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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
Thursday, May 24, 2007, Vol. 10, No. 102
Headlines
A U S T R A L I A
AUSTAR UNITED: Releases Financial Results for First Quarter 2007
AUSTAR UNITED: Seeks Approval of Capital Management Strategy
AUSTRALIAN BLUEY: Final Meeting Set for June 15
CAPRI CONFECTIONERY: General Meeting Set for June 15
CENTRAL VIC: Joint Meeting Set for June 19
FORTESCUE METALS: Inks Niagara's Nickel Marketing Agreement
JM GROUP: Liquidator to Present Wind-Up Report on June 4
MUNRO TAXI: Members and Creditors to Meet on June 15
PACIFIC LINER: Taps John Georgakis as Liquidator
SCOTTS CURTAINS: Members' Final Meeting Set for June 6
SYMBION: Sigma Pharmaceuticals Mulling a Takeover Bid
TROMBONIST LIMITED: Members Favor Liquidation of Business
UNDARE (AUST): Members Resolve to Close Business
YARRAVILLE TEXTILES: Undergoes Voluntary Liquidation
C H I N A & H O N G K O N G
ASIAN OPTOMETRIST: Requires Creditors to Prove Debts by Aug. 10
ACXIOM CORPORATION: Earns US$70.7 Million in Year Ended March 31
BENQ CORP: No Plans to Sell Shares in Private Placement
BOMBARDIER INC: S&P Revises Outlook to Stable from Negative
BRIGHT ACE: Final Meetings Slated for June 20
CHINA EASTERN: Singapore Air Close to Secure Investment Deal
DALLAS PACIFIC: Members to Receive Wind-Up Report on June 18
GLOBAL CROSSING: March 31 Equity Deficit Tops US$290 Million
GREENTOWN CHINA: S&P Rates US$300 Million Bond Due 2012 at 'BB'
HUABO LIMITED: Members & Creditors Set to Meet on June 20
INVERNESS MEDICAL: S&P Says Ratings Remain Under Watch
JELLOWAY LIMITED: Enters Liquidation Proceedings
K. L. CORPORATE: Liquidator to Give Wind-Up Report on June 20
MCLARENS ASIA: Members' Final General Meeting Set for June 18
PARKSON RETAIL: Moody's Puts Ba1 Rating on US$125 Million Bond
PRICEWATERHOUSECOOPERS EXECUTIVE: Members Set to Meet on June 20
SHANGHAI PUDONG: Mulls Overseas CNY8-Bil. IPO to Bolster Capital
SHANGHAI ZENDAI: Moody's Assigns (P)B2 Corporate Family Rating
WELWIND ENERGY: Posts CDN$1,188,328 Net Loss in End-March Qtr
I N D I A
BRITISH AIRWAYS: Admits to Breaking Competition Rules
BRITISH AIRWAYS: Joins TPG Consortium in Potential Iberia Bid
FEDERAL BANK: Board Recommends 40% Dividend on Equity Shares
FEDERAL BANK: To Establish Subsidiary in Dubai Finance Centre
FEDERAL BANK: To Seek Shareholders Nod on Proposed Rights Issue
GARWARE POLYESTER: Net Profit in FY2007 Down 63% to INR20.7 Mil.
GENERAL MOTORS: To Invest US$61 Mil. in New Casting Technology
GENERAL MOTORS: Marketing VP Michael Jackson Resigns on June 15
HDFC BANK: To Raise US$1 Billion in Additional Capital
I N D O N E S I A
ALCATEL-LUCENT: Tapped as System Integrator for Subex Azure
BANK RAKYAT: May Acquire Another Bank for Islamic Market Growth
BEARINGPOINT INC: Jill Kanin-Lovers Joins Board of Directors
EXCELCOMINDO PRATAMA: Fitch Affirms Local Currency IDR at BB-
INDOSAT: Fitch Affirms Local Currency IDR at 'BB-'
J A P A N
JAPAN AIRLINES: To Raise Fuel Surcharge Due to Oil Hike
NIKKO CORDIAL: To Appoint Three Citigroup Executives to Board
NIKKO CORDIAL: To Resume Operations of Three Subsidiaries
K O R E A
KOOKMIN BANK: Drops Majority Stake Bid in KGI Securities
UAL CORP: Fitch Affirms Issuer Default Rating at B-
UAL CORP: Resells Previously Issued US$726 Mil. 4.5% Sr. Notes
M A L A Y S I A
AMSTEEL CORP: Earns MYR29.48 Million in Quarter Ended March 31
PROTON HOLDINGS: Government Favors Partner Over Bailout
N E W Z E A L A N D
AWATERE CONTRACTING: Court to Hear Wind-Up Petition on June 6
BEAN N GONE: High Court to Hear Wind-Up Petition Today
GLASS EARTH: Enters Into Joint Venture With Australasia Gold
HURA ENTERPRISES: Wind-Up Petition Hearing Set for May 31
INFRATIL LIMITED: Net Income Soars to NZ$46.7 Million in FY2007
LOGAN O LEOGHAIN: Names Bruce Douglas Montgomery as Liquidator
OCTAVE PROPERTIES: Commences Liquidation Proceedings
PRIME PROPERTY: Appoints Rhys Michael Barlow as Liquidator
SCOTTISH CONSULTING: Fixes June 5 as Last Day to Prove Claims
SECURACOM SECURITY: Subject to RingGrip's Wind-Up Petition
WILLIS ROOFING: Faces CIR's Wind-Up Petition
WTT LIMITED: Taps Fatupaito and McCloy as Liquidators
P H I L I P P I N E S
ATLAS CONSOLIDATED: Earns PHP47 Million in 2006
ATLAS CONSOLIDATED: Annual Stockholders' Meeting Set for July 18
BENPRES HOLDINGS: Annual Shareholders' Meeting Set for June 14
EXPORT & INDUSTRY BANK: Posts PHP80MM Net Loss in 1st Qtr. 2007
PRIMETOWN PROPERTY: Reports PHP809 Million Stockholders' Deficit
UNIWIDE HOLDINGS: Posts PHP37.88 Million Net Loss in 1Q 2007
* OFW Remittances Reach US$3.5 Billion in First Quarter 2007
* Peso Breaks PHP45/US$1 Threshold, Stocks Surge 1.1%
S I N G A P O R E
ART CITY: Creditors' Proofs of Debt Due by June 18
CHEMTURA CORP: Amends & Restates Asset Purchase Agreement
DIGI BUILDER: Creditors' Meeting Set for May 25
EMTEC MAGNETICS: Pays Second and Final Dividend
FAIRFAX FINANCIAL: A.M. Best Says Outlook on Ratings "Stable"
K.P. CHEMICALS: Members Agree to Liquidate Business
PETROLEO BRASILEIRO: Board Authorizes Contract with Pride Mexico
WONDERBAR SINGAPORE: Wind-Up Petition Hearing Set for June 29
T H A I L A N D
CIRCUIT ELECTRONICS: SET to Move Stocks to Non-Performing Group
DAIMLERCHRYSLER: Hopes to Reduce Debt After Chrysler Sale Closes
DAIMLERCHRYSLER AG: Sells 50% stake in China's Yaxing Benz Ltd.
HANTEX PCL: SET to Move Stocks to Non-Performing Group by June
KASIKORN BANK: Earns THB3.88 Million in 1st Quarter 2007
NEW PLUS: SET to Move Stocks to Non-Performing Group in June
NEW PLUS: Posts THB325,467 Net Loss for Quarter Ended March 31
NFC FERTILIZER: Posts THB68.3 Mil. Net Loss in 1st Quarter 2007
THAI-DENMARK SWINE: SET to Move Stocks to Non-Performing Group
* Bank of Thailand May Cut Benchmark Interest Rate to
- - - - - - - -
=================
A U S T R A L I A
=================
AUSTAR UNITED: Releases Financial Results for First Quarter 2007
----------------------------------------------------------------
Austar United Communications released its unaudited results for
the first quarter, ended March 31, 2007. The Company has
experienced strong new subscriber momentum, doubling its net
residential additions when compared with the first quarter of
2006.
Total television subscribers increased to 619,360, following a
net subscriber gain for the quarter of 18,234, driven primarily
by residential subscriber growth of 14,549. Other highlights for
Q107 include Total Revenue, which increased by 14 per cent to
AU$134 million compared with the corresponding period in 2006.
Key revenue drivers were the strong subscriber growth and a 3.4
per cent increase in total residential television ARPU to
AU$74.60, against the same period last year. Reported churn was
also down 0.1 per cent to 1.27 per cent against the previous
corresponding period.
Chief Executive Officer, John Porter, said: "We are delighted to
have had such a strong response to our increased sales and
marketing activity, and are particularly happy to see that our
strong residential growth is continuing. Consumers are
responding very well to the increased quality and choice in our
television product, evidenced by record sales and installation
days during the quarter."
Earnings before interest, taxation, depreciation and
amortisation (EBITDA)* for the three months increased by 17 per
cent to AU$38 million compared to the same period last year,
reflecting a 13 per cent increase in gross margin to AU$72
million, and a 9 per cent increase in operating expenses to
AU$34 million. While expenses were higher than the previous
corresponding period, the Company's disciplined approach to cost
control has meant that operating expenses have actually
decreased since Q306, while revenue has continued to increase.
Profit before interest and tax was AU$24 million for the three
months - a 41 per cent increase compared to the same period in
2006. Operating cashflow for the 3 months ending March 31 was up
37 per cent to AU$29 million for the quarter compared to the
same period last year. Capital expenditure remained relatively
flat, despite record installation activities.
The company reported profit before taxation of AU$14.5 million.
Mr. Porter said: "AUSTAR is benefiting from recent industry
growth and is playing a key role in driving momentum in the
subscription television category. Regional Australians are
recognizing that AUSTAR television is no longer a luxury extra
but a product that adds real value to their lifestyles."
Full-text copies of the company's first quarter financial
statements is available for free at:
http://bankrupt.com/misc/austar_1Q2007.pdf
About Austar United
New South Wales, Australia-based Austar United Communications
Limited -- http://www.austarunited.com.au/-- is a subscription
television provider, offering primarily digital satellite
services to customers in regional and rural areas in Australia.
AUSTAR also offers dial-up Internet and mobile phone services.
The company has two business segments: Subscription
services and Radio spectrum licenses. Subscription services
represent subscription television distribution operations,
Internet, interactive television and mobile telephony operations
and license fee income. Radio spectrum licenses represent
income and gains earned from the leasing of radio spectrum
licenses.
As of September 30, 2006, the company had a net debt standing of
AU$486.4 million.
AUSTAR UNITED: Seeks Approval of Capital Management Strategy
------------------------------------------------------------
Austar United Communications said it would be seeking
shareholder approval at the upcoming Annual General Meeting on
May 31, 2007, to continue its capital management strategy. In
September of 2006 the Company undertook a AU$202 million capital
return to shareholders.
Under the proposed strategy, which mirrors that announced in its
2006 Notice of Meeting, the Company may return up to AU$300
million of capital to its ordinary shareholders over a 12 month
period via one or more of the following:
* an on-market buy-back of ordinary shares;
* an equal access off-market buy-back of ordinary shares to
be conducted using a tender process; or
* an equal reduction of capital on all ordinary shares
Chief Executive Officer, John Porter, said: "We would return a
maximum of AU$300 million to shareholders under this proposed
strategy. Assuming a business as usual approach, it is important
that the Company has the flexibility to choose the most
advantageous method of returning surplus capital to
shareholders."
However, Mr. Porter added that at this stage the Company has not
decided whether it will buy back any shares, or return any
capital.
"Implementation of the proposed strategy is dependent upon
various factors, including shareholder and relevant regulatory
and tax approvals, as well as prevailing market and business
conditions," Mr. Porter concluded.
The details of the proposed strategy and the approvals being
sought will be outlined in the Notice of Meeting to be released
to the market by the end of April.
About Austar United
New South Wales, Australia-based Austar United Communications
Limited -- http://www.austarunited.com.au/-- is a subscription
television provider, offering primarily digital satellite
services to customers in regional and rural areas in Australia.
AUSTAR also offers dial-up Internet and mobile phone services.
The company has two business segments: Subscription
services and Radio spectrum licenses. Subscription services
represent subscription television distribution operations,
Internet, interactive television and mobile telephony operations
and license fee income. Radio spectrum licenses represent
income and gains earned from the leasing of radio spectrum
licenses.
As of September 30, 2006, the company had a net debt standing of
AU$486.4 million.
AUSTRALIAN BLUEY: Final Meeting Set for June 15
-----------------------------------------------
A final meeting will be held for the members of Australian Bluey
Company Pty Ltd on June 15, 2007, at 10:00 a.m.
At the meeting, the members and creditors will hear the
liquidator's report about the company's wind-up proceedings and
property disposal.
As reported by the Troubled Company Reporter - Asia Pacific, the
company started to liquidate its business on Dec. 15, 2005.
The company's liquidator is:
Gregory. J. Keith
Grant Thornton, Rialto Towers
South Tower, Level 35
525 Collins Street
Melbourne, Victoria
Australia
About Australian Bluey
Australian Bluey Company Pty Ltd is a distributor of men's and
boys' clothing. The company is located in Victoria, Australia.
CAPRI CONFECTIONERY: General Meeting Set for June 15
----------------------------------------------------
Capri Confectionery Pty Ltd will hold a general meeting for its
members and creditors on June 15, 2007, at 10:45 a.m.
G. S. Andrews, the company's liquidator, will present at the
meeting a report about the wind-up proceedings and property
disposal.
Mr. Andrews can be reached at:
G. S. Andrews
G. S. Andrews & Assoc.
22 Drummond Street
Carlton, Victoria 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
About Capri Confectionery
Capri Confectionery Pty Ltd is involved with food preparation
business. The company is located in Victoria, Australia.
CENTRAL VIC: Joint Meeting Set for June 19
------------------------------------------
A joint meeting will be held for the members and creditors of
Central Vic Produce Pty Ltd on June 19, 2007, at 10:30 a.m.
At the meeting, the members and creditors 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 entered wind-up proceedings on Dec. 20, 2005.
The company's liquidator is:
Adrian Brown
Ferrier Hodgson
600 Bourke Street, Level 29
Melbourne, Victoria 3000
Australia
About Central Vic
Central Vic Produce Pty Ltd is a distributor of fresh fruits and
vegetables. The company is located in Victoria, Australia.
FORTESCUE METALS: Inks Niagara's Nickel Marketing Agreement
-----------------------------------------------------------
Fortescue Metals Group Limited has accepted Niagara Mining
Limited's Nickel Marketing Agreement, reports Egoli.
The agreement indicates Fortescue to be the exclusive agent of
Niagara for marketing and sales agency services relating to the
sale of nickel. As part of the deal, Fortescue will not, during
the duration of the agreement, provide services to another
entity where those services are similar to the services under
the agreement, the report adds.
Headquartered in West Perth, Western Australia, Fortescue
Metals Group Limited -- http://fmgl.com.au/-- is involved in
the exploration of iron ore through a project to mine iron ore
in the Chichester Ranges, in the Pilbara region of
Western Australia and exporting it from Port Hedland.
In 2005, Fortescue's chief executive officer, Andrew
Forrest, admitted to a AU$500-million blowout on the cost of
port and rail infrastructure in the Pilbara Project because of
price hikes for steel, fuel, construction materials, and
contract labor. The Company also disclosed that the hampered
progress of the Pilbara Project brings in the possibility that
the Company may not meet its ore delivery schedule and pushes up
costs at resource developments across Western Australia. In May
2005, the Australian Stock Exchange pressured Fortescue to
explain matters about the project and to explain how the Company
would be able to dispose of its lower grade order for 95% of the
price obtained by rivals BHP Billiton and Rio Tinto for their
top- quality products. The ASX then referred the matter to the
Australian Securities and Investments Commission,
which commenced a legal action against the Company.
The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts
with Chinese entities on August 23 and November 5, 2004. In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters. The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.
* * *
Fortescue reported a net loss for the past two fiscal years.
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was AU$2.15
million.
In August 2006, Moody's Investors Service assigned a Ba3 rating
to approximately US$1.9 billion in senior secured 144A bonds
to be issued by FMG Finance Pty Ltd, the financing vehicle of
the Fortescue Metal Group. The funding will be used to
partially finance the development of the Company's iron ore mine
in the Pilbara region of Western Australia as well as an
associated rail line and port infrastructure.
JM GROUP: Liquidator to Present Wind-Up Report on June 4
--------------------------------------------------------
The members and creditors of JM Group Pty Ltd will meet on
June 4, 2007, at 10:00 a.m.
John Lindholm, the company's liquidator, will present at the
meeting a report about the company's wind-up proceedings and
property disposal.
The Liquidator can be reached at:
John Lindholm
Ferrier Hodgson
600 Bourke Street, Level 29
Melbourne, Victoria 3000
Australia
About JM Group
JM Group Pty Ltd is involved with electrical work. The company
is located in Victoria, Australia.
MUNRO TAXI: Members and Creditors to Meet on June 15
----------------------------------------------------
The members and creditors of Munro Taxi Service Proprietary
Limited will meet on June 15, 2007, at 10:15 a.m., to receive
the liquidator's report about the company's wind-up proceedings
and property disposal.
The company commenced liquidation proceedings on Nov. 10, 2006,
according to the Troubled Company Reporter - Asia Pacific.
The company's liquidator is:
G. S. Andrews
G. S. Andrews & Assoc.
22 Drummond Street
Carlton, Victoria 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
About Munro Taxi
Munro Taxi Service Proprietary Limited is engaged in the taxicab
business. The company is located in Victoria, Australia.
PACIFIC LINER: Taps John Georgakis as Liquidator
------------------------------------------------
The members of Pacific Liner Services Pty Ltd met on May 4,
2007, and agreed to liquidate the company's business.
John Georgakis of Ernst & Young was appointed as liquidator.
The Liquidator can be reached at:
John Georgakis
Ernst & Young
8 Exhibition Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9288 8000
About Pacific Liner
Pacific Liner Services Pty Ltd provides business services. The
company is located in Western Australia, Australia.
SCOTTS CURTAINS: Members' Final Meeting Set for June 6
------------------------------------------------------
A final meeting will be held for the members of Scotts Curtains
& Blinds Pty Ltd on June 6, 2007, at 10:00 a.m.
During the meeting, the members will hear the liquidator's
report about the company's wind-up proceedings and property
disposal.
In a report by the Troubled Company Reporter-Asia Pacific, the
company started to liquidate its business on Oct. 5, 2006.
The company's liquidator is:
P. J. Cramer
Green Taylor Partners
Chartered Accountants
43-45 Pynsent Street
Horsham, Victoria 3400
Australia
About Scotts Curtains
Scotts Curtains & Blinds Pty Ltd, which is also trading as
Horsham Curtains & Blinds, operates miscellaneous home
furnishings stores. The company is located in Victoria,
Australia.
