/raid1/www/Hosts/bankrupt/TCRAP_Public/070507.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, May 7, 2007, Vol. 10, No. 89
Headlines
A U S T R A L I A
ADMIRAL HOMES: Final Meeting Set for June 7
AEARO TECHNOLOGIES: S&P Junks Rating on US$200MM Sr. Term Loan
AMERICAN MEDICAL: Earns US$3.69 Million for First Quarter 2007
AMSCAN HOLDINGS: Gets Refinancing Commitments from Three Lenders
ARMOR HOLDINGS: Gets US$32MM Deal for Pinzgauer Vehicles in UK
CHILTERN GROVE: Members Opt for Voluntary Wind-Up
COWELLS INVESTMENTS: Members to Hear Wind-Up Report on June 1
HMD RIGGING: Creditors Appoint Warren White as Liquidator
JORD BELLOWS: Placed Under Voluntary Wind-Up
JOYNER GOLF: Placed Under Voluntary Liquidation
PEOPLE TELECOM: Partners with Australian Retailers Group
STOWFORD PTY: Members to Hear Liquidator's Report on May 29
SYMBION HEALTH: CEO Prepares to Step Down if Takeover Succeeds
TERAPH PTY: Members to Receive Wind-Up Report on May 22
TOONGABBIE SPARES: Members & Creditors to Meet on June 4
C H I N A & H O N G K O N G
APEX CONSULTANTS: Receiving Proofs of Debt Until May 21
BOVILLE INDUSTRIAL: Court Resets Wind-Up Hearing to May 9
CHARMKEY INDUSTRIAL: Names Tam Kwok Kong as Liquidator
CITIC BANK: Increases Share Offer by 15%; Gains Up to US$5.9BB
GALAXY CASINO: Moody's Maintains 'B1' Ratings & Stable Outlook
GREENTOWN CHINA: To Raise HK$2.35 Billion Through Shares Sale
KWAI CHUEN: Wind-Up Petition Hearing Set for June 20
LAU AND COMPANY: Creditors' Proofs of Debt Due on June 8
LEGEND APPAREL: Wind-Up Petition Hearing Set for May 16
O.K. CATERING: Court to Hear Wind-Up Petition on June 20
ROAD KING: Discloses Price Guidance on Two-Tranche Bond
ROAD KING: Moody's Downgrades Default Rating to BB From BB+
I N D I A
ANDHRA BANK: Earns INR1.39 Billion in Quarter Ended March 31
EASTMAN KODAK: Closes Unit Sale to Onex for US$2.5 Billion
GMAC LLC: Posts US$305 Million Net Loss in Qtr. Ended March 31
GMAC LLC: Massive Losses Prompt S&P to Affirm BB+/B-1 Rating
HAYES LEMMERZ: Moody's Raises HLI Operating's Corp. Rating to B3
HAYES LEMMERZ: Planned Debt Reduction Cues S&P to Up Ratings
UTI BANK: To Change Name to Axis Bank; Names Whole Time Chairman
VIJAYA BANK: Earns INR636.5 Million in Quarter Ended March 31
VIJAYA BANK: To Raise INR200 Cr. in 1st Quarter of FY2007-08
I N D O N E S I A
ALCATEL-LUCENT: Wins Multi-Million Euro Contract from RTE
ARMSTRONG WORLD: Earns US$26 Million in Quarter Ended March 31
DIRECTED ELECTRONICS: To Report 1Q 2007 Results on Thursday
INCO LIMITED: Indonesian Unit's 1Q Net Income Increased by 426%
NUTRO: Moody's Puts Ratings on Review for Possible Upgrade
TELKOMSEL: To Issue IDR2 Trillion in Bonds in 3rd Quarter 2007
J A P A N
ALITALIA SPA: TPG Consortium Earmarks EUR5 Billion for Carrier
ALL NIPPON: Bombardier Makes an Unscheduled Landing
BOSTON SCIENTIFIC: COO Says Company Mulls Sale of Noncore Assets
BOSTON SCIENTIFIC: Names Sam Leno as Chief Financial Officer
KYUSHU-SHINWA: Asks Fukuoka Financial Group For Merger
JAPAN AIRLINES: Reports Net Loss of JPY16.2 billion for FY2006
ON SEMICONDUCTOR: Steady Gains Cue S&P to Up Rating to BB-
SUMITOMO MITSUI FINANCIAL: Central Finance to Merge with Quog
SEGO INTERNATIONAL: Undergoes Voluntary Liquidation
SHIMAO PROPERTY: Decides to Solo Bid for US$2BB Manila Project
K O R E A
DURA AUTOMOTIVE: Evaluates Strategic Alternatives for Atwood
HYNIX SEMICONDUCTOR: Fitch Assigns 'BB' Long-Term Default Rating
KRISPY KREME: Prudential Downgrades Shares to Neutral Weight
KOOKMIN BANK: Earns KRW1.2 Trillion for First Quarter 2007
M A L A Y S I A
FA PENINSULAR: Bursa to Delist Securities on May 15
METROPLEX BERHAD: Fails to File Plan; Bursa Delists Securities
PAN MALAYSIAN: Metrojaya Disposal Extended to July 31
PARK MAY: Konsortium Transnasional Eyes Listing Next Month
STAR CRUISES: Shareholders Approve Singapore Casino Stake Sale
N E W Z E A L A N D
AUCKLAND PROPERTY: Subject to CIR's Wind-Up Petition
CABANA GIFTS: Court to Hear Wind-Up Petition Today
DENNY'S CORP: Morgan Joseph Reiterates Buy Rating on Firm
ENDURING HOMES: Taps Heath & Meltzer as Liquidators
EWE GLO: Subject to CIR's Wind-Up Petition
L G R TRADING: Enters Liquidation Proceedings
MARYCREST HOLDINGS: Court to Hear Wind-Up Petition Today
NEW ZEALAND LANDMARKS: Proofs of Debt Must be Filed by May 25
ONE ON ONE: Wind-Up Petition Hearing Set for May 14
PP 1996: Liquidators Fix May 11 as Last Day for Receiving Claims
REG PROPERTIES: Court to Hear Wind-Up Petition on May 10
SHARAY ENTERPRISES: Appoints Mason & Meltzer as Liquidators
WELLESLEY HOTEL: High Court to Hear Wind-Up Petition on May 10
P H I L I P P I N E S
ACESITE PHILS: Net Loss Balloons to PHP19.6 Million in 2006
BANK OF COMMUNICATIONS: Set Annual Stockholders' Mtg. on June 19
DIVERSIFIED FINANCIAL: Unit Gets Ready to Go Public
METROPOLITAN BANK: Reports 30.11% Improvement in 2006 Net Income
PHILCOMSAT HOLDINGS: Court Takes Control Away From PCGG
PHILCOMSAT HOLDINGS: Clarifies Set of Directors and Officers
SAN MIGUEL: Nihon Yamamura Gains 35% Stake in Packaging Business
UNION BANK: Gets SEC OK to Sell Additional 90 Mil. Common Shares
* RP Banks Threatened By Bad Loans
* Moody's Releases Bank Rating Actions for Philippines
S I N G A P O R E
E-FORCE TECHNOLOGIES: Court Enters Wind-Up Order
OPALTREE SYSTEMS: Court Enters Wind-Up Order
PETROLEO BRASILEIRO: No Deal Yet on Petrochemical Consolidation
PETROLEO BRASILEIRO: Reiterates Partnership with PDVSA
SIN LIAN: Court to Hear Wind-Up Petition on May 11
T H A I L A N D
ARVINMERITOR INC: Posts US$94 Million Loss for 2Q Ended Mar. 31
BLOCKBUSTER INC: Posts US$46.4MM Net Loss in Qtr. Ended April 1
CIGNA CORP: Earns US$289 Million in First Quarter Ended March 31
DAIMLERCHRYSLER AG: Earns US$3.7 Billion in Full Year 2006
DAIMLERCHRYSLER AG: Magna Tops List of Chrysler Contenders
SIAM COMMERCIAL: Allows King Power More Time to Think About Loan
TMB BANK: Seeks THB1 Billion Capital Increase to Recover Losses
THAI-GERMAN PRODUCTS: Shares Rise 37% After 8-Year Lull
- - - - - - - -
=================
A U S T R A L I A
=================
ADMIRAL HOMES: Final Meeting Set for June 7
-------------------------------------------
A final meeting will be held for the members and creditors of
Admiral Homes Pty Ltd on June 7, 2007, at 11:00 a.m.
Geoff Ridgeway, the appointed liquidator, will give a report
about the company's wind-up proceedings and property disposal at
the meeting.
The Troubled Company Reporter - Asia Pacific has reported that
the company commenced the wind-up of its operations on May 17,
2006.
Mr. Ridgeway can be reached at:
Geoff Ridgeway
Jenkins Peake
Chartered Accountants
PO Box 1570, Geelong 3220
Australia
Telephone:(03) 5223 1000
Facsimile:(03) 5221 4938
About Admiral Homes
Located in Victoria, Australia, Admiral Homes Pty Ltd is
involved with carpentry work.
AEARO TECHNOLOGIES: S&P Junks Rating on US$200MM Sr. Term Loan
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its loan and
recovery ratings to Aearo Technologies Inc.'s proposed US$735
million senior secured credit facilities. The US$60 million
first-lien senior secured revolving credit facility was rated
'B+' with a '1' recovery rating, indicating a high expectation
of full recovery of principal in the event of default. The
US$475 million first-lien senior secured term loan was rated 'B'
with a '3' recovery rating, indicating a meaningful expectation
of full recovery. And the US$200 million second-lien senior
secured term loan was rated 'CCC+' with a '5' recovery rating,
indicating a negligible expectation of full recovery.
At the same time, Standard & Poor's revised its outlook on Aearo
to negative from stable based on the company's recently proposed
recapitalization that will result in higher financial leverage.
The 'B' corporate credit rating has been affirmed. Standard &
Poor's will withdraw existing ratings on Aearo's currently
outstanding senior secured facilities upon completion of the
proposed transaction.
AMERICAN MEDICAL: Earns US$3.69 Million for First Quarter 2007
--------------------------------------------------------------
American Medical Systems Holdings Inc. reported US$3.69 million
in net profit on US$108.39 million in net revenues for the first
quarter ended Mar. 31, 2007, compared with US$11.47 million in
net profit on US$73.62 million in net revenues for the first
quarter ended April 1, 2006.
"As we previously communicated, internal production and planning
issues, along with the specific vendor quality issues we
experienced during the first quarter, resulted in both top and
bottom line disruption as we were not able to fulfill all orders
due to product availability challenges," Martin J. Emerson,
President and Chief Executive Officer, said. "In addition,
manufacturing rework and warranty costs associated with our new
HPS laser console applied pressure to our gross margin during
the quarter. I am confident that the vast majority of these
costs are behind us, and as we look forward, we will see the
type of gross margin expansion we had planned for 2007."
"While the first quarter was clearly a disappointment, we remain
confident in our ability to address our supply issues during the
second quarter," Mr. Emerson noted. "The underlying strength of
demand across much of our business in the first quarter means we
are poised to see strong revenue performance as we exit the
second quarter."
At Mar. 31, 2007, American Medical Systems had US$1.09 billion
in total assets, US$795.2 million in total liabilities and
US303.89 million in stockholders' equity.
Outlook
The Company reiterated the full year 2007 revenue guidance of
US$475 million to US$500 million and reported earnings per share
from continuing operations of US$0.63 to US$0.70.
Revenue projected for the second quarter of 2007 ranges from
US$112 million to US$118 million, with an anticipated earnings
per share range of US$0.08 to US$0.11. It is anticipated that
all supply issues will be resolved during the second quarter;
however, these projected results assume a level of recovery time
in the market.
About American Medical
American Medical -- http://www.americanmedicalsystems.com/ --
develops and delivers pelvic health products for both men and
women. AMS has operation in Australia, Austria, Brasil, Canada,
Deutschland, Benelux, France, Iberica, Portugal, the United
Kingdom, and the USA.
The Troubled Company Reporter - Asia Pacific reported on
March 15, 2007, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology, the rating agency
confirmed its B1 Corporate Family Rating for American Medical
Systems Inc. Additionally, Moody's revised its probability-of-
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior Secured
Revolver due 2012 Ba3 Ba2 LGD2 22%
Senior Secured
Term Loan B
due 2012 Ba3 Ba2 LGD2 22%
AMSCAN HOLDINGS: Gets Refinancing Commitments from Three Lenders
----------------------------------------------------------------
Amscan Holdings Inc. has received commitments from Credit
Suisse, Bank of America Securities and Lehman Brothers to
refinance its senior debt facilities that will enable the
company to lower its overall cost of debt and improve its
financial flexibility.
The refinancing is expected to consist of a five-year US$150
million asset-based revolving credit facility and a six-year
US$425 million term loan. The company's leverage at closing
will remain largely unchanged as the net proceeds are planned to
be used to repay existing senior debt and related prepayment
fees. The commitments provide that:
i. ABL facility will be secured by a first priority lien
on accounts receivable and inventories, with a second
priority lien on all other assets of the Company;
ii. term loan will be secured by a first priority lien on
all of the company's assets, except for accounts
receivable and inventories, and a second priority lien
on accounts receivable and inventories;
iii. term loan will amortize at 1% per year with a balloon
payment at maturity; both facilities will be guaranteed
by the company's domestic subsidiaries; and
iv. both will be subject to customary prepayment provisions
and negative covenants and will include only incurrence-
based financial covenants.
The company expects the refinancing to close during May 2007.
Headquartered in Elmsford, New York, Amscan Holdings Inc. makes
more than 400 specially designed ensembles of party accessories
and novelties, including balloons, invitations, pi¤atas,
stationery, and tableware. Amscan sells to more than 40,000
retail outlets worldwide, mainly party goods superstores, mass
merchandisers, and other distributors. Party City accounted for
about 13% of sales before the firm bought it in 2005. Amscan
itself makes party items (which bring in about 60% of sales) and
buys the rest from other manufacturers, primarily in Asia. It
has production and distribution facilities in Asia, Australia,
Europe, and North America. Berkshire Partners and Weston
Presidio are Amscan's principal owners.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2007 that in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. toy company sector last
week, the rating agency confirmed its B2 Corporate Family Rating
for Amscan Holdings Inc.
ARMOR HOLDINGS: Gets US$32MM Deal for Pinzgauer Vehicles in UK
--------------------------------------------------------------
Armor Holdings Inc. received an order valued at around US$32
million for additional Pinzgauer Protected Patrol Vehicles from
the United Kingdom Ministry of Defense.
The Company stated that the new deliveries will be completed in
2007 with work performed at the Armor Holdings Aerospace and
Defense Group's Pinzgauer facilities located in Guildford,
Surrey U.K., with vehicle armoring support to be provided by the
Aerospace and Defense Group at its facilities located in
Fairfield, Ohio.
"We are pleased that the U.K. Ministry of Defense has placed a
second order for additional Pinzgauer model armored vehicles in
support of British deployed forces," Robert Schiller, President
of Armor Holdings, said. "We believe this order also
underscores our success at integrating Armor Holdings' armoring
capability with an important light tactical vehicle program
acquired through the Stewart & Stevenson acquisition."
Headquartered in Jacksonville, Florida, Armor Holdings, Inc. --
http://www.armorholdings.com/-- manufactures and distributes
security products and vehicle armor systems for the law
enforcement, military, homeland security, and commercial
markets. The company has operations in Australia, England and
Brazil.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.
Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013. Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.
CHILTERN GROVE: Members Opt for Voluntary Wind-Up
-------------------------------------------------
At a general meeting held on April 17, 2007, the members of
Chiltern Grove Pty Ltd decided to voluntarily wind up the
company's operations.
The company's liquidator is:
Sinclair Wilson
Accountants & Business Advisors
177 Koroit Street
Warrnambool, Victoria 3280
Australia
About Chiltern Grove
Located in Victoria, Australia, Chiltern Grove Pty Ltd is an
investor relation company.
COWELLS INVESTMENTS: Members to Hear Wind-Up Report on June 1
-------------------------------------------------------------
Cowells Investments Ltd will hold a final meeting for its
members on June 1, 2007, at 10:00 a.m.
During the meeting, the members will hear the liquidator's
report about the company's wind-up proceedings and property
disposal.
The company entered liquidation proceedings on Dec. 15, 2006,
according to the Troubled Company Reporter - Asia Pacific.
The company's liquidator is:
S. C. Davies
McGrathNicol
Level 13, 99 Gawler Place
Adelaide, South Australia 5000
Australia
Telephone:(08) 8468 3700
Webs site: http://www.mcgrathnicol.com
About Cowells Pty
Cowells Pty Ltd is engaged with holding companies. The company
is located in South Australia, Australia.
HMD RIGGING: Creditors Appoint Warren White as Liquidator
---------------------------------------------------------
At an extraordinary general meeting held on April 18, 2007, the
members of HMD Rigging Pty Ltd agreed to voluntarily wind up the
company's operations.
Warren White was appointed as liquidator at the creditors'
meeting held later that day.
Mr. White can be reached at:
Warren White
PPB Chartered Accountants
Level 10, 90 Collins Street
Melbourne, Victoria 3000
Australia
About HMD Rigging
Located in Victoria, Australia, HMD Rigging Pty Ltd is an
investor relation company.
JORD BELLOWS: Placed Under Voluntary Wind-Up
--------------------------------------------
The members of Jord Bellows Pty Ltd have agreed to voluntarily
wind up the company's operations.
The company's liquidator is:
John Fraser Stewart
c/o J. F. Stewart & Co.
5th Floor, 140 William Street
East Sydney, New South Wales 2011
Australia
About Jord Bellows
Jord Bellows Pty Ltd is a distributor of fabricated structural
metal. The company is located in New South Wales, Australia.
JOYNER GOLF: Placed Under Voluntary Liquidation
-----------------------------------------------
The members of Joyner Golf Management Pty Ltd had their meeting
on April 17, 2007, and resolved to voluntarily liquidate the
company's business.
Robyn Erskine & Peter Goodin were appointed as liquidators.
The Liquidators can be reached at:
Robyn Erskine
Peter Goodin
Brooke Bird & Co
Insolvency Practitioners
471 Riversdale Road
Hawthorn East 3123
Australia
Telephone:(03) 9882 6666
About Joyner Golf
Located in Victoria, Australia, Joyner Golf Management Pty Ltd
provides business services.
PEOPLE TELECOM: Partners with Australian Retailers Group
--------------------------------------------------------
People Telecom is the preferred telecommunication provider to
members of the Australian Retailers Association under a new
business partnership agreement signed in Sydney on May 3,
reports Sandra Rossi of COMPUTERWORLD.
People Telecom and the ARA reportedly will offer highly
competitive telecommunications packages that will be available
exclusively to the more than 10,000 ARA members nationally,
pursuant to the terms of the pact.
According to the report, People Telecom's CEO, John Stanton,
said the agreement provides a solid platform to deliver
innovative, cost effective retail solutions.
Ms. Rossi writes that the benefits to ARA members include
potential savings of up to 25 percent on their current
telecommunications spend as well as customized retail solutions
aimed at increasing mobility, productivity and therefore
profitability.
The ARA is a nationwide organisation representing the interests
of Australian retailers, Ms. Rossi relates.
About People Telecom
Headquartered in North Sydney Australia, and listed with the
Australian Stock Exchanges and the New Zealand Exchange Ltd.,
People Telecom Ltd.-- http://www.peopletelecom.com.au/--
formerly Swiftel Ltd, is engaged in the provision of
telecommunication services to the Australian corporate and
public markets. The Company offers a range of products to homes
and businesses, including broadband Internet access, fixed wire
phone services, mobile phone services and corporate data
products. The Company's wholly owned subsidiaries include
Swiftel Communications Pty Ltd, Swift Broadband Pty Ltd, People
Telecommunications Pty Limited, People Mobile Pty Ltd and PTS
Australia Pty Ltd.
Going Concern Doubt
The directors in the company's annual report said that the
company and the consolidated entity have made a loss from
ordinary activities of AU$22,103,061 and AU$21,609,667
respectively for the year ended June 30, 2006 (2005:
AU$2,746,931 and AU$596,412 respectively). Excluding the asset
impairment loss of AU$21,241,233 the company and the
consolidated entity made a loss of AU$861,828 and AU$368,434
respectively for the year ended June 30, 2006.
STOWFORD PTY: Members to Hear Liquidator's Report on May 29
-----------------------------------------------------------
The members of Stowford Pty Ltd will have their final meeting on
May 29, 2007, at 12:00 p.m., to hear the report of John
Georgakis, the company's liquidator, about the company's wind-up
proceedings and property disposal.
The company went into liquidation on Dec. 30, 2006, as reported
by the Troubled Company Reporter - Asia Pacific.
The Liquidator can be reached at:
John Georgakis
Barilla Pty Limited
Level 27, 8 Exhibition Street
Melbourne, Victoria 3000
Australia
Telephone: 03 9288 8000
About Stowford Pty
Stowford Pty Ltd -- trading as Corus Grosvenor Hotel Adelaide;
The Sheraton Hotel; The Victoria Hotel; Grosvenor Hotel and
Vista Hotel Alice Springs -- operates hotels and motels. The
company is located in South Australia, Australia.
SYMBION HEALTH: CEO Prepares to Step Down if Takeover Succeeds
--------------------------------------------------------------
Symbion Health Ltd. chief executive Robert Cooke, said on
Thursday he would step down from his position if a takeover bid
from rival Healthscope Ltd. was successful, Jane William of
Reuters reports.
Mr. Cooke, who had said in February that he was ready to make
Symbion a predator rather than prey, told Ms. William in an
interview that Healthscope was paying a premium to take over
Symbion and, in management issues, was likely to call the shots.
"I'm not a CEO who's going to die in the same job," he said.
The Troubled Company Reporter-Asia Pacific reported on May 4,
that Symbion Health Limited has received an AU$2.78-billion
takeover bid from a consortium led by Healthscope Ltd. The
other members of the consortium are Ironbridge Capital and
Archer Capital.
The proposal provides for Healthscope to acquire all shares of
Symbion on issue by way of a scheme of arrangement in exchange
for cash and Healthscope shares with an indicative implied value
of AU$4.30 per Symbion Health share.
