfall of payments for this
transaction differs from previous Continental EETCs. The
indenture and intercreditor agreements provide that, under
certain circumstances, the Class C Certificates could receive
interest before the Class A Certificates are repaid principal.
While beneficial for the Class C Certificates, Moody's does not
believe this revised waterfall provides the same level of
certainty for full payment of interest and, particularly,
whether payment is made on a timely basis as would be the case
with a liquidity facility. Accordingly, Moody's did not provide
any lift to the ratings for this revised waterfall.
Following a default by Continental, in the case where certain
aircraft are rejected and those aircraft are sold at a loss, the
Class B Certificates and then the Class C Certificates would
receive interest based on the amount recovered through the sale
before the Class A and then Class B receives principal. The
benefit of this mechanism, in addition to receipt of some cash
payments by the Class C and the Class B Certificates, is to
ermit possibly greater recovery for the Class C Certificates
from the operation of the cross collateralization.
While there is some commonality between the 737-800 and 737-
900ER as they are both members of Boeing's 737 family of
commercial jet aircraft, they have different utility. The 737-
800 is one of the most widely accepted narrow-body aircraft
among commercial airlines, and is generally used for shorter-
range flights. The 737-900ER, a next-generation extended range
version of Boeing's 737-900 model, has longer range, more seats
and better fuel efficiency than the -800 model particularly for
longer-range flights. Production of the 737-900ER has just
started and there are only 33 orders but the utility of the
900ER should broaden its user base over time as it is a natural
replacement aircraft for certain long range aircraft now in use.
Ratings assigned:
* Continental Airlines, Inc.'s Enhanced Equipment Trust
Certificates Series 2007-1
-- Class A at Baa1
-- Class B at Ba2
-- Class C at B1
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout the Americas, Europe and
Asia. It serves 15 European cities, 7 South American cities,
Tel Aviv, Hong Kong and Tokyo. International operations are
carried out throughout Europe, Canada, Mexico, Central and South
America, Caribbean and also Tel Aviv, Hong Kong and Tokyo. More
than 400 additional points are served via SkyTeam alliance
airlines. With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
CONTINENTAL AIRLINES: S&P Assigns B+ Rating on Class C Certs.
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'A'
rating to Continental Airlines Inc.'s series 2007-1 Class A
pass-through certificates, its preliminary 'BBB-' rating to the
Class B certificates, and its preliminary 'B+' rating to the
Class C certificates.
The expected maturity for the Class A and Class B certificates
is April 19, 2022, and the expected maturity for the Class C is
April 19, 2014. The final legal maturities will be 18 months
after the expected maturities for the Class A and Class B
certificates only. The issues are a drawdown under a Rule 415
shelf registration. Final ratings will be assigned upon
conclusion of a legal review of the documentation.
"The preliminary ratings are based on Continental's credit
quality, substantial collateral coverage by desirable aircraft,
and on legal and structural protections available to the
pass-through certificates," said Standard & Poor's credit
analyst Philip Baggaley.
"Proceeds of the offering are being used to acquire 10 B737-800
and 15 B737-900ER aircraft being delivered to Continental this
year and next."
The pass-through certificates are a form of enhanced equipment
trust certificate, and benefit from legal protections afforded
under Section 1110 of the federal bankruptcy code and, in the
case of the Class A and Class B certificates, by liquidity
facilities provided by RZB Finance LLC, guaranteed by Raiffeisen
Zentralbank Oesterreich. The liquidity facilities are intended
to cover up to three semi-annual interest payments, a period
during which collateral could be repossessed and remarketed
following any default by the airline. As with other EETCs, the
Class A certificates rank senior to the Class B certificates,
which in turn rank senior to the Class C certificates.
The preliminary ratings apply to a unit consisting of the
certificates and escrow receipts. The latter represents an
interest in escrow deposits, pending delivery of the aircraft
being financed. The certificates are secured by 10 B737-800 and
15 B737-900ER aircraft.
The initial loan-to-value of the Class A certificates is 47.4%,
of the Class B certificates 61.3%, and of the Class C
certificates 71.9%. The maximum loan-to-values over the life of
the certificates are slightly higher using the depreciation
assumptions in the offering memorandum.
However, Standard & Poor's uses more conservative depreciation
assumptions, so that the maximum loan-to-value is higher, about
57% for the Class A certificates, 74% for the Class B
certificates, and 77% for the Class C certificates. The notes
secured by aircraft are cross-collateralized, which is not
typical in a EETC. This provides some added protection, because
a shortfall in value realized on one repossessed plane could be
offset by better realization on other aircraft.
The 'B' corporate credit rating on Continental Airlines reflects
its participation in the high-risk airline industry and a heavy
debt and lease burden, but also better-than-average operating
performance among its peer large U.S. hub-and-spoke airlines.
Continental, the fourth-largest U.S. airline, serves markets
mainly in the southern and eastern U.S. from hubs at Houston;
Newark, N.J.; and Cleveland, Ohio. International routes serve
the central Pacific, selected Asian destinations, Latin America,
and Europe.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout the Americas, Europe and
Asia. It serves 15 European cities, 7 South American cities,
Tel Aviv, Hong Kong and Tokyo. International operations are
carried out throughout Europe, Canada, Mexico, Central and South
America, Caribbean and also Tel Aviv, Hong Kong and Tokyo. More
than 400 additional points are served via SkyTeam alliance
airlines. With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
FONIX CORP: BroadRiver Buys Assets of Fonix Telecom and LecStar
---------------------------------------------------------------
BroadRiver, Inc., has acquired substantially all of the assets
of Fonix Corp.'s subsidiaries, LecStar Telecom Inc. and its
affiliate Fonix Telecom Inc., pursuant to Section 363(b) of the
United States Bankruptcy Code.
The transaction was approved by the U.S. Bankruptcy Court for
the District of Delaware.
As part of the transaction, BroadRiver will receive all of
LecStar and Fonix Telecom's intellectual property including its
trademarks, domains and technology portfolio. BroadRiver is not
assuming any of LecStar and Fonix Telecom's liabilities.
LecStar Telecom, Inc. and Fonix Telecom Inc., both facilities-
based telecom providers in Georgia, filed for bankruptcy
protection on Oct. 2, 2006, pursuant to Chapter 7 under the
United States Bankruptcy Code.
"The acquisition of the LecStar and Fonix Telecom assets will
help BroadRiver accelerate our deployment of a new business
class, SIP-based Voice over Internet Protocol expanded service
offering from our new 15,000 sq. ft. managed data center in
Atlanta," Gregory P. McGraw, President & Chief Executive Officer
of BroadRiver, Inc., said. "These newly acquired technology
assets will also provide greater redundancy and bundled service
capabilities already built into our network infrastructure for
our customers throughout the Southeast. Consistent with our
growth strategy, we will continue to aggressively pursue
expansion opportunities locally and through acquisitions
regionally."
Based in Salt Lake City, Utah, Fonix Corporation (OTCBB: FNIX)
-- http://www.fonix.com/-- is an innovative speech recognition
and text-to-speech technology company that provides value-added
speech solutions through its wholly owned subsidiary, Fonix
Speech, Inc. Interactive speech technologies allow Fonix to
provide customers with comprehensive cost-effective solutions to
enhance and expand their communications needs. The company has
offices in Maynard, Massachusetts and Japan.
Fonix Corporation's telecom subsidiaries, LTEL Holdings, Inc.,
LecStar DataNet, Inc., LecStar Telecom, Inc. and Fonix Telecom,
Inc. filed for bankruptcy protection on Oct. 2, 2006 in Delaware
pursuant to Chapter 7 under the U.S. Bankruptcy Code. A trustee
has been appointed to liquidate the assets of those entities.
Going Concern Doubt
Hansen, Barnett & Maxwell, the Company's auditor, expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's balance sheet for the
year ending Dec. 31, 2005. The auditor pointed to the Company's
significant losses; negative cash flows from operating
activities for three years; and negative working capital.
MITSUBISHI MOTORS: Releases February Production & Sales Results
---------------------------------------------------------------
On March 28, 2007, Mitsubishi Motors Corporation announced
global production, as well as domestic sales and export results
for February 2007.
Total global production came in at 114,724 units, 95.4% of last
year's figure. Japanese production increased 6.0% year-on-year
to 73,821 units, marking the fifth consecutive month of year-on-
year growth due to increase in production volume of new
Outlander and new Pajero models for overseas markets and new
Delica D:5 model for Japanese market.
Vehicle sales in Japan totaled 22,320 units, a 17.8% decline
year-on-year. Registered vehicles charted sales of 8,552 units,
106.4% of the year-ago figure. Mini-car sales declined to
13.768 units, 72.0% year-on-year. Total sales for passenger
cars were 83.7% year-on-year to 17,311 units, and commercial
vehicle sales were 5,009 units, 77.5% of the same period last
year.
Overseas production totaled 40,903 units, 80.8% of the year-ago
figure. European production came in at 4,984 units or 95.8% of
the last year's figure. North American production reached 6,650
units, 95.1% of the level seen last year. Asian production
totaled 25, 698 units, a 25.6% decline from February 2006's
levels, representing continued weakness in Asian markets such as
Malaysia and Taiwan, where the economies are in long-term
stagnation.
Total exports from Japan increased to 41,029 units, 146.7% of
the year-ago level, marking the fourth consecutive month of
year-on-year volume increase. Exports to Europe increased to
13, 439 units, 129.8% of last year's figure due to continued
favorable demand of new Pajero and new Outlander models.
Exports to Asia came to 3,651 units, a 26.4% increase over the
last-year period due to good sales of Lancer model in Singapore,
Grandis and Outlander models in China. Exports to North America
rose to 7,458 units, 320.1% of the February 2006 levels due to
increase in export of new Outlander model and New Lancer models.
For full details on Mitsubishi Motors' Production, Sales and
Exports for February 2007 please visit:
http://media.mitsubishi-motors.com/pressrelease/e/corporate/detail1609.html
About Mitsubishi Motors
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.
The company also operates consumer-financing services and
provides this to its customer base. MMC adopted the "Mitsubishi
Motors Revitalization Plan" on Jan. 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company. The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."
The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia. Its
products are sold in over 170 countries.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
Sept. 29, 2006, Standard & Poor's Ratings Services raised its
long-term corporate credit and senior unsecured debt ratings on
Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in
the company's revitalization efforts and reduced downside risks
in its earnings and financial profile. S&P said the outlook on
the long-term rating is stable.
As reported by the Troubled Company Reporter - Asia Pacific on
Aug. 4, 2006, Rating & Investment Information Inc. has
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.
As reported by the Troubled Company Reporter - Asia Pacific on
July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook. The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.
SAPPORO HOLDINGS: Asahi Snubs Proposal to Rescue Sapporo
--------------------------------------------------------
The management of Asahi Breweries Ltd. has rejected a
shareholder's proposal to rescue Sapporo Holdings Ltd., which is
seeking to defend itself against a buyout bid by U.S. investment
fund Steel Partners Japan Strategic Fund L.P., The Japan Times
reports.
"Although we are ready to consider a merger and acquisition to
grow, we will not consider doing so if the relevant party is a
domestic alcoholic business entity," The Times quotes Asahi
board member Kazuo Motoyama as addressing a shareholders meeting
on Tuesday.
According to the report, that was Mr. Motoyama's response to a
proposal by an Asahi shareholder for management to bail out
Sapporo Holdings if it seeks Asahi's help.
However, The Times notes, Mr. Motoyama explained to the
investors that Asahi's "midterm business program does not
presuppose that [Asahi] may tie up with Sapporo Holdings."
On Feb. 17, Asahi President Hitoshi Ogita said that the company
has no plans to conduct business and capital tie-ups with
Sapporo, saying it cannot expect to have synergy effects from
such a deal, The Times recounts.
As stated in earlier media reports, Steel Partners had announced
a buyout bid for Sapporo, which raised speculation that Asahi
may step forward as a white knight and come to Sapporo's rescue.
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.
US AIRWAYS: Completes US$1.6-Bil. Debt Refinancing Transaction
--------------------------------------------------------------
US Airways Group, Inc., has completed a US$1.6 billion debt
refinancing transaction. The new loan, which was arranged by
Citigroup Global Markets Inc. and Morgan Stanley Senior Funding,
Inc., as joint lead arrangers, will bear interest at LIBOR plus
2.5%.