SYMBION: Sigma Pharmaceuticals Mulling a Takeover Bid
-----------------------------------------------------
Drugs maker and pharmacy services company Sigma Pharmaceuticals
Ltd says it expects to decide on whether or not to make a
takeover bid for Symbion Health Ltd in the next couple of weeks,
the Australian Associated Press said in a report yesterday.
According to the report, Sigma Managing Director Elmo de Alwis
said that the drug maker is looking at options to be part of a
consortium. He said that some banks have approached Sigma to
express their interest in putting together some sort of
partnership arrangement. Reportedly, Mr. de Alwis has been
speaking with four banks: Deutsche, Citigroup, Carnegie Wylie
and Credit Suisse.
Mr. de Alwis added that they, whoever will be Sigma's partners,
have to put up a structure that would address any concerns that
the Australian Competition and Consumer Commission have over a
straight-out merger and if the assessments are right, they will
be "participating in that opportunity," the report relates.
Sigma, as indicated in the report, is interested in Symbion's
wholesale drugs and consumer businesses.
About Symbion Health
Melbourne-based Symbion Health Limited --
http://www.symbionhealth.com/-- formerly Mayne Group Limited,
provides health products and services. The principal activities
of Symbion Health, during the fiscal year ended June 30, 2006,
consisted of diagnostic and wellness products and services
through its Pathology, Imaging, Medical Centers, Pharmacy
Services and Consumer divisions. Symbion Pathology owns and
operates private pathology practices, providing pathology
services to healthcare professionals and their patients. Symbion
Medical Centers provides local communities with healthcare and
family medicine. Symbion Imaging provides imaging services to
patients on the eastern seaboard of Australia. Symbion Pharmacy
Services supplies a line of pharmaceuticals and associated
products to pharmacies. Symbion Consumer manufactures and
markets nutraceuticals (vitamins and mineral supplements).
On Jan. 30, 2007, Moody's Investors Service placed the Ba1
issuer rating of Symbion Health Limited on review for possible
downgrade after the company's announcement that it has received
an ownership proposal from Primary Health Care Limited
(unrated).
TROMBONIST LIMITED: Members Favor Liquidation of Business
---------------------------------------------------------
During a meeting held on April 27, 2007, the members of
Trombonist Limited resolved to voluntarily liquidate the
company's business.
Anthony Robert Cant of Romanis Cant was appointed as liquidator.
The Liquidator can be reached at:
Anthony Robert Cant
Romanis Cant, Chartered Accountants
106 Hardware Street
Melbourne
Australia
About Trombonist Limited
Trombonist Limited, which is also trading as Hooker Cockram
Limited, is a general contractor of industrial buildings and
warehouses. The company is located in Victoria, Australia.
UNDARE (AUST): Members Resolve to Close Business
------------------------------------------------
At an extraordinary general meeting held on April 26, 2007, the
members Undare (Aust) Pty Ltd resolved to close the company's
business.
Kenneth Wayne Lamb was appointed as the company's liquidator at
the creditors' meeting held later that day.
The Liquidator can be reached at:
Kenneth Wayne Lamb
Jones Condon
Chartered Accountants
173 Burke Road, Level 1
Glen Iris, Victoria 3146
Australia
About Undare (Aust)
Undare (Aust) Pty Ltd is a distributor of piece goods, notions
and other dry goods. The company is located in Victoria,
Australia.
YARRAVILLE TEXTILES: Undergoes Voluntary Liquidation
----------------------------------------------------
On April 26, 2007, the members of Yarraville Textiles Pty Ltd
met and agreed to voluntarily liquidate the company's business.
During the creditors' meeting held later that day, Kenneth Wayne
Lamb was appointed as the company's liquidator.
The Liquidator can be reached at:
Kenneth Wayne Lamb
Jones Condon
Chartered Accountants
173 Burke Road, Level 1
Glen Iris, Victoria 3146
Australia
About Yarraville Textiles
Yarraville Textiles Pty Ltd is a distributor of textile goods.
The company is located in Victoria, Australia.
================================
C H I N A & H O N G K O N G
================================
ASIAN OPTOMETRIST: Requires Creditors to Prove Debts by Aug. 10
---------------------------------------------------------------
The creditors of Asian Optometrist Association Limited are
required to file their proofs of debt by Aug. 10, 2007, to be
included in the company's dividend distribution.
The company started to liquidate its business on May 12, 2007.
The company's liquidator is:
Lo Chi Yung
Yat Hei House, Room 2101
Tung Hei Court
Shau Kei Wan, Hong Kong
ACXIOM CORPORATION: Earns US$70.7 Million in Year Ended March 31
----------------------------------------------------------------
Acxiom(R) Corporation reported full-year and fourth quarter
financial results for fiscal 2007 ended March 31, 2007.
Full 2007 fiscal-year results include revenue of US$1.4 billion
and income from operations of US$158.8 million. Net earnings
for the full 2007 fiscal year were US$70.7 million, as compared
with US$64.1 million for the full 2006 fiscal year.
Fourth-quarter results include revenue of US$357.3 million,
income from operations of US$29.3 million, operating cash flow
of US$76.5 million and free cash flow available to equity of
US$15.4 million. Net earnings for the fourth quarter of 2007
were US$6.3 million, as compared with US$23.1 million for the
fourth quarter of 2006.
The reported results, excluding unusual charges, met the
company's expectations and consensus analysts' estimates of
US$0.20 earnings per share for the quarter.
The quarter results include the impact of pretax charges of
US$9.7 million and income tax expense of US$3.8 million related
to closing Acxiom's business in Spain, cost of severance and
retirement of debt in the U.S. and additional research tax
credit reserves that reduced diluted EPS for the fourth quarter
by US$0.12.
At March 31, 2007, the company listed US$1.6 billion in total
assets, US$1.1 billion in total liabilities, and US$521.3
million in total stockholders' equity.
New Organizational Structure
Acxiom also disclosed a new organizational alignment designed to
increase focus on its three core areas of business. The new
organizational structure reflects the unique characteristics
within each area of the business and will facilitate the
execution of operational strategies designed to maximize
financial performance in each division. The re-segmentation
took effect April 1, 2007, the first day of the company's fiscal
year 2008.
"This change is all about bringing focus and dedicated
management to each key area of our business," Acxiom chairman
and chief executive Charles D. Morgan said. "We believe this
structure more closely aligns with our overall mission and
therefore will lead to greater returns for our shareholders."
In fiscal 2007, Acxiom:
-- was named as one of the top 30 providers of financial
services in the "FinTech 100" listing of the top
technology providers as complied by American Banker and
the research firm Financial Insights.
-- saw its Acxiom Digital business ranked No. 17 by
Advertising Age magazine on its list of top 50
interactive agencies based on annual U.S. revenues.
-- was included on Forbes magazine's "Platinum 400" list of
the best large publicly traded companies in America.
Outlook
Acxiom's Board of Directors has approved a business plan for
fiscal 2008 of US$1.02 in earnings per share. The company
continues to focus on its initiatives to improve performance and
is in the process of restructuring into the three new divisions
previously explained.
About Acxiom
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 has a
team of specialists with sales and business development
associates based in the largest Latin American markets: Brazil,
Argentina and Mexico.
* * *
Standard & Poor's Ratings Services assigned its loan and
recovery ratings to Little Rock, Arkansas-based Acxiom Corp.'s
proposed US$800 million secured first-lien financing. The
first-lien facilities consist of a US$200 million revolving
credit facility and a US$600 million term loan. They are rated
'BB' with a recovery rating of '2'.
Moody's Investors Service assigned a Ba2 rating to Acxiom
Corporation's US$800 million senior secured credit facilities,
while affirming its corporate family rating of Ba2. The outlook
is stable.
BENQ CORP: No Plans to Sell Shares in Private Placement
-------------------------------------------------------
BenQ Corp's Deputy Chief Financial Officer David Wang denied the
report that the company has plans to sell stock through a
private placement, Taipei Times reports.
"We don't have that plan currently," Mr. Wang told the Times,
"we are looking at all options to raise funds."
Mr. Wang made the clarification in response to a report from the
Chinese-language Economic Daily News, which said that BenQ may
sell as much as NT$9.1 billion in new shares equivalent to a
stake of about 30%. The newspaper did not cite any source in
its report, the Times notes.
* * *
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing,
developing, and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handsets, camera phones, and other products.
BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses. The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ. BenQ Mobile has
lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after the company failed to secure a
buyer by the Dec. 31, 2006 deadline.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp. The
outlook on the long-term rating is negative. At the same time,
Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010. The ratings reflect BenQ's continuing operating
losses from its handset operations and high leverage, and the
competitive nature and low profitability of the LCD monitor
industry.
BOMBARDIER INC: S&P Revises Outlook to Stable from Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on
Montreal, Quebec-based Bombardier Inc. to stable from negative.
At the same time, the ratings, including the 'BB' long-term
corporate credit rating on Bombardier, were affirmed.
"The revised outlook reflects the increasing diversity of
Bombardier's cash flow generation through favorable market
conditions in its business jet and transportation businesses,"
said Standard & Poor's credit analyst Greg Pau. "The company
enjoys a strong market position in these two businesses," Mr.
Pau added.
The revision also reflects the results of management's effort in
the past three years to restore financial stability by
significantly reducing excess-over-average production costs,
shrinking the company's aircraft financing portfolio, focusing
on execution and cost management, and refinancing maturing debt
to improve liquidity.
The ratings on Bombardier reflect continued high financial
leverage following the recent EUR1.9 billion bond issue in
fiscal 2007, and the relatively weaker profitability and cash
flow from the transportation and commercial aircraft businesses.
The bond issue reversed the deleveraging trend in the two
preceding years, but the high financial leverage and interest
costs, together with the lumpiness of cash flow reflecting the
nature of Bombardier's business, have contributed to a weak
financial risk profile.
The ratings are supported by strong and sustainable competitive
positions in business jets and transportation businesses,
strengthened liquidity, improving business and geographic
diversity, and management's effort to address key legacy
problems.
Bombardier's business risk profile is supported by the high
barriers to entry and strong competitive positions in both
transportation and business jets. In transportation, Bombardier
is a market leader in rolling stock and locomotives among three
leading global players, although its market position is
relatively weaker in signaling. The company has recently
strengthened its position by gaining substantial new orders in
the past year. If successfully executed, these contracts should
allow Bombardier to showcase its capability and enhance its
market leadership.
Despite success in cost management in the past two years,
Bombardier's overall operating and EBIT margins remain thin
compared with those of its peers. Future margin improvement
hinges on Bombardier's ability to properly execute the recently
acquired contracts in transportation and manage the business jet
production process. Given the complexity of transportation
projects and the high-quality finishing required for business
jets, cost overruns could happen and potentially reverse the
improving trend.
The stable outlook reflects the progress Bombardier has made in
addressing its legacy problems and in improving its cost
position in the past three years. This has resulted in a more
consistent and diversified free cash flow generation. The
ratings or outlook could be revised upward if the company
materially improves its financial measures through debt
reduction and continues to reduce the future volatility of
business cash flow. Conversely, Bombardier could be downgraded
if the company's cash flow becomes substantially impaired,
possibly because of cost overruns in the new transportation
contracts or a material weakening in business jet demand. Any
further product development programs involving significant debt
financing and exposing the company to significant development
risk could also exert downward pressure on the ratings or
outlook.
* * *
Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) --
http://www.bombardier.com/-- manufactures innovative
transportation solutions, from regional aircraft and business
jets to rail transportation equipment. The company has
operations in North America, Europe and China.
* * *
Bombardier Inc.'s 5-3/4% Notes due Feb. 2, 2008 carry Moody's
Investors Service's Ba2 rating, Standard & Poor's BB rating, and
Fitch Ratings' BB- rating.
BRIGHT ACE: Final Meetings Slated for June 20
---------------------------------------------
Bright Ace International Development Limited will hold a final
meeting for its members and creditors on June 20, 2007, at
11:15 a.m. and 11:30 a.m., respectively, in 1401, Level 14,
Tower 1 of Admiralty Centre at 18 Harcourt Road, Hong Kong.
At the meeting, the members and creditors will be asked to:
-- receive the liquidators' accounts regarding the company's
wind-up proceedings and property disposal;
-- consider if the book accounts and documents of the
companies will be disposed within six months from the
date of this meeting; and
-- consider if the accounts of the liquidators' receipts and
payments not be required to be audited.
CHINA EASTERN: Singapore Air Close to Secure Investment Deal
------------------------------------------------------------
China Eastern Airlines may name Singapore Airlines as its new
strategic investor to acquire a 24% stake for HK$15.8 billion,
various reports noted after the Singapore-based airline said it
is in advanced discussion for potential investment.
Singapore Air, in a disclosure with the Singapore Stock
Exchange, said: "It is in advance stage of discussion. . . .
but the agreement has not yet been finalized and is subject to
official approval."
The airline did not name its target, but, according to Reuters,
a source familiar with the matter said that the target of the
Singapore-based airline's investment is China Eastern.
As reported by the Troubled Company Reporter - Asia Pacific on
July 20, 2006, China Eastern said it plans to sell a majority
stake to Singapore Airlines, in hopes of making the latter a
strategic investor. China Eastern's Chairman Li Fenghua had
said that the company needs an investor to raise funds and help
improve management expertise.
The Chinese airline, on May 23, told the Hong Kong Stock
Exchange that it is "actively preparing for the dissemination of
an important matter."
Moreover, both airlines asked their respective bourses to halt
its securities trading on May 22. "The suspensions may signal
that the two companies have reached an agreement," Li Lei, an
analyst at China Securities Co. in Beijing told Bloomberg News.
Singapore Air asked for the resumption of its trading in the
Singapore bourse on May 23.
* * *
Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com/-- principal
activity is operation of domestic and international commercial
air transportation. The Group also is involved in the common
aircraft industry. Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training. The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly. Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.
On April 28, 2006, Fitch Ratings downgraded China Eastern's
Foreign Currency and Local Currency Issuer Default Ratings to B+
from BB-. The outlook on the IDRs is stable.
DALLAS PACIFIC: Members to Receive Wind-Up Report on June 18
------------------------------------------------------------
The members of Dallas Pacific Management Limited will meet on
June 18, 2007, at 10:00 a.m., to hear the liquidator's report
about the company's wind-up proceedings and property disposal.
As reported by the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on Dec. 8, 2006.
The company's liquidator is:
Sum Wai Ching, Helena
S.B. Commercial Building, 19th Floor
478 Nathan Road, Yau Ma Tei
Kowloon, Hong Kong
GLOBAL CROSSING: March 31 Equity Deficit Tops US$290 Million
------------------------------------------------------------
Global Crossing Ltd.'s balance sheet at March 31, 2007, showed
total assets of US$2.2 billion and total liabilities of US$2.5
billion resulting in a total stockholders' deficit of US$290
million. Accumulated deficit at March 31, 2007, stood at US$1.1
billion, as compared with US$1 billion at Dec. 31, 2006.
During the first quarter ended March 31, 2007, the company
reported US$504 million of consolidated revenue, an increase of
US$16 million or 3% from the fourth quarter, when consolidated
revenue was US$488 billion. On a year-over-year basis,
consolidated revenue expanded by 11% compared with the first
quarter of 2006. Net loss for the first quarter of 2007 was
US$120 million, as compared with a net loss of US$108 million
for the first quarter of 2006.
Cost of access expense for the first quarter was US$284 million,
compared with US$274 million in the fourth quarter and US$285
million in the first quarter of 2006. Consolidated net loss
applicable to common shareholders was US$121 million for the
first quarter, as compared with a loss of US$90 million in the
fourth quarter of 2006 and US$109 million in the first quarter
of 2006.
Cash and Liquidity
As of March 31, 2007, Global Crossing had US$378 million of cash
and cash equivalents. The company's US$81 million of cash use
for the quarter included US$18 million of financing and
acquisition fees. The remainder of cash used was attributable
to adjusted cash EBITDA losses, increased expenditures made to
strategic access vendors and capital expense. Cash used for
capital expenditures and principal on capital leases and long-
term debt was US$45 million in the first quarter. These cash
expenditures were offset by US$21 million in proceeds from the
sale of indefeasible rights of use.
On May 9, 2007, the company borrowed US$250 million under a
five-year senior secured term loan agreement with Goldman Sachs
and Credit Suisse as joint book runners, which yielded net cash
proceeds of US$241 million after payment of fees and expenses.
The proceeds will be used to refinance the company's existing
US$55 million working capital facility with Bank of America, to
provide additional liquidity necessitated principally by cash
used to close the Impsat acquisition and to reduce days payable
with key access vendors during the first and second quarters.
In addition, on May 9, 2007, Impsat completed its previously
announced tender offer for its Series A 6-percent senior
guaranteed convertible notes due 2011 and its Series B 6-percent
senior guaranteed convertible notes due 2011, pursuant to its
Offer to Purchase and Consent Solicitation Statement, dated
Jan. 29, 2007. The tender offer expired on May 9, 2007.
On May 10, 2007, Impsat announced that it is accepting for
payment all validly tendered Notes, consisting of US$92 million
in aggregate principal amount at maturity of Notes, representing
about 99% of the outstanding Notes. The supplemental indenture
executed in connection with the merger became operative May 10,
2007.
Global Crossing also announced that it had completed a five-
year, US$250 million secured term loan facility with Goldman
Sachs and Credit Suisse as joint book runners, yielding net cash
proceeds of US$241 million. To facilitate the loan, a
subsidiary of the company's majority shareowner, Singapore
Technologies Telemedia, agreed to subordinate its mandatorily
convertible notes due December 2008 to the term loan and then to
convert the notes into common stock and warrants.
A full-text copy of the company's first quarter 2007 report is
available for free at http://ResearchArchives.com/t/s?1fa1
Impsat Acquisition
On May 9, 2007, the company completed its acquisition of IMPSAT
Fiber Networks Inc., a leading provider of integrated broadband
data, Internet, voice telecommunications and advanced hosting.
The total estimated transaction value was US$347 million,
comprised of about US$95 million in equity, US$26 million of
assumed indebtedness and repayment of US$226 million of
indebtedness. A portion of the funds used to consummate the
merger was financed from the proceeds of an offering, arranged
by Credit Suisse, of 9.875-percent senior notes due 2017 by GC
Impsat Holdings I Plc, a subsidiary of Global Crossing. Global
Crossing used about US$160 million in cash to fund the remainder
of the transaction and associated costs. No capital stock was
issued in conjunction with the acquisition.
"[On May 9, 2007] we're proud to be closing our acquisition of
Impsat - a business that fits solidly into Global Crossing's
strategy of selling IP and data services to enterprises and
carriers around the world," said John Legere, Global Crossing's
chief executive officer. "Like Fibernet in the UK, Impsat will
further enhance the momentum we've already achieved in our
'invest and grow' segment by adding product capabilities and
growth potential, as well as solid financial results."
While Impsat's first quarter results are not reflected in Global
Crossing's financial results, they are expected to contribute
positively to the second quarter performance commencing on the
May 9, 2007, closing date.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil in Latin-America, the United Kingdom in Europe
and Hong Kong in the Asia-Pacific regions. Global Crossing
serves many of the world's largest corporations, providing a
full range of managed data and voice products and services.
