/raid1/www/Hosts/bankrupt/TCRAP_Public/070709.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, July 9, 2007, Vol. 10, No. 134
Headlines
A U S T R A L I A
CASUAL LIVING: In Voluntary Administration
DAPIFER PTY: Members and Creditors to Meet on July 23
FORTESCUE METALS: Remains Positive About Pilbara Project
FRESENIUS MEDICAL: Prices US$500 Mil. of 6-7/8% Notes Offering
HRDM PTY: Sets Final Meeting for July 26
J & M LEGAL: To Declare Interim Dividend on July 20
JAKO'S PAINT: Enters Wind-Up Proceedings
MAYDOWN PTY: Members to Receive Wind-Up Report on July 31
PAT KENNEDY: Undergoes Voluntary Wind-Up
PAYMOR PTY: Placed Under Voluntary Liquidation
RHDM PTY: Members' Final Meeting Set for July 26
SONS OF GWALIA: RCF Wins Remaining Assets, Beating 60 Others
WOONDUM PTY: Members Resolve to Shut Down Business
ZUSMAN NOMINEES: Sets Members' Final Meeting for August 7
C H I N A & H O N G K O N G
CHINA CONSTRUCTION: To Open Branches in Vietnam and Australia
COMPUWARE ASIA: Creditors' Proofs of Debt Due by August 6
DANA CORP: Closes Sale of Fluid Products Business to Orhan
HENDERSON LAND: Taps Lee King Yue as Liquidator
HUGHES NETWORK: Sets Final Meeting for August 7
MARSH & MCLENNAN: Chan Sek Kwan Quits Liquidator Post
NEO-CHINA: Moody's Assigns B1 Ratings; Outlook Stable
NEW SUNNY: Members Resolve to Close Business
NIN FUNG: Shareholders Resolve to Liquidate Business
PEPSON INVESTMENT: Liquidator to Give Wind-Up Report on Aug. 8
WHOLE WIN: Court to Hear Wind-Up Petition on August 15
WIDE STRONG: Members to Receive Wind-Up Report on August 8
I N D I A
IMAX CORP: Gets Default Notice from 9.625% Senior Notes Holder
IMAX CORP: Default Notice Prompts S&P to Junk Ratings
TATA MOTORS: June Vehicle Sales Declines by 2%
TATA MOTORS: Bags National Award for Excellence in Cost Mgmt.
TATA POWER: Moody's Cuts Corporate Family Rating to Ba3
TATA POWER: Allots Preferential Shares & Warrants to Tata Sons
UNION BANK OF INDIA: Pays Government INR98-Crore Dividend
UTI BANK: Will Expand Retail Business; To Up Workforce by 45%
UTI BANK: Board to Consider 1st Quarter Results on July 12
I N D O N E S I A
ALCATEL-LUCENT: Wins Contract from Hanaro Telecom
AVNET INC: Unit Acquires UK-Based Interconnect
HANOVER COMPRESSOR: Discloses Termination of HSR Waiting Period
GENERAL NUTRITION: Parent Opens 1000TH Franchise Store in Sofia
MEDCO ENERGI: Plans to Join Refinery Project in Banten
NORTEL NETWORKS: Wins Contract from Taiwan's Cathay United
J A P A N
AMR CORPORATION: Sees US$12 Mil. Cut in Annual Interest Expense
JAPAN AIRLINES: To Boost Overseas Flights by 70%
NIPPON SHEET: Revises Financial Results for Fiscal Year 2008
NOVA CORP: To Tie Up with H.I.S. in Providing Financial Help
K O R E A
DURA AUTOMOTIVE: To Sell Atwood Mobile Division for US$160 Mil.
HANARO TELECOM: Selects Alcatel-Lucent for Network Expansion
M A L A Y S I A
DATUK KERAMAT: Gets Public Reprimand; Directors Face Fines
GEORGE TOWN: Failure to File Financial Report Cues Reprimand
N E W Z E A L A N D
BIO-VISION: Court to Hear Wind-Up Petition Today
FUSION TRUST: Filing Proofs of Debt Due by July 16
HAIR ON DEVONPORT: Appoints Brown and Rodewald as Liquidators
INTERNET CONNECTION: Fixes July 11 as Last Day to File Claims
LEADING EDGE: Wind-Up Petition Hearing Set for July 16
MOWER & MACHINERY: Requires Creditors to File Claims by July 16
ORIENTAL BAY: Undergoes Liquidation Proceedings
RANDELL ENGINEERING: Subject to CIR's Wind-Up Petition
STARZONE TRUST: Shareholders Agree on Voluntary Liquidation
WILLIS ROOFING: Taps Rodewald and Shaw as Liquidators
P H I L I P P I N E S
APC GROUP: Unit Seeks Permission to Open Mine in Surigao del Sur
MAGNUM HOLDINGS: Trading Under New "NiHAO" Name Starts July 11
MANILA ELECTRIC: First Philippine Holdings Acquires 22.86% Stake
PHIL BANK OF COMMS: Yap Takeover Breaches Agreement, PDIC Says
SAN MIGUEL: In Talks to Sell National Foods to Kirin
* Reports 2.6% Average Inflation Rate for First Half of 2007
* United Overseas Bank Upgrades 2007 Growth Forecast to 5.6%
S I N G A P O R E
AMARANTH ADVISORS: Requires Creditors to File Claims by July 30
ENKAI TRADING: Court to Hear Wind-Up Petition on July 20
FORMICA CORP: Completes US$700 Mil. Asset Sale to Fletcher
HEXION SPECIALTY: To Acquire Huntsman for US$10.4 Billion
HEXION SPECIALTY: Huntsman Buy Prompts Moody's to Review Ratings
PETROLEO BRASILEIRO: Workers' Union to Consider Proposal
SEA CONTAINERS: Wants Line of Credit to Non-Debtor Unit Modified
T H A I L A N D
TMB BANK: To Revamp Management After Completing Recapitalization
TOTAL ACCESS: Discuss Dispute or Face Sanctions, NTC Tells TOT
- - - - - - - -
=================
A U S T R A L I A
=================
CASUAL LIVING: In Voluntary Administration
------------------------------------------
Adelaide-based furniture retailer Casual Living has gone into
voluntary administration, ABC News reports.
According to the report, Casual Living has 10 stores nationwide,
five in Adelaide, three in Sydney and two in Melbourne. The
company employs 120 individuals.
Martin Lewis from the administrator, Ferrier Hodgson, says that
the company is still trading until it is sold, ABC News notes.
Mr. Lewis hopes to sell the business as a going concern and will
be advertised in newspapers this weekend, relates the report.
Tania Bawden of Adelaide Now reports that Casual Living is a
large importer of domestic and commercial furniture.
DAPIFER PTY: Members and Creditors to Meet on July 23
-----------------------------------------------------
The members and creditors of Dapifer Pty Ltd, which is also
trading as Choice Fitness Health Club, will meet on July 23,
2007, at 11:30 a.m., to receive the liquidator's report about
the company's wind-up proceedings and property disposal.
The company's liquidator is:
A. R. M. Taylor
Meertens Chartered Accountants
Level 10, 68 Grenfell Street
Adelaide, South Australia 5000
Australia
About Dapifer Pty
Dapifer Pty Ltd is a distributor of physical fitness facilities.
The company is located in South Australia, Australia.
FORTESCUE METALS: Remains Positive About Pilbara Project
--------------------------------------------------------
Fortescue Metals Group Limited's executive director of
operations, Graeme Rowley, remains optimistic that they will
become the "third largest iron ore miner in the world" despite
the three cyclones that has affected its Pilbara operations,
David Weber writes for ABC News.
Mr. Weber, interviewing Mr. Rowley, conveys that Fortescue just
cannot ignore the increasing demand of iron ore in China, thus
their plan to export iron ore up to 200 million tones from the
original 45 million.
The Troubled Company Reporter-Asia Pacific reported on June 29,
2007, that Fortescue added AU$99 million in its capital on the
Pilbara iron ore project to be spent on additional changes to
the construction program such as the addition of two new
contractors to expedite works on the rail line.
Defending Fortescue's founder, Andrew Forrest, Mr. Rowley
expressed to Mr. Weber that he is saddened by the fact that most
of its finances comes from the United States. The operations
director added that analysts have been "skeptical" regarding
this project because "people have looked at the history of
Andrew and not seen in that experience, but seen in that
question marks."
Mr. Rowley believes that Mr. Forrest, "who's had the experience
of Murrin Murrin behind him, must represent a much better bet in
a new project with that experience, than someone who doesn't
have that experience," relates Mr. Weber.
About Fortescue Metals
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
* * *
Fortescue reported a net loss for the past two fiscal years.
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was
AU$2.15 million.
In August 2006, Moody's Investors Service assigned a Ba3 rating
to approximately US$1.9 billion in senior secured 144A bonds to
be issued by FMG Finance Pty Ltd, the financing vehicle of the
Fortescue Metal Group. The funding will be used to partially
finance the development of the Company's iron ore mine in the
Pilbara region of Western Australia as well as an associated
rail line and port infrastructure.
FRESENIUS MEDICAL: Prices US$500 Mil. of 6-7/8% Notes Offering
--------------------------------------------------------------
Fresenius Medical Care AG & Co. KGaA has priced its Senior Notes
due 2017 in the amount of US$500 million. The coupon will be
6-7/8%. Proceeds will be used to reduce indebtedness under the
company's senior secured bank credit facility and other, short-
term debt.
The Senior Notes will be issued by FMC Finance III S.A., a
wholly owned subsidiary of the company, and will be guaranteed
on a senior basis jointly and severally by the company,
Fresenius Medical Care Holdings Inc. and Fresenius Medical Care
Deutschland GmbH.
"The company is pleased to have completed the company's first
senior unsecured bond offering. Investors have clearly
recognized its sustainable financial strength and are confident
in the future of the industry and Fresenius Medical Care."
Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG
is the world's leading provider of dialysis products and
services.
Fresenius AG is a global health care company with products and
services for dialysis (through Fresenius Medical Care),
international healthcare services and facilities management
(Fresenius ProServe) and nutrition and infusion therapies
(Fresenius Kabi). The company also operates facilities in
Australia, Brazil, Canada, China, France, Korea, Mexico,
Portugal and Sweden, among others.
* * *
Moody's Investors Service affirmed all ratings of Fresenius AG
and subsidiary Fresenius Medical Care & Co KGaA. Moody's also
affirmed Fresenius AG's:
-- Corporate family rating of Ba2;
-- EUR1 billion of senior notes rated Ba2; and
-- EUR87.9 million of senior notes rated Ba2
Fresenius Medical Care & Co KgaA's:
-- Corporate Family Rating of Ba2;
-- Senior credit facility rated Ba2; and
-- Trust Preferred securities rated B1.
Standard & Poor's Ratings Services assigned a BB' senior secured
debt rating to Fresenius Medical Care KGaA's US$4.6 billion
facilities, which were put in place to finance the acquisition
of Renal Care Group Inc. (RCG; BB-/Positive/--).
At the same time, Standard & Poor's lowered its long-term
corporate credit ratings on the Germany-based health-care
companies, FMC and its parent Fresenius AG to 'BB' from 'BB+',
following U.S. antitrust clearance for FMC's acquisition of
U.S.-based health-care company Renal Care. The ratings were
removed from CreditWatch, where they were originally placed on
May 4, 2005. S&P said the outlook is negative.
HRDM PTY: Sets Final Meeting for July 26
----------------------------------------
HRDM Pty Ltd will hold a final meeting for its members on
July 26, 2007, at 12:00 noon.
The members will receive, at the meeting, a report about the
company's wind-up proceedings and property disposal.
The company's liquidators are:
Pasquale Dichiera
Darren John Shillington
Mack & Co Chartered Accountants
2nd Floor, 35 Havelock Street
West Perth, Western Australia 6005
Australia
About HRDM Pty
Located in Western Australia, Australia, HRDM Pty Ltd is an
investor relation company.
J & M LEGAL: To Declare Interim Dividend on July 20
---------------------------------------------------
J&M Legal Services Pty Ltd, which is in liquidation, will
declare an interim dividend for its unsecured creditors on
July 20, 2007.
Accordingly, the company's unsecured creditors are required to
file their proofs of debt by July 17, 2007, to be included in
the dividend distribution.
The company's liquidator is:
Dino Travaglini
Moore Stephens
Level 3, 12 St Georges Terrace
Perth, Western Australia
Australia
Telephone: 9225 5355
About J & M Legal
J & M Legal Services Pty Ltd provides legal services. The
company is located in Western Australia, Australia.
JAKO'S PAINT: Enters Wind-Up Proceedings
----------------------------------------
On June 12, 2007, the creditors of Jako's Paint Coatings Pty Ltd
met and agreed to voluntarily wind up the company's operations
and appointed Dino Travaglini as liquidator.
The Liquidator can be reached at:
Dino Travaglini
c/o Moore Stephens
Level 3, 12 St Georges Terrace
Perth, Western Australia 6000
Australia
Telephone:(08) 9225 5355
About Jako's Paint
Jako's Paint Coatings Pty Ltd provides business services. The
company is located in Western Australia, Australia.
MAYDOWN PTY: Members to Receive Wind-Up Report on July 31
---------------------------------------------------------
The members of Maydown Pty Ltd will meet on July 31, 2007, at
11:00 a.m., to receive the liquidator's report about the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Christopher Munday
Pitcher Partners
17th Level, 140 St Georges Terrace
Perth, Western Australia 6000
Australia
Telephone:(08) 9322 2022
Facsimile:(08) 9322 1262
About Maydown Pty
Maydown Pty Ltd is a manufacturer of curtains and draperies.
The company is located in Western Australia, Australia.
PAT KENNEDY: Undergoes Voluntary Wind-Up
----------------------------------------
During a meeting held on June 6, 2007, the members of Pat
Kennedy Carpet Centre Pty Ltd resolved to voluntarily wind up
the company's operations and appointed G. M. Carrello as
liquidator.
