/raid1/www/Hosts/bankrupt/TCRAP_Public/070625.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, June 25, 2007, Vol. 10, No. 124
Headlines
A U S T R A L I A
ABS DEVELOPMENT: Sets Final Meeting for July 19
BRITISH MOTOR: Supreme Court Orders Wind-Up of Operations
HOWZAT PROPERTY: Members & Creditors to Meet on July 19
HYGRADE PLASTER: Sets Final Meeting for July 19
MEDTV (AUSTRALIA): Joint Meeting Set for July 19
MITCHELL KELLY: Final Meeting Set for July 19
MKI TRADING: Members to Receive Wind-Up Report on July 19
NIPI PROPERTY: Placed Under Voluntary Liquidation
OZ DIGITAL: Members Opt to Shut Down Business
PINNOAK RESOURCES: S&P Puts Rating on Positive Watch
PLIANT CORP: To Reduce Debt through Senior Notes Refinancing
POLYPORE INT’L: Commences Tender Offer for 10-1/2% Senior Notes
WALMAR PTY: Liquidator to Present Wind-Up Report on July 23
C H I N A & H O N G K O N G
CAPITAL ACE: Members Decide to Liquidate Business
CHINA SOUTHERN: Inks Strategic Partnership with Continental Air
COMMUNICATION INTELLIGENCE: Establishes US$1MM Credit Facility
ESTERLINE TECH: Commences Consent Solicitation for 7.75% Notes
GLOBAL CROSSING: Picks Alcatel-Lucent for Maintenance Services
HONG KONG HAPPY: Enters Wind-Up Proceedings
HSBC PROPERTY: Sets Final Meeting for July 25
INTELSAT LTD: Fitch Puts Issuer Default Rating on Watch Negative
INTELSAT LTD: Moody's Puts Ratings in Review; May Downgrade
ONWARD ELECTRICAL: Annual Meeting Set for July 17
PACICO INTERNATIONAL: Sets Final Meeting for July 24
PENAR LIMITED: Requires Creditors to Prove Debts by July 24
STAR YIELD: Taps Chu Pak-Chee, Patrick as Liquidator
SUNRICH TECHNOLOGY: Creditors' Proofs of Debt Due by July 23
TCL CORP: Plans Listing of PC Unit to Raise Capital
TNK-BP HOLDING: Budgets US$1 Bln to Hike Processed Gas Output
UNIGLOBE TELECOM: Sets Final Meeting for July 25
VINCENT UNION: Members' Final Meeting Set for July 23
I N D I A
AES CORP: Shuts Down Los Angeles Unit for Maintenance
BALLY TECHNOLOGIES: Incurs US$2.7 Million Quarter Net Loss
BRITISH AIRWAYS: S&P Lifts BB+ Corp. Credit Rating to BBB-
BRITISH AIRWAYS: Confident on Future Growth After Rating Upgrade
CENVEO CORP: S&P Retains Recovery Ratings Despite Loan Add-On
DUERR AG: Moody's Upgrades Corp. Credit Rating Outlook to Stable
EUTELSAT COMMUICATIONS: Inks Pay-TV Contract with Digiturk
IMPERIAL CHEMICAL: Snubs Akzo Nobel's GBP7 Billion Approach
NOVELL INC: Unveils Real-Time Linux Enhancements & Partnerships
SITRONICS JSC: Inks US$8 Million TENNET Delivery Deal with MGTS
TATA MOTORS: To Raise US$450 Million in International Market
UTI BANK: Taps Citigroup & Goldman Sachs as Underwriters
UTI BANK: To Explore Business Opportunities With J&K Bank
VISTEON CORP: Construction Starts at New Missouri Assembly Plant
VISTEON CORP: To Close Bedford Plant; 685 Jobs Slashed
WIENERBERGER AG: Takes Control of Baggeridge Via Stake Purchase
WIENERBERGER AG: Expands Dutch Operations with Korevaar Purchase
I N D O N E S I A
BANK MANDIRI: Unit to Invest in Sharia Mutual Funds
CA INC: Buys Back 16.9-Million Common Shares
FOSTER WHEELER: Apponts Lisa Zardet Wood as VP & Controller
LIPPO KAWARACI: UBS AG Buys 905,570,540 Shares
MEDCO ENERGI: To Issue US$300 Million Worth of Bonds
J A P A N
ALITALIA SPA: MatlinPatterson Rejoins Stake Race Sans Partners
BLACKBOARD INC: Closed Sale of US$165MM Convertible Sr. Notes
CATALYST PAPER: S&P Rates Proposed US$200 Million Notes at B+
FRESENIUS MEDICAL: Plans US$500 Million Senior Notes Offering
JAPAN AIRLINES: To Cut 4,300 Jobs a Year Earlier Than Expected
KOBE STEEL: To Develop ITmk3 Process with Cleveland-Cliffs
* Bingham Expands in Japan with Addition of 22-lawyer Tokyo Firm
K O R E A
AGERE SYSTEMS: Moody’s Withdraws B1 Corporate Family Rating
KOOKMIN BANK: Opens Office in Kazakhstan
HYNIX SEMICON: Prices US$500MM Senior Unsecured Fixed Rate Bond
M A L A Y S I A
KUMPULAN BELTON: Posts MYR1.71MM Net Loss in Quarter To Mar. 31
MANGIUM INDUSTRIES: Commission Rejects Extension Request
MANGIUM INDUSTRIES: 2007 1st Quarter Net Loss Totals MYR2.87MM
MERCES HOLDINGS: Court Orders Stay on CIMB’s Wind-Up Petition
MOL.COM BERHAD: Receives Takeover Offer from AmInvestment Bank
MOL.COM BERHAD: Amends Reform Proposals After Earlier Rejection
SETEGAP BERHAD: Buyer Okays Extension to Dispose Serdang Land
SETEGAP BHD: Balance Sheet Upside Down by MYR126.5MM in March 31
N E W Z E A L A N D
HERITAGE GOLD: Schedules Annual Meeting on August 29
P H I L I P P I N E S
ACESITE: Elects Directors & Auditors for Year 2007-2008
BANKARD INC: Board Approves Change of Primary Headquarters
BANKARD INC: Elects Directors & Auditors for Year 2007
CHIQUITA BRANDS: Selling 12 Cargo Vessels for US$227 Million
CHIQUITA BRANDS: Executives Adopt Prearranged Stock Trading Plan
IPVG CORP: Annual Stockholders' Meeting Set for July 20
MANILA ELECTRIC: Denies News of Being Sued for Overcharging
PHIL BANK OF COMMS: Elects New Directors & Auditors for 2007
PHIL. LONG DISTANCE: DoCoMo Clarifies Plans to Increase Holdings
SAN MIGUEL: Confirms Reported Shutdown of Unit's HK Brewery
VITARICH CORP: Stocks Suspended Pending Settlement of Penalties
S I N G A P O R E
ASIATICA TURN: Requires Creditors to File Claims by July 12
MYHOME FURNITURE: Receiving Proofs of Debt Until June 27
OVERSEAS SHIPHOLDING: Two Underwriters to Exercise Stock Option
PETROLEO BRASILEIRO: Negotiating Oil Rig Contract with Keppel
PETROLEO BRASILEIRO: Eyes Possible Biz Opportunities in Qatar
PRIME ENERGY: Court to Hear Wind-Up Petition on June 29
RED HAT: UBS Maintains Neutral Rating on Company's Shares
SPECTRUM BRANDS: Class Action Lawsuit Dismissed
T H A I L A N D
DAIMLERCHRYSLER: Chrysler Grp., GETRAG Makes US$530MM Investment
DAIMLERCHRYSLER: Chrysler Group Eyes Sales and Dealer Expansion
FEDERAL-MOGUL: Court Extends Confirmation Hearing to July 9-10
THAI-PROPERTY: Posts PHP10.19-Mil. Net Loss for 1st Quarter 2007
THAI WAH: Elects New Directors for 2007
THAI WAH: Posts THB758.59-Million Net Income for Year 2006
- - - - - - - -
=================
A U S T R A L I A
=================
ABS DEVELOPMENT: Sets Final Meeting for July 19
-----------------------------------------------
A final meeting will be held for the members and creditors of ABS
Development Pty Ltd on July 19, 2007, at 2:00 p.m.
The members and creditors will receive at the meeting a report about the
company's wind-up proceedings and property disposal.
The company's liquidator is:
M. F. COOPER
Frasers Insolvency Advisory
Level 5, 99 Elizabeth Street
Sydney, New South Wales 2000
Australia
About ABS Development
ABS Development Pty Ltd is a distributor of durable goods. The company is
located in New South Wales, Australia.
BRITISH MOTOR: Supreme Court Orders Wind-Up of Operations
---------------------------------------------------------
On May 30, 2007, the Supreme Court of New South Wales entered an order to
wind-up the operations of British Motor Heritage Pty Limited and appointed
R. M. Sutherland as liquidator.
The Liquidator can be reached at:
R. M. Sutherland
Jirsch Sutherland
Chartered Accountants
Level 4, 55 Hunter Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9236 8333
Facsimile:(02) 9236 8334
HOWZAT PROPERTY: Members & Creditors to Meet on July 19
-------------------------------------------------------
The members and creditors of Howzat Property Services Pty Limited will
meet on July 19, 2007, at 12:00 p.m., to receive the liquidator's report
about the company's wind-up proceedings and property disposal.
The company's liquidator is:
M. F. Cooper
Frasers Insolvency Advisory
Level 5, 99 Elizabeth Street
Sydney, New South Wales 2000
Australia
About Howzat Property
Howzat Property Services Pty Ltd provides building cleaning and
maintenance services. The company is located in New South Wales,
Australia.
HYGRADE PLASTER: Sets Final Meeting for July 19
-----------------------------------------------
Hygrade Plaster Distributors Pty Limited will hold a final meeting for its
members and creditors on July 19, 2007, at 4:00 p.m.
M. F. Cooper, the company's liquidator, will give at the meeting a report
about the company's wind-up proceedings and property disposal.
The Liquidator can be reached at:
M. F. Cooper
Frasers Insolvency Advisory
Level 5, 99 Elizabeth Street
Sydney, New South Wales 2000
Australia
About Hygrade Plaster
Hygrade Plaster Distributors Pty Ltd is a distributor of gypsum products.
The company is located in New South Wales, Australia.
MEDTV (AUSTRALIA): Joint Meeting Set for July 19
------------------------------------------------
A joint meeting will be held for the members and creditors of MEDTV
(Australia) Pty Limited on July 19, 2007, at 10:00 a.m.
The members and creditors will receive at the meeting a report about the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Martin J. Green
GHK Green Krejci
Level 13, 1 Castlereagh Street
Sydney, New South Wales 2000
Australia
About MEDTV (Australia)
MEDTV (Australia) Pty Limited provides communications services. The
company is located in New South Wales, Australia.
MITCHELL KELLY: Final Meeting Set for July 19
---------------------------------------------
A final meeting will be held for the members and creditors of Mitchell
Kelly Consulting Group Pty Ltd on July 19, 2007, at 10:30 a.m.
B. R. Silvia, the company's liquidator, will give at the meeting a report
about the company's wind-up proceedings and property disposal.
The Liquidator can be reached at:
B. R. Silvia
Ferrier Hodgson
GPO Box 4114
Sydney, New South Wales 2001
Australia
Telephone:(02) 9286 9999
About Mitchell Kelly
Mitchell Kelly Consulting Group Pty Ltd provides business services. The
company is located in New South Wales, Australia.
MKI TRADING: Members to Receive Wind-Up Report on July 19
---------------------------------------------------------
The members of MKI Trading Systems Pty Limited will meet on July 19, 2007,
at 10:00 a.m., to receive a report about the company's wind-up proceedings
and property disposal.
The company's liquidator is:
D. J. F. Lombe
c/o Deloitte Touche Tohmatsu
225 George Street
Sydney, New South Wales 2000
Australia
About MKI Trading
MKI Trading Systems Pty Limited, which is also trading as Nynex, is a
distributor of prepackaged software. The company is located in New South
Wales, Australia.
NIPI PROPERTY: Placed Under Voluntary Liquidation
-------------------------------------------------
On May 30, 2007, the members and creditors of Nipi Property Maintenance
Pty Limited held a separate meeting and resolved to voluntarily liquidate
the company's business.
Ozem Kassem and Deryk Andrew were appointed as liquidators.
The Liquidators can be reached at:
Ozem Kassem and
Deryk Andrew
Cor Cordis Chartered Accountants
Level 10, 80 Clarence Street
Sydney, New South Wales
Australia
Telephone:(02) 8221 8433
Facsimile:(02) 8221 8422
About Nipi Property
Nipi Property Maintenance Pty Ltd is a special trade contractor. The
company is located in New South Wales, Australia.
OZ DIGITAL: Members Opt to Shut Down Business
---------------------------------------------
At an extraordinary general meeting held on June 5, 2007, the members of
Oz Digital Electronics Pty Limited resolved to shut down the company's
business.
Angus C. Gordon was appointed as liquidator at the creditors' meeting held
later that day.
The Liquidator can be reached at:
Angus C. Gordon
GHK Green Krejci
Level 13, 1 Castlereagh Street
Sydney, New South Wales 2000
Australia
About Oz Digital
Oz Digital Electronics Pty Limited is a distributor of electronic parts
and equipments. The company is located in New South Wales, Australia.
PINNOAK RESOURCES: S&P Puts Rating on Positive Watch
----------------------------------------------------
Standard & Poor's Ratings Services placed its 'CCC+' corporate credit
rating and other ratings on PinnOak Resources LLC on CreditWatch with
positive implications.
The rating action followed the announcement that the company has signed a
definitive agreement to be acquired by Cleveland-Cliffs, Inc. (unrated) in
a transaction valued at about US$600 million in cash and existing debt.
The transaction is expected to close within 60 days subject to regulatory
approvals.
Cannonsburg, Pennsylvania-based PinnOak operates three mines that produced
around 4 million tons of high-quality metallurgical coal in 2006.
Cleveland, Ohio-based Cleveland-Cliffs, which had US$1.9 billion in
revenues in 2006, is the largest producer of iron ore pellets in North
America and operates six iron ore mines in the U.S. and Eastern Canada.
It also has iron ore mining interests in Australia and Brazil and
coal-mining interests in Australia.
PLIANT CORP: To Reduce Debt through Senior Notes Refinancing
------------------------------------------------------------
Pliant Corporation has reached a definitive agreement to reduce its debt
by over US$30 million by refinancing its 13% Senior Subordinated Notes due
2010. The 2010 Notes, carried on Pliant's books at over US$55 million,
will be redeemed for
US$20 million, plus accrued interest, on July 16, 2007.
"This refinancing is another positive step along the path of Pliant
lowering its debt and improving its credit statistics,” Steve Auburn,
Pliant's general counsel and director of investor relations said. "The
company is pleased with this improvement."
Headquartered in Schaumburg, Illinois, Pliant Corporation produces
polymer-based films and flexible packaging products for food, beverage,
personal care, medical, agricultural and industrial applications. Revenue
for the twelve months ended June 30, 2006 was approximately US$1.1
billion. The company has operations in Australia, New Zealand, Germany
and Mexico. The Debtor and 10 of its affiliates filed for chapter 11
protection on Jan. 3, 2006 (Bankr. D. Del. Lead Case No. 06-10001). James
F. Conlan, Esq., at Sidley Austin LLP, and Edmon L. Morton, Esq., and
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, represent the
Debtors in their restructuring efforts. The Debtors tapped McMillan Binch
Mendelsohn LLP, as their Canadian bankruptcy counsel. The Ontario
Superior Court of Justice named RSM Richter, Inc., as the Debtors'
information officer in their restructuring proceeding under Companies
Creditors Arrangement Act in Canada. Kenneth A. Rosen, Esq., at
Lowenstein Sandler, P.C., serves as counsel to the Official Committee of
Unsecured Creditors. Don A. Beskrone, Esq., at Ashby & Geddes, P.A., is
local counsel to the Creditors' Committee. As of Sept. 30, 2005, the
company had US$604,275,000 in total assets and US$1,197,438,000 in total
debts. The Debtors emerged from chapter 11 protection on July 19, 2006
* * *
In October 2006, subsequent to its emergence from Chapter 11 of the
Bankruptcy Code, Moody's Investors Service assigned these ratings to
Pliant: US$288 million senior secured 1st lien 11.85% PIK notes due June
15, 2009, B2; US$7.5 million senior secured 1st lien 11.35% notes due June
15, 2009, B2; US$250 million senior secured 2nd lien 11.125% notes due
Sept. 1, 2009, Caa1; Corporate Family Rating, B3; Probability of Default
Rating, B3; and Speculative Grade Liquidity Rating, SGL-3. Moody’s also
put a stable outlook on the ratings.
POLYPORE INT’L: Commences Tender Offer for 10-1/2% Senior Notes
---------------------------------------------------------------
Polypore International Inc. has commenced a tender offer to purchase for
cash any and all of its outstanding 10-1/2% Senior Discount Notes due
2012, pursuant to an Offer to Purchase statement dated June 15, 2007, for
a price equal to US$978.80 per US$1,000 principal amount at maturity of
the notes, which includes US$948.80 as the tender offer consideration and
US$30 as a consent payment.
The Notes were initially issued in October 2004 in an aggregate principal
amount at maturity of US$300 million, and the accreted value of the
discount notes at March 31, 2007, was approximately US$257.3 million.
In connection with the Tender Offer, the company is soliciting consents to
certain proposed amendments to the indenture governing the Notes that are
subject to the Tender Offer to eliminate substantially all of the
covenants and certain events of default and related provisions contained
in the indenture.
The Consent Solicitation will expire at 5:00 p.m., New York City time, on
June 28, 2007, unless extended. On the terms and subject to the
conditions of the Consent Solicitation, if the company receives the
requisite consents and the supplemental indenture that contains the
amendments is executed, the company will pay, promptly following the
Consent Deadline and the satisfaction of the other conditions contained in
the Consent Solicitation, to each Holder who has validly delivered a valid
consent on or prior to the Consent Deadline, US$30 for each US$1,000 in
principal amount at maturity of Notes.
With respect to the Tender Offer, holders of Notes validly tendered on or
prior to the Consent Deadline, if such notes are accepted for purchase,
will receive the tender offer consideration plus the Consent Payment. The
tender offer is scheduled to expire at 5:00 p.m, New York City time on
July 13, 2007, unless extended or earlier terminated. Payment for Notes
validly tendered on or prior to the Consent Deadline and accepted for
purchase will be made promptly after the Consent Deadline. Holders of
Notes who validly tender after the Consent Deadline but prior to the
Expiration Time, if such notes are accepted for purchase, will receive the
Total Consideration less the Consent Payment. Payment for Notes validly
tendered after the Consent Deadline and on or prior to the Expiration Time
and accepted for purchase will be made promptly after the Expiration Time.
The Tender Offer is subject to the satisfaction or waiver of certain other
conditions as set forth in the Offer to Purchase governing the Tender
Offer. It is a condition to the consummation of the Tender Offer that the
holders of at least a majority in accreted value of the Notes outstanding
voting as a single class consent to the amendments to the indenture
governing the Notes. Additionally, the Tender Offer is subject to
consummation of the company's anticipated initial public offering. The
company intends to use the net proceeds from its initial public offering
to purchase the Notes that are tendered in connection with the Tender
Offer.
The complete terms and conditions of the Tender Offer and the
Consent Solicitation are set forth in the Offer to Purchase that is being
sent to holders of the Notes. Copies of each Offer to Purchase and the
related Letter of Transmittal may be obtained from the Information Agent
for the Tender Offers, Global Bondholder Services Corporation, at (212)
430-3774 and (866) 807-2200 (toll-free).
J.P. Morgan Securities Inc. is the Dealer Manager and Solicitation Agent
for the Tender Offer and Consent Solicitation. Questions regarding the
Tender Offer and the Consent Solicitation may be directed to J.P. Morgan
Securities Inc. at (212) 270-1477 (call collect).
About Polypore International
Headquartered in Charlotte, North Carolina, Polypore International Inc.,
is develops, manufactures and markets specialized polymer-based membranes
used in separation and filtration processes. The company is managed under
two business segments. The energy storage segment, which currently
represents approximately two-thirds of total revenues, produces separators
for lead-acid and lithium batteries. The separations media segment, which
currently represents approximately one-third of total revenues, produces
membranes used in various healthcare and industrial applications. The
company has operations in Australia, Germany and Brazil.
* * *
As reported in the Troubled Company Reporter on May 11, 2007,
Moody's Investors Service assigned Ba3 ratings to Polypore Inc.'s new
senior secured bank credit facilities.
In a related action, Moody's affirmed the B3 Corporate Family and
Probability of Default Ratings of Polypore's ultimate parent, Polypore
International, Inc., and affirmed the ratings of Polypore Inc.'s senior
subordinated notes at Caa1. The outlook is changed to positive.
WALMAR PTY: Liquidator to Present Wind-Up Report on July 23
-----------------------------------------------------------
Walmar Pty Limited will hold a meeting for its members on
July 23, 2007, at 10:00 a.m.
Samuel H. K. Shun, the company's liquidator, will give at the meeting a
report about the company's wind-up proceedings and property disposal.
