/raid1/www/Hosts/bankrupt/TCRAP_Public/071022.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, October 22, 2007, Vol. 10, No. 209
Headlines
A U S T R A L I A
A.P. GLOVER: Members and Creditors to Meet on October 31
COMMSCOPE INC: S&P Affirms BB- Corporate Credit Rating
DEMAKS SHEETMETAL: Liquidators to Give Wind-Up Report on Oct. 31
DEPENDABLE AGRICULTURAL: Sets Final Meeting for October 29
FENTINA PTY: Members & Creditors Meeting Set for Oct. 31
HEYWOOD CONTRACTING: Final Meeting Slated for October 31
KENDLE INT'L: Names Mary Briggs Vice President for Global Sales
KERATON PTY: Members & Creditors to Hold Meeting on Oct. 31
PANACHE IMPORTS: Liquidators to Give Wind-Up Report on Oct. 31
PERORAD DEVELOPMENTS: Members and Creditors to Meet on Oct. 31
PETER BRISTOW: Will Declare First Dividend on November 13
PORTA-FLUSH: Members and Creditors to Meet on Oct. 31
SCO GROUP: Files Schedules of Assets and Liabilities
SCO Group: Terminates 16 Employees; Wants Names Filed Under Seal
C H I N A & H O N G K O N G
AMERSHAM HEALTH: Shareholders Resolve to Liquidate Business
ANDREW CORP: Debt Refinancing Prompts S&P to Affirm Ratings
BRI FINANCE: Members' Meeting Set for November 15
CHAODA MODERN: Steep Vegetable Price Boosts Profit by 28%
CHARTER CITY: Requires Creditors to File Claims by November 12
FIAT SPA: Finance Unit to Repay EUR123.4 Million in Bonds
FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz
GLOBAL POWER: Exclusive Plan-Filing Period Extended to Oct. 24
GLOBAL POWER: Wants Court to Approve Plan Support Agreement
MYWAY LIMITED: Subject to Chan Kai's Wind-Up Petition
OME PRINTING: Wind-Up Petition Hearing Set for Dec. 5
ORIENTAL CRYSTAL: Court to Hear Wind-Up Petition on Dec. 5
RELIABLE WATCH: Huen Ho Yin Quits as Liquidator
SINO LUCK: Chan Kong Ho Quits as Liquidator
STREPHON COMPANY: Members' Final General Meeting Set for Nov. 13
TCL MULTIMEDIA: Sells Land in Huizhou for CNY162 Million
UNIVERSAL TREND: Members to Hold Final Meeting on November 12
I N D I A
AGILENT TECHNOLOGIES: Inks Marketing Agreement with BioTrove
ICICI BANK: Reports 33% Year-on-Year Grown in Profit After Tax
ICICI BANK: Promotes C. Kochhar to Joint Managing Director & CFO
QUEBECOR MEDIA: S&P Rates Proposed US$450 Mil. Senior Notes at B
RYERSON INC: S&P Holds 'B+' Rating and Removes Negative Watch
RAIN CALCINING: Fitch Gives 'B' Long-Term Foreign Currency IDR
RAIN CALCINING: Gets Moody's B2 Corporate Family Rating
I N D O N E S I A
ALCATEL-LUCENT: To Broaden Unified Communication Offer w/ Sagem
BERLIAN LAJU: Plans to Raise US$350 Million for Debt Repayment
COMVERSE TECHNOLOGY: Updates Organizational Appointments
FREEPORT-MCMORAN: Moody's Revises Outlook to Positive
PERUSAHAAN LISTRIK: Moody's Ups Corporate Family Rating to Ba3
MGTI FINANCE: Moody's Upgrades Sr. Secured Bond Rating to Ba2
J A P A N
ALL NIPPON: To Take JPY66-Billion Charge Due to Depreciation
ALL NIPPON: Mulls Joint Issue of Credit Card with Mizuho
IHI CORP: To End Cement Plant Construction Business Abroad
JAPAN AIRLINES: Three Firms Eye Credit Card Unit
K O R E A
ARROW ELECTRONICS: Earns US$99.2 Mil. in Quarter Ended June 30
DURA AUTOMOTIVE: Wants John Knappenberger Separation Pact Okayed
M A L A Y S I A
MEGAN MEDIA: Names Christopher Tan Chie Kiong as CEO
MYCOM BERHAD: Acquires Two Dormant Companies
SOLUTIA INC: Treatment of Claims Under Revised Plan
N E W Z E A L A N D
FML NO 1: Commences Liquidation Proceedings
ICARUS TOTAL: Court to Hear Wind-Up Petition on Oct. 29
KHYBER AUTOS: Fixes November 30 as Last Day to File Claims
KITOP NEW ZEALAND: Appoints Mason and Meltzer as Liquidators
L C PROPERTY: Court Sets Wind-Up Petition Hearing for Oct. 29
LYNX HORTICULTURAL: Fixes Oct. 30 as Last Day to File Claims
MIGA ENTERPRISES: Appoints Liquidator
NERDSVILLE LTD: Taps John Francis Managh as Liquidator
NORTHSIDE BOXING: Creditors' Proofs of Debt Due on Oct. 30
P H I L I P P I N E S
ATOK-BIG WEDGE: Board Elects Lawyer as Asst. Corporate Secretary
BANGKO SENTRAL: Gov't Mulls Ways to Settle PHP40-Billion Debt
BANGKO SENTRAL: Singaporean Bank Sees Another 25-Basis Point Cut
BAYAN TELECOMMS: Expects Landline Subscriber Base to Grow 10-15%
CHIQUITA BRANDS: Fresh Express Acquires Verdelli Farms
FEDDERS CORP: Committee Wants To Hire Brown Rudnick as Counsel
FEDDERS CORP: Panel Taps Greenberg Traurig as Delaware Counsel
FEDDERS CORP: Panel Wants Lowenstein Sandler as Special Counsel
NIHAO MINERAL: Inks Botolan Mine Memoramdum Deal with QNI Phils.
QUEZON POWER: Moody's Affirms 'B3' Rating for Series 1997 Bonds
* Gov't Picks Assets Worth PHP80-Bil. For Privatization in 2008
S I N G A P O R E
APPLIED AIR-CONDITIONING: Pays First and Final Dividend
LEVI STRAUSS: S&P Rates US$750-Million Credit Facility at BB
OMNI TECH: Members' Final Meeting Set for November 15
RED HAT: S&P Affirms B+ Corp. Credit Rating w/ Positive Outlook
UNITED TEST: Moody's Affirms B1 Corporate Family Rating
S R I L A N K A
* Sri Lanka Enters Int'l Debt Markets with Five-Year Bond
T H A I L A N D
BLOCKBUSTER: Names E. Peterson as EVP, Gen. Counsel & Secretary
TMB BANK: Board Approves ING's THB35-Billion Recapitalization
TMB BANK: To Offer 5.586 Billion Shares to Ministry of Finance
TMB BANK: Turns Around with THB2.53-Billion Net Loss for 3Q 2007
- - - - - - - -
=================
A U S T R A L I A
=================
A.P. GLOVER: Members and Creditors to Meet on October 31
--------------------------------------------------------
The members and creditors of A.P. Glover Pty. Ltd. will meet on
October 31, 2007, at 9:15 a.m., to hear the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidators are:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About A.P. Glover
A.P. Glover Pty Ltd is in the business of masonry and other
stonework. The company is located at Somerville, in Victoria,
Australia.
COMMSCOPE INC: S&P Affirms BB- Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its ratings on
CommScope Inc. and Andrew Corp. and removed them from
CreditWatch, where they were placed on June 27, 2007, with
negative implications. S&P also affirmed the 'BB-' corporate
credit and 'B' subordinated debt ratings for both companies.
The ratings on Andrew will be withdrawn following its
acquisition and debt refinancing. The outlook is stable.
At the same time, S&P assigned its bank loan and recovery
ratings to CommScope's US$2.5 billion first-lien credit
facilities. The US$2.1 billion term loan and US$400 million
revolving credit facility are rated 'BB-', with a recovery
rating of '3', indicating the expectation for meaningful (50%-
70%) recovery in the event of a payment default. Proceeds from
the term loan will be used to partially fund its US$2.6 billion
acquisition of Andrew.
"The ratings on CommScope after the acquisition reflect an
increase in leverage, a short operating track record at current
profitability levels, and integration challenges," said S&P's
credit analyst Lucy Patricola. "These are offset partially by
solid market positions with major telecommunications providers
and good cash flow."
CommScope's market position in coaxial cable and environmentally
secure cabinets used by wireline carriers complements Andrew's
key business that provides antennae used in wireless base
stations.
CommScope's financing of the acquisition increases leverage
substantially from recent levels of about 1.5. Based on the
following assumptions, pro forma debt to EBITDA is about 4.0,
within expectations for the rating.
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV)
-- http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research
and development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope has facilities in Brazil, Australia, China and
Ireland.
DEMAKS SHEETMETAL: Liquidators to Give Wind-Up Report on Oct. 31
----------------------------------------------------------------
Demaks Sheetmetal Pty. Ltd. will hold a meeting for its members
and creditors on October 31, 2007, at 11.30 a.m.
At the meeting, V. R. Dye and N. Giasoumi, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
The Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Demaks Sheetmetal
Demaks Sheetmetal Pty Ltd is in the business of sheet metal
work. The company is located at Campbellfield, in Victoria,
Australia.
DEPENDABLE AGRICULTURAL: Sets Final Meeting for October 29
----------------------------------------------------------
A final meeting will be held for the members and creditors of
Dependable Agricultural & Livestock Services Pty Ltd on Oct. 29,
2007, at 11:00 a.m.
At the meeting, Geoff Ridgeway, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
The Liquidator can be reached at:
Geoff Ridgeway
Jenkins Peake & Co
Chartered Accountants
PO Box 1570
Geelong, Victoria 3220
Australia
Telephone:(03) 5223 1000
Facsimile:(03) 5221 4938
About Dependable Agricultural
Dependable Agricultural & Livestock Services Pty Ltd is involved
in general farms, primarily livestock and animal specialties.
The company is located at Geelong, in Victoria, Australia.
FENTINA PTY: Members & Creditors Meeting Set for Oct. 31
--------------------------------------------------------
A meeting will be held for the members and creditors of Fentina
Pty. Ltd. on October 31, 2007, at 11:45 a.m.
At the meeting, the members and creditors will hear the
liquidators' report on the company's wind-up proceedings and
property disposal.
The Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Fentina Pty
Fentina Pty Ltd, which is also trading as Brownway Joinery, is
involved with carpentry work. The company is located at
Wendouree, in Victoria, Australia.
HEYWOOD CONTRACTING: Final Meeting Slated for October 31
--------------------------------------------------------
A final meeting will be held for the members and creditors of
Heywood Contracting Pty. Ltd. on October 31, 2007, at 12:30 p.m.
At the meeting, V. R. Dye and N. Giasoumi, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
The Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Heywood Contracting
Located at Upwey, in Victoria, Australia, Heywood Contracting
Pty Ltd is an investor relation company.
KENDLE INT'L: Names Mary Briggs Vice President for Global Sales
---------------------------------------------------------------
Kendle has appointed Mary Briggs, as Vice President for Global
Sales. Ms. Briggs will lead the ongoing sales growth strategy
as well as develop the global sales organization as Kendle
continues to expand its worldwide presence. She will report
directly to Vice President and Chief Marketing Officer Simon
Higginbotham and will work closely with senior executives from
across the company's core service brands -- Clinical
Development, Regulatory Affairs, Biometrics and Late Phase -- to
drive sales growth in each brand.
"I am delighted to welcome Mary to this new and crucial role as
Kendle continues to grow to meet the needs of both customers and
shareholders," said Mr. Higginbotham. "She has established a
track record of outstanding sales leadership in the drug
development industry, including significant roles within large
global CROs and top biopharmaceutical companies. Her
considerable reputation throughout the industry coupled with
extensive experience make her uniquely qualified to maintain and
grow Kendle's record sales environment, which delivered results
at triple the reported sector growth rate for Phase I- IV
clinical development services in 2006."
Ms. Briggs brings more than two decades of sales, management and
consulting experience in the biopharmaceutical industry to the
position. She is an accomplished speaker, having served on
numerous speakers' bureaus, including ongoing speaking
engagements for the Drug Information Association, National
Pharmacists Association and several leading biopharmaceutical
companies. Furthermore, Ms. Briggs has trained hundreds of
investigators on building their clinical trial business as well
as nontraditional approaches to patient recruitment.
Since joining Kendle in 2005 as Senior Director, Strategic
Accounts, Ms. Briggs has developed sales growth strategies that
have lead to outstanding relationships with customers and
propelled her team to best-in-class sales achievement.
About Kendle
Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL)
-- http://www.kendle.com/-- is a global clinical research
organization and provides Phase II-IV clinical development
services worldwide. The company's global clinical development
business is focused on five regions -- North America, Europe,
Asia/Pacific (including Australia), Africa and Latin America
including Brazil.
* * *
As of July 3, 2007, the company carried Moody's B1 long-term
corporate family rating, B1 bank loan debt, and B2 probability
of default rating. Moody's said the outlook is stable.
In addition, the company also carried Standard & Poor's B+ long-
term foreign and local issuer credits. S&P said the outlook is
stable.
KERATON PTY: Members & Creditors to Hold Meeting on Oct. 31
-----------------------------------------------------------
The members and creditors of Keraton Pty. Ltd. will hold their
final meeting on October 31, 2007, at 12:45 p.m., to receive the
liquidators' report on the company's wind-up proceedings and
property disposal.
The company's liquidators are:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Keraton Pty
Keraton Pty Ltd operates nonclassifiable establishments. The
company is located at Richmond, in Victoria, Australia.
PANACHE IMPORTS: Liquidators to Give Wind-Up Report on Oct. 31
--------------------------------------------------------------
Panache Imports Pty. Ltd. will hold a meeting for its members
and creditors on October 31, 2007, at 2:45 p.m.
At the meeting, V. R. Dye and N. Giasoumi, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
The Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Panache Imports
Panache Imports Pty Ltd, which is also trading as Salon
Supplies, is a distributor of drugs, drug proprietaries and
druggists' sundries. The company is located at Abbotsford, in
Victoria, Australia.
PERORAD DEVELOPMENTS: Members and Creditors to Meet on Oct. 31
--------------------------------------------------------------
The members and creditors of Perorad Developments Pty. Ltd will
hold a final meeting on October 31, 2007, to hear the
liquidators' report on the company's wind-up proceedings and
property disposal.
The company's liquidators are:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Perorad Developments
Perorad Developments Pty Ltd is an operative builder. The
comapny is located at Carrum, in Victoria, Australia.
PETER BRISTOW: Will Declare First Dividend on November 13
---------------------------------------------------------
Peter Bristow & Associates Pty Ltd will declare its first
dividend on November 13, 2007.
Creditors who were not able to file their proofs of debt by the
October 12 due date will be excluded from the company's dividend
distribution.
The company's deed administrator is:
Norman K. Jones
c/o Courtney Jones & Associates
Insolvency & Forensic Accountants
Level 1, Suite 5
443 Little Collins Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9602 2133
About Peter Bristow
Peter Bristow & Associates Pty Ltd, which is also trading as
Bristow Laser Systems, is a distributor of electrical
machineries, equipments and supplies. The company is located at
Campbellfield, in Victoria, Australia.
PORTA-FLUSH: Members and Creditors to Meet on Oct. 31
-----------------------------------------------------
Porta-Flush Systems Pty Ltd will hold a final meeting for its
members and creditors on October 31, 2007, at 3:15 p.m.
At the meeting, V. R. Dye and N. Giasoumi, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
The Liquidators can be reached at:
V. R. Dye
N. Giasoumi
Dye & Co Pty Ltd
Chartered Accountants
165 Camberwell Road
Hawthorn East, Victoria 3123
Australia
About Porta-Flush
Porta-Flush Systems Pty Ltd provides business services. The
company is located at Altona North, in Victoria, Australia.
SCO GROUP: Files Schedules of Assets and Liabilities
----------------------------------------------------
The SCO Group Inc. submitted to the U.S. Bankruptcy Court for
the District of Delaware its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ---------- -----------
A. Real Property
B. Personal Property US$4,772,875
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims
E. Creditors Holding
Unsecured Priority
Claims
F. Creditors Holding
Unsecured Non-priority
Claims 2,141,258
---------- -----------
TOTAL US$4,772,875 US$2,141,258
SCO Operations' Schedules
In a separate filing, SCO Operations Inc., a debtor-affiliate,
also filed its schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ---------- -----------
A. Real Property
B. Personal Property US$9,549,519
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims
E. Creditors Holding
Unsecured Priority
Claims US$484,514
F. Creditors Holding
Unsecured Non-priority
Claims 2,533,975
---------- -----------
TOTAL US$9,549,519 US$3,018,489
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services. The company has office locations in
Australia, Austria, Argentina, Brazil, China, Japan, Poland,
Russia, the United Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Paul Steven Singerman, Esq., and Arthur
Spector, Esq., at Berger Singerman P.A., represent the Debtors.
