/raid1/www/Hosts/bankrupt/TCRAP_Public/070704.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
Wednesday, July 4, 2007, Vol. 10, No. 131
Headlines
A U S T R A L I A
BERKELEY INTERNATIONAL: To Declare Dividend on July 17
COLES GROUP: Accepts Wesfarmers? AU$21.9-Billion Proposal
ISL AUSTRALIA: Members and Creditors to Meet on July 27
KENETA KITCHENS: Members Opt to Shut Down Business
MCH GEOMETRICS: Creditors Decide to Wind Up Operations
MULTIPLEX GROUP: Wins AU$803.2-Million Hospital Deal in UK
RESLAND CORPORATION: Sets Members? Final Meeting for July 31
SHEAR-ALL PASTORAL: Undergoes Voluntary Liquidation
SOUTHERN BRAKE: Final Meeting Slated for July 23
THE KARINGAL HUB: Members Resolve to Close Business
VORACHIO PTY: Taps White and Newman as Liquidators
WEBB DISTRIBUTORS: Placed Under Voluntary Liquidation
WESTPOINT GROUP: PIS Attempts to Prevent Class Action Litigation
C H I N A & H O N G K O N G
97 COLLECTIONS: Sets Final General Meeting for July 30
AFK HONG KONG: Fixes July 27 as Deadline to File Claims
AEROFLEX INC: To Hold Stockholders Special Meeting on July 26
BALLY TOTAL: Unveils Treatment of Claims Under Pre-Packaged Plan
BENQ CORP: K.Y. Lee Loses CEO Title in Some Subsidiaries
CHINA CHILDREN: Creditors? Proofs of Debt Due by July 30
CITIC RESOURCES: Australian Unit Lifts Macarthur Stake to 19.9%
DYNASTY PROPERTY: Requires Creditors to Prove Debts by July 16
DYNASTY SYNDICATE: Proofs of Claim Due by July 16
EVERMAX INDUSTRIAL: Court to Hear Wind-Up Petition on July 11
FERMAY INVESTMENTS: Placed Under Voluntary Liquidation
FERRO CORP: Richard Hipple Joins Board's Finance Committee
HENDERSON STRATECH: Shareholders Resolve to Close Business
HERCULES INC: S&P Revises BB Rating's Outlook to Positive
ICBC: Completes Sale of Equity Fund; Plans Another Offer
PETROLEOS DE VENEZUELA: Chinese Firm Wants to Drill at Orinoco
SINO PROGRESS: Appoints Leung Fung Yee Alice as Liquidator
STRONG OFFER INVESTMENT: Sets Annual Meetings for July 27
TK ALUMINUM: Unit Closes Equity Interest Sale in Nanjing Teksid
ZTE CORP: Cabinet Meeting Copy Reveals Loopholes in Deal
ZTE CORP: Defends Broadband Deal; Losing Bidders Incompetent
I N D I A
IMAX CORP: Unable to File 2006 Form 10-K by June 30 Deadline
LOK HOUSING: To Raise Funds Through Shares Issuance
LSI CORP: Sells Consumer Products Unit to Magnum Semiconductor
LSI CORPORATION: Plans 900 Job Cuts to Reduce Cost
MYSORE CEMENTS: Appoints S. R. Batliboi as Auditors
QUEBECOR MEDIA: Sues Osprey Media on Black Press Bid Acceptance
STATE BANK OF INDIA: Transfers Stake in RBI to Central Gov?t.
I N D O N E S I A
ADARO INDONESIA: To Sell Shares in IPO for Debt Payment
ALCATEL-LUCENT: Finalizes Contract W/ ICO for Mobile Services
ANEKA TAMBANG: May Miss 2007 Output Target, Report Says
BANK RAKYAT: Acquires Bank Jasa Arta for IDR61 Billion
HUNTSMAN CORP: Basell to Acquire Assets for US$9.6 Billion
MEDCO ENERGI: Acquires 40% Interest in Tunisia?s Anaguid Block
PARKER DRILLING: S&P Rates Proposed US$115 Mil. Sr. Notes at B-
PERTAMINA: Raises Price of Industrial Fuels for July
PERTAMINA: Cooperates w/ Sun Kiong in US$200M Lube-Based Project
TELKOM INDONESIA: Reviews Possible Acquisition
J A P A N
ALITALIA SPA: OAO Aeroflot Won't Fuse Bid with AirOne S.p.A.
DELPHI CORP: Reaches Tentative Deal with UAW and General Motors
NUANCE COMMS: Inks Pact To Acquire Tegic for US$265 MM in Cash
NOVA CORP: Ministry Tolerated Refund Malpractice
K O R E A
CURON INC: Signs Letter w/ ETRI to Develop Internet Protocol TV
SK CORP: Signs Initial Accord on US$1.9 Bil. Ethylene Plant
M A L A Y S I A
CHIN FOH: Posts MYR1.63-Mil. Net Loss in Qtr Ended April 30
KNOLL INC: Completes US$500 Million Credit Facility Refinancing
MEGAN MEDIA: Shareholders' Deficit at MYR796.96MM in April 30
SHAW GROUP: Energy & Climate Picked as Asset Advisors for Leaf
N E W Z E A L A N D
A & E PAINTERS: Creditors? Proofs of Debt Due by July 5
AWATERE CONTRACTING: Taps Shephard and Dunphy as Liquidators
CONTRACT PACKERS: Fixes July 20 as Last Day to File Claims
G S & L D: Faces Perrin Consultancy?s Wind-Up Petition
INFRATIL LTD: Wants 13.7% Increase in Directors Pay
MAJA CONSTRUCTION: Appoints Anthony Charles Harris as Liquidator
MS & RM: Court Appoints Shephard and Dunphy as Liquidators
PACIFICA FISHING: Shephard and Dunphy Named as Liquidators
SPEIRS GROUP: Sets Annual General Meeting on July 31
TAPA INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 2
TECHNOLOGY TRAINING: Taps T. S. A. Taylor as Liquidator
WEST AUCKLAND: Wind-Up Petition Hearing Set for July 5
P H I L I P P I N E S
BANCO DE ORO-EPCI: Inks Cooperation Agreement with Bank of China
IPVG: Plans to Sell 100 Million Shares in Follow-on Offering
VITARICH CORP: Sets Up New Board and Elects New Officers
* Privatization May Damage Economy, Report Says
S I N G A P O R E
1988 JV PTE: Proofs of Debt Due by July 30
ASIA WELLNESS: Fixes July 27 as Last Day to File Claims
CHIVERO PTE: Court to Hear Wind-Up Petition on June 20
LINDETEVES-JACOBERG: Arisaig Sells Stake in Open Market
SEA CONTAINERS: Trustee Appoints HSBC as Sole Member of Panel
SEA CONTAINERS: Wants to Settle SC Asia Intercompany Claims
T H A I L A N D
BANK OF AYUDHYA: GE Brings Up Shareholdings to 31%
POWER-P: Elects 5 New Directors; Accepts Resignation of 3 Others
* Upcoming Meetings, Conferences and Seminars
- - - - - - - -
=================
A U S T R A L I A
=================
BERKELEY INTERNATIONAL: To Declare Dividend on July 17
------------------------------------------------------
Berkeley International Victoria Pty Ltd will declare dividend on
July 17, 2007.
Creditors are required to file their proofs of debt by July 10,
2007, to be included in the company?s dividend distribution.
The company?s deed administrator is:
J. P. Downey
J. P. Downey & Co
Level 1, 22 William Street
Melbourne, Victoria 3000
Australia
About Berkeley International
Berkeley International Victoria Pty Ltd is a distributor of
drugs, drug proprietaries, and druggists' sundries. The company
is located in Victoria, Australia.
COLES GROUP: Accepts Wesfarmers? AU$21.9-Billion Proposal
---------------------------------------------------------
The Coles Board of Directors has unanimously recommended a scrip
and cash proposal from Wesfarmers Limited to acquire Coles Group
Limited at an enterprise value of AU21.9 billion or AU$17.25 per
share (including a 25 cent dividend).
Coles Chairman Rick Allert said the Board had determined that
the proposal was in the best interests of shareholders and would
recommend it in the absence of a superior proposal and subject
to an independent expert determining that the proposal was fair
and reasonable.
The proposal will deliver to Coles shareholders:
* AU$4.00 cash per Coles share;
* Wesfarmers scrip equivalent to AU$13.00 (0.2843 per Coles
share) based on the latest closing price of Wesfarmers
shares of AU$45.73 on 29 June 2007; and
* AU$0.25 per share final dividend.
The total value of scrip and cash to Coles shareholders under
the Wesfarmers proposal is AU$17.25 per Coles share, including
the dividend.
Based on current market values, the merged group will be in the
top 10 companies by market capitalization listed on the ASX.
The merged company will be owned approximately 44% by Coles
shareholders and 56% by existing Wesfarmers shareholders.
A price of AU$17.25 per Coles share (including the 25 cent
dividend) represents a premium of:
* 50% to the Coles closing price on 14 August 2006, the day
before speculation of the first private equity approach to
Coles last year; and
* 19% to the Coles closing price on 22 February 2007, the day
before the announcement by Coles of a review of ownership
options.
The Wesfarmers proposal follows a comprehensive ownership review
process in which the Board and its advisers have considered a
range of strategic alternatives and proposals from interested
parties.
?This is a good outcome for Coles shareholders which recognizes
the significant turnaround of the company over the past five
years and the future opportunity of the company?s new growth
strategy,? Mr. Allert said.
?It provided an attractive premium now, as well as an
opportunity to share in the future value upside from Coles
businesses as part of the broader Wesfarmers group.
?Moreover, the offer has limited condition to completion. There
are no conditions relating to financing, ACCC approval, landlord
consents, or material adverse changes in the company?s
position,? he said.
You can read about the details of the scheme implementation
agreement for free at the company?s Web site:
http://www.colesgroup.com.au/library/NewsMedia/WES%20CGJ%20proposal%
20020707.pdf
Coles Group Limited, formerly known as Coles Myer Ltd. --
http://www.colesgroup.com.au/Home/-- operates predominantly in
the retail industry and is comprised of five business segments:
Food, Liquor and Fuel, which includes retail of grocery, liquor
and fuel products; Kmart, which is engaged in the retail of
apparel and general merchandise; Officeworks, which retails
office supplies; Target, which retails apparel and general
merchandise, and Property and Unallocated, which is engaged in
the management of the Company's property portfolio and
unallocated or corporate functions. During the fiscal year
ended July 30, 2006, Coles Group Limited opened seven new Kmart
stores. In June 2006, Coles Group Limited completed the
acquisition of the Hedley Hotel Group. In December 2006, the
Company acquired Queensland-based Talbot Hotel Group. The
Company operates in Australia, New Zealand and Asia.
Moody?s Investor Service gave a ?Ba1? rating on the company?s
preference stock.
ISL AUSTRALIA: Members and Creditors to Meet on July 27
-------------------------------------------------------
The members and creditors of ISL Australia Pty Ltd will hold a
final meeting on July 27, 2007, at 9:15 a.m., to receive the
liquidator?s report about the company?s wind-up proceedings and
property disposal.
The company?s liquidator is:
Peter Goodin
c/o Brooke Bird & Co
Insolvency Practitioners
471 Riversdale Road
East Hawthorn, Victoria 3123
Australia
Telephone:9882 6666
About ISL Australia
ISL Australia Pty Ltd is a distributor of prepackaged software.
The company is located in Victoria, Australia.
KENETA KITCHENS: Members Opt to Shut Down Business
--------------------------------------------------
During a general meeting held on June 14, 2007, the members of
Keneta Kitchens Pty Ltd resolved to shut down the company?s
business and appointed Samuel Richwol as liquidator.
The Liquidator can be reached at:
Samuel Richwol
O'Keeffe Walton Richwol
Chartered Accountants
Suite 3, 431 Burke Road Glen Iris 3146
Australia
About Keneta Kitchens
Keneta Kitchens Pty Ltd is a distributor of wood kitchen
cabinets. The company is located in Victoria, Australia.
MCH GEOMETRICS: Creditors Decide to Wind Up Operations
------------------------------------------------------
The creditors of MCH Geometrics Pty Ltd, which is formerly
trading as MCH, met on June 12, 2007, and resolved to wind up
the company?s operations.
David H. Scott of Jones Condon was appointed as liquidator.
The Liquidator can be reached at:
David H. Scott
Jones Condon
Chartered Accountants
First Floor, 173 Burke Road
Glen Iris, Victoria 3146
Australia
Telephone:(03) 9500 0511
About MCH Geometrics
MCH Geometrics Pty Ltd is a special trade contractor. The
company is located in Victoria, Australia.
MULTIPLEX GROUP: Wins AU$803.2-Million Hospital Deal in UK
----------------------------------------------------------
Multiplex Group has struck a AU$803.2 million deal with
Mulitplex Construction Ltd. (UK), Multiplex Facilities
Management Ltd. (UK) and a special purpose entity called
Progress Health, reports the Australian Associated Press.
According to the report, the project is for Multiplex to build a
612-bed acute hospital, a 102-bed mental health unit and a 34-
bed integrated care center in greater Peterborough.
Reportedly, Multiplex, which owns 30% of Progress Health, was
selected among other bidders for this AU$803.2-million hospital
construction. Progress Health had to issue bonds through a fund
raising conducted on June 29, 2007 in order to finance this
project.
Multiplex will possibly be delisted from the Australian Stock
Exchange this year following a AU$4.3-billion bid by Canadian-
based firm Brookfield Asset Management, relates the report.
About Multiplex Group
Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its
revenue from property funds management, construction, property
development, and facilities management. The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East. In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion. Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.
Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties. Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down. In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits. This started a series of profit downgrades throughout
2005.
In May 2005, Multiplex admitted that its troubled Wembley
Stadium construction project may end up with a multimillion
loss. As of February 2006, the Company is faced with liquidity
crisis after posting a massive AU$474 million loss on Wembley.
The Troubled Company Reporter - Asia Pacific reported on
Aug. 18, 2006, that Multiplex Group's financial results for the
year ended June 30, 2006, noted that the Wembley project in the
United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss. The project loss position has
remained unchanged since December 31, 2005.
RESLAND CORPORATION: Sets Members? Final Meeting for July 31
------------------------------------------------------------
The members of Resland Corporation Pty Ltd will have their final
meeting on July 31, 2007, at 10:00 a.m., to receive the
liquidator?s report about the company?s wind-up proceedings and
property disposal.
The meeting will be held on The Next Step at 580 Englehardt
Street in Albury, Australia.
Paul Guy is the company?s liquidator.
About Resland Corporation
Resland Corporation Pty Ltd, which is also trading as Robert
House Associates, provides lawn and garden services. The
company is located in Victoria, Australia.
SHEAR-ALL PASTORAL: Undergoes Voluntary Liquidation
---------------------------------------------------
On June 14, 2007, the members of Shear-All Pastoral Co Pty Ltd
decided to voluntarily wind up the company?s operations.
The company?s liquidator is:
Sinclair Wilson
Accountants & Business Advisors
177 Koroit Street, Warrnambool
Victoria 3280
Australia
Located in Victoria, Australia, Shear-All Pastoral Co Pty Ltd is
an investor relation company.
SOUTHERN BRAKE: Final Meeting Slated for July 23
------------------------------------------------
A final meeting will be held for the members and creditors of
Southern Brake & Clutch Pty Ltd on July 23, 2007, at 4:30 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:
G. J. Keith
Grant Thornton, Rialto Towers
Level 35, South Tower
525 Collins Street, Melbourne
Victoria
Australia
About Southern Brake
Southern Brake & Clutch Pty Ltd operates automotive repair
shops. The company is located in Victoria, Australia.
THE KARINGAL HUB: Members Resolve to Close Business
---------------------------------------------------
During a general meeting held on May 31, 2007, the members of
The Karingal Hub Merchants Association Limited resolved to close
the company?s business and appointed Nicholas Brooke as
liquidator.
The Liquidator can be reached at:
Nicholas Brooke
115 Kalinda Road
Ringwood North, Victoria 3134
Australia
About The Karingal Hub
The Karingal Hub Merchants Association Limited is involved with
membership organizations. The company is located in Victoria,
Australia.
VORACHIO PTY: Taps White and Newman as Liquidators
--------------------------------------------------
At an extraordinary general meeting held on June 13, 2007, the
members of Vorachio Pty Ltd resolved to shut down the company?s
business.
Clyde Peter White and Philip Newman were appointed as
liquidators.
The Liquidators can be reached at:
Clyde Peter White
Philip Newman
HLB Mann Judd, Chartered Accountants
Level 1, 160 Queen Street
Melbourne
Australia
About Vorachio Pty
Located in Victoria, Australia, Vorachio Pty Ltd is an investor
relation company.
WEBB DISTRIBUTORS: Placed Under Voluntary Liquidation
-----------------------------------------------------
On June 4, 2007, the members of Webb Distributors (Australia)
Pty Limited had a meeting and resolved to voluntarily liquidate
the company?s business.
Stephen Robert Dixon and Laurence Andrew Fitzgerald were
appointed as liquidators.