About Pat Kennedy
Pat Kennedy Carpet Centre Pty Ltd operates floor covering
stores. The company is located in Western Australia, Australia.
PAYMOR PTY: Placed Under Voluntary Liquidation
----------------------------------------------
During a general meeting held on June 8, 2007, the members of
Paymor Pty Ltd agreed to voluntarily liquidate the company's
business.
About Paymor Pty
Paymor Pty Ltd, which is also trading as Lightingales, operates
miscellaneous homefurnishings stores. The company is located in
Western Australia, Australia.
RHDM PTY: Members' Final Meeting Set for July 26
------------------------------------------------
A final meeting will be held for the members of RHDM Pty Ltd on
July 26, 2007, at 12:00 noon.
Pasquale Dichiera and Darren John Shillington, the company's
liquidators, will give, at the meeting, a report about the
company's wind-up proceedings and property disposal.
The Liquidators can be reached at:
Pasquale Dichiera
Darren John Shillington
Mack & Co Chartered Accountants
2nd Floor, 35 Havelock Street
West Perth, Western Australia 6005
Australia
About RHDM Pty
RHDM Pty Ltd is a land subdivider and developer, except for
cemeteries. The company is located in Western Australia,
Australia.
SONS OF GWALIA: RCF Wins Remaining Assets, Beating 60 Others
------------------------------------------------------------
Resource Capital Fund won the battle for the remaining assets of
Sons of Gwalia Ltd. for AU$205 million, besting over 60 other
interested parties, Australian Associated Press, reports.
According to the report, among the toughest competitor of RCF is
Bracewell group, represented by Bracewell & Giuliani law firm.
The Bracewell group is representing the big shareholders of the
failed mining company who were owed about AU$500 million.
For RCF to succeed in its proposal, the group required support
from more than 50% of the creditors, in terms of value and
number, relates the AAP.
Reportedly, RCF won a tender process, with a AU$205-million deal
offering about 12 cents in the dollar to creditors.
The administrators Ferrier Hodgson revealed to AAP that should
RCF have lost on the value vote but won on the number of
creditors voting in favor, they would have opted to back the RCF
deal saying that the decision "provides creditors with the
greatest degree of certainty."
Kevin Andrusiak of The Australian reports that the new owners of
Sons of Gwalia's assets -- Greenbushes and Wodgina -- will have
a hard time recovering from the AU$205-million payment in
acquiring the mines.
Mr. Andrusiak quotes an unnamed Perth-based tantalum industry
insider saying that "the tantalum market is very different.
There is no real opportunity for diversification."
The insider estimated that the Greenbushes and Wodgina mines
were operating at about 50% capacity.
About Sons of Gwalia
Headquartered in Perth, Western Australia, Sons of Gwalia Ltd --
http://sog.com.au/-- is a mining company listed on the
Australian Stock Exchange for over 20 years. The Company had
two operating divisions, Gold and Advanced Minerals. Sons of
Gwalia is the world's single biggest producer of Tantalum.
In August 2004, Gwalia announced a strategic review, which
included AU$10 million in cost savings for 2003-04 and the loss
of 100 jobs from the gold division and Perth head office, after
the Company failed to meet its hedging commitments due to the
serious deterioration of its gold reserves and resources.
The Company collapsed with AU$862 million in debt, and called in
joint and several administrators Andrew Love, Garry Trevor and
Darren Weaver of Ferrier Hodgson. The Company was also unable
to obtain agreement of all creditor counterparties to a
standstill agreement. In February 2006, Gwalia announced that
it will undertake an operational restructure following recent
agreements reached with its two major customers for reduced
sales volumes in return for production and product specification
flexibility. The operational restructure will maximize tantalum
production at Gwalia's lower cost Wodgina mine.
The Company is operating under a Deed of Company Arrangement.
WOONDUM PTY: Members Resolve to Shut Down Business
--------------------------------------------------
At an extraordinary general meeting held on June 12, 2007, the
members of Woondum Pty Ltd resolved to shut down the company's
business.
Raymond William Richards and Grant Dene Sparks of SimsPartners
were appointed as liquidators.
The Liquidators can be reached at:
Raymond William Richards
Grant Dene Sparks
c/o SimsPartners
Level 11, 145 Eagle Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3831 2700
Facsimile:(07) 3831 2799
About Woondum Pty
Woondum Pty Ltd is a distributor of concrete block and bricks.
The company is located in Queensland, Australia.
ZUSMAN NOMINEES: Sets Members' Final Meeting for August 7
---------------------------------------------------------
The members of Zusman Nominees Pty Ltd will have their final
general meeting on August 7, 2007, at 11:00 a.m., to receive the
liquidator's report about the company's wind-up proceedings an
property disposal.
The company's liquidator is:
Christopher Munday
Pitcher Partners
17th Level, 140 St Georges Terrace
Perth, Western Australia 6000
Australia
Telephone:(08) 9322 2022
Facsimile:(08) 9322 1262
About Zusman Nominees
Zusman Nominees Pty Ltd is in the business of drycleaning except
for rug cleaning. The company is located in Western Australia,
Australia.
================================
C H I N A & H O N G K O N G
================================
CHINA CONSTRUCTION: To Open Branches in Vietnam and Australia
-------------------------------------------------------------
China Construction Bank has won regulatory approval to set up
branches in Vietnam, Reuters relates, citing a report from the
China Securities Journal. The bank will also soon open in
Australia.
In addition, the bank plans to accelerate its drive overseas
through acquisitions, Chairman Guo Shuqing was quoted by the
Journal as saying.
Reuters recounts that China Construction Bank, in 2006, bought
Bank of America's branch network in Hong Kong and Macau as a
springboard to expand abroad.
Mr. Guo said the bank's overseas business, which now accounted
for less than 2% of total profits, had great potential, the
Reuters notes. "The biggest hurdles in overseas markets will be
talents and experience," Mr. Guo told the Journal. He said the
lender would mainly recruit local professionals when it enters
new markets.
To reduce the risk of foreign exchange losses and avoid the red
tape of China's capital controls, CCB would pay for its overseas
expansion with its existing foreign currency holdings or in
local currencies, Mr. Guo said.
The China Construction Bank -- http://www.ccb.cn/-- is one of
the "big four" banks in the People's Republic of China. It was
founded on October 1, 1954, under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 20, 2006, that Fitch Ratings affirmed the bank's 'D'
individual rating.
On May 4, 2007, Moody's Rating Agencies rates Construction Bank
Corporation's Bank Financial Strength Rating at D-. The outlook
for BFSR is stable.
COMPUWARE ASIA: Creditors' Proofs of Debt Due by August 6
---------------------------------------------------------
The creditors of Compuware Asia Pacific Holdings Limited are
required to file their proofs of debt by August 6, 2007, to be
included in the company's dividend distribution.
The company went into liquidation on June 25, 2007.
The company's liquidators are:
Seng Sze Ka Mee, Natalia
Cheng Pik Yuk
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
DANA CORP: Closes Sale of Fluid Products Business to Orhan
-----------------------------------------------------------
Dana Corporation has closed the previously announced sale of its
European fluid products hose and tubing operations to Orhan
Holding, A.S., receiving cash proceeds of US$66.9 million, and
expects to receive US$18.1 million of cash proceeds upon closing
the sale of the remainder of the hose and tubing business - in
North America - to Orhan later in the third quarter.
Dana expects to record an after-tax gain of approximately US$34
million in the third quarter of 2007 in connection with the
completion of the entire divestiture.
The assets sold to Orhan thus far include:
* A facility in Birmingham, United Kingdom;
* Stock in three companies in Vitry, France; Dolny Kubin,
Slovakia; and Barcelona, Spain;
* Interests in three joint ventures with Orhan, including
one operation in France and two in Turkey; and
* Intellectual property relating to the global hose and
tubing business.
The remaining fluid products hose and tubing assets are located
in Archbold, Ohio; Paris, Tenn.; Rochester Hills, Mich., U.S.A.;
and San Luis Potosi, Mexico.
The global fluid products hose and tubing business reported
aggregate revenues of US$266 million in 2006 and employs
approximately 1,750 people. Its operations manufacture fuel
lines; power-assisted steering products; heating, ventilation,
and air conditioning under-body products; engine and
transmission cooling lines; exhaust gas recirculation tubes; and
airbag fill tubes.
Dana Chairman and CEO Mike Burns said, "The divestiture of our
fluid products hose and tubing business is an important step in
implementing Dana's reorganization initiatives and sharpening
our focus on our core axle, driveshaft, structural, sealing, and
thermal products businesses for the automotive, commercial
vehicle, and off-highway markets."
About Dana Corp.
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- (OTC
Bulletin Board: DCNAQ) designs and manufactures products for
every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies. Dana employs 46,000 people in 28 countries,
including China. Dana is focused on being an essential partner
to automotive, commercial, and off-highway vehicle customers,
which collectively produce more than 60 million vehicles
annually.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors' exclusive period to file a plan expires on Sept. 3,
2007. They have until Nov. 2, 2007, to solicit acceptances of
that plan.
HENDERSON LAND: Taps Lee King Yue as Liquidator
-----------------------------------------------
On June 29, 2007, Henderson Land Finance (2000) Limited entered
liquidation proceedings and Lee King Yue was appointed as
liquidator.
The Liquidator can be reached at:
Lee King Yue
Two International Finance Centre, 72-76th Floor
8 Finance Street, Central
Hong Kong
HUGHES NETWORK: Sets Final Meeting for August 7
-----------------------------------------------
Hughes Network Systems Limited will hold the final general
meeting for its sole member on August 7, 2007, at 10:00 a.m.
The sole member will receive at the meeting a report about the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Cheng Pik Yuk
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
MARSH & MCLENNAN: Chan Sek Kwan Quits Liquidator Post
-----------------------------------------------------
Chan Sek Kwan quits as the liquidator of Marsh & Mclennan
Limited on June 26, 2007.
The former liquidator can be reached at:
Chan Sek Kwan
Seabright Plaza, 12th Floor, Units E & F
9-23 Shell Street, North Point
Hong Kong
NEO-CHINA: Moody's Assigns B1 Ratings; Outlook Stable
-----------------------------------------------------
On July 6, 2007, Moody's Investors Service assigned a (P) B1
corporate family rating to Neo China Group (Holdings) Ltd. At
the same time, Moody's has assigned a (P) B1 foreign currency
senior unsecured rating to Neo China's proposed 7 years bond
issue. The outlook for both ratings is stable.
This is the first time that Moody's has assigned ratings to Neo
China and expects to lift them from their provisional status
upon the issuance of the bond.
Neo China's (P) B1 corporate family rating reflects the
company's moderate operating scale and geographic diversity in
China.
"Although its land bank size of around 9.8 million sqm (in
saleable area) compares to its Ba-rated peers, Neo China's
aggressive growth and capital structure, short operating history
and corporate governance risk have constrained its rating at the
B1 level," says Kaven Tsang, Moody's lead analyst for the
company, adding, "Furthermore, its ability to manage an enlarged
business remains unproven."
The rating further reflects the company's exposure to the
relatively high execution risk associated with its aggressive
expansion against the backdrop of a volatile regulatory and
operating environment. It also reflects expectations that the
company's capital structure will be relatively aggressive, with
adjusted debt/capitalization ratio to rise to around 60% over
the medium term. This increase is because the company intends
to debt-fund both its forthcoming land acquisition and part of
its construction and land development works.
The company's commitment to maintaining minimum cash of around
CNY1.5 billion is important in supporting its rating and
liquidity in view of its fluctuating working capital needs and
lack of back-up committed banking facilities.
The rating also reflects corporate governance risk as Neo China
has engaged in material amount of transactions with its chairman
(also the company's major shareholder) over the past few years,
and the majority of its projects were acquired from the
chairman's private business. Partly mitigating the concern over
cash leakage, many of the acquisitions were settled through new
equity issuances.
It should be noted that Neo China's gross margin, even after
market revaluation is discounted, is lower compared to its rated
peers. This reflects its positioning as a mid-market developer,
a segment, which is competitive and price sensitive in spite of
strong demand.
Notching is not applied for the senior unsecured bond rating, as
Neo China's secured and subsidiary debt-to-total assets ratio
will stay at around 15% over the medium term and after the
proposed bond issuance.
Moody's notes that the proposed bond issuance has a warrant
structure. Such structure will have minimal impact on Neo
China's financial profile and the eventual exercise of warrants
is not expected to trigger the change of control covenant.
The stable outlook reflects Moody's expectation that the company
will successfully achieve its sales plan, expand its land bank
in a disciplined manner and maintain minimum cash on hand of
CNY1.5 billion.
The rating could undergo a downgrade if Neo China:
(1) fails to execute its business plan, or China's property
market experiences a significant downturn, such that
operating cash flow generation is weaker than
anticipated; and/or
(2) materially accelerates development and executes and
aggressive land acquisition plan without a corresponding
increase in cash inflow.
In terms of financial metrics, Moody's would regard the
following as signals for negative rating pressure:
(1) adjusted debt/capitalization consistently above 60-65%;
or
(2) OCF falling below 2x.
Rating improvement will be constrained over the next 12-18
months because of the relatively high business risks associated
with the company's rapid expansion.
However, upward rating pressure could emerge in the medium term
if Neo China establishes a sustainable track record in:
(1) achieving planned sales over the next 2-3 years;
(2) demonstrating strong financial discipline and soundly
monitoring its business and financial risks;
(3) good corporate governance; and
(4) an improved financial profile with adjusted leverage
below 45-50%, and OCF/interest above 4x.
Neo China Group (Holdings) Limited (Neo China) is a Chinese
property developer engaged in residential and mixed-use
developments. It has 11 major projects under development in 8
cities in China and a land bank of over 9.8 million sqm (in
saleable area), including around 6.9 million sqm under title.
It also has two primary land development projects in Tianjin and
Chengdu with a total area of 8.4 million sqm.