The applicable margin is reduced as the loan is paid down or as
the company's credit rating improves. It can be low as LIBOR
plus 2% if the loan balance is under US$600 million or the loan
facility credit rating, as determined by Moody's Investor
Services which assigned a 'Ba3' rating and Standard & Poor's
which assigned a 'BB-' rating.
The term of the loan is seven years with substantially all of
the principal amount payable at maturity. The loan requires the
company to maintain a minimum level of unrestricted cash and a
minimum collateral coverage ratio.
The refinancing improves liquidity over the next seven years by
reducing principal payments and lowering near-term interest
expense. Upon funding, the company extinguished two separate
debt facilities: (i) a US$1.25 billion senior secured credit
facility, and (ii) a US$325 million unsecured debt facility.
The additional US$25 million will be used for general corporate
purposes. The new loan will reduce the blended interest margin
by over 100 basis points.
The refinancing will reduce the company's debt amortization by
US$92 million annually from 2008 to 2010 and US$1.234 billion in
2011. In addition, interest expense will be reduced by
US$14 million in 2007 and US$13 million in 2008.
"The company is pleased with the outcome of this refinancing,"
Senior Vice President and Chief Financial Officer Derek Kerr
said. "The refinancing enables the company to continue to
strengthen its balance sheet as the company works to complete
its integration and meet its primary objectives of reducing
borrowing costs, deferring debt maturities and reducing its
covenant package. Completing this transaction provides further
evidence of the financial market's confidence in the new US
Airways."
About US Airways
Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.
The company and its affiliates filed for chapter 11 protection
on Aug. 11, 2002 (Bank. E.D. Va. Case No. 02-83984). Under a
chapter 11 plan declared effective on March 31, 2003, USAir
emerged from bankruptcy with the Retirement Systems of Alabama
taking a 40% equity stake in the deleveraged carrier in exchange
for US$240 million infusion of new capital.
US Airways and its subsidiaries filed their second chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the company's
second bankruptcy filing, it listed US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts. The Debtors'
chapter 11 plan for its second bankruptcy filing became
effective on Sept. 27, 2005. The Debtors completed their merger
with America West on the same date.
On March 31, 2006, the Court entered a final decree closing the
chapter 11 cases of four affiliates. Only US Airways, Inc.'s
chapter 11 case remains open.
US Airways (NYSE: LCC) and America West's merger created the
fifth largest domestic airline employing nearly 35,000 aviation
professionals. US Airways, US Airways Shuttle and US Airways
Express operate approximately 3,800 flights per day and serve
more than 230 communities in the U.S., Canada, Europe, the
Caribbean and Latin America. US Airways is a member of Star
Alliance, which provides connections for our customers to 841
destinations in 157 countries worldwide.
US Airways has operations in Australia, China, Costa Rica,
Japan, Philippines, and Spain, among others.
US AIRWAYS: Pilots Protest Management's Negotiating Tactics
-----------------------------------------------------------
As negotiations for a single pilot contract continue to drag on
after a year and a half, the pilots of US Airways Group Inc. and
America West Inc. are demonstrating their frustration with US
Airways management's behavior at the bargaining table and the
airline's deteriorating operations by picketing on March 27,
2007, at the Pittsburgh International Airport.
The pilot groups, both of whom are represented by the Air Line
Pilots Association, Int'l, have been waiting for US Airways'
management to put forward proposals that reflect US Airways'
successful position in the industry, rather than insisting on
cramming down bankruptcy- driven proposals that were put in
place so that the company could survive after the post-9/11
industry downturn.
Instead, US Airways CEO Doug Parker is repeatedly stating to
both pilots and the media that he will continue to "just say no"
at the negotiating table, contending that the pilots are
overreaching during talks, although management is using over-
inflated dollar amounts to make these claims.
US Airways management is also unfairly demanding that the pilots
shoulder the burden of the costs incurred by the US Airways and
America West merger. Instead of US Airways assuming the costs
of equalizing pre-merger pay and benefits, as management
proposed in the failed take-over attempt of Delta Air Lines,
they are trying to shift the associated merger costs to the
pilots at the negotiating table, further exaggerating the
differences at the table.
"Whether management is publicly whitewashing their operational
issues or the ongoing pilot negotiations, the US Airways pilots
will not stand idly by and let their investments go
unrecognized," Captain Jack Stephan, US Airways MEC Chairman,
said. "We're not paying for management's continuing operational
blunders, and we're not paying for the cost of integrating two
airlines. That's their responsibility, and any attempts to pass
those costs off onto the pilots, who gave up billions to save US
Airways, will end in failure. Perhaps it's time for management
to begin promoting a realistic business plan instead of
expecting the pilots to subsidize their operations."
"It is time for our former America West management to step up
and recognize the value of our contribution in making this
merger work thus far," Captain John McIlvenna, America West
Chairman, said. "But, our patience is running very thin. Our
pilots will not stand for the continued attacks on their work
rules and benefits, and they demand a contract that is fair and
equitable and in line with our very profitable airline."
A single contract would be a significant step toward completing
the US Airways-America West merger and combining the two
airlines, making it easier for both US Airways to manage its
operational problems and for the passengers traveling on US
Airways.
Founded in 1931, Air Line Pilots Association, International --
http://alpa.org/-- represents 60,000 pilots at 40 airlines in
the U.S. and Canada.
About US Airways
Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.
The company and its affiliates filed for chapter 11 protection
on Aug. 11, 2002 (Bank. E.D. Va. Case No. 02-83984). Under a
chapter 11 plan declared effective on March 31, 2003, USAir
emerged from bankruptcy with the Retirement Systems of Alabama
taking a 40% equity stake in the deleveraged carrier in exchange
for US$240 million infusion of new capital.
US Airways and its subsidiaries filed their second chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the company's
second bankruptcy filing, it listed US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts. The Debtors'
chapter 11 plan for its second bankruptcy filing became
effective on Sept. 27, 2005. The Debtors completed their merger
with America West on the same date.
On March 31, 2006, the Court entered a final decree closing the
chapter 11 cases of four affiliates. Only US Airways, Inc.'s
chapter 11 case remains open.
US Airways (NYSE: LCC) and America West's merger created the
fifth largest domestic airline employing nearly 35,000 aviation
professionals. US Airways, US Airways Shuttle and US Airways
Express operate approximately 3,800 flights per day and serve
more than 230 communities in the U.S., Canada, Europe, the
Caribbean and Latin America. US Airways is a member of Star
Alliance, which provides connections for our customers to 841
destinations in 157 countries worldwide.
US Airways has operations in Australia, China, Costa Rica,
Japan, Philippines, and Spain, among others.
=========
K O R E A
=========
ARROW ELECTRONICS: Launching Share Repurchase Program in Q2 2007
----------------------------------------------------------------
Arrow Electronics Inc. will initiate share repurchases in the
second quarter under their previously announced buyback program.
In 2006, the company announced the approval by its board of
directors of a program to repurchase up to US$100 million of
common stock. The company has entered into a Rule 10b5-1 plan
to facilitate repurchases under the program.
The share repurchase program was authorized for the purpose of
replenishing some of the shares of common stock issued upon the
exercise of stock options. The objective of the program is to
minimize earnings per share dilution caused by the issuance of
such shares. As such, the company expects to finance the
repurchases with cash received from the exercise of options in
the previous quarter.
About Arrow Electronics
Headquartered in Melville, New York, Arrow Electronics
-- http://www.arrow.com/-- provides products, services and
solutions to industrial and commercial users of electronic
components and computer products. Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.
The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.
* * *
Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating. The rating
outlook is positive.
ARROW ELECTRONICS: Moody's Affirms Low B Provisional Ratings
------------------------------------------------------------
Moody's Investors Service affirmed the (P)Ba1, (P)Ba2 and
(P)Baa3 Shelf Registration Ratings to Arrow Electronics, Inc.'s
subordinated, preferred, and senior unsecured stocks
respectively.
Moody's also affirmed the Baa3 senior long-term debt rating of
Arrow Electronics and revised the outlook to positive from
stable.
These ratings were affirmed:
-- Senior unsecured debt at Baa3
-- Shelf registration for senior unsecured, subordinated,
and preferred stock at (P)Baa3, (P)Ba1 and (P)Ba2,
respectively
"The positive outlook reflects Moody's expectation that Arrow's
operating performance will continue to benefit from the secular
outsourcing trend underway in the semiconductor space, favorable
product mix, an expanded line card from recent acquisitions and
increasing geographic diversity that collectively support
operating margins above 4%," Moody's Vice President & Senior
Analyst Gregory Fraser said. "The positive outlook also
onsiders realized operating efficiency improvements that have
resulted in sustained operating margin and Return On Assets
expansion, improved credit protection measures, higher gross
cash flow levels and an enhanced business model that has the
propensity to deliver operating margin stability and consistent
levels of positive free cash flow especially during periods of
industry weakness."
Moody's expects Electronics to continue to maintain focused on
balance sheet de-leveraging via free cash flow generation
targeted towards debt reduction and/or higher operating cash
flow.
The outlook revision also recognizes the company's improved
operating leverage and enhanced market position as the leading
distributor of enterprise product solutions for both IBM and
Hewlett-Packard following the planned acquisition of the
Agilysys KeyLink Systems Group. It is Moody's understanding
that the US$485 million Agilysys KeyLink acquisition will be
funded through a combination of debt and cash. Although debt
will increase, the purchase is not expected to materially weaken
Arrow Electronics' credit protection measures and internal
liquidity given the additive cash flow from Agilysys KeyLink.
The positive outlook considers the company's de-leveraging track
record and reflects Moody's expectations that free cash flow
will be used to reduce debt incurred for the Agilysys KeyLink
acquisition with leverage migrating to a range of 1.6x to 2.2x
(Moody's adjusted).
Moody's could upgrade the rating if the company continues to
demonstrate:
(i) improvement in revenue and margin enhancement with
Moody's adjusted operating margins in the 4.2-4.7% range
and ROA (NPATBUI/average assets) in the 6-7% range;
(ii) sustained progress in improving operating performance;
(iii) evidence of acquisition synergies;
(iv) improvement in financial leverage to a range of 1.6x
to 2.2x (Moody's adjusted) via reduction of acquisition-
related debt and/or higher operating cash flow leading
to EBIT to interest above 6x (Moody's adjusted);
(v) evidence of high levels of retained cash flow to debt
of at least 30% (Moody's adjusted); and
(vi) stability in free cash flow generation, muting the
inherent volatility of the semiconductor and computer
products cycles.
About Arrow Electronics
Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- provides products, services and
solutions to industrial and commercial users of electronic
components and computer products. Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.
The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.
CURON INC: Appoints Seo Myoung Hwan as New Co-CEO
-------------------------------------------------
Curon Inc. appointed Seo Myoung Hwan as its new Co-Chief
Executive Officer, effective March 28, 2007, Reuters Key
Developments reports.
Reuters says that Kim Seh Il will also continue his duty as Co-
CEO.
* * *
Seoul-based Curon Inc. -- http://www.curon.co.kr/-- provides
diaphragms, vaporizers and Video On Demand (VOD) servers. The
company has three main products: (1) diaphragms and vaporizers,
which are used in gas meters, speakers, automobiles, medical
applications, heavy machinery, industrial valves and pumps; (2)
VOD servers such as StreamXpert, which supply High Definition
Television (HDTV) multimedia content; and (3) Telematics, which
are used in entertainment, games, digital multimedia players,
traffic information, satellites, digital versatile discs (DVDs),
TVs and radios.
Korea Ratings gave Curon Inc.'s US$10 million convertible bond a
'B-' rating with a stable outlook on Feb. 22, 2007.
DURA AUTOMOTIVE: Banner & Witcoff Okayed as Special IP Counsel
--------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Dura Automotive Systems Inc.
and its debtor-affiliates to hire Banner & Witcoff, Ltd., as
special counsel in matters of intellectual property advice,
protection and enforcement, nunc pro tunc to Dec. 21, 2006.
David L. Harbert, Dura Automotive Systems, Inc.'s chief
financial officer, relates that since April 15, 1992, Banner &
Witcoff provided legal services to the Debtors primarily for the
purpose of filing and enforcing their patents and other
intellectual property. During that time, on behalf of the
Debtors, Banner & Witcoff prepared and prosecuted numerous
patents to issuance by the United States Patent Office and has
prosecuted issued or still pending corresponding foreign
patents. In addition, Banner represented the Debtors in a
number of patent litigation matters.