The Liquidators can be reached at:
Stephen Robert Dixon
Laurence Andrew Fitzgerald
BDO Kendalls Business Recovery &
Insolvency (Vicotoria) Pty Ltd
Level 30, The Rialto
525 Collins Street, Melbourne
Victoria 3000
Australia
About Webb Distributors
Webb Distributors (Australia) Pty Limited is a distributor of
home furnishings. The company is located in Victoria,
Australia.
WESTPOINT GROUP: PIS Attempts to Prevent Class Action Litigation
----------------------------------------------------------------
Madeleine Collins of Investor Daily reports that Professional
Investment Services is trying to derail a AU$6.5-million class
action by 60 former clients who invested in the failed Westpoint
Group.
Ms. Collins, getting hold of the documents filed in the New
South Wales Supreme Court, PIS lawyers Deacons sought an order
to stop the litigation from pursuing the company as a group.
However, lawyers for the investors, Slater and Gordon and the
litigation's funder IMF expressed to Ms. Collins that they are
confident that this action will fail in light of a recent
Supreme Court decision involving a same case.
Ms. Collins quotes IMF director Charlie Gallow saying, ?This is
a defendant trying to do what they can to defend a case on
technical grounds and not on its merits.?
If the PIS are successful, according to Ms. Collins, the lead
plaintiff in the case, Bruce Noel Jameson, and the group of
investors would be forced to pursue PIS in separate claims.
Reportedly, there have been 22 investors claiming that PIS
financial planners gave them inappropriate advice and made
misleading statements about Westpoint and its Ann Street
property in Brisbane, with each investor losing around
AU$100,000.
The case is due back on July 17, 2007, relates Ms. Collins.
About Westpoint Group
Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property
development and owns or manages retail and commercial properties
with a total value of over AU$300 million. The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group. The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings. The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years. These wind-up actions are
still continuing.
In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd. The ASIC had
applied to wind up the company on grounds of insolvency. The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.
The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected. Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.
================================
C H I N A & H O N G K O N G
================================
97 COLLECTIONS: Sets Final General Meeting for July 30
------------------------------------------------------
97 Collections Limited will hold a final general meeting on
July 30, 2007, 4:00 p.m., on Level 28, Three Pacific Place at 1
Queen?s Road East, Hong Kong.
Paul David Stuart Moyes, the company?s liquidator, will give at
the meeting a report about the company?s wind-up proceedings and
property disposal.
AFK HONG KONG: Fixes July 27 as Deadline to File Claims
-------------------------------------------------------
AFK Hong Kong Limited, which is in compulsory liquidation, is
receiving creditors? proofs of debt until July 27, 2007.
Creditors who can?t file their claims by the due date will be
excluded from sharing in the company?s dividend distribution.
The company?s liquidators are:
Cosimo Borelli
G Jacqueline Fangonil Walsh
1401, Level 14
Tower 1, Admiralty Centre
18 Harcourt Road
Hong Kong
AEROFLEX INC: To Hold Stockholders Special Meeting on July 26
-------------------------------------------------------------
Aeroflex Incorporated will hold a special meeting of
stockholders on July 26, 2007, at 10:00 a.m., local time, at the
Garden City Hotel, Stewart Avenue, Garden City, New York, for
the purpose of considering the adoption of the merger agreement
providing for the acquisition of Aeroflex by Veritas Capital.
Stockholders of record of Aeroflex as of the close of business
on Monday, June 4, 2007, will be entitled to vote at the special
meeting. The definitive proxy statement covering this matter
was mailed to Aeroflex?s stockholders earlier this week.
Aeroflex currently expects to complete the merger by late July
or early August 2007, subject to the approval and adoption of
the merger agreement by Aeroflex?s stockholders and the
satisfaction of other closing conditions.
Headquartered in Plainview, NY, Aeroflex Inc. is a specialty
provider of microelectronics and test and measurement products
to the aerospace, defense, wireless, broadband and medical
markets. For the twelve months ended March 31, 2007, revenues
were US$577 million. Aeroflex has offices in China, France,
Germany, and Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 28, 2007, Moody's Investors Service assigned first-time
ratings to Aeroflex Incorporated:
-- Corporate Family Rating -- B3
-- Probability of Default Rating -- B3
-- US$60 Million Senior Secured First Lien Revolver due 2013,
B1 (LGD-2, 27%)
-- US$500 Million Senior Secured First Lien Term Loan due
2014, B1 (LGD-2, 27%)
-- US$370 Million Senior Subordinated Notes due 2017, Caa2
(LGD-5, 83%)
-- Speculative Grade Liquidity Rating, SGL-2
Moody's said the ratings outlook is positive.
BALLY TOTAL: Unveils Treatment of Claims Under Pre-Packaged Plan
----------------------------------------------------------------
Bally Total Fitness Holding Corp., and its affiliates, in
injunction with the commencement of the solicitation of
approvals for its pre-packaged chapter 11 plan of
reorganization, filed with the U.S. Securities and Exchange
Commission its pre-packaged chapter 11 plan and an accompanying
disclosure statement explaining that plan.
Treatment of Claims
Under the pre-packaged chapter 11 plan, the claims are expected
a 100% recovery;
* Administrative Claims, estimated at US$24,704,600;
* Priority Tax Claims, estimated at US$17,904,440;
* Non-Tax Priority Claims, estimated at US$25,265,635;
* Other Secured Claims, estimated at US$15,040,312;
* Unimpaired Unsecured Claims, estimated at US$107,222,660;
and
* Lenders Claims, estimated at US$262,400,000.
Holders of Senior Notes, with claims estimated at
US$235,000,000, on the effective date, will receive the
Prepetition Senior Notes Indenture Amendment Fee and the New
Senior Second Lien Notes, which alter their contractual rights
as set forth in the New Senior Second Lien Notes Indenture.
Holders of Prepetition Senior Subordinated Notes, owed an
estimated US$323,041,667, and Holders of Rejection Claims
against Bally Total will receive:
(a) New Subordinated Notes with a principal amount equal to
24.8% of the amount of such Allowed Claim,
(b) New Junior Subordinated Notes with a principal amount
equal to 21.7% of the amount of such Allowed Claim,
(c) 0.00093 shares of New Common Stock per US$1.00 of
Allowed Claim and
(d) Rights to purchase Rights Offering Senior Subordinated
Notes with a principal amount equal to 27.9% of the
amount of such Allowed Claim.
Holders of Rejection Claims against any of Bally's affiliates,
at the company's option, will receive either:
(a) cash in an amount equal to the amount of the Claim,
(b) other less favorable treatment to which the Holder and
the Debtors agree or
(c) quarterly installments over a 5 year period equal to the
amount of the Claim plus interest at 12-3/8% per annum.
Holders of Subordinated Claims will receive nothing under the
plan.
On the Effective Date, the Old Equity Interests of Bally will be
canceled and the Holders will receive no distribution.
The Reorganized Debtors will retain the Interests they hold in
Affiliate Debtors.
A full-text copy of the Pre-Packaged Chapter 11 Plan and
Disclosure Statement may be viewed for free at:
http://ResearchArchives.com/t/s?214a
About Bally Total Fitness
Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT)(OTC BB: BFTH) -- http://www.ballyfitness.com/-- is
a commercial operator of fitness centers in the U.S., with over
375 facilities located in 26 states, Mexico, Canada, Korea,
China and the Caribbean under the Bally Total Fitness(R), Bally
Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally
offers a unique platform for distribution of a wide range of
products and services targeted to active, fitness-conscious
adult consumers.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain
holders of over 80% in amount of its 9-7/8% Senior Subordinated
Notes due 2007. The company plans to implement the proposed
restructuring through a pre-packaged Chapter 11 bankruptcy
filing of the parent company, Bally Total Fitness Holding
Corporation, and certain of its subsidiaries.
BENQ CORP: K.Y. Lee Loses CEO Title in Some Subsidiaries
--------------------------------------------------------
BenQ Corp?s chairman, K.Y. Lee, retained his chairmanship but
will lose his CEO titles at some companies in the BenQ Group,
amid a management reshuffle announced just weeks before his
insider stock trading case begins in Taiwan, IDG News Service
reports.
Mr. Lee, the long-standing chairman of the company and head of
the BenQ Group, lost his CEO title at LCD panel maker AU
Optronics Corp., and at BenQ Corp., an official confirmed with
the news agency.
This also confirmed the July 2, 2007 report from The Wall Street
Journal which said that the board of AU Optronics named Vice
Chairman and Chief Operating Officer H.B. Chen as chief
executive, succeeding Mr. Lee, who will leave the post in
September. Mr. Lee will remain as the company's chairman, and
Mr. Chen will keep his post as vice chairman, The Journal said,
citing AU Optronics? statement.
AU Optronics didn't say why Mr. Lee was leaving his post as CEO,
but analysts told The Journal it may be tied to allegations he
was involved in an insider-trading deal.
On Mar. 16, 2007, the Troubled Company Reporter - Asia Pacific
reported that Taiwanese prosecutors raided BenQ's headquarters
on suspicion that some of its executives may be involved in
insider trading. Eric Yu, BenQ's chief financial officer, was
detained without bail after the raid. Mr. Lee and President Lee
His-hua were released after paying NT$15 million and NT$10
million bail respectively after being questioned over alleged
involvement in insider trading, the TCR- AP said.
The current management reshuffle, and the announcement of a new
name for BenQ Corp., comes just weeks before court proceedings
are set to begin on the insider stock trading case at the
Taoyuan District Court in Taiwan, Dan Nystedt of IDG notes.
Procedural meetings are slated to begin July 12.
The reorganization is expected to be final by Sep. 1, 2007,
where Mr. Lee will be chairman of Qisda, BenQ, and AU Optronics
once the change is finished, but he will not hold the CEO title
at any of the companies, Mr. Nystedt says. Hsiung Hui, an
executive vice president at AU Optronics, will become the new
president of Qisda, while Conway Lee will become the president
of BenQ. The CEO title will not be used at either company, a
BenQ representative told IDG News.
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, camera phones, and other products.
BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses. The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a
buyer for the company by the Dec. 31, 2006 deadline.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.
CHINA CHILDREN: Creditors? Proofs of Debt Due by July 30
--------------------------------------------------------
The creditors of China Children and Teenagers (Hong Kong) Fun
Limited are required to file their proofs of debt by July 30,
2007, to be included in the company?s dividend distribution.
The company went into liquidation on June 21, 2007.
The company?s liquidator is:
Lee Kit Mei
Winbase Centre, 20th Floor
208 Queen?s Road, Central
Hong Kong
CITIC RESOURCES: Australian Unit Lifts Macarthur Stake to 19.9%
---------------------------------------------------------------
Citic Resources Australia Pty Ltd, the subsidiary of China's
Citic Resources Holdings Ltd, has raised its stake in Australian
miner Macarthur Coal Ltd. to 19.9%, Reuters reports.
Citic, according to Reuters, previously held an 11.62% stake
before buying a further 15.68 million shares at US$7.20 a share
from the Talbot Group, the company said.
With the current action, any additional interest now taken by
Citic?s unit would have to be declared as a takeover attempt
under Australian securities regulations, the report notes.
Citigroup analyst Jonathan Battershill also told Reuters that
the added stake puts Citic "in the box seat for any potential
M&A activity."
Talbot Group remains the company's largest shareholder with
27.20% stake.
Macarthur supported the increase of Citic?s stake by saying in
statement that it "merely consolidated the underlying
independence of the company."
* * *
Incorporated in Bermuda in 1997, CITIC Resources has its shares
listed on the Hong Kong Stock Exchange. The company positions
itself as an integrated provider of key commodities and
strategic natural resources with particular focus in oil
business. The principal activities of the company and its
subsidiaries are in the fields of oil, aluminium, coal, import
and export of commodities, manganese and iron ore. CITIC Group
(formerly China International Trust and Investment Corporation)
became the majority controlling shareholder of the Company in
March 2004, indirectly holding interest in the Company of over
54%.
Standard & Poor's Ratings Services on May 9, 2007, assigned its
BB long-term corporate credit rating to CITIC Resources Holdings
Ltd. The outlook is developing. At the same time, it issued
its BB issue rating to a proposed intermediate-term U.S. dollar
benchmark issue of senior unsecured notes by Citic Resources
Finance (2007) Ltd.
DYNASTY PROPERTY: Requires Creditors to Prove Debts by July 16
--------------------------------------------------------------
The creditors of Dynasty Property Investment Limited are
required to file their proofs of claim by July 16, 2007.
Creditors who will not be able to file their claims by the due
date will be excluded from sharing in the company?s dividend
distribution.
The company?s liquidators are:
Jacky Chung Wing Muk
Edward Simon Middleton
Alexandra House, 27th Floor
18 Chater Road, Central
Hong Kong
DYNASTY SYNDICATE: Proofs of Claim Due by July 16
-------------------------------------------------
Dynasty Syndicate Investment Limited, which is in liquidation,
requires its creditors to file their proofs of debt by July 16,
2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company?s dividend distribution.
The company?s liquidators are:
Jacky Chung Wing Muk
Edward Simon Middleton
Alexandra House, 27th Floor
18 Chater Road, Central
Hong Kong
EVERMAX INDUSTRIAL: Court to Hear Wind-Up Petition on July 11
-------------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Evermax Industrial Limited on July 11, 2007, at
9:30 a.m.
The petition was filed by Shing On Footwear (HK) Company Limited
on May 4, 2007.
Shing On?s solicitor is:
Messrs. Chak & Associates
HK Diamond Exchange Building, 11th Floor
8-10 Duddell Street, Central
Hong Kong
FERMAY INVESTMENTS: Placed Under Voluntary Liquidation
------------------------------------------------------
On June 22, 2007, the shareholders of Fermay Investments Limited
passed a resolution to voluntarily wind up the company?s
operations and appointed Pang Siu Chik, Alick as liquidator.
The Liquidator can be reached at:
Pang Siu Chik, Alick
China Merchants Building, Room 804
152-155 Connaught Road, Central
Hong Kong
FERRO CORP: Richard Hipple Joins Board's Finance Committee
----------------------------------------------------------
Ferro Corporation's Board of Directors has elected Richard J.
Hipple to serve on its Finance Committee. The election
increases the number of members of Ferro?s Board to ten.
Mr. Hipple has served as Chairman, President and Chief Executive
Officer of Brush Engineered Materials Inc. since 2006. He
joined Brush in 2001 and has held a variety of senior management
positions, including President and Chief Operating Officer.
Prior to joining Brush, Mr. Hipple was President of LTV Steel
Company, a business unit of LTV Corporation.
Mr. Hipple received a bachelor?s degree in engineering from
Drexel University in 1975.
?We are very pleased to have Dick join our Board and provide us
the benefits of his experience in managing global operations of
multinational companies,? said Ferro Chairman, President and
Chief Executive Officer James F. Kirsch. ?I look forward to
Dick?s guidance and contribution to the Board as we accomplish
our transformation of Ferro into a winning organization.?
Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE)
-- http://www.ferro.com/-- is a global producer of an array of
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications. Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics. Revenues were US$2 billion
for the FYE ended Dec. 31, 2006.
Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service assigned a B1 corporate
family rating to Ferro Corporation. Moody's also assigned a B1
rating to the company's US$200 million senior secured notes
(issued as unsecured notes in 2001) due in January 2009 and an
SGL-3 speculative grade liquidity rating.
HENDERSON STRATECH: Shareholders Resolve to Close Business
----------------------------------------------------------
On June 11, 2007, the shareholders of Henderson Stratech Limited
passed a resolution to voluntarily wind up the company?s
operations and appointed Lee King Yue as liquidator.
The Liquidator can be reached at:
Lee King Yue
Two International Finance Centre, 72-76th Floor
8 Finance Centre, Central
Hong Kong
HERCULES INC: S&P Revises BB Rating's Outlook to Positive
---------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Wilmington, Delaware-based Hercules Inc. to positive from stable
and affirmed the existing 'BB' corporate credit rating.
The outlook revision recognizes the potential for a continuation
of the steady strengthening of key cash flow protection
measures.
S&P also raised the rating on the company's 6.6% notes due 2027
to 'BBB-' from 'BB' and assigned a '1' recovery rating,
reflecting our expectation of very high recovery (90%-100%) in
the event of default and asset protection on par with the
secured bank debt.
"We could raise all of the ratings within the next 12 months if
business conditions remain favorable and the company's leverage
policies support a financial profile that exceeds expectations
for the current ratings," said Standard & Poor's credit analyst
Wesley E. Chinn.
The ratings reflect Hercules' aggressive, albeit declining, debt
balance; low-growth, very competitive pulp and paper chemicals
markets; and some exposure to asbestos-related liabilities.
These negatives are partially offset by Hercules' satisfactory
business profile -- generating annual revenues of about US$2
billion -- in the specialty chemical sector, a long track record
of good operating margins, and improving cash flow generation.
Hercules derives roughly 60% of its consolidated operating
earnings from the Aqualon group, a leading producer of water-
soluble polymers. Diverse end markets include water-based
paints and coatings, construction materials, personal care,
pharmaceutical, food, and oil and gas drilling. Another
positive is a strong global presence, as more than 60% of
Aqualon's sales come from outside the U.S. Aqualon's results
should continue to benefit from increasing environmental
awareness, regulation favoring water-soluble polymers, global-
supply arrangements with customers, and the increasing use of
products in emerging markets. In particular, volume growth
should reflect new capacity expansions in China, and S&P expect
the overall energy business to be one of the larger growth
components for Aqualon.
Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures
and markets chemical specialties globally for making a variety
of products for home, office and industrial markets. The
company has its regional headquarters in China and Switzerland,
and a production facility in Brazil.
ICBC: Completes Sale of Equity Fund; Plans Another Offer
--------------------------------------------------------
The Industrial and Commercial Bank of China raised
CNY4.45 billion after completing the sale of its Qualified
Domestic Institutional Investor fund on June 29, reports say,
citing the bank?s statement.
The bank, according to Reuters, started to take subscriptions
for the fund, named Pearl of the Orient, on May 29.
With the current success of the offering, the bank said that it
"plans another fund specializing in stocks abroad this month."
ICBC will use 50% of the new fund to invest in shares of
mainland companies listed in Hong Kong, Reuters relates. The
other half will then be invested in high-yield bonds and money-
market products across Asia as a hedging device to guard against
appreciation of renminbi, China Knowledge says, citing the bank
statement.
Launched in July 2006, the QDII scheme is the largest fund
empowering domestic investors to purchase financial products
overseas via mainland commercial banks and other financial
institutions, China Knowledge relates.
To avail of the fund, clients have to invest at least CNY300,000
in the product, Shanghai Daily notes.
* * *
The Industrial and Commercial Bank of China --
http://www.icbc.com.cn/-- is the largest state-owned commercial
bank, and is authorized by the State Council and the People's
Bank of China. ICBC conducts operations across China as well as
in major international financial centers.
On Sept. 18, 2006, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings affirmed ICBC's Individual D/E
rating.
Moody's Investors Service upgraded on December 6, 2006, to D-
from E+ the Bank Financial Strength Rating for Industrial and
Commercial Bank of China. The D- BFSR has a stable outlook.
The upgrade concludes a review of ICBC's BFSR started on
August 9, 2006.
PETROLEOS DE VENEZUELA: Chinese Firm Wants to Drill at Orinoco
--------------------------------------------------------------
China Petrochemical Corp., aka Sinopec Group, is in talks with
Petroleos de Venezuela for a drilling contract at the Orinoco
projects that were formerly ran by Exxon Mobil Corp. and
ConocoPhillips, Bloomberg News reports.
ConocoPhillips and Exxon chose to leave Venezuela rather than
take minority interests in the Orinoco projects.
Tong Peixin, a spokesman for unit Sinopec International
Petroleum Exploration & Production Corp., told Bloomberg, that
the group is seeking "heavy oil" projects.
China has inked several accords with Venezuela in order to
secure crude products to meet its growing needs. Venezuela, for
its part, would want to have an alternative market to the United
States, its biggest customer.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
SINO PROGRESS: Appoints Leung Fung Yee Alice as Liquidator
----------------------------------------------------------
On June 22, 2007, Leung Fung Yee Alice was appointed as
liquidator of Sino Progress Limited, through a special
resolution passed on that day.
The Liquidator can be reached at:
Leung Fung Yee Alice
Jardine House, 5th Floor
1 Connaught Place, Central
Hong Kong
STRONG OFFER INVESTMENT: Sets Annual Meetings for July 27
---------------------------------------------------------
The members and creditors of Strong Offer Investment Limited
will have their annual meetings on July 27, 2007, at 3:00 p.m.,
and 3:30 p.m., respectively, to receive the liquidator?s report
about the company?s wind-up proceedings and property disposal.
The meeting will be held on the 12th Floor of Bel Trade
Commercial Building at 1-3 Burrows Street in Wanchai, Hong Kong.
TK ALUMINUM: Unit Closes Equity Interest Sale in Nanjing Teksid
---------------------------------------------------------------
TK Aluminum Ltd., the indirect parent of Teksid Aluminum
Luxembourg S.A R.L., S.C.A., disclosed that on June 27, 2007,
its subsidiary Teksid Aluminum S.r.l. completed the sale of its
remaining 40% equity interest in Nanjing Teksid Aluminum Foundry
Co., Ltd. to Tenedora Nemak, S.A. de C.V., a subsidiary of ALFA,
S.A.B. de C.V. Teksid Luxembourg indirectly sold an additional
30% stake in Nanjing Teksid to Nemak on March 15, 2007. With
the completion of the sale of this remaining interest in Nanjing
Teksid, the company has consummated the sales contemplated by
the previously disclosed revised terms of the Nemak transaction.
Pursuant to the revised terms of the Nemak transaction, the
aggregate purchase price allocated to the sale of the Company's
entire 70% interest in Nanjing Teksid and receivables related
thereto was approximately US$15.3 million in cash consideration
plus the issuance of an additional 0.21% of synthetic equity
interest in the Nemak business (bringing the company's total
synthetic equity interest in the Nemak business to 6.68%). At
the closing of the sale of the company's 40% equity interest in
Nanjing Teksid, the company's subsidiaries received aggregate
net cash proceeds of approximately US$14.8 million for the
company's entire 70% indirect interest in Nanjing Teksid and
certain related receivables, which aggregate net proceeds
included a payment of approximately US$1.9 million for Teksid
Luxembourg's 30% interest in Nanjing Teksid indirectly
transferred to Nemak as part of the initial closing on March 15,
2007, and approximately US$1.4 million related to the purchase
of a loan receivable from Teksid Luxembourg. In addition, at
the June 27th closing, Teksid Italy received an additional
approximately US$1.7 million in cash related to the purchase of
certain equipment used by Nanjing Teksid from Teksid Italy, and
Teksid Luxembourg received an additional approximately US$1
million in cash as the result of the issuance of a loan by ALFA.
The aggregate cash proceeds were based on the purchase price
allocation and estimated withholding taxes as contemplated by
the revised terms of the Nemak transaction.
Teksid Aluminum -- http://www.teksidaluminum.com/--
manufactures aluminum engine castings for the automotive
industry. Principal products include cylinder heads, engine
blocks, transmission housings, and suspension components. The
company operates 15 manufacturing facilities in Europe, North
America, South America, and Asia. The company maintains
operations in Italy, Brazil, and China.
Until Sept. 2002, Teksid Aluminum was a division of Teksid
S.p.A., which was owned by Fiat. Through a series of
transactions completed between Sept. 30, 2002 and Nov. 22, 2002,
Teksid S.p.A. sold its aluminum foundry business to a consortium
of investment funds led by equity investors that include
affiliates of each of Questor Management Company, LLC, JPMorgan
Partners, Private Equity Partners SGR SpA and AIG Global
Investment Corp. As a result of the sale, Teksid Aluminum is
now owned by its equity investors through TK Aluminum Ltd., a
Bermuda holding company.
* * *
On Jan. 16, Moody's Investors Service placed TK Aluminum Ltd.'s
long-term corporate family rating at Caa3.
ZTE CORP: Cabinet Meeting Copy Reveals Loopholes in Deal
--------------------------------------------------------
A confidential transcript of meeting between the members of the
Philippine Government?s cabinet and the National Economic
Development Authority revealed that the US$329.5-million
contract between the Government and ZTE Corp. for a nationwide
broadband network apparently violated a Malacanang policy to
undertake the project on a build-operate-transfer basis to save
on public funds, The Philippine Star reports.
According to The Star, the Cabinet and the NEDA met on Nov. 21,
2006, where they all agreed that all government agencies and
offices needed to be linked through a privately funded broadband
network. The transcript of the meeting also showed President
Arroyo stating that she did not want the government to spend for
a project that could be funded by a private proponent.
However, according to Paolo Romero of The Philippine Star, under
the ZTE contract, the government will avail itself of a loan
from the China Eximbank to finance the National Broadband
Network, which will be paid in 20 years at 3% interest with a
five-year grace period.
No officials were available Sunday to explain the turnaround,
the paper says.
As reported by the Troubled Company Reporter - Asia Pacific on
May 9, 2007, Amsterdam Holdings and Arescom claimed that ZTE
Corp. and the DOTC "hastily brokered" the national broadband
network project. The two firms said that the department signed
the agreement without the benefit of a competitive bidding
process as required by Republic Act No. 9184, or the Government
Procurement Reform Act.
Transportation and Communications Secretary Leandro Mendoza
however defended the deal as saying that it was awarded to ZTE
without any bidding because it was a government-to-government
deal on a supply contract.
Executive Secretary Eduardo Ermita and Mr. Mendoza also said
last week that the ZTE deal remains conditional depending on a
coming legal opinion from the Department of Justice to determine
whether contract was an executive agreement or not. If the
justice department thinks the loan agreement was not an
executive agreement, a bidding could commence, Mr. Mendoza said.
Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and
communication terminal equipment. The group operates both in
the domestic and international market.
The Troubled Company Reporter - Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'. The rating
outlook is stable.
ZTE CORP: Defends Broadband Deal; Losing Bidders Incompetent
------------------------------------------------------------
ZTE Corp. defended its controversial US$329.5-million deal with
the Philippine Government for the national broadband network
project amid allegations that the signing of the deal was in
violation of the competitive bidding process as required by the
law, Manila Standard Today reports.
Zhang Shumin, the director of the ZTE sales management
department, rebuffed accusations that his company had connived
with Filipino authorities in taking a short cut in sealing the
lucrative contract, while downplaying the proposals of other
interested parties in the project.
On May 9, 2007, the Troubled Company Reporter - Asia Pacific
reported that Amsterdam Holdings and Arescom claimed that ZTE
Corp. and the DOTC "hastily brokered" the national broadband
network project. The two firms said that the department signed
the agreement without the benefit of a competitive bidding
process as required by Republic Act No. 9184, or the Government
Procurement Reform Act.
According to Mr. Zhang, compared with other competitors bidding
for the project, only ZTE complied with and met all the
government?s requirements. Other interested parties in the
project were Arescom Inc. of the US, which offered to undertake
the National Broadband Network project for half the Chinese
cost, and Amsterdam Holdings Inc., which offered US$240 million.
However, Mr. Zhang said Arescom and Amsterdam submitted only
technical proposals without the necessary documents showing
proof of financing capability, company profile and other
supplementary documentation. Amsterdam offered to complete a
nationwide telecom network for only US$240 million, however,
Amsterdam lacked financing capacity and technical track record,
Mr. Zhang pointed out.
?We should probably point out that Amsterdam Holdings Inc. has
total assets of only around PHP301,650, according to its
financial statements on file in Securities and Exchange
Commission.
On Arescom, Mr. Zhang said the American firm submitted its
technical proposal only to the Department of Interior and Local
Government, which is not an authorized government proponent for
the project.
?The bidder was proposing to adopt the Very Small Aperture
Terminal technology to build the nationwide broadband backbone
which was unacceptable to the government. Furthermore, the
coverage was only for 22 cities which are very limited, compared
with ZTE?s nationwide coverage,? Manila Standard quotes Mr.
Zhang.
Headquartered in Shenzhen, China, ZTE Corp --
http://www.zte.com.cn/-- produces and sells general system and
communication terminal equipment. The group operates both in
the domestic and international market.
The Troubled Company Reporter - Asia Pacific reported on Dec. 1,
2006, that Fitch Ratings assigned ZTE Corp. long-term foreign
and local currency Issuer Default ratings of 'BB+'. The rating
outlook is stable.
=========
I N D I A
=========
IMAX CORP: Unable to File 2006 Form 10-K by June 30 Deadline
------------------------------------------------------------
IMAX Corporation was not able to file its 2006 Annual Report on
Form 10-K and quarterly report on Form 10-Q for the quarter
ended March 31, 2007, by the June 30, 2007.
The company however it expects to be able to do so shortly.
In March 2007, the company previously announced that it would
delay filing its financial statements due to the discovery of
certain accounting errors and subsequently broadened its
accounting review to include certain other accounting matters
based on comments received by the company from the staff of the
Securities and Exchange Commission and the Ontario Securities
Commission.
The company believes that it has substantially addressed these
comments by revising its accounting policy with regard to
revenue recognition for theatre systems.
The revised policy, which will be detailed in the Company's 10-K
and 10-Q, has the effect of shifting a portion of systems
revenue between periods during the years 2002 through 2006; in
the majority of cases, the timing of revenue recognition shifts
by 90-180 days.
The company previously announced that it had executed a
supplemental indenture to the indenture governing its 9-5/8%
senior notes dues 2010, pursuant to which:
(i) any existing defaults arising from a failure to comply with
the reporting covenant under the Indenture had been waived;
and
(ii) the failure by the company to comply with the reporting
covenant until June 30, 2007 shall not constitute a default
or be the basis for an event of default under the
Indenture.
Because the company was not able to file its 10-K and 10-Q by
June 30, 2007, it expects to be in default of this covenant.
However, the company expects to make such filings within the 30
day period, after notice of default, which allows for the cure
of such default under the Indenture before holders can seek to
accelerate the indebtedness.
In addition, the company obtained a further waiver under its
bank credit agreement of the covenant to deliver its audited
financial statements until July 31, 2007.
The company stated it did not intend to seek any further
extensions in connection with its filing obligations from any
parties.
The statements set forth in this press release are preliminary,
reflect information currently known to the company and are
subject to change as a result of the accounting review and
restatement process, subsequent events and the completion of the
financial statements by management and the audit of the
financial statements by the Company's independent auditors,
PricewaterhouseCoopers, LLP. In the event of an acceleration of
any or all of its indebtedness, the company may not have
sufficient access to capital to refinance or repay any debt that
is so accelerated, and any such acceleration could have a
material adverse effect on the Company's financial position.
About IMAX Corp.
Headquartered jointly in New York City and Toronto, Canada, IMAX
Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of
the world's leading entertainment technology companies, with
particular emphasis on film and digital imaging technologies
including 3D, post-production and digital projection. IMAX is a
fully-integrated, out-of-home entertainment enterprise with
activities ranging from the design, leasing, marketing,
maintenance, and operation of IMAX(R) theatre systems to film
development, production, post-production and distribution of
large-format films. IMAX also designs and manufactures cameras,
projectors and consistently commits significant funding to
ongoing research and development. IMAX has locations in
Guatemala, India, Italy, among others.
* * *
Moody's Investors Service assigned a Caa1 rating on IMAX
Corporation's Senior Unsecured Debt on March 30, 2007.
LOK HOUSING: To Raise Funds Through Shares Issuance
---------------------------------------------------
Lok Housing & Constructions Ltd?s shareholders, through postal
ballot, have passed special resolutions for, among others:
-- raising of funds through the issue of securities in the
international market; and
-- the proposal for qualified institutional placement.
In May 2007, the company?s board of directors proposed to raise
funds through issue of American Depositary Receipts, Global
Depositary Receipts, Foreign Currency Convertible Bonds or QIP
not exceeding US$200 million.
The shareholders have also passed an ordinary resolution for
increase in authorized share capital of the company from the
present limit of INR60,00,00,000 (divided into 6,00,00,000
equity shares of INR10 each) to INR67,00,00,000 (comprised of
6,50,00,000 equity shares of INR10 each and 2,00,00,000
preference shares of INR1 each).
Headquartered in Mumbai, India, Lok Housing and Constructions
Ltd constructs residential buildings. Apart from housing
construction, the company manufactures concrete blocks catering
to in-house needs. The company is also involved in the
construction of railway quarters, railway bridges and slum
rehabilitation programs through its associate companies.
Credit Rating Information Services of India Ltd, on June 27,
2007, reaffirmed its ?D? rating on Lok Housing?s INR170-million
non-convertible debentures. The rating continues to indicate
that the instrument is in default. The arrears on interest and
principal payments have not been entirely cleared.
LSI CORP: Sells Consumer Products Unit to Magnum Semiconductor
--------------------------------------------------------------
LSI Corporation and Magnum Semiconductor, Inc., on June 27,
2007, entered into a definitive agreement under which Magnum
will acquire the LSI consumer products business in a transaction
to be funded by private equity investment.
The combination of each company?s consumer products portfolio is
expected to allow Magnum to strengthen its position as a leading
provider of chips, software and platforms for consumer
entertainment systems. The sale of the consumer products
business will enable LSI to focus its investments on its
businesses in the storage, networking and mobility market
segments. The transaction is expected to close in the third
quarter and is not subject to regulatory approval. Financial
terms are not being disclosed.
Jack Guedj, president and CEO of Magnum Semiconductor, said, "By
taking this step we bring in people, talent and products that
will accelerate our revenue ramp and our R&D efforts. Magnum now
becomes one of the leaders in audio/video chips and software for
the consumer electronics market. We also gain access to the
market for professional broadcast solutions that deliver content
to consumers."
With this transaction, Magnum Semiconductor strengthens the
company?s existing DVD, digital TV and digital entertainment
center solutions while also adding MPEG-2 and H.264 high-
definition media processing and low-power 3D graphics products
to its portfolio. "Combining Magnum Semiconductor and the LSI
consumer products business enhances and expands the products and
services we offer to consumer electronics manufacturers
worldwide," Mr. Guedj said.
Abhi Talwalkar, LSI president and CEO, said, "After exploring a
full range of strategic options, we have determined that the
best opportunity for the long term success of our consumer
products business is an external one. The combination of both
companies? strong product portfolios, together with strong
backing from top-tier private equity firms and a solid technical
and management team will position Magnum to achieve scale and
success in the consumer electronics market."
