/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070511.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, May 11, 2007, Vol. 10, No. 93 Headlines A U S T R A L I A ARMOR HOLDINGS: BAE Systems Merger Cues Moody's Ratings' Review BRISBANE WATER: Appoints Patricia Cotterell as Liquidator CAMDEN PLANT: Members' Final Meeting Set for May 14 DREAMSHEETS INTERNATIONAL: Enters Voluntary Liquidation FORTESCUE METALS: Revises Off-Take Deal With Fengli Group HICOM INTERNATIONAL: Placed Under Voluntary Liquidation HICOM SALES: Members Agree on Voluntary Liquidation IMF LTD: To Finance Downer EDI Legal Action J.H.F. PTY: Members Opt to Close Business NEW HOPE: Members' General Meeting Set for June 5 OAKLOG PTY: Members Pass Resolution to Wind Up Firm SILVADAN PTY: Taps Geoffrey McDonald as Liquidator SUMMIT RESOURCES: Paladin Extends AU$1.16 Billion Takeover ZINIFEX: Acquires 95% of Wolfden Resources Inc. C H I N A & H O N G K O N G BEAUTIGUIDE INVESTMENTS: Subject to Hang Hing's Wind-Up Petition BENQ CORP: Chairman Won't Resign Despite Insider Trading Charges BERKELEY, BURKE: Members to Receive Wind-Up Report on June 5 CHINA EASTERN: Singapore Air Denies Share Purchase Report CHINA SOUTHERN: Air France Wants to Code-Share in Chinese Cities CHINGQING CHANGAN: Plans to Raise Up to US$1 Billion in IPO CITIC RESOURCES: To Issue US$1 Bil. Bond to Fund Kazakh Purchase CITIC RESOURCES: S&P Rates Proposed US-Dollar Bond at BB ICBC: Seeks to Open New York Branch to Hasten Global Expansion JIANGXI COPPER: Guixi Smelter to Start Production in Aug. 1 LUCKY REGENT: Members' & Creditors' Meetings Set for May 18 SHIMAO PROPERTY: S&P's BB+ Ratings Stay Amid Share Issue Plans VBA LIMITED: Members' Final Meeting Set for June 5 VEGAS INVESTMENT: Court to Hear Wind-Up Petition on May 30 I N D I A AES CORP: Supreme Court Postpones Hearing on Property Tax Break GENERAL MOTORS: Credit Suisse Maintains Neutral Rating on Shares SAURASHTRA CEMENT: Mary Schroeder Resigns From Board SHYAM TELECOM: Posts INR405.24 Million Net Loss in FY2006-07 SOUTHERN IRON & STEEL: Not Sick Anymore, BIFR Says STATE BANK OF INDIA: Board to Consider Financials on May 12 STATE BANK OF INDIA: Sets Annual General Meeting on June 25 ROYAL & SUN: Policyholders Have Until May 22 to Cancel Insurance STRATOS GLOBAL: Pending CIP Deal Cues Moody's to Hold Ratings I N D O N E S I A ARPENI PRATAMA: Will Pay IDR6 Per Share Dividend on July 18 BANK INTERNASIONAL: Appoints Wong Yuen as New Pres. Commissioner BANK INTERNASIONAL: Shareholders OK IDR253 Billion Cash Dividend BANK NIAGA: Sells 99.96% Stake in Niaga Aset for IDR41.4 Billion DAVOMAS ABADI: No Dividend Payment for 2006 GOODYEAR TIRE: Plans to Offer 22,549,609 Shares of Common Stock INDIKA INTI: Fitch Assigns Final 'B' Rating to Guaranteed Notes J A P A N BANK OF TOKYO-MITSUBISHI: Moody's Lifts Financial Strength to C CHUO MITSUI TRUST: Moody's Lifts Financial Strength to C- From D DAIEI: Plans to Sell its Entire Stakes in Maruetsu FUJI HEAVY: To Pay JPY300,000 Over Defective Part HOKKAIDO: Moody's Lifts Financial Strength Rating to D- HOKURIKU: Moody's Ups Financial Strength Rating to D- KIYO: Moody's Upgrades Financial Strength Rating to D- LIVEDOOR: Court Grants Financing Unit's Liquidation Request MIZUHO FINANCIAL GROUP: Moody's Lifts Units' BFS Ratings NIKKO CORDIAL: Becomes Subsidiary of Citigroup NISHI-NIPPON: Moody's Lifts Financial Strength Rating to D- NOMURA HOLDINGS: To Sell Historic London Office Building SANYO ELECTRIC: To Set Up Investigation Panel for Past Results SANYO ELECTRIC: GE Acquires 97% Stake in SANYO Credit for US$1BB SUMITOMO TRUST & BANKING: Moody's Ups Financial Strength Rating K O R E A BHK INC: Offers KRW1,500 per Share for Common Stock C&C Enterprise: Amended Listing of News Shares on June 15 CHOROKBAEM MEDIA: Converts Convertible Bonds into Common Shares CURON INC: Adjusts Conversion Price of Second Bond to KRW1,080 DAEHAN PULP: Appoints Huh Won as New Chief Executive Officer GENEXEL-SEIN: Final Conversion Price for Bonds is KRW3,875 HANA BANK: Selects Accenture for Management Office Services HANSUNG ENTERPRISE: Kimhae Factory Ready for Operation M A L A Y S I A AMINVESTMENT BANK: Fitch Keeps All Ratings; Outlook Stays Stable ARK RESOURCES: Securities Commission OKs Corporate Reform Plan COGNIS GMBH: Fitch Affirms IDR at B with Stable Outlook COGNIS GMBH: S&P Rates Proposed EUR250 Million Facility at BB-/1 COGNIS GMBH: Moody's Lowers Corporate Family Rating to B2 KUMPULAN BELTON: Posts MYR3.5 Million Net Loss in 4Q 2006 MEMORY TECH: Default Cues RAM to Junk MYR320MM Debt Rating to C3 PUTERA CAPITAL: Posts MYR2.69MM Net Loss in Qtr Ended Feb. 2007 N E W Z E A L A N D A 1 TAXIS: Faces CIR's Wind-Up Petition A&R WHITCOULLS: Earns AU$9.9 Million in Half Year Ended March 3 AIR NEW ZEALAND: Kiwijet Warns Filing of Legal Action BELLE CHILDREN: Subject to CIR's Wind-Up Petition BROKEN YELLOW: Enters Wind-Up Proceedings CASTLE SECURITY: Creditors' Proofs of Debt Due by May 18 CLEAR CHANNEL: In Talks with Equity Group on Amended Merger Deal CLEAR CHANNEL: Units Ink Asset Purchase Deal with GoodRadio.TV CREATIVE EARTH: Liquidator to Receive Claims Until May 18 L L DISTRIBUTORS: Faces Star Personnel's Wind-Up Petition MCKELLAR PROPERTY: Subject to CIR's Wind-Up Petition METROSTYLE LTD: Undergoes Liquidation Proceedings R V FORESTRY: Wind-Up Petition Hearing Set for May 14 VICS PAINTING: Court Taps Whittfield and Finnigan as Liquidators P H I L I P P I N E S APC GROUP: Sycip Gorres Velayo Raises Going Concern Doubt ASIA AMALGAMATED: BDO Alba Romeo Raises Going Concern Doubt BANCO DE ORO: Appoints Dy As Executive Vice President BENGUET CORP: Insolvency Causes Going Concern Doubt CHINA BANKING: To Divest Its Entire Stake in First Sovereign PETPLANS INC.: Trust Fund Seen to Hit PHP6.35 Bil. By 2017 PHILODRILL CORP: Reports Net Loss of PHP175.77 Million for 2006 RIZAL COMMERCIAL: Forecasts PHP2.5 Billion Net Profit in 2007 SAN MIGUEL: Plans on Entering into Nonfood Business UNION BANK: Pays Out PHP1.60 Per Share Dividends UNIWIDE HOLDINGS: 2006 Balance Sheet Upside Down By PHP1.89 Bil. * Philippine Debt Yields Ease on Rating Upgrade Expectations S I N G A P O R E ADVANCED SYSTEMS: 1st Quarter Profit Drops by 53% to SG$492,000 SEA CONTAINERS: Trustee Amends List of Unsecured Creditors Panel SEA CONTAINERS: Wants to Sign US$176 Million Commitment Letter SEA CONTAINERS: Court Okays AP Services as Crisis Managers T H A I L A N D ADVANCE PAINT & CHEMICAL: Elects 2 New Directors for 2007 THANACHART CAPITAL: Elects 4 Directors TMB BANK: Elects Directors & Auditors for 2007 * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ARMOR HOLDINGS: BAE Systems Merger Cues Moody's Ratings' Review --------------------------------------------------------------- Moody's Investors Service placed its ratings of Armor Holdings Inc. (Corporate Family Rating of Ba3) on review for possible upgrade. The review was prompted by the announcement that it has entered into a definitive merger agreement to be acquired by BAE Systems, Inc., a wholly-owned subsidiary of BAE Systems plc (long term rating Baa2, short term rating, Prime-2) for total consideration of US$4.5 billion. The review of Armor's ratings will focus on the probability and nature of support from BAE Systems PLC. Armor's senior secured credit facilities (not rated by Moody's) contain change of control provisions, suggesting a high likelihood that this class of debt will be repaid on completion of the acquisition. The existing subordinated notes also contain change of control provisions. As such, it is also likely that a substantial portion of these notes will be redeemed concurrent with the acquisition. If all notes are redeemed through the change of control offer, the rating will be withdrawn. If any subordinated notes remain outstanding after the conclusion of this offer and BAE provides explicit financial support to those notes, then their ratings could be revised upward to take into account BAE's credit strength. However, if BAE does not provide such support, or if adequate financial information on Armor is not provided post-acquisition, then the ratings would be withdrawn. 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. BRISBANE WATER: Appoints Patricia Cotterell as Liquidator --------------------------------------------------------- The members of Brisbane Water Industrial Products Pty Ltd met on April 23, 2007, and decided to voluntarily wind up the company's operations. Patricia Cotterell was appointed as liquidator. About Brisbane Water Brisbane Water Industrial Products Pty Ltd operates hardware stores. The company is located in New South Wales, Australia. CAMDEN PLANT: Members' Final Meeting Set for May 14 --------------------------------------------------- Camden Plant Hire Pty Limited will hold a final meeting for its members on May 14, 2007, at 11:00 a.m. Michael Richard Heinrichs, the company's liquidator, will present a report about the company's wind-up proceedings and property disposal at the meeting. The Liquidator can be reached at: Michael Richard Heinrichs 108 Railway Parade Woodford, New South Wales 2778 Australia About Camden Plant Camden Plant Hire Pty Limited is involved with the rental and leasing of heavy construction equipments. The company is located in New South Wales, Australia. DREAMSHEETS INTERNATIONAL: Enters Voluntary Liquidation ------------------------------------------------------- On April 27, 2007, the members of Dreamsheets International Pty Limited met and agreed to voluntarily liquidate the company's business. Christopher R. Campbell and David J. F. Lombe were appointed as liquidators. The Liquidators can be reached at: Christopher R. Campbell David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 About Dreamsheets International Located in New South Wales, Australia, Dreamsheets International Pty Limited operates broadwoven fabric mills. FORTESCUE METALS: Revises Off-Take Deal With Fengli Group --------------------------------------------------------- Fortescue Metals Group Ltd has signed a replacement long-term iron ore off-take and investment agreement between Fortescue, its wholly owned subsidiary FMG Chichester Pty Ltd and the Fengli Group Co Ltd. On 12 October 2004, Fengli committed to an off-take arrangement for 4 million tones per annum over a 20-year term which included the making of a prepayment prior to the first delivery of iron ore from Fortescue. In view of developments since October 2004 and the project capital raising in August 2006, the parties have agreed to terminate the original agreement and have concluded a replacement agreement. The key terms of the replacement agreement are: -- Fengli is to take 9% up to a maximum of 4 million tonnes per annum of Fortescue's initial production of up to 45Mta as per the original agreement. The off take obligation commences from first production and rises with ramp up to the 45Mta initial production level. The off-take agreement term is 20 years from first production. The product mix will be based on Fortescue's production plan and priced as per the industry standard of annual price setting with relativity to similar premium iron ore products. -- Fortescue and Fengli have agreed to establish a 50 / 50 marketing JV to sell additional Fortescue iron ore tonnage into China of 8% of expansion tonnages up to a maximum of 4Mta as and when Fortescue is able to provide expansion tones (noting expansion above 45Mta is conditional on various consents & approvals and the first 5Mta of any expansion is committed to Baosteel). The product under this JV will be Fortescue's recently announced product Rocket Fines and the JV steel mill customers must be approved by Fortescue. -- A business plan pursuant to the JV is to be finalised soon and it is agreed that Fengli will make available its new Yangtze River port facilities under construction at Jingjiang, Jiangsu Province, including relevant plant and equipment at advantageous commercial rates to facilitate the marketing and distribution of iron ore to the JV customers. -- Fengli has also agreed to make available to Fortescue premium long term office space within the Shanghai Bund business district. The offices will fully equip Fortescue's marketing effort for 20 years at a nominal rent. The replacement agreement becomes effective on receipt by Fortescue of US$25million being the proceeds for a share placement to Fengli of 1,086,957 FMG shares -- c.A$27.88 per share. As specified in the agreement, Fortescue has received a deposit of US$3.75million and after the US$21.25million balance is paid by end May 7, Fortescue will issue the shares to Fengli. Fortescue is pleased to have expanded upon its original Fengli relationship established back in 2004. Fengli is one of China's largest privately owned metal distributors and is also a manufacturer of steel pipe products. Fengli is adding to its existing port facilities at Zhangjiagang in Jiangsu Province by establishing stockpiling capacity at the nearby Jingjiang area on the Yangtze River. This shipping and product handling facility will be a strategic asset in regards to product delivery "up river" to the steel makers that populate the upper Yangtze River. In recognition, Fortescue is in detailed discussions with Fengli regarding its "in bound" product handling and distribution capability. Fortescue's Commercial Director Russell Scrimshaw who negotiated the new agreement, commented that "the Fengli group is in a strong position in the Jiangsu Province on the Yangtze River industrial region which is recognised as China's most industrialised area. We are delighted to have developed this integrated relationship". Andrew Forrest, Chief Executive Officer of Fortescue, stated "Fengli and Fortescue have grown up together and Fengli is rapidly developing into one of China's foremost integrated metal distributors. Fortescue will continue to work closely with Fengli and others to ensure it optimises the distribution of its products throughout China". Fengli was one of the first company's to sign an off-take deal with FMG, at a time when many market observers doubted FMG would ever proceed with its ambitious Pilbara mining and infrastructure project, Mark Beyer of WA Business News says. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. In 2005, Fortescue's chief executive officer, Andrew Forrest, admitted to a AU$500-million blowout on the cost of port and rail infrastructure in the Pilbara Project because of price hikes for steel, fuel, construction materials, and contract labor. The Company also disclosed that the hampered progress of the Pilbara Project brings in the possibility that the Company may not meet its ore delivery schedule and pushes up costs at resource developments across Western Australia. In May 2005, the Australian Stock Exchange pressured Fortescue to explain matters about the project and to explain how the Company would be able to dispose of its lower grade order for 95% of the price obtained by rivals BHP Billiton and Rio Tinto for their top- quality products. The ASX then referred the matter to the Australian Securities and Investments Commission, which commenced a legal action against the Company. The ASIC alleges that Fortescue is engaged in misleading and deceptive conduct and has failed to comply with its continuous disclosure obligations when it announced various contracts with Chinese entities on August 23 and November 5, 2004. In particular, Fortescue did not disclose that the Chinese parties had not reached a concluded agreement on fundamental aspects of the projects and they had merely agreed that they would in the future jointly develop and agree on the "agreed" matters. The ASIC is seeking civil penalties of up to AU$3 million against Fortescue. * * * Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. In August 2006 Moody's Investors Service assigned a Ba3 rating to approximately US$1.9 billion in senior secured 144A bonds to be issued by FMG Finance Pty Ltd, the financing vehicle of the Fortescue Metal Group. The funding will be used to partially finance the development of the Company's iron ore mine in the Pilbara region of Western Australia as well as an associated rail line and port infrastructure. HICOM INTERNATIONAL: Placed Under Voluntary Liquidation ------------------------------------------------------- On April 23, 2007, the members of Hicom International Pty Ltd agreed to voluntarily wind up the company's operations and Grahame Hill was appointed as liquidator. The Liquidator can be reached at: Grahame Hill c/o Hills Insolvency Services Pty Ltd PO Box 915, Rockdale New South Wales 2216 Australia Telephone:(02) 9599 7945 Facsimile:(02) 9599 7946 About Hicom International Hicom International Pty Ltd provides engineering services. The company is located in New South Wales, Australia. HICOM SALES: Members Agree on Voluntary Liquidation --------------------------------------------------- At an extraordinary general meeting held on April 23, 2007, the members of Hicom Sales Pty Ltd agreed to voluntarily wind up the company's operations. Grahame Hill was appointed as liquidator. The Liquidator can be reached at: Grahame Hill c/o Hills Insolvency Services Pty Ltd PO Box 915, Rockdale New South Wales 2216 Australia Telephone:(02) 9599 7945 Facsimile:(02) 9599 7946 About Hicom Sales Located in New South Wales, Australia, Hicom Sales Pty Ltd is an investor relation company. IMF LTD: To Finance Downer EDI Legal Action ------------------------------------------- IMF Ltd will finance legal action against Downer EDI Ltd brought by shareholders who allege the engineering group's profit forecast for 2005/06 was misleading, The Australian Associated Press reports. Downer delivered an AU$25-million loss in 2005/06 after forecasting an underlying net profit of AU$138 million for the financial year, the report relates. According to AAP, Downer's profit was stung by a one-off AU$199- million cost for delays at the Douglas Sands project, which the company was developing for mineral sands miner Iluka Resources Ltd. IMF said it would fund litigation on behalf of current and former shareholders who purchased Downer shares prior to August 8, 2006, when the annual loss was announced. Law firm Slater & Gordon will be representing the shareholders, AAP adds. About IMF Headquartered in Sydney, Australia, IMF (Australia) Limited -- http://www.imf.com.au/-- is engaged in litigation funding and management, and investigation. The operations of the company are separated into three areas of business: insolvency claims, non-insolvency claims involving single plaintiffs (commercial claims), and non-insolvency group actions (group actions). During the fiscal year ended June 30, 2006, the company had 12 insolvency claims, 12 commercial claims and 10 group actions. IMF's portfolio of funded cases include the Aristocrat case, Sentinel and Mercury Rising claims, QPSX Limited against the telecommunications company Ericsson Australia Pty Ltd and Spatialinfo Pvt Ltd cases against Telstra. As of August 16, 2006, Redsummer Pty Ltd increased its stake in IMF from 7.21% to 15.98%. The Troubled Company Reporter - Asia Pacific, on Jan 30, 2007, listed IMF Australia's bond with a 11.500% coupon and a June 30, 2010 maturity date as distressed. J.H.F. PTY: Members Opt to Close Business ----------------------------------------- On April 27, 2007, the members of J.H.F. Pty Ltd agreed to close the company's business and Kerry James Hall was appointed as liquidator. J.H.F. Pty Ltd is a distributor of construction machineries and equipments. The company is located in New South Wales, Australia. NEW HOPE: Members' General Meeting Set for June 5 ------------------------------------------------- The members of New Hope Enterprises Pty Ltd will have their general meeting on June 5, 2007, at 10:00 a.m. to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Arthur Yip Arthur Yip & Associates Suite 140, Level 3 Regis Towers, 418 Pitt Street Sydney, New South Wales 2000 Australia About New Hope New Hope Enterprises Pty Ltd is involved with miscellaneous business credit institution. The company is located in New South Wales, Australia. OAKLOG PTY: Members Pass Resolution to Wind Up Firm --------------------------------------------------- On April 20, 2007, the members of Oaklog Pty Limited passed a resolution winding up the company's operations and Ian Kellaway was appointed as liquidator. Mr. Kellaway can be reached at: Ian D. Kellaway Minett & Partners Services Pty Limited PO Box A173 Sydney South New South Wales 1235 Australia About Oaklog Pty Oaklog Pty Limited is a special trade contractor. The company is located in New South Wales, Australia. SILVADAN PTY: Taps Geoffrey McDonald as Liquidator -------------------------------------------------- At an extraordinary general meeting held on April 26, 2007, the members of Silvadan Pty Limited resolved to liquidate the company's business and Geoffrey McDonald was appointed as liquidator. The Liquidator can be reached at: Geoffrey McDonald c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia About Silvadan Pty Located in New South Wales, Australia, Silvadan Pty Limited is an investor relation company. SUMMIT RESOURCES: Paladin Extends AU$1.16 Billion Takeover ---------------------------------------------------------- Paladin Resources Ltd has extended its AU$$1.16 billion offer for Summit Resources by one week to May 18, after securing more than two-thirds of the uranium explorer, The Australian Associated Press reports. According to the report, Areva NC has thrown a spanner into the works by acquiring a 10.46% stake in Summit, a move that blocks the compulsory acquisition of the uranium explorer by Paladin, which has secured 65% of Summit. Areva has appealed to the Takeovers Panel to force Summit to present to shareholders a strategic alliance proposal between the two parties as they have entered into an agreement to form a strategic alliance before the deal was scrapped by Summit in favor of a takeover by Paladin, the AAP relates. If Paladin's bid is successful, it will secure full ownership of the large Valhalla/Skal deposit in Northwest Queensland, which is held in joint venture with Summit, the report adds. About Summit Resources Perth, Australia-based Summit Resources Limited -- http://www.summitresources.com.au/-- is engaged in the identification of, and exploration for, base metal and precious metal mineral resources in Australia. In the Mount Isa province of northwest Queensland, it has six wholly owned uranium deposits, which are Andersons, Mirrioola, Watta, Bikini, Tjilpa and Warwai uranium deposits. Under the Mount Isa Uranium Joint Venture, it owns 50% interest in the Valhalla and the Skal uranium deposits. The Isa South project comprises nine contiguous tenement applications covering over 2,140 square kilometers of Proterozoic terrane in the south of Mount Isa. It has commenced drill testing a number of base metal targets in the Isa North tenements. It has interest in six sub-block exploration permit minerals near CopperCo's Mount Kelly copper gold discovery in Mount Isa. During the fiscal year ended June 30, 2006, the company was engaged in the spin-off of its Constance Range iron ore and phosphate assets by de-merging them into subsidiary, Pacific Mines Limited. The company suffered two consecutive net losses of AU$557,625 and AU$636,453 for the years ended June 30, 2006 and 2005, respectively. ZINIFEX: Acquires 95% of Wolfden Resources Inc. ----------------------------------------------- Zinifex Limited's wholly owned subsidiary, Zinifex Canadian Enterprises Inc., has taken up approximately 86 million common shares of Wolfden Resources Inc. pursuant to ZCE's offer to acquire all of the outstanding shares for CAD3.81 in cash per share. The shares acquired represent 95% of the issued and outstanding shares. ZCE will pay for all shares taken up today on or before 11 May 2007 in Toronto. As ZCE has acquired over 90% of the outstanding shares pursuant to the offer, it intends to acquire the Shares that remain outstanding pursuant to a compulsory acquisition as permitted by the Business Corporations Act (Ontario). About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter - Asia Pacific reported on Aug. 9, 2006, that Fitch Ratings assigned Zinifex a Long-term foreign currency Issuer Default Rating of 'BB+' with a Stable Outlook. According to Fitch, the rating is unaffected by Zinifex's announcement of a proposed transaction with Belgium-based specialty metals group Umicore to merge their respective zinc smelting and alloying businesses, a Dec. 14, 2006, TCR-AP report noted. ================================ C H I N A & H O N G K O N G ================================ BEAUTIGUIDE INVESTMENTS: Subject to Hang Hing's Wind-Up Petition ---------------------------------------------------------------- On April 11, 2007, Hang Hing Fuel Oil Company Limited filed an application to wind up the operations of Beautiguide Investments Limited. The petition will be heard before the High Court of Hong Kong on June 13, 2007, at 9:30 a.m. Hang Hing's solicitors are: Liau, Ho & Chan c/o Hang Hing Fuel Oil Company Limited United Chinese Bank Building, 6th Floor 31-37 Des Voeux Road Central, Hong Kong BENQ CORP: Chairman Won't Resign Despite Insider Trading Charges ---------------------------------------------------------------- BenQ Corp. Chairman K.Y. Lee won't resign and will continue to oversee the company's daily operations despite being charged with insider trading and money laundering, China Post relates, citing the company's spokeswoman, Daisy Lee, as saying. According to reports, the Taoyuan District Prosecutors Office said on Wednesday that Chairman Lee, along with President Sheaffer Lee and Chief Financial Officer Eric Yu were indicted for insider trading, money laundering, embezzlement, stock manipulation, and making false entries in public documents. K.Y. Lee is facing up to 10 years in prison and a fine of up to NT$500 million if found guilty, the Post says. However, Jerry Wang, BenQ's executive vice president, rejected the charges and told Bloomberg News in a phone interview that the executives have never engaged in illegal practices. BenQ also issued a statement saying it was "deeply shocked, baffled and finds the indictments unacceptable." According to the prosecutors, BenQ started a Malaysian unit, Creo Venture Corp., in 2002 as a proxy to trade employee bonus shares, and the three executives used some of the proceeds from trading in the stock to pay for income taxes, Chinmei Sung of the China Post writes. BenQ executives also sold shares of the employee bonus pool between January and March 2006 before announcing a record loss stemming from the Siemens handset unit, the prosecutors said, adding that the executives then bought back stock after the share price fell. Creo, according to the prosecutors, held 25.9 million BenQ shares as of March 20, 2006, making it the ninth-largest shareholder of BenQ. EE Times relates that prosecutors are trying to prove the executives sold stock in the spring of 2006, shortly before they announced larger than expected quarterly losses of about US$176 million from the acquisition of a mobile phone unit from Germany's Siemens Group. EE Times notes the company spent nearly US$1 billion trying to turn around the unit, but failed. It went bankrupt and is now in liquidation. Mike Clendenin, writing for EE Times, says that prosecutors are accusing BenQ executives of using their insider's knowledge to benefit from the share sale. One report, according to Mr. Clendenin put the profit of the share sale at about US$7 million. The executives then allegedly moved the cash to an offshore bank account in Malaysia, eventually funneling it back to Taipei. After news of huge losses in the mobile unit sent BenQ's stock south, the money was allegedly used to buy back the shares. BenQ denied the claim. According to the company, the transactions were part of a scheme to exercise stock options for overseas employees who could not legally trade shares in Taiwan, EE Times relates. BenQ also said in a statement that the market anticipated the huge losses announced in the spring of 2006. "It was publicly known that there must be losses in the Company's consolidated revenues in the early stage after the Siemens mobile device business acquisition. It was no secret. The management team of the Company certainly did not use such information to engage in insider trading to gain profits." The Troubled Company Reporter - Asia Pacific on April 13, reported that Chairman Lee and President Lee His-hua were taken in by authorities for questioning and were released after paying NT$15 million and NT$10 million bail, respectively. * * * Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing, and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handsets, camera phones, and other products. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after the company failed to secure a buyer by the Dec. 31, 2006 deadline. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. BERKELEY, BURKE: Members to Receive Wind-Up Report on June 5 ------------------------------------------------------------ The members of Berkeley, Burke (Financial Planning) Limited will meet on June 5, 2007, at 10:00 a.m., to hear the report about the company's wind-up proceedings and property disposal. The meeting will take place at 905 Silvercord, Tower 2 at 30 Canton Road, Tsimshatsui in Kowloon, Hong Kong. CHINA EASTERN: Singapore Air Denies Share Purchase Report --------------------------------------------------------- After months of negotiation, Singapore Airlines has not yet decided whether it will buy a stake in China Eastern Airlines, Reuters reports. According to Reuters, a Singapore Airline's spokesman said: "The airlines are talking about possible cooperation, but there have been no decisions to pursue any other relationship at this point in time." The statement was made in response to a China Securities Journal report that the two airlines are in final talks to sell a strategic stake of China Eastern to Singapore Air, and that the two airlines had started to negotiate the price of the stake sale. The Troubled Company Reporter - Asia Pacific on July 20, 2006, reported that China Eastern said it plans to sell a majority stake to Singapore Airlines, in hopes of making the latter a strategic investor. China Eastern's Chairman Li Fenghua said that it is considering to sell at least 20% of its stake to an investor to raise funds and help improve management expertise, the TCR-AP reported on April 13, 2006. * * * Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com/-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The outlook on the IDRs is stable. CHINA SOUTHERN: Air France Wants to Code-Share in Chinese Cities ---------------------------------------------------------------- Air France is in talks with China Southern Airlines Co. to extend its reach in China by establishing code-share connections via Guangzhou and Beijing to 14 Chinese cities by the end of the year, The Wall Street Journal reports. According to the Journal, Air France-KLM's chairman and chief executive officer, Jean-Cyril Spinetta, said there are 14 cities where his company believes there's a real market potential. The cities include Wuhan, Dalian, Nanjing, Kunming and Changchun, Mr. Spinetta told Jason Leow, a reporter for The Wall Street Journal. Mr. Leow notes that code sharing helps one airline get connecting services from another carrier, and passengers often can accrue mileage flying with both carriers. Through code sharing, Air France would be able to sell its passengers tickets from Europe to more points in China, thereby expanding its national network. The Journal tried but failed to reach China Southern for comment. * * * Headquartered in Guangzhou, China, China Southern Airlines Co Ltd. -- http://www.cs-air.com/-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. CHINGQING CHANGAN: Plans to Raise Up to US$1 Billion in IPO ----------------------------------------------------------- Chongqing Changan Automobile Co Ltd plans to raise US$500 million to US$1 billion in an initial public offering by the end of this year, probably in Hong Kong, Reuters says, citing a person familiar with the matter. Citigroup was hired to handle the offering, which is still in the early planning stages, the source told Reuters. * * * Chongqing, China-based Chongqing Changan Automobile Company Limited is principally engaged in the development, manufacture and sale of mini passenger vehicles, minivans, commercial vehicles and passenger cars. The company offers its products under seven brands: mini passenger vehicles are under the brand Changan Star; minivans are under the brand Changan, and passenger cars are under the brands Alto, Lingyang, Fiesta and Mondeo. It also manufactures and distributes various engines, under the brand Jiangling. During the year ended December 31, 2005, the company manufactured 489,368 vehicles and sold 474,625 vehicles, accounting for approximately 8.24% of the domestic market. Chongqing Changan Automobile has formed partnership with Suzuki Motor Corporation and Ford Motor Company. The company has 12 major subsidiaries/associates. The Troubled Company Reporter - Asia Pacific reported that Fitch Rating assigned, on September 20, 2006, a long-term foreign and local currency Issuer Default ratings of BB to Chongqing Changan Automobile Co. Ltd. The rating outlook is stable. CITIC RESOURCES: To Issue US$1 Bil. Bond to Fund Kazakh Purchase ---------------------------------------------------------------- Citic Resources expects to raise as much as US$1 billion from the sale of seven-year bonds to finance its purchase of oil and gas assets in Kazakhstan from parent Citic Group, AFX News Limited, says, citing a report from the South China Morning Post. The company also plans to use its internal cash resources to settle the purchase, the report adds. Citic Resources, according to AFX News, has so far paid a US$200 million deposit for its proposed acquisition of the Kazakhstan assets. As reported by the Troubled Company Reporter - Asia Pacific on May 4, 2007, Citic Resources decided to exercise its right to buy half of CITIC Group's oil assets in Kazakhstan worth US$950 million. In addition, the company will also purchase an oil block in resource-rich Liaoning province. CITIC Group bought the Kazakhstan oil assets from Canada's Nations Energy Company Ltd for US$1.91 billion, the TCR-AP said on Jan. 4, 2007. Citing the company's statement, AFX relates that the proposed bond will be issued by CITIC Resources Finance (2007) Ltd, adding that details of the issue has yet to be determined. After the purchase, CITIC Group will retain ownership of the remaining 50% in the Kazakhstan assets. The parent's stake may eventually be sold to state-owned JSC National Company KazMunaiGaz, which holds the option to acquire the stake. In the event the option is exercised, CITIC Resources and JSC National will be jointly running the assets, where JSC National will be awarded preferential dividends of US$16.20 million in the event the assets offer less than US$32.40 million in dividends in any year, the report adds. About CITIC Group State-owned conglomerate CITIC Group -- formerly China International Trust & Investment Corporation -- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. On Feb. 13, 2007, Standard & Poor's Ratings Services removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. About CITIC Resources Incorporated in Bermuda in 1997, CITIC Resources has its shares listed on the Hong Kong Stock Exchange. The company positions itself as an integrated provider of key commodities and strategic natural resources with particular focus in oil business. The principal activities of the company and its subsidiaries are in the fields of oil, aluminium, coal, import and export of commodities, manganese and iron ore. CITIC Group (formerly China International Trust and Investment Corporation) became the majority controlling shareholder of the Company in March 2004, indirectly holding interest in the Company of over 54%. Standard & Poor's Ratings Services on May 9, 2007, assigned its BB long-term corporate credit rating to CITIC Resources Holdings Ltd. The outlook is developing. At the same time, it issued its BB issue rating to a proposed intermediate-term U.S. dollar benchmark issue of senior unsecured notes by Citic Resources Finance (2007) Ltd. CITIC RESOURCES: S&P Rates Proposed US-Dollar Bond at BB -------------------------------------------------------- Standard & Poor's Ratings Services on May 9, 2007, assigned its BB long-term corporate credit rating to CITIC Resources Holdings Ltd. The outlook is developing. At the same time, S&P issued its BB issue rating to a proposed intermediate-term U.S. dollar benchmark issue of senior unsecured notes by Citic Resources Finance (2007) Ltd. CRH will fully and unconditionally guarantee the proposed notes. CRH will use the net proceeds from the proposed bond to fund the acquisition of 50% of CITIC Canada Energy Ltd. (CCEL), which is a wholly owned subsidiary of CRH's parent CITIC Group (BB+/Developing/B). As a result, CRH will effectively control 50% of the beneficial interests in Canada-based oil company Nations Energy Co. Ltd. (Nations) that are currently held by CCEL. "The rating on CRH reflects its standalone credit profile and the benefits it derives from being strategically important to the wider CITIC Group," said Standard & Poor's credit analyst Lawrence Lu. The rating is a notch lower than that on CITIC Group, as CRH is not yet a core part of the conglomerate, given its current stage of development. CRH is an investment holding company in Hong Kong with a diverse business portfolio in the natural resources and energy industries. It has limited experience in upstream oil operations, as a new entrant, and a concentration of reserves and production in Kazakhstan. These oil business sensitivities are counterbalanced by Nations' medium-sized proven reserves base of 363.8 million barrels and long reserve life of about 24 years. Operating risks in Kazakhstan's oil sector should be tempered by its potential project partnership with JSC National Company KazMunaiGas. CRH's cash flow and profitability, as well as those of Nations, are highly affected by volatility in crude prices. In addition, the company has aggressive debt leverage -- the proposed bond issuance will triple its debt level -- and this is a constraint on its standalone rating. The Chinese government's implicit support is a factor in the credit rating on CITIC Group. Over the long run, Standard & Poor's expects CRH to focus on oil operations. ICBC: Seeks to Open New York Branch to Hasten Global Expansion -------------------------------------------------------------- The Industrial & Commercial Bank of China Ltd applied to open its first branch in New York as part of a plan to accelerate overseas expansion and become a global player, Shanghai Daily reports. The bank, which currently owns a representative office in New York, is awaiting approval to upgrade its office to a branch and offer lending and deposit services, the US Federal Reserve said on its Web site. Pan Gongsheng, board secretary of the ICBC, said that it plans to add more outlets in countries with "strong trade and economic ties with China," the Daily says. * * * The Industrial and Commercial Bank of China -- http://www.icbc.com.cn/-- is the largest state-owned commercial bank, and is authorized by the State Council and the People's Bank of China. ICBC conducts operations across China as well as in major international financial centers. On Sept. 18, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed ICBC's Individual D/E rating. Moody's Investors Service upgraded on December 6, 2006, to D- from E+ the Bank Financial Strength Rating for Industrial and Commercial Bank of China. The D- BFSR has a stable outlook. The upgrade concludes a review of ICBC's BFSR started on August 9, 2006. JIANGXI COPPER: Guixi Smelter to Start Production in Aug. 1 ----------------------------------------------------------- A senior official of Jiangxi Copper Co. told Mining Journal that the company will start production at its new smelter in Guixi city, in eastern Jiangxi province, on August 1. The new facility, with annual capacity of 300,000 tons, is expected to increase Jiangxi Copper's production to 550,000 tons this year, Xu Fuguang, deputy chief engineer at Jiangxi Copper Group, told the Journal by phone. The smelter, under construction since the end of 2005, cost CNY3.5 billion to build, Mr. Xu added. The Troubled Company Reporter - Asia Pacific on April 23, 2007, reported that on completion of the plant, the company's capacity would reach 700,000 tons a year, according to Chairman Li Yi Huang. * * * Jiangxi Copper is China's largest copper producer. In 2005, it produced 422 thousand tons of copper, about 16.8% of the total national output. The Company also realized a turnover growth rate of 25.5% and net profit growth rate of 61.9% in 2005. Jiangxi Copper is a constituent of the Xinhua/ FTSE China 200 Index. On July 18, 2006, Xinhua Far East China Ratings commented that the likelihood of downward surprises on the issuer rating for Jiangxi Copper Co., Ltd. was increasing and changed the Company's rating outlook to negative from stable. Its issuer credit rating remains BB+. LUCKY REGENT: Members' & Creditors' Meetings Set for May 18 ----------------------------------------------------------- The members and creditors of Lucky Regent International Limited will have a meeting on May 18, 2007, at 2:00 p.m. and 2:30 p.m., respectively, at 1401, Level 14, Tower 1 of Admiralty Centre at 18 Harcourt Road in Hong Kong. At the meeting, the members will be asked to receive the resignation of Kelvin Flynn as the company's liquidator and appoint Jacqueline Walsh as his replacement. SHIMAO PROPERTY: S&P's BB+ Ratings Stay Amid Share Issue Plans -------------------------------------------------------------- On May 9, 2007, the Standard & Poor's Ratings Services said that its ratings on Shimao Property Holdings Ltd. (BB+/Stable/--) are unaffected by the company's recent announcement that it has issued HK$3.856 billion in new shares. The share issue provides the financial flexibility for Shimao to develop new and existing projects, and for new investments and acquisitions. It further demonstrates the company's commitment to maintain a gearing ratio of net debt to equity at below 40%. This stood at 19% at the end of 2006. However, the company has expanded rapidly over the past year. Since May 2006, the company has added 9.83 million square meters (sqm) in total planned gross floor area, and its land reserves have doubled to 20.16 million square meter. Execution risks and capital requirements will remain high. Standard & Poor's believes Shimao may draw down further debt to fund such growth, but it is likely to be maintained within the company's target gearing level. While revenue streams from property sales and pre-sales were limited to eight projects last year, the company is expected to generate more revenue from a higher number of project completions and increasing recurring income from good quality investment properties and hotel operations. * * * 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. VBA LIMITED: Members' Final Meeting Set for June 5 -------------------------------------------------- A final meeting will be held for the members of VBA Limited on June 5, 2007, at 10:00 a.m., in 2001 Central Plaza at 18 Harbour Road in Wanchai, Hong Kong. At the meeting, the members will receive a report about the company's wind-up proceedings and property disposal. VEGAS INVESTMENT: Court to Hear Wind-Up Petition on May 30 ---------------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Vegas Investment Limited on May 30, 2007, at 9:30 a.m. The petition was filed by Guangzhou Finance Company Limited on March 22, 2007. Guangzhou Finance's solicitor is: Chan, Lau & Wai Asia Standard Tower, 8th Floor Nos. 59-65 Queen's Road Central, Hong Kong ========= I N D I A ========= AES CORP: Supreme Court Postpones Hearing on Property Tax Break --------------------------------------------------------------- Thomas J. Prohaska at Buffalo News reports that the U.S. State Supreme Court Justice Richard C. Kloch Sr. has postponed a hearing on the multiple lawsuits over the AES Corp. property tax break. The Niagara county, the Town of Somerset and the Barker Central School District have filed a lawsuit against AES and the Industrial Development Agency over the "payment-in-lieu-of-taxes deal," which will cost the taxing entities US$43.4 million over 12 years, compared with what they would collect from AES if the firm's Lake Road power plant continued to be taxed at the current rate, Mr. Prohaska at Buffalo News relates. If one assumes a 3% yearly tax raise, the lost revenue tops US$90 million, Mr. Prohaska at Buffalo News says, citing those who are against the deal. Buffalo News' Mr. Prohaska says that the hearing was postponed indefinitely. Attorneys in the case say that the proceedings may resume in August or later. Judge Kloch is involved in a jury trial in a civil case that might take six weeks. The judge and the attorneys have also scheduled summer vacation, Buffalo News' Mr. Prohaska notes, citing Niagara County Attorney Claude A. Joerg. Meanwhile, the town of Somerset attorney Edwin J. Shoemaker commented to Buffalo News' Mr. Prohaska, "It would certainly not be before mid-August. Right now it looks like this thing might not be decided until early next year. [Kloch] won't decide until he has a hearing, and he won't tell you when the hearing is." Buffalo News' Mr. Prohaska relates that the hearing for the AES case was expected to take at least two weeks, as Judge Kloch looked for information on whether the Industrial Development Agency breached its procedural rules in October 2006 when it granted a 12-year tax break to AES. AES is Niagara's biggest property taxpayer, according to Buffalo News' Mr. Prohaska. Buffalo News' Mr. Prohaska notes that AES will still be paying US$192.6 million over the life of the deal. But its yearly bill will decrease to US$17.3 million in 2008 and US$15.8 million by 2011, from US$19.6 million in this year. AES' legal representatives are trying to get Judge Kloch to cancel subpoenas the complainants issued for company documents and this will have to be decided before the hearing, according to Buffalo News' Mr. Prohaska. Judge Kloch said in a public statement that he dismissed all segments of the lawsuits that asserted the Industrial Development Agency didn't have the authority "to grant a tax break" to a firm that didn't offer to make new jobs or investment. Buffalo News' Mr. Prohaska states that Judge Kloch had encouraged both parties to reach an out-of-court settlement, which seemed to fail. AES offered to pay the taxing entities an extra US$1.5 million, which the complainants rejected. "We haven't had any response from them, other than they didn't like our last [offer]," AES Somerset President Kevin R. Pierce told Buffalo News' Mr. Prohaska. AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia, and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has presence in India, China, and Sri Lanka. * * * On Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. GENERAL MOTORS: Credit Suisse Maintains Neutral Rating on Shares ---------------------------------------------------------------- Credit Suisse analyst C. Ceraso has kept his "neutral" rating on General Motors Corp.'s shares, Newratings.com reports. Newratings.com relates that the 12-month target price for General Motors' shares was decreased to US$29 from us$33. Mr. Ceraso said in a research note published on May 4 that General Motors' first quarter 2007 earnings per share were "significantly short of the estimates and the consensus." Mr. Ceraso told Newratings.com that the underperformance was due to its poor North American results that resulted from: -- increasing raw material costs, -- a weak US sales environment, and -- high costs related to the expensive new products. The earnings per share estimate for 2007 was decreased to US$3.04 from US$3.82, while estimate for 2008 was reduced to US$3.51 from US$4.10. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * In December 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. In November 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. SAURASHTRA CEMENT: Mary Schroeder Resigns From Board ---------------------------------------------------- Saurashtra Cement Ltd's board of directors on April 30, 2007, accepted the resignation of Mary Schroeder, Nominee Director of ADM Maculus Fund II L.P., from the board, the company informed the Bombay Stock Exchange in a regulatory filing. The board appointed Chetan Jain, Nominee Director of IDM Ltd., as director on the company's board. The flagship company of The Mehta Group, Saurashtra Cement Ltd. -- http://www.mehtagroup.com/scement.htm-- manufactures and exports cement including Ordinary Portland Cement, Pozzolana Portland Cement, Sulphate Resistant Cement and Portland Slag Cement. SCL markets cement under the brand name "HATHI CEMENT". The company also exports clinker. On Dec. 9, 2006, Credit Rating Information Services of India Ltd changed the outstanding rating of Saurashtra Cement's INR477.6-million Non-Convertible Debenture Issue from 'D' to 'Not Meaningful.' The revision followed the company's registration in the Board of Industrial and Financial Reconstruction as a Sick Industrial Company pursuant to the SIC (SP) Act, 1985. Saurashtra Cement is currently restructuring its debts. Its proposal for restructuring under the Corporate Debt Restructuring Mechanism was approved through the letters issued by CDR Cell on Dec. 26, 2005, and Feb. 17, 2006. SHYAM TELECOM: Posts INR405.24 Million Net Loss in FY2006-07 ------------------------------------------------------------ Shyam Telecom Limited reported a net loss of INR405.24 million on revenues of INR3.26 billion in the financial year ended March 31, 2007. In the previous fiscal year, the company booked a net income of INR8.77 million on revenues of INR30.39 million. The latest financial figures have been computed post amalgamation and therefore are not comparable with the figures shown under the prior periods, the company points out. Pursuant to a Scheme of Arrangement, which became effective on May 19, 2006, Shyam Telecom Manufacturing Ltd. has been amalgamated with Shyam Telecom Ltd. For the year ended March 31, 2007, the company booked expenditures of INR3.54 billion, bringing an operating loss of INR276.95 million. The company posted interest charges of INR51.9 million, depreciation of INR29.85 million and taxes of INR46.55 million. A full-text copy of the company's financial results for the year ended March 31, 2007, is available for free at: http://ResearchArchives.com/t/s?1eda For the quarter ended March 31, 2007, the company posted a net profit of INR6.04 million on revenues totaling INR525.5 million. Expenditures totaled INR482.98 million resulting in an operating profit of INR42.52 million. A full-text copy of the company's financial results for the quarter ended March 31, 2007, is available for free at: http://ResearchArchives.com/t/s?1edb New Delhi, India-based Shyam Telecom Limited -- http://www.shyamtelecom.com/index.html-- and its subsidiaries' operations relate to investments, providing telecommunication and information technology services. The telecom products and services segment comprise of manufacturing and services in the related area. The turnkey projects and trading services segment includes the turnkey projects and trading in telecom products. The investment segment includes investments in the subsidiaries, which are dealing in telecommunication sectors. The software products and services segment includes the services in the area, including software and information technology related and information technology enabled services. It also offers Internet-related products, including data on wire, data on air and data on cable. The Troubled Company Reporter - Asia Pacific reported on April 20, 2007, that the company has a US$22.80 million equity deficit. SOUTHERN IRON & STEEL: Not Sick Anymore, BIFR Says -------------------------------------------------- India's Board for Industrial and Financial Reconstruction, by order dated April 25, 2007, de-registered Southern Iron & Steel Company Ltd from the purview of the Sick Industrial Companies (Special Provisions) Act, 1985 with immediate effect, a filing with the Bombay Stock Exchange reveals. Hence, the Company is no more a Sick Industrial Company under the Sick Industrial Companies (Special Provisions) Act, 1985. As previously reported in the Troubled Company Reporter - Asia Pacific, the company's net profit increased 33% to INR550.48 million for the year ended March 31, 2007, from the INR412.67 million gained in the prior year. Headquartered in Salem, India, Southern Iron & Steel Company Limited is engaged in the business of manufacturing pig iron, billets, bars and rods. The Company produces these products at its integrated steel plant located in the district of Salem, Tamil Nadu. The plant has a capacity of 0.3 metric tons per annum. Southern Iron and Steel Company Ltd. also has plants for the generation of power and production of oxygen. On July 20, 2006, CRISIL Ratings reaffirmed the outstanding 'D' rating on the INR280 million Non-Convertible portion of the Optionally Convertible Debenture Issue of Southern Iron & Steel indicating that the instrument continues in default. The original instrument has been restructured and is due for redemption in two installments on May 17, 2007, and May 17, 2008. STATE BANK OF INDIA: Board to Consider Financials on May 12 ----------------------------------------------------------- The State Bank of India's central board will hold a meeting on May 12, 2007, to take on record the audited working results of the bank for the year ended on March 31, 2007. For the year ended March 31, 2007, SBI posted a net profit of INR44.07 billion on revenues totaling INR431.84 billion. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services on March 26, 2007, assigned ratings to State Bank of India's proposed debt issues under its US$5 billion medium-term note program. Standard & Poor's rated SBI's proposed senior unsecured notes 'BBB-', its lower Tier II subordinated notes 'BB+', and its upper Tier II subordinated notes and hybrid Tier I notes 'BB'. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime Financial Strength Rating in June 2006. STATE BANK OF INDIA: Sets Annual General Meeting on June 25 ----------------------------------------------------------- The State Bank of India's shareholders will hold their 52nd Annual General Meeting on June 25, 2007, the bank informed the Bombay Stock Exchange in a regulatory filing. Among others, the shareholders will receive the report of the bank's central board, the bank's balance sheet and profit and loss account made up to the March 31, 2007, and the related auditors report. In a separate filing, the bank disclosed that its Register of Members & Share Transfer Books will be closed from June 15, 2007, to June 25, 2007, for the purpose of payment of dividend, if any. The bank's board will consider declaration of a dividend at a meeting on May 12. Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services on March 26, 2007, assigned ratings to State Bank of India's proposed debt issues under its US$5 billion medium-term note program. Standard & Poor's rated SBI's proposed senior unsecured notes 'BBB-', its lower Tier II subordinated notes 'BB+', and its upper Tier II subordinated notes and hybrid Tier I notes 'BB'. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime Financial Strength Rating in June 2006. ROYAL & SUN: Policyholders Have Until May 22 to Cancel Insurance ---------------------------------------------------------------- Sun Alliance Insurance Overseas Limited has transferred all its rights, obligations and liabilities under insurance policies written by it to Royal & Sun Alliance Insurance plc. The transfer, sanctioned by the High Court of Justice in England and Wales, became effective on March 31. Policyholders whose insurance policies have been transferred to Royal & Sun Alliance may cancel their policy, if they want to do so, on or before May 22. In the event of cancellation, Royal & Sun Alliance shall refund to such policyholders the proportion of any prepaid premium, which relates to the unexpired term of their policy. The company can be reached at: Royal & Sun Alliance Insurance plc St. Mark's Court Chart Way Horsham West Sussex RH12 1XL England About Royal & Sun Alliance Headquartered in London, United Kingdom, Royal & Sun Alliance Insurance Group Plc -- http://www.royalsunalliance.com/-- provides risk management and insurance solutions through two divisions focusing on property & casualty business and personal insurance. The group consists of three regions -- U.K., Scandinavia and International. The group operates in India, Ireland, Italy, Latvia, Lithuania, Malaysia, Mexico, Netherland Antilles, the Netherlands, Norway, Oman, Saudi Arabia, Singapore, Sweden, UAE, Uruguay, U.S.A. and Venezuela, among others. * * * A.M. Best Co. has placed the financial strength ratings of C++ (Marginal) and the issuer credit ratings of "b" of the Royal & SunAlliance U.S.A. Insurance Pool and Royal Surplus Lines Insurance Company under review with developing implications pending the completion of the proposed sale of these operations to Arrowpoint Capital, a new company formed by the existing management team of these operations. All the above companies are domiciled in Wilmington, Delaware. R&SAUS and RSLIC are U.S. subsidiaries of Royal & Sun Alliance Insurance Group plc (London, England). Standard & Poor's Ratings Services lowered its counterparty credit and insurer financial strength ratings on Royal & Sun Alliance Insurance Group PLC's U.S. insurance operations (RSA USA) to 'BB' from 'BB+'. S&P said the outlook remains negative. At the same time, the ratings were withdrawn at the request of the companies' management. STRATOS GLOBAL: Pending CIP Deal Cues Moody's to Hold Ratings ------------------------------------------------------------- Moody's Investors Service confirmed Stratos Global Corporation's B1 corporate family, Ba2 senior secured and B3 senior unsecured ratings and lowered the company's speculative grade liquidity rating to SGL-4 from SGL-3. The outlook is negative. The long term ratings reflect a B1 probability of default and loss-given default assessments of LGD 2, 24% on the senior secured debt and LGD 5, 77% on the senior unsecured notes. The rating action follows Moody's review of the pending transaction in which CIP Canada Investment Inc plans to acquire Stratos with indirect funding from a subsidiary of Inmarsat plc. Inmarsat will have a call option to acquire Stratos from CIP Canada beginning in April 2009, prior to which time Stratos will be controlled by an independent trust and expected to retain its existing debt capital structure. The ratings confirmation reflects Moody's belief that Inmarsat (Ba2/ Negative) is likely to exercise its call option once it is able to do so in 2009 and that Stratos' operating prospects and debt capital is unlikely to be negatively impacted by the transaction in the interim period. The rating also considers the reduction in risk associated with the renewal of the distribution agreement in 2009 and Moody's expectation that Stratos is likely to improve its cash flow generation through the next couple of years, which may reduce its adjusted leverage ratio towards 4.3x by the end of 2008 and produce free cash flow to adjusted debt of roughly 3% in that year. The negative outlook considers Moody's view that Stratos' key credit metrics position the company weakly within the B1 rating category and risks exist to the continued improvement in operating performance required to sustain the current rating. Specifically, while the intensely competitive pricing environment which persisted through much of 2005 and the first half of 2006 has shown signs of stabilizing, the potential for future results to again become volatile remains possible, in Moody's opinion. Should a shortfall to Moody's current expectations occur, Stratos' rating is likely to be lowered. Additionally, the negative outlook and SGL-4 liquidity rating signal Moody's view that Stratos' liquidity is weak. While the company has sufficient cash and operating lines to cover modest expected cash consumption through the next year, Moody's believes there is an elevated possibility that the company will not be able to maintain compliance with financial maintenance covenants through the 12 month horizon of the SGL rating. Downgrades: Issuer: Stratos Global Corporation * Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 * Senior Secured Bank Credit Facility, Downgraded to 24 - LGD2 from 23 - LGD2 Outlook Actions: Issuer: Stratos Global Corporation * Outlook, Changed To Negative From Rating Under Review Confirmations: Issuer: Stratos Global Corporation * Probability of Default Rating, Confirmed at B1 * Corporate Family Rating, Confirmed at B1 * Senior Secured Bank Credit Facility, Confirmed at Ba2 * Senior Unsecured Regular Bond/Debenture, Confirmed at B3 Stratos Global Corporation -- http://www.stratosglobal.com/-- is a provider of a range of advanced mobile and fixed-site remote telecommunications solutions for users operating beyond the reach of traditional networks. The Company serves the voice and high-speed data connectivity requirements of a diverse array of markets, including government, military, energy, industrial, maritime, aeronautical, enterprise, media and recreational users throughout the world. Stratos operates in two segments: Mobile Satellite Services, which provides mobile telecommunications services, primarily over the Inmarsat plc satellite system, and Broadband Services (Broadband), which provides very small aperture terminal (VSAT) services, sourced on a wholesale basis from a number of the fixed satellite system operators. The company has offices in Mumbai, India, Brazil, and Germany. ================= I N D O N E S I A ================= ARPENI PRATAMA: Will Pay IDR6 Per Share Dividend on July 18 ----------------------------------------------------------- PT Arpeni Pratama Ocean Line will pay IDR6 per share dividend to shareholders of record on July 11, 2007, for the fiscal year 2006 dividend on July 18, 2007, Reuters reports. About Arpeni Pratama PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is a marine shipping company. The company's activities include bulk and liquid transportation services. Arpeni operates a fleet of general-purpose specialist, such as their tweendecker MV Alas, which is designed to transport, dry cargoes such as plywood and agricultural products. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 2, 2006, Fitch Ratings assigned a final rating of "BB-" to the US$160 million guaranteed notes due 2013 issued by Arpeni Pratama Ocean Line Investment B.V. and guaranteed by PT Arpeni Pratama Ocean Line Tbk -- Arpeni, rated Long-term Foreign and Local Currency Issuer Default 'BB-'/Stable -- and its subsidiaries. This follows the completion of the notes issue and receipt of documents conforming to information already received. The notes are secured by first priority pledges of capital stock of Arpeni's equity interest in most of its subsidiaries. The ratings are not constrained by the "BB-" Country Ceiling of the Republic of Indonesia. According to another TCR-AP report on April 24, 2006, Standard & Poor's Ratings Services assigned its B+ corporate credit rating to PT Arpeni. The outlook is stable. At the same time, Standard & Poor's assigned its 'B+' rating to the proposed US$160 million seven-year senior unsecured notes to be issued by the company. The company intends to use a part of the net proceeds -- about US$93 million -- for refinancing existing debt, and the balance for capital expenditure and vessel financing. BANK INTERNASIONAL: Appoints Wong Yuen as New Pres. Commissioner ---------------------------------------------------------------- PT Bank Internasional Indonesia Tbk's extraordinary general meeting of shareholders resulted to the changes in the membership of the Board of Commissioners and Board of Directors. Bank Internasional's shareholders approved the resignation of President Commissioner Peter Seah Lim Huat, Commissioner Yong Kook Oh and Independent Commissioner Pradjoto. The meeting also resulted to the appointment of Ernest Wong Yuen Weng, former Commissioner of BII, to be President Commissioner as well as Woo Shick Lee as a new member of BOC. The BOC comprises: Ernest Wong Yuen Weng President Commissioner Thomas Patrick Sodano Commissioner Ingyu Choi Commissioner Woo Shick Lee Commissioner Putu Antara Independent Commissioner Kuo How Nam Independent Commissioner Umar Juoro Independent Commissioner Taswin Zakaria Independent Commissioner For the Board of Directors, shareholders approved the resignation of Director Rudy N. Hamdani and appointed Rita Mas'Oen as new member of BOD. The BOD comprises: Henry Ho Hon Cheong President Director Armand B. Arief Deputy President Director Sukatmo Padmosukarso Director Rita Mas'Oen Director Dira K. Mochtar Director Prem Kumar Director Fransiska Oei Director Satinder Pal Singh Ahluwalia Director "We would like to thank the President Commissioner as well as the members of the BOC and BOD, who have resigned, for their dedication and contribution. They have greatly contributed in expanding BII's businesses as part of our effort to be Indonesia's best bank, providing world class standards of customer service and product innovation," said President Director of BII Henry Ho. "We are also pleased to welcome new President Commissioner and new members of Board of Commissioners and Board of Directors. Certainly, we believe they also share the strong commitment which is to enhance BII's shareholder value and accelerate the process in expanding BII's businesses going forward," added Henry Ho. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service upgraded PT Bank Internasional Indonesia Tbk's bank financial strength rating to D from E+. This action concludes a review for possible upgrade on the BFSR initiated on July 4, 2006. Bank Internasional's Foreign Currency Deposit Ratings are unchanged at B2/Not Prime while Foreign Currency Issuer Rating and Foreign Currency Debt Rating for subordinated obligations are unchanged at Ba3. The Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook. On Feb. 1, 2007, Fitch Ratings affirmed all the ratings of Bank Internasional as: Long-term foreign Issuer Default rating 'BB-', Short-term rating 'B', National Long-term rating 'AA-(idn)'; Individual 'C/D', and Support '4'. The Outlook for the ratings was revised to Positive from Stable. BANK INTERNASIONAL: Shareholders OK IDR253 Billion Cash Dividend ---------------------------------------------------------------- PT Bank Internasional Indonesia Tbk's shareholders, during their annual general meeting, approved a IDR253 billion cash dividend distribution. The amount represents 40% of the bank's 2006 net profit. The meeting also resulted on the acceptance of the Board of Directors' Report on the Company's performance, and ratification of the Balance Sheet & Profit and Loss Statement for the year ended December 31, 2006. About bank Interasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. The Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service upgraded PT Bank Internasional Indonesia Tbk's bank financial strength rating to D from E+. This action concludes a review for possible upgrade on the BFSR initiated on July 4, 2006. Bank Internasional's Foreign Currency Deposit Ratings are unchanged at B2/Not Prime while Foreign Currency Issuer Rating and Foreign Currency Debt Rating for subordinated obligations are unchanged at Ba3. The Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook. On Feb. 1, 2007, Fitch Ratings affirmed all the ratings of Bank Internasional as: Long-term foreign Issuer Default rating 'BB-', Short-term rating 'B', National Long-term rating 'AA-(idn)'; Individual 'C/D', and Support '4'. The Outlook for the ratings was revised to Positive from Stable. BANK NIAGA: Sells 99.96% Stake in Niaga Aset for IDR41.4 Billion ---------------------------------------------------------------- PT Bank Niaga Tbk plans to sell its 99.96% stake in PT Niaga Aset Manajemen to CIMB-Principal Asset Management Berhad and PT Commerce Kapital for IDR41.4 billion, Reuters reports. Specifically, Reuters says, Bank Niaga will sell 103,950 shares to CIMB-Principal Asset and 1,010 shares to Commerce Kapital. Bank Niaga will no longer own any controlling shares of Niaga Aset, the report adds. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com/-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * As reported by the Troubled Company Reporter - Asia Pacific on May 8, 2007, Moody's Investors Service upgraded PT Bank Niaga Tbk's bank financial strength rating to D from E+. Foreign Currency Deposit Ratings are unchanged at B2/Not Prime. Foreign Currency Issuer Rating and Foreign Currency Debt Rating for subordinated obligations are unchanged at Ba3. Foreign Currency Deposit and Foreign Currency Debt Ratings have positive outlooks in line with the outlook on the country's sovereign ratings outlook. Fitch Ratings affirmed all the ratings of PT Bank Niaga Tbk as: Long-term foreign Issuer Default ratings at 'BB-'; Individual at 'C/D'; and Support '4'. The Outlook for the ratings was revised to Positive from Stable. DAVOMAS ABADI: No Dividend Payment for 2006 ------------------------------------------- PT Davomas Abadi Tbk has decided that no dividend will be paid for the fiscal year 2006, Reuters reports. Headquartered in Jakarta, Indonesia, PT Davomas Abadi Tbk processes cocoa beans into cocoa butter and cocoa powder. The Troubled Company Reporter - Asia Pacific reported on Dec. 15, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' rating onIndonesia's PT Davomas Abadi Tbk. The outlook is stable. At the same time, it assigned its 'B+' rating on the proposed US$25 million long-term senior secured bonds to be issued by Davomas International Finance Co. Ltd., a special purpose financing vehicle wholly owned by Davomas. Moody's Investors Service affirmed PT Davomas Abadi Tbk's stable 'B2' corporate family rating and the 'B2' foreign currency rating of Davomas International Finance Company Pte Limited's IDR1.13-trillion senior secured notes due in 2011. Moody's affirmed the rating after the Company had completed its notes issuances and subsequent repayments of its outstanding debts. GOODYEAR TIRE: Plans to Offer 22,549,609 Shares of Common Stock --------------------------------------------------------------- The Goodyear Tire & Rubber Company plans to offer 22,549,609 shares of its common stock in an underwritten public offering. In addition, Goodyear intends to grant the underwriters a 30-day option to purchase up to an additional 3,382,441 shares to cover any over-allotments. The company estimates the net proceeds from this offering, after deducting underwriting discounts and commissions, will be approximately US$725 million, assuming a public offering price of US$33.26 per share, which was the last reported sale price of Goodyear's common stock on May 8, 2007. The estimated net proceeds would be approximately US$834 million if underwriters exercise their over-allotment option in full. Goodyear intends to use the net proceeds from the offering to repay approximately US$175 million of its 8.625% notes due in 2011 and approximately US$140 million of its 9% notes due in 2015. It expects to use the remaining net proceeds for general corporate purposes, which may include investments in growth initiatives within the company's core tire businesses and the repayment of other debt. Deutsche Bank Securities, Citi and Goldman, Sachs & Co. will be joint book running managers for the offering. The offering will be made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. Copies of the prospectus and the prospectus supplement relating to the offering may be obtained from: * Deutsche Bank Securities Prospectus Department No. 100 Plaza One Jersey City, NJ 07311 Tel: (800) 503-4611; * Citigroup Global Markets Inc. 8th Floor Brooklyn Army Terminal 140 58th Street Brooklyn, NY 11220 Tel: (718) 765-6732; * Goldman, Sachs & Co. Prospectus Department No. 85 Broad St. New York, NY 10004 Tel: (212) 902-1171; or * Goodyear's Investor Relations Department No. 1144 E. Market St., Akron, OH 44316 Tel: (330) 796-3751 About The Goodyear Tire & Rubber Company Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. Goodyear employs more than 80,000 people worldwide. * * * The Troubled Company Reporter - Asia Pacific reported on April 10, 2007, that Fitch Ratings affirmed these ratings of The Goodyear Tire & Rubber Company: -- Issuer Default Rating at 'B'; -- US$1.5 billion first-lien credit facility at 'BB/RR1'; -- US$1.2 billion second-lien term loan at 'BB/RR1'; -- US$300 million third-lien term loan at 'B/RR4'; -- US$650 million third-lien senior secured notes at 'B/RR4'; and -- Senior unsecured debt at 'CCC+/RR6'. Standard & Poor's Ratings Services assigned various ratings to Goodyear Tire & Rubber Co.'s proposed bank financings. At the same time, S&P assigned a recovery rating to the existing US$650 million senior secured notes. S&P said it will withdraw the ratings on the existing bank facilities that are being refinanced upon closing of the new facilities. The corporate credit rating on Goodyear is B+/Positive/B-2. The ratings on the