Mr. Cooke said the Healthscope deal was still in its early days
and any scrip component would be heavily scrutinized.
Ms. William writes, quoting Mr. Cooke, "Our shareholders are
being asked to accept scrip in another company. We already have
a very strong position in pathology, and we know diagnostics and
hospitals as well, so we need to ensure the scrip that we're
getting has not just value attached to it but strategic
direction and underlying earnings that are strong. It's a price
that you would look at seriously, but whether it's a final price
and whether it's an acceptable price has yet to be determined by
the board and ultimately the shareholders."
According to the report, Mr. Cooke said that a final bid,
expected by the end of May, would have minimal conditions
attached leaving the way open for Symbion to pursue other
offers.
About Symbion
Melbourne-based Symbion Health Limited --
http://www.symbionhealth.com/-- formerly Mayne Group Limited,
provides health products and services. The principal activities
of Symbion Health, during the fiscal year ended June 30, 2006,
consisted of diagnostic and wellness products and services
through its Pathology, Imaging, Medical Centers, Pharmacy
Services and Consumer divisions. Symbion Pathology owns and
operates private pathology practices, providing pathology
services to healthcare professionals and their patients. Symbion
Medical Centers provides local communities with healthcare and
family medicine. Symbion Imaging provides imaging services to
patients on the eastern seaboard of Australia. Symbion Pharmacy
Services supplies a line of pharmaceuticals and associated
products to pharmacies. Symbion Consumer manufactures and
markets nutraceuticals (vitamins and mineral supplements).
On Jan. 30, 2007, Moody's Investors Service placed the Ba1
issuer rating of Symbion Health Limited on review for possible
downgrade after the company's announcement that it has
received an ownership proposal from Primary Health Care Limited
(unrated).
TERAPH PTY: Members to Receive Wind-Up Report on May 22
-------------------------------------------------------
A general meeting will be held for the members of Teraph Pty Ltd
on May 22, 2007, at 12:00 p.m.
John Georgakis, the company's liquidator, will present a report
about the company's wind-up report and property disposal at the
meeting.
As reported in the Troubled Company Reporter - Asia Pacific, the
company entered wind-up proceedings on July 19, 2006.
The Liquidator can be reached at:
John Georgakis
Level 26
8 Exhibition Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9288 8000
About Teraph Pty
Located in Victoria, Australia, Teraph Pty Ltd is an investor
relation company.
TOONGABBIE SPARES: Members & Creditors to Meet on June 4
--------------------------------------------------------
The members and creditors of Toongabbie Spares Pty Ltd will meet
on June 4, 2007, at 11:30 a.m., to hear the liquidator's report
about the company's wind-up proceedings and property disposal.
The company's liquidator is:
G. G. Woodgate
Woodgate & Co.
Level 14, 25 Bligh Street
Sydney, New South Wales
Australia
Telephone:(02) 9233 6088
Facsimile:(02) 9233 1616
About Toongabbie Spares
Located in New South Wales, Australia, Toongabbie Spares Pty Ltd
operates auto and home supply stores.
================================
C H I N A & H O N G K O N G
================================
APEX CONSULTANTS: Receiving Proofs of Debt Until May 21
-------------------------------------------------------
At an extraordinary general meeting held on April 25, 2007, the
members of Apex Consultants Limited resolved to liquidate the
company's business. Ngan Lin Chun Esther was appointed as
liquidator.
Mr. Ngan requires creditors to file their proofs of debt by
May 21, 2007.
Mr. Ngan can be reached at:
Ngan Lin Chun Esther
1902 MassMutual Tower
38 Gloucester Road
Wanchai, Hong Kong
BOVILLE INDUSTRIAL: Court Resets Wind-Up Hearing to May 9
---------------------------------------------------------
The High Court of Hong Kong rescheduled the wind-up hearing of
Boville Industrial Company Limited from May 23, 2007, to May 9,
at 9:30 a.m.
Yeung Man Loong Maxly filed the petition against the company on
March 21, 2007.
Yeung Man's solicitor is:
S. K. Wong & Co.
9th Floor, Grand Building
15-18 Connaught Road, Central
Hong Kong
CHARMKEY INDUSTRIAL: Names Tam Kwok Kong as Liquidator
------------------------------------------------------
On April 24, 2007, the sole shareholder of Charmkey Industrial
Limited passed a resolution winding up the company's operations
and Tam Kwok Kong was appointed as liquidator.
The Liquidator can be reached at:
Tam Kwok Kong
Room 1106, 11th Floor
Park-In Commercial Centre
56 Dundas Street
Mongkok, Kowloon
CITIC BANK: Increases Share Offer by 15%; Gains Up to US$5.9BB
--------------------------------------------------------------
China CITIC Bank increased its shares sale by 15% to US$5.95
billion after individual investors in Hong Kong ordered 230
times the number of shares available to them, various reports
say.
As reported by the Troubled Company Reporter - Asia Pacific on
April 24, 2007, Citic Bank just completed its initial public
offering and earned at least US$5.4 billion after floating its
shares priced at the top end of the range in Hong Kong and
Shanghai.
According to the TCR-AP, the lender raised US$1.7 billion
(CNY13.34 billion) selling 2.3 billion new yuan-denominated
shares in Shanghai at CNY5.8 apiece and sold another 4.89
billion shares in Hong Kong at HK$5.86 apiece, raising US$3.7
billion (HK$28.66 billion).
The TCR-AP added that the final size could increase further to
US$5.92 billion if the 15% greenshoe on the H-share portion of
the deal is exercised.
Citing the bank's statement with the Hong Kong Stock Exchange,
Bei Hu and Nipa Piboontanasawat of the Bloomberg News writes
that Citic Bank sold another 732.8 million shares in Hong Kong
at the offer price of HK$5.86 which raised another HK$4.29
billion dollars.
* * *
CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned
subsidiary of the state conglomerate Citic Group. With 416
branches, CITIC Bank had total assets of CNY689.5 billion at the
end of September 2006.
The bank carries Fitch Ratings' Individual strength of D and
support rating of 2 following its IPO which, improved the bank's
capitalization, strengthened ability of the government to
support and CNCB's historically close relationship with the
central government.
GALAXY CASINO: Moody's Maintains 'B1' Ratings & Stable Outlook
--------------------------------------------------------------
Moody's Investors Services on May 3, 2007, confirmed the B1
corporate family rating and senior unsecured rating of Galaxy
Casino S.A. and stable outlook. This rating action concludes
the review for possible downgrade begun on December 7, 2006.
The review was instigated because of the issuance of a
convertible bond by Galaxy's parent, Galaxy Entertainment Group
Limited which substantially increased consolidated group debt.
However, Moody's has concluded that the impact of this issuance
is not material enough to warrant a downgrade to the rating at
the Galaxy level.
"The zero coupon convertible bond is zero yield and will be lent
to Galaxy as a perpetual, non interest bearing shareholder loan,
that cannot be repaid before the outstanding bonds," says
Fullerton. "Even if the company does at a later date change the
terms of the agreement, it cannot repay the intra-group loan
with alternative debt unless bond covenant restrictions are
satisfied," he continued.
"This provides a certain level of protection to bondholders that
the increase in consolidated leverage does not impact their
position at this rating level," he added.
"The key immediate driver in Galaxy's rating is successful
completion of its casino projects and an effective ramp up," he
adds.
Moody's notes that Galaxy's operating profile has improved with
the recent opening of StarWorld, the use of fixed-price
construction contracts for a material portion on the Cotai Mega
Resort, and the ongoing growth in the Macau gaming market.
"However, we note that any further increases in capital
expenditure - if debt funded- and above those currently
considered by the company may place negative pressure on the
rating," continues Fullerton.
The stable outlook reflects anticipated strong growth in the
Macau gaming market which is partially offset by Galaxy's short
track record of operations, the associated risks of a rapidly
evolving market place, and the corresponding liquidity and
construction risks the company faces.
The rating is unlikely to come under upward pressure in the next
12 to 18 months until the Cotai Mega resort has been completed
and a track record of performance can be seen.
On the other hand, the rating may come under downward pressure
should there be a material deterioration in the company's
liquidity and financial profile. This may emerge if the numbers
of gamblers using Galaxy's facilities fall below expectations,
or if construction costs increase materially above expectations.
Such weakness may be evidenced by the following financial
metrics:
1) total coverage remaining below 2.0x on a sustained basis;
and
2) adjusted operating cash flow to adjusted debt remaining at
less than 10-15% on a sustainable basis.
The up-streaming of funds to the parent entity -- via dividends,
share buyback's or loans -- during the construction phase of its
various casino projects would also place negative pressure on
the company's financial profile and rating.
Galaxy Casino S.A. (Galaxy), incorporated in 2001, holds one of
six concessions and sub-concessions to undertake gaming
activities in Macau. The company currently operates a number of
casinos in Macau including the Star World complex. Galaxy also
intends to construct a large-scale resort in Macau, which is
expected to open in late 2008.
GREENTOWN CHINA: To Raise HK$2.35 Billion Through Shares Sale
-------------------------------------------------------------
Greentown China plans to raise up to HK$2.35 billion by selling
some 141.2 million shares at HK$16.35-HK$16.65 apiece, according
to a term sheet obtained by Reuters.
The shares, according to Reuters, represent 10.3% of Greentown's
existing capital and are priced at a 2% to 3.8% discount based
on the company stock's last closing price.
Greentown employed UBS to arrange the deal, the report says.
* * *
Greentown China Holdings Ltd is one of the major property
developers in China with a primary focus on Hangzhou and
Zhejiang province. It currently has a land bank in seventeen
cities in China with an attributable gross floor area of nine
million square meters. Greentown was listed on the Hong Kong
Stock Exchange in July 2006.
The company currently carries a Ba2/stable rating from Moody's.
On October 26, 2006, Standard & Poor's Ratings Services said
that it had assigned its 'BB' long-term corporate credit rating
to Greentown China Holdings Ltd. The outlook is stable.
At the same time, it assigned its 'BB' issue rating to a
proposed US$375 million issue of senior unsecured fixed-rate
notes. The issue is due 2013 and redeemable after 2010. The
proceeds will be used primarily for land acquisitions,
development costs, and general corporate purposes.
KWAI CHUEN: Wind-Up Petition Hearing Set for June 20
----------------------------------------------------
On April 18, 2007, Sit Wai Keung filed a petition to wind up the
operations of Kwai Chuen Container Service Company Limited.
The petition will be heard before the High Court of Hong Kong on
June 20, 2007, at 9:30 a.m.
LAU AND COMPANY: Creditors' Proofs of Debt Due on June 8
--------------------------------------------------------
At an extraordinary general meeting held on April 27, 2007, the
shareholders of Lau and Company (Holdings) Limited passed a
resolution liquidating the company's business.
Creditors are required to file their proofs of debt by June 8,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
Stella M.H. Cheng
1712 Tower One
Times Square, 1 Matheson Street
Hong Kong
LEGEND APPAREL: Wind-Up Petition Hearing Set for May 16
-------------------------------------------------------
A petition winding up the operations of Legend Apparel Limited
will be heard before the High Court of Hong Kong on May 16,
2007, at 9:30 a.m.
Jungle Holdings Limited filed the petition on Feb. 14, 2007.
Jungle Holdings' solicitor is:
Simmons & Simmons
35th Floor, Cheung Kong Center
No. 2 Queen's Road, Central
Hong Kong
O.K. CATERING: Court to Hear Wind-Up Petition on June 20
--------------------------------------------------------
A petition winding up the operations of O.K. Catering
Development Co. Limited was filed by Chan Sui King on April 16,
2007.
The petition will be heard before the High Court of Hong Kong on
June 20, 2007, at 9:30 a.m.
ROAD KING: Discloses Price Guidance on Two-Tranche Bond
-------------------------------------------------------
Road King Infrastructure has issued price guidance for a two-
tranche, dollar-denominated bond it plans to issue, Reuters
says, citing a source close to the transaction.
As reported by the Troubled Company Reporter - Asia Pacific on
May 3, 2007, Road King will issue US$300 million of bonds for
the purpose of buying real estate properties and refinancing
debts.
According to Reuters' source, the price guidance showed that the
planned US$300 million bond will be divided into two tranches,
where the company will issue US$200 million in seven-year,
fixed-rate bonds not callable for four years, at an indicated
yield of 7.5-7.75 percent.
The other US$100 million will be issued in a five-year floating-
rate not callable for one year for which it indicated a price of
around 225 basis points (bps) over London Interbank Offered
Rate, the source told Reuters.
The Standard & Poor's Ratings Services has assigned its BB
rating to the proposed senior unsecured notes, the TCR-AP said
on May 3, 2007.
* * *
Road King Infrastructure Limited -- http://www.roadking.com.hk/
-- is a publicly listed company in Hong Kong with its core
business in the investment, development, operation and
management of toll roads and bridges in China. Road King has a
toll road investment portfolio comprising over 20 toll roads and
bridges spanning approximately 1,100 kilometers in 8 provinces
of China. In 2004, Road King entered the property development
business in China and the developing property projects have
reached total gross floor area of 1.6 million square meters.
Fitch Ratings on Jan. 30, 2007, put Road King's 'BB+' Long-term
Issuer Default rating on Rating Watch Negative. The rating
action follows the announcement by Road King that it has signed
a new acquisition agreement with China's Sunco Group.
The company also carries Moody's Investors Service Ba1 corporate
family rating. On May 1, 2007, Moody's downgraded the senior
unsecured rating on Road King Infrastructure Finance (2004)
Ltd's bonds to Ba2 from Ba1. The outlook for the ratings is
negative.
In addition, Standard & Poor's Ratings Services lowered its
corporate credit rating on Road King Infrastructure Ltd. to BB
from BB+. The rating was also removed from CreditWatch, where
it had been placed with negative implications on Jan. 26, 2007,
following RKI's announcement that it planned to increase its
stake in a Chinese property developer, Sunco Binhai Land Ltd.,
(Sunco A) to 90% and the possible acquisition of 100% of Sunco
Real Estate Investment Ltd. (Sunco B). The outlook is stable.
ROAD KING: Moody's Downgrades Default Rating to BB From BB+
-----------------------------------------------------------
Fitch Ratings has on May 4, 2007, downgraded Hong Kong-based
Road King Infrastructure Limited's Long-term Foreign Currency
Issuer Default Rating to 'BB' from 'BB+' and removed the company
from Rating Watch Negative on which it was placed on January 30,
2007.
The issue rating on the USD200 million senior unsecured notes
due 2011 guaranteed by Road King has also been downgraded to
'BB' from 'BB+'. The Outlook on the IDR is Stable. The rating
actions follow greater clarity on the company's progress in the
acquisition of Sunco Binhai Land Limited.
The downgrade reflects the adverse change in Road King's risk
profile due to a substantial increase in exposure to real estate
development in mainland China. Real estate assets are expected
to account for more than 60% of Road King's consolidated total
assets following the completion of the Sunco acquisition, up
from 20% as at end-2005. This is a material shift in its
business focus, from a balanced mix of toll road and real estate
development, to a predominantly real estate-based business with
minor exposure to toll roads. Higher cash flow volatility will
follow. The projected credit metrics and risk profile of Road
King are now more in line with other mid double-B category
entities.
Liquidity is less of a concern for Road King. As at end-2006,
Road King had a cash balance of HKD1.1 billion, which is
complemented by steady operating cash flows from its toll road
portfolio (over HKD800m annually). Road King's capability to
access the capital market, which is demonstrated by an equity
placement in February 2007 (HKD0.5bn) and a proposed USD300m
notes issue currently being marketed, provide additional comfort
to the company's liquidity. Road King is expected to have
adequate financial capability to meet its current debt
obligations (end-2006: HKD1.6bn), as well as the outstanding
consideration for the Sunco acquisition (HKD1.3bn).
However, the agency notes that the consolidation of Sunco's debt
obligations after the acquisition and the funding of working
capital/outstanding land premium will result in further pressure
on Road King's credit metrics.
Road King's 'BB' rating reflects its heavy concentration in
residential property development. This focus exposes the
company to market downturns, which will result in volatile
revenues and funding pressure for working capital. China's
evolving regulatory environment adds further volatility given
that possible additional austerity measures is likely to affect
market sentiment and/or tighten credit available to the housing
market. Additionally, Road King's capability in managing a
different asset mix, particularly a substantially larger
property project portfolio, is yet to be tested.
Road King's rating is supported by its geographically
diversified toll road portfolio and a favorable macroeconomic
environment. Its toll road portfolio has generated steady and
stable cash flows, with over HKD800m in free cash flow generated
in 2006. China's GDP and trade growths are expected to provide
good support for traffic growth. In addition, the GDP growth
will lead to an increase in disposable income, which, together
with the urbanization trend and availability of mortgage
finance, will support the residential property market.
The Stable Outlook reflects Fitch's expectations that Road
King's credit and business profiles will remain stable in the
next 18 to 24 months. Factors such as a sharp drop in profit
margins, further substantial debt-funded land bank acquisitions
and significant adverse changes in the regulatory environments
for both the toll roads and property segments may result in a
negative rating action. On the other hand, a significant
increase in recurring income, or sustained free cash flow
generation are potential positive rating triggers.
Road King is a toll road owner/operator with a portfolio of 19
toll roads in eight provinces in China, with a total traffic
volume of 134 million vehicles. Following the Sunco
acquisition, Road King now has various real estate projects
located in a number of major cities in China, including Beijing,
Guangzhou, Tianjin and Jinan. Road King is controlled by Wai
Kee Holdings Limited, a Hong Kong-listed civil engineering
company.
Based in Beijing, Sunco commenced its property development
business in 1994 and has developed a total gross floor area of
over 7 million square meters.
=========
I N D I A
=========
ANDHRA BANK: Earns INR1.39 Billion in Quarter Ended March 31
------------------------------------------------------------
Andhra Bank posted a net profit of INR1.388 billion for the
quarter ended March 31, 2007, a slight increase from its
INR1.386 billion profit in the same quarter last year. Total
income increased from INR8.50 billion in the March 2006 quarter
to INR11.08 billion in the March 2007 quarter.
A copy of the financial results for the quarter ended March 31,
2006, is available for free at:
http://ResearchArchives.com/t/s?1e89
For the year ended March 31, 2007, the bank's net profit
increased 11% to INR5.38 billion from the INR4.86 billion earned
last year. Total income also increased from INR30.67 billion in
the year ended March 31, 2006, to INR37.62 billion in the year
ended March 31, 2007.
A copy of the bank's financial results for the year ended
March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e8a
Andhra Bank's board of directors has recommended a final
dividend of 18% in addition to interim dividend of 20% already
paid.
Headquartered in Hyderabad, India, Andhra Bank --
http://www.andhrabank-india.com/ -- offers various products and
services including deposits, loans, corporate banking products,
non-resident Indian services and technology products. The
deposits offered by the Bank include current deposits, savings
bank deposits and term deposits. It offers housing, personal,
mortgage and agricultural loans. Under corporate banking, it
offers working capital loans, export and import finance, foreign
currency loans, term finance and corporate loans.
As of June 2006, the Bank rendered services through 1,788
business delivery channels consisting of 1,216 branches, 123
extension counters, 412 ATMs and 37 satellite offices spread
over 21 states and two union territories in India.
* * *
On Sept. 16, 2002, Fitch Ratings assigned Andhra Bank a C/D
Individual Rating.
EASTMAN KODAK: Closes Unit Sale to Onex for US$2.5 Billion
----------------------------------------------------------
Eastman Kodak Company has completed the sale of its Health Group
to an affiliate of Onex Corporation, for up to US$2.55 billion.
The acquired business is continuing under the name Carestream
Health, Inc.
Eastman Kodak has received US$2.35 billion in cash, and will
receive up to US$200 million in additional future payments if
Onex achieves certain returns with respect to its investment.
Primarily because of tax-loss considerations, Eastman Kodak
expects to retain the vast majority of the initial US$2.35
billion cash proceeds. As previously indicated, the company
plans to use a portion of the proceeds to fully repay its
approximately US$1.15 billion of secured term debt.
Approximately 8,100 employees associated with the Health Group
have transferred to Carestream Health. The business is a
worldwide leader in information technology, molecular imaging
systems, medical and dental imaging, including digital x-ray
capture, medical printers, and x-ray film.
"We are now studying options for the cash that will remain after
we pay off the secured term debt," said Antonio M. Perez,
Chairman and Chief Executive Officer. "Through this rigorous
process with our Board of Directors, we are focusing on
financially attractive ways to drive profitable growth and
enhance shareholder returns."
About Onex Corporation
Onex Corporation (TSX: OCX) is a Toronto based investment firm.
It was founded in 1983 by Gerry Schwartz. Today it is a public
traded company but Schwartz has 67.6% of the voting control and
continues to serve as Chairman and CEO. Its head office is on
the 49th floor of BCE Place in Toronto, with a branch office in
New York City.
About Eastman Kodak Company
Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- is a worldwide vendor of imaging
products and services. The company has operations in India,
Australia, China, Hong Kong, Japan, Korea, Malasia, New Zealand,
Philippines, Singapore, Taiwan and Thailand.
* * *
In February 2007, Moody's Investors Service placed Eastman Kodak
Company's B1 Corporate Family Rating on review for a possible
downgrade. Moody's review was prompted by the company's sale of
the Kodak Health Group as well as the fundamental operating
performance of the company. Moody's commented that if the sale
of KHG was not pending, Moody's would expect to confirm the
company's B1 rating with a negative outlook.
In January 2007, Standard & Poor's Ratings Services placed its
ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch
with negative implications. The Rochester, New York-based
imaging company had US$3.5 billion in debt as of June 30, 2006.
GMAC LLC: Posts US$305 Million Net Loss in Qtr. Ended March 31
--------------------------------------------------------------
GMAC LLC reported a net loss for the first quarter of 2007 of
US$305 million, compared to net income of US$495 million for the
first quarter of 2006. The first quarter results reflect strong
performance in GMAC's global automotive finance and insurance
businesses; however, this performance was more than offset by a
significant loss at Residential Capital LLC due to continued
pressures in the U.S. mortgage market.
GMAC's first quarter net income generated by auto finance,
insurance and other operations -- excluding Residential Capital
LLC -- amounted to US$605 million, more than twice the earnings
generated by these same operations in the first quarter of 2006.