Banner & Witcoff has also represented the Debtors in trademark
matters, including filing applications for new federal trademark
registrations, maintaining existing registrations and evaluating
possible trademark infringement actions against third parties,
Mr. Harbert informs the Court.
Banner & Witcoff has worked closely and continuously with the
Debtors' current in-house intellectual property counsel, Dean B.
Watson, Esq., and each of his two predecessors. In the course
of that representation, Banner has become familiar with the
Debtors, their businesses, personnel and various intellectual
property practices and policies, including aspects of their
corporate structure and history. Banner has also become
familiar with many of the Debtors' most important products and
customers, in addition to their financial situation and overall
business objectives.
According to Mr. Harbert, Banner & Witcoff represents the
Debtors in two significant ongoing patent enforcement projects:
(a) the enforcement of at least two patents owned by the
Debtors covering sliding window assemblies for motor
vehicles against a competitor -- an urgent and
significant action, and the most significant matter for
which special counsel status is now sought; and
(b) an ongoing evaluation of possible enforcement actions
against infringers of the Debtors' trademark and other
rights, including against importers, distributors and
sellers of trailer couplers.
Banner & Witcoff also represents the Debtors in approximately
80 pending or planned patent applications, which includes
necessary corporate, commercial, intellectual property,
litigation, or trade-related legal services.
Mr. Harbert relates that the Debtors originally included Banner
& Witcoff in the list of ordinary course professionals submitted
to Court on Oct. 30, 2006. Pursuant to the OCP Order dated
Nov. 21, 2006, the fees paid to ordinary course professionals by
the Debtors may not exceed US$25,000 per month on a average over
a rolling two-month period while the Chapter 11 cases are
pending.
The Debtors expect that Banner & Witcoff's fees in relation to
the Slider Patent Enforcement Action and other intellectual
property matters will exceed the OCP Cap, thus, they are filing
the Application.
The Debtors sought to retain Banner & Witcoff to continue their
representation of the Debtors in the matters of intellectual
property, and to advise the Debtors and their boards of
directors with respect to those issues.
As special counsel, Banner & Witcoff will be involved in the
bankruptcy and reorganization issues as they relate to
intellectual property aspects of the Debtors' operations, but
will not serve as the primary bankruptcy and reorganization
counsel to the Debtors.
The Debtors maintain that Banner & Witcoff's services will
complement, rather than duplicate, those of their reorganization
co-counsel, Kirkland & Ellis LLP, and Richards, Layton & Finger,
P.A.
Banner & Witcoff will be paid on an hourly basis, plus
reimbursement of its actual, necessary expenses.
Banner & Witcoff's current hourly rates are:
Professional Hourly Rate
------------ -----------
Partners US$268 to US$593
Associates US$210 to US$265
Para-professionals US$105 to US$175
Other professionals US$180 to US$285
Frederic M. Meeker, Esq., a partner at Banner & Witcoff, attests
that his firm:
(a) has not received any promises as to compensation in
connection with the Debtors' Chapter 11 cases other than
in accordance with the provisions of the Bankruptcy Code;
(b) has no agreement with any other entity or person to
share:
* any compensation it has received or may receive for
services rendered in connection with the cases; or
* any compensation another entity or person has
received or may receive for services rendered in
connection with these Reorganization Cases.
About DURA Automotive Systems Inc.
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North merican, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia, namely in
China, Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that Fitch Ratings placed one tranche from one
public collateralized debt obligation and one tranche from
a private CDO on Rating Watch Negative following Dura Automotive
Corp.'s bankruptcy filing.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
* * *
The Debtors filed for chapter 11 protection on October 30, 2006
(Bankr.District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP, are the
Debtors' lead counsel.. Mark D. Collins, Esq., Daniel J.
DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards
Layton & Finger, P.A., are the Debtors' co-counsel. Baker &
McKenzie acts as the Debtors' special counsel. Togut,
Segal & Segal LLP is the Debtors' conflicts counsel. Miller
Buckfire & Co., LLC is the Debtors' investment banker. Glass &
Associates Inc. gives financial advice to the Debtor. Kurtzman
Carson Consultants LLC handles the notice, claims and balloting
for the Debtors and Brunswick Group LLC acts as the Corporate
Communications Consultants for the Debtors. As of July 2,
2006, the Debtors had US$1,993,178,000 in total assets and
US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
TOWER AUTOMOTIVE: Selling Assets to Cerberus Capital
----------------------------------------------------
Tower Automotive Inc. has filed a restructuring term sheet with
the United States Bankruptcy Court for the Southern District of
New York to sell substantially all of its assets through a
Chapter 11 Plan to funds and accounts to be designated by
Cerberus Capital Management, L.P.
The proposed transaction, among other things, provides for
payment in full of obligations under Tower's Debtor-in-
Possession credit facility and second lien loan facility,
assumption of the company's pensions, and certain recovery for
unsecured creditors. Tower's Unsecured Creditors Committee
supports the transaction and has signed the term sheet.
"We have accomplished a tremendous amount during the last few
years to revitalize Tower so the company can strongly compete in
today's global automotive marketplace," Kathleen Ligocki,
President and Chief Executive Officer, said. "During its
reorganization process, Tower diversified its customer
portfolio, sold non-core businesses, consolidated the North
American manufacturing footprint and negotiated settlements with
all 10 U.S.-based labor unions to drive the profitability needed
to attract new investment to the company.
"The recapitalization of the company is the last major milestone
in our restructuring process. We are excited to have the
support of an investor like Cerberus Capital Management, L.P., a
group dedicated to investing in the automotive sector for the
long term."
The term sheet anticipates Tower will file a Chapter 11 Plan by
April 20, 2007. It also specifies a marketing process under
which qualified parties may submit competing bids by June 15,
2007. If competing bids are received, the company proposes to
conduct an auction on June 21, 2007 to determine the highest and
best bid. The company would then ask the Bankruptcy Court to
confirm Tower's Plan and approve a transaction on June 22, 2007,
with a closing to occur by July 31, 2007.
About Tower Automotive
Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components. The company has operations in Korea, Spain and
Brazil.
The Company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts. Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors. When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.
TOWER AUTOMOTIVE: Hikes Due Diligence Amount to Over US$3.2 Mil.
---------------------------------------------------------------
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York,
notifies the United States Bankruptcy Court for the Southern
District of New York that Tower Automotive Inc. and its debtor-
affiliates have decided to increase the Due-Diligence Amount --
the amount the Debtors may pay to prospective equity investors
and lenders -- up to US$3,225,000.
The Increase of the Due-Diligence Amount from US$2,000,000 to
US$3,225,000 was made:
* with the consent of the Official Committee of Unsecured
Creditors; and
* pursuant to the Dec. 21, 2006, order issued by Judge
Gropper authorizing the Debtors to increase payments upon
notice to the Court.
About Tower Automotive
Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components. The company has operations in Korea, Spain and
Brazil.
The Company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts. Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors. When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.
TOWER AUTOMOTIVE: Wants Until July 31 to Decide on Leases
---------------------------------------------------------
Tower Automotive Inc. and its debtor-affiliates ask the
Honorable Allen L. Gropper of the United States Bankruptcy Court
for the Southern District of New York to further extend the time
by which they must assume or reject their unexpired non-
residential real property leases through and including July 31,
2007.
Anup Sathy, Esq., at Kirkland & Ellis LLP, in Chicago, relates
that the Debtors are party to more than 18 major facility lease
agreements, including leases for office space locations and key
production centers. The Debtors are current on all post
petition obligations under the unexpired Leases, Mr. Sathy
relates.
The Leased Facilities will factor heavily into the Debtors'
ongoing operational restructuring, Mr. Sathy notes.
According to Mr. Sathy, the Debtors have already made
significant progress evaluating the Unexpired Leases. As of
March 9, 2007, the Debtors have rejected nine different leases.
However, Mr. Sathy explains that while the Debtors have made
substantial progress, they remain in active negotiations with
the landlords regarding certain of the Leased Facilities and
require additional time to assume or reject the Unexpired
Leases.
The Debtors reserve their rights to evaluate whether any of the
Unexpired Leases are secured financing arrangements. Nothing
will constitute an admission that any of the contracts are
properly categorized as lease arrangements, Mr. Sathy says.
About Tower Automotive
Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer,
including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda,
Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products
include body structures and assemblies, lower vehicle frames and
structures, chassis modules and systems, and suspension
components. The company has operations in Korea, Spain and
Brazil.
The Company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts. Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors. When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.
UNITED AIRLINES: Union Coalition Demands Shared Rewards
-------------------------------------------------------
Angered that management has been enriching itself in the face of
life-changing sacrifices made on the part of workers at United
Airlines Corp., the majority of United's unionized employees
have formed the "Union Coalition at United Airlines" to demand
their fair share in the financial rewards that management
currently enjoys. Because of the sacrifices and efforts of
United's employees, United Airlines avoided liquidation during
its three-year bankruptcy.
The union leaders call on management to, among other issues,
make immediate, tangible improvements to the compensation and
success sharing program for all employees, address quality of
work-life issues, and move up Contract bargaining dates.
"The employees of United Airlines are inexorably linked to the
future and success of our airline," the Coalition said in a
statement signed by Greg Davidowich of the Association of Flight
Attendants, Lou Lucivero of the International Federation of
Professional and Technical Engineers, Jim Seitz of the Aircraft
Mechanics Fraternal Association, Craig Symons of the
Professional Airline Flight Control Association and Mark
Bathurst of the Air Line Pilots Association.
"Throughout United's bankruptcy, 'shared sacrifice' was the
mantra employees heard frequently from upper management. But
executives have failed to lead by example as employees have
watched these same individuals collect millions of dollars worth
of stock, pay raises and bonuses. On Monday, the full extent of
upper management's 2006 profit package was revealed in the Proxy
Statement filed by United. Unionized employees are outraged.
Management continues lining its pockets with millions of dollars
while its employees still struggle under the same working
agreements and wages implemented during United's bankruptcy.
Clearly, United management values the concept of 'sharing' as a
public relations tactic to extract billions of dollars in
concessions rather than a principle by which they should live
and manage. United's employees don't subscribe to management's
philosophy that sharing ends at the sacrifice stage."
Through concessions, nearly US$5.5 billion was extracted from
labor during United's stay in bankruptcy.
"The dedication, sweat and sacrifice of all United employees
have led United Airlines on the road toward sustained
profitability," the union leaders said. "Management already is
reaping the rewards of United's new found financial health. It
is time the efforts of the airline's most important stakeholders
-- the employees -- are recognized and respected. Shared
sacrifice should equal shared rewards.
"It is not unreasonable to demand our fair share in the
financial rewards that management currently enjoys. Standing
together and speaking with one voice, United Airlines' unionized
employees will work aggressively to force management to
recognize our part in transforming our airline."
Combined, the coalition's five labor unions represent more than
30,000 United employees.
About UAL Corp.
Headquartered in Chicago, Illinois, UAL Corporation (NASDAQ:
UAUA) -- http://www.united.com/-- through United Air Lines,
Inc., is the holding company for United Airlines -- the world's
second largest air carrier. The airline flies to Brazil, Korea
and Germany.
* * *
Moody's Investors Service assigned ratings in July 2006 to
United Air Lines Inc.'s Pass Through Trust Certificates, Series
2000-1: Ba3 rating to US$233,244,336 Class A-1 Certificates; Ba3
rating to US$324,913,300 Class A-2 Certificates; and B3 rating
to US$186,368,450 Class B Certificates.
===============
M A L A Y S I A
===============
PANGLOBAL BERHAD: Wants to Discuss Unit's Disposal With Tokio
-------------------------------------------------------------
PanGlobal Bhd filed an application with Bank Negara Malaysia to
commence negotiations with Tokio Marine Asia Pte Ltd for the
disposal of its entire equity in its insurance unit.
The company has been seeking to dispose its entire 99.97%
interest in PanGlobal Insurance Bhd, a general insurance
subsidiary.
On Feb. 21, 2007, the Troubled Company Reporter - Asia Pacific
reported that PanGlobal and IAG International Pty Ltd has
terminated its talks regarding the disposal.
* * *
Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.