The company filed for chapter 11 protection on Jan. 28, 2002
(Bankr.S.D.N.Y. Case No. 02-40188). When the Debtors filed for
protection from their creditors, they listed US$25,511,000,000
in total assets and US$15,467,000,000 in total debts. Global
Crossing emerged from chapter 11 on Dec. 9, 2003.
GREENTOWN CHINA: S&P Rates US$300 Million Bond Due 2012 at 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue
rating to a CNY2.31 billion (about US$300 million) zero coupon
convertible bond issued by Greentown China Holdings Ltd.
(Greentown; BB/Stable/--). The issue is due 2012 and will be
settled in U.S. dollars. The bond is callable on or after
May 18, 2009, and putable on May 18, 2010.
A substantial portion of the bond proceeds will be used to
refinance existing project loans. They will also be used to
acquire land and for general working capital needs. While the
bond has a zero coupon and will not add any cash interest
burden, it will immediately raise Greentown's debt leverage to
about 60% in terms of gross debt to capital. However, Standard
& Poor's believes this is only temporary. The company should
de-leverage to about 45%-55% over the near term as its equity
base is likely to be strengthened as it continues to accumulate
profit from growing project completions and deliveries. So far,
the company's performance has broadly been in line with S&P's
expectations. Profitability was good, with the gross profit
margin improving to 42% in 2006 from 35% in 2005.
The rating on Greentown reflects:
-- the company's strong presence in Hangzhou, the capital
city of Zhejiang province;
-- its experience in other first- and second-tier cities;
-- a large and low-cost land bank; and
-- diverse development projects.
These strengths are partly offset by the above-average risks
facing residential property developers in China, including the
cyclical nature of the real-estate market, evolving government
regulations and tightening policies, and fierce competition.
Other major risks include the company's rapid expansion plan,
concentrated activities in Zhejiang province, a lack of stable
recurring income, and high use of borrowings to fund business
expansion.
HUABO LIMITED: Members & Creditors Set to Meet on June 20
---------------------------------------------------------
The members and creditors of Huabo Limited will have their final
meeting on June 20, 2007, at 9:45 a.m. and 10:00 a.m.,
respectively, in 1401, Level 14, Tower 1 of Admiralty Centre at
18 Harcourt Road, Hong Kong.
At the meeting, the members and creditors will be asked to:
-- receive the liquidators' accounts regarding the company's
wind-up proceedings and property disposal;
-- consider if the book accounts and documents of the
companies will be disposed within six months from the
date of this meeting; and
-- consider if the accounts of the liquidators' receipts and
payments not be required to be audited.
INVERNESS MEDICAL: S&P Says Ratings Remain Under Watch
------------------------------------------------------
Standard & Poor's Ratings Services said that its corporate
credit and subordinated ratings on Inverness Medical Innovations
Inc. remain on CreditWatch with negative implications, where
they were placed April 10, 2007 after the company launched a bid
for Biosite Inc.
At the same time, Standard & Poor's assigned its 'B-'
subordinated debt rating to Inverness's $150 million 3%
convertible senior subordinated notes due 2016, privately placed
in reliance on Rule 506. The rating on these notes is also
placed on CreditWatch negative. Inverness is required to
register these notes within 90 days.
"Although Inverness already owned about 5% of shares
outstanding, Biosite had agreed to be purchased by Beckman
Coulter Inc. (BBB/Negative/--) for $85 a share," explained
Standard & Poor's credit analyst David Lugg. "After a round of
bids and counter bids, Inverness won with a $92.50 a share
offer."
Biosite, the leading provider of a test for detecting heart
failure, complements Inverness, which has its own cardiovascular
tests. Still, the aggregate purchase price is about $1.5
billion, well beyond the company's internal resources. If the
acquisition were to be solely financed with debt, leverage
measures would be exceptionally weak, with debt to EBITDA
increasing to more than 10x and funds from operations to debt
declining to less than 5%. However, Inverness has repeatedly
demonstrated a willingness and ability to use equity financing
to reduce leverage.
In addition, on May 18, 2007, Inverness formed a 50/50 joint
venture with consumer products giant Procter & Gamble
(AA-/Stable/A-1+) for the development and marketing of consumer
diagnostic tests. Inverness contributed most of its related
consumer diagnostic assets while P&G invested $325 million
cash. It is unclear how this new arrangement will affect cash
flow.
Standard & Poor's will meet with Inverness management to obtain
a clearer picture of the expected financial posture before
resolving the CreditWatch.
Headquartered in Waltham, Massachusetts, Inverness Medical
Innovations -- http://www.invernessmedical.com/-- (AMEX:IMA)
develops advanced diagnostic devices and is presently exploring
new opportunities for its proprietary electrochemical and other
technologies in a variety of professional diagnostic and
consumer-oriented applications including immuno- diagnostics
with a focus on women's health, cardiology and infectious
disease. The company has offices in the United Kingdom,
Germany, Sweden, China, Australia, and Canada.
JELLOWAY LIMITED: Enters Liquidation Proceedings
------------------------------------------------
At an extraordinary general meeting held on May 11, 2007, the
members of Jelloway Limited agreed to liquidate the company's
business.
Creditors are required to file their proofs of debt by June 20,
2007, to be included in the company's dividend distribution.
The company's liquidators are:
Ricky P.O. Chong
Cordelia Tang
905 Silvercord, Tower 2
30 Canton Road, Tsimshatsui
Kowloon, Hong Kong
K. L. CORPORATE: Liquidator to Give Wind-Up Report on June 20
-------------------------------------------------------------
K. L. Corporate Services Limited will hold a final meeting for
its members on June 20, 2007, at 10:00 a.m.
Sze Lin Tang, the company's liquidator, will present at the
meeting a report about the company's wind-up proceedings and
property disposal.
The Liquidator can be reached at:
Sze Lin Tang
Max Share Centre, Unit D, 21st Floor
373 King's Road
North Point, Hong Kong
MCLARENS ASIA: Members' Final General Meeting Set for June 18
-------------------------------------------------------------
The members of McLarens Asia Limited will have their final
general meeting on June 18, 2007, at 11:00 a.m., on the 31st
Floor of Gloucester Tower, The Landmark at 11 Pedder Street in
Central, Hong Kong.
The members will receive at the meeting the liquidator's report
about the company's wind-up proceedings and property disposal.
The company's liquidator is:
Young Chun Man Kenneth
Gloucester Tower, 31st Floor
The Landmark, 11 Pedder Street
Central, Hong Kong
PARKSON RETAIL: Moody's Puts Ba1 Rating on US$125 Million Bond
--------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the 5-year
US$125 million bond to be issued by Parkson Retail Group Ltd.
At the same time, Moody's has affirmed the company's Ba1 issuer
rating. The outlook for both ratings is stable.
The bond proceeds will primarily be used for financing Parkson's
recently announced acquisitions, including those of Anshan
Parkson and K&M Store, and for working capital purposes.
"The Ba1 rating reflects Parkson's well-recognized brand name,
its national coverage including a solid operating track record
and strong working capital management practices, stemming in
turn from its concessionaire model and strong bargaining power
over suppliers," says Renee Lam, Moody's Vice President/Senior
Analyst.
"In addition, favorable domestic economic growth and increases
in personal wealth have meant strong like-for-like sales growth
for the company," adds Renee Lam, who is also Moody's lead
analyst for Parkson.
"However, the rating is constrained by the execution risks
associated with Parkson's planned store network expansion and
acquisitions program, as well as intensifying competition in the
Chinese retail market," says Renee Lam.
"Furthermore, the company's debt coverage ratios are likely to
weaken in the next 2-3 years due to its partially debt-funded
expansions," adds Renee Lam.
In accordance with Moody's global rating methodology for retail
industry companies, Parkson maps to a high-to-mid Ba.
The final Ba1 rating further incorporates the company's low
inventory and receivable risks, and steady rental income, due to
its concessionaire model. The rating assumes no need for
Parkson to render support to its 55.5% parent Lion Diversified
Holdings Bhd and group companies apart from a 50% yearly
dividend payout.
The stable ratings outlook reflects Moody's expectation that
Parkson will remain prudent in its expansion plan and achieve
steady operating and financial performances.
The possibility of a rating upgrade is limited in the near term.
However, the rating is likely to experience upward pressure over
time if Parkson demonstrates a track record for successful
organic and inorganic growth, while at the same time maintaining
strong financial discipline with positive free cash flow
generation on a sustained basis.
On the other hand, the rating may experience a downward trend if
Adj. Debt/EBITDA rises above 4.5-5x, while RCF/Adj. Net Debt
falls below 12-14% on a sustained basis. Such an outcome could
be a result of:
(1) a weakening in profit margins, due to rising competition
and/or an erosion in the bargaining power it commands
over its concessionaires/suppliers; and/or
(2) further debt-funded expansions occur, but which are
beyond its original plan. Furthermore, any sign of
financial support to its parent, the Lion Group, would
also pressure ratings.
Parkson, listed on the Hong Kong Stock Exchange, is the PRC
retailing arm of the Lion Group, a Malaysian-based conglomerate.
Parkson is one of the largest national retailers in China,
operating 27 self-owned and 13 managed stores in over 26 cities.
For 2006, revenues were RMB2.2 billion and net income RMB461
million.
PRICEWATERHOUSECOOPERS EXECUTIVE: Members Set to Meet on June 20
----------------------------------------------------------------
The members of PricewaterhouseCoopers Executive Resources
Limited will hold their final meeting on June 20, 2007, at 10:00
a.m., to receive the liquidator's report about the company's
wind-up proceedings and property disposal.
The company's liquidators are:
Ying Hing Chiu
Chung Miu Yin Diana
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
SHANGHAI PUDONG: Mulls Overseas CNY8-Bil. IPO to Bolster Capital
----------------------------------------------------------------
Shanghai Pudong Development Bank plans to raise about CNY8
billion (HK$8.16 billion) from a share sale this year, possibly
in overseas markets including Hong Kong and Frankfurt, various
reports say.
Citing the bank's chairman, Jin Yun, The Standard reports that
selling shares overseas is part of the bank's five-year strategy
to enable them to meet future capital needs and adding outlets
overseas.
Gao Xia, an assistant to the bank's general manager, told The
Wall Street Journal: "Earlier this year, the Frankfurt Stock
Exchange also made overtures, so we don't exclude the
possibility of listing shares in Germany."
The comment from Ms. Gao is the first from the Shanghai-based
bank that confirm it has plans to list outside the mainland,
Rose Yu of the Journal notes. Ms. Gao also said that the bank
may sell additional A shares to existing shareholders such as
Citigroup.
Citigroup, according to Reuters, has a standing agreement to
increase its holding to 19.9% but sources have said the two
sides cannot agree on a suitable price for Citi to pay.
As reported by the Troubled Company Reporter - Asia Pacific on
March 19, 2007, Citigroup will start the process of increasing
its stake in Shanghai Pudong. Citigroup currently holds a 3.78%
stake in the bank and agreed to increase its stake to 19.9%
before the end of 2008.
* * *
Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business. The bank also offers Internet banking and
telephone banking.
Fitch Ratings on March 12, 2007, upgraded the Support ratings of
Shanghai Pudong Development Bank to 3 from 4, reflecting the
improved ability of the government to support domestic financial
institutions and the close relationship between the bank and the
central and local governments. At the same time, the agency
affirmed the bank's individual rating at D.
The bank, as of May 4, 2007, also carries Moody's Ba1 rating for
its long-term bank deposits, NP short-term rating, and a D bank
financial strength rating.
SHANGHAI ZENDAI: Moody's Assigns (P)B2 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service assigned a (P)B2 corporate family
rating to Shanghai Zendai Property Limited. At the same time,
Moody's assigned a (P)B2 foreign currency senior unsecured
rating to Zendai's proposed US$150 million bond issue. The
outlook for both ratings is stable.
This is the first time that Moody's has assigned ratings to
Zendai, and the rating agency expects to lift the ratings'
provisional status upon the completion of the bond issuance.
"Zendai's (P)B2 corporate family rating reflects its small
operating scale with concentrated geographic focus in Shanghai.
Partly mitigating this is the company's relatively broad range
of products, from residential apartments and high-end villas to
commercial properties such as retail and office buildings. The
majority of these properties are also located within the core
area of Pudong district," says Moody's lead analyst, Kaven
Tsang.
"Additionally, the rating reflects Moody's concerns over
corporate governance in view of the material amount of
transactions with the major shareholder," says Tsang, adding,
"This risk is partly mitigated that related-party transactions
are restricted under the bond covenants and complied with
listing rules."
Moody's also notes that Zendai holds majority of its property
projects through an 80%-owned intermediary holding company.
Some of the acquired projects are also not wholly-owned, as the
original owners may continue to hold a minority stake. This
could raise the possible risk of fund leakage. Partly
mitigating the risk, Zendai controls the board of these project
and intermediary holding companies, and therefore could largely
manage their cash flow.
Zendai's leverage ratio will increase to around 50% over the
medium term as it debt-funds its forthcoming land acquisition.
This level is considered high and will hinder the company's
financial flexibility. Similarly, operating cash flow interest
coverage over the next 2-3 years will be modest at around 2-3x
on average.
Zendai's secured and subsidiary debt to total assets ratio will
stay at around 17% after completion of the bond issuance.
However, notching is not applied based on Moody's expectation
that this ratio will lower to around 15% over the near-to-medium
term. In the case that such trend appears unlikely, a one-notch
downgrade of the unsecured bond rating could occur.
The rating outlook is stable, reflecting Moody's expectation
that while Zendai will maintain a relatively aggressive capital
structure during the course of expansion over the next 2-3
years, it will successfully achieve its sales plan and continue
to have uninterrupted access to bank financing.
The rating could undergo a downgrade if Zendai:
(1) fails to execute its business plan, or China's property
market experiences a significant downturn such that
operating cash flow generation is weaker than
anticipated; and/or
(2) materially accelerates development and executes an
aggressive land acquisition plan without a corresponding
increase in cash inflow.
In terms of financial metrics, Moody's would regard the
following as signals for negative rating pressure:
(1) adjusted debt/capitalization rising to more than 55-60%;
or
(2) OCF/interest falling below 1-1.5x.
Rating improvement will be constrained over the next 12-18
months, because of the relatively high business risks associated
with the company's rapid expansion.
However, upward rating pressure could emerge in the medium term
if Zendai establishes a sustainable track record in:
(1) achieving planned sales over the next 2-3 years;
(2) developing a source of recurring income as planned;
(3) good corporate governance; and
(4) an improved financial profile with adjusted leverage
consistently below 40-45%, and OCF/interest above
3.5-4x.
An enhanced liquidity position -- such as maintaining a minimum
cash holding and/or committed back-up facilities sufficient to
support its 12-month forward short-term debt obligations and
working capital needs -- would also be an important factor for
considering an upgrade.
Shanghai Zendai Property Limited is a property developer
focusing on mid-to-high end residential and commercial
developments in the Yangtze River Delta area, mainly in
Shanghai. Aside from this, the company also develops
residential projects in Jilin and Changchun. Currently, it has
a development land bank with an attributable gross floor area of
around 2.95 million sqm, around 1 million sqm of which is fully
paid and with land ownership certificate.
WELWIND ENERGY: Posts CDN$1,188,328 Net Loss in End-March Qtr
-------------------------------------------------------------
Welwind Energy International Corporation reported a net loss of
CDN$1,188,328 for the first quarter ended March 31, 2007,
compared with a net loss of CDN$161,361 for the same period last
year.
Revenue increased to CDN$82,575 for the first quarter of 2007,
compared with revenues of CDN$37,528 for the same period in
2006.
General and administrative expenses incurred during the three
months ended March 31, 2007, totaled $1,198,793. These expenses
were incurred primarily for accounting, audit and legal fees,
and business consulting fees.
At March 31, 2007, the company's balance sheet showed
CDN$3,093,627 in total assets, CDN$430,389 in total liabilities,
and CDN$2,663,238 in total stockholders' equity.
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?1fce
Going Concern Doubt
Manning Elliott LLP, in Vancouver, Canada, expressed substantial
doubt about Welwind Energy International Corporation's ability
to continue as a going concern after auditing the company's
consolidated financial statements as of the years ended Dec. 31,
2006, and 2005. The auditing firm pointed to the company's
significant operating losses and the need for additional
equity/debt financing to sustain operations.
About Welwind Energy
Welwind Energy International Corp., fka Vitasti Inc., (OTCBB:
WWEI) was founded in 2005 to build, own and operate wind farms
on an international scale. Its current projects include
bridging the North America-China link by building wind farms in
China along the South China Sea.
=========
I N D I A
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BRITISH AIRWAYS: Admits to Breaking Competition Rules
-----------------------------------------------------
British Airways has admitted in its full-year results that it
had breached competition law, Yorkshire Post reports.
According to Yorkshire Post, the U.K. Office of Fair Trading and
the U.S. Department of Justice have been probing on alleged
price fixing on long-haul fuel surcharges since June 2006. If
an airline is found guilty of running a price-fixing or market-
sharing cartel, it can be fined by as much as 10% of its
worldwide sales.
Bridgid Nzekwu at Channel 4 News relates that British Airways
was charging an extra GBP70 on transatlantic return flights in
April 2006 to cover an increase in fuel costs.
The Jamaica Gleaner notes that British Airways allegedly
contacted Virgin Atlantic about plans to raise surcharges. The
two airlines launched fuel surcharges in May 2004 against the
rising price of oil on the international market.
According to Channel 4's Ms. Nzekwu, Virgin Atlantic had raised
its surcharge to GBP70. Meanwhile, the United Airlines was
charging GBP74 and American Airlines increased its surcharge to
GBP74.
British Airways told Yorkshire Post that it had allocated GBP350
million to cover potential claims resulting from the discovery
in 2006 that senior staff had discussed long-haul fuel
surcharges with rivals.
Yorkshire Post says that the GBP350-million charge was taken in
yearly results, which disclosed that British Airways had GBP611-
million profits in 2007, compared with GBP616 million in the
previous year.
The Gleaner notes that British Airway could face overall fines
of up to nearly GBP900 million.
British Airways Chief Executive Officer Willie Walsh commented
to The Gleaner, "The policies which we have in place at BA
[British Airways], which are designed to ensure we don't breach
competition law, have been broken. That is deeply regrettable.
We have a stringent regime. It is well documented that we train
all our people and it is completely unacceptable that the policy
was breached."
Mr. Walsh admitted that it had been a challenging year for both
the airline and its passengers. He stated, "We know at times it
has been a frustrating year for our customers, caused by
disruption and overly-restrictive UK Government security
measures on hand baggage."
British Airways' commercial director Martin George and
communications head Iain Burns resigned from their posts in
October 2006. Mr. George admitted that within his department
there might have been improper talks in violation of company
policy in relation to long-haul fuel surcharges.