Residential Capital LLC, however, incurred a net loss of
US$910 million in the first quarter this year, driving a
consolidated net loss at GMAC of US$305 million.
Amid the sharp downturn in the U.S. mortgage market, many of
Residential Capital's nonprime assets were liquidated at a loss
or marked substantially lower to reflect the severe illiquidity
and depressed valuations in the prevailing market environment.
In addition, substantial incremental reserves were established
during the quarter against various nonprime loans on the balance
sheet.
"In light of the major setback incurred by ResCap, we have
already undertaken measures to significantly mitigate risk.
ResCap has reduced its nonprime mortgage asset portfolio,
decreased its warehouse lending against nonprime collateral, and
sharply curtailed its new domestic nonprime loan production,"
said GMAC's chief executive officer Eric Feldstein. "As a
result, ResCap should be far less vulnerable to further adverse
developments in the nonprime space.
"Meanwhile, we are pleased with the increased earnings in the
first quarter at our auto finance and insurance units, which
were able to partially offset the large earnings decline at
ResCap," Feldstein said. "Underlying operating trends in the
auto finance and insurance businesses show signs of continued
strength. Credit losses remain near historical lows; auto lease
residual performance remains positive; and strong insurance
underwriting profitability continues to be underpinned by a
favorable trend in loss levels and a very competitive combined
ratio."
Liquidity
GMAC and ResCap both maintained ample liquidity through the
first quarter. GMAC's consolidated cash and marketable
securities totaled US$12.8 billion as of March 31, 2007, down
from US$18.3 billion on Dec. 31, 2006. This decrease stems
largely from GMAC's repayment of significant debt maturities in
the first quarter.
GMAC successfully completed more than US$11 billion of funding
in the first quarter. In addition, the company established a
US$6 billion bridge funding facility to provide added liquidity
protection for wholesale auto finance securitizations.
Of GMAC's consolidated cash and marketable securities position,
ResCap held US$2.6 billion at the end of the first quarter, up
from US$2 billion at year-end 2006. To further enhance its
liquidity position, ResCap executed US$2.2 billion in new
committed funding facilities during the first quarter this year.
About GMAC LLC
GMAC LLC -- http://www.gmacfs.com/--formerly General Motors
Acceptance Corporation, is a financial services company
providing a range of services to a global customer base. It is
wholly owned subsidiary of General Motors Corp. The company
operates in three primary lines of business -- financing,
mortgage and insurance.
GMAC LLC has a subsidiary in India called GMAC Financial
Services India Limited.
* * *
In March 2007, Standard & Poor's Ratings Services affirmed its
'BB+/B-1' ratings on GMAC LLC. The outlook remains developing.
At the same time, Standard & Poor's affirmed its ratings on GMAC
LLC's 100%-owned subsidiary, Residential Capital LLC or ResCap
(BBB/A-3). S&P said ResCap's outlook remains negative.
GMAC LLC: Massive Losses Prompt S&P to Affirm BB+/B-1 Rating
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B-1'
counterparty credit rating on GMAC LLC. The outlook was revised
to negative from developing. At the same time, S&P lowered its
counterparty credit rating on GMAC's 100%-owned subsidiary,
Residential Cap LLC, to 'BBB-/A-3' from 'BBB/A-3'. The outlook
on ResCap is stable.
"The revision of GMAC's outlook and the downgrade of ResCap
reflect massive additional losses at ResCap's subprime mortgage
business, totaling US$910 million after-tax in first-quarter
2007," said Standard & Poor's credit analyst Scott Sprinzen.
These losses caused GMAC overall to be unprofitable (net loss of
US$305 million), notwithstanding strong performance by GMAC's
automotive finance, insurance, and other businesses. ResCap's
loss was significantly worse than S&P had anticipated. S&P now
believe that poor financial performance at ResCap could persist
for at least the next year, and that this will depress GMAC's
consolidated results, significantly dampening the potential for
an upgrade of GMAC within the time period addressed by the
outlook.
The ratings on GMAC continue to reflect the benefits afforded by
the diversity of its mortgage and insurance businesses, its
generally high asset quality, and its significant long-range
profit potential. The ratings also reflect the risks facing
GMAC because of its close business ties to General Motors Corp.
(GM; B/Negative/B-3), notwithstanding the completion of a
transaction on Nov. 30, 2006, whereby GM sold a 51% stake in
GMAC to a consortium headed by Cerberus Capital Management L.P.
As a result of the transaction with Cerberus, GMAC was able to
achieve a significant degree of ratings separation from GM.
Despite the beneficial aspects of the transaction, GMAC will
continue to face some GM-related risks. In particular, the
value of GMAC's core automotive finance franchise will still be
influenced by GM's fortunes. If GM's competitiveness
deteriorates further, especially if GM were ultimately to
declare bankruptcy, this could have a severe effect on the
credit and residual loss levels associated with GMAC's retail,
wholesale loan, and lease portfolios. There are limits on
GMAC's ability to contain its GM-related credit exposure: GMAC
is required to continue allocating capital to provide financing
to GM customers and wholesale dealers, in accordance with
historical practice. Although GMAC retains the right to make
individual credit decisions, GMAC has committed to funding a
broad credit spectrum of customers and dealers, largely
consistent with historical practice.
In addition, S&P believe there is potential for future
divisiveness among GMAC's owners from diverging business or
economic interests. Moreover, potential further ownership
changes in the long term are unknown because the consortium is
required to retain its investment in GMAC for only five years.
ResCap was the seventh-largest U.S. mortgage originator and
servicer in 2006. U.S. nonprime loan production accounted for
only 19% of its total loan production in 2006. The company is
very well-diversified geographically and in terms of mortgage
products. The differential between S&P's ratings on ResCap and
GMAC reflects ResCap's ability to operate its mortgage
businesses separately from GMAC's auto finance business, from
which ResCap is partially insulated by financial covenants and
governance provisions.
However, S&P expect to continue to link the ratings on ResCap
with those on GMAC in view of the latter's full ownership of
ResCap.
The ratings on GMAC could be jeopardized given further
deterioration at GM and/or ResCap that threatens to impinge on
GMAC's financial performance and funding flexibility. While S&P
believe GMAC could survive a bankruptcy filing by GM, the
ratings on GMAC would likely be lowered--possibly by several
notches if this were to occur--given the uncertainties such a
development would entail for GMAC. Improvement in GM's
prospects and/or a rapid rebound in ResCap's earnings would
enhance GMAC's upgrade potential. However, S&P would still need
to consider uncertainty regarding GMAC's ownership structure
beyond the next five years.
About GMAC LLC
GMAC LLC -- http://www.gmacfs.com/--formerly General Motors
Acceptance Corporation, is a financial services company
providing a range of services to a global customer base. It is
wholly owned subsidiary of General Motors Corp. The company
operates in three primary lines of business -- financing,
mortgage and insurance.
GMAC LLC has a subsidiary in India called GMAC Financial
Services India Limited.
HAYES LEMMERZ: Moody's Raises HLI Operating's Corp. Rating to B3
----------------------------------------------------------------
Moody's Investors Service raised to B3 from Caa1 the corporate
family and probability of default ratings of Hayes Lemmerz
International's wholly owned subsidiary, HLI Operating Company,
Inc., and changed the rating outlook to stable from negative.
Moody's also assigned a B2 (LGD3, 33%) to new senior secured
bank facilities to be issued by HLI, a B2 (LGD3, 33%) to a
secured term loan and synthetic letter of credit facility to be
issued by HLI Luxembourg S.a.r.l. and a Caa2 (LDG5, 87%) to new
senior unsecured notes also to be issued by HLI Luxembourg.
In a related action, Moody's placed the Caa2 rating of the
US$157 million of 10.5% senior unsecured notes under review for
downgrade. The US$157 million of 10.5% senior unsecured notes
are not callable until July 2007 and, thus are expected to be
repurchased. The review will consider the degree to which
covenants and rights are stripped from any notes not purchased.
The rating will be withdrawn if substantially all of these notes
are purchased.
These rating actions are based upon the company successfully
completing a series of transactions which include the closing of
the announced US$180 million common stock rights offering, the
issuance of the new senior secured bank debt, and the issuance
of the new senior unsecured note. The common stock rights
offering will be used to repay the company's existing 10.5%
senior unsecured notes. As part of the transaction, the new
senior secured term loan, senior secured letter of credit
facility, and senior unsecured notes will be issued by a
European holding company. The transaction will reduce leverage
and better align Hayes Lemmerz's debt service requirements with
its geographic cash generating capacity. The ratings also
reflect the company's improved credit metrics resulting from the
transaction and the continuing challenges of the automotive
supplier industry.
"The stable outlook reflects the company's progress in gaining
operating flexibility through several recent actions, as well as
the refinancing plan", noted Timothy Harrod of Moody's Investors
Service. These include the restructuring actions taken last
year, which have reduced wages and moved operations to low cost
countries and asset sales in the automotive components segment.
These actions combined with the lower leverage, improved
interest coverage, and improved liquidity contemplated by the
proposed transaction should support the company's ability to
negotiate the current industry challenges of the automotive
supplier sector at the currently assigned Corporate Family
Rating. These challenges include market share losses of the
North American Big-3 OEMs, and increasing raw material and
energy cost.
For the last twelve months ended Jan. 31, 2007, Hayes Lemmerz's
total debt/EBITDA approximated 5.5x. EBIT/interest expense was
approximately 0.5x. Free cash flow was approximately negative
US$3 million with cash on hand of US$38 million. Availability
under the existing revolving credit was approximately US$80
million at Jan. 31, 2007. Pro forma for the transaction
Debt/EBITDA is expected to reduce to approximately 4.7x and
EBIT/Interest expense will moderately improve to approximately
0.63x. Liquidity is expected to improve as part of the
refinancing, as the new revolving credit will increase in size
to US$125 million (and be largely unused over the near term) and
the transaction will increase the amount of cash on hand.
Ratings raised:
-- Corporate Family Rating, to B3 from Caa1; and
-- Probability of Default Rating to B3 from Caa1.
Ratings assigned:
-- B2 (LGD3, 33%) to the senior secured revolving
credit facility;
-- B2 (LGD3, 33%) to the senior secured term loan
facility;
-- B2 (LGD3, 33%) to the senior secured synthetic
letter of credit facility; and
-- Caa2 (LGD5, 87%) to the senior unsecured notes;
These ratings will be withdrawn upon their repayment:
-- B1 (LDG2, 20%) for the 1st lien senior secured
revolving credit;
-- B1 (LDG2, 20%) for the 1st lien senior secured
term loan; and
-- Caa1 (LDG3, 47%) for the 2nd lien term loan C.
These rating is under review for downgrade:
-- Caa2 (LGD5, 72%) for the existing 10.5% senior
unsecured notes
Outlook change:
-- To Stable from Negative
The ratings of the new issues reflect their priority of payout
in Moody's Loss Given Default Methodology. As a result the
proposed transaction's shift of the preponderance of debt to
Hayes Lemmerz's European operations, the Europe, Middle East,
and Africa or EMEA Loss Given Default Methodology is applied.
The significant impact of the EMEA LGD Methodology compared to
the US methodology is the senior secured treatment of trade
payables.
The EMEA LGD generally assumes that a consensual "out of court"
restructuring will be pursued as opposed to court administered
liquidations. In a consensual restructuring scenario management
and financial creditors seek to ensure that the trade creditors
remain current to avoid any local insolvency petition being
invoked. The assumed outcome of a financial restructuring is
that the trade creditors would be preserved and ultimately
transferred to a new or restructured entity, without incurring
losses. As a result, all trade payables are raised to level of
the highest secured obligations.
Hayes Lemmerz International, headquartered in Northville,
Michigan, is a global supplier of steel and aluminum automotive
and commercial vehicle highway wheels, as well as aluminum
components for brakes, powertrain, suspension, and other
lightweight structural products. Worldwide revenues approximate
US$2.2 billion. The company has 33 facilities worldwide
including India, Brazil and Germany, among others.
HAYES LEMMERZ: Planned Debt Reduction Cues S&P to Up Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on automotive supplier Hayes Lemmerz International Inc.
to 'B' from 'B-,' reflecting planned debt reduction from a
proposed refinancing and equity rights offering, as well as
improved operating results, particularly in the company's wheels
business outside the U.S. At the same time, the ratings were
removed from CreditWatch with positive implications, where they
were placed on March 16, 2007. The outlook is stable.
Standard & Poor's also assigned its bank loan and recovery
ratings to Hayes' proposed US$495 million senior secured credit
facilities, which consist of a US$125 million revolving credit
facility due 2013 and a US$370 million European term loan due
2014. The combined facilities were rated 'B' with recovery
ratings of '2', indicating S&P's expectation for substantial
(80%-100%) recovery of principal in the event of default or
bankruptcy.
In addition, Standard & Poor's assigned its 'CCC+' rating to
Hayes' proposed US$150 million or euro-equivalent senior
unsecured notes, to be issued by a European subsidiary.
Proceeds from the proposed new debt, as well as a US$180 million
equity rights offerings, would be used to replace Hayes'
existing senior secured credit facilities and repurchase the
company's outstanding senior unsecured notes. S&P affirmed its
ratings on Hayes' existing senior secured credit facilities and
expect to withdraw those ratings upon closing of the proposed
transactions. The rights offering is subject to approval of
Hayes' shareholders at a special meeting May 4, 2007.
Hayes Lemmerz International, headquartered in Northville,
Michigan, is a global supplier of steel and aluminum automotive
and commercial vehicle highway wheels, as well as aluminum
components for brakes, powertrain, suspension, and other
lightweight structural products. Worldwide revenues approximate
US$2.2 billion. The company has 33 facilities worldwide
including India, Brazil and Germany, among others.
UTI BANK: To Change Name to Axis Bank; Names Whole Time Chairman
----------------------------------------------------------------
UTI Bank Ltd wants to change its name to "Axis Bank." In a
meeting on April 30, 2007, the bank's board of directors
proposed the name change, subject to the approval by the Central
Government (Registrar of Companies) and the Reserve Bank of
India.
According to a filing with the Bombay Stock Exchange, the
recommendation for the change arose from the existence of
several shareholder-unrelated entities using the UTI brand, and
the consequent brand confusion that it generated.
The name will take effect after the approval of shareholders,
RBI and the Central Government. The bank anticipates this to
occur by the end of June 2007, and the re-branding process to be
completed three months later.
During the meeting, the board also recommended the appointment
of P. J. Nayak as the bank's Whole Time Chairman effective
Aug. 1, 2007. The appointment is still subject to the approval
of the bank's shareholders and the RBI among others.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.com/-- is engaged in treasury and other
banking operations. The treasury services segment undertakes
trading operations on the proprietary account, foreign exchange
operations and derivatives trading. Revenues of the treasury
services segment primarily consist of fees and gains or losses
from trading operations and interest income on the investment
portfolio. Other banking operations principally comprise the
lending activities (corporate and retail) of the bank. The
corporate lending activity includes providing loans and
transaction services to corporate and institutional customers.
The retail lending activity includes raising of deposits from
customers and providing loans and advisory services to customers
through branch network and other delivery channels. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On November 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its US$1-billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2006, that Standard & Poor's Ratings Services maintained
its 'C' bank fundamental strength rating to the bank.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the rating is stable.
VIJAYA BANK: Earns INR636.5 Million in Quarter Ended March 31
-------------------------------------------------------------
Vijaya Bank posted a net profit of INR636.50 million for the
quarter ended March 31, 2007, a turnaround from the INR345.30
million net loss it incurred in the quarter ended March 31,
2006. Total income increased from INR6.69 billion from the
March 2006 quarter to INR8.88 billion in the latest quarter
under review.
A copy of the bank's financial results for the quarter ended
March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e87
For the year ended March 31, 2007, the bank reported a net
profit of INR3.31 billion, 161% up from the INR1.27 billion
booked in the year ended March 31, 2006. The bank's revenues
rose from INR25.96 billion in FY2006 to INR30.98 billion in
FY2007.
A copy of the bank's financial results for the year ended
March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?1e88
The bank's board of directors, at its meeting on April 30,
recommended a final dividend at 10% in addition to interim
dividend of 10% paid during the year.
Headquartered in the southern state of Karnataka, Vijaya Bank
was established in 1931 and nationalized in 1980. Historically
a lender to small and medium enterprises, the mid-sized bank has
focused on retail loans in the past 5 years and has expanded
beyond its traditional south Indian market.
Fitch Ratings on Feb. 26, 2007, upgraded the bank's Individual
rating to 'C/D' from 'D'.
VIJAYA BANK: To Raise INR200 Cr. in 1st Quarter of FY2007-08
------------------------------------------------------------
Vijaya Bank plans to raise INR200 crore as tier II capital
before the end of the first quarter in financial year 2007-08,
The Economic Times reports, citing the bank's Chairman &
Managing Director Prakash P. Mallya.
The bank delayed a capital raising exercise to the first quarter
because interest rates showed extreme volatility in the fourth
quarter in FY2006-07, Mr. Mallya told The Economic Times.
According to the report, Mr. Mallya added that the bank can
raise up to INR350 crore as upper tier-I and have a head-room of
another INR1,100 crore as tier-II. He asserted there will be no
further equity dilution since the Union government holds 53%
share in the bank.
Headquartered in the southern state of Karnataka, Vijaya Bank
was established in 1931 and nationalized in 1980. Historically
a lender to small and medium enterprises, the mid-sized bank has
focused on retail loans in the past 5 years and has expanded
beyond its traditional south Indian market.
Fitch Ratings on Feb. 26, 2007, upgraded the bank's Individual
rating to 'C/D' from 'D'.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Wins Multi-Million Euro Contract from RTE
---------------------------------------------------------
Alcatel-Lucent has been selected by RTE to deploy an additional
several-thousand-kilometer fiber-optic network on RTE's high-
voltage transmission grid. The agreement includes project
management, engineering, supply, network installation and
commissioning, as well as maintenance for the majority of the
network.
This turnkey fiber-optic network, code-named ROSE 7, is the
continuation of a project that began in 2004 with a 500 Km pilot
project in Brittany which has grown to over 5,000 Km. It will
enable RTE to secure its electrical transmission network with
reliable, fast communications links and resell excess fiber-
optic capacity to telecom operators and local authorities
through its subsidiary @rteria.
"Alcatel-Lucent quickly got into the mindset that project
management requires; all project constraints had to be
addressed, and most particularly - in the case of RTE - the
operational constraints of a very high-voltage electricity
network. Alcatel-Lucent had to be willing to redeploy its
resources, adjust its schedules, and change the project
execution at any moment, depending on our constraints," said Luc
Desmoulins, RTE Purchasing Director.
"This contract highlights Alcatel-Lucent's extensive experience
meeting all the requirements and deadlines of a major utility
player, including managing and deploying a state-of-the-art
network that has unique technical challenges," said Michael
Fabian, President of Alcatel-Lucent's Enterprise and Government
Services.
About RTE
RTE is the French electricity transmission system operator. It
is a public service company responsible for operating,
maintaining and developing the high and extra high voltage
network. It guarantees the safety and proper operation of the
power system. RTE transports electricity between electricity
suppliers and consumers, whether they are electricity
distributors or industrial consumers directly connected to the
transmission system.
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 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.
ARMSTRONG WORLD: Earns US$26 Million in Quarter Ended March 31
--------------------------------------------------------------
Armstrong World Industries, Inc., reported first quarter 2007
net sales of $863.4 million, up 5 percent, from $822.2 million
in the same period for 2006. The sales increase includes a $15
million benefit from foreign exchange. Reported operating
income from continuing operations grew to $65.5 million from
$47.2 million in the first quarter of 2006. Adjusted operating
income from continuing operations of $61.7 million increased 28
percent compared to $48.2 million in the prior year quarter on
the same basis.
The Company uses adjusted income from operations in managing the
business, and believes the adjustments provide users of this
financial information with meaningful comparisons of operating
performance between periods. Adjusted income excludes the impact
of fresh-start reporting, restructuring charges and related
costs, and certain other gains and losses to allow meaningful
comparisons of operating performance. These adjustments
amounted to a benefit of $3.8 million in the first quarter of
2007 compared to charges of $1.0 million in the first quarter of
2006.
First quarter 2007 adjusted operating income grew $14 million
year-over-year despite significant weakness in the U.S.
residential markets. Growth in the company's commercial products
and in its international businesses combined with improved
manufacturing performance more than offset the impact of lower
sales of many residential products.
Segment Highlights
Resilient Flooring net sales were $290.6 million in the first
quarter of 2007 and $294.2 million in the same period of 2006.
Excluding the favorable impact of foreign exchange rates, net
sales decreased four percent. The decline was due to decreased
volume for residential vinyl products and lower laminate prices
in North America, partially offset by growth in Europe and Asia.
Reported operating income was $10.8 million in the quarter
compared to a reported loss in the first quarter of 2006 of $3.9
million. Adjusted operating income of $8.4 million improved
compared to income of $5.3 million on the same basis in the
prior year period. The improvement was realized as reduced
manufacturing expense and lower SG&A expense offset the decline
in sales.
Wood Flooring net sales of $199.2 million in the first quarter
declined 3 percent from $205.2 million in the prior year as
volume declines related to the residential housing market
slowdown more than offset the benefit from previously announced
acquisitions. Reported operating income of $8.4 million in the
quarter was below income of $11.5 million reported in the first
quarter of 2006. Adjusted operating income of $5.0 million
declined from income of $11.5 million on the same basis in the
prior year period. The reduction in operating income was due to
the decline in sales volume, unfavorable product mix and higher
lumber prices.
Building Products net sales of $313.9 million in the first
quarter of 2007 increased from $267.9 million in the prior year.
Excluding the effects of favorable foreign exchange rates of $8
million, sales increased by 14 percent due to price, volume
growth in Europe and the Pacific Rim and improved product mix in
North America. Reported operating income increased to $53.7
million from $40.0 million in the first quarter of 2006.
Adjusted operating income of $57.5 million grew from income of
$40.4 million on the same basis in the prior year period. The
growth was driven by improved price realization, international
volume growth, better product mix and improved manufacturing
productivity. These benefits were only partially offset by
inflation in raw materials and by increased investment in SG&A
to support the sales growth.