The definitive agreement is the result of an ongoing strategic
review within LSI of its business portfolio following its merger
with Agere Systems on April 2, 2007.
Under the terms of the agreement, Magnum will purchase the LSI
DoMiNo(R), Domino[X](TM) and Zevio(TM) architectures, products
and related IP of the LSI consumer products business.
Additionally, Magnum will offer employment to a significant
number of LSI employees associated with the business. The two
companies will also work together to seamlessly transition the
business to continue to offer customers the highest quality
products, services and support.
About Magnum Semiconductor
Magnum Semiconductor -- http://www.magnumsemi.com/-- provides
chips, software and reference platforms for recording, viewing
and managing high-quality audio/video content. Magnum
Semiconductor is a privately held corporation backed by August
Capital, KTB Ventures, Investcorp Technology Partners, Investor
Growth Capital, and WK Technology Fund with headquarters in
Milpitas, California, and sales and engineering offices in
Korea, Taiwan, Japan and China.
About LSI Consumer Products Group
The LSI Consumer Products Group provides innovative digital
media processing and silicon solutions to industry-leading,
worldwide consumer electronics manufacturers including LG,
Philips, and Motorola. The division offers a complete line of
products for DVD recorder, HD set-top box, etoy/edutainment, PND
and professional video production/broadcasting devices which
enable solutions that deliver entertainment into and throughout
the Digital Home.
About LSI Logic
Based in Milpitas, California, LSI Logic Corporation (NYSE: LSI)
-- http://www.lsi.com/-- provides innovative silicon, systems
and software technologies that enable products which seamlessly
bring people, information and digital content together. The
company offers a broad portfolio of capabilities and services
including custom and standard product ICs, adapters, systems and
software that are trusted by the world?s best known brands to
power leading solutions in the Storage, Networking and Mobility
markets.
The company has offices in the United Kingdom, India, Korea, and
Singapore.
* * *
As reported in the Troubled Company Reporter on April 11, 2007,
Standard & Poor's Ratings Services raised its corporate credit
rating on Milpitas, California-based LSI Corp. to 'BB' from
'BB-' and removed the rating from CreditWatch, where it was
placed with positive implications on March 15, 2007. The outlook
is positive.
LSI CORPORATION: Plans 900 Job Cuts to Reduce Cost
--------------------------------------------------
LSI Corporation reported a broad restructuring and an
acceleration of merger related synergies to further reduce its
operating expenses. The restructuring is a result of a portfolio
review that LSI has been conducting under a three-phase business
acceleration plan adopted following its merger with Agere
Systems on April 2, 2007.
Related to this ongoing review, LSI entered a definitive
agreement with Magnum Semiconductor, Inc. in which they will
acquire the LSI consumer products business for an undisclosed
amount. As part of the cost savings, LSI will eliminate about
900 positions or about 13% of its non-production workforce
across all business and functional areas on a global basis.
These latest initiatives put LSI ahead of schedule on its merger
integration and are expected to reduce LSI operating expenses to
between US$255 million and US$265 million in the third quarter
and to between US$245 million and US$255 million in the fourth
quarter of 2007. The corresponding operating expenses are
expected to be between US$290 million and US$310 million for the
third quarter of 2007 and between US$275 million and US$295
million for the fourth quarter of 2007. The quarterly operating
expense run rate exiting 2007 is inclusive of all previously
announced synergies and cost savings. The company expects to
make further progress on operating expenses in 2008.
Abhi Talwalkar, LSI president and chief executive officer, said,
"We are accelerating our timetable for aligning the resources of
the new LSI with market opportunities and focusing on those
markets where we possess leading technology and sustainable
competitive advantages. [Wednes]day?s actions will position the
company to improve our gross margins in our semiconductor
business and to grow profitably in a competitive, fast-changing
market.?
The company also updated its outlook for the second quarter
ending June 30, 2007 and revised its estimated revenue range to
between US$650 million and US$670 million. Mr. Talwalkar said,
?Our revised outlook for the second quarter reflects greater
than anticipated softness in our businesses. Despite this, our
business remains fundamentally strong, and we are confident of
our long term direction. We continue to win new designs and we
are strengthening our already solid relationships with industry-
leading customers. We expect revenue to grow sequentially in the
second half of 2007 based on typical seasonal patterns.?
Bryon Look, chief financial officer, said, ?The steps we are
t[ook Wednes]day are designed to accelerate the synergies from
the merger and further improve our cost structure. As a result,
we will be better positioned to increase operating income and
create shareholder value.?
Additionally, the company said that it has purchased about
US$400 million of its stock during the quarter as part of its
previously announced US$500 million stock repurchase program.
Mr. Look added, ?We remain committed to our share repurchase
program and anticipate that our cash-generating capability would
enable us to continue to repurchase shares in the future.?
The company continues to work through phase one of its three-
phase business acceleration plan, with current businesses of
storage systems and semiconductors targeting storage, networking
and mobility applications.
About LSI Logic
Based in Milpitas, California, LSI Logic Corporation (NYSE: LSI)
-- http://www.lsi.com/-- provides innovative silicon, systems
and software technologies that enable products which seamlessly
bring people, information and digital content together. The
company offers a broad portfolio of capabilities and services
including custom and standard product ICs, adapters, systems and
software that are trusted by the world?s best known brands to
power leading solutions in the Storage, Networking and Mobility
markets.
The company has offices in the United Kingdom, India, Korea, and
Singapore.
* * *
As reported in the Troubled Company Reporter on April 11, 2007,
Standard & Poor's Ratings Services raised its corporate credit
rating on Milpitas, California-based LSI Corp. to 'BB' from
'BB-' and removed the rating from CreditWatch, where it was
placed with positive implications on March 15, 2007. The outlook
is positive.
MYSORE CEMENTS: Appoints S. R. Batliboi as Auditors
---------------------------------------------------
Mysore Cements Ltd?s members, at the company?s 48th Annual
General Meeting on June 14, 2007, have agreed to, among others,
the appointment of S. R. Batliboi & Co., Chartered Accountants,
as the company?s auditors to hold office from the conclusion of
the AGM until the next AGM. S. R. Batliboi will replace
retiring auditors, S. R. Batliboi & Associates.
The shareholders also accorded to the:
-- re-appointment of Sidharth Birla, and appointment of
Amitabha Ghosh, P. G. Mankad, Shardul Shroff and
S. Krishna Kumar, as directors, liable to retire by
Rotation; and
-- appointment of Ashish Kumar Guha as managing director of
the company for a period of five years with effect from
Aug. 23, 2006, without any remuneration.
The members also agreed to the adoption of the audited accounts
of the company for the financial year (nine months) ended
Dec. 31, 2006, and the reports of the auditors and the directors
on the accounts.
Additionally, the members granted the company?s board of
directors the authority to make contributions or donations from
time to time, to any institute, society, trust, person, body or
fund for any charitable or other purpose not directly relating
to the business of the company any amount the aggregate of which
will, in any financial year, not exceed INR15,00,000 or up to
five percent of the average net profits of the company,
whichever is greater.
About Mysore Cements
Mysore Cements Ltd. is engaged in the cement business. Its
products include cement, sponge iron and M.S. ingots.
The company reported at least two consecutive yearly net losses
-- INR899.09 million in the year ended March 31, 2006, and
INR247.87 million in the year ended March 31, 2005.
The board of directors has decided to adopt a calendar year end,
changing it from the financial year-end (March 31). For the
last audited period (the nine-month period from April 1, 2006,
to December 31, 2006), the company booked a net loss of INR98.62
million on revenues totaling INR4.22 billion.
QUEBECOR MEDIA: Sues Osprey Media on Black Press Bid Acceptance
---------------------------------------------------------------
Osprey Media Income Fund disclosed that on June 28, 2007
Quebecor Media Inc. commenced a proceeding in the Ontario
Superior Court of Justice for certain orders that would, in
effect, prohibit Osprey's Board of Trustees from considering or
dealing with the proposed take-over bid for Osprey from Black
Press Ltd. of Victoria, British Columbia.
The company seeks to block Black Press's bid of US$8.25 per
Osprey unit. The company had bid US$7.25 per unit for Osprey.
The company says that its agreement with Osprey contains a
customary provision allowing Osprey to accept a higher
unsolicited bid in certain circumstances.
Osprey says it intends to vigorously oppose the company's
application, and understands that the application will be heard
by a Justice of the Commercial List of the Superior Court of
Justice in Toronto on Wednesday, July 4, 2007.
Prior Statement
The company had previously said that it was considering its
course of action in response to Black Press' offer for Osprey
Media.
On June 12, 2007, Quebecor Media received a letter from Torstar
Corporation informing it that unless it agreed to sell to
Torstar certain assets of Osprey, Torstar would finalize its
arrangements with a third party that would submit a competing
bid for Osprey.
Quebecor Media did not respond to Torstar's proposal. Quebecor
Media was subsequently informed by Osprey that Black Press had
submitted its proposal to acquire Osprey and that Torstar owned
19% of Black Press and was supportive of the Black Press
proposal.
Quebecor Media therefore has reason to believe that Black Press
may have entered into arrangements with Torstar that breach its
standstill covenants in favour of Osprey and disqualify Black
Press's offer as a "Superior Proposal" under Quebecor Media
Inc.'s support agreement with Osprey.
Quebecor Media is therefore reviewing all of its options in the
circumstances, and may be required to use the judicial process
to enforce its rights.
About Osprey Media
Osprey Media Income Fund (OSP.UN - TSX) is one of Canada's
leading publishers of daily and non-daily newspapers, magazines
and specialty publications. Its publications include 20 daily
newspapers and 34 non-daily newspapers together with shopping
guides, magazines and other publications.
About Black Press
Black Press is the largest private newspaper publisher in
Canada. It owns 150 community papers and 15 regional web press
operations. The company operates primarily in Western Canada,
Washington, Oregon, Akron Ohio and Honolulu. The head office is
in Victoria. Revenue is US$500,000,000. The Black family owns
80.6% of the shares of Black Press Ltd. Torstar Corporation owns
19.4%. David Black is CEO and Chairman.
About Quebecor Media
Quebecor Media Inc., a subsidiary of Quebecor Inc., owns
operating companies in numerous media-related businesses:
Videotron Ltd., the largest cable operator in Quebec and a major
Internet Service Provider and provider of telephone and business
telecommunications services; Sun Media Corporation, Canada's
largest national chain of tabloids and community newspapers; TVA
Group Inc., operator of the largest French-language general-
interest television network in Quebec, a number of specialty
channels, and the English-language general-interest station Sun
TV; Canoe Inc., operator of a network of English- and French-
language Internet properties in Canada; Nurun Inc., a major
interactive technologies and communications agency with offices
in Canada, the United States, Europe and Asia; companies engaged
in book publishing and magazine publishing; and companies
engaged in the production, distribution and retailing of
cultural products, namely Archambault Group Inc., the largest
chain of music stores in eastern Canada, TVA Films, and Le
SuperClub Videotron ltee, a chain of video and video game rental
and retail stores.
Headquartered in Montreal, Canada, the company has global
facilities in India, France and Argentina.
* * *
As reported in the Troubled Company Reporter on June 6, 2007,
Standard & Poor's Ratings Services affirmed the ratings,
including the 'BB-' long-term corporate credit rating, on
Montreal, Quebec-based Quebecor Media Inc., one of Canada's
largest cable and media companies. At the same time, Standard &
Poor's affirmed the ratings on Quebecor Media's subsidiaries,
Videotron Ltee and Sun Media Corp. (both rated BB-/Stable/--).
The outlook is stable.
STATE BANK OF INDIA: Transfers Stake in RBI to Central Gov?t.
-------------------------------------------------------------
The transfer of the State Bank of India?s entire shareholding in
the Reserve Bank of India to the central government was
completed on June 29, 2007, a filing with the Bombay Stock
Exchange reveals.
The stake, aggregating 31,43,39,200 equity shares with a face
value of INR10 each, was transferred to the government in
exchange for cash totaling INR35,531.33 crore.
Finance minister P. Chidambaram said the move to transfer the
stake to the Central Government was made to separate the
ownership and regulatory functions of the central bank, The
Telegraph relates.
The transfer was approved by the cabinet in its meeting held on
Feb. 1, 2007.
Headquartered in Mumbai, State Bank of India --
http://www.sbi.co.in/-- is a financial services group operating
primarily in the banking industry. Its core operations include
Treasury Operations, Corporate Banking Group, National Banking
Group and International Banking Group.
* * *
Standard & Poor's Ratings Services, on June 18, 2007, assigned
its 'BB' issue rating to the State Bank of India's proposed
US$225 million Hybrid Tier I perpetual notes under its US$5
billion MTN program. The Hybrid Tier I notes will be perpetual
notes with a call option 10 years from the date of issue.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual
rating.
Moody's Investors Service placed a Ba2/Not Prime rating on State
Bank of India's foreign currency bank deposits, a Ba2/Not Prime
Financial Strength Rating in June 2006.
=================
I N D O N E S I A
=================
ADARO INDONESIA: To Sell Shares in IPO for Debt Payment
-------------------------------------------------------
PT Adaro Indonesia plans to sell shares in Indonesia?s biggest
initial public offering with expectations to raise as much as
US$600 million, Bloomberg News reports.
According to the report, the company will sell between 20% and
30% of existing and new shares this year.
Bloomberg says that the proceeds from the offering will be used
to pay debt.
Adaro plants to hire Goldman Sachs Group Inc. and UBS AG as
advisers for the share sale, the report relates.
Bloomberg cites Sebastian Tobing, an analyst at PT Trimegah
Securities in Jakarta, as saying that the IPO would help Adaro
?expand their volume aggressively and take advantage of the coal
price increase.? Bloomberg explains that coal prices have
surged after China cut exports and India sought more shipments
to fire power stations. The Jakarta Mining Index has surged 77%
this year.
Adaro plans to raise output by 4.9% this year to 36 million
tons, from 34.3 million tons, Adrian Lembong, business
development manager, said in a text message, the report adds.
About PT Adaro Indonesia
Headquartered in Indonesia, PT Adaro Indonesia
-- http://www.adaro-envirocoal.com-- operates one of the
world's largest sub-bituminous coalmines in Kalimantan,
Indonesia. The company operates under a Coal Cooperation
Agreement with the Government of Indonesia, which gives it the
right to mine coal within its agreement area in the Tanjung
district of South Kalimantan Province until the year 2022 with
rights to extend by mutual agreement. There are four deposits
within the Agreement Area, which contain total coal resources of
approximately 3.0 billion tones of open cut coal characterized
by extremely thick seams of up to 50 meters with relatively low
overburden.
The coal is exceptionally clean with 0.1% sulphur, 1.2% ash and
low nitrogen and has been trademarked internationally as
Envirocool. Production commenced in 1991 and has increased
steadily since that time with sales to both export and domestic
markets reaching 25 million tonnes in 2004 making Indonesia's
largest coal producer.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 11, 2006, that Standard & Poor's Ratings Services affirmed
its 'B+' corporate credit rating on PT Adaro Indonesia. The
outlook is stable.
At the same time, Standard & Poor's affirmed its 'B+' rating on
the senior secured notes issued by Adaro's wholly owned
subsidiary, Adaro Finance B.V. The issue is unconditionally and
irrevocably guaranteed by Adaro, and its related company, PT
Indonesia Bulk Terminal. Adaro had total assets or
US$1.4 billion at March 31, 2006. It is the largest single-mine
coal producer in Indonesia, with capacity of 38 million tons per
year in 2006 and reserves of at least 14 years.
Moody's Investors Service, on May 19, 2006, affirmed the Ba3
local currency corporate family rating for PT Adaro Indonesia
and the Ba3 foreign currency rating for Adaro Finance B.V. The
outlook for the ratings remains stable.
Moody's says that the upgrade of Indonesia's foreign currency
sovereign rating to B1 from B2 does not have any impact on
Adaro's ratings.
ALCATEL-LUCENT: Finalizes Contract W/ ICO for Mobile Services
-------------------------------------------------------------
Alcatel-Lucent finalized its agreement with ICO Global
Communications (Holdings) Limited to provide end-to-end network
integration services as well as equipment, engineering and
implementation services for ICO?s alpha trial of Mobile
Interactive Media services next year. The offering will be
provided over ICO?s integrated satellite and terrestrial
network. This alpha trial will be the first deployment
worldwide of a hybrid satellite and terrestrial solution using
the new DVB-SH mobile broadcasting standard.
ICO MIM will provide full-duplex, IP data communication services
using GMR air interface technology, a full suite of interactive
mobile video products utilizing DVB-SH, and interactive
navigation, all via an integrated satellite and terrestrial
terminal and antenna system.
Tim Bryan, ICO?s CEO, commented, ?Today, ICO is expanding its
relationship with Alcatel-Lucent. We have confidence in their
ability based on both their leadership in DVB-SH development and
their extensive experience in systems design and deployment.?
?We are excited about the opportunity to support ICO in the
groundbreaking use of DVB-SH in the United States,? said John
Meyer, President for Alcatel-Lucent?s services activities. ?To
support this highly complex project, we have pulled together
talents, leveraging our extensive multivendor network
integration experience, our leadership position in DVB-SH, and
the expertise of Alcatel-Lucent?s Bell Labs.?