James O'Neill Esq., and Laura Davis Jones, Esq., at Pachulski
Stang Ziehl & Jones LLP, is the Debtors' local counsel. Epiq
Bankruptcy Solutions, LLC, acts as the Debtors' claims and
noticing agent. An Official Committee of Unsecured Creditors
has yet to be appointed in these cases by the Office of the
United States Trustee. The Debtors' exclusive period to file a
chapter 11 plan expires on March 12, 2008.
SCO Group: Terminates 16 Employees; Wants Names Filed Under Seal
----------------------------------------------------------------
In a filing with the U.S. Bankruptcy Court for the District of
Delaware, SCO Group Inc. and SCO Operations Inc. disclosed that
they were terminating 16 of their 123 employees.
The Debtors, in this regard, ask the Court for authority to
continue their prepetition severance policy and payment of
severance and accrued benefits to the terminated employees. The
Debtors say that to filing bankruptcy, they had a severance
policy generally applicable to all full-time employees
terminated without cause.
At the same time, the Debtors also ask the Court that copies of
their severance policy as well as the names and specific
severance amounts to be paid to terminated employees be filed
under seal. The Debtors contend that the information contained
in these documents consitute confidential information that is
not in the public realm.
The Debtors fear that their current employees as well as the
identified terminated employees may experience harrasment from
other companies in the Debtors' industry. The Debtors further
argue that "poaching" of the remaining employees by competitors
may occur if the information is made public.
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services. The company has office locations in
Australia, Austria, Argentina, Brazil, China, Japan, Poland,
Russia, the United Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Paul Steven Singerman, Esq., and Arthur
Spector, Esq., at Berger Singerman P.A., represent the Debtors.
James O'Neill Esq., and Laura Davis Jones, Esq., at Pachulski
Stang Ziehl & Jones LLP, is the Debtors' local counsel. Epiq
Bankruptcy Solutions, LLC, acts as the Debtors' claims and
noticing agent. An Official Committee of Unsecured Creditors
has yet to be appointed in these cases by the Office of the
United States Trustee. The Debtors' exclusive period to file a
chapter 11 plan expires on March 12, 2008.
================================
C H I N A & H O N G K O N G
================================
AMERSHAM HEALTH: Shareholders Resolve to Liquidate Business
-----------------------------------------------------------
On October 5, 2007, the shareholders of Amersham Health Limited
passed a resolution to liquidate the company's business.
Creditors who can file their proofs of debt by November 2, 2007,
will be included in the company's dividend distribution.
The company's liquidators are:
Chan Mi Har
Yeung Yuen, Betty
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
ANDREW CORP: Debt Refinancing Prompts S&P to Affirm Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its ratings on
CommScope Inc. and Andrew Corp. and removed them from
CreditWatch, where they were placed on June 27, 2007, with
negative implications. S&P also affirmed the 'BB-' corporate
credit and 'B' subordinated debt ratings for both companies.
The ratings on Andrew will be withdrawn following its
acquisition and debt refinancing. The outlook is stable.
At the same time, S&P assigned its bank loan and recovery
ratings to CommScope's US$2.5 billion first-lien credit
facilities. The US$2.1 billion term loan and US$400 million
revolving credit facility are rated 'BB-', with a recovery
rating of '3', indicating the expectation for meaningful (50%-
70%) recovery in the event of a payment default. Proceeds from
the term loan will be used to partially fund its US$2.6 billion
acquisition of Andrew.
"The ratings on CommScope after the acquisition reflect an
increase in leverage, a short operating track record at current
profitability levels, and integration challenges," said S&P's
credit analyst Lucy Patricola. "These are offset partially by
solid market positions with major telecommunications providers
and good cash flow."
CommScope's market position in coaxial cable and environmentally
secure cabinets used by wireline carriers complements Andrew's
key business that provides antennae used in wireless base
stations.
CommScope's financing of the acquisition increases leverage
substantially from recent levels of about 1.5. Based on the
following assumptions, pro forma debt to EBITDA is about 4.0,
within expectations for the rating.
Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers and essential equipment and solutions
for the global communications infrastructure market. The
company serves operators and original equipment manufacturers
from facilities in 35 countries including China, India, Italy,
Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda
and Brazil.
BRI FINANCE: Members' Meeting Set for November 15
-------------------------------------------------
The members of Bri Finance Limited will meet on November 15,
2007, at 11:00 a.m., at the 27th Floor of Alexandra House, 16-20
Chater Road, in Central, Hong Kong.
At the meeting, Gabriel Ck Tam, the company's liquidator, will
give a report on the report on the company's wind-up proceedings
and property disposal.
CHAODA MODERN: Steep Vegetable Price Boosts Profit by 28%
---------------------------------------------------------
Chaoda Modern Agriculture posted a net profit of
CNY1.73 billion (HK$1.785 billion) for the year ended June 30,
2007, up 28% from the previous fiscal year mainly due to the
increasing price of vegetables, The Standard reports.
Turnover of the company surged 38% to CNY3.85 billion while
gross profit increased 39% to CNY2.637 billion, the company said
in a statement obtained by the news agency.
The company also reported earnings per share of 73 sen and
declared a final dividend of HK$5.6 cents per share.
In addition, the company also disclosed that changes in fair
value of biological assets and convertible bonds brought a gain
of CNY149 million and a loss of CNY247 million respectively,
compared with a gain for biological assets of CNY153 million and
a loss on convertible bonds of CNY5 million a year earlier.
Chaoda said excluding changes in fair value of biological assets
and convertible bonds, net profit would have soared 51% to
CNY1.831 billion.
Executive director and chief financial officer Andy Chan Chi-po
said land purchases are being eyed with capital expenditure of
between HK$2 billion and HK$2.5 billion next fiscal year.
Meanwhile, Chairman Kwok Ho, whose share sales twice this year
have weighed on the stock performance, said he was considering
share buybacks, The Standard relates.
Executive vice president and chief executive officer Jerry Lu
Xiaoxun said vegetable prices will continue to rise and that
average selling prices have risen 2% so far. Mr. Kwok also said
the company is discussing a project with a Japanese firm.
Headquartered in Wanchai, Hong Kong, Chaoda Modern Agriculture
(Holdings) Ltd. -- http://www.chaoda.com/-- through its
subsidiaries, is engaged in growing, distribution and sale of
crops, breeding and sales of livestock in the People's Republic
of China. It is also engaged in investment holding and agency
services. The Company's directly held subsidiaries include
Timor Enterprise Limited, Insight Decision Limited, Huge Market
Investments Limited, Worthy Year Investments Limited and Great
Challenge Developments Limited. Some of the Company's
indirectly held subsidiaries include Fuzhou Chaoda Modern
Agriculture Development Company Limited, Fujian Chaoda Livestock
Company Limited and Chaoda Vegetable & Fruits Limited.
On June 26, 2007, Moody's Investors Service changed the outlook
for Chaoda Modern Agriculture (Holdings) Ltd's Ba2 corporate
family rating and its foreign currency debt rating to negative
from stable. This is in response to the company's announcement
regarding a change of auditors.
The TCR-AP also reported that on July 26, 2006, Standard &
Poor's Ratings Services said that its rating on Chaoda Modern
Agriculture (Holdings) Ltd (BB/Stable/--) would not be affected
by a company announcement that it is planning to invest in Hong
Kong-listed Innomaxx Biotechnology Group Ltd.
CHARTER CITY: Requires Creditors to File Claims by November 12
--------------------------------------------------------------
At an extraordinary general meeting held on October 2, 2007, the
members of Charter City Development Limited resolved to
voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt by Nov. 12,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
Brian Jackson
China Merchants Tower, 12th Floor
Shun Tak Centre
168-200 Connaught Road Central
Hong Kong
FIAT SPA: Finance Unit to Repay EUR123.4 Million in Bonds
---------------------------------------------------------
Fiat S.p.A.'s Fiat Finance & Trade Ltd. S.A., a company
organized under the laws of Luxembourg, will repay
EUR123,400,000 equal to the first amortization installment of
the outstanding "Fiat Step Up Amortizing 2001-2011" bonds of
EUR617,000,000 on Nov. 7, 2007.
The repayment is in compliance with the provisions of the
instructions to the rules of the markets organized and managed
by Borsa Italiana S.p.A.
In accordance with the conditions of the bond, the repayment
will reduce by one-fifth the face value of each outstanding
bond. As a result, the face value will then amount to EUR800
each for a total residual amount of EUR493,600,000.
Consequently, the smallest denomination of each bond will thus
be reduced from EUR1,000 to EUR800.
About Fiat SpA
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. Fiat's creditors include Banca Intesa, Banca Monte
dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia,
Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As reported on Aug. 24, 2007, Moody's Investors Service upgraded
to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the
group's other long-term senior unsecured ratings.
At the same time, the positive outlook on all long-term ratings
was maintained. The short term Not Prime rating remains
unchanged.
FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz
-----------------------------------------------------
Fiat S.p.A. and JSC Avtovaz signed a memorandum of understanding
as the basis for the establishment of cooperation initiatives
aimed at supporting the expansion of Avtovaz, in the area of
passenger cars encompassing engineering and technological
processes, development, manufacturing, product sourcing, engines
and other components.
Fiat's involvement in the development of the Fiat brand in
Russia based on prior agreements with other parties continues to
be strong and is not affected by this MoU.
Following the MoU, joint teams would be set up by the two groups
to determine the feasibility and specificity of the nature of
cooperation, both in the short and long term. The two companies
expect to sign definitive agreements in the course of the coming
months.
"A cooperation with AUTOVAZ represents a significant step
forward in our industrial strategy of targeted alliances. It is
our view that Autovaz will re-emerge as a strong automotive
player in a market that is showing significant growth potential.
And we are delighted to be able to assist and participate in
this process," Sergio Marchionne, Fiat Group's CEO, disclosed.
"The memorandum signed is the most important stage in the
Russian-European cooperation in the sphere of automobile
production. Now we are entering a brand new level of relations
with the Fiat Corporation, which played the most decisive role
in the construction of VAZ in the 60s of the last century. Fiat
helped to design the most popular car in Russia which won the
hearts and souls of our automobilists," Sergey Chemezov chairman
of AvtoVAZ board of directors.
"We hope that we shall obtain success once again, revive the
authority and glory of AUTOVAZ," Mr. Chemezov added.
About Fiat SpA
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. Fiat's creditors include Banca Intesa, Banca Monte
dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia,
Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As reported on Aug. 24, 2007, Moody's Investors Service upgraded
to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the
group's other long-term senior unsecured ratings.
At the same time, the positive outlook on all long-term ratings
was maintained. The short term Not Prime rating remains
unchanged.
GLOBAL POWER: Exclusive Plan-Filing Period Extended to Oct. 24
--------------------------------------------------------------
The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court
for the District of Delaware issued a sixth bridge order
extending Global Power Equipment Group Inc. and its debtor-
affiliates' exclusive period to file a chapter 11 plan of
reorganization to Oct. 24, 2007. Judge Shannon also extended
the Debtors' exclusive period to solicit acceptances of that
plan to Dec. 24, 2007.
Headquartered in Oklahoma, Global Power Equipment Group Inc.
(Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a
design, engineering and manufacturing firm providing an array of
equipment and services to the energy, power infrastructure and
process industries. The company designs, engineers and
manufactures a comprehensive portfolio of equipment for gas
turbine power plants and power-related equipment for industrial
operations, and has over 40 years of power generation industry
experience. The company's equipment is installed in power
plants and in industrial operations in more than 40 countries on
six continents. In addition, the company provides routine and
specialty maintenance services to nuclear, coal-fired, fossil,
and hydroelectric power plants and other industrial operations.
The company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey,
Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.
The company filed for chapter 11 protection on Sept. 28, 2006
(Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq.,
Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham,
Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M.
Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq.,
at The Bayard Firm, represent the Debtors. Kurtzman Carson
Consultants LLC acts as the Debtors' noticing and claims agent.
At Oct. 31, 2006, Global Power's balance sheet showed total
assets of US$177,758,000 and total debts of US$99,017,000
Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte
Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K.
Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official
Committee of Unsecured Creditors. The Official Committee of
Equity Security Holders is represented by Howard L. Siegel,
Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels
LLP.
GLOBAL POWER: Wants Court to Approve Plan Support Agreement
-----------------------------------------------------------
Global Power Equipment Group Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to
approve an agreement in support of the Debtors' Joint Chapter 11
plan of Reorganization.
The agreement was entered into by the Debtors, the Official
Committee of Unsecured Creditors, the Official Committee of
Equity Security Holders, and holders of 100% of Global Power's
4.25% Convertible Senior Subordinated Notes.
The Debtors relate that the Plan Support Agreement contemplates
and provides the basis for the Parties' support for confirmation
and consummation of the Plan and is based on a rights offering
on private placement of up to US$90 million. The proceeds of
which, the Debtors say, will be used to fund the Plan. The
rights offering and private placement will be memorialized in a
Backstop Stock Purchase Agreement, the Debtors add.
The Court has set a hearing for October 24 to consider the
Debtors' request.
About Global Power
Headquartered in Oklahoma, Global Power Equipment Group Inc.
(Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a
design, engineering and manufacturing firm providing an array of
equipment and services to the energy, power infrastructure and
process industries. The company designs, engineers and
manufactures a comprehensive portfolio of equipment for gas
turbine power plants and power-related equipment for industrial
operations, and has over 40 years of power generation industry
experience. The company's equipment is installed in power
plants and in industrial operations in more than 40 countries on
six continents. In addition, the company provides routine and
specialty maintenance services to nuclear, coal-fired, fossil,
and hydroelectric power plants and other industrial operations.
The company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey,
Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.
The company filed for chapter 11 protection on Sept. 28, 2006
(Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq.,
Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham,
Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M.
Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq.,
at The Bayard Firm, represent the Debtors. Kurtzman Carson
Consultants LLC acts as the Debtors' noticing and claims agent.
At Oct. 31, 2006, Global Power's balance sheet showed total
assets of US$177,758,000 and total debts of US$99,017,000
Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte
Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K.
Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official
Committee of Unsecured Creditors. The Official Committee of
Equity Security Holders is represented by Howard L. Siegel,
Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels
LLP.
MYWAY LIMITED: Subject to Chan Kai's Wind-Up Petition
-----------------------------------------------------
On September 28, 2007, Chan Kai Wing filed a petition to have
Myway Limited's operations wound up.
The petition will be heard before the High Court of Hong Kong on
November 7, 2007, at 9:30 a.m.
Chan Kai's solicitors are:
HK Diamond Exchange Building, 11th Floor
8-10 Duddell Street, Central
Hong Kong
OME PRINTING: Wind-Up Petition Hearing Set for Dec. 5
-----------------------------------------------------
The High Court of Hong Kong will hear on September 20, 2007, at
9:30 a.m., a petition to have Ome Printing Company Limited's
operations wound up.
The petitioner's solicitors are:
Knight & Ho
Admiralty Centre, Tower 1
Room 904B, 9th Floor
No. 18 Harcourt Road
Admiralty, Hong Kong
ORIENTAL CRYSTAL: Court to Hear Wind-Up Petition on Dec. 5
----------------------------------------------------------
The High Court of Hong Kong will hear on December 5, 2007, at
9:30 a.m., a petition to have Oriental Crystal Finance Company
Limited's operations wound up.
The petition was filed by Catic International Finance Limited on
September 24, 2007.
Catic International's solicitors are:
K.M. Lai & Li
Regent Centre, 23rd Floor
No. 88 Queen's Road Central
Hong Kong
RELIABLE WATCH: Huen Ho Yin Quits as Liquidator
-----------------------------------------------
On October 5, 2007, Huen Ho Yin quit as liquidator of Reliable
Watch Co Limited.
The former Liquidator can be reached at:
Huen Ho Yin
West Tower
Units 3309-3311, 33rd Floor
Shun Tak Centre
168-200 Connaught Road Central
Sheung Wan
Hong Kong
SINO LUCK: Chan Kong Ho Quits as Liquidator
-------------------------------------------
Chan Kong Ho quit as liquidator of Sino Luck Industries Limited
on October 4, 2007.