The Liquidator can be reached at:
Samuel H. K. Shun
c/o Stanley & Williamson
1st Floor, 34 Burton Street
Kirribilli, New South Wales 2061
Australia
Telephone:(02) 9923 2666
About Walmar Pty
Located in New South Wales, Australia, Walmar Pty Limited is an investor
relation company.
================================
C H I N A & H O N G K O N G
================================
CAPITAL ACE: Members Decide to Liquidate Business
-------------------------------------------------
At an extraordinary general meeting held on June 15, 2007, the members of
Capital Ace Development Limited decided to voluntarily liquidate the
company's business and appointed Chu Pak Chee, Patrick, as liquidator.
The Liquidator can be reached at:
Chu Pak Chee, Patrick
Two International Finance Centre, 72-76th Floor
8 Finance Street, Central
Hong Kong
CHINA SOUTHERN: Inks Strategic Partnership with Continental Air
---------------------------------------------------------------
China Southern Airlines has entered into a strategic partnership with
Continental Airlines involving frequent flyer and airport lounge access
and extensive code sharing, Thomson Financial reports.
With the partnership, Larry Kellner, chairman and chief executive officer
of Continental Airlines said: “China Southern is the right partner for us
in China and we look forward to welcoming them into the SkyTeam alliance
in the very near future.”
Under the partnership, members of the two airlines' frequent flyer
programs, Continental's OnePass and ChinaSouthern's Sky Pearl Club, will
be able to earn and redeem miles on all flights marketed and operated by
the other carrier starting in September, the report relates. Reciprocal
airport lounge access for eligible customers will also begin when China
Southern joins SkyTeam, the groups said in a joint statement.
In November, the carriers plan to begin codesharing.
About China Southern
Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com/-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally. It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.
On May 1, 2006, Fitch Ratings downgraded China Southern Airlines
Company Limited's Foreign Currency and Local Currency Issuer
Default Ratings to B+ from BB-.
COMMUNICATION INTELLIGENCE: Establishes US$1MM Credit Facility
--------------------------------------------------------------
Communication Intelligence Corporation has established a credit facility
allowing the company, through Dec. 31 2007, to borrow up to US$1 million.
The new facility is the third credit facility with the same shareholder
that provided the credit facilities. As with the prior ones, this
facility was established pursuant to a note and warrant purchase
agreement.
Upon each draw, the company will issue one or more notes, payable within
18 months after issuance, bearing interest at the rate of fifteen percent
per annum payable quarterly in cash.
Also, the company will be required to issue warrants to purchase shares of
its common stock, the number to be determined by use of a formula known as
the Cox-Rubenstein Model, which takes into account the volatility of the
underlying stock, the risk free interest rate, dividend yield and exercise
price.
The exercise price of the warrants will be determined by the volume
weighted average price of the common stock for the thirty business days
preceding the date of the applicable draw. The warrants will include
piggyback registration rights for the underlying shares to participate in
certain future registrations of the company's common stock.
The terms of the agreement required the company to draw US$400,000 of the
funds upon signing. Pursuant to that draw and applying the formula, the
company has issued warrants to purchase 3,167,898 shares of its common
stock at an exercise price of US$0.25. No commitment fee is required to
keep the funds available.
About Communication Intelligence
Based in Redwood Shores, California, Communication Intelligence
Corporation (OTC Bulletin Board: CICI) -- http://www.cic.com/-- supplies
electronic signature solutions for business process automation in the
Financial Industry and a leader in biometric signature verification. The
company's products enable companies to achieve paperless workflow in their
eBusiness processes by enabling them with "The Power to Sign Online(R)"
with multiple signature technologies across virtually all applications.
Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK)
and Wells Fargo chose the company's products to meet their needs. The
company sells directly to enterprises and through system integrators,
channel partners and OEMs.
The company has operations in China.
Going Concern Doubt
As reported in the Troubled Company Reporter on April 2, 2007, GHP Horwath
PC raised substantial doubt about Communication Intelligence Corporation's
ability to continue as a going concern after auditing the company's
financial statements for the year ended Dec. 31, 2006. The auditing firm
reported that except for 2004, the company has incurred significant losses
since its inception and, at Dec. 31, 2006, the company's accumulated
deficit was about US$88,000. GHP Horwath also added that the company has
primarily funded these losses through the sale of debt and equity
securities.
ESTERLINE TECH: Commences Consent Solicitation for 7.75% Notes
--------------------------------------------------------------
Esterline Technologies Corporation commenced a consent solicitation with
respect to an amendment to the indenture governing its outstanding 7.75%
Senior Subordinated Notes due 2013 issued on June 11, 2003.
The consent solicitation will expire at 5:00 p.m., New York City time, on
June 27, 2007, unless extended.
On the terms and subject to the conditions of the Consent Solicitation, if
Esterline receives the requisite consents and the supplemental indenture
that contains the amendment is executed, Esterline will pay, after the
Consent Date and the satisfaction of the other conditions contained in the
Consent Solicitation, to each Holder who has validly delivered a valid
consent on or prior to the Consent Date, US$3.75 for each US$1,000 in
principal amount of 7.75% Senior Subordinated Notes due 2013. A holder of
approximately 38% in aggregate principal amount of the Notes has indicated
that it intends to deliver its consent to the proposed amendment.
Esterline is seeking consents to amend the indenture relating to the 7.75%
Senior Subordinated Notes due 2013 in order to reallocate some of its
existing senior secured bank debt to some of its foreign subsidiaries,
which are not permitted to incur debt without guaranteeing the Notes, in
order to better match currency funding needs to revenue sources. This
amendment would not increase the total amount of indebtedness that
Esterline is permitted to incur under the indenture, and would conform the
relevant paragraph of the covenant applicable to the 7.75% Senior
Subordinated Notes due 2013 to the corresponding paragraph in the covenant
applicable to Esterline's 6-5/8% Senior Notes due 2017 issued on March 1,
2007.
The complete terms and conditions of the Consent Solicitation are set
forth in the Consent Solicitation Statement that is being sent to holders
of the 7.75% Senior Subordinated Notes due 2013. Copies of the Consent
Solicitation Statement and related Consent Letter may be obtained from
Global Bondholder Services Corporation, at (212) 430-3774 and (866)
389-1500 (toll-free).
Merrill Lynch & Co. is the Solicitation Agent for the Consent
Solicitation. Questions regarding the Consent Solicitation may be directed
to Merrill Lynch & Co. at (888) 654-8637 (toll-free) and (212) 449-4914.
About Esterline Technologies Corp.
Based in Bellevue, Washington, Esterline Technologies Corp. (NYSE: ESL) --
http://www.esterline.com/-- is a specialized manufacturing company
principally serving aerospace and defense customers. The company designs,
manufactures and markets highly engineered products and systems for
application within the industries it serves. The company operates in three
segments: Avionics and Controls, Sensors and Systems, and Advanced
Materials. The company acquired Wallop Defense Systems Limited and FR
Countermeasures on March 24, 2006, and December 23, 2005, respectively,
from Cobham plc. Wallop and FR Countermeasures are manufacturers of
military pyrotechnic countermeasure devices. On Dec. 16, 2005, Esterline
acquired Darchem Holdings Limited, a manufacturer of thermally engineered
components for critical aerospace applications.
The company has operations in China, and Germany.
* * *
As reported in the Troubled Company Reporter on Feb. 20, 2007, Moody's
Investors Service has confirmed Esterline's Corporate Family Rating of
Ba2, and has assigned a Ba3 rating to the company's proposed senior
unsecured notes due 2017.
At the same time, Standard & Poor's Ratings Services assigned its 'BB-'
rating to Esterline's proposed US$150 million senior unsecured notes due
2017.
GLOBAL CROSSING: Picks Alcatel-Lucent for Maintenance Services
--------------------------------------------------------------
Global Crossing Ltd. has selected Alcatel-Lucent to reduce their global
network maintenance costs and improve network operating efficiencies.
Alcatel-Lucent will oversee the maintenance of optical and transport
equipment for Global Crossing, by providing technical support, repair,
field maintenance and program management services.
"By choosing Alcatel-Lucent as one of our providers to oversee portions of
our network maintenance, we are able to streamline network operations and
reduce costs with a common set of processes and a minimized set of
interfaces," said Dan Enright, Global Crossing's executive vice president
of global operations. "Alcatel-Lucent has the global assets and expertise
necessary to support the maintenance demands of our global IP network as
they have done in the past."
Global Crossing joins a prestigious roster of service providers around the
world that are leveraging Alcatel-Lucent's expertise to manage their
complex communications systems, ensuring the quality and reliability of
their networks and lowering operating and capital expenditure costs.
Alcatel-Lucent has multi-vendor, multi-technology maintenance experience
spanning more than 1,600 products from nearly 300 suppliers.
"This agreement underscores Alcatel-Lucent's breadth of experience in
managing complex, multi-vendor communications networks," said John Meyer,
president for Alcatel-Lucent's Services business. "Service providers have
begun to realize the operational importance and cost-savings of having a
single point of contact for maintaining and managing today's complicated
networks. Alcatel-Lucent's network services organization is one of the
most experienced in the industry. That experience, backed by the network
expertise of Bell Labs, gives us a competitive advantage unrivalled in
this space."
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, Australia, Indonesia,
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.
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, China, and the United Kingdom.
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.
At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a US$195
million stockholders' deficit, compared to a US$173 million stockholders'
deficit at Dec. 31, 2005.
HONG KONG HAPPY: Enters Wind-Up Proceedings
-------------------------------------------
On June 18, 2007, the members of Hong Kong Happy Family Women Association
Limited had a meeting and decided to voluntarily wind up the company's
operations.
The members will also have their final meeting on July 23, 2007, at 10:30
a.m., to hear the liquidator's report about the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Chan Yuk Kwan
Wing On Central Building, Suite 1604
26 Des Vouex Road, Central
Hong Kong
HSBC PROPERTY: Sets Final Meeting for July 25
---------------------------------------------
The members of HSBC Property (Asia) Limited will have their final meeting
on July 25, 2007, at 10:00 a.m., to hear the liquidator's report about the
company's wind-up proceedings and property disposal.
The meeting will be held on Level 37 at Queen's Road in Central, Hong Kong.
INTELSAT LTD: Fitch Puts Issuer Default Rating on Watch Negative
----------------------------------------------------------------
Fitch Ratings has placed these Intelsat Ltd. ratings on Rating Watch
Negative:
-- Issuer Default Rating 'B';
-- Senior unsecured notes 'CCC/RR6'.
Fitch also has placed the ratings of Intelsat's subsidiaries on Rating
Watch Negative.
Approximately US$11.4 billion of debt is affected by the action.
The action follows Intelsat's announcement that private equity firm BC
Partners has agreed to acquire a 76% stake in Intelsat for approximately
US$4.6 billion in cash. The current private equity owners of Intelsat
will retain ownership of the remaining 24% stake. It is expected that
Intelsat's debt will increase by approximately US$3.85 billion, which will
increase debt-to-EBITDA leverage to over 10 times based on the last twelve
months EBITDA as of first-quarter 2007 (1Q-07). The transaction is
expected to close in six to nine months pending regulatory approvals.
The higher leverage and weaker free cash flow will likely result in
Intelsat's IDR being downgraded to 'CCC' from its existing IDR of 'B'.
Intelsat has indicated that new debt will be assumed by a new entity
junior to the existing Intelsat, Ltd. As a result of the position of the
new debt in the capital structure and the expected retirement of
approximately
US$860 million of debt at Intelsat, Ltd. Fitch expects that the Recovery
Ratings at Intelsat Corporation, Intelsat Subsidiary Holding Company, Ltd.
and the guaranteed debt at the existing Intelsat Bermuda could be
unchanged. However, the expected reduction of Intelsat's IDR will result
in lower issue ratings for all the Intelsat entities, but the exact issue
and recovery ratings will depend on further evaluation of the capital
structure, financial projections and recovery analysis. Fitch expects
that Intelsat will not have difficulty receiving regulatory approvals and
would likely resolve its rating watch status prior to closing.
Fitch has placed these ratings of Intelsat subsidiaries on Rating Watch
Negative:
Intelsat (Bermuda), Ltd.
-- Issuer Default Rating 'B';
-- Senior unsecured guaranteed notes 'BB-/RR2';
-- Guaranteed Term Loan 'BB-/RR2';
-- Senior unsecured non-guaranteed notes 'CCC+/RR6'.
Intelsat Intermediate Holding Company, Ltd. (Int Holdco)
-- Issuer Default Rating 'B';
-- Senior unsecured discount notes 'B-/'RR5'.
Intelsat Subsidiary Holding Company, Ltd. (Sub Holdco)
-- Issuer Default Rating 'B';
-- Senior secured credit facilities 'BB/RR1';
-- Senior unsecured notes 'BB-/RR2'.
Intelsat Corporation (f/k/a PanAmSat Corporation)
-- Issuer Default Rating (IDR) 'B';
-- Senior secured credit facilities 'BB/RR1';
-- Senior secured notes 'BB/RR1';
-- Senior unsecured notes 'B/RR4'.
Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony, corporate
network, video and Internet solutions around the globe via capacity on 25
geosynchronous satellites in prime orbital locations. Customers in
approximately 200 countries rely on Intelsat's global satellite, teleport
and fiber network for high-quality connections, global reach and
reliability.
Intelsat has sales offices in Bermuda, Australia, China, Japan, and
Singapore.
INTELSAT LTD: Moody's Puts Ratings in Review; May Downgrade
-----------------------------------------------------------
Moody's Investors Service placed the long term debt ratings of the
Intelsat Ltd. group of companies on review for possible downgrade.
The rating action was prompted by news that TD/EBITDA will increase
substantially from 7.6x to 10.3x (based on last three quarters annualized,
i.e. since last August's acquisition of PanAmSat Holding Corporation, and
incorporating Moody's adjustments to the company's reported figures). In
turn, this results from the company's June 19, 2007 announcement that
funds advised by BC Partners are to acquire 76% of the equity of
Intelsat's parent company, Intelsat Holdings, Ltd. The current
shareholders, Apax Partners, Apollo Management, Madison Dearborn Partners,
Permira and management, will retain the 24% balance. It was reported that
Intelsat's debt will increase by approximately US$3.85 billion, an
increase of some 33%, and there is no change to expectations of cash
generation. The review will focus on Intelsat's business and prospects,
debt and capital structure, and liquidity arrangements. Moody's Credit
Opinion dated September 8, 2006, provides a thorough review of these
matters prior to incorporating this latest development. Moody's
anticipates concluding the ratings review in advance of closing, which the
company has indicated is expected within six-to-nine months.
On Review for Possible Downgrade:
Issuer: Intelsat (Bermuda), Ltd.
-- Senior Unsecured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently B2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Caa1
Issuer: Intelsat Corporation
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Secured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently B2
Issuer: Intelsat Holding Corporation
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Caa1
Issuer: Intelsat Intermediate Holding Company, Ltd.
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently B3
Issuer: Intelsat Subsidiary Holding Co. Ltd.
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently B2
Issuer: Intelsat, Ltd.
-- Probability of Default Rating, Placed on Review for Possible
Downgrade, currently B2
-- Corporate Family Rating, Placed on Review for Possible
Downgrade, currently B2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Caa1
Outlook Actions:
Issuer: Intelsat, Ltd.
-- Outlook, changed to rating under review from stable
The company has noted that current plans call for its 5.25% US$400 million
notes due November 2008 in the name of Intelsat, Ltd. to be defeased or
retired. In addition, some US$860 million of debt in the name of Intelsat
(Bermuda), Ltd. has been highlighted as being repaid, although specific
instruments have not been identified. The ratings review will also
address the matter of certain debts being repaid.
Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony, corporate
network, video and Internet solutions around the globe via capacity on 25
geosynchronous satellites in prime orbital locations. Customers in
approximately 200 countries rely on Intelsat's global satellite, teleport
and fiber network for high-quality connections, global reach and
reliability.
Intelsat has sales offices in Bermuda, Australia, China, Japan, and
Singapore.
ONWARD ELECTRICAL: Annual Meeting Set for July 17
-------------------------------------------------
The contributories and creditors of Onward Electrical & Supplies Company
Limited will hold their annual meetings on July 17, 2007, at 11:00 a.m.
and 11:30 a.m., respectively, in Room 203,
2nd Floor of Duke of Windsor Social Service Building at 15 Hennessy Road
in Wanchai, Hong Kong.
At the meeting, the contributories and creditors will be asked to:
-- receive and consider the liquidator's annual report;
-- consider the waiver of audit of the liquidator's accounts
of receipts and payments in order to save unnecessary
costs;
-- consider that the books, accounts and the company's
records will be keep at the liquidator's custody and will
be destroyed after expiration of three months from the
date of the creditors' and members' final meeting; and
-- discuss other business.
PACICO INTERNATIONAL: Sets Final Meeting for July 24
----------------------------------------------------
A final meeting will be held for the members of Pacico International
Limited on July 24, 2007, at 10:30 a.m., at the
35th Floor of One Pacific Place on 88 Queensway, Hong Kong.
The members will receive at the meeting a report about the company's
wind-up proceedings and property disposal.
PENAR LIMITED: Requires Creditors to Prove Debts by July 24
-----------------------------------------------------------
The members of Penar Limited passed a resolution on June 15, 2007, to wind
up the company's operations.
Christopher Harvey Hall, the company's appointed liquidator, requires its
creditors to file their proofs of debt by July 24, 2007.
The Liquidator can be reached at:
Christopher Harvey Hall
The Center, 31st Floor
99 Queen's Road
Central, Hong Kong
STAR YIELD: Taps Chu Pak-Chee, Patrick as Liquidator
----------------------------------------------------
On June 15, 2007, the members of Star Yield Development Limited met and
decided to wind up the company's operations.
Chu Pak-Chee, Patrick, was appointed as liquidator.
The Liquidator can be reached at:
Chu Pak Chee, Patrick
Two International Finance Centre, 72-76th Floor
8 Finance Street, Central
Hong Kong
SUNRICH TECHNOLOGY: Creditors' Proofs of Debt Due by July 23
------------------------------------------------------------
The creditors of Sunrich Technology Limited are required to file their
proofs of debt by July 23, 2007, to be included in the company's dividend
distribution.
The company went into liquidation on June 21, 2007.
The company's liquidator is:
Tse Wai Hing
Nan Fung Tower, Suites 1403-4, 14th Floor
173 Des Voeux Road, Central
Hong Kong
TCL CORP: Plans Listing of PC Unit to Raise Capital
---------------------------------------------------
China's TCL Corp. may list its personal computer unit to raise much-needed
capital, Reuters reports, citing China Business News.
According to the report, the company expects to swing to a profit this
year, after which it would apply for a listing of the PC unit. The local
Chinese paper did not specify which stock exchange the unit will list,
Reuters notes.
TCL, China Business added, is still reorganizing the share structure of
its PC unit and may bring in overseas investors in preparation for a
listing.
Reuters failed to reach a TCL representative for comment.
Headquartered in Guangdong Province, China, TCL Corporation --
http://www.tcl.com-- Corporation is principally engaged in the
manufacture of TV sets and handset products.
TCL Corp is the parent of Hong Kong-listed TV maker TCL
Multimedia Technology Holdings Ltd and cellphone maker TCL
Communication.
Xinhua Far East China Ratings downgraded on April 7, 2006, the
domestic currency issuer credit rating of TCL Corporation to
"BB" from "BBB". The ratings outlook remains negative.
TNK-BP HOLDING: Budgets US$1 Bln to Hike Processed Gas Output
-------------------------------------------------------------
TNK-BP Holding Ltd. will invest more than US$1 billion over the next five
years into associated petroleum gas processing, RIA Novosti reports citing
Oleg Nam, the company's West Siberian chief.
Mr. Nam told RIA Novosti that TNK-BP aims to increase its average gas
processing level from the current 78.4% to 95% by 2011.
TNK-BP, which is developing 143 oil and gas deposits, extracted around 11
billion cubic meters of associated petroleum gas, of which 800 million
cubic meters were used by the company, and
8 billion were processed, Mr. Nam added to RIA Novosti.
About TNK-BP
Headquartered in Moscow, Russia, TNK-BP Holding Ltd. operates six
refineries in Russia and Ukraine, and markets products through 2,100
retail service stations operating under TNK and BP brand. BP Plc and Alfa
Access/Renova jointly own the group.
The company has operations in China.
TNK-BP holds a strategic position as the second largest liquids producer
in the Russian intergraded operating environment, accounting for
approximately 18% of Russia's total crude oil production.
* * *
Standard & Poor's assigned BB+/Stable foreign currency local currency
ratings to TNK-BP on June 30, 2006.
Moody's assigned a Ba2/Positive foreign currency rating to the company on
Jan. 24, 2006.
Fitch assigned a BB+/Positive foreign currency rating to TNK-BP on Feb.
13, 2006, and BB+/Positive local currency rating on
Aug. 24, 2005.
UNIGLOBE TELECOM: Sets Final Meeting for July 25
------------------------------------------------
The members and creditors of Uniglobe Telecom (Far East) Limited will have
their final meeting on July 25, 2007, at 10:30 a.m. and 11:30 a.m.,
respectively, on Unit 1-3, 5th Floor of Far East Consortium Building at
121 Des Voeux Road in Central, Hong Kong.
At the meeting, the members and creditors will give a report about the
company's wind-up proceedings and property disposal.