As the end-to-end network integrator in the agreement with ICO,
Alcatel-Lucent will develop the system architecture and network
design, and provide end-to-end multivendor network integration
of the alpha trial system. This unique DVB-SH solution is
supported by an ecosystem of partners including major chipset
vendors and terminal manufacturers and is part of Alcatel-
Lucent?s Unlimited Mobile TV solution.
About ICO
ICO Global Communications (Holdings) Limited
(http://www.ico.com)is a next-generation satellite
communications company based in Reston, Virginia. ICO is
developing an advanced hybrid system, combining both satellite
and terrestrial communications capabilities, in order to offer
wireless voice, data, video, and Internet services on mobile and
portable devices.
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.
* * *
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
ANEKA TAMBANG: May Miss 2007 Output Target, Report Says
-------------------------------------------------------
PT Aneka Tambang Tbk may not be able to achieve its 2007 output
target of 20,000 tonnes as repairs to its newest smelter, which
leaked last month, are taking longer than expected, Bloomberg
News reports.
The Troubled Company Reporter ? Asia Pacific reported on
June 21, 2007, that Aneka had a metal leakage in its third
smelter FeNi III.
The TCR-AP recounted that the leak from the furnace wall
occurred on June 16 and lasted for 90 minutes. It prompted
Antam to reduce the power load at the smelter to prevent damage
and for safety reasons.
Preliminary investigations indicated minimal damage and Antam
was expected to return to normal operations within a maximum of
three weeks, TCR-AP added.
Bloomberg relates that Dedi Aditya Sumanagara, president of
Aneka Tambang, said that they are disappointed that the repair
will take longer than was previously expected.
To minimize expected loses in production, Antam is considering
processing its nickel ore in other smelters, Reuters says.
According to Reuters, Mr. Sumanegara said that the company can
deliver the output to its customers, but they have to negotiate
on the price.
The company, Reuters points out, has to replace the refractory
bricks which are expected to arrive in August. It is the second
leak in its third smelter but it was not related to the previous
incident.
Reuters recounts that Antam switched on the largest of its three
smelters in May last year, but shut down FeNi III in July for
three months to repair a leak from a metal tap hole at the
bottom of the furnace. The company restarted the smelter last
October.
Adrian Rusmana, head of research at PT Kresna Graha Sekurindo in
Jakarta, said that ?Aneka Tambang`s profit this year may be
lower than what people expected`` because of the drop in nickel
prices and lower production, Bloomberg adds.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Dec. 4, 2006, that Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Indonesian state-owned
mining company PT Antam Tbk. to 'B+' from 'B'. The outlook is
stable. At the same time, Standard & Poor's also raised to
'B+', from 'B', the rating on the senior unsecured notes issued
by Antam Finance Ltd. and guaranteed by Antam.
Moody's Investors Service gave Aneka Tambang a local currency B1
corporate family rating, and a B2 foreign currency bond rating.
BANK RAKYAT: Acquires Bank Jasa Arta for IDR61 Billion
------------------------------------------------------
Bank Rakyat Indonesia has acquired Bank Jasa Arta for
IDR61 billion with plans to turn it into a Sharia unit, Antara
News reports.
According to the report, BRI President Director Sofyan Basir
said that the Bank Jasa acquisition will be discussed at a
shareholders? meeting for approval.
The acquisition of Bank Jasa Arta could be consolidated into BRI
at the end of September next year, the report notes.
Antara relates that Mr. Basir said that Bank Rakyat?s target
next year is to consolidate Bank Jasa to BRI?s UUS (strategic
business units) in order to have a Bank BRI Sharia unit.
The acquisition process did not disturb BRI`s overall
performance since Bank Jasa only has small assets so the impact
of the acquisition on BRI?s performance as a whole is not
significant, the report adds.
About Bank Rakyat Indonesia
Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise
Savings, Credits and Syariah. In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions. During the year ended
December 31, 2005, the bank had one branch office in Cayman
Islands and two representative offices in New York and Hong
Kong, respectively.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 8,
2007, that Moody's Investors Service changed the ratings of
Indonesia's PT Bank Rakyat Indonesia (Persero) Tbk's as part of
the application of its refined joint default analysis and
updated bank financial strength rating methodologies.
The specific ratings changes are:
* BFSR is changed to D+ from D-
-- This action also concludes a review for possible
upgrade on the BFSR initiated on July 4, 2006.
* Global Local Currency Deposit Ratings assigned are
Baa2/Prime-3
* Foreign Currency Deposit Ratings are unchanged at B2/Not
Prime
* Foreign Currency Debt Rating for subordinated obligations
is unchanged at Ba3
-- Foreign Currency Deposit and Foreign Currency Debt
Ratings have positive outlooks in line with the outlook
on the country's sovereign ratings outlook
Fitch Ratings affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk's:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
HUNTSMAN CORP: Basell to Acquire Assets for US$9.6 Billion
----------------------------------------------------------
Huntsman Corporation and Basell have signed a definitive
agreement pursuant to which Basell will acquire Huntsman in a
transaction valued at approximately US$9.6 billion, including
the assumption of debt.
Under the terms of the agreement, Basell will acquire all of the
outstanding common stock of Huntsman for US$25.25 per share in
cash.
The transaction was unanimously approved by the Boards of
Directors of both Basell and Huntsman. Huntsman's Board of
Directors approved the transaction agreement at the
recommendation of a Transaction Committee comprised of Huntsman
independent directors.
The transaction is subject to customary closing conditions,
including regulatory approval in the U.S. and in Europe, as well
as the approval of Huntsman shareholders. Entities controlled
by MatlinPatterson and the Huntsman family, who collectively own
57% of Huntsman's common stock, have agreed to approve the
transaction. Closing is expected in the fourth quarter of 2007.
The combined company will have an extensive geographic
footprint, with operations on all continents of the world, and
will be well positioned in fast-growing markets such as China,
India, Eastern Europe and Latin America. In 2006, Basell and
Huntsman had combined revenues of more than US$26 billion and
employed approximately 20,900 people.
"Basell's industry-leading polyolefins businesses and Huntsman's
businesses will benefit from the expertise both companies have
demonstrated in technology, innovation and customer service.
Together we will be able to achieve even more," Volker Trautz,
CEO of Basell, said.
Commenting on the announcement, Len Blavatnik, Chairman and
founder of U.S.-based Access Industries, owner of Basell, said:
"This transaction enhances our position as a global industrial
group with long-term strategic assets in the chemicals
industry."
Mr. Blavatnik added: "Basell's management team has done an
excellent job
in growing and enhancing the company over the last two years,
putting it in a position to make this acquisition. We look
forward to further growth and profitability in this industry."
Jon M. Huntsman, founder and Chairman of Huntsman Corporation,
said: "This transaction opens a new chapter in the proud history
of Huntsman and for the thousands of people who work in our
facilities around the world. I am confident Basell is the right
owner for the company going forward. The proceeds of this
transaction will allow our family to focus more effectively on
the elimination of human suffering and on finding cures for
cancer."
Peter R. Huntsman, President and CEO of Huntsman, said: "This
transaction represents outstanding value for Huntsman's
shareholders. The merger of Basell and Huntsman creates one of
the largest chemical companies in the world. I am confident that
this combination will allow us to even more effectively pursue
our underlying business strategies and continue to provide
rewarding opportunities for our associates."
About Basell
Basell -- http://www.basell.com/-- is the global leader in
polyolefins technology, production and marketing. It is the
largest producer of polypropylene and advanced polyolefin
products; a leading supplier of polyethylene and catalysts, and
the industry leader in licensing polypropylene and polyethylene
processes, including providing technical services for its
proprietary technologies. Basell, together with its joint
ventures, has manufacturing facilities in 19 countries and sells
products in more than 120 countries. Basell is privately owned
by Access Industries.
About Huntsman
Huntsman Corporation -- http://www.huntsman.com/-- is a global
manufacturer of differentiated and commodity chemical products.
Huntsman's products are used in a wide range of applications,
including those in the adhesives, aerospace, automotive,
construction products, durable and non-durable consumer
products, electronics, medical, packaging, paints and coatings,
power generation, refining and synthetic fiber industries. The
company has operations in Indonesia, Italy and Guatemala.
The Troubled Company Reporter - Asia Pacific reported on Apr 02,
2007, Moody's Investors Service upgraded the corporate family
rating for Huntsman Corporation and Huntsman International LLC,
a subsidiary of Huntsman, to Ba3 from B1, and upgraded other
ratings as appropriate.
The ratings on recently redeemed debt have been withdrawn. The
outlook for Huntsman's ratings was moved to stable from
developing.
Summary of the ratings activity:
Upgrades:
* Huntsman Corporation
-- Corporate Family Rating, Upgraded to Ba3 from B1
* Huntsman International LLC
-- Corporate Family Rating, Upgraded to Ba3 from B1
-- Senior Secured Bank Credit Facility, Upgraded to Ba1
from Ba3, LGD2, 21%
-- Senior Subordinated Regular Bond/Debenture, Upgraded to
B2 from B3, LGD5, 89%
* Huntsman LLC
-- Senior Secured Regular Bond/Debenture, Upgraded to Ba1
from Ba3, LGD2, 21%
-- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
from B2, LGD4, 57%
Outlook Actions:
* Huntsman Corporation
-- Outlook, Changed To Stable From Developing
* Huntsman International LLC
-- Outlook, Changed To Stable From Developing
* Huntsman LLC
-- Outlook, Changed To Stable From Developing
Withdrawals:
* Huntsman International LLC
-- Senior Subordinated Regular Bond/Debenture, Withdrawn,
previously rated B3
-- Senior Unsecured Regular Bond/Debenture, Withdrawn,
previously rated B2
On Jan. 23, 2007 Standard & Poor's Ratings Services affirmed
its 'BB-' corporate credit rating and other ratings on Salt Lake
City, Utah-based chemicals producer Huntsman Corp. and its
subsidiary Huntsman International LLC.
MEDCO ENERGI: Acquires 40% Interest in Tunisia?s Anaguid Block
--------------------------------------------------------------
PT Medco Energi Internasional has acquired Anadarko Tunisia
Anagui Company?s 40% participation right in the Anaguid Block in
Tunisia worth US$10 million, Antara News reports.
The report recounts that the acquisition was conducted by the
Medco Energi?s subsidiary, Medco Tunisia Anaguid Ltd. The
agreement was made retroactive to June 12, 2007, citing Medco
International Energi?s corporate business development director,
Rashid I Mangunkusumo.
Anadarko previously had a 55% stake in the Anaguid Block. It
sold the remaining 15% of its participation right to Pioneer
Natural Resources, which already had a 45% stake in the Anaguid
Block, Antara says.
The report explains that Pioneer Natural?s full acquisition of
the 15% stake will still depend on the Tunisian government?s
approval on the transaction.
Through the acquisitions, Medco Tunisia would hold a 40% and
Pioneer a 60% stake in the Anaguid Block. Pioneer Natural
Resources was thus named operator of the block, the report adds.
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.
A TCR-AP report on Aug. 16, 2006, said that 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).
PARKER DRILLING: S&P Rates Proposed US$115 Mil. Sr. Notes at B-
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' rating to
contract drilling and rental tool provider Parker Drilling Co.'s
proposed US$115 million convertible senior notes due 2012. At
the same time, S&P affirmed the 'B' corporate credit rating on
Parker and the 'B-' rating on its US$150 million senior floating
rate notes due 2010 and US$225 million senior notes due 2013.
The outlook is positive.
Pro forma for the proposed US$115 million note offering,
Houston,
Texas?based Parker is expected to have about US$350 million of
debt, adjusted for operating leases.
Parker intends to use the net proceeds to redeem all of the
US$100 million senior floating rate notes due 2010 and various
costs associated with the offering.
"Pro forma for the transaction, Parker's credit metrics will
essentially remain unchanged," commented Standard & Poor's
credit analyst Aniki Saha-Yannopoulos.
The ratings on Parker reflect its participation in a highly
competitive, cyclical industry, an active capital-spending
program, and operations in international and emerging markets
and areas with difficult operating conditions that can expose
the company to geopolitical risks. Geographic and product-line
diversity partially mitigate these weaknesses. Near-term
liquidity is adequate to meet capital spending.
About Parker Drilling
Headquartered in Houston, Texas, Parker Drilling Company
-- http://www.parkerdrilling.com/-- provides contract drilling
and drilling-related services worldwide. The company has rigs
located in Indonesia, New Zealand, Colombia and Mexico, among
others.
PERTAMINA: Raises Price of Industrial Fuels for July
----------------------------------------------------
PT Pertamina (Persero) raised the price of industrial fuels for
July due to the movement of oil prices in global markets, The
Jakarta Post reports.
According to the report, starting July 1, Pertamina?s price for
kerosene and fuel would be raised by 1.6% and 6.8%, to
IDR5,926 per liter and IDR3,950 per liter, respectively.
Prices of diesel oil for transportation and industry will be
increased by 1.1% to IDR6,125 per liter and IDR5,858 per liter,
respectively. However, the price of gasoline for industrial
customers remains currently at IDR6,179 per liter, the report
says.
Pertamina blamed the movement of crude oil prices in May for the
price increases. As shown by the Mid Oil Platts Singapore
index, crude oil price rose between 0.6% and 5.1%. The rupiah's
depreciation against the US dollar by 0.07% during the month was
also taken into account.
According Toharso, a Pertamina spokesperson, the new prices
include a value-added tax of 10% and a 5% fuel tax, except for
the diesel prices which do not include the 5% fuel tax, the
report adds.
About PT Pertamina
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, the rest is supplied by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
PERTAMINA: Cooperates w/ Sun Kiong in US$200M Lube-Based Project
----------------------------------------------------------------
PT Pertamina (Persero) will cooperate with Sun Kiong Corp, a
South Korean chemical company, in a US$200 million lube-based
oil plant being built in Dumai, Riau, Antara News reports.
According to the report, Pertamina spokesman Toharso said that
Pertamina, which contributes only land to the joint venture
project, will own 40% of the project and the Korean partner will
hold the majority stake of 60%.
Construction of the project, which will produce third generation
lube-based oil with a capacity of 7,000 tons a day, had already
been underway since February and was to be completed in 2008,
the report adds.
About PT Pertamina
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, the rest is supplied by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
TELKOM INDONESIA: Reviews Possible Acquisition
----------------------------------------------
PT Telekomunikasi Indonesia Tbk is reviewing the possibility of
an acquisition to meet a government?s target to boost the firm's
market capitalization to US$30 billion by 2010, Reuters reports.
According to the report, Telkom, with a market capitalization of
around US$21 billion, did not provide details on the target or
the value of the potential deal in its letter to the Jakarta
Stock Exchange.
Analysts say that Telkom's shares have been underperforming the
market partly due to rising costs have offset its rising
subscriber numbers, the report relates.
The report adds that business will also get tougher as new
customers are likely to be lower-income users, generating lower
average revenue per users in its mobile business.
About Telkom Indonesia
Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk --
http://www.telkom-indonesia.com/-- provides local and long
distance telephone service in Indonesia. Known as Telkom, the
company also offers fixed wireless service, leased lines, and
data transport through affiliates.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 31, 2007, Fitch Ratings revised the outlook on
Telekomunikasi Indonesia's long-term foreign and local currency
issuer default ratings to positive from stable and affirmed the
ratings at 'BB-'.
Moody's Investors Service gave Telekomunikasi Indonesia a Ba1
local currency corporate family rating.
Standard & Poor's Ratings Services gave the company 'BB+'
foreign and local currency corporate credit rating.
=========
J A P A N
=========
ALITALIA SPA: OAO Aeroflot Won't Fuse Bid with AirOne S.p.A.
------------------------------------------------------------
OAO Aeroflot will not submit a joint offer with rival AirOne
S.p.A. and Intesa-San Paolo S.p.A. for the Italian government's
39.9% stake in Alitalia S.p.A., Bloomberg News reports.
"We are not interested in the cooperation with Air One that has
been proposed," Aeroflot Deputy CEO Lev Koshlyakov told
Bloomberg News.
The TCR-Europe reported on June 11, 2007, that Aeroflot is
holding talks with Air One chief executive and owner Carlo Toto
over a possible alliance to Alitalia.
Sources privy to the matter told the Financial Times that Mr.
Toto decided to take a personal lead in holding talks with a
possible partner and has excluded the carrier's advisors from
negotiations. The sources added that though no formal deal has
been signed, the two current rivals for Alitalia may fuse their
bids.
The Italian government wants OAO Aeroflot-Unicredit Italiano
S.p.A. and AirOne S.p.A.-Intesa-San Paolo S.p.A. consortia to
unify their bids to acquire the state's stake in Alitalia.
Mr. Koshlyakov revealed to Bloomberg News that the talks with
AirOne never became formal, adding that Aeroflot is not looking
for a third partner in its bid for Alitalia. The CEO also noted
the differences in their organizational and operational
structures.
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 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.
DELPHI CORP: Reaches Tentative Deal with UAW and General Motors
---------------------------------------------------------------
Delphi Corp. reached a tentative agreement and signed a
Memorandum of Understanding with the UAW and General Motors
Corp. covering site plans, workforce transition as well as other
comprehensive transformational issues. The agreement is subject
to union ratification and approval by the U.S. Bankruptcy Court.