Akron, Ohio-based company reflect its aggressive financial risk profile, characterized by low earnings in North America, a leveraged capital structure, and significant, albeit declining, underfunded employee benefit liabilities. These factors more than offset the company's business strengths, including its position as one of the three largest global tires manufacturers, its good geographic diversity, its strong distribution, and its well-recognized brand name. S&P also assigned these ratings to Goodyear Tire & Rubber Co.: US$1.5 billion asset-backed rev. credit facility at BB with Recovery rating of 1; and US$1.2 billion second-lien term loan at B+ with Recovery rating of 2. The TCR-AP reported on March 30, 2007, that Moody's Investors Service affirmed Goodyear Tire & Rubber Company's Corporate Family Rating of B1 but raised the outlook to positive. INDIKA INTI: Fitch Assigns Final 'B' Rating to Guaranteed Notes --------------------------------------------------------------- Fitch Ratings has assigned a final issue rating of 'B' and a final recovery rating of 'RR4' to the US$250 million senior secured notes due June 1, 2012, issued by Indo Integrated Energy B.V. and guaranteed by PT Indika Inti Energi and its 100%-owned subsidiary PT Indika Inti Corpindo. This rating action follows the completion of the notes issue and receipt of documents confirming to the information previously received. The final ratings are the same as the expected ratings assigned on 25 April 2007. Indika plans to use approximately US$60 million of the notes proceeds to acquire a coal asset in Indonesia, around US$40 million to invest in minority stakes in power plant projects and US$118m to refinance existing debt. The remaining US$32m is earmarked for the establishment of an interest reserve account, as well as working capital and general corporate purposes. Indika achieved revenue of IDR1,189 billion, adjusted Operating EBITDA of IDR283bn and net profit of IDR177bn in 2006 on a pro forma basis. About Indika Inti Headquartered in Indonesia, Pt Indika Inti Energi (Indika), -- http://indika.co.id/--established in 2000, is a privately owned investment holding company. Its major investment assets include a 46% stake in Kideco and a 100% stake in Tripatra. Kideco, the major cash flow provider to the holding company, commenced its commercial operations in 1993, with a 30-year CCOW valid until 2023. The CCOW, which is structured as a contract between Kideco and the Indonesian government and ratified by the Indonesian Parliament will prevail above other Indonesian laws and also provide for international arbitration in the event of a dispute. Fitch notes that this framework has existed for nearly 25 years, and has withstood considerable political and economic turmoil in Indonesia. Tripatra is a leading EPC and O&M service provider in Indonesia with a focus on energy and infrastructure projects. ========= J A P A N ========= BANK OF TOKYO-MITSUBISHI: Moody's Lifts Financial Strength to C --------------------------------------------------------------- Moody's Investors Service published on May 4, 2007, the rating results for banks in Japan as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. With the implementation of the new methodologies, Moody's upgraded these ratings: * Bank of Tokyo-Mitsubishi UFJ, Ltd. -- bank financial strength rating to C from D+; -- long-term and short-term deposit ratings to Aa2/P-1 from A1/P-1; -- long-term issuer and senior unsecured debt rating to Aa2 from A1; -- senior and junior subordinated debt ratings to Aa3 from A2; and -- Tier III securities to Aa3 from A3. * Bank of Tokyo-Mitsubishi UFJ Trust Company -- bank financial strength rating to C- from D+; -- long-term and short-term deposit ratings to Aa2/P-1 from A1/P-1; and -- long-term issuer rating to Aa2 from A1. 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. About Bank of Tokyo-Mitsubishi UFJ The Bank of Tokyo-Mitsubishi UFJ Ltd. is a Japanese commercial banking company headquartered in Tokyo, Japan. It provides a range of domestic and international banking services in Japan and worldwide. As of March 31, 2005, the Company's network in Japan included 251 branches, 28 sub-branches, 60 loan plazas, 474 branch automated teller machines (ATMs) and 19,062 convenience store-based, non-exclusive automated teller machines. The company is organized into eight segments: retail banking; commercial banking; global corporate banking; investment banking and asset management; UnionBanCal Corporation; operations services; treasury, and other, including systems services and eBusiness and information technology initiatives. CHUO MITSUI TRUST: Moody's Lifts Financial Strength to C- From D ---------------------------------------------------------------- Moody's Investors Service published on May 4, 2007, the rating results for banks in Japan as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. With the implementation of the new methodologies, Moody's upgraded The Chuo Mitsui Trust & Banking Co., Ltd.'s bank financial strength rating to C- from D; long-term and short-term deposit ratings to A1/P-1 from A3/P-2; and senior subordinated and junior subordinated debt rating to A2 from Baa1. 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. Headquartered in Tokyo, Japan, Chuo Mitsui Trust and Banking Limited is Japan's largest trust bank and provides loans, pensions, securities, and real estate services. Chuo Mitsui is a wholly owned subsidiary of Mitsui Trust Holdings. Chuo Mitsui Trust oversees a network of around 140 branches in Japan as well as trust and finance subsidiaries in the U.S., the U.K., and the Cayman Islands along with representative offices in Singapore and China. The Troubled Company Reporter - Asia Pacific reported on January 24, 2007, that Fitch Ratings upgraded Chuo Mitsui Trust & Banking Company's Individual rating to 'C/D' from 'D'. At the same time, the agency affirmed the Long-term foreign and local currency Issuer Default ratings 'BBB+', Short-term foreign and local currency IDRs at 'F2' and Support rating at '2'. The rating Outlook is Positive. DAIEI: Plans to Sell its Entire Stakes in Maruetsu -------------------------------------------------- Daiei Inc. has decided to sell all of its shares in fellow supermarket chain operator Maruetsu Inc. by the end of August, reports The Yomiuri Shimbun. Yomiuri reported that Daiei currently holds 16.5% of outstanding Maruetsu shares, with the sale expected to fetch about JPY13 billion. Daiei had already sold 20% of Maruetsu shares to Aeon Co. in March at JPY16.5 billion. Aeon is the second biggest shareholder in Maruetsu, next to Marubeni Corp. According to the Yomiuri paper's sources, Marubeni Corp and Aeon Co. could buy the Maruetsu shares. Daiei reportedly plans to use proceeds from the sale of its shares in Maruetsu to reduce its interest-bearing debts. Daiei group's interest-bearing debt totaled JPY219.1 billion as of the end of February, excluding its affiliate major credit card company OMC Card Inc. The group aims to reduce debts to at least JPY150 billion by the end of August as a part of management reconstruction, the report stated. The Troubled Company Reporter Asia-Pacific reported on April 12, 2007, that Daiei plans to sell 31.8% of OMC Card for about JPY80 billion. If Daiei sells the rest of its Maruetsu shares, its interest-bearing debt could be reduced to about JPY100 billion. About Daiei Headquartered in Kobe, Japan, Daiei Incorporated -- http://www.daiei.co.jp-- operates about 3,000 stores through its subsidiaries and franchisees. Its retail businesses include supermarkets, discount stores, department stores, and specialty shops. Other businesses include restaurants, hotels, and real estate services. Domestic sales make up more than 90% of its revenues. Daiei diversified haphazardly during the 1980s loading up on debt and failing to keep up with new, more efficient competitors. Daiei, with the support of the Industrial Rehabilitation Corporation of Japan, has decided to close 54 stores nationwide, including subsidiaries, as part of its new business reconstruction plan. Daiei has been rehabilitated under the auspices of the Industrial Revitalization Corp. of Japan after accumulating huge debts during the bubble economy of the late 1980s. With the IRCJ's help since late 2004, Daiei's finances have started to show a recovery as it has shut down unprofitable stores and sold subsidiaries. As reported in the Troubled Company Reporter - Asia Pacific on Aug. 18, 2006, Marubeni Corporation assumed the leading role in Daiei's turnaround efforts by acquiring the entire 33.67% stake held by the IRCJ in Daiei. Marubeni now holds a 44.6% stake in the company. A subsequent TCR-AP report on Sept. 1, 2006, stated that Marubeni is keen on selling part of its 44.6% holding in Daiei. However, in order for prospect buyers to accept Marubeni's proposal, Daiei's liabilities must be trimmed to an acceptable level. Daiei, as a result, cut its group interest-bearing liabilities to about JPY400 billion as of the end of February 2006 from more than JPY1 trillion a year earlier. According to The Japan Times, Aeon Company, the nation's biggest supermarket chain, was picked in 2006 to set up a business alliance to rehabilitate Daiei. FUJI HEAVY: To Pay JPY300,000 Over Defective Part ------------------------------------------------- Fuji Heavy Industries Ltd was ordered by Tokyo District Court to pay a transport company JPY300,000 in compensation after a defective part caused a fire in one of the company's minivans, Japan Today reports. According to the report, the minivan in question, the Subaru Sambar, had not been recalled for repairs to a fuel pipe that the court determined had been defective. Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. -- http://www.fhi.co.jp-- is a manufacturing company engaged in the production, sale, repair and leasing of automobile and transportation-related products. Standard & Poor's Ratings Services lowered its long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based on diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry HOKKAIDO: Moody's Lifts Financial Strength Rating to D- ------------------------------------------------------- Moody's Investors Service made these rating changes to Hokkaido Bank Ltd. as part of the application of the rating agency's refined joint default analysis and updated bank financial strength rating methodologies: * Bank financial strength rating: D- from E+; * Long-term deposit ratings: Baa1 from Baa2; Moody's maintained the bank's short-term deposit ratings at P-2. 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. HOKURIKU: Moody's Ups Financial Strength Rating to D- ----------------------------------------------------- Moody's Investors Service made these rating changes to Hokuriku Bank Ltd. as part of the application of the rating agency's refined joint default analysis and updated bank financial strength rating methodologies: * Bank financial strength rating: D- from E+; * Long-term deposit ratings: Baa1 from Baa2; The bank's short-term deposit ratings, however, remain unchanged at P-2. 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. KIYO: Moody's Upgrades Financial Strength Rating to D- ------------------------------------------------- Moody's Investors Service revised the ratings of Kiyo Bank, Ltd. as part of the application of the agency's refined joint default analysis and updated bank financial strength rating methodologies: * Bank financial strength rating: D- from E+; * Long-term deposit ratings: Baa1 from Baa2; The bank's short-term deposit ratings remain unchanged at P-2. 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. LIVEDOOR: Court Grants Financing Unit's Liquidation Request ----------------------------------------------------------- The Tokyo District Court has granted Livedoor Finance Co.'s request for liquidation, Japan Today reports. Livedoor Finance is the subsidiary of Livedoor Holdings Co. The court decision was made in April after Livedoor Finance filed the request with the court, as it experienced a downturn in business following an accounting fraud scandal, the news agency relates. The company had a net worth loss of about JPY5.2 billion as of the end of September 2006, Japan Today adds. Headquartered in Tokyo, Japan, Livedoor Company, Limited-- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor," financial business, corporate web solutions, data center and IP telephony business. The Troubled Company Reporter - Asia Pacific reported on Jan. 18, 2006, that former Livedoor President Takafumi Horie and other Livedoor directors were found to have conspired to cover up the company's JPY310-million pre-tax loss for the business year ended September 2004, by tampering financial accounts to instead show an inflated pre-tax profit of JPY5.03 billion. Moreover, Mr. Horie and the company executives allegedly relayed false information on a merger, with the intent to boost the stock price of Livedoor Marketing Co. Following the accounting scandal surrounding the company inJanuary 2006, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share before the company was delisted from the Tokyo Stock Exchange on April 14, 2006. MIZUHO FINANCIAL GROUP: Moody's Lifts Units' BFS Ratings -------------------------------------------------------- Moody's Investors Service published on May 4, 2007, the rating results for banks in Japan as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. With the implementation of the new methodologies, Moody's upgraded these ratings: * Mizuho Corporate Bank, Limited -- bank financial strength rating to C from D+; -- long-term and short-term deposit ratings to Aa2/P-1 from A1/P-1; -- long-term issuer and senior unsecured debt rating to Aa2 from A1; and -- senior and junior subordinated debt ratings to Aa3 from A2 * Mizuho Trust & Banking Co., Ltd. -- bank financial strength rating to C from D+; -- long-term and short-term deposit ratings to Aa2/P-1 from A1/P-1; -- senior unsecured debt rating to Aa2 from A1; and -- senior and junior subordinated debt ratings to Aa3 from A2 * Mizuho Bank, Limited -- bank financial strength rating to C from D+; -- long-term and short-term deposit ratings to Aa2/P-1 from A1/P-1; -- long-term issuer and senior unsecured debt rating to Aa2 from A1; and -- senior and junior subordinated debt ratings to Aa3 from A2. Mizuho Financial Group, Inc.'s commercial paper rating is unchanged at P-1. 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. About Mizuho Financial Group Headquartered in Tokyo, Japan, Mizuho Financial Group, Inc. -- http://www.mizuho-fg.co.jp/english/-- is a financial institution primarily engaged in the banking, trust, securities, asset management and credit card businesses, as well as the investment advisory business. Through its subsidiaries, Mizuho Financial Group also is engaged in the consulting, system management, credit guarantee, temporary staffing and office work businesses, among others. Its main subsidiaries and associated companies include Mizuho Bank, Ltd., Mizuho Trust & Banking Co. (USA). Mizuho Trust & Banking (Luxembourg) SA, Mizuho Corporate Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Private Wealth Management Co., Ltd., Mizuho Financial Strategy Co., Ltd. and Mizuho Capital Markets Corporation, Mizuho Securities Co., Ltd., Mizuho Bank Switzerland Ltd., Mizuho International plc., Mizuho Securities USA, Inc. and Mizuho Investors Securities Co., Ltd. The company has 130 consolidated subsidiaries and 19 associated companies. NIKKO CORDIAL: Becomes Subsidiary of Citigroup ---------------------------------------------- Citing Kyodo News, The Japan Times reports that Nikko Cordial Corp. became a subsidiary of Citigroup Inc. on Wednesday following the settlement of the tender offer for approximately US$7.7 billion in cash. Citigroup Japan Investments LLC is now the parent company and largest shareholder of Nikko Cordial as of May 9, 2007. Citigroup Japan has a 61.08% equity stake in the company by virtue of the 588,698,520 shares held. According to the report, Citigroup and Nikko Cordial have set up committees to work out specific business cooperation arrangements. As previously reported by the Troubled Company Reporter - Asia Pacific, Citigroup completed its tender offer late last month to become the majority shareholder of Nikko Cordial. About 541 million shares were tendered and accepted. Kyodo News noted that Citigroup plans to purchase all remaining Nikko Cordial shares to turn the Japanese brokerage into a wholly owned subsidiary, The Times relates. About Nikko Cordial Headquartered in Tokyo, Japan, Nikko Cordial Corporation -- http://www.nikko.jp/-- is mainly engaged in the provision of financial services in the securities-related field. The company operates in four business segments. The Retail segment provides consulting services for financial products management. The Asset Management segment provides asset management services for individual, corporate and foreign investors. The Investment Banking segment provides corporate finance and capital market services, mergers and acquisitions, advisory services, trading services for institutional investors and research services. The Merchant Banking segment is involved in the investment of corporate issued stocks, bonds, securities-related financial products and other financial products. Nikko Cordial has 62 consolidated subsidiaries. It has oversea operations in the United States, the United Kingdom, Luxemburg and Singapore. The company has a global network. As reported in the Troubled Company Reporter - Asia Pacific on Dec. 22, 2006, Japan's Securities and Exchange Surveillance Commission began investigating Nikko Cordial for falsifying its annual financial statements for the business year ended March 30, 2005, declaring JPY14 billion in false profits, and using them to procure money from the market. The TCR-AP on April 30, 2007, reported that Fitch Ratings revised the Rating Watch on the Long- and Short-term foreign and local currency Issuer Default and Individual ratings on Nikko Cordial Corporation (NCC) and Nikko Cordial Securities Inc. (Nikko Cordial Securities) to Positive from Evolving. The ratings are as follows: NCC: -- Long-term IDR 'BBB-' -- Short-term IDR 'F3' -- Individual 'C/D' -- Support Rating '5' -- Support Rating Floor 'No Floor' Nikko Cordial Securities: -- Long-term 'BBB+' -- Short-term 'F2' -- Individual 'C' -- Support Rating '4' -- Support Rating Floor 'B' NISHI-NIPPON: Moody's Lifts Financial Strength Rating to D- ----------------------------------------------------------- Moody's Investors Service published on May 4, 2007, the rating results for banks in Japan as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. With the implementation of the new methodologies, Moody's upgraded Nishi-Nippon City Bank, Ltd.'s bank financial strength rating to D- from E+; and long-term and short-term deposit ratings to Baa1/P-2 from Baa2/P-2. 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. NOMURA HOLDINGS: To Sell Historic London Office Building -------------------------------------------------------- Reuters reports that Nomura Holdings Inc. "is looking to sell its main office building in London . . . to cash in on rising real estate prices in the British capital's financial district." According to Reuters, the company "plans to sell its Nomura House building, once home to Britain's general post office and where some 1,500 employees now work." The building is located in London's financial district, known as "the City". But Nomura does not intend to relocate. Should Nomura find a buyer, the firm plans to negotiate a lease of up to 20 years, Reuters relates, citing a Nomura spokesman in Tokyo who declined to be identified. The Nikkei business daily, Reuters notes, reported that Nomura is hoping the building will fetch at least GBP234 million or US$466 million. The Nomura spokesman told Reuters that figure may be inaccurate. About Nomura Holdings Nomura Holdings, Inc. -- http://www.nomura.com/-- is a securities and investment banking firm in Japan and have worldwide operations in more than 20 countries and regions including Japan, the United States, the United Kingdom, Singapore and Hong Kong through its subsidiaries. Nomura operates in five business segments: Domestic Retail, which includes investment consultation services to retail customers; Global Markets, which includes fixed income and equity trading and asset finance businesses in and outside Japan; Global Investment Banking, which includes mergers and acquisitions advisory and corporate financing businesses in and outside Japan; Global Merchant Banking, which includes private equity investments in and outside Japan, and Asset Management, which includes development and management of investment trusts, and investment advisory services. As of May 11, 2007, Nomura Holdings still carries Fitch Ratings' 'C' individual rating that was given on April 13, 2006. SANYO ELECTRIC: To Set Up Investigation Panel for Past Results -------------------------------------------------------------- SANYO Electric Co., Ltd. will establish an internal "Investigation Committee for Previous Financial Results" to prevent problems from reoccurring and in order to uncover the cause of the problem. As previously reported by the Troubled Company Reporter - Asia Pacific, on February 27, 2007, the company started conducting a comprehensive review of its financial results from previous years to ensure accordance with accounting standards and practical guidelines relating to financial commodities. The amendment of impairment losses for subsidiaries and affiliates is currently under consideration. In order to improve transparency, SANYO will appoint three new persons from outside the company to the investigation committee, including Ichiro Kawamoto (Lawyer, Corporate Law), Chitoshi Koga (Accountant), and Takaharu Dohi (Lawyer, previous Attorney General) as the committee chairman. Additionally, the committee's executive office will be aided by a number of lawyers, accountants, and SANYO in-house law and auditing staff. The committee plans to present a summary report of the findings if and when there are revisions of the securities report for previous fiscal years. Planned Response For the four terms spanning from Fiscal Year 2000 (ended March 2001) through Fiscal Year 2003 (ended March 2004), SANYO will conduct a comprehensive review ensuring compliance to accounting standards and practical guidelines in order to decide which subsidiaries and affiliates will be subject for review for impairment losses and which companies have the potential of recoverable performance, particularly in the semiconductor business which has been subject to market fluctuations. As a result, regarding the total impairment losses allocated for the given period, SANYO plans to amend the appropriate allocation period for each subsidiary/affiliate and make additional allocations for certain parts. Along with these actions, SANYO will recalculate impairment losses for subsidiaries and affiliates and deferred tax assets for each fiscal year after Fiscal Year 2004. The revisions will be limited to non-consolidated financial results. There is no expected impact on the SANYO Group's consolidated financial results for Fiscal Year 2005. Grant Thornton Tapped to Conduct Audit Regarding revisions to previous financial statements, Grant Thornton Taiyo ASG will conduct the audit. Since the audit will cover an extended period from Fiscal Year 2000 to Fiscal Year 2006, the current outlook is that the audit will be completed by November or December 2007. Upon receiving the official auditor's opinion, SANYO plans to make a decision whether or not to revise previous fiscal year securities reports among the board of directors, after which the decision will then be disclosed. For the given period, SANYO has requested to and gained acceptance from Grant Thornton Taiyo ASG to conduct the audit revision. Previously SANYO used Chuo Aoyama Audit Corporation (currently Misuzu Audit Corporation) as the auditing firm, and currently changed the audit firm to Azsa & Co. on a temporary basis. 