The former Liquidator can be reached at:
Chan Kong Ho
Skyview Cliff
Flat B, 16th Floor
49 Conduit Road, Mid-Level
Hong Kong
STREPHON COMPANY: Members' Final General Meeting Set for Nov. 13
----------------------------------------------------------------
A final general meeting will be held for the members of Strephon
Company Limited on November 13, 2007, at 11:00 a.m., at Suite
2202, 22nd Floor of Chinachem Tower, 34-37 Connaught Road,
Central, Hong Kong.
At the meeting, Ng Kwong Hung, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
TCL MULTIMEDIA: Sells Land in Huizhou for CNY162 Million
--------------------------------------------------------
TCL Multimedia Technology Holdings Limited has agreed to dispose
of the land used right of a land located at Huizhou to
Huizhou Land Reserve Centre for CNY162.282 million (US$167.15
million), Infocast News reports.
The proceeds from the disposal will be used as general working
capital.
TCL Multimedia expects to record a gain of CNY52.968 million
($54.557 million) from the disposal, the report says.
According to Infocast, the land, comprising of a total area of
276,899 square meters, was previously used by the company as
production plant, staff quarters and staff canteen.
Headquartered in New Territories, Hong Kong, TCL Multimedia
Technology Holdings Limited -- http://www.tclhk.com/-- designs,
manufactures and sells electronic products like colored TV, DVD
players, VCD players, home cinema hi-fi systems, mobile
handsets, Internet-related information technology products,
refrigerators and washing machines. Its other activity includes
trading electronic parts and components used in the production
of color television sets.
On Aug. 31, 2006, the Troubled Company Reporter-Asia Pacific
reported that TCL Multimedia Technology Holdings Limited's
European operations posted a CNY763 million loss, which caused
losses of the TCL Corp. group to widen to CNY737.56 million.
Moreover, the TCR-AP on Oct. 24, 2006, said that TCL is
expecting to post a loss for the full-year because first-half
losses had been so large. In the first half of 2006, TCL
reported a net loss of CNY737.56 million, after a loss of
CNY320.24 million in 2005.
The TCR-AP report recounted that in 2004, TCL acquired the TV
unit of French electronics firm Thomson, which uses the Thomson
brand in Europe and RCA in North America. TCL grouped all its
TV businesses under TMT.
TTE Europe SAS, TCL's European unit, filed a declaration of
insolvency on May 24, 2007, in France after it failed to settle
a number of outstanding liabilities.
UNIVERSAL TREND: Members to Hold Final Meeting on November 12
-------------------------------------------------------------
Universal Trend Development Limited will hold a meeting for its
members on November 12, 2007, at 10:00 a.m., at Room 1701 of
Olympia Plaza, 255 King's Road, in North Point, Hong Kong.
At the meeting, Lui Wan Ho, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
=========
I N D I A
=========
AGILENT TECHNOLOGIES: Inks Marketing Agreement with BioTrove
------------------------------------------------------------
Agilent Technologies Inc. and BioTrove Inc. have signed an
agreement to co-market the Agilent 6410 Triple Quadrupole Mass
Spectrometer with BioTrove's RapidFire high-throughput sample
preparation systems. The two systems together provide an
integrated solution for ultra-high-throughput preparation and
analysis of in vitro biological assays in pharmaceutical drug
research.
"This relationship enables clients to integrate the fastest
sample-preparation system on the market with the strength of
leading-edge analytical mass spectrometry," said Guenter Nill,
Agilent general manager, pharmaceutical and biotech market. "It
significantly benefits pharmaceutical companies that want to
spend less time and money discovering new leads and developing
more effective medicines."
Using innovative microfluidic technology for sample preparation
and analysis faster than eight seconds per sample, RapidFire
Mass Spectrometry eliminates bottlenecks created by traditional
mass spectrometry throughput. It has been used by 10 of the top
15 pharmaceutical companies as an established drug-discovery
tool for more than four years. RF-MS is routinely used in
applications including the high-throughput screening of
previously intractable drug targets, cytochrome P450 inhibition
and other pre-clinical ADME assays, as well as in directed
evolution studies.
The Agilent 6410 Triple Quadrupole LC/MS establishes a new
standard for value in a triple quadrupole mass spectrometer,
delivering outstanding sensitivity and great ease of use along
with traditional Agilent reliability. Femtogram-level
sensitivity and rugged, reliable performance make this the
instrument of choice for drug discovery and development.
"The Agilent-BioTrove collaboration provides an improved,
integrated high-throughput screening solution, enabling
biopharmaceutical companies to better use their talent, time and
targets," said Al Luderer, Ph.D., president and CEO, BioTrove.
"BioTrove's expertise in sample preparation for high-throughput
screening and early ADME is a natural complement to Agilent's
strength in analytical mass spectrometry. Together, we are
enabling walk-away analysis of lead compounds against valuable
targets that would be otherwise impossible to screen, helping
biopharma clients meet the challenge of accelerating drug
discovery research."
The combined solutions can be seen at the following events:
-- Chemical and Pharmaceutical Structure Analysis Conference
in Langhorne, Pa., on Oct. 22-25; and
-- American Association of Pharmaceutical Scientists
Conference in San Diego on Nov. 11-15.
About BioTrove Inc.
BioTrove Inc. -- http://www.biotrove.com/-- offers two
innovative technology platforms: RapidFire(TM), which enables
the acceleration of drug discovery and pipeline decisions, and
OpenArray(TM), which advances genomic research in a wide range
of life science fields, including agriculture, disease research,
bio-defense, and public health. With more than half of the
world's ten largest pharmaceutical companies as clients, and
partnerships with prestigious research and public health centers
around the world, BioTrove's products and services ensure that
an industry committed to accuracy and speed can meet business
goals.
RapidFire(TM) Mass Spectrometry (RFMS) uses an innovative
microfluidic technology to facilitate analysis at faster than 10
seconds per sample, eliminating the bottleneck created by
traditional mass spectrometry throughput. RFMS is routinely
used in many applications including the high-throughput
screening of previously intractable drug targets, cytochrome
P450 inhibition and other ADME assays and directed evolution
studies.
The OpenArray(TM) Platform enables genomics researchers to
generate SNP and real time qPCR data in the hundreds of
thousands of data points per day, significantly increasing the
number of samples analyzed while significantly decreasing the
time and cost required. The flexible format and nanoliter scale
of the OpenArray(TM) system allows for easy adjustment of sample
and assay numbers, achieving economical, high-throughput
genomics.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/
-- is the world's premier measurement company and a technology
leader in communications, electronics, life sciences and
chemical analysis. The company's 19,000 employees serve
customers in more than 110 countries.
The company has operations in India, Argentina, Puerto Rico,
Bolivia, Paraguay, Venezuela, and Luxembourg, among others.
* * *
Agilent Technologies Inc. carries Moody's Investors Service
'Ba1' corporate family rating.
ICICI BANK: Reports 33% Year-on-Year Grown in Profit After Tax
--------------------------------------------------------------
The Board of Directors of ICICI Bank Limited at its meeting
held at Mumbai on Oct. 19, 2007, approved the audited accounts
of the bank for the quarter ended September 30, 2007 (Q2-2008).
Highlights
* Operating profit excluding treasury income increased 52% in
Q2-2008 to INR1,712 crore (US$430 million) from INR1,129
crore (US$283 million) in the quarter ended September 30,
2006 (Q2-2007).
* Profit after tax for Q2-2008 increased 33% to INR1,003
crore (US$252 million) from INR755 crore (US$189 million)
for Q2-2007.
* Net interest income increased 34% to INR1,786 crore (US$448
million) for Q2-2008 from INR1,334 crore (US$335 million)
for Q2-2007.
* Total advances increased 33% to INR207,121 crore (US$52.0
billion) at September 30, 2007 from INR155,403 crore
(US$39.0 billion) at September 30, 2006.
* Current and savings account deposits increased 38% to
INR57,827 crore (US$14.5 billion) at September 30, 2007
from INR41,997 crore (US$10.5 billion) at September 30,
2006.
Operating review
Credit Growth
The Bank's total advances increased 33% to INR207,121 crore
(US$52.0 billion) at September 30, 2007 from INR155,403 crore
(US$39.0 billion) at September 30, 2006. The advances of the
Bank's international branches increased 146% to INR36,994 crore
(US$9.3 billion) at September 30, 2007 from INR15,025 crore
(US$3.8 billion) at September 30, 2006, reflecting the
combination of the Bank's strong corporate franchise, and its
international presence. This has led to an increase in the
proportion of advances of the Bank's international branches in
total advances from 9.7% at September 30, 2006 to 17.9% at
September 30, 2007. The Bank's retail advances were INR131,014
crore (US$32.9 billion) at September 30, 2007 and constituted
63% of total advances. The Bank is also extending its reach in
the small and medium enterprises segment with advances
increasing by 56% to INR5,205 crore (US$1.3 billion) at
September 30, 2007 from INR3,326 crore (US$0.8 billion) at
September 30, 2006.
Deposit Growth
The Bank's total deposits increased 20% to INR228,307 crore
(US$57.3 billion) at September 30, 2007 from INR189,499 crore
(US$47.6 billion) at September 30, 2006. During this period,
current and savings account deposits increased 38% to INR57,827
crore (US$14.5 billion) at September 30, 2007 from INR41,997
crore (US$10.5 billion) at September 30, 2006. The Bank had 950
branches and extension counters and about 3,600 ATMs at
September 30, 2007.
International Operations
The Bank has wholly-owned subsidiaries, branches and
representative offices in 17 countries, and an offshore banking
unit in Mumbai. At September 30, 2007 the Bank's international
operations accounted for about 22% of its consolidated banking
assets. The Bank's remittance business volumes were about
INR8,600 crore (US$2.2 billion) during Q2-2008. ICICI Bank UK's
profit after tax for the six-month period ended September 30,
2007 (H1-2008) was US$36.0 million.
Capital Adequacy
The Bank's capital adequacy at September 30, 2007 was 16.8%1
(including Tier-1 capital adequacy of 13.0%), well above RBI's
requirement of total capital adequacy of 9.0%.
Asset Quality
At September 30, 2007, the Bank's net non-performing assets
constituted 1.4% of customer assets.
Unaudited Consolidated Results
The unaudited consolidated profit after tax was INR1,642 crore
(US$412 million) for the six-month period ended September 30,
2007 (H1-2008) compared to INR1,319 crore (US$331 million) for
the six-month period ended September 30, 2006 (H1-2007).
ICICI Prudential Life Insurance Company continued to maintain
its market leadership among private sector life insurance
companies with a market share of about 26% on the basis of
weighted received new business premium in April-August 2007.
Life insurance companies worldwide make losses in the initial
years, in view of business gestation and customer acquisition
costs as well as reserving for actuarial liability.
While the growing operations of ICICI Life had a negative impact
of INR406 crore (US$102 million) on the unaudited consolidated
profit after tax in H1-2008 on account of the above reasons, the
company's unaudited New Business Profit in H1-2008 was INR432
crore (US$108 million). NBP is a metric for the economic value
of the new business written during a defined period. It is
measured as the present value of all the future profits for the
shareholders, on account of the new business based on standard
assumptions of mortality, expenses and other parameters. Actual
experience could differ based on variance from these assumptions
especially in respect of expense overruns in the initial years.
ICICI Lombard General Insurance Company maintained its
leadership position with a market share of about 32% among
private sector general insurance companies and an overall market
share of about 12% during April-August 2007. ICICI General's
profit after tax was INR81 crore (US$20 million) in H1-2008.
At September 30, 2007, ICICI Prudential Asset Management Company
(ICICI AMC) had assets under management of about INR50,400 crore
(US$12.6 billion). ICICI AMC's profit after tax was INR53 crore
(US$13 million) in H1-2008.
A copy of the company's audited financial results for the
quarter ended Sept. 30, 2007, is available for free at:
http://ResearchArchives.com/t/s?2466
About ICICI Bank
Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance. It also has
interests in the software development, software services and
business process outsourcing businesses. The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others. It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
* * *
Fitch Ratings gave ICICI a 'C' Individual Rating.
On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On
Oct. 16, S&P assigned its 'BB+' issue rating to its senior
unsecured, five-year, fixed-rate U.S. dollar notes.
ICICI BANK: Promotes C. Kochhar to Joint Managing Director & CFO
----------------------------------------------------------------
The Board of Directors of ICICI Bank Limited at its meeting on
Oct. 19, 2007, elevated Chanda Kochhar, Deputy Managing Director
as Joint Managing Director & Chief Financial Officer of ICICI
Bank. She will be responsible for the Corporate Centre and will
be the official spokesperson for ICICI Bank.
The Board of Directors has appointed Sonjoy Chatterjee,
presently Managing Director & CEO of ICICI Bank UK plc as an
Executive Director of ICICI Bank Limited effective October 22,
2007, subject to approval of Reserve Bank of India and other
necessary approvals. He will take over responsibility for
wholesale and international banking.
V. Vaidyanathan, Executive Director will take over
responsibility for rural banking in addition to his current
responsibility for retail banking.
ICICI Lombard General Insurance Company (ICICI General), the
Bank's general insurance subsidiary, has achieved robust growth
and market share. In order to further strengthen the top
management of this business in line with its growing scale,
ICICI Bank and its joint venture partner, Fairfax, have decided
to recommend to the Board of Directors of ICICI General the
appointment of Vishakha Mulye, Group Chief Financial Officer as
Executive Director on the Board of ICICI General, subject to
necessary approvals.
About ICICI Bank
Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance. It also has
interests in the software development, software services and
business process outsourcing businesses. The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others. It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
* * *
Fitch Ratings gave ICICI a 'C' Individual Rating.
On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On
Oct. 16, S&P assigned its 'BB+' issue rating to its senior
unsecured, five-year, fixed-rate U.S. dollar notes.
Headquartered in Montreal, Canada, Quebecor Media Inc. is a
privately held leading Canadian media holding company. Through
its operating companies, QMI has activities in cable
distribution, business, residential and mobile wireless
telecommunications, newspaper publishing, television
broadcasting, book, magazine and video retailing, publishing and
distribution, music recording, production and distribution and
new media services.
QMI is 54.7% owned by Quebecor Inc, a publicly traded
communications holding company, and 45.3% owned by Capital CDPQ.
Quebecor Inc.'s primary assets are its interests in Quebecor
Media and in Quebecor World, one of the world's largest
commercial printers (B3 Negative). Quebecor World has
approximately 29,000 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.
QUEBECOR MEDIA: S&P Rates Proposed US$450 Mil. Senior Notes at B
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' debt rating
to Montreal, Quebec-based Quebecor Media Inc.'s proposed
US$450 million 7.75% senior unsecured notes due 2016. The notes
are rated two notches below the 'BB-' long-term corporate credit
rating, reflecting their junior position in the company's debt
capital structure with debt at wholly owned subsidiaries,
Videotron Ltee and Sun Media Corp. (both rated BB-/Stable/--),
ranking ahead of the proposed notes. The ratings and outlook on
all companies are unchanged.
"The proceeds from the notes will be used to refinance the
CDN US$420 million bridge loan and related fees to fund the
acquisition of Osprey Media Income Fund, a leading publisher of
newspapers, magazines, and specialty publications in Ontario,"
said Standard & Poor's credit analyst Madhav Hari.
The debt-financed acquisition closed on Aug. 8, 2007, at
CDN US$8.45 per unit, representing an equity value of CDN US$414
million, and a total purchase price of CDN US$576 million,
including the assumption of debt outstanding. Although the
Osprey acquisition results in weaker credit protection metrics
on a pro forma basis, credit measures remain consistent with the
rating category given pro forma adjusted debt leverage (debt to
EBITDA) of about 4x.
The acquisition of Osprey's 20 daily and 34 nondaily community
newspapers will position Quebecor Media as the largest newspaper
publisher in Canada and should improve Sun Media's newspaper
market position, which consists of eight paid urban dailies,
seven free commuter dailies, and 193 community newspapers and
specialty publications. Although Osprey participates in the
challenging newspaper industry, it is somewhat insulated against
economic factors as its revenues are derived from the community
newspaper segment.
This segment relies less on customer subscriptions and national
advertising revenues, which tend to be more volatile than local
advertisers. Despite some integration risk from the
acquisition, Standard & Poor's expects Quebecor Media will be
able to effectively manage the integration process, which should
take up to 12 months to complete.
The stable outlook reflects S&P's expectation that Quebecor
Media's operating assets will maintain their solid market
positions, that credit measures will be in line with the ratings
in the medium term, and that the company will successfully
manage the Osprey integration. S&P could revise the outlook to
positive or raise the ratings if Quebecor Media improves its
financial risk profile and is able to sustain better operating
performance and stronger credit measures. Alternatively, S&P
could revise the outlook to negative if the company fails to
meet expectations, resulting in the weakening of Quebecor
Media's operating performance and credit measures.