VINCENT UNION: Members' Final Meeting Set for July 23
-----------------------------------------------------
The members of Vincent Union (International) Limited will have their final
meeting on July 23, 2007, at 10:00 a.m., to hear the liquidator's report
about the company's wind-up proceedings and property disposal.
The meeting will be held on the 8th Floor of Gloucester Tower, The
Landmark at 15 Queen's Road in Central, Hong Kong.
=========
I N D I A
=========
AES CORP: Shuts Down Los Angeles Unit for Maintenance
-----------------------------------------------------
The AES Corp. has stopped its Unit 5 in the Alamitos natural gas-fired
power plant Los Angeles from operating for an unplanned maintenance,
according to a report by the California Independent System Operator.
Reuters relates that the CISO didn't say when the unit will start
operating again.
The unit was shut off several weeks up to the middle of April, Reuters
states.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
The company has Asian presence in China, India and Sri Lanka.
* * *
In Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
given-default rating methodology. Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default ratings on
the company's loans and bond debt obligations including the B1 rating on
its senior unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will experience a 55%
loss in the event of a default.
BALLY TECHNOLOGIES: Incurs US$2.7 Million Quarter Net Loss
----------------------------------------------------------
Bally Technologies Inc. has filed with the U.S. Securities and Exchange
Commission, its quarterly reports on Form 10-Q for the three-month periods
ended Sept. 30, 2006 and Dec. 31, 2006.
The company reported operating income of US$14.3 million for the fiscal
2007 period compared with an operating loss of US$11.3 million in the
fiscal 2006 period. The company reported a net loss of US$2.7 million
(US$0.05 per share) for the fiscal 2007 period compared with a net loss in
the fiscal 2006 period of US$17.3 million (US$0.33 per share).
Revenues for the fiscal 2007 period increased 31 percent, to US$305.6
million from US$232.9 million in the fiscal 2006 period ended Dec. 31,
2005. Further, current deferred revenue increased by US$16.4 million to
US$63.5 million at Dec. 31, 2006 compared with US$47.1 million at June 30,
2006. In the fiscal 2007 and 2006 periods, the company recorded
stock-based compensation of US$5.3 million, net of tax benefit (US$0.10
per share) and US$3.8 million, net of tax benefit (US$0.07 per share),
respectively.
The company's Gaming Equipment and Systems revenues increased
35 percent to US$282.6 million for the fiscal 2007 period compared with
US$208.8 million in the fiscal 2006 period.
Gaming Equipment revenue increased 49 percent, to
US$136.6 million for the fiscal 2007 period compared with US$91.4 million
in the fiscal 2006 period, with unit sales of gaming devices increasing 43
percent to 9,704 units in the fiscal 2007 period compared with 6,789 units
in the fiscal 2006 period.
The average selling price of new gaming devices (excluding OEM
sales) increased 14 percent to US$12,363 per unit for the fiscal 2007
period compared with US$10,802 per unit in the fiscal 2006 period. The
company recorded inventory obsolescence charges of US$6.2 million in the
fiscal 2007 period compared with
US$8.0 million in the fiscal 2006 period. Gross margin on the company's
gaming equipment increased to 35 percent in the fiscal 2007 period from 27
percent in the fiscal 2006 period. The increase in margin was primarily
due to lower sales discounts and lower production costs in the fiscal 2007
period compared with the fiscal 2006 period. In addition, in the fiscal
2006 period, the company recorded higher inventory obsolescence charges in
connection with the company's introduction of ALPHA OS(TM) products.
Gaming Operations revenue increased 8 percent to US$77.8 million from
US$71.8 million in the fiscal 2006 period. Revenue from the Company's
rental and daily fee, lottery and centrally determined games improved 24
percent to US$63.0 million in the fiscal 2007 period compared with US$50.9
million in the fiscal 2006 period as a result of a 32 percent increase in
the installed base of games at Dec. 31, 2006, to 43,044 compared with
33,127 at Dec. 31, 2005. The increase in games was driven by new
placements of the company's premium participation games, including Hot
Shot Progressive(TM), as well as the placement of approximately 2,600
lottery games in New York state late in the period. The increase in
Gaming Operations revenue was partially offset by a decrease in revenues
from wide-area products to US$13.2 million in the fiscal 2007 period from
US$19.4 million in the fiscal 2006 period resulting from a decrease in the
number of wide-area progressive games deployed. Gross margin on Gaming
Operations increased to 58 percent in the fiscal 2007 period compared with
45 percent in the fiscal 2006 period as a result of increased revenues
from the company's premium participation games and a decrease in
depreciation expense. In the fiscal 2006 period, the lives of certain
participation games were shortened resulting in an acceleration of
depreciation over the remainder of their useful lives. Many of these
games became fully depreciated in the three-month period ended Sept. 30,
2006.
Systems revenue increased 50 percent to US$68.2 million in the fiscal 2007
period compared with US$45.6 million in the fiscal 2006 period. Revenues
were impacted by an increase in deferred revenues during the fiscal 2007
period. Gross margins on System sales decreased to 68 percent in the
fiscal 2007 period from
82 percent in the fiscal 2006 period due to the increase in the proportion
of sales of lower margin hardware products versus
software.
The company's selling general and administrative expenses increased 17
percent to US$101.7 million in the fiscal 2007 period compared with
US$87.0 million in the fiscal 2006 period. This increase was partially
attributable to an increase in payroll and related costs to support the
current and planned growth in the company's business. Professional and
legal fees also increased as a result of the October 2006 restatement of
the company's fiscal 2005, 2004 and 2003 financial statements as well as
ongoing intellectual property litigation.
The company's net interest expense increased to US$16.8 million in the
fiscal 2007 period compared with US$11.7 million in the 2006 fiscal period
as a result of higher interest rates as compared with the fiscal 2006
period as well as approximately US$2.1 million in fees paid to amend the
company's bank agreement as a result of the delayed filing of the
company's 2006 Form 10-K.
Research and development costs increased 23 percent to
US$25.9 million in the fiscal 2007 period compared with
US$21.0 million in the fiscal 2006 period. This increase in research and
development reflects the company's focus on a continued high level of
product innovation and quality for growth.
Robert C. Caller, Chief Financial Officer, said, "These two filings
represent another important accomplishment as we move closer to our goal
of becoming a timely filer. These are our sixth and seventh major filings
in the last eight months. We are anxious to complete the filing of our
fiscal 2007 Form 10-K on a timely basis."
Fiscal 2007 Business Outlook
"Our financial results for the six months ended Dec. 31, 2006, began to
show the fruits of our efforts in consolidating the company's various
businesses and re-tooling the product lines," said Richard M. Haddrill,
Chief Executive Officer. "All of our principle product lines showed
increases, with revenues from Gaming Equipment and from Systems increasing
49 percent and 50 percent, respectively. As we continue to execute our
strategy, we expect that our operating results in the second half of
fiscal 2007 and fiscal 2008 will show additional improvement over our
results for the first half of the fiscal year."
The company expects it will record revenue for the six months ended June
30, 2007, in the range of US$365 to US$385 million, bringing total
revenues for the year to an expected range of US$670 to US$690 million.
Total gross margin is expected to increase in the second half of fiscal
2007. Excluding sales of OEM units, the Company expects to sell in excess
of 13,000 gaming devices in the second half of fiscal 2007. The company
expects accelerating growth in Gaming Operations revenues in the second
half of fiscal 2007 and expects to have placed in excess of 2,000 of its
premium Hot Shot Progressive game by June 30, 2007. Revenue from Systems
will continue to fluctuate as the company applies complicated software
revenue recognition accounting standards.
The company expects its selling, general and administrative expenses in
the second of half of fiscal 2007 will be between US$107 and US$112
million. Research and development costs are expected to range between
US$25 and US$28 million.
Filing Status
The company currently intends to file its 2007 Annual Report on Form 10-K
in a timely manner. The company will file its Form 10-Q for the
three-month period ended March 31, 2007, simultaneously with the filing of
the Form 10-K, but may provide additional business updates prior to that
time.
About Bally Technologies
Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures,
operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide. Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms. Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions. The company also owns and operates
Rainbow Casino in Vicksburg, Miss. The company's South American
operations are located in Argentina. The company also has
operations in Macau, China, and India.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implication on its ratings for Bally Technologies
Inc. to developing from negative. The corporate credit rating
on the company is 'B-'. The ratings were initially placed on
CreditWatch on Sept. 9, 2005, and several rating actions have
occurred since the original CreditWatch listing.
BRITISH AIRWAYS: S&P Lifts BB+ Corp. Credit Rating to BBB-
----------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term corporate
credit rating on British Airways PLC to 'BBB-' from 'BB+', propelling the
U.K. airline to investment-grade status. The outlook is stable.
"The upgrade follows BA's good progress in strengthening its financial
profile and our expectations of improving operational performance," said
Standard & Poor's credit analyst Leigh Bailey.
At the same time, Standard & Poor's raised its long-term rating on BA's
senior unsecured debt to 'BB+' from 'BB-'. This two-notch upgrade reflects
Standard & Poor's criteria according to which a one-notch rating
differential is the maximum allowed for the notching-down of unsecured
debt with respect to priority liabilities of investment-grade issuers,
compared with two notches at the speculative-grade level.
All ratings were removed from CreditWatch, where they were placed with
positive implications on Jan. 9, 2007.
"The upgrade reflects the positive implications for BA's capital
structure, future cash flows, and business operations of the proposed
pension deficit solution and the debt reduction achieved in recent years.
This should enable the group to maintain credit metrics consistent with an
investment-grade rating," said Mr. Bailey.
Despite a challenging trading environment, Standard & Poor's expects the
structural cost savings achieved and the benefits of the transfer of BA's
operations to the new terminal 5 at London Heathrow Airport to help
maintain BA's profitability and provide support for its financial profile.
At March 31, 2007, BA reported GBP3.3 billion (EUR4.9 billion) of total
on-balance-sheet financial debt.
The rating reflects BA's strong competitive position as the main airline
at Heathrow, above-industry-average operating margins, and moderate
financial policy. It is constrained, however, by the cyclical nature of
the airline industry, BA's profit concentration in its transatlantic
network, and the likelihood that the "Open Skies" agreement will increase
competition on these long-haul routes. The impact on BA of the EU-U.S.
"Open Skies" agreement, which will come into force in March 2008, will be
negative, although to what degree is still uncertain. At this stage, we
do not believe that the easing of regulatory restrictions on transatlantic
routes will lead to a level of profit erosion that is sufficient to
threaten the group's financial profile at the current rating level.
"We believe that a satisfactory revenue environment--bolstered by demand
for premium long-haul services--and tight cost control should enable the
group to improve operating performance and maintain credit ratios in line
with our expectations," said
Mr. Bailey.
The industry environment remains challenging, characterized by high fuel
prices and growing competition, which limits the likelihood of a revision
of the outlook to positive in the near term. The ongoing competition
investigations into long-haul passenger and cargo fuel surcharges are also
a negative factor, since the final outcome is uncertain. We expect BA to
maintain FFO to adjusted debt of about 30% and adjusted debt to capital
within 60%-65%. A slowdown in demand or significant acquisition activity,
resulting in weakened credit metrics, could lead to downward pressure on
the ratings.
BA has offices in India and Guatemala.
BRITISH AIRWAYS: Confident on Future Growth After Rating Upgrade
----------------------------------------------------------------
British Airways plc has been advised by the credit rating agency, Standard
and Poor's that its corporate credit rating is to be increased to
investment grade.
The company was downgraded to sub-investment grade or junk status in July
2003 following the events of Sept. 11, 2001, and the war in Iraq.
During that period the company has reduced its net debt from GBP6.6
billion to GBP990 million and steadily increased its operating margin.
“We have worked hard over the last four years strengthening the
foundations of our business. Regaining investment grade status will
enable us to invest in our future growth with confidence,” British Airways
CFO Keith Williams said.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides 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 April 2007, in connection with the 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, Moody's
Investors Service's 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
* Issuer: British Airways Plc
Projected
Debt LGD Loss-iven
Debt Issue Rating Rating Default
---------- ------- ------ ----------
GBP100-million 10.875%
Sr. Unsec. Regular
Bond/Debenture
Due 2008 Ba2 LGD5 84%
GBP250-million 7.25%
Sr. Unsec. Regular
Bond/Debenture
Due 2016 Ba2 LGD5 84%
CENVEO CORP: S&P Retains Recovery Ratings Despite Loan Add-On
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its issue level and recovery
ratings on Cenveo Corp.'s secured financing remain unchanged following the
borrower's announcement of a planned
US$100 million add-on to its term loan C. Pro forma for the add-on, the
secured financing will consist of a US$200 million revolver and a US$720
million term loan. The issue rating on the financing is 'BB-' with a
recovery rating of '2', indicating the expectation for substantial
(70%-90%) recovery in the event of a payment default.
The company has within its existing credit facilities a provision to
increase its term borrowings by up to US$400 million, from which the
planned US$100 million incremental term loan C will be funded. Proceeds
will be used to help finance the recently announced acquisition of
Madison/Graham ColorGraphics Inc., which is expected to close in July.
S&P have not factored into its recovery analysis any of the remaining up
to US$300 million in incremental term loan capacity, as it is uncommitted.
However, should Cenveo request and receive additional term loans, Standard
& Poor's will review its loan and recovery ratings to determine whether
any changes are warranted.
The corporate credit rating on Stamford, Connecticut-based Cenveo Inc. is
'B+' and the rating outlook is positive. The 'B+' rating reflects the
company's high leverage pro forma for recent acquisitions, the likelihood
of more debt-financed acquisitions in the intermediate term, and the
company's participation in highly competitive and fragmented markets.
These factors are somewhat offset by operating improvements in 2006 and
the expectation of continued growth in profitability and cash flow
generation.
Ratings List
Cenveo Inc.
Corporate Credit Rating B+/Positive/--
Secured Debt BB- (Recovery Rating: 2)
Cenveo has operations in the US, India and the Caribbean Rim.
DUERR AG: Moody's Upgrades Corp. Credit Rating Outlook to Stable
----------------------------------------------------------------
Moody's has upgraded the outlook for Duerr AG's corporate credit rating
from negative to stable. Duerr AG's corporate credit rating continues to
stand at B2.
Duerr's steady improvements in operating performance over recent months
cued Moody's to upgrade the company’s outlook, which also reflects Moody's
expectation that Duerr will record further improvements not only in the
operating performance, but also in efficiency and that Duerr will retain
an adequate liquidity position.
The company reached all of its financial targets in fiscal 2006 and
increased operating profit from EUR3.5 million to
EUR39.1 million. In the first quarter of 2007 the specialist for paint
shops and production technology continued its improved performance:
operating profit rose to EUR3.1 million after Duerr had recorded a loss of
EUR0.9 in the first quarter of 2006.
Duerr expects sales growth of between 5 and 10% and a further significant
earnings improvement in 2007.
About Duerr
Headquartered in Stuttgart, Germany, Duerr AG --
http://www.durr.com/en-- supplies products, systems, and services for
automobile manufacturing. Its range of products and services covers
important stages of vehicle production. As a systems supplier, Duerr plans
and builds complete paint shops and final assembly facilities. It also
delivers cleaning and filtration systems for the manufacture of engine and
transmission components as well as balancing systems.
The company has operations in Brazil, China and India.
EUTELSAT COMMUICATIONS: Inks Pay-TV Contract with Digiturk
----------------------------------------------------------
Eutelsat Communications and Digiturk have signed a new
contract for capacity on the W3A satellite to support continued expansion
of Turkey’s leading pay-TV platform. The new contract, concluded for four
years, is the third signed between Eutelsat and Digiturk since November
2006. It takes to 11 the total number of transponders leased for
broadcasting services by Digiturk on Eutelsat's satellites.
Launched in 2000 from Eutelsat's 7 degrees East position, Digiturk’s
platform benefits from the high-power regional footprint on Eutelsat's W3A
satellite in order to reach
1.6 million subscribing satellite homes across Turkey. In addition to its
reach of Turkey, Digiturk offers pay-TV services across Europe and also
uses capacity on ATLANTIC BIRD™ 1 for
contribution links back to its studios in Istanbul.
The pay-TV platform serving Turkey today offers more than 150 television,
radio and interactive channels incorporating national and international
programming. Channels recently
joining the platform include Disney Channel Turkey, which has signed a
contract with Digiturk for exclusive carriage of Disney Channel Turkey
which began broadcasting on April 29. Digiturk is also preparing for the
introduction later in 2007 of new HDTV and Video on Demand services
through its capacity on W3A.
“Eutelsat has been the unique satellite provider for Digiturk since it
launched into the pay-TV market in 2000,” Olivier Millies-Lacroix,
Eutelsat’s commercial director, said. “We are very leased to further
strengthen this relationship through additional capacity on our W3A
satellite which is optimized for Direct-to-Home reception via its unique
footprint which
reaches into Digiturk’s core markets.”
About Eutelsat
Headquartered in Paris, France, Eutelsat Communications (Euronext Paris:
ETL) -- http://www.eutelsat.com/-- is the holding company of Eutelsat
S.A. The Group is a leading satellite operator with capacity
commercialized on 23 satellites providing coverage over the entire
European continent, as well as the Middle East, Africa, India and
significant parts of Asia and the Americas. The Group is one of the
world's three leading satellite operators in terms of revenues. Its
satellites are used for broadcasting nearly 1,800 TV and 900 radio
stations to more than 120 million cable and satellite homes. The Group
also provides TV contribution services, corporate networks, mobile
positioning and communications, Internet backbone connectivity and
broadband access for terrestrial, maritime and inflight applications.
* * *
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology for the
corporate families in the Telecommunications, Media and Technology
sectors, Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Eutelsat Communications S.A.
Moody's also assigned a Ba3 probability of default rating to the
company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------ ----------
Senior Unsecured
Bank Credit Facility Ba3 LGD4 55%
IMPERIAL CHEMICAL: Snubs Akzo Nobel's GBP7 Billion Approach
-----------------------------------------------------------
The Board of Directors for Imperial Chemical Industries Plc unanimously
rejected a GBP7 billion takeover approach by Akzo Nobel N.V.
The Board rejected the cash offer of 600 pence per share as it
significantly undervalues ICI, the company said in a statement. The Board
is very confident in the Group's strategy and strong growth prospects.
Akzo Nobel, however, said it is not ruling out any possible offer for ICI.
About Akzo Nobel
Headquartered in Arnhem, the Netherlands, Akzo Nobel N.V. --
http://www.akzonobel.com/-- provides coatings, chemicals, and human and
animal healthcare products worldwide. It operates through four segments:
Coatings, Chemicals, Organon and Intervet. The Coatings segment's product
areas are decorative coatings, industrial activities, marine and
protective coatings, and car refinishes. The Chemical segment offers pulp
and paper chemicals, base chemicals, surfactants and polymer chemicals.
Organon offers brand name prescription pharmaceuticals in the fields of
gynecology, fertility, neuroscience and anesthesia. Intervet offers
vaccines and pharmaceuticals for livestock, aquatic and companion animals.
About ICI
Headquartered in London, England, Imperial Chemical Industries Plc --
http://www.ici.com/-- is a major paints, adhesives and specialty products
business with products and ingredients developed for a wide range of
markets.
The company has a number of Regional and Industrial businesses in
Argentina, India and Pakistan. It has around 26,000 employees and had
sales in 2006 of GBP4.8 billion.
At Dec. 31, 2006, the company's balance showed GBP4.29 billion in total
assets, GBP4.48 billion in total liabilities and GBP189 million in
stockholders' deficit.
NOVELL INC: Unveils Real-Time Linux Enhancements & Partnerships
---------------------------------------------------------------
Novell Inc. disclosed new enhancements to SUSE(R) Linux Enterprise Real
Time and new partnerships that expand the ecosystem around Novell's low
latency Linux solution. SUSE Linux Enterprise Real Time, the only
enterprise-class, open source real-time operating system offered by an
enterprise Linux distributor, is a high performance, customizable, fully
supported solution for running mission-critical applications that require
deterministic processing and speed. As a result, customers can run their
time sensitive mission-critical applications reliably and predictably,
even under severe system loads, with SUSE Linux Enterprise Real Time.
"SUSE Linux Enterprise Real Time provides customers a flexible, open
standards-based operating system to maximize the performance of their time
sensitive workloads, such as trading applications in the financial
sector," said Ken Barnes, vice president, Business & Planning at Wombat
Financial Software. "The improvements Novell is delivering this summer, as
well as the vision for this technology farther out, makes it clear Novell
intends to continue providing valuable innovations for the capital
markets."
Built on top of SUSE Linux Enterprise's desktop to datacenter platform,
SUSE Linux Enterprise Real Time contains the kernel enhancements,
packages, tools and utilities that create a robust, high performance,
deterministic and low latency operating system. Novell builds SUSE Linux
Enterprise Real Time in conjunction with Concurrent Computer Corporation,
a leading provider of real-time Linux software technology. With real-time
technology, customers can segment portions of their processors, network
bandwidth and other hardware for high-priority mission-critical workloads.
This ensures that these workloads are not interrupted by systems calls
made by lower-priority workloads or system tasks, delivering predictable
performance in time-critical environments.
Product Improvements
Novell will ship a maintenance update for SUSE Linux Enterprise Real Time
in July 2007. This maintenance update delivers new performance
enhancements to the real-time operating system. It inherits the
improvements and enhancements associated with the recently launched
Service Pack 1 for SUSE Linux Enterprise, including new high availability
storage and processor support. This update also incorporates support for
the latest open source InfiniBand software stack, Open Fabrics Enterprise
Distribution
(OFED) 1.2, an emerging industry standard for server and storage
connectivity.