"If ratified, we believe this agreement will be a significant
milestone in our transformation and a major step towards
emergence," John Sheehan, Delphi's chief restructuring officer,
said. "The Memorandum is a testament to the dedication and hard
work of the UAW, Delphi and General Motors teams."
UAW President Ron Gettelfinger and UAW Vice President Cal Rapson
have issued a statement, "The UAW finalized an understanding
with General Motors earlier [Fri]day that has resulted in a
tentative agreement with their former parts operations. Details
are being withheld based on explanation and ratification
meetings by our local unions."
The Detroit Free Press reports that Delphi is offering its
offers workers buyouts, severance packages, early retirement
incentives and other payments in exchange for ratifying the
Tentative Agreement.
The TA, the Free Press said, would significantly shrink the size
of the Troy-based parts supplier in North America and reduce
hourly wages to what the company considers competitive rates.
The accord will also free up the UAW's negotiating staff to
tackle summer contract talks with the Detroit automakers.
The incentives, according to the Free Press, include:
(1) A US$105,000 buy-down -- paid in US$35,000 installments
over three years -- for about 4,000 workers who now
receive the same wages and benefits as GM employees. In
exchange, those workers would see their hourly wages cut
from about US$28 to so-called supplemental rates of
US$14.50 to US$18.50, beginning Oct. 1. During the buy-
down period, those workers also can try to return to GM.
(2) A US$140,000 buyout for workers with more than 10 years
of service.
(3) A US$70,000 buyout for workers with less than 10 years of
service. Workers who take either buyout will have to
leave the company by Sept. 15.
(4) A US$35,000 payout to encourage workers with at least 30
years of service to retire.
(5) Retirement benefits for workers who are at least 50 years
old and have at least 10 years of service.
(6) A so-called grow-in package for workers with 26 years of
service as of Sept. 1. The package would allow those
workers to stop working but be compensated as active
workers -- at the new lower rates -- until they hit 30
years of service, and then retire.
(7) Severance pay of US$1,500 per month for every month
worked -- up to US$40,000 -- for all supplemental and
temporary employees who choose to leave the company.
(8) Skilled trade workers wouldn't see a change in hourly
wages.
(9) All workers compensated at GM rates also would have their
health benefits changed to include the same higher
deductibles and co-pays offered to employees hired since
the two-tier wage and benefit structure took effect.
(10) Skilled trade workers would receive a US$10,000 payment
to supplement the increase in health-care costs.
The Wall Street Journal said that the TA shifts much of Delphi's
labor burden to its former parent, GM.
General Motors, according to the Free Press, expects to pay
Delphi between US$300,000,000 and US$400,000,000 in annual
labor-related charges on top of US$7,000,000,000 in retirement
and labor costs. But the Detroit automaker, according to the
report, sees these costs to be offset by nearly US$2,000,000,000
in annual savings once Delphi's costs are competitive.
GM has also agreed to pay US$450,000,000 into an existing
Voluntary Employees' Beneficiary Association account, according
to WSJ.
The agreement outlines what products GM will buy from Delphi
plants, some of which will be shut down or sold.
According to WSJ, the agreement says Delphi will keep open only
its sites in Kokomo, Indiana; Grand Rapids, Michigan; Lockport,
New York; and Rochester, New York. Four other sites will be
held for divestiture by 2009 and 10 sites will be "wound down."
Three additional sites will be operated as "footprint sites,"
i.e., GM will operate the sites until a later date.
The Free Press said that four plans to be sold are Saginaw
steering; Adrian; Sandusky, Ohio; and Cottondale, Alabama.
Plants due for closure are located in Coopersville; Columbus,
Ohio; and Milwaukee.
Delphi said in its June 22 news release that it "will not
provide commentary on the details of the Memorandum at the
current time."
As widely reported, the union, the bankrupt auto-parts supplier
and GM are trying to get the deal ratified before a two-week
summer shutdown that begins July 1. When the parties return
from the shutdown, the UAW will begin formal contract
negotiations with GM, Ford Motor Co. and Chrysler Group.
About the UAW
The International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America is one of the largest
and most diverse unions in North America, with members in
virtually every sector of the economy.
UAW-represented workplaces range from multinational
corporations, small manufacturers and state and local
governments to colleges and universities, hospitals and private
non-profit organizations.
The UAW has approximately 640,000 active members and over
500,000 retired members in the United States, Canada and Puerto
Rico.
About General Motors
Headquartered in Detroit, GM General Motors Corp. (NYSE: GM) --
http://www.gm.com/-- was founded in 1908, GM employs about
280,000 people around the world. With global manufactures its
cars and trucks in 33 countries. In 2006, nearly 9.1 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER,
Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single largest global
supplier of vehicle electronics, transportation components,
integrated systems and modules, and other electronic technology.
The company's technology and products are present in more than
75 million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts. The Debtors' exclusive plan-filing period expires on
July 31, 2007.
(Delphi Corporation Bankruptcy News, Issue No. 73; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
NUANCE COMMS: Inks Pact To Acquire Tegic for US$265 MM in Cash
--------------------------------------------------------------
Nuance Communications Inc. and AOL LLC signed a definitive
agreement whereby Nuance will acquire Tegic Communications Inc.
Under the terms of the agreement, total consideration is about
US$265 million in cash. The transaction is expected to close in
Nuance?s fiscal fourth quarter and is subject to customary
closing conditions and regulatory approvals.
The transaction expands Nuance?s presence in the mobile industry
and allows it to further accelerate the delivery of solutions
that unlock the power of mobile devices and networks. Tegic
brings industry-leading T9 predictive text input software, which
has shipped on more than 2.5 billion devices, and next-
generation integrated text and touch input solutions to Nuance?s
portfolio of voice-enabled applications for device control,
mobile search, email and text messaging.
Building on a partnership between Nuance and Tegic established
in 2005, Nuance intends to deliver an all-in-one interface that
integrates Nuance and Tegic solutions to support predictive
text, speech and touch input. This multimodal interface will
provide easier access for users of mobile devices and will be
available to all manufacturers across their product lines.
In its fiscal year 2008, Nuance expects Tegic to contribute
between US$65 million and US$68 million in non-GAAP revenue;
US$45 million and US$48 million in GAAP revenue; a GAAP loss
between US$0.12 and US$0.13 per share; and non-GAAP earnings
between US$0.04 and US$0.05 per diluted share. The combination
is expected to generate about US$8 million to US$10 million in
cost synergies in fiscal year 2008.
The addition of Tegic brings resources and capabilities that are
expected to expand Nuance?s market presence and leadership in
the rapidly expanding mobile industry:
* Focus on Mobile Opportunities ? The companies share core
competencies in mobile infrastructure, work closely with a
common OEM customer base and maintain similar
relationships with leading carriers. Supporting more than
60 languages and 15 different character scripts, Tegic
shares Nuance?s commitment to broad language coverage
based on custom dictionaries and grammars.
* Strong Industry Relationships ? Shipped on more than
2.5 billion mobile devices worldwide, including
about two-thirds of mobile devices shipped last year,
Tegic maintains longstanding relationships with the
largest companies in the industry, including Nokia,
Samsung, Sony Ericsson, LG and Motorola. This established
customer base can be leveraged to generate new
opportunities for Nuance?s existing mobile product
portfolio. In addition, Tegic?s established distribution
channel to all major Chinese handset manufacturers offers
tremendous growth opportunities for the product lines of
each organization in this fertile market.
* Technological Leadership ? Tegic embedded software
solutions have set the bar for text input on mobile
devices, making mobile experiences faster, easier and more
compelling. In addition to its core T9 product, it has
expanded its portfolio to support multimodal interfaces,
broad languages and additional databases. More than 50
software engineers continue to advance Tegic?s solutions
and bring to Nuance more than 70 patents and 140 patents
pending worldwide.
* Talented, Experienced Team ? Nuance benefits from the
addition of Tegic?s strong management, customer support,
and engineering teams, with their proven competencies in
creating, selling and supporting mobile embedded software.
On this transaction, UBS and Citigroup are acting as financial
advisors to Nuance and Time Warner, respectively.
?The enhanced capabilities of mobile devices and networks have
fueled significant innovation in features and services, but
their potential has been tempered by the traditional interface
on most mobile devices,? said Paul Ricci, chairman and chief
executive officer, at Nuance. ?Tegic shares our vision of
delivering an integrated, superior and flexible user experience
for today?s wireless subscribers. Together, we are poised to
redefine the way people interact with their mobile devices,
delivering a more convenient, simple way for consumers to
control features and access information on their phones, and
search and navigate the mobile Web.?
Time Warner Inc. chairman and chief executive Dick Parsons said:
?AOL?s sale of Tegic marks yet another step in our overall
strategy of focusing on our core assets to drive profitable
growth for our shareholders. As AOL continues to make impressive
progress, it?s more important than ever that AOL?s resources are
fully aligned behind growing its worldwide advertising
businesses.?
AOL chairman and CEO Randy Falco said: ?We believe that Nuance
is a good match for Tegic, its employees and its business
partners, and we value our relationships with both companies.
This sale also lets us focus our mobile business on building
strong consumer-based, ad-supported mobile experiences.?
About Tegic Communications
Tegic Communications Inc. -- http://www.tegic.com/-- provides
software for mobile data services, including market-leading T9
software. A wholly owned subsidiary of AOL LLC, Tegic was
founded in 1995 to develop and market communication technologies
for the telecommunications and computing industries. The
company is headquartered in Seattle, Washington and has offices
in London, Paris, Tokyo, Hong Kong, Seoul, Beijing, New Delhi,
Singapore and S?o Paulo.
About Nuance Communications
Based in Burlington, Massachusetts, Nuance Communications Inc.
(NASDAQ: NUAN), fka ScanSoft, Inc., -- http://www.nuance.com/--
provides speech and imaging solutions for businesses and
consumers around the world. Its technologies, applications and
services that help users interact with information, and create,
share and use documents.
The company has offices in Australia, Belgium, Japan, Korea,
Hong Kong, India, Mexico and the United Kingdom, among others.
* * *
As reported in the Troubled Company Reporter on June 25, 2007,
Standard & Poor's Ratings Services affirmed its B+/Positive/--
corporate credit and other ratings on Nuance Communications.
NOVA CORP: Ministry Tolerated Refund Malpractice
------------------------------------------------
Sources revealed to The Yomiuri Shimbun that the Economy, Trade
and Industry Ministry of Japan tolerated Nova Corp.?s
controversial practice of minimizing refunds of students who
terminated their contracts.
According to the report, the ministry issued a document in June
2002 saying that the refund method was not wholly illegal.
Under the practice, when long-term students -- mostly those with
three-year contracts -- terminated arrangements, the price of
lessons already taken were calculated at higher amounts than
agreed at the contract-signing at which students received less
refund than they expected, the article relates.
Reportedly, aside from the refund practice, Nova also nullified
unused points purchased by students in advance to take lessons,
when students terminated contracts.
Despite the increasing complaints received by consumer
consultations regarding Nova?s refund method from 2002 to 2005,
the language school only claimed that they were calculating
prices for terminating contracts based on consultation with the
administrative authorities, sources disclosed to the Yomiuri
Shimbun.
Yomiuri Shimbun quotes Koji Niisato, a lawyer with expertise in
consumer affairs saying that, ?The ministry can't deny it made
the judgment for corporate rather than consumer interests.?
About Nova Corp.
Osaka-based company, Nova Corporation-- http://www.nova.ne.jp/
-- is primarily engaged in the operation of language schools.
The Company has seven subsidiaries and two associated companies.
The Company is involved in the teaching of languages, the
creation of international environment of different languages and
cultures, the provision of real time services, the development
and provision of network contents, the development of hardware
technology, the building of human network, as well as the
organization of member groups to provide services
internationally. The Company also has subsidiaries and
associates, which are engaged in advertisement services,
interior construction, facility and commodity sale, overseas
study services, computer system services, real estate brokerage,
facility leasing and installment sale, capital management,
cleaning services, sanitary management, multimedia goods sale,
Internet connection services, customer services and assistance
to foreigners.
Nova has reported two consecutive net losses -- JPY3.09-billion
net loss for fiscal year ended March 31, 2006, and
JPY2.89 billion for the year ended March 31, 2007.
On June 19, 2007, the Troubled Company Reporter - Asia Pacific
reported that the Ministry of Economy, Trade and Industry
suspended Nova Corp from selling long-term contracts for
language schools starting June 14, 2007, for lying to customers
about its services.
=========
K O R E A
=========
CURON INC: Signs Letter w/ ETRI to Develop Internet Protocol TV
---------------------------------------------------------------
Curon Inc. has signed a letter with Electronics and
Telecommunications Research Institute, Reuters reports.
According to the report, the Company and ETRI will cooperate
with each other to develop Internet protocol television and
uniform commercial code based global moving image technology.
About Curon Inc.
Seoul-based Curon Inc. -- http://www.curon.co.kr-- is engaged
in the provision of diaphragms, vaporizers and Video On Demand
servers. The company provides three main products: diaphragms
and vaporizers, which are used in gas meters, speakers,
automobiles, medical applications, heavy machinery, industrial
valves and pumps; VOD servers such as StreamXpert, which supply
High Definition Television (HDTV) multimedia content; and
Telematics, which are used in entertainment, games, digital
multimedia players, traffic information, satellites, digital
versatile discs, TVs and radios.
Korea Ratings gave Curon Inc.?s US$10 million convertible bond a
B- rating with a stable outlook on February 22, 2007.
SK CORP: Signs Initial Accord on US$1.9 Bil. Ethylene Plant
-----------------------------------------------------------
SK Corp. has signed an initial accord with China Petroleum &
Chemical Corp to jointly build an ethylene plant in Wuhan, in
Central China's Hubei Province, Bloomberg News reports.
According to the report, Shu Chaoxia, vice chief engineer of
parent China Petrochemical Corp's (Sinopec Group) economic and
technical research institute, said that the initial agreement
was signed.
The project, worth an investment of US$1.9 billion, received
State approval, the report cites the National Development and
Reform Commission, the nation's top economic planner, as saying.
The report adds that the plant, the first large-scale refining
and chemical production base in Central China, will be able to
produce 800,000 metric tons of ethylene a year.
About SK Corp
Headquartered in Seoul, South Korea, SK Corp.
-- http://eng.skcorp.com/-- is an energy and petrochemical
company with 4,916 employees and 22 offices around the world in
2005. The company is strategically positioned as Korea's
largest and Asia's leading refiner next to Sinopec and
PetroChina. SK Corp. currently explores, develops and produces
oil in 13 nations, including Peru, London and the United States.
The Troubled Company Reporter - Asia Pacific reported that on
Feb. 20, 2006, Moody's Investors Service has placed on review
for possible upgrade the Ba1 long-term rating of SK Corp.
===============
M A L A Y S I A
===============
CHIN FOH: Posts MYR1.63-Mil. Net Loss in Qtr Ended April 30
-----------------------------------------------------------
Chin foh Bhd posted a net loss of MYR1.63 million on
MYR31.55 million of revenues in the first quarter ended
April 30, 2007, compared with a net loss of MYR3.01 million on
MYR37.23 million of revenues in the same period in 2006.
As of April 30, 2007, the company's unaudited balance sheet
reflected strained liquidity with current assets of
MYR96.89 million, available to pay current liabilities of
MYR202.07 million.
Chin Foh's balance sheet as of April 30 also went upside down
with shareholders' deficit of MYR50.21 million from total assets
of MYR186.57 million and total liabilities of MYR236.78 million.
Malaysia-based Chin Foh Berhad -- http://www.chinfoh.com.my--
is principally involved in trading and distribution of metal
base and non-metal base products, construction materials, panels
and non-ferrous metal products. Its other activities include
manufacturing of glass, aluminium extrusions, stainless steel
and related products, rotary aluminium ventilators, providing,
cutting and slitting of metal and other related services,
general contracting, design, fabrication, supply and
installation of curtain wall and cladding and holding properties
and investments. Operations are carried out in Malaysia,
Australia, and China.
Chin Foh is listed under Bursa Malaysia's Amended Practice Note
17 category and is therefore required to submit a regularization
plan to the Securities Commission and other relevant authorities
for approval.
On May 31, 2007, the Troubled Company Reporter - Asia Pacific
reported that the Securities Commission did not approve of the
company's reform plan proposals.
The rejected reform plan proposals of the company involves:
-- a transfer of the company's listed status to a new
company,
-- the issuance of new shares to its creditors,
-- the acquisition of subsidiaries, and
-- a share capital decrease.
KNOLL INC: Completes US$500 Million Credit Facility Refinancing
---------------------------------------------------------------
Knoll Inc. has completed the refinancing of its existing credit
facility with a new US$500 million revolving credit facility
with Bank of America N.A., Banc of America Securities LLC, HSBC
Bank USA, National Association, Citizens Bank, and other
participating lenders.
The company may use the new revolving line of credit for general
corporate purposes, including strategic acquisitions, stock
buybacks and cash dividends. The credit facility also provides
a mechanism for the company to increase the facility by US$200
million if certain terms and conditions are met. The credit
facility matures in six years.