Cabinets net sales in the first quarter of 2007 of $59.7 million
increased 9 percent from $54.9 million in 2006 on increased
volume. Reported operating income for the first quarter of $0.9
million improved from $0.2 million in the prior year, driven by
the sales growth, partially offset by increased investment in
SG&A to support the sales growth. There were no material
adjustments to operating income in either period.
Unallocated corporate expense of $8.3 million in 2007 increased
from $0.6 million in 2006. Adjusted expense of $10.8 million
increased from $9.2 million on the same basis in the prior year,
primarily due to a lower U.S. pension credit driven by
unfavorable demographic changes.
Outlook
Global macroeconomic indicators suggest a diverse outlook for
the company's key markets for 2007. Based on these indicators,
the company expects flat to modest growth across North American
and European commercial markets, and sustained growth in the
Pacific Rim. The outlook for North American residential markets
is uncertain due to the continuing weakness in U.S. housing
starts and mixed indicators for renovation. On a consolidated
basis, improved prices and increased manufacturing productivity
are anticipated to offset cost inflation.
About Armstrong
Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world.
The company has Asia-Pacific locations in Australia, China, Hong
Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam. It also has locations in
Colombia, Costa Rica, Greece and Iceland, among others.
* * *
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services assigned its 'BB' bank loan
rating to the proposed US$1.1 billion senior secured bank
facility of Armstrong World Industries Inc. (D/--/--), based on
preliminary terms and conditions.
As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on Oct. 2,
2006. The outlook is stable.
DIRECTED ELECTRONICS: To Report 1Q 2007 Results on Thursday
-----------------------------------------------------------
Directed Electronics, Inc. will report financial results for the
first quarter ended March 31, 2007, after the market closes on
Thursday, May 10, 2007.
The Company's executive officers will host a conference call on
the same day at 5:00 p.m. Eastern Time. The Company will
discuss its results, its progress and performance for the
quarter and its outlook for the future. The conference call may
include forward-looking statements.
To participate in the conference call, investors should dial
888-802-2225 ten minutes prior to the call. International
callers should dial 913-312-1268. A telephone replay of the
call will be available through 11:59 p.m. Eastern Time on
May 24, 2007 by calling (888) 203-1112 (passcode: 7573434).
International callers should dial (719) 457-0820 and use the
same passcode.
About Directed Electronics
Directed Electronics, Inc. (Nasdaq: DEIX)
-- http://www.directed.com/-- is the largest designer and
marketer of consumer branded vehicle security and convenience
systems in the United States based on sales and a major supplier
of home audio, mobile audio and video, and satellite radio
products. As the sales leader in the vehicle security and
convenience category, Directed offers a broad range of products,
including security, remote start, hybrid systems, GPS tracking
and navigation, and accessories, which are sold under its
Viper(R), Clifford(R), Python(R), and other brand names. In the
home audio market, Directed designs and markets Definitive
Technology(R) and a/d/s/(R) premium loudspeakers. Directed's
mobile audio products include speakers, subwoofers, and
amplifiers. Directed also markets a variety of mobile video
systems under the Directed Video(R), Directed Mobile Media(R)
and Automate(R) brand names. Directed also markets and sells
certain SIRIUS- branded satellite radio products, with exclusive
distribution rights for such products to Directed's existing
U.S. retailer customer base. The company has Asian Sales
offices, including in Indonesia, Japan, Malaysia, Singapore,
Korea and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 13, 2006, that Standard & Poor's Ratings Services lowered
its ratings on consumer electronics maker Directed Electronics
Inc. following its acquisition of Polk Audio Inc., a provider of
loudspeakers and audio equipment for homes and cars, for US$136
million in cash. The corporate credit rating was lowered to B+'
from 'BB-', and was removed from CreditWatch negative where it
was placed on Aug. 25.
INCO LIMITED: Indonesian Unit's 1Q Net Income Increased by 426%
---------------------------------------------------------------
PT International Nickel Indonesia Tbk, a subsidiary of Inco
Ltd., reported unaudited net earnings of $227.8 million for the
first quarter of 2007, up 426% from restated net earnings of
$43.3 million for the first quarter of 2006. Sales increased
146% to US$446.7 million in the three months ended March 31,
2007 from US$181.9 million in the corresponding quarter of 2006.
PT Inco's realized price for nickel in matte averaged US$29.149
per tonne in the first quarter of 2007, compared to US$11.136
per tonne in the corresponding 2006 period and US$24,725 per
tonne in the fourth quarter of 2006. Under the Company's long
term, must-take U.S. dollar-denominated sales contracts, the
selling price of its nickel in matte is determined by a formula
based on the London Metal Exchange cash price for nickel, and
CVRD Inco Limited's average net realized price for nickel.
Production of nickel in matte for the first quarter of 2007 was
17,980 tonnes, compared to 17,361 tonnes in t he same period in
2006. During the 2007 first quarter, PT. Inco provided
approximately 238,000 wet tones of saprolitic ore from its
Pomalaa operation to PT Antam Tbk.
The unit cash cost of production in the 2007 first quarter was
up 25% to US$7,386 per tonne from US$7,241 per tonne in the
fourth quarter of 2006. The increase was mainly due to the
higher consumption of diesel to offset reduced availability of
hydroelectric power resulting form lower than average rainfall.
The Company's operation consumed 29.0 million litres of diesel
in the first quarter of 2007, compared to 27.3 million litres in
the fourth quarter of 2006. In addition, increased LME prices
for nickel resulted in higher royalties and water levies paid to
the Indonesian Government. In order to maximize production in
the current high nickel price environment, PT inco will continue
to use relatively expensive fuel-fired power when sufficient
low-cost hydro electronic power is not available.
"PT Inco's excellent results in the first quarter of 2007
reflected attractive market conditions, strong operating
performance and effective management strategies to address much
lower than average rainfall from September 2006 to February
2007, when we began an aggressive cloud seeding program. Since
then, rainfall levels have been above average in PT Inco's
catchments areas. While lake levels remain significantly lower
than at the same time last year, they should be sufficient to
enable us to reach the higher end of our previously stated 2007
production taget of 155-to-165 million pounds of nickel in
matte. We are therefore raising our 2007 production target to
160-to-165 million pounds of nickel in matte. The addition of
new diesel generators should help us achieve our production
goal," said Arif Siregar, President and Chief Executive Officer.
Cash provided by operating activities was US$291.5 million in
the first quarter of 2007, up sharply from US$45.8 million in
the same quarter last year. Corporate tax payments during the
first quarter of 2007 rose to US$134.0 million, well above
US$28.5 million in the same period of 2006. Cash capital
expenditures were US$28.6 million in the first quarter of 2007,
up from US$22.2 million in the prior year period. The net
increase in cash and cash equivalents of US$260.2 million
brought the quarter-end 2007 cash and cash equivalents balance
to US$738.1 million, substantially higher than the US$477.9
million at December 31, 2006.
Dividend
On March 30, 2007, PT Inco's shareholders approved a final
dividend for 2006 of US$0.025 per share, and an extraordinary
dividend of US$0.475 per share, payable on may 11, 2007 to
shareholders of record on April 27, 2006. When combined with
the interim dividend of US$0.025 per share paid on December 5,
2006, the Company's dividends for 2006 totaled US$0.525 per
share. Total dividends for 2005 were US$0.11 per share.
About Inco Ltd.
Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)
-- http://www.inco.com/-- produces nickel, which is used
primarily for manufacturing stainless steel and batteries. Inco
also mines and processes copper, gold, cobalt, and platinum
group metals. It makes nickel battery materials and nickel
foams, flakes, and powders for use in catalysts, electronics,
and paints. Sulphuric acid and liquid sulphur dioxide are
produced as byproducts. The company's primary mining and
processing operations are in Canada, Indonesia, and the U.K.
Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.
NUTRO: Moody's Puts Ratings on Review for Possible Upgrade
----------------------------------------------------------
Moody's Investors Service changed its review for possible
downgrade of the ratings of Nutro Products, Inc., including the
corporate family rating of B2, to a review for possible upgrade.
This change in direction of the review follows the announcement
that Mars, Incorporated will acquire the global pet food
operations of Nutro, subject to regulatory approvals. Terms of
the acquisition by Mars have not been disclosed. LGD
assessments are also subject to change.
Ratings under review for possible upgrade:
* Corporate family rating at B2
* Probability of default rating at B2
* Senior secured bank term loan at Ba3
* Senior secured bank revolving credit agreement at Ba3
* Senior unsecured notes at B3
* Senior subordinated notes at Caa1
The prior review for possible downgrade, begun on April 11,
2007, was based on Moody's concern that the widening recall of
wet pet foods produced by Nutro's third party manufacturer Menu
Foods and Nutro's concurrent recall of all Nutro wet pet foods
made with wheat gluten. Moody's was concerned that this recall
would negatively impact sales and profitability of highly
leveraged Nutro, delaying Moody's previously anticipated
reduction in leverage beyond the end of fiscal 2007.
Moody's review will focus on both the successful execution of
the acquisition, the post transaction credit profile of the
company and the ultimate disposition of the company's debt.
Should most of Nutro's debt be repaid, its ratings will be
withdrawn.
About Nutro Products
Based in City of Industry, California, Nutro Products, Inc.
-- http://www.nutroproducts.com/-- formulates and manufactures
dry and canned food, biscuits, and treats for dogs and cats.
The company's brand names include Natural Choice, MAX, and
Gourmet Classics. Its products are available in feed stores and
pet supply shops, such as Petco and PetSmart, across the U.S.
And Canada. Nutro's products are also distributed worldwide,
including Indonesia, Peru and Austria, among others.
TELKOMSEL: To Issue IDR2 Trillion in Bonds in 3rd Quarter 2007
--------------------------------------------------------------
PT Telekomunikasi Selular Indonesia plans to issue IDR2 trillion
in bonds in the third quarter of this year to help finance its
capital expenditures for 2007, Dow Jones Newswire reports.
Telkom is also seeking bank loans to help finance its US$1.5
billion plan to develop its cellular business, and will use its
internal cash to cover capital expenditures, the report adds.
About Telkomsel
PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share. By the end of June 2006,
Telkomsel had close to 29.3 million customers, which, based on
industry statistics, represented a market share of more than
50%.
Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, an
internationally, through 259 international roaming partner in 53
countries as of June 2006. The company provides its subscribers
with the choice between two prepaid cards-simPATI and kartuAs of
a pre-paid simPATI service, or the post-paid kartuHALO service,
as well as a variety of value-added services and programs.
Fitch Ratings, in August 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.
=========
J A P A N
=========
ALITALIA SPA: TPG Consortium Earmarks EUR5 Billion for Carrier
--------------------------------------------------------------
A consortium of TPG Capital, MatlinPatterson Global Advisers and
Mediobanca has allotted EUR5 billion to acquire and turn around
Alitalia S.p.A., The Age reports citing La Stampa.
The consortium, The Age citing La Stampa, split the amount into:
-- EUR1.2 billion to acquire the Italian government's 39.9%
stake in Alitalia; and
-- EUR3.8 billion to implement the carrier's business plan.
The consortium is one of the three final bidders that have
submitted non-binding offers as well as business plans for the
national carrier.
Other bidders are:
-- OAO Aeroflot and Unicredito Italiano S.p.A.; and
-- AirOne S.p.A. and Intesa-San Paolo S.p.A.
Russia Supports Aeroflot Bid
Meanwhile, Russia has reiterated its support for Aeroflot's bid
to acquire Alitalia, The Age relates.
Russian Finance Minister Alexei Kudrin said he had discussed the
matter with Finance Minister Tommaso Padoa-Schioppa.
"We want to develop not only our markets but other markets too.
By means of Alitalia, we want to get hold of the markets which
Alitalia has access to," Mr. Kudrin said.
If Aeroflot acquires Alitalia, it could expand its access to
Europe, which is limited by intergovernmental agreements, The
Age suggests. Under such agreements, Russia must allow
reciprocal access to foreign carriers if it enters their
markets.
The Age, citing experts, suggests that acquiring Alitalia would
allow Aeroflot to bypass the agreements and protect its domestic
market share without having to compete with cheap offers from
foreign carriers.
In a TCR-Europe report on April 17, Transport Minister
Alessandro Bianchi told Dow Jones Newswires that the buyer for
Alitalia would have to spend around EUR3 billion to acquire and
return it to profitability. Mr. Bianchi said Alitalia's buyer
would have to spend EUR1.5 billion for buying the carrier, and
another EUR1.5 billion to turn it around.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- generates around EUR4.8 billion in
annual revenue and employs more than 11,000 people. Alitalia
flies to about 80 destinations in more than 60 countries,
including Argentina, China, and Japan, from hubs in Rome and
Milan and operates a fleet of about 185 aircraft. The Italian
government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection. The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.
ALL NIPPON: Bombardier Makes an Unscheduled Landing
---------------------------------------------------
All Nippon Airways' subsidiary, Ibex Airlines Co., made an
unscheduled landing shortly after takeoff in western Japan on
Thursday after the pilots heard unusual noises from its landing
gear, The China Post Online reports, citing the Associated
press.
According to Hajime Shimabara, an official with flight operator
Ibex Airlines Co., none of the 54 people aboard the Bombardier
CRJ-100 jet were injured and there was no damage to the plane.
China Post writes that the pilots of the Fukushima-bound flight
returned to Osaka airport as a precaution, shortly after taking
off at 8 a.m., Shimabara said. He said the "abnormal noises"
appeared to have come from the flaps that store the landing
gear.
The unscheduled landing was the latest in a string of problems
with ANA's fleet of Canadian-made Bombardier aircraft, which
forced Japan's second-largest airline to issue a formal apology
last year.
The Troubled Company Reporter-Asia Pacific reported on March 15,
2007, that All Nippon Airways grounded its entire fleet of
Bombardier planes and had the government order emergency
inspections after the front landing gear on one failed to
descend, forcing the aircraft to make an emergency landing with
60 people on board.
About All Nippon
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The airline flies to all key Asian destinations, the United
States and Canada, France, the United Kingdom and key European
countries.
* * *
Moody's Investors Service, on April 19, 2007, placed the Ba1
senior unsecured debt ratings of All Nippon Airways Co., Ltd.
under review for possible upgrade.
The rating action reflects ANA's high and stable profitability
despite the ongoing price hikes of aircraft fuel, as well as
Moody's view that the company's financial flexibility is likely
to be further improved by its asset disposition related to its
hotel business.
As reported in the Troubled Company Reporter - Asia Pacific on
June 13, 2006, Fitch Ratings said the credit quality gap between
Japan's top two airlines continues to widen with All Nippon
Airways Co. Limited -- rated BB+/Stable -- benefiting from
market improvements, while its rival, Japan Airlines Corporation
-- rated BB-/Stable -- continues to be grounded by internal
woes.
On May 3, 2006, Standard & Poor's Ratings Services revised its
outlook on the BB- long-term corporate credit rating on All
Nippon Airways to positive from stable, reflecting the company's
improved earnings and expectations for stable profitability.
BOSTON SCIENTIFIC: COO Says Company Mulls Sale of Noncore Assets
----------------------------------------------------------------
Boston Scientific Corp. is reviewing its portfolio and will
consider selling parts that are not considered strategic, long-
term contributors, Jon Kamp of The Wall Street Journal reports,
citing the company's chief operating officer Paul LaViolette as
saying.
According to WSJ, Mr. LaViolette further stated that the company
is also undertaking a corporate-wide efficiency improvement
program, with estimated savings to be in the "hundreds of
millions of dollars" range.
"Anything we do would be to improve operating effectiveness,"
the Journal quoted Mr. LaViolette as saying during a health-care
conference.
About Boston Scientific
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, France, Germany, and Japan, among
others.
* * *
Moody's Investor Services, effective April 21, 2006, lowered the
credit ratings of Boston Scientific following the close of the
acquisition of Guidant Corporation. Affected ratings include:
senior notes to Baa3 from Baa1; short-term rating to Prime-3
from Prime-2; senior shelf to (P)Baa3 from (P)Baa1; subordinated
shelf to (P)Ba1 from (P)Baa2; and preferred stock shelf to
(P)Ba2 from (P)Baa3.
BOSTON SCIENTIFIC: Names Sam Leno as Chief Financial Officer
------------------------------------------------------------
Boston Scientific Corporation disclosed that Sam Leno will join
the company as Chief Financial Officer and Executive Vice
President of Finance and Information Systems.
Mr. Leno is currently CFO and Executive Vice President of
Finance and Corporate Services for Zimmer Holdings, Inc. He has
also served as CFO and Senior Vice President of Arrow
Electronics, Inc., and CFO and Executive Vice President of
Corporate Express. From 1971 to 1994 he served in a number of
finance, accounting and leadership positions for Baxter
International, Inc./American Hospital Supply Corp. During his
tenure at Baxter he worked closely with Boston Scientific
President and Chief Executive Officer Jim Tobin, who then served
as the Chief Operating Officer of Baxter.
"I have known Sam for more than 20 years, and he brings a
substantial body of knowledge, expertise and experience to his
new role," said Mr. Tobin. "He has worked in large, diversified
companies, including two of the world's leading health care
technology companies. He is exceptionally well qualified to
serve as our new CFO, and I am looking forward to working with
him again."
"I would like to welcome Sam, who is a seasoned business
executive with a wealth of experience in the health care
industry, including experience with acquisition integration,
financing and capital markets," said Pete Nicholas, Chairman and
Co-founder of Boston Scientific. "He has a broad range of
talents and abilities that will allow him to begin contributing
immediately. We are very fortunate to have Sam joining us."
"I am very excited to be joining Boston Scientific," said Leno.
"Like Zimmer, it is an amazing company with a terrific
management team. With the relatively recent acquisition of
Guidant, I am honored to have the opportunity to participate in
executing Pete's and Jim's strategic vision for the company. I
also had the opportunity to work directly for Jim Tobin during
part of my career at Baxter, and I am very pleased to be able to
work for him again. My years of experience in health care --
and more importantly medical devices -- should also assist in
creating an efficient and smooth transition into the company."
Mr. Leno will replace Larry Best, Boston Scientific's long-time
CFO, who plans to retire from the Company to pursue an interest
in private investing within the life sciences field. Mr. Leno
will join the Company June 5; Mr. Best will retire effective
July 6.
"I am extremely proud to have been a part of the strategic build
of Boston Scientific over the past 15 years," said Best.
"Through the enormous efforts of a truly outstanding team, a
global leader in medical devices has been built. I thank
everyone who has contributed to this success."
"Larry has been an integral part of Boston Scientific," said
Tobin. "His many accomplishments have shaped our company and
have helped make it the organization it is today. He has been
instrumental to our growth strategy, particularly the historic
and transforming acquisition of Guidant, which I believe has
been our most important and beneficial transaction. I want to
thank him for his numerous contributions, and for his dedication
and commitment to our employees, customers and shareholders. I
wish Larry continued success and much happiness."
"From the beginning, Larry shared my vision of a global
enterprise devoted to delivering the most innovative medical
technologies to physicians and their patients," said Mr.
Nicholas. "He was an essential partner in the creation of
today's Boston Scientific, one of the world's largest medical
device companies. For more than a decade, he was a key
architect of a bold and creative acquisition strategy. With the
Guidant transaction - our most recent and largest acquisition -
we are well positioned for future growth. Nobody has worked
harder - or cared more about Boston Scientific - than Larry. He
has been a valued colleague and a good friend, and I want to
thank him personally for everything he has done for Boston
Scientific, and I want to wish him all the best."
About Boston Scientific
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, France, Germany, and Japan, among
others.
* * *
Moody's Investor Services, effective April 21, 2006, lowered the
credit ratings of Boston Scientific following the close of the
acquisition of Guidant Corporation. Affected ratings include:
senior notes to Baa3 from Baa1; short-term rating to Prime-3
from Prime-2; senior shelf to (P)Baa3 from (P)Baa1; subordinated
shelf to (P)Ba1 from (P)Baa2; and preferred stock shelf to
(P)Ba2 from (P)Baa3.
KYUSHU-SHINWA: Asks Fukuoka Financial Group For Merger
------------------------------------------------------
Kyushu-Shinwa Holdings Inc. said Wednesday it has asked rival
Fukuoka Financial Group Inc. to integrate its managements, after
giving up on trying to turn around its business, The Japan Times
Online reports.
According to the report, Fukuoka Financial has replied
positively and said it will begin merger talks as soon as
possible.
The two banks have been in a capital and operational tie-up,
with Fukuoka Bank investing about JPY7 billion in Kyushu-Shinwa
Holdings last October, Japan Times relates.
Headquartered in Nagasaki, Kyushu-Shinwa Holdings Inc. --
http://www.ksfg.co.jp-- is chiefly engaged in the banking
business, such as the assessment and research of real estate
collateral, the provision of initial public offering (IPO)
support services and the management of loans, as well as the
clerical work, leasing, credit guarantee and credit card
businesses.
On March 21, 2007, Fitch Ratings has affirmed Shinwa Bank's
ratings at Individual 'E' and Support '3' because of its poor
performance due to increasing credit costs, and negative impact
on capital position.
The Troubled Company Reporter - Asia Pacific reported on Oct.
18, 2006, that in 2002, Shinwa Bank and Kyushu Bank, both based
in Nagasaki Prefecture, consolidated under the Holdings and
subsequently in 2003, the subsidiary banks merged.
According to Bloomberg News, Kyushu-Shinwa's capital-adequacy
ratio is estimated to have fallen to about 6% at the end of
September 2006 but the ratio is expected to rise to about 8% due
to the capital reinforcement. Domestically operating banks are
required to have capital ratios of at least 8%.
JAPAN AIRLINES: Reports Net Loss of JPY16.2 billion for FY2006
--------------------------------------------------------------
JAL Group announced on May 2, a revision of its consolidated
financial forecast for FY2006, the year ended March 31, 2007,
reflecting the trends of recent performance.
The revised forecast supersedes the Group's last forecast
announced on February 6, 2007 when the airline issued its
financial results for the third quarter of FY2006 (October -
December 2006 inclusive).
Revision of JAL Group Forecast Consolidated Financial Results
for FY2006 (from April 1, 2006 to March 31,2007)
2007 2006 Increase
(Decrease)
---------- ----------- -----------
Operating Revenues JPY 2,301.9 JPY 2,199.385 JPY 33.9
Ordinary Income 20.5 -41.608 20.0
Net income -16.2 -47.243 -19.2
* All figures rounded down to the nearest tenth of a billion yen
Reasons for Revision
Announced on February 6, 2007, the FY2007-FY2010 medium-term
corporate revival plan, effective for the period April 1, 2007
through to March 31, 2011, outlines JAL's intention of
rebuilding the group's business foundation and realizing
continuous stable profits, whilst emphasizing safety and
customer satisfaction.
