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/raid1/www/Hosts/bankrupt/TCRAP_Public/070518.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 18, 2007, Vol. 10, No. 98 Headlines A U S T R A L I A A & S BARDENHAGEN: Will Declare First & Final Dividend on June 8 ALCON SECURITY: Final Meeting Set for June 12 D. R. CLARKE: Names Mervyn Jonathan Kitay as Liquidator EARL TAYLOR: Members' Final Meeting Set for June 1 GUY TUMNEY: Members Resolve to Close Business K.G.J. PTY: Members Resolve to Liquidate Business NEWBOLD NOMINEES: Undergoes Voluntary Liquidation SILVERLEIGH PTY: Placed Under Voluntary Liquidation VOLANT PTY: To Declare First & Final Dividend on May 24 C H I N A & H O N G K O N G ACXIOM CORP: Selling Equity for US$3BB to Silver Lake & ValueAct AGRICULTURAL BANK: To Invest Clients' Funds Abroad via QDII Plan ALCATEL-LUCENT: Signs US$340-Million Contract With China Mobile ALCATEL-LUCENT: Inks US$120MM Contract for China Unicom Projects AMDL INC: Delays Filing of Form 10-Q for Quarter Ended March 31 BALLY TECHNOLOGIES: Taps Bruce Rowe as Biz Development Senior VP CUMMINS INC: Earns US$143 Million in Quarter Ended March 31 PANVA GAS: Moody's Keeps Ba1 Ratings; Outlook Stable * Taiwan Remains Strong Domestic Issuing Market for CDOs * China's Commercial Banks' 1st Qtr. NPLs Total CNY1.16 Trillion I N D I A BAUSCH & LOMB: Inks US$4.5 Bil. Merger Deal with Warburg Pincus BAUSCH & LOMB: US$4.5 Bil. Warburg Deal Cues S&P to Cut Ratings CANARA BANK: Books INR5-Billion Profit in Qtr. Ended March 31 CANARA BANK: May Seek Board's Nod on Dena Merger, Report Says CITY UNION BANK: To Make Preferential Issues to Six Firms CITY UNION BANK: Board to Consider Audited Financials on May 21 CITY UNION BANK: Board Agrees to Split Capital CORPORATION BANK: Earns INR1.18 Million in Qtr. Ended March 31 CORPORATION BANK: Sees Buyouts With Indian Bank and OBC DENA BANK: Canara Merger Talks at Advance Stages, Report Says RYERSON INC: Declares 60 Cents Per Share Dividend Due August 1 I N D O N E S I A GOODYEAR TIRE: Issues 22,727,272 Common Shares at US$33 Each MEDCO ENERGI: In Talks With Kyushu for Geothermal Plant Venture MERPATI NUSANTARA: To Lay off 501 More Workers Starting June MERPATI NUSANTARA: Wants to Postpone Debt Payment to Danamon NORTEL NETWORKS: Reaches Settlement Agreement With OSC Staff TUPPERWARE BRANDS: Board Declares 22 Cents Quarterly Dividend TUPPERWARE BRANDS: To Buy Back Common Shares Up to US$150 Mil. J A P A N AOZORA BANK: Net Profit Decline 32% in Year Ended Mar. 31, '07 BANK OF KYOTO: Books JPY20.36 Billion Net Income in FY2007 DAIEI INC: Buys Back 23,292,700 Type A Shares DAIEI INC: Dissolves Three Subsidiaries EIGHTEENTH BANK: Announces a JPY8.5 Per Share Dividend Payout FRESENIUS AG: Moody's Affirms Ba2 Corporate Family Rating FURUKAWA CO: Appoints Nobuyoshi Soma as President ISUZU MOTORS: Buys Back Type III and IV Preferred Shares ISUZU MOTORS: Net Profit Surges Up to 57% in FY2007 SANYO ELECTRIC: Narrows Bidders for Microchip Operations SANYO ELECTRIC: Less Likely to Default on Bonds SOJITZ CORP: Retains 7% Stake in Coppabella & Moorvale JV * Japan's Major Consumer Finance Companies Hit By Credit Crunch K O R E A SHINWHA INTERTEK: Establishes Shinwha Intertek in Slovakia SPATIALIGHT INC: March 31 Balance Sheet Upside-Down by US$9.3MM TEXCELL-NETCOM: Completes 1,658,334 Common Shares Issuance M A L A Y S I A KAI PENG: Securities Commission Rejects Reform Plan MALAYSIA AIRLINES: Maldives Air Initiates Arbitration Proceeding PROTON HOLDINGS: Asks for More Money to Pay Off Dealers STAR CRUISES: Posts US$79 Million Net Loss in First Quarter 2007 N E W Z E A L A N D BRADRAM EQUITIES: Wind-Up Petition Hearing Set for June 28 CITE DOCUMENT: Fixes June 1 as Last Day for Receiving Claims FRESH CUT: Faces CIR's Wind-Up Petition HUIA DEVELOPMENTS: Creditors' Proofs of Debt Due on June 1 M.M.M. LTD: Court to Hear Wind-Up Petition on May 28 MAYFIELD HOLDINGS: Court Appoints Levin & Jordan as Liquidators MCFALL FARM: Enters Into Voluntary Liquidation PROTECT SECURITY: Names Gavin Richard O'Dea as Liquidator ST VINCENT: Wind-Up Petition Hearing Set for July 12 WORLDSPORT LTD: Subject to PMP Print's Wind-Up Petition P H I L I P P I N E S BANK OF PHIL. ISLANDS: Posts PHP3.2-Bil. Net Income in 1Q 2007 BANKARD INC: Posts PHP16 Million Net Income for First Qtr. 2007 SAN MIGUEL: Planned Spin Off Cues S&P's Negative Watch SAN MIGUEL: Spin-Off Plans Cue Moody's to Review Ba1 Rating S I N G A P O R E LEAR CORPORATION: Picks Wendy Foss as Corporate Secretary PETROLEO BRASILEIRO: Production Drops 0.8% in April REFCO INC: Plan Administrators Want Bar Date Extended to June 29 REFCO INC: Plan Administrators Want Removal Period Extended SCOTTISH RE: Investment View at Neutral, Analyst Says T H A I L A N D ADVANCE AGRO: Records THB181 Million Net Loss in First Quarter ADVANCED PAINT: 1Q 2007 Net Loss Down 52% to THB3.13 Million DAIMLERCHRYSLER: Names Rainer Genes as Mercedes Planning Head DAIMLERCHRYSLER: Earns EUR1.9 Billion in First Quarter 2007 DAIMLERCHRYSLER: No More Acquisition Plans for Now, Zetsche Says * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= A & S BARDENHAGEN: Will Declare First & Final Dividend on June 8 ---------------------------------------------------------------- A & S Bardenhagen Pty Ltd, which is in liquidation, will declare a first and final dividend on June 8, 2007. Creditors are required to file their proofs of debt by June 5, 2007, to be included in the company's dividend distribution. The company's liquidator is: Paul Cook 105 Macquarie Street Hobart, Tasmania 7000 New Zealand Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail: info@pjc.com.au About A & S Bardenhagen A & S Bardenhagen Pty Ltd is in the business of local trucking without storage. The company is located in Tasmania, Australia. ALCON SECURITY: Final Meeting Set for June 12 --------------------------------------------- The members and creditors of Alcon Security Services Pty Ltd will have their final meeting on June 12, 2007, at 11:00 a.m., to hear the liquidator's report about the company's wind-up proceedings and property disposal. The company's liquidator is: Leonard A. Milner Venn Milner & Co. Chartered Accountants Suite 1, 43 Railway Road Blackburn, Victoria 3130 Australia About Alcon Security Alcon Security Services Pty Ltd provides detective, guard, and armored car services. The company is located in Victoria, Australia. D. R. CLARKE: Names Mervyn Jonathan Kitay as Liquidator ------------------------------------------------------- During a general meeting held on April 30, 2007, the members of D. R. Clarke & Co. Pty Ltd decided to voluntarily liquidate the company's business and Mervyn Jonathan Kitay was appointed as liquidator. The Liquidator can be reached at: Mervyn J. Kitay Grant Thornton Western Australian Partnership Level 6, 256 St George's Terrace Perth, Western Australia 6000 Australia EARL TAYLOR: Members' Final Meeting Set for June 1 -------------------------------------------------- Earl Taylor Car Centre Pty Ltd will hold a final meeting for its members on June 1, 2007, at 10:00 a.m. At the meeting, the members will receive the liquidator's report about the company's wind-up proceedings and property disposal. In a report by the Troubled Company Reporter - Asia Pacific, the company went into liquidation on Nov. 10, 2006. The company's liquidator is: W. C. Noye KPMG Level 16, Riparian Plaza 71 Eagle Street Brisbane, Queensland 4000 Australia Telephone:(07) 3233 3111 About Earl Taylor Earl Taylor Car Centre Pty Ltd, which is also trading as West More Centre, is a dealer of motor vehicles. The company is located in Queensland, Australia. GUY TUMNEY: Members Resolve to Close Business --------------------------------------------- The members of Guy Tumney Pty Ltd had their meeting on April 20, 2007, and decided to close the company's business. John William Woods was appointed as liquidator. The Liquidator can be reached at: John W. Woods Wilson Woods & Partners Chartered Accountant 30 Davey Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 4343 About Guy Tumney Guy Tumney Pty Ltd provides service for insurance agents and brokers. The company is located in Tasmania, Australia. K.G.J. PTY: Members Resolve to Liquidate Business ------------------------------------------------- At an extraordinary general meeting held on April 25, 2007, the members of K.G.J. Pty Ltd resolved to liquidate the company's business. Nick Combis of Vincent Chartered Accountants was appointed as liquidator. The Liquidator can be reached at: Nick Combis Vincents Chartered Accountants PO Box 13004, George Street Queensland 4003 Australia Telephone:(07) 3854 4555 About K.G.J. Pty Located in Queensland, Australia, K.G.J. Pty Ltd is an investor relation company. NEWBOLD NOMINEES: Undergoes Voluntary Liquidation ------------------------------------------------- On April 23, 2007, the members of Newbold Nominees Pty Ltd agreed to voluntarily liquidate the company's business and Philip Rundell was appointed as liquidator. The Liquidator can be reached at: Philip Rundell Ferrier Hodgson Level 26, BankWest Tower 108 St Georges Terrace Perth, Western Australia 6000 Australia About Newbold Nominees Located in Western Australia, Australia, Newbold Nominees Pty Ltd is an investor relation company. SILVERLEIGH PTY: Placed Under Voluntary Liquidation --------------------------------------------------- On April 27, 2007, the members of Silverleigh Pty Ltd met and agreed to voluntarily liquidate the company's business. Kimberley Andrew Strickland and Christopher Michael Williamson were appointed as liquidators. The Liquidators can be reached at: Kimberley Andrew Strickland Christopher Michael Williamson SimsPartners Level 12, 40 St George's Terrace Perth, Western Australia 6000 Australia About Silverleigh Pty Located in Western Australia, Australia, Silverleigh Pty Ltd is an investor relation company. VOLANT PTY: To Declare First & Final Dividend on May 24 ------------------------------------------------------- Volant Pty Ltd, which is liquidation, will declare a first and final dividend on May 24, 2007. Creditors who were not able to lodge their claims by May 1, 2007, are excluded from sharing in the company's dividend distribution. The Troubled Company Reporter - Asia Pacific reported that the company entered wind-up proceedings on April 16, 2007. The company's liquidator is: Peter Goodin Brooke Bird & Co Chartered Accountants 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone: 9882 6666 About Volant Pty Located in Victoria, Australia, Volant Pty Ltd is an investor relation company. ================================ C H I N A & H O N G K O N G ================================ ACXIOM CORP: Selling Equity for US$3BB to Silver Lake & ValueAct ---------------------------------------------------------------- Acxiom(R) Corporation has entered into a definitive agreement to be acquired by Silver Lake and ValueAct Capital. Silver Lake and ValueAct Capital will acquire 100% of the outstanding equity interests in the company in an all-cash transaction valued at US$3 billion, including the assumption of approximately $756 million of debt. Under the terms of the agreement, Acxiom stockholders will receive US$27.10 in cash for each outstanding share of stock. This represents a premium of approximately 14% over the closing share price on May 16, 2007, the last trading day before disclosure of the agreement with Silver Lake and ValueAct Capital with respect to the acquisition of the company and a premium of approximately 20% per share over Acxiom's average closing price per share during the 30 trading. A special committee of the board made up of four independent directors was responsible for managing the process and retained independent legal and financial advisors to assist it in connection with its deliberations. Based on the unanimous recommendation of the special committee, the board of directors approved the merger agreement and recommended to Acxiom's stockholders that they vote in favor of the transaction. The merger agreement provides that Acxiom may solicit and entertain proposals from other companies during the next 60 days. In accordance with the agreement, the board of directors of Acxiom, through the special committee and with the assistance of its independent advisors, intends to actively solicit other proposals during this period. The transaction is expected to close in the next three to four months and is subject to approval by the company's stockholders, regulatory approvals and other customary closing conditions. Silver Lake and ValueAct Capital have received customary debt financing commitments from third-party financing sources. "The company is pleased to reach this agreement because it gives the company an opportunity to deliver excellent value to Acxiom's shareholders," Charles D. Morgan, Acxiom's chairman and chief executive officer, said. "The company believes this deal will benefit the company's clients, its associates and its industry." "ValueAct Capital has consistently contributed valuable strategic insights to the company's business over the past four years, and Jeffrey Ubben, ValueAct Capital's managing partner, has provided further leadership since August 2006 as a member of the company's board of directors, Morgan said. "Silver Lake is the premier investment firm in the technology sector, and their deep domain expertise makes them an outstanding partner for Acxiom." "Clearly, ValueAct Capital have been an investor in Acxiom for several years because the company is attracted by the foundation that Charles and his team have put in place, and the company continues to believe in the company," Mr. Ubben said. "Silver Lake sees Acxiom as the clear leader in technology- enabled marketing solutions," Michael Bingle, a managing director of Silver Lake, said. "The company believes that through continued investments in its technology, people and customer relationships, Acxiom will build on its history of innovation and industry leadership." Stephens Inc. and Merrill Lynch & Co. are acting as financial advisors to the special committee of the Acxiom board and each have a delivered a fairness opinion. Other parties interested in making a proposal are directed to contact the special committee's financial advisors, Michael Costa of Merrill Lynch and Noel Strauss of Stephens. UBS Securities LLC is acting as financial advisor and providing financing to Silver Lake and ValueAct Capital in connection with the transaction. For information concerning all of Acxiom's participants in the solicitation contact: Investor Relations Acxiom Corporation No. 1 Information Way Little Rock, 72202 Tel: (501) 342-3545 About Silver Lake Silver Lake -- http://www.silverlake.com/-- is an investment firm focused on large-scale investments in technology, technology-enabled, and related growth industries. Silver Lake's mission is to function as a value-added partner to the management teams of the world's leading technology franchises. Its portfolio includes or has included technology industry as Ameritrade, Avago, Business Objects, Flextronics, Gartner, Instinet, IPC Systems, MCI, NASDAQ, Network General, NXP, Sabre Holdings, Seagate Technology, Serena Software, SunGard Data Systems, Thomson and UGS. About ValueAct Capital ValueAct Capital, with offices in San Francisco and Boston and more than US$5 billion in investments, seeks to make active strategic-block value investments in a limited number of companies. The principals have demonstrated expertise in sourcing investments in companies they believe to be undervalued, and then working with management and/or the company's board to implement strategies that generate superior returns on invested capital. About Acxiom Based in Little Rock, Arkansas, Acxiom Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, in Europe particularly in France and Germany, and in Australia and China in the Asia-Pacific region. * * * Acxiom Corp. carries Moody's Investor Services' 'Ba2' long term corporate family rating and 'Ba3' probability of default rating. The company's long-term foreign and local credit is rated 'BB' by Standard and Poor's. AGRICULTURAL BANK: To Invest Clients' Funds Abroad via QDII Plan ---------------------------------------------------------------- The Agricultural Bank of China plans to invest client funds into overseas stock markets after the Chinese government allowed banks to make the move, various reports say. According to a report from CCTV News, China's central government recently gave the go-ahead to commercial banks to invest clients' cash in overseas stocks, partly in the hope that the appetite for the so-called Qualified Domestic Institutional Investor, QDII, scheme would grow. As a response to the government's relaxation of investment rules, the Agricultural Bank will launch its first overseas equity-linked QDII product, with an expected rate of return of 12%, The Standard says. The bank will use its US$500 billion quota to invest abroad. Steven Lee of The Standard notes that the product is divided into three, in line with the risks: short-, medium- and long- term. The medium-term product has a term of two years and investors could get a high rate of return from the Hang Seng China Enterprises Index outperforming Standard & Poor's 500 Index. The short-term product links up with the yen-to-US dollar exchange rate. When forecasting the yen will rise, investors may reap a 6% to 8% rate of return in six months. The long-term product will be invested in a five-year bond fund in an emerging market, with a 15% expected rate of return. Customers, according to Chen Ge of CCTV, could use their own foreign exchange holdings or yuan to buy into three QDII products as long as they invested a minimum of US5 thousand or CNY50 thousand. The Troubled Company Reporter - Asia Pacific reported on Feb. 15, 2007, that the Agricultural Bank of China hired ABN AMRO-Mellon as its global custodian bank to help it invest abroad. ABN AMRO NV and U.S. firm Mellon Financial Corp will provide accounting and investment advisory services to help manage assets under the Qualified Domestic Institutional Investor scheme. The QDII scheme, according to the TCR-AP, was launched last year as a way of encouraging capital outflows and relieving some of the upward pressure on the yuan. It led more than a dozen domestic and foreign financial institutions to invest a total of more than US$13 billion overseas. * * * The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter - Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion -- CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. The bank carries Fitch Ratings' Individual strength rating of 'E'. On May 4, 2007, Moody's Rating Agency implemented its new BFSR methodologies and affirmed Agricultural Bank of China's Bank Financial Strength Rating at E. ALCATEL-LUCENT: Signs US$340-Million Contract With China Mobile --------------------------------------------------------------- Alcatel-Lucent has signed a comprehensive agreement valued at US$340 million for mobile communications solutions and services with China Mobile. The agreement, which was secured through Alcatel-Lucent's flagship company in China, Alcatel Shanghai Bell, enables the company to expand into several new provincial markets in addition to growing its existing base, which strengthens its position as one of the leading GSM/GPRS/EDGE equipment suppliers for China Mobile. Under the terms of the agreement, Alcatel-Lucent will provide China Mobile with GSM/GPRS/EDGE radio and core network equipment, customized solutions and related services that will support China Mobile's GSM/GPRS/EDGE network expansion programs in 2007. The network expansion China Mobile plans to undertake with the solutions provided by Alcatel-Lucent, will enable the operator to meet continued strong demand for mobile service in China while reducing network operating costs. "China's mobile communications market continues to have enormous potential, and our goal is to help our customers realize that potential and achieve their business objectives," said Frederic Rose, President of Alcatel-Lucent in Asia Pacific. "This agreement is a strong vote of confidence for our solutions in China and indication of the strength of our relationship with China Mobile." This agreement is the latest in a series of contracts that Alcatel-Lucent has concluded with China Mobile, the most recent being an agreement to provide TD-SCDMA solutions for China Mobile's trial network expansion. Alcatel-Lucent is a leading GSM/GPRS/EDGE network supplier in China. Since 1993 - when Alcatel set up the first trial network in the city of Jiaxing, Zhejiang Province for China Mobile - Alcatel-Lucent's GSM/GPRS/EDGE radio equipment has been deployed in 15 provinces within China and Alcatel-Lucent's mobile softswitch products are serving more than 12 provinces. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises, and governments worldwide to deliver voice, data and video communication services to end- users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. Moody's Investor Services, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch Ratings rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ALCATEL-LUCENT: Inks US$120MM Contract for China Unicom Projects ---------------------------------------------------------------- Alcatel-Lucent has signed a US$120 million agreement for mobile communications solutions and service with China Unicom. The agreement encompasses a range of network projects China Unicom has undertaken or plans to undertake in 2007. The projects include a CDMA2000 1xEV-DO Rev., a high-speed data network upgrade to be implemented in China Unicom's network in Macau, as well as a further expansion in the CDMA core network, radio solutions, and applications that will support China Unicom's broader mobile network expansion. The agreement also provides for GSM/GPRS/EDGE core and radio network solutions and optical network components in support of China Unicom's GSM service offerings. The network solutions planned for in the agreement will enable China Unicom to keep pace with the demands of a rapidly expanding wireless services market in China and provide users with a range of new applications and services. "The agreement we are signing with China Unicom is significant because of the scope of solutions it involves," said Frederic Rose, President of Alcatel-Lucent Asia Pacific. "It meets China Unicom's demand for near term expansion and provides a means to sustain growth in the future." With this agreement Alcatel-Lucent secures its position as the vendor with the largest installed base in China Unicom's CDMA network. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises, and governments worldwide to deliver voice, data and video communication services to end- users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. Moody's Investor Services, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch Ratings rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. AMDL INC: Delays Filing of Form 10-Q for Quarter Ended March 31 --------------------------------------------------------------- AMDL, Inc., informed the U.S. Securities and Exchange Commission that it will delay filing its quarterly report on Form 10-Q for the period ended March 31, 2007. The company relates that it will be including the results of operations for its new subsidiary, Jade Pharmaceuticals Inc. Jade Acquisition On Sept. 28, 2006, pursuant to the closing of a Stock Purchase and Sale Agreement dated May 12, 2006, the company acquired 100% of the outstanding shares of Jade Pharmaceutical from Jade Capital Group Limited. Jade Pharma has two wholly owned China-based subsidiaries, Yangbian Yiqiao Bio-Chemical Pharmacy Company Limited and Jiangxi Jiezhong Bio-Chemical Pharmacy Company Limited. Yangbian Yiqiao is located in Tuman City, Jilin Province, while Jiangxi Jiezhong is located in Shangrao, Jiangxi Province. About AMDL Inc. Headquartered in Tustin, California, AMDL Inc. (Amex: ADL) -- http://www.amdl.com/-- a theranostics company, which develops, manufactures, markets, and sells various immunodiagnostic kits for the detection of cancer and other diseases. Its products include DR-70, a test kit is used to assist in the detection of various types of cancer, including lung small and nonsmall cell, stomach, breast, rectal, colon, and liver; and Pylori-Probe, a diagnostic kit which is cleared for sale in the United States. The company markets its products through distributor relationships and to domestic markets through strategic partnerships and relationships with diagnostic companies. It serves various customers, including hospital, clinical, research and forensic laboratories, and doctor's offices. Going Concern Doubt Corbin & Company LLP raised substantial doubt about the company's ability to continue as a going concern after auditing the company's financial statements that reflected significant operating losses and negative cash flows from operations through Dec. 31, 2006, and an accumulated deficit at Dec. 31, 2006. BALLY TECHNOLOGIES: Taps Bruce Rowe as Biz Development Senior VP ---------------------------------------------------------------- Bally Technologies, Inc., has appointed Bruce Rowe as Senior Vice President of Business Development, effective May 25, 2007. Mr. Rowe previously served as Corporate Vice President of Business Strategy, Gaming Solutions, and General Manager of Nevada Operations for GTECH Holdings Corporation, a global information technology company specializing in the lottery industry. Prior to joining GTECH, Mr. Rowe was a senior executive with Harrah's Entertainment for 23 years and served as Corporate Vice President of Slot Operations, Research and Development as well as Corporate Vice President of Information Technology. At that time, Harrah's owned or managed more than 42,000 slots. "We're pleased to add Bruce to an already-strong management team that is committed to building on the momentum we have growing in the marketplace," said Richard Haddrill, Bally Technologies' Chief Executive Officer. "Bruce's background in slots, systems and large-scale technology initiatives is perfectly suited to where we are taking our business. We're confident he will make a strong impact as we expand our product offerings and move into new markets." Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Miss. The Company's Latin American operations are located in Argentina. The company also has Asia- Pacific operations in Macau, China, and India. * * * In April 2007, Standard & Poor's Ratings Services revised the CreditWatch implications on its ratings for Bally Technologies Inc. to developing from negative. The corporate credit rating on the company is 'B-'. CUMMINS INC: Earns US$143 Million in Quarter Ended March 31 ----------------------------------------------------------- Cummins Inc. reported that it experienced strong operating performance in the first quarter of 2007 with net earnings of US$143 million on net sales of US$2.8 billion, as compared with first quarter 2006 net earnings of US$135 million on net sales of US$2.7 billion. First quarter net earnings and sales were up for Cummins led by record sales and earnings in our Power Generation segment. As expected, sales in the company's Engine segment were down due to decreased demand in its on-highway markets, led by the North American heavy-duty truck market as a result of the 2007 change in emissions standards. In addition, the company continued to see strong demand in its Components and Distribution segments. Overall, its Power Generation segment net sales were up US$139 million, and its Components segment net sales were up US$102 million, compared to the first quarter of 2006. Engine segment net sales were down US$56 million, while Distribution segment net sales were down US$8 million. The company's Distribution segment had organic growth in the first quarter, however due to the deconsolidation of one of its North American joint ventures beginning in 2007, net sales decreased as compared to 2006. Net sales for this joint venture were about US$41 million during the first quarter of 2006. As of March 31, 2007, the company's balance sheet showed total assets of US$7.4 billion, total liabilities of US$4.2 billion, minority interests of US$253 million, and total stockholders' equity of US$2.9 billion. Overview of Capital Structure Cash and cash equivalents decreased US$319 million during the period to US$521 million at the end of the first quarter, as compared with US$840 million at the beginning of the period. Cash and cash equivalents were higher at the end of 2006 as a result of an increase in cash provided by operations generated primarily by higher net earnings for the full year in 2006 and due to lower accounts receivable at the end of 2006. The company focused much of our efforts on improving our balance sheet through debt reduction. The company said it believes that its net debt position is a strong indicator of how much progress it has made in this area. First Quarter 2007 Highlights Some of the transactions and events that highlight for the quarter include: -- The Board of Directors authorized a two-for-one split of Cummins stock on March 8, 2007, which was distributed on April 9, 2007, to shareholders of record as of March 26, 2007. All share and per share amounts in this filing have been adjusted to reflect the two-for-one stock split. -- About US$62 million of our US$120 million 6.75% debentures were repaid on Feb. 15, 2007, at the election of the holders. Such election and notification was required to be made between Dec. 15, 2006 and Jan. 15, 2007. -- In July 2006, the Board of Directors authorized the acquisition of up to two million shares of Cummins common stock in addition to what has been acquired under previous authorizations. For the quarter ended April 1, 2007, the company repurchased about US$13 million of common stock, representing about 180,000 shares. As a result, at April 1, 2007, there were about 2.8 million shares available to be acquired. -- During the first three months of 2007, the company made contributions of about US$61 million to our pension plans. Full-text copies of the company's first quarter report are available for free at http://ResearchArchives.com/t/s?1f32 About Cummins, Inc. Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI) -- http://www.cummins.com/-- designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins has Latin-American operations, particularly in Venezuela, Brazil, Peru, Colombia, and Argentina. Its operations in the Asia-Pacific are found in China, Japan and Korea. Its also has facilities in Europe, particularly in the United Kingdom. * * * Cummins' Junior Convertible Subordinated Debentures carry Fitch's 'BB' rating with a stable outlook. Moody's Investors Service raised Cummins' convertible preferred stock rating to Ba1 from Ba2 and withdrew the company's SGL-1 Speculative Grade Liquidity rating and its Ba1 Corporate Family Rating. PANVA GAS: Moody's Keeps Ba1 Ratings; Outlook Stable ---------------------------------------------------- On May 15, 2007, Moody's Investors Service affirmed Panva Gas Holdings Ltd's Ba1 corporate family and senior unsecured bond ratings. The outlook on both ratings remains positive. The affirmation follows Panva Gas' fully underwritten proposed HK$703 million share offering. The major shareholders, including The Hong Kong and China Gas (China) Ltd ("Towngas") and Enerchina Holdings Ltd, will participate to maintain their existing ownership stake. "While the share placement will allow Panva Gas to reduce its leverage and improve liquidity, such benefits have been offset by the weaker than expected operating results for fiscal year 2006," says Virginia Chung, Moody's lead analyst for the company. "Panva Gas' current Ba1 rating continues to incorporate a one notch uplift based on expected financial and operational support from Towngas," adds Ms. Chung. The rating outlook remains positive and reflects Moody's expectation that Panva Gas will realize benefits from its collaboration and integration with Towngas on future projects in China. At the same time, the company will likely improve its risk management practices and financial polices over the next 12 months. Panva Gas, listed on the Hong Kong Stock Exchange, is engaged in the downstream sale and distribution of LPG and natural gas in mainland China. Its main operations include the sale of LPG in bulk and cylinders, the provision of piped natural gas, the construction of gas pipelines and, to a lesser extent, the sale of LPG household appliances. * Taiwan Remains Strong Domestic Issuing Market for CDOs -------------------------------------------------------- Derivative Fitch said in the Taipei leg of its Global Structured Credit Conference on May 16, 2007, that Taiwan continues to be a strong domestic issuing market for collaterised debt obligations in the Asia Pacific region. "The Asia Pacific CDO market is growing at a rapid pace and the investor base continues to expand. Taiwan, in particular, is a strong domestic issuer for collateralized bond obligations and collateralised loan obligations," observed Rachel Hardee, Head of Asia Pacific Structured Credit. Stefan Bund, Head of European Structured Credit, notes a similar trend in Europe. "CLOs continue to dominate the European Cash CDO market in terms of issuance volumes," commented Mr. Bund. From a regional perspective, Fitch notes that as the Asian structured credit market continues to develop, new types of assets will be referenced in CDO structures. CLOs that reference Asian assets and commodities-linked credit obligations are examples of such structures. "Synthetic CDOs continue to be the dominant product and these typically reference global assets. However, market participants are all looking at CLOs of Asian assets and we expect a number of such transactions this year," noted Rachel. Locally, Fitch notes that the Taiwanese investor base is becoming less active in buying US synthetic corporate CDO deals as interest has shifted to more conservative structures such as principal protected notes. More sophisticated Taiwanese investors are also purchasing market value CDOs and new types of synthetic products, such as synthetic asset backed securities CDOs, constant proportion debt obligations and CCOs. During the half-day conference, Mr. Bund also shared his views on the evolution of the synthetic CDO market, focusing on CPDOs. Meanwhile, Simon Greaves, Managing Director of Derivative Fitch further elaborated on the market risk of Synthetic CDOs with a demonstration of Risk Analytics Platform for Credit Derivatives or RAP CD -- a breakthrough market risk assessment service for the synthetic CDO market developed by Derivative Fitch. Finally, the conference closed with panel presentations highlighting the obstacles to developing a domestic synthetic CDO market in Taiwan. * China's Commercial Banks' 1st Qtr. NPLs Total CNY1.16 Trillion ---------------------------------------------------------------- China's seventeen leading commercial banks had a non-performing loan ratio averaging 7.02% as of end March 2007, and combined bad loans which stood at CNY1.16 trillion (US$151 billion), reports say, citing a statement from the China Banking Regulatory Commission. According to the reports, the total bad loans include CNY1.06 trillion yuan (US$138 billion) for the five big banks, with an NPL ratio of 8.2%, and the remaining CNY100 billion (US$13 billion) come from the 12 midsize banks, with an NPL ratio of 2.78%. China's big five are the Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China and Bank of Communications. The 12 midsize banks include CITIC Bank, Everbright Bank, Huaxia Bank, Guangdong Development Bank, China Merchants Bank and China Minsheng Banking Corp. In addition, the banks' total balance of assets increased 17.2% quarter-on-quarter to CNY45.93 trillion, while the balance of total liabilities increased 16.3% to CNY43.54 trillion, China Knowledge relates. The data in 2007, according to Xinhua's sources in the banking regulator, said that the figures couldn't be compared with data from a year back because the statistical methods used are not the same. ========= I N D I A ========= BAUSCH & LOMB: Inks US$4.5 Bil. Merger Deal with Warburg Pincus --------------------------------------------------------------- Bausch & Lomb Inc. entered into a definitive merger agreement with affiliates of Warburg Pincus, the global private equity firm, in a transaction valued at approximately US$4.5 billion, including approximately US$830 million of debt. Under the terms of the agreement, affiliates of Warburg Pincus will acquire all of the outstanding shares of Bausch & Lomb common stock for US$65 per share in cash. This represents a premium of approximately 26% over the volume weighted average price of Bausch & Lomb's shares for 30 days prior to press reports of rumors regarding a potential acquisition of the company. Bausch & Lomb's Board of Directors, following the recommendation of a Special Committee composed entirely of independent directors, has unanimously approved the agreement and recommends that Bausch & Lomb shareholders approve the merger. "After extensive negotiations and careful and thorough analysis, together with our independent advisors, the Special Committee and our board have unanimously endorsed this transaction as in the best interest of the Company and our shareholders," William H. Waltrip, lead director and chairman of the Special Committee of the Bausch & Lomb Board of Directors, said. "We are pleased that this transaction appropriately recognizes the value of Bausch & Lomb's highly respected brand and innovative products in the eye care industry, while providing our shareholders with an immediate and substantial cash premium for their investment in Bausch & Lomb." "We believe this transaction with Warburg Pincus is good for the Company's employees, partners in the eye care profession, and customers, as well as our shareholders," Ronald L. Zarrella, chairman and CEO of Bausch & Lomb, said. "As a private company, Bausch & Lomb will have greater flexibility to focus on our long-term strategic direction to be a global leader in providing innovative and technologically advanced eye health products to eye care professionals and consumers. We are proud to partner with Warburg Pincus, a distinguished