"This new credit facility gives us increased flexibility, an
additional US$200 million add on feature, and lowers our
borrowing costs from an approximate average of LIBOR, plus 162
basis points to LIBOR, plus 100 basis points,? CFO Barry L.
McCabe said. ?In addition, it demonstrates the continued
support and confidence of our bank group."
As a result of this new credit facility, the company will write-
off in the second quarter of 2007 approximately US$1.2 million
of costs associated with the prior facility.
About Knoll Inc.
Based in East Greenville, Pennsylvania, Knoll Inc. (NYSE: KNL) -
- http://www.knoll.com/-- designs and manufactures branded
office furniture products and textiles, serves clients
worldwide. It distributes its products through a network of
more than 300 dealerships and 100 showrooms and regional
offices. The company has locations in Argentina, Australia,
Bahamas, Cayman Islands, China, Colombia, Denmark, Finland,
Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
Philippines, Poland, Portugal and Singapore, among others.
* * *
Moody's Investors Service assigned a B1 corporate family rating
to Knoll Inc. At the same time, the company's US$200 million
senior secured revolver was rated B1 and its US$250 million
senior secured term loan was rated Ba2.
MEGAN MEDIA: Shareholders' Deficit at MYR796.96MM in April 30
-------------------------------------------------------------
Megan Media Holdings Bhd's unaudited balance sheet as of
April 30, 2007, went upside down with a shareholders' deficit of
MYR796.96 million on total assets of MYR163.44 million and total
liabilities of MYR960.40 million.
As of April 30, 2007, the company's balance sheet also showed
illiquidity with current assets of MYR61.50 million, available
to pay current liabilities of MYR960.19 million.
The company also posted a net loss of MYR1.14 billion on
MYR21.42 million of revenues in the fourth quarter ended
April 30, 2007, as compared with a net profit of
MYR23.47 million on MYR322.68 million of revenues in the same
period last year.
Megan, however, advises that there is an ongoing investigation
into the alleged involvement of the company to fraud and
irregularities that will adversely affect the results of the
company's financial statements.
On 6 June 2007, the company disclosed the interim findings of
the its auditors, Investigative Accountants -- which stated:
a) There are substantial irregularities in the MTSB's
financial statements, leading to its financial position
having been materially misstated;
b) MTSB appears to have created fictitious trading creditors
and debtors to overstate purchases and sales;
c) MTSB appears to have financed the payment of fictitious
trading creditors through bank debt and recycled the cash
through other entities to appear that repayments were
being made by fictitious trading debtors;
d) MTSB has grown its "trading" business over time but
particularly in the 2007 financial year and at an
increasing rate during the year;
e) The IA's site visits to the supposed trading locations of
the trading debtors and creditors shows that they are
fictitious;
f) Ultimately, all trading creditors were paid (payments
were actually made to other parties than that shown in
the accounts), allowing cash to be paid out of MTSB and
the trading debtors remain outstanding and are unlikely
to be collectible at all;
g) MTSB's payment of a deposit of MYR211 million for 13
production lines also appears to be fictitious;
h) The report implies that there are related party
transactions which have not been disclosed;
i) The report also set out a Net Realizable Value which
indicates that MTSB has potential shortfall in assets of
MYR456 million. Further, value of MTSB's fixed assets of
MYR585 million requires further investigation and the
realizable value is unknown; and
j) The report refers to the current situation with regards
to license fees due to Koninklijke Philips Electronics
N.V. and the threat to the manufacturing of CD-R and
DVD-R. The Company is in the midst of its endeavours to
resolve the outstanding amounts due to Philips.
The final report of the IA is expected to be completed 6-8 weeks
from June 29, 2007.
Megan Media Holdings Berhad' s principal activities are
manufacturing and trading data storage media products such as
computer diskettes, video cassette tapes, compact disc
recordable (CD-R's) and digital versatile disc recordable (DVD-
R's). The Group operates in Malaysia, Singapore and other
countries.
The Troubled Company Reporter - Asia Pacific reported on
June 11, 2007, that the Rating Agency Malaysia has downgraded
the long-term rating of Memory Tech Sdn Bhd's MYR320 million Bai
Bithaman Ajil Islamic Debt Securities (2005/2012) ("BaIDS"),
from C3 (with a negative outlook) to D.
The BaIDS carries a corporate guarantee from MTSB's holding
company, Megan Media Holdings Berhad. Concurrently, RAM has
lifted the Rating Watch (with a negative outlook) that had been
placed on MTSB on May 9, 2007, following the failure of MTSB and
MJC (Singapore) Pte Ltd, another wholly owned subsidiary of
Megan Media, to repay their trade facilities amounting to
MYR47.36 million.
The Troubled Company Reporter - Asia Pacific reported on
June 19, 2007, that Megan Media Holdings Bhd has been served
with a writ of summons pertaining to a claim by Bank of East
Asia Limited amounting to SGD2,924,399.98 and US$79,500.00 in
respect of banking facilities granted by the bank to its wholly
owned subsidiary, MJC (Singapore) Pte Ltd, in 2006.
The summon was served on June 13, 2007, and is labeled "Bank of
East Asia Limited versus Megan Media Holdings Berhad" (Shah Alam
High Court Suit No. MT3-22-807-2007).
SHAW GROUP: Energy & Climate Picked as Asset Advisors for Leaf
--------------------------------------------------------------
The Shaw Group Inc. announced that Energy and Climate Advisors,
a joint venture company formed by Shaw Capital, Inc., and
London-based EEA Fund Management Ltd., has been selected to
serve as the asset advisor for Leaf Clean Energy Company. Leaf
is a clean energy asset company that began trading today on the
London Stock Exchange AIM market with an initial market
capitalization of approximately US$400 million. Under the Asset
Advisory Agreement, Energy and Climate Advisors will assist Leaf
in the sourcing of investment opportunities in the renewable and
alternative energy markets and provide support to Leaf in the
screening, evaluation, development, and operation and
maintenance of assets acquired by Leaf.
J.M. Bernhard, Jr., chairman, president and chief executive
officer of Shaw, referring to the appointment, said, ?Shaw
Capital is quickly establishing itself as an important component
of Shaw?s complete suite of solutions for its clients. Not only
can Shaw provide traditional services such as evaluating project
feasibility, providing engineering and construction services,
and supporting the operation and maintenance of the asset; now,
through Shaw Capital, we may also provide access to capital for
projects through our relationships with entities like Leaf.?
Dan Shapiro, president of Shaw Capital, added, ?Shaw Capital?s
strategic relationship with EEA provides a unique combination of
skills and experience for success in the robust new energy and
emerging climate change markets, particularly those occurring
within North America."
Simon Shaw (no relation to The Shaw Group), founder of EEA,
said, ?The U.S. is now in the embryonic stages of a fundamental
long-term transition to a low carbon economy, which is a massive
step forward for the clean energy sector. Together with our
partners at The Shaw Group, we are well positioned to access
project level opportunities within this sector.?
Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution. In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and Venezuela, among others.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006. S&P said the outlook is stable.
In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.
====================
N E W Z E A L A N D
====================
A & E PAINTERS: Creditors? Proofs of Debt Due by July 5
--------------------------------------------------------
The creditors of A & E Painters Ltd. are required to file their
proofs of debt by July 5, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company?s dividend distribution.
The company?s liquidator is:
M. Lamacraft
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
AWATERE CONTRACTING: Taps Shephard and Dunphy as Liquidators
------------------------------------------------------------
Iain Bruce Shephard and Christine Margaret Dunphy were appointed
as liquidators of Awatere Contracting Ltd. on June 6, 2007.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
CONTRACT PACKERS: Fixes July 20 as Last Day to File Claims
----------------------------------------------------------
Contract Packers (2006) Ltd. went into liquidation on June 7,
2007.
The company requires its creditors to file their proofs of debt
by July 20, 2007.
The company?s liquidator is:
Boris Van Delden
McDonald Vague, PO Box 6092
Wellesley Street Post Office
Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Website: http://www.mvp.co.nz
G S & L D: Faces Perrin Consultancy?s Wind-Up Petition
------------------------------------------------------
Perrin Consultancy Limited filed on May 16, 2007, a petition to
wind up the operations of G S & L D Lease Ltd.
The petition will be heard before the High Court of Auckland on
August 23, 2007, at 10:00 a.m.
Perrin Consultancy?s solicitor is:
Z. G. Kennedy
c/o Minter Ellison Rudd Watts
Lumley Centre, Level 20
88 Shortland Street
PO Box 3798, Auckland 1140
New Zealand
INFRATIL LTD: Wants 13.7% Increase in Directors Pay
---------------------------------------------------
Infratil Limited will ask its shareholders at the annual meeting
on Aug. 6, 2007, to approve an increase in the directors? pay by
13.7%, David Hargreaves of The Dominion Post reports.
According to MR. Hargreaves, if the proposed increase is
approved, the company?s six directors will share NZ$530,000,
compared with NZ$466,000 now. The company?s directors who also
serve on the Wellington Airport board will share NZ$120,000 in
fees from the NZ$105,000 it is currently sharing, he added.
Infratil Chairman David Newman told The Dominion Post that the
increase was appropriate given the growth in size and scope of
the company. "Shareholders are also aware that over that time
there have been a number of significant new investments that
require increased director oversight and governance," The Post
quoted Mr. Newman as saying.
At the August 6 Meeting, which will be held in Auckland, the
company will also seek the shareholders? nod on the issuance of
up to NZ$350 million of new bonds, The Post said. The company,
however, did not specify plans for an issue.
Wellington, New Zealand-based Infratil Limited --
http://www.infratil.com/-- is an infrastructure investor. The
company, along with its subsidiaries, operates in four
industries: investment in infrastructure and utility companies,
airport, transportation and energy operations. The airport
operations comprise the revenue and expenses associated with
Infratil Limited's investments in Wellington International
Airport Limited and Infratil Airports Europe Limited;
transportation comprises the businesses of New Zealand Bus
Limited and New Zealand Bus Finance Limited and subsidiaries,
which was acquired by the company on November 30, 2005, and the
energy operations relate to Victoria Electricity Pty Limited and
Infratil Energy Australia Pty Limited. On December 5, 2005,
Infratil Limited acquired a 90% interest in Flughafen Lubeck
GmbH (Lubeck Airport). In December 2006, Alliant Energy Corp.
sold its ownership interest in Alliant Energy New Zealand
Limited to the company.
The Troubled Company Reporter - Asia Pacific, on May 22, 2007,
listed Infratil Ltd.'s 8.500% bond with a November 15, 2015
maturity date as distressed.
MAJA CONSTRUCTION: Appoints Anthony Charles Harris as Liquidator
----------------------------------------------------------------
On May 21, 2007, Anthony Charles Harris was appointed as
liquidator of Maja Construction Limited.
Mr. Harris fixes August 17, 2007, as the last day for the
company?s creditors to file their proofs of debt.
The Liquidator can be reached at:
Anthony Charles Harris
Harris Neil & Associates Limited
PO Box 14216, Tauranga
New Zealand
MS & RM: Court Appoints Shephard and Dunphy as Liquidators
----------------------------------------------------------
The High Court of Blenheim appointed Iain Bruce Shephard and
Christine Margaret Dunphy as the liquidators of MS & RM
Contractors Limited on June 6, 2007.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
PACIFICA FISHING: Shephard and Dunphy Named as Liquidators
----------------------------------------------------------
On June 5, 2007, the High Court of Hamilton appointed Iain Bruce
Shephard and Christine Margaret Dunphy as the liquidators of
Pacifica Fishing Co Ltd.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
SPEIRS GROUP: Sets Annual General Meeting on July 31
----------------------------------------------------
Speirs Group Limited will hold its shareholders? annual general
meeting on July 31, 2007, at 9:45 a.m.
As previously reported by the Troubled Company Reporter ? Asia
Pacific, Speirs Group at first disclosed a loss after tax
attributable to its shareholders of NZ$847,000 for the year
ended March 31, 2007. However, Speirs Group later advised that
the company's loss in FY2007 will increase to NZ$1.919 million
due to a client company's failure to adhere to the terms of
certain financial agreements.
The company admits that this has been a difficult year. ?The
disappointing performance was unexpectedly and significantly
exacerbated by the discovery, well after balance date, that a
significant and 'improper business event' experienced by a large
Speirs' client company will almost certainly impact upon Speirs
in a domino-like process,? Speirs Group said in a filing with
the New Zealand Stock Exchange.
According to the company, the 'improper business event' was
completely unknown by Speirs and completely unrelated to any
Speirs activity but, nevertheless, will almost certainly heavily
impact upon Speirs. The company?s board of directors decided to
back-date appropriate provisions into the 2006-2007 financial
year so as to cover our preliminary assessment of likely future
losses arising from the event. Meanwhile, the board said it is
taking every possible action to mitigate the future impact of
this event upon Speirs.
Executive Chairman Nelson Speirs, on a positive note, disclosed
the official opening of the Speirs Nutritionals Limited factory
and plant, which will take place at Marton, immediately after
the annual meeting on July 31. Speirs Nutritionals is a the
company?s new venture with Massey University, the Riddet Centre,
and the Bio Commerce Centre. It will employ original New
Zealand science and initiate commercial production of Omega-3
emulsions and food additives in New Zealand.
Speirs Group Limited -- http://www.speirs.co.nz/-- is a New
Zealand-based investment company. The company operates two
commercial divisions: Speirs Finance and Speirs Foods. Speirs
Finance is engaged in asset backed financing. Speirs Foods is
engaged in production and distribution of fresh food, such as
salad and fresh cut vegetable to retailers and caterers.
* * *
The Troubled Company Reporter - Asia Pacific, on June 12, 2007,
listed Speirs Group's 10.000% bond with a June 30, 2049 maturity
date as distressed.
TAPA INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 2
------------------------------------------------------------
The High Court of Auckland will hear a petition to wind up the
operations of Tapa International Ltd. on Aug. 2, 2007, at
10:45 a.m.
The petition was filed by the Commissioner of Inland Revenue on
May 11, 2007.
The CIR?s solicitor is:
Kay S. Morgan
c/o Inland Revenue Department
1 Bryce Street, Hamilton
New Zealand
Telephone:(07) 959 0373
TECHNOLOGY TRAINING: Taps T. S. A. Taylor as Liquidator
-------------------------------------------------------
T. S. A. Taylor was appointed as liquidator of Technology
Training Ltd. on June 7, 2007.
The Liquidator can be reached at:
T. S. A. Taylor
Level 1, 23 Kent Terrace
PO Box 11976, Wellington
New Zealand
Telephone:(04) 384 4161
Facsimile:(04) 384 4171
WEST AUCKLAND: Wind-Up Petition Hearing Set for July 5
------------------------------------------------------
A petition to wind up the operations of West Auckland
Enterprises Ltd. will be heard before the High Court of Auckland
on July 5, 2007.
The petition was filed by Waitakere City Council on April 4,
2007.
Waitakere?s solicitor is:
R. B. Enright
Kensington Swan
18 Viaduct Harbour Avenue
Auckland
New Zealand
=====================
P H I L I P P I N E S
=====================
BANCO DE ORO-EPCI: Inks Cooperation Agreement with Bank of China
----------------------------------------------------------------
Banco de Oro-Equitable PCI Inc. and Bank of China Ltd. are now
partners through a business cooperation agreement that is aimed
to promote and support Chinese-related businesses in the
Philippines, according to a report by SunStar Cebu.
The signing ceremony, held on June 18, was attended by BOC's key
officers and BDO-EPCI's management. The report says that
delegates from the Embassy of the People's Republic of China
also attended the event.
Under the agreement, Sunstar relates, both parties will exchange
information on the propagation of BOC's business in the
Philippines, as well as data concerning the conduct of BDO-
EPCI's business in China and other areas in Asia where BOC
maintains a presence.
About Banco de Oro-EPCI
Banco de Oro-EPCI is the result of a merger between Banko de Oro
Universal Bank and Equitable PCI, with BDO as the surviving
entity.
* * *
The Troubled Company Reporter ? Asia Pacific reported on
November 9, 2006 that Fitch Ratings affirmed the ratings of
Banco De Oro Universal Bank, as follows:
* Individual 'C/D', and
* Support '3'
* * *
On June 1, 2007, Moody's Investors Service said it had withdrawn
its ratings for Equitable PCI Bank following its merger with
Banco de Oro Universal Bank.
In a statement, Moody's said the merged entity, Banco de Oro-
EPCI, will assume BDO's "Ba2" rating both for its senior
unsecured debt and subordinated debt, with a stable outlook.
Moody's withdrew its ratings for Equitable PCI following the
merger.
* * *
The Troubled Company Reporter ? Asia Pacific reported on
June 11, 2007, that Standard & Poor's Ratings Services withdrew
its 'BB-' counterparty credit ratings on Equitable PCI Bank
Inc., as its merger with Banco De Oro Universal Bank became
effective on May 31.
S&P retained its 'BB-' counterparty credit rating and the issue
ratings on both Equitable and Banco de Oro's rated debts.
Equitable's rated debts will be transferred to the Banco de Oro-
EPCI.
IPVG: Plans to Sell 100 Million Shares in Follow-on Offering
------------------------------------------------------------
IPVG Corp. plans to sell at most 100 million shares in its
planned follow-on offering set for September this year as part
of its expansion plan, ABS-CBN News reports.