NEW SUNNY: Members Resolve to Close Business
--------------------------------------------
At an extraordinary general meeting held on June 27, 2007, the
members of New Sunny Limited resolved to close the company's
business and appointed Chui Chung Wai as the company's
liquidator.
The Liquidator can be reached at:
Chui Chung Wai
Hang Lung Centre, Flat 2112, 21st Floor
2-20 Paterson Street, Causeway Bay
Hong Kong
NIN FUNG: Shareholders Resolve to Liquidate Business
----------------------------------------------------
During a general meeting held on June 25, 2007, the shareholders
of Nin Fung Hong Limited decided to voluntarily liquidate the
company's business and named Sung Yuen Lam as the company's
liquidator.
Creditors who can file their proofs of debt by July 27, 2007,
will be included in the company's dividend distribution.
The Liquidator can be reached at:
Sung Yuen Lam
Far East Consortium Building, Room 601
121 Des Voeux Road, Central
Hong Kong
PEPSON INVESTMENT: Liquidator to Give Wind-Up Report on Aug. 8
--------------------------------------------------------------
Pepson Investment Limited will hold a final meeting for its
members on Aug. 8, 2007, at 10:30 a.m., on Unit 1-3, 5th Floor
of Far East Consortium Building at 121 Des Voeux Road in
Central, Hong Kong.
Wong Sun Keung, the company's liquidator, will give at the
meeting, a report about the company's wind-up proceedings and
property disposal.
WHOLE WIN: Court to Hear Wind-Up Petition on August 15
------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up the
operations of Whole Win Securities Limited on August 15, 2007,
at 9:30 a.m.
The petition were filed by Chung Kam Pui Barry, Tai Kam Tong and
Tam Kwok Leung on June 8, 2007.
The petitioners' solicitor is:
Betty Chan & Co.
Tung Ning Building, Room 1703
2 Hillier Street
Hong Kong
WIDE STRONG: Members to Receive Wind-Up Report on August 8
----------------------------------------------------------
A final meeting will be held for the members of Wide Strong
Limited on August 8, 2007, at 10:00 a.m., on Unit 1-3, 5th Floor
of Far East Consortium Building at 121 Des Voeux Road in
Central, Hong Kong.
The members will receive at the meeting a report about the
company's wind-up proceedings and property disposal.
=========
I N D I A
=========
IMAX CORP: Gets Default Notice from 9.625% Senior Notes Holder
--------------------------------------------------------------
IMAX Corporation was issued on July 2, 2007, a notice of default
by Cede & Co., the nominee of the Depository Trust Company, on
behalf of Catalyst Fund Limited Partnership II, a significant
holder of 9.625% senior notes due Dec. 1, 2010, issued by IMAX.
Cede stated in the notice that DTC is informed by Mellon Trust
of New England, N.A., its participant, that $62,237,000
principal amount of the notes are beneficially owned by Catalyst
Fund. The notice further added that Catalyst Fund's ownership
of the notes represents more than 25% of the outstanding notes
under the indenture.
The notice states that defaults have occurred and continue to
occur under Sections 1019 and 1021 of the indenture governing
the senior notes, in that IMAX has failed to comply with
financial reporting requirements and failed to deliver timely
and accurate officer certificates.
IMAX has failed to file its quarterly report for the first
quarter of 2007. IMAX also has failed to file its annual report
for the period ended Dec. 31, 2006.
The defaults under Section 1019 were the subject of a prior
consent solicitation by IMAX, which IMAX claimed resulted in a
waiver of its defaults and an extension of its time to file its
required financial reports.
Catalyst disputes that the consent solicitation was valid or
effective. The defaults under Section 1021, which were not the
subject of the prior consent solicitation, require unanimous
consent, which IMAX has not requested or obtained.
Cede demanded through the notice, on behalf of the beneficial
owner, that all the defaults be remedied.
This is the third notice of default sent to IMAX in the last two
months. Separate notices with respect to these defaults were
sent to IMAX on May 3, 2007, and June 4, 2007. The July 2, 2007
notice was sent on the first day following the expiration of
IMAX's claimed, though disputed, extension of time to file its
financial statements under Section 1019.
About IMAX Corporation
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.
IMAX CORP: Default Notice Prompts S&P to Junk Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings on IMAX Corp. to 'CCC+' from
'B-'. The ratings remain on CreditWatch, with implications
revised to developing from negative, to indicate possible upward
or downward movement of the ratings. The ratings were
originally placed on CreditWatch with negative implications on
April 2, 2007.
The rating and CreditWatch actions follow the issuance of a
notice of defaults with respect to IMAX's $160 million 9.625%
convertible senior notes due 2010. The notice relates to the
company's failure to file its SEC Form 10-K for 2006 and Form
10-Q for the first quarter of 2007. IMAX now has a 30-day cure
period (through July 31, 2007) to make the filing. If IMAX is
unable to file during that time frame or obtain a waiver,
maturity on the notes may be accelerated. In a press release
issued by IMAX on June 29, 2007, the company indicated that it
expects shortly to be 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.
"Standard & Poor's believes that these financial risks have the
potential to lead to an eventual payment default," said Standard
& Poor's credit analyst Tulip Lim. "However, we will raise the
ratings if IMAX is able to resolve this situation either through
a timely filing or a receipt of waivers by noteholders."
About IMAX Corporation
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.
TATA MOTORS: June Vehicle Sales Declines by 2%
----------------------------------------------
Tata Motors reported a total sale of 44,317 vehicles (including
exports) for the month of June 2007, a decline of 2% over
vehicles sold in June last year. Cumulative sales for the
company at 1,27,361 units are growing by 1%. The domestic
market continues to be sluggish, due to the high interest rate
regime severely affecting retails.
Commercial Vehicles
The company's sales of commercial vehicles in June 2007 in the
domestic market were 21,417 units, a decline of 0.7% over 21,565
vehicles sold in June last year. Medium and Heavy Commercial
Vehicle sales stood at 11,763 units, a decline of 0.4% over June
2006, while Light Commercial Vehicle sales were 9,654 units, a
decline of 1% over June 2006.
Cumulative sales of commercial vehicles in the domestic market
for the fiscal were 61,699 units, a decline of 2.3% over last
year. Cumulative M&HCV sales stood at 32,655 units, a decline of
10.8% over last year, while LCV sales for the fiscal were 29,044
units, an increase of 9.5% over last year.
Passenger Vehicles
The passenger vehicle business reported total sales of 17,418
vehicles in the domestic market in June 2007, a decline of 5.7%
over June 2006. The Indica reported sales of 11,727 units, a
decline of 4.4% over June 2006. The Indigo family registered
sales of 2,354 units, a decline of 18.4% over June 2006. The
Sumo and Safari accounted for sales of 3,337 units, an increase
of 0.9% over June 2006.
Cumulative sales of passenger vehicles in the domestic market
for the fiscal were 51,840 units, an increase of 3.9% over the
previous year. Cumulative sales of the Indica were at 34,599
nos., an increase of 4.3%. Cumulative sales of the Indigo
family were at 7,201 units, a decline of 13.4%. Cumulative
sales of Sumo and Safari were 10,040 units, an increase of
19.3%.
Exports
The company's sales from exports at 5,482 vehicles in June 2007
grew by 5.5% as compared to 5,195 vehicles in June 2006. The
cumulative sales from exports in the current period at 13,822
nos. have recorded a 5.5 % growth over the previous year.
About Tata Motors
India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the Company. The Company's operating segments consists of
Automotive and Others. In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.
Tata Motors has operations in Russia, and the United Kingdom.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services raised its
corporate credit ratings for Tata Motors to 'BB+' from 'BB'.
S&P said the outlook is stable. At the same time, Standard &
Poor's has raised its rating on Tata Motors' senior unsecured
notes to 'BB+' from 'BB'.
Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.
TATA MOTORS: Bags National Award for Excellence in Cost Mgmt.
-------------------------------------------------------------
Tata Motors has won the National Award for Excellence in Cost
Management for the year 2006, conferred by the Institute of Cost
and Works Accountants of India.
Tata Motors bagged the first prize in the 'Manufacturing'
category in the private sector.
A high profile 17-member jury led by the former Chief Justice of
India, J S Verma, chose the winners after a comprehensive
selection process. The criteria for selection were:
i) better practices for resource management;
ii) efficient utilisation of capacity and working capital;
iii) quality augmentation programme and R&D efforts; and
iv) precise information on performance.
About Tata Motors
India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the Company. The Company's operating segments consists of
Automotive and Others. In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.
Tata Motors has operations in Russia, and the United Kingdom.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Standard & Poor's Ratings Services raised its
corporate credit ratings for Tata Motors to 'BB+' from 'BB'.
S&P said the outlook is stable. At the same time, Standard &
Poor's has raised its rating on Tata Motors' senior unsecured
notes to 'BB+' from 'BB'.
Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.
TATA POWER: Moody's Cuts Corporate Family Rating to Ba3
-------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Tata Power Company to Ba3 from Ba1. At the same time,
Moody's has downgraded its senior unsecured bond rating to B1
from Ba2. The ratings outlook is negative. This concludes the
review for possible downgrade.
"The downgrade reflects TPC's aggressive capital expenditure
plan in coming years to more than triple generation capacity
from 2,323MW to over 7,500MW," says Moody's lead analyst
Jennifer Wong, adding "Such an aggressive plan will raise
materially the company's overall business and financial risk
profile."
"By the end of 2008/9, consolidated debt at TPC is expected to
be well over two and half times that at the end of 2006/7" says
Wong, "and this is before the bulk of capital expenditure for
Mundra UMPP is required. The result is the financial profile of
TPC is going to be much weaker in the next 3 years than it has
been historically" she concluded.
Moody's notes that much of this debt is limited recourse but,
consistent with it global practices, consolidates this debt as
the investment is part of the core strategic plans of the
company. Debt is also adjusted to include the pro-rata share of
debt in the Tata group affiliated telecom investments which TPC
has historically supported.
"Further, TPC's business profile will gradually shift from its
core predictable earnings stream from its Mumbai business to a
less certain return from its new power investments including the
Mundra UMPP; as such, TPC's business profile will weaken as it
adds more debt" says Wong.
"TPC will be exposed to increased counterparty risk as compared
to its existing customer profile, which includes creditworthy
clients in the Mumbai license area. There is also execution
risk, including cost overruns and delays, as it more than
triples its generation capacity. It has also yet to demonstrate
an ability to manage such a large scale project," adds Wong.
TPC's bond rating further incorporates the risk of legal and
structural subordination, given the significant level of secured
debt and subsidiary debt.
At the same time, the rating continues to reflect its status as
the leading electricity supplier to the Mumbai license area,
supported by sustainable growth in demand and creditworthy
clients in Mumbai, all with good payment track records. Tariffs
are set under a cost-plus rate of return structure, which
enables TPC to pass on cost increases to customers and earn a
stable rate of return. As such, the Mumbai business will
continue to provide the company with a stable and recurrent cash
flow.
The rating outlook is negative, reflecting Moody's ongoing
concern as to the final funding structure to be adopted for the
Mundra UMPP. There remains uncertainty as to the funding
arrangements as these will only be finalized by April 2008.
Furthermore, the negative outlook reflects Moody's concern
regarding the aggressive growth strategy of TPC, including the
potential for further capacity expansion such as the 2,400MW
Coastal Maharashtra project.
Upward rating pressure is limited, given the current negative
outlook. However, the outlook could return to stable if the
company decides to majority fund the expansion plan through
equity or by unlocking investments in non-core businesses, such
as telecoms, such that FFO/Int. >2.5x and RCF/Adj Debt >10%.
On the other hand, downward rating pressure would emerge if:
1) the company finalizes a funding plan with majority debt
financing;
2) the company further expands its generation capacity; or
3) the company is not able to execute capacity expansion for
the Mundra UMPP and other projects within the stated
timeframe and budgeted costs.
Tata Power Company is the largest private-sector power utility
in India with an installed generation capacity of 2,323MW and a
presence across the power business system in generation
(thermal, hydro, solar and wind), transmission and distribution.
Headquartered in Mumbai, TPC has a strong presence in the area,
meeting about 80% of its power requirements.
TATA POWER: Allots Preferential Shares & Warrants to Tata Sons
--------------------------------------------------------------
Tata Power Company Ltd informed the Bombay Stock Exchange in a
regulatory filing that the company has allotted to Tata Sons Ltd
on preferential basis:
a. 98,94,000 equity shares of INR10 each; and
b. 1,03,89,000 warrants.
The warrants will entitle Tata Sons to subscribe to the
company's equity shares after April 1, 2008, but not later than
18 months from the date of issue of the warrants.
In another BSE filing, the company discloses that its board of
directors will hold a meeting on July 26, 2007, inter alia, to
consider and take on record the audited financial results for
the first quarter ended June 30, 2007.
Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area. The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area. The company also has a
plant that supplies power to Tata Steel. In addition, Tata
Power has an 81-MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.
* * *
Moody's Investors Service, on July 3, 2007, downgraded the
corporate family rating of Tata Power Company to Ba3 from Ba1.
At the same time, Moody's has downgraded its senior unsecured
bond rating to B1 from Ba2. The ratings outlook is negative.
On May 9, 2007, Standard & Poor's Ratings Services placed its
'BB+' long-term foreign and local currency corporate credit
ratings on Tata Power Co. Ltd. on CreditWatch with negative
implications reflecting significantly greater concerns on the
company's debt and on its exposure to higher project completion,
stabilization, and counterparty risks.
UNION BANK OF INDIA: Pays Government INR98-Crore Dividend
---------------------------------------------------------
Union Bank of India has paid a dividend of INR98 crore to the
Government of India. Union Bank of India had made an operating
profit of INR2,001 crore for the year 2006-07 (recording growth
of 36.49% over the previous year) and a net profit of INR845
crore (a growth of 25.19% over the previous year). The Bank's
improved performance was also reflected in an improved in Net
Interest Margin from 3.03% to 3.05%, Capital Adequacy from
11.41% to 12.80% and Return on Average Assets from 0.84% to
0.92%.