firm with a strong reputation and proven track record of success in acquiring and guiding healthcare companies. Warburg Pincus understands our industry and our business well, and will be a tremendous asset as we build upon our leadership position and continue to implement our strategic plan to deliver enhanced value for our customers worldwide. The firm shares our confidence in Bausch & Lomb's future and will support our people in achieving our long- term goals. Our success is driven by the ongoing efforts of our talented employees around the world and I thank them for their continued hard work and dedication. We look forward to working with Warburg Pincus to quickly complete the transaction." "Bausch & Lomb is an exceptional company, with significant potential and a strong commitment to its employees, partners and customers worldwide," Elizabeth H. Weatherman, a Warburg Pincus managing director, said. Ms. Weatherman, who leads the firm's medical device investment activities, added, "This investment reflects a unique blend of our deep domain expertise in medical technology, pharmaceuticals and healthcare, which has been a focus area for Warburg Pincus since 1973." The transaction is subject to certain closing conditions, including the approval of Bausch & Lomb's shareholders, regulatory approvals and the satisfaction of other customary closing conditions. There is no financing condition to consummate the transaction. Bausch & Lomb expects to hold a Special Meeting of Stockholders to consider and vote on the proposed merger and merger agreement, among other things. The transaction is expected to close promptly following the satisfaction of all closing conditions. Under the merger agreement, Bausch & Lomb may solicit superior proposals from third parties during the next 50 calendar days. To the extent that a superior proposal solicited during this period leads to the execution of a definitive agreement, Bausch & Lomb would be obligated to pay a $40 million break-up fee to affiliates of Warburg Pincus. In accordance with the agreement, the Board of Directors of Bausch & Lomb, through its Special Committee and with the assistance of its independent advisors, intends to solicit superior proposals during this period. In addition, Bausch & Lomb may, at any time, subject to the provisions of the merger agreement, respond to unsolicited proposals. Bausch & Lomb advises that there can be no assurance that the solicitation of superior proposals will result in an alternative transaction. Bausch & Lomb does not intend to disclose developments with respect to this solicitation process unless and until its Board of Directors has made a decision regarding any alternative proposals. Morgan Stanley & Co. Incorporated is acting as financial advisor to the Special Committee of the Bausch & Lomb Board of Directors and has delivered a fairness opinion. Wachtell Lipton Rosen & Katz is acting as legal counsel to the Special Committee in this transaction. Banc of America, Citi, Credit Suisse and JPMorgan served as the financial advisors to Warburg Pincus, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to Warburg Pincus. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. * * * On Feb. 2, 2007, Moody's Investors Service downgraded Bausch & Lomb Inc.'s senior unsecured debt to Ba1 and continues to review all ratings for possible downgrade. Moody's also assigned the company a Ba1 Corporate Family Rating. BAUSCH & LOMB: US$4.5 Bil. Warburg Deal Cues S&P to Cut Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Bausch & Lomb Inc. and placed them on CreditWatch with negative implications. The corporate credit rating was lowered to 'BB+' from 'BBB'. "These actions reflect the announcement that B&L has entered into a definitive merger agreement with affiliates of Warburg Pincus in a transaction valued at about US$4.5 billion, including about US$830 million of debt," explained Standard & Poor's credit analyst Cheryl Richer. "The transaction is subject to certain closing conditions, including the approval of B&L shareholders, regulatory approvals, and the satisfaction of other customary closing conditions." Even if the transaction is not consummated (B&L may solicit superior proposals from third parties during the next 50 calendar days under the merger agreement), management's willingness to aggressively increase leverage to this extent is not commensurate with an investment-grade rating. Credit metrics were already marginally weak for the prior rating as a result of the ReNu with MositureLoc recall. Financial strengthening, anticipated as the company rebuilds its brand name and expands sales in unaffected lines of business, will be insufficient to offset the increase in debt. Pro forma for an additional US$830 million of debt at year-end 2006, debt to EBITDA would increase to 5.7x--a level more characteristic of a rating that is more than one notch lower than the current 'BB+' rating--from the actual 3.1x. Standard & Poor's will monitor the progress of this transaction to determine the extent to which the rating will decline. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. CANARA BANK: Books INR5-Billion Profit in Qtr. Ended March 31 ------------------------------------------------------------- Canara Bank posted a net profit of INR5.05 billion for the quarter ended March 31, 2007, a 2% increase from the INR4.94 billion profit gained in the corresponding quarter in 2006. The bank's total income increased from INR27.87 billion in the quarter ended March 31, 2006, to INR38.37 billion in the current quarter under review. The bank's expenditures for the January-March 2007 quarter totaled INR27.85 billion. In the same quarter, the bank booked taxes of INR500 million, and provisions and contingencies of INR4.97 billion. Full-text copies of the bank's financial statements for the quarter ended March 31, 2007, is available for free at: http://ResearchArchives.com/t/s?1f63 For the year ended March 31, 2007, the bank posted a net profit of INR14.21 billion on revenues totaling INR128.16 billion. The bank's expenditures totaled INR99.03 billion brining the operating profit to INR29.12 billion. Full-text copies of the bank's financial statements for the year ended March 31, 2007, is available for free at: http://ResearchArchives.com/t/s?1f64 The bank informed the Bombay Stock Exchange that its board of directors has recommended a dividend at 70% for the year ended March 31, 2007. Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. * * * In April 2007, Moody's Investors Service revised Canara's bank financial strength rating to D+ from D as part of its application of its refined joint default analysis and updated BFSR methodologies. Moody's maintains the bank's foreign currency deposit rating of Ba2. Fitch Ratings gave Canara Bank an individual rating of 'C/D' on Nov. 9, 2006. CANARA BANK: May Seek Board's Nod on Dena Merger, Report Says ------------------------------------------------------------- Canara Bank's management may soon seek the approval of its board of directors for the bank's merger with Dena Bank, Moneycontrol.com says. Although reports say that top executives of both banks are still not commenting on the possible deal, Canara's appointment of Ernst & Young as advisor means it is considering the proposal to its board. Citing sources close to the development, the Press Trust of India said Canara has mandated Ernst & Young to explore the possibility of acquiring Dena Bank. PTI's sources said that E&Y has already submitted a preliminary report and the evaluation process is on. "Analysts say it is a decent fit," Moneycontrol.com said. "Canara Bank is strong in the south, while Dena Bank can compliment with its strength in the west and in Chattisgarh." The government's interest in Canara is over 73%, while its stake in Dena is a little over the statutory cap of 51%, which restricts bank from raising further capital by diluting stake for its expansion plan, The Financial Express notes. About Dena Bank Headquartered in Mumbai, Dena Bank -- http://www.denabank.com/ -- is principally engaged in the provision of a range of financial and banking solutions. It offers both retail banking and corporate banking services. On March 16, 2007, Fitch affirmed the bank's 'D/E' Individual Rating and '4' Support Rating. About Canara Bank Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. In April 2007, Moody's Investors Service revised Canara's bank financial strength rating to D+ from D as part of its application of its refined joint default analysis and updated BFSR methodologies. Moody's maintains the bank's foreign currency deposit rating of Ba2. Fitch Ratings gave Canara Bank an individual rating of 'C/D' on Nov. 9, 2006. CITY UNION BANK: To Make Preferential Issues to Six Firms --------------------------------------------------------- City Union Bank Ltd will be making preferential issues to six investors. In a regulatory filing with the Bombay Stock Exchange, the bank said its board of directors has approved the preferential issues to: 1. LIC of India: up to 15,00,000 equity shares at INR169.15 per share; 2. Larsen & Toubro Ltd: up to 3,00,000 equity shares at INR169.15 per share; 3. FMO, Netherlands: up to 15,00,000 equity shares at INR190 per share; 4. Ares Investments LLC: up to 12,50,000 equity shares at INR190 per share; 5. Argonaut Ventures: up to 12,50,000 equity shares at INR190 per share; and 6. Yatish Trading Company Pvt Ltd: up to 10,00,000 equity shares at INR190 per share. The issue, which is still subject to the approvals of the bank's shareholders and the Reserve Bank Of India, would be for cash on preferential basis. For the purpose of obtaining the shareholders' approval of the move, the board decided to convene an extraordinary general meeting on June 2, 2007. City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on Aug. 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. As of May 17, 2007, the bank still carries those ratings. CITY UNION BANK: Board to Consider Audited Financials on May 21 --------------------------------------------------------------- City Union Bank Limited's board of directors will hold a meeting on May 21, 2007, to consider and approve the bank's audited financial results for the financial year ended March 31, 2007. The board will also consider recommendation of dividend for the financial year 2006-2007. City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on Aug. 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. As of May 17, 2007, the bank still carries those ratings. CITY UNION BANK: Board Agrees to Split Capital ---------------------------------------------- City Union Bank's board of directors has resolved to split the capital of the bank, a filing with the Bombay Stock Exchange says. Specifically, the board proposes that the bank's existing capital of INR100,00,00,000 be divided into 10,00,00,000 equity shares of INR10 each to 100,00,00,000 shares of INR1 each. The proposed capital split is still subject to the approval of the Reserve Bank of India. City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on Aug. 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. As of May 17, 2007, the bank still carry those ratings. CORPORATION BANK: Earns INR1.18 Million in Qtr. Ended March 31 -------------------------------------------------------------- Corporation Bank reported a net profit of INR1.18 billion for the quarter ended March 31, 2007, up 18% from the INR1 billion profit in the corresponding quarter in 2006. The bank's total income grew 32% to INR11.43 billion from the INR8.63 billion in the March 2006 quarter. Expenditures totaled INR7.99 billion in the latest quarter under review, 35% more than the INR5.94 incurred in the January-March 2006 quarter. Full-text copies of the bank's financial results for the quarter ended March 31, 2007, is available for free at: http://ResearchArchives.com/t/s?1f71 For the year ended March 31, 2007, the bank booked a net profit of INR5.36 billion on revenues totaling INR39.96 billion. The bank recorded expenses totaling INR28.56 billion arriving at an operating profit of INR11.4 billion. Provisions and contingencies for FY2007 total INR3.23 billion. Full-text copies of the bank's financial results for the year ended March 31, 2007, is available for free at: http://ResearchArchives.com/t/s?1f72 Headquartered in Mangalore, India, Corporation Bank -- http://www.corpbank.com/-- offers a range of deposit schemes and loan products to customers. The various products offered by the bank include Corp Pragathi savings bank account, current account products and term deposits. Corporation Bank offers housing loans, education loans, consumer loans for purchase of consumer durables, loans against future rent receivables on leased out building/premises, loans to purchase two wheelers and four wheelers, loans against shares, loans for purchase of medical and other such equipments, loan to acquire office premises/building and furniture, personal loans, loans to women to buy gold/jewelry, and loan against mortgage of property. It also offers a range of non-resident Indian services, as well as debit and credit cards. Fitch Ratings gave Corp Bank a 'C' individual rating on June 1, 2005. As of May 17, 2007, the bank still carries the rating. CORPORATION BANK: Sees Buyouts With Indian Bank and OBC ------------------------------------------------------- Corporation Bank is eyeing at acquiring a bank in the west or north and may tie up with Indian Bank and Oriental Bank of Commerce, the Business Standard reports. The bank believes it can raise enough capital for use in a possible buyout. The bank has an adequate foundation to raise capital of more than INR3,600 crore, especially hybrids and bonds, the Business Standard quotes Corp. Bank Chairman and Managing Director B. Sambhamurthi as saying. "This capital can be useful in case we get a good candidate for acquisition." The bank is not averse to a joint acquisition, Mr. Sambhamurthi told the Business Standard when asked whether it would work with alliance partners. Headquartered in Mangalore, India, Corporation Bank -- http://www.corpbank.com/-- offers a range of deposit schemes and loan products to customers. The various products offered by the bank include Corp Pragathi savings bank account, current account products and term deposits. Corporation Bank offers housing loans, education loans, consumer loans for purchase of consumer durables, loans against future rent receivables on leased out building/premises, loans to purchase two wheelers and four wheelers, loans against shares, loans for purchase of medical and other such equipments, loan to acquire office premises/building and furniture, personal loans, loans to women to buy gold/jewelry, and loan against mortgage of property. It also offers a range of non-resident Indian services, as well as debit and credit cards. Fitch Ratings gave Corp Bank a 'C' individual rating on June 1, 2005. As of May 17, 2007, the bank still carries the rating. DENA BANK: Canara Merger Talks at Advance Stages, Report Says ------------------------------------------------------------- Talks of a proposed merger between Dena Bank and Canara Bank are at an advanced stage, the Business Standard reports, adding that Dena's share prices went up on account of the talks. Canara's management may soon seek the approval of its board of directors for a merger with Dena Bank, Moneycontrol.com said after reports say that Canara hired Ernst & Young to explore the takeover possibility. "Analysts say it is a decent fit," Moneycontrol.com said. "Canara Bank is strong in the south, while Dena Bank can compliment with its strength in the west and in Chattisgarh." As reported in the Troubled Company Reporter - Asia Pacific on April 25, 2007, India's Finance Ministry approved the proposal to merge Canara with Dena. The Finance Ministry sees the merger as a way to help Dena strengthen its balance sheet. The merger however, still needs the approval of the Reserve Bank of India. Additionally, the boards of the two banks would still have to take up the issue. The government's interest in Canara is over 73%, while its stake in Dena is a little over the statutory cap of 51%, which restricts bank from raising further capital by diluting stake for its expansion plan, The Financial Express notes. About Canara Bank Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. In April 2007, Moody's Investors Service revised Canara's bank financial strength rating to D+ from D as part of its application of its refined joint default analysis and updated BFSR methodologies. Moody's maintains the bank's foreign currency deposit rating of Ba2. Fitch Ratings gave Canara Bank an individual rating of 'C/D' on Nov. 9, 2006. About Dena Bank Headquartered in Mumbai, Dena Bank -- http://www.denabank.com/ -- is principally engaged in the provision of a range of financial and banking solutions. It offers both retail banking and corporate banking services. On March 16, 2007, Fitch affirmed the bank's 'D/E' Individual Rating and '4' Support Rating. RYERSON INC: Declares 60 Cents Per Share Dividend Due August 1 -------------------------------------------------------------- Ryerson Inc.'s Board of Directors declared cash dividends of 5 cents per share on the company's common stock and 60 cents per share on its Series A US$2.40 Cumulative Convertible Preferred Stock. The dividends will be payable Aug. 1, 2007, to stockholders of record at the close of business on July 10, 2007. Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a distributor and processor of metals in North America, with 2006 revenues of US$5.9 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, India, and China. On Jan. 1, 2006, the company changed its name from Ryerson Tull, Inc. to Ryerson Inc. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating to 'B+' from 'BB-' on Chicago, Illinois- based metals processor and distributor Ryerson Inc., and lowered its senior unsecured rating to 'B-' from 'B'. ================= I N D O N E S I A ================= GOODYEAR TIRE: Issues 22,727,272 Common Shares at US$33 Each ------------------------------------------------------------ The Goodyear Tire & Rubber Company's public offering of 22,727,272 shares of its common stock was priced at US$33.00 per share. In addition, Goodyear has granted the underwriters a 30- day option to purchase up to an additional 3,409,091 shares of its common stock to cover any over-allotments. The offering is expected to close on May 22, 2007. Net proceeds from this offering, after deducting underwriting discounts and commissions, are expected to be approximately US$725 million, or US$834 million if the underwriters exercise their over-allotment option in full. Goodyear intends to use the net proceeds from the offering to redeem approximately US$175 million in principal amount of its outstanding 8.625% senior notes due in 2011 and approximately US$140 million in principal amount of its outstanding 9.00% senior notes due in 2015. The company expects to use the remaining net proceeds of the offering for general corporate purposes, which may include, among other things, investments in growth initiatives within the company's core tire businesses and the repayment of additional debt. Deutsche Bank Securities, Citi and Goldman, Sachs & Co. served as joint book-running managers of the offering. A shelf registration statement was filed with the U.S. Securities and Exchange Commission and became automatically effective upon filing on May 9, 2007. The offering of the common stock may be made only by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained from D * Deutsche Bank Securities Prospectus Department 100 Plaza One Jersey City, NJ 07311 Telephone: 800-503-4611 e-mail:prospectusrequest@list.db.com * Citigroup Global Markets Inc. Brooklyn Army Terminal 140 58th Street, 8th Floor Brooklyn, NY 11220 Telephone: 718- 765-6732 * Goldman, Sachs & Co. Prospectus Department 85 Broad St. New York, NY 10004 Telephone: 212-902-1171 Fax: 212-902-9316 e-mail: prospectus-ny@ny.email.gs.com * Goodyear's Investor Relations Department 1144 E. Market St. Akron, OH 44316 Telephone: 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 May 16, 2007, that Standard & Poor's Ratings Services placed its 'B-' ratings on the class A-1 and A-2 certificates from the US$46 million Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust on CreditWatch with positive implications. On May 14, 2007, Moody's Investors Service upgraded Goodyear Tire & Rubber Company's Corporate Family Rating to Ba3 from B1 and maintained a positive rating outlook. Moody's also affirmed Goodyear's liquidity rating of SGL-2. The actions follow an announcement by Goodyear of plans to raise approximately USUS$750 million of new equity capital, which marks important further progress in the company's plans to strengthen its balance sheet. On April 10, 2007, Fitch Ratings affirmed these ratings of The Goodyear Tire & Rubber Company: -- Issuer Default Rating at 'B'; -- USUS$1.5 billion first-lien credit facility at 'BB/RR1'; -- USUS$1.2 billion second-lien term loan at 'BB/RR1'; -- USUS$300 million third-lien term loan at 'B/RR4'; -- USUS$650 million third-lien senior secured notes at 'B/RR4'; and -- Senior unsecured debt at 'CCC+/RR6'. MEDCO ENERGI: In Talks With Kyushu for Geothermal Plant Venture --------------------------------------------------------------- PT Medco Energi Internasional Tbk is in talks with Japan's Kyushu Electric Power Co. to be part of a team building a geothermal power plant that will cost around US$600 million, Reuters reports. According to the report, Medco want Kyushu to join in the Sarulla geothermal power plant as the Japanese firm has experience in this field. Medco is ready to give up some of its 62.25% stake in the Sarulla project to Kuyushi, Reuters adds. Hilmi Panigoro, Medco chief executive officer, said the company plans to build 110MW as the first phase and another 220MW will follow. They will also see if it is possible to expand it to 1,000MW in future, the report says. * * * Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com/-- is engaged in the exploration, production of, and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Medco Energy also has operations in the United States and in Libya. The Troubled Company Reporter - Asia Pacific reported on Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Medco Energi. The outlook remains negative. According to S&P, the negative outlook on Medco reflects the company's weak financial profile due to its increased debt burden to fund its aggressive capital expenditure. In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service changed the outlook on Medco Energi's ratings to negative from stable. The ratings affected by the outlook change are: * B1 local currency corporate family rating -- Medco * B2 foreign currency long-term rating -- MEI Euro Finance Ltd (guaranteed by Medco). MERPATI NUSANTARA: To Lay off 501 More Workers Starting June ------------------------------------------------------------ PT Merpati Nusantara Airlines will lay off 501 additional workers starting June, as part of a restructuring program, Antara News reports, adding that this early retirement program will cost the company and additional IDR70 billion. The report recounts that in March, the company sacked 498 workers under the same program reducing employees to 2,596. The reconstruction program is aimed at improving the efficiency and productivity of the airline, Antara says. About Merpati Nusantara Headquartered in Jakarta, Indonesia, PT Merpati Nusantara Indonesia -- http://www.merpati.co.id/-- is a state-owned carrier that services predominantly international routes. The carrier is facing the threat of being declared bankrupt with IDR1.6 trillion in accumulated losses. According to press reports, Merpati suffered from high fuel prices and hurt by the weaker rupiah. The bombings in Bali in October 2005 hit the airline pretty hard in its revenue flow. The airline is also struggling to cope with new competition within Indonesia, both from domestic airlines and from other airlines coming into Indonesia internationally. The Troubled Company Reporter - Asia Pacific reported on July 24, 2004, that the Indonesian Government invited applications from financial and legal advisers to help devise a privatization scheme for the carrier. The Government proposed a strategic sale of the state's 51% stake in Merpati to help fund the carrier's operations. The state was also considering a IDR220 billion debt-for-equity swap. As of fiscal year end 2005, the company has an equity deficit of IDR1.24 trillion. According to a TCR-AP report in January 2006, the government promised to inject up to IDR400 billion into the Company. However, since it is also cash-strapped, the government said it would disburse the amount in installments, and initially meted out IDR75 billion for the company to continue its business. MERPATI NUSANTARA: Wants to Postpone Debt Payment to Danamon ------------------------------------------------------------ PT Merpati Nusantara Indonesia asked PT Bank Danamon Indonesia Tbk to postpone its debt payment of IDR24.5 billion, which matured on May 15, pending the second disbursement of the government's participation funds to the company, Antara News reports. The company, however, did not disclose if the total debt of the company to Danamon would remain at IDR24.5 billion, Antara says. Antara recounts that Merpati Nusantara "was given a large haircut" by Danamon, instead of paying the IDR93.2 billion total debt, the company will pay IDR24.5 billion. Merpati President Director Hotasi Nababan told Antara that the disbursement of the second installment of the government's participation funds had been postponed following the Thirstone Aircraft Leasing Group case. The Troubled Company - Asia Pacific reported on May 2, 2007, that Merpati Nusantara Airlines filed a suit against United States-based Thirdstone Aircraft Leasing Group in the United States District Court for the District of Columbia alleging breach of contract. According to the TCR-AP, the company already advanced US$1 million in payment but Thirdstone failed to deliver the aircraft. The failure could result in probable losses of up to IDR60 billion for Merapati. According to Antara, Mr. Nababan also said that the company's board of directors stopped making strategic decisions. The House of Representatives Commission V said that Merpati had to be liquidated because of its poor performance and low public confidence in it, the report added. About Merpati Nusantara Headquartered in Jakarta, Indonesia, PT Merpati Nusantara Indonesia -- http://www.merpati.co.id/-- is a state-owned carrier that services predominantly international routes. The carrier is facing the threat of being declared bankrupt with IDR1.6 trillion in accumulated losses. According to press reports, Merpati suffered from high fuel prices and hurt by the weaker rupiah. The bombings in Bali in October 2005 hit the airline pretty hard in its revenue flow. The airline is also struggling to cope with new competition within Indonesia, both from domestic airlines and from other airlines coming into Indonesia internationally. The Troubled Company Reporter - Asia Pacific reported on July 24, 2004, that the Indonesian Government invited applications from financial and legal advisers to help devise a privatization scheme for the carrier. The Government proposed a strategic sale of the state's 51% stake in Merpati to help fund the carrier's operations. The state was also considering a IDR220 billion debt-for-equity swap. As of fiscal year end 2005, the company has an equity deficit of IDR1.24 trillion. According to a TCR-AP report in January 2006, the government promised to inject up to IDR400 billion into the Company. However, since it is also cash-strapped, the government said it would disburse the amount in installments, and initially meted out IDR75 billion for the company to continue its business. NORTEL NETWORKS: Reaches Settlement Agreement With OSC Staff ------------------------------------------------------------ Nortel Networks Corporation disclosed that the Ontario Securities Commission has issued a Notice of Hearing to consider a Settlement Agreement that has been reached by the Staff of the OSC with Nortel and its principal operating subsidiary Nortel Networks Limited. The Settlement Agreement relates to certain allegations made by the Staff regarding certain accounting practices which a previously announced Nortel independent inquiry found to have occurred during the 2000 fiscal year, the last two fiscal quarters of 2002 and the first two fiscal quarters of 2003, which had led to certain restatements of Nortel's and NNL's financial results. The hearing will be held on May 22, 2007, to consider whether it is in the public interest for the Commission to make an order, pursuant to the Ontario Securities Act, approving the Settlement Agreement. As is customary in these cases, the terms of the Settlement Agreement are confidential and will be made public only if and when approved by the Commission. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * On March 27, 2007, Moody's Investors Service affirmed Nortel Networks' existing ratings, including its B3 corporate family rating, and assigned a B3 rating to the proposed US$1 billion convertible senior unsecured notes offering. Proceeds of the offering will be used to refinance a portion of the US$1.8 billion in 4.25% convertible notes due in 2008 when they become payable at par. Moody's said the outlook remains stable. On March 26, 2007, Standard & Poor's Ratings Services assigned its 'B-' debt rating to Canada-based Nortel Networks Corp.'s proposed US$1 billion senior unsecured convertible notes, which will consist of two tranches of USUS$500 million, maturing in 2012 and 2014, respectively. Proceeds from the convertible notes will be used to partially refinance NNC's US$1.8 billion senior unsecured convertible notes due Sept. 1, 2008, and therefore the overall debt level is not expected to change. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on 100%-owned Canada-based subsidiary, Nortel Networks Ltd. At the same time, the ratings on the US$200 million notes of NNL and the US$150 million notes of Nortel Networks Capital Corp. were lowered to 'CCC' from 'B- '. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks Inc., are collectively referred to as Nortel. S&P said the outlook on NNL is stable. Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). DBRS says all trends are stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. TUPPERWARE BRANDS: Board Declares 22 Cents Quarterly Dividend ------------------------------------------------------------- Tupperware Brands Corporation's board of directors declared a regular quarterly dividend of US$0.22 cents per share, payable on July 6, 2007, to shareholders of record as of June 14, 2007. Tupperware Brands Corporation -- http://www.tupperware.com/-- is a global direct seller of premium, innovative products across multiple brands and categories through an independent sales force of approximately 1.9 million. Tupperware's product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through theTupperware brand and beauty and personal care products through its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. The company carries Moody's Investors Service's Ba3 Corporate Family Rating. TUPPERWARE BRANDS: To Buy Back Common Shares Up to US$150 Mil. -------------------------------------------------------------- Tupperware Brands Corporation's board of directors authorized the repurchase over the next five years of up to US$150 million of the Company's common shares. The Company intends to repurchase shares using stock option proceeds, which will partially offset dilution related to the options. Tupperware Brands Corporation -- http://www.tupperware.com/-- is a global direct seller of premium, innovative products across multiple brands and categories through an independent sales force of approximately 1.9 million. Tupperware's product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through theTupperware brand and beauty and personal care products through its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. The company carries Moody's Investors Service's Ba3 Corporate Family Rating. ========= J A P A N ========= AOZORA BANK: Net Profit Decline 32% in Year Ended Mar. 31, '07 -------------------------------------------------------------- Aozora Bank has reported its financial results for the fiscal year ended March 31, 2007, with a 32.1% decline in net income to JPY81.5 billion. The figure beat the bank's forecasted JPY81 billion. The decrease reflected the "decline in extraordinary profit from the reversal of reserves for possible loans losses compared with the previous fiscal year," the company explained. However, Aozora experienced its highest net revenue and operating profit in FY2007 by far to JPY114.4 billion and JPY62.4 billion respectively. Revenue went up 0.2% while operating profits increased 1.6%. According to Aozora Bank Chairman Kimikazu Noumi, they are pleased to announce that the results for year ended March 31, 2007, exceeded what the bank has forecasted and "realizing its highest level of net revenue since 2000." The bank's increasing earnings stems from its wholesale corporate lending and investment banking in the Japanese and international financial markets. For this fiscal year, Aozora predicts its net income to increase by 3.6% to JPY84.5 billion, operating profits to JPY66.5 billion from the previous year's JPY62.4 billion. About Aozora Bank Aozora Bank (formerly Nippon Credit Bank) -- http://www.aozorabank.co.jp/-- was the second Japanese credit bank nationalized in the wake of Asia's financial crisis after the Long-Term Credit Bank of Japan (now Shinsei Bank). Bad loans and Japan's "Big Bang" financial deregulation added to the bank's troubles. Traditionally a lender to small and midsized businesses, before the takeover it had started closing overseas branches and expanding its financial services. Aozora has a network of some 20 branches in Japan and four offices overseas. US investment fund Cerberus now owns 62% of the company after buying Softbank's stake (49%) in spring of 2003. Orix Corp and Millea Holdings each own 15%, and the Japanese government also owns a stake. On May 14, 2007, the Troubled Company Reporter-Asia Pacific reported that Moody's Investors Service upgraded its bank financial strength to C- from D, a notch higher from the non- investment grade. As of May 17, 2007, the bank still carries the 'C' individual rating that Fitch Ratings assigned to it on September 22, 2004. BANK OF KYOTO: Books JPY20.36 Billion Net Income in FY2007 ---------------------------------------------------------- The Bank of Kyoto Ltd. reported a net income of JPY20.36 billion for the fiscal year ended Mar. 31, 2007, a 12.1% decline from the net income of JPY23.16 billion reported for the fiscal year ended Mar. 31, 2006. The company posted revenues of JPY126.77 billion, and operating profits of JPY37.88 billion for the year ended Mar. 31, 2007, an increase of 10.8% and 11.7% respectively. Reuters Key Developments reports that the bank has reaffirmed its mid-term dividend forecast of JPY4.5 per share, and amended its year-end dividend forecast from JPY4.5 per share to JPY 5.0 per share, for the fiscal year ended March 31, 2007. Headquartered in Kyoto, Japan, The Bank of Kyoto, Ltd. -- http://www.kyotobank.co.jp/-- is a regional bank, which mainly provides banking services for corporate and individual clients. The bank operates in two business segments. The banking segment provides various banking services such as deposits, loans, commodity trading, securities investment, domestic and foreign exchange and other services. Together with its subsidiaries, the others segment is involved in the management and leasing of real estate, the research on regional economy, as well as the provision of commercial support services, credit guarantee services, investment and loan consulting services, business consulting services, credit card services and other services. Fitch Ratings on September 14, 2005, gave Bank of Kyoto a C individual rating. DAIEI INC: Buys Back 23,292,700 Type A Shares --------------------------------------------- The Daiei, Inc. has repurchased 23,292,700 shares of its Type A shares from one of its shareholders on May 10, 2007, Reuters Key Developments recounts. No other details were provided. 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. DAIEI INC: Dissolves Three Subsidiaries --------------------------------------- The Daiei, Inc. has announced the dissolution of three wholly- owned subsidiaries, Reuters Key Developments reports. The report adds that the company has dissolved one subsidiary on Apr. 27, 2007, which it will follow with the dissolution of another two companies on May 31, 2007. 