The next generation of SUSE Linux Enterprise Real Time, which is
currently in development, will focus on significantly improving latency
and performance, not only for applications with relatively fewer threads
that can be prioritized and shielded, but also for massively threaded
applications with low latency requirements, such as real time Java
messaging. There is significant innovation around real-time functionality
in the open source community in which Novell is participating, including,
among other things, work on kernel locking optimizations (to reduce busy
wait), priority inheritance, execution of interrupts in kernel threads
with
definable priority and high resolution timers that improve synchronization
and process accounting.
New Partnerships
In support of its real time offerings, Novell also announced
partnerships with key players in the real time arena. These included:
a) Concurrent Computer Corporation – Concurrent's
field-proven NightStar(TM) advanced analysis and debugging
software now supports SUSE Linux Enterprise Real Time from
Novell(R). Novell is now reselling NightStar tools,
offering customers the ability to minimize data latencies,
reduce costs and improve efficiency throughout the data
center.
b) Voltaire -- Novell and Voltaire are delivering a combined
solution to increase transaction rates, lower latency and
improve CPU utilization. The combined solution consists
of SUSE Linux Enterprise Real Time, Voltaire Grid
Backbone(TM) InfiniBand-based switching solutions, OFED
1.2 InfiniBand software, and additional functionality from
Voltaire.
"SUSE Linux Enterprise Real Time delivers tested, enterprise-quality
solutions that result in system-wide near zero latency, from the operating
system to the application layer," said Roger Levy, general manager for
Open Platform Solutions at Novell. "Today's announcement confirms Novell's
leadership position in the real-time market, and is a direct result of our
close collaboration with the open source community. The leadership of SUSE
Linux Enterprise Real Time is reinforced by our expanded list of partners
with whom we are collaborating to deliver new value to our mutual
customers."
Availability
SUSE Linux Enterprise Real Time can be purchased today. The maintenance
update for SUSE Linux Enterprise Real Time will be available in July. The
next generation release of SUSE Linux Enterprise Real Time is currently in
development. As with all SUSE Linux Enterprise products, customers with a
current subscription can upgrade to any released version at any time
without additional charge.
About Novell
Headquartered in Waltham, Mass., Novell, Inc. (Nasdaq: NOVL) --
http://www.novell.com/-- delivers Software for the Open
Enterprise. With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.
The company has offices in Australia, Argentina, Brazil, China, Hong Kong,
India, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea,
Taiwan and Thailand.
* * *
Novell, Inc.'s Subordinated Debt carries Moody's Investors
Service's 'B1' rating.
SITRONICS JSC: Inks US$8 Million TENNET Delivery Deal with MGTS
---------------------------------------------------------------
JSC SITRONICS and JSC Moscow City Telephone Network have signed a US$8
million agreement for the delivery of TENNET equipment, to be used in the
creation of MGTS's Next Generation Network. The delivery and assembly of
the equipment will start in the third quarter of 2007.
Within the framework of the agreement, SITRONICS Telecommunication
Solutions will deliver subscriber gateways for 200,000 transit ports, in
order to transfer existing analogue network subscribers to the newly
created NGN network. SITRONICS Telecommunication Solutions will supply
its own software and hardware switchboards for the management of
subscriber and trunk gateways. The trunk gateways previously delivered by
SITRONICS will be used to enable the existing network to function in
conjunction with the new NGN network.
“We continue modernizing the MGTS network infrastructure based on the
TENNET platform, which was recently introduced for NGN networks. We
intend to have 200,000 MGTS subscribers connected to the NGN network and
using the new services by March 2008,” Evgeny Maximenko, general director
of SITRONICS Telecommunication Solutions Russia, commented.
“The introduction of the TENNET equipment is the next stage in the
development of the NGN network. Approximately half of MGTS subscribers
are expected to switch to the NGN by 2012, when the reconstruction of the
network and the transition to digital technology will have been
completed,” Victor Alekhin, deputy general director of MGTS responsible
for the network technical development, commented.
About Sitronics
Headquartered in Moscow, Russia, JSC Sitronics (LSE: SITR) --
http://www.sitronics.com/-- provides telecommunications
solutions, IT solutions and microelectronic solutions in the CIS
region with a rapidly growing presence in other EEMEA markets.
Sistema controls the company.
The company also operates in Russia, CIS countries, Eastern Europe, Middle
East, Africa, India, and North America.
Sitronics' key Telecommunication Solutions operations are based in Prague,
Czech Republic and Athens, Greece, while the company's IT Solutions and
Microelectronic Solutions divisions are based in Kiev, Ukraine and
Zelenograd, Russia respectively.
For the twelve months ended December 31, 2006, Sitronics' revenues and
OIBDA were US$1.61 billion and US$183.6 million, respectively. As of Dec.
31, 2006, SITRONICS had total assets of US$1.65 billion.
* * *
As of May 24, 2007, JSC Sitronics carries Fitch's B- Long-Term
Issuer Default Rating.
TATA MOTORS: To Raise US$450 Million in International Market
------------------------------------------------------------
Tata Motors Ltd will raise US$450 million in the international market by
the issuance of Foreign Currency Convertible Alternative Reference
Securities. According to a regulatory filing with the Bombay Stock
Exchange, the funds will be used to meet the capital and product
development expenditure related to the company's growth projects in its
Commercial Vehicle Business Unit and Passenger Car Business Unit.
On June 21, 2007, Tata Motors said it has priced the issue of Foreign
Currency CARS aggregating to US$450 million excluding green shoe option.
The company will apply for the listing of the CARS on the Singapore Stock
Exchange.
The CARS will be convertible, at the option of the company, into either
Qualifying Securities (which may be in the form of depositary receipts
with restricted rights of withdrawal, representing underlying ordinary
shares, with differential rights as to dividend or voting) or ordinary
shares or American Depositary Shares. The CARS will be convertible at an
initial conversion price of INR960.96 per share, which is at a premium of
40% to the company's closing share price on the National Stock Exchange of
India Ltd as on June 20. The CARS are zero coupon and outstanding CARS,
if any, at maturity will be redeemable at a premium of 31.82% of the
principal amount.
The Issue was launched before market trading hours on June 21, 2007.
Citigroup acted as the sole global coordinator to the Issue with JP Morgan
being the joint book runner.
UTI BANK: Taps Citigroup & Goldman Sachs as Underwriters
--------------------------------------------------------
UTI Bank Ltd. has hired Citigroup and Goldman Sachs to handle its
US$600-million global depository receipt sale, Reuters reports, citing a
person familiar with the matter.
As reported by the Troubled Company Reporter – Asia Pacific, the bank
wants to raise US$1 billion in Tier I capital by way of issue of equity
shares not exceeding 4,23,97,400 shares, equity shares through depositary
receipts, or securities convertible into equity shares at the option of
the holder. Additionally, the bank intends to offer its promoters to
subscribe 3,19,25,561 shares on preferential allotment basis if they so
desire.
Analysts, according to Reuters, say that the funds from the proposed share
issuance will be used to meet capital requirements, as the bank like most
lenders in India are facing huge loan demand.
The pricing of the bank’s offer is expected on June 29, Reuters’ source said.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.com/-- is engaged in treasury and other
banking operations. The treasury services segment undertakes
trading operations on the proprietary account, foreign exchange
operations and derivatives trading. Revenues of the treasury
services segment primarily consist of fees and gains or losses
from trading operations and interest income on the investment
portfolio. Other banking operations principally comprise the
lending activities (corporate and retail) of the bank. The
corporate lending activity includes providing loans and
transaction services to corporate and institutional customers.
The retail lending activity includes raising of deposits from
customers and providing loans and advisory services to customers
through branch network and other delivery channels. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On November 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its US$1-billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2006, that Standard & Poor's Ratings Services maintained
its 'C' bank fundamental strength rating to the bank.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the rating is stable.
UTI BANK: To Explore Business Opportunities With J&K Bank
---------------------------------------------------------
UTI Bank and J&K Bank have signed a Memorandum of Understanding to exploit
jointly possible business opportunities in India and harness joint
capabilities for their mutual benefit, GK Kashmir reported in its online
edition.
The potential business opportunities that both banks wish to explore
reportedly relate to merchant banking such as debt and equity syndication.
“It also includes joint underwriting, derivative transactions, corporate
and financial restructuring advisory services and project advisory
services such as identification of new projects developing project
structure and project appraisal,” GK Kashmir added, quoting an unnamed J&K
spokesman.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.com/-- is engaged in treasury and other
banking operations. The treasury services segment undertakes
trading operations on the proprietary account, foreign exchange
operations and derivatives trading. Revenues of the treasury
services segment primarily consist of fees and gains or losses
from trading operations and interest income on the investment
portfolio. Other banking operations principally comprise the
lending activities (corporate and retail) of the bank. The
corporate lending activity includes providing loans and
transaction services to corporate and institutional customers.
The retail lending activity includes raising of deposits from
customers and providing loans and advisory services to customers
through branch network and other delivery channels. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On November 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its US$1-billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2006, that Standard & Poor's Ratings Services maintained
its 'C' bank fundamental strength rating to the bank.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the rating is stable.
VISTEON CORP: Construction Starts at New Missouri Assembly Plant
----------------------------------------------------------------
Visteon Corporation has begun building a manufacturing and assembly
facility in Eureka, Missouri, to support new business in North America
with automakers including Chrysler Group. The plant is expected to begin
production in the summer of 2008 and employ about 200 people by early
2009.
Visteon officially launched the project on June 20, 2007, in a ceremony at
the plant site in Eureka Commercial Park, located along I-44 about 20
miles southwest of St. Louis. The event was attended by representatives of
Visteon, the City of Eureka, the St. Louis County Economic Council and the
St. Louis Regional Chamber and Growth Association.
The Visteon plant initially will supply door panels, consoles and cockpits
to Chrysler Group's St. Louis North Assembly Plant.
Visteon President and Chief Operating Officer Donald J. Stebbins said the
new plant supports Visteon's three-year plan to restructure, improve base
operations and grow the business.
"Our significant business growth requires us to add strategic
manufacturing capacity, and we're pleased to be creating new jobs in
Missouri," Mr. Stebbins said. "This project demonstrates the confidence
our customers are placing in Visteon to meet their quality, delivery and
cost requirements for vehicle systems."
The new Missouri facility will use innovative manufacturing processes
designed to deliver interior products for in-sequence, just-in-time
installation in vehicles. Visteon's products and production processes are
designed to reduce tooling costs, cycle time and scrap, while promoting
recyclability.
Julie Fream, vice president of Visteon's North America customer groups,
commended the efforts of state, regional and local officials in helping
Visteon select the site. Visteon received property tax abatements, payroll
tax incentives and training grants for the new facility.
"We are very appreciative of the assistance and support received from the
Missouri Department of Economic Development, the St. Louis County Economic
Council and the St. Louis Regional Chamber and Growth Association," Ms.
Fream said.
"Business growth is a key component of Visteon's improvement plan," she
added. "Through the commitment of our employees and the cooperation of
state and local governments, this will be a cost-competitive manufacturing
operation that will effectively serve our customers, while creating
opportunities for our employees and the local community."
Eureka Mayor Kevin M. Coffey welcomed Visteon's decision to build in the
community. "We are pleased to have a global company of Visteon's caliber
choose our community for its new manufacturing plant, and we look forward
to the new jobs and economic stimulus that this new facility will
generate," Mr. Coffey said.
"I am extremely pleased to welcome Visteon Corporation to St. Louis
County,” St. Louis County Executive Charlie A. Dooley said.
“This commitment to our community is exciting and welcome news."
Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers. The company has more than 170
facilities in 24 countries and employs around 50,000 people.
With corporate offices in the Michigan (U.S.); Shanghai, China; and
Kerpen, Germany; the company has more than 170 facilities in 24 countries,
including Mexico and India, and employs approximately 50,000 people.
At March 31, 2007, the company's balance sheet showed a
stockholders' deficit of US$106 million, compared to a deficit of US$188
million at Dec. 31, 2006.
* * *
As reported in the Troubled Company Reporter on April 10, 2007,
Fitch Ratings has taken these actions regarding the ratings of
Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior
Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured
downgraded to 'CC/RR6' from 'CCC-/RR5'.
VISTEON CORP: To Close Bedford Plant; 685 Jobs Slashed
------------------------------------------------------
Visteon Corp. plans to close its plant in Bedford, Indiana on April 2008,
slashing 685 jobs in the process, according to various reports.
Reports say that the move is part of the company’s three-year
restructuring plan that will cease making auto parts and assembling
fuel-delivery modules, but instead concentrate on producing auto
interiors, climate controls and electronics.
The plant is among the 30 plants Visteon plans to shutter, fix or sell
through 2009, Visteon spokesman Jim Fisher relates.
Severance payment discussions between Visteon and union representatives
are anticipated to be soon, various sources reports.
In September 2007, Visteon will seal up its auto-parts plant in
Connersville, Indiana, consequently, displacing 890 employees.
As reported in the Troubled Company Reporter on Nov. 6, 2006,
Visteon expected that the restructuring will generate up to
US$75 million of annual savings when completed. The company continues to
evaluate alternatives and solutions for the remaining facilities,
including divestitures, that yield acceptable returns to the company.
Based in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers. The company has more than 170
facilities in 24 countries and employs around 50,000 people.
With corporate offices in the Michigan (U.S.); Shanghai, China; and
Kerpen, Germany; the company has more than 170 facilities in 24 countries,
including Mexico and India, and employs approximately 50,000 people.
At March 31, 2007, the company's balance sheet showed a
stockholders' deficit of US$106 million, compared to a deficit of US$188
million at Dec. 31, 2006.
* * *
As reported in the Troubled Company Reporter on April 10, 2007,
Fitch Ratings has taken these actions regarding the ratings of
Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior
Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured
downgraded to 'CC/RR6' from 'CCC-/RR5'.
WIENERBERGER AG: Takes Control of Baggeridge Via Stake Purchase
---------------------------------------------------------------
Wienerberger AG owns or has bought about 1.12 million shares in Baggeridge
Brick PLC, raising its stake to about 18.60 million shares or 45.04
percent, Hemscott reports.
The share purchase sees Wienerberger holding a controlling stake in the
U.K. company and effectively positions it over its chief competitor,
Michelmersh Brick Holding Plc of the U.K., the report says.
The Austrian company lifted its offer to 247 pence a share to attract
further sellers, prompting Michelmersh to back out, Bloomberg News
relates.
"We are very pleased finally to have agreed to secure a controlling
stake," Wienerberger CEO Wolfgang Reithofer said in a Regulatory News
Service statement. "We are confident that we can accelerate the positive
closing of this acquisition and quickly integrate and develop Baggeridge
within our group."
About Wienerberger AG
Headquartered in Vienna, Austria, Wienerberger AG --
http://www.wienerberger.com/-- is the world's largest brick manufacturer
and Europe's second-largest producer of roof tiles. In 2005, the company
generated sales of around EUR2 billion. The company has operations in the
United States and India.
* * *
On Jan. 22, 2007, Moody's Investors Service assigned a provisional (P)Ba1
rating to Wienerberger's proposed issuance of subordinated perpetual
securities by Wienerberger AG and at the same time affirmed its Baa2
rating for its senior unsecured debt. Moody's said the outlook is stable.
WIENERBERGER AG: Expands Dutch Operations with Korevaar Purchase
----------------------------------------------------------------
Wienerberger AG is continuing its expansion strategy in the Netherlands
and also strengthening its position on the rapidly growing clay paver
market with the acquisition of Korevaar, a Dutch building materials
producer. The parties have agreed not to disclose any information on the
purchase price for this transaction.
Heimo Scheuch, member of the Managing Board of Wienerberger AG with
responsibility for North-West Europe, explained the rational for this
investment: “The acquisition of the third largest clay paver producer in
the Netherlands will increase our production capacity in this product area
and also expand our portfolio. Additionally, we will organically grow our
brick and roof tile business over the coming years. The clay pavers
segment nearly doubled in volume from 185 to 330 million units between
2000 and 2006, and we expect further growth over the mid-term. With this
product we intend to concentrate not only on the market for public
infrastructure projects but, in particular, on private construction.”
The production capacity of Korevaar's two plants totals 80 million WF (=
standard format for facing bricks). Roughly 85% of this capacity is used
to produce pavers and the remaining 15% for facing bricks. The necessary
approvals have already been received to expand capacity at Schipperswaard.
In addition, Korevaar also owns sufficient clay reserves as well as the
sales unit Bos & Vermeer.
“The capability of these plants to produce both clay pavers and facing
bricks will give us greater flexibility in allocating production. We also
see a significant potential for synergies as well as future investments
through our bolt-on program, which will make it possible for us to further
expand our market positions and product portfolio for our customers over
the long-term,” added Mr. Scheuch in conclusion.
The Netherlands represents the third largest single market for
Wienerberger AG, and generates 10% of Group revenues. The acquisition of
Korevaar forms a part of the profitable Wienerberger growth program, which
is expected to exceed EUR400 million in 2007.
About Korevaar
Korevaar was founded in 1925 and is one of the largest clay paver
producers in the Netherlands. The company’ headquarters is located in the
foreland of the Waal River and its production facilities are in
Zennewijnen near Tiel and Schipperswaard in the Neder Betuwe region. The
Dutch company generated revenues of roughly EUR26.5 million and EBITDA of
EUR3.5 million in 2006 with 74 employees.
About Wienerberger AG
Headquartered in Vienna, Austria, Wienerberger AG --
http://www.wienerberger.com/-- is the world's largest brick manufacturer
and Europe's second-largest producer of roof tiles. In 2005, the company
generated sales of around EUR2 billion. The company has operations in the
United States and India.
* * *
On Jan. 22, 2007, Moody's Investors Service assigned a provisional (P)Ba1
rating to Wienerberger's proposed issuance of subordinated perpetual
securities by Wienerberger AG and at the same time affirmed its Baa2
rating for its senior unsecured debt. Moody's said the outlook is stable.
=================
I N D O N E S I A
=================
BANK MANDIRI: Unit to Invest in Sharia Mutual Funds
---------------------------------------------------
PT Bank Mandiri's unit, Bank Syariah Mandiri, in line with the growing
acceptance of sharia-based products, is expecting investments in its
sharia mutual funds to grow by more than 400%, The Jakarta Post reports.
The report notes that Abiprayadi Riyanto, Bank Syariah Mandiri\s president
director, said that they expect to see an increase from IDR19 billion as
of May to between IDR100 billion and IDR200 billion by the end of the year
as there is still a large, untapped market for sharia fund products.
The total value of investments in sharia mutual funds currently stand at
only IDR800 billion, the report relates.
The report says that Sharia mutual funds are currently offered by around
12 financial institutions.
Bank Syariah expects to see an increase of 50% in the total amount of
money invested in sharia mutual funds from
IDR800 billion at the moment to IDR1.2 trillion by the end of this year,
the The Post notes.
Bank Syariah Mandiri acts as sales agent for the Mandiri Investa Syariah
Berimbang sharia mutual fund, which is managed by Mandiri Manajemen
Investasi, with Deutche Bank as custodian, the report adds.
About Bank Mandiri
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
The Troubled Company Reporter - Asia Pacific reported on May 8,
2007, that Moody's Investors Service revised some ratings of
Indonesia's Bank Mandiri as part of the application of the
agency's refined joint default analysis and updated bank
financial strength rating methodologies. The specific ratings
changes are:
* BFSR is changed to D- from E+.
-- This action also concludes a review for possible
upgrade on the BFSR initiated on August 1, 2006.
* Foreign Currency Deposit Ratings are unchanged at B2/Not
Prime.
* Foreign Currency Debt Rating for senior and 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
The bank also carries Fitch Ratings: Long- term foreign and
local currency Issuer Default ratings at 'BB-', Short-term
rating at 'B', National Long-term rating at AA(idn)', Individual
at 'D', and Support at '4'. The Outlook for the ratings was
revised to Positive from Stable.
CA INC: Buys Back 16.9-Million Common Shares
--------------------------------------------
CA Inc. has repurchased approximately 16.9 million common shares, or 3
percent of its outstanding common shares, at a cost of about US$435
million.
The repurchase was executed under an accelerated share repurchase (ASR)
agreement with a third-party financial institution and was funded with
existing cash. The Company is authorized to repurchase up to $500 million
in common shares under the ASR agreement. The ASR is part of the
Company's previously announced $2 billion share repurchase plan.
The ASR provides CA with immediate delivery of the common shares. The
third-party financial institution is expected to purchase an equivalent
number of common shares in the open market during the term of agreement.
The initial price of the accelerated share repurchase is subject to an
adjustment based on the volume weighted average price of CA's common
shares during this period. As a result, the Company may receive
additional common shares at the termination of the program. The program
is expected to terminate on or before December 6, 2007. The Company does
not plan to make additional share repurchases during this period.
About CA Inc.
Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management software
company that unifies and simplifies the management ofenterprise-wide IT.
Founded in 1976, CA serves customers in more than 140 countries. In
Asia-Pacific, the company has operations in Indonesia, Australia, China,
Japan, Hong Kong, India, Philippines and Thailand.