Prior to April 1, 2007, the official start date of the new four-
year corporate plan, the JAL Group decided to forge ahead and
start work on realizing its objectives. As a result, the
company has revised its forecast for FY2006 due to a forecast
recovery in profitability primarily in its air transport
business segment, and due to progress in the implementation of
group-wide cost reduction measures.
Compared to the previous forecast, FY2006 operating revenue is
now estimated at JPY2, 301.9 billion, up JPY33.9 billion or
1.5%; operating income is estimated at JPY22.9 billion, up by
JPY9.9 billion or 76.2%; and ordinary income estimated at
JPY20.5 billion, up JPY20.0 billion or 4,000%.
The airline group is carrying out business restructuring through
aircraft downsizing and shifting to high profit routes. It is
strengthening product competitiveness through for example, the
introduction of First Class on domestic flights, and Premium
Economy Class on international flights later this year. Thereby
the airline will make maximum opportunity of the business
changes that will result from the internationalization and
expansion of Tokyo's Haneda Airport from and after FY2009, and
increase of airport slot capacity at Narita.
JAL is also implementing large scale cost reductions through
personnel reductions and other measures and concentrating
resources to the core air transport business segment in order to
achieve sustainable growth.
JAL has revised its net income forecast for FY2006 from JPY3
billion down to minus JPY16.2 billion, primarily due to deferred
tax asset adjustments to its balance sheet, and an extraordinary
loss resulting from a special early retirement program JAL
launched in March 2007.
JAL has re-evaluated its deferred tax management strategy and
decided to remove JPY44.7 billion of deferred tax assets from
the FY2006 balance sheet. The FY2006 forecast indicates that
the Group is steadily improving in terms of operating profit and
ordinary income estimates. However, over the past years the
company has been negatively affected by such external factors as
SARS, an unprecedented rise in the cost of fuel, and 9/11. As a
result, when estimating deferred tax assets, the company will be
more prudent in its estimate of future taxable income.
This is in addition to the removal of JPY9.7 billion of deferred
tax assets from the FY2006 balance sheet resulting from a one-
off reduction in the company's pension costs, already included
in the previous forecast.
An adjustment to extraordinary income must also be made to
account for an extraordinary loss of JPY6.0 billion resulting
from payment of retirement allowances for a special early
retirement program JAL launched in March 2007.
Furthermore, JAL Group forecasts equity of JPY311 billion and
equity ratio of 14.9% for FY2006.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP reported on Oct. 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic. JAL International will be the
surviving company. The rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
ON SEMICONDUCTOR: Steady Gains Cue S&P to Up Rating to BB-
----------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Phoenix, Arizona-based ON Semiconductor Corp. to 'BB-'
from 'B+'. The outlook is stable. At the same time, Standard &
Poor's assigned its 'BB' rating to the company's amended and
restated credit agreement, with a recovery rating of '1',
indicating the expectation of full (100%) recovery of principal
in the event of a payment default.
"The rating action reflects steady gains in profitability and
improved debt protection measures, expected to continue over the
longer term," said Standard & Poor's credit analyst Bruce Hyman.
The ratings for ON Semiconductor reflect its substantial debt
burden and its limited market share in a highly competitive
commodity industry, as well as the company's low-cost position,
good free cash flows and adequate operating liquidity, and good
debt protection measures.
ON Semiconductor is a major supplier of standard logic and
analog integrated circuits and discrete semiconductors, holding
mid-single-digit percentage shares of several commodity markets;
industry conditions track the global economy, with little
exposure to any one customer or market. The company has reduced
its operating costs by relocating its manufacturing to low-cost
regions, contributing to overall competitiveness, while
bolstering
margins.
ON Semiconductor -- http://www.onsemi.com/-- supplies power
solutions to engineers, purchasing professionals, distributors
and contract manufacturers in the computer, cell phone, portable
devices, automotive and industrial markets. The company has
operations in Japan and the Czech Republic.
SUMITOMO MITSUI FINANCIAL: Central Finance to Merge with Quog
-------------------------------------------------------------
Kyodo News reported that Central Finance Co. will join the
Sumitomo-Mitsui group and merge with its consumer credit unit
Quoq Inc. by April 1, 2009.
According to the report, Central Finance, Sumitomo Mitsui
Financial Group Inc., Sumitomo Mitsui Banking Corp., and Mitsui
& Co. agreed that the Sumitomo Mitsui group "will acquire a
stake of up to 40.66% in Central Finance based on the purchases
of the common shares and convertible bonds in May."
Central Finance will invest JPY7.5 billion in Quog in July,
after which the merger will be implemented, Kyodo News reported.
The report relates that Nagoya-based Central Finance provides
consumer loan and consumer installment credit services as its
mainline operations.
Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui
Financial Group, Inc., -- http://www.smfg.co.jp/-- is a
financial holding company. It is principally involved in the
provision of financial services and products, which include
banking, leasing, securities, credit cards, investment and
lending, financing and venture capital. The Company has two core
business segments. The Banking segment offers services, such as
deposits, loans, commodities trading, securities investment,
domestic and foreign exchange, futures trading, bond fiduciary
and registration, trust, securities brokerage and insurance. The
Leasing segment mainly offers leasing services through SMBC
Leasing Co., Ltd. in Japan and SMBC Leasing and Finance, Inc.
overseas. The Company is also engaged in the system development,
debt management and collection, information processing,
consulting, factoring, money collection and financial derivative
businesses. As of March 31, 2006, the Company had 162
consolidated subsidiaries and 63 affiliated companies.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 1,
2007, that Fitch Ratings affirmed Sumitomo Mitsui Financial
Group, Inc.'s and it subsidiary Sumitomo Mitsui Banking
Corporation's individual ratings at 'C'.
SEGO INTERNATIONAL: Undergoes Voluntary Liquidation
---------------------------------------------------
On May 2, 2007, the shareholders of Sego International Limited
met and decided to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt by June 11,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
Sze Lin Tang
Unit D, 21st Floor
Max Share Centre
373 King's Road, North Point
Hong Kong
SHIMAO PROPERTY: Decides to Solo Bid for US$2BB Manila Project
--------------------------------------------------------------
China's Shimao Property Holdings Ltd. will bid solo to develop a
US$2 billion hotel complex in the Manila, despite urging to tie-
up with the government and a Philippine real estate firm, ABS
CBN News reports, citing Trade Secretary Peter Favila as saying.
"I don't know if its feng shui but what they really want is the
first area that they saw. Shimao wants to go solo," Mr. Favila
said, referring to a 7.4-hectare property adjacent to an area
owned by the Fort Bonifacio Development Corp.
Shimao has been told that they have to go through competitive
bidding if they prefer that piece of property, Mr. Favila told
ABS CBN.
As reported by the Troubled Company Reporter - Asia Pacific on
April 9, 2007, Shimao was advised by Mr. Favila to tap private
landowners in the Bonifacio Global City for its planned
investment and do away with the tedious process of bidding.
Sec. Favila told them to look into a partnership with private
entities such as George Ty's Metropolitan Bank and Trust Co. or
the Ayala-led Fort Bonifacio Development Corp, the TCR-AP said.
On April 17, 2007, the TCR-AP reported that the Ayala-led Fort
Bonifacio Development Corp. has expressed interest in teaming up
with Shimao Property Holdings Ltd. to develop a 7.9-hectare
property in the Bonifacio Global City.
* * *
Shimao Property Holdings Limited -- http://www.shimaogroup.com/
-- is a large-scale developer of real estate projects in China,
specializing in high-end developments in prime locations. The
company's business portfolio comprises the development of
residential properties, retail properties, offices and hotels.
The company has 15 projects at various stages of development
located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou,
Kunshan, Changshu, Shaoxing and Wuhu.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services on November 8, 2006, assigned
its BB+ long-term corporate credit rating to China-based Shimao
Property Holdings Ltd. The outlook is stable.
=========
K O R E A
=========
DURA AUTOMOTIVE: Evaluates Strategic Alternatives for Atwood
------------------------------------------------------------
DURA Automotive Systems Inc. is exploring strategic alternatives
for its Atwood Mobile Products division, headquartered in
Elkhart, Indiana. DURA has engaged Miller Buckfire as its
exclusive financial advisor in connection with the strategic
evaluation, including solicitation of interest from prospective
acquirers of Atwood Mobile Products Inc. In consultation with
its financial advisor, DURA will consider whether a sale or a
growth strategy would maximize Atwood's financial contribution
to the company.
With 2006 sales of approximately US$330 million, Atwood offers a
broad range of products to the recreation vehicle, specialty
vehicle and manufactured housing markets. The division's
products encompass windows and doors, specialty glass, hardware
appliances and electronics. Founded in 1909, Atwood was
acquired by automotive supplier Excel Industries, which was then
acquired by DURA in 1999.
"Atwood enjoys leading market positions in each of its product
categories based on a reputation for product innovation, quality
manufacturing and superior customer service," Larry Denton,
DURA's chairman and chief executive officer, said. "While the
group is profitable and growing, Moody's believes it is in the
best interests of our shareholders, customers and employees to
conduct a full review of strategic alternatives with respect to
Atwood, including evaluation of further growth alternatives and
divestiture options."
Atwood provides the most extensive product line of any supplier
to the recreation vehicle industry, with more than 90% of the
recreation vehicles on the road using Atwood products. The RV
industry has experienced consistent historical growth, with RV
ownership currently at record levels. Industry trends point
toward significant future growth due to favorable population
demographics and increasing purchase interest.
About DURA Automotive Systems Inc.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- 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 industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expires on May 23,
2007.
HYNIX SEMICONDUCTOR: Fitch Assigns 'BB' Long-Term Default Rating
----------------------------------------------------------------
Fitch Ratings assigned Hynix Semiconductor Inc. a Long-term
Foreign Currency Issuer Default rating of 'BB'. The rating
Outlook is Stable.
Fitch says the rating reflects Hynix's dominant position in the
global memory semiconductor industry, its proven technology,
efficient production and improved financial status. Hynix is
also the world's second-largest DRAM maker and third-largest
NAND flash memory producer.
Hynix is one of the very few global memory chip producers
equipped with both dynamic random access memory and NAND flash
memory solutions. More importantly, Hynix has demonstrated its
cost-reduction capability and ability to keep up with technology
migration while maintaining a stable yield.
"Considering the limited sources of funds for capex due to the
liquidity crunch in 2000, Hynix's operational achievements
thereafter are remarkable," said Sung-Jin Yoon, associate
director in Fitch's Asia-Pacific telecom, media and technology
team. "Compared with its competitors, Hynix boasts a much lower
production cost and possesses leading-edge technology despite a
lower installation ratio of 12-inch fab," he added.
In 2001, Hynix was placed under the management of creditors
after it suffered a severe liquidity crunch due to the decline
of the global semiconductor industry and its substantial
maturing debt. However, thanks to the restructuring efforts,
which included the sale of its non-memory businesses in 2004 to
focus on DRAM and NAND flash memory production, as well as the
overall industry recovery, the company was released from
creditor control in July 2005.
Fitch notes that Hynix's financial profile has improved
significantly since 2001, with its net debt to operating EBITDAR
ratio declining to 0.4x in FYE06 from 11.1x in FYE01. The
company has started to generate enough operating cash flow to
cover its capex needs and reduce its outstanding debt since
FY03. Fitch says that Hynix also has a healthy liquidity
position and an evenly distributed debt maturity profile
following the debt refinancing exercise in 2005.
That said, Fitch also says the rating is constrained by several
tough challenges facing Hynix. "The volatile DRAM and NAND
flash memory prices and large capex needs for technological
migration are major business risks for Hynix," said Mr Yoon.
Fitch is also cautious of the potential risk of excessive supply
from the overestimation of DRAM demand arising from the
introduction of Microsoft's Vista operating system. In
addition, Fitch says there could be further margin compression
for Hynix if prices of NAND flash memory continue to fall
sharply in the absence of new killer applications after MP3
players and digital still cameras.
Nevertheless, the agency expects Hynix to maintain healthy
operating margins and credit metrics within the rating outlook
horizon of 18 to 24 months, in view of its proven cost reduction
capability and market position in the global memory industry.
About Hynix Semiconductor
Headquartered in Echon, South Korea, Hynix Semiconductor Inc.
-- http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
KRISPY KREME: Prudential Downgrades Shares to Neutral Weight
------------------------------------------------------------
Prudential Financial analyst Howard W. Penney has downgraded
Krispy Kreme Doughnuts' shares to "neutral weight" from
"overweight," Newratings.com reports. The target price for
Krispy Kreme was reduced to US$14 from US$17.
According to the report, Mr. Penney noted in a research note
published on May 2 that Krispy Kreme has recently reorganized
its management team. Mr. Penney expects the recent changes to
put off the turnaround at Krispy Kreme from a company-owned
model to a business model concentrated on franchisee.
Newratings.com added that the earnings per share estimate for
fiscal year 2007 was reduced to US$0.30 from US$0.34, while
estimate for fiscal year 2008 was decreased to US$0.77 from
US$0.81.
About Krispy Kreme
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed. There are currently
approximately 323 Krispy Kreme stores and 79 satellites
operating system-wide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea, and the United Kingdom.
The company generates revenues from three distinct sources:
company-owned stores, franchise fees and royalties from
franchise stores, and a vertically integrated supply chain.
Freedom Rings, LLC, company's franchisee in Eastern
Pennsylvania, Delaware and Southern New Jersey, filed on
Oct. 16, 2005, for Chapter 11 protection with the Delaware
Bankruptcy Court (Bankr. D. Del. Case No. 05-14268). Following
closure of its four remaining stores, the Bankruptcy Court
confirmed Freedom Rings' plan of liquidation on April 20, 2006,
and its operations have been substantially wound up.
KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for
restructuring on April 15, 2005, pursuant to the Companies'
Creditors Arrangement Act with the Ontario Superior Court of
ustice. Krispy Kreme Doughnut Corp. agreed to pay approximately
US$9.3 million to two secured creditors to settle its
obligations with respect to its guarantees pertaining to certain
indebteness and related equipment agreements. In exchange, a
newly formed subsidiary of Krispy Kreme Doughnut Corp. acquired
substantially all of the operating assets of KremeKo, as
authorized by the Ontario Court.
Glazed Investments, LLC, company's franchisee in Colorado,
Minnesota and Wisconsin, filed for Chapter 11 protection on
Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932). Subsequent
to this filing, Glazed Investments sold its remaining 12 Krispy
Kreme stores to Western Dough, Krispy Kreme's area developer for
Nevada, Utah, Idaho, Wyoming and Montana, for appoximately US$10
million. This sale was facilitated by the Chapter 11 filing, by
permitting the assets to be sold free and clear of all liens,
claims and encumbrances.
Under the plan of liquidation filed by Glazed Investments, it
will be dissolved after distribution of the sale proceeds to
creditors, and Krispy Kreme will not receive any payment on
account of its ownership in Glazed Investments. While a
substantial portion of Glazed Investments' debts were retired
from the sale proceeds and liquidation of other assets, Krispy
Kreme paid approximately US$1 million of its franchisee's debt
which was guaranteed by it.
KOOKMIN BANK: Earns KRW1.2 Trillion for First Quarter 2007
----------------------------------------------------------
Kookmin Bank disclosed its financial results for the first
quarter ended March 31, 2007.
Net income for the first quarter ended March 31, 2007, is
KRW1.182 trillion, compared with the KRW802.98 billion net
income booked for the quarter ended March 2006.
For the first quarter ended March 2007, the company reported net
revenues of KRW5.39 billion, compared with KRW5.02 billion for
the first quarter ended March 2006.
As of March 31, 2007, Kookmin Bank's balance sheet showed total
assets of KRW199.38 trillion and total liabilities of KRW184.86
trillion resulting in a shareholder's equity of KRW14.51
trillion.
Kookmin Bank's financial report for the quarter ended March 31,
2007, is available for free at:
http://bankrupt.com/misc/KOOKMIN_BANK.xls
About Kookmin Bank
Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides
various commercial banking services, such as deposits, credit
cards, trust funds, foreign exchange transactions, and corporate
finance. The bank also offers Internet banking services.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 24, 2007, that the bank carries Moody's bank financial
strength rating of D+.
===============
M A L A Y S I A
===============
FA PENINSULAR: Bursa to Delist Securities on May 15
---------------------------------------------------
The Bursa Malaysia Securities Berhad said that the securities of
FA Peninsular Berhad, an Amended-PN17 company, will be de-listed
and removed from its Official List at 9:00 am on May 15, 2007.
According to the bourse, the delisting decision was made after
the company failed to make its reform plan requisite
announcement on April 30, 2007, as required under the extended
timeframe granted by Bursa Securities.
The Troubled Company Reporter - Asia Pacific on April 24, 2007,
reported that the Bursa Securities has extended the
regularization plan-filing deadline of FA Peninsular to June 30,
2007, upon the company's request. The TCR-AP said that FA
Peninsular was required under the extended time frame to make a
requisite announcement of its reform plan on April 30.
* * *
FA Peninsular's principal activities are processing and trading
cocoa. Other activity includes stock and share-broking.
Operations are carried out mainly in Malaysia.
The company is currently listed in the Amended PN-17 list of
companies in the Bursa Malaysia Securities Bhd and is required
to submit a regularization plan to stabilize its financial and
operational status.
FA Peninsular Bhd's unaudited balance sheet as of Dec. 31, 2006,
went upside down with total assets of MYR15.86 million and total
liabilities of MYR22.08 million, resulting in a shareholders'
deficit of MYR6.22 million.
METROPLEX BERHAD: Fails to File Plan; Bursa Delists Securities
--------------------------------------------------------------
Metroplex Bhd's failure to submit its regularization plan with
the Securities Commission and other relevant authorities
prompted the Bursa Malaysia Securities Bhd to delist its
securities from the bourse's official list.
According to Bursa Securities, Metroplex's securities will be
delisted and removed from its Official List at 9:00 a.m. on
May 15, 2007.
The company was required under the bourse's extended timeframe
to submit its plan to the relevant authorities on April 28.
On April 11, 2007, the Troubled Company Reporter - Asia Pacific
reported that Metroplex was facing a delisting proceeding
initiated by the bourse after it failed to file its plan by the
Feb. 28, deadline. According to the TCR-AP, the bourse, after
receiving an appeal from the company, considered the appeal and
decided to grant an extension of time until April 28 for
Metroplex to submit its regularization plan to relevant
authorities.
* * *
Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's
activities are hotel and casino operations. Other activities
include property investment, property development, provision of
administrative services, general and building construction,
leasing and financing, trading of building materials and
operation of hotel management training school. Operations are
carried out in Malaysia, Hong Kong, and the Philippines.
Metroplex is classified under Bursa Malaysia Securities Berhad's
PN 17 Category and is therefore required to submit and implement
a plan to regularize its business condition.
Metroplex Bhd's Jan. 31, 2007, unaudited balance sheet went
upside down with a shareholders' deficit of MYR301.72 million
from total assets of MYR1.16 billion and total liabilities of
MYR1.46 billion.
PAN MALAYSIAN: Metrojaya Disposal Extended to July 31
-----------------------------------------------------
Pan Malaysian Industries Bhd and its wholly owned subsidiary,
Excelton Sdn Bhd, on April 30, 2007, entered into a supplemental
agreement with Libertyray (M) Sdn Bhd, for an extension of time
to obtain approvals for the Proposed Disposal of Metrojaya Bhd.
On Oct. 31, 2006, Pan Malaysian and Excelton agreed to sell to
Libertyray 113,751,983 ordinary shares representing an equity
interest of approximately 91.06% in Metrojaya Berhad.
All other conditions, covenants, terms and provisions contained
in the principal conditional share sale agreement entered into
on Oct. 31, will remain in full force and effect, Pan Malaysian
said.
* * *
Headquartered in Kuala Lumpur, Malaysia, Pan Malaysian
Industries Berhad is involved in the operation of departmental
and specialty stores and hypermarket. Its other activities
include investment and property holding. The Group's operation
is predominantly in Malaysia, Hong Kong and Singapore.
The Group has been suffering recurring losses since 1999.
Moreover, Pan Malaysian Industries Bhd's balance sheet went
upside down with a shareholders' deficit of MYR87.47 million as
of Dec. 31, 2006. The company's balance sheet showed total
assets of MYR657.26 million and total liabilities of MYR744.72
million.
PARK MAY: Konsortium Transnasional Eyes Listing Next Month
----------------------------------------------------------
Konsortium Transnasional Bhd's listing on the main board of the
Bursa Malaysia Securities Bhd, in place of Park May Bhd, may
take place next month, pending approval by the Securities
Commission, various reports say.
Speaking at a press conference after witnessing the launch of
the high capacity economy ekspress bus called "Transnasional
Skyview," Chairman Datuk Mohd Nadzmi Mohd Salleh said that all
preparations were in place for the listing, after years of
consolidation and injection of new capital.
"We know that once listed, it means harder work to attract
prospective investors and to provide real value to our shares,"
the chairman told reporters.
As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 23, 2006, Park May's Proposed Restructuring Scheme states
that KTB will assume its listing status on the main board of the
bourse, following a total purchase consideration of
MYR85,055,614.50, which was satisfied by the issuance of
170,111,229 new ordinary shares of MYR0.50 each in KTB at an
issue price of MYR0.50 per Share.
The listing of KTB was supposed to take place way back in 2005,
Bernama News reported.
* * *
Headquartered in Kuala Lumpur, Malaysia, Park May Berhad --
http://www.parkmayberhad.com/-- provides public bus
transportation in Peninsular Malaysia, categorized as stage bus
and express bus. Its other activities include operation and
construction of light rail transit system, trading and property
holding, and investment holding and managing operation.