PanGlobal is listed under Practice Note 4/2001. The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating. The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005. On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme.
PROTON HOLDINGS: Partnership Talks Hang on Government's Report
--------------------------------------------------------------
Proton Holdings may not be able to name its new strategic
partner after the end-March deadline as authorities are still
waiting for the valuation report from the tasked government
agencies, various reports relates.
Speaking before the Global Islamic Finance Forum 2007 in
Malaysia, Deputy Prime Minister Datuk Seri Najib Tun Razak said
he was not certain that Proton's partner could be named by end
of the month as the Treasury and Ministry of International Trade
and Industry, which were supposed to undertake the evaluation
process, had yet to present the findings to his committee.
The Deputy Prime Minister, however, assured that there is
nothing to worry because there will be time for the
announcement.
On March 13, 2007, the Troubled Company Reporter - Asia Pacific
reported that the Malaysian Government will stick to its March
deadline in naming Proton Holdings' strategic partner.
* * *
Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan
Otomobil Nasional Berhad or Proton Holdings Berhad --
http://www.protonedar.com.my/-- is engaged in manufacturing,
assembling, trading and provision of engineering and other
services in respect of motor vehicles and related products. Its
other activities include property development, trading of steel
and related products, engine and technologies research,
development of automotive related technologies, investment
holding, importation and distribution of motor vehicles, related
spare parts and accessories, holds intellectual property,
provides engineering consultancy, operates single make race
series and carries out specific engineering contracts. The
Group's operations are carried out in Malaysia, England,
Australia, Socialist Republic of Vietnam and the United States
of America.
Proton was reported to be among Malaysia's worst performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss. It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner. The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner, in order to boost
sales and become more competitive.
SETEGAP BERHAD: Buyers Extend Sale Purchase Agreements
------------------------------------------------------
Setegap Bhd and the buyers of its assets have mutually agreed to
extend the sale purchase agreements pursuant to the company's
proposed disposal under its reform plan.
Setegap proposes to dispose these assets:
* Approximately 62.09% Equity Interest in PPP
* 100% Equity Interests in and AI
* Landed Properties in Damansara and Serdang
According to Setegap, it obtained extensions from:
1) Alpha Positive Sdn Bhd -- the purchaser of Paving Plant
and Process(M) Sdn Bhd. The period to fulfill conditions
precedent stipulated in the sale and purchase agreement is
extended until June 28, 2007, for the proposed disposal;
2) Loong Chee Meng -- the purchaser of Asphalt Industries Sdn
Bhd -- agreed in writing to extend the period to fulfill
conditions precedent stipulated in the sale and purchase
agreement up to June 28, 2007, for the proposed disposal;
and
3) Sentanas Sdn Bhd -- the purchaser of landed properties in
Serdang -- agreed in writing to extend the period to
fulfill conditions precedent up to June 28, 2007, for the
proposed disposal of the Serdang Land.
Setegap said that the proposed disposal of landed properties in
Damansara had not been fulfilled by Jan. 31, 2007. Lee Kim Yeow
and Chee Yen Yin, the purchasers of Damansara Land, served a
notice in writing to the company for the termination of the sale
and purchase agreement in respect of proposed disposal of
Damansara Land.
* * *
Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying. The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix. The Group also
provides mechanical and electrical services, leases machinery
and investment holding.
Setegap's cash flow and profitability were affected by the Asian
financial crisis in 1997 and 1998.
Setegap Bhd's unaudited balance sheet as of Dec. 31, 2006,
showed total assets of MYR65.71 million and total liabilities of
MYR187.85 million, resulting to a shareholders' deficit of
MYR122.14 million.
TENAGA NASIONAL: Signs Contract with Renewable Power
----------------------------------------------------
Tenaga Nasional Bhd has signed a renewable power purchase
agreement to buy electricity from Renewable Power Sdn Bhd, The
Edge Daily reports.
Under the agreement, Tenaga will buy electricity from Renewable
Power for 21 years with an estimated value of about MYR2.43
million per year.
Tenaga has to date signed eight renewable power purchase
agreements with a total capacity of 39.8 MW, the Daily says.
* * *
Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad
-- http://www.tnb.com.my/-- is engaged in the generation,
transmission, distribution and sale of electricity. The Company
also manufactures, sells and repairs transformers and
switchgears. It is also involved in provision of project
management, consultancy, engineering works, contracting,
trading, risk management, risk surveys, insurance, research and
development, property management, energy project development and
investment holding services. It also undertakes repairs and
maintenance of motor vehicles. The Group operates in Malaysia
and Mauritius.
The Company is currently undertaking liability management
exercises, which are expected to extend the Company's debt
maturity profile and reduce refinancing risk.
Moody's Investors Service gave the Company a 'Ba' rating due to
its relatively high financial leverage and significant PPA
obligations.
=====================
P H I L I P P I N E S
=====================
CHIQUITA BRANDS: Shows Interim Price & Volume Data for 1st Qtr.
---------------------------------------------------------------
Chiquita Brands International Inc. provided an interim update
for the first quarter 2007, including Chiquita banana and Fresh
Express value-added salad prices and volumes for January-
February 2007 in its Banana and Fresh Cut segments.
Banana prices in the company's core European markets were down
2% year-on-year on a local currency basis (up 6 percent on a
U.S. dollar basis), reflecting the continued impact of E.U.
regulatory changes implemented on Jan. 1, 2006, which have
resulted in an increase in industry volume and price
competition. The company noted that local pricing in the AC-10
countries of Central and Eastern Europe was particularly
affected by pressure from hard discounters at the low end of the
price spectrum, while local pricing for premium-quality fruit in
the traditional EU-15 countries was essentially flat year-over-
year. The company's volume sold in its core European markets
increased by 4 percent, due to the company's ability to maintain
its position as the leading supplier in these markets as well as
recovery from weather-related disruptions in late 2005 that had
impacted supply in the first half of 2006.
North American banana pricing continued its positive trend,
albeit at a modest year-over-year rate. While base contract
prices increased, this improvement was partially offset by lower
spot-market pricing and lower year-on-year surcharges linked to
a third-party fuel price index. Banana volume sold in the
region rose 9 percent, reflecting distribution gains at several
top-25 customers as well as the company's recovery from weather-
related disruptions in the previous year.
In Asia Pacific and the Middle East, pricing rose 6 percent
year-on-year on a U.S. dollar basis, primarily as a result of
significant improvement in local pricing in Japan, partially
offset by unfavorable dollar-yen exchange rates. Volume in this
region fell by 9 percent year-over-year, primarily related to
unfavorable weather conditions in the Philippines, which
resulted in lower yields of premium-quality fruit.
In the company's trading markets, which consist primarily of
European and Mediterranean countries that do not belong to the
European Union, the increase in volume was driven by growth in
Turkey, where the company has established a year-round service
commitment in 2007.
In the Fresh Cut segment, total volume of retail value-added
salads was flat year-over-year in the two-month period. Although
January volumes rose 2 percent year-over-year, record freezing
temperatures in growing regions earlier this year limited the
supply of raw product, and as a result the industry as a whole
experienced a decline in volume in February. In addition, since
mid-September, the company's Fresh Express operations have been
impacted by consumer concerns regarding the safety of fresh
spinach and other packaged leafy greens in the United States,
despite the fact that no confirmed cases of consumer illness
were linked by the U.S. Food and Drug Administration to Fresh
Express products. Net revenue per case declined by 3 percent
year-over-year due to increased promotion activity designed to
stimulate consumer confidence in the category.
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'.
GLOBE TELECOM: Shareholders Elect 11 Board Members
--------------------------------------------------
In a filing with Philippine Stock Exchange, Globe Telecom, Inc.,
disclosed that in its annual regular meeting on March 28, 2007,
shareholders approved the election of eleven members of the
company's board of directors:
1. Jaime Augusto Zobel de Ayala II
2. Koh Kah Sek
3. Delfin L. Lazaro
4. Roberto F. de Ocampo
5. Lim Chuan Poh
6. Xavier P. Loinaz
7. Fernando Zobel de Ayala
8. Guillermo D. Luchangco
9. Gerardo C. Ablaza, Jr.
10. Jesus P. Tambunting
11. Romeo L. Bernardo
Messrs. Tambunting and Luchangco were elected as independent
directors.
Shareholders also approved the appointment of Sycip, Gorres,
Velayo & Co. as external auditors for the ensuing year.
Globe Telecom, Inc. -- http://www.globe.com.ph/-- is one of the
country's major telecommunications companies. It was
incorporated on January 15, 1935 as a traditional provider of
telex/telegram and VSAT services. Thereon, it diversified its
business into a cellular, landline and international gateway
facility services provider for long distance telephone calls.
* * *
On Nov. 3, 2006, Moody's Investors Service affirmed Globe
Telecom, Inc.'s Ba2 senior unsecured foreign currency rating and
changed its outlook to stable from negative.
Globe's foreign currency senior unsecured debt rating of Ba2 is
above the Philippines' foreign currency country ceiling of Ba3.
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 says.
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 Globe's foreign currency bond rating
and the sovereign rating.
As such, Globe'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 Globe.
PHIL. LONG DISTANCE: Annual Stockholders Meeting Set for June 12
----------------------------------------------------------------
Philippine Long Distance Telephone Co. will hold its annual
stockholders meeting on June 12, 2007, at 4:00 p.m., at Dusit
Hotel Nikko, in Makati City, Philippines, the company disclosed
in a filing with the Philippine Stock Exchange.
The agenda of the meeting includes:
-- the President's report;
-- approval of the audited financial statements for the
fiscal year ended Dec. 31, 2006; and
-- election of directors for the ensuing year.
The board of directors has fixed April 12 as the record date for
the determination of stockholders entitled to vote at the annual
meeting.
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.
RIZAL COMMERCIAL BANKING: Moody's Holds E+ Fin'l Strength Rating
----------------------------------------------------------------
Moody's Investors Service, on March 29, 2007, affirmed Rizal
Commercial Banking Corp's E+ bank financial strength rating as
well as its Ba3 senior unsecured debt, B3 preferred stock and
B1/NP long-term short-term deposit ratings. The outlook for all
ratings is stable.
The rating action was in response to management's intention to
issue additional common shares via a follow-on offering. The
share issuance will increase the bank's regulatory total capital
adequacy ratio by approximately 200 bps. Although the resulting
capital infusion would improve both RCBC's regulatory and
economic capital, the bank would still have to reduce its high
level of reported non-performing assets and related party
transactions to warrant a ratings change. RCBC had reduced its
net non-performing assets to 13% of the bank's total loans from
18% as at end 2005.
RCBC's E+ rating reflects the need to further improve its weak
asset quality. The bank's Ba3 senior debt and B1/Not Prime
long-term/short-term deposit ratings essentially reflect its
standalone financial fundamentals, but recognizes that some
support from the regulator or from its shareholder could be
available if needed.
Founded in 1960, Rizal Commercial Banking Corp is the
Philippines' eighth largest indigenous bank. The bank had
consolidated total assets of PHP223.7 billion (US$3.3 billion)
as at December 31, 2006.
=================
S I N G A P O R E
=================
APM INTERNATIONAL: Court to Hear Wind-Up Petition on April 13
-------------------------------------------------------------
United Overseas Bank Limited filed a wind-up petition against
Apm International Pte Ltd on March 12, 2007.
The High Court Of Singapore will hear the petition on April 13,
2007, at 10:00 a.m.
United Overseas solicitors' are:
Drew & Napier LLC
20 Raffles Place
#17-00 Ocean Towers
Singapore 048620
CITY INSIGHT: Court Orders Wind Up of Operations
------------------------------------------------
The High Court Of Singapore entered an order on March 16, 2007,
to wind up the operations of City Insight (S) Pte. Ltd.
The wind-up petition was filed by World Fuel Services
(Singapore) Pte Ltd.
The company's liquidator is:
M/s AsiaLegal LLC
Insolvency & Public Trustee's Office
45 Maxwell Road #05-11 & #06-11
The URA Centre (East Wing)
CKE RESTAURANTS: Income Tax Benefit Overstated by US$16 Million
---------------------------------------------------------------
CKE Restaurants Inc. overstated its "income tax benefit", by
approximately US$16 million as a result of an inadvertent
computational error, for the fiscal year ended Jan. 30, 2006.