The Bank declared a dividend of 35% for the year 2006-07 -- 15%
being interim and 20% final. Shri M.V. Nair Chairman and
Managing Director of the Bank handed over the cheque for INR56
crore being 20% final dividend to Hon'ble Finance Minister Shri
P.Chidambaram last Friday. Government holding in the Bank is
55.43%.
Best IT User Bank
Union Bank of India was recently awarded the trophy for "Best IT
User" in the Banking and Financial Services Sector by NASSCOM.
The award is instituted by NASSCOM to recognize examples of
outstanding achievements of IT in various sectors. Union Bank
was given the award in recognition of its computerization of
clearing house operations in Pune. The entire software was
developed in house by the Bank. The clearing house operations
of Banks in Pune are handled by Union Bank.
The Bank was one of the pioneers among Public Sector Banks in
the implementation of Core Banking Solutions. Today more than
1000 branches and extension counters of the Bank are under the
CBS network. 76% of the Bank's business is captured under CBS.
The Bank has leveraged technology to ensure that many back
office operations are centralized. Parallel to this, the Bank
is also transforming many of the functions of the branch so that
the staff is enabled to give more attention to meeting customer
needs. Products, services and processes are being constantly
examined to see how they can be made more user friendly, thereby
making the Bank more customer centric.
About Union Bank of India
Union Bank of India -- http://www.unionbankofindia.com/-- is
one of the 10 largest Indian banks with total assets of more
than INR800 billion as of March 31, 2006. Union Bank was
incorporated in 1919 at Mumbai and was nationalized during the
first round of bank nationalization in 1969. Until August 2002,
GoI fully owned the bank; currently, GoI has a 55% stake.
The bank has a nationwide presence with a geographically
diversified branch network. As of March 31, 2006, it had 2,082
branches and 145 extension counters.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Oct. 23, 2006, that Fitch Ratings upgraded the Bank's individual
rating to 'C/D' from 'D.'
Moody's Investors Service gave the bank's foreign long-term bank
deposits a Ba2 rating.
UTI BANK: Will Expand Retail Business; To Up Workforce by 45%
-------------------------------------------------------------
As part of its expansion plan for its retail business, UTI Bank
Limited plans additional 4,500 people to its current workforce,
the Press Trust of India reports, citing bank President S.
Bhattacharya.
Mr. Bhattacharya told PTI that the bank intends to open as many
as 150 new branches, hence the need for additional manpower.
"Besides, new verticals would be added to retail asset business
as well," he added.
According to PTI, the bank's employees as of March 31, 2007,
number 9,980 and the planned hiring spree would add 45% to its
total workforce. Currently, the bank's has a network of more
than 578 branch offices over 2,383 automated teller machines,
the news agency adds.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.com/-- is engaged in treasury and other
banking operations. The treasury services segment undertakes
trading operations on the proprietary account, foreign exchange
operations and derivatives trading. Revenues of the treasury
services segment primarily consist of fees and gains or losses
from trading operations and interest income on the investment
portfolio. Other banking operations principally comprise the
lending activities (corporate and retail) of the bank. The
corporate lending activity includes providing loans and
transaction services to corporate and institutional customers.
The retail lending activity includes raising of deposits from
customers and providing loans and advisory services to customers
through branch network and other delivery channels. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On Nov. 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its US$1-billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2006, that Standard & Poor's Ratings Services maintained
its 'C' bank fundamental strength rating to the bank.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the rating is stable.
UTI BANK: Board to Consider 1st Quarter Results on July 12
----------------------------------------------------------
UTI Bank Limited's board of directors will hold a meeting on
July 12, 2007, a filing with the Bombay Stock Exchange says.
Among others, the board will consider on the meeting the bank's
unaudited financial results for the first quarter ended June 30,
2007.
As reported in the Troubled Company Reporter - Asia Pacific on
April 19, 2007, the bank posted a net profit of INR2.12 billion
for the quarter ended March 31, 2007, a 40% increase from the
INR1.52 billion profit for the quarter ended March 31, 2006.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.com/-- is engaged in treasury and other
banking operations. The treasury services segment undertakes
trading operations on the proprietary account, foreign exchange
operations and derivatives trading. Revenues of the treasury
services segment primarily consist of fees and gains or losses
from trading operations and interest income on the investment
portfolio. Other banking operations principally comprise the
lending activities (corporate and retail) of the bank. The
corporate lending activity includes providing loans and
transaction services to corporate and institutional customers.
The retail lending activity includes raising of deposits from
customers and providing loans and advisory services to customers
through branch network and other delivery channels. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On Nov. 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its US$1-billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2006, that Standard & Poor's Ratings Services maintained
its 'C' bank fundamental strength rating to the bank.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the rating is stable.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Wins Contract from Hanaro Telecom
-------------------------------------------------
Alcatel-Lucent has signed a contract with Hanaro Telecom, a
major broadband service provider in Korea, to support its
network expansion. Alcatel-Lucent will supply its optical
networking solution to increase Hanaro Telecom's network
capacity. This will enable Hanaro Telecom to accommodate its
significant subscriber growth and the increased bandwidth
requirements driven by the "hanaTV" video-on-demand and
"hanafos" high-speed data services. The project is scheduled
for completion in the third quarter 2007.
"With the deployment of Alcatel-Lucent's advanced optical
network, we address our growing broadband traffic demands with
enhanced efficiency and cost-effectiveness," said Seung-Seog
Lee, Chief Technology Officer at Hanaro Telecom "Upon
completion, this project will allow us to deliver the most
advanced services with the highest quality and reliability and
to be prepared for deploying interactive IPTV service in the
near future."
"This contract further sustains the traction of our optical
networking solutions in the Asia-Pacific region, where we have
experienced significant growth over the past quarters," said
Frederic Rose, President of Alcatel-Lucent activities in Asia-
Pacific. "This achievement also confirms our commitment to
assist our customers in their move to next-generation optical
networks."
Alcatel-Lucent's solution is based on its 1626 Light Manager, a
multi-reach DWDM platform operating up to 40 Gbit/s, and 1353
Network Manager, which enables easy and fast service
provisioning and network management. Its rollout will further
raise Hanaro Telecom's network efficiency, ultimately reducing
its operational costs. This new deployment fits with Hanaro
Telecom's plans to increase the flexibility and intelligence of
its optical infrastructure, having already deployed Alcatel-
Lucent's 1678 Metro Core Connect and data-aware Optical Multi-
Service Node systems.
Alcatel-Lucent leads the Asia-Pacific multi-reach dense
wavelength division-multiplexing segment with a 33% market share
in the first quarter of 2007 according to Ovum-RHK. This new
contract further strengthens the Alcatel-Lucent 1626 Light
Manager's customer base which includes China Telecom, Spark
(Taiwan), Triple T Broadband, DANTE, in the framework of the
pan-European GEANT2 project, and RENATER in the research and
education field; Kazahktelecom, Telemar, P&T Luxembourg with an
ROADM-enabled solution.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users. Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia,
Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent
Technologies Inc. completed their merger transaction, and began
operations as a communication solutions provider under the name
Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
AVNET INC: Unit Acquires UK-Based Interconnect
----------------------------------------------
Avnet, Inc. and Avnet Electronics Marketing EMEA's business unit
Avnet Time has acquired the UK-based Interconnect, Passive and
Electromechanical distributor, Flint Distribution Ltd. Flint
will be combined with the Avnet Time organisation. The newly
formed business will have annual revenues of 31 Million Euros.
Carl Barton, Managing Director and Co-Founder of Flint, will
lead the new, larger Avnet Time business in the UK and Ireland.
Vince Clark, Avnet Time's UK manager, will head up the sales
organisation. Avnet Time and Flint customers will have full
access to an expanded line card and thus enjoy one of the best
IP&E product portfolios in the industry.
Flint is one of the regions leading independent specialist
electronic component distributors in IP&E products. With 55
employees it serves over 1600 customers across a broad range of
industry sectors, including EMS, security, instrumentation,
automation and industrial controls. Over the years, Flint has
established a strong reputation in the market, for its excellent
on-time delivery performance and an outstanding service level,
particularly for those customers seeking value-added services
such as Flint's unique PARETO vendor-managed inventory system.
According to Flint Managing Director and Co-Founder Carl Barton,
"We have a very loyal and high quality team and I am confident
that their career opportunities will be enhanced by joining
Avnet Time. Too often, our operational excellence and superior
customer service get lost in vendor reduction programmes.
Therefore, all of the Flint board members believe that the
combined strengths of Avnet and Flint provides the best option
for customers, suppliers and staff alike. Flint has been my
life for over 20 years and my overriding objective was to ensure
that 'my baby' went to the best possible home. I am delighted
to see Flint at the core of Avnet Time's exciting plans for the
UK & Ireland and that I can be a vital part of this new
strategy."
Patrick Zammit, President of Avnet Electronics Marketing EMEA
stated: "We have very exciting growth plans for Avnet Time
across Europe and the acquisition of Flint is a great example of
our commitment to grow IP&E in the region. As part of the
acquisition, both customer sets will gain access to industry
leading franchises that have not been part of our respective
portfolios. We are confident that our suppliers and customers
will embrace the opportunities that this new organization can
offer."
Klaus Emme, President of Avnet Time, said: "This acquisition is
excellent for all parties, not just Flint and Avnet, but also
for customers and suppliers. Flint has an unequalled reputation
for service excellence and process & operational innovation.
Therefore, our intent is to fully merge best people and best
practices into Avnet Time's organisation."
Emme continued: "Coalville will become the centre of UK and
Ireland operations for Avnet Time. Furthermore, Avnet Time's
Stevenage location will remain a critical sales branch with
refined geographical responsibilities, to continuously expand
our service offerings to customers."
Carl Barton and the new, bigger Avnet Time will work to make
sure that Flint's differentiating strengths in the market place
-- in particular operational excellence and innovation -- will
drive the new organization and that, customers, suppliers and
employees will experience a smooth transition with new, exciting
opportunities. Vince Clark, who will lead the sales organization
of the new company, commented: "I am extremely excited by the
opportunities that this new larger business will offer to our
customers. By leaving both the Coalville operation and the
Stevenage sales office intact, customers will enjoy the stronger
market presence of Avnet Time and Flint combined, as well as the
benefit of Flint's unrivalled customer service."
About Avnet Time
Avnet Time, a business unit of Avnet Electronics Marketing EMEA,
an operating group of Avnet, Inc., is a highly focused
electronic component distributor, serving original equipment
manufacturers and specializing in interconnect, passive,
electromechanical and power supply products. Avnet Time is
served internally by a common integrated Pan-European logistical
backbone and industry leading supply-chain services, while
leveraging the global logistical reach of Avnet Electronics
Marketing and its world-class supply-chain management
capabilities. Specialization benefits customers and suppliers
by empowering the organization to make swift decisions and
increase speed of execution, thereby addressing time-to-market
issues that are driving the market for electronic products.
Avnet Time combines the agility of a smaller, focused company
with the considerable global resources of Avnet, Inc., to serve
the widely varying requirements of customers.
About Avnet Electronics Marketing
Avnet Electronics Marketing is an operating group of Phoenix-
based Avnet, Inc., a Fortune 500 company. Avnet Electronics
Marketing serves electronic original equipment manufacturers and
electronic manufacturing services providers in 70 countries,
distributing electronic components from leading manufacturers
and providing associated design-chain and supply-chain services.
The group's Web site is located at http://www.em.avnet.com/.
About Avnet
Headquartered in Phoenix, Arizona, Avnet, Inc.
-- http://www.avnet.com/-- distributes electronic components
and computer products, primarily for industrial customers. It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and
Sweden.
* * *
The Troubled Company Reporter on March 6, 2007, reported that
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc. and revised the outlook to
positive from stable.
HANOVER COMPRESSOR: Discloses Termination of HSR Waiting Period
---------------------------------------------------------------
Hanover Compressor Company and Universal Compression Holdings,
Inc. disclosed that each company has received notice that the
waiting period required by the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 with respect to their proposed merger
has been terminated. Termination of the waiting period
satisfies a condition to the closing of the proposed merger.
The proposed merger of Hanover and Universal, which was
announced on February 5, 2007, provides for each common share of
Hanover to be converted into 0.325 shares of common stock of a
newly created holding company called Exterran Holdings, Inc. and
each common share of Universal to be converted into one share of
common stock of Exterran. The consummation of the merger
remains subject to other closing conditions, including the
approval of the stockholders of each of Hanover and Universal.
Closing of the transaction is currently anticipated in the third
quarter of 2007, but no assurances can be given as to the timing
of the satisfaction of all closing conditions or that all
required approvals will be received.
About Universal Compression Holdings
Universal Compression Holdings, headquartered in Houston, Texas,
is a leading natural gas compression services company, providing
a full range of contract compression, sales, operations,
maintenance and fabrication services to the domestic and
international natural gas industry.
About Hanover Compressor Company
Headquartered in Houston, Texas, Hanover Compressor Company
(NYSE:HC) -- http://www.hanover-co.com/-- is in full service
natural gas compression and provider of service, fabrication and
equipment for oil and natural gas production, processing and
transportation applications. Hanover sells and rents this
equipment and provides complete operation and maintenance
services, including run-time guarantees for both customer-owned
equipment and its fleet of rental equipment. Founded in 1990
and a public company since 1997, Hanover's customers include
both major and independent oil and gas producers and
distributors as well as national oil and gas companies. It has
locations in India, China, Indonesia, Japan, Korea, Taiwan, the
United Kingdom, and Vietnam, among others.
* * *
As reported in the Troubled Company Reporter on Feb. 8, 2007,
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor
Co. and its related entity Hanover Compression L.P. on
CreditWatch with positive implications.
GENERAL NUTRITION: Parent Opens 1000TH Franchise Store in Sofia
---------------------------------------------------------------
General Nutrition's parent company GNC opened its 1,000th
international franchise store in Sofia, Bulgaria -- marking yet
another milestone for the company's international franchising
division this year.