Headquartered in Montreal, Canada, Quebecor Media Inc. is a
privately held leading Canadian media holding company. Through
its operating companies, QMI has activities in cable
distribution, business, residential and mobile wireless
telecommunications, newspaper publishing, television
broadcasting, book, magazine and video retailing, publishing and
distribution, music recording, production and distribution and
new media services.
QMI is 54.7% owned by Quebecor Inc, a publicly traded
communications holding company, and 45.3% owned by Capital CDPQ.
Quebecor Inc.'s primary assets are its interests in Quebecor
Media and in Quebecor World, one of the world's largest
commercial printers (B3 Negative). Quebecor World has
approximately 29,000 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.
RYERSON INC: S&P Holds 'B+' Rating and Removes Negative Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Chicago, Illinois-based metals processor and distributor Ryerson
Inc., including its 'B+' corporate credit rating. S&P removed
all ratings from CreditWatch, where they had been placed with
negative implications on July 24, 2007, after the company
announced that it had agreed to be acquired by Platinum Equity
for around US$2 billion.
S&P also assigned its 'B+' senior secured rating and '4'
recovery rating to Ryerson's proposed US$575 million senior
secured notes, comprised of US$150 million of floating-rate
senior secured notes due 2014 and US$425 million senior secured
notes due 2015. The recovery rating indicates expectations of
average (30% to 50%) recovery in the event of a payment default.
The outlook is negative.
"The affirmation incorporates the prospects for debt repayment
as a result of improved operating results and inventory
management, due to a new information system, and further cash
generation from tighter inventory management and asset sales,"
said Standard & Poor's credit analyst Marie Shmaruk. "Still, we
remain cautious about the company's heavy debt burden and its
ability to continue to generate and sustain further meaningful
cash flow from working capital improvement."
Pro forma for the transaction, Ryerson will have book debt of
around US$1.4 billion. After adjustments for postretirement
benefits and operating leases, total debt will approximate
US$1.7 billion.
Also pro forma for the transaction, the company will have more
than US$300 million available under its US$1.35 billion
revolving credit facility due 2012 and US$35 million in cash.
"The ratings are predicated on the rapid and permanent reduction
of debt during the next 12 months to attain credit metrics more
in line with the rating, with debt to EBITDA in the 5x to 5.5x
range," Ms. Shmaruk said. "A downgrade is possible if the
company does not make reasonable progress in meeting these
objectives or if end markets and operating performance
deteriorate. We would change the outlook to stable if the
company achieves improved credit metrics that we believe are
sustainable for the longer term."
Headquartered in Chicago, Illinois, Ryerson Inc. (NYSE: RYI) --
http://www.ryerson.com/-- is a distributor and processor of
metals in North America. The company services customers through
a network of service centers across the United States and in
Canada, Mexico, India, and China.
RAIN CALCINING: Fitch Gives 'B' Long-Term Foreign Currency IDR
--------------------------------------------------------------
Fitch Ratings, on Oct. 19, 2007, assigned Long-term foreign
currency Issuer Default Ratings of 'B' to both Rain Calcining
Ltd and its wholly-owned subsidiary, CII Carbon L.L.C. The
Outlook on the ratings is Stable. Fitch views the legal,
operational and strategic linkages between the two entities as
strong and has assessed the consolidated financials in assigning
the ratings. However, as both entities would be rated in the
'B' category on a stand-alone basis, potential intra-group
support is not a material factor in equalising the ratings.
Fitch has also assigned expected ratings to the following debt
issues of the two entities:
-- RCL's US$175 million senior secured facilities (US$54.3m
revolving credit facility and US$120.7m term loan): 'B+'/
'RR3';
-- CII's US$220m senior secured facilities (US$40m revolving
credit facility and US$180m term loan): 'B+'/ 'RR3';
-- US$235m senior subordinated notes (unsecured): 'B-'(B
minus)/'RR5'
The final ratings of the instruments are contingent upon receipt
of documents conforming to information already received.
The ratings reflect the combined entity's (RCL-CII) global
leadership in the calcined petroleum coke market, the relatively
stable spreads between CPC and its primary raw material, green
petroleum coke (GPC), over the past few years as well as a
favourable demand/supply outlook for the industry, driven by
anticipated growth in aluminium production of 3.5-4.0% over the
medium term. The ratings also reflect the relatively low
integration costs for the acquisition, and the clearly
identified synergies in sourcing and distribution, location
advantages with assets in the US and India, as well as the
benefits from fine tuning the waste heat recovery from the
manufacturing process, which adds significant stability to
margins.
Fitch anticipates material de-levering over the medium term from
the consequent stronger cash flows. With the structure in place
for a sweep of the reasonably strong positive free cash flows
over the next year, Fitch expects the company's total debt/
EBITDAR ratio to improve to around 4-5x by December 2008. While
any major delays in the realisation of these synergies would act
as a negative trigger, any greater than expected de-levering
could act as a positive rating trigger.
Key risks to the industry would include a reversal in the
current global demand trend for base metals, and specifically
aluminium. The risk of major new CPC capacities affecting
demand/supply dynamics is partly mitigated by the industry-wide
consolidation over the past few years. With GPC supply being
tight globally, sourcing linkages act as effective barriers to
new capacities. The consolidated entity benefits from CII's
strong relationships and long-term contracts with major GPC
suppliers.
In July 2007, RCL acquired 100% of CII for US$619.3m (adjusting
for US$11.4m of working capital, and including refinancing of
existing debt at CII), primarily using debt finance. All
existing debt of RCL and CII will be replaced by the rated debt
issues, barring US$92m Series A preferred interests in CII held
by an affiliate of RCL and US$12.9m Seller notes (essentially
deferred consideration to the earlier sponsor of CII). RCL has
proposed a comprehensive restructuring of its holding structure
to enable the ring-fencing of the cash-flows within the
calcining business i.e. RCL, CII and the intermediate holding
companies.
Furthermore, the senior secured facility, aggregating US$395m,
will be secured against a pledge of 100% of the post-
restructuring shareholdings in RCL, CII, intermediate holding
companies and the US$92m Series A preferred interests, in
addition to a first charge on all assets in these entities. The
rating reflects the corporate structure post this initiative,
although any material delay in the restructuring could act as a
rating trigger inasmuch as it could have an impact on the
proposed security package. The senior secured facility has
strict covenants, including ring fencing of the cash flows
within the two entities, financial covenants monitored on a
quarterly basis, a cash flow sweep for debt repayments, and
cross-default and counter guarantee provisions between RCL and
CII.
With regards to the Recovery Ratings assigned to the individual
debt instruments, by applying appropriate discounts to both the
EBITDA and the Enterprise Value/EBITDA multiple, Fitch expects
that in a distress scenario there would be sufficient value
within the combined group for the senior secured creditors to
achieve full recovery by selling the Rain-CII business on a
going concern basis. Fitch anticipates that the senior
unsecured bondholders at CII would achieve relatively low
recoveries, reflecting their subordination to the secured
lenders. Notwithstanding the apparently high level of
recoveries for senior lenders derived from the enterprise value
calculation, the uncertainty related to achieving recoveries
through the relatively unpredictable Indian insolvency process
would generally result in Fitch capping Recovery Ratings for
senior secured debt in India at 'RR4', reflecting no better than
average recoveries. However, in this case, the domicile of the
majority of assets and cash flows of the combined group at CII
in the more creditor-friendly US jurisdiction, together with the
comprehensive security package over all such assets, results in
greater certainty for the recovery prospects of the senior
secured lenders. Accordingly, the senior facilities have been
assigned a Recovery Rating of 'RR3', with the instrument ratings
raised by a notch from the IDR to 'B+'.
The US$235m senior subordinated note (unsecured) has been
assigned a Recovery Rating of 'RR5', reflecting the relatively
low level of residual value accruing from the anticipated going
concern sale of the business in a distress scenario.
Accordingly, the senior subordinated note (unsecured) has been
rated a notch lower than the CII IDR at 'B-'.
Fitch notes that the creation of security for RCL's assets for
any non-Indian senior secured holder is subject to Indian
regulatory approval. While any material delay/non-approval is
not an event of default within the terms of the senior
facilities documentation, the absence of such approval, leading
to an inability by the senior lenders to take control of RCL and
sell it as part of a combined RCL-CII going concern, could
reduce overall recoveries, and consequently act as a negative
rating trigger for the unsecured bond.
On a combined production volume of 2.5m metric tonnes per annum,
RCL-CII is the world's largest CPC manufacturer, with combined
revenues of US$540m and an expected total debt/ EBITDAR of
around 6x (pro forma) for the twelve months ended June 2007.
RAIN CALCINING: Gets Moody's B2 Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service, on Oct. 19, 2007, assigned a B2
corporate family rating to CII Carbon LLC, and a B2 probability
of default rating. At the same time, Moody's assigned a B1
rating to CII Carbon's secured bank facility and a B3 rating to
CII's and CII Carbon Corp.'s (co-issuers) US$235 million
guaranteed senior subordinated notes due 2015. Moody's also
assigned a B2 CFR to Rain Calcining Limited (RCL, the parent of
CII) and a B1 rating to RCL's secured bank facility. CII was
acquired by RCL in July 2007 in a primarily cash transaction
valued at US$619 million. The equalization of the two CFRs
incorporates Moody's view that RCL's acquisition of CII Carbon
has strategic benefits that will inure to the benefit of both
companies, and that there will be interdependence and business
activity between the two companies. CII will represent a
significant proportion of RCL's consolidated operations. RCL's
CFR reflects Moody's opinion on RCL's ability to honor its
financial obligations as if it had a single class of debt and a
single consolidated legal entity structure. The ratings outlook
is stable. This is the first time Moody's has assigned a rating
to RCL. Moody's had withdrawn CII's ratings (B1 corporate
family rating) following its acquisition by RCL and repayment of
its prior bank facilities.
"The effective downgrade of CII's CFR to B2 from B1 reflects the
almost doubling in debt levels at CII resulting in a LTM June
30, 2007 pro-forma debt/EBITDA ratio of roughly 6x, and its
relatively small revenue base", notes Carol Cowan, lead analyst
for CII. However, the rating incorporates CII's position as the
second largest producer of anode grade calcined petroleum coke
globally, its strong contract position for both raw material
(green petroleum coke) requirements and CPC offtake and the
relative stability of revenues and margins, even during periods
of weakness in the aluminum industry. CPC is a critical raw
material required for the production of carbon anodes used in
the aluminum smelting process. Green coke, a petroleum refining
by-product, represents approximately 70% of the cost of making
calcined coke. There is no known economic substitute for anode
grade calcined coke. As aluminum cannot be produced without
calcined coke consumption in the smelting process, CII's
performance is more sensitive to aluminum production levels than
it is to aluminum price. Aluminum production continues to grow
year to year and Moody's does not expect significant cutbacks in
production. Consequently Moody's expects CII to continue to
evidence free cash flow generating ability and focus on debt
reduction. Using the Moody's Global Chemical Industry
Methodology, CII maps to a "B" rating level with key drivers
being its small size and debt levels relative to EBITDA and its
limited capital base.
"The B2 CFR on RCL reflects the combined entity's position as
the world's largest producer of CPC, with an approximate 13%
market share, with this strong market position further
reinforced by the company's well-established and geographically
diverse operations" says Elizabeth Allen, lead analyst for RCL.
Upon the successful integration of CII's acquisition, RCL should
benefit from a competitive cost structure, stemming from the
expected improvement in integrated operations, good access to
key raw material (GPC) sources, and efficient logistics given
the favorable location of operations and accessibility to end-
user markets."
"Also underpinning the ratings is the long-term relationships
established with key customers and the diversified customer
base," adds Cowan.
However, key challenges for the ratings include (a) the high
financial risk profile, in light of the substantially debt
financed acquisition of CII that results in consolidated gearing
(as denoted by debt/EBITDA) peaking at 6x in FY2007, before
recovering to the mid-4x range in the medium term; and (b)
execution and integration risks, which include achieving
anticipated synergies, considering the size of CII and that it
is domiciled in a developed market. Also, the majority of RCL's
business is exposed to the risk of a single end-user industry --
that is, exposure to the cyclical demand and production rates of
the primary aluminum industry.
When mapped to Moody's Global Chemical Industry Methodology,
RCL's consolidated performance indicates a Ba rating category.
However, the biggest drivers of the B2 rating outcome are: 1)
the significant rise in financial risk profile (given the
largely debt financed acquisition transaction), 2) the resultant
higher debt service requirements and 3) the execution and
integration risks embedded in the CII acquisition. The rating
also incorporates Moody's moderately favorable outlook of the
CPC industry that is correlated to the expected continuing
increase in aluminum production.
The ratings on CII's bank facilities reflect the application of
Moody's loss given default rating methodology. The secured bank
facility totals US$395 million and contains tranches available
to CII Carbon (US$220 million) and RCL (US$175 million). The
CII lenders have security interests in all CII assets and a
limited secured guarantee of US$150 million from RCL (subject to
a RCL net worth formula as per Indian central bank regulations)
while the RCL lenders have security interests in all of CII and
RCL assets as well as guarantees from CII and RCL. Based upon
the guarantee level (which is not subject to reduction should
net worth decline from current levels), Moody's views the CII
and RCL lenders positions as relatively equal and given the
level of deficiency on the collateral base relative to the level
of debt, the ratings on the CII bank tranches and RCL bank
tranches are equalized at a B1 rating and are only one notch
above the corporate family ratings.
The B3 rating on CII's/CII Carbon Corp's guaranteed senior
subordinated notes also reflects the application of Moody's loss
given default rating methodology and considers the position of
the notes behind the US$395 million secured bank facility. While
the notes are guaranteed by RCL (subject to a RCL net worth
formula as per Indian central bank regulations), Moody's sees no
residual asset value in the guarantee supporting the notes given
the size of the bank facility and deficiency levels in its
collateral package. While the notes are subordinated to the
bank facility, they are at parity with trade payables and senior
to more junior instruments in the capital structure and are
viewed as a senior unsecured instrument.
The stable outlook is premised on the likelihood of a timely and
smooth integration of CII operations, and RCL's ability to
harness the synergistic benefits arising from the acquisition.
The outlook also incorporates the expectation that post
acquisition, the combined RCL group would sustain its position
as the world's largest calcined coke producer, and use the
expected free cash flows to pare down debts. Given the tight
market conditions for GPC and the strong demand for CPC based
upon aluminum production levels, Moody's expects fundamentals
for the calcining industry to remain strong over the next two
years, thereby contributing to free cash flows at both CII and
RCL for debt reduction.
Assignments:
Issuer: CII Carbon LLC
Corporate Family Rating, Assigned B2
Probability of Default Rating, Assigned B2
Senior Secured Bank Credit Facility, Assigned B1 LGD 3, 35%
Issuer: CII Carbon LLC and CII Carbon Corp
Gtd Senior Subordinated Regular Bond/Debenture, Assigned B3,
LGD 4 , 62%
Issuer: Rain Calcining Limited
Corporate Family Rating, Assigned B2
Senior Secured Bank Credit Facility, Assigned B1
CII, formed in 1988 and headquartered in Kingwood, Texas, is the
second largest producer of calcined coke globally with
approximately 1.9mt capacity and seven operating locations in
the United States. Fiscal 2006 revenues were USUS$355 million.
RCL, established in 1989, is primarily involved in the
production of calcined coke (CPC), is one of the top five
calciners globally, and the largest producer in Asia. It has an
annual production capacity of 0.6 million tons, and its plant is
located in Visakhapatnam (India). It recorded a net profit of
INR0.7 billion (USUS$16.8 million equiv) on a turnover of INR7.0
billion for FYE March 31, 2007. RCL is listed in the National
Stock Exchange and Mumbai Stock Exchange.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: To Broaden Unified Communication Offer w/ Sagem
--------------------------------------------------------------
Alcatel-Lucent and Sagem Communications have launched an
embedded version of Sagem-Interstar's Fax over IP server
technology XMediusFAX within the Alcatel-Lucent OmniTouch
Unified Communication suite. The combined solution is aimed at
offering customers worldwide a Fax over IP solution fully
integrated into their communication environment. Users can
easily send/receive faxes directly from their email client.
Faxes are easier to track, manage and archive.
For many industries, faxing is and remains a legally binding and
essential means of communication in business-to-business
exchanges. The XMediusFax technology complements the OmniTouch
UC solution with simple, flexible and field-proven capabilities.