* * *
The Troubled Company Reporter - Asia Pacific reported on Jun 08, 2007,
that Standard & Poor's Rating Services affirmed its 'BB' corporate credit
and senior unsecured debt ratings on Islandia, New York-based CA Inc.
At the same time, S&P revised the outlook to stable from negative.
On Feb. 7, 2007, Moody's Investors Service commented that it is
maintaining the negative outlook for CA Inc. following the company's
fiscal third quarter 2007 earnings reported yesterday evening.
TCR-AP noted that "CA's fiscal third quarter results provide evidence of
its bookings and billings growth, reversing previous negative trends"
commented John Moore, VP/Senior Analyst. "Moody's is monitoring CA's
negative rating outlook pending further evidence of organic business
growth" Moore added.
In connection with Moody's Investors Service's implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology for the
U.S. Technology Software sectors this week, the rating agency confirmed
its Ba1 Corporate Family Rating for
CA, Inc.
Additionally, Moody's revised or held its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond debt
obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$350 Million
6.5% Senior
Unsecured Notes
due 2008 Ba1 Ba1 LGD4 54%
US$1 Billion
Senior Global
Notes due 2011 Ba1 Ba1 LGD4 54%
US$460 Million
Convertible
Senior Unsecured
Notes due 2009 Ba1 Ba1 LGD4 54%
FOSTER WHEELER: Apponts Lisa Zardet Wood as VP & Controller
-----------------------------------------------------------
Foster Wheeler Ltd.'s board of directors has elected Lisa Zardet Wood, 40,
to the position of vice president & controller, effective immediately.
Wood, who had most recently served as the chief accounting officer for
Foster Wheeler, Inc., a wholly owned subsidiary of the company, replaces
Brian Ferraioli, who has resigned to pursue other employment
opportunities.
Wood joined a subsidiary of the company in 1997 as deputy chief auditor
and subsequently held positions of increasing responsibility in the
finance department before assuming the role of chief accounting officer in
2003. Prior to joining Foster Wheeler, she was with Deloitte & Touche for
nine years, ultimately serving as accounting and auditing manager. Wood
has a Bachelor of Science degree in accounting from DeSales University.
She is a Certified Public Accountant.
The company has named Edward G. Carr, 38, to succeed Wood as FWI’s chief
accounting officer. Carr was most recently director of SEC reporting, a
position he has held since he joined Foster Wheeler in 2004. Prior to
that, he was director of corporate finance for Intelligroup, Inc. for five
years. His background also includes seven years as an audit manager with
Ernst & Young. Carr holds a Master of Science degree in Accounting and a
Bachelor of Science degree in Business Administration/Accounting, both
from West Virginia University. He is a Certified Public Accountant.
“We are fortunate to have individuals as talented and knowledgeable as
Lisa and Ed to step into these positions,” said John T. La Duc, executive
vice president & chief financial officer. “They both have been an
integral part of the company’s transformation over the past several years
as Foster Wheeler strengthened its balance sheet, adopted new internal
controls associated with Sarbanes-Oxley, and implemented efficient and
disciplined procedures for the timely consolidation, analysis, and
reporting of financial information. We expect a seamless transition, and
we are confident that Lisa and Ed will maintain the company’s ‘best in
class’ practices in financial reporting.”
About Foster Wheeler
With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services. Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.
The company has offices in China, India, Indonesia, Malaysia,
Singapore, Thailand, and Vietnam.
* * *
As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services raised its ratings on Foster
Wheeler Ltd., including its corporate credit rating to 'BB' from
'B+'. The Clinton, New Jersey-headquartered engineering and
construction company had total reported debt of approximately
US$203 million at Dec. 29, 2006. The outlook is stable.
Asbestos Management Program
The company recorded a net gain from its asbestos management
program in 2006 of US$100.1 million, reflecting a US$115.6
million gain from four insurance settlements and the successful
appeal of a court decision in the company's pending asbestos-
related insurance coverage litigation, and a US$15.5 million
charge in the fourth quarter of 2006 resulting from the
company's year-end update of its 15-year estimate of its
asbestos liabilities and related assets.
LIPPO KAWARACI: UBS AG Buys 905,570,540 Shares
----------------------------------------------
PT Lippo Karawaci Tbk disclosed that UBS AG, Singapore has bought
905,570,540 shares of the Company at IDR1,510 per share on June 7, 2007,
Reuters reports.
About Lippo Karawaci Tbk
PT Lippo Karawaci Tbk -- http://www.lippokarawaci.co.id/-- is
one of the largest property developers in Indonesia with a
market capitalization of over USD550 million. As of end-2005,
it possessed a huge land bank reserve of 2,079 hectares. The
Company also operates four hospitals and four hotels in
Indonesia.
The Troubled Company Reporter -- Asia Pacific reported on
November 24, 2006, that Moody's Investors Service changed to
negative from stable its outlook on PT Lippo Karawaci Tbk's B1
corporate family rating and the B1 senior unsecured bond rating
of Lippo Karawaci Finance BV and guaranteed by LK.
Standard & Poor's Ratings Services said its ratings on PT Lippo
Karawaci Tbk. (B+/Stable/--) was not affected by the company's
decision to sell its entire interest in a property development
project in Singapore.
MEDCO ENERGI: To Issue US$300 Million Worth of Bonds
----------------------------------------------------
PT Medco Energi Internasional plans to issue US$300 million bonds in the
fourth quarter of 2007 to finance its oil and gas business as well as to
refinance some of its debt, Reuters reports.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of, and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 21, 2006, that Standard & Poor's Ratings Services affirmed
its 'B+' corporate credit rating on Medco Energi. The outlook
remains negative. According to S&P, the negative outlook on
Medco reflects the company's weak financial profile due to its
increased debt burden to fund its aggressive capital
expenditure.
In a TCR-AP report on Aug. 16, 2006, Moody's Investors Service
changed the outlook on Medco Energi's ratings to negative from
stable. The ratings affected by the outlook change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
=========
J A P A N
=========
ALITALIA SPA: MatlinPatterson Rejoins Stake Race Sans Partners
--------------------------------------------------------------
The Italian Finance Ministry has allowed MatlinPatterson Global Advisers
LLC to submit a binding offer for Italy's 39.9% stake in Alitalia S.p.A.,
various reports say.
The fund was part of the consortium of TPG Capital and Mediobanca S.p.A.
that, along with rivals OAO Aeroflot-Unicredito Italiano S.p.A. and AirOne
S.p.A. and Intesa-San Paolo S.p.A., qualified for the final round of
bidding for a majority stake in Alitalia.
MatlinPatterson's consortium, however, pulled out its bid, saying it was
not "in a position to comply with all of the requirements," which it
described as "too complex and cryptic." A source close to the consortium
told the Wall Street Journal that the group was apprehensive it could not
meet the July 2 deadline for submission of final offers and business plan.
In an e-mailed statement to Bloomberg News, the Finance Ministry said
MatlinPatterson “confirmed its interest in accessing
Alitalia's data room and starting due diligence aimed at presenting a
binding offer.”
Italy, which is selling a minimum of 39.9% stake in Alitalia, gave the
bidders until 5:00 p.m. on July 2 to present their binding offers.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for passengers and
air transport of cargo on national, international and inter-continental
routes. The company also operates in Argentina, China, and Japan.
The Italian government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million in 2000
and 2001 respectively. Alitalia registered EUR93 million in net profits
in 2002 after a EUR1.4 billion capital injection. The carrier booked
consecutive annual net losses of EUR520 million in 2003, EUR813 million in
2004, and EUR168 million in 2005.
BLACKBOARD INC: Closed Sale of US$165MM Convertible Sr. Notes
--------------------------------------------------------------
Blackboard Inc. has closed its sale of US$165 million aggregate principal
amount of 3.25% Convertible Senior Notes due 2027, pursuant to an
automatically effective registration statement filed with the Securities
and Exchange Commission on June 13, 2007.
The aggregate principal amount of notes sold reflects the full exercise by
the underwriters of their option to purchase
$15 million aggregate principal amount of notes to cover over-allotments.
The notes are convertible into cash or a combination of cash and
Blackboard common stock at an initial base conversion rate of 15.4202
shares of Blackboard common stock per US$1,000 principal amount of notes.
The base conversion rate represents an initial base conversion price of
approximately US$64.85, which is a 62% premium to the closing price of
Blackboard's common stock on
June 14, 2007.
In addition, if at the time of conversion the applicable price of
Blackboard's common stock exceeds the base conversion price, the
conversion rate will be increased by up to an additional 9.5605 shares of
Blackboard common stock per US$1,000 principal amount of notes, as
determined pursuant to a specified formula. In general, upon conversion
of a note, the holder of such note will receive cash equal to the
principal amount of the note and Blackboard common stock for the note's
conversion value in excess of such principal amount.
The notes bear interest at a rate of 3.25% per annum from the date of
issuance, payable semi-annually on January 1 and July 1, commencing on
Jan. 1, 2008. The notes will mature on July 1, 2027, and may not be
redeemed by Blackboard prior to July 1, 2011, after which they may be
redeemed at 100% of the principal amount plus accrued interest. Holders
of the notes may require Blackboard to repurchase some or all of the notes
on July 1, 2011, July 1, 2017, and July 1, 2022, or in the event of
certain fundamental change transactions, at 100% of the principal amount
plus accrued interest.
The sole book-running manager of the offering is Credit Suisse Securities
(USA) LLC and Citi is serving as the sole co-manager. A copy of the
prospectus and prospectus supplement meeting the requirements of Section
10 of the Securities Act of 1933 may be obtained from:
Credit Suisse Securities Prospectus Department
One Madison Avenue, Level 1B
New York, NY 10010
About Blackboard Inc.
Headquartered in Washington, D.C., Blackboard Inc. (Nasdaq: BBBB) provides
enterprise software applications and related services to the education
industry. Founded in 1997, Blackboard enables educational innovations
everywhere by connecting people and technology. With two product suites,
the Blackboard Academic Suite(TM) and the Blackboard Commerce Suite(TM),
Blackboard is used by millions of people at academic institutions around
the globe, including colleges, universities, K-12 schools and other
education providers, as well as textbook publishers and student-focused
merchants that serve education providers and their students. Blackboard
is headquartered in Washington, D.C., with offices in the Netherlands,
Australia, China, Japan, and Canada.
* * *
Moody’s Investors Services assigned 'Ba3' on Blackboard Inc.’s long term
corporate family rating and bank loan debt rating on Nov. 11, 2007. The
outlook is stable.
Standard and Poor’s rated the company’s long term foreign and local issuer
credit rating at 'B+' on Nov. 15, 2006.
CATALYST PAPER: S&P Rates Proposed US$200 Million Notes at B+
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' debt rating to
Catalyst Paper Corp.'s proposed US$200 million unsecured notes due 2017,
being offered pursuant to Rule 144a. Proceeds from the notes will be used
for general corporate purposes, including various investments and
acquisitions as the company focuses on cost reduction, productivity
enhancement, and industry consolidation.
The corporate credit rating on Catalyst is 'B+'. The rating outlook is
negative. After giving effect to the proposed notes, the company will
have about CDN$1.3 billion of pro forma March 31, 2007, fully adjusted
debt.
The ratings reflect Catalyst's high debt leverage and exposure to the
declining North American newsprint market and the cyclical specialty
papers and pulp business. These risks are partially offset by its strong
market position in newsprint and specialty groundwood papers along the
west coast of North America and its improving productivity.
Ratings List
Catalyst Paper Corp.
Corporate credit rating B+/Negative/--
Bank loan rating BB (Recovery rtg: 1)
Senior unsecured B+
Ratings Assigned
$200 million unsecured notes B+
The company sells in Japan, the United Kingdom and Latin America.
FRESENIUS MEDICAL: Plans US$500 Million Senior Notes Offering
-------------------------------------------------------------
Fresenius Medical Care AG & Co. KGaA intends to sell approximately US$500
million senior unsecured notes. Proceeds from the offering will be used
to reduce the company’s debts under its senior secured bank credit
facility, short-term debt, and for general corporate purposes. The
company expects to complete the offering at the beginning of July 2007.
The notes will be offered mainly to US institutional investors.
The proposed offering will not be registered under the Securities Act of
1933, but will be offered in the United States pursuant to an exemption
from registration under Rule 144A as well as outside the United States
under Regulation S.
About Fresenius
Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG
(Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS/P) --
http://www.fmc-ag.com/-- provides products and services for individuals
undergoing dialysis because of chronic kidney failure, a condition that
affects more than 1,500,000 individuals worldwide. Fresenius Medical Care
also provides dialysis products such as hemodialysis machines, dialyzers
and related disposable products. Through its network of around 2,194
dialysis clinics in North America, Europe, Latin America, Asia-Pacific and
Africa, Fresenius Medical Care provides dialysis treatment to around
128,200 patients around the globe. Fresenius AG holds around 37% of
Fresenius Medical Care AG & Co. KgaA's capital.
The company also operates facilities in Australia, Brazil, Canada, China,
France, Korea, Mexico, Portugal and Sweden, among others.
* * *
The company carries Moody's Investors Service's Ba2 corporate family rating.
JAPAN AIRLINES: To Cut 4,300 Jobs a Year Earlier Than Expected
--------------------------------------------------------------
Japan Airlines International Company, Limited, said that it will cut about
4,300 jobs a year earlier than announced in February in order to speed up
its revival and reduce costs, the Associated Press reports.
JAL spokesman Soichi Yatsugi revealed to AP that the reason for this
action is that the airline needs to speed up its restructuring measures.
However, Mr. Yatsugi said that they still don’t have a target date for
this.
The 4,300 jobs is composed 8% of the total workforce of JAL and by cutting
these, the airline can save about JPY50 billion a year, relates AP.
JAL, the article recounts, is not only suffering from its JPY1.7-trillion
debt, it is also suffering from a tough competition with rival All Nippon
Airways Co., Limited.
In a Troubled Company Reporter - Asia Pacific report on June 7, 2007, JAL
was told by one of its main creditors, Development Bank of Japan, to
implement more restructuring programs before it will give its financial
support to the company.
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.
KOBE STEEL: To Develop ITmk3 Process with Cleveland-Cliffs
----------------------------------------------------------
Kobe Steel, Ltd. has formed an alliance with Cleveland-Cliffs Inc to
market Kobe Steel's revolutionary ITmk3 ironmaking process.
ITmk3 is an efficient and economical method of producing high-purity iron
nuggets for steelmaking.
The agreement, which has a 10-year term, enables the two companies to
collaborate in commercializing the ITmk3 Process. Cleveland-Cliffs is
granted a non-exclusive license to use the ITmk3 process and is able to
freely promote ITmk3 projects mainly in the United States, Canada, Brazil
and Australia. Kobe Steel will provide technical support for project
promotion and development.
With the formation of the alliance, Cleveland-Cliffs and Kobe Steel also
agreed to develop a commercial-scale ITmk3 plant, with an annual
production capacity of 500,000 metric tons, on a joint venture basis as
strategic partners at one of Cleveland-Cliffs? United States mining
properties. Cleveland-Cliffs and Kobe Steel will conduct feasibility
studies and undertake the necessary environmental permitting for potential
sites. The timing of this project and the site location will ultimately
depend on permitting issues.
"Our alliance is aimed at expanding the use of the ITmk3 Process in major
iron ore-producing countries worldwide," said Shohei Manabe, General
Manager and head of Kobe Steel's Iron Unit Division. "ITmk3 offers an
attractive alternative for mineral processing. For steelmakers planning
to expand capacity and mining companies seeking to broaden their product
range, the ITmk3 Process holds the promise of a cost-effective method of
producing high-quality iron units for steelmaking," he said.
Commenting on the new alliance, Cliffs Chairman, President and Chief
Executive Officer Joseph A. Carrabba stated: "We have been very interested
in this technology since successfully testing the process in a pilot plant
located at our Northshore facility. The alliance with Kobe moves us
closer to realizing our mutual goal of commercializing and exploiting this
innovative process.
ITmk3 (pronounced "Eye-Tee Mark Three") is an innovative technology that
provides a flexible and environmentally friendly process for producing
iron nuggets. Consisting of 96% to 97% iron and 2.5% to 3.0% carbon, the
iron nuggets are equivalent in quality to blast furnace pig iron.
About the ITmk3 Process
* In the ITmk3 Process, iron ore fines and pulverized coal
are formed into solid "green" or raw pellets. These
pellets are fed into a rotary hearth furnace and heated to
1,300- 1,450 degrees C. At this temperature range, the
pellets are reduced and melted, enabling the iron to
cleanly separate from the slag.
* The ironmaking process takes only about 10 minutes. In
comparison, blast furnace ironmaking takes 8 hours, while
direct reduction can take 6 hours.
* The resulting product is iron in nugget form. The iron
nuggets can then be fed to melting furnaces for refining
into steel.
* Energy efficient and environmentally friendly, the ITmk3
Process emits 20% less carbon dioxide than blast furnace
operations.
* Capital investment is projected at roughly half the cost of
conventional ironmaking technologies. On the same scale,
initial capital investment of an ITmk3 plant is estimated
to be about half the initial investment cost of a blast
furnace with associated facilities, including coke ovens as
well as oxygen generation and supply equipment.
About Kobe Steel
Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel, Ltd. --
http://www.kobelco.co.jp/english/corp/index.html-- is one of Japan's
leading steel makers, as well as the top supplier of aluminum and copper
products. Other businesses include welding consumables, urban
infrastructure and plant engineering services, and industrial machinery.
Kobe Steel has offices in New York, Singapore, Bangkok and Beijing.
As the Troubled Company Reporter - Asia Pacific reported on
May 31, 2006, Fitch Ratings upgraded the long-term foreign and local
currency Issuer Default Ratings of Japanese steel-maker Kobe Steel to BB+
from BB. At the same time, the agency affirmed Kobelco's short-term IDR
at B. The outlook on the ratings is positive.
* Bingham Expands in Japan with Addition of 22-lawyer Tokyo Firm
----------------------------------------------------------------
Bingham McCutchen LLP, a 1,000-lawyer U.S. firm with global capabilities,
announces that it will combine with New Tokyo
International Law Office, a premier insolvency, corporate and litigation
firm of approximately 22 lawyers. The combination will increase the
number of lawyers in Bingham's Tokyo office to more than 50 Japanese
lawyers and six foreign lawyers.
The combination with New Tokyo, founded by Mitsue Aizawa and Yutaka
Kimura, expands Bingham's on-the-ground capacity in Asia and further
bolsters its renowned cross-border restructuring and insolvency practice.
The New Tokyo firm is also known for its corporate finance practice,
representing major corporations, financial institutions, insurance
companies and investment banks. Earlier this year, Bingham combined with
another leading restructuring firm, Sakai & Mimura, founded by Hideyuki
Sakai, with approximately 20 Japanese lawyers (bengoshi).
"We're creating a client-driven leading restructuring, financial
services and corporate firm with solid resources in Japan, further
expanding Bingham's global reach," said Bingham Chairman Jay S. Zimmerman,
noting that the opening of Japanese financial markets has spurred
exceptional activity, fueling corporate deals and intellectual property
transactions.
Most recently, Bingham's Tokyo office represented Calpis in its US$900
million acquisition by Ajinomoto, two major players in Japan's food and
beverage industry. "Bingham is positioned to accommodate clients based in
Japan and those conducting business there," said Zimmerman.
Aizawa noted that legacy New Tokyo clients are increasingly thinking of
overseas strategies. "We want to be able to provide our clients the
global backup they need," she said. "By joining Bingham, we are
increasing our ability to provide one-stop services in the corporate and
corporate compliance area. Moreover, our depth of practice in insolvency
and the insurance area combined with Bingham's insolvency proficiency
gives us tremendous strength."
The addition of the New Tokyo firm, with its 22 Japanese lawyers, and the
pending arrival of 10 new Japanese lawyers to Bingham's Tokyo office later
this year, will bring Bingham's number of bengoshi to more than 50, among
the highest for foreign law firms in Japan. In addition, Bingham's
Japanese Practice, with its 50 lawyers outside of Japan, focuses on
large-scale, cross-border financial restructurings, corporate/M&A and
finance matters, and has significant intellectual property, antitrust and
litigation strengths.
The combination will take effect on or around October 1, the anticipated
completion date of Bingham's new and expanded Tokyo office space.
(Pursuant to Japanese bar rules, lawyers from both firms must occupy the
same space in order to combine officially.)
With lawyers in 13 offices, Bingham, www.bingham.com, is known worldwide
for its legal work in complex financial and corporate transactions,
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=========
K O R E A
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AGERE SYSTEMS: Moody’s Withdraws B1 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has withdrawn the B1 corporate family rating of
Agere Systems Inc. as well as the B1 rating of its
US$362 million subordinated convertible debt, for business purposes.
Ratings Withdrawn:
-- Corporate Family Rating at B1
PDR: Ba3
-- US$362 million subordinated convertible debt at B1, LGD4,
68%
Agere Systems Inc. (NYSE: AGR) -- http://www.agere.com/-- provides
semiconductors and software solutions for storage, mobility, and
networking markets. The company's products enable a broad range of
services and capabilities, from cell phones, PCs, and hard disk drives to
the world's most sophisticated wireless and wireline networks. Agere's
customers include manufacturers of consumer electronics and communications
and computing equipment.
The company has offices in China, the U.K., Korea and Sweden.