The company reported US$137 million income tax benefit should
have been reported as approximately US$121 million. Since this
reported US$137 million income tax benefit was also a part of
reported net income, the computational error also resulted in an
overstatement of "net income" for the fiscal year ended Jan. 30,
2006 of approximately US$16 million.
The restatement will have no impact on the company's income
statements for any period other than the fiscal year ended
Jan. 30, 2006. Additionally, neither this non-cash error nor
the restatement will impact net cash flows from operations,
Adjusted EBITDA, financial performance covenants included in the
company's senior credit facility or other debt instruments,
previously reported net operating loss and tax credit carry-
forwards, the company's effective income tax rates for fiscal
2007 and thereafter or actual cash tax payments expected for the
foreseeable future.
The company said that it is not aware of any evidence that the
restatement is due to any material noncompliance by the company,
as a result of misconduct, with any financial reporting
requirements under the securities laws.
After discussion with management and KPMG LLP, the company's
independent registered public accounting firm, on Feb. 27, 2007,
the company's Audit Committee determined that, in light of the
error contained therein, the consolidated financial statements
included in the company's Annual Report on Form 10-K for the
fiscal year ended Jan. 30, 2006, should not be relied upon and
should be restated.
The inadvertent error occurred in summarizing the various
computations made to calculate the cumulative difference between
the company's book and tax bases in its fixed assets. Neither
the company's external tax advisor, the company nor KPMG
detected the error included in the company's consolidated
financial statements for the fiscal year ended Jan. 30, 2006.
The company also said that its Annual Report on Form 10-K for
the fiscal year ended Jan. 29, 2007 will include the restated
financial statements.
Management and the company's external tax advisor discovered the
error during the preparation of the company's tax provision for
the fiscal year ended Jan. 29, 2007. As a result, management's
report on internal control over financial reporting as of
Jan. 30, 2006, should not be relied upon.
The company has replaced most of the manual processes that
contributed to the prior year error with automated system-
generated reports and believes it has substantially reduced the
chance of such an error reoccurring in the future.
About CKE Restaurants
Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants. The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names. As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries -- including Singapore.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 14, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on CKE Restaurants Inc. to BB- from B+.
All ratings were removed from CreditWatch, where they were
placed on Oct. 24, 2006, with positive implications. The
outlook is stable.
However, Standard & Poor's Ratings Services affirmed the
company's loan and recovery ratings following the company's
addition of US$100 million to its US$150 million revolving
credit facility.
CKE Restaurants' Ratings List
-- Corporate credit rating, BB-, Stable;
-- Senior secured debt, BB.
CKE RESTAURANTS: S&P Rates US$320MM Revolving Facility at 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on Carpinteria, California-based CKE Restaurants
Inc. The outlook is stable.
At the same time, Standard & Poor's assigned a 'BB' rating to
CKE's US$320 million secured revolving credit facility. The
loan is comprised of a US$200 million revolver five-year loan
and a US$120 million six-year term loan. The credit facility is
rated 'BB', one notch higher than the corporate credit rating on
CKE, with a recovery rating of '1', indicating the expectation
for full recovery of principal in the event of a payment
default.
Proceeds from the loan will be used primarily to refinance the
existing credit facility and for working capital, LOCs, capital
expenditures, and general corporate purposes.
"Improved operating performance at both concepts," said Standard
& Poor's credit analyst Diane Shand, "together with a healthier
balance sheet, should offer rating stability and provide the
company with the flexibility to continue to reinvest in its
brands."
About CKE Restaurants
Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants. The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names. As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries -- including Singapore.
CKE RESTAURANTS: Moody's Rates US$200-Mil. Senior Loan at (P)Ba2
----------------------------------------------------------------
Moody's Investors Service has taken these rating actions for CKE
Restaurant, Inc.
Ratings raised are;
- Corporate family rating upgraded to Ba3 from B1
- Probability of default rating upgraded to Ba3 from B1
- US$105 million, 4.0% convertible senior subordinated
notes, due October 1, 2023, upgraded to B2 / 95% / LGD-6
from B3 / 95% / LGD-6
Ratings assigned
- US$200 million guaranteed first lien senior secured
revolver, due March 2012, rated (P)Ba2 / 31% / LGD-3
- US$120 million guaranteed first lien term loan B, due
2013, rated (P)Ba2 / 31% / LGD-3
Ratings affirmed;
- US$250 million guaranteed first lien senior secured
revolver, due May 1, 2007, rated Ba2 / 29% / LGD-2
- US$230 million guaranteed first lien term loan B, due
2009, rated Ba2 / 29% / LGD-2
The outlook is stable
The Ba3 corporate family rating reflects CKE's improved
operating performance and stronger credit metrics driven by the
relatively stable operating performance of Carl's Jr., improved
operating performance of Hardee's, lower restaurant operating
costs, and reduced debt levels, in addition to the company's
reasonable scale, multiple concepts, and diversified day part.
The ratings also recognize CKE's improved liquidity in light of
its entering into a proposed new credit facility consisting of a
six year US$120 million term loan and five year US$200 million
revolver. However, the ratings also incorporate the challenges
of continuing the turnaround at Hardee's while maintaining the
operating performance at Carl's Jr., in addition to addressing
the difficulties at La Salsa. Moody's also remains concerned
with transaction patterns at all concepts, which remain
relatively weak.
The stable outlook reflects Moody's view that the operating
performance of CKE's two core brands, Carl's Jr. and Hardee's,
should continue to improve and debt levels will be prudently
managed with debt protection metrics that would include, but not
be limited to, leverage of around 4.0x, EBIT coverage of
interest of about 2.5x, and retained cash flow to debt above 10%
on a sustained basis. The stable outlook also expects the
company will maintain adequate liquidity at all times with the
ability to fund all anticipated requirements at least 18 month
out on a continual basis. The ratings and outlook also
anticipate that the CKE's accounting restatement is limited to
the items already identified, that any deficiency in its
reporting functions have been rectified, and there will be no
delay in the filing of its public financial statements.
Moody's will withdraw its ratings on CKE's current bank credit
facility once it has been fully repaid with the proceeds from
the proposed new facility.
As is customary, Moody's ratings are subject to the receipt of
final documentation
About CKE Restaurants
Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants. The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names. As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries -- including Singapore.
DENFIELD PTE: Court Orders Wind Up of Operations
------------------------------------------------
The High Court Of Singapore has entered an order winding up the
operations of Denfield Pte Ltd.
The winding up petition was filed on March 16, 2007, by Sutarman
Sukamto.
Denfield's liquidator is:
Rajah & Tann
45 Maxwell Road #05-11/#06-11
The URA Centre (East Wing)
Singapore 069118
DONOVAN SYSTEMS: Undergoes Wind-Up Proceedings
----------------------------------------------
The High Court Of Singapore directed Donovan Systems Pte Ltd, on
March 9, 2007, to wind up its operations.
The petition was filed by Foong Mun Keong and Foong Mun Wah.
Donovan Systems' liquidator is:
The Official Receiver
45 Maxwell Road #06-11
The URA Center (East Wing)
Singapore 069118
FLEX CONSTRUCTION: Court to Hear Wind-Up Petition Today
-------------------------------------------------------
Lim Kia Khiang filed a wind-up petition against Flex
Construction Pte Ltd. on March 8, 2007.
The High Court Of Singapore will hear the petition today,
March 30, 2007, at 10:00 a.m.
Lim Kia's solicitor is:
Shyam Chew & Co
Coleman Street #05-05
The Adelphi
Singapore 179803
GOH HUP HENG: Court to Hear Wind-Up Petition Today
--------------------------------------------------
Hamptonford Singapore Pte Ltd. filed a wind-up petition against
Goh Hup Heng Electrical Pte Ltd on March 9, 2007.
The High Court Of Singapore will hear the petition today, March
30, 2007, at 10:00 a.m.
Hamptonford Singapore's solicitors are:
TSMP Law Corporation
6 Battery Road, #33-01
Singapore 049909
NEWIN CONSTRUCTION: Undergoes Wind-Up Proceedings
-------------------------------------------------
The High Court Of Singapore ordered Newin Construction Pte Ltd
on March 16, 2007, to wind up its operations.
The order was pursuant to a petition filed by Siang Hoa Holdings
Pte Ltd.
Newin Construction's liquidator is:
Rodyk & Davidson
The URA Centre (East Wing)
45 Maxwell Road #05-11/#06-11
Singapore 069118
PETROLEO BRASILEIRO: Investing BRL3.12 Billion in Santos Unit
-------------------------------------------------------------
Brazil's state oil company Petroleo Brasileiro SA's press office
told Business News Americas that the firm has allocated BRL3.12
billion for investments in UN-BS, its Santos business unit this
year.
BNamericas underscores that UN-BS was created in 2005 and is one
of Petroleo Brasileiro's new development areas. Petroleo
Brasileiro disclosed in 2006 plans to invest US$18 billion
through 2015 in five development areas that will have 14 oil and
gas production units.
The BRL3.12 billion investment includes exploration and
production assets in the Santos basin, BNamericas relates,
citing Petroleo Brasileiro.
According to BNamericas, Petroleo Brasileiro's 2007 budget
totaled BRL55 billion.
Petroleo Brasileiro told BNamericas that the Santos basin
project includes:
-- natural gas field Mexilhao's development;
-- production boost at Merluza field; and
-- the Caravela and Cavalo Marinho fields' initial
development for the start of production in 2010.
Investment in UN-BS' output for this year will be BRL2.2
billion. It will include the construction of pipelines and
natural gas-processing units, BNamericas notes, citing Petroleo
Brasileiro.
The report says that Petroleo Brasileiro's investment for
exploration this year is budgeted at BRL900 million, including
BRL580 million in recently acquired exploration blocks in the
Santos basin.
Petroleo Brasileiro told BNamericas that it will produce 30
million cubic meters per day of natural gas and 100,000 barrels
per day of oil in the Santos basin by 2011, a starting point for
future growth.
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, and 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: Signs Joint Biofuel Deal with Eni
------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras and Italian Eni S.p.A., in
a ceremony held at the Planalto Palace, in Brasilia, signed a
Memorandum of Understandings for the joint development of a set
of new biofuel production technologies. The President of the
Republic, Luiz Inacio Lula da Silva, Italy's Prime Minister,
Romano Prodi, Petrobras' Downstream director, Paulo Roberto
Costa, and Eni's CEO, Paulo Scaroni, participated in the event.
To president Lula, the agreement symbolizes a great advancement
in the biofuel area, the volume and diversity of which will grow
a lot. "Brazil's project is to increase biofuel participation
in the international energy grid."
Italy's Prime Minister, Romano Prodi, highlighted the fact that
the agreement will be a strong, powerful political instrument
for Brazil and Italy to work together in the academic and
technological areas and, as a result, to help African countries.
"And ENI will assist in the partnership process with Brazilian
companies."
Petrobras' downstream director, Paulo Roberto Costa, called
attention to the Italian technology and said Petrobras and ENI,
together, have an important mission ahead of them. "Petrobras
and ENI technicians will already start working tomorrow."
With the MOU, Petrobras and Eni seek to develop new technology
for large scale biofuel production. The joint studies are
expected to include raw material selection for refining and,
also, possible heavy oil refining improvements in Brazil.
Petrobras, which developed the technology to produce H-BIO and
created alternative possibilities for biodiesel production, Eni,
which devised a new catalytic process, and Eni Slurry
Technology, which converts heavy refining residues to
distillates, commit to:
-- Assess the possibility of establishing a strategic
alliance in countries where conditions are appropriate to
produce biofuels and to market them in the international
market;
-- Evaluate the application of EST's technology in Brazil, in
a wider-ranging partnership involving the refining and
transportation area and, also, exploration and production;
and
-- Identify the areas and the scope of technical and
viability studies to be developed in a possible
partnership, and negotiate relevant agreements aimed at
implementing projects in Brazil and in other countries.
A workgroup will be created with technicians from both companies
to supervise the studies and identify projects to be developed
in partnership. Selected projects will then be submitted to
approval by the corporations.
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, and 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: Wants 15-Year Reserves-Production Ratio
------------------------------------------------------------
Brazilian state oil company Petroleo Brasileiro SA Chief
Executive Officer Jose Gabrielli said in a televised interview
that the company is aiming for a long-term reserves-production
ratio of at least 15 years.