British Airways said in a statement: "BA has a long-standing,
clear and comprehensive competition compliance policy. This
policy requires all staff to comply with the law at all times.
It has become apparent that there have been breaches of this
policy in relation to discussions about these surcharges with
competitors. As a result it is now appropriate for the company
to make a provision of GBP350 million in its full-year accounts,
which represents the company's best estimate of the amounts that
could be required to settle all known claims in relation to
these matters."
The security disruption in August 2006 cut GBP130 million from
the 2006 profits, while the threatened cabin crew dispute cost
GBP80 million, Yorkshire Post says, citing Collins Stewart
analysts.
The Office of Fair Trading won't confirm how far their probe has
gotten or which other airlines are involved, though several
firms have admitted assisting with the inquiries into an alleged
cartel, Ms. Nzekwu at Channel 4 stated.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, the rating
agency confirmed its Ba1 Corporate Family Rating for British
Airways Plc.
Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.
* Issuer: British Airways, Plc
Projected
Old New LGD Loss-iven
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
GBP100-million 10.875%
Sr. Unsec. Regular
Bond/Debenture
Due 2008 Ba2 Ba2 LGD5 84%
GBP250-million 7.25%
Sr. Unsec. Regular
Bond/Debenture
Due 2016 Ba2 Ba2 LGD5 84%
As reported in the TCR-Europe on March 27, 2007, Standard &
Poor's Ratings Services said that its 'BB+' long-term corporate
credit rating on British Airways PLC remains on CreditWatch,
with positive implications, following a vote on March 22 by EU
ministers approving a proposed "open skies" aviation treaty with
the U.S.
BRITISH AIRWAYS: Joins TPG Consortium in Potential Iberia Bid
-------------------------------------------------------------
British Airways plc, which holds a 10% stake in Iberia Lineas
Aereas de Espana SA, has joined with TPG Capital, Vista Capital,
Inversiones Ibersuizas and Quercus Equity to investigate a
possible consortium offer for the Spanish carrier. There is no
guarantee that a formal bid will be made.
The airline has previously ruled out further capital investment
as part of any consortium offer and will not make an independent
bid for the airline.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, the rating
agency confirmed its Ba1 Corporate Family Rating for British
Airways Plc.
Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.
* Issuer: British Airways, Plc
Projected
Old New LGD Loss-iven
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
GBP100-million 10.875%
Sr. Unsec. Regular
Bond/Debenture
Due 2008 Ba2 Ba2 LGD5 84%
GBP250-million 7.25%
Sr. Unsec. Regular
Bond/Debenture
Due 2016 Ba2 Ba2 LGD5 84%
As reported in the TCR-Europe on March 27, 2007, Standard &
Poor's Ratings Services said that its 'BB+' long-term corporate
credit rating on British Airways PLC remains on CreditWatch,
with positive implications, following a vote on March 22 by EU
ministers approving a proposed "open skies" aviation treaty with
the U.S.
FEDERAL BANK: Board Recommends 40% Dividend on Equity Shares
-----------------------------------------------------------
Federal Bank Ltd's board of directors, at its meeting on May 18,
2007, recommended a dividend of 40% on the company's equity
shares, a filing with the Bombay Stock Exchange disclosed.
As reported in the Troubled Company Reporter - Asia Pacific
yesterday, the bank booked a net profit of INR2.93 billion on
revenues of INR21.04 billion for the fiscal year ended March 31,
2007.
In another BSE filing, the bank said its board has "co-opted" P.
Surendra Pai and Abraham Koshy on the board as independent
directors.
Headquartered in Aluva, India, Federal Bank Limited --
http://www.federal-bank.com/-- is engaged in the banking
business, offering a number of deposit products to its retail
customers, including non-resident Indians, such as savings bank
account, current deposits, time deposits and recurring deposits
with suitable variations for customized products targeting
different groups, including students, salaried employees and
senior citizens.
Fitch Ratings gave Federal Bank a support rating of 5 on
July 22, 2003, and a D individual rating on Nov. 11, 2006. As
of May 23, 2007, the bank still carries those ratings.
FEDERAL BANK: To Establish Subsidiary in Dubai Finance Centre
-------------------------------------------------------------
Federal Bank Ltd will put up a wholly owned subsidiary company
in the Dubai International Finance Centre. The bank's board of
directors decided to make the move at a meeting on May 18, 2007.
The establishment of the unit is still subject to regulatory
approvals including that from the Reserve Bank of India.
Headquartered in Aluva, India, Federal Bank Limited --
http://www.federal-bank.com/-- is engaged in the banking
business, offering a number of deposit products to its retail
customers, including non-resident Indians, such as savings bank
account, current deposits, time deposits and recurring deposits
with suitable variations for customized products targeting
different groups, including students, salaried employees and
senior citizens.
Fitch Ratings gave Federal Bank a support rating of 5 on
July 22, 2003, and a D individual rating on Nov. 11, 2006. As
of May 23, 2007, the bank still carries those ratings.
FEDERAL BANK: To Seek Shareholders Nod on Proposed Rights Issue
---------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 14, 2007, Federal Bank Ltd's board of directors decided to
raise the bank's share capital by way of a rights issue in a
ratio of 1:1.
In a filing with the Bombay Stock Exchange, the bank said that
the board has decided to conduct a postal ballot to obtain
approval from the bank's shareholders on the proposed expansion
of capital and the related rights issue. The BSE filing did not
disclose other details of the planned postal ballot.
Headquartered in Aluva, India, Federal Bank Limited --
http://www.federal-bank.com/-- is engaged in the banking
business, offering a number of deposit products to its retail
customers, including non-resident Indians, such as savings bank
account, current deposits, time deposits and recurring deposits
with suitable variations for customized products targeting
different groups, including students, salaried employees and
senior citizens.
Fitch Ratings gave Federal Bank a support rating of 5 on
July 22, 2003, and a D individual rating on Nov. 11, 2006. As
of May 23, 2007, the bank still carries those ratings.
GARWARE POLYESTER: Net Profit in FY2007 Down 63% to INR20.7 Mil.
----------------------------------------------------------------
Garware Polyester Ltd. posted a net profit of INR20.7 million
for the year ended March 31, 2007, 63% down from the INR56.6-
million income booked in fiscal year 2006.
The company's revenues slightly increased (7%) from INR4.95
billion in the year ended March 31, 2006, to INR5.32 billion in
FY2007. Expenditures grew by 10% to INR4.5 billion in FY2007,
arriving at an operating profit of INR823.6 million, lower than
the INR864.5-million operating profit reported in the prior
year. Interest charges and depreciation were higher in FY2007
-- INR463.3 million and INR312 million respectively.
A full-text copy of the company's financial results for the year
ended March 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?2003
Garware Polyester'S net profit in the quarter ended March 31,
2007, improved to INR52.2 million compared to the INR15.3-
million profit booked in the quarter ended March 31, 2006. The
company's revenues increased 14% to INR1.14 billion in the
January-March 2007 quarter.
Expenditures totaled INR1.14 million in the current quarter
under review, hence the company booked an operating profit of
INR277.2 billion. The company recorded interest charges of
INR11.3 million, depreciation of INR78.5 million and taxes
totaling INR35.2 million.
Full-text copies of the company's financial results for the
quarter ended March 31, 2007, are available for free at:
http://ResearchArchives.com/t/s?2002
Headquartered in Aurangabad, India, Garware Polyester Ltd. --
http://www.garwarepoly.com/-- produces polyester film. Its
products range includes films that cater to the solar control
industry, packaging industry and reprographic industry. In
addition, the company's bi-axially oriented polyethylene
teraphthalate film range includes sun control films, overhead
projector films and film for packaging, cable insulation,
audiotapes, tracing and drafting.
On June 14, 2006, CRISIL Ratings reaffirmed the outstanding 'D'
rating on the INR164.2-million non-convertible debenture issue
of Garware Polyester. The rating indicates that the instrument
is in default and in arrears of interest and principal payments.
GENERAL MOTORS: To Invest US$61 Mil. in New Casting Technology
--------------------------------------------------------------
General Motors Corp. will invest US$61 million in new technology
at its plant in Defiance, Ohio, to produce aluminum engine
blocks in 3.6-liter high-feature V-6 engines. This will be the
first application of precision sand casting technology at the
plant.
The precision sand technology results in higher material
strength properties needed to support the newer, more efficient
engines in GM's product portfolio. The 3.6-liter high-feature
V-6 engine has applications in the Cadillac CTS, SRX and STS;
and the GMC Acadia, Saturn Outlook and Buick Enclave crossover
SUVs.
The investment includes plant renovation and installation of new
tooling and machinery for the new technology. Refurbishment of
120,000 square feet portion of the plant is slated to begin in
June, with production of the precision sand engine block
castings to begin in December 2009. The project will retain
about 120 hourly jobs.
"We are transforming GM's casting business and moving in a new
technological direction to be competitive in the changing
marketplace," Arvin Jones, GM Powertrain manufacturing manager
for castings and components, said. "The Defiance plant is part
of that transformation. This investment is possible because of
the involvement of employees in improving the quality of our
products and the efficiency of the operations here. Their
efforts are contributing to GM's turnaround in North America."
The GM Powertrain Defiance plant management and UAW Local 211
leadership successfully negotiated a competitive operating
agreement that improves operational effectiveness. The
agreement also addresses processes and methods to improve
production quality and safety of the operations.
"On behalf of GM, I commend the United Auto Workers, UAW Local
211 and Ohio 's leaders on the state and local levels. Working
together we were able to build a competitive business case to
support this investment in Ohio. This investment, combined with
GM Powertrain's investments at its transmission plant in Toledo,
total nearly US$1 billion that GM has committed to its Ohio
facilities in the last year," Mr. Jones said.
Precision sand casting involves a resin-bonded sand that forms a
mold, which shapes the contours of the engine block to be
produced. The sand is cured into a solid exterior mold. Molten
metal is then poured into the mold. This process allows the use
of cast-in-place iron liners, pressurized aluminum filling and
produces a high degree of dimensional accuracy.
"Today marks an exciting new chapter in this plant's 59-year
history of producing high quality castings for GM engine blocks
and heads," John Thomas, Defiance plant manager, said. "This
investment plays a significant role in GM's continuing
commitment to build exciting, fuel-efficient powertrains for the
global market."
GM Powertrain's Defiance casting plant poured their first iron
on August 23, 1948. The plant employs 1,554 hourly and 246
salary workers and has an annual payroll of US$135 million. In
2006, the plant produced 1,423,368 grey iron engine blocks,
1,078,497 grey iron cylinder heads, 206,577 aluminum engine
blocks, 154,055 aluminum cylinder heads, as well as malleable
iron transmission parts and nodular iron crank shafts. Grey
iron cylinder blocks and cylinder heads manufactured at Defiance
are used in the Vortec 4.8-liter, 5.3-liter and 6.0-liter V-8
engines that power GM's full-size SUVs and light-duty pickups
and the Duramax 6.6-liter V-8 diesel engine that powers the
Chevy Silverado HD and GMC Sierra HD pickups. Aluminum engine
blocks and cylinder heads produced at Defiance are used in the
3.0-liter In-line four-cylinder and 3.7-liter five-cylinder
engines that power the Chevrolet Colorado, GMC Canyon and
Hummer H3.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries.
General Motors has Asia-Pacific operations in India, China,
Indonesia, Japan, the Philippines, among others. I t has
locations in European countries including Belgium, Austria, and
France. In Latin America, the company maintains locations in
Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay
and Uruguay.
* * *
In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006. S&P said
the outlook is negative.
In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.
GENERAL MOTORS: Marketing VP Michael Jackson Resigns on June 15
---------------------------------------------------------------
General Motors Corp. North American Vice President for Marketing
and Advertising, Michael Jackson, is resigning effective
June 15, 2007, to pursue other opportunities, according various
reports.
GM's vice president for North American vehicle sales, service
and marketing, Mark LaNeve, will handle Mr. Jackson's tasks.
Mr. Jackson has been credited for GM's improved product image as
well as a creative approach to GM's market presence.
Prior to his promotion in March 2006, Mr. Jackson was GM's
western regional sales manager director, the Auto Channel
details. Mr. Jackson had started out as executive director of
sales and marketing in GM's Detroit headquarters in February
2000.
Prior to joining GM, Mr. Jackson held management positions in
Coors Brewing Company, Pepsi-Co and Coca Cola.
The Auto Channel recounts that Mr. Jackson graduated from a
Bachelor of Arts degree in Journalism at Kent State University
and finished a master's degree in communications at Annenberg
School at the University of Southern California. He also
accomplished the Wharton Executive Development Program and GM
Senior Executive Program in the University of Pennsylvania.
Mr. Jackson was born on July 18, 1956 in Youngstown, Ohio and
graduated in Ursuline High School.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries.
General Motors has Asia-Pacific operations in India, China,
Indonesia, Japan, the Philippines, among others. It has
locations in European countries including Belgium, Austria, and
France. In Latin America, the company maintains locations in
Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay
and Uruguay.
* * *
In December 2006, Standard & Poor's Ratings Services affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006. S&P said
the outlook is negative.
In November 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the US$1.5 billion secured term loan of
General Motors Corp.
HDFC BANK: To Raise US$1 Billion in Additional Capital
------------------------------------------------------
HDFC Bank Ltd will be raising additional share capital of
US$1,000,000,000 or INR4,200 crores, whichever is higher, a
filing with the Bombay Stock Exchange reveals. The bank's board
of directors decided on the move at its meeting on May 17, 2007.
According to the bank, the equity issue will result in the
reduction of the present shareholding of the promoter group --
the HDFC Group -- which is currently at 21.56%. With a view to
maintain the shareholding of the promoter group at or about 23%
of the enhanced capital base, the bank proposes to offer to the
promoter group by way of preferential offer, 1,35,82,000 equity
shares of INR10 each to Housing Development Finance Corporation
Ltd at an issue price of INR1,023.49 per share. The proposed
issue price in accordance with the specified formula as per
Securities and Exchange Board of India (Disclosure and Investor
Protection) Guidelines 2000, the bank points out. The balance
amount of the proposed equity capital may be raised either as
domestic public offering or as public or private offerings in
one or more international markets.
Headquartered in Mumbai, India, HDFC Bank Limited --
http://www.hdfcbank.com/-- is a private sector bank that offers
a range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank
operates in three segments: retail banking, wholesale banking
and treasury services. The retail banking segment serves retail
customers through a branch network and other delivery channels.
The wholesale banking segment provides loans and transaction
services to corporate and institutional customers. The treasury
services segment undertakes trading operations on the
proprietary account, foreign exchange operations and derivatives
trading.
Fitch Ratings, on June 1, 2005, gave HDFC Bank a 'C' individual
rating.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Tapped as System Integrator for Subex Azure
-----------------------------------------------------------
Alcatel-Lucent has been named by TELUS as system integrator to
support the delivery of broadband IP services over the Alcatel-
Lucent IP service routing portfolio using the Syndesis
NetProvision software solution from Subex Azure, a leading
global provider of OSS solutions for telecom operators.
TELUS has deployed the Alcatel-Lucent 7750 Service Router and
7450 Ethernet Service Switch in its network to support the
delivery of consumer and business broadband services. With
Alcatel-Lucent as the system integrator TELUS is leveraging
Alcatel-Lucent's expertise in IP networking and its partnership
with Subex Azure to optimize the development of an IP OSS
services provisioning solution that fully exploits the rich
feature set of the Alcatel-Lucent IP/MPLS portfolio.
Syndesis NetProvision automates the design and activation of
complex, application-aware connectivity services. It enables
flow-through provisioning of next-generation data and IP
offerings across multi vendor, multi-technology networks. Based
on the industry's most advanced and most widely deployed
discovery engine, Syndesis NetProvision significantly reduces
fallout rates and decreases the time required to activate a
service. Best suited to complex, high-volume production
environments, it ensures quick, reliable service fulfillment,
accelerates time-to-market for new offerings and facilitates
mass-market efficiencies, driving out costs while generating new
revenue opportunities.
"We anticipate that Alcatel-Lucent, working closely with Subex
Azure, will deliver a cost-effective solution that will enhance
our service provisioning capabilities," said Ibrahim Gedeon,
Chief Technology Officer, TELUS. "This relationship will take
full advantage of each vendor's strengths to generate critical
OSS service provisioning solutions faster and without
sacrificing quality."
"Subex Azure is a close and valued partner with us for customers
implementing OSS solutions in the broadband IP services market,"
said Basil Alwan, president of Alcatel-Lucent IP activities.
"TELUS understands that Alcatel-Lucent, as the systems
integrator of Syndesis NetProvision solutions for our IP
portfolio, can leverage extensive service and network
architecture expertise, and our own OSS developments, including
our 5620 Service Aware Manager, to deliver quality solutions
faster."
"Subex Azure welcomes Alcatel-Lucent as systems integrator for
our solution," said Subash Menon, Founder Chairman, Managing
Director and CEO of Subex Azure. "Alcatel-Lucent's global
broadband IP services success provides an excellent channel to
market for Subex Azure's best-in-class OSS software."
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.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
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 reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
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.
BANK RAKYAT: May Acquire Another Bank for Islamic Market Growth
---------------------------------------------------------------
PT Bank Rakyat Indonesia Tbk may disclose the acquisition of
another bank next week as part of its plans to expand in the
Islamic banking market, Reuters reports.
According to the report, President Director of BRI Sofyan
Basyir, said that they will pick one of two candidates that they
will acquire next week, but did not name the companies. The new
bank would run BRI's sharia operation and is expected to start
in September at the latest.
Bank Rakyat's shareholders also gave their approval to pay
IDR2.13 trillion of the lender's 2006 net profit for dividend,
translating to IDR172.33 per share, the report notes.
The report adds that Islamic law bans payment of interest,
allowing money to be earned only from physical assets.
About Bank Rakyat Indonesia
Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise
Savings, Credits and Syariah. In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions. During the year ended
December 31, 2005, the bank had one branch office in Cayman
Islands and two representative offices in New York and Hong
Kong, respectively.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 8,
2007, that Moody's Investors Service changed the ratings of
Indonesia's PT Bank Rakyat Indonesia (Persero) Tbk's as part of
the application of its refined joint default analysis and
updated bank financial strength rating methodologies.
The specific ratings changes are:
* BFSR is changed to D+ from D-
-- This action also concludes a review for possible
upgrade on the BFSR initiated on July 4, 2006.
* Global Local Currency Deposit Ratings assigned are
Baa2/Prime-3
* Foreign Currency Deposit Ratings are unchanged at B2/Not
Prime
* Foreign Currency Debt Rating for subordinated obligations
is unchanged at Ba3
-- Foreign Currency Deposit and Foreign Currency Debt
Ratings have positive outlooks in line with the outlook
on the country's sovereign ratings outlook
Fitch Ratings affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk's:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
BEARINGPOINT INC: Jill Kanin-Lovers Joins Board of Directors
------------------------------------------------------------
BearingPoint Inc. has appointed Jill Kanin-Lovers to its Board
of Directors, effective May 10, 2007.