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. EIGHTEENTH BANK: Announces a JPY8.5 Per Share Dividend Payout ------------------------------------------------------------- The Eighteenth Bank, Limited has amended its year-end dividend forecast from JPY5.0 per share, which was announced on November 13, 2006, to JPY8.5 per share, comprising of JPY5.0 of common dividend and JPY3.5 of performance-tied dividend for the fiscal year ended March 31, 2007, Reuters Key Development reports. The bank has yet to release its fiscal year results. Headquartered in Nagasaki Prefecture, The Eighteenth Bank, Limited -- http://www.18bank.co.jp/-- is a regional bank that operates in three business segments. The banking segment is engaged in the provision of banking services, such as such as loan services, deposit services, securities investment services, foreign trading services, foreign exchange services, investment trust services and other banking services. The Leasing segment is involved in the leasing of movable assets and others. The Others segment is involved in the provision of credit card services, venture capital services, credit guarantee services, computer services, temporary staffing services, building maintenance services and other services. Fitch Ratings assigned a C individual rating to Eighteenth Bank on November 15, 2005. The Troubled Company Reporter - Asia Pacific reported on May 1, 2007 that Fitch Ratings affirmed the individual ratings of Eighteenth Bank at C, revising the rating outlook to positive from stable. FRESENIUS AG: Moody's Affirms Ba2 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service affirmed all ratings of Fresenius AG, and changed the outlook to positive from stable. Concurrently, Moody's has also affirmed the ratings of Fresenius's subsidiary, Fresenius Medical Care & Co KGaA, and changed the outlook to positive from stable. According to Moody's, the rating affirmations for Fresenius and FME reflect the successful integration of the Helios acquisition by Fresenius AG and the acquisition of Renal Care Group by FME. "The positive outlooks for FME and Fresenius reflect the constant improvements in the operating performance of the two companies driven by organic growth supported by the favorable demographic fundamentals for healthcare services and medical equipment and the progress in de-leveraging of both entities capital structures. "While both ratings carry positive outlooks we expect a faster rating migration for Fresenius than for FME, given the broader diversification of cash flow sources and a more pronounced improvement in credit metrics expected for the next twelve months than for FME," says Christian Hendker, Moody's lead analyst for Fresenius and FME. The affirmation of Fresenius's Ba2 Corporate Family Rating (Ba2 PDR) reflects: (1) the group's sizeable scale as a global provider of healthcare services and medical products and the recurring nature of the revenue base; (2) its balanced level of geographical diversification; (3) its segmental diversification in the healthcare market supported by strong market positions; and (4) good financial flexibility. However, the rating is constrained by: (1) still relatively high financial leverage following a number of sizeable acquisitions in recent years; (2) ongoing acquisition risk and the expectation for acquisition-related cash flow constraints over the medium term; (3) shareholder orientation; and (4) exposure to regulatory changes and pricing pressure from governments and healthcare organizations worldwide. The positive outlook for Fresenius AG reflects the benefits of an improved segmental diversification due to increasing performance contributions of ProServe and Kabi which are somewhat reducing the historical dependency on the operating performance of FME. Additionally, the group's credit metrics are approaching historical levels, as reflected by Debt to EBITDA of 3.7x in the fiscal year ending Dec. 31, 2006. An upgrade in Fresenius's ratings could be triggered by a clear trend of improving CFO to Debt towards the high teens and reducing Debt to EBITDA below 3.5x. The affirmation of the Ba2 Corporate Family Rating for FME (Ba2 Probability of Default or PDR) is supported by: (1) FME's absolute scale and a strong market position as a leading global provider of dialysis products and private dialysis services; (2) continued favorable industry growth trends as well as the recurring nature of FME's revenues; (3) high profitability levels; and (4) good financial flexibility. FME's rating is constrained by: (1) its relatively high adjusted financial leverage; (2) the potential risks from the company's pure-play focus on the dialysis market, albeit mitigated by its position as a provider of both products and services; (3) the company's exposure to regulatory changes, government investigations and pricing pressure from governments and healthcare organisations worldwide; and (4) regional concentration on the North American market. The positive outlook for FME incorporates Moody's view of the stability of the dialysis market and is underpinned by favourable demographic demand drivers the rating remains constrained by relatively high financial leverage (Debt to EBITDA of 3.9x in the fiscal year ending Dec. 31, 2006). Given a relatively more concentrated business profile than Fresenius, FME's metrics would need to show a track record of Debt to EBITDA below 3.5x and CFO to Debt in the high teens on a sustained basis to accommodate a rating upgrade. Moody's notes that the rating levels for Fresenius' Ba2 Corporate Family Rating and the Ba2 Corporate Family Rating of its key subsidiary FME are not directly linked. However, Fresenius' consolidated operating performance and financial leverage are highly correlated to FME, given the full consolidation of FME's financial results (Fresenius AG holds a 36% economic interest in FME, but as result of FME's legal status as a KGaA Fresenius has 100% management control of this entity). FME remains fully controlled and hence fully consolidated by Fresenius AG as long as Fresenius owns more than 25% of FME. Moody's notes that, although a change in the consolidation method would affect the group's consolidated operating performance and cash generation, it would also result in a reduction in absolute debt levels. The previous rating action for these issuers was on 31 March 2006, when Moody's affirmed the ratings for Fresenius and FME following US anti-trust approval and the expected completion of the acquisition of Renal Care Group, Inc. Outlook Actions: * FMC Trust Finance S.a.r.l. -- Outlook, Changed To Positive From Stable * Fresenius AG -- Outlook, Changed To Positive From Stable * Fresenius Finance BV -- Outlook, Changed To Positive From Stable * Fresenius Medical Care AG & KGaA -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust II -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust III -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust IV -- Outlook, Changed To Positive From Stable * Fresenius Medical Care Capital Trust V -- Outlook, Changed To Positive From Stable Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG is the world's leading provider of dialysis products and services. For the fiscal year ended Dec. 31, 2006, Fresenius Medical Care AG generated net revenues of US$8.5 billion. Fresenius AG is a global health care company with products and services for dialysis (through Fresenius Medical Care), international healthcare services and facilities management (Fresenius ProServe) and nutrition and infusion therapies (Fresenius Kabi). For the fiscal year ending on Dec. 31, 2006, Fresenius AG generated consolidated sales of EUR10.8 billion. The company also operates facilities in Australia, Brazil, Canada, China, France, Korea, Mexico, Portugal and Sweden, among others. FURUKAWA CO: Appoints Nobuyoshi Soma as President ------------------------------------------------- Furukawa Co., Ltd. has appointed Nobuyoshi Soma as president, replacing Tetsuo Yoshino. Mr. Soma will take the position as chairman of the board on June 28, 2007, Reuters Key Developments reports. Headquartered in Tokyo, Japan, Furukawa Company Limited -- http://www.furukawakk.co.jp/e_index.htm-- is a diversified manufacturer of machinery products, metal smelting, and electronics materials with a strong presence in truck-mounted cranes and mining machinery. The company's revenue for HYE9/2005 was JPY82.6 billion. The company has overseas branches in the Netherlands, Thailand, China, the United States, Korea and Australia. As reported in the Troubled Company Reporter - Asia Pacific, on March 15, 2007, Moody's Investors Service raised the senior unsecured long-term debt rating of Furukawa Company, Limited to Ba2 from B1. Additionally, Furukawa Co.'s issuer rating was given a BB rating by the Rating And Investment Information, Inc. on May 22, 2006. At the same time, R&I rated the company's senior debt a BB. ISUZU MOTORS: Buys Back Type III and IV Preferred Shares -------------------------------------------------------- Isuzu Motors Limited will repurchase up to 25,000,000 type III preferred shares and up to 25,000,000 type IV preferred shares during the period from June 28, 2007, to June 28, 2008, Reuters Key Development reports. The report adds that the total consideration for the shares repurchase will be to JPY40 billion. Headquartered in Tokyo, Japan, Isuzu Motors Limited -- http://www.isuzu.co.jp/-- is engaged in the manufacture and sale of automobile, automobile parts, as well as industrial engines. The company carries products such as light commercial vehicles (LCVs) and commercial vehicles, which include large- size trucks and buses, small-size trucks and pickup trucks, among others. It also manufactures and sells engines and components. Through its subsidiaries, the company is also engaged in the provision of logistics services and other services. The company has offices in Japan, the United States, Mexico, Belgium, and Thailand, among others. Japan Credit Rating Agency has upgraded the ratings of Isuzu Motors Limited on its senior debt to BBB from BBB- on Dec. 7, 2006. On Dec. 6, 2006, Rating And Investment Information, Inc. upgraded its issuer rating and senior debt to BBB from BB. ISUZU MOTORS: Net Profit Surges Up to 57% in FY2007 --------------------------------------------------- Isuzu Motors Limited released its full year results for the year ended March 31, 2007, with its net profit up 57% to JPY92.4 billion from the previous year's JPY59.0 billion. Sales revenue also rose to JPY1.66 trillion in FY2007 from JPY1.58 trillion in the prior year, a difference of JPY81 billion. Operating profit which has achieved its highest by far has also ascended to JPY107 billion from the previous fiscal year's JPY90.7 billion with a JPY16.3 billion difference. Working profit is up by JPY20.9 billion to JPY114.7 billion from last year's JPY93.8 billion or a 22% difference. The increase of revenue results from both domestic and overseas earnings with domestic sales reaching up to JPY694.6 billion from JPY685.0 billion, a 1.4% increase and overseas revenue shooting higher to JPY792.9 billion from JPY713.8 billion of FY2005. Among its global distributors, Asia acquired the highest number of earnings of JPY471.0 billion from JPY443.6 billion. Isuzu's North America sales slid 4% year-on-year to JPY162.2 billion from last year's JPY170.0 billion. Asia garnered the highest operating profit among the countries where Isuzu vehicles are distributed with an increase of 5% to JPY22.1 billion, a disparity of JPY1.1 billion from the previous year's JPY21.0 billion. North America's operating profit decreased about 6% to JPY4.8 billion. Other countries totaled to JPY10.8 billion, an increase of JPY2.7 billion from the previous fiscal year. Isuzu President Yoshinori Ida, who is to be replaced by Executive Vice President Susumu Hosoi in June, was quoted by a Kyodo News report saying, "I'm delighted to report that the company has achieved record profits on the last occasion that I will announce earnings figures." FY2008 Forecast Despite the company's increasing results, Isuzu predicts its net profit to decline by 13.4% to JPY80.0 billion in year ended March 31, 2008. With its increasing operating profits for four straight years now, Isuzu sees it declining by 6.5% to JPY100 billion in FY2008. Isuzu also projects sales revenue to go down by 0.7% to JPY1.65 trillion. About Isuzu Motors Headquartered in Tokyo, Japan, Isuzu Motors Limited -- http://www.isuzu.co.jp-- is engaged in the manufacture and sale of automobile, automobile parts, as well as industrial engines. The company carries products such as light commercial vehicles (LCVs) and commercial vehicles, which include large-size trucks and buses, small-size trucks and pickup trucks, among others. It also manufactures and sells engines and components. Through its subsidiaries, the company is also engaged in the provision of logistics services and other services. Japan Credit Rating Agency has upgraded the ratings of Isuzu Motors Limited on its senior debt to BBB from BBB- on December 7, 2006. On December 6, 2006, Rating And Investment Information, Inc. upgraded its issuer rating and senior debt to BBB from BB. SANYO ELECTRIC: Narrows Bidders for Microchip Operations -------------------------------------------------------- Sanyo Electric Co. Ltd. has narrowed the number of bidders for its microchip operations to around five firms, according to Alison Tudor, writing for Reuters, citing a source familiar with the situation. Ms. Tudor said her sources identified Cerberus Capital Management LP and The Blackstone Group as among the U.S. private equity firms bidding for the chip business. A consortium including Japan's MKS Partners Ltd. has also expressed its interest, she added. Jiji Press, according to Bloomberg News, reported that potential bidders for Sanyo's semiconductor unit also include, Vestar Capital Partners and the U.K.'s CVC Capital Partners Ltd. Jiji reported that offers have been as much as JPY200 billion yen, Bloomberg noted. "Goldman Sachs and Daiwa Securities SMBC, who are working as advisers for the loss-making consumer electronics maker, are in the process of whittling down the some 20 firms who had expressed an interest in the unit," Ms. Tudor reported. According to the Reuters report, Goldman Sachs and Daiwa Securities "are basing their choice on several criteria, the most important of which is price. Other factors include their proposed business plans and strategic fit with the company's operations." The Troubled Company Reporter - Asia Pacific reported on April 20, 2007, that the Financial Times related that Goldman Sachs sent letters to large private equity groups such as Blackstone, Carlyle, Cerberus, KKR, Permira and TPG; and semiconductor companies such as Elpida, Renesas, Rohm, Hynix, and Infineon inviting them to bid for Sanyo's semiconductor business, which could fetch a few billion dollars. 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: Less Likely to Default on Bonds ----------------------------------------------- Oliver Biggadike and Keiko Ujikane of Bloomberg News reported that credit-default swaps show that Sanyo Electric Co. is less likely to default on bonds as it sheds unprofitable units. "Contracts tied to the company's JPY240 billion (US$2 billion) in bonds fell to the lowest since November, according to data compiled by Bloomberg," the report noted. Mana Nakazora, chief credit analyst in Tokyo at JPMorgan Securities Japan Co. Ltd. told Bloomberg that the market doesn't care if the company sells its semiconductor or home electronics division. "The important thing is that they sell something and focus on their core business." According to Messrs. Biggadike and Ujikane, "the chance of the company failing to meet its debt obligations within the next five years has declined to 6% from 43% in November 2005, based on a JPMorgan valuation model that takes into account swap prices." Bloomberg pointed out that Sanyo Electric may be able to repay the JPY80 billion in bonds due this year using sale proceeds of its semiconductor unit. Bloomberg reporters called Sanyo Electric spokesman Akihiko Oiwa in Tokyo but he declined to comment. 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. SOJITZ CORP: Retains 7% Stake in Coppabella & Moorvale JV --------------------------------------------------------- Sojitz Corporation's interest in the Coppabella and Moorvale Joint Venture is unchanged at 7% following the restructuring of the Olive Downs North project and Moorvale Pits C & D. Macarthur Coal Limited disclosed the completion of the sale of a 16.7% interest in the Olive Downs North project and a 26.7% interest in the undeveloped Moorvale Pits C & D to partners in the Coppabella and Moorvale Joint Venture. The sale was undertaken in conjunction with CITIC selling a 3% interest in Olive Downs North and extends the Joint Venture's resource base. The interests in the Joint Venture, which remain unchanged, comprise: * Macarthur Coal 73.3% * CITIC 7.0% * Marubeni Corporation 7.0% * Sojitz Corporation 7.0% * JFE Shoji Trade Corporation 3.7% * NS Trading Co Ltd 2.0% The sale followed the splitting of the Olive Downs project into two, with Olive Downs North comprising the tenement area north of the Isaac River (the river cuts across the tenement) and Olive Downs South comprising the tenement area south of the river. Macarthur Coal's interest in Olive Downs North was previously 90% with CITIC holding the remaining 10%. The centre of Olive Downs North is 16kms south of the Moorvale Mine coal preparation plant. Macarthur Coal's holding in Olive Downs South is 90% and CITIC's ownership is 10%. Macarthur Coal was previously sole owner of Pits C & D which are at the southern end of the Moorvale Mine. About Sojitz Corp. The Sojitz Group was essentially formed through the business integration between Nichimen Corporation and Nissho Iwai Corporation, two companies with over a century of history. This business integration took shape in December 2002 and was followed on April 1, 2003, by the incorporation of a joint holding company. As a public listed company, this holding company was incorporated to pursue business integration, management supervision and comprehensive disclosure. Heralding a new era, the principal operating arms of the Group, Nichimen Corporation and Nissho Iwai Corporation were merged to form a new single entity, Sojitz Corporation on April 1, 2004. On October 1, 2005, the final phase of business integration was completed through the merger of the holding company and Sojitz Corporation. Headquartered in Tokyo, Japan, Sojitz Corporation -- http://www.sojitz.com/en/index.html-- is a trading company with eight offices across the U.S. Sojitz operates in approximately 50 countries around the world through roughly 500 subsidiaries and affiliated companies. Sojitz's business activities are wide-ranging, from machinery and aerospace to textiles and food. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 28, 2007, that Standard & Poor's Ratings Services raised its long-term issuer credit rating on Sojitz Corp. to 'BB+' from 'BB' and removed the rating from CreditWatch where it was placed on Apr. 28, 2006, with positive implications. The upgrade follows Sojitz's conversion of a total JPY205 billion of its JPY300 billion in outstanding convertible bonds into common shares by Feb. 26, 2007. * Japan's Major Consumer Finance Companies Hit By Credit Crunch --------------------------------------------------------------- Standard & Poor's Ratings Services said in a report published on May 16, 2007, that Japan's five major consumer finance companies posted significant net losses totaling JPY1.8 trillion for fiscal 2006 (ended March 31, 2007), due mainly to an increase in reserves for refunds for overcharged interest. The increase in reserves reflects a rapid upsurge in refund claims while consumer finance companies are tightening lending decisions. It also reflects changes in the auditing policy on reserves. The five major consumer finance companies include Aiful Corp. (BBB+/WatchNeg/A-2), ACOM Co. Ltd. (BBB+/Negative/A-2), Promise Co. Ltd. (BBB+/Negative/A-2), Sanyo Shinpan Finance Co. Ltd. (BBB/Negative/A-2), and Takefuji Corp. (BBB/Negative/--). On May 15, 2007, Standard & Poor's placed its 'BBB+' long-term counterparty credit and long-term senior unsecured debt ratings on Aiful Corp. on CreditWatch with negative implications, reflecting a larger increase in reserves for refunds for overcharged interest than at other Japanese consumer finance companies. The CreditWatch placement also reflects concern over Aiful's ability to cope with further changes in the business environment, such as a potential increase in refunds and intensifying competition over lending rates, given its weaker capitalization than industry peers with comparable ratings. As for the other four companies, Standard & Poor's is not considering taking any immediate rating actions following the accounting results as the conditions of bad debt write-offs are in line with the current ratings. However, if the impact of tighter lending standards becomes more serious than expected and increases in refunds for interest payments as well as in other credit costs affect their financial profiles, Standard & Poor's is likely to review the ratings on the other four companies. The total transfers to reserves for refunds for interest payments (on a consolidated basis, including debt forgiveness) for the five companies amounted to JPY1.8 trillion. The increase in reserves reflected a change to a more conservative reserve policy with the period covered by the reserves being extended from one year to several years depending on company and asset type. It also reflected a sharp rise in refund claims from borrowers with multiple debts. This was in reaction to the toughening of consumer finance companies' lending standards in preparation for the expected increase in the maximum lending rate by June 2010. Total reserves for refunds for interest payments for the five companies stood at an appropriate level of about five times the total of refunds for interest payments and debt forgiveness for the previous year. Additional reserves may be needed, given that the amount of refunds is likely to remain high or even increase in the near term. Under such circumstances, the five companies' average ratio of credit costs to total loans, including debt forgiveness relating to refunding overpaid interest, increased to 8.6% at March 2007 from 6.5% a year ago. Loan losses excluding debt forgiveness at most companies slightly decreased, which implies a temporary pause in loan defaults attributable to personal bankruptcies. The average outstanding balance of loans (on a consolidated basis) for the five companies also decreased by 6.7% year on year. This decrease was attributable to each company's more prudent lending stance toward customers with a number of loans from other lenders, as well as their restraint in advertising after increased criticism toward the industry in relation to the problem of borrowers with multiple debts. Another reason was the increase in debt forgiveness amounts relating to refunds for interest payments. The relatively small decline in loan balances compared to the drop in the acceptance ratio for new loans and the decrease in advertising expenses, however, reflect the relatively strong brand recognition and business franchises of the five companies. In addition to this, the tougher credit standards are expected to lead to an improvement in asset quality as well as a decline in credit costs in the long term. Each company's average loan yield for fiscal 2006 declined as a result of an increase in the number of customers to whom more favorable interest rates were applied, the introduction of new products, and an increase in delinquent loans. While average funding rates slightly increased due to rising market rates, Promise's funding rates declined, which demonstrates that differences, based on varying funding structures, exist among consumer finance companies. For its part, ACOM announced the launch of new products with interest rates kept within the range of the Interest Rate Ceiling Law. While Standard & Poor's expects the average lending rate to fall gradually through fiscal 2010, profit deterioration may become worse than expected if existing customers are replaced faster than assumed or if competition over interest rates intensifies further. The average capital ratio of the five companies substantially declined to 19.4% at March 2007 from 37.6% a year ago. This was due to the posting of substantial net losses. The reserves for refunds for interest payments (taxable), which were the main cause for the losses, may ultimately contribute to profits if they decrease in the future. However, the reserves cannot be recognized as part of capital at this stage, as the refunds for interest payments remain on an increasing trend and the ultimate impact of reducing credit remains uncertain. Given the significant changes expected in the regulatory environment, as well as in competition, the major consumer finance companies would need to maintain a higher capital ratio compared with that for other nonbanks (credit card companies or leasing companies, etc.). Although each company expects the ratio of credit costs to total loans to further rise this year, they also expect a turnaround due to the substantial decrease in losses relating to refunds for interest payments. However, if the refunds for interest payments increase more rapidly, additional reserves would be needed, which may lead to a downward revision of the financial results. Standard & Poor's expects that loan losses would increase following a decline in the extension of credit due to a narrowing of suitable borrowers brought about by the regulatory changes in the money lending industry. Nevertheless, if it becomes certain that loan losses will increase more than expected, Standard & Poor's may revise the ratings. In addition, Standard & Poor's will focus on lowering lending rates and their impact on profits, fundraising conditions and funding costs, and the direction of revisions to the installment sales law. ========= K O R E A ========= TEXCELL-NETCOM: Completes 1,658,334 Common Shares Issuance ---------------------------------------------------------- Texcell-Netcom Co., Ltd. has completed its issuance of 1,658,334 common shares through a private placement, Reuters reports. According to the report, the shares par value is KRW500 with an offer price of KRW1,200. The Company's total number of outstanding common shares is now 36,268,165. The confirmed listing date is May 10, 2007, the report adds. With headquarters in Seoul, Korea, Texcell-Netcom Co., Ltd. -- http://www.texcell-netcom.co.kr/eng/-- provides network solution and electric parts. The company has two main businesses: Network Solution business, which designs and constructs network systems, and Relay business, which provides power relays used in televisions (TVs), refrigerators, washing machines, monitors, office automation machines, vending machines and boilers and telecom relays used in computer modems and other communication equipment. Korea Ratings placed a B+ rating on the company's unsecured convertible bonds on Dec. 7, 2006. SHINWHA INTERTEK: Establishes Shinwha Intertek in Slovakia ---------------------------------------------------------- Shinwha Intertek Corporation has established its unit Shinwha Intertek Slovakia s.r.o in Slovakia. According to the report, the subsidiary, which has a KRW12,559,500 capital, will be engaged in the provision of display optical films. Hwasung Kyonggi, South Korea-based Shinwha Intertek Corporation -- http://www.shinwha.com/main01_E.html-- is engaged in the manufacture and sale of adhesive tapes for the electronic, electronic equipment, architecture and other industry fields. Korea Ratings gave the company's convertible bonds a BB rating on Oct. 24, 2006. The company's commercial papers also carry Korea Rating's B rating effective Feb. 2, 2007. SPATIALIGHT INC: March 31 Balance Sheet Upside-Down by US$9.3MM --------------------------------------------------------------- SpatiaLight Inc.'s balance sheet at March 31, 2007, showed US$5,759,914 in total assets and US$15,071,535 in total liabilities, resulting in a US$9,311,621 total stockholders' deficit. At March 31, 2007, the company's balance sheet also showed strained liquidity with US$789,760 in total current assets available to pay US$13,883,535 in total current liabilities. Spatialight Inc. reported a net loss of US$5,885,456 on revenues of US$46,448 for the first quarter ended March 31, 2007, compared with a net loss of US$5,632,669 on revenues of US$85,694 for the same period ended March 31, 2006. Revenue from one customer, LG Electronics, accounted for 96% and 82% of total revenue for the three months ended March 31, 2007, and 2006, respectively. In March 2007, the company was informed by LGE of their intent to discontinue production of rear projection televisions. The company does not expect significant future sales to LGE and is negotiating with LGE for termination compensation under their exclusive supply agreement. The net loss for the first quarter of 2007 includes an asset impairment loss of US$1,429,925 related to the company's building in South Korea. Non-cash interest expense was approximately US$1,889,000 and US$1,013,000 for the three months ended March 31, 2007, and 2006, respectively. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?1f42 Going Concern Doubt As reported in the Troubled Company Reporter on March 23, 2007, Odenberg, Ulakko, Muranishi & Co. LLP, in San Francisco, expressed substantial doubt about SpatiaLight Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses, negative cash flows from operations, negative working capital position, and stockholders' deficit. About SpatiaLight SpatiaLight, Inc. -- http://www.spatialight.com/-- founded in 1989, manufactures high-resolution Liquid Crystal on Silicon microdisplays for use in high definition televisions and other display applications. The company manufactures its products at its facility in South Korea. =============== M A L A Y S I A =============== KAI PENG: Securities Commission Rejects Reform Plan --------------------------------------------------- Malaysia's Securities Commission has rejected Kai Peng Bhd's proposed restructuring plan, which was submitted by the company for approval on Feb. 14. According to the company's disclosure with the Bursa Malaysia Securities Bhd, it had learned of the SC's decision on May 15, through a letter dated May 10 from the Commission. The decision to reject the plan, according to the Securities Commission, was based on "inter-alia, concerns over the future viability of the core steel bar business of Maju Steel Sdn Bhd." Joseph Chin, writing for The Edge Daily, says that under Kai Peng's corporate exercise, it had proposed to transfer Maju Steel together with its subsidiaries to a new company (Newco) for MYR15 million to be set-off against the MYR15 million owing by Kai Peng to Newco. The consideration for the transfer of Maju Steel is based on a premium on the adjusted net asset value of Maju Steel as at the cut-off date of MYR6 million. "The Board will deliberate on the next course of action to be taken and an announcement will be made in due course," the company told the bourse. * * * Headquartered in Selangor, Darul Ehsan, Malaysia, Kai Peng Berhad Kai manufactures, markets and distributes steel products. Other activities include provision of information and communication technology services, undertaking steel fabrication and engineering works and investment holding. Operations are carried out principally in Malaysia. Kai Peng was, on May 9, 2006, classified under Practice Note 17 of Bursa Malaysia Securities Berhad after its shareholders' equity failed to meet the listing requirement. As an affected listed issuer, the Company is required to submit a financial regularization plan or risk the possibility of delisting. On November 9, 2006, the Troubled Company Reporter - Asia Pacific reported that the external auditors of Kai Peng Berhad, Ernst & Young, have raised substantial doubt on the company's and the group's ability to continue as going concerns after auditing their financial statements for the fiscal year ended June 30, 2006. Specifically, Ernst & Young pointed out these factors in Kai Peng's June 30, 2006 financial statements: -- The group and the company reported net losses of MYR62,181,981 and MYR53,789,921 respectively; -- The group and the company's current liabilities exceeded their current assets by MYR77,245,002 and MYR49,988,562 respectively; and -- The group and the company's June 30, 2006, balance sheet showed shareholder's deficit of MYR36,300,109 and MYR34,116,889 respectively. Kai Peng Bhd's unaudited balance sheet as of Dec. 31, 2006, showed a solvency problem with total assets of MYR105.34 million and total liabilities of MYR143.17 million, resulting in a shareholders' deficit of MYR37.82 million. MALAYSIA AIRLINES: Maldives Air Initiates Arbitration Proceeding ---------------------------------------------------------------- Malaysian Airline System Bhd disclosed with the Bursa Malaysia Securities Bhd that it is facing arbitration at the ICC International Court of Arbitration in Paris, after Air Maldives Ltd alleged that the airline had failed to perform its duties under a management agreement signed on Jan. 16, 1996. According to the company's disclosure, it said that the notice referred to the memorandum of understanding dated July 29, 1994, between the government of Maldives and Malaysian Helicopter Services Bhd (MHSB), now known as Nalur Corp Bhd. The notice also referred to the shareholders agreement dated Oct. 1, 1994, between the government of Maldives and MHSB, and the management agreement between MAS and Maldives Air. The notice of arbitration did not specify any amounts claimed by Maldives Air, the airline added. * * * Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with airlines partners. The carrier posted a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging whistle-blowing and stop corporate sponsorship. PROTON HOLDINGS: Asks for More Money to Pay Off Dealers ------------------------------------------------------- Proton Holdings has asked the Malaysian government for MYR16 million to carry out its consolidation exercise and pay off dealers to end their dealership, Business Times reports. The Troubled Company Reporter - Asia Pacific reported on April 9, 2007, that Proton plans to downsize 20% of its sales network by end-June 2007 as part of initiatives rolled out to enhance the operational efficiency, cost competitiveness and value to customers. Under this voluntary separation scheme, for which Proton has already been given MYR10 million to execute, car dealers were offered MYR150,000 in "relief assistance" to close their Proton dealerships, Business Times says. However, according to the newspaper's sources, many car dealers snubbed the offer because it was too low and some dealers had invested at least MYR200,000 to set up their operations. Some dealers, the sources told The Times, have written formally to Proton asking for more while others have requested for amounts of up to MYR500,000, through the dealers' association. According to Business Times, its sources said Proton had proposed to increase the relief assistance from MYR150,000 to MYR300,000 per dealer, adding that dealers who had already accepted Proton's earlier offer would also be entitled to the higher amount. Proton plans to reduce the number of dealers from 293 as of March, to 247 by the middle of the year, and 227 by year-end, the report says. * * * Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.protonedar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. * * * Proton was reported as among Malaysia's worst performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner, in order to boost sales and become more competitive. STAR CRUISES: Posts US$79 Million Net Loss in First Quarter 2007 ---------------------------------------------------------------- Star Cruises Group incurred a net loss of US$79.39 million on US$564.88 million of turnover in the first quarter ended March 31, 2007, as compared with a net loss of US$35.03 million on US$513.64 million of turnover in the same period in 2006. According to the company, the decrease in its net revenue yield was primarily due to the downward pricing pressure on its unit's, the Norwegian Cruise Line, inter island cruises in Hawaii, as well as lower on board revenue in the Star Cruises Asia fleet. In addition, Star Cruises said that its operating expense increased as compared to 1Q 2006, mainly due to a charter hire fee it paid for the delivery of Norwegian Crown, which was purchased in November 2006 by a third party. Meanwhile, Star Cruises' European and American subsidiary, NCL Group, posted a revenue yield, which fell 5.3% due to "a significant decrease in cruise ticket prices for NCL Group's inter-island cruises in Hawaii." As a result, the company plans to withdraw m.v. Pride of Hawaii from service in Hawaii in February 2008 and will then be deployed for service on European routes beginning next summer. * * * Star Cruises Limited -- http://www.starcruises.com/-- is a Company publicly listed in Hong Kong and is a core member of the Genting Group and 36.1% owned by Resorts World, which is, in turn, 57.7% owned by Genting Berhad. Star Cruises operates 22 ships with 35,000 lower berths under five main brands: Star Cruises and Cruise Ferries, which service Asia Pacific, and three brands under NCL. The company also has operations in Malaysia. Standard & Poor's Ratings Services on April 11, 2007, said its BB- long-term corporate credit ratings on Malaysia-based cruise operator Star Cruises Ltd., remain on CreditWatch with negative implications. The ratings were placed on CreditWatch on Dec. 11, 2006, following the announcement that Genting International PLC had won its SD$5.2 billion bid to build Singapore's second integrated resort on Sentosa Island. Moody's Investors Service confirmed the B1 corporate family rating of Star Cruises Limited. The rating outlook is stable. This concludes the ratings review initiated on January 25, 2007. ==================== N E W Z E A L A N D ==================== BRADRAM EQUITIES: Wind-Up Petition Hearing Set for June 28 ---------------------------------------------------------- An application to wind-up the operations of Bradram Equities Ltd. will be heard before the High Court of Auckland on June 28, 2007, at 10:00 a.m. BMW Financial Services Limited filed the wind-up petition against the company on March 5, 2007. The solicitor of BMW Financial is: George Bogiatto West Plaza Building, Level 1 3 Albert Street, Auckland New Zealand CITE DOCUMENT: Fixes June 1 as Last Day for Receiving Claims ------------------------------------------------------------ Cite Document Solutions Ltd., which is in liquidation, requires its creditors to file their proofs of debt by June 1, 2007. Failure to prove debts by the due date will exclude a creditor from sharing in the company's dividend distribution. The company's liquidators are: John T. Whittfield Peri Micaela Finnigan McDonald Vague PO Box 6092 Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz FRESH CUT: Faces CIR's Wind-Up Petition --------------------------------------- On March 29, 2007, the Commissioner of Inland Revenue filed a wind-up petition against Fresh Cut Processors Ltd. The petition will be heard before the High Court of Christchurch on May 28, 2007, at 10:00 a.m. The CIR's solicitor is: Julia Dykema c/o Technical and Legal Support Group Ground Floor Reception 518 Colombo Street PO Box 1782, Christchurch 8140 New Zealand Telephone:(03) 968 