Petroleo Brasileiro expects that after 2015, it will have a
reserves-to-production ratio of over 15 years, including new
reserves that it will incorporate, Business News Americas
relates, citing Mr. Gabrielli.
Mr. Gabrielli told BNamericas that Petroleo Brasileiro has a
US$87-billion investment plan for 2007 to 2011. The firm aims
to reach an output rate of 3.4 million barrels of oil equivalent
per day in 2011 and 4.5 million barrels of oil equivalent per
day in 2015.
According to BNamericas, Petroleo Brasileiro is producing over
two million barrels of oil equivalent per day.
Mr. Gabrielli explained to BNamericas that the expansion takes
into account only existing reserves. Petroleo Brasileiro's
current proved reserves is at 13 billion barrels of oil
equivalent, of which 50% are yet to be developed.
"Since 2003, we have turned around a policy of reducing our
presence in oil exploration in Brazil and expanded our
exploration assets. We now have interests in exploration blocks
from the Pelotas basin [in the country's far south region] to
the north of the Amazon [Delta region]. When we discover new
oil reserves, we have to report to the regulator," Mr. Gabrielli
commented to BNamericas.
BNamericas underscores that Mr. Gabrielli also called for the
acceleration of the federal government's BRL504-billion growth
acceleration program. According to him, Petroleo Brasileiro
represents 30% of all investments outlined in the program,
especially through the construction of 4,600 kilometers of new
natural gas pipelines and the development of natural gas fields
in the country's south. The lack of local suppliers and
management of large contracts within the company are some of its
obstacles.
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, and 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.
SING HENG SHENG: Pays Final Dividend to Unsecured Creditors
-----------------------------------------------------------
The Sing Heng Sheng Traders Pte Ltd., which is in creditors'
liquidation, paid the first and final dividend to its unsecured
creditors on March 14, 2007.
Sing Heng Sheng's liquidator is:
Chan Wang Ho
Assistant Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118.
SOTHEBY'S: S&P Upgrades Corporate Credit Rating to BB+ from BB
--------------------------------------------------------------
Standard & Poor's Rating Services raised its corporate credit
and senior unsecured debt ratings on Sotheby's to 'BB+' from
'BB'. The outlook is stable. New York City-based Sotheby's had
about US$100 million of debt outstanding at Dec. 31, 2006.
The upgrade reflects substantially improved credit metrics
resulting from very strong profitability and cash flow. The
improvement stems from a burgeoning international art market.
"Our assessment of the company's credit profile," said
Standard & Poor's credit analyst John Thieroff, "has also been
bolstered by a continuation of rather conservative practices
around its complementary financial services business. Further,
we expect the company to benefit from increased buyer's premiums
on a portion of its auction sales."
About Sotheby's
Headquartered in New York City, Sotheby's Holdings, Inc.
(NYSE:BID) -- http://www.search.sothebys.com/-- is the parent
company of Sotheby's worldwide auction businesses, art-related
inancing and private sales activities. The Company operates in
34 countries, with principal salesrooms located in New York and
London. The company also regularly conducts auctions in 13
other salesrooms around the world, including Australia, Hong
Kong, France, Italy, the Netherlands, Switzerland and Singapore.
WCM BETEILIGUNGS: To Sell Stakes in Maternus-Kliniken & YMOS
------------------------------------------------------------
WCM Beteiligungs- und Grundbesitz-AG, WCM Beteiligungs- und
Verwaltungs GmbH & Co KG and WCM Beteiligungs- und Verwaltungs
GmbH concluded a preliminary agreement to sell close to a 71.5%
stake in MATERNUS-Kliniken AG and a 95% stake in YMOS AG to CURA
Kurkliniken, Seniorenwohn-und Pflegeheime Aktiengesellschaft, on
March 22.
Furthermore the stake MEDICO Grundstuecksgesellschaft mbH & Co
Bayerwald Klinik KG indirectly held by WCM Beteiligungs- und
Verwaltungs GmbH will also be sold.
In the preliminary agreement, the right to terminate the
contract in favor of the bankruptcy administrator has been
agreed. The preliminary contract is subject to approval by the
executive boards of the contracting parties.
WCM applied for insolvency on Nov. 8, 2006, as a result of the
extraordinary termination of the loan agreement by HSH Nordbank
AG. The District Court of Frankfurt (Main) opened bankruptcy
proceedings against the company on Nov. 21, 2006.
The Court will verify the claims against the company at
9:00 a.m. on April 23, at:
The District Court of Frankfurt (Main)
Hall 1
Building F
Klingerstrasse 20
60313 Frankfurt (Main)
Germany
The administrator can be reached at:
Michael C. Frege
Barckhausstrasse 12-16
60325 Frankfurt (Main)
Germany
Tel: 069/71701-300
Fax: 069/71701-40-410
About Salzgitter
Headquartered in Salzgitter, Germany, Salzgitter AG --
http://www.salzgitter-ag.de/-- is the Germany-based holding
company for a group of more than 80 domestic and international
subsidiaries active in the steel technology industry.
About WCM AG
Headquartered in Frankfurt, Germany, WCM Beteiligungs- und
Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests
in other real estate investment, management, and development
companies, as well as in the nursing homes and a packaging
maker. The group owns 80% of Klockner-Werke AG, which also
operates in Austria, Czech Republic, Denmark, France, United
Kingdom, Italy, Netherlands, Spain, Switzerland, Australia,
Brazil, India, Japan, Mexico, Russian Federation, Singapore, and
the U.S.A.
WCM has been posting consecutive annual net losses of EUR849
million in 2002; EUR315 million in 2003; EUR163 million in 2004;
and EUR44 million in 2005.
===============
T H A I L A N D
===============
ADVANCE AGRO: Posts Net Income of THB1.91 Billion for 2006
----------------------------------------------------------
For the year ended Dec. 31, 2006, Advance Agro Public Co. Ltd.
posted a net income of THB1,972,179,383, up slightly from the
THB1,909,527,823 net income the company posted for the year
ended Dec. 31, 2005.
The company's total revenues for 2006 amounted to
THB23,415,285,554, while total expenses reached
THB19,775,518,364.
The company, however, does not plan to pay out dividends.
According to a Troubled Company Reproter - Asia Pacific report
on Feb. 27, 2007, Advance Agro's board of directors proposed
that no dividends should be paid out because the company is
required to comply with the terms of the Indenture of the Bonds
maturing in November 2007.
Advance Agro Public Company Limited --
http://www.advanceagro.com/-- is a pulp and paper manufacturer
and distributor. It markets its products under the brand name
Double A. The company also distributes its products through
Double A Copy Center with over 1,500 branches in Thailand and
overseas and Double A Stationery with approximately 100 shops
nationwide. In addition, Advance Agro operates three power
plants. Headquartered in Prachinburi Province, the Company has
a branch office in Bangkok. Advance Agro is comprised of a
number of subsidiaries.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 5, 2006, that Advance Agro Public Co. Ltd. received from
Standard & Poor's Rating Services a B- rating, an upgrade from
the previous CCC rating to its US$250 million 11 percent bonds
due 2012.
At the same time, the issue rating on Advance Agro Capital
B.V.'s US$48.7 million 13 percent notes due 2007 was also raised
to 'B-' from 'CCC'. The ratings were removed from CreditWatch,
where they were placed with positive implications on Nov. 29,
2005.
The TCR-AP reported on Mar. 13, 2007, that Moody's Investor
Services has changed to positive from stable the outlook for
both Advance Agro Public Company Limited's B3 corporate family
rating and the senior unsecured bond ratings on its notes due in
2007 and 2012.
ADVANCE PAINT: Will Not Pay Out Dividends for 2006
--------------------------------------------------
Advance Paint & Chemical (Thailand) Public Company Limited will
not pay out dividends for fiscal year 2006, the company said in
a corporate disclosure with the Stock Exchange of Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Mar. 12, 2007, that Advance Paint reported losses of
THB25,617,172 on total revenues of THB35,765,236 for the year
ended Dec. 31, 2006, as compared with losses of THB43,822,721 on
total revenues of THB52,186,174 in the same period in 2005.
Other resolutions by the company's board of directors, to be
submitted to the company's ordinary shareholders' meeting on
April 22, 2007, are:
* the adoption of the annual report for fiscal year 2006;
* the approval of the balance sheet, profit and loss
statement and statements of cash flows for the fiscal year
ended Dec. 31, 2006;
* the appointment of Pricha Punnakitikashem and Vijit
Sriyunyongwat as company directors;
* the appointment of Atipong Atipongsakul or Prawit
Viwanthananut, or other auditors of ANS Audit Co., Ltd., to
be the company's auditor for the fiscal year 2007 with the
auditors' remuneration fixed at not more that THB390,000
per annum.
Headquartered in Bangkok, Thailand, Advanced Paint & Chemicals
Public Company Limited manufactures and distributes decorative
paint, heavy-duty coating, and industrial painting under Dutch
boy, and Seven Stars brand names. It has assets of THB124.83
million in December 2005. The Company signed a 30-year contract
with Sherwin-Williams Company starting from June 1, 1987, for
the use of brand names and technology.
Advance Paint is currently undergoing business rehabilitation
and is categorized under the Non-Performing Group Sector of the
Stock Exchange of Thailand.
Going Concern Doubt
The Troubled Company Reporter - Asia Pacific reported on Dec. 7,
2006, that Atipong AtipongSakul of ANS Audit Company Ltd raised
doubt on Advanced Paint & Chemical (Thailand) Pcl's ability to
continue operations as a going concern after auditing the
company's financial results for the third quarter and nine-month
periods ended September 30, 2006.
According to Mr. Atipong, the company continues to operate on
recurring losses and has current liabilities substantially in
excess of current assets. "The Company's ability to continue
operations as a going concern is dependent on its ability to
generate sufficient profit and cash flows to serve its debts,"
he added.
ASIA HOTEL: ANS Audit Co. Raises Significant Going Concern Doubt
----------------------------------------------------------------
Atipong AtipongSakul, at ANS Audit Company Limited, raised
significant doubt on Asia Hotel Public Company Limited's ability
to continue as a going concern after auditing the company's
financial statements for the year ended Dec. 31, 2006.
Mr. Atipong pointed to the fact that the company's consolidated
financial statements and individual financial statements showed
a deficit of THB1.049 billion and THB1.209 billion,
respectively.
The Troubled Company Reporter - Asia Pacific reported on
Mar. 22, 2007, that Asia Hotel PCL recorded a consolidated net
income of THB159,050,415.74 on total revenues of
THB1,139,184,464.76, for the year ended Dec. 31, 2006, compared
with a net income of THB1,633,627,542.87 on total revenues of
THB1,041,906,119.11 for the year ended Dec. 31, 2005.
Asia Hotel's consolidated balance sheets as of Dec. 31, 2006,
showed total assets of THB4,212,348,068.60 and total liabilities
of THB3,228,890,395.96, resulting to a shareholders' equity of
THB983,457,672.64.
As of end-December 2006, Asia Hotel's consolidated balance
sheets reflected strained liquidity with THB220,683,144.02 of
current assets available to pay THB283,924,342.42 of current
liabilities coming due within the next 12 months.
Headquartered in Bangkok, Thailand, Asia Hotel Public Company
Limited -- http://www.asiahotel.co.th/-- was incorporated on
March 24, 1964, and has been publicly listed since 1989. The
Company and its two subsidiaries, Asia Pattaya Hotel Company
Limited and Asia Airport Hotel Company Limited, are involved in
the hotel business, with its principal activities consisting of
room service and operating restaurants. Another subsidiary,
Zeer Property Company Limited is primarily involved in the
construction and the building of shopping complexes.
ASIA HOTEL: Sets General Shareholders Meeting for April 24
----------------------------------------------------------
Asia Hotel Public Company Limited's board of directors has
scheduled an ordinary general meeting of shareholders on
April 24, 2007, the company said in a regulatory filing with the
Stock Exchange of Thailand.
The meeting's agenda includes:
* approval of the company's annual report and the board of
directors' report for the year 2006;
* approval of the balance sheets, statements of income,
statements of changes in shareholders' equity, statements
of cash flow for the year 2006 and the auditor's report of
the company and its subsidiaries;
* approval of the allocation of legal serve and contributed
capital from expired warrant to compensate the deficits;
* approval of no dividend payment and allocation of net
profit for legal reserves;
* appointment of directors to succeed those who are
completing their terms;
* approval of directors' remuneration fees; and
* appointment of an auditor and fixing the auditing fee for
the year 2007.