In February, Entrepreneur magazine named GNC Franchising, Inc.
the world's #1 franchise in the vitamins category for the 18th
year in a row, and ranked the company #32 overall in its elite
list of first-rate franchising opportunities.
The 1,000th international store will be operated by Bissera
Pramatarova, M.D., and Atanas Iantchev, M.D., of United Medical
Communications, Ltd., which franchises the rights to GNC's
development in Bulgaria. United Medical Communications, Ltd. is
an exclusive distributor of Flora Health of Canada in that
country, where it is pursuing various other opportunities in the
healthcare industry.
For GNC, the new store opening signifies great potential for
continued growth and dissemination of its retail concept across
the European Union, which Bulgaria joined in January. Reg
Steele, senior vice president of GNC's international franchising
division, said he's certain that more members of the EU will
come to accept and embrace the GNC brand, as it stands for
quality and good self-healthcare across all the international
markets it has developed over the years.
"Our continued focus on global expansion, coupled with
increasing worldwide demand for our products, has led to great
success in the industry and around the world," he said. "We
look forward to the opportunities this partnership will surely
bring."
About General Nutrition
Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary
of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of
health and wellness products, including vitamins, minerals,
herbal, and specialty supplements (VMHS), sports nutrition
products and diet products. The company sells its products
through a worldwide network of more than 5,800 locations
operating under the GNC brand name and operates in three
business segments: retail, franchise and manufacturing/
wholesale.
GNC's Asian operations include those in Indonesia and the
Philippines.
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Moody's Investors Service assigned these ratings:
-- US$710 million senior secured credit facility at B1
(LGD 2, 27%);
-- US$300 million floating-rate seven-year senior notes
at Caa1 (LGD 5, 77%);
-- US$125 million fixed-rate eight-year senior subordinated
notes at Caa2 (LGD 6, 95%);
-- Corporate family rating at B3;
-- Probability-of-default rating at B3;
-- Speculative Grade Liquidity rating at SGL-3.
MEDCO ENERGI: Plans to Join Refinery Project in Banten
------------------------------------------------------
PT Medco Energi Internasional Tbk. is interested in joining a
refinery project to be built by National Iran Oil Company and PT
Elnusa, in Banten, West Java, Tempo Interactive reports.
According to the report, Elnusa and Pertamina are waiting for
confirmation regarding Venezuela's participation, as one of the
countries that will supply crude oil to the Banten refinery.
Iran will also be a crude oil supplier.
The gas supplies will probably come from Iran and Oman in the
form of liquefied natural gas on the condition that gas price is
US$5 per mmBtu. The amount of gas required is around 200
million cubic feet, the report says.
Tempo relates that once the refinery is operating, oil
distillation in Banten will produce 20,000 barrels of oil per
day, which is expected to cover 25% of oil needed in Indonesia.
Adrian Rusmana, a mining analyst from Kresna Securities, said
that Medco must be careful about investing, the report relates.
Tempo points out that the Indonesian Government has not yet been
able to give certainties as regards the Lapindo mudflow
solution. It will still very probably affect the three
companies that once initially owned participating interest in
the Brantas Block namely Lapindo Brantas Inc., Santos and Medco
EMP Brantas.
Medco has in fact sold its participating interest to the Perkasa
Group but the process of its shares divestment has not been
completed. It is still being questioned by the Capital Market
Supervisory Board, Tempo says.
The report adds that Mr. Rusmana went on to say that Medco's oil
and gas sales are currently down, 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).
NORTEL NETWORKS: Wins Contract from Taiwan's Cathay United
----------------------------------------------------------
Cathay United Bank, one of Taiwan's largest commercial banks, is
enhancing its business operations with the deployment of Nortel
Network Corporation's converged IP communications solutions
across its branch locations. The new Cathay United Bank network
integrates voice and data into a simplified IP network, saving
time and costs on managing communications needs. Nortel
collaborated with Interstate Communication on the project.
As part of its communications infrastructure upgrade, Cathay
United Bank has migrated to an integrated IP network to more
cost-effectively drive its internal communications and enhance
operational efficiency. The new network helps Cathay United
Bank meet objectives for increasing productivity through
simplified and centralized communications management while
lowering costs by reducing equipment purchases and leasing fees.
"Many companies have hesitated to convert to a converged IP
communications network because of concerns about voice quality,
cost and lack of internal technical skills to manage the
transition," said Y.K. Tsai, regional Taiwan leader, Nortel.
"Nortel used sophisticated yet easy-to-use technology to
integrate Cathay United Banks' separate voice and data networks
to deliver consistent quality of service."
Cathay United Bank's new IP network utilizes Nortel's
Communication Server 1000. Nortel Communication Server 1000 is
a full-featured IP PBX, providing the benefits of a converged
network plus advanced applications and over 750 advanced
telephony features. The server is fully distributed over IP,
LAN and WAN infrastructure, and supports business-critical
applications, including unified messaging, customer contact
centers, Interactive Voice Response, wireless VoIP and IP
phones.
Nortel is also providing Network Managed Services from the
Nortel Global Services portfolio, which offers a full range of
network application, implementation, management and support
services for end-to-end, multi-vendor, multi-technology
networks.
Nortel is a recognized global market leader in converged IP
solutions for enterprises and has deployed IP telephony for
thousands of customers around the world. Nortel combines
extensive expertise in IP with a broad portfolio of voice and
data solutions to provide pre-configured IP migration packages
tailored to specific customer business needs.
About Nortel
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
On March 27, 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering. Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par. Moody's said the outlook remains stable.
On March 26, 2007, Standard & Poor's Ratings Services assigned
its 'B-' debt rating to Canada-based Nortel Networks Corp.'s
proposed US$1 billion senior unsecured convertible notes, which
will consist of two tranches of USUS$500 million, maturing in
2012 and 2014, respectively. Proceeds from the convertible
notes will be used to partially refinance NNC's US$1.8 billion
senior unsecured convertible notes due Sept. 1, 2008, and
therefore the overall debt level is not expected to change.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on 100%-owned Canada-based
subsidiary, Nortel Networks Ltd. At the same time, the ratings
on the US$200 million notes of NNL and the US$150 million notes
of Nortel Networks Capital Corp. were lowered to 'CCC' from 'B-
'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks
Inc., are collectively referred to as Nortel. S&P said the
outlook on NNL is stable.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable. DBRS confirmed B (low)
Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B
(low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class
A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A,
Non-Cumulative Redeemable Preferred Shares.
=========
J A P A N
=========
AMR CORPORATION: Sees US$12 Mil. Cut in Annual Interest Expense
---------------------------------------------------------------
AMR Corporation, the parent company of American Airlines Inc.,
provided an update on actions taken in the second quarter of
2007 as part of its ongoing efforts to strengthen its balance
sheet and build a stronger financial foundation. The company
said that these actions are expected to eliminate about US$12
million in annual net interest expense.
Actions in the second quarter include:
-- American amended the US$442 million floating rate term
loan portion of its credit facility, which has been
outstanding since December 2004, lowering the interest
rate from 3.25% over LIBOR to 2% over LIBOR;
-- AMR's wholly-owned subsidiary, American Eagle Airlines
Inc., prepaid US$48.2 million in principal amount of
aircraft debt. The debt prepayment is in addition to
AMR's US$1.3 billion in scheduled principal payments in
2007;
-- American refinanced US$127.7 million of bonds that were
originally issued to fund facilities expansion and
renovation at Dallas/Fort Worth International Airport,
reducing the interest rate by 1.75 percentage
points to 5.5%;
-- American refinanced US$108.7 million in bonds that were
originally issued to fund expansion and improvements at
O'Hare International Airport in Chicago, reducing the
interest rate by 2.7 percentage points to 5.5%.
These efforts by AMR to improve its balance sheet follow similar
actions taken by the company earlier in 2007, which resulted in
the elimination of more than $15 million in annual net interest
expense.
AMR anticipates ending the second quarter of 2007 with about
US$6.2 billion in cash and short-term investments, including a
restricted balance of about US$500 million, compared to a cash
and short-term investment balance of US$5.7 billion, including a
restricted balance of US$525 million, at the end of the second
quarter of 2006.
The company expects to end the second quarter of 2007 with total
debt, which the company defines as the aggregate of its long-
term debt, capital lease obligations, the principal amount of
airport facility tax-exempt bonds and the present value of
aircraft operating lease obligations, of about US$17.3 billion.
AMR's total debt was about US$19.4 billion at the end of the
second quarter of 2006 and about US$20.1 billion at the end of
2005.
The company expects to end the second quarter of 2007 with net
debt, which the company defines as Total Debt less unrestricted
cash and short-term investments, of about US$11.6 billion,
compared to net debt of about US$14.2 billion at the end of the
second quarter of 2006 and about US$16.3 billion at end of 2005.
"We continue to make progress in strengthening our balance
sheet, which gives us greater flexibility and builds our
foundation for the future," said Thomas W. Horton, executive
vice president of finance and planning and chief financial
officer of AMR. "We have more work ahead of us to reduce debt
and improve our overall cost structure, but we believe that we
are on the right path to position the company for long-term
success."
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, Europe and Asia. AMR also flies to
Japan. American is also a scheduled airfreight carrier,
providing freight and mail services to shippers throughout its
system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
As reported in the Troubled Company Reporter on June 21, 2007,
Moody's Investors Service assigned a rating of Caa1 to the
Chicago O'Hare International Airport Special Facility Revenue
Refunding Bonds, Series 2007 (American Airlines Inc. Project).
Moody's affirmed all ratings of AMR Corporation and its
subsidiaries, corporate family rating at B2, and the outlook
remains stable.
JAPAN AIRLINES: To Boost Overseas Flights by 70%
------------------------------------------------
Japan Airlines International Company, Limited, will boost
overseas flights by about 70% as they take routes from the
parent company to cut its operating cost, Chris Coooper, of
Bloomberg News, reports.
According to Mr. Cooper, JALways Co., whose operating costs are
about 10 percent lower than Japan Air's, will start flights to
Ho Chi Minh City, Vietnam, in August and Delhi in October. It
will boost flights to about 180 a week from 150 by the end of
March 2011.
JAL Express Co., writes Mr. Cooper, will operate about 70
flights a week to other Asian countries by the end of March
2011.
JAL Express Co. currently flies within Japan only. All in all,
overseas flights by the two subsidiaries will increase to about
250 a week from 150, relates Mr. Cooper.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP reported on Oct. 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic. JAL International will be the
surviving company. The rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
NIPPON SHEET: Revises Financial Results for Fiscal Year 2008
------------------------------------------------------------
Nippon Sheet Glass Company, Limited has posted its revision for
its full-year results for the fiscal year ending March 31, 2008.
Net income for the current fiscal year was originally estimated
to be at JPY15 billion and Nippon Sheet is now revising it to be
between JPY35-45 billion, an increase of JPY20-30 billion.
However net sales and income before extraordinary items remain
the same at JPY830 billion and JPY24 billion, respectively.
With the acquisition of its Australia and New Zealand unit by
CSR, the glass manufacturer now estimates its extraordinary
income to be between JPY25-35 billion because they are still
finalizing the value of the assets and liabilities of the
business and also the resulting income tax which should be
calculated based upon the said value.
For its first quarter (April 1, 20007- September 30, 2007)
forecast, the company expects its net income to increase to
between JPY29-39 billion from the May 31, 2007 forecast of JPY9
million. Net sales and income before extra-ordinary items
remain the same at JPY420 billion and JPY12 billion
respectively.
Headquartered in Tokyo, Nippon Sheet Glass Company, Limited
-- http://www.nsg.co.jp-- Company operates in four business
divisions. Its Glass and Construction Material division
manufactures, processes and sells various types of glasses, such
as float plate, polished wire, heat absorbing, heat reflecting,
reinforced, laminated, double-layer, vacuum, fireproof,
template, mirror and ornamental glass, as well as sashes. It
also supplies construction materials, and interior accessories
for stores. The Information and Electronics division offers
optical products, fine glass products, industrial glass
products, liquid crystal display (LCD) products and others. Its
Glass Fiber division is engaged in the manufacture, processing
and sale of special glass fiber products, air filter-related
items and others. The Others division is involved in the
facility engineering and the test analysis businesses, among
others.
The company has operations in Argentina, the United States, and
Austria.
Standard & Poor's Ratings Services affirmed on June 20, 2006,
its BB+ long-term corporate credit and long-term senior
unsecured debt ratings on Nippon Sheet Glass Co. Ltd., following
the company's successful acquisition of U.K.-based Pilkington
PLC.
NOVA CORP: To Tie Up with H.I.S. in Providing Financial Help
------------------------------------------------------------
Travel agency H.I.S. Co. plans to form an alliance with Nova
Corp. by providing financial assistance to the scandal-tainted
language school, reports The Asahi Shimbun.
Nova, in return for the financial help, will give H.I.S. the
chance to recruit its students as customers. H.I.S., according
to the report, is known for its sales of discount airline
tickets.
Sources revealed to the Asahi Shimbun that the monetary
assistance by the travel agency will help Nova maintain its
network of schools while the travel agency could in return sell
discount airline tickets at Nova schools.
According to the daily's sources, H.I.S. Chairman Hideo Sawada
and Nova President Nozomu Sahashi held a meeting in late June to
discuss the funding as well as a business tie-up. Sawada, as
stated in the article, may provide immediately needed funds from
his own personal finances with Sahashi's personal assets as
collateral.
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.
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K O R E A
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DURA AUTOMOTIVE: To Sell Atwood Mobile Division for US$160 Mil.
---------------------------------------------------------------
DURA Automotive Systems Inc. entered into an asset purchase
agreement with Atwood Acquisition Co., LLC for the sale of
DURA's Atwood Mobile Products division, headquartered in
Elkhart, Indiana.