0809 Facsimile:(03) 977 9853 HUIA DEVELOPMENTS: Creditors' Proofs of Debt Due on June 1 ---------------------------------------------------------- Huia Developments Ltd was placed under liquidation on May 4, 2007. Creditors are required to prove their debts by June 1, 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 New Zealand Telephone:(09) 376 7506 Facsimile:(09) 376 6441 M.M.M. LTD: Court to Hear Wind-Up Petition on May 28 ---------------------------------------------------- An application to wind up the operations of M.M.M. Ltd. will be heard before the High Court of New Plymouth on May 28, 2007, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition on March 22, 2007. The CIR's solicitor is: Kay S. Morgan c/o 1 Bryce Street Hamilton, New Zealand Telephone:(07) 959 0373 MAYFIELD HOLDINGS: Court Appoints Levin & Jordan as Liquidators --------------------------------------------------------------- The High Court at Auckland appointed Henry David Levin and Barry Phillip Jordan as the liquidators of Mayfield Holdings Ltd. on April 19, 2007. The Liquidators can be reached at: Henry David Levin Barry Phillip Jordan c/o Amy Sexton PPB McCallum Petterson Forsyth Barr Tower, Level 11 55-65 Shortland Street Auckland New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 MCFALL FARM: Enters Into Voluntary Liquidation ---------------------------------------------- McFall Farm Company Ltd. entered into voluntary liquidation on April 19, 2007, and appointed Trevor James Croy as liquidator. The Liquidator can be reached at: Trevor James Croy 257 Havelock Street Ashburton New Zealand Telephone:(03) 308 8353 Facsimile:(03) 308 1535 PROTECT SECURITY: Names Gavin Richard O'Dea as Liquidator --------------------------------------------------------- Gavin Richard O'Dea, an accountant at Hawera, was appointed as liquidator of Protect Security Group Ltd. on April 23, 2007. The Liquidator can be reached at: Gavin Richard O'Dea PO Box 140, Hawera New Zealand Telephone:(06) 278 8060 Facsimile:(06) 278 1377 ST VINCENT: Wind-Up Petition Hearing Set for July 12 ---------------------------------------------------- The High Court at Auckland will hear a petition to wind up the operations of St Vincent Ltd. on July 12, 2007, at 10:00 a.m. The petition was filed by Window Treatments New Zealand Limited on April 13, 2007. The solicitor of Window Treatments is: Kevin Patrick McDonald Global House, 4th Floor 19-21 Como Street PO Box 331065, Takapuna Auckland, New Zealand Telephone:(09) 486 6827 Facsimile:(09) 486 5082 WORLDSPORT LTD: Subject to PMP Print's Wind-Up Petition ------------------------------------------------------- PMP Print Limited filed on Dec. 21, 2006, a wind-up petition against Worldsport Ltd. The wind-up petition will be heard before the High Court of Auckland on May 31, 2007, at 10:00 a.m. The solicitor of PMP Print is: C. R. Vinnell c/o Anthony Harper, Lawyers Anthony Harper Building, Level 5 47 Cathedral Square PO Box 2646, Christchurch New Zealand Facsimile:(03) 366 9277 ===================== P H I L I P P I N E S ===================== BANK OF PHIL. ISLANDS: Posts PHP3.2-Bil. Net Income in 1Q 2007 -------------------------------------------------------------- The Bank of the Philippine Islands disclosed a net income of PHP3.2 billion in the first quarter of 2007, which is 28.4% higher than the PHP2.5 billion net income in 2006. Total resources decreased 2.65% to PHP566.9 billion, while total liabilities also went down to PHP499.5 billion. As a result, total capital funds rose to PHP66.26 billion as March 31, 2007. The operating performance was attributed to improved revenues of PHP1.9 billion inclusive of a PHP416 million nonrecurring gain on sale of a real estate property of an insurance subsidiary. Revenue growth was, however, tempered by increases in operating expenses, impairment losses and provision for income tax by PHP780 million, PHP350 million and PHP53 million, respectively. The growth in revenues came largely from the PHP1.4 billion or 51.8% improvement in non-interest income. Net interest income also contributed to revenue growth as it posted a PHP520 million or 11.2% increase. The net interest income increase came mainly from the PHP53.2 billion expansion in average asset base. Net interest margin was relatively flat. Interest income was up by PHP252 million while interest expense went down by PHP267 million. Other income reached PHP4.1 billion or PHP1.4 billion over last year's PHP2.7 billion. This was mostly attributed to income from foreign exchange and securities trading and income attributable to insurance operations. Income from foreign exchange and securities trading posted a PHP635 million or 61.1% increase on account of strong securities trading profits. Income from insurance operations grew by PHP624 million largely due to the gain on the sale of a property and good investment performance. Service charges and commissions were also up by PHP46 million due to higher transaction volume. Other operating income rose by PHP141 million on higher rental income on bank assets and stock brokerage fees. The higher total other income resulted to a Gross receipts tax increase of PHP53 million or 36%. Impairment losses increased 95% to PHP719 million on accelerated loan loss provisioning. Other expenses at PHP4.6 billion were ahead by 20.5% versus last year's PHP3.8 billion inclusive of one-time expenses. Compensation and fringe benefits were higher by PHP238 million or 14.1% due to increase in salaries & wages and some one-off accruals. Occupancy and equipment-related expenses were also up by PHP122 million or 11.8% on account of higher depreciation, rent, software license costs and leased lines expense. The increase in other operating expense of PHP420 million was due to settlement of prior period taxes, higher regulatory costs on deposits and other miscellaneous costs. Current income tax was up by PHP252 million or 48.89% as a result of higher taxable income. Deferred income tax increased by PHP199 million or 233.5% due to higher impairment losses level. Increase in the income of Minority Interest by PHP18 million or 41.6% was due to the higher income of our insurance subsidiaries. Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is the oldest bank in South East Asia and is the second largest commercial bank in the Philippines in terms of assets, deposits, loans and capital base in the year 2003. The bank has two major products and services categories: the first covers its deposit taking and lending/investment activities, while the second covers income derived from all services other than deposit taking, lending and investing, which are generally in the form of commissions, service charges and fees. The bank carries Fitch Rating's C individual rating. BANKARD INC: Posts PHP16 Million Net Income for First Qtr. 2007 --------------------------------------------------------------- Bankard Inc. turned around with a net income of PHP16.8 million in the quarter ended March 31, 2007, compared to the PHP247 million net loss in the same period last year. Total assets increased 2.1% to 971.1 million from the PHP950.5 million at December 31, 2006, while total liabilities increased 1.3% to PHP272.72 million from PHP268.9 million at December 31, 2006. As a result, total equity rose 2.4% to PHP698.4 million. The net income for the March 2007 quarter is attributed to revenues of PHP43.1 million from service fees. The company also recovered PHP19.4 million from the collection of fully provided credit card receivables. Cost and expenses totaled PHP48.4 million in the first quarter of 2007, as compared to PHP736.9 million in 2006. Bulk of the expenses in 2007 are manpower costs for servicing the credit card operations, while costs in expenses in 2006 are funding costs, impairment losses, manpower, advertising and promotion and occupancy and related costs. The company cites the sale to Rizal Commercial Banking Corp. as the reason for the increase of total assets in the first quarter. After the sale to RCBC, the Balance Sheet of Bankard showed total assets of PHP971.1 million. Bulk of the assets is in cash and cash equivalents. Cash and cash equivalents showed an increase of PHP59.1 million or 17% versus December 31, 2006. Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned subsidiary of RCBC Capital Corporation. It was organized by PCIBank in December 1981 as Philippine Commercial Credit Card, Inc. to engage in domestic credit card operation. It issued the country's first credit card by a commercial bank. On July 8, 1992, PCCCI changed its corporate name to Bankard Inc. Bankard is a licensee of Mastercard International Incorporated, JCB International Co., Ltd. and VISA International Service Association to issue credit cards accepted by affiliated banks and merchant establishments worldwide. The company markets a line of credit cards, which includes Bankard MasterCard, Bankard Visa, Bankard JCB Standard and Premiere and its latest, myDream JCB. On top of the PHP597.6 million net loss for the year ended December 31, 2006, the bank also suffered two yearly net losses of PHP422.4 million and PHP597.6 million for the years ended December 31, 2005 and 2004, respectively. SAN MIGUEL: Planned Spin Off Cues S&P's Negative Watch ------------------------------------------------------ Standard & Poor's Ratings Services placed its 'BB' long-term foreign currency corporate credit rating on San Miguel Corp. on CreditWatch with negative implications following an announcement that the company plans to spin off its domestic beer and regional packaging operations, and invest in power, utilities, mining, and infrastructure businesses. The CreditWatch placement reflects uncertainties about San Miguel's business plan for the proposed investment in industries where the company has little experience. "The spin off is likely to generate a significant amount of cash and boost San Miguel's net profit in 2007," said Standard & Poor's credit analyst Judy Kwok-Cheung. The company's financial position over the medium term could, however, be negatively affected. The company's plan to invest in power, utilities, mining, and infrastructure businesses is in line with the government of the Philippines' initiatives to strengthen the country's infrastructure. "Nevertheless, the lack of a track record in these complicated and capital intensive industries could represent a major challenge for San Miguel," Ms. Kwok-Cheung said. The CreditWatch placement is likely to be resolved after a detailed review of San Miguel's business strategy, capital expenditure and funding plans, and expected investment returns. A negative outlook could be assigned or the corporate credit rating could be lowered if the company's strategy leads to high earnings volatility and a weakening financial metrics. San Miguel has yet to respond to S&P's recent enquiries about the reported spin-off plan. SAN MIGUEL: Spin-Off Plans Cue Moody's to Review Ba1 Rating ----------------------------------------------------------- Moody's Investors Service has put on review for possible downgrade the Ba1 local currency corporate family rating of San Miguel Corporation. The rating action is in response to the company's recently announced plans to spin off its domestic beer business and regional packaging business, and to expand into mining, power, infrastructure and utilities businesses. "The review for possible downgrade reflects uncertainties as to the future business and financial profiles of SMC," says Renee Lam, a Moody's Vice President/Senior Analyst, adding, "The company is venturing into businesses in which it does not have any prior experience, while its access to profits and cash flow from its traditional core businesses will diminish after these businesses have been spun off." Domestic beer, one of the units to be spun off, has been a core profit contributor to SMC. And while expansion into these new sectors could open up additional growth avenues for the company, these businesses are more capital intensive, and could be subject to higher regulatory uncertainties, compared to SMC's traditional activities. Moody's review will focus on the impact of the proposed spin off on the overall credit profile of SMC. The review will also evaluate SMC's business expansion strategies, and the associated capital expenditures and funding plans. SMC is the third largest corporation in the Philippines in terms of revenue, and the largest food and beverages company in Southeast Asia. SMC is engaged in the production, processing and marketing of alcoholic beverages and soft drinks, food and packaging products in the Philippines. It also has food and beverage operations in Australia. WEST CORP: March 31 Balance Sheet Upside-Down by $2.1 Billion ------------------------------------------------------------- West Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended March 31, 2007. For the quarter ended March 31, 2007, the company reported net income of $9,019,000 down from $41,064,000 for the same period in 2006. Revenues however went up with $508,633,000 in the period ended March 31, 2007 compared to $424,738,000 for the period ended March 31, 2006. At March 31, 2007, the company's balance sheet showed $2.7 billion in total assets and $3.9 billion in total liabilities resulting in a stockholders' deficit of $2.1 billion. The balance sheet however also showed that the company is liquid with $692 million in total current assets and $535 million in total current liabilities. A full-text copy of the company's March 31, 2007 quarterly report is available for free at http://ResearchArchives.com/t/s?1f05 About West Corp. Based in Omaha, Nebraska, West Corp. -- http://www.west.com-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company's integrated suite of customized solutions includes customer acquisition, customer care, automated voice services, emergency communications, conferencing and accounts receivable management services. The company also has operations in Australia, Canada, China, Hong Kong, India, Philippines, Singapore, Switzerland and the United Kingdom. ================= S I N G A P O R E ================= LEAR CORPORATION: Picks Wendy Foss as Corporate Secretary --------------------------------------------------------- Lear Corporation has elected Wendy L. Foss to the position of corporate secretary in addition to her responsibilities as vice president - Finance and Administration, and Liam E. Hart has been promoted to deputy general counsel, effective immediately. Both Ms. Foss and Mr. Hart will report to Daniel A. Ninivaggi, executive vice president and general counsel. "Wendy and Liam are experienced professionals who have excellent track records in areas of increasing responsibility," commented Dan Ninivaggi. "Wendy's experience as deputy corporate secretary, chairperson of our Corporate Compliance Committee, assistant controller and a variety of other Finance and Administration positions make her the perfect candidate for this expanded role." "As deputy general counsel, Liam will assume greater management responsibility of legal matters in addition to overseeing our outside counsel relationships in North America," added Mr. Ninivaggi. "In addition, he will continue to be directly involved in significant commercial, product liability and warranty matters. We are fortunate to have individuals of their caliber on our Lear team." Ms. Foss earned a Bachelor of Science in Business Administration from Central Michigan University and a Master of Science degree in Finance from Walsh College. A Certified Public Accountant, Ms. Foss sits on the Finance Committees for the Visiting Nurse Association, Inc., and Inforum (formerly known as the Women's Economic Club). Mr. Hart earned his Bachelor of Arts in Economics and Business Administration from Kalamazoo College and his Juris Doctorate summa cum laude from the University of Detroit School of Law, where he was a senior editor for the Law Review. About Lear Corp. Headquartered in Southfield, Michigan, Lear Corporation (NYSE: LEA) -- http://www.lear.com/-- supplies automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. Lear has operations in these Asian countries: Singapore, China, India, Japan, Thailand, and the Philippines. * * * The Troubled Company Reporter - Asia Pacific reported May 17, 2007, Moody's Investors Service assigned a B2 corporate family rating to AREP Car Acquisition Corp., the corporate entity that will be established to affect the consummation of the proposed acquisition and subsequent merger of Lear Corporation into a subsidiary of American Real Estate Partners, L.P. At the same time, the rating agency confirmed Lear's existing ratings consisting of: -- a B2 corporate family rating, -- B3 senior unsecured notes, and -- B2 secured bank term loan. The rating outlooks for, and revised Lear and Lear Newco's outlook to, are stable from ratings under review for possible downgrade. On Feb. 15, 2007, following Lear's agreement to be acquired by Carl Icahn-controlled American Real Estate Partners, L.P., Standard & Poor's Ratings Services lowered its corporate credit rating on Lear to 'B' from 'B+' and placed its ratings on CreditWatch with negative implications. PETROLEO BRASILEIRO: Production Drops 0.8% in April --------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA said in a statement that its output decreased 0.8% to 2.29 million barrels of oil equivalent per day in April, compared to 2.31 million barrels of oil equivalent per day in March. Business News Americas relates that the April production includes a 133,000-barrel of oil equivalent per day international output. The production in April was also lower than the 2.30-million barrel of oil equivalent per day average for the year to date. Petroleo Brasileiro Chief Financial Officer Almir Barbassa said in a conference call, "We are trying to recover some of the lost output by speeding up some projects and rescheduling some planned maintenance stoppages." BNamericas notes that domestic oil and natural gas liquid output in April dropped 1.8% to 1.77 million barrels per day, from 1.81 million barrels per day in March, with the Campos offshore basin providing 1.47 million barrels per day and offshore in total producing 1.55 million barrels a day. According to BNamericas, Petroleo Brasileiro blamed the decrease of production on the scheduled stoppages at three of its platforms in these fields: -- Marlim, -- Bicudo, and -- Corvina. Petroleo Brasileiro also suffered an unexpected stoppage in the Golfinho field in the second half of April, BNamericas says. Petroleo Brasileiro's exploration and production manager Hugo Repsol Junior said in a conference call, "We had a decline in the production from Marlim field, where we had an operational problem. Our P-37 oil platform had a reduction in output, but the problem has been fixed." Petroleo Brasileiro's April gas production decreased to 62.1 million cubic meters per day -- including international output of 18.7 million cubic meters a day, which is 0.5% higher compared to March -- compared to 62.2 million cubic meters per day in March, BNamericas states. About Petroleos de Venezuela Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded in 1953. The company