Ms. Kanin-Lovers has more than 30 years of human resources and
management experience. From 1992 to 2004, she held senior human
resources leadership positions at Avon Products Inc., IBM and
the American Express Company. She spent the first 17 years of
her career with Towers Perrin, a leading global human resources
consulting firm, where she held a number of management and
leadership positions.
"In the consulting industry, nothing is more important than
attracting and retaining the best talent," said Rod McGeary,
BearingPoint's Chairman of the Board. "Jill's extensive human
resources expertise will help BearingPoint continue to attract
the best and brightest in our industry ensuring that we can
continue to exceed the expectations of our clients."
Named one of the Top 50 HR Leaders in the world by HR World
magazine, Ms. Kanin-Lovers has worked with senior management to
drive global human resources strategies and organizational
transformation at several of the world's most highly regarded
companies. That unique experience will be invaluable as
BearingPoint continues its drive to build a world-class human
resources capability to serve its 17,000 employees.
Ms. Kanin-Lovers now serves on the Board of Directors for First
Advantage, a leading risk mitigation and business solutions
provider; for Dot Foods, the nation's largest food
redistributor; and for Heidrick & Struggles, a leading global
search firm. She received her bachelor's degree from the State
University of New York at Albany and her master's in Business
Administration, specializing in Personnel and Industrial
Relations, from the University of Pennsylvania's Wharton School
of Business.
About BearingPoint
Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
* * *
Moody's Investors Service's rated BearingPoint Inc.'s 2.5%
Series A Convertible Subordinated Debentures due 2024 at B3.
EXCELCOMINDO PRATAMA: Fitch Affirms Local Currency IDR at BB-
-------------------------------------------------------------
Fitch Ratings has affirmed PT Excelcomindo Pratama Tbk's Long-
term Foreign Currency and Local Currency Issuer Default Ratings
at 'BB-'. The Outlook remains Stable. At the same time, Fitch
has affirmed the 'BB-' rating on its senior unsecured notes
programme.
The ratings reflect XL's entrenched position in the Indonesian
cellular industry, highly cash generative operations and robust
growth prospects. The ratings also draw support from XL's
majority ownership by Telekom Malaysia, which would provide
financial and operational support to the former; XL is notably
TM's largest overseas investment and accounted for around 11% of
group revenues in 2006, and as a consolidated subsidiary, is a
cross-default party per provisions on TM's outstanding bonds.
"The growth outlook for Indonesia's cellular industry remains
positive, with penetration still low at around 28%, despite
subscribers having grown at a CAGR of 56% over the past five
years," said Priya Gupta, Director in Fitch's Asia-Pacific
telecommunications, media and technology team. XL was able to
grow its subscriber base by 37% to 9.5 million in 2006, which
corresponds to a market share of about 14%. The company also
made strong progress with its network expansion in 2006, thereby
strengthening its competitive position relative to its larger
rivals, and fortifying its operations before new players entered
the market.
The ratings also take into account the intense wireless
competition, with major operators continuing to invest heavily
in their networks and new GSM entrant PT Hutchison CP
Telecommunications ramping up its presence. Moreover, fixed-
wireless challengers have emerged as a credible threat, as they
offer limited-mobility at a fraction of GSM tariffs, and have
recently launched products that bridge the divide with full-
mobility cellular.
Fitch says XL's ratings are constrained by continued
vulnerability to foreign exchange risk and negative free cash
flow position due to high capital expenditure requirements.
XL's ratings also consider the slowly developing and
persistently uncertain regulatory regime as well as political,
legal and currency risks that are inherent in Indonesia.
At FYE06, XL's FFO adjusted net leverage was 1.7x, an
improvement from 1.9x the previous year. "The ratings have
factored in a moderate weakening of XL's credit ratios in FY07
and continuing negative FCF over the next three to four years,"
commented Ms. Gupta. XL partially funded FY06 capex of IDR4.5
trillion with proceeds from a US$250 million bond issuance in
early 2006; it plans to incur new debt of approximately US$400m-
US$450m in FY07 to support its large capex plan of around
US$700m for FY08. Moreover, the company has indicated a new
dividend policy at 15% to 20% of normalised net income, which
corresponds to a payout of US$7.0m on FY07 net income.
The Stable Outlook for the ratings is based on Fitch's
expectation that XL will maintain, and perhaps strengthen, its
operating position in the medium term with support from TM.
However, Fitch notes that downward pressure on the ratings could
arise if the cross default provisions in TM's bond documentation
are diluted or removed, or if debt-funded capex is more
aggressive than anticipated, thereby resulting in material
deterioration to key credit ratios. In this regard, Fitch does
not expect XL's total adjusted leverage to exceed 4.5x.
About Excelcomindo Pratama
Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
services. In addition, Excelcomindo provides voice, data and
other value-added cellular telecommunications services. Its
product lines include jempol, bebas and xplor. The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
all centers. Excelcomindo starter packs and voucher reloads are
also sold by independent retailers.
Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%. TM and
its parent Khazanah together hold 73.7% in XL.
INDOSAT: Fitch Affirms Local Currency IDR at 'BB-'
--------------------------------------------------
Fitch Ratings has affirmed PT Indosat Tbk's Long-term Foreign
Currency and Local Currency Issuer Default Ratings at 'BB-'.
The Outlook on the ratings is Stable. At the same time, Fitch
has affirmed the 'BB-' ratings on Indosat's senior unsecured
notes programme.
Indosat's ratings reflect its position in the Indonesian
telecommunications sector as the second-largest provider of
cellular and international direct dialing services. The company
also offers fixed wireless, domestic long-distance and fixed-
data services. In recent years, Indosat has encountered
challenges across its business segments, including increased
competition in IDD services, regulatory challenges on its DLD
expansion plans and cellular network-integration issues. The
company lost its top market position in IDD during FY06, and its
GSM revenue market share fell to around 20% in 9M06 from around
26% in FY05. "The company's weakened operating profile in
cellular is a significant concern, given that it is the mainstay
of Indosat's consolidated profile," said Priya Gupta, Director
in Fitch's Asia-Pacific telecom, media and technology team.
Although Indosat had fallen behind major GSM competitors on its
network rollout in 2006, Fitch notes that the company is taking
steps to regain lost ground. FY07 capex targets have been
boosted to US$1.0 billion, of which around 85% has been reserved
for cellular network expansion. Indosat is targeting 3500 to
4000 new base stations in FY07, which represents substantial
growth of 50% to 55% on its existing infrastructure.
Indonesia's cellular growth prospects are promising, with
penetration still low at around 28%, despite subscribers having
grown at a CAGR of 56% over the past five years. Indosat is
expected to be a major beneficiary of future growth; however
Fitch cautions that it will face a more challenging environment
as competition intensifies with major operators continuing to
invest heavily in their networks and new GSM entrant PT
Hutchison CP Telecommunications ramping up its presence.
Moreover, fixed-wireless challengers have emerged as a credible
threat, as they offer limited-mobility at a fraction of GSM
tariffs, and have recently launched products that bridge the
divide with full-mobility cellular.
With cash-capex of around IDR6.4 trillion in 2006 funded mainly
from operating cash flows and reserves, FY06 key credit metrics
remained fairly stable over the previous year. As at December
2006, Indosat's net adjusted leverage stood at 1.6x with FFO net
interest cover of 6.2x and total adjusted debt to capitalisation
of 47.6%. Although the company generates robust cash flows from
operations, its free cash flow position is pressured by large
capex and substantial shareholder returns. "Negative FCF is
expected to widen considerably in FY07 as a result of renewed
vigor on its cellular network expansion, which the company plans
to fund through new debt issuances aggregating around US$500
million." commented Ms Gupta.
Indosat's ratings incorporate risks that are inherent in
Indonesia, including political and social instability, economic
and currency volatility and the lack of an effective legal
framework. Although regulatory uncertainty persists, there has
been improved momentum over the last year with several major
initiatives implemented including 3G licensing, prepaid
registration and cost-based interconnection.
The Stable Outlook is based on Fitch's expectation that
Indosat's key credit metrics will remain comfortable for its
ratings through FY07, notwithstanding higher indebtedness for
capex-funding. Upward rating pressure would be dependent on
disciplined execution of FY07 capex, which drives a
strengthening of its cellular position and effective management
of competitive pressures. Evidence of the company approaching a
positive FCF position would also provide upward pressure, as
long as this is achieved without compromising long-term
competitiveness. Conversely, downward pressure would arise with
further material declines in GSM revenue market share or in the
event of irrational price competition.
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company provides international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
=========
J A P A N
=========
JAPAN AIRLINES: To Raise Fuel Surcharge Due to Oil Hike
-------------------------------------------------------
Japan Airlines International Company, Limited plans to increase
its fuel surcharge on nearly all international passenger tickets
issued on or after July 1, 2007, due to the increase of
Singapore kerosene-type jet fuel.
JAL has decided to increase the fuel surcharge for tickets
issued between July 1 to September 30, 2007, as the price of
Singapore kerosene-type jet fuel has gradually risen to the
current level of over US$80.00 per barrel, and has averaged over
US$75.00 per barrel in the period February - April 2007.
Based on ticket sales in Japan, the new surcharges per person
per sector flown range from JPY1,700 on a Japan - Korea ticket
(up from JPY1,400) to JPY15,500 on a Japan- Brazil ticket (up
from JPY14,500). The surcharge on a Japan-Europe ticket or a
Japan- North America ticket will be JPY12,000, up from
JPY11,000.
A full-text copy of the revised fuel surcharge and the fuel
surcharge benchmark list is available for free at:
http://ResearchArchives.com/t/s?1fee
The new fuel surcharges will be fixed at these levels throughout
the three-month period beginning July 1.
JAL originally introduced the fuel surcharge on international
tickets in February 2005 in response to unprecedented rises in
the cost of fuel. The surcharge will be progressively reduced
as the price of fuel decreases, and will be cancelled completely
when the price of Singapore kerosene stays below the benchmark
of US$45.00.
The level of fuel surcharge placed on international tickets
issued during the October - December 2007 three-month period
will be reviewed by the airline based on the average price of
Singapore kerosene for May to July 2007. The fuel surcharge
charged for tickets issued from January to March 2008 will be
reviewed based on the average price of fuel for August through
to October 2007.
The company will continue to conduct a wide range of
countermeasures to limit the full impact of the price increase
including fuel hedging, fuel consumption reductions, and the
introduction of more fuel-efficient small and medium-sized
aircraft to its fleet.
Despite these measures, the company is still reluctantly obliged
to ask its international passengers to bear part of the burden
caused by the unprecedented increase in the price of fuel over
the past few years.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP reported on Oct. 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic. JAL International will be the
surviving company. The rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
NIKKO CORDIAL: To Appoint Three Citigroup Executives to Board
-------------------------------------------------------------
Nikko Cordial Corp. plans to appoint to its board three
executives from Citigroup, which last month won control of the
company in a US$7.7 billion deal, Reuters reports citing the
Nikkei Business Daily.
In a report by Troubled Company Reporter-Asia Pacific on
April 27, 2007, Citigroup became the major shareholder of Nikko
Cordial, acquiring a total of 61% stake.
According to Reuters, The Nikkei said in its evening edition
that Nikko Cordial had decided to make the appointments, which
include Citibank Japan Chief Executive Douglas Peterson, in a
bid to regain market trust after an accounting scandal.
Reuters cites The Nikkei saying that Nikko Cordial declined to
comment on the report.
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The Asset
Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore. The
company has a global network.
* * *
The Troubled Company Reporter-Asia Pacific reported on March 8,
2007, that Fitch Ratings revised the Rating Watch on the foreign
and local currency Issuer Default and Individual ratings of
Nikko Cordial Corporation and Nikko Cordial Securities Inc. to
Evolving from Negative. These ratings were placed on Watch
Negative on Dec. 21, 2006.
The ratings are:
NCC: Individual rating C/D and Support rating 5.
Nikko Cordial Securities: Individual C and Support rating 4.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating
Nikko Cordial for falsifying its annual financial statements for
the business year ended March 30, 2005, declaring JPY14 billion
in false profits, and using them to procure money from the
market.
NIKKO CORDIAL: To Resume Operations of Three Subsidiaries
---------------------------------------------------------
Nikko Cordial Corporation has decided to continue its operations
for its subsidiaries, Nikko Principal Investments Japan, Ltd.,
Nikko Principal Investments Limited and Nikko Principal
Investments Australia Pty., Ltd. to fulfill its responsibilities
to its customers, business partners and investee companies.
This proclamation follows the rebuilding and verifying of Nikko
Cordial's internal control system and its subsidiaries engaging
in merchant banking business.
The internal control system verified at the time the notice was
released was the one which enables PDCA (Plan, Do, Check, and
Action) Cycle announced on February 13, 2007. The Company has
re-built the system at NPI and also reconfirmed that NPIL and
NPIA had already had that internal control in place. In the
future, results of check on operational execution status and
information related to risk management will be reported to the
Company's Group Risk Management Division through the internal
control system. Group Risk Management Division, by collecting
risk-related information directly, appropriately and in a timely
fashion from subsidiaries, centrally controls all the risks of
the Group companies. It also assesses risks by company an by
classification, manages progress on risk responding measures,
and verifies effectiveness of the risk responding measures,
among other things. If Group Risk Management Division finds any
flaw in the internal control system, the Division will report to
Chief Compliance Officer, who oversees Group Risk Management
Division and Group Administrative Division. Upon receiving a
report, Chief Compliance Officer will improve control-related
PDCA Cycle by having Group Administrative Division to promptly
execute improvement measures.
The Company considers that, the merchant banking business that
can support improvement of corporate values, and corporate
restructuring and rehabilitations by providing funding or
solutions in a timely fashion based on mid-to-long term
perspective, is the engine for economic revitalization that will
contribute to sustainable growth and development of economy, and
also a socially meaningful business.
Now that the Company has re-built internal control system at its
merchant banking subsidiaries, it will work to strengthen
collaborative platform across Nikko Cordial group companies and
ensure appropriate and transparent disclosure into the future.
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The Asset
Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore. The
company has a global network.
* * *
The Troubled Company Reporter-Asia Pacific reported on March 8,
2007, that Fitch Ratings revised the Rating Watch on the foreign
and local currency Issuer Default and Individual ratings of
Nikko Cordial Corporation and Nikko Cordial Securities Inc. to
Evolving from Negative. These ratings were placed on Watch
Negative on Dec. 21, 2006.
The ratings are:
NCC: Individual rating C/D and Support rating 5.
Nikko Cordial Securities: Individual C and Support rating 4.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating
Nikko Cordial for falsifying its annual financial statements for
the business year ended March 30, 2005, declaring JPY14 billion
in false profits, and using them to procure money from the
market.
=========
K O R E A
=========
KOOKMIN BANK: Drops Majority Stake Bid in KGI Securities
--------------------------------------------------------
Kookmin Bank has decided not to bid for a 51% stake in Koos
Group's unit, KGI Securities Co., without giving any reason for
dropping out of the bid, various reports say.
However, industry sources told Yonhap News that the bank dropped
out of the bidding process apparently due to a high sale price,
estimated at KRW200 billion.
In addition, Korean Times points out that under the securities
law, a bank is allowed to become the biggest shareholder of a
brokerage house if it hasn't received a single disciplinary
warning from the Financial Supervisory Service for three years.
In 2004, the Times relates, the regulator slapped KRW2 billion
in fines on the bank after it discovered that KB breached
accounting standards in the process of merging with its credit
card unit to evade taxes.
The Times indicates that the Financial Supervisory Service is
expected to step in and decide Kookmin Bank's eligibility in
bidding for KGI. This would put the brakes on KB's goal of
securing the securities firm, the report notes.
About Kookmin Bank
Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides
various commercial banking services, such as deposits, credit
cards, trust funds, foreign exchange transactions, and corporate
finance. The bank also offers Internet banking services.
The Troubled Company Reporter - Asia Pacific reported on May 8,
2007, Moody's Investors Service, as part of the application of
its refined joint default analysis and updated bank financial
strength rating methodologies, revise Kookmin Bank's ratings:
* BFSR is changed to C from D+
* Global Local Currency Deposit Ratings assigned are
Aa3/Prime-1
* Foreign Currency Deposit Ratings are unchanged at
A3/Prime-2
* Foreign Currency Debt Rating for senior obligations is
changed to A1 from A3 and for subordinated obligations
to A1 from Baa1
* Foreign Currency Short Term Debt Rating is unchanged at
Prime-1
All the ratings have a stable outlook except for the Foreign
Currency Deposit Ratings, which carry a positive outlook.
As reported by the Troubled Company Reporter - Asia Pacific on
May 1, 2007, Kookmin Bank told Korea Exchange that it had
submitted a letter of Intent to buy KGI Securities, as it seeks
to beef up its brokerage business to counter weaker lending
margins.
UAL CORP: Fitch Affirms Issuer Default Rating at B-
---------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Ratings of UAL
Corp. and its principal operating subsidiary United Airlines,
Inc. at 'B-'.
In addition, Fitch affirms United Airlines' secured bank credit
facility (term loan and revolving credit facility) at 'BB-/RR1'.
Fitch has revised the Rating Outlook for UAL and United to
Positive from Stable. The secured debt rating applies to
United's recently amended US$2.055 billion bank credit facility.
Ratings for UAL and United reflect the carrier's highly levered
balance sheet, improving but still weak margins, and ongoing
susceptibility to revenue and fuel price shocks in an industry
that remains particularly vulnerable to event risk. Fifteen
months after its exit from Chapter 11 and a three-year
restructuring process, United's operating profile has improved
modestly and its free cash flow generation outlook for 2007 is
good. With no aircraft deliveries on the near-term horizon and
reasonably strong international revenue fundamentals still in
place, United is poised to strengthen its liquidity position
again this year, while de-levering through scheduled debt
amortization and better operating cash flow trends.
The revision of the Rating Outlook to Positive reflects the
expectation that strong free cash flow (in excess of US$1
billion for 2007) will allow de-levering to proceed, even in a
challenging industry operating environment.
United took an important step on the road to balance sheet
repair with the recent refinancing of its bank credit facility.
The airline's liquidity position at year-end 2006 was very
strong (US$5 billion in total cash), allowing management to pay
down US$972 million on the original exit facility while reducing
the total commitment under the new facility to US$2.055 billion
from US$3 billion. Tighter credit spreads provided United with
an opportunity to lower its annual interest expense by
approximately US$70 million as a result of the refinancing. The
new credit facility was priced at LIBOR + 200 basis points. The
transaction also freed up about 100 aircraft from the exit
facility collateral pool, creating a larger base of unencumbered
assets and improving the carrier's flexibility in responding to
any future liquidity pressure. The credit facility pay-down,
together with scheduled debt payments, drove approximately
US$1.4 billion of adjusted debt reduction in the first quarter.
The operating outlook for United and the rest of the U.S.
airline industry is more uncertain in light of softer than
expected domestic revenue trends reported for the first quarter.