The agreement provides for the acquisition of Atwood Mobile
Products for an aggregate cash consideration of US$160.2
million. Closing of the transaction is subject to the approval
of the United States Bankruptcy Court for the District of
Delaware, which has jurisdiction over DURA's Chapter 11
reorganization proceedings; government regulatory approvals; and
customary closing conditions. Dura was advised by Miller
Buckfire and Kirkland & Ellis in connection with the
transaction.
As a standard element of the bankruptcy process, DURA has filed
a motion with the Bankruptcy Court seeking approval of
procedures that will provide an opportunity for competitive bids
on Atwood Mobile Products before the sale is approved by the
Court. DURA expects to complete the bidding process and to
secure the regulatory approvals in time to close the sale by the
end of August.
"Atwood is a strong, profitable and growing business, and we are
extremely satisfied with the interest we have received in the
business," said Larry Denton, DURA's chairman and chief
executive officer. "This agreement is a major milestone in our
restructuring efforts as it enables the company to position
itself to exit Chapter 11 and finish implementing financial and
operational strategies to improve our core automotive parts
business."
About Atwood Acquisition
Atwood Acquisition Co., LLC offers a broad range of products to
the recreation vehicle (RV), specialty vehicle and manufactured
housing markets. The division's products encompass windows and
doors, specialty glass, hardware appliances and electronics.
Founded in 1909, Atwood was acquired by automotive supplier
Excel Industries, which was then acquired by DURA in 1999.
About Miller Buckfire
Miller Buckfire in New York - http://www.millerbuckfire.com/--
is an independent investment bank providing strategic and
financial advisory services focusing on complex restructuring
transactions, mergers and acquisitions, and equity and debt
financing.
About Atwood Mobile
Atwood Mobile Products Inc. designs and manufactures window,
glass, aluminum, appliance and electronic products for
recreation vehicles (RVs), specialty vehicles, manufactured
housing and associated niche markets. Atwood's core products
include windows, doors, specialty glass products, water heaters,
furnaces, ranges, electronic control systems, converters and
seating systems designed to meet specific customer demands.
Atwood provides its products to customers including Thor
Industries, Fleetwood, Jayco, Gulfstream, Winnebago,
Freightliner and Leer. Atwood also supplies to the RV,
specialty vehicle and manufactured housing industries, and
markets under its Atwood, Creation, Kemberly, Wedgewood, Spec-
Temp, Duraleg and Levelegs brands. Atwood has
about 1,900 employees.
About DURA Automotive
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.
The company has three locations in Asia, namely in China, Japan
and Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
HANARO TELECOM: Selects Alcatel-Lucent for Network Expansion
------------------------------------------------------------
Hanaro Telecom has signed a contract with Alcatel-Lucent to
support its network expansion. Alcatel-Lucent will supply its
optical networking solution to increase Hanaro Telecom's network
capacity. This will enable Hanaro Telecom to accommodate its
significant subscriber growth and the increased bandwidth
requirements driven by the "hanaTV" video-on-demand and
"hanafos" high-speed data services. The project is scheduled
for completion in the third quarter 2007.
"With the deployment of Alcatel-Lucent's advanced optical
network, we address our growing broadband traffic demands with
enhanced efficiency and cost-effectiveness," said Seung-Seog
Lee, Chief Technology Officer at Hanaro Telecom "Upon
completion, this project will allow us to deliver the most
advanced services with the highest quality and reliability and
to be prepared for deploying interactive IPTV service in the
near future."
"This contract further sustains the traction of our optical
networking solutions in the Asia-Pacific region, where we have
experienced significant growth over the past quarters," said
Frederic Rose, President of Alcatel-Lucent activities in Asia-
Pacific. "This achievement also confirms our commitment to
assist our customers in their move to next-generation optical
networks."
Alcatel-Lucent's solution is based on its 1626 Light Manager, a
multi-reach DWDM platform operating up to 40 Gbit/s, and 1353
Network Manager, which enables easy and fast service
provisioning and network management. Its rollout will further
raise Hanaro Telecom's network efficiency, ultimately reducing
its operational costs. This new deployment fits with Hanaro
Telecom's plans to increase the flexibility and intelligence of
its optical infrastructure, having already deployed Alcatel-
Lucent's 1678 Metro Core Connect and data-aware Optical Multi-
Service Node systems.
Alcatel-Lucent leads the Asia-Pacific multi-reach dense
wavelength division-multiplexing segment with a 33% market share
in the first quarter of 2007 according to Ovum-RHK. This new
contract further strengthens the Alcatel-Lucent 1626 Light
Manager's customer base which includes China Telecom, Spark
(Taiwan), Triple T Broadband, DANTE, in the framework of the
pan-European GEANT2 project, and RENATER in the research and
education field; Kazahktelecom, Telemar, P&T Luxembourg with an
ROADM-enabled solution.
About Hanarotelecom
hanarotelecom Inc. -- http://www.hanaro.com/-- is the second
largest player in the Korean local telephone market. It
provides high-speed Internet services in Korea. It provides
high-speed Internet services in Korea. In June 2001, the
company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables and Broadband
Wireless Local Loop into a single brand called HanaFOS.
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.
* * *
Moody's Investor Service has given hanarotelecom's long-term
corporate family and senior unsecured debt 'Ba2' ratings.
Standard and Poor's gave both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit 'BB'
ratings.
===============
M A L A Y S I A
===============
DATUK KERAMAT: Gets Public Reprimand; Directors Face Fines
----------------------------------------------------------
The Bursa Malaysia Securities Berhad publicly reprimanded Datuk
Keramat Holdings Berhad for the company's failure to submit its
quarterly report for the financial period ended December 31,
2006, within the stipulated timeframe.
According to the bourse, although the company was already
delisted from the Official List of Bursa Securities on May 29,
2007, the breach was committed while it was still listed.
In addition with the public reprimand, the Bursa Securities had
also taken enforcement action against the directors of the
company:
-- Azimuddin bin Ab. Ghani, Executive Director: Public
reprimand and a fine of MYR60,000
-- Mohd Nor bin Abdul Rahman, Independent and Non-Executive
Director: Public reprimand and a fine of MYR24,000
-- Willie Howard Pickle, Independent and Non-Executive
Director: Public reprimand and a fine of MYR8,000
Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings
Berhad is engaged in investment and property holding. The
Company is also involved in management services; property
investment services; project management services and
development; credit and financing activities; distribution and
publication of magazines; media design and advertising;
management of supermarket and departmental store; trading and
distribution of pharmaceutical, management of car park, garment
manufacturing and financial services.
The Group is facing numerous suits filed by financiers and trade
creditors who have alleged that outstanding debts are owed to
them. On January 24, 2005, the Company was served with a wind
up petition by Affin Bank Bhd, who asserted a MYR15.66 million
claim in respect of revolving credit facilities granted to the
company.
The company was delisted from the Official List of the Bursa
Securities on May 29, 2007, after:
(a) the company failed to issue the annual audited accounts
and annual report for the 15 months period ended
December 31, 2004, and the quarterly report for the
financial period ended March 31, 2005, within the time
frames stipulated in Paragraphs 9.23(a), 9.23(b) and
9.22 (1) of the Listing Requirements; and
(b) more than 6 months have lapsed from the expiry of the
relevant timeframes stipulated and the prescribed
financial statements have still not been issued to-date.
GEORGE TOWN: Failure to File Financial Report Cues Reprimand
------------------------------------------------------------
George Town Holdings Bhd is facing a public reprimand from the
Bursa Malaysia Securities Berhad after it failed to submit its
quarterly report for the financial period ended December 31,
2006, within the stipulated timeframe.
The reprimand was ordered although the company was already
delisted from the Official List of Bursa Securities on May 29,
2007, as the breach was committed while it was still listed at
the bourse.
In addition, Bursa Securities had also taken enforcement action
against the company's directors in respect of the breach:
-- Azimuddin bin Ab. Ghani, Executive Director: Public
reprimand and a fine of MYR37,500
-- Mohd Nor bin Abdul Raman, Independent and Non-Executive
Director: Public reprimand and a fine of MYR15,000
-- Willie Howard Pickle, Independent and Non-Executive
Director: Public reprimand and a fine of MYR5,000
Headquartered at Petaling Jaya, in Selangor Darul Ehsan,
Malaysia, George Town Holdings Berhad operates supermarkets,
department stores and convenience stores. Its other activities
include property development, trading in pharmaceutical
products, media design and advertising, management services,
goldsmith and jewelers, management of car parks, bakery, pastry
and fast food center, financial services, hotel management and
investment holding.
The Group operates in Malaysia, Continental Europe/Offshore
Islands and other countries.
The company has been categorized as an Affected Listed Issuer
under Practice Note 17, based on its unaudited financial
statement as at December 31, 2004, wherein it showed that it had
MYR28.7 million shareholders' equity representing 23.4% of the
issued and paid-up share capital which is less than the 25%
minimum required under the listing requirements of Bursa
Securities.
The company was delisted from the Official List of the Bursa
Securities on May 29, 2007, after:
(a) the company failed to issue the annual audited accounts
and annual report for the 15 months period ended
December 31, 2004, and the quarterly report for the
financial period ended March 31, 2005, within the time
frames stipulated in Paragraphs 9.23(a), 9.23(b) and
9.22 (1) of the Listing Requirements; and
(b) more than 6 months have lapsed from the expiry of the
relevant timeframes stipulated and the prescribed
financial statements have still not been issued to-date.
====================
N E W Z E A L A N D
====================
BIO-VISION: Court to Hear Wind-Up Petition Today
------------------------------------------------
The High Court of Rotorua will hear a petition to wind up the
operations of Bio-Vision Ltd. today, July 9, 2007, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition before the
Court on May 21, 2007.
The CIR's solicitor is:
Kay S. Morgan
Telephone:(07) 959 0373
New Zealand
FUSION TRUST: Filing Proofs of Debt Due by July 16
--------------------------------------------------
Fusion Trust Company Ltd. requires its creditors to file their
proofs of debt by July 16, 2007.
The company started to liquidate its business on June 13, 2007.
The company's liquidator is:
N. P. Fagerlund
c/o HFK Limited
PO Box 5071, Papanui
Christchurch
New Zealand
Telephone:(03) 352 9189
HAIR ON DEVONPORT: Appoints Brown and Rodewald as Liquidators
-------------------------------------------------------------
Kenneth Peter Brown and Thomas Lee Rodewald were tapped as
liquidators of Hair on Devonport Ltd. on June 11, 2007.
The Liquidators can be reached at:
Kenneth Peter Brown
Thomas Lee Rodewald
c/o Rodewald Hart Brown Limited
127 Durham Street
PO Box 13380,Tauranga
New Zealand
Telephone:(07) 571 6280
Web site: http://www.rhb.co.nz
INTERNET CONNECTION: Fixes July 11 as Last Day to File Claims
-------------------------------------------------------------
The creditors of Internet Connection Ltd. are required to file
their proofs of debt by July 11, 2007, to be included in the
company's dividend distribution.
The company went into liquidation on June 7, 2007.
The company's liquidator is:
Robert Anthony Elms
Martin Jarvie PKF
PO Box 1208, Wellington
New Zealand
LEADING EDGE: Wind-Up Petition Hearing Set for July 16
------------------------------------------------------
A petition to wind up the operations of Leading Edge Productions
Ltd. will be heard before the High Court of Christchurch on
July 16, 2007, at 10:00 a.m.
The petition was filed by Invercargill City Council on May 25,
2007.
Invercargill City's solicitor is:
S. N. Mckenzie
c/o Preston Russell Law
92 Spey Street
PO Box 355, Invercargill
New Zealand
Telephone:(03) 211 0080
Facsimile:(03) 211 0079
MOWER & MACHINERY: Requires Creditors to File Claims by July 16
---------------------------------------------------------------
The creditors of Mower & Machinery Ltd. are required to file
their proofs of debt by July 16, 2007, to be included in the
company's dividend distribution.
The company went into liquidation on June 11, 2007.
The company's liquidator is:
Lloyd Hayward
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
ORIENTAL BAY: Undergoes Liquidation Proceedings
-----------------------------------------------
Oriental Bay Nominee Ltd. started to liquidate its business on
June 15, 2007.
Creditors who can file their proofs of debt by July 25, 2007,
will be included in the company's dividend distribution.
The company's liquidators are:
Brian Mayo-Smith
Shaun Neil Adams
c/o BDO Spicers
Level 8, Rifleman Tower
Albert Street
Auckland
New Zealand
Telephone:(09) 373 9053
Facsimile:(09) 303 2830
e-mail: shaun.adams@akl.bdospicers.com
RANDELL ENGINEERING: Subject to CIR's Wind-Up Petition
------------------------------------------------------
On May 25, 2007, the Commissioner of Inland Revenue filed a
petition to wind up the operations of Randell Engineering Ltd.
The petition will be heard before the High Court of Rotorua on
July 9, 2007, at 10:45 a.m.
The CIR's solicitor is:
Kay S. Morgan
Telephone:(07) 959 0373
New Zealand
STARZONE TRUST: Shareholders Agree on Voluntary Liquidation
-----------------------------------------------------------
The shareholders of Starzone Trust Company Ltd. met on June 13,
2007, and resolved to liquidate the company's business.
The company is receiving proofs of debt from its creditors until
July 16, 2007.
The company's liquidator is:
N. P. Fagerlund
c/o HFK Limited
PO Box 5071, Papanui
Christchurch
New Zealand
Telephone:(03) 352 9189
WILLIS ROOFING: Taps Rodewald and Shaw as Liquidators
-----------------------------------------------------
On June 14, 2007, Thomas Lee Rodewald and Kirsty Michelle Shaw
were tapped as the liquidators of Willis Roofing Ltd.
The Liquidators can be reached at:
Thomas Lee Rodewald
Kirsty Michelle Shaw
c/o Rodewald Hart Brown Limited
127 Durham Street
PO Box 13380, Tauranga
New Zealand
Telephone:(07) 571 6280
Facsimile:(07) 571 6281
Web site: http://www.rhb.co.nz
=====================
P H I L I P P I N E S
=====================
APC GROUP: Unit Seeks Permission to Open Mine in Surigao del Sur
----------------------------------------------------------------
APC Group Inc.'s subsidiary, APC Mining Corp., is seeking to
undertake nickel mining activities in the Municipality of
Carrascal in Surigao del Sur.