explores, produces, refines, transports, markets, and distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's Investors Service. The Troubled Company Reporter - Asia Pacific reported on May 16, 2007, Fitch Ratings upgraded the foreign currency Issuer Default Rating of Petroleos Brasileiro to 'BBB-' and its wholly owned subsidiary, Petrobras International Finance Company; PIFCo is unconditionally guaranteed by Petrobras. Fitch also assigned a local currency IDR of 'BBB' to Petrobras. The Rating Outlook for all IDRs is Stable. Approximately US$6.0 billion of debt securities are affected. These securities are upgraded to 'BBB-' from 'BB+' by Fitch. REFCO INC: Plan Administrators Want Bar Date Extended to June 29 ---------------------------------------------------------------- The Plan Administrators for Refco Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to further extend the Administrative Claims Objection Deadline through and including June 29, 2007. When Refco, its affiliates, including Refco Capital Markets, Ltd., filed for bankruptcy, about 210 administrative claims were asserted. To date, roughly 15 of those claims have not been objected to or resolved by RJM, LLC, the duly appointed Plan Administrator of the Reorganized Debtors' Chapter 11 cases, and Marc S. Kirschner, as Plan Administrator of the RCM estate. The Plan Administrators state that by virtue of filing their request, the Administrative Claims Objection Deadline is automatically extended until entry of an order approving or denying the extension. The Plan Administrators assert that an extension of the Administrative Claims Objection Deadline is appropriate to complete the administrative claims reconciliation process and to help ensure that all non-meritorious administrative claims are appropriately challenged. Furthermore, the Plan Administrators believe that the extension is particularly important to ensure that no unwarranted administrative expense claims are allowed simply by virtue of the passage of time. Allowed administrative expense claims are required to be paid in full under the Plan, and, thus have a greater relative impact upon recoveries to prepetition unsecured creditors, who are expected to receive only a fraction of the allowed amounts of their claims. The Court will convene a hearing on June 6, 2007, to rule on the Plan Administrators' request. About Refco Inc Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Debtors' Amended Plan was confirmed on Dec. 15, 2006. (Refco Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: Plan Administrators Want Removal Period Extended ----------------------------------------------------------- The Plan Administrators ask the U.S. Bankruptcy Court for the Southern District of New York to extend until Aug. 14, 2007, the period within which Refco, Inc., and its affiliates may file notices of removal with respect to pending actions pursuant to Rule 9027(a)(2) of the Federal Rules of Bankruptcy Procedure. Jared R. Clark, Esq., at Bingham McCutchen LLP, in New York, relates that as of the Petition Date, the Debtors were plaintiffs in 37 actions and proceedings in a variety of state and federal courts throughout the country. Since the Reorganized Debtors have continued to focus primarily on winding down their businesses, administering claims and implementing their confirmed Chapter 11 Plan, the Debtors have not reviewed all the Actions to determine whether any of them should be removed, Mr. Clark states. Mr. Clark asserts that extension of the Removal Period will afford the Debtors a sufficient opportunity to assess whether the Actions can and should be removed, hence, protecting the Debtors' valuable right to adjudicate lawsuits under Section 1452 of the Judiciary and Judicial Procedure Code. The Court will convene a hearing on June 6, 2007, to rule on the Plan Administrators' request. About Refco Inc Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Debtors' Amended Plan was confirmed on Dec. 15, 2006. (Refco Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). SCOTTISH RE: Investment View at Neutral, Analyst Says ----------------------------------------------------- Oppenheimer & Co. analyst Richard Sbaschnig maintained his investment opinion of Scottish Re Group Ltd. at "neutral." Mr. Sbaschnig lowered his 2007 and 2008 earnings per share estimates to a loss of US$1.16 from a loss of 6 cents and a loss of 10 cents from 29 cents, respectively. The analyst wrote in a research report: "Based on management's analysis, run-rate profitability in SCT's core business could be substantially lower over the next 4-6 quarters than we previously assumed. In addition, there are a number of non- recurring items tied to new financing and changes to the Board of Directors which will likely lower earnings. We have more confidence in our current estimates than our previous ones; however, a number of uncertainties remain. Additional severance and compensation expenses could be incurred if there are changes in management, and other possible balance sheet write-downs could occur after the new Board fully takes control of the company." About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities * * * The Troubled Company Reporter - Asia Pacific reported on May 14, 2007, that Fitch Ratings revised the Rating Watch on these ratings of Scottish Re Group Ltd. (NYSE:SCT) to Positive from Evolving: -- Issuer Default Rating (IDR) 'B+'; -- 7.25% Non-cumulative perpetual preferred stock 'B-/RR6'. The Rating Watch on SCT was revised following the completion of the US$600 million investment transaction with MassMutual Capital Partners LLC, and affiliates of Cerberus Capital Management, L.P. On May 10, 2007, Standard & Poor's Ratings Services raised its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'B' and removed it from CreditWatch with developing implications, where it was placed on Dec. 6, 2006. (The CreditWatch implications had been revised twice since the ratings were originally placed on CreditWatch on July 31, 2006.) Standard & Poor's also said that it raised its counterparty credit and financial strength ratings on Scottish Re's operating companies as well as its ratings on dependent unwrapped securitized deals related to Scottish Re to 'BB+' from 'BB' and removed them from CreditWatch developing. Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt, which is rated at Ba3 and preferred stock rated at B2. =============== T H A I L A N D =============== ADVANCE AGRO: Records THB181 Million Net Loss in First Quarter -------------------------------------------------------------- Advance Agro PCL recorded a net loss of THB181.2 million for the three months ended March 31, 2007, as compared with the THB1 billion net income in the same period in 2006. In a letter submitted to the President of the Stock Exchange of Thailand dated May 15, 2007, Advance Agro said that it lost money from a rate of exchange of THB20 million, which is less than the THB598 million from the same period in 2006. Because of this, the Company ceased manufacturing in some pulp and paper mills, causing its production to be lesser than the previous period. Advance Agro's maintenance expenses climbed to THB150 million. The company's expenses for long fiber pulp and short fiber pulp increased by about THB41 million and THB46 million, respectively. The company also recorded a THB229 million increase in selling and administrative expenses due to expansion to foreign markets, as well as a THB102 million increase in interest expense and financial charges. Advance Agro Public Company Limited -- http://www.advanceagro.com/-- is a pulp and paper manufacturer and distributor. It markets its products under the brand name Double A. The company also distributes its products through Double A Copy Center with over 1,500 branches in Thailand and overseas and Double A Stationery with approximately 100 shops nationwide. In addition, Advance Agro operates three power plants. Headquartered in Prachinburi Province, the company has a branch office in Bangkok. Advance Agro is comprised of a number of subsidiaries. The Troubled Company Reporter - Asia Pacific reported on Jan. 5, 2006 that Advance Agro Public Co. Ltd. received from Standard & Poor's Rating Services a B- rating, an upgrade from the previous CCC rating to its US$250 million 11 percent bonds due 2012. At the same time, the issue rating on Advance Agro Capital B.V.'s US$48.7 million 13 percent notes due 2007 was also raised to 'B-' from 'CCC'. The ratings were removed from CreditWatch, where they were placed with positive implications on Nov. 29, 2005. The Troubled Company Reporter - Asia Pacific reported on March 13, 2007, that Moody's Investor Services changed to positive from stable the outlook for both Advance Agro Public Company Limited's B3 corporate family rating and the senior unsecured bond ratings on its notes due in 2007 and 2012. ADVANCED PAINT: 1Q 2007 Net Loss Down 52% to THB3.13 Million ------------------------------------------------------------ Advanced Paint Chemicals PCL incurred a net loss of THB3.13 million for the quarter ended March 31, 2007, which is 52% lower than the THB6.59 million net loss of the same period in 2006. The company attributes this to a 52.53% decrease in selling and administrative expenses for the quarter ended March 31, 2007. Advanced Paint's total revenues as of March 31, 2007, were at THB4.81 million, as compared to THB9.61 million in the same period in 2006. The company cites the decrease in real estate demand as the reason for having less revenue than it had at March 31, 2006. As of March 31, 2007, the company had total current assets of THB10.5 million and total current liabilities of THB57.78 million. The company also reported total shareholders' deficit of THB185.88 million. Going Concern Doubt After auditing Advanced Paint's financial statements for the first quarter, Mr. Atipong Atipongsakul of ANS Audit Co. Ltd. as auditor raised doubt on the company's ability to operate as a going concern, since it has been operating on recurring losses and is illiquid. "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. About Advanced Paint 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. 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. DAIMLERCHRYSLER: Names Rainer Genes as Mercedes Planning Head ------------------------------------------------------------- The DaimlerChrysler Board of Management has appointed Rainer Genes, manager of the Bremen production plant, as the new head of Production Planning Mercedes-Benz Passenger Cars, effective June 1, 2007. Rainer Genes will succeed Simon Boag, who will be returning to Detroit, effective June 1, 2007. "I would like to take this opportunity to thank Simon Boag for his hard work and commitment over the past 15 months, particularly in the areas of standard inspections and efficiency boosting," Rainer Schmuckle, COO of the Mercedes Car Group, said. Also on June 1, Peter Schabert, currently the director of the Berlin production plant, will take over the responsibility for the Bremen plant. Thomas Uhr, at present head of the Production and Technology Center "Casting and Metal Forming," will become the head of the Berlin plant on June 1. Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Company has locations in Europe including some in Germany, Belgium, Spain and Switzerland. Its operations in the Asia- Pacific are in Thailand, China, Japan, Vietnam, India, Australia and Indonesia. Its Latin American facilities are in Argentina, Brazil, Mexico, and Venezuela. DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4 billion) based on an expected full-year operating loss of approximately EUR1 billion (US$1.2 billion) for its Chrysler Group. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. Chrysler Group will take additional production cuts in the third and fourth quarters to reduce dealer inventories and make way for its current product offensive. DAIMLERCHRYSLER: Earns EUR1.9 Billion in First Quarter 2007 ----------------------------------------------------------- DaimlerChrysler AG reported a net profit of EUR1.97 billion on revenues of EUR35.36 billion for the first quarter of 2007, compared with a net profit of EUR781 million on revenues of EUR37.44 billion for the first quarter of 2006. DaimlerChrysler increased its EBIT (earnings before interest and taxes) to EUR2.04 billion in the first quarter of this year, compared with EBIT of EUR1.18 billion for the first quarter of 2006. Earnings were reduced particularly by restructuring expenses of EUR914 million related to the implementation of the Chrysler Group's Recovery and Transformation Plan. There were additional charges of EUR120 million from the financial support provided to troubled suppliers and EUR54 million from the implementation of the new management model. Income of EUR1.56 billion, however, was realized in connection with DaimlerChrysler's equity interest in the European Aeronautic Defence and Space Company (EADS), partially offset by expenses of EUR114 million from the Power8 restructuring program at EADS. In the prior-year quarter, the discontinuation of the smart forfour and headcount reductions at the Mercedes Car Group caused expenses of EUR1.18 billion. There were opposing effects from the disposed off-highway business of EUR238 million and from reductions in healthcare benefits at the Chrysler Group of EUR390 million. Improved operating results at the Mercedes Car Group and the Truck Group largely offset the decline in earnings at the Chrysler Group. Within the context of the efficiency-improving programs, measures were defined to further improve the utilization of production facilities. As a result, depreciation of property, plant and equipment has been adjusted to the extended useful lives. In the first quarter of 2007, this led to a positive impact on Group EBIT in an amount of EUR213 million; thereof EUR151 million is considered at the Mercedes Car Group, EUR24 million at the Truck Group and EUR38 million at Van, Bus, Other. Unit Sales Below Prior-year Levels In the first quarter of 2007, DaimlerChrysler sold 1.1 million vehicles worldwide, 5% below the level of the prior-year quarter. At the end of the first quarter of 2007, DaimlerChrysler employed a workforce of 356,749 people worldwide, compared to a workforce of 368,853 at the end of the first quarter of 2006. Of this total, 165,779 were employed in Germany and 91,170 were employed in the United States. At March 31, 2007, DaimlerChrysler AG and subsidiaries' consolidated balance sheet showed EUR215.01 billion in total assets, EUR174.96 billion in total liabilities, and $40.05 billion in total shareholders' equity. The company's balance sheet at March 31, 2007, also showed strained liquidity with $81.16 billion in total current assets available to pay $85.25 billion in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?1f37 Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Company has locations in Europe including some in Germany, Belgium, Spain and Switzerland. Its operations in the Asia- Pacific are in Thailand, China, Japan, Vietnam, India, Australia and Indonesia. Its Latin American facilities are in Argentina, Brazil, Mexico, and Venezuela. DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4 billion) based on an expected full-year operating loss of approximately EUR1 billion (US$1.2 billion) for its Chrysler Group. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. Chrysler Group will take additional production cuts in the third and fourth quarters to reduce dealer inventories and make way for its current product offensive. DAIMLERCHRYSLER: No More Acquisition Plans for Now, Zetsche Says ---------------------------------------------------------------- DaimlerChrysler AG's management will work hard to keep the company's independence and won't likely be involved in the ongoing consolidation of the auto industry in the wake of Cerberus Capital Management LP's US$7 billion takeover of the Chrysler Group, the Wall Street Journal reports, quoting Daimler CEO Dieter Zetsche. His remarks came as major shareholder Dubai International Capital, controlled by Dubai's Maktoum family, disclosed it had sold its US$1 billion stake in the company, ahead of Daimler's announcement of a deal to relinquish control of Chrysler. The carmaker's shareholder structure has been under scrutiny because, unlike its German car-making rivals, it doesn't have a single large shareholder as a bulwark against a takeover, WSJ observes. Mr. Zetsche, who had expressed concerns that the company's low share price because of Chrysler's burdens could make it a takeover target, said that the recent rise in the company's share price makes it a less attractive acquisition, WSJ notes. "I don't know if a majority shareholder is exclusively helpful, and it doesn't mean absolute protection," Mr. Zetsche said. The deal to relinquish 80.1% of Chrysler to private-equity firm Cerberus will allow DaimlerChrysler to focus on strengthening its luxury Mercedes brand and on boosting its commercial-truck business, WSJ states. Mr. Zetsche said the company may seek deals to expand its truck business, known as the Truck Group, especially in the U.S. or India. Earlier this year, Daimler's Truck Group bought a 24% stake in China's Beiqi Foton Motor Co., which makes vans. Mr. Zetsche has expressed his intent to concentrate on improving efficiency and operations at Daimler, develop growth potential and pursue new opportunities, WSJ relates. He added that he has more ambitious targets for Mercedes beyond the 7% return on sales the company has as a goal this year. Meanwhile, Bloomberg News reports that Juergen Schrempp, architect of the US$36 billion takeover of Chrysler Corp. by Daimler-Benz AG, was responsible for the US$12.6 billion loss in the company's market value in the nine years following the merger. DaimlerChrysler shares have fallen 15% since Nov. 17, 1998, the day the combined company started trading. The stock in Germany peaked half a year after the merger and never recovered. "Schrempp was certainly the biggest destroyer of capital in Daimler's history and most likely in the history of corporate Germany," said Juergen Graesslin, head of the DaimlerChrysler Critical Shareholders Association and an author of a biography on Schrempp, who left as chief executive officer December 31, 2005, two years before his contract expired. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Company has locations in Europe including some in Germany, Belgium, Spain and Switzerland. Its operations in the Asia- Pacific are in Thailand, China, Japan, Vietnam, India, Australia and Indonesia. Its Latin American facilities are in Argentina, Brazil, Mexico, and Venezuela. DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4 billion) based on an expected full-year operating loss of approximately EUR1 billion (US$1.2 billion) for its Chrysler Group. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. Chrysler Group will take additional production cuts in the third and fourth quarters to reduce dealer inventories and make way for its current product offensive. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($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 ***