The Company defaulted in its payment of monthly interest of
MYR1.1 million on its MYR135.6-million Combined and Converted
Short Term Loan Facility due April 8, 1999. On December 30,
1999, the Corporate Debt Restructuring Committee successfully
assisted Park May Berhad to finalize a debt-restructuring scheme
with its lenders and main suppliers involving debt outstanding
as at even date of MYR146 million. On April 17, 2000, the
Securities Commission approved Park May's Proposals. On
February 28, 2003, Park May registered a deficit in
shareholders' equity on a consolidated basis of MYR23.17
million, making it an affected listed issuer under Bursa
Malaysia Securities' Practice Note 4 category. As an Affected
Listed Issuer, the Company is required to regularize its
financial condition.
As of September 30, 2006, Park May's balance sheet reflected
MYR40.79 million in total assets and MYR96.05 million in total
liabilities, resulting in a shareholders' deficit of MYR55.26
million.
STAR CRUISES: Shareholders Approve Singapore Casino Stake Sale
--------------------------------------------------------------
Star Cruises has obtained its shareholders' approval to sell its
25% stake in a Singapore casino project for SG$255 million to
sister firm Genting International in a move to placate
Singapore's government, Business Times says, citing a Reuters'
report.
The sale now needs approval from Genting International's
shareholders, which is due this month, Star Cruises President
David Chua was quoted by the report.
On March 29, 2007, the Troubled Company Reporter - Asia Pacific
reported that Genting International said it would buy Star
Cruises' 25% stake in their joint Singapore casino project to
give Genting the full control of the US$3.4 billion Resorts
World at Sentosa project.
According to an earlier report by the TRC- AP, Star Cruises and
Genting International had been warned by the Singapore
government that it will be subject to a "suitability check"
before getting a casino license. The check according to the
TCR-AP report, was needed by the Singapore government "to ensure
that the consortium meets the suitability requirements" before a
license was issued.
The TCR-AP said that the Singapore government has been seeking
clarification from Genting and Star Cruises over the deal after
Stanley Ho's tie-up with the project has been announced. The
tie-up with Mr. Ho would have given him and a group of investors
a 6.99% stake in Star Cruises.
Business Times relates that Singapore's Minister Mentor Lee Kuan
Yew said last month that Mr. Ho's involvement in the project
might jeopardize the firms' casino licence, adding that the
island state would not resemble Macau once casinos opened their
doors.
* * *
Star Cruises Limited -- http://www.starcruises.com/-- is a
Company publicly listed in Hong Kong and is a core member of the
Genting Group and 36.1% owned by Resorts World, which is, in
turn, 57.7% owned by Genting Berhad. Star Cruises operates 22
ships with 35,000 lower berths under five main brands: Star
Cruises and Cruise Ferries, which service Asia Pacific, and
three brands under NCL. The company also has operations in
Malaysia.
Standard & Poor's Ratings Services on April 11, 2007, said its
BB- long-term corporate credit ratings on Malaysia-based cruise
operator Star Cruises Ltd., remain on CreditWatch with negative
implications. The ratings were placed on CreditWatch on Dec.
11, 2006, following the announcement that Genting International
PLC had won its SD$5.2 billion bid to build Singapore's second
integrated resort on Sentosa Island.
Moody's Investors Service confirmed the B1 corporate family
rating of Star Cruises Limited. The rating outlook is stable.
This concludes the ratings review initiated on January 25, 2007.
====================
N E W Z E A L A N D
====================
AUCKLAND PROPERTY: Subject to CIR's Wind-Up Petition
----------------------------------------------------
On Feb. 20, 2007, the Commissioner of Inland Revenue filed a
wind-up petition against Auckland Property 2004 Ltd.
The petition will be heard before the High Court of Auckland on
May 10, 2007, at 10:45 a.m.
The CIR's solicitor is:
Simon John Eisdell Moore
Meredith Connell
Level 17, Forsyth Barr Tower
55-65 Shortland Street
PO Box 2213
Auckland
New Zealand
CABANA GIFTS: Court to Hear Wind-Up Petition Today
--------------------------------------------------
A petition to wind up the operations of Cabana Gifts (1998) Ltd.
will be heard before the High Court of Hamilton today, May 7,
2007, at 10:45 a.m.
The petition was filed by the Commissioner of Inland Revenue on
March 15, 2007.
The CIR's solicitor is:
Kay S. Morgan
c/o Inland Revenue Department
1 Bryce Street, Hamilton
New Zealand
Telephone:(07) 959 0373
DENNY'S CORP: Morgan Joseph Reiterates Buy Rating on Firm
---------------------------------------------------------
Morgan Joseph analysts have reaffirmed their "buy" rating on
Denny's Corporation's shares, Newratings.com reports.
Newratings.com relates that the target price for Denny's shares
was reduced to US$6.50 from US$7.00.
The analysts said in a research note published on May 2 that
Denny's flat year-on-year earnings per share for the first
quarter 2007 is short of the estimates.
The analysts told Newratings.com that Denny's revenues for the
first quarter 2007 are short of expectations on account of
lower-than-expected company units and franchise rental revenues.
The earnings per share estimate for this year was decreased to
US$0.16 from US$0.17, Newratings.com states.
Headquartered in Spartanburg, South Carolina, Denny's
Corporation -- http://www.dennys.com/-- is America's largest
full-service family restaurant chain, consisting of 543 company-
owned units and 1,035 franchised and licensed units, with
operations in the United States, Canada, Costa Rica, Guam,
Mexico, New Zealand and Puerto Rico.
* * *
Denny's Corporation's balance sheet at June 28, 2006, showed
$500.3 million total assets and US$758.2 million total
liabilities, resulting in a stockholders' deficit of US$257.9
million.
ENDURING HOMES: Taps Heath & Meltzer as Liquidators
---------------------------------------------------
Arron Leslie Heath and Jeffrey Philip Meltzer were appointed as
liquidators of The Enduring Homes Ltd. on April 5, 2007.
Messrs. Heath and Meltzer fixed May 4, 2007, as the last day for
receiving creditors' proofs of debt.
The Liquidators can be reached at:
Arron Leslie Heath
Jeffrey Philip Meltzer
Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
EWE GLO: Subject to CIR's Wind-Up Petition
------------------------------------------
On January 23, 2007, the Commissioner of Inland Revenue filed a
petition to wind up the operations of Ewe Glo Transport Ltd.
The petition will be heard before the High Court of Auckland on
May 10, 2007, at 10:45 a.m.
The CIR's solicitor is:
Simon John Eisdell Moore
Meredith Connell
Level 17, Forsyth Barr Tower
55-65 Shortland Street
PO Box 2213
Auckland
New Zealand
L G R TRADING: Enters Liquidation Proceedings
---------------------------------------------
The shareholders of L G R Trading Ltd. met on April 5, 2007, and
resolved to liquidate the company's business.
Clinton Ernest Sanford was appointed as liquidator.
The Liquidator can be reached at:
Clinton Ernest Sanford
7 Greenview Lane, Red Beach
PO Box 33, Red Beach 0945
New Zealand
Telephone:(09) 426 3400
Facsimile:(09) 426 3433
e-mail: clinton@basca.co.nz
MARYCREST HOLDINGS: Court to Hear Wind-Up Petition Today
--------------------------------------------------------
On March 29, 2007, the Commissioner of Inland Revenue filed a
wind-up petition against Marycrest Holdings Ltd.
The petition will be heard before the High Court of Palmerston
North today, May 7, 2007, at 10:00 a.m.
The CIR's solicitor is:
E. J. McCaughan
Ben Vanderkolk & Associates
ANZ Bank Chambers, No. 1 The Square
PO Box 31, Palmerston North
New Zealand
NEW ZEALAND LANDMARKS: Proofs of Debt Must be Filed by May 25
-------------------------------------------------------------
The creditors of New Zealand Landmarks Ltd. are required to file
their proofs of debt by May 25, 2007, to be included in the
company's dividend distribution.
The company went into liquidation on April 11, 2007.
The company's liquidator is:
Peri Finnigan
McDonald Vague
PO Box 6092, Wellesley Street
Auckland, New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
ONE ON ONE: Wind-Up Petition Hearing Set for May 14
---------------------------------------------------
A petition to wind up the operations of One On One Enterprises
Ltd. will be heard before the High Court of Tauranga on May 14,
2007.
The Commissioner of Inland Revenue filed the petition on
March 5, 2007.
PP 1996: Liquidators Fix May 11 as Last Day for Receiving Claims
----------------------------------------------------------------
Arron Leslie Heath and Lloyd James Hayward, the appointed
liquidators of PP 1996 Ltd., are receiving creditors' proofs of
debt until May 11, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from sharing in the company's dividend distribution.
The Liquidators can be reached at:
Arron Leslie Heath
Lloyd James Hayward
Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
REG PROPERTIES: Court to Hear Wind-Up Petition on May 10
--------------------------------------------------------
The Commissioner of Inland Revenue filed on Dec. 19, 2006, a
petition to wind up the operations of Reg Properties Ltd.
The petition will be heard before the High Court of Auckland on
May 10, 2007, at 10:00 a.m.
The CIR's solicitor is:
Simon John Eisdell Moore
Meredith Connell, Level 17
Forsyth Barr Tower
55-65 Shortland Street
PO Box 2213, Auckland
New Zealand
Telephone:(09) 336 7556
SHARAY ENTERPRISES: Appoints Mason & Meltzer as Liquidators
-----------------------------------------------------------
Karen Betty Mason and Jeffrey Philip Meltzer were appointed as
liquidators of Sharay Enterprises Ltd. on April 5, 2007.
The Liquidators require the company's creditors to file their
proofs of debt by May 11, 2007, to be included in the company's
dividend distribution.
The Liquidators can be reached at:
K. B. Mason
Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile: (09) 357 6152
WELLESLEY HOTEL: High Court to Hear Wind-Up Petition on May 10
--------------------------------------------------------------
A petition to wind up the operations of Wellesley Hotel Ltd.
will be heard before the High Court of Auckland on May 10, 2007,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition on
Jan. 26, 2007, at 10:45 a.m.
The company's solicitor is:
Simon John Eisdell Moore
Meredith Connell
Level 17, Forsyth Barr Tower
55-65 Shortland Street
PO Box 2213
Auckland
New Zealand
=====================
P H I L I P P I N E S
=====================
ACESITE PHILS: Net Loss Balloons to PHP19.6 Million in 2006
-----------------------------------------------------------
Acesite (Phils.) Hotel Corporation showed a net loss of PHP19.6
million, or a loss of PHP0.20 per share for the year ended Dec.
31, 2006, against the PHP11.0 million net loss for the year
ended Dec. 31, 2005, the company said in its annual report.
In 2006, the company generated a total gross income of PHP678.1
million, of which PHP234.3 million came from room revenues
(34.6% of total revenues), PHP227.8 million came from food &
beverage revenues (33.6% of total revenues), and PHP204.3
million from rental income (30.1% of total revenues).
More than half (51.3%) of room business came from the domestic
market. Like the previous year, the Asian market formed the
mainstay of the hotel's foreign business, with Japan, Korea and
China among the top sources of guests. As compared to 66.2%
occupancy rate registered in the year ended Dec. 31, 2005, the
occupancy rate during 2006 slightly decreased to 62.84%.
The average room rate of PHP1,899 achieved in 2006 was an
improvement as compared to the average room rate of PHP1,648
achieved in 2005.
At the food & beverage department, 2006 sales to the Casino
Filipino - Pavilion brought in 26.8% of the total business,
followed by sales at the Seasons and banquet facilities with
23.6% and 16.4% of the pie respectively. The distribution
pattern of sales is akin to that generated during the past
financial recording period.
Gross operating income in 2006 registered at PHP239.1 or a 35.2%
gross operating margin compared with the gross operating margin
of 37.4% registered in 2005. Again, management has constantly
curbed spending to control operating costs.
Fixed, financial and other expenses in 2006 amounted to PHP196.0
million as compared to PHP181.1 million registered in 2005. Of
this amount, PHP66.4 million in general and administrative costs
and PHP64.4 million in financing costs and accretion expense
took the bulk of the pie. Corporate expenses amounting to
PHP58.6 million also contributed significantly to the expenses.
Total assets of the company decreased from PHP2.17 billion as of
the end of 2005 to PHP2.16 billion as of the end of 2006.
Current assets increased by 70.1% from PHP115.3 million to
PHP196.2 million over the same periods, while non-current assets
decreased by 4.4% from PHP2.06 billion to PHP1.96 billion. On
one hand, current liabilities increased from PHP795.5 million to
PHP834.3 million mainly due to the advance rent from Pagcor,
while long term liabilities decreased from PHP346.9 million to
PHP311.9 million. Negotiations between management and ICBC for
the restructuring of the loan is still ongoing. Likewise,
stockholders equity decreased from PHP1.030 billion to PHP1,011
billion over the same comparative periods.
The company's financials can be obtained for free at:
http://bankrupt.com/misc/Acesite2006.pdf
Formerly known as Delbros Hotel Corporation, Acesite (Phils.)
Hotel Corporation -- http://www.manilapavilion.com.ph/-- is a
foreign-owned domestic corporation incorporated to engage in
hotel operations and investing. DHC owns the Holiday Inn Manila
Pavilion Hotel, a deluxe hotel situated along United Nations
Avenue in Manila. The operations of the latter are being
managed by Holiday Inn Worldwide. A major customer of the hotel
is the Philippine Amusement and Gaming Corporation, which
operates the Casino Filipino - Pavilion.
The company incurred three years of consecutive net losses:
PHP19,632,827, PHP10,955,857, and PHP17,238,396 for the years
2006, 2005 and 2004, respectively.
Debt Default and Restructuring
An event of default occurred with respect to the Acesite's
payment of its US$15 million loan with the Singapore Branch of
the Industrial and Commercial Bank of China, which matured on
March 31, 1998. On June 3, 2003, the loan was restructured by
ICBC, which stipulated six semi-annual installment payments of
principal and interest until April 2006. In July 2004, the
company's new management requested for a reprieve on loan
principal payments due for the period, which the Company
suggested to be placed at the end of the term of the Amended
Agreement. The outstanding principal balance of the ICBC loan
as of March 31, 2006, is US$9.18 million. Management is still
negotiating with ICBC for a rescheduling of payment on the
remaining principal balances.
BANK OF COMMUNICATIONS: Set Annual Stockholders' Mtg. on June 19
----------------------------------------------------------------
Philippine Bank of Communications' board of directors has
scheduled the bank's annual stockholders' meeting on June 19,
2007.
Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different
products and services through its different divisions and it has
a broad range of credit facilities, which are either denominated
in local currency or foreign. Its Trust Division handles common
trust funds, investment advisory accounts and employee benefit
trusts. Aside from these, the bank also offers money market
placements and traditional products such as peso deposits.
Fitch Ratings gave Philippine Bank of Communications an
individual rating of D/E.
DIVERSIFIED FINANCIAL: Unit Gets Ready to Go Public
---------------------------------------------------
Diversified Financial Network, Inc. has announced that
Intelligent Wave Philippines, Inc., a majority owned subsidiary,
approved the engagement of BDO Capital and Investment Corp. as
issue manager and lead underwriter for IWPI's planned public
offering with the Philippine Stock Exchange, DFNN discloses to
the Philippine Stock Exchange.
IWPI provides IT business solutions to domestic and Japanese
banks and other financial institutions on an outsourced basis.
DFNN says that the funds from the offering will be used by IWPI
in expanding its services to fully tap the large Japanese BPO
business opportunities that will be created under the
Philippine-Japan Free Trade Agreement.
IWPI gets most of its revenues from Japanese BPO contracts.
DFNN also announces that KPMG Japan's due diligence will be
finished within the next two weeks.
Diversified Financial Network, Inc. -- http://www.dfnn.com/--
is an I.T. solutions provider and systems integrator. Backed by
its domain expertise in financial services, the company has
become a proprietary software technology, wireless and secure
solutions partner of leading corporations. The DFNN Group of
Companies generates revenue through solutions, custom, tailor-
fit I.T. solutions to retail financial institutions, rental
revenue and wireless and other I.T. products and services.
The Troubled Company Reporter - Asia Pacific reported on May 19,
2006, that Diversified Financial Network, Inc.'s net loss for
the year ended December 31, 2005, dropped 5% to PHP56.59
million, from PHP59.62 million in 2004. The company's revenue
also fell 15% to PHP96.20 million in 2005, from PHP113.15
million in 2004. Amidst a significant decrease in cost, the
company suffered a 23.5% slowdown in service fees due to longer
project completion time and a 20% drop in advertising revenues.
METROPOLITAN BANK: Reports 30.11% Improvement in 2006 Net Income
----------------------------------------------------------------
Metropolitan Bank & Trust Company reported that it posted
PHP1.62 billion in net income for the first quarter of 2007, up
by 30.11% compared to the PHP1.25 billion recorded in the same
period in 2006, the bank said in a press release.
In a disclosure to the Securities and Exchange Commission, the
parent company said its net interest income in the first three
months of the year improved by 5.39% to PHP3.61 billion from
last year's PHP3.43 billion. Metrobank Executive Vice President
and Controller Joshua E. Naing said that this is mainly the
result of an aggressive campaign to grow its low cost deposits,
improve deposit mix and lower interest costs. These moves
significantly reduced interest expense by 15.11%.
Other income rose as well by 14.50% to PHP3.15 billion.
Stronger treasury activities improved net trading and securities
gain by 37.91% or PHP393.29 million while profits from the sale
of bank-owned properties increased by PHP73.87 million. Leasing
income likewise grew by 21.30% or PHP19.54 million. Total
operating expense year-on-year declined slightly due to
decreased provision for impairment and credit losses as a result
of the sale of non-performing assets totaling PHP9.93 billion in
2006.
Commenting on the first quarter performance, Mr. Naing said this
was a result of the Bank's strategic initiatives that were
carried out in 2006. He added that for 2007, the bank will
continue to focus on generating low cost funds and growing its
loan portfolio.
Metrobank continues to lead the industry in terms of
consolidated assets, deposits, and loans. Based on audited 2006
financial statements, consolidated assets stood at PHP648.79
billion, deposits at PHP489.88 billion, and net consolidated
loans and receivables at PHP285.52 billion.
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
On May 4, 2007, Moody's Investors Service says it maintains the
bank's BFSR remains at D. The Foreign Currency Deposit Ratings
remain unchanged at B1/NP, and are constrained by the country
ceiling. The Foreign Currency Subordinated Debt ratings have
been changed to Ba2 from Ba3, and pierce the country ceiling.
The Foreign Currency Preferred Stock rating has been changed to
Ba3 from B2. The outlook for all ratings is stable.
On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
On September 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'. All
the bank's other ratings were affirmed:
* Long-term Issuer Default rating 'BB-' -- with a stable
Outlook,
* Short-term rating 'B,'
* Support rating '3.
On November 6, 2006, the TCR-AP reported that Moody's Investors
Service revised the outlook of Metrobank's foreign currency
long-term deposit rating of B1 and foreign currency subordinated
debt rating of Ba3 from negative to stable.
PHILCOMSAT HOLDINGS: Court Takes Control Away From PCGG
-------------------------------------------------------
After almost two decades of a protracted legal battle, five
families have regained control of the Philcomsat Holdings Corp.,
the Philippine Daily Inquirer reports.
In an Apr. 12, 2007 ruling, the Makati Regional Trial Court
handed over full ownership and control of PHC to its "rightful
owners," evicting the board representing the Presidential
Commission on Good Government, the Inquirer relates.
According to the Inquirer, the order issued by Judge Zenaida
Galapate-Laguilles of the Makati RTC Branch 138 was the formal
execution of an Oct. 14, 2006 ruling by the same court that
nullified the elections of the PCGG board headed by Enrique
Locsin in 2004. That board consisted of Locsin, Julio
Jalandoni, Manuel Andal, Luis Lokin Jr., Manuel Nieto Jr.,
Roberto V. San Jose, Philip Brodett, Oliverio Lapaeral, Benito
Araneta and Roberto Abad.
The report adds that the judge recognized as "valid" the board
headed by Victor V. Africa with members Erlinda Ilusorio-
Bildner, Katrina Ponce-Enrile, Honorio Poblador III, Fedrico
Agcaoili, Sylvia Ilusorio and Jose Ozamiz. The decision settled
for the time being a long-standing quarrel among shareholders
for control of three companies -- the PHC, the Philippine
Communications Satellite Corp. (Philcomsat), and the Philippine
Overseas Telecommunications Corp.
The report explains that PHC is 80% owned by Philcomsat, the
satellite technology pioneering company. Both companies in turn
are owned by POTC , whose shares were sequestered by the Aquino
government in 1986 on allegations that these were acquired with
ill-gotten wealth. The POTC is 35% owned by the government
through PCGG. Africa is the president of the POTC.
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, PHC was one of
the active participants in search of oil. The company has since
withdrawn from oil exploration because there was no commercial
discovery of oil.
On Jan. 10, 1997, the company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
According to a Troubled Company Reporter - Asia Pacific report
on May 18, 2006, PHC has not declared dividends for the past two
fiscal years.
Philcomsat is involved in an anomaly brought about by huge
losses. The company reported a PHP16.9-million net loss in
2005. The Philippine Senate has initiated an inquiry into the
matter. Moreover, according to press reports, a huge fraction
of the shareholdings of Philcomsat, which is said to be ill-
gotten, had been confiscated by the Government.
PHILCOMSAT HOLDINGS: Clarifies Set of Directors and Officers
------------------------------------------------------------
Pursuant to the Makati Regional Trial Court's order on April 12,
2007, full ownership and control of Philcomsat Holdings
Corporation was given to its "rightful owners," evicting the
board representing the Presidential Commission on Good
Government. The order nullified the elections of the PCGG board
headed by Enrique Locsin in 2004. That board consisted of Mr.
Locsin, Julio Jalandoni, Manuel Andal, Luis Lokin Jr., Manuel
Nieto Jr., Roberto V. San Jose, Philip Brodett, Oliverio
Lapaeral, Benito Araneta, and Roberto Abad.
The report adds that the judge recognized as "valid" the board
headed by Victor V. Africa with members Erlinda Ilusorio-
Bildner, Katrina Ponce-Enrile, Honorio Poblador III, Fedrico
Agcaoili, Sylvia Ilusorio and Jose Ozamiz. The decision settled
for the time being a long-standing quarrel among shareholders
for control of three companies -- the PHC, the Philippine
Communications Satellite Corp. (Philcomsat), and the Philippine
Overseas Telecommunications Corp.