The company's board of directors have also approved the change
in accounting policy for the investments in subsidiaries and
associated companies from the current "equity method" to "cost
method" for the separate financial statements only. The change
will require retrospective adjustments to be implemented on
January 1, 2007, onward. In addition, the accounting change
will not affect the company's consolidated financial statements,
which will be using the equity method.
Headquartered in Bangkok, Thailand, Asia Hotel Public Company
Limited -- http://www.asiahotel.co.th/-- was incorporated on
March 24, 1964, and has been publicly listed since 1989. The
Company and its two subsidiaries, Asia Pattaya Hotel Company
Limited and Asia Airport Hotel Company Limited, are involved in
the hotel business, with its principal activities consisting of
room service and operating restaurants. Another subsidiary,
Zeer Property Company Limited is primarily involved in the
construction and the building of shopping complexes.
Going Concern Doubt
Atipong AtipongSakul, at ANS Audit Company Limited, raised
significant doubt on Asia Hotel Public Company Limited's ability
to continue as a going concern after auditing the company's
financial statements for the year ended Dec. 31, 2006.
Mr. Atipong pointed to the fact that the company's consolidated
financial statements and individual financial statements showed
a deficit of THB1.049 billion and THB1.209 billion,
respectively.
BANGKOK BANK: Sets Sights on Expanding in India and China
---------------------------------------------------------
Bangkok Bank PCL plans to be more aggressive in overseas
business expansion -- budgeting around THB5 billion to upgrade
four of its branches in China, and seeking a presence in India
to capitalize on the country's economic boom -- Nation
Multimedia reports.
Bangkok Bank Executive Chairman Piti Sithi-Amnual said that the
bank would apply for a local bank license from the Chinese
government, once foreign banks are allowed to operate as local
banks in the country, Nation Multimedia says. The bank,
according to the report, has earmarked around THB5 billion for
this plan as local banks in China are required to have a minimum
registered capital of CNY1 billion, or around THB4.3 billion.
The report explains that Bangkok Bank's four branches in China
-- located in Shanghai, Shantou, Xiamen, and Beijing -- are
currently allowed to offer six main financial services to Thai
and overseas investors: deposit accounts, funds transfer,
foreign exchange, trade finance, US dollar-based loans, and
letters of guarantee. The bank may upgrade one of its four
China branches to be the Chinese headquarters.
Mr. Piti also discloses that the bank plans to open overseas
branches in India, as the country's gross domestic product
growth rate is close to China's at 8% to 9%, Nation Multimedia
adds.
Headquartered in Bangkok -- http://www.bangkokbank.com/--
Bangkok Bank is Thailand's largest bank, with total assets of
THBB1.498 trillion (US$39 billion) at end-June 2006.
Moody's Investors Service has upgraded on August 29, 2006,
Bangkok Bank's bank financial strength rating to D+ from D and
reaffirmed this rating on September 20, following the military
coup in Thailand.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Fitch Ratings affirmed Bangkok Bank's Individual
rating at C.
BANK OF AYUDHYA: Sells Entire 50.63% Stake in IFS for THB228MM
--------------------------------------------------------------
Bank of Ayudhya Public Company Limited has divested its entire
25,313,150 ordinary shares, or 50.63% stake, in Ayudhya
International Factors Company Limited to IFS Capital Holdings
Thailand Limited and IFS Capital Limited at THB9 per share,
totaling THB227,818,350, Reuters Key Developments reports.
In another Reuters Key Developments report, Bank of Ayudhya
announces the establishment of Ayudhya Factoring Company
Limited, its 99.99%-owned subsidiary engaged in factoring
business with a registered capital of THB100 million.
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Jan. 16, 2007, that Moody's Investors Service upgraded Bank of
Ayudhya Public Co Ltd.'s bank financial strength rating to "D-"
from "E+".
The TCR-AP reported that on Jan. 12, 2007, Fitch Ratings
upgraded Bank of Ayudhya's:
* Foreign currency subordinated debt rating to BB+ from BB;
and
* Individual rating to C/D from D.
BLOCKBUSTER INC: Good Performance Cues S&P's Ratings' Upgrade
-------------------------------------------------------------
Standard & Poor's Ratings Services raised the ratings on
Dallas-based Blockbuster Inc. to 'B' from 'B-'. This action
reflects the improved operating performance and improved credit
protection metrics for the company.
At the same time, Standard & Poor's raised the recovery rating
on the bank facility to '3' from '5', indicating the expectation
for meaningful recovery of principal in the event of payment
default. Standard & Poor's affirmed the stable outlook.
The ratings reflect its participation in the declining video
rental industry, extremely competitive home entertainment
market, operational challenges as the company diversifies its
distribution channels, dependence on decisions made by the movie
studios, and highly leveraged capital structure.
"Cash flow protection measures have strengthened and are
adequate for the rating category," said Standard & Poor's credit
analyst David Kuntz, "but Blockbuster will be challenged to
increase movie rental sales, given the industry's weak
fundamentals and strong competition."
Blockbuster Inc. (NYSE: BBI, BBI.B) --
http://www.blockbuster.com/-- provides in-home movie and game
entertainment, with more than 9,000 stores throughout the
Americas, Europe, Asia and Australia. The company also operates
in Taiwan, Thailand, and New Zealand.
PHELPS DODGE: Moody's Lifts Rating on US$566.7MM Sr. Debt to Ba2
----------------------------------------------------------------
Moody's Investors Service upgraded Freeport-McMoRan Copper &
Gold Inc.'s corporate family rating to Ba2 from Ba3 and
undertook a number of related rating actions:
* upgraded to Baa2 from Baa3 the senior secured rating on
Freeport's US$500 million secured revolver;
* upgraded to Baa3 from Ba2 the senior secured ratings on
each of Freeport's US$1 billion secured revolver,
US$2.5 billion secured Term Loan A, US$7.5 billion secured
Term Loan B, and each of Freeport's existing 6.875%,
10.125% and 7.20% senior secured notes; and
* upgraded to Ba3 from B2 Freeport's US$6 billion senior
unsecured notes.
Moody's also upgraded to Ba2 from B1 the ratings on Phelps
Dodge's secured Cyprus Amax notes and on Phelps Dodge's other
existing notes.
The rating actions are based on Freeport's pending issuance of
approximately US$2.5 billion of common equity and US$2.5 billion
of mandatorily convertible preferred stock and a potential
overallotment, the proceeds of which will be used to reduce Term
Loans A and B. In considering Freeport's capital structure,
Moody's treats the mandatorily convertible preferreds as equity.
The ratings reflect the overall probability of default of
Freeport, to which Moody's assigns a PDR of Ba2. The rating
outlooks for Freeport, Phelps Dodge and Cyprus Amax are stable.
The Ba2 corporate family rating reflects Freeport's high debt
level of approximately US$13 billion and what Moody's believes
will be a protracted time frame for debt reduction in the face
of softening metals prices and continued high cost challenges.
The rating also considers the high concentration in copper and
resultant variability in earnings and cash flow, significant
capital expenditures, and a high level of reliance on the
Grasberg mine in Indonesia. The rating also reflects the
cultural challenges inherent in the acquisition of the larger
Phelps Dodge by Freeport, and the execution and political risk
of Phelps Dodge's development project in the Congo. The Ba2
rating favorably considers the company's leading positions in
copper and molybdenum, a significant amount of gold production,
the low cost, long-life reserves at PT-FI, and improved
operating and political diversity.
These are the rating actions:
* Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating, to Ba2 from Ba3
-- Probability of Default Rating; to Ba2 from Ba3
-- US$0.5 billion Senior Secured Revolving Credit
facility, to Baa2, LGD1, 2% from Baa3
-- US$1.0 billion Senior Secured Revolving Credit
Facility, to Baa3, LGD2, 22% from Ba2
-- US$2.5 billion Senior Secured Term Loan A, to Baa3,
LGD2, 22%, from Ba2
-- US$7.5 billion Senior Secured Term Loan B, to Baa3,
LGD2, 22%, from Ba2
-- US$340 million 6.875% Senior Secured Notes due 2014, to
Baa3, LGD2, 22%, from Ba2
-- US$272 million 10.125% Senior Secured Notes due 2010,
to Baa3, LGD2, 22%, from Ba2
-- US$0.2 million 7.20% Senior Secured Notes due 2026, to
Baa3, LGD2, 22%, from Ba2
-- Senior Unsecured Notes: to Ba3, LGD5, 83%, from B2
* Cyprus Amax Minerals Company
-- US$60.1 million 7.375% Senior Notes due 2007, to Ba2,
LGD3, 48%, from B1
* Phelps Dodge Corporation
-- US$107.9 million 8.75% Senior Notes due 2011, to Ba2,
LGD3, 48%, from B1
-- US$115 million 7.125% Senior Notes due 2027, to Ba2,
LGD3, 48%, from B1
-- US$150 million 6.125% Senior Notes due 2034, to Ba2,
LGD3, 48%, from B1
-- US$193.8 million 9.50% Senior Notes due 2031, to Ba2,
LGD3, 48%, from B1
Moody's last rating action on Freeport was to affirm its Ba3
corporate family rating in February 2007 in connection with
Freeport's acquisition of Phelps Dodge.
Freeport-McMoRan Copper & Gold Inc. is a Phoenix based producer
of copper, gold and molybdenum and had revenue in 2006 of
US$5.8 billion.
Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.
Phelps Dodge has operations in Venezuela, Thailand, China, the
Philippines and Japan, among others.
PRASIT PATANA: SET Moves Securities to "NPG" from Trading Board
---------------------------------------------------------------
Prasit Patana Public Company Limited's securities will be
removed from the Stock Exchange of Thailand's trading board to
the "Non Performing Group" sector after the company's audited
financials for the year ended Dec. 31, 2006, showed a net loss
of THB47 million.
The transfer is effective as of March 23, 2007.
According to the SET, Prasit Patana may apply for a transfer to
its normal sector at any time after it meets the criteria for
the removal of its securities' delisted status.
Since July 3, 2006, Prasit Patana's securities were transferred
by the SET to the company's normal sector -- Health Care
Services -- after achieving positive shareholder equity,
achieving net profits from its core businesses, and successfully
restructuring over 75% of its total debt. The company, however,
carried the SET's "NC" (Non Compliance) and "SP" (Suspension)
signs.
Prasit Pratana will retain its current listing status and must
comply with the SET requirements (i.e., regarding information
disclosure, maintaining listing status, etc.). However, the
securities' name will no longer appear on the trading board.
Prasit Patana Public Company Limited -- http://www.phyathai.com/
-- operates Phaya Thai I II and III Hospitals, Phaya Thai
Sriracha Hospital, Phaya Thai Phuket Hospital, Phaya Thai Ubon
Hospital and Ake Udon Hospital. The company also operates three
Universities, one of which as a joint venture with the Dulwich
College of the United Kingdom. The company also has diversified
its business into hotel operations.
SIAM COMMERCIAL: 2006 Net Income Declines 29.64% to THB13 Bil.
--------------------------------------------------------------
Siam Commercial Bank PCL posted a net income of
THB13,286,435,105 for the year ending Dec. 31, 2006, a 29.64%
decline from the THB18,882,630,748 net income recorded for the
year ending Dec. 31, 2005.
The bank's total interest and dividend income increased 64.32%
in 2006 to THB52,703,175,316. However, total interest expense
ballooned year-on-year by 205.79% to THB20,133,756,200, giving
the bank a net interest and dividend income of
THB32,569,419,116, only 27.78% higher than the year before.
The bank also had a THB4,374,096,917 bad debt and doubtful
account for 2006, against a reversal account of THB155,448,057
in 2005. Loss on debt restructuring also grew by 89.25% to
THB2,626,857,058.
According to Reuters Key Developments, Siam Commercial Bank has
already announced plans to pay a fiscal year 2006 dividend of
THB2.00 per share. The dividend payment is scheduled on
April 30, 2007, to be paid to shareholders of record on
April 18.
Headquartered in Bangkok, Thailand's fourth largest commercial
bank, Siam Commercial Bank PCL - http://www.scb.co.th/--
provides a wide variety of personal and business banking
options, including funds management, loan and investment
services, foreign currency exchange, and more. The bank has
more than 500 branches countrywide, with branches in Hong Kong,
Cambodia, Singapore, and Laos. The bank had total assets worth
THB814 billion as of December 31, 2005.