KOOKMIN BANK: Opens Office in Kazakhstan
----------------------------------------
Kookmin Bank opened a representative office in Almaty, Kazakhstan's
commercial capital, as a bridgehead for its advancement into the Central
Asian region, Antara News reports.
The report relates that Kim Ki-hong, Kookmin’s executive vice president,
said that they are pleased to have established a representative office in
Almaty for the first time among Korean banks.
The Almaty office will be manned by two Kookmin officials and one local
employee. The office's task is to gather information on the bank's
preparation for its future operations in the Central Asian nation.
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, that Moody's Investors Service, as part of the application of its
refined joint default analysis and updated bank financial
strength rating methodologies, revised 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.
HYNIX SEMICON: Prices US$500MM Senior Unsecured Fixed Rate Bond
---------------------------------------------------------------
Hynix Semiconductor Inc has priced a US$500 million senior unsecured fixed
rate 10-year bond offering at 7.875% to redeeming another US$500 million
in senior notes due in 2012, Forbes News reports.
According to the report, the offering was oversubscribed 12 times amid
strong institutional support. The bonds are callable after five years.
The company appointed Citigroup, Credit Suisse, Goldman Sachs, Korea
Development Bank and Merrill Lynch acted as joint bookrunners and lead
managers for the offering, the report adds.
About Hynix Semiconductor
Headquartered in Echon, South Korea, Hynix Semiconductor Inc.
-- http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access memory
chip production capacity as well as the industry's best technical
development capacity by fully exploiting synergies resulting from the
historical integration of both companies.
The Troubled Company Reporter - Asia Pacific reported on Jun 19, 2007,
Moody's Investors Service upgraded to Ba2 from Ba3 Hynix
Semiconductor Inc's senior unsecured bond rating and corporate
family rating.
At the same time, Moody's assigned a Ba2 senior unsecured bond
rating for Hynix's proposed US$500 million issuance. The
outlook for the ratings is stable. This concludes the
review for possible upgrade commenced on May 23, 2007.
On Jun 14, 2007, Standard & Poor's today assigned its 'BB-' rating on
Hynix Semiconductor Inc.'s proposed US$500 million global bonds maturing
in 2017, which will replace the currently rated seven-year notes issued in
2005. The rating on the senior unsecured notes is subject to final
documentation
TCR-AP reported on Jun 14, 2007, that Fitch Ratings has assigned an
expected rating of 'BB' to the proposed issue of US$500 million senior
unsecured notes due 2017 by Hynix Semiconductor Inc.
===============
M A L A Y S I A
===============
KUMPULAN BELTON: Posts MYR1.71MM Net Loss in Quarter To Mar. 31
---------------------------------------------------------------
Kumpulan Belton Bhd incurred a net loss after tax of
MYR1.71 million on MYR10.54 million of sales in the first quarter ended
March 31, 2007, compared with a net loss after tax of MYR2.12 million on
MYR11.39 million of sales in the same period in 2006.
As of March 31, 2007, the company’s unaudited balance sheet showed
strained liquidity with current assets of MYR54.28 million, available to
pay current liabilities of MYR96.15 million.
Kumpulan’s balance sheet as of March 31, 2007, also showed total assets of
MYR97.65 million and total liabilities of
MYR97.61 million. Shareholders’ equity in the company totaled MYR1.25
million.
Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton Berhad --
http://www.beltongroup.com/-- manufactures and sells automotive
suspension parts and components. Other activities include property
development and investment, provision of machining and heat
treatmentservices and investment holding. Operations of the Group are
carried out in Malaysia and Australia.
Kumpulan Belton was identified as an affected listed issuer of Practice
Note 17, as its consolidated shareholders' equity as of December 31, 2005,
was less than 25% of its issued an paid up capital. As an affected
issuer, the Company is required to submit a Regularization Plan to the
relevant authorities for approval and implement the Regularization Plan
within the timeframe stipulated by the relevant authorities.
MANGIUM INDUSTRIES: Commission Rejects Extension Request
--------------------------------------------------------
The Companies Commission of Malaysia denied Mangium Industries Bhd's
request to extend the time for it to hold its Annual General Meeting and
to table its Audited Financial Statements for the year ended
Dec. 31, 2006.
The company is required to hold its AGM and file its 2006 annual report on
or before June 30, 2007.
In a disclosure with the Bursa Malaysia Securities Bhd, the company said
that it may fail to meet its requirements mainly because its Audited
Financial Statements, on consolidated basis, was only finalized on June 6,
2007, due to delays in finalizing the financial results of its
subsidiaries to ensure compliance with the new revised Financial Reporting
Standards.
Mangium Industries Berhad's principal activities are the manufacturing and
trading of timber and timber related products. Other activities include
provision of printing services, publisher, printer consultants and
advertisers, trading of alcoholic beverages, general trading of office
furniture, operation and development of the plantation and investment
holding. Operations of the Group are carried out in Malaysia.
The Troubled Company Reporter – Asia Pacific on May 25, 2007, reported
that Mangium Industries on May 22, 2007, became an affected listed issuer
pursuant to the provisions of Amended Practice Note 17/2005, as its
shareholders' equity on consolidated basis is less than 25% of its issued
and paid-up capital. As an affected listed issuer, Mangium is required to
formulate and implement a plan to regularize its financial condition
within a timeframe stipulated by relevant authorities.
MANGIUM INDUSTRIES: 2007 1st Quarter Net Loss Totals MYR2.87MM
--------------------------------------------------------------
Mangium Industries Bhd posted a net loss of MYR2.87 million on
MYR5.61 million of revenues in the first quarter ended March 31, 2007,
compared with a net loss of MYR1.03 million on
MYR6.99 million of revenues reported in the same period in 2006.
The loss for the first quarter of the year was mainly due to the decrease
in production volume compared with the preceding quarter, Manium said in a
statement.
As at March 31, 2007, the company’s unaudited balance sheet showed current
assets of MYR19.59 million available to pay current liabilities of
MYR93.33 million.
In addition, Mangium’s balance sheet as of March 31, 2007, showed total
assets of MYR45.09 million and total liabilities of MYR93.33 million.
Shareholders’ deficit in the company totaled MYR46.11 million.
Mangium Industries Berhad's principal activities are the manufacturing and
trading of timber and timber related products. Other activities include
provision of printing services, publisher, printer consultants and
advertisers, trading of alcoholic beverages, general trading of office
furniture, operation and development of the plantation and investment
holding. Operations of the Group are carried out in Malaysia.
The Troubled Company Reporter – Asia Pacific reported on May 25, 2007,
that Mangium Industries, on May 22 became an affected listed issuer
pursuant to the provisions of Amended Practice Note 17/2005, as its
shareholders' equity on consolidated basis is less than 25% of its issued
and paid-up capital. As an affected listed issuer, Mangium is required to
formulate and implement a plan to regularize its financial condition
within a timeframe stipulated by relevant authorities.
MERCES HOLDINGS: Court Orders Stay on CIMB’s Wind-Up Petition
-------------------------------------------------------------
Merces Holdings Bhd disclosed with the Bursa Malaysia Securities Bhd that
it has obtained from the High Court of Malaya at Kuala Lumpur on June 20,
2007, an order staying the wind-up proceedings against it.
On March 21, 2007, the Kuala Lumpur High Court ordered for the wind-up of
the company upon the petition by CIMB Bank Bhd with regard to the default
in repayment of judgment sum plus interest added up to a total sum of
MYR9,441,743.49.
Upon receipt of the wind-up order, the company informed the bourse that it
applied to the court a stay on the wind-up proceedings as the company
intends to negotiate with the bank for an amicable out-of-court
settlement, and eventually have the winding-up order lifted.
Merces Holdings Berhad's principal activities are the provision of
property development and building construction works. The Company's other
activity include investment holding. Operations of the Group are
predominantly carried out in Malaysia.
Merces Holdings has defaulted on several loan facilities and had faced
winding-up petitions due to unsettled financial obligations.
MOL.COM BERHAD: Receives Takeover Offer from AmInvestment Bank
--------------------------------------------------------------
Mol.Com Bhd disclosed with the Bursa Malaysia Securities Bhd that on June
22, 2007, it received from AmInvestment Bank Bhd, in behalf of the
“Offeror”, a takeover offer for the remaining 25.94% that it does not
already owned in the company.
The “Offerors” are:
-- Tan Sri Dato' Seri Vincent Tan Chee Yioun
-- Berjaya VTCY Sdn Bhd
-- Ganda Kuat Sdn Bhd and
-- Pantai Cemerlang Sdn Bhd
The Offerors, together with the parties deemed acting in concert with
them, currently hold approximately 74.06% of the company’s shares.
According to the disclosure, the remaining 58,561,083 ordinary shares of
MYR1.00 each, which are not held directly or indirectly by the Offeror and
the parties deemed acting in concert with them, will be bought for a cash
consideration of MYR0.20 per share.
The Offer is subject to the approval of the Securities Commission, under
the Guideline on Acquisition of Interests, Mergers and Take-Overs by Local
and Foreign Interests issued by the Foreign Investment Committee.
The company also told the bourse that it does not intend to seek an
alternative person to make a takeover offer for the Offer Shares. The
company added that with the offer, it will defer the implementation of the
company’s proposals pending the outcome of the offer.
Based in Malaysia, Mol.Com Bhd provides electrical engineering services,
and is engaged in contracting and trading of electrical machinery and
apparatus. Other activities include operation and maintenance of web
portals, registration and marketing of internet domain names, provision of
web and information technology solutions, advertising, promotional
activities and investment holding.
Operations are carried out in Malaysia, British Virgin Islands and Singapore.
Mol.Com is an Affected Listed Issuer pursuant to the Amended Practice Note
17/2005 of the Listing Requirements of Bursa Malaysia and is therefore
required to implement a regularization plan to the Securities Commission.
Going Concern Doubt
After auditing the company's annual financial report ended June 30, 2006,
the company's auditors expressed doubt on the ability of the Group and of
the Company to continue as a going concern. The ability of the Group and
of the Company to continue as a going concern is dependent upon the
successful outcome of the proposed disposal of a property and the Group's
plan to regularize its financial condition, continuing financial support
from a significant shareholder and financial institutions as well as
achieving successful future operations.
MOL.COM BERHAD: Amends Reform Proposals After Earlier Rejection
---------------------------------------------------------------
Mol.Com Bhd has made some changes to its reform plan proposals following
an earlier rejection by the Securities Commission to implement the plan.
The main enhancements are the proposed injection of a profitable asset
into the company.
On Feb. 28, 2007, the Troubled Company Reporter - Asia Pacific reported
that Mol.Com Bhd has submitted its various proposals to undertake to
regularize its financial and operational status.
However, on April 5, 2007, the TCR-AP said that the Securities Commission
rejected all the proposals under its reform plan.
In a letter to the company, the commission stated its reasons as to why it
decided to reject the proposals. The SC said that:
(i) The profitability of the Information and Communications
Technology business, which will be the core business of
the MOL Group going forward, has not been encouraging in
the previous financial years. Furthermore, the
significant increase in the forecast/projected profit
contribution from the ICT business does not appear to be
supported by concrete factors;
(ii) There do not appear to be any comprehensive steps taken
to address the ongoing losses of the Industrial Products
division, which would have a negative impact on the
profitability of the MOL Group in the future; and
(iii) MOL would still have significant accumulated losses
after the implementation of the Proposals.
Accordingly, the company enhanced its proposals to include:
(a) Proposed cancellation of the entire share premium of the
Company of approximately MYR42.23 million as at June 30,
2006, and proposed reduction of the existing issued and
paid-up capital of the Company involving the
cancellation of MYR0.80 of the par value of each of the
225,756,900 Shares in issue, pursuant to Sections 60 and
64 of the Act;
(b) Proposed consolidation of every five (5) ordinary shares
of MYR0.20 each into one MOL Share subsequent to the
Proposed Capital Reduction;
(c) Proposed acquisition by GL, a Hong Kong incorporated
100% subsidiary of MOL, from the following companies
which will result in GL owning 100% of the equity
interest in BISB, the holding company of MUC, AUI and
IMD, for a total consideration of MYR40,000,000, which
will be satisfied by MOL via the issuance of 40,000,000
new MOL Shares at an issue price of MYR1.00 per MOL
Share.
(i) IUB of its entire 40.08% equity interest in BISB;
(ii) NKSB of its entire 40.08% equity interest in BISB;
and
(iii) MISB of its entire 19.84% equity interest in BISB;
(d) Proposed renounceable rights issue of 42,575,690 Rights
Shares together with 42,575,690 Warrants, on the basis
of one Rights Share together with one (1) Warrant for
every two (2) existing MOL Shares held after the
completion of the Proposed Capital Reduction, Proposed
Share Consolidation and Proposed Acquisition, at an
issue price of MYR1.00 per Rights Share; and
(e) Proposed private placement by TSVT and/or companies
controlled by TSVT of up to 17,000,000 MOL Shares to
selected Bumiputera investors.
Based in Malaysia, Mol.Com Bhd provides electrical engineering services,
and is engaged in contracting and trading of electrical machinery and
apparatus. Other activities include operation and maintenance of web
portals, registration and marketing of internet domain names, provision of
web and information technology solutions, advertising, promotional
activities and investment holding.
Operations are carried out in Malaysia, British Virgin Islands and Singapore.
Mol.Com is an Affected Listed Issuer pursuant to the Amended Practice Note
17/2005 of the Listing Requirements of Bursa Malaysia and is therefore
required to implement a regularization plan to the Securities Commission.
Going Concern Doubt
After auditing the company's annual financial report ended June 30, 2006,
the company's auditors expressed doubt on the ability of the Group and of
the Company to continue as a going concern. The ability of the Group and
of the Company to continue as a going concern is dependent upon the
successful outcome of the proposed disposal of a property and the Group's
plan to regularize its financial condition, continuing financial support
from a significant shareholder and financial institutions as well as
achieving successful future operations.
SETEGAP BERHAD: Buyer Okays Extension to Dispose Serdang Land
-------------------------------------------------------------
Setegap Bhd disclosed with the Bursa Malaysia Securities Bhd that it has
obtained from Sentanas Sdn Bhd an approval to extend to Dec. 31, 2007, the
period to fulfill the conditions for the proposed disposal of the Serdang
Land.
The Troubled Company Reporter – Asia Pacific reported that on
January 26, 2006, the company proposed to dispose of:
-- approximately 62.09% equity interests in Paving Plant and
Processes (M) Sdn Bhd;
-- 100% equity interests in Asphalt Industries Sdn Bhd; and
-- landed properties in Damansara and Serdang.
On Mar 30, 2007, the TCR-AP said that Setegap Bhd and the buyers of its
assets have mutually agreed to extend the sale purchase agreements
pursuant to the company's proposed disposal under its reform plan.
According to the report, Setegap obtained extensions from:
1) Alpha Positive Sdn Bhd -- the purchaser of Paving Plant
and Process(M) Sdn Bhd. The period to fulfill conditions
precedent stipulated in the sale and purchase agreement is
extended until June 28, 2007, for the proposed disposal;
2) Loong Chee Meng -- the purchaser of Asphalt Industries Sdn
Bhd -- agreed in writing to extend the period to fulfill
conditions precedent stipulated in the sale and purchase
agreement up to June 28, 2007, for the proposed disposal;
and
3) Sentanas Sdn Bhd -- the purchaser of landed properties in
Serdang -- agreed in writing to extend the period to
fulfill conditions precedent up to June 28, 2007, for the
proposed disposal of the Serdang Land.
The TCR-AP also reported that the proposed disposal of landed properties
in Damansara had not been fulfilled by Jan. 31, 2007. Lee Kim Yeow and
Chee Yen Yin, the purchasers of Damansara Land, served a notice in writing
to the company for the termination of the sale and purchase agreement in
respect of proposed disposal of Damansara Land.
Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's principal
activities consist of the construction and maintenance of roads, railways
and building, including services rendered on quarrying. The Company's
other activities include manufacturing and selling offroad construction
equipment, asphalt plants, mixing plants, asphalt emulsions and premix.
The Group also provides mechanical and electrical services, leases
machinery and investment holding.
Setegap's cash flow and profitability were affected by the Asian financial
crisis in 1997 and 1998.
Setegap Bhd's unaudited balance sheet as of Dec. 31, 2006, showed total
assets of MYR65.71 million and total liabilities of MYR187.85 million,
resulting to a shareholders' deficit of MYR122.14 million.
SETEGAP BHD: Balance Sheet Upside Down by MYR126.5MM in March 31
----------------------------------------------------------------
Setegap Bhd’s unaudited balance sheet as of March 31, 2007, went upside
down with shareholders’ deficit of MYR126.5 million from total assets of
MYR56.86 million and total liabilities of MYR183.86 million.
In addition, the company’s balance sheet also reflected strained liquidity
with current assets of MYR40.05 million and current liabilities of
MYR180.17 million.
Setegap posted a net loss of MYR2.81 million on MYR15.77 million of
revenues in the first quarter ended March 31, 2007, compared with a net
loss of MYR3 million on MYR14.84 million of revenues in the same period in
2006.
Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's principal
activities consist of the construction and maintenance of roads, railways
and building, including services rendered on quarrying. The Company's
other activities include manufacturing and selling offroad construction
equipment, asphalt plants, mixing plants, asphalt emulsions and premix.
The Group also provides mechanical and electrical services, leases
machinery and investment holding.
Setegap's cash flow and profitability were affected by the Asian financial
crisis in 1997 and 1998.
Setegap Bhd’s unaudited balance sheet as of March 31, 2007, went upside
down with shareholders’ deficit of MYR126.5 million from total assets of
MYR56.86 million and total liabilities of MYR183.86 million.
====================
N E W Z E A L A N D
====================
HERITAGE GOLD: Schedules Annual Meeting on August 29
----------------------------------------------------
Heritage Gold NZ Limited will hold its annual meeting on
Aug. 29, 2007, the company informed the New Zealand Stock Exchange in
regulatory filing.
The company further disclosed that closing date for director nominations
is July 9, 2007.
As previously disclosed, Heritage Gold has appointed Warwick Grigor as
independent director, effective April 19, 2007.
Mr. Grigor specializes in research-based mining company financing and
corporate advisory services through Far East Capital Limited (FEC), which
he founded in 1991. Heritage Gold is actively pursuing alternative mining
opportunities to gold including cobalt and, most recently, uranium.
Parnell, New Zealand-based Heritage Gold NZ Limited --
http://www.heritagegold.co.nz/-- is a mining company. The
company is a systematic and persistent acquirer of prime gold
areas in New Zealand's Waihi district. Heritage Gold NZ Limited
has a 33% equity interest in Broken Hill Cobalt Limited (BHCL),
which has tenements over the Thackaringa cobalt project near
Broken Hill in New South Wales. The company has an exploration
license south of Broken Hill, where several geophysical,
geological and geochemical anomalies represent targets with
potential for gold and base metal mineralization. Its wholly
owned subsidiaries include Coromandel Gold Limited, Northland
Minerals Limited and Strength Investments Limited.
The group incurred consecutive losses of NZ$807,000,
NZ$2,639,467 and NZ$331,563 for the years ended March 31, 2007,
2006, and 2005, respectively.
=====================
P H I L I P P I N E S
=====================
ACESITE: Elects Directors & Auditors for Year 2007-2008
-------------------------------------------------------
Acesite (Philippines) Hotel Corp. has elected new directors for the year
2007-2008 in its annual stockholders' meeting held on June 13.
These individuals were elected as directors:
* Renato B. Magadia
* Dee Hua Gatchalian
* Pablo Gancayco
* Lamberto B. Mercado Jr.
* Kenneth T. Gatchalian
* Arthur R. Ponsaran
* Elvira A. Ting
* Arthur Lopez (Independent)
* Philip Encarnacion (Independent)
* Vicente C. Atilano (Independent)
Sycip Gorres Velayo and Co. was elected as external auditor for the
corporation.
The Board elected these directors as officers during the organizational
meeting held after the stockholders' meeting:
* Arthur Lopez - Chairman of the Board
* Renato B. Magadia - Vice-Chairman
* Kenneth T. Gatchalian - President, CEO
* Elvira A. Ting - Treasurer, Chief Financial
Officer
* Arthur R. Ponsaran - Asst. Corporate Secretary,
Chief Information Officer
* Arsenio A. Alfiler Jr. - Asst. Corporate Secretary,
Alternation Information
Officer
* Norma Azores - Executive Vice President
for Hotel Operations and
Chief Operating Officer
* Christopher Park - General Manager
* Ricky L. Ricardo - Compliance Officer and
Corporate Affairs Officer
Besides the election of the officers, the Board also organized the
following committees with their respective members:
EXECUTIVE COMMITTEE
Chairman: Arthur M. Lopez
Members : Renato B. Magadia
Elvira A. Ting
Lamberto B. Mercado Jr.
Kenneth T. Gatchalian
Norma T. Azores
RISK MANAGEMENT COMMITTEE
Chairman: Renato B. Magadia
Members : Philip Encarnacion
Elvira A. Ting
Norma T. Azores
COMPENSATION COMMITTEE
Chairman: Elvira A. Ting
Members : Philip Encarnacion
Arthur Lopez
Vicente C. Atilano
NOMINATIONS COMMITTEE
Chairman: Lamberto B. Mercado Jr.
Members : Philip Encarnacion
Pablo Gancayco
Ricky L. Ricardo
AUDIT COMMITTEE
Chairman: Philip Encarnacion
Members : Arthur Lopez
Vicente C. Atilano
Dee Hua Gatchalian
About Acesite (Phils.)