The T.38 FoIP technology is a globally accepted, secure,and
reliable way to quickly transmit faxes over IP networks and the
Internet. Customers benefit from the advantages of a packaged
"ready to go" solution that features greater optimization
between fax, voice, email, calendaring, instant messaging and
collaboration.
The joint solution boosts employee productivity by providing
rapid fax delivery and an efficient means of fax broadcasting.
It streamlines workflow management and creates an audit trail
fully in line with security & regulatory requirements. It also
reduces hardware and maintenance costs, as its full boardless
Fax over IP solution eliminates dedicated analog fax lines, as
well as specialized fax equipment, maintenance and supplies.
Additionally, both resellers and customers benefit from
simplified ordering and improved cost structure of an integrated
solution.
"Sagem-Interstar's FoIP platform is a simple and elegant
solution that is easily customizable for OEM integrations on
platforms such as Windows and Linux. Our FoIP server, which
pioneered the boardless IP fax market, is the most widely-tested
and field-proven FoIP solution in the industry," said Patrick
Sevian, CEO Sagem Communications. "Sagem Communications is
proud of having Alcatel-Lucent broadening its already leading
solution with our technology."
"At Alcatel-Lucent, we believe building the right relationships
and joint solutions to support our customers goals is critical
in today's market. With Sagem, we are bringing our customers
the first IP Telephony offer with a fully integrated Fax over IP
and multimedia solution as part of our OmniTouch Unified
Communication suite." said Tom Burns, President of the Alcatel-
Lucent's Enterprise activities. "By integrating simple yet
business critical tasks like faxing, which is still an essential
means of communication for many industries, we allow our
customers to leverage their investment in communications to
streamline the business processes."
About Sagem Communications
Sagem Communications is a major player in the fields of
communication, having acquired international positions thanks to
a high innovative potential. The SAGEM products benefit from a
particular awareness in the following activities: printing
terminals, residential terminals, digital TV set-top boxes,
systems, electronic metering.
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.
* * *
The Troubled Company Reporter-Asia Pacific reported on Sep. 19,
2007, that Standard & Poor's Ratings Services revised its
outlook on international equipment supplier Alcatel-Lucent and
related entity Lucent Technologies Inc. to stable from positive.
At the same time, the 'BB-' long-term corporate credit ratings
on the group were affirmed. The 'B' short-term corporate credit
rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent
Technologies were also affirmed.
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.
BERLIAN LAJU: Plans to Raise US$350 Million for Debt Repayment
--------------------------------------------------------------
PT Berlian Laju Tanker Tbk plans to raise up to US$350 million
via asset sales and a convertible bond or equity issue to repay
debt linked to an acquisition of a chemical tanker company,
Reuters reports, citing Finance Director Keving Wong.
Mr. Wong told the news agency that the asset sales is estimated
to raise US$250 million and a convertible bond issue or equity
issue about US100 million.
The Troubled Company Reporter-Asia Pacific reported on
Oct 18, 2007, that Berlian Laju has agreed to buy Chembulk
Tankers LLC for US$850 million. According to the report,
the purchase of Chembulk will be funded by cash and loans from
several banks, and will be immediately accretive to the
company's earnings, the report relates.
Reuters notes that Mr. Wong said the firm had got US$750 million
of funding for the acquisition from four international banks --
Fortis Bank, DnB NOR, and Nordic NIB.
The completion of the acquisition would come after an
extraordinary shareholder meeting likely to be held in December,
he added.
About PT Berlian Laju
PT Berlian Laju Tanker Tbk is the largest Indonesian shipping
company, focusing on liquid bulk cargo, with operations
primarily in Asia with some expansion into the Middle East and
Europe. In 2006, BLT achieved revenue of US$335 million, EBITDA
of US$154 million and net income of US$107 million. The
founder, Hadi Surya, has a 48.7% beneficial interest in BLT.
The Troubled Company Reporter-Asia Pacific reported on Oct 17,
2007, that Standard & Poor's Ratings Services lowered its
ratings on PT Berlian Laju Tanker Tbk to 'B+' from 'BB-' and
placed them on CreditWatch with negative implications. At the
same time, Standard & Poor's lowered the issue ratings on US$400
million senior unsecured notes due 2014 and on a US$125 million
five-year convertible bond due 2012, issued earlier this year by
BL TFinance B.V., a wholly owned subsidiary of BLT, were also
lowered to 'B+' from 'BB-' and placed on CreditWatch with
negative implications. BLT guarantees both issues; BLT's covered
subsidiaries also guarantee the senior notes.
On Oct 16, 2007, Fitch Ratings has placed PT Berlian Laju Tanker
Tbk's Long-term foreign and local currency Issuer Default
Ratings of 'BB-' on Rating Watch Negative, following the
company's disclosure on October 14, 2007, that it plans to
acquire Chembulk LLC, a Marshall Islands-registered chemical
tanker company, for US$850 million. Fitch has also placed the
'BB-' rating of the US$400m senior unsecured notes due 2014
issued by BLT Finance B.V. and guaranteed by BLT on RWN.
COMVERSE TECHNOLOGY: Updates Organizational Appointments
--------------------------------------------------------
Comverse Technology Inc. reported several organizational
appointments.
John Bunyan has been named chief marketing officer, reporting to
the company's president and CEO, Andre Dahan, effective Oct. 22,
2007.
In his new role, Mr. Bunyan also will be responsible for the
marketing function at Comverse Inc. The Comverse Inc. marketing
staff will report to Mr. Bunyan, and it is expected that the
company will designate a marketing vice president reporting to
both Mr. Bunyan and Comverse Inc. president Yaron Tchwella.
Mr. Bunyan has more than 20 years of senior management
experience. He was senior vice president of Mobile Multimedia
Services at AT&T Wireless and was responsible for the consumer
wireless data business. In this role he helped develop
messaging, mobile internet, and other consumer services. He
also served as senior vice president of Marketing at Dun &
Bradstreet, and prior to that, as executive vice president of
marketing at Reuters Americas.
Mr. Bunyan has also consulted for a number of venture-funded
firms in wireless and other industries. Earlier in his career,
he held senior positions with McGraw-Hill/Standard & Poor's and
managed a marketing communications firm. He is a graduate of
Stanford University.
Benny Einhorn, currently president of EMEA and chief marketing
officer at Comverse Inc., will continue as president of EMEA,
and will focus his efforts on managing operations in this
important region, while working with Mr. Bunyan to transition
the marketing function.
Also, as announced on Sept. 4, 2007, Cynthia Shereda joined
Comverse Technology as executive vice president, general counsel
and corporate secretary. Reuven Friedman, general counsel at
Comverse Inc., reports to both Ms. Shereda and Mr. Tchwella.
Ms. Shereda has more than 20 years experience in the legal and
accounting professions. Recently, she was executive vice
president, chief legal officer and secretary at ATMI Inc., a
semiconductor materials company, and prior to that, served as
transaction and finance counsel at General Electric, focusing on
mergers, acquisitions and divestitures. In addition, she held a
variety of positions in securities and M&A law, and as a
certified public accountant, in public and private accounting.
She holds a J.D. from the University of Texas and a B.S. from
New York University.
Mr. Dahan said, "We welcome John and Cynthia to our team,
confident that they will be key contributors to our efforts to
achieve operational excellence and maximize shareholder return.
John is a proven marketing performer with deep knowledge of the
telecom business. He will support our management team as we
pursue our goal of making Comverse a more agile, market-driven
company. Cynthia is an accomplished executive, with experience
in both the legal and accounting fields, with a background that
is well-suited to Comverse's challenges and opportunities."
About Comverse Technology Inc.
Comverse Technology, Inc. (NASDAQ: CMVT) --
http://www.comverse.com/-- provides software and systems that
enable network-based multimedia enhanced communication and
billing services. Over 450 communication and content service
providers in more than 120 countries use Comverse products
to generate revenues, strengthen customer loyalty and improve
operational efficiency.
Comverse has offices all over the world, including Indonesia,
Malaysia and the Philippines.
* * *
As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services kept its 'BB-' corporate
credit and senior unsecured debt ratings on New York-based
Comverse Technology Inc. on CreditWatch with negative
implications, where they were placed on March 15, 2006.
FREEPORT-MCMORAN: Moody's Revises Outlook to Positive
-----------------------------------------------------
Moody's Investors Service revised Freeport-McMoRan Copper & Gold
Inc.'s and Phelps Dodge's outlooks to positive and affirmed all
of Freeport's and Phelps Dodge's other ratings.
The ratings reflect the overall probability of default of
Freeport, to which Moody's assigns a PDR of Ba2. The change in
outlook reflects the very strong earnings and cash flow of
Freeport in the current metals market, Freeport's use of free
cash flow to reduce debt since the acquisition of Phelps Dodge,
and Moody's assumption that free cash flow will be sufficient to
permit repayment of much of the company'sUS$2.45 billion Term
Loan A over the next two to three quarters.
The Ba2 corporate family rating reflects Freeport's high debt
level of aboutUS$11.3 billion, including Moody's adjustments,
the high concentration in copper and resultant variability in
earnings and cash flow, significant capital expenditures, and a
high level of reliance on the Grasberg mine in Indonesia. The
Ba2 rating favorably considers the company's leading positions
in copper and molybdenum, a significant amount of gold
production, the low cost, long-life reserves at PT-FI, and
improved operating and political diversity.
Outlook Actions:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Outlook: Changed To positive from stable
Issuer: Phelps Dodge Corporation
-- Outlook: changed to positive from stable
Ratings affirmed:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating: Ba2
-- Probability of Default Rating: Ba2
-- US$0.5 billion Senior Secured Revolving Credit facility,
Baa2, LGD1, 2%
-- US$1 billion Senior Secured Revolving Credit Facility,
Baa3, LGD2, 17%
-- US$2.45 billion Senior Secured Term Loan A, Baa3, LGD2,
17%
-- US$339.7 million 6.875% Senior Secured Notes due 2014,
Baa3, LGD2, 17%
-- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80%
Issuer: Phelps Dodge Corporation
-- US$107.9 million 8.75% Senior Notes due 2011, Ba1, LGD3,
36%
-- US$115 million 7.125% Senior Notes due 2027, Ba1, LGD3,
36%
-- US$150 million 6.125% Senior Notes due 2034, Ba1, LGD3,
36%
-- US$193.8 million 9.50% Senior Notes due 2031, Ba1, LGD3,
36%
Moody's last rating action on Freeport was to assign a Baa3
rating to its Term Loan A and upgrade the Phelps Dodge notes to
Ba1 in July 2007.
Freeport-McMoRan Copper & Gold Inc. is a Phoenix based producer
of copper, gold and molybdenum and had revenue in 2006 of
US$5.8 billion.
PERUSAHAAN LISTRIK: Moody's Ups Corporate Family Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B1 the
corporate family rating and senior unsecured bond rating of PT
Perusahaan Listrik Negara. At the same time, PT Moody's
Indonesia has upgraded to Aa2.id from A1.id PLN's national scale
rating. This rating action follows Moody's decision to upgrade
to Ba3 from B1 the Indonesian government's long-term foreign-
currency and local-currency ratings. The rating outlook is
stable, consistent with the outlook on the government ratings.
"Given PLN's 100% ownership by the Ministry of State-Owned
Enterprises, its strategic importance as Indonesia's only
vertically integrated electricity utility, as well as the
ongoing government support through subsidies to ensure its
financial viability and operational soundness, Moody's considers
PLN's rating to be closely integrated with, and strongly linked
to, the government's credit quality," says Moody's lead analyst
for the company, Jennifer Wong, adding "Accordingly, an upgrade
in the rating of the Indonesian government led to an upgrade in
PLN's rating."
PT Perusahaan Listrik Negara is an Indonesian state-owned
vertically integrated electricity utility with a generation
capacity of over 22,000MW. It is a monopoly operator of
transmission and distribution networks and is the country's
largest electricity producer. The government - represented by
the Ministry of State-Owned Enterprises (MSOE) - has complete
ownership.
Moody's National Scale Ratings are not intended to be globally
comparable. Moody's also emphasizes that its National Scale
Ratings are not opinions on absolute default risk. In this
respect, they are different to the Moody's global scale ratings
which have been assigned to Indonesian or other national
institutions, and which do not carry the ".id" suffix. Only
Moody's global scale ratings are directly comparable to the
Moody's global ratings assigned elsewhere in the world, and they
also address absolute default risk.
MGTI FINANCE: Moody's Upgrades Sr. Secured Bond Rating to Ba2
-------------------------------------------------------------
Moody's Investors Service has upgraded MGTI Finance Company
Ltd's senior secured foreign currency bond rating to Ba2 from
Ba3. The bond is guaranteed by P.T. Mitra Global Telekomunikasi
Indonesia and MGTI Finance B.V.
This rating action follows Moody's decision to upgrade
Indonesia's Ba3 foreign currency sovereign ceiling to Ba2. The
rating outlook is stable, consistent with the outlook on the
country foreign currency ceiling.
At the same time, Moody's has affirmed the Ba1 local currency
corporate family rating of MGTI with a stable outlook.
Established in 1995, MGTI was the original operator of fixed
line services in Central Java and Yogyakarta, Indonesia. MGTI
owns the KSO territory IV concession, which provides the company
ownership over the fixed telecommunication lines in central
Java. Under the KSO agreement, the operating rights for KSO IV
are held by P.T. Telkomunikasi Indonesia, Indonesia's incumbent
fixed-line telecommunications service provider.
=========
J A P A N
=========
ALL NIPPON: To Take JPY66-Billion Charge Due to Depreciation
------------------------------------------------------------
All Nippon Airways Co. said that it will take a charge of
JPY66 billion (US$565 million) in the current fiscal year due
largely to a change in the way it depreciates its aircraft and
other equipment, Bruce Stanley of the Wall Street Journal
reports.
However, the airline said that an extraordinary gain from a sale
of hotels will more than offset the expected loss.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 2, All Nippon had a one-time gain of JPY130 billion from
the sale of 13 hotels to Morgan Stanley in July. That covered
an JPY11.1-billion surge in fuel costs and a drop in the
percentage of seats occupied by paying passengers.
Moreover, All Nippon said that its earlier JPY64-billion annual
net income forecast remains, WSJ notes.
According to WSJ, All Nippon said it would apply JPY22.3 billion
of the charge to its results for the first half of the year
ending March 31, 2008, while the remainder of the charge will be
booked in the second half.
Most of the nonrecurring charge -- JPY50 billion -- resulted
from the airline's decision to harmonize the various schedules
at which it has depreciated its planes, parts and related
equipment in the past. ANA made this accounting change at its
own discretion in order simplify its bookkeeping, WSJ cites
company spokesman Rob Henderson as saying.
The remaining JPY16 billion of the nonrecurring charge for this
year relates to pensions and other costs, Mr. Henderson told
WSJ.
About All Nippon Airways
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The Troubled Company Reporter-Asia Pacific reported on April 20,
2007, that Moody's Investors Service placed the Ba1 senior
unsecured debt ratings of All Nippon Airways Co., Ltd. under
review for possible upgrade. The rating action reflects ANA's
high and stable profitability despite the ongoing price hikes of
aircraft fuel, as well as Moody's view that the company's
financial flexibility is likely to be further improved by its
recently announced asset disposition related to its hotel
business.
ALL NIPPON: Mulls Joint Issue of Credit Card with Mizuho
--------------------------------------------------------
All Nippon Airways Co. is considering jointly issuing credit
cards with Mizuho Financial Group Inc., Chris Cooper writes for
Bloomberg News.
The tie-up would allow points earned on the card to be exchanged
for flights, All Nippon spokeswoman Kyoko Yamane told Bloomberg.
According to report, the airline may make an announcement this
week.
Bloomberg recounts that All Nippon disclosed earlier this month
that it was easing restrictions on mileage cards to allow
passengers to redeem points three years after earning them.
Rival Japan Airlines Corp. announced earlier that it will
partner with Aeon Co. to link its frequent-flier mileage system
to the retailer's electronic money card.
All Nippon is improving its mileage service as it loses domestic
passengers, along with Japan Air, to smaller rival Skymark
Airlines Inc., Japan's largest discount carrier, Mr. Cooper
relates.
About All Nippon Airways
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded in
1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The Troubled Company Reporter-Asia Pacific reported on April 20,
2007, that Moody's Investors Service placed the Ba1 senior
unsecured debt ratings of All Nippon Airways Co., Ltd. under
review for possible upgrade. The rating action reflects ANA's
high and stable profitability despite the ongoing price hikes of
aircraft fuel, as well as Moody's view that the company's
financial flexibility is likely to be further improved by its
recently announced asset disposition related to its hotel
business.