The company informed the Philippine Stock Exchange that it
applied for and received a temporary restraining order issued by
the Court of Appeals enjoining the Makati Regional Trial Court,
its agents and representatives, from enforcing or implementing
or otherwise giving effect to the order.
The company also informed the Exchange that a disclosure was
filed with the PSE on April 24 by a lawyer named John Benedict
Sioson, detailing the company's supposed new set of directors,
officers and members of the executive committee. The new board
is from Mr. Africa's group.
Philcomsat's Vice President Philip Brodett explains that since
the enforcement of the writ of execution has been enjoined by
the Court of Appeals' TRO, "the purported election by the group
of Mr. Africa of a new set of PHC directors, officers and
members of the executive committee . . . is not valid and should
therefore not be recognized."
The company's disclosure containing its full list of officers is
available for free at:
http://bankrupt.com/misc/PhilcomsatDisclosure.pdf
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, Philcomsat
Holdings was one of the active participants in search of oil.
The company has since withdrawn from oil exploration because
there was no commercial discovery of oil.
On January 10, 1997, the company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
According to a Troubled Company Reporter - Asia Pacific report
on May 18, 2006, Philcomsat Holdings has not declared dividends
for the past two fiscal years.
Philcomsat is involved in an anomaly brought about by huge
losses. The company reported a PHP6.965-million loss in 2004,
and a PHP22-million loss in 2005. The Philippine Senate has
initiated an inquiry into the matter.
Moreover, according to press reports, a huge fraction of the
shareholdings of Philcomsat, which is said to be ill gotten, had
been confiscated by the Government.
SAN MIGUEL: Nihon Yamamura Gains 35% Stake in Packaging Business
----------------------------------------------------------------
San Miguel Corporation and Nihon Yamamura Glass, a leading
Japanese manufacturer of glass and plastics packaging, have
announced that they have reached an agreement under which NYG
would gain a minority interest as a strategic equity partner in
SMC's domestic and international packaging businesses, SMC says
in a press release.
NYG is a long-time joint venture partner of San Miguel in the
Philippines. Together, the companies own and operate the
country's largest glass plant, San Miguel Yamamura Asia
Corp., and San Miguel Yamamura Fuso Molds Corporation, as well
as a glass plant in Vietnam. Apart from Vietnam and the
Philippines, NYG also has presence in China and Taiwan.
The agreement would allow NYG to participate in other packaging
formats already being produced by San Miguel such as metal,
metal closure, carton, plastics and composites.
NYG's equity infusion would give it a 35% stake in San Miguel's
total packaging businesses represented by its domestic and
regional operations under San Miguel Packaging Specialists, Inc.
and San Miguel Packaging International, Ltd., respectively.
The expanded partnership will bring together the strengths of
the two companies in the manufacture and marketing of innovative
packaging solutions and products for regional customers.
Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,
operates food, beverage and packaging businesses. The company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products. San Miguel markets its
products both in the domestic and overseas markets. The company
also manufactures glass, metal, plastic, paper and composites
packaging products.
Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.
UNION BANK: Gets SEC OK to Sell Additional 90 Mil. Common Shares
----------------------------------------------------------------
Union Bank of the Philippines has announced that the Securities
and Exchange Commission has issued a Certificate of Permit to
Offer Securities for Sale, the bank said in a corporate
disclosure to the Philippine Stock Exchange.
The order grants Union Bank the right to issue ninety million
common shares.
Union Bank of the Philippines -- http://www.unionbankph.com/--
offers a wide range of products and services to both corporate
and individual clients. Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance. It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.
Fitch Ratings affirms Union Bank of the Philippines' ratings at
individual C/D and support 4 after a review of the bank.
* RP Banks Threatened By Bad Loans
----------------------------------
Philippine banks are still vulnerable to bloating their
portfolios with bad loans at levels reminiscent of the 1997
Asian currency crisis, given the slow progress on the disposal
of problematic assets, Business World reports citing
international rating firm Standard & Poor's said.
According to the report, in a study released last week, the
global debt watcher said the level of the local banking
industry's non-performing assets could rise to 29% to 36% in the
event of an economic recession. The study involved a stress
test of Asian banking systems on how well they can withstand
crisis scenarios involving a 7.5% to 10% appreciation in
domestic currencies or a rise in crude oil prices to US$75 to
US$100 per barrel.
The report quotes S&P's report as saying "With high residual
NPAs, the Philippine banking system is more susceptible to
returning to the 30% levels of the 1997 Asian financial crisis."
"Stress simulation of the Asian crisis-like conditions on 2005
NPAs... indicates a likely rise in the NPA level to 29% to 36%,"
the report added. Business World says that S&P shared the view
of the International Monetary Fund, which earlier said local
banks lagged behind their counterparts in Thailand, Indonesia
and Korea in ridding their portfolios of bad assets.
Business World explains that banks' nonperforming assets, which
consist of soured loans and foreclosed properties, ballooned in
the wake of a contagion that hit the region a decade ago, which
slackened demand for credit and eroded borrowers'
creditworthiness. "Bank asset quality remains weak by
international standards. This will continue to put pressure on
the system's capitalization in the near term," S&P said.
The report adds that data gathered by the rating firm from the
central bank showed that it had taken four years for Philippine
banks to halve their non-performing loans to PHP118 billion in
2006 from PHP245 billion in 2002.
The report further adds that the central bank earlier said that
it expected commercial banks' bad loan ratio to soon fall below
5%, getting near pre-Asian crisis levels, as banks rush to sell
off soured assets before perks for buyers expire. A Special
Purpose Vehicle law that provides benefits such as tax breaks
and lower transfer fees for buyers of banks' bad loans and
assets is set to expire next year.
The report recounts that banks' bad loan ratio was at an eight-
year low of 6.01% as of end-December, helped by expanding
lending portfolios. Before he 1997-1998 Asian currency crisis,
which resulted in soured bank loans to the property sector, the
bad loan ratio was at 4%.
* Moody's Releases Bank Rating Actions for Philippines
------------------------------------------------------
Moody's Investors Service, on May 4, 2007, published the rating
results for banks in Philippines as part of the application of
its refined joint default analysis and updated bank financial
strength rating methodologies.
BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.
Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.
Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.
The methodologies are being implemented country by country, with
results being announced on a weekly basis. Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.
Moody's assesses support levels to banks in the Philippines
using its low country support guideline. This guideline takes
into consideration the history of support for banks, the size,
strength and the degree of fragmentation of the Philippine
banking system.
Based on this framework, the implementation of the JDA
methodology led to the upgrade in the local currency deposit
ratings of the Development Bank of the Philippines by five
notches to A3, primarily due to Moody's assessment of a very
high probability of systemic support available to the bank given
its status as a wholly owned government bank. DBP's bank
financial strength rating remains unchanged at D.
This press release lists the names of issuers in the Philippines
whose ratings have been changed, affirmed, or put on review.
Deposit ratings are listed for those banks whose deposit ratings
have changed. To view all ratings changes and other documents
explaining Moody's bank rating methodologies, please go to
http://www.moodys.com/JDABanks.
Below is a list of banks whose ratings have been changed:
Development Bank of the Philippines -- The BFSR remains
unchanged at D. The Global Local Currency Deposit Ratings have
been changed to A3/P2 from Ba2/NP. The Foreign Currency Deposit
Ratings remain unchanged at B1/NP, and are constrained by the
country ceiling. The outlook for all ratings is stable.
Equitable-PCI Bank -- The BFSR has been changed to a D from a D-
, concluding a review for upgrade begun on November 15, 2006.
The Foreign Currency Deposit Ratings remain unchanged at B1/NP,
and are constrained by the country ceiling. The Foreign
Currency Senior Debt and Subordinated Debt ratings have been
changed to Ba2 from Ba3, and pierce the country ceiling. The
outlook for all ratings is stable.
Metropolitan Bank and Trust Company -- The BFSR remains
unchanged at D. The Foreign Currency Deposit Ratings remain
unchanged at B1/NP, and are constrained by the country ceiling.
The Foreign Currency Subordinated Debt ratings have been changed
to Ba2 from Ba3, and pierce the country ceiling. The Foreign
Currency Preferred Stock rating has been changed to Ba3 from B2.
The outlook for all ratings is stable.
UnionBank of the Philippines -- The BFSR remains unchanged at D
but the outlook for the BFSR has been changed to stable from
negative. The Foreign Currency Deposit Ratings remain unchanged
at B1/NP, and are constrained by the country ceiling. The
Foreign Currency Senior Debt ratings remain unchanged at Ba3,
and are constrained by the country ceiling. The outlook for all
ratings is stable.
Below is a list of banks whose ratings have been affirmed:
Allied Banking Corporation -- The BFSR remains unchanged at E+.
The Foreign Currency Deposit Ratings remain unchanged at B1/NP,
and are constrained by the country ceiling. The outlook for all
ratings is stable.
Banco de Oro Universal Bank -- The BFSR remains unchanged at D.
The Foreign Currency Deposit Ratings remain unchanged at B1/NP,
and are constrained by the country ceiling. The Foreign
Currency Senior Debt rating remains unchanged at Ba3, and is
constrained by the country ceiling. The outlook for all ratings
is stable.
Bank of the Philippine Islands -- The BFSR remains unchanged at
C-. The Global Local Currency Deposit Ratings are assigned at
A3/P1. The Foreign Currency Deposit Ratings remain unchanged at
B1/NP, and are constrained by the country ceiling. The outlook
for all ratings is stable.
Land Bank of the Philippines -- The BFSR remains unchanged at
E+. The Foreign Currency Deposit Ratings remain unchanged at
B1/NP, and are constrained by the country ceiling. The outlook
for all ratings is stable.
Philippine National Bank -- The BFSR remains unchanged at E. The
Global Local Currency Deposit Ratings remain unchanged at
Ba2/NP. The Foreign Currency Deposit Ratings remain unchanged at
B1/NP, and are constrained by the country ceiling. The Local
Currency Subordinated Debt ratings remain unchanged at Ba3. The
outlook for all ratings is stable.
Rizal Commercial Bank Corp. -- The BFSR remains unchanged at E+.
The Foreign Currency Deposit Ratings remain unchanged at B1/NP,
and are constrained by the country ceiling. The Foreign Currency
Senior Debt ratings remain unchanged at Ba3, and are constrained
by the country ceiling. The Foreign Currency Preference Shares
remain unchanged at B3. The outlook for all ratings is stable.
United Coconut Planters Bank -- The BFSR remains unchanged at E.
The Foreign Currency Deposit Ratings remain unchanged at B1/NP,
and are constrained by the country ceiling. The outlook for all
ratings is stable.
About Moody's Bank Ratings
Bank Financial Strength Rating
Moody's Bank Financial Strength Ratings represent Moody's
opinion of a bank's intrinsic safety and soundness and, as such,
exclude certain external credit risks and credit support
elements that are addressed by Moody's Bank Deposit Ratings.
Bank Financial Strength Ratings do not take into account the
probability that the bank will receive such external support,
nor do they address risks arising from sovereign actions that
may interfere with a bank's ability to honor its domestic or
foreign currency obligations. Factors considered in the
assignment of Bank Financial Strength Ratings include bank-
specific elements such as financial fundamentals, franchise
value, and business and asset diversification. Although Bank
Financial Strength Ratings exclude the external factors
specified above, they do take into account other risk factors in
the bank's operating environment, including the strength and
prospective performance of the economy, as well as the structure
and relative fragility of the financial system, and the quality
of banking regulation and supervision.
Global Local Currency Deposit Rating
A deposit rating, as an opinion of relative credit risk,
incorporates the Bank Financial Strength Rating as well as
Moody's opinion of any external support. Specifically, Moody's
Bank Deposit Ratings are opinions of a bank's ability to repay
punctually its deposit obligations. As such, Moody's Global
Local Currency Bank Deposit Ratings are intended to incorporate
those aspects of credit risk relevant to the prospective payment
performance of rated banks with respect to local currency
deposit obligations, and includes: intrinsic financial strength
and both implicit and explicit external support elements.
Moody's Bank Deposit Ratings do not take into account the
benefit of deposit insurance schemes which make payments to
depositors, but they do recognize the potential support from
schemes that may provide assistance to banks directly.
Foreign Currency Deposit Rating
Moody's ratings on foreign currency bank obligations derive from
the bank's local currency rating for the same class of
obligation. The implementation of JDA for banks can lead to a
high local currency ratings for certain banks, which could also
produce high foreign currency ratings. Nevertheless, it should
be reminded that foreign currency deposit ratings are in all
cases constrained by the country ceiling for foreign currency
bank deposits. This may result in the assignment of a
different, and typically lower, rating for the foreign currency
deposits relative to the bank's rating for local currency
obligations.
Foreign Currency Debt Rating
Foreign currency debt ratings are derived from the bank's local
currency debt rating for the same class of obligation. In a
similar way to foreign currency deposit ratings, foreign
currency debt obligations may also be constrained by the country
ceiling for foreign currency bonds and notes, however, in some
cases the ratings on foreign currency debt obligations may be
allowed to pierce the foreign currency ceiling. A particular
mix of rating factors are taken into consideration in order to
assess whether a foreign currency bond rating pierces the
country ceiling. They include the issuer's global local
currency rating, the foreign currency government bond rating,
the country ceiling for bonds and the debt's eligibility to
pierce that ceiling.
National Scale Rating
National scale ratings are intended primarily for use by
domestic investors and are not comparable to Moody's globally
applicable ratings; rather they address relative credit risk
within a given country. An Aaa rating on Moody's National Scale
indicates an issuer or issue with the strongest creditworthiness
and the lowest likelihood of credit loss relative to other
domestic issuers. National Scale Ratings, therefore, rank
domestic issuers relative to each other and not relative to
absolute default risks. National ratings isolate systemic
risks; they do not address loss expectation associated with
systemic events that could affect all issuers, even those that
receive the highest ratings on the National Scale.
=================
S I N G A P O R E
=================
E-FORCE TECHNOLOGIES: Court Enters Wind-Up Order
------------------------------------------------
On April 13, 2007, the High Court of Singapore released an order
to wind up the operations of E-Force Technologies Pte Ltd.
Tme Systems Pte Ltd. filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
OPALTREE SYSTEMS: Court Enters Wind-Up Order
--------------------------------------------
On April 16, 2007, the High Court of Singapore released an order
to wind up the operations of Opaltree Systems (Singapore) Pte
Ltd.
Crict Research & Consulting Pte Ltd. filed the petition against
the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
PETROLEO BRASILEIRO: No Deal Yet on Petrochemical Consolidation
---------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA has not
reached an accord with Unipar and Suzano Petroquimica to
consolidate the petrochemical sector in Brazil's southeast
region, Business News Americas reports, citing Unipar Vice
President Vitor Mallmann.
BNamericas says that the project is called Petroquimica do
Sudeste.
Mr. Mallmann explained to BNamericas, "In reality, each company
has its own vision of how the business should be carried out."
However, Mr. Mallmann assured BNamericas that the consolidation
in the southeast region will eventually occur.
Local paper Diario do Grande ABC relates that a potential
consolidation of petrochemical plants and activities in the
southeast region could generate at least BRL7 billion in new
investments.
Mr. Mallmann told BNamericas, "If we analyze the crucial and
successful factors of the petrochemical industry [in Brazil],
Sao Paulo has two major assets; market share and availability of
raw materials."
Suzano Petroquimica's Marketing Manager Sinclair Fittipaldi
commented to BNamericas that the debated cooperation between the
company, Petroleo Brasileiro and Unipar will form major
synergies in the entire plastic manufacturing chain.
Authorities' recent inspection of the acquisition of the assets
oil refiner and distributor Ipiranga's assets by petrochemicals
groups Ultrapar and Braskem, and Petroleo Brasileiro has slowed
down talks towards the Petroquimica do Sudeste project,
BNamericas notes, citing Mr. Fittipaldi.
"[The recent events] put pressure on the companies to ensure
that the same thing does not take place in the southeast
region," Mr. Fittipaldi told BNamericas.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/-- 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 Investors Service.
Fitch Ratings assigned BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.
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: Reiterates Partnership with PDVSA
------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has reaffirmed that its
projects in partnership with Petroleos de Venezuela, the
Venezuelan National Oil Company -- has continued on course.
Negotiations involving the construction of the Abreu Lima
Refinery, in the Suape Port (state of Pernambuco, Northeastern
Brazil), in association with the development of the Carabobo
field, in Venezuela, are in progress.
The company reiterates there is no threat the negotiations
kicked-off nearly two years ago will be interrupted. It also
announces that next Tuesday, International Area director, Nestor
Cervero, and Supply director, Paulo Roberto Costa, will be in
Caracas, Venezuela, to attend yet another normally-scheduled
ordinary meeting of the joint Petrobras/PDVSA committee.
Petrobras remains resolute to study the viability of the
projects that are currently under discussion with PDVSA and the
Venezuelan government, including mature field revitalization and
Mariscal Sucre field development, both in Venezuela.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/-- 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 Investors Service.
Fitch Ratings assigned BB+ ratings on Petroleo Brasileiro's
US$400 million 9% senior unsecured notes due April 1, 2008;
US$750 million 9.125% senior unsecured notes due July 2, 2013;
US$650 million 7.75% senior unsecured notes due Sept. 15, 2014;
and US$750 million 8.375% senior unsecured notes due Dec. 10,
2018.
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.
SIN LIAN: Court to Hear Wind-Up Petition on May 11
--------------------------------------------------
Hongkong and Shanghai Banking Corporation Limited filed a wind-
up petition against Sin Lian Heng Construction Pte Ltd., on
April 18, 2007.
The High Court of Singapore will hear the petition on May 11,
2007, at 10:00 a.m.
HSBC's solicitor is:
M/s Shook Lin & Bok
1 Robinson Road #18-00
AIA Tower
Singapore 048542
===============
T H A I L A N D
===============
ARVINMERITOR INC: Posts US$94 Million Loss for 2Q Ended Mar. 31
---------------------------------------------------------------
ArvinMeritor Inc. reported US$94 million in net losses on
US$1.63 billion in net revenues for the second quarter ended
Mar. 31, 2007, compared with US$45 million in net profit on
US$1.63 billion in net revenues for the second quarter ended
Mar. 31, 2006.
ArvinMeritor Inc. reported US$87 million in net losses on
US$3.19 billion in net revenues for the first half ended
Mar. 31, 2007, compared with US$79 million in net profit on
US$3.09 billion in net revenues for the first half ended
Mar. 31, 2006.
As of Mar. 31, 2007, ArvinMeritor had US$5.5 billion in total
assets, US$4.58 billion in total liabilities and US$918 million
in shareholders' equity.
"While second-quarter results did not meet our expectations, we
are pleased with the substantial margin improvement in our LVS
business as our new leadership team becomes fully integrated and
the initiatives identified through our Performance Plus program
begin to take effect," Chip McClure," Chairman, CEO and
President, said. "The initial investment we made in Performance
Plus increases our confidence that we can deliver profit
improvement actions which will improve cash flow and increase
shareowner value. We have committed significant resources to
building a more focused and profitable business model for
ArvinMeritor and we anticipate improved results in 2008 and
beyond, achieving cost savings of US$150 million alone in 2009
from our Performance Plus cost initiatives.
Update on Performance Plus
As announced, ArvinMeritor's Performance Plus program is focused
on six areas, three related to cost reductions and three focused
on revenue enhancement. Since the company announced this
initiative in December 2006, ArvinMeritor now anticipates
incremental savings in excess of what it had originally
targeted.
ArvinMeritor expects restructuring and cost reductions alone to
generate US$150 million in savings by 2009, resulting from:
-- restructuring in North America and Europe which will
affect 13 plants and 2,800 employees estimated to cost
around US$325 million through 2012;
-- sourcing opportunities in leading cost-competitive
countries, lower transportation and freight costs,
logistics cost savings, and product redesign;
-- reductions in overhead; and
-- improvements to the company's manufacturing operations and
supply chain management.
Freezing Pension Plan
ArvinMeritor also disclosed of a freeze of its defined benefit
pension plan for salaried and non-represented employees in the
United States, effective Jan.1, 2008. The change will affect
approximately 3,800 employees including certain employees who
will continue to accrue benefits for an additional transition
period, ending June 30, 2011.
After these freeze dates, the company will instead make
additional contributions to its defined contribution savings
plan on behalf of the affected employees. The amount of the
savings plan contribution will be based on a percentage of the
employee's pay, with the contribution percentage increasing as
the employee ages.
These changes do not affect current retirees or represented
employees.
Outlook
The company has adjusted its forecast for the balance of fiscal
year 2007.
The company now expects sales from continuing operations in
fiscal year 2007 to be in the range of US$6.0 to US$6.2 billion,
up from our previous range of US$5.9 to US$6.1 billion, and
anticipates full-year diluted earnings per share from continuing
operations to be in the range of US$0.70 to US$0.80, down from
US$1.00 to US$1.10.
This guidance excludes gains or losses on divestitures,
restructuring costs and other special items, including potential
extended customer shutdowns or production interruptions. Cash
flow guidance for fiscal year 2007 remains in the range of US$50
million to US$100 million.
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$8.8
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry. The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets. ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
As reported in the Troubled Company Reporter on Feb. 12, 2007,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc. The trend is Stable.
TCR-Europe on Feb. 6, 2007, reported that Moody's Investors
Service downgraded ArvinMeritor's Corporate Family Rating to Ba3
from Ba2. Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.
Ratings lowered:
ArvinMeritor Inc.
-- Corporate Family Rating to Ba3 from Ba2
-- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
LGD-2, 18%
-- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
LGD-4, 64%
-- Probability of Default to Ba3 from Ba2
-- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
LGD-4, 64%
Arvin Capital I
-- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%
Arvin International PLC
-- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
LGD-4, 65% from Ba3, LGD-4, 64%
Ratings affirmed:
ArvinMeritor Inc.
-- Speculative Grade Liquidity rating, SGL-2
BLOCKBUSTER INC: Posts US$46.4MM Net Loss in Qtr. Ended April 1
---------------------------------------------------------------
Blockbuster Inc. reported a net loss of US$46.4 million for the
first quarter ended April 1, 2007, compared with a net loss of
US$1.9 million, for the first quarter of 2006. Total revenues
increased 5.4% to US$1.47 billion for the first quarter of 2007
from US$1.4 billion for the first quarter of 2006.