Formerly known as Delbros Hotel Corporation, Acesite (Phils.) Hotel
Corporation -- http://www.manilapavilion.com.ph/-- is a foreign-owned
domestic corporation incorporated to engage in hotel operations and
investing. DHC owns the Holiday Inn Manila Pavilion Hotel, a deluxe hotel
situated along United Nations Avenue in Manila. The operations of the
latter are being managed by Holiday Inn Worldwide. A major customer of
the hotel is the Philippine Amusement and Gaming Corporation, which
operates the Casino Filipino - Pavilion.
Debt Default and Restructuring
An event of default occurred with respect to the Acesite's payment of its
US$15 million loan with the Singapore Branch of the Industrial and
Commercial Bank of China, which matured on March 31, 1998. On June 3,
2003, the loan was restructured by ICBC, which stipulated six semi-annual
installment payments of principal and interest until April 2006. In July
2004, the company's new management requested for a reprieve on loan
principal payments due for the period, which the company suggested to be
placed at the end of the term of the Amended Agreement. The outstanding
principal balance of the ICBC loan as of March 31, 2006, is US$9.18
million. Management is still negotiating with ICBC for a rescheduling of
payment on the remaining principal balances.
Material Lawsuits
Acesite is party to a case that involves a PHP30.15 million petition for
the Bureau of Internal Revenue to refund Extended Value Added Tax payments
made from July 1996 to October 1997. Both the Court of Tax Appeals and
then later the Court of Appeals ruled in favor of Acesite, and ordered the
BIR to refund PHP30.05 million. The case is presently with the Supreme
Court on further appeal by the BIR.
Acesite also has a PHP5.26 million petition for the City Treasurer of
Manila to refund local taxes payments made on April 19, 2002. The case is
still pending with the Regional Trial Court in Manila, Branch 15.
BANKARD INC: Board Approves Change of Primary Headquarters
----------------------------------------------------------
Bankard Inc. has changed its address to the 31st Floor of the Robinsons
Equitable Tower, ADB Avenue corner Poveda Street, in Ortigas Center, Pasig
City.
The bank's headquarters had previously been located in the 29th floor of
the same building. The bank's Board of Directors approved the change
during a meeting held on June 20.
Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned subsidiary of
RCBC Capital Corporation. It was organized by PCIBank in December 1981 as
Philippine Commercial Credit Card, Inc. to engage in domestic credit card
operation. It issued the country's first credit card by a commercial
bank. On July 8, 1992, PCCCI changed its corporate name to Bankard Inc.
Bankard is a licensee of Mastercard International Incorporated, JCB
International Co., Ltd. and VISA International Service Association to
issue credit cards accepted by affiliated banks and merchant
establishments worldwide. The company markets a line of credit cards,
which includes Bankard MasterCard, Bankard Visa, Bankard JCB Standard and
Premiere and its latest, myDream JCB.
Bankard, Inc. reported a net loss of PHP597.6 million for the year ended
December 31, 2006, which translated to a loss per share of PHP1.92, the
bank said in it annual financials filed with the Philippine Stock
Exchange. The bank also had a net loss of PHP422.4 million for the year
ended December 31, 2005.
BANKARD INC: Elects Directors & Auditors for Year 2007
------------------------------------------------------
Bankard Inc. has elected the members of its Board of Directors for the
year 2007 during the annual stockholders' meeting held on June 13.
The stockholders elected these individuals into the company's board of
directors:
* Rizalino S. Navarro
* Cesar E.A. Virata
* Lorenzo V. Tan
* Raul M. Leopando
* Teodoro D. Regala
* Ma. Celia H. Fernandez-Estavillo
* Oscar B. Biason
* Eduardo S. Lopez Jr. (Independent)
* Teodoro Q. Pena (Independent)
* Francisco C. Eizmendi Jr. (Independent)
* Roberto F. De Ocampo (Independent)
The stockholders also appointed Punong Bayan & Araullo as external
auditors of the company.
During the organizational meeting held after the annual stockholders'
meeting, the Board appointed these individuals as officers of the
corporation:
* Rizalino S. Navarro - Chairman
* Cesar E.A. Virata - Vice-Chairman
* Oscar B. Biason - President & CEO
* Samuel V. Torres - Corporate Secretary
* Mary Ann D. Roque - Asst. Corporate Secretary
* Zenaida F. Torres - CFO & Treasurer
* Ma. Angelina V. Angeles - Vice President- Customer Service
* Fe Fortunato R. Rio - Vice President- Operations
* Ma. Liwayway M. Tan - Vice President - Compliance/Risk
The Board also appointed the following members of the committees:
EXECUTIVE COMMITTEE
* Rizalino S. Navarro - Chairman
* Cesar E.A. Virata - Member
* Eduardo S. Lopez Jr. - Member
* Lorenzo V. Tan - Member
AUDIT COMMITTEE
* Francisco C. Eizmendi Jr. - Chairman
* Eduardo S. Lopez Jr. - Member
* Teodoro Q. Pena - Member
COMPENSATION COMMITTEE
* Francisco C. Eizmendi Jr. - Chairman
* Rizalino S. Navarro - Member
* Teodoro D. Regala - Member
CORPORATE GOVERNANCE/NOMINATION COMMITTEE
* Francisco C. Eizmendi Jr. - Chairman
* Teodoro D. Regala - Member
* Teodoro Q. Pena - Member
RISK MANAGEMENT COMMITTEE
* Cesar E.A. Virata - Chairman
* Lorenzo V. Tan - Member
* Oscar B. Biason - Member
About Bankard
Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned subsidiary of
RCBC Capital Corporation. It was organized by PCIBank in December 1981 as
Philippine Commercial Credit Card, Inc. to engage in domestic credit card
operation. It issued the country's first credit card by a commercial
bank. On July 8, 1992, PCCCI changed its corporate name to Bankard Inc.
Bankard is a licensee of Mastercard International Incorporated, JCB
International Co., Ltd. and VISA International Service Association to
issue credit cards accepted by affiliated banks and merchant
establishments worldwide. The company markets a line of credit cards,
which includes Bankard MasterCard, Bankard Visa, Bankard JCB Standard and
Premiere and its latest, myDream JCB.
Bankard, Inc. reported a net loss of PHP597.6 million for the year ended
December 31, 2006, which translated to a loss per share of PHP1.92, the
bank said in it annual financials filed with the Philippine Stock
Exchange. The bank also had a net loss of PHP422.4 million for the year
ended December 31, 2005.
CHIQUITA BRANDS: Selling 12 Cargo Vessels for US$227 Million
------------------------------------------------------------
Chiquita Brands International Inc. has completed the previously announced
sale of its 12 refrigerated cargo vessels for
US$227 million. The cash proceeds from the transaction are being used to
repay approximately US$170 million of debt, and the remainder will be
retained for general corporate purposes, including growth investments or
future debt repayments. The ships have been chartered back from an
alliance formed by Eastwind Maritime Inc. and NYKLauritzenCool AB. The
parties also entered a long-term strategic agreement in which the alliance
will serve as Chiquita's preferred supplier in ocean shipping to and from
Europe and North America.
As reported in the Troubled Company Reporter-Latin America on
May 31, 2007, Chiquita Brands said that it signed definitive accords with
Eastwind Maritime Inc. and NYKLauritzenCool AB to
sell its 12 "refrigerated" cargo vessels. The ships will be "chartered
back from an alliance" by Eastwind Maritime and NYKLauritzenCool.
Chiquita Brands will lease back 11 of the vessels for seven years, with
options to extend it to two or five years -- one vessel for three years.
The vessels that would be sold include:
-- eight reefer ships, and
-- four container ships.
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets fresh-cut
fruit and other branded, value-added fruit products.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service changed the rating
outlook for Chiquita Brands International, Inc. to negative from stable.
Ratings affirmed:
* Chiquita Brands International, Inc. (parent holding company)
-- Corporate family rating at B3
-- Probability of default rating at B3
-- US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5, 89%)
-- US$225 million 8.875% senior unsecured notes due 2015 at
Caa2 (LGD5, 89%)
* Chiquita Brands LLC (operating subsidiary):
-- US$200 million senior secured revolving credit agreement
at B1 (LGD2, 26%)
-- US$24.3 million senior secured term loan B at B1 (LGD2,
26%)
-- US$368.4 million senior secured term loan C at B1 (LGD2,
26%).
CHIQUITA BRANDS: Executives Adopt Prearranged Stock Trading Plan
----------------------------------------------------------------
Chiquita Brands International Inc.'s executive officers has adopted a
prearranged stock trading plan in accordance with
guidelines specified by Rule 10b5-1 under the Securities Exchange Act of
1934, as amended.
Rule 10b5-1 allows plans to be established that permit corporate
executives to prearrange sales of company securities at a time when they
are not aware of any material non-public information. Such plans typically
involve a plan to sell shares over a set period of time. These
pre-arranged planned trades will be executed at a specified later date, as
set forth in the plan, without further action or oversight by the
executive officer.
A plan can provide for sales of stock on a particular date or at a
particular price or a combination of both of these factors, along with
others. The rules allow corporate executives to diversify their
investment portfolios and avoid concerns about initializing stock
transactions while possibly in possession of material non-public
information.
Chiquita's president and chief operating officer of its Chiquita Fresh
Group, Robert F. Kistinger, has adopted a plan under Rule 10b5-1, which is
in accordance with company's stock ownership guidelines and provides for
the liquidation of portions of his holdings over multiple quarters, as
part of systematic financial planning for the benefit of his family.
Shares sold pursuant to the plan will be disclosed publicly through Form
144 filings
and Form 4 filings as required by the SEC.
About Chiquita Brands
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads. The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama and the Philippines.
* * *
As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service Ratings affirmed these ratings on Chiquita
Brands International Inc.: (i) corporate family rating at B3; (ii)
probability of default rating at B3; (iii) US$250 million 7.5% senior
unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million
8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's
changed the rating outlook for Chiquita Brands to negative from stable.
Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's
Ratings Services placed its 'B' corporate credit
and other ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc. on CreditWatch with negative implications,
meaning that the ratings could be lowered or affirmed following
the completion of their review. Total debt outstanding at the
company was about US$1.3 billion as of March 31, 2007.
IPVG CORP: Annual Stockholders' Meeting Set for July 20
-------------------------------------------------------
IPVG Corp. will hold its annual stockholders' meeting on July 26, 2007, at
10:00 am at the 34th Floor of Tower II RCBC Plaza, located at 6819 Ayala
Avenue in Makati City.
Among others, these matters will be taken up during the meeting:
* Approval of a follow on offering to the securities
offering/primary issuance of about 100 million shares
* Approval of 3rd tranche grant under the 2005 Stock
Option Plan stock
* Election of Directors for 2007-2008
* Appointment of External Auditors
Only stockholders of record as of July 1, 2007 are entitled to notice and
are eligible to vote at the meeting.
IPVG Corporation -- http://www.ipvg.com/-- is engaged in the information
technology and communications business with interests in Information
Technology and Telecommunications; On-line Gaming; and Business Process
Outsourcing.
IPVG reaches its customers through collaboration with international
corporations that have proven to be market leaders in their respective
geographic markets and industries. Its current partners include Fortune
1000 companies listed on the New York Stock Exchange, such as Pacific
Century Cyberworks Inc. and IDT. The company can offer established
product and proprietary business knowledge to the Philippine market by
pairing each of its business subsidiaries with strategic partners.
The TCR-AP reported on May 15, 2007 that the corporation posted a net loss
of PHP102.1 million for the year ended Dec. 31, 2006, the company's third
consecutive annual net loss after PHP43.0 million in 2005 and PHP6.2
million in 2004.
MANILA ELECTRIC: Denies News of Being Sued for Overcharging
-----------------------------------------------------------
The Manila Electric Co. denied news that the National Association of
Electricity Consumers for Reforms had filed suit against it for alleged
overcharging worth PHP2.5 billion.
On June 20, 2007, the BusinessWorld published an article stating that the
Nasecore had filed a complaint against Meralco in the Energy Regulatory
Commission. The complaint, according to the report, alleged that Meralco
illegally overcharged consumers for PHP2.5 billion in four months.
In a disclosure with the Philippine Stock Exchange, Meralco said it did
not receive any complaint from Nasecore about the supposed unauthorized
overcharges.
Headquartered in Ortigas, Pasig City, the Manila Electric Company --
http://www.meralco.com.ph/-- is the largest utility in the Philippines,
providing power to 4.1 million customers in Metropolitan Manila and more
than 100 surrounding communities. As deregulation takes effect, Meralco
is reducing its dependence on state-owned National Power Corp. by
increasing the amount of power it purchases from independent power
producers. Meralco is also preparing for competition by moving into
non-regulated activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real estate.
* * *
A March 31, 2006 report by the Troubled Company Reporter - Asia Pacific
stated that the company posted a 79.7% decrease in its 2005 net losses to
PHP411 million from PHP2.03 billion in 2004, due to provisions for
probable losses while awaiting a Supreme Court final decision on a pending
unbundling rate case, and the adoption of new accounting standards.
In a TCR-AP report on April 24, 2006, it was noted that Manila Electric
cannot seek a loan to expand its facilities unless it repays outstanding
short-term debts amounting to around
PHP4.7 billion.
PHIL BANK OF COMMS: Elects New Directors & Auditors for 2007
------------------------------------------------------------
The Philippine Bank of Communications has elected new members of its Board
of Directors in the annual stockholders' meeting held on June 14.
The newly elected Board of Directors are:
* Carlos G. Chung
* Chung Tiong Tay
* Ralph Nubla Jr.
* Henry Y. Uy
* Johnny O. Cobankiat
* Jose D. Lina
* Francis Y. Gaw
* Victor P. Lazatin
* Enrique T. Luy
* Ernesto T. Luy
* Edwin L. Luy
* Romulo A. Espaldon Jr.
* Roman Anthony V. Azanza Jr.
* Guillermo N. Hernandez
* Aurora L. Shih
Sycip Gorres Velayo & Co. was appointed as external auditors during the
meeting.
Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different products
and services through its different divisions and it has a broad range of
credit facilities, which are either denominated in local currency or
foreign. Its Trust Division handles common trust funds, investment
advisory accounts and employee benefit trusts. Aside from these, the bank
also offers money market placements and traditional products such as peso
deposits.
Fitch Ratings gave Philippine Bank of Communications an Individual Rating
of 'D/E.'
PHIL. LONG DISTANCE: DoCoMo Clarifies Plans to Increase Holdings
----------------------------------------------------------------
NTT DoCoMo, through the Philippine Long Distance Telephone Co., issued a
statement to the Philippine Stock Exchange regarding an article about its
alleged plans to increase its holdings in PLDT.
On June 20, 2007, the Philippine Star published an article reporting that
the NTT Group, through NTT DoCoMO, plans to increase its 13.4% stake in
PLDT to 20%. The Philippine Star quoted NTT spokeswoman Tomoko Tsuda as
saying that NTT will either buy additional shares from the market, or to
negotiate with the First Pacific for an acquisition of the latter's
holdings in the Philippine Telecommunications Investment Corp.
In its statement, NTT DoCoMo said it is open for an increase in ownership
of PLDT up to a limit of 21% if it views the market favorable and
profitable. Otherwise, it may decide otherwise.
Based in Makati City, Philippines, Philippine Long Distance Telephone Co.
-- http://www.pldt.com.ph/-- is the leading national telecommunications
service provider in the Philippines. Through three principal business
groups -- wireless, fixed line, and information and communications
technology -- the company offers a wide range of telecommunications
services to over 22 million subscribers in the Philippines across the
nation's most extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
The Troubled Company Reporter - Asia Pacific reported that on November 3,
2006, Moody's Investors Service affirmed Philippine Long Distance
Telephone Company's Ba2 senior unsecured foreign currency rating and
changed its outlook to stable from negative. At the same time, Moody's
has affirmed PLDT's Baa3 domestic currency issuer rating. The outlook for
this rating remains positive.
Standard & Poor's placed the company's long-term foreign issuer credit
rating at BB+. Standard & Poor's also affirmed its 'BB+' foreign currency
rating on the company with a stable outlook.
SAN MIGUEL: Confirms Reported Shutdown of Unit's HK Brewery
-----------------------------------------------------------
San Miguel Corp. confirmed to the Philippine Stock Exchange that its
subsidiary, San Miguel Brewery Hong Kong Ltd., is closing down its Yuen
Long district brewery around September this year.
According to a disclosure with the PSE, San Miguel explained that SMBHK's
Board of Directors approved on June 15, 2007, the plan to close down the
Yuen Long plant. SMBHK's directors consider that the move will help
streamline its production cost structure in order to improve its
profitability in the long term.
Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food,
beverage and packaging businesses. The company's products include beer,
wine and spirits, soft drinks, mineral water, chicken and pork products.
San Miguel markets its products both in the domestic and overseas markets.
The company also manufactures glass, metal, plastic, paper and composites
packaging products.
A Troubled Company Reporter - Asia Pacific report on Oct. 12, 2006, stated
that Moody's Investors Service affirmed its Ba1 corporate family rating.
Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign
currency corporate credit rating and a 'B' rating to its proposed
five-year benchmark non-callable, non-cumulative, non-voting, perpetual
preferred shares to be issued by San Miguel Capital Funding.
VITARICH CORP: Stocks Suspended Pending Settlement of Penalties
---------------------------------------------------------------
The trading of Vitarich Corp.'s shares remain suspended by the Philippine
Stock Exchange until the company settles all pending penalties assessed
against it by the exchange.
The company had been previously assessed penalties by the PSE for delayed
submission of structured reportorial requirements.
Bulacan, Philippines-based Vitarich Corporation --
http://www.vitarich.com/-- is among the leading integrated producers and
wholesalers of poultry and animal feed products in the Philippines. The
company also develops, produces and sells animal health products. It is
dedicated to the poultry and feeds industry, committing all of its
resources to the production of poultry products, including upstream
production activities such as feed milling, and additional ventures where
the company's knowledge of the poultry and feeds production process
provides it with competitive advantage.
In 1988, the company entered into a joint venture agreement with
Cobb-Vantress, Inc. and formed Breeder Master Inc., (formerly
Phil-American Poultry Breeders, Inc.) to engage in the production of
day-old parent stocks. Cobb-Vantress is 100% owned by Tyson Foods, Inc,
the worlds largest chicken company. BMI is 80% owned by Vitarich and 20%
owned by Cobb-Vantress.
Despite the company's expansion into other areas, its core business
remains rooted in poultry. As of end-2001, contribution to gross sales of
the company's business groups was -- foods 62%, feeds 30%, and farms 8%.
VITA is presently engaged in the manufacture and distribution of
various poultry products like chicken, animal and aqua feeds, and day-old
chicks, among others.
* * *
The TCR-AP reported on September 19, 2006, that Vitarich has filed a
petition for corporate rehabilitation with the Regional Trial Court of
Malolos City, Bulacan. On May 31, 2007, the Malolos Regional Court
approved Vitarich's rehabilitation plan.
* * *
The Company reported net losses worth PHP163.79 in 2006, PHP249.3 million
in 2005 and PHP291.2 million in 2004 .
=================
S I N G A P O R E
=================
ASIATICA TURN: Requires Creditors to File Claims by July 12
-----------------------------------------------------------
The creditors of Asiatica Turn Key Projects Pte Ltd are required to file
their proofs of debt by July 12, 2007.
Creditors who cannot file their proofs of debt by the due date will be
excluded from sharing in the company’s dividend distribution.
The company’s liquidators are:
Chee Yoh Chuang
Lim Lee Meng
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
MYHOME FURNITURE: Receiving Proofs of Debt Until June 27
--------------------------------------------------------
Myhome Furniture & Design Pte Ltd, which is in liquidation, will declare a
second and final dividend on June 27, 2007.
Creditors are required to file their proofs of debt by June 27, 2007, to
be included in the company’s dividend distribution.
The company’s liquidator is:
Timothy James Reid
50 Raffles Place
#16-06 Singapore Land Tower
Singapore 048623
OVERSEAS SHIPHOLDING: Two Underwriters to Exercise Stock Option
---------------------------------------------------------------
Overseas Shipholding Group Inc., together with Double Hull Tankers Inc.,
disclosed that Merrill Lynch & Co. and UBS Investment Bank have exercised
their option to purchase 750,000 shares of common stock of Double Hull.
The company granted the underwriters a 30-day option to purchase
up to an additional 750,000 shares of common stock to cover
overallotments in connection with its previously announced
offering of 5,000,000 shares of common stock of Double Hull.
Overseas Shipholding expects to recognize an additional gain from the sale
of the 750,000 shares of about US$2 million in the second quarter of 2007.
After completion of the sale, Overseas Shipholding’s beneficial
ownership of Double Hulls's common stock will be reduced from
about 12.5%, or 3,751,500 shares, to about 10%, or 3,001,500
shares. This sale was made pursuant to Double Hull's existing
shelf registration statement. Double Hull will not receive any
proceeds from this sale of its common stock.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission and has become
effective.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be any
sale of these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or jurisdiction.
A copy of the written prospectus relating to this offering can be obtained
from:
Merrill Lynch & Co.
Prospectus Department
4 World Financial Center
New York, New York 10080
or
UBS Investment Bank
Prospectus Department
299 Park Avenue, New York, NY 10171
Alternatively, you may obtain a copy of the prospectus by calling (212)
449-1000 or (212) 821-3884.