The outlook is further complicated by high and volatile jet fuel
prices, which may increase in importance this summer if limited
refining capacity fails to keep up with strong fuel demand.
United has hedged approximately 23% of expected second-quarter
fuel deliveries with three-way crude oil options with upside
protection beginning at US$59 per barrel of crude oil and capped
at US$69 per barrel.
Domestic available seat mile capacity growth for the industry
will exceed U.S. GDP and underlying demand growth this year, and
passenger yield growth will likely be low (or even negative) in
the second and third quarters as a result of slower U.S.
economic growth. In international markets, higher capacity
growth rates (particularly on trans-Atlantic routes) may put
pressure on yields and revenue per ASM this summer. The timing
of any softening in international markets will be an important
trend to monitor in the second and third quarter in determining
whether United and the rest of the industry can expand operating
margins in 2007.
United reported a pre-tax loss of US$236 million in the
seasonally weak first quarter - a performance that stood in
contrast to reported profitability at AMR and Continental.
While the first quarter pre-tax loss was US$70 million better
than the comparable year-earlier number, operating trends were
clearly weaker than expected as a result of soft domestic unit
revenue patterns in the quarter. Much of the problem was
related to excess capacity introduced by United and some of its
competitors in January.
Management identified the Denver hub as a particular problem
with respect to pricing pressure. A large low-cost carrier
presence at Denver, where Southwest began operations in 2006,
appears to be contributing to yield weakness there. A shift in
Mileage Plus revenue accounting policies drove approximately
US$107 million in reduced passenger revenue during the first
quarter, but even adjusted revenue per ASM figures for the
period were weak. This was especially true in North America,
where yields and unit revenue both fell by about 4%. On the
cost side, United is hitting its expense reduction goals; US$265
million in additional cost reduction is targeted for all of
2007. However, inflationary pressures on the maintenance and
airport rents lines will force non-fuel cost per available seat
mile (CASM) up by 1% to 2% for the full year.
Softening domestic revenue trends this year will make it
difficult for United to deliver solid improvements in operating
margins; however, limited calls on operating cash flow for the
year should allow the carrier to meet scheduled debt maturities
and continue de-levering the balance sheet in a modestly weaker
industry operating environment. An upgrade to 'B' for the IDR
is possible within the next 12 to 18 months, but largely
dependent upon the durability of the industry revenue recovery
and the absence of further sharp spikes in jet fuel prices.
Management remains focused on the need to re-build its balance
sheet through strong free cash flow generation and scheduled
debt amortization. Beyond contractual commitments, management
noted on its April 25 earnings call that excess cash flow could
be targeted toward additional debt reduction. While the
potential return of cash to shareholders is being analyzed, no
plans are in place for a share repurchase in 2007. Any decision
to launch a share repurchase or dividend program would require
lender consultation under the terms of the amended credit
facility.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest
air carrier. The company filed for chapter 11 protection on
Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman,
Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis,
represented the Debtors in their restructuring efforts. Fruman
Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented
the Official Committee of Unsecured Creditors before the
Committee was dissolved when the Debtors emerged from
Bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended
Plan on Jan. 20, 2006. The company emerged from bankruptcy
protection on Feb. 1, 2006. At Dec. 31, 2006, the company's
balance sheet showed total assets of US$25,369,000,000
and total liabilities of US$23,221,000,000.
The airline flies to Brazil, Korea and Germany.
UAL CORP: Resells Previously Issued US$726 Mil. 4.5% Sr. Notes
--------------------------------------------------------------
UAL Corp. filed with the Securities and Exchange Commission on
May 3 and May 15, 2007, two supplements to the prospectus dated
April 23, 2007, relating to the resale of up to US$726,000,000
aggregate principal amount of 4.50% Senior Limited-Subordination
Convertible Notes due 2021 and shares of UAL's common stock
issuable upon conversion of the notes or in payment of accrued
interest on the notes.
The notes are guaranteed on an unsecured basis by United Air
Lines, Inc., a wholly owned subsidiary of UAL.
The Second Supplement to the Prospectus provides an updated list
of the Selling Securityholders and the total number of UAL
shares they beneficially own after the offering:
Selling Principal Amount of UAL Shares Shares Owned
Securityholder Notes Owned/Offered Offered After
Offering
-------------- ------------------- ---------- ------------
Agamas Continuum US$3,000,000 86,110 -
Master Fund, Ltd.
Canyon Capital 24,505,000 703,379 123,566
Arbitrage Master
Fund, Ltd.
Canyon Value 15,855,000 455,093 102,116
Realization Fund,
L.P.
Canyon Value 2,635,000 75,633 11,785
Realization MAC
18 Ltd.
Centennier Fund 70,000,000 2,009,245 -
Limited
Institutional 500,000 14,351 13,016
Benchmarks Series
Limited
Lyxor/Canyon 4,875,000 139,929 27,375
Capital Arbitrage
Fund, Ltd.
Lyxor/Canyon Value 2,500,000 71,758 35,818
Realization Fund,
Ltd.
The Canyon Value 39,130,000 1,123,167 304,075
Realization Fund
(Cayman), Ltd.
Total US$163,000,000 4,678,665 617,751
UAL stated that the information concerning the Selling
Securityholders may change from time to time. Any changed
information will be set forth in prospectus supplements or
amendments from time to time, if required.
The Selling Securityholder's notes are assumed at a conversion
rate of 28.7035 shares of UAL's Common Stock per $1,000
principal amount of the notes and a cash payment in lieu of any
fractional shares.
The first supplement to the Prospectus is available for free at:
http://ResearchArchives.com/t/s?1fcc
The second supplement to the Prospectus is available for free
at:
http://ResearchArchives.com/t/s?1fcd
About UAL Corp.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest
air carrier. The company filed for chapter 11 protection on
Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman,
Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis,
represented the Debtors in their restructuring efforts. Fruman
Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented
the Official Committee of Unsecured Creditors before the
Committee was dissolved when the Debtors emerged from
Bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended
Plan on Jan. 20, 2006. The company emerged from bankruptcy
protection on Feb. 1, 2006. At Dec. 31, 2006, the company's
balance sheet showed total assets of US$25,369,000,000
and total liabilities of US$23,221,000,000.
The airline flies to Brazil, Korea and Germany.
* * *
Fitch Ratings this month affirmed the Issuer Default Ratings of
UAL Corp. and its principal operating subsidiary United
Airlines, Inc. at 'B-'.
Moody's Investors Service assigned ratings in July 2006 to
United Air Lines Inc.'s Pass Through Trust Certificates, Series
2000-1: Ba3 rating to US$233,244,336 Class A-1 Certificates; Ba3
rating to US$324,913,300 Class A-2 Certificates; and B3 rating
to US$186,368,450 Class B Certificates.
===============
M A L A Y S I A
===============
AMSTEEL CORP: Earns MYR29.48 Million in Quarter Ended March 31
--------------------------------------------------------------
Amsteel Corp Bhd posted a net profit of MYR29.48 million on
MYR87.93 million of revenues in the third quarter ended
March 31, 2007, compared with a net profit of MYR13.95 million
on MYR109.75 million of revenues in the same period in 2006.
As of March 31, 2007, the company's unaudited balance sheet
showed strained liquidity with current assets of MYR1.13 billion
available to pay MYR1.87 billion of liabilities coming due
within the next twelve months.
Amsteel Corp's balance sheet as of March 31 also showed total
assets amounting to MYR3.38 billion and total liabilities
aggregating to 3.09 billion. Shareholders' equity in the
company totaled MYR284.04 million.
Full text-copies of the company's financial report for the
quarter ended March 31, 2007, can be viewed for free at:
http://bankrupt.com/misc/amsteel-3q-results.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation
Berhad is involved in the provision of plantation management,
property development, management and contractor; hotel operation
and food court. The Company is also involved in transportation
and logistic services, department stores, nominee services,
trading securities, manufacture and sale of tools, dies, tyres,
rubber compound, light trucks and buses, financial management;
distributes steel products, develops real estate property;
cultivation of rubber and oil palm, golf and country club, sale
and distribute Suzuki motorcycles, beer brewing and mineral
water bottling.
As reported in the Troubled Company Reporter - Asia Pacific on
May 19, 2006, Amsteel Corporation Berhad was classified under
Bursa Malaysia Securities Berhad's Amended Practice Note 17
category. The Company was identified as an affected listed
issuer because:
-- the auditors have expressed a modified opinion with
emphasis on the Company's going concern in the Company's
latest audited financial statement for the financial year
ended June 30, 2005; and
-- the Company's consolidated shareholders' equity as of
June 30, 2005, represented 17.3% of the issued and paid-up
capital of the Company.
Pursuant to the PN17 classification, the Company is required to
submit and implement a plan to regularize its financial
condition.
PROTON HOLDINGS: Government Favors Partner Over Bailout
-------------------------------------------------------
Proton Holdings Bhd cannot expect any bailout from the Malaysian
government anytime soon, as it is still seeking a strategic
partner, Reuters says, citing Second Finance Minister Nor
Mohamed Yakcop.
The finance minister made the statement as a comment on a news
report that Proton may need a government bailout if talks to
find a partner continue to falter, the news agency relates.
The minister, however, indicated that the government is still
negotiating on possible tie-ups and said that that there was no
new deadline to complete talks. "Proton needs some
restructuring in terms of equity, technical partner etc. We
think we need a partner. At this point of time, we think that
it is advisable to have a partner," the minister told Reuters.
* * *
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.
====================
N E W Z E A L A N D
====================
AWATERE CONTRACTING: Court to Hear Wind-Up Petition on June 6
-------------------------------------------------------------
The High Court of Blenheim will hear a wind-up petition against
Awatere Contracting Ltd. on June 6, 2007, at 10:00 a.m.
The petition was filed by Accident Compensation Corporation on
April 10, 2007.
The solicitor of Accident Compensation is:
Dianne S. Lester
c/o Maude & Miller
McDonald's Building, 2nd Floor
Cobham Court
PO Box 50555, Porirua City
New Zealand
BEAN N GONE: High Court to Hear Wind-Up Petition Today
------------------------------------------------------
The High Court of Auckland will hear a wind-up petition against
Bean N Gone Ltd. today, May 24, 2007, at 10:45 a.m.
The petition was filed by the Commissioner of Inland Revenue on
Feb. 21, 2007.
The CIR's solicitor is:
Phillip Macredie
c/o Legal and Technical Services
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue
PO Box 33150, Takapuna
Auckland
New Zealand
Telephone:(09) 984 1064
Facsimile:(09) 984 3116)
GLASS EARTH: Enters Into Joint Venture With Australasia Gold
------------------------------------------------------------
Glass Earth Limited has tied up with Australasia Gold Limited
for a joint venture over two of Australasia's prospecting
permits in the Otago Region.
To facilitate exploration on Australasia's Otago gold prospects
(PP 39-266 and PP 39-329), the parties executed a Letter of
Intent. The permit areas, situated between 30 and 60kms north-
west of the 7.2moz Macraes mesothermal gold mine, are contiguous
to Glass Earth's permit holdings in the Otago Region.
Pursuant to the Letter of Intent, Glass Earth is required to:
* fund an airborne geophysical survey over parts of PP 39-
266 and PP 39-329;
* process, interpret the data and identify gold targets; and
* initiate a follow-up exploration campaign.
Glass Earth may earn a 70% equity in the project by completing
the work and will be the manager of the joint venture. The
company believes the work is an integral part of the Otago
Region survey and complements an earlier joint venture
arrangement with Aurora Minerals Limited.
Glass Earth Ltd -- http://www.glassearthlimited.com/-- and its
Subsidiaries' principal activity is the exploration for and
mining of gold deposits in New Zealand. Glass Earth has
established a large portfolio of gold prospecting and
exploration permits in New Zealand, including advanced gold
prospects in the Hauraki-Waihi area; advanced and greenfields
gold prospects at the Mamaku-Muirs Reef area between Rotorua and
Tauranga; Greenfield gold prospects in the Central Volcanic
Region between Rotorua and Taupo, and advanced and greenfields
gold prospects in the Otago mesothermal gold fields, including
priority over a 20,550km2 prospecting permit area which it
believes is prospective for Macraesstyle gold mineralisation.
All Glass Earth's business operations are owned and managed by
its New Zealand subsidiaries Glass Earth (New Zealand) Limited
and HPD New Zealand Limited. As of December 27, 2006, St Andrew
Goldfields Ltd. held approximately 50.2% interest in the
company.
Going Concern Doubt
The company is in the development stage, and has not earned
revenues to date. For the nine-month period ended Nov. 30,
2006, the company had a net loss of CDN$629,000 and accumulated
deficit of CDN$2,579,000. The company's ability to meet its
obligations and continue as a going concern, according to its
auditors, is dependent upon its ability to obtain additional
financing, the discovery, development or sale of mining reserves
and achievement of profitable operations.
HURA ENTERPRISES: Wind-Up Petition Hearing Set for May 31
---------------------------------------------------------
A petition to wind up the operations of Hura Enterprises Ltd.
will be heard before the High Court of Auckland on May 31, 2007,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the wind-up petition on
Jan. 26, 2007.
The CIR's solicitor is:
Hi Chong (Sylvia) Ko
c/o Technical and Legal Support Group
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue
PO Box 33150, Takapuna
Auckland
New Zealand
Telephone:(09) 984 1294
Facsimile:(09) 984 3116
INFRATIL LIMITED: Net Income Soars to NZ$46.7 Million in FY2007
---------------------------------------------------------------
Infratil Limited's net income for the year ended March 31, 2007,
soared to NZ$46.69 million, more than three times the NZ$13.40-
million profit recorded in the prior fiscal year.
The company's revenues more than doubled to NZ$700.83 million in
FY2007 from the NZ$301.01 million in FY2006. Earnings before
interest, tax, depreciation, amortisation, realisations and
provisions increased 87% to NZ$145.24 million.
Net interest expense, however, jumped to NZ$75.31 million in FY
2006 from the previous year's NZ$39.6 million, hence the little
improvement in operating profit -- NZ$13.83 million in FY2006 to
NZ$16.11 million in FY2007.
What made the bottom line swell in FY2007 is the company's
booking of realizations and provisions totaling NZ$38.87
million, compared to last year's NZ$239,000. According to the
company, the realisations and provisions account comprised the:
* NZ$38.4 million gain on the sale of Port of Tauranga
shares;
* NZ$4.7 million impairment provisions; and
* NZ$5.2 million gain from the purchase and sale of
TrustPower shares.
Wellington, New Zealand-based Infratil Limited --
http://www.infratil.com/-- is an infrastructure investor. The
company, along with its subsidiaries, operates in four
industries: investment in infrastructure and utility companies,
airport, transportation and energy operations. The airport
operations comprise the revenue and expenses associated with
Infratil Limited's investments in Wellington International
Airport Limited and Infratil Airports Europe Limited;
transportation comprises the businesses of New Zealand Bus
Limited and New Zealand Bus Finance Limited and subsidiaries,
which was acquired by the company on November 30, 2005, and the
energy operations relate to Victoria Electricity Pty Limited and
Infratil Energy Australia Pty Limited. On December 5, 2005,
Infratil Limited acquired a 90% interest in Flughafen Lubeck
GmbH (Lubeck Airport). In December 2006, Alliant Energy Corp.
sold its ownership interest in Alliant Energy New Zealand
Limited to the company.
The Troubled Company Reporter - Asia Pacific, on May 22, 2007,
listed Infratil Ltd.'s 8.500% bond with a November 15, 2015
maturity date as distressed.
LOGAN O LEOGHAIN: Names Bruce Douglas Montgomery as Liquidator
--------------------------------------------------------------
Bruce Douglas Montgomery was appointed as the liquidator of
Logan O Leoghain Ltd. on April 26, 2007.
The company entered liquidation proceedings on April 30, 2007.
The Liquidator can be reached at:
Bruce Montgomery
PO Box 75624, Manurewa
New Zealand
Telephone:(09) 266 8763
Facsimile:(09) 266 8761
OCTAVE PROPERTIES: Commences Liquidation Proceedings
----------------------------------------------------
Octave Properties Ltd. commenced liquidation proceedings on
May 3, 2007.
Vivian Judith Fatupaito and Colin Thomas McCloy were appointed
as liquidators.
The Liquidators can be reached at:
Vivian Judith Fatupaito
Colin Thomas McCloy
PricewaterhouseCoopers
PricewaterhouseCoopers Tower, Level 8
188 Quay Street,
Auckland
New Zealand
Telephone:(09) 355 8000
Facsimile:(09) 355 8013
PRIME PROPERTY: Appoints Rhys Michael Barlow as Liquidator
----------------------------------------------------------
The shareholders of Prime Property Management Ltd. appointed
Rhys Michael Barlow as the company's liquidator on April 30,
2007.
Mr. Barlow can be reached at:
Rhys Michael Barlow
c/o BDO Spicers, Chartered Accountants
BDO House, Level 2
99-105 Customhouse Quay
PO Box 10340, Wellington
New Zealand
Telephone:(04) 472 5850
Facsimile:(04) 473 3582
e-mail: rhys.barlow@wlg.bdospicers.com
SCOTTISH CONSULTING: Fixes June 5 as Last Day to Prove Claims
-------------------------------------------------------------
Scottish Consulting and Investments Ltd. requires its creditors
to file their proofs of debt by June 5, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's dividend distribution.
The company's liquidator is:
Robert Anthony Elms
c/o Martin Jarvie PKF
PO Box 1208, Wellington
New Zealand
SECURACOM SECURITY: Subject to RingGrip's Wind-Up Petition
----------------------------------------------------------
RingGrip (N.Z) Pty Limited filed a wind-up petition against
Securacom Security Ltd. on March 12, 2007.
The petition will be heard before the High Court of Auckland on
June 7, 2007, at 10:45 a.m.
RingGrip's solicitor is:
M. R. Bos
c/o DLA Phillips Fox
209 Queen Street
Auckland
New Zealand
WILLIS ROOFING: Faces CIR's Wind-Up Petition
--------------------------------------------
On March 16, 2007, the Commissioner of Inland Revenue filed a
wind-up petition against Willis Roofing Ltd.
The petition will be heard before the High Court of Auckland on
June 14, 2007, at 10:00 a.m.
The CIR's solicitor is:
Kay S. Morgan
c/o Inland Revenue Department
1 Bryce Street
Hamilton
New Zealand
WTT LIMITED: Taps Fatupaito and McCloy as Liquidators
-----------------------------------------------------
On May 3, 2007, Vivian Judith Fatupaito and Colin Thomas McCloy
were appointed as liquidators of WTT Limited.
The company commenced liquidation proceedings on that day.