2006 Results to be Released on May 28 Fiscal Year 2006 financial results will be announced on May 28 and currently, Azsa & Co. are in the midst of auditing the results. Following the General Shareholders Meeting to be held on June 28, SANYO plans to submit its securities report. At present, significant impact on the Fiscal Year 2006 financial results is not expected; however, as previous Fiscal Year audits are as yet unfinished, it is expected that these results will be issued having received qualified opinion by the auditors. About SANYO Electric Headquartered in Osaka, Japan, SANYO Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter - Asia Pacific on March 2, 2007 Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. As reported by the TCR-AP on May 25, 2006, Standard & Poor's Ratings Services affirmed its negative BB long-term corporate credit and BB+ senior unsecured debt ratings on SANYO Electric Co. Limited. At the same time, the ratings were removed from CreditWatch where they were first placed with negative implications on Sept. 28, 2005. SANYO ELECTRIC: GE Acquires 97% Stake in SANYO Credit for US$1BB ---------------------------------------------------------------- As widely reported, General Electric Co. has acquired a 97.15% stake in SANYO Electric Credit Co. for US$1.05 billion. The Troubled Company Reporter - Asia Pacific reported two weeks ago that Sanyo Electric Co. Ltd. agreed to tender its entire 16.7% stake in Sanyo Electric Credit Co. Ltd., a Japanese leasing company whose main shareholder is Goldman Sachs. Reuters noted that GE offered to pay JPY3,250 per SANYO Electric Credit share, a premium of nearly 62% from the previous close. Takahiko Hyuga of Bloomberg News reports that GE bought control of SANYO Credit "to increase office-equipment leasing and lending to small companies in Japan." "SANYO Credit had outstanding loans of about 800 billion yen at the end of 2006, General Electric said in March," Mr. Hyuga noted. About SANYO Electric Headquartered in Osaka, Japan, SANYO Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter - Asia Pacific on March 2, 2007 Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. As reported by the TCR-AP on May 25, 2006, Standard & Poor's Ratings Services affirmed its negative BB long-term corporate credit and BB+ senior unsecured debt ratings on SANYO Electric Co. Limited. At the same time, the ratings were removed from CreditWatch where they were first placed with negative implications on Sept. 28, 2005. SUMITOMO TRUST & BANKING: Moody's Ups Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service published on May 4, 2007, the rating results for banks in Japan as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies. With the implementation of the new methodologies, Moody's upgraded Sumitomo Trust and Banking Co., Ltd.'s bank financial strength rating to C from D+; long-term and short-term deposit ratings to Aa3/P-1 from A2/P-1; and senior subordinated and junior subordinated debt ratings to A1 from A3. 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. Headquartered in Tokyo, Sumitomo Trust and Banking Co., Ltd. -- http://www.sumitomotrust.co.jp/-- is a Japan-based trust bank mainly engaged in the provision of financial services. The Company operates in two business segments. The Investment and Related Services segment is mainly involved in the management of funds for institutional investors, as well as the provision of property maintenance services, loans for housing services, temporary staffing services and other related services. The Financial-related segment is engaged in the provision of credit cards services, general leasing services, asset management services, residential brokerage services, venture capital business services and other related financial services. The Company has 24 subsidiaries and nine associated companies. ========= K O R E A ========= BHK INC: Offers KRW1,500 per Share for Common Stock ---------------------------------------------------- BHK Inc.'s final offering price is KRW1,500 per share related to a rights issue of 9,965,999 shares of its common stock, Reuters reports. Seoul, Korea-based BHK Inc. is engaged in international trading. The company's products consist of liquid crystal display televisions (LCD-TV's), electronic products, bed sheets, pillows, pillowcases, curtains and clothing. The company sells its bedding products in the department stores under the brand name Pierre Cardin. Currently, the company is also in the development stage for launching of a new business segment, which specializes in biomedical products, namely MyoCell, for heart muscle regeneration. The Troubled Company Reporter - Asia Pacific reported on March 2, 2007, that the company has a shareholders' equity deficit of US$17.38 million on total assets of US$24.36 million. C&C Enterprise: Amended Listing of News Shares on June 15 --------------------------------------------------------- C&C Enterprise Co., Ltd.'s amended listing for its 3,998,000 shares of Common Stock will be on June 5, 2007, Reuters reports. Headquartered in Seoul, Korea, C&C Enterprise Co., Ltd. -- http://www.cncen.com/-- is specialized in the provision of electronic money systems. The company provides its services under three categories: automatic fare collection (AFC), smart card and intelligent transport systems (ITS). Its AFC system enables deferred payment on public transit usages. Its smart card system stores money values electronically in the integrated circuit (IC) cards and use electronic money for payments to purchase products or services. Its ITS provides solutions to reduce fare collection and transaction time and integrate various fare payment methods. In addition, the company offers access control, digital video record (DVR) and remote control systems and other related services. The Troubled Company Reporter - Asia Pacific reported on March 2, 2007 that the company had a US$14.50 million shareholders' equity deficit on total assets of KRW28.05 million. CHOROKBAEM MEDIA: Converts Convertible Bonds into Common Shares --------------------------------------------------------------- Chorokbaem Media Co., Ltd. converted its first overseas convertible bonds into 2,446,894 new common shares at the price of KRW732 per share, Reuters reports. According to the report, the company's total shares outstanding is now 61,608,631 shares. Seoul, Korea-based Chorokbaem Media Co., Ltd. is a manufacturer engaged in the provision of non-woven fabrics. The company provides non-woven fabrics used in normal and special filters, artificial and synthetic leathers and other related usages. In addition, the company operates family restaurants. The Troubled Company Reporter - Asia Pacific reported that Korea Investors Service gave the company's unregistered US$8 million convertible bonds a 'B' rating on Feb. 16, 2007. CURON INC: Adjusts Conversion Price of Second Bond to KRW1,080 -------------------------------------------------------------- Curon Inc. amended its second bond with warrants, Reuters reports, by adjusting the conversion price from KRW1,170 to KRW1,080. Seoul-based Curon Inc. -- http://www.curon.co.kr-- is engaged in the provision of diaphragms, vaporizers and Video On Demand servers. The company provides three main products: diaphragms and vaporizers, which are used in gas meters, speakers, automobiles, medical applications, heavy machinery, industrial valves and pumps; VOD servers such as StreamXpert, which supply High Definition Television (HDTV) multimedia content; and Telematics, which are used in entertainment, games, digital multimedia players, traffic information, satellites, digital versatile discs, TVs and radios. Korea Ratings gave Curon Inc.'s US$10 million convertible bond a B- rating with a stable outlook on Feb. 22, 2007. DAEHAN PULP: Appoints Huh Won as New Chief Executive Officer ------------------------------------------------------------ Daehan Pulp Co., Ltd. has appointed Huh Won as its new Co-Chief Executive Officer, effective May 2, 2007, Reuters reports. Based in Seoul, South Korea, Daehan Pulp Co., Ltd. -- http://www.dhpulp.co.kr/-- specializes in the provision of paper products. The company categorizes its products under industrial and hygienic paper. Its industrial paper includes manila paperboard used in commercial packaging; ivory paperboard for tissue paper production; royal ivory used for tissue paper production; cup liner used in the production of paper cups; carrier boards used to make cardboard carriers for beverages and frozen food, and kraft boards used in the production of book covers and laminated paper. Its hygienic paper includes toilet paper, paper towels, facial tissues, wet wipes, sanitary napkins and baby and adult diapers. The company's convertible bonds with a maturity date of Nov. 12, 2007, carries Korea Rating's BB rating with a stable outlook, effective on June 21, 2006. GENEXEL-SEIN: Final Conversion Price for Bonds is KRW3,875 ---------------------------------------------------------- Genexel-Sein Inc.'s final conversion price for its second convertible bonds, which will be effective May 8, 2007, is of KRW3,875, Reuters reports. Headquartered in Gyeonggi Province, Korea, Genexel-Sein Inc. is a manufacturer specialized in the provision of medical devices. The company provides its products under two categories: blood pressure monitors and transcutaneous electrical nerve stimulators. Its blood pressure monitors include digital, digital wrist, aneroid, mercury, semi-automatic and automatic blood pressure monitors used in homes and medical institutions. Its TENS are used to treat low back pain, myofascial and arthritic pain and others. On July 31, 2006, Korea Ratings gave the company's US$3,000,000 overseas bond with warrants issue a 'B+' rating with a stable outlook. HANA BANK: Selects Accenture for Management Office Services ----------------------------------------------------------- Hana Bank has chosen Accenture to provide project management office services for the initial phase of its next-generation banking system transformation program. Financial terms were not disclosed. The contract calls for three months of initial project planning, followed by 24 months of business transformation office services to complete the planning process, confirm findings and begin managing implementation of the plan. The project is part of the bank's strategy to transform capabilities through a modernization of information technology systems designed to increase efficiency, reduce operating costs and enhance revenue opportunities. Accenture will provide a variety of business transformation services, including process and business-model design, business- case development and definition of business requirements for Hana Bank's core banking replacement program. Hana Bank plans to implement 17 new information technology systems, including a core banking system, as part of the transformation program. "Hana Bank has begun a strategic transformation to enhance its competitiveness," said Bong-Han Cho, chief information officer of Hana Bank. "We believe that Accenture, with its experience globally and locally with successful transformation projects, is best positioned to help us first identify our business opportunities, then the capabilities we will need to achieve our goals." "Business-transformation excellence is a crucial element of successful core banking replacement program," said Steven B. Lee, the senior executive who leads Accenture's Financial Services practice in Korea. "By focusing on the business opportunities before the specific information technology issues, Hana Bank should be able to maximize the benefits - both operational and financial - from its transformation program." About Accenture Accenture -- http://www.accenture.com/-- is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 152,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. About Hana Bank Hana Bank -- http://www.hanabank.com/-- provides financial services to individuals and corporate clients such as international banking, trust business and security investment business through 298 domestic branches and one head office. Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service upgraded Hana Bank's bank financial strength rating to C from D+. Moody's also disclosed that: * Global Local Currency Deposit Ratings assigned are A1/Prime-1 * Foreign Currency Deposit Ratings are unchanged at A3/Prime-2 * Foreign Currency Debt Rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A2 from Baa1 * Foreign Currency Short Term Debt Rating is unchanged at Prime-1 All the ratings have a stable outlook except for the Foreign Currency Deposit Ratings, which carry a positive outlook. HANSUNG ENTERPRISE: Kimhae Factory Ready for Operation ------------------------------------------------------ Hansung Enterprise Co., Ltd. has established its Kimhae factory in Korea, Reuters reports. The report notes that the Company had closed down its factory at Ansan in order to transfer the production facilities to Kimhae factory. Busan, Korea-based Hansung Enterprise Co., Ltd -- http://www.han-sung.co.kr/eng/-- is engaged in the production and distribution of seafood-related products. The company has two main businesses: Marine Products business, which provides tunas, pollacks and other fishes, and Processed Seafood business, which provides processed crabmeat products, pickled seafood, frozen food and processed fishes. It has overseas corporations in the United States, Argentina, China and Russia. Korea Ratings gave the company's commercial papers a B- rating on Jan. 12, 2007. =============== M A L A Y S I A =============== AMINVESTMENT BANK: Fitch Keeps All Ratings; Outlook Stays Stable ---------------------------------------------------------------- On May 9, 2007, Fitch Ratings affirmed all the ratings of AmInvestment Bank Berhad. After the rating action, the bank's ratings are: * Long-term Foreign Currency Issuer Default Rating at BB+; * Short-term Rating at B; * Individual Rating at C/D; * Support Rating at 3; and * Deposit rating at BBB-. The Outlook on the ratings remains Stable. The affirmed ratings reflect AmIB's satisfactory capital position, improved loan quality and profitability but also take into consideration the volatility in its earnings profile due to its dependence on treasury income. As the investment banking arm of the fifth largest banking group in Malaysia, AmIB's Support Rating reflects a moderate probability of support from the government if needed. The agency notes that AmIB's underlying profitability has improved, with pre-provision return on assets (ROA) at 2.7% in the first nine months ending December 2006 (9M07) versus 2.3% in the financial year ending March 2006 (FY06). The pipeline for new debt issuance and IPOs remained healthy, noting AmIB's strong market positioning (among the top three) in various key capital market areas. About 40-50% of total income in 9M07 arose from securities trading and investment income. Meanwhile, loan quality continued to improve through a combination of write-offs and lower new non-performing loans (NPLs). The gross NPL ratio was 7.8% at end-December 2006 (industry average: 7.5%) from 11.8% at end-March 2006, while provision cover increased to 61% of NPLs (industry: 59%) from 57% previously. Tier 1 capital adequacy ratio (CAR) moderated to 10.8% (Total CAR: 16.2%) at end-December 2006 but remained above industry averages of 10.3% and 12.8%, respectively. Following the consolidation of its merchant banking and stock broking operations in March 2007, AmMerchant Bank was renamed AmIB to better reflect its position as a single investment banking entity. Nevertheless, it remained predominantly the former AmMerchant Bank with its operations contributing to 90- 95% of the merged entity's assets and earnings. It is 51% owned by AMMB Holdings, which is in turn 32.91% owned by Tan Sri Dato' Azman Hashim. His stake in the holding company will subsequently be reduced to 16.9% with the entry of ANZ Banking Group as a new foreign partner (who will acquire 24.9% in AMMB Holdings). This is expected to have positive implications for the AMMB group in the long term given ANZ's stronger financial resources and technical expertise. ARK RESOURCES: Securities Commission OKs Corporate Reform Plan -------------------------------------------------------------- Ark Resources Bhd disclosed with the Bursa Malaysia Securities Bhd that it obtained on April 30, 2007, the Securities Commission's approval to implement its proposed corporate restructuring plan. In a letter received on May 3 by the Aseambankers Malaysia Bhd, acting as the company's merchant bank, the Commission said that in giving its approval, certain conditions are imposed on the company, which includes: a. ARK to place the new shares pursuant to the Proposed Placement to Bumiputera, as proposed; b. ARK to notify the Ministry of Finance of its Bumiputera equity interest pursuant to the equity conditions imposed for ARKM to qualify as a Bumiputera contractor. A copy of the notification to be extended to the Securities Commission; c. Aseambankers/ARK to obtain the SC's approval should there be any changes to the terms and conditions of the RCSLS; d. ARK to obtain all necessary approvals from all relevant parties in relation to the proposed RCSLS and Aseambankers is to submit a written confirmation to the SC prior to the issue date of the RCSLS; and e. Aseambankers/ARK to fully comply with the other requirements of the Policies and Guidelines on Issue/Offer of Securities in relation to the implementation of the proposals. The Troubled Company Reporter - Asia Pacific, on Feb. 6, 2007, reported about the company's reform plan requisite announcement. The plan, according to the TCR-AP, among others, involves: -- a proposed capital reduction; -- proposed acquisitions; -- a proposed debt restructuring; -- a proposed liquidation; -- proposed rights issue with warrants; and -- proposed placement with warrants. The company proposed to reduce its share capital through cancellation of MYR0.50 of the par value of each existing issued and fully paid-up share of the company at MYR1.00 each. The credit arising from the Proposed Capital Cancellation together with the audited share premium account as at December 31, 2005, will be utilized to reduce the accumulated losses of the company as at December 31, 2005, the reform plan stated. Ark also plans to acquire its entire equity interest in its subsidiaries, ARK Development Sdn Bhd, ARK M&E Sdn Bhd and ARK Construction Sdn Bhd. After the acquisition, Ark would settle its subsidiaries debts thru cash payment and the issuance of up to MYR10,355,311 nominal value of redeemable convertible secured loan stocks to its creditors, the TCR-AP said. COGNIS GMBH: Fitch Affirms IDR at B with Stable Outlook ------------------------------------------------------- Fitch Ratings affirmed Germany-based Cognis GmbH's Issuer Default rating at 'B' with a Stable Outlook. The rating action follows Cognis's recent announcement to refinance its existing EUR1.29 billion senior secured and second lien facilities as well as EUR350 million of the existing payment-in-kind notes. At the same time, Fitch has assigned Cognis's new undrawn EUR250 million super senior secured revolving facility 'BB'/'RR1' ratings and new EUR1.65 billion cash-pay senior secured floating-rate notes and loans 'BB-'/'RR2' ratings. This follows the successful consent of the bondholders of its 9.5% high yield notes maturing in 2014 for the proposed refinancing. Cognis's existing EUR345 million high-yield notes and Cognis Holding GmbH's remaining EUR344 million PIK notes are affirmed at 'CCC+'/'RR6' and 'CCC'/'RR6' respectively. Furthermore, Fitch has affirmed the ratings of 'BB'/'RR1' on the refinanced senior secured facilities and 'B-'/'RR5' on the refinanced second lien facilities issued by Cognis Deutschland GmbH & Co KG and its local subsidiaries and withdrawn them. The IDR reflects Cognis's global leading position in care chemicals and nutrition and health, which together represent over 65% of its EBITDA. The rating is also supported by the company's overall improved operating performance and the additional financial flexibility from the back-ended refinancing that reduces financial charges including cash interest and debt amortization by approximately EUR55 million to EUR60 million annually. The rating, however, is constrained by Cognis's higher gross cash-pay financial leverage at 5.8x, compared to 4.8x before the transaction, based on the reported FY2006- EBITDA. As a further result of the refinancing proposal major debt reduction in the short to medium term will be unlikely, delaying the de-leveraging process. Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries, including Australia, Brazil, Malaysia, and France. Cognis generated revenues of EUR1.7 billion and EBITDA of EUR214m (margin 12.5%) in the first half of 2006. COGNIS GMBH: S&P Rates Proposed EUR250 Million Facility at BB-/1 ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' senior secured debt rating and a recovery rating of '1' to the proposed EUR250 million revolving credit facility to be issued by Cognis GmbH, indicating the expectation of full recovery of principal in the event of a payment default. At the same time, Standard & Poor's assigned its 'B' senior secured debt rating and a recovery rating of '3' to the company's proposed EUR1.65 billion senior secured debt, which comprise floating rate notes and senior secured loans, indicating the expectation of meaningful recovery of principal. The proposed issues will be used to refinance existing first- and second-lien debt as well as to repay up to EUR350 million of the payment-in-kind notes issued by Cognis Holding GmbH. The ratings on Cognis continue to reflect the company's exposure to several markets undergoing significant structural changes, such as oleochemicals and textile chemicals; high volatility in natural and petrochemical raw-material prices; and difficulties of fully passing on the higher costs to customers. These factors are partly mitigated by well-diversified specialty chemicals operations with above-average exposure to consumer- related sectors and backward integration into natural-based raw materials. This provides Cognis a competitive advantage under the current high oil price levels. Recovery Analysis The proposed EUR250 million senior secured revolving credit facility is rated 'BB-', two notches above the corporate credit rating, with a recovery rating of '1', indicating Standard & Poor's expectation of full recovery of principal in the event of a payment default. The proposed EUR1.65 billion senior secured debt comprising floating rate notes and loans is rated 'B', at the same level as the corporate credit rating, with a recovery rating of '3', indicating our expectation of meaningful recovery in the event of a payment default. The '3' recovery rating assumes that loss-sharing provisions in respect of senior secured loans borrowed by subsidiaries of Cognis are upheld such that lenders of senior secured debt in both loan and note form rank pari passu on enforcement of recovery proceeds. Senior secured lenders to the revolving credit facility and senior secured debt are expected to benefit from charges over tangible assets where available--primarily from German, U.S., and French entities -- in addition to share pledges and guarantees from material companies in the group. The lenders to the senior secured loans and notes will rank pari passu although behind lenders to the revolving credit facility on enforcement. Guarantees are provided by group companies accounting for at least 70% of the group's total assets and adjusted EBITDA. Should the corporate tax reform that is currently under discussion in Germany be resolved with a detrimental tax effect for Cognis, security and subsidiary guarantees may be released and cease to secure the senior secured debt of the company. At that point security would only consist of a Cognis share pledge, and the recovery ratings would be reviewed. The group's operations are located in a number of jurisdictions- -although about 80% of sales are generated in Western Europe and North America--so cross-jurisdictional issues and legal restrictions could affect the enforceability or ultimate value of certain guarantees. Senior secured documentation contains nonfinancial covenants standard for "covenant-light" transactions, including limitations on additional indebtedness, liens, disposals, mergers, consolidations, sale-and-lease-back transactions, and dividend payouts. In addition, the revolving credit facility includes a financial covenant restricting total drawn revolver debt to no more than 1.5x consolidated cash flow. To calculate recoveries, Standard & Poor's simulates a default scenario. It used an enterprise valuation approach supported by Cognis' satisfactory business profile as the leading worldwide manufacturer of natural-based specialty chemicals and intermediates and a midsize producer of synthetic specialty chemicals. Standard & Poor's simulated default scenario assumes a potential combination of these factors: -- Four years of revenue decline at a compound annual growth rate of 2%, as a result of overall weakness in economy and insufficient innovation. -- Pressure on gross margins due to raw material price volatility and an inability to pass the raw material price increases on to customers. -- Working capital increase driven by weakened negotiation power in the unfavorable market conditions. -- Higher interest costs to account for possible base rate increase and to secure covenant waivers. -- Effective tax rate of 35%. Under S&P's default scenario, a payment default is unlikely to occur before early 2010, at which point the outstanding amount of senior debt that would have to be covered is estimated at about EUR1.9 billion, assuming the revolving credit facility is fully drawn. Using primarily a discounted cash flow analysis, the enterprise value at the point of default is reduced by priority obligations, comprising enforcement costs, Henkel pension fund contributions, finance leases, and other bank borrowings. This provides coverage of more than 100% for the senior secured revolving credit facility, resulting in a recovery rating of '1', and of meaningful coverage for the senior secured term loan facilities, resulting in a recovery rating of '3'. The senior secured debt rating is not notched down from the corporate credit rating, reflecting our expectation that, from a recovery perspective, debtholders would benefit meaningfully from the security package, despite their second-ranking position on the proceeds of enforcement. Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries, including Australia, Brazil, Malaysia, and France. Cognis generated revenues of EUR1.7 billion and EBITDA of EUR214m (margin 12.5%) in the first half of 2006. COGNIS GMBH: Moody's Lowers Corporate Family Rating to B2 --------------------------------------------------------- Moody's Investors Service downgraded Cognis GmbH corporate family rating to B2 and Probability of Default rating for the group to B2. Moody's also downgraded the senior notes due 2014 to Caa1 and revised LGD assessment at LGD5 (88%). At the same time, Moody's assigned a rating of (P)B1, LGD3 (44%) to the proposed senior secured floating rate notes and loans (expected to rank pari passu with each other and have equal terms and conditions) and a rating of (P)Ba2, LGD1 (4%) to the proposed revolving credit facility. The ratings on the existing first lien senior secured bank facilities and second lien senior notes and loans of Cognis Deutschland GmbH & Co. KG will be withdrawn following the completion of the proposed refinancing. The outlook is stable. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign definitive ratings to the securities. A definitive rating may differ from a provisional rating. Moody's one notch downgrade of the corporate family rating reflects the increase in leverage and cash interest costs associated with the debt located within the rated Cognis GmbH group following the partial repayment of the 2015 PIK notes. While the consent of the holders of the 2014 senior notes to the partial repayment of the PIK notes was secured through an one- off waiver and leaves the ring fencing arrangements restricting the upstreaming of cash from Cognis GmbH to its parent Cognis Holding GmbH in place, Moody's notes that the refinancing exercise will result in some material deterioration in the credit metrics of the rated group. Despite assuming that Cognis will continue to report a relatively robust operating performance in line with its 2006 results, Moody's expects that the group's adjusted gross debt to EBITDA ratio will remain close to 6x in the near to medium term. This rating action concludes the review for downgrade that was initiated on 25 April 2007 following the company's announcement of the consent solicitation under the 2014 9.5% senior notes to allow refinancing of its senior secured first lien and second lien obligations and a portion of the 2015 PIK notes. These ratings of Cognis GmbH have been affected by the press release: -- Corporate Family rating -- B2/PDR B2; -- Senior secured 2014 notes -- Caa1/LGD 5(88%); -- Senior secured floating rate notes and loans -- (P)B1/ LGD3 (44%) -- Revolving credit facility -- (P)Ba2, LGD1 (4%) Moody's does not rate senior PIK notes at Cognis Holding GmbH. Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries, including Australia, Brazil, Malaysia, and France. Cognis generated revenues of EUR1.7 billion and EBITDA of EUR214m (margin 12.5%) in the first half of 2006. KUMPULAN BELTON: Posts MYR3.5 Million Net Loss in 4Q 2006 --------------------------------------------------------- Kumpulan Belton Bhd recorded a net loss after taxation of MYR3.5 million on MYR11.46 million of revenues in the fourth quarter ended Dec. 31, 2006, compared with a net loss MYR1.2 million on MYR16.04 million of revenues in the same period in 2005. The company's full year loss, after taxation, increased to MYR8.30 million from a loss of MYR873,000 in 2005, while 2006 revenue dropped to MYR48.06 million from MYR54.57 in the preceding year. As of Dec. 31, 2006, the company's unaudited balance sheet reflected strained liquidity with current assets of MYR60.11 million available to pay current liabilities of MYR98.46 million. Kumpulan Belton's unaudited balance sheet as at Dec. 31 showed total assets of MYR103.61 million and total liabilities of MYR103.57 million, resulting in a shareholders' equity of MYR4.9 million. A full text-copy of the company's financial statement is available for free at: http://bankrupt.com/misc/belton-4q-results.pdf * * * Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton Berhad -- http://www.beltongroup.com/-- manufactures and sells automotive suspension parts and components. Other activities include property development and investment, provision of machining and heat treatment services and investment holding. Operations of the Group are carried out in Malaysia and Australia. Kumpulan Belton was identified as an affected listed issuer of Practice Note 17, as its consolidated shareholders' equity as of December 31, 2005, was less than 25% of its issued an paid up capital. As an affected issuer, the Company is required to submit a Regularization Plan to the relevant authorities for approval and implement the Regularization Plan within the timeframe stipulated by the relevant authorities. MEMORY TECH: Default Cues RAM to Junk MYR320MM Debt Rating to C3 ---------------------------------------------------------------- Rating Agency Malaysia has downgraded the long-term rating of Memory Tech Sdn Bhd's, a wholly owned unit of Megan Media Sdn Bhd, MYR320 million Bai Bithaman Ajil Islamic Debt Securities (2005/2012), from A2, with a negative outlook, to C3. The BaIDS carries a corporate guarantee from MTSB's holding company, Megan Media Holdings Berhad. Concurrently, RAM has placed the C3 rating of the BaIDS on Rating Watch, with a negative outlook. The downgrade is premised upon the failure of MTSB and MJC (Singapore) Pte Ltd, another wholly owned subsidiary of Megan Media, to repay their trade facilities amounting to MYR47.36 million, which fell due on April 27, 2007. Based on the terms of the trust deed, this default on the trade facilities constitutes a cross-default on the BaIDS. As a guarantor for the BaIDS, Megan Media has 30 days to remedy this breach. According to Megan Media's management, the inability of MTSB and MJC to meet their debt obligations had been primarily due to a liquidity crunch arising from slow collections from trade debtors. These trade receivables are mainly from the Group's trading business, which has unexpectedly burgeoned since RAM's last rating review in November 2006. Meanwhile, Mr. George Yeo Wee Siong, formerly the largest shareholder of Megan Media, has reduced his equity from 10.22% (in November 2006) to only 1.94%, and has also ceased to actively participate in the Group's daily operations. Given that Mr. Yeo had been the co-founder and a key person in Megan Media, his abrupt exit may have some relation to the Group's sudden shift in business focus. Prior to the latest developments, the Group's operating performance has still been fairly sustainable. Megan Media posted a pre-tax profit of MYR51.74 million on the back of MYR774.65 million of revenue for the first 9 months of FYE 30 April 2007; its pre-tax profit was only 2.6% lower than that of the previous corresponding period. RAM notes that the Group had been servicing the BaIDS until now. Nonetheless, RAM had revised the outlook on the rating to negative in July 2006, in view of our concerns about Megan Media's increasing debt load to support its capital spending and the prevailing industry depression. RAM understands that Megan Media's management is currently endeavoring to facilitate a comprehensive, group-wide debt restructuring involving all classes of creditors, including the BaIDS holders. Megan Media will be meeting with the BaIDS holders and creditors to discuss this issue on 11 May 2007. RAM highlights that the rating of the BaIDS will be downgraded further should the current cross-default (a material credit event in itself) remain unresolved after the prescribed grace period. RAM will closely monitor the further developments on this matter and make the appropriate announcements as and when necessary. About Megan Media Megan Media Holdings Berhad Group was established in early 1994. The principle activities of the MEGAN Group started from producing plastic injection components to a range of electronics and automotive parts. In 1996, MEGAN ventured into the manufacturing of 3.5" MFD and videotapes under Memory Tech Sdn Bhd, a subsidiary of MEGAN. On August 8, 2000, Megan Media Holdings Bhd was listed onto Second Board of the Kuala Lumpur Stock Exchange. Megan's entire share capital was transferred from the Second Board to Main Board of the Exchange under the "Industrial Products" sector with effect Tuesday, December 3, 2002. About Memory Tech Memory Tech, a wholly owned unit of Megan Group expanded into the manufacturing of compact disc-recordable (CD-R) and digital versatile disc-recordable (DVD-R) in 1999. PUTERA CAPITAL: Posts MYR2.69MM Net Loss in Qtr Ended Feb. 2007 --------------------------------------------------------------- Putera Capital Bhd recorded a net loss of MYR2.69 million on MYR3.48 million of revenues in the third quarter ended Feb. 27, 2007, compared with a net loss of MYR3.46 million on MYR3.36 million of revenues in the same period in 2006. As of Feb. 27, 2007, the company's unaudited balance sheet showed strained liquidity with current assets of MYR20.22 million available to pay current liabilities of MYR47.97 million. In addition, Putera Capital's unaudited balance sheet as at Feb. 27, 2007, went upside down with total assets of MYR42.45 million and total liabilities of MYR50.15 million, resulting in a shareholders' deficit of MYR7.7 million. A full text-copy of the company's financial statement can be viewed for free at: http://bankrupt.com/misc/putera-3q-results.xls * * * Headquartered in Kamunting-Taiping, Malaysia, Putera Capital Berhad is principally involved in the investment and development of properties. Its other activities include the manufacture and sale of yarn and woven fabrics, construction and management of water and sewage treatment plant, contractor of construction projects, distribution of marble, tiles, and related business and investment holding. The company is classified as an Affected Listed Issuer due to these reasons: a) The shareholders' equity of the company on a consolidated basis has fallen below 25% of its issued and paid up capital as per its unaudited 3rd quarter financial results as announced on April 28, 2006. As such its shareholders equity is less than the minimum issued and paid up capital. b) The auditors have expressed a modified opinion with emphasis on Putera's going concern in its audited accounts as of May 31, 2005. c) There are defaults in repayment of certain debt obligation by Putera and its subsidiaries and Putera is unable to provide a solvency declaration to Bursa Malaysia Securities Berhad. ==================== N E W Z E A L A N D ==================== A 1 TAXIS: Faces CIR's Wind-Up Petition --------------------------------------- On April 3, 2007, the Commissioner of Inland Revenue filed a wind-up petition against A 1 Taxis (Whakatane) Ltd. The petition will be heard before the High Court of Rotorua on May 14, 2007, at 10:45 a.m. The CIR's solicitor is: Eleanor M. Duncan-Sittlington c/o Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0373 A&R WHITCOULLS: Earns AU$9.9 Million in Half Year Ended March 3 --------------------------------------------------------------- A&R Whitcoulls Group Holdings Pty Ltd. reported a net profit of AU$9.9 million for the half year ended March 3, 2007, a 59% drop from the AU$24.10-million profit booked in the corresponding period a year ago. In a filing with New Zealand Stock Exchange, the company explained that the drop in profit is due to the inclusion in the half year ended March 3, 2006, of gains from the disposal of the its travel retail businesses. In October 2005, the company sold its travel retail businesses in Hong Kong and Australian airports for AUD$22 million and an ongoing payment of AUD$600,000 per year for four years and a further payment of up to AUD$600,000 per year for a further four years. The HY 2006, therefore, included the profits on the sale of the businesses as well its trading result for the six weeks of the financial year prior to the sale of the travel business. "The impacts of the sale of the Travel Business on the HY 2006 net profit result were considerable, increasing the actual result by over AUD$14.8 million," the company tells NZX. "When normalised, A&R Whitcoulls' HY2006 result was AUD$9.2 million." Hence, the company points out, comparing the normalised HY 2006 net profit with the HY 2007 net profit reported shows an increase of 8%, representing the steady growth and turnaround of the A&R Whitcoulls business. The company's total operating revenues decreased 6.7% to AU$233.20 million in HY 2007. A&R Whitcoulls Group Finance Director James Cody said he and the management team had been pleased with the result. "We are very confident about the future growth of A&R Whitcoulls as we pursue a number of new and exciting opportunities for the business," said Mr. Cody. Mr. Cody further disclosed that the company: -- recently entered joint venture with news agency chain Supanews; -- is in the process of rolling out a new Web site which will provide an enhanced online shopping offer to customers; and -- is also implementing a new world class loyalty program. Melbourne, New Zealand-based A&R Whitcoulls Group Holdings Pty Ltd. -- http://www.arw.co.nz/-- is a specialty retail company operating across New Zealand and Australia. The company comprises a number of brands, which sell a range of products, including books, magazines, stationery, calendars, gifts, greeting cards and digital versatile discs (DVDs). Some of the Company's subsidiaries include A&R Australia Holdings Pty Limited, Angus & Robertson Pty Ltd, Angus & Robertson Bookworld Calendar Club Pty Ltd, Supanews Angus & Robertson Pty Limited, Whitcoulls Finance Trust, Whitcoulls Limited, Whitcoulls Group Limited and WHSmith Hong Kong Limited. On October 18, 2005, A&R Whitcoulls Group Holdings Pty Limited disposed of the travel retail businesses in Hong Kong and Australian airports. * * * On May 8, 2007, the Troubled Company Reporter - Asia Pacific listed A&R Whitcoulls Group's bond with a 9.500% coupon and December 15, 2010, maturity date as a distressed bond. AIR NEW ZEALAND: Kiwijet Warns Filing of Legal Action ----------------------------------------------------- Kiwijet has threatened to file a legal action against Air New Zealand if Air New Zealand keeps insinuating that Kiwijet stole commercially sensitive information, Sarah McDonald of The National Business Review reports. Kiwijet recently disclosed plans to launch a low-cost domestic airline, which Air New Zealand reportedly said to be similar to its own. Launching a low-cost carrier is one of the proposals Air New Zealand is considering, Reuters said citing a memo signed by Nathan Agnew, the airline's general manager. In a statement NBR obtained, Kiwijet said: "We are quite flattered that Air New Zealand wants to launch a low cost carrier themselves. However we must point out that their corporate irresponsibility by making emotional statements that Kiwijet had received confidential information is just foolish and improper." Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. BELLE CHILDREN: Subject to CIR's Wind-Up Petition ------------------------------------------------- A wind-up petition against Belle Children Wear Company Ltd. was filed by the Commissioner of Inland Revenue on Feb. 1, 2007. The High Court of Auckland will hear the petition on May 17, 2007, at 10:00 a.m. The CIR's solicitor is: Hi Chong (Sylvia) Ko Telephone:(09) 984 1294 Facsimile:(09) 984 3116 BROKEN YELLOW: Enters Wind-Up Proceedings ----------------------------------------- Broken Yellow Line Ltd. started to liquidate its business on March 28, 2007. Creditors are required to file their proofs of debt by May 14, 2007, to be included in the company's dividend distribution. The company's liquidator is: J. M. Gilbert c/o C & C Strategic Limited Ponsonby, Auckland Telephone:(09) 376 7506 Facsimile:(09) 376 6441 CASTLE SECURITY: Creditors' Proofs of Debt Due by May 18 -------------------------------------------------------- The creditors of Castle Security Ltd. are required to submit their proofs of debt by May 18, 2007, to the appointed liquidators, David Donald Crichton and Keiran Anne Horne. The Liquidators can be reached at: David Donald Crichton Keiran Anne Horne c/o Rebecca Almond Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace PO Box 3978, Christchurch New Zealand Telephone:(03) 379 7929 CLEAR CHANNEL: In Talks with Equity Group on Amended Merger Deal ---------------------------------------------------------------- The board of directors of Clear Channel Communications Inc. is in discussions with the private equity group co-led by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. regarding a possible change in the terms and structure of the proposed merger between an affiliate of the private equity group and Clear Channel. Currently under discussion is a proposal that contemplates: (i) an increase in the merger consideration to be paid to all shareholders from US$39.00 to US$39.20 per share and (ii) the opportunity for each unaffiliated shareholder to elect between cash and stock in the surviving corporation in the merger (up to an aggregate cap equivalent to 30% of the outstanding shares immediately following the merger (or approximately 6% before the merger)). The board of directors rescheduled the Special Meeting of Shareholders to Tuesday, May 22, 2007, at 1:00 p.m., Central Daylight Savings Time, to allow the board of directors sufficient time to complete its discussions with the private equity group, consult with its significant shareholders and further develop the buyer's proposal to issue in the merger equity in the surviving corporation. On May 3, 2007, the board of directors of Clear Channel, with L. Lowry Mays, Mark Mays, Randall Mays and B.J. McCombs recused from the vote, determined not to accept a similar proposal from the private equity group, citing concerns that the change in structure would require a delay in the date of the special meeting of up to 90 days with no certainty that the merger would be approved by the company's shareholders. Since that time, a number of shareholders of Clear Channel, including some of its largest shareholders, have contacted members of the board or its financial advisor and asked the board to delay the date of the special meeting in order to provide them an opportunity to consult with the board on the proposed change in structure and terms. Shareholders of record as of March 23, 2007 will remain entitled to vote at the Special Meeting to be held on May 22, 2007. The proxy cards previously mailed to shareholders remain valid. Shareholders with questions about the merger or how to vote their shares should call the company's proxy solicitor, Innisfree M&A Incorporated, toll-free at (877) 456-3427. About Clear Channel Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * In April 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'B+' from 'BB+'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. CLEAR CHANNEL: Units Ink Asset Purchase Deal with GoodRadio.TV -------------------------------------------------------------- Clear Channel Communications Inc.'s subsidiaries have entered into an assets purchase agreement with GoodRadio.TV LLC for the sale of 187 radio stations, along with the stations' FCC licenses, real property and station contracts. The subsidiaries are Clear Channel Broadcasting Inc., Clear Channel Broadcasting Licenses Inc., CC Licenses LLC, Capstar Radio Operating Company, Capstar TX Limited Partnership, AMFM Radio Licenses LLC, Citicasters Co., Citicasters Licenses LP and Jacor Broadcasting Corporation. GoodRadio.TV will pay approximately US$452 million in cash and will assume certain liabilities, including existing business contracts and licenses with the U.S. Federal Communications Commission. Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * In April 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'B+' from 'BB+'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. CREATIVE EARTH: Liquidator to Receive Claims Until May 18 --------------------------------------------------------- John Managh, the liquidator of Creative Earth Supplies Ltd., requires the company's creditors to file their proofs of debt by May 18, 2007. The company entered wind-up proceedings on April 17, 2007. The company's liquidator is: John Managh Gladstone Chambers 50 Tennyson Street PO Box 1022, Napier New Zealand Telephone/Facsimile: (06) 835 6280 L L DISTRIBUTORS: Faces Star Personnel's Wind-Up Petition --------------------------------------------------------- Star Personnel Limited filed a wind-up petition against L L Distributors Ltd. on Feb. 13, 2007. The petition will be heard before the High Court of Auckland on May 17, 2007, at 10:45 a.m. Star Personnel's solicitor is: C. N. Lord c/o Star Personnel Limited Corporate Collections Limited 187 Mt Eden Road Mt Eden, Auckland New Zealand MCKELLAR PROPERTY: Subject to CIR's Wind-Up Petition ---------------------------------------------------- An application to wind up the operations of McKellar Property Services Central Ltd. was filed by the Commissioner of Inland Revenue on March 21, 2007. The High Court of Wellington will hear the petition on May 15, 2007, at 10:00 a.m. The CIR's solicitor is: Martyn Robert Edward Cherry c/o Technical and Legal Support Group Wellington Service Centre New Zealand Post House, 1st Floor 7-27 Waterloo Quay PO Box 1462, Wellington New Zealand Telephone:(04) 890 1060 Facsimile:(04) 890 0009 METROSTYLE LTD: Undergoes Liquidation Proceedings ------------------------------------------------- On April 16, 2007, Metrostyle Ltd. commenced liquidation proceedings. Creditors are required to file their proofs of debt by May 31, 2007, to be included in the company's dividend distribution. The company's liquidators are: Stephen John Tubbs Warren Michael Johnstone c/o Michelle Bennett BDO Spicers Spicer House, Level 6 148 Victoria Street, Christchurch New Zealand Telephone:(03) 379 5155 Facsimile:(03) 353 5526 e-mail: michelle.bennett@chc.bdospicers.com R V FORESTRY: Wind-Up Petition Hearing Set for May 14 ----------------------------------------------------- The High Court of Rotorua will hear a petition to wind up the operations of R V Forestry Ltd. on May 14, 2007, at 10:45 a.m. The petition was filed by the Commissioner of Inland Revenue on April 3, 2007. The CIR's solicitor is: Eleanor M. Duncan-Sittlington c/o Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0373 VICS PAINTING: Court Taps Whittfield and Finnigan as Liquidators ---------------------------------------------------------------- On April 12, 2007, the High Court at Auckland appointed John Trevor Whittfield and Peri Micaela Finnigan as the liquidators of Vics Painting and Decorating Ltd. Creditors are required to file their proofs of debt by May 31, 2007, to be included in the company's dividend distribution. The Liquidators can be reached at: John Trevor Whittfield Peri Micaela Finnigan McDonald Vague PO Box 6092, Wellesley Street Post Office Auckland, New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz ===================== P H I L I P P I N E S ===================== APC GROUP: Sycip Gorres Velayo Raises Going Concern Doubt --------------------------------------------------------- Marydith C. Miguel at Sycip Gorres Velayo and Co. raised significant doubts on APC Group, Inc.'s ability to continue as a going concern. The auditor cited the company's recurring losses arising principally from the losses of PhilCom and PhilCom Corporation, which affected the ability of both companies to service their maturing obligations on a timely basis. In addition, the company's consolidated current liabilities exceeded its consolidated current assets as of December 31, 2005, and 2004. Further, the restructuring of the long-term debt of the two PhilCom entities are still under negotiation with the creditors. Net loss for the year ending Dec. 31, 2006, amounted to PHP790.2 million compared to PHP874.7 million in 2005. Revenues in 2006 amounted to PHP774.3 million compared to PHP739.8 million in 2005, an increase of PHP34.5 million. Cost and expenses dramatically went down from PHP1.2 billion in 2005 to PHP994.1 million in 2006. The decrease of PHP217.7 million was brought about by lower provision for doubtful accounts of Philcom. Also, the 2005 numbers include petroleum trading costs of PHP65.4 million. Other charges amounted to PHP550.6 million in 2006 compared to PHP395.8 million in 2005. The increase of PHP154.8 million was due to net additional accrual of interest on loans of Philcom -- PHP44.4 million, higher provision for impairment loss on property and equipment -- PHP109.3 million, partially offset by higher foreign exchange gain from foreign denominated loans of Philcom arising from the strengthening of the peso of PHP72.3 million. Total assets amounted to PHP3.5 billion as of December 31,2006, a decrease of PHP43.0 million, which was due to the decrease in the carrying value of property and equipment due to depreciation and impairment losses -- PHP379.5 million, partially offset by the increase in receivables of Philcom from foreign traffic -- PHP312.1 million and increase in cash of PHP52.3 million. Current liabilities increased by PHP732.5 million to PHP10.4 billion in 2006. The increase was due to the additional accruals for interest and penalties on Philcom loans of PHP642.9 million, increase in traffic settlements payable of Philcom -- PHP338.3; partially offset by the decrease in the dollar denominated long-term debt of Philcom due to the appreciation of the peso -- PHP145.3 and liabilities from discontinued operations -- PHP36.0 million. Capital deficiency as of December 31, 2006. amounted to PHP10.7 billion, an increase of PHP780.7 million from PHP9.9 billion in 2005. The company's 2006 financials can be obtained free at: http://bankrupt.com/misc/apc2006.pdf APC Group, Inc., was incorporated on October 15, 1993, with the primary purpose of engaging in oil and gas exploration and development in the Philippines. The company is 46.6% owned by Belle Corporation. APC has investments in telecommunications, a cement project, and manpower outsourcing businesses. ASIA AMALGAMATED: BDO Alba Romeo Raises Going Concern Doubt ----------------------------------------------------------- Donato Danao at BDO Alba Romeo & Co. raised significant doubt on Asia Amalgamated Holdings Corporation's ability to continue as a going concern pointing out that the company has been incurring losses for the past years and has reported deficit as of Dec. 31, 2006. The company suffered a loss of PHP95.62 million for the year ended Dec. 31, 2006, that increased its deficit to PHP740.68 million in 2006. Revenue earned for the year 2006 amounted to PHP3,649 representing interest income of bank deposits, a decrease of PHP7.38 million when compared to the revenue in 2005, which consisted mainly of interest income. Consolidated expenses for the year ended Dec. 31, 2006, stood at PHP95.62 million. The greater part of the expenses is from the impairment loss provided relative to the company's financial assets, particularly receivables in the amount of PH94.00 million. The company's 2006 financials are available for download here: http://bankrupt.com/misc/AsiaAmalgamated2006.pdf Asia Amalgamated Holdings Corporation was originally incorporated as Sulu Sea Development Corporation on October 7, 1970 and later changed its name to Asia Amalgamated Holdings Corporation after majority ownership transferred from the National Development Corporation to the present majority stockholders. During the first years of its operation as an investment holding company, Asia Amalgamated has made significant investments in various businesses such as financial and banking services, distribution of household water filtration equipment and industrial wastewater treatment, water transport services and non-life insurance brokerage. The company has incorporated four subsidiaries namely: (1) Ecology Savings Bank, Inc., (2) Unikleen International Corporation, (3) Marilag Transport Systems, Inc., and (4) ESBI Insurance Brokers, Inc. The economic crisis in the late 1990s adversely affected the company's main affiliate and business client, the Uniwide Group, and ultimately, the company itself. From 1998 until the present, the company's subsidiaries ceased operations one by one due to continued financial losses. BANCO DE ORO: Appoints Dy As Executive Vice President ----------------------------------------------------- Banco De Oro Universal Bank has promoted its controller Lucy Co Dy to the position of executive vice president. The promotion is subject to the approval of the Bangko Sentral ng Pilipinas. Banco de Oro Universal Bank -- http://www.bdo.com.ph/-- provides a wide range of corporate, commercial and retail banking services in the Philippines, which include traditional loan and deposit products, as well as treasury, trust banking, investment banking, cash management, insurance, remittance, retail cash cards and credit card services. Banco de Oro is a member of the SM Group of Companies, one of the Philippines' largest conglomerates, and is currently ranked among the top 10 banks in the Philippines in terms of assets, capital, deposits and loans. Its asset quality indicators (non- performing loans & non-performing assets) are among the lowest in the industry. * * * The Troubled Company Reporter - Asia Pacific reported that, on May 4, 2007, Moody's Investors Service affirmed the bank's D bank financial strength rating. The TCR-AP reported on November 9, 2006 that Fitch Ratings affirmed the ratings of Banco De Oro Universal Bank, as follows: * Individual 'C/D', and * Support '3' BENGUET CORP: Insolvency Causes Going Concern Doubt ---------------------------------------------------- Jaime F. Del Rosario at Sycip Gorres Velayo and Co. raised significant doubt on Benguet Corporation's ability to continue as a going concern saying that the group has incurred cumulative losses of PHP4.6 billion and PHP4.2 billion in 2006 and 2005. The company booked a capital deficiency of PHP2.2 billion and PHP1.9 billion as of December 31, 2006, and 2005, respectively. The group's current liabilities exceeded its current assets by PHP3.6 billion and PHP3.4 billion as of December 31, 2006, and 2005, respectively. In addition, the group was unable to pay its maturing bank loans and related interests. Consolidated net loss for the year ended Dec. 31, 2006, amounted to PHP358.0 million, 36% higher than the net loss of PHP270.0 million in 2005 but substantially lower than the net loss of PHP793.0 million in 2004. The loss for the period under review include non-cash provision for inventory losses of PHP30.0 million, full depreciation of MCO mine development costs of PHP19.0 million and cost of sharebased payment of PHP19.0 million. These contributed to higher 2006 net loss this year. The company's consolidated operating revenues dropped by 18% in 2006 to PHP257.0 million from PHP307.0 million in 2005 and PHP296.0 million in 2004. The decline is due to lower volume of chromite sold and gold production from ACMP. Provision for income tax amounted to PHP51.0 million in 2006, higher than PHP5.0 million in 2005 but significantly lower than the PHP568.0 million in 2004 mainly due to deferred tax assets written-off in 2004. The company's 2006 financials are available for download at: http://bankrupt.com/misc/benguet2006.pdf Benguet Corporation -- http://www.benguetcorp.com/-- was organized to primarily engage in gold mining. It expanded into chromite and copper production, and then into the fields of general engineering and industrial construction, agriculture, shipping, banking and finance, real estate and forestry-based ventures. CHINA BANKING: To Divest Its Entire Stake in First Sovereign ------------------------------------------------------------ China Banking Corp.'s board of directors have approved the sale of First Sovereign Asset Management, Inc., the bank's wholly owned special purpose vehicle, the bank said in a corporate disclosure to the Philippine Stock Exchange. The bank pegged the price at PHP33.5 million for its entire stakeholding in First Sovereign. The bank also said that the respective buyer/s should also shoulder the capital gains tax and documentary stamp tax that may be incurred in connection with such sale. In a statement of condition lodged with the Philippine Stock Exchange, the bank reports total assets of PHP163,741,988,429, total liabilities of PHP140,497,884,503 and total capital of PHP23,244,103,926 as of Mar. 31, 2007. China Banking Corporation -- http://www.chinabank.com.ph/-- is the first privately-owned local commercial bank in the Philippines, with products and services including deposits and related services, international banking services, insurance products, loans and credit facilities, trust and investment services, insurance products, and other services such as acceptance of various bill payments and donations to charitable institutions. China Bank has 140 branches and 166 Automated Teller Machines nationwide. * * * The bank's long-term issuer default carries Fitch's BB rating, while it has a C individual rating and a support rating of 4. PETPLANS INC.: Trust Fund Seen to Hit PHP6.35 Bil. By 2017 ---------------------------------------------------------- PETPlans Inc. expects its trust fund to more than double to PHP6.35 billion over the next 10 years, the Philippine Star reports. According to the Star, the figure was based on the assumption of a conservative rate of return of eight percent per annum for the trust fund portfolio, according to the company's amended rehabilitation plan, which was recently approved by a local court. Income contributions from PETPlans are also assumed to come in only on the fifth year. The Star relates that the revised rehab plan, drafted by lawyer and former Securities and Exchange Commission Associate Commissioner Danilo Concepcion, called for the replacement of all pre-need contracts with shares in a unified trust fund called the Enhanced Value Plan. This is expected to result in higher profits for the company, thereby boosting PETPlans' capacity to service the needs of its planholders. The unified trust fund has grown to PHP3.04 billion from only PHP2.6 billion when PETPlans filed for corporate rehabilitation with the court in June last year, the Star says. The pooled fund will be solely and exclusively managed by a competent, experienced, and professional fund manager. According to the report, PetPlan's modified rehabilitation plan is very feasible and will boost the viability of the pre-need business of PET Plans. The company's rehabilitation receiver said that the plan will "also allow PET Plans to apply for a dealer's license and sell new products subject to and in compliance with all the laws, rules and regulations imposed by the SEC on the pre-need industry." The report cites PETPlans President and CEO Lorenzo T. Ocampo as saying that there are no set maturity dates for the EVP and the planholder has the discretion to continue or withdraw from the EVP. All earnings of the fund will be credited to the planholders without PETPlans taking part in the earnings. Additionally, 15% of Pet Plans' net income after tax will be contributed to the EVP fund. The report explains that PETPlans has been a major player in the troubled pre-need industry, and its prudent and quality management has kept its trust fund, liquid and intact despite the large-scale deterioration of the industry. With the court ruling, planholders of plans that are fully paid and have matured may immediately avail of the EVP, or the amount in pesos that the EVP is worth, without any discount. Planholders of pre-need plans that have not yet matured but who wish to avail of their EVP during the first three years from conversion are allowed to do so, but subject to a discount of 30% on the first year, 20% on the second year, and 10% on the third year after conversion. The report further explains that Planholders whose pre-need plans had lapsed before June 27, 2006 are given six months within which to reinstate their plans if allowed by the terms of the plan and if they comply with all requirements for reinstatement. For plans that have lapsed on or after that date, the court-approved plan will not consider them as lapsed. But the pre-termination value of these plans shall be computed on the basis of the premiums paid as of the said date. Founded in 1988, PETPlans, Inc. -- http://www.petplans.com/-- is an ISO-certified pre-need firm that offers education, pension, memorial/life and dollar pension pension plans to customers, with a PHP2.7-billion trust fund with 44% liquidity and PHP140 million in corporate funds and real estate property worth PHP60 million. According to Manila Standard Today, the company decided to voluntarily stop selling new pre-need plans in March 2006 due to the difficulties facing the pre-need industry. PHILODRILL CORP: Reports Net Loss of PHP175.77 Million for 2006 ---------------------------------------------------------------- The Philodrill Corporation reports a net loss of PHP175.77 million for the year ending Dec. 31, 2006, a disappointment in light of the company's PHP2.74 million net profit for the year ending Dec. 31, 2005. This was due to a PHP194.86 million loss on disposal of shares of stock, which wasn't recorded in 2005. Revenues for the year amounted to PHP164.30 million. The Troubled Company Reporter - Asia Pacific reported that after auditing Philodrill's 2005 annual financial statements, Sycip, Gorres and Velayo & Co., raised doubt on the company's ability to continue as a going concern, as its current liabilities exceed current assets by PHP419.2 million as of Dec. 31, 2005. The company also had difficulty meeting its obligations to creditor banks. As of Dec. 31, 2006, the company had total current assets of PHP131.25 million against total current liabilites of PHP176.40 million. This time, however, the auditors did not raise significant going concern doubt. Total assets amounted to PHP1.55 billion and total equity of PHP1.37 billion as of Dec. 31. Headquartered in Mandaluyong City, Philippines, -- http://www.philodrill.com-- The Philodrill Corporation was registered with the Philippine Securities and Exchange Commission on June 26, 1969, as an oil exploration and production company. In 1989, realizing the need to balance the risk associated with its petroleum activities, the company changed its primary purpose to that of a diversified holding company while retaining petroleum and mineral exploration and development as one of its secondary purposes. The company, which is operating in only one business segment, has three associates with one engaged in real estate and the others in financial services. The company and its associates have no geographical segments as they were incorporated and are operating within the Philippines. RIZAL COMMERCIAL: Forecasts PHP2.5 Billion Net Profit in 2007 ------------------------------------------------------------- Rizal Commercial Banking Corp. is eyeing to end 2007 with a 25% growth in net profit to PHP2.5 billion from PHP2.1 billion in 2006, Business Mirror reports. According to the Mirror, RCBC Chief Executive Lorenzo V. Tan said that the growth would be fueled by the bank's efforts to further intensify its consumer lending business, which covers housing, auto and salary loans. Mr. Tan says that the bank's goal is to grow its loan books by 40% percent. The Mirror report says that the bank is also planning on expanding its ATM network and opening 15 new branches outside Metro Manila. The report also says that the bank's expansion would be supported by the PHP4.93-billion proceeds it generated from the follow-on offering of new shares sold through the stock market. The Troubled Company Report - Asia Pacific reported on Apr. 4, 2007 that Rizal Commercial Banking Corporation registered a PHP2.053 billion net profit for the year ended December 31, 2006, a 63.04% growth from the restated net income of PHP1.259 billion in 2005. Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the bank's foreign exchange exposure. * * * The Troubled Company Reporter - Asia Pacific reported that, on May 4, 2007, Moody's Investors Service affirmed the bank's E+ bank financial strength rating. On November 2, 2006, the TCR-AP reported that Fitch Ratings has assigned a final rating of B- to Rizal Commercial Banking Corporation's hybrid issue of up to US$100 million. The rating action follows the receipt of final documents conforming to information previously received. The TCR-AP reported on October 24, 2006, that Standard & Poor's Ratings Services assigned its CCC rating to Philippines' Rizal Commercial Banking Corp's (RCBC; B/Stable/B) US$100 million non- cumulative step-up callable perpetual capital securities. SAN MIGUEL: Plans on Entering into Nonfood Business --------------------------------------------------- San Miguel Corp. plans to invest in new businesses, including power generation and transmission, mining, water and infrastructure, the Business Mirror reports. The Mirror, citing sources familiar with the plan, says that upon recommendation of SMC's financial advisor Goldman Sachs, the move was approved by the board of directors in a meeting on Apr. 12, 2007. The Mirror, however, clarifies that San Miguel would still need to do further studies and feasibility analysis to pinpoint the key opportunities in the proposed new businesses. The Mirror also reports that the company would seek permission from stockholders to go and invest in the new businesses possibly during the company's annual stockholders' meeting on June 19. 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: Pays Out PHP1.60 Per Share Dividends ------------------------------------------------ Union Bank of the Philippines will be paying out a PHP1.60 per share cash dividend, the bank said in a corporate disclosure with the Philippine Stock Exchange. The record and payment dates will be set when the bank receives confirmation and approval from the Bangko Sentral ng Pilipinas. The Troubled Company Reporter - Asia Pacific reported on Apr. 23, 2007 that Union Bank of the Philippines posted a net income of PHP2.51 billion for the year ending Dec. 31, 2006, 8.81% or PHP0.24 billion lower than the PHP2.76 billion registered in 2005. 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. The Troubled Company Reporter - Asia Pacific reported that, on May 4, 2007, Moody's Investors Service affirmed the bank's D bank financial strength rating but changed its outlook from stable to negative. Fitch Ratings affirms Union Bank of the Philippines' ratings at individual C/D and support 4 after a review of the bank. UNIWIDE HOLDINGS: 2006 Balance Sheet Upside Down By PHP1.89 Bil. ---------------------------------------------------------------- Uniwide Holdings, Inc. registered a PHP324.68 million net loss for the year ended 2006, a 60.85% decrease from the recorded net loss of PHP829.4 million in 2005, the company said in its results report lodged with the Philippine Stock Exchange. The improvement in net loss resulted from the recognition of impairment loss on certain financial assets in 2005 and the optimization of operating expenses in 2006. Year 2006 marked the fourth year of the Uniwide Group's Rehabilitation Plan. As it closed the year, the company registered a consolidated gross revenues of PHP154.95 million, a decrease of 79.62% from the reported gross revenue of PHP760.17million in 2005. The substantial decrease is attributed to the gain on dacion of properties of about PHP608.5 million that was recorded for the year 2005. Rental income for the year slightly decreased by 7.75% from the 2005 while franchise substantially decreased by 75% due to the request of the Bargains Specialist, Inc, a third franchise, to reduce the franchise fee starting year 2006 from PHP2 million to PHP500,000 due to the closure of its San Pedro Branch in July 2005. For the year 2006, miscellaneous income increased by 2,036% due to the recorded refund from Meralco amounting to PHP17.6 million. Operating expenses likewise decreased by 70% to PHP484.47 million from PHP1.62 billion in 2005. The decrease was significantly affected by the recognition of provision for impairment losses on certain financial assets due to the full adoption of new accounting standards in year 2005, of about PHP1.30 billion provision compared with PHP185.75 million in 2006, or a 85.74% decrease. On the other hand, regular operating expenses decreased by 6.18% due to cash savings and cost cutting measures that UW is continuously implementing. As of Dec. 31, 2006, consolidated assets amounted to PHP3.09 billion, while total liabilities including loans payable of PHP1.68 billion, were recorded at PHP4.98 billion giving the company a capital deficiency of PHP1.89 billion. Aris Malantic at Sycip Gorres Velayo & Co. raised significant doubt on the group's ability to continue as a going concern, pointing out the group's continued losses and capital deficiency. The company's 2006 financials are available for free at: Uniwide Holdings, Inc., was incorporated in the Philippines and is a major subsidiary of Uniwide Sales, Inc., a holding company wholly owned by the Gow family. The company was organized in 1994 as the franchiser of USI and Uniwide Sales Warehouse Club stores. The company also engages in real estate operations primarily through a subsidiary, Uniwide Sales Realty and Resources Corp. USRRC is involved in the acquisition, development, holding and leasing of land and buildings used as sites for the warehouse clubs and department stores. On the other hand, another subsidiary, Naic Resources & Development Corporation engages in, operates, conducts, manages and carries on the business of a general amusement, recreation and entertainment enterprise. Uniwide filed for rehabilitation in June 1999, and the Securities and Exchange Commission approved its rehabilitation plan in 2000. Under the plan, the company will convert 50% of its unsecured debt into 15-year convertible notes redeemable anytime at its convenience, while the remaining 50% would be restructured into a 10-year loan with 0% interest and a 3-year grace period; payment will begin on the fourth year. * Philippine Debt Yields Ease on Rating Upgrade Expectations ------------------------------------------------------------ Philippine debt yields eased 2-5 basis points on average in the secondary market following a report Standard & Poor's may upgrade the country's ratings outlook after the May 14 congressional elections, Reuters reports. Traders said government debt yields have fallen about 10 basis points across the curve and expected debt prices to get support in days ahead from continued favourable outlook on inflation and the outlook upgrade talk, Reuters relates. Reuters cites BusinessMirror daily newspaper as saying that S&P had hinted of a possible outlook upgrade for the Philippines, which would make it cheaper for the country to borrow abroad. Reuters explains that Philippine inflation broke a 12-month downtrend in April, data showed last week, but the central bank said prospects remained favourable. According to Reuters, an S&P team visited the Philippines in the first quarter for talks with government officials ahead of its review of the country's sovereign ratings and there is market talk the results of the review would be released after the May 14 polls. The report also explains that the Philippines, which relies on foreign and domestic borrowing to fund its budget deficit and pay maturing debts, is rated at three notches below investment grade by S&P at BB- with a stable outlook. Fitch rates the Philippines two notches below while Moody's Investors Service is at four notches below. The report adds that Fitch said in March it would keep its current credit rating on the Philippines, adding government revenues needed to keep pace with higher capital spending this year. Traders said market players were also waiting for details of the central bank's plan to allow state pension funds and government owned-companies to deposit funds with it, a move aimed at slowing money supply growth. The report says that the central bank has yet to announce the details on rates to be offered or the size of possible deposits more than two weeks after the scheme was announced. * * * Fitch Ratings, on March 5, 2007, affirmed the Republic of the Philippines' Long-term foreign and local currency Issuer Default ratings at 'BB' and 'BB+', respectively. The agency also affirmed the Short-term IDR at 'B' and the Country Ceiling at 'BB+'. On Jan. 10, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to the Republic of Philippines' (foreign currency BB-/Stable/B, local currency BB+/Stable/B) proposed US$1.0 billion global bond issue maturing in 2032. On Nov. 