"During the first quarter, we captured share of the overall
rental market, continued to contain operating expenses and
aggressively grew our BLOCKBUSTER Total Access(TM) subscriber
base, which nearly doubled in a matter of five months and now
exceeds 3 million total subscribers. I am extremely pleased
with these accomplishments. Our results were impacted by our
investment in the growth of BLOCKBUSTER Total Access and by an
extremely tough in-store rental market," said John Antioco,
Blockbuster chairman and chief executive officer. "The first
quarter of 2007 was our highest subscriber growth quarter ever,
surpassing even the initial success of the program and providing
clear testimony to the consumer appeal of our integrated online
and in-store offering, which we believe will allow us to achieve
our year-end goal of well over 4 million subscribers. While
this aggressive growth requires investment this year, we believe
it's the right thing for the business and will contribute to our
future profitability and to the long-term success of the
Company."
Total revenues for the first quarter of 2007 increased primarily
as a result of strong merchandise sales and approximately
US$20 million in revenues associated with the termination of
Blockbuster's Brazilian franchise agreement. Rental revenues
for the period remained essentially flat at US$1.05 billion
reflecting growth in revenues from BLOCKBUSTER Total Access,
which added approximately 800,000 subscribers during the first
quarter of 2007 offsetting a larger than expected decline in the
in-store rental industry.
Operating loss for the first quarter of 2007 totaled US$18.4
million, compared to operating income of US$32.1 million for the
same period last year. Gross profit decreased US$27.7 million
primarily as a result of the decrease in rental gross margin,
which was largely due to purchases of additional rental product
in order to support in-store exchanges resulting from additional
traffic generated by the significant growth of BLOCKBUSTER Total
Access. Total selling, general and administrative expenses for
the first quarter of 2007 increased US$24.3 million from the
first quarter of 2006 largely due to a higher level of
promotional activities, including an incremental US$35 million
mass-media advertising campaign aimed at growing the BLOCKBUSTER
Total Access subscriber base and increasing customers' awareness
of the program.
Cash flow provided by operating activities decreased by US$185
million from US$41 million for the first quarter of 2006 to a
deficit of US$144 million for the first quarter of 2007. The
decrease was driven primarily by a reduction in payables and
accrued expenses and lower net income. This reduction resulted
largely from the company returning to normalized credit terms
with its vendors as compared to the same period last year. As
of April 1, 2007, no balance was outstanding under the company's
revolving credit facility and the company's borrowing capacity
totaled approximately US$295 million.
About Blockbuster
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.
The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services revised its outlook on video
rental retailer Blockbuster Inc. to stable from negative. The
ratings on the Dallas-based company, including the 'B-'
corporate credit rating, were affirmed.
Fitch Ratings affirmed Blockbuster Inc.'s Issuer default rating
at 'CCC'; Senior secured credit facility rating at 'CCC/RR4';
and Senior subordinated notes rating at 'CC/RR6'.
The Troubled Company Reporter - Asia Pacific reported that in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the the US and Canadian Retail sector, the
rating agency confirmed its B3 Corporate Family Rating for
Blockbuster Inc.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$500 million
Sr. Sec. Revolving
Credit Facility B3 B1 LGD2 25%
US$100 million
Senior Secured
Term Loan A B3 B1 LGD2 25%
US$550 million
Senior Secured
Term Loan B B3 B1 LGD2 25%
US$300 million
9% Sr. Sub. Notes Caa3 Caa2 LGD5 86%
CIGNA CORP: Earns US$289 Million in First Quarter Ended March 31
----------------------------------------------------------------
CIGNA Corporation reported net income of US$289 million for the
first quarter ended March 31, 2007, compared with net income of
US$352 million for the same period last year. Net income for
the first quarter of 2006 included after-tax realized investment
gains of US$94 million.
Consolidated revenues were US$4.4 billion for the first quarter
of 2007 and US$4.1 billion for the first quarter of 2006.
Excluding income from discontinued operations and realized
investment gains, net of taxes, CIGNA's adjusted income from
operations was US$264 million for the first quarter of 2007
versus adjusted income from operations of US$258 million for the
same period last year. This quarter's earnings reflect strong
results in CIGNA's health care, disability and life, and
international businesses.
"We generated strong earnings in each of our businesses in the
first quarter of 2007," said H. Edward Hanway, chairman and
chief executive officer of CIGNA Corporation. "We grew health
care membership, and our group disability and life as well as
our international results reflect the strength of their
respective competitive positions. Looking ahead, we are
confident that we will continue to succeed in the marketplace by
using our strengths and differentiated capabilities to enhance
and improve the health, well-being, and security of our
members."
Health care medical claims payable were approximately US$755
million at March 31, 2007, and US$710 million at Dec. 31, 2006.
The company repurchased on the open market approximately
4.2 million shares of its stock for US$575 million during the
first quarter of 2007 and approximately 4.9 million shares for
US$680 million year to date. As of May 2, 2007, the company has
approximately US$300 million of stock repurchase authority
available.
Cash and short term investments at the parent company were
approximately US$770 million at March 31, 2007, and US$425
million at December 31, 2006.
At March 31, 2007, the company's balance sheet showed
US$42.38 billion in total assets, US$38.23 billion in total
liabilities, and US$4.15 billion in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements of the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?1e69
Headquartered in Philadelphia, CIGNA Corporation (NYSE: CI)
-- http://www.cigna.com/-- provides health care and related
benefits offered through the workplace. Key product lines
include health care products and services (medical, pharmacy,
behavioral health, clinical information management, dental and
vision benefits, and case and disease management); and group
disability, life and accident insurance. In addition, CIGNA
also provides life, accident, health and expatriate employee
benefits insurance coverage in selected international markets.
CIGNA's member companies have offices in Thailand, Singapore,
Korea, the Philippines, New Zealand, Japan, Indonesia, China,
the Mediterranean area, South America, India, the Near East and
Europe.
As reported in the Troubled Company Reporter on Aug. 22, 2006
Standard & Poor's Ratings Services assigned its preliminary
'BB+' preferred stock rating to Cigna Corp.'s universal shelf.
The outlook remains positive.
DAIMLERCHRYSLER AG: Earns US$3.7 Billion in Full Year 2006
----------------------------------------------------------
DaimlerChrysler AG has released its 2006 consolidated financial
statements, prepared according to International Financial
Reporting Standards.
In IFRS, DaimlerChrysler reported US$3.78 billion in net profit
on US$152.81 billion in net revenues for the full year 2006. In
U.S. GAAP, the company posted US$3.23 billion in net profit on
US$151.59 in net revenues for the full year 2005.
"We have used the transition to IFRS to make our financial
reporting even more transparent," said Bodo Uebber, Board of
Management member at DaimlerChrysler AG responsible for Finance
& Controlling and Financial Services. "At the same time, we
have improved our internal information system," he added. The
transition to IFRS does not change the divisions' return targets
or the Group's performance measurement.
EBIT of EUR5.5 billion for the year 2006 is almost unchanged
compared to the previous figure for operating profit. In terms
of after-tax earnings, compared to U.S. GAAP the change to IFRS
leads to an increase of EUR600 million to EUR3.8 billion, while
earnings per share increase by EUR0.50. DaimlerChrysler
presented its consolidated financial statements according to
U.S. GAAP in February.
Key figures
Earnings by Segments 2006
(in billions of euros)
U.S. GAAP IFRS Change
Mercedes Car Group 2.4 1.8 -0.6
Chrysler Group -1.1 -0.5 0.6
Truck Group 2.0 1.9 -0.1
Financial Services 1.7 1.6 -0.1
Van, Bus, Other 0.9 1.3 0.4
Elimination/
Reconciliation -0.4 -0.6 -0.2
DC Group 5.5 5.5 -
(in millions of euros)
U.S. GAAP IFRS Change
Group:
Equity 34,155 37,449 3,294
Financial
Liabilities(2) -78,584 -98,553 -19,969
Total Assets 190,022 217,634 27,612
Industrial Business:
Equity 25,248 28,628 3,380
Equity Ratio(1) 25.1% 27.2% 2.1%
Net Liquidity 6,400 9,861 3,461
Total Assets 94,541 99,427 4,886
(1) Excluding dividend payment
(2) US-GAAP: nominal value; IFRS: hedged nominal value
(in millions of euro)
2006
U.S. GAAP IFRS Change
Revenues 151,589 152,809 1,220
Operating
Profit / EBIT 5,517 5,489 -28
Net Income /
Net Profit 3,227 3,783 556
EPS (euro) 3.16 3.66 0.50
Revenues by Segments 2006
(in billions of euro)
U.S. GAAP IFRS Change
Mercedes Car
Group 54.6 51.4 -3.2
Chrysler Group 47.1 47.0 -0.1
Truck Group 32.0 31.8 -0.2
Financial
Services 17.2 16.0 -1.2
Van, Bus, Other 13.4 13.2 -0.2
Elimination/
Reconciliation -12.7 -6.6 +6.1
DC Group 151.6 152.8 +1.2
Development Costs
According to U.S. GAAP, development costs are generally expensed
in the same period that they are incurred. According to IFRS,
however, some development costs are capitalized as intangible
assets and amortized on a straight-line basis. In the 2006
consolidated financial statements, this change led to an
increase in shareholders' equity of EUR5.1 billion compared to
the U.S. GAAP accounts. The impact on EBIT was immaterial.
EADS
The impairment of nearly EUR2 billion recognized on the book
value of the Group's equity interest in EADS in 2003 according
to U.S. GAAP was not required under IFRS. Therefore, our EADS
shareholding has a considerably higher valuation in the IFRS
balance sheet at year-end 2006.
Under both IFRS and U.S. GAAP, EADS is shown in
DaimlerChrysler's consolidated financial statements using the
equity method after a three-month time lag. According to IFRS,
important events such as the decisions by the EADS management in
the fourth quarter of 2006 concerning the Airbus A380 and the
Airbus A350 have to be reflected by DaimlerChrysler, with a
resulting charge on earnings of EUR4 million.
Under U.S. GAAP, there was no such effect in the fourth quarter
of 2006 because the time lag was to be observed. On balance,
these two factors led to an increase in shareholders' equity of
EUR8 million in the IFRS consolidated financial statements for
2006 compared with the U.S. GAAP accounts. EBIT is reduced by
EUR8 million primarily due to the aforementioned additional
charge to earnings of EUR4 million compared with U.S. GAAP and
because unlike operating profit, EBIT includes the after-tax
equity-method result of EADS. Net profit is reduced by EUR5
million.
Pensions and Similar obligations
With regard to pension and healthcare plans, DaimlerChrysler
decided in favor of the "fresh-start" option as of the date of
transition to IFRS, Jan. 1, 2005. This means that at that date,
all of the actuarial gains and losses previously accumulated
have been charged to equity. But this led to an only slight
reduction in shareholders' equity of EUR8 million in 2006, as
due to a change in U.S. GAAP, actuarial gains and losses are
fully included in equity as of Dec. 31, 2006, also according to
U.S. GAAP.
However, in the 2006 IFRS income statement, this results in a
positive impact on EBIT of EUR3 million, because retroactive
plan adjustments are always immediately entered in the income
statement under IFRS, whereas under U.S. GAAP they are
distributed over the remaining service period.
Earnings before taxes according to IFRS increased by EUR1.6
billion compared to U.S. GAAP.
ABS Transactions
Asset backed securities, which result mainly from the sale to
institutional investors of receivables in the financial services
business, are classified as "sold" under U.S. GAAP and are not
consolidated. But according to IFRS, they remain in the balance
sheet. In the 2006 consolidated financial statements, this
means that the balance sheet total is EUR21.7 billion higher
than under U.S. GAAP. In addition, the ABS items results in an
increase in revenues of EUR9 million.
Provisions
According to IFRS, long-term provisions are generally to be
discounted and recognized at their present value if the effects
of discounting are material. According to U.S. GAAP,
discounting is only allowed for certain types of provisions if
the dates of the amounts and cash flows can be reliably
determined. This changed treatment results in a reduction of
EUR8 million in provisions in the IFRS consolidated financial
statements for 2006.
The change to IFRS also led to valuation differences concerning
the early retirement model commonly used in Germany, the so-
called "Altersteilzeit". Under U.S. GAAP, the total payments
due during the non-working phase are "saved" by gradually
setting up provisions during the employment phase. Under IFRS
however, provisions for the payments due during the non-working
phase are set up in the full amount when the "Altersteilzeit"
agreements are signed. In the IFRS consolidated financial
statements, this resulted in a reduction of EUR5 million in both
shareholders' equity while EBIT decreased by EUR5 million.
These differences resulted in the following effects on key
figures in 2006 under IFRS:
The substantial increase in the balance-sheet total to EUR218
billion was primarily due to consolidating the ABS transactions.
The equity of the industrial business increases to EUR28.6
billion, with a corresponding increase in the equity ratio to
27.2%. This was mainly caused by capitalizing development
costs.
The net liquidity of the industrial business increases from
EUR6.4 billion to EUR9.9 billion. One of the main reasons for
this is that the residual-value guarantees for leased vehicles
are no longer shown as financing liabilities, but under other
financial liabilities due to their operating nature.
The consolidated cash flow from operating activities is slightly
higher under IFRS than under U.S. GAAP. There is a positive
effect from the capitalization of development costs. On the
other hand, there is a reduction in cash provided by operating
activities because under IFRS the Group enters proceeds from the
sale of vehicles with significant residual-value guarantees
under cash provided by operating activities.
The increase in net profit to EUR3.8 billion compared with net
income of EUR3.2 billion under U.S. GAAP is primarily a result
of the lower cost of pensions and similar obligations. On the
other hand, there are higher expenses mainly due to the
treatment of EADS, taxes and provisions for early retirement.
At the divisional level, the change to IFRS primarily affects
the Mercedes Car Group and the Truck Group, whose revenues fall
in 2006 compared to U.S. GAAP. This is due to the altered
allocation of effects from manufacturer leasing, that is,
leasing vehicles to customers through the Financial Services
division in Germany. With the use of IFRS, these vehicles are
no longer regarded as being sold by the respective division.
Instead, revenues are recognized on a pro-rata basis in line
with the leasing payments over the period of the lease. This
means that revenues and earnings are recognized within the
divisions over the period of the leasing contracts. So this is
only a timing difference and does not reflect any reduction in
revenues from the operating business. There is no change in
revenues at the Group level.
DaimlerChrysler's consolidated financial statements for 2006
according to IFRS are available on the Internet at:
http://www.daimlerchrysler.com/ifrs
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.
DAIMLERCHRYSLER AG: Magna Tops List of Chrysler Contenders
----------------------------------------------------------
Magna International Inc. leads the race for DaimlerChrysler AG's
Chrysler Group and could grab a much larger stake in the ailing
unit, potentially taking a direct minority ownership stake of
between 25% and 50%, Tony Van Alphen of the Toronto Star
reports, quoting Brett Hoselton, an analyst from U.S. investment
firm KeyBanc Capital Markets.
"Many industry sources indicate Magna is the leading contender
for Chrysler," Mr. Hoselton said in a note to clients. He added
that the firm believes Magna and partner Onex Corp. will assess
the Chrysler Group in the "mid to high US$5 billion range,"
higher than previous estimates of US$4.6 billion to US$4.7
billion.
Toronto-based Onex would also hold 40% to 65% and German-parent
DaimlerChrysler would retain 10% in addition to a higher Magna
share, Mr. Hoselton said in the note. However, the deal would
fall apart if DaimlerChrysler, the United Auto Workers, Magna
and Onex Corp. fail to iron out the details, the Star cites Mr.
Hoselton as saying.
Magna Chair Frank Stronach told the Star his company would
consider other equity groups as its partner although Onex is the
number one choice. He explained that it would take another few
weeks before the auto parts maker completes a partnership group.
Mr. Stronach has also insisted the company would only take a
minority stake to avoid competing directly with other major
customers General Motors, Ford and Toyota.
Daimler also has to resolve a key issue, which remains
uncertain, regarding responsibility for billions of dollars in
Chrysler's pension and health-care obligations, Mr. Hoselton
said in the note.
"Scenarios include retainment by Chrysler or placement into a
separate entity (independent from Chrysler or DaimlerChrysler),"
he said. "We believe both scenarios include DaimlerChrysler
retaining some responsibility for the liabilities."
Labor Weighs in
Mr. Stronach has met with leaders of the United Auto Workers and
the Canadian Auto Workers who want DaimlerChrysler to keep the
money-losing North American operations, the Star reveals.
The TCR Europe reported on April 30 that UAW President Ron
Gettelfinger denied speculations that the union had endorsed
Magna International Inc. as its preferred buyer for Chrysler.
Representatives from the UAW, the CAW and IG Metall unions had
reiterated their opposition to DaimlerChrysler AG's plan to sell
Chrysler Group, especially if private equity groups take over.
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group. The Chrysler Group is facing a difficult market
environment in the United States with excess inventory, non-
competitive legacy costs for employees and retirees, continuing
high fuel prices and a stronger shift in demand toward smaller
vehicles. At the same time, key competitors have further
increased margin and volume pressures - particularly on light
trucks - by making significant price concessions. In addition,
increased interest rates caused higher sales & marketing
expenses. Chrysler Group will take additional production cuts
in the third and fourth quarters to reduce dealer inventories
and make way for its current product offensive.
SIAM COMMERCIAL: Allows King Power More Time to Think About Loan
----------------------------------------------------------------
"Siam Commercial Bank is giving more time to King Power
International before making any decision on a loan it made to
the duty-free operator," according to Thai Press Reports via
Thomson Dialog NewsEdge.
The report relates that "Airports of Thailand (AOT) has
cancelled its contracts with King Power for its exclusive
duty-free shop and management of the commercial area at
Suvarnabhumi Airport."
Thai Press Reports interviewed SCB Executive Vice President
Sarunthorn Chutima on April 20 and Mr. Chutima pointed out that
the bank could negotiate with King Power on its new business
plan if the company's prospects were changed by the end of its
monopoly at the new airport. Mr. Chutima, however, noted that
King Power remains "financially healthy and posed no problems in
servicing debts."
About Siam Commercial Bank
Thailand's fourth largest commercial bank, Siam Commercial Bank
-- 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, its total
assets added to THB814 billion as of December 31, 2005.
The Troubled Company Reporter - Asia Pacific reported on
Aug. 23, 2006, that Moody's Investors Service confirmed Siam
Commercial Bank Public Company Limited's D+ bank financial
strength rating and changed its outlook to positive from stable.
On Oct. 23, 2006, Fitch Ratings affirmed the ratings of Siam
Commercial Bank and removed them from Rating Watch Negative on
which they were placed on September 20, 2006, following the
military coup. The Outlook on their ratings is now Stable.
After the rating action, SCB's ratings are:
* Long-term foreign currency IDR BBB+/ Outlook Stable;
* Short-term foreign currency F2;
* Individual C;
* Support 2;
* Senior unsecured debt BBB+;
* Subordinated debt BBB.
TMB BANK: Seeks THB1 Billion Capital Increase to Recover Losses
---------------------------------------------------------------
TMB Bank plans to raise US$1 billion in new capital through
issuance of rights and debentures in order to recover its
losses, Shawn W. Crispin of the Asia Hand reports.
According to the article, TMB saw an increase in its overall
retained losses from THB44 billion at Sept. 30, 2006, to about
THB55 million by the end of 2006. The bank financially lost
THB12.3 billion for 2006. The loss, Mr. Crispin relates, is a
negative 25% turnabout from its THB7.8 billion profit in 2005.
The bank's shares, which are priced at THB5 in 2006, are now
priced at THB1.8.
Mr. Crispin cites that the bank's board said that the previous
year's losses are due to tightness in its capital-provisioning
rules for non-performing loans, together with the Central Bank's
implementation of the Internal Accounting Standard 39. TMB also
recognized more than THB5 billion in irretrievable loans in the
state-run Thailand Asset Management Corp.
Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders
financial services to all groups of customers. TMB Bank had
total assets of about THB717 billion as at December 31, 2005.
Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.
On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.
Moody's Investor Service gave TMB Bank a 'Ba1' Junior
Subordinated Debt Rating and an 'E+' Bank Financial Strength
Rating.
Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.
THAI-GERMAN PRODUCTS: Shares Rise 37% After 8-Year Lull
-------------------------------------------------------
Trading of Thai-German Products PLC's shares closed at THB1.37
on Thursday on turnover of THB167.67 million. Trading for the
first time in eight years, Thai-German's shares rose 37%,
Nuntawun Polkuamdee of the Bangkok Post reports.
According to the report, Thai-German has three major
shareholders as of April 10, 2007: (1) the Siam City Bank with
29% stake, (2) Wanna Suralertsri with 25%, and (3) Rachata
Leelaphachakul with 11%. Its total paid up capital is THB324.58
million.
Nuntawun Polkuamdee of the Bangkok Post interviewed UOB Kay Hian
Securities analyst Kosin Sripaiboon, who says, "the lack of
market enthusiasm is to be blamed for Thai-German's extended
suspension." Mr. Sripaiboon places the company's fair value at
THB0.63 per share with a price-to-earnings ration of eight
times, and a book value of THB0.70 a share. The Company
reportedly traded at THB1 per share before it was suspended.
Thai-German Products Public Co., Ltd -- http://www.tgpro.co.th/
-- manufactures stainless steel pipe, tube, and sheet in
Thailand under the name "TGPRO" founded by Pracha Leelaprachakul
in 1973.
The company has suffered a series of capital deficits, the
widest being in 2003 with a THB5.31-billion deficit. That and a
series of net losses and the fact that it was operating below
full production capacity, ushered the company into the REHABCO
-- Companies under Rehabilitation -- sector of the Stock
Exchange of Thailand.
In July 2006, the SET reclassified the whole sector and
categorized the company under the "non-performing group."
Companies under the group will retain their listing status and
will be obligated to comply with the SET requirements.
On February 27, 2007, after auditing the company's consolidated
financial statement for the first half period of 2006, Chaovana
Viwatpanachati at Petisevi & Company expressed doubt on the
company's ability to continue as a going concern and its ability
to accomplish the remaining rehabilitation plan.
*********
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. Mark Andre Yapching, Azela Jane Taladua, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara
Eliza Tecarro, Freya Natasha Fernandez, Frauline Abangan, and
Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
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