IHI CORP: To End Cement Plant Construction Business Abroad
----------------------------------------------------------
IHI Corp. plans to pull out of the overseas cement plant
construction business following a money-losing project in Saudi
Arabia, Japan Times reports, citing IHI President Kazuaki Kama.
In an interview with Kyodo News, Mr. Kama said they have decided
not to continue the business abroad after completing the
construction of a cement plant in Vietnam.
Mr. Kama's remarks follow IHI's announcement in late September
that it is likely to incur a group operating loss of
JPY17 billion for the business year to March 31, 2008, instead
of a profit of JPY40 billion as projected in May.
Recurring loss is also expected to be at JPY27 billion, against
the previously projected profit of JPY30 billion, the Troubled
Company Reporter-Asia Pacific reported on Oct. 12, 2007.
According to the TCR-AP, IHI Corp. said it will put off the
announcement of its April-September earnings originally slated
for November 5. The TCR-AP noted that it will take longer than
anticipated for IHI to examine why its energy plant engineering
operations incurred heavy losses.
Japan Times explains that one of the main reasons for the
drastic downward revision are serious problems at a cement plant
IHI is building in Saudi Arabia. IHI is expecting a negative
impact on its financial standing of about JPY13 billion from the
entire overseas cement plant business.
Mr. Kama said the company has become more cautious about tapping
into new markets abroad in the wake of a series of project
delays and overseas labor costs that exceed expectations in
connection with its energy and plant operations, the report
notes. He added that IHI will not do business in countries or
clients that it has no experience with.
Japan Times cites Mr. Kama as stating that they will instead
focus on plant projects in Algeria and other countries where the
company has developed a strong foothold.
About IHI Corp.
Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp
-- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a
Japan-based company engaged in six business segments. The
Logistics and Steel segment offers concrete products, automated
storages, loaders and others. The Machinery segment offers
plastic processing machines, industrial boilers, pumps and
others. The Energy Plant segment develops waste incineration
facilities, nuclear power plants, thermal power plants and
process plants, water treatment plants, renewable power plants
and other facilities. The Aerospace segment produces aircraft
engine parts and provides aircraft maintenance services. The
Ship and Offshore segment builds container ships, bulk carriers,
tankers and other ships, as well as develops marine equipment
and machinery and provides design and engineering services. The
Others segment provides real estate, financial and insurance
services.
The Troubled Company Reporter-Asia Pacific reported on July 13,
2007, that Standard & Poors Rating Agency affirmed its BB+ long-
term corporate credit rating with a positive outlook.
JAPAN AIRLINES: Three Firms Eye Credit Card Unit
------------------------------------------------
Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial
Group Inc. and Credit Saison Co. are eyeing Japan Airlines
Corp.'s credit card unit, JALCard Inc., Bloomberg News reports,
citing five people familiar with the matter.
JAL asked local and overseas firms last week to submit
acquisition proposals by Oct. 31, the sources, who refused to be
identified, told Bloomberg.
According to the sources, Credit Saison plans to tie up with
Mizuho Financial Group Inc. to buy a stake in JALCard, which has
2 million cardholders.
Bloomberg notes that JAL President Haruka Nishimatsu is selling
businesses not related to aviation in order to cut the carrier's
debt by 12% this fiscal year. The cardholders spend an average
of JPY860,000 a year, making them attractive to the Japanese
banks, which face increasing competition from Citigroup Inc. and
HSBC Holdings PLC.
"JALCard has high-income customers," Bloomberg quotes Credit
Suisse Group analyst Osuke Itazaki as saying. "A sale of the
unit would give Japan Airlines funds to either pay down debt or
buy new planes."
JAL has appointed Mizuho Securities Co. as financial adviser to
the transaction, the sources said. The airline hasn't decided
on whether to sell the entire unit and has asked potential
bidders for proposals on the size of the stake and possible
future cooperation, they further relayed to Bloomberg.
According to the report, JAL spokesman Stephen Pearlman, Mizuho
spokeswoman Masako Shiono, Mitsubishi UFJ's spokesman Takashi
Miwa, Credit Saison's spokesman Akira Miyashita and Sumitomo
Mitsui spokesman Tetsu Morishima all declined comment regarding
the bidding for JALCard.
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.
* * *
As 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.
As 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.
Moody's said 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.
=========
K O R E A
=========
ARROW ELECTRONICS: Earns US$99.2 Mil. in Quarter Ended June 30
--------------------------------------------------------------
Arrow Electronics Inc. reported second quarter 2007 net income
of US$99.2 million on sales of US$4.04 billion, compared with
net income of US$92.8 million on sales of US$3.44 billion in the
second quarter of 2006. Sales increased 17% year over year.
Excluding certain items impacting the comparability of the
second quarters of 2007 and 2006, on a non-GAAP basis, net
income for the quarter ended June 30, 2007, would have been
US$101.5 million and net income for the quarter ended June 30,
2006, would have been US$94.7 million.
"We continue to execute well on our strategic initiatives as
evidenced by our record results. We achieved record sales,
generated an impressive level of cash flow, and managed our
asset base to a record low level of working capital to sales,"
said William E. Mitchell, chairman, president and chief
executive officer. "We have made strong strategic moves over
the last 18 months that have resulted in a more diverse revenue
stream, a broader geographic footprint, and increased
opportunities in fast-growing product segments."
Global enterprise computing solutions sales of US$1.27 billion
increased 78% sequentially and 103% year over year on strong
growth in industry standard servers, storage, software,
and services. Growth was aided by the impact of the
acquisitions of KeyLink Systems Group, Alternative Technology
Inc. and the storage and security distribution business of
InTechnology plc.
"Our strategic transformation in global ECS is producing
impressive results as we grew sales at almost four times the
rate at which the market is expected to grow. Global ECS now
represents approximately one-third of our business, further
diversifying and reducing the volatility of our revenue stream.
By further executing on significant cross-selling opportunities,
pursuing our strategic focus on the mid-market and leveraging
our unique software capabilities, we expect to continue to
outgrow the market. With increased scale, scope and
flexibility, our strategy is proving out every day with our
customers and vendors," said Mitchell.
Global components sales of US$2.77 billion were essentially flat
with the first quarter on fewer shipping days. Sales decreased
2% year over year as the well-publicized weakness within the
large EMS customer base continued in North America and Asia
Pacific.
The company's results for the second quarter of 2007 and 2006
include the items outlined below that impact their
comparability:
-- during the second quarter of 2007, the company recorded a
net restructuring charge of US$2.9 million, primarily
related to initiatives taken by the company in the period
to improve operating efficiencies.
-- during the second quarter of 2007, the company recorded an
integration charge of US$500,000, primarily related to the
acquisition of KeyLink.
-- during the second quarter of 2006, the company recorded a
US$3.1 million restructuring charge.
Arrow's net income for the first six months of 2007 was
US$195.5 million on sales of US$7.54 billion, compared with net
income of US$174.3 million on sales of US$6.63 billion in the
first six months of 2006.
At June 30, 2007, the company's consolidated balance sheet
showed US$7.38 billion in total assets, US$4.13 billion in total
liabilities, and US$3.25 billion in total shareholders' equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?244b
About Arrow Electronics
Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- provides products, services and
solutions to industrial and commercial users of electronic
components and computer products. Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.
The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.
On March 29, 2007, Moody's Investors Service affirmed the
(P)Ba1, (P)Ba2 and (P)Baa3 Shelf Registration Ratings to Arrow
Electronics, Inc.'s subordinated, preferred, and senior
unsecured stocks respectively. Moody's also affirmed the Baa3
senior long-term debt rating of Arrow Electronics and revised
the outlook to positive from stable.
DURA AUTOMOTIVE: Wants John Knappenberger Separation Pact Okayed
----------------------------------------------------------------
DURA Automotive Systems Inc. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware to approve a
separation agreement between Dura Automotive Systems, Inc., and
former Vice President of Administration, Quality and Materials
John J. Knappenberger.
Mr. Knappenberger joined the company approximately 14 years ago.
Since December 1995, Mr. Knappenberger has served as the Vice
President of Administration and the Vice President of Quality
and Materials of Dura. Mr. Knappenberger also assumed
responsibility for the administration of the Debtors'
purchasing, sales and marketing operations in June 1997.
Mr. Knappenberger also managed the Debtors' information
technology operations in March 1999, including the Debtors'
Enterprise Resource Planning and QAD Implementation Initiative -
- a software program designed to centralize and streamline the
Debtors' administrative functions and to unify the Debtors'
time-worked tracking and attendance system and the Debtors'
manufacturing tracking system. This, by centralizing and
streamlining many of the Debtors' administrative functions,
enables the Debtors to more closely track projected expenses and
manufacturing activities.
The Debtors and Mr. Knappenberger recently agreed to end his
employment with the Debtors, and agreed to a Separation
Agreement. Its pertinent terms are:
(a) Effective Date: November 1, 2007.
(b) Consideration:
(i) The Debtors agreed to pay Mr. Knappenberger,
pursuant to their general policy, an amount equal to
the accrued, but unused, vacation time earned during
his employment with the Debtors, to the extent
permitted by applicable bankruptcy and
non-bankruptcy law; and
(ii) The Debtors agreed to pay Mr. Knappenberger an
additional US$125,000 in exchange for the
performance of his various Non-Competition, Non-
Solicitation, Non-Disclosure and Non-Disparagement
obligations.
(c) Non-Compete, Non-Solicitation, Non-Disclosure, and Non-
Disparagement Obligations.
(i) Mr. Knappenberger agreed, separately, to abide by
the Non-Competition, Non-Disparagement,
Non-Solicitation and Non-Disclosure provisions of
the Separation Agreement, through November 1, 2008.
Specifically,
(A) Non-Competition -- Mr. Knappenberger will not,
directly or indirectly,
(1) become employed by, consult for, provide or
arrange financing for, or own any interest
in, any company that is in the same business
or substantially the same business as the
Company and its affiliates and is a direct
competitor of the Company or its affiliates;
provided, however, that Mr. Knappenberger
may own not more than five percent of any
class of publicly traded securities of any
legal entity engaged in a Competing
Business; or
(2) participate in any manner in the Chapter 11
bankruptcy cases involving the company;
provided, however, that, consistent with his
confidentiality obligations under the
agreement, Mr. Knappenberger may be employed
by parties with an interest in the company's
Chapter 11 cases so long as his duties do
not involve the company; provided further
that the prospective employer affirmatively
screens him from any and all matters
involving the company or its Chapter 11
cases during the duration.
(B) Non-Solicitation -- For the Duration,
Mr. Knappenberger will not directly or
indirectly through another person or entity,
other than in the ordinary course of his
employment with the company or any of its
affiliates:
(1) induce or attempt to induce any employee of
the company or any affiliate to leave the
employ of the company or the affiliate, or
in any way interfere with the relationship
between the company or any affiliate and any
employee thereof, or
(2) any affiliate at any time during the 12-
month period immediately preceding the date
of the intended hire or
(3) induce or attempt to induce any customer,
supplier, licensee, licensor or other
business relation of the company or any
affiliate to cease doing business with the
company or the affiliate, or in any way
interfere with the relationship between any
such customer, supplier, licensee, licensor
or other business relation and the Company
or any affiliate; including, without
limitation, making any negative or
disparaging statements or communications
regarding the company or its affiliates.
(C) Non-Disparagement -- For the Duration,
(1) Mr. Knappenberger will not make any oral or
written statement or publication with
respect to the company or its affiliates or
any stockholders, directors,officers,
employees, lenders or their respective
affiliates, which disparages or denigrates,
or could reasonably be interpreted as,
disparaging or denigrating, the company or
any of its affiliates or any stockholders,
directors, officers, employees, lenders or
their respective affiliates.
(2) the company's officers will not directly or
indirectly, make any oral or written
statement or publication with respect to the
Employee, which disparages or denigrates, or
could reasonably be interpreted as,
disparaging or denigrating, the Employee.
(D) Non-Disclosure -- Mr. Knappenberger will keep in
strict confidence, and will not, at any time,
disclose, furnish, disseminate, make available,
use or suffer to be used in any manner, any
confidential information of the company;
provided, however, that he will not be
precluded from disclosing Confidential
Information pursuant to, or as required by, law,
subpoena, judicial process or to any
governmental agency in connection with any
investigation or proceeding of the agency.
(E) Upon the Effective Date, Mr. Knappenberger will
deliver to the company all memoranda, notes,
plans, records, reports, computer files, disks
and tapes, printouts and software and other
documents and data, and their copies embodying
or relating to Confidential Information or the
business of the company or any affiliates which
Mr. Knappenberger may then possess or have under
his control.
About Dura Automotive
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- 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 industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- 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. Del. 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.
The Debtors' exclusive plan-filing period expired on Sept. 30,
2007. On Aug. 22, 2007, the Debtors' filed their Plan of
Reorganization and the Disclosure Statement explaining that Plan
was approved on Oct. 3, 2007. The hearing to consider
confirmation of the plan is set for Nov. 26, 2007. (Dura
Automotive Bankruptcy News, Issue No. 34 Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
===============
M A L A Y S I A
===============
MEGAN MEDIA: Names Christopher Tan Chie Kiong as CEO
----------------------------------------------------
Megan Media Holdings Bhd appointed Christopher Tan Chie Kiong as
Deputy Chief Executive Officer to manage the company's affairs
with effect from October 16, 2007.
Mr. Tan is a graduate of The Australian National University and
is professionally certified in Production and Inventory
Management by the American Production and Inventory Control
Society. Prior to joining the company, he was with Intel
Corporation for 18 years and he held a number of managerial
positions with the last position as Country Manager (Sales and
Marketing) Malaysia.
Meanwhile, the company also disclosed that Dato' Dr. Hj Mohd
Adam Bin Che Harun was redisignated from "Director and Chief
Executive Officer" to "Non-Independent Non-Executive Director."
Megan Media Holdings Berhad' s principal activities are
manufacturing and trading data storage media products such as
Computer diskettes, video cassette tapes, compact disc
recordable (CD-R's) and digital versatile disc recordable (DVD-
R's). The Group operates in Malaysia, Singapore and other
countries.
The Troubled Company Reporter-Asia Pacific reported on June 11,
2007, that the Rating Agency Malaysia has downgraded the long-
term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman
Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3
(with a negative outlook) to D.
The BaIDS carries a corporate guarantee from MTSB's holding
company, Megan Media Holdings Berhad. Concurrently, RAM has
lifted the Rating Watch (with a negative outlook) that had been
placed on MTSB on May 9, 2007, following the failure of MTSB and
MJC (Singapore) Pte Ltd, another wholly owned subsidiary of
Megan Media, to repay their trade facilities amounting to
MYR47.36 million.
On June 19, 2007, the company was classified as a PN17 company,
and was given eight months to submit a substantive plan to
regularize its financial condition.
MYCOM BERHAD: Acquires Two Dormant Companies
--------------------------------------------
Mycom Berhad disclosed with the Bursa Malaysia Securities Bhd
that it acquired two dormant companies called Allied Parade Sdn
Bhd and Asas Galian Sdn Bhd for of MYR2.00 each.
Allied Parade and Asas Galian PSB were incorporated on Aug. 28,
2007, and September 11, 2007, respectively. Both companies have
authorized capital of MYR100,000 divided into 100,000 ordinary
shares of MYR1.00 each and an issued and paid share capital of
MYR2.00 each.
Allied Parade will be 58:42 held by KH Estates Sdn Bhd and
Olympia Properties Sdn Bhd respectively pursuant to the
consortium agreement dated February 14, 2003.
Asas Galian will be wholly owned by Allied Parade and its
intended business will be in property development and property
investment.
Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad --
http://www.mycom.com.my/-- is engaged in the provisions of
granite quarry services, manufactures and sells latex rubber
thread, tape, plywood, laminated board and sawn timber,
cultivates oil palm fruits, and develops property. The company
is also involved in hotel operation, provision of management and
financial services and investment holding. Operations of the
Group are carried out in Malaysia and South Africa.
Mycom is in the advanced stage of negotiations to settle its
foreign debts. The proposed capital reduction and consolidation
by Mycom, as well as the proposed share premium account
reduction, will reduce the company's accumulated losses.
SOLUTIA INC: Treatment of Claims Under Revised Plan
---------------------------------------------------
Under the Consensual Plan filed by Solutia Inc. and its debtor-
affiliates with the U.S. Bankruptcy Court for the Southern
District of New York on Oct. 15, 2007, all Claims and Equity
Interests, except Administrative Expense Claims and Priority Tax
Claims, are classified in 20 classes for purposes of voting and
future distributions.