The Liquidators can be reached at:
Vivian Judith Fatupaito
Colin Thomas McCloy
PricewaterhouseCoopers
PricewaterhouseCoopers Tower, Level 8
188 Quay Street,
Auckland
New Zealand
Telephone:(09) 355 8000
Facsimile:(09) 355 8013
=====================
P H I L I P P I N E S
=====================
ATLAS CONSOLIDATED: Earns PHP47 Million in 2006
-----------------------------------------------
Atlas Consolidated Mining and Development Corp. reported a
consolidated net income of PHP47 million for the year ended
December 31, 2006, a decrease of 45% from the PHP85 million net
income reported in 2005.
As of December 31, 2006, total liabilities of PHP3.81 billion
exceeded total assets of PHP2.99 billion, resulting in a capital
deficiency of PHP820.5 million. Total current liabilities of
PHP1.91 billion as of December 31, 2006, also exceeded total
current assets of PHP305.22 million.
For the year ended December 31, 2006, the company generated
consolidated revenues of PHP4 million, a PHP2 million decrease
from the PHP6 million earned in 2005.
The Company's consolidated operating expenses increased by 37%
to PHP389 million in 2006, from the PHP283 million incurred in
2005. Consolidated other income increased from PHP24 million in
2005 to PHP60 million.
Other receivables amounted PHP9 million as of December 31, 2006,
an increase of PHP7 million from the PHP2 million reported in
December 31, 2005.
Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano-
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company. The company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products. The
company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located. The Cebu copper
mine ceased operations in 1994. Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite. The closure has brought huge
losses to the mining firm.
In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.
The company's auditor, Jaime F. Del Rosario, of Sycip Gorres
Velayo, raised substantial doubt on the company's ability to
continue as a going concern after auditing the company's
financial statements for the year ended Dec. 31, 2005, which
showed capital deficiency of PHP3.035 billion.
ATLAS CONSOLIDATED: Annual Stockholders' Meeting Set for July 18
----------------------------------------------------------------
Atlas Consolidated Mining and Development Corp.'s annual general
stockholders' meeting for 2007 will be held on July 18, 2007 at
the Dusit Hotel in Makati City, Metro Manila.
These matters will be taken up during the meeting:
* Election of Directors;
* Approval of 2006 Audited Financial Statements;
* Rendition of Management's Report to Stockholders;
* Approval of the Minutes of the Special Stockholders'
meeting held February 9;
* Ratification of Acts and Resolutions of the Board of
Directors and Management;
* Appointment of External Auditors;
* Approval of the Comprehensive Stock Option Plan for
Directors, Officers and Employees;
* Approval of the Amendment of Article 3 of the Articles
of Incorporation to change the address of principal office
from the Municipality of Makati to Mandaluyong City; and
* Approval of the amendment to Article 1 Section 1 of the
By-Laws to change venue for the annual stockholders'
meeting from Makati to Mandaluyong City.
Only stockholders of record as of June 5, 2007, will be entitled
to attend and be eligible to vote at this meeting.
About Atlas Consolidated
Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano-
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company. The company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products. The
company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located. The Cebu copper
mine ceased operations in 1994. Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite. The closure has brought huge
losses to the mining firm.
In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.
The company's auditor, Jaime F. Del Rosario, of Sycip Gorres
Velayo, raised substantial doubt on the company's ability to
continue as a going concern after auditing the company's
financial statements for the year ended Dec. 31, 2005, which
showed capital deficiency of PHP3.035 billion. As of Dec. 31,
2006, total liabilities of PHP3.81 billion exceeded total assets
of PHP2.99 billion, resulting in a capital deficiency of
PHP820.5 million.
BENPRES HOLDINGS: Annual Shareholders' Meeting Set for June 14
--------------------------------------------------------------
Benpres Holdings Corp.'s annual stockholders' meeting for 2007
will be held on June 14, 2007, at 8:30 a.m. at the Meralco
Theater, Meralco Avenue, Ortigas Center, in Pasig City.
Only stockholders of record as of May 27, 2007, will be eligible
to attend and vote during the meeting.
The meeting will take up these matters:
* Call to Order
* Proof of Service to Notice
* Certification of Quorum
* Approval of minutes of June 9, 2006 annual shareholders'
meeting
* President's Report
* Approval of the Audited Financial Statements
* Election of Directors for 2007
* Appointment of External Auditor
* Other business
* Adjournment
Deadline for proxies is June 4, 2007.
Headquartered in Pasig City Philippines, Benpres Holdings
Corporation -- http://www.benpres-holdings.com/-- is a 56.22%-
owned subsidiary of Lopez, Inc. Both entities were incorporated
in the Philippines. Benpres Holdings and its subsidiaries are
mainly involved in investment holdings, broadcasting and
entertainment, and water distribution. The company's associates
are involved in telecommunications, power generation and
distribution, cable television, real estate development and
infrastructure.
Going Concern Doubt
After reviewing the company's financials for the year 2006, Ma.
Vivian C. Ruiz at Sycip Gorres Velayo and Co. raised significant
doubt on the company's ability to continue as a going concern,
which depends on the success of the company's Balance Sheet
Management Plan.
EXPORT & INDUSTRY BANK: Posts PHP80MM Net Loss in 1st Qtr. 2007
---------------------------------------------------------------
Export and Industry Bank reported an PHP80 million net loss for
the three months ended March 31, 2007, a decrease of 86% from
the PHP621 million reported in the same period in 2006.
Net revenue from funds amounted to PHP12 million in the January-
March 2007 period, compared to negative PHP288 million in the
first quarter of 2006. Operating expenses in the first quarter
of 2007 amounted to PHP298 million, which is 27% lower than the
PHP411 million reported for the same period in 2006.
As of March 31, 2007, the Bank's total assets were PHP35
billion, total liabilities were PHP29.9 billion and total equity
were PHP5.1 billion.
Headquartered in Makati City, Manila, Export and Industry Bank
-- http://exportbank.com.ph/-- has 50 branches and has revived
former Urban Bank unit under new names. Its principal activity
is the provision of commercial banking services such as deposit
taking, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange and trust services.
The bank is saddled with the PHP10 billion non-performing assets
it inherited from Urban Bank when the two banks merged in 2002.
The TCR-AP reported on May 10, 2006, that Exportbank is
scheduled to complete a rehabilitation program, which was
proposed in order to reverse a 2005 net loss of PHP1.66 million,
by 2007.
Under an agreement dated December 29, 2005, the Philippine
Deposit Insurance Corp. extends annual financial aid of PHP600
million to the bank.
PRIMETOWN PROPERTY: Reports PHP809 Million Stockholders' Deficit
----------------------------------------------------------------
Primetown Property Group Inc. posted a capital deficiency of
PHP809.77 million as of March 31, 2007, as compared to an
PHP808.52 million deficit at December 31, 2006.
The group also incurred a net loss of PHP1.2 million for the
quarter ended March 31, 2007, as its operating expenses of
PHP1.37 million exceeded its total revenues of PHP133,000.
Makati City-based Primetown Property Group, Inc. is engaged in
the buying, development and selling of real estate. The company
has completed and launched several residential and commercial
development projects within the Maakti Central Business
District, Fort Bonifacio, Cebu City, Tagaytay City and Boracay
Island, including condominium-hotel projects.
The Troubled Company Reporter - Asia Pacific reported that the
company reported a net loss of PHP20.44 million for the year
ending Dec. 31, 2006, only a third of the previous year's net
loss of PHP69.71 million.
Going Concern Doubt
F.B. Santos at San Jose Verde Santos and Associates raised
significant doubt on the company's ability to continue as a
going concern citing the company's recurring losses since 1998
and capital deficiency.
UNIWIDE HOLDINGS: Posts PHP37.88 Million Net Loss in 1Q 2007
------------------------------------------------------------
Uniwide Holdings Inc. posted a net loss of PHP37.88 million for
the three months ended March 31, 2007, 33.9% higher than the
PHP28.29 million net loss posted in the same period in 2006.
Total revenues for the quarter ended March 31, 2007, amounted to
PHP37.98 million, while operating expenses incurred totaled
PHP69.99 million. Total loss from operations amounted to
PHP37.98 million.
As of March 31, 2007, total liabilities of PHP5 billion exceeded
total assets of PHP3.07 billion, giving rise to a capital
deficiency of PHP1.92 billion.
Headquartered in Manila, Universal Robina Corporation --
http://www.urc.com.ph/-- the Philippines and listed on the
Philippines Stock Exchange, is one of the largest branded
consumer food companies in the country. It also has production
facilities in Thailand, Malaysia, China, Indonesia and Vietnam
and sales/marketing offices in HK and Singapore. URC is also
engaged in Agro-industrial products, sugar milling, flour
milling and the packaging industry in the Philippines.
The Troubled Company Reporter - Asia Pacific reported on
November 13, 2006, that Moody's Investors Service upgraded its
local currency corporate family rating for Universal Robina
Corporation to Ba2 from Ba3. At the same time, Moody's affirmed
the Ba3 foreign currency rating for the senior unsecured bonds
issued by URC Philippines Ltd and guaranteed by URC. The Ba3
bond rating is in line with the foreign currency country ceiling
for the Philippines. The ratings outlook is stable.
The company's long-term issuer credit carries S&P's BB rating.
* OFW Remittances Reach US$3.5 Billion in First Quarter 2007
------------------------------------------------------------
Remittances by Overseas Filipino Workers amounted US$3.5 billion
for the first three months of 2007, the Philippine Information
Agency said. This amount is 24% higher than what was reported
in the same period last year.
The Bangko Sentral ng Pilipinas said the increased OFW
remittances were due mainly to the innovative remittance schemes
offered by financial institutions and the enhanced links
established with their foreign counterparts.
In March alone, money sent home by Filipinos working abroad
reached US$1.3 billion, up 26.4 percent from the same month a
year ago. OFW remittances have surpassed the $1-billion mark
for the ninth consecutive month during the period ending March.
These dollar remittances have helped to sustain the economic
gains being achieved by the country as a result of the tough
economic reforms adopted by the government including the
implementation of the Expanded Value-Added Tax Law.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2007, Standard & Poor's Ratings Services affirmed its
'BB-/B' foreign currency and 'BB+/B' local currency sovereign
credit ratings on the Philippines, with a stable outlook.
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Nov. 3, 2006, the TCR-AP reported that Moody's Investors
Service changed to stable from negative the outlook on the
Philippines' key ratings due to the progress made in reining in
fiscal deficits in 2006 and an easing in dependence on external
financing. The affected ratings include the B1 long-term
government foreign- and local-currency ratings, the B1 foreign-
currency bank deposit ceiling and Ba3 foreign currency country
ceiling, the TCR-AP noted.
* Peso Breaks PHP45/US$1 Threshold, Stocks Surge 1.1%
-----------------------------------------------------
The Philippine currency broke into the PHP45 per US$1 dollar
threshold Tuesday, while Philippine share prices rose 1.1% and
the key index broke 3,500 points Tuesday, the Manila Times
reports.
Increasing investments and funds sent home by overseas Filipino
workers buoyed the peso to rise against the dollar, the article
relates. According to the newspaper, stock market dealers said
the domestic economy might improve through the whole year as
investors were upbeat about its outlook which offset the
negative sentiment caused by higher oil prices and mixed
performance on Wall Street.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2007, Standard & Poor's Ratings Services affirmed its
'BB-/B' foreign currency and 'BB+/B' local currency sovereign
credit ratings on the Philippines, with a stable outlook.
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Nov. 3, 2006, the TCR-AP reported that Moody's Investors
Service changed to stable from negative the outlook on the
Philippines' key ratings due to the progress made in reining in
fiscal deficits in 2006 and an easing in dependence on external
financing. The affected ratings include the B1 long-term
government foreign- and local-currency ratings, the B1 foreign-
currency bank deposit ceiling and Ba3 foreign currency country
ceiling, the TCR-AP noted.
=================
S I N G A P O R E
=================
ART CITY: Creditors' Proofs of Debt Due by June 18
--------------------------------------------------
Art City Design Enterprise Pte Ltd, which is in members'
voluntary liquidation, requires its creditors to file their
proofs of debt by June 18, 2007.
Creditors who cannot file their proofs of debt by the due date
will be excluded from the company's dividend distribution.
The company's liquidators are:
Chia Soo Hien
Leow Quek Shiong
c/o BDO Raffles
5 Shenton Way
#07-01 UIC Building
Singapore 068808
CHEMTURA CORP: Amends & Restates Asset Purchase Agreement
---------------------------------------------------------
Chemtura Corporation has signed an amended and restated asset
purchase agreement to sell:
-- its EPDM business;
-- the Celogen(R) foaming agents associated with the rubber
industry; and
-- its Geismar, Louisiana facility to Lion Copolymer, LLC,
an affiliate of Lion Chemical Capital, LLC.
The transaction, which is expected to close by the end of the
second quarter, is subject to certain conditions, including
regulatory approvals and financing. Expected proceeds from the
transaction remain substantially the same as previously
reported.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products. The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service lowered Chemtura
Corporation's ratings:
-- Corporate Family Rating: Ba2 from Ba1
-- Senior notes, US$500 million due 2016: Ba2 from Ba1;
LGD4 (53%)
-- Senior Unsecured Notes, US$150 million due 2026: Ba2 from
Ba1; LGD4 (53%)
-- Senior Unsecured Notes, US$400 million due 2009: Ba2 from
Ba1; LGD4 (53%)
The Troubled Company Reporter - Asia Pacific reported on
Oct. 24, 2006, that Standard & Poor's Ratings Services revised
Chemtura's outlook to stable from positive and affirmed the
existing 'BB+' corporate credit and senior unsecured debt
ratings.
DIGI BUILDER: Creditors' Meeting Set for May 25
-----------------------------------------------
The creditors of Digi Builder Pte Ltd will meet on May 25, 2007,
at 2:30 p.m., to decide whether to approve the liquidator's bill
of costs.
The company's liquidator is:
David Kung Seah Lim
c/o 336 Smith Street #05-310
New Bridge Centre
Singapore 050336
EMTEC MAGNETICS: Pays Second and Final Dividend
-----------------------------------------------
Emtec Magnetics Singapore Pte Ltd, which is in creditors'
voluntary liquidation, paid the second and final dividend to its
creditors on May 18, 2007.
The company paid 4.703 cents to a dollar to all received claims.
The company's liquidator is:
Ernst & Young
c/o One Raffles Quay
North Tower, 18 Floor
Singapore 048584
FAIRFAX FINANCIAL: A.M. Best Says Outlook on Ratings "Stable"
-------------------------------------------------------------
A.M. Best Co. has assigned a senior debt rating of "bbb-" to
Fairfax Financial Holdings Limited's forthcoming US$464.2
million 7.75% senior unsecured notes due 2022.
Additionally, A.M. Best has assigned preliminary debt ratings of
"bbb-"senior unsecured, "bb+" subordinated and "bb" preferred
stock to Fairfax's US$750 million universal shelf. The new
notes will be a drawdown under this shelf.
The outlook for all ratings is stable.
The notes will be used to purchase the remaining amount
outstanding of Fairfax's 7.75% senior notes, due 2012, which is
pursuant to the previously announced tender offer to purchase
these existing notes. The new notes will be callable in 2012,
providing additional flexibility as the existing notes are not
callable prior to their maturity in 2012. Fairfax's senior debt
ratings were upgraded to "bbb-" on May 4, 2007.
The rating reflects significant holding company cash, which
amounted to US$767 million at year-end 2006 and is expected to
remain fairly level over the next several years as annual cash
inflows are expected to evenly cover cash expenses. Liquidity
is at a level that should allow Fairfax the ability to cover any
unforeseen negativity and freedom from reliance on the capital
markets. This comfort causes a trade-off in that repayment of
debt and reduction of leverage will be at a slower than
anticipated pace. Fairfax's financial leverage -- while still
somewhat high -- has declined to more reasonable levels at
December 31, 2006, with debt to capital at 35% (US GAAP) --
excluding the debt of Odyssey Re Holdings Corp. (Stamford, CT),
which is capable of servicing its own debt obligations.
Fairfax will continue to reduce its debt through open market
purchases but has structured its debt maturities such that only
US$62 million is required prior to 2012. Should this tender
offer be fully completed, only US$62 million will be required
prior to 2017.
Founded in 1899, A.M. Best Company is a full-service credit
rating organization dedicated to serving the financial services
industries, including the banking and insurance sectors.
About Fairfax Financial
Based in Toronto, Ontario, Fairfax Financial Holdings Ltd.
(TSX: FFH;NYSE: FFH) -- http://www.fairfax.ca/-- is a financial
services holding company which, through its subsidiaries, is
engaged in property and casualty insurance and reinsurance,
investment management and insurance claims management.
Fairfax Asia comprises the company's Asian holdings and
operations: Singapore-based First Capital Insurance Limited,
Hong Kong-based Falcon Insurance Limited and a 26.0% equity-
accounted interest in Mumbai-based ICICI Lombard General
Insurance Company Limited, India's largest (by market share)
private general insurer (the remaining 74.0% interest is held by
ICICI Bank, India's second largest commercial bank).
K.P. CHEMICALS: Members Agree to Liquidate Business
---------------------------------------------------
At an extraordinary general meeting held on May 16, 2007, the
members of K.P. Chemicals Private Limited agreed to liquidate
the company's business and appointed Chia Lay Beng as the
liquidator.
Madame Chia requires the company's creditors to file their
proofs of debt by June 18, 2007.
The Liquidator can be reached at:
Chia Lay Beng
1 Scotts Road #21-07/08/09, Shaw Centre
Singapore 228208
PETROLEO BRASILEIRO: Board Authorizes Contract with Pride Mexico
----------------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro S.A.'s board of
directors has approved a five-year contract for Pride
International, Inc.'s semi-submersible rig Pride Mexico for
drilling operations offshore Brazil. The contract, which is
subject to final execution, is expected to commence during the
second quarter 2008, after an estimated 270-day shipyard program
and subsequent mobilization from the U.S. Gulf of Mexico to
Brazil. Revenues that could be generated over the five-year
contract, inclusive of a performance bonus opportunity of up to
15%, total approximately US$482 million. The estimate excludes
revenues for mobilization, demobilization and customer
reimbursables. The contract also provides for an operating cost
escalation provision.
The Pride Mexico is a conventionally moored semi-submersible rig
currently equipped to operate in water depths of up to 1,100
feet. The rig recently completed a three-year contract offshore
Mexico and is currently mobilizing to a shipyard in Galveston,
Texas. The shipyard program includes a previously planned
regulatory survey and maintenance, upgrade of the rig's water
depth capability to 2,300 feet and modifications to the rig's
mooring system and crew quarters. The total expected capital
expenditure associated with the shipyard project is
approximately US$120 million, inclusive of the previously
planned expenditures.
"The five-year contract for the Pride Mexico further
demonstrates the strong business fundamentals associated with
the floating rig market segment," noted Pride International
President and Chief Executive Officer Louis A. Raspino.
"Following the relocation of this rig, the company will have an
industry-leading seven semi-submersible rigs operating off the
coast of Brazil, expected to be one of the industry's strongest
regions for floating rigs for many years to come. The upgrade
of the Pride Mexico demonstrates our willingness to
opportunistically enhance the capabilities of our fleet at
attractive terms."