The Troubled Company Reporter - Asia Pacific reported that on
September 19, 2006, Fitch Ratings Services placed the 'C'
individual rating of Siam Commercial Bank on Rating Watch
Negative pending a resolution of the political crisis that
triggered the coup in Thailand.
On March 31, 2006, The Troubled Company Reporter - Asia Pacific
reported that Moody's Investors Service placed Siam Commercial
Bank Public Company Limited's bank financial strength rating of
'D+' on review for possible upgrade.
TRUE CORP: Plans to Acquire Wave Worker Shares at THB100 Apiece
---------------------------------------------------------------
True Corporation PCL said that through its subsidiary, True
Digital Entertainment Co., Ltd., it plans to acquire 7,000
shares -- 70% interest -- of Wave Worker Co., Ltd. at THB100 per
share, Reuters Key Developments reports.
Wave Worker Co. is an advertising company.
True Corporation Public Company Ltd's --
http://www.truecorp.co.th/-- principal activities are the
provision of telecommunication services and various value-added-
services that includes: Digital Data Network Direct Inward
Dialing, Integrated Service Digital Network, Public Telephone,
Personal Communication Telephone Service, Multimedia and
Internet Service Provider. Other activities include training
services, online games, rental services and investment holding.
The Troubled Company Reporter - Asia Pacific reported that on
November 22, 2006, Standard & Poor's Ratings Services assigned
its BB- long-term corporate credit rating to Thailand's third-
largest cellular operator, True Move Co. Ltd. The outlook is
negative.
At the same time, Standard & Poor's assigned its B issue rating
to True Move's proposed senior unsecured notes, assuming a debt
size of about US$450 million.
The TCR-AP reported on Nov. 27, 2006, that Moody's Investors
Service affirmed True Corporation Public Company Ltd's Ba3
corporate family rating and at the same time changed the rating
outlook to negative from stable.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Hutchison Telecommunications
(Aust) Ltd. HTA 1637.04 -1443.69
Indophil Resources NL IRN 37.79 -69.96
Intellect Holdings Limited IHG 15.01 -0.83
KH Foods Ltd KHF 62.30 -1.71
Lafayette Mining Limited LAF 78.17 -127.82
Life Therapeutics Limited LFE 59.00 -0.38
Orbital Corp. Ltd. OEC 14.01 -4.86
RMG Ltd. RMG 22.33 -2.16
Stadium Australia Group SAX 137.64 -47.57
Tooth & Co. Ltd. TTH 99.25 -74.39
CHINA AND HONG KONG
Artel Solutions Group
Holdings Limited 931 29.19 -18.65
Asia Telemedia Limited 376 10.89 -5.50
Chang Ling Group 561 77.48 -76.83
Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07
China Kejian Co. Ltd. 35 54.71 -179.23
Datasys Technology
Holdings Ltd 8057 14.1 -2.07
Dynamic Global Holdings Ltd. 231 39.43 -2.21
Everpride Biopharmaceutical
Company Limited 8019 10.16 -2.16
Fujian Changyuan Investment
Holdings Limited 592 31.36 -54.04
Guangdong Kelon Electrical
Holdings Co Ltd 921 685.74 -96.88
Guangdong Meiya Group
Company Ltd. 529 107.16 -49.54
Guangxia (Yinchuan) Industry
Co. Ltd. 557 62.19 -115.50
Hainan Dadonghai Tourism
Centre Co., Ltd 613 19.74 -5.81
Hans Energy Company Limited 554 94.75 -10.76
Hualing Holdings Limited 382 242.26 -28.15
Huda Technology & Education
Development Co. Ltd. 600892 17.29 -0.19
Hunan Genuine Material
Co., Ltd. 156 77.57 -77.92
Hunan GuoGuang Ceramic
Co., Ltd. 600286 87.44 -68.55
Hunan Hengyang 600762 68.45 -7.20
Innovo Leisure Recreation
Holdings Ltd. 703 13.37 -3.89
Jiamusi Paper Co. Ltd. 699 109.07 -86.57
Junefield Department
Store Group Limited 758 16.80 -6.34
Loulan Holdings Limited 8039 13.01 -1.04
New World Mobile Holdings Ltd 862 295.66 -12.53
New City China 456 242.25 -28.46
Orient Power Holdings Ltd. 615 176.86 -64.20
Plus Holdings Ltd. 1013 18.52 -3.34
Shenyang Hejin Holding
Company Ltd. 633 83.18 -20.87
Shenzhen China Bicycle Co.,
Hlds. Ltd. 17 39.13 -224.64
Shenzhen Shenxin Taifeng
Group Co., Ltd. 34 95.27 -44.65
Shenzhen Techo Telcom.,
Ltd 555 14.84 -6.25
Shijiazhuang Refining-Chemical
Co., Ltd 783 357.75 -84.57
Sichuan Changjiang Packaging
Holding Co. Ltd. 600137 13.11 -72.76
Sichuan Topsoft Investment
Company Limited 583 113.12 -148.61
Songliao Automobile Co. Ltd. 600715 49.56 -3.76
Success Information Industry
Group Co. 517 99.92 -14.29
Taiyuan Tianlong Group Co.
Ltd 600234 13.47 -87.63
Winowner Group Co. Ltd. 600681 38.03 -62.88
Xinjiang Hops Co. Ltd 600090 86.63 -11.26
Yueyang Hengli Air-Cooling
Equipment Inc. 622 49.89 -17.71
Zarva Technology Co. Ltd. 688 101.76 -102.01
Zhejiang Haina Science & Tech
Co., Ltd. 925 21.43 -33.33
INDIA
Andhra Cement Ltd. ANDC 58.94 -13.48
ATV Projects India Ltd. ATV 68.25 -30.17
Bagalkot Udyog Ltd. BUL 20.55 -0.63
Baroda Rayon Corp. Ltd. BR 41.16 -26.62
Birla VXL Ltd. NVXL 98.77 -14.62
Core Healthcare Ltd. CPAR 214.36 -199.02
Deccan Aviation Pte. Ltd. DECA 86.94 -2.83
Fairfield Atlas Ltd. ATG 20.03 -0.15
GKW Ltd. GKW 35.75 -13.52
Global Broadcast News Ltd GBN 18.13 -1.27
Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01
Himachal Futuris HMFC 574.62 -38.68
HMT Ltd. HMT 238.05 -288.85
IFCI Ltd. IFCI 2566.01 -727.71
JCT Electronics Ltd. JCTE 118.28 -165.74
Jenson and Nicholson
(India) Ltd. JN 15.41 -77.32
Kinetic Engineering Ltd. KNEL 72.82 -5.40
Kothari Sugars and
Chemicals Ltd. NKTSG 43.24 -29.24
Lloyds Steel Industries Ltd. LYDS 380.94 -69.93
LML Ltd. LML 81.21 -11.89
Mafatlal Ind. MFI 95.67 -85.81
Malanpur Steel Ltd. HDC 82.08 -52.01
Modern Threads MRT 78.18 -20.71
Mysore Cements Ltd. MYC 82.02 -14.57
Mysore Kirloskar Ltd. MK 23.71 -3.04
Phil Corporation Ltd. NPPI 22.13 -4.96
RPG Cables Ltd. NRPG 51.43 -20.19
Saurashtra Cement Ltd. SRC 112.31 4.57
Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38
Shyam Telecom NSHY 147.34 -22.80
Singer India Ltd. SING 12.32 -6.69
SIV Ind. Ltd. NSIV 101.16 -66.27
SpiceJet Ltd. SJET 121.34 -2.75
INDONESIA
Ades Waters Indonesia Tbk ADES 21.35 -8.93
Dharmala Intiland Tbk DILD 197.91 -6.62
Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21
Hotel Sahid Jaya SHID 71.05 -4.26
Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57
Mulialand Tbk MLND 141.33 -45.99
Panca Wiratama Sakti Tbk PWSI 39.72 -18.82
Sekar Bumi Tbk SKBM 23.07 -41.95
Steady Safe SAFE 19.65 -2.43
Suba Indah Tbk SUBA 85.17 -9.18
Surya Dumai Industri Tbk SUDI 105.06 -30.49
Toba Pulp Lestrari Tbk INRU 403.58 -198.86
Unitex Tbk UNTX 29.08 -5.87
Wicaksana Overseas
International Tbk WICO 43.09 -46.36
JAPAN
Mamiya-OP Co., Ltd. 7991 152.37 -67.11
Montecarlo Co. Ltd. 7569 66.29 -3.05
Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10
Sumiya Co., Ltd. 9939 89.32 -11.57
Yakinikuya Sakai Co., Ltd. 7622 79.34 -11.20
MALAYSIA
Ark Resources ARK 25.91 -28.35
Comsa Farms Bhd CFB 63.60 -5.00
Cygal Bhd CYG 58.47 -69.79
Mentiga Corporation Berhad MENT 22.13 -18.25
Metroplex Bhd MEX 323.51 -49.28
Mycom Bhd MYC 222.58 -136.17
Olympia Industries Bhd OLYM 272.49 -281.44
Pan Malay Industries PMRI 199.08 -6.30
Park May Bhd PMY 11.04 -13.58
PSC Industries Bhd PSC 62.80 -116.18
Sateras Resources Bhd. SRM/4278 44.73 -38.82
Setegap Berhad STG 19.92 -26.88
Wembley Industries
Holdings Bhd WMY 111.72 -204.61
PHILIPPINES
APC Group Inc. APC 67.04 -163.14
Atlas Consolidated Mining and
Development Corp. AT 33.59 -57.17
Cyber Bay Corporation CYBR 11.54 -58.06
East Asia Power Resources Corp. PWR 92.55 -64.61
Filsyn Corporation FYN 19.20 -8.83
Gotesco Land, Inc. GO 17.34 -9.59
Prime Orion Philippines Inc. POPI 98.36 -74.34
Swift Foods Inc. SFI 26.95 -8.23
Unioil Resources & Holdings
Company Inc. UNI 10.64 -9.86
United Paragon Mining Corp. UPM 21.19 -21.52
Universal Rightfield Property UP 45.12 -13.48
Uniwide Holdings Inc. UW 61.45 -30.31
Victorias Milling Company Inc. VMC 127.83 -32.21
SINGAPORE
Compact Metal Industries Ltd. CMI 46.95 -36.47
Falmac Limited FAL 10.51 -2.30
Gul Technologies GUL 155.76 -15.21
HLG Enterprise HLGE 116.77 -8.71
Informatics Holdings Ltd INFO 22.30 -9.14
Lindeteves-Jacoberg Limited LJ 225.52 -53.23
Pacific Century Regional PAC 1567.65 -89.90
Semitech Electronics Ltd. 5CG/SEMI 11.01 -0.23
SOUTH KOREA
BHK Inc 3990 24.36 -17.38
C&C Enterprise Co. Ltd. 38420 28.05 -14.50
Cenicone Co. Ltd. 56060 36.82 -1.46
Cheil Entech Co. Ltd. 53330 37.25 -0.31
DaeyuVesper Co. Ltd. 41140 19.06 -1.60
Everex Inc. 47600 23.15 -5.10
EG Greentech Co. 55250 186.00 -1.50
EG Semicon Co. Ltd. 38720 166.70 -12.34
Hankook Synthetics Inc. 25830 207.34 -95.57
Tong Yang Major 1520 2332.81 -86.95
TriGem Computer Inc 14900 629.32 -292.96
THAILAND
Bangkok Rubber PCL BRC 70.19 -56.98
Circuit Electronic
Industries PCL CIRKIT 20.37 -64.80
Kuang Pei San Food Products
Public Co. POMPUI 12.51 -9.87
Sahamitr Pressure Container
Public Co. Ltd. SMPC 20.77 -28.13
Sri Thai Food & Beverage Public
Company Ltd SRI 18.29 -43.37
Tanayong PCL TYONG 178.27 -734.30
Thai-Denmark PCL DMARK 21.37 -18.88
Thai-Wah PCL TWC 91.56 -41.24
*********
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. Rousel Elaine Tumanda, Valerie Udtuhan,
Francis James Chicano, Catherine Gutib, Tara Eliza Tecarro,
Freya Natasha Fernandez, Frauline Abangan, and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***