The company is also looking to get an additional PHP500 million
from the debt market, the report relates.
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 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.
VITARICH CORP: Sets Up New Board and Elects New Officers
--------------------------------------------------------
Vitarich Corporation has disclosed with the Philippine Stock
Exchange the results of its annual stockholders meeting held on
June 29, 2007.
Elected as directors for the ensuing year to serve as such until
their successors will have been elected and qualified are
1. Rogelio M. Sarmiento
2. Lorenzo M. Sarmiento, Jr.
3. Benjamin I. Sarmiento Jr.
4. Ma. Socorro S. Gatmaitan
5. Ma. Luz S. Roxas-Lopez
6. Ma. Victoria M. Sarmiento
7. Jose M. Sarmiento
8. Cesar L. Lugtu
9. Imelda C. Tiongson
10. Manuel Q. Lim
11.Jose Vicente C. Bengzon III
The company's board of directors have also elected the officers
of the corporation.
* Rogelio M. Sarmiento - Chairman/Chief Executive
Officer/President
* Guillermo B. Miralles - Vice President, Vismin
Operations
* Ma. Victoria M. Sarmiento - Treasurer
* Tadeo F. Hilado - Corporate Secretary
* Pedro T. Dabu - Assistant Corporate Secretary/
Corporate Information Officer
to the Philippine Stock
Exchange
* Teresita C. Rimando - Alternate Corporate Information
Officer to the PSE
* Julieta M. Herrera - Controller
Audit Committee:
* Jose Vicente Bengzon III - Chairman
* Ma. Victoria M. Sarmiento - Member
* Benjamin I. Sarmiento - Member
* Lorenzo M. Sarmiento Jr. - Member
* Ma. Luz Roxas Lopez - Member
* Cesar Lugtu - Member
* Imelda Tiongson - Member
* Manuel Q. Lim - Member
Compensation and Nomination Committee
* Manuel Q. Lim - Chairman
* Ma. Luz Roxas Lopez - Member
* Ma. Socorro Gatmaitan - Member
* Benjamin I. Sarmiento - Member
* Jose M. Sarmiento - Member
* Ma. Deborah G. Ramirez - Member
Compliance Officer:
* Pedro Dabu
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 .
* Privatization May Damage Economy, Report Says
-----------------------------------------------
The Philippine Government's misuse of privatization earnings may
harm the economy rather than improve it because the government
may soon run out of assets to sell or privatize, Sonny Africa of
Ibon Foundation said, as quoted by an article published by
Pinoypress.net.
Mr. Africa said that the Government's target of PHP105 billion
in privatization revenues are a sign of the fiscal sector's
vulnerability to plunge into another economic crisis like the
one experienced by the Philippines in 1997. He likened the
Government's current use of privatization earnings to the
actions taken by former President Fidel Ramos before the 1997
Asian financial crisis.
Pinoypress notes that, according to Mr. Africa, the Ramos
administration had amassed PHP52.7 billion from privatization of
assets in 1994 and 1995, recording an unprecented fiscal surplus
in 1994. He then said that the surpluses quickly declined in
the following years because the government had run out of assets
to sell, resulting in deficits that reached up to 5.4% of gross
domestic products in 2004.
The Arroyo Government, Mr. Africa relates, is currently using
proceeds from the privatization of firms like San Miguel Corp.,
the Manila Electric Co. (Meralco) and the Philippine National
Oil Co. in order to recover from the PHP52 billion deficit for
the first three months of 2007. This way, he said, the Arroyo
administration could report continued fiscal health, but
revenues will suffer in the following years.
* * *
As reported in the Troubled Company Reporter ? Asia Pacific on
May 22, 2007, Standard & Poor's Ratings Services affirmed its
'BB-/B' foreign currency and 'BB+/B' local currency sovereign
credit ratings on the Philippines, with a stable outlook. Also
in May 2007, S&P assigned its 'BB+' senior unsecured rating to
the Philippines' new three- and five-year benchmark bond
issues. The new bonds mature in 2010 and 2012 and carry
interest rates of 5.5% and 5.75%, respectively. The exchange
offers yielded approximately Philippine peso 55 billion and
PHP58 billion for the three- and five-year bonds, respectively,
from the exchange of eligible issues.
Fitch Ratings, on March 5, 2007, affirmed the Republic of the
Philippines' Long-term foreign and local currency Issuer Default
ratings at 'BB' and 'BB+', respectively. The agency also
affirmed the Short-term IDR at 'B' and the Country Ceiling at
'BB+'.
On Nov. 3, 2006, the TCR-AP reported that Moody's Investors
Service changed to stable from negative the outlook on the
Philippines' key ratings due to the progress made in reining in
fiscal deficits in 2006 and an easing in dependence on external
financing. The affected ratings include the B1 long-term
government foreign- and local-currency ratings, the B1 foreign-
currency bank deposit ceiling and Ba3 foreign currency country
ceiling, the TCR-AP noted.
=================
S I N G A P O R E
=================
1988 JV PTE: Proofs of Debt Due by July 30
------------------------------------------
1988 JV Pte Ltd, which is in members? voluntary liquidation,
requires its creditors to file their proofs of debt by July 30,
2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company?s dividend distribution.
The company?s liquidator is:
Lai Seng Kwoon
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
ASIA WELLNESS: Fixes July 27 as Last Day to File Claims
-------------------------------------------------------
Asia Wellness Academy Pte Ltd requires its creditors to file
their proofs of debt by July 27, 2007.
Creditors who can?t file their claims by the due date will be
excluded from sharing in the company?s dividend distribution.
The company?s liquidator is:
Wee Hui Pheng
c/o M/s Wee Seng Tiong & Co.
1 Coleman Street #06-10
The Adelphi
Singapore 179803
CHIVERO PTE: Court to Hear Wind-Up Petition on June 20
------------------------------------------------------
The High Court of Singapore will hear a petition to wind up the
operations of Chivero Pte. Ltd. on July 13, 2007.
The petition was filed by Tequila Asia-Pacific (Singapore) Pte
Ltd on June 20, 2007.
Tequila?s solicitor is:
Central Chambers Law Corporation
150 Cecil Street #16-00
Singapore 069543
LINDETEVES-JACOBERG: Arisaig Sells Stake in Open Market
------------------------------------------------------
Arisaig ASEAN Fund Limited, a substantial shareholder of
Lindeteves-Jacoberg Ltd sold some of its direct shares in the
open market thus reducing its stake in the company.
Presently, Arisaig holds 34,500,000 direct shares with 4.86%
issued share capital. Prior to the change, Arisaig held
36,599,000 with 5.16% issued share capital
Lindeteves-Jacoberg Limited -- http://www.linjacob.com/-- was
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group. Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.
The company is currently working out further debt restructuring
plans for its liabilities, in addition to an earlier approved
Scheme of Arrangement with its creditors.
As of March 31, 2007, the group's total assets reached SG$304.7
million while total liabilities were SG$379.9 million, resulting
in a shareholders' deficit of SG$75.2 million.
SEA CONTAINERS: Trustee Appoints HSBC as Sole Member of Panel
-------------------------------------------------------------
Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, issued
on June 27, 2007, a notice appointing HSBC Bank USA, National
Association, as indenture trustee, as the sole member of the
Official Committee of Unsecured Creditors in Sea Containers,
Ltd. case.
The U.S. Trustee late last week disbanded the SCL Committee
citing conflict of interest with respect to three of the
Committee members -- Trilogy Capital, LLC, Dune Capital, LLC,
and Mariner Investment Group, Inc.
Trilogy, Dune Capital, Mariner Investment Group have committed
to extend up to US$176,500,000 in postpetition financing to the
Debtors. The proposed DIP Facility is pending approval before
the U.S. Bankruptcy Court for the District of Delaware.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No.
21; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Court extended the Debtors' exclusive period to file a Plan
of Reorganization to Sept. 28, 2007.
SEA CONTAINERS: Wants to Settle SC Asia Intercompany Claims
-----------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the District of Delaware to
enter into a settlement agreement with Sea Containers Asia Pte
Ltd., Yorkshire Marine Containers Ltd., Charleston Marine
Containers, Inc., and Paulista Containers Maritismos Ltda.,
relating to various intercompany balances.
The Debtors also seek the Court's permission to take all actions
necessary to liquidate SC Asia.
SC Asia no longer actively engages in any business activities
but yet is solvent and has significant cash in its accounts,
Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP,
in Wilmington, Delaware, explains. A solvent voluntary
liquidation will enable SC Asia to upstream excess cash to SCL
for the ultimate benefit of the estate's creditors, Mr. Greecher
says. Liquidation will also eliminate an inactive entity from
the company's complex operating structure while at the same time
removing the risk of any future claims against SC Asia or SCL
based on claims against SC Asia, Mr. Greecher adds.
"The settling of SC Asia's intercompany balances and its
subsequent voluntary liquidation merely accelerates a process
the Debtors likely will have to undertake as part of their
chapter 11 plan and wind-up of non-debtor subsidiaries," Mr.
Greecher says.
SC Asia intends to settle its outstanding intercompany balances
prior to commencing solvent liquidation proceedings under
Singapore law. SCSL, YMCL, CMCI, SCL and PCML have balances
owing to, or receivables from, SC Asia. The parties agree to
set off amounts owed to SC Asia against any amounts SC Asia
owed.
SC Asia's Outstanding Intercompany Balances
As of May 31, 2007
Entity Receivable Payable Net
------ ---------- ------- -----
SCSL - (SG$1,669,768) (SG$1,669,768)
YMCL SG$90,610 - SG$90,610
CMCI SG$536,266 - SG$536,266
SCL SG$2,339,627 (SG$3,282,687) (SG$943,059)
PCML - (SG$21,803) (SG$21,803)
------------ -------------- -------------
Total SG$2,966,503 (SG$4,974,258) (SG$2,007,754)
The balances owed to SC Asia after set-off by YMCL and CMCI will
be assigned to SCL, and the parties will owe the amount to SCL.
Once SC Asia has settled its intercompany balances, along with
any outstanding balances with third-party creditors, SC Asia
intends to commence solvent voluntary liquidation proceedings
under Singapore law. As part of the process, SC Asia will issue
a "declaration of solvency" and convene an "extraordinary
general meeting" under Singapore law to consider whether to:
-- voluntarily liquidate under Singapore law;
-- appoint a local liquidator to carry out the liquidation;
and
-- authorize the liquidator to take the actions necessary to
liquidate SC Asia under Singapore law.
The Debtors have already contacted a liquidator in Singapore
with whom they have worked in the past. SC Asia will pay the
liquidator a US$10,000 fee plus expenses.
As sole shareholder of SC Asia, SCL must appoint a corporate
representative in connection with the voluntary liquidation.
The corporate representative will attend the extraordinary
general meeting and approve SC Asia's corporate resolutions to
voluntarily liquidate, and to appoint and authorize a liquidator
to liquidate SC Asia.
The liquidator will carry out the solvent liquidation of SC Asia
pursuant to Singapore statutory requirements, including
finalizing the tax position of SC Asia in Singapore, finalizing
all of SC Asia's accounts, and completing all necessary
notifications. SC Asia will then hold its final meeting where
the liquidator will present its final report on SC Asia's
accounts to the corporate representative. If the corporate
representative approves the liquidator's report, SC Asia can
return any funds remaining after payment of the intercompany
balances and third-party creditors to SCL. The remaining funds
are expected to approximate US$1,400,000.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No.
21; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Court extended the Debtors' exclusive period to file a Plan
of Reorganization to Sept. 28, 2007.
===============
T H A I L A N D
===============
BANK OF AYUDHYA: GE Brings Up Shareholdings to 31%
--------------------------------------------------
GE Money has bought 444.7 million new shares of Bank of Ayudhya
PCL for THB7.11 billion, the Bangkok Post reports. This move
increased GE?s shareholding in the bank to 31%.
The transaction is a follow-on to GE's initial acquisition in
January of 1.391 billion shares, which represents 25.4% of the
bank. This transaction had provided for a clause that allowed
GE to purchase additional shares at a price of THB16 each.
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
* * *
On May 4, 2007, Moody?s Investor Services affirmed its D- bank
financial strength rating for Bank of Ayudhya. The Foreign
Currency Deposit Ratings are unchanged at Baa3/P-3. The outlook
for all ratings is stable.
The Bank carries Standard and Poor?s Rating Services? BBB-/A-3
Credit Rating with a stable outlook.
The Troubled Company Reporter ? Asia Pacific reported on June 7,
2007 that Fitch Ratings has affirmed Bank of Ayudhya Public
Company Limited's (BAY) Foreign Currency Issuer Default Rating
at 'BBB-' (BBB minus) with Stable Outlook, Short-term Foreign
Currency rating at 'F3', Individual rating at 'C/D', Support
rating at '3' and its subordinated debt rating at 'BB+'.
The bank's Support Rating Floor remains unchanged at 'BB'.
Meanwhile, Fitch Ratings (Thailand) has also affirmed BAY's
National Long-term Rating at 'A+(tha)' with Stable Outlook, its
National Short-term Rating at 'F1(tha)' and its National
subordinated debt rating at 'A(tha)'.
POWER-P: Elects 5 New Directors; Accepts Resignation of 3 Others
----------------------------------------------------------------
Power-P PCL approved the resignation of three directors and the
appointment of five new directors during a meeting of its Board
of Directors on June 26, according to a disclosure with the
Stock Exchange of Thailand.
The company approved the resignation of these directors
effective July 1:
* Surachai Arunbutr Chairman of the Executive Board, CEO
* Chalermpon Aek-uru Director and Chairman of the Audit
Committee
* Gen. Niphon Setabut Director and Member of the Audit
Committee
The company appointed these new directors during the meeting:
* Numpon Ngurnnumchoke Managing Director
* Gen. Sith Sithmongkol Chairman of the Board,
Audit Committee Chairman
* Vacharin Duangdara Director, Audit Committee
Member
* Jutharat Phanjangampattana Director, Audit Committee
Member
* Phanuphon Jittiwong Director
Headquartered in Bangkok, Power-P Public Company Limited --
http://www.power-p.co.th/-- is engaged in the provision of
construction works, including commercial buildings and housing
projects, as well as the leasing business of land and equipment.
Power-P has two subsidiaries, J-Power Co., Ltd., which is
engaged in the construction of factories, and L.V.C. Development
Co., Ltd., which provides construction, construction management
and installation of machinery.
The company is currently undergoing debt restructuring.
Moreover, the company carries the Stock Exchange of Thailand's
SP -- or suspension ? sign for its failure to submit its
financial statements as of March 31, 2007.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 17, 2007
Beard Audio Conferences
China's New Enterprise Bankruptcy Law
Telephone: 240-629-3300;
Web site://www.beardaudioconferences.com/
August 10, 2007
Turnaround Management Association
Special Olympics Sportsman's Lunch
Sofitel, Brisbane, Queensland, Australia
Telephone: 1300 303 863
Web site: http://www.turnaround.org/
October 16-19, 2007
Turnaround Management Association - Australia
TMA 2007 Annual Convention
Boston Marriott Copley Place, Boston, MA, USA
e-mail: livaldi@turnaround.org
November 14, 2007
Turnaround Management Association
TMA Australia 4th Annual Conference and Gala Dinner
Hilton, Sydney, Australia
Web site: http://www.turnaround.org/
November 29, 2007
Turnaround Management Association
Special Speaker
Hilton, Sydney, Australia
Web site: http://www.turnaround.org/
March 25-29, 2008
Turnaround Management Association - Australia
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, FL, USA
e-mail: livaldi@turnaround.org
October 28-31, 2008
Turnaround Management Association - Australia
TMA 2008 Annual Convention
New Orleans Marriott, New Orleans, LA, USA
e-mail: livaldi@turnaround.org
TBA 2008
INSOL
Annual Pan Pacific Rim Conference
Shanghai, China
Web site: http://www.insol.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Web site: http://www.insol.org/
October 5-9, 2009
Turnaround Management Association - Australia
TMA 2009 Annual Convention
JW Marriott Desert Ridge, Phoenix, AZ, USA
e-mail: livaldi@turnaround.org
October 4-8, 2010
Turnaround Management Association - Australia
TMA 2010 Annual Convention
JW Marriot Grande Lakes, Orlando, FL, USA
e-mail: livaldi@turnaround.org
Beard Audio Conferences
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Audio Conferences CD
Beard Audio Conferences
Distressed Real Estate under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Changes to Cross-Border Insolvencies
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Healthcare Bankruptcy Reforms
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Calpine's Chapter 11 Filing
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Employee Benefits and Executive Compensation
under the New Code
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Dana's Chapter 11 Filing
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Reverse Mergers-the New IPO?
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Distressed Market Opportunities
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Homestead Exemptions under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Surviving the Digital Deluge: Best Practices in
E-Discovery and Records Management for Bankruptcy
Practitioners and Litigators
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Deepening Insolvency - Widening Controversy: Current Risks,
Latest Decisions
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
Beard Audio Conferences
Equitable Subordination and Recharacterization
Audio Conference Recording
Telephone: 240-629-3300
Web site: http://www.beardaudioconferences.com/
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara
Eliza Tecarro, Freya Natasha Fernandez-Dy, Frauline Abangan, and
Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***