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= ADVANCED SYSTEMS: 1st Quarter Profit Drops by 53% to SG$492,000 --------------------------------------------------------------- Advanced Systems Automation Limited disclosed consolidated quarterly financial results for the period ended March 31, 2007. Advanced Systems' gross profit went down 53% to SG$492,000 for the year ended March 31, 2007, from the SG$1.03 million booked in 2006. The company's balance sheet as of March 31, 2007, showed working capital deficit with current assets totaling SG$28.66 million and current liabilities totaling SG$31.35 million. As at March 31, 2007, the Group recorded a shareholders' deficiency of SG$5.4 million. A full-text copy of Advanced Systems' financial report for the year ending March 31, 2007, is available for free at: http://bankrupt.com/misc/ADVANCED_SYSTEMS_1Q2007.pdf About Advanced Systems Automation Advanced Systems Automation Limited -- http://www.asa.com.sg/-- is a Singapore-based company that is engaged in the design and manufacture of automatic molding machines and other back-ended assembly equipment for the semiconductor industry. The company's subsidiaries include Avalon Technology Pte. Ltd.; Microfits Pte. Ltd.; Beijing Microfits Precision Electronics Engineering Co., Ltd. and Beijing Advanced Precision Electronics Engineering Co., Ltd., both of which are engaged in the manufacture of precision tools, dies and moulds; Acetech Solutions Ltd.; Advanced Systems Automation, Inc., and Advanced Systems Automation (Europe) Limited, which is engaged in the sale and provision of services to the European semiconductor manufacturing market. * * * As reported in the Troubled Company Reporter - Asia Pacific on Aug. 8, 2006, Ernst & Young auditors reported in the company's Annual Report that, "The group has incurred significant losses and has been experiencing severe cash shortage in the past four financial years. The group incurred a net loss of SGD3.4 million for the financial year ended March 31, 2006, and the group's and the company's current liabilities exceeded current assets by SGD20.9 million and SGD22.9 million respectively. As of March 31, 2006, the group and the company were in net shareholders' deficit positions of SGD13.8 million and SGD11.2 million respectively. These matters described above indicate he existence of a material uncertainty, which may cast significant doubt about the group and company's ability to continue as going concerns." Ernst & Young added that the ability of the group and the company to continue as going concern is dependent on the company's completion of the proposed renounceable rights issue, disposal of non-core assets and business restructuring. SEA CONTAINERS: Trustee Amends List of Unsecured Creditors Panel ---------------------------------------------------------------- Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, informed the U.S. Bankruptcy Court for the District of Delaware that The Bank of New York has resigned from the Official Committee of Unsecured Creditors of Sea Containers, Ltd. and its debtor- affiliates. The U.S. Trustee has appointed HSBC Bank USA, N.A., in its capacity as indenture trustee, to fill in the vacant post. The Creditors Committee is currently composed of: 1. HSBC Bank USA, National Association 452 Fifth Avenue New York, NY 10018-2706 Attn: Sandra E. Horwitz Phone: (212) 525-1358 Fax: (212) 525-1300 2. HSH Nordbank AG Gerhart-Hauptmann-Platz 50 Hamburg, Germany D20095 Attn: Jorg-Rainer Kalz Phone: (9) 40-3333-13561 Fax: (9) 40-3333-13561 3. Trilogy Capital LLC 2 Pickwick Plaza Greenwich, CT 06830 Attn: Barry D. Kupferberg Phone: (203) 971-3420 Fax: (203) 971-3499 4. Dune Capital LLC c/o Dune Capital Management LP 623 Fifth Avenue, 30th Floor New York, NY 10022 Attn: Andrew B. Cohen Phone: (212) 301-8308 Fax: (646) 885-2473 5. Mariner Investment Group, Inc. 500 Mamaroneck Avenue, Suite 101 Harrison, NY 10528 Attn: Adam S. Cohen Phone: (914) 798-4234 Fax: (914) 777-3363 About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered inBermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On October 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea ontainers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. The Debtors' exclusive period to file a plan expires on June 12, 2007. Their exclusive period to solicit acceptances expires on Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 14 and 13; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Wants to Sign US$176 Million Commitment Letter -------------------------------------------------------------- Sea Containers, Ltd. and its debtor-affiliates ask permission from the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to enter into a commitment letter with certain debtor-in-possession lenders. Pursuant to a commitment letter dated May 3, 2007, Caspian Capital Partners LP, Dune Capital LP and Trilogy Capital LLC have committed to provide the Debtors with a senior secured debtor-in-possession credit facility of up to US$176,500,000, Mark Wilson, senior vice president and CEO of SCL, informs Judge Carey. Caspian Capital will act as the administrative and collateral agent under the DIP Facility. The DIP Facility consists of a term loan of up to S$151,500,000, and a US$25,000,000 revolving credit facility. The Term Loan provides for a non-amortizing term loan available in a single drawing on the closing date. The Debtors intend to use the proceeds of the Term Loan to help fund repayment of an existing debt securitization facility involving Sea Containers SPC Ltd., a non-debtor, "bankruptcy remote" subsidiary organized and existing under the laws of Bermuda. The Repayment will prevent foreclosure of SPC by its lenders who have alleged a default under that the SPC Securitization Facility. The proceeds of the Revolving Credit Facility will be used to fund operating and administrative expenses during the Debtors' Chapter 11 cases. The Commitment Letter also includes an agreement by SCL to pay certain expenses and to indemnify the DIP Lenders and the Administrative and Collateral Agent in certain circumstances, Mr. Wilson notes. SCL intends to pay all costs and expenses of: -- the DIP Lenders relating to the structuring of the proposed financing for SCL or SPC, including negotiation, documentation and administration of the Commitment Letter and the DIP Credit Documents; -- the DIP Lenders relating to the enforcement and preservation of the respective DIP Agent's and DIP Lenders' rights and remedies under and in connection with the Commitment Documents and DIP Credit Documents; and -- negotiating, documenting and obtaining court approval of SCL's entry into the Commitment Documents, the DIP Credit Documents and other related transactions. Mr. Wilson maintains that the DIP Lenders' proposal offers attractive financing terms, including no cash upfront fees or break-up fees and a solution to the Debtors' dispute with their Noteholders. "The DIP Lenders' proposal will allow the Debtors to lock in permanent financing, thereby enabling the Debtors and their advisors to focus their efforts going forward on key restructuring initiatives and developing a confirmable Chapter 11 plan," Mr. Wilson says. Moreover, the structure of the proposal ensures that the bulk of the covenants and other obligations under the Facility will relate to assets and operations of SCL rather than SPC, who does not have direct control over its primary assets, the containers leased or managed by GE SeaCo. A full-text copy of the Caspian Commitment Letter and the DIP Facility contemplated under the Commitment Letter is available for free at http://researcharchives.com/t/s?1eac Under the DIP Facility contemplated under the Caspian Commitment Letter, SPC Holdings Ltd. will guarantee the payment of the DIP Obligations as they become due. SCL's DIP Obligations will be secured by a perfected, first priority security interest in and Lien on: (i) SCL's security interests in SPC Holdings, (ii) all cash and cash equivalents of SCL, and (iii) all amounts received or receivable by SPC Holdings from SPC Holdings and SPC. All DIP Obligations will be granted a superpriority administrative expense claim under Section 364(c)(1) of the Bankruptcy Code. The DIP Lenders' commitment to provide the proposed financing is subject to the Bankruptcy Court's entry of a final order on or before: (i) May 18, 2007, approving and authorizing SCL's entry into the Commitment Documents; and (ii) June 18, 2007, approving and authorizing SCL's entry into the DIP Credit Documents and other related transactions. Additionally, the Debtors ask the Court for permission to: (a) use estate funds to pay certain out-of-pocket costs and expenses of the DIP Lenders, including the reasonable fees and expenses of their legal and other advisors; and (b) provide indemnification to the DIP Lenders and the DIP Agent in their capacities under the contemplated DIP Credit Facility. The Commitment Letter represents the culmination of a lengthy negotiating process, during which both SCL and Sea Containers Services Limited sought the input of their creditors committees on a frequent, sometimes daily, basis, Mr. Wilson maintains. Gibson, Dunn & Crutcher LLP represents the DIP Lenders in the Debtors' cases. Judge Carey will hold a hearing on May 8, 2007, to consider approval of the Debtors' request. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered inBermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On October 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea ontainers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. The Debtors' exclusive period to file a plan expires on June 12, 2007. Their exclusive period to solicit acceptances expires on Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 14 and 13; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Court Okays AP Services as Crisis Managers ---------------------------------------------------------- Sea Containers, Ltd. and its debtor-affiliates obtained authority from the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to employ AP Services LLC to provide them certain temporary employees and interim management to oversee and manage their restructuring efforts. As interim management for the Debtors, Laura Barlow, the Debtors' chief financial officer and chief restructuring officer, is expected to: -- manage the Debtors' financial, treasury and tax functions; -- oversee negotiations with potential acquirers of the Debtors' assets; -- oversee management of the "working group" professionals who are assisting the Debtors in the reorganization process or who are working for the Debtors' various stakeholders to improve coordination of their effort and individual work product to be consistent with the Debtors' restructuring goal; -- work with the Debtors to further identify and implement both short-term and long-term liquidity generating initiatives; -- oversee the Debtors' execution of its planned disposal program in respect of various non-core assets; -- oversee the Debtors' management of the relationship with its stakeholders and their advisers and in meeting its requirements to provide information to those stakeholders; -- oversee the Debtors' negotiation and restructuring of its current indebtedness with its key stakeholders, including liaising and negotiating with the different stakeholders; and -- manage other matters as may be requested by the Debtors that fall within APS Services' expertise and that are mutually agreeable. APS Services will be paid on an hourly rate basis: Assisting Member Hourly Rate ---------------- ----------- Managing Directors GBP485-GBP545 Directors GBP415-GBP440 Vice Presidents GBP315-GBP360 Associates GBP220-GBP285 Ms. Barlow assures the Court that AP Services does not hold or represent any interest adverse to the Debtors' estate, and is deemed a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered inBermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On October 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea ontainers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. The Debtors' exclusive period to file a plan expires on June 12, 2007. Their exclusive period to solicit acceptances expires on Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 14 and 13; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000) =============== T H A I L A N D =============== ADVANCE PAINT & CHEMICAL: Elects 2 New Directors for 2007 --------------------------------------------------------- Advance Paint & Chemical (Thailand) PCL shareholders elected two directors, and appointed auditors for the year 2007 during their recent ordinary meeting. During the meeting, the shareholders adopted a resolution to re- elect two directors who retired by rotation: * Mr. Pricha Punnakitikashem * Mr. Vijit Sriyunyongwat The shareholders resolved to appoint accounts from ANS Audit Co. Ltd. as auditors for fiscal year 2007. Annual remuneration for auditors is at most THB390,000. Headquartered in Bangkok, Thailand, Advanced Paint & Chemicals Public Company Limited manufactures and distributes decorative paint, heavy-duty coating, and industrial painting under Dutch boy, and Seven Stars brand names. It has assets of THB124.83 million in December 2005. The company signed a 30-year contract with Sherwin-Williams Company starting from June 1, 1987, for the use of brand names and technology. Advance Paint is currently undergoing business rehabilitation and is categorized under the Non-Performing Group Sector of the Stock Exchange of Thailand. Going Concern Doubt The Troubled Company Reporter - Asia Pacific reported on December 7, 2006, that Atipong AtipongSakul of ANS Audit Company Ltd raised doubt on Advanced Paint & Chemical (Thailand) Pcl's ability to continue operations as a going concern after auditing the company's financial results for the third quarter and nine- month periods ended September 30, 2006. According to Mr. Atipong, the company continues to operate on recurring losses and has current liabilities substantially in excess of current assets. "The company's ability to continue operations as a going concern is dependent on its ability to generate sufficient profit and cash flows to serve its debts," he added. THANACHART CAPITAL: Elects 4 Directors -------------------------------------- Thanachart Capital PCL's shareholders elected four directors who retired by rotation for another term during their annual general meeting held on April 27, 2007. During the meeting, the Company re-appointed these directors: * Mr. Banterng Tantiwit * Mr. Pimol Rattapat * Mr. Somkiat Sukdheva * Ms. Suchada Pavananunt Headquartered in Bangkok, Thailand, Thanachart Bank PCL provides both personal and corporate banking services. The personal banking includes fixed, current, foreign currency and savings deposits, residential new home loans and residential refinancing home loans. The corporate banking offers commercial loans and other financial services to its business clients. The Bank also offers services to its customers to make money transfers via automated teller machines (ATMs) and via phones. As of December 31, 2006, TBANK operated 133 branches and 242 ATMs, as well as 46 foreign exchange centers throughout the country. On April 2, 2007, Fitch Ratings (Thailand) gave TBANK these ratings: * A- National Long-term rating * F2 Short-term rating * D Individual rating and * 5 Support rating TMB BANK: Elects Directors & Auditors for 2007 ---------------------------------------------- TMB Bank PCL shareholders re-elected five directors who are due to retire by rotation, and appointed auditors for the year 2007 during their Annual General Meeting held on April 27, 2007. During the meeting, the shareholders re-elected: * Mr. Bodi Chunnananda (Independent director) * Mr. Christopher John King (Independent director) * Mr. Rajan Raju Kankipati * Mr. Subhak Siwaraksa * Mr. Kraithip Krairiksh The shareholders also appointed these accountants from KPMG Phoomchai Audit Ltd. as auditors for the year 2007: * Mr. Supoj Singsaneh * Mr. Winit Silamongkul * Mrs. Wilai Buranakittisophon The auditing fee is THB7.7 million, and the special audit fee as required by the Bank of Thailand is THB900,000. The appointment of auditors for the Bank's overseas branches was also approved during the meeting. Three auditors were selected: * KPMG Phoomchai Audit Ltd. as auditor for the Cayman Islands branch, with an audit fee of THB121,000; * KPMG Hong Kong Co. Ltd. as auditor for the Hong Kong branch with an audit fee of HKD184,800 or THB851,596; and * KPMG Laos Co. Ltd. as auditor for the Vientiane Branch with audit fee of USD5,786 or THB208,296. 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. On May 4, 2007, Moody's Investors Service retained these ratings for TMB: * Bank Financial Strength Rating is at D-. * Foreign currency deposit ratings remain at Baa2/P-2. Standard & Poor's Ratings Services gave TMB Bank's US$200- million hybrid Tier 1 securities a 'BB' rating. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------- ------ ------ ------------ AUSTRALIA Austar United Communications Limited AUN 411.16 -43.72 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1637.04 -1443.69 Intellect Holdings Limited IHG 15.01 -0.83 KH Foods Ltd KHF 62.30 -1.71 Lafayette Mining Limited LAF 78.17 -127.82 Life Therapeutics Limited LFE 59.00 -0.38 Orbital Corp. Ltd. OEC 14.01 -4.86 RMG Ltd. RMG 22.33 -2.16 Tooth & Co. Ltd. TTH 99.25 -74.39 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Chang Ling Group 561 77.48 -76.83 Chengdu Book Digital Co. Ltd. 600083 21.50 -3.07 China Kejian Co. Ltd. 35 54.71 -179.23 China Liaoning International Cooperation (Group) Ltd 638 20.12 -42.96 Datasys Technology Holdings Ltd 8057 14.1 -2.07 Dynamic Global Holdings Ltd. 231 39.43 -2.21 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Fujian Sannong Group Co. Ltd 732 44.23 -92.62 Guangdong Hualong Groups Co., Ltd 600242 26.60 -33.10 Guangdong Kelon Electrical Holdings Co Ltd 921 685.74 -96.88 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangxia (Yinchuan) Industry Co. Ltd. 557 62.19 -115.50 Hainan Dadonghai Tourism Centre Co., Ltd 613 19.74 -5.81 Hainan Overseas Chinese Investment Co., Ltd 600759 32.70 -15.28 Hans Energy Company Limited 554 85.00 -0.49 Heilongjiang Black Dragon Co., Ltd 600187 121.30 -74.45 Hualing Holdings Limited 382 262.90 -32.17 Huda Technology & Education Development Co. Ltd. 600892 17.12 -0.39 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Hunan Hengyang 600762 68.45 -7.20 Innovo Leisure Recreation Holdings Ltd. 703 13.37 -3.89 Junefield Department Store Group Limited 758 16.80 -6.34 Loulan Holdings Limited 8039 13.01 -1.04 New World Mobile Holdings Ltd 862 295.66 -12.53 New City China 456 242.25 -28.46 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd. 1013 18.52 -3.34 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenzhen China Bicycle Co., Hlds. Ltd. 17 39.13 -224.64 Shenzhen Dawncom Business Tech. and Service Co., Ltd. 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co., Ltd. 34 95.27 -44.65 Shijiazhuang Refining-Chemical Co., Ltd 783 357.75 -84.57 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Success Information Industry Group Co. 517 99.92 -14.29 Suntek Technology Co., Ltd 600728 48.81 -16.09 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Tianyi Science & Technology Co., Ltd 600703 53.41 -28.73 Tibet Summit Industry Co., Ltd 600338 90.92 -4.05 UNIDA Co., Ltd. 600181 136.43 -12.38 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xiamen Eagle Group Co., Ltd 600711 18.82 -2.74 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 Zhejiang Haina Science & Tech Co., Ltd. 925 21.43 -33.33 INDIA Andhra Cement Ltd. ANDC 58.94 -13.48 Andrew Yule & Co. Ltd ANY 86.39 -12.47 Ashima Ltd. ASHM 101.78 -35.04 ATV Projects India Ltd. ATV 68.25 -30.17 Bagalkot Udyog Ltd. BUL 20.55 -0.63 Baroda Rayon Corp. Ltd. BR 41.16 -26.62 Birla VXL Ltd. NVXL 98.77 -14.62 CFL Capital Financial Services Ltd CEATF 25.42 -47.32 Core Healthcare Ltd. CPAR 214.36 -199.02 Deccan Aviation Pte. Ltd. DECA 86.94 -2.83 Dunlop India Limited DNLP 52.75 -65.30 Fairfield Atlas Ltd. ATG 20.03 -0.15 GKW Ltd. GKW 35.75 -13.52 Global Broadcast News Ltd GBN 18.13 -1.27 Gujarat Sidhee Cement Ltd. GSCL 51.12 -13.01 Himachal Futuris HMFC 574.62 -38.68 Hindustan Organic Chemicals Limited HOC 99.56 -27.65 HMT Ltd. HMT 238.05 -288.85 IFCI Ltd. IFCI 2566.01 -727.71 JCT Electronics Ltd. JCTE 118.28 -165.74 Jenson and Nicholson (India) Ltd. JN 15.41 -77.32 JK Synthetics Ltd. JKS 24.04 -1.42 Kinetic Engineering Ltd. KNEL 72.82 -5.40 Kothari Sugars and Chemicals Ltd. NKTSG 43.24 -29.24 Lloyds Steel Industries Ltd. LYDS 380.94 -69.93 LML Ltd. LML 81.21 -11.89 Mafatlal Ind. MFI 95.67 -85.81 Malanpur Steel Ltd. HDC 82.08 -52.01 Modern Threads MRT 78.18 -20.71 Mysore Cements Ltd. MYC 82.02 -14.57 Mysore Kirloskar Ltd. MK 23.71 -3.04 Panchmahal Steel Ltd. PMS 51.02 -0.33 Phil Corporation Ltd. NPPI 22.13 -4.96 RPG Cables Ltd. NRPG 51.43 -20.19 Saurashtra Cement Ltd. SRC 112.31 4.57 Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38 Shree Rama Multi Tech Ltd. NSRMT 86.31 -3.90 Shyam Telecom NSHY 147.34 -22.80 Singer India Ltd. SING 12.32 -6.69 SIV Ind. Ltd. NSIV 101.16 -66.27 SpiceJet Ltd. SJET 121.34 -2.75 Shyam Telecom Limited SHY 147.34 -22.80 Tata Teleservices (Maharashtra) Limited NTTLS 653.56 -9.99 Uniflex Cables Ltd UFC 17.22 -5.04 UB Engineering Ltd UBE 47.78 -2.77 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Dharmala Intiland Tbk DILD 197.91 -6.62 Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57 Mulialand Tbk MLND 141.33 -45.99 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 29.08 -5.87 Wicaksana Overseas International Tbk WICO 43.09 -46.36 JAPAN Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Tasco System Co., Ltd 2709 48.45 -14.07 Yakinikuya Sakai Co., Ltd. 7622 79.34 -11.20 KOREA Belco International Co., Ltd 53470 19.89 -5.49 BHK Inc 3990 24.36 -17.38 C&C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 DaeyuVesper Co. Ltd. 41140 19.06 -1.60 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Seji Co., Ltd 53330 37.25 -0.31 MALAYSIA Ark Resources Bhd ARK 25.91 -28.35 Cygal Bhd CYG 58.47 -69.79 Gefung Holdings Bhd GFHB 21.68 -1.74 Lityan Holdings Berhad LIT 22.22 -19.11 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 222.58 -136.17 Olympia Industries Bhd OLYM 272.49 -281.44 Pan Malay Industries PMRI 199.08 -6.30 PanGlobal Berhad PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Sateras Resources Bhd. SRM/4278 44.73 -38.82 Setegap Berhad STG 19.92 -26.88 Sino Hua-An International Bhd HUAAN 184.60 -98.30 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Filsyn Corporation FYN 19.20 -8.83 Gotesco Land, Inc. GO 17.34 -9.59 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 SINGAPORE Compact Metal Industries Ltd. CMI 47.42 -36.47 Falmac Limited FAL 10.51 -2.30 Gul Technologies GUL 155.76 -15.21 HLG Enterprise HLGE 116.77 -8.71 Informatics Holdings Ltd INFO 22.30 -9.14 L & M Group Investments Ltd LNM 56.91 -10.59 Lindeteves-Jacoberg Limited LJ 185.49 -46.43 Pacific Century Regional PAC 1569.35 -88.20 Semitech Electronics Ltd. SEMI 11.01 -0.23 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Daidomon Group PLC DAIDO 12.92 -8.51 Datamat Public Co., Ltd DTM 17.55 -1.72 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***