About Double Hull
Double Hull Tankers, Inc. (NYSE: DHT) -- http://www.dhtankers.com/--
commenced operations as an independent tanker company on Oct. 18, 2005.
It acquired its current fleet of seven double hull crude oil tankers from
Overseas Shipholding and currently charters these vessels to subsidiaries
of Overseas Shipholding.
About Overseas Shipholding
Overseas Shipholding Group Inc. (NYSE: OSG) – http://www.osg.com/-- is a
tanker company that offers global energy transportation services for crude
oil and petroleum products in the U.S. and International Flag markets.
The company is a customer-focused marine transportation company, with
offices in Athens, Houston, London, Manila, Montreal, Newcastle, New York
City, Philadelphia, Tampa and Singapore.
* * *
To date, Overseas Shipholding Group Inc. still carries Moody's
Investors Service Ba1 long-term corporate family rating and senior
unsecured debt ratings issued on Feb. 8, 2005. The ratings outlook
remains stable.
Also, the company still carries Standard & Poor’s BB+ long-term
foreign and local issuer credit ratings issued on Feb. 11, 2005.
PETROLEO BRASILEIRO: Negotiating Oil Rig Contract with Keppel
-------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA's press official
told Dow Jones Newswires that it is negotiating a contract with
Singaporean Keppel Corp.'s unit for the construction of a new oil rig.
Dow Jones notes that the P-56 rig will be similar to the P-51 rig, which
Keppel's Brazilian unit Keppel Fels is constructing in consortium with
French oil engineering company Technip SA's unit Technip Engenharia SA.
The cost of the project still needs to be negotiated. The P-51 will cost
US$830 million once it is completed, Dow Jones says, citing Petroleo
Brasileiro's press official.
Petroleo Brasileiro could not tell Dow Jones if P-56 could cost US$1.2
billion as reports in Singapore say. Construction costs of oil rigs for
the firm have increased in recent years due to higher costs for steel and
service providers.
According to published reports, Petroleo Brasileiro could reach a deal
with Keppel by the end of this month.
Dow Jones relates that the P-56 will be in the Marlim Sul field in
Brazil's oil-rich Campos Basin.
Petroleo Brasileiro must hold public tenders for bids for the construction
of most new oil rigs. However, it won't have to hold a tender for the
P-56 as it will be constructed as a copy of the P-51, Dow Jones states,
citing the press official.
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.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Eyes Possible Biz Opportunities in Qatar
-------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras' president, Jose Sergio Gabrielli de
Azevedo, was in Qatar on June 17 for a series of meetings with local
Government representatives to evaluate business opportunities there.
Qatar is the world's biggest Liquefied Natural Gas producer and holds
nearly 5% of the global natural gas reserves. The entourage led by
Petrobras' president met with the Vice-Prime Minister and also Minister of
Energy & Industry of Qatar, HE Abdullah Bin Hamad Al Attivah, with
Minister of State, Dr. Mohammad Saleh Al-Sada, and with Qatar Petroleum
and RasGas executives.
With Qatar Petroleum International's CEO, Nasser Khalil Al-Jaidah, Jose
Sergio discussed the possibility of Petrobras importing LNG from Qatar and
of entering that Arab country's exploration & production sector. Qatar
Petroleum International also showed interest in discussing joint business
opportunities with other countries and possible participation in
thermoelectric generation in Brazil. The two companies are studying
signing a Memorandum of Understandings to deepen their relationship and
give continuity to the negotiations.
At Petrobras' invitation, a technical delegation from Qatar is expected to
visit Brazil to learn more about the company's operations. The Brazilian
entourage's visit to Qatar was the highlight of the Economy news sections
of the country's main newspapers, such as the Gulf Times, the Qatar
Tribune, The Peninsula, as well as on the Al Jazeera TV network.
In addition to Petrobras' president, the company's Gas & Energy Director,
Ildo Sauer; Executive Manager for Gas & Energy Marketing and Trade, Luiz
Antonio Pereira; Market Supply Alternative Development Coordinator for the
LNG area, Marcio Demori; and New International Business area Managers,
Demarco Jorge and Bassim Dhajah, were also in the Brazilian delegation.
The LNG Project
Two months ago, Petrobras' Board approved the hiring of Golar LNG Ltd. to
charter vessels for the Liquefied Natural Gas terminals in the Guanabara
Bay, Rio de Janeiro, and in Pacem, Ceara. These are two Floating
Regasifying and Storage units that can also be used to transport LNG. One
of the units will be capable of regasifying up to 14 million cubic meters
of gas per day, while the other up to 7 million.
In the same period, the company signed a Master LNG supply Agreement with
Nigeria LNG. A similar agreement was also reached with Algerian
Sonatrach, in addition to an MOU to study, among other projects, a
possible Liquefied Petroleum Gas supply cooperation agreement to supply
the product's import terminals to be deployed in Pacem and in the
Guanabara Bay.
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.
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.
PRIME ENERGY: Court to Hear Wind-Up Petition on June 29
-------------------------------------------------------
A petition to wind up the operations of Prime Energy Corporation Pte
Limited was filed by Mewaholeo Industries Sdn Bhd on May 29, 2007.
The petition will be heard before the High Court of Singapore on June 29,
2007, at 10:00 a.m.
Mewaholeo Industries’ solicitors are:
Harpal Mahtani Partnership
133 New Bridge Road
#22-09/10 Chinatown Point
Singapore 059413
RED HAT: UBS Maintains Neutral Rating on Company's Shares
---------------------------------------------------------
UBS analysts have kept their "neutral" rating on Red Hat Inc.'s shares,
Newratings.com reports.
According to Newratings.com, the target price for Red Hat's shares was set
at US$25.
The analysts said in a research note that Red Hat would report strong
results in the fiscal first quarter 2008, with sales and earnings per
share likely to be "in-line with the consensus."
The analysts told Newratings.com that there is "upside to the billing
estimates for Red Hat in the quarter, in view of the robust momentum the
firm saw during the quarter."
The Linux server demand seemed stroing, heading into the second half of
2007, Newratings.com states, citing UBS.
Headquartered in Raleigh, North Carolina Red Hat, Inc. --
http://www.redhat.com/-- is an open source and Linux provider. Red Hat
provides operating system software along with middleware, applications and
management solutions. Red Hat also offers support, training, and
consulting services to its customers worldwide and through top-tier
partnerships.
The company has offices in Singapore, Germany, and Argentina,
among others.
* * *
As reported on Nov. 3, 2006, Standard & Poor's Ratings Services revised
its outlook on Raleigh, North Carolina-based operating systems provider
Red Hat Inc. to stable from positive, and affirmed its 'B+' corporate
credit rating.
SPECTRUM BRANDS: Class Action Lawsuit Dismissed
-----------------------------------------------
Spectrum Brands, Inc. disclosed the dismissal of a putative class action
lawsuit filed against the company last year in the U.S. District Court for
the Northern District of Georgia.
The lawsuit generally alleged that the company and the individually named
defendants made materially false and misleading public statements
concerning the company's operational and financial condition, thereby
causing plaintiffs to purchase Spectrum Brands securities at artificially
inflated prices.
On Oct. 27, 2006, the Court granted defendants' motion to dismiss, and
ordered plaintiffs to file an amended complaint, if any, within 30 days.
Plaintiffs requested, among other things, additional time to file an
amended complaint and on May 18, 2007, the Court entered an opinion and
order denying that request. Plaintiffs did not file an appeal and,
accordingly, this case is now closed.
Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25 retailers and are
available in more than one million stores in 120 countries around the
world. The company has manufacturing and distribution facilities in
China, Australia and New Zealand, and sales offices in Melbourne,
Shanghai, and Singapore.
* * *
As reported in the Troubled Company Reporter on April 30, 2007,
Fitch Ratings affirmed the ratings of Spectrum Brands, Inc.,
including its CCC issuer default rating, its CCC- rating of the
company's US$700 million 7-3/8% senior subordinated note due 2015 and its
CCC- rating of the company's US$350 million 11.25% Variable Rate Toggle
Interest pay-in-kind Senior Subordinated Note due 2013. The Outlook
remains Negative.
===============
T H A I L A N D
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DAIMLERCHRYSLER: Chrysler Grp., GETRAG Makes US$530MM Investment
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Richard Chow-Wah, Vice President – Powertrain Manufacturing, Chrysler
Group, joined Indiana Governor Mitch Daniels to officially name Tipton
County, Indiana, as the site of a new dual-clutch transmission
manufacturing plant with partner company, GETRAG Corporate Group. The
US$530 million investment is another step in Chrysler Group’s “Powertrain
Offensive” -- US$3 billion in investments to produce more fuel-efficient
engines, transmissions and axles for Chrysler Group.
“We appreciate the support that has been offered by state and local
officials to help bring this investment to Indiana,” Mr. Chow-Wah said.
"Together with our new partner, GETRAG, our combined US$530 million
investment in Tipton will create a state-of-the art facility to
manufacture fuel-efficient, dual-clutch transmissions and reaffirm our
long-term commitment to producing vehicles that meet and exceed consumers'
demands for more economical-to-operate vehicles."
"This is an important day for the future of the UAW and Chrysler, and in
particular for the continued competitiveness of our team here in the State
of Indiana," General Holiefield, UAW Vice President, who directs the
union's DaimlerChrysler Department, said. "This investment is a
significant step toward realizing our vision to see this company and our
union grow this business and transform Chrysler into a stronger company
that will be competitive for the long run.”
Located on a 145-acre site at the intersection of State Road 28 and U.S.
31 in Tipton County, GETRAG will have the operational leadership of the
plant which will employ approximately 1,050 full-time Chrysler Group
UAW-represented workers and 120 management employees from both companies.
The plant will produce 700,000 dual-clutch transmissions annually.
Additionally, the plant will have a direct effect on 230 employees at
Kokomo Casting and Kokomo Transmission who will be dedicated to producing
parts for the GETRAG plant. Construction of the 804,000 square-foot
facility is scheduled to begin June 27, 2007, with production beginning in
2009.
“Indiana’s comeback rolls on,” Mr. Daniels said. “The investment is a
tribute to the skill of Hoosier workers and the pro-growth climate we are
building in our state.”
“Dual-clutch transmissions provide much better shift quality, driving
comfort, and superior fuel efficiency compared to more conventional
technologies such as torque converter automatics and/or CVTs,” Ulrich
Kohler, Vice President Manufacturing -- GETRAG Transmissions Corporation,
said. “DCTs replace the energy-sapping torque converters of conventional
automatic transmissions with two wet or lubricated clutches -- one that
engages first, third and fifth gear and the other that engages second,
fourth and sixth. As a result, the transmission can deliver a five to 10
percent improvement in fuel economy.”
About GETRAG
Based in Untergruppenbach, Germany, GETRAG Corporate Group is an
independent automotive transmission manufacturer with 12,400 employees at
23 locations worldwide. The Group develops technical solutions for the
automotive industry, featuring a wide product range of transmission
systems and powertrain components for passenger cars, SUVs, motorbikes and
light commercial vehicles.
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: Chrysler Group Eyes Sales and Dealer Expansion
---------------------------------------------------------------
As Chrysler Group continues to increase sales and expand operations in
markets outside North America, the company has identified a need for
additional sales outlets in key established and growth markets. This
week, approximately 70 international investors and dealers are visiting
the company’s headquarters in Auburn Hills for a sneak peek at the
potential for Chrysler, Jeep and Dodge brand franchises in their
respective markets.
“While we will continue to aggressively defend our position in NAFTA, it
is important that we expand in other markets so that we are not as
dependent on the ups and downs of a single region,” Tom LaSorda, President
and CEO – Chrysler Group, said. “With a more global focus we will be
better able to take advantage of emerging opportunities.”
Dealer Investment Forum
The Chrysler Group has invited the potential partners from 19 countries
all over the world, including Russia, Japan and the Middle East. During
three days with senior Chrysler Group executives, the investors will learn
more about the different avenues the company is pursuing to become a more
global operation as it implements the Recovery and Transformation Plan, a
roadmap for returning to financial health. They will also gain insight
into the Chrysler Group’s growth plans outside North America and
experience first-hand the unique products and powertrains that would be
available through their franchise if they choose to invest. This week's
forum follows a conference held in China where 140 dealers attended.
"Due to the expansion of our global portfolio, we see an opportunity not
only to strengthen the relationship with our current dealers, but also to
look for new business partners that can help us to take our international
business to the next level," Michael Manley, Executive Vice President –
International Sales, Marketing and Business Development, said.
Outside North America, Chrysler Group has roughly 1,400 sales outlets. In
established markets, like Western Europe, the company plans to add roughly
100 new sales outlets over the next two years. Additional growth in the
dealer network will increase the company’s presence in growing markets,
such as Russia and China, where the existing dealer network is doing well,
but the goals of additional sales growth will require adding more
locations.
The addition of these new outlets will increase customer satisfaction, as
well as contribute to increased sales. Chrysler Group remains committed
to ensuring a positive customer experience with the product itself, and
with the dealership for both sales and service experiences. Having the
necessary number of dealerships exposes more customers to the Chrysler,
Jeep and Dodge brands and also means that customers are able to visit a
facility in or near their community after purchasing the vehicle for any
necessary maintenance.
Performance Outside North America
In 2006, Chrysler Group expanded the availability of the Dodge brand in
key markets all over the world with the launch of the Dodge Caliber, the
brand’s first volume vehicle outside North America. The next two Dodge
vehicles, making their way into global markets this summer, are the Dodge
Nitro and Avenger. Demand for the Dodge brand has been strong so far this
year as Dodge Caliber sales soared to 13,265 units year-to-date, making it
the top-selling Chrysler Group vehicle outside North America. By 2009,
Dodge could account for roughly 30% of the company’s international sales.
“Many dealers outside North America have been very successful with the
sales of all three Chrysler Group brands in their local markets,” Thomas
Hausch, Vice President of International Sales, said. “In Western Europe
alone, we increased our return on sales by more than 20%, from 1.7 in 2005
to 2.1 in 2006. This is a clear indication that the new vehicles we are
introducing are well-received by our customers and that we deliver to our
dealers one of the best return on sales within the industry.”
Sales growth for Chrysler Group as a whole outside North America has
reached an unprecedented two full years of monthly sales gains, and
year-to-date growth of 16 percent (91,412 units) over the same period of
time in 2006. Much of this growth is attributed to the increase in the
number of models that are being introduced in markets all over the world
with options that meet the needs of global customers. Chrysler Group
management has indicated that the plan is to double last year’s sales
outside North America and reach approximately 400,000 units in the next
five years.
To support this growth plan, between 2003 and 2007, The Chrysler Group
will approximately double the number of products available outside North
America from nine to 20 vehicles. Within the number of models available,
the company will triple the number of vehicles in right-hand-drive, from
six to 18; and, quadruple the number of vehicles with an option for a
diesel powertrain, from four to 16.
Chrysler Group sells and services vehicles in more than 125 countries
around the world. Sales outside North America currently account for
approximately 8% of the company’s total global sales. Vehicles available
outside of North America come from all three Chrysler Group brands, with
limited availability on some trucks and SUV models.
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.
FEDERAL-MOGUL: Court Extends Confirmation Hearing to July 9-10
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended, until
July 9 and 10, 2007, the hearing for the confirmation of Federal-Mogul
Corp. and its debtor-affiliates' plan of reorganization, Cooper
Industries, Ltd. disclosed.
In 1998, Cooper sold its Automotive Products business, including its Abex
Friction Products business, to Federal-Mogul. As part of the transaction,
Cooper was indemnified for liabilities related to the divested business,
pursuant to a Purchase and Sale Agreement. On Oct. 1, 2001, Federal-Mogul
and several of its affiliates filed a Chapter 11 bankruptcy petition and
indicated that Federal-Mogul may not honor its indemnity obligations to
Cooper, including its obligations for claims related to the Abex Friction
Products business.
The Federal-Mogul bankruptcy plan incorporates the settlement reached by
Cooper, Federal-Mogul and other parties to the bankruptcy proceeding to
resolve Cooper's liabilities for the Abex Friction Products business,
including the Abex asbestos-related claims.
About Cooper Industries
Cooper Industries, Ltd. -- http://www.cooperindustries.com/-- is a global
manufacturer with 2006 revenues of US$5.2 billion, approximately 85
percent of which are from electrical products. Incorporated in Bermuda
with administrative headquarters in Houston, Cooper employs approximately
31,000 people and operates eight divisions: Cooper B-Line, Cooper
Bussmann, Cooper Crouse-Hinds, Cooper Lighting, Cooper Menvier, Cooper
Power Systems, Cooper Wiring Devices and Cooper Tools Group. Cooper
Connection provides a common marketing and selling platform for Cooper's
sales to electrical distributors.
About Federal-Mogul
Based in Southfield, Michigan, Federal-Mogul Corporation --
http://www.federal-mogul.com/-- is an automotive parts company
with worldwide revenue of some US$6 billion. Federal-Mogul also has
operations in Mexico and the Asia Pacific Region, which includes,
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan
Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura
Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from their
creditors, they listed US$10.15 billion in assets and
$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6, 2004,
the Bankruptcy Court approved the Third Amended Disclosure Statement for
their Third Amended Plan. On July 28, 2004, the District Court approved
the Disclosure Statement. The estimation hearing began on June 14, 2005.
They then submitted a Fourth Amended Plan and Disclosure Statement on Nov.
21, 2006, and the Bankruptcy Court approved that Disclosure Statement on
Feb. 6, 2007.
THAI-PROPERTY: Posts PHP10.19-Mil. Net Loss for 1st Quarter 2007
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Thai-Property PCL reported a net loss of PHP10.19 million for the first
quarter of 2007, a complete reverse of the PHP921,000 net income it
reported for the same period in 2006.
For the quarter ended March 31, 2007, the company earned
PHP9.14 million in total revenues, comprised mostly of revenues from the
sales of real estate, and incurred expenses of
PHP13.91 million in cost of sales and administrative expenditures.
As of March 31, 2007, the company had total assets of
THB1.14 billion and total liabilities of THB304.21 million, resulting in a
total shareholders' equity of PHP842.92 million.
Going Concern Doubt
After reviewing the company's financial statements for the first quarter
of 2007, Narong Puntawong at Ernst & Young Office Ltd. raised doubt on the
company's ability to continue as a going concern. Mr. Narong pointed out
the uncertainty in the ability of the company's new investor,Great China
Millennium (Thailand) Co. Ltd., to repay to the Company the overdue
remuneration of THB291 million under the reciprocal agreement. Mr. Narong
also drew attention to the new investor’s late progress with construction,
which may affect the real estate development project for sales of the
Company.
About Thai-Property
Thai Property Public Company Limited was formerly known as Rattana Real
Estate Public Company Limited. The company develops real estate for sale
and rental including residential, commercial, and office buildings.
THAI WAH: Elects New Directors for 2007
---------------------------------------
Thai Wah PCL has elected five new directors for the year 2007 during an
extraordinary general meeting of shareholders held on June 18.
The company's shareholders elected these persons to be directors of the
company:
* Supranee Kanoksrikarin
* Pattrarat Poonpattrarachiwin
* Chaiwat Phengpinit (Independent)
* Thirawut Charoensuk (Independent)
* Vipha Chimchan (Independent)
The company's shareholders also agreed on these rates as annual
remuneration for the directors:
* THB800,000 for the Chairman of the Board
* THB600,000 for the directors
Thai Wah Public Company Ltd's principal activity is the manufacturing and
marketing of various food products using mung beans. Products includes
mung bean vermicelli, bean sheet (Shanghai noodle) and salim starch.
Brands and trademarks of the group include Double Dragon, Phoenix, Double
Kilin and Double Eagle brands for vermicelli; Double Dragon brand for
salim starch and bean sheet; and New Grade brand for tapioca starch,
tapioca pearls and rice flours. It operates a factory in Thailand located
in Banglane District, Nakorn Pathom Province.
Thai Wah is currently implementing a Reorganization Plan, whose amendments
were approved by the Central Bankruptcy Court in November 2005.
THAI WAH: Posts THB758.59-Million Net Income for Year 2006
----------------------------------------------------------
Thai Wah PCL reported a net income of THB758.59 million for the year ended
December 31, 2006, an increase from the
THB632.43-million net income posted for the year 2005.
For the year 2006, the company earned total revenues of
THB2.29 billion, while incurring expenses of THB1.55 billion.
As of December 31, 2006, the company had total assets of
PHP4.94 billion and total liabilities of THB4.8 billion, resulting in a
total shareholders' equity of THB133.86 million.
Thai Wah Public Company Ltd's principal activity is the manufacturing and
marketing of various food products using mung beans. Products includes
mung bean vermicelli, bean sheet (Shanghai noodle) and salim starch.
Brands and trademarks of the group include Double Dragon, Phoenix, Double
Kilin and Double Eagle brands for vermicelli; Double Dragon brand for
salim starch and bean sheet; and New Grade brand for tapioca starch,
tapioca pearls and rice flours. It operates a factory in Thailand located
in Banglane District, Nakorn Pathom Province.
Thai Wah is currently implementing a Reorganization Plan, whose amendments
were approved by the Central Bankruptcy Court in November 2005.
*********
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
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Copyright 2007. All rights reserved. ISSN: 1520-9482.
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