According to a disclosure with the Philippine Stock Exchange,
APC Mining has applied for an exploration permit with the
Department of Environment and Natural Resources for an area in
Carrascal covering around 271 hectares.
The area is said to have 1.53% nickel reserves, and is adjacent
to the nickel mines of CTP Construction and Mining Corp.
APC Group, Inc., was incorporated on October 15, 1993, with the
primary purpose of engaging in oil and gas exploration and
development in the Philippines. The company is 46.6% owned by
Belle Corporation. APC has investments in telecommunications, a
cement project, and manpower outsourcing businesses.
The Troubled Company Reporter - Asia Pacific reported that the
company had a capital deficiency as of September 30, 2006 and
December 31, 2005 amounting to PHP8.89 billion and
PHP8.70 billion, respectively.
Going Concern Doubt
After auditing the company's financial statements for the year
ended December 31, 2006, Marydith C. Miguel at Sycip Gorres
Velayo and Co. raised significant doubts on APC Group, Inc.'s
ability to continue as a going concern. The auditor cited the
company's recurring losses arising principally from the losses
of PhilCom and PhilCom Corporation, which affected the ability
of both companies to service their maturing obligations on a
timely basis. In addition, the company's consolidated current
liabilities exceeded its consolidated current assets as of
December 31, 2005, and 2004. Further, the restructuring of the
long-term debt of the two PhilCom entities are still under
negotiation with the creditors.
Net loss for the year ending Dec. 31, 2006, amounted to
PHP790.2 million compared with the PHP874.7-million net loss in
2005.
MAGNUM HOLDINGS: Trading Under New "NiHAO" Name Starts July 11
--------------------------------------------------------------
Magnum Holdings Inc.'s securities will be traded under its new
corporate name, "NiHAO Mineral Resources Inc." beginning
June 11, according to the Philippine Stock Exchange's broker for
circulars.
The company's trading symbol will also change from "MHI" to "Ni"
effective June 11.
Pasig City, Philippines-based Magnum Holdings, Inc., formerly
known as Summit Minerals, Inc., was originally organized to
engage in mining exploration. On February 24, 1994, the
Securities and Exchange Commission approved the change in the
company's primary purpose to that of a holding company and the
change in its corporate name to Magnum Holdings, Inc.
After auditing the company's annual report for 2006, Napoleon
Calderon at MCJ & Co. raised significant doubt on the company's
ability to continue as a going concern, citing the company's:
* losses of PHP920,708 and capital deficit of
PHP4.82 million for the year ended Dec. 31, 2006;
* losses of PHP788,695 and capital deficit of
PHP3.90 million for the year ended Dec. 31, 2005; and
* losses of PHP691,286 and capital deficit of
PHP3.11 million for the year ended Dec. 31, 2004.
MANILA ELECTRIC: First Philippine Holdings Acquires 22.86% Stake
----------------------------------------------------------------
The First Philippine Holdings Corp. has executed a memorandum of
agreement to purchase all shares in First Philippine Union
Fenosa that are held by Union Fenosa International SA for
US$250 million, according to a disclosure with the Philippine
Stock Exchange.
FPUF owns 230,084,791 shares or 22.86% of the Manila Electric
Co., which FPHC will acquire under the agreement. FPUF is
jointly owned by FPHC with 60% holdings and UFI with a 40%
stake.
According to the disclosure, the agreement is still subject to
certain conditions, and is expected to be completed next year,
the disclosure said.
Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
Metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers. Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.
* * *
A March 31, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the company posted a 79.7% decrease in its
2005 net losses to PHP411 million from PHP2.03 billion in 2004,
due to provisions for probable losses while awaiting a Supreme
Court final decision on a pending unbundling rate case, and the
adoption of new accounting standards.
In a TCR-AP report on April 24, 2006, it was noted that Manila
Electric cannot seek a loan to expand its facilities unless it
repays outstanding short-term debts amounting to around PHP4.7
billion.
PHIL BANK OF COMMS: Yap Takeover Breaches Agreement, PDIC Says
--------------------------------------------------------------
Don Emilio Yap's purchase of shares in the Philippine Bank of
Communications that are owned by the Chung and Nubla families is
illegal, Philippine Deposit Insurance Corp. executive vice
president Cristina Orbeta told the Manila Standard on Thursday
last week.
Ms. Orbeta further explained that the takeover is against the
terms of the 2004 bailout agreement entered into between the
government and the bank's major shareholders after the PDIC lent
PBCOM PHP7.6 billion in 2003 to solve their liquidity problems.
Under the agreement, the major owners of the Bank reserved four
seats for PDIC, and agreed that any sale before 2008 should be
done through a public bidding with at 67% of the bank.
However, the Chung and Nubla families, which own 58% of the
bank, agreed to sell their shares to Mr. Yap's group in December
last year without the Luy family and, on June 20, the Yap group
was elected into the bank's board.
The major shareholders were well aware of the requirements and
their obligations under the FAA in undertaking their actions,
Ms. Orbeta told the Manila Standard. She further said that the
election should have been made in accordance with the bank's
bylaws and the provisions of the FAA.
The bank's health is the PDIC's primary concern, she said, so it
consistently enforces the provisions of the FAA.
For its part, the bank said in a disclosure with the PSE that
the sale is a private transaction between stockholders and does
not concern the firm at all.
About PBCOM
Headquartered in Makati City, Philippines, Philippine Bank of
Communications -- http://www.pbcom.com.ph/-- provides different
products and services through its different divisions and it has
a broad range of credit facilities, which are either denominated
in local currency or foreign. Its Trust Division handles common
trust funds, investment advisory accounts and employee benefit
trusts. Aside from these, the bank also offers money market
placements and traditional products such as peso deposits.
Fitch Ratings gave Philippine Bank of Communications an
Individual Rating of 'D/E.'
SAN MIGUEL: In Talks to Sell National Foods to Kirin
----------------------------------------------------
San Miguel Corp. and its long-time partner, Kirin Brewery Co.
Ltd., are currently in discussions for Kirin's acquisition of
SMC's shareholdings in Australian firm National Foods Group,
according to a report by Reuters.
SMC plans to sell up to 49% of its Australian business to Kirin,
Reuters' source within SMC said. The move is part of the
company's funding for its plan to move into mining, power and
infrastructure businesses in the Philippines.
The company bought National Foods for AUD1.9 billion, roughly
US$1.6 billion, in 2005.
Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,
operates food, beverage and packaging businesses. The company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products. San Miguel markets its
products both in the domestic and overseas markets. The company
also manufactures glass, metal, plastic, paper and composites
packaging products.
A Troubled Company Reporter - Asia Pacific report on Oct. 12,
2006, stated that Moody's Investors Service affirmed its Ba1
corporate family rating.
Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB'
foreign currency corporate credit rating and a 'B' rating to its
proposed five-year benchmark non-callable, non-cumulative, non-
voting, perpetual preferred shares to be issued by San Miguel
Capital Funding.
* Reports 2.6% Average Inflation Rate for First Half of 2007
------------------------------------------------------------
The Philippines' average inflation rate for the first half of
2007 is at 2.6%, still well in line with the government's limit
of an average of 4% or 5% for the entire year, the Philippine
Daily Inquirer reports.
According to the report, the low inflation rate is mainly
attributable to a low rate of rise in consumer prices, which
stands at 2.3% in June as compared to May's 2.4%, due to
stability of food supply and a strong currency. Core inflation
dropped to 2.5% in June from 2.6% reported in May, the report
relates.
The overall prices for commodities have been tamed by the
strengthening of the Philippine peso, as importation of good
become cheaper. The low inflation could reduce pressure on the
Bangko Sentral ng Pilipinas to tighten its monetary policies,
the report says.
* * *
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.
* United Overseas Bank Upgrades 2007 Growth Forecast to 5.6%
------------------------------------------------------------
Singaporean bank United Overseas Bank Ltd. has upgraded its 4.9%
growth forecast for the Philippines to 5.6% because of domestic
consumption and improvement in exports, ABS-CBN News reports.
UOB also said that weak revenues will cause the government to
miss its PHP63 billion target budget deficit for this year, but
it will not have a large difference from the figure. Falling tax
collections would inflict fiscal ramifications, the bank said.
The deficit-to-gross domestic product ratio may trend higher
than the expected 1.1%, UOB added.
UOB said that it believes the country can sustain a 3.7% overall
price increase, despite a predicted accelerated inflation for
the second half of 2007. It also predicts the peso to weaken
towrds PHP47 per US$1 dollar by December 31, 2007, the report
relates.
* * *
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
=================
AMARANTH ADVISORS: Requires Creditors to File Claims by July 30
---------------------------------------------------------------
The creditors of Amaranth Advisors (Singapore) Pte Ltd, which is
in members' voluntary liquidation, are required to file their
proofs of debt by July 30, 2007, to be included in the company's
dividend distribution.
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:
Bob Yap Cheng Ghee
Yeap Lam Kheng
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
ENKAI TRADING: Court to Hear Wind-Up Petition on July 20
--------------------------------------------------------
The High Court of Singapore will hear a petition to wind up the
operations of Enkai Trading Pte Ltd on July 20, 2007, at 10:00
a.m.
The petition was filed by DBS Bank Ltd on June 25, 2007.
DBS Bank's solicitor is:
Messrs Rajah & Tann
No. 4 Battery Road #15-01
Bank of China Building
Singapore 049908
FORMICA CORP: Completes US$700 Mil. Asset Sale to Fletcher
----------------------------------------------------------
Fletcher Building Limited completed the acquisition of Formica
Corporation on July 2, 2007, according to a regulatory filing
with the New Zealand Stock Exchange.
As reported by the Troubled Company Reporter on May 24, 2007,
Fletcher acquired Formica for US$700 million plus deferred
payments of up to US$50 million from private equity investors
Cerberus Capital Management, L.P. and Oaktree Capital
Management, LLC.
The acquisition price reportedly was 7.2 times the enterprise
value to Earnings Before Interest, Tax, Depreciation and
Amortization in 2008. On a normalized basis before synergies,
Fletcher estimates Formica's EBITDA for the year to June 2008 to
be around US$94 million.
Fletcher Building and Formica believes the acquisition
represents growth opportunities for both firms.
"Our goal has been to establish an ownership structure that will
allow us to build upon our success and continue to invest in and
grow the business, and our people," Frank Riddick, President and
Chief Executive Officer of Formica, said. "Mr. Riddick believes
the combination of the two companies' Laminex businesses will
create the largest global manufacturer of decorative surfaces
and high-pressure laminates in the world."
Formica does not expect the new ownership to have a significant
impact on day-to-day operations, the acquired company said in a
media release. In the near term, Formica will be structured as
a business unit within the Fletcher Building Laminates & Panels
division. Frank Riddick will remain as President and Chief
Executive Officer of Formica and the management team will remain
with the company.
The sellers will retain Formica's South America operations and
certain real estate in California.
About Fletcher Building
Headquartered in Penrose, New Zealand, Fletcher Building Limited
-- http://www.fletcherbuilding.com/-- is the holding company of
the Fletcher Building group. The operating segments of the
company include the Building Products division; the
Infrastructure division, and the Laminates & Panels division.
The Building Products division comprises six business streams,
including insulation, metal roof tiles, roll-forming and
coatings, long steel, plasterboard and a single businesses
stream comprising four business units. The Infrastructure
division is an integrated manufacturer of cement, aggregates,
ready mix concrete and concrete products. It is also a general
contractor and residential house builder in New Zealand and the
South Pacific. The Laminates & Panels division manufactures and
sells high pressure and low-pressure decorative surface
laminates, raw medium density fiberboard, particle board and
kitchen components. It distributes other products, such as
hardware and timber in some regions.
About Formica
Cincinnati, Ohio-based Formica Corp. -- http://www.formica.com/
-- designs, manufactures and distributes a full range of
surfacing products for commercial and residential applications,
including Formica(R) Brand Laminate, Formica(R) Solid Surfacing,
Formica Granite(R), Formica(R) Stone Natural Quartz Surfacing,
Formica(R) Veneer Premium Wood Surfacing and Formica(R)
DecoMetal. The company has offices in Singapore, Mexico, Spain,
Sweden, United Kingdom, Finland, France, Italy, Russia, China,
Hong Kong, Taiwan, and Thailand.
* * *
As reported in the Troubled Company Reporter on May 25, 2007,
Moody's Investors Service placed Formica Corporation on review
for possible downgrade. These ratings have been placed on
review: Corporate family rating, rated B2; Probability of
default rating, rated B2; US$210 million gtd. sr. sec. term
loan, rated B1; and US$60 million gtd. sr. sec. revolving credit
facility, rated B1.
HEXION SPECIALTY: To Acquire Huntsman for US$10.4 Billion
-------------------------------------------------------
Hexion Specialty Chemicals Inc. made a definitive proposal to
the transaction committee of the board of directors of Huntsman
Corporation to acquire Huntsman for US$10.4 billion, including
refinanced debt, or US$27.25 per share, in cash.
The offer represents a premium of about 8% over Basell's
previously announced agreement to acquire Huntsman for US$25.25
per share and includes an 8% per annum increase, net of Huntsman
dividends, in the event that the transaction requires more than
nine months to complete.
Hexion's proposal is subject to a customary merger agreement,
which has been submitted to Huntsman's transaction committee
together with Hexion's offer. The transaction would be subject
to regulatory approvals and the affirmative vote of Huntsman
shareholders. The proposal is fully financed pursuant to
commitments from Credit Suisse and Deutsche Bank.
Hexion's proposal is currently under review by the Huntsman
Transaction Committee.
About Huntsman Corp.
Huntsman Corporation (NYSE: HUN) -- http://www.huntsman.com-
Huntsman Corporation engages in the manufacture and marketing of
differentiated, inorganic, and commodity chemical products.