Pride International also disclosed that its 2007 capital
expenditure budget has been revised to US$470 million, up from
the previously stated US$400 million.
About Pride International
Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 277 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 16 tender-assisted, barge and platform rigs,
and 214 land rigs.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's Investors Service.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
WONDERBAR SINGAPORE: Wind-Up Petition Hearing Set for June 29
-------------------------------------------------------------
On May 7, 2007, K C Dat Freight Solutions Pte Ltd filed a
petition to wind up the operations of Wonderbar Singapore Pte
Ltd.
The petition will be heard before the High Court of Singapore on
June 29, 2007, at 10:00 a.m.
The solicitors of K C Dat are:
David Nayar And Vardan
c/o 24B(2) Temple Street
Singapore 058569
===============
T H A I L A N D
===============
CIRCUIT ELECTRONICS: SET to Move Stocks to Non-Performing Group
---------------------------------------------------------------
The Stock Exchange of Thailand will remove Circuit Electronic
Industries PCL from the Companies Under Rehabilitation sector
and transfer them to the Non-Performing Group sector on June 1,
2007.
The company's securities will remain in the NPG sector from June
1 forward until it resolves the issues of its delisting, after
which it can apply for transfer to the Normal sector. In the
NPG sector, the company is required to comply with the SET's
requirements for a listed company. However, its securities
remain delisted from the trading board.
Headquartered in Amphoe Uthai Ayutthya, Thailand, Circuit
Electronics Public Co. Limited -- http://www.cei.co.th/--
manufactures and exports various integrated circuit and chip on
board for many kinds of electronic equipment such as mobile
phone, computer, automobile assembly, household electronic
equipment and others. The group operates in the United States
of America, Europe and Asia.
Going Concern Doubt
On April 25, 2006, Sukanya Sutheeprasert, the company's auditor,
raised a significant doubt on the company's ability to continue
as a going concern. She said that the company incurred a net
loss from operations for the year ended on December 31, 2005
amounting approximately THB1.65 billion and as at that date the
company's total liabilities exceeded total assets by THB2.66
billion and is currently awaiting decision from the Central
Bankruptcy Court with regards to its rehabilitation plan. She
added that the ability of the company to continue as a going
concern depends on the success of the repayments according to
the company's Rehabilitation Plan.
As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 12, 2006, Circuit Electronics Industries Public Co Ltd
posted a THB8.052-million net loss for the first half ended
June 30, 2006, compared with the THB29.584-million net profit
posted in the same period last year. Circuit's consolidated
balance sheet as of June 30, 2006, showed total liabilities of
THB3.486 billion compared to total assets of THB821.478 million,
resulting in a shareholders' deficit of THB2.665 billion.
DAIMLERCHRYSLER: Hopes to Reduce Debt After Chrysler Sale Closes
----------------------------------------------------------------
DaimlerChrysler AG will use the repayment of inter-company loans
to significantly shrink its debt once the sale of U.S. arm
Chrysler Group closes, Chief Financial Officer Bodo Uebber told
German newspaper Boersen-Zeitung in an interview, Reuters
reports.
"Based on the favorable maturity structure for bonds, bank loans
and commercial paper, Daimler will reduce the debt that is no
longer needed to around EUR10 billion by September 2007," he was
quoted as saying. "In addition, bonds that mature in the fourth
quarter of 2007 and the first quarter of 2008 will not be
replaced. Then Daimler will have no more excess debt on its
books by the second quarter of 2008." Mr. Uebber further said
that the company would not issue bonds or commercial paper in
future quarters, Reuters notes.
No Acquisitions for Mercedes-Benz
Meanwhile, Daimler has decided to forgo all acquisitions for its
luxury brand Mercedes-Benz, emulating the go-it-alone strategy
of rival BMW after it sold off Rover, Reuters relates. Chief
Executive Dieter Zetsche told German Sunday newspaper Welt am
Sonntag that he has not recognized any acquisition target that
could strengthen Mercedes. He sees little to gain from trying
to diversify risks by balancing its brand portfolio with another
leading marque, Reuters suggests.
Chrysler A Drag
Commenting on the Chrysler sale, Mr. Zetsche was quoted by Times
Online as saying: "We have realized the synergies between
Mercedes and Chrysler, and the additional opportunities for
cooperation between two businesses that operate in distinctly
different market segments, are limited. In addition, the
extreme volatility and price pressure in Chrysler's core
American market limit Daimler Chrysler's overall profitability
and the value of our shares."
On the other hand, Mr. Zetsche said that DaimlerChrysler's
maintaining a stake in Chrysler helped get Ron Gettelfinger, the
president of the United Automobile Workers, to support the sale
to Cerberus Capital Management LP, Bloomberg News states, citing
a New York Times report. He added that a Chrysler sale was
necessary because, even if the U.S. division reaches a possible
profit margin of 5 percent, the unit would still "drag down" the
rest of the company.
Stock Price Increase Projected
Concurrently, Barron's magazine claims that Daimler's stock may
continue the rise that began last year, freed from the burden of
Chrysler, and could hit US$100 or more in a year, Reuters says.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
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.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DAIMLERCHRYSLER AG: Sells 50% stake in China's Yaxing Benz Ltd.
---------------------------------------------------------------
DaimlerChrysler AG has sold its entire 50% stake in Chinese bus
maker Yaxing Benz Ltd. for an undisclosed sum, paving the way
for the German automaker's plan to set up a truck-manufacturing
joint venture in China, the Wall Street Journal reports.
The transfer of the company's stake in the 50-50-owned bus joint
venture was concluded in March 2007, WSJ relates, quoting
DaimlerChrysler (China) Ltd. spokesman Trevor C. Hale.
Jiangsu Yaxing Motor & Coach Group has become the sole
shareholder of Yaxing Benz under the agreement. Mr. Hale noted
that the share transfer "will allow shareholders [of Yaxing
Benz] to pursue additional business opportunities" but he did
not elaborate on the matter.
DaimlerChrysler's exit from one of its two commercial-vehicle
ventures in China, Yaxing Benz, effectively clears regulatory
hurdles to its planned 50-50-truck joint venture with Beijing-
based Beiqi Foton Motor Co. The proposed venture with Beiqi
Foton could help the German carmaker gain a license to make
Mercedes-Benz trucks in China, WSJ suggests.
Chinese laws currently limit foreign automakers to a maximum of
two passenger-car joint ventures and two commercial-vehicle
joint ventures, WSJ observes. Daimler already has a
multipurpose-vehicle joint venture based in the southern
province of Fujian, called DaimlerChrysler Vans (China) Ltd.
DaimlerChrysler signed in late 2006 an agreement to invest
CNY817 million (US$106.5 million) for a 24% stake in Beiqi
Foton, China's largest light-duty truck maker by production, WSJ
states. Beiqi Foton's board of directors approved the deal in
December 2006, but it is still awaiting the Chinese government's
approval.
According to the report, DaimlerChrysler and Beiqi Foton have
signed a memorandum of understanding to "explore the possibility
and feasibility of cooperating with Foton in making heavy- and
medium-duty trucks in China," Mr. Hale added.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
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.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
HANTEX PCL: SET to Move Stocks to Non-Performing Group by June
--------------------------------------------------------------
The Stock Exchange of Thailand will remove Hantex PCL from the
Companies Under Rehabilitation sector and transfer them to the
Non-Performing Group sector on June 1, 2007.
The company's securities will remain in the NPG sector from June
1 forward until it resolves the issues of its delisting, after
which it can apply for transfer to the Normal sector. In the NPG
sector, the company is required to comply with the SET's
requirements for a listed company. However, their securities
are delisted from the trading board.
Headquartered in Bangkok, Thailand, Hantex Public Company Ltd,
reported liabilities aggregating THB552 million in 2004, versus
lesser assets totaling THB480.64 million. The company drifted
further to being insolvent in 2005, with THB608 million in
liabilities -- almost double the THB319.86 million in assets
reported.
The company's stocks are currently under Stock Exchange of
Thailand's SP (suspension), NP (notice pending), NC (non
compliance) signs.
* Notice Pending - The issuer failed to submit a quarterly
or annual financial statement to the SET by the specified
time.
* Suspension - Trading in the security is being suspended
for more than one trading session.
* Non-Compliance - The securities of a listed company that
may be delisted.
Going Concern Doubt
On June 16, 2006, Chantra Wongsri-Udomporn of Dharmniti Auditing
Company Limited, the company's independent auditor, raised
significant doubt on the company's ability to continue as a
going concern, citing these reasons:
* The company has encountered gross losses since 1998 to
2005.
* As of December 31, 2005, and 2004, the company's current
liabilities exceeded its current assets in the amount
THB628.70 million and THB490.62 million, respectively.
* The company's total liabilities exceeded its total assets
THB323.35 million and THB72.50 million, respectively.
* The company has been suffering on retained loss
THB1.21 billion and THB1.03 billion, net loss for the years
ended December 31, 2005, and 2004 in the amount
THB183.51 million and THB195.85 million, respectively.
* Other circumstances, such as:
- The company defaulted repayment in accordance with the
certain debt restructuring contract amounting to
THB420.22 million with 3 financial institutions,
including inability to achieve in negotiate of the debt
re-restructuring agreement with the financial
institutions.
- The company also defaulted with another minor certain
creditors such as the Provincial Electricity Authority,
Natural and Resource Development, spare part, raw
material, labor, security, etc. However, the company has
a scheme to raise the money from the capital increase
amounting to THB125 million to solve its significant
liquidity problem.
The auditor also adds that the company has been facing a
significant liquidity problem for several years.
KASIKORN BANK: Earns THB3.88 Million in 1st Quarter 2007
--------------------------------------------------------
Kasikorn Bank PCL posted a THB3.88 billion consolidated net
income in its unaudited financial statements for the quarter
ended March 31, 2007. This is a 7.2% increase from the THB3.62
billion posted in the same period in 2006.
As of March 31, 2007, the Bank had THB942.74 million in total
assets and THB848.78 million in total liabilities resulting in a
shareholders equity of THB93.97 million.
The company mainly attributed the increase in net income to an
increase in non-interest income totaling THB250 million, or
6.33%, following higher gains on investments and on exchange.
Non-interest expense also dropped by THB1.27 billion, or 16.3%,
because in the previous quarter the Bank reported increasing
expenses related to promotional activities aligned with
rising business volume, public-relations advertising, strategic
programs, as well as bonuses.
About Kasikorn Public Co. Ltd.
Kasikorn Bank Public Company Limited --
http://www.kasikornbank.com/-- otherwise known as the Thai
Farmers Bank, was established in 1945 with registered capital of
THB5 million and has been listed on the Stock Exchange of
Thailand since 1976. It is Thailand's fourth largest bank.
The bank currently carries Moody's Investors Service's bank
financial strength rating of D+, which Moody's affirmed on
May 4, 2007. The outlook is stable.
On October 24, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings affirmed the ratings of
Kasikornbank and removed them from Rating Watch Negative on
which they were placed on September 20, 2006 following the
military coup. The Outlook on their ratings is now Stable.
After the rating action, Kasikorn's ratings are:
* Individual C;
* Support 2;
NEW PLUS: SET to Move Stocks to Non-Performing Group in June
------------------------------------------------------------
The Stock Exchange of Thailand will remove New Plus Knitting PCL
from the Companies Under Rehabilitation sector and transfer them
to the Non-Performing Group sector on June 1, 2007.
The company's securities will remain in the NPG sector from
June 1 forward until it resolves the issues of its delisting,
after which it can apply for transfer to the Normal sector. In
the NPG sector, the company is required to comply with the SET's
requirements for a listed company. However, their securities
are delisted from the trading board.
New Plus Knitting Public Company Limited's principal activity is
the manufacturing and distribution of textiles and clothing for
domestic and export sale. Products include stockings, socks,
ladies underwear, ladies pajamas, shorts, pants, skirt, shirts
and dolls. The group markets its products in Thailand and other
countries in Asia, as well as in Europe, such as Ireland,
England and Germany. It operates solely in the domestic market.
New Plus currently carries the SET's NC -- Non Compliance --
sign and SP -- Suspension -- signs on its stocks.
Going Concern Doubt
Pornchai Kittipanya-ngam at Bunchikij Co., Ltd., the company's
independent auditors, raised a significant doubt on the
company's ability to continue as a going concern saying that:
* the group and the company for the year ended Dec. 31, 2006,
had a net loss of THB35,559,233 and THB30,553,336,
respectively;
* both have a total deficit THB229,948,342 and
THB274,303,768, which exceeded its share capital by
THB49,014,169 and THB93,369,595, respectively,
* both have current liabilities in excess of current assets
by THB59,456,471 and THB44,172,526, and;
* both have total liabilities in excess of total assets by
THB49,014,169 and THB93,369,595 respectively.
NEW PLUS: Posts THB325,467 Net Loss for Quarter Ended March 31
--------------------------------------------------------------
New Plus Knitting PCL incurred a net loss of THB325,467 for the
quarter ended March 31, 2007, which is 36.7% lower than the
THB514,502 net loss it posted for the same period in 2006.
In a letter submitted to the Stock Exchange of Thailand, the
company cited these reasons for the decrease of its net loss:
* a THB2.4 million or 49.21% decrease in depreciation; and
* a decrease of THB1.3 million or 15.14% in electric and
fuel expenses.
The company earned THB50.46 million in revenues for the quarter
ended March 31, 2007. Total expenses for the period totaled
THB49.13 million, while interest expenses amounted to THB1.65
million.
The company has total current assets of THB112.88 million and
total current liabilities of THB152.06 million, which shows that
it is illiquid as of March 31, 2007.
As of March 31, 2007, the company has total assets of THB269.21
million and total liabilities of THB310.22 million, resulting in
a shareholders' equity deficit of THB41.01 million.
About New Plus Knitting PCL
New Plus Knitting Public Company Limited's principal activity is
the manufacturing and distribution of textiles and clothing for
domestic and export sale. Products include stockings, socks,
ladies underwear, ladies pajamas, shorts, pants, skirt, shirts
and dolls. The group markets its products in Thailand and other
countries in Asia, as well as in Europe, such as Ireland,
England and Germany. It operates solely in the domestic market.
New Plus currently carries the Stock Exchange of Thailand's NC -
- Non Compliance -- sign and SP -- Suspension -- sign on its
stocks.
Going Concern Doubt
Pornchai Kittipanya-ngam at Bunchikij Co., Ltd., the company's
independent auditors, raised a significant doubt on the
company's ability to continue as a going concern saying that:
* the group and the company for the year ended Dec. 31, 2006,
had a net loss of THB35,559,233 and THB30,553,336,
respectively;
* both have a total deficit THB229,948,342 and
THB274,303,768, which exceeded its share capital by
THB49,014,169 and THB93,369,595, respectively,
* both have current liabilities in excess of current assets
by THB59,456,471 and THB44,172,526, and;
* both have total liabilities in excess of total assets by
THB49,014,169 and THB93,369,595 respectively.
NFC FERTILIZER: Posts THB68.3 Mil. Net Loss in 1st Quarter 2007
---------------------------------------------------------------
NFC Fertilizer PCL's incurred a net loss of THB68.37 million for
the quarter ended March 31, 2007, 32% lower than the THB101.230
million reported for the same period in 2006.
The company earned total revenues of THB78.99 million and
incurred total expenses of THB130.82 million for the January-
March 2007 period.
The revenues for the quarter ended March 31, 2007, were 90%
lower than the THB807.38 million revenues reported for the same
period in 2006. In a letter to the Stock Exchange of Thailand,
the company attributed these factors for the difference in
revenues:
* 98% decrease in revenues from the sales of fertilizer due
to the company's discontinuation of its fertilizer
production;
* 85% decrease in revenues earned from intermediate products
such as sulfuric acid and ammonia; and
* 67% decrease in revenues earned from other income.
The company's balance sheet as of March 31, 2007, showed total
current liabilities of THB409.42 million exceeding total current
assets of THB258.23 million. The balance sheet also showed
total assets of THB1.99 billion and total liabilities THB1.41
billion resulting in total shareholders' equity of THB583.007
million.
About NFC Fertilizer
Headquartered in Bangkok, NFC Fertilizer Public Company Limited
-- http://www.nfc.co.th-- produces chemical fertilizer
containing nitrogen, phosphate, and potash, under its Nation
Fertilizer brand name. Additionally, it imports and distributes
urea, ammonium sulfate, and potassium chloride fertilizers. The
company also distributes phosphoric acid and gypsum, which are
by-products of its fertilizer production.
The company is currently listed under the "Non-Performing Group"
sector of the Stock exchange of Thailand.
In April 2007, the Troubled Company Reporter - Asia Pacific
reported that Methee Ratanasrimetha at M.R. & Associates Co.,
Ltd., the company's independent auditors, raised significant
doubt on the company's ability to continue as a going concern
after auditing the company's financial statements for 2006. The
auditor noted that the company's factory has greatly
deteriorated and suffers from lack of maintenance due to
strained working capital. The company needs significant
investment funds to repair the factory.
THAI-DENMARK SWINE: SET to Move Stocks to Non-Performing Group
--------------------------------------------------------------
The Stock Exchange of Thailand will remove Thai-Denmark Swine
Breeder PCL from the Companies Under Rehabilitation sector and
transfer them to the Non-Performing Group sector on June 1,
2007.
The company's securities will remain in the NPG sector from June
1 forward until it resolves the issues of their delisting, after
which it can apply for transfer to the Normal sector. In the
NPG sector, the company is required to comply with the SET's
requirements for a listed company. However, their securities
are delisted from the trading board.
Headquartered in Bangkok, Thai-Denmark Swine Breeder Public
Company Limited is a producer and breeder of swine and
piglets. The company imports all of its parent stocks from
Denmark.
Going Concern Doubt
The Troubled Company Reporter - Asia Pacific reported that
Vilairat Rojnuckarin at the Office of DIA International
Auditing, the company's independent auditors, raised significant
doubt on the company's ability to continue as a going concern,
citing that as of December 31, 2006 and 2005, the company had
total liabilities exceeding over total assets by THB115.45
million and THB144.86 million, respectively.
Mrs. Vilairat added that on July 26, 2005, the Court ordered the
company to rehabilitate its business. On June 27, 2006, the
Central Bankruptcy Court approved the rehabilitation plan of the
Company and appointed it as the Plan Administrator. Therefore,
the company's going concern depends on the ability of the
company to accomplish the plan.
* Bank of Thailand May Cut Benchmark Interest Rate to
------------------------------------------------
The Bank of Thailand is widely expected to cut the benchmark
interest rate half a percentage point to 3.5 percent soon, and
by another half point to 3 percent at the next meeting in July,
the Associated Press reports.
In a meeting with reporters Monday, Thai Finance Minister
Chalongphob Sussangkarn refused to disclose the extent of the
decrease in interest rates.
Some economists expect a lesser rate of decrease, while some
express the necessity of continuing cuts in the country's
interest rates by the second half of 2007, the AP relates.
*********
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. 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.
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