According to Jeffry N. Quinn, chairman, president and chief
executive officer of Solutia, Inc., the proposed recoveries are
"projected" recoveries and may change based on certain
adjustments in Allowed Claims and available proceeds. The
recovery calculations, he explained, are based on these
assumptions:
(i) a midpoint implied equity value for Reorganized Solutia
of approximately US$1,200,000,000;
(ii) a General Unsecured Claims pool of US$342,000,000 -- the
midpoint of Solutia's estimated range for the ultimate
aggregate amount of Allowed General Unsecured Claims;
(iii) an exercise price in the Rights Offering at a 33.33%
discount to Solutia's Valuation;
(iv) full subscription to the Rights Offering by participating
parties;
(v) full subscription by the Backstop Group to the Backstop
Pool; and
(vi) that all recoveries are calculated net of the cost to
acquire rights.
The Classes of Claims are:
Estimated Estimated
Aggregated Percentage
Class Designation Treatment Amount Recovery
----- ----------- --------- --------- ---------
1 Priority
Non-Tax Claims Unimpaired; US$2,200,000 100%
deemed to accept
2 Secured Claims Unimpaired; 40,000,000 100%
to
50,000,000
3 Senior Secured Impaired; 209,900,000 100%
Note Claims entitled to vote
4 Convenience Unimpaired; 1,000,000 100%
Claims deemed to accept to
2,500,000
5 CPFilms Claims Impaired; 8,400,000 100%
entitled to vote
6 NRD Claims Unimpaired; N/A -
deemed to accept
7 Insured Claims Unimpaired; N/A -
deemed to accept
8 Tort Claims Unimpaired; N/A -
deemed to accept
9 Legacy Site Unimpaired; N/A -
Claims deemed to accept
10 Equity Unimpaired; N/A N/A
Interests in deemed to accept
all Debtors
other than
Solutia
11 Monsanto Claim Impaired; - -
entitled to vote
12 Noteholder Impaired; 455,400,000 88.4%
Claims entitled to vote
13 General Impaired; 317,000,000 83.1%
Unsecured entitled to to
Claims vote 367,000,000
14 Retiree Claim Impaired; 35,000,000 69.8%
entitled to vote
15 Pharmacia Impaired; N/A N/A
Claims entitled to vote
16 Non-Debtor Impaired; 108,000,000 40%
Intercompany entitled to vote
Claims
17 Debtor Impaired; 2,440,000,000 0%
Intercompany entitled to vote
Claims
18 Axio Claims Impaired; N/A 0%
deemed to reject
19 Security Claims Impaired; Pro Rata Share -
entitled to vote
20 Equity Impaired;
Interests in entitled to vote 0.01/share -
Solutia
Pursuant to Section III.B.7 of the Consensual Plan, the NRD
Claims will be reinstated and paid in accordance with the terms
of the Consensual Plan and the Monsanto Settlement Agreement.
Section III.B.8, on the other hand, provides that the Tort
Claims will be unaffected by Solutia's Chapter 11 cases and will
be resolved in the ordinary course of business.
Monsanto is taking financial responsibility for the Legacy Site
Claims under the Consensual Plan.
Pursuant to the Consensual Plan and the Monsanto Settlement
Agreement, Pharmacia will receive a limited indemnity from
reorganized Solutia and a limited release from the Debtors,
Reorganized Solutia and their estates for claims arising before
the Petition Date; Holders of Claims or Equity Interests; and
the Retirees Committee.
Holders of Security Claims will receive their Pro Rata share of
the Distribution provided to Holders of Equity Interests in
Class 20.
Solely for purposes of tabulating votes to accept or reject the
Plan in accordance with Section 1126(d) of the bankruptcy Code,
each share of Solutia's common stock will be deemed to be worth
US$0.01.
Mr. Quinn states that the Plan Distributions will be made only
to Holders of Allowed Claims and certain Holders of common stock
in Solutia. Holders of disputed claims will receive no
distributions unless and until their claims become Allowed. He
adds that a condition to the Effective Date is that Solutia
establish a "Disputed General Unsecured Claims Reserve."
According to Mr. Quinn, the reserve cannot be established and
initial distributions to Holders of Allowed General Unsecured
Claims and 2027/2037 Notes Claims cannot be made until all
relevant unliquidated and disputed claims are estimated or fixed
for distribution purposes. There are currently 15 unliquidated
claims classified as General Unsecured Claims, excluding claims
that Solutia believes are Tort Claims, Legacy Site Claims,
Retiree Claims or Claims in other Classes that are not subject
to the Disputed General Unsecured Claims Reserve.
In addition, Mr. Quinn notes, there are 62 General Unsecured
Claims in the asserted amount of US$634,170,000, which Solutia
opposes for various reasons. The number excludes claims that
Solutia believes are Tort Claims, Legacy Site Claims, Retiree
Claims or Claims in other Classes that are not subject to the
Disputed General Unsecured Claims Reserve.
While it is in the process of attempting to resolve each of
these Claims, Solutia projects that if the Effective Date occurs
on December 31, 2007, the amount it would need to reserve for
the Claims is US$40,460,000, comprised of approximately
US$20,000,000 on account of Unliquidated Claims and
approximately US$20,000,000 for other disputed General Unsecured
Claims.
Mr. Quinn says the estimate does not include the additional
General Unsecured Claims related to the "Dickerson Plaintiffs"
or the Senior Secured Notes, if any. The Dickerson Claim, which
was asserted for US$290,000,000, was estimated by Solutia at
US$0.
The Unimpaired Classes 1, 2, 4, 6, 7, 8, 9, and 10 will be paid
in cash, in full, on the Effective Date, will be reinstated or
will otherwise not be impaired by the terms of the Amended Plan.
Holders of Claims in those Classes are deemed to accept the
Amended Plan. Claims in Class 16 will receive a distribution
under the Amended Plan, and its holders are deemed to accept the
Amended Plan. Claims in Class 17 will not receive a
distribution and its holders are deemed to accept the Amended
Plan.
The Impaired Classes 3, 5, 11, 12, 13, 14, 15, 19, and 20 are
entitled to vote on the Amended Plan. Claims in Class 3 will be
satisfied, as determined by the Court, on the Effective Date,
but are deemed impaired for voting purposes. Class 5 Claims
will be paid in cash in full on the Effective Date, but are
deemed impaired for voting purposes.
Claims in Classes 11, 12, 13, 14, 15, and 19 will receive
distribution of shares of New Common Stock or other
distributions under the terms of the Amended Plan. Eligible
holders of Solutia common stock will receive distributions of
shares of New Common Stock, warrants, Equity Purchase Rights or
Claim Transfer Rights.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.
Saflex is a registered trademark of Solutia Inc.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed US$2,854,000,000 in assets and US$3,223,000,000 in debts.
Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims
and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Disclosure Statement hearing began on
July 10, 2007, and is continued to Oct. 19, 2007. (Solutia
Bankruptcy News, Issue No. 101; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
====================
N E W Z E A L A N D
====================
FML NO 1: Commences Liquidation Proceedings
-------------------------------------------
On October 1, 2007, FML No 1 Ltd. went into liquidation.
Creditors who were not able to file their proofs of debt by the
October 19 due date will be excluded from the company's dividend
distribution.
The company's liquidator is:
Richard Burge
Sherwin Chan & Walshe
Chartered Accountants & Business Advisers
New Zealand
ICARUS TOTAL: Court to Hear Wind-Up Petition on Oct. 29
-------------------------------------------------------
On August 1, 2007, the Commissioner of Inland Revenue filed a
petition to have Icarus Total Hair Care Ltd.'s operations wound
up.
The petition will be heard before the High Court of Wellington
on October 29, 2007, at 10:00 a.m.
The CIR's solicitor is:
Rachel L. Scott
c/o Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0416
Facsimile:(07) 959 7614
KHYBER AUTOS: Fixes November 30 as Last Day to File Claims
----------------------------------------------------------
On September 22, 2007, Iain McLennan was appointed liquidator of
Khyber Autos Ltd.
Mr. McLennan is accepting creditors' proofs of debt until
November 30, 2007.
The Liquidator can be reached at:
Iain McLennan
McLennan Associates, Insolvency Advisers
Level 5, 80 Greys Avenue, Auckland
New Zealand
PO Box 5121, Wellesley Street
Auckland
New Zealand
Telephone:(09) 303 9512
Facsimile:(09) 303 0508
KITOP NEW ZEALAND: Appoints Mason and Meltzer as Liquidators
------------------------------------------------------------
Karen Betty Mason and Jeffrey Philip Meltzer were named
liquidators of Kitop New Zealand Ltd. on September 26, 2007.
Messrs. Mason and Meltzer require the company's creditors to
file their proofs of debt by October 26, 2007.
The Liquidators can be reached at:
Karen Betty Mason
Jeffrey Philip Meltzer
Meltzer Mason Heath, Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
L C PROPERTY: Court Sets Wind-Up Petition Hearing for Oct. 29
-------------------------------------------------------------
A petition to have L C Property Holdings Ltd.'s operations wound
up will be heard before the High Court of Christchurch on
October 29, 2007, at 10:00 a.m.
The petition was filed by the Commissioner of Inland Revenue on
September 5, 2007.
The CIR's solicitor is:
Kay S. Morgan
c/o Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
LYNX HORTICULTURAL: Fixes Oct. 30 as Last Day to File Claims
------------------------------------------------------------
On September 27, 2007, the shareholders of Lynx Horticultural
Systems (N.Z.)Ltd. appointed Lyle Richmond Irwin as the
company's liquidator.
Mr. Irwin is accepting creditors' proofs of debt until
October 30, 2007.
The Liquidator can be reached at:
Lyle Richmond Irwin
Prince & Partners
PO Box 3685, Auckland 1001
New Zealand
Telephone:(09) 379 5324
Facsimile:(09) 307 0778
e-mail: office@prince.co.nz
MIGA ENTERPRISES: Appoints Liquidator
-------------------------------------
On September 28, 2007, Danny Frew was appointed liquidator of
Miga Enterprises Ltd.
Creditors who were not able file their proofs of debt by the
October 18 due date will be excluded from the company's dividend
distribution.
The company's liquidator is:
Danny Frew
21A Manuka Road, Glenfield
Auckland
New Zealand
Telephone:(021) 728 574
NERDSVILLE LTD: Taps John Francis Managh as Liquidator
------------------------------------------------------
John Francis Managh was named liquidator of Nerdsville Ltd. on
September 27, 2007, through a special resolution passed on that
day by the shareholders.
The Liquidator can be reached at:
John Managh
50 Tennyson Street
PO Box 1022, Napier
New Zealand
Telephone/Facsimile: (06) 835 6280
NORTHSIDE BOXING: Creditors' Proofs of Debt Due on Oct. 30
----------------------------------------------------------
The creditors of Northside Boxing (2003) Ltd. are required to
file their proofs of debt by October 30, 2007, to be included in
the company's dividend distribution.
The company went into liquidation on September 27, 2007.
The company's liquidator is:
Grant Bruce Reynolds
c/o Reynolds & Associates Limited
Insolvency Practitioners
PO Box 259059, Greenmount
East Tamaki, Auckland
New Zealand
Telephone:(09) 522 5662
Facsimile:(09) 522 5788
=====================
P H I L I P P I N E S
=====================
ATOK-BIG WEDGE: Board Elects Lawyer as Asst. Corporate Secretary
----------------------------------------------------------------
Atok-Big Wedge Co. Inc.'s Board of Directors has appointed Atty.
Maria Lina Nieva S. Casal as Assistant Corporate Secretary.
Ms. Casal's appointment was approved during a regular meeting
held on Thursday, October 18.
Headquartered in Quezon City, Philippines, Atok Big Wedge Co.
Inc. was established and registered with the Securities and
Exchange Commission on Sept 4, 1931 primarily as a mining
company. After decades of mining, the company devolves into a
Holding Company with business in general investment, mining
related activities were spun off to its 100% wholly own
subsidiary, company Atok Gold Mining Co., Inc.
The company is exploring business ventures.
Going Concern Doubt
After auditing the company's financial statements for the year
ended December 31, 2006, Wilberto Sison at Tulio, Evangelista,
Lim & Co. raised significant doubt on the company's ability to
continue as a going concern due to the stoppage of its mining
operations.
The company also registered continued annual net losses:
PHP3.54 million in 2006, PHP3,508,592 in 2005 PHP3,729,041 in
2004 and PHP4,663,844 in 2003
BANGKO SENTRAL: Gov't Mulls Ways to Settle PHP40-Billion Debt
-------------------------------------------------------------
The National Government is mulling over its options to settle
PHP40-billion worth of unpaid debts to the Bangko Sentral ng
Pilipinas, including issuance of Treasury Bonds and increasing
deposits in the central bank, the Department of Finance told the
Philippine Star.
The PHP40-billion is the balance of the PHP50-billion required
from the government in the BSP's charter when it took over from
the Central Bank of the Philippines, PhilStar explains.
The BSP has been looking for financing in light of its losses
from the steady appreciation of the local currency against the
US dollar, the article relates.
The DOF said it has been postponing payment of its obligations
to the BSP because it sees the BSP's remittance of dividends to
the government as a sign of its financial health.
The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is
the central bank of the Republic of the Philippines. It was
established on July 3, 1993, pursuant to the provisions of the
1987 Philippine Constitution and the New Central Bank Act of
1993. BSP took over from the Central Bank of Philippines as the
country's central monetary authority. Bangko Sentral enjoys
fiscal and administrative autonomy from the National Government
in the pursuit of its mandated responsibilities.
The powers and functions of the Bangko Sentral are exercised by
the Bangko Sentral Monetary Board, the highest policy-making
body in the BSP.
Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B'
Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign
Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit
Rating.
Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior
Unsecured Debt Rating.
BANGKO SENTRAL: Singaporean Bank Sees Another 25-Basis Point Cut
----------------------------------------------------------------
The Development Bank of Singapore finds its likely that the
Bangko Sentral ng Pilipinas will cut its benchmark interest
rates by another 25 basis points before 2007 ends, the
Philippine Daily Inquirer reports.
However, the Singaporean bank expects no further cuts next year,
the Inquirer adds.
In a commentary dated October 15, DBS Group's research unit said
that there was little reason for the BSP's earlier cuts, but
admitted that there were advantages in the reduced rates. Costs
of special deposit accounts, DBS said, have been reduced in
light of the lower rates.
SDAs have been attracting funds and helped temper the peso's
rise, the article recounts.
DBS said it expects the US Federal Reserve Board to cut its
rates one more time by 25 basis points to 4.5% during its
meeting to be held on October 31. Reducing the gap between US
and local interest rates should help mute the more speculative
aspects of the local currency's appreciation, the bank added.
DBS then said that upward pressure on prices due to a fairly
robust growth by the economy would prevent the BSP from reducing
its interest rates.
As it expects the US Fed to increase interest rates again during
the third quarter next year, the DBS also expects the BSP to do
the same late next year.
The Bangko Sentral ng Pilipinas -- http://www.bsp.gov.ph/-- is
the central bank of the Republic of the Philippines. It was
established on July 3, 1993, pursuant to the provisions of the
1987 Philippine Constitution and the New Central Bank Act of
1993. BSP took over from the Central Bank of Philippines as the
country's central monetary authority. Bangko Sentral enjoys
fiscal and administrative autonomy from the National Government
in the pursuit of its mandated responsibilities.
The powers and functions of the Bangko Sentral are exercised by
the Bangko Sentral Monetary Board, the highest policy-making
body in the BSP.
Standard and Poor's Ratings Servoces gave Bangko Sentral a 'B'
Short Term Local Issuer Credit Rating, a 'BB-' Long-Term Foreign
Issuer Credit Rating, and a 'BB+' Long-Term Local Issuer Credit
Rating.
Moody's Investors Service gave Bangko Sentral a 'Ba1' Senior
Unsecured Debt Rating.
BAYAN TELECOMMS: Expects Landline Subscriber Base to Grow 10-15%
----------------------------------------------------------------
Bayan Telecommunications Holdings Corp. expects a 10%-15% annual
growth rate in subscribers for its wireless landline service
within the next two years, the Philippine Star reports.
Bayan's Wireless Landline service is expected to end this year
with 100,000 landline subscribers which will invigorate
BayanTel's landline subscriber service by 30%, company officials
say.
According to PhilStar, Bayantel's chief executive consultant,
Tunde Fafunwa, said that the success of its wireless landline
services "is proof that there is significant demand for basic
voice services." Of BayanTel's subscribers, 80% prefer
traditional desktip units which can rekindle people's affinity
for landlines, he added.
Bayan Telecommunications Holdings Corporation, which is 85.4%
owned by Benpres Holdings Corp. and the Lopez Group, was
incorporated on October 15, 1993. Bayan Telecommunications Inc.
-- http://www.bayantel.com.ph/-- is the operating arm of BTHC
and is formerly known as International Communications
Corporation. BayanTel is a telecommunications company offering
an extensive breadth of traditional links and circuitry as well
as cutting edge data and voice applications. BayanTel's
existing service areas in Metro Manila and Bicol, as well as its
local exchange service areas in the Visayas and Mindanao regions
combined, cover a population of over 25 million, nearly 33% of
the population of the Philippines. BayanTel has operations in
Japan and the U.K.
In a report on Aug. 15, 2007, the Philippine Star stated that
BayanTel, which has been under receivership since 2004, is
setting aside PHP760 million to PHP800 million in 2007 to pay
down debt, using internally-generated cash. It has so far paid
PHP2 billion out of its total debt of US$325 million.
The company has been undergoing rehabilitation since June 28,
2004. The rehabilitation plan is based on a sustainable debt
level of PHP17.13 billion, payable over 19 years. Some
creditors are appealing the lower court's decision.
CHIQUITA BRANDS: Fresh Express Acquires Verdelli Farms
------------------------------------------------------
Chiquita Brands International Inc.'s wholly owned subsidiary,
Fresh Express, has acquired privately held Verdelli Farms, one
of the premier regional processors of value-added salads,
vegetables and fruit snacks on the East Coast of the United
States. The company, which markets its products under the
Harvest Select and Verdelli Farms brands, operates in 10 states
from Massachusetts to Virginia. Verdelli Farms will be
integrated into Chiquita's Fresh Express unit.
"The acquisition of Verdelli Farms, with its focus on meeting
the needs of consumers for fresh, healthy and convenient foods,
superior food safety and strong customer relationships, is a
great fit within our sustainable growth strategy and an
excellent complement to our Fresh Express brand," said Fernando
Aguirre, chairman and chief executive officer of Chiquita Brands
International. "The acquisition accelerates our expansion into
the Northeast, where there is strong demand from the largest
U.S. concentration of value- added salads consumers, but where
the Fresh Express brand has been under- represented."
Mr. Aguirre continued, "We are also pleased that Dan, Mike and
Jen Verdelli, as well as other members of Verdelli Farms' strong
management team, will remain with the company following the
acquisition and offer leadership talent that is a good cultural
fit with our focus on innovative value-added products, food
safety, freshness, customer service and category development."
About Fresh Express
Fresh Express is the No. 1 brand of value-added salads, with a
total U.S. market share of approximately 47 percent. Through
this acquisition of Verdelli Farms' modern manufacturing
capabilities and efficient distribution capacity, Fresh Express
will be able to expand its share in the Northeast from
approximately 30% today and gain an effective platform for
growth in this important region. In addition, the acquisition
will allow Fresh Express to gain networkwide cost synergies in
distribution and logistics costs while achieving up to a two-day
improvement in the freshness of salads it delivers to customers
and consumers in the Northeast.
Harrisburg, Pa.-based Verdelli Farms is a third-generation,
family-owned business founded in 1924. The company employs
approximately 400 people and has annual revenues of
approximately US$80 million. In 2006, the company produced more
than 8 million cases of fresh salads, vegetables and fruit
snacks for more than 80 customers in 10 states from
Massachusetts to Virginia.
Fresh Express, a wholly owned subsidiary of Chiquita Brands
International, Inc., is the world's largest producer of fresh
salads. With a rich history that traces its roots back to 1926
and the beginnings of the fresh produce industry in Salinas,
Calif., where the company is headquartered, Fresh Express is
recognized as a leader in food safety and as the creator of the
ready-to-eat fresh salad category. Fresh Express is responsible
for a number of other important "firsts" in the fresh salad
category, including the first complete salad kit and the first
salad blend with multiple varieties of lettuces and greens.
About Chiquita
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads. The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama and the Philippines.
* * *
As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service Ratings affirmed these ratings on
Chiquita Brands International Inc.: (i) corporate family rating
at B3; (ii) probability of default rating at B3; (iii) US$250
million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%);
and (iv) US$225 million 8.875% senior unsecured notes due 2015
at Caa2 (LGD5, 89%). Moody's changed the rating outlook for
Chiquita Brands to negative from stable.
Troubled Company Reporter reported on May 4, 2007, that Standard
& Poor's Ratings Services placed its 'B' corporate credit and
other ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc. on CreditWatch with negative implications,
meaning that the ratings could be lowered or affirmed following
the completion of their review. Total debt outstanding at the
company was about US$1.3 billion as of March 31, 2007.
FEDDERS CORP: Committee Wants To Hire Brown Rudnick as Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors in Fedders Corp.
and its debtor-affiliates' Chapter 11 case asks permission from
the U.S. Bankruptcy Court for the District of Delaware to employ
Brown Rudnick Berlack Israels LLP as its counsel.
Brown Rudnick will:
a) assist and advise the Creditors' Committee in its
discussions with the Debtors and other parties in interest
regarding the overall administration of the cases;
b) represent the Creditors Committee at hearings to be held
before this Court and communicating with the Committee
regarding the matters heard and the issues raised as well
as the decision and consideration of this Court;
c) assist and advise the Creditors' Committee in its
examination and analysis of the conduct of the Debtors'
affairs;
d) review and analyze pleadings, orders, schedules, and other
documents filed and to be filed with this Court by
interested parties in these cases; advise the Creditors'
Committee as to the necessity, propriety, and impact of
the foregoing upon these cases; and consenting or
objecting to pleadings or orders on behalf of the
Committee, as appropriate;
e) assist the Committee in preparing applications, motion,
memoranda, proposed orders, and other pleadings as may be
required in support of positions taken by the Committee,
including all trail preparation as may be necessary;
f) confer with the professional retained by the Debtors and
other parties in interest, as well as with such other
professionals;
g) coordinate the receipt and dissemination of information
prepared by and received from the Debtors' professionals,
as well as information that may be received from other
professionals engaged by the Committee;
h) participate in such examinations of the Debtors and other
witnesses as may be necessary in order to anaylze and
determine the Debtors' assets and financial condition,
whether the Debtos have made any avoidable transfers of
property, or whether causes of action exist on behalf of
the Debtors' estates;
i) negotiate and formulate a plan of reorganization for the
Debtors; and
j) assist the Creditors' Committee generally in performing
such other services as may be desirable or required for
the discharge of the Committee's duties.
The Committee tells the Court that the firm's professionals
bill:
Professional/Designation Hourly Rate
------------------------ -----------
Robert J. Stark, Esq. $715
Attorneys $320 - $890
Paraprofessionals $190 - $275
The Committee assures the Court that the firm is "disinterested"
as that term is defined in Section 101(14) of the U.S.
Bankruptcy Code.
Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.
The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No.: 07-11182). Its Debtor-affiliates
filed for separate Chapter 11 cases. Norman L. Pernick, Esq. of
Saul, Ewing, Remick & Saul LLP represents the Debtors in their
restructuring efforts. When the Debtors filed for protection
from its creditors, it listed total assets of US$186,300,000 and
total debts of US$322,000,000.
The company has production facilities in the United States in
Illinois, North Carolina, New Mexico, and Texas and
international production facilities in the Philippines, China
and India.
FEDDERS CORP: Panel Taps Greenberg Traurig as Delaware Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditor in Fedders North
America Inc. and its debtor-affiliates' bankruptcy cases asks
the United States Bankruptcy Court for the District of Delaware
for permission to retain Greenberg Traurig LLP as its Delaware
counsel.
As the Committee's Delaware counsel, Greenberg Traurig will:
a. provide legal advice with respect to the Committee's
rights, powers and duties in these cases;
b. assist the lead counsel in preparing, filing and serving
all necessary applications, answers, response, objections,
orders, reports and other legal papers;
c. represent the Committee in any matters arising in the
cases including disputes or issues with the Debtors,
alleged secured creditors or other creditors or third
parties;
d. assist the Committee in it investigation and analysis of
the Debtors, including but not limited to, the review
and analysis of all pleadings, claims and plans of
reorganization that may be filed in these cases and any
negotiations or litigation that may arise out of or in
connection with the matters, operations and financial
affairs;
e. represent the Committee in all aspects of confirmation
proceedings; and
f. perform all other legal services for the Committee that
may be necessary or desrirable in these proceedings.
The firm's professionals and their compensation rates are:
Professionals Hourly Rates
------------- ------------
Donald J. Detweiler, Esq. $510
Victoria W. Counihan, Esq. $475
Dennis A. Meloro, Esq. $360
Elizabeth C. Thomas, Esq. $190
Designations Hourly Rates
------------ ------------
Shareholders $235-$570
Associates $130-$480
Legal Assistants $65-$230
Paralegals $65-$230
Victoria W. Counihan, Esq., a shareholder of the firm, assures
that the firm does not hold any interest adverse to the Debtors'
estate and is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code.
Ms. Counihan can be reached at:
Victoria W. Counihan, Esq.
Greenberg Traurig LLP
1007 North Orange Street, Suite 1200
Wilmington, Delaware 19801
http://www.gtlaw.com/
Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.
The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No.: 07-11182). Its Debtor-affiliates
filed for separate Chapter 11 cases. Norman L. Pernick, Esq. of
Saul, Ewing, Remick & Saul LLP represents the Debtors in their
restructuring efforts. When the Debtors filed for protection
from its creditors, it listed total assets of US$186,300,000 and
total debts of US$322,000,000.
The company has production facilities in the United States in
Illinois, North Carolina, New Mexico, and Texas and
international production facilities in the Philippines, China
and India.
FEDDERS CORP: Panel Wants Lowenstein Sandler as Special Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors in Fedders North
America Inc. and its debtor-affiliates' bankruptcy cases asks
the U.S. Bankruptcy Court for the District of Delaware for
authority to retain Lowenstein Sandler PC as its special
litigation counsel and conflicts counsel.
The Committee seeks to retain Lowenstein as special counsel with
regard to issues pertaining to Bank of America and Goldman Sachs
Credit Partners LP, as well as any matters where lead counsel
finds a real or potential conflict of where lead counsel and the
Committee deem it appropriate. Lowenstein tells the Court that
it intends to work closely with Saul Ewing Remick & Saul LLP,
the Committee's lead counsel.
Issues with Bank of America and Goldman
Last month, the Troubled Company Reporter said, citing Bloomberg
News that the Committee had opposed the $79 million in
postpetition financing provided to Fedders by a group including
Goldman Sachs Credit Partners LP and Bank of America NA. The
Committee called the loan "outrageously expensive" arguing that
it costs 14% over the London interbank offered rate for the term
loan and LIBOR plus 5% for the revolving credit. In August
2007, Fedders obtained interim Court approval to borrow under
the financing agreement.
Lowenstein will bill on an hourly basis, plus reimbursement of
the actual and necessary expenses the firm incurs. The firm's
rates are:
Designation Hourly Rate
----------- -----------
Partners $400 - $725
Counsel $265 - $445
Associates $185 - $450
Legal Assistants $75 - $175
Lowenstein assures the Court that it does not hold, or represent
any other entity having an adverse interest in connection with
the Debtors' cases.
A hearing is scheduled tomorrow at 10:00 a.m. for considering
approval of the firm's retention.
The firm can be contacted at:
Sharon L. Levin, Esq., Member
Lowenstein Sandler PC
65 Livingston Avenue
Roseland, NJ 07068
Tel: (973) 597-2500
http://www.lowenstein.com/
Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.
The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No.: 07-11182). Its Debtor-affiliates
filed for separate Chapter 11 cases. Norman L. Pernick, Esq. of
Saul, Ewing, Remick & Saul LLP represents the Debtors in their
restructuring efforts. When the Debtors filed for protection
from its creditors, it listed total assets of US$186,300,000 and
total debts of US$322,000,000.
The company has production facilities in the United States in
Illinois, North Carolina, New Mexico, and Texas and
international production facilities in the Philippines, China
and India.
NIHAO MINERAL: Inks Botolan Mine Memoramdum Deal with QNI Phils.
---------------------------------------------------------------
NiHAO Mineral Resources International Inc. and QNI Philippines
Inc. have executed a memorandum of agreement as well as a
confidential agreement regarding the company's Botolan nickel
prospect in Zambales.
The property is a 7102-hectare property registered under
Exploration Permit Application-000075-III.
Under the agreement, NiHAO will conduct a preliminary
exploration and drilling program on the program with BHP
Billiton providing technical expertise and advice through a
joint exploration management committee. NiHAO will shoulder all
expenses for the period and will be responsible for all legal
and regulatory aspects of the property.
Formerly known as Magnum Holdings Inc., Pasig City, Philippine-
based NiHAO Mineral Resources Inc. was originally organized to
engage in mining exploration.
On June 28, 2007, the Securities and Exchange Commission
approved the change in its Magnum Holdings Inc.'s name to NiHAO
Mineral Resources, Inc.
After auditing the company's annual report for FY2006, 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.
QUEZON POWER: Moody's Affirms 'B3' Rating for Series 1997 Bonds
---------------------------------------------------------------
Moody's Investors Service has affirmed on Thursday the B3 senior
secured rating of the Series 1997 bonds issued by Quezon Power
(Philippines), Limited Co. This follows the company's
announcement that it is to issue up to US$100 million of
subordinated debt. The rating outlook is stable.
"Although the new debt is a significant proportion of Quezon's
total debt, the affirmation considers the credit strength of
Manila Electric Company (Meralco), the purchaser of the power
generated by Quezon, and the maintenance of acceptable financial
metrics exhibited by the project," says David Howell, Moody's
lead analyst for the company.
Meralco's credit worthiness is constrained by its continued
inability to pass on to its customers increased generation
costs. Meralco have only been able to charge a little over half
of the cost needed to reimburse increased generation costs. As
such, its low credit standing acts as a cap on the Quezon's
rating which relies on Meralco for all its revenue.
The US$100 million debt will be fully subordinated and has no
rights until senior debt has been paid back in full and has an
equity lock-up DSCR of 1.25. The subordinated debt will,
however, represent a 26% increase in Quezon's total debt, and
thus is a significant amount.
The project's operating performance has been steady recently
with high availability and high dispatch levels. This has led
to the senior DSCR of between 1.58 in 2006, and predicted
maintenance of this ratio between 1.50 and 1.70 for the next few
years.
Quezon Power (Philippines) Limited Co. is an electricity
generating company whose sole asset is a 470MW (net) base load
pulverized coal-fired electric generation facility located in
Quezon, Philippines. Meralco is its off-taker.
* Gov't Picks Assets Worth PHP80-Bil. For Privatization in 2008
---------------------------------------------------------------
The Philippine National Government plans to sell PHP80-billion
of assets next year, exceeding its PHP30-billion target for
privatization next year, Finance Secretary Margarito Teves told
the Manila Standard.
These assets include the government's 24% stake in San Miguel
Corp. and its 10% equity interest in the Manila Electric Co.,
the article reveals. The SMC stake is worth PHP50 billion,
while the MERALCO ownership is valued at PHP10 billion.
The government may sell its stakes in the Philippine National
Oil Co.-Exploration Corp. next year, Mr. Teves said.
Other assets for sale include the 500-hectare National Bilibid
Prison in Muntinlupa City, the 100-hectare Food Terminal Inc. in
Taguig, and the Fujimi property in Japan, the Standard says.
* * *
On September 14, 2007, Standard & Poor's Ratings Services
affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency
issuer credit ratings on the Philippines. The outlook is stable.
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
=================
APPLIED AIR-CONDITIONING: Pays First and Final Dividend
-------------------------------------------------------
Applied Air-Conditioning Company Pte Ltd., which is in
liquidation, paid its first and final dividend to its creditors
on September 26, 2007.
The company paid 2.5250% of dividend to its creditors.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
LEVI STRAUSS: S&P Rates US$750-Million Credit Facility at BB
------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its bank loan
and recovery ratings to Levi Strauss & Co.'s US$750 million
asset-based revolving credit facility due 2012. The facility is
rated 'BB' with a recovery rating of '1', indicating the
expectation for very high (90-100%) recovery in the event of a
payment default.
"The 'BB' issue rating reflects the incorporation of recovery in
the secured issue-level rating as well as the increase in the
size of the facility," said S&P's credit analyst Susan Ding.
The rating is based on preliminary offering statements and is
subject to review upon final documentation.
Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss
& Co. -- http://www.levistrauss.com/-- is one of the world's
largest brand-name apparel marketers with sales in more than 110
countries. The company market-leading apparel products are sold
under the Levi's(R), Dockers(R) and Levi Strauss Signature(R)
brands.
Levi Strauss & Co. is privately held by descendants of the
family of Levi Strauss. Shares of company stock are not
publicly traded