About Hexion Specialty
Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries. Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.
The company has locations in China, Australia, Netherlands, and
Brazil. It is an Apollo Management L.P. portfolio company.
Hexion had 2006 sales of US$5.2 billion and employs more than
7,000 associates.
HEXION SPECIALTY: Huntsman Buy Prompts Moody's to Review Ratings
----------------------------------------------------------------
Moody's Investors Service placed the ratings of Hexion Specialty
Chemicals, Inc. under review for possible downgrade following
the company's announcement that it has made a definitive offer
to acquire Huntsman Corporation for US$10.4 billion (or US$27.25
per share plus net debt).
The Hexion Proposal is subject to termination of Huntsman's
previously announced merger agreement with Basell AF. Huntsman
stated that its Board and the Transaction Committee concluded
that the Hexion offer "could reasonably be expected to lead to a
superior proposal". Hexion stated that it committed financing
for the transaction but did not disclose the specifics of its
financing package. Huntsman's ratings were placed under review
for possible downgrade on June 26, 2007. Hexion's speculative
grade liquidity rating was affirmed at SGL-2, but could change
depending on the outcome of this transaction and the company's
financing strategy.
Ratings On Review for Possible Downgrade:
Issuer: Hexion Specialty Chemicals Inc.
-- Corporate Family Rating, currently B2
-- Probability of Default Rating, currently B2
-- Senior Secured Bank Credit Facility, currently Ba3, LGD2
-- Senior Secured Regular Bond/Debenture, currently B3, LGD5
-- Senior Unsecured Regular Bond/Debenture, currently Caa1,
LGD6
-- Senior Unsecured Revenue Bonds, currently B3, LGD5
Ratings Affirmed:
Issuer: Hexion Specialty Chemicals Inc.
-- Speculative Grade Liquidity Rating, SGL-2
Moody's review is contingent on Hexion's ability to negotiate a
definitive contract for the purchase of Huntsman Corporation and
would seek to determine
the specifics of the proposed financing for the transaction,
i. potential synergies form a combination of these
unrelated businesses, and
ii. the financial and operational strategies for the
combined company.
Moody's noted that Hexion's offer would be a merger and may not
trigger the change of control language in the rated unsecured
and subordinated notes of Huntsman International LLC, the merged
company could potentially assume Huntsman outstanding debt.
Hexion Specialty Chemicals, Inc., headquartered in Columbus,
Ohio is a leading producer of commodities such as formaldehyde,
bisphenol A and epichlorhydrin, as well as formaldehyde-based
thermoset resins, epoxy resins, and versatic acid and its
derivatives. The company is also a supplier of specialty resins
for inks and specialty coatings sold to a very diverse customer
base. The company reported sales of US$5.
The company has locations in China, Australia, Netherlands, and
Brazil.
PETROLEO BRASILEIRO: Workers' Union to Consider Proposal
--------------------------------------------------------
The Oil Workers' Federation met yesterday to discuss for the
second time a salary and promotion proposal from Petroleo
Brasileiro SA, Jeb Blount at Bloomberg News reports.
The proposal was drafted to avert a five-day strike.
Petroleo Brasileiro's proposal includes:
-- automatic salary increases every 18 months;
-- a merit-based promotion system;
-- a 3% raise;
-- compensation for workers passed over for promotions; and
-- salary increases of up to 34% for workers hired after
1997.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-
- was founded in 1953. The company explores, produces, refines,
transports, markets, distributes oil and natural gas and power
to various wholesale customers and retail distributors in
Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's. Fitch Ratings assigned these ratings on
Petroleo Brasileiro's senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
SEA CONTAINERS: Wants Line of Credit to Non-Debtor Unit Modified
----------------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask permission
from the U.S. Bankruptcy Court for the District of Delaware to
modify and increase the secured, intercompany line of credit
being provided to Sea Containers Treasury, Ltd., a non-debtor
subsidiary of Sea Containers, Ltd.
The Court initially approved a secured intercompany loan of up
to US$6,000,000 to SC Treasury to be drawn on an as-needed basis
so that SC Treasury, in turn, could make loans to non-debtor
subsidiaries. The Court's order specified the non-debtor
subsidiaries to which SC Treasury could make future loans and
the maximum amounts of the loans. SC Treasury was also
permitted to set aside a US$1,000,000 contingency reserve to
make additional loans on an as-needed basis to other non-debtor
subsidiaries.
By June 30, 2007, SC Treasury will have made these aggregate
loans since the entry of the Original Funding Order:
Max. Amount that Funding Made
Non-Debtor Unit May be Loaned By June 30
--------------- ---------------- ------------
Sea Containers US$1,000,000 US$700,000
Opera Ltd.
Finnjet Bermuda Ltd. US$2,500,000 US$2,500,000
Sea Containers US$900,000 US$0
Finance Ireland
Units that run US$3,200,000 US$2,400,000
Helsinki-Tallinn
Business
SC Treasury has also set aside roughly US$800,000 in a
contingency reserve.
As of June 30, 2007, SC Treasury will have made roughly
US$6,400,000 in loans under the Original Funding Order, Sean T.
Greecher, Esq., at Young Conaway Stargatt & Taylor LLP, in
Wilmington, Delaware, tells Judge Carey.
The Debtors estimate that as of June 30 Total SC Treasury
Funding Availability will have been reduced to US$2,400,000.
The Debtors also expect Opera to repay SC Treasury US$800,000
from the proceeds of the sale of the Opera vessel.
However, the Debtors project an aggregate non-debtor subsidiary
funding need of US$4,400,000 through September 2007, consisting
of:
-- US$1,900,000 for Finnjet;
-- US$1,000,000 for SCFI; and
-- US$1,500,000 for the Contingency Reserve.
To bridge that gap, the Debtors intend to add US$1,200,000 in
funding for SC Treasury. The Debtors also want to reallocate
the remaining Total SC Treasury Funding Availability to Finnjet,
SCFI and the Contingency Reserve.
The Debtors have not finalized a sale of Finnjet's fast cruise
vessel currently berthed in the Bahamas. Finnjet requires
additional funding for maintenance and berthing costs. The
US$1,900,000 is anticipated to carry Finnjet through September
2007, Mr. Greecher relates. At that time, if the Debtors have
not sold the vessel, it likely will be auctioned, Mr. Greecher
says.
The Debtors require an additional US$1,300,000 more than the
originally requested US$1,000,000 for the Contingency Reserve
because of additional projected miscellaneous cash needs of the
non-debtor subsidiaries. The expenses include:
* US$150,000 for a mothballed container factory and tank
cleaning operation in Santos, Brazil, owned by Paulista
Containers Maritismos Ltda. and Santos Tank Containers
Ltda.; and
* US$150,000 for the general operating and advisor expenses
for Hoverspeed Italia Srl.
SC Treasury has not yet drawn the original US$900,000 allotted
for SCFI. SCFI originally was established as a special purpose
subsidiary of SCL and incorporated in Ireland to gain certain
tax advantages. SCFI was capitalized by the contribution of a
sizable loan owed to SCL by a subsidiary, Ferry & Port Holdings.
SCFI has an outstanding tax liability to Irish authorities. The
tax deficit, if unpaid, could force SCFI's directors to initiate
an Irish insolvency proceeding that, in turn, could cause other
insolvencies across SCL's subsidiaries. By paying the Irish tax
liability and other third-party creditors and undertaking a
solvent liquidation to wind up SCFI's affairs, the Debtors can
eliminate this threat.
The Debtors originally anticipated that SCFI would need
US$900,000in additional financing to pay SCFI's creditors and
wind up its affairs. The Debtors currently believe the
liquidation and wind-up will require an additional US$100,000.
The Irish directors of SCFI have declined to accept funding from
SC Treasury in the form of a loan, based on local legal advice.
Accordingly, SCL has agreed with SCFI's directors to contribute
the US$1,000,000 as part of an equity transaction. SCFI would
issue US$1,000,000 in "B Shares" to either SCL or SC Treasury.
SCFI would cancel its "A Shares" and the FPH Loan would be
assigned back to SCL. SCL and SC Treasury would require written
assurances that SCFI will not incur any further third-party debt
that would dilute SC Treasury's or SCL's recovery in SCFI's
liquidation.
Additionally, the Debtors also ask the Court to bless the SCFI
equity transaction.
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.
The Court extended the Debtors' exclusive period to file a Plan
of Reorganization to Sept. 28, 2007. (Sea Containers Bankruptcy
News, Issue No. 21; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
===============
T H A I L A N D
===============
TMB BANK: To Revamp Management After Completing Recapitalization
----------------------------------------------------------------
TMB Bank PCL will implement changes in its management after it
completes its recapitalization procedures, the bank's chairman
Somchainuk Engtrakul told the Bangkok Post.
Mr. Somchainuk also said that the capital increase will be
delayed by a month until August, as it is finalizing
negotiations with the Finance Ministry and Singapore-based DBS
Bank to increase its capital by up to THB35 billion through
issuance of new rights. However, he said that the bank expects
the new capital by September or October this year.
DBS owns 16% of TMB, while the Finance Ministry holds a 31%
stake in the bank, The Post says.
Earlier reports had indicated that DBS Bank will not participate
in the recapitalisation unless the bank's management was
revamped, which includes the resignation or removal of TMB's
president Subhak Siwaraksa. The report revealed that the bank's
Chulakorn Singhakowin is the popular choice for replacement of
Mr. Subhak as president.
TMB urgently needs to increase its capital, for the sake of
compliance with tougher regulatory standards. The bank had
posted a THB12.29 billion annual loss for 2006 because of higher
loan-loss provisioning requirements. TMB also said that it will
not pay coupon payments to the holders of its US$200 million
hybrid capital issue.
Finance Minister Chalongphob Sussangkarn did not comment on the
amount the government would inject into TMB after meeting with
Mr. Somchainuk on Thursday. However, he told the Bangkok Post
that he is confident that "TMB will be able to operate well and
generate profits in the future" after the recapitalization.
About TMB Bank
Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders
financial services to all groups of customers. TMB Bank had
total assets of about THB717 billion as at December 31, 2005.
Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.
On Jan. 29, 2007, Fitch Ratings downgraded TMB Bank's foreign
currency hybrid Tier 1 rating to B from B+ and revised the
Outlook on TMB's Long-term foreign currency Issuer Default
rating to Stable from Positive.
On May 4, 2007, Moody's retained the following ratings for TMB:
* BSFR is at D-.
* Foreign currency deposit ratings remains at Baa2/P-2.
Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.
The TCR-AP reported on June 13, 2007 that Standard & Poor's
Ratings Services has raised the outlook on TMB Bank PCL's debt
rating from negative to stable. S&P also affirmed its BBB-/A-3
rating on TMB Bank.
TOTAL ACCESS: Discuss Dispute or Face Sanctions, NTC Tells TOT
--------------------------------------------------------------
The National Telecommunications Commission will impose sanctions
on the Telephone Organization of Thailand PLC if it will not
start negotiating with Total Access Communications Corp. on
their dispute on access charges, various reports say.
The NTC had imposed a deadline of July 5 for TOT to enter into
discussions with DTAC for an interconnection deal, but no
negotiations have been made, the Bangkok Post reports.
According to The Nation, NTC Secretary General Suranan
Wongvithayakamjorn said that an NTC committee will first decide
on punitive sanctions for TOT which will then be presented to
the NTC for consideration.
Mr. Suranan also told The Nation that they will consider DTAC's
request for the NTC to determine interconnection rates between
TOT and DTAC.
DTAC had earlier requested emergency protection after TOT
threatened not to allow 3 million new DTAC subscribers to access
its network if DTAC will not pay access charges that it owed to
TOT.
True Move PLC also made a similar request.
Both companies hold concessions from CAT Telecom PLC along with
a third CAT concessionare, Digital Phone Co., and uses TOT's
facilities to connect their subscribers to different networks.
Both ceased paying access charges after adopting NTC's
interconnection regulations, and said that they will pay
interconnection charges instead in compliance with the NTC's new
rules.
Advanced Info Service, a TOT concessionaire had entered into
interconnection agreements with DTAC and True Move last year.
TOT refused to implement the NTC's interconnection system, due
to fears of lower revenues from the system, which cost lower
than access charges after earning THB14 billion revenues in
access charges last year.
TOT had requested CAT Telecom to settle the matter by paying the
access charges owed by its concessionaires in accordance with
their concession agreements, under which CAT will seek
compensation from its concessionaires for the access charges it
paid to TOT. Reports indicate that CAT Telecom agreed to pay
THB2.4 billion as first installment of the THB6 billion owned by
True Move and DTAC.
According to a report by the Troubled Company Reporter-Asia
Pacific on July 5, CAT Telecom had turned to the NTC for final
judgment on the matter.
About DTAC
Total Access Communications, DTAC -- http://www.dtac.co.th/--
is the second-largest cellular operator in Thailand with an
approximately 30% market share and strong brand recognition.
With Telenor's recent purchase of a 39.9% interest in United
Communication Industry Plc and its subsequent tender offers for
UCOM and DTAC shares, Telenor lifted its aggregate economic
interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest
acquisition in Asia and it ranks second in terms of EBITDA
contribution outside Norway.
* * *
The Troubled Company Reporter - Asia Pacific reported on Apr.
03, 2006 that Moody's Investors Service has upgraded its
corporate family and senior unsecured rating for Total Access
Communications Public Co Ltd to Ba1 from Ba2 with a positive
outlook. This concludes the review for possible upgrade
commenced on October 21, 2005.
Standard and Poor's gave the company a BB+ Long-term local and
foreign issuer credit ratings.
Fitch Ratings on July 18, 2006, has affirmed DTAC's Long-term
foreign currency Issuer Default Rating at BB+ and National Long-
term rating at A(tha). The company's National Short-term rating
was also affirmed at F1(tha). The Outlook on the ratings is
Stable.
*********
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
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Information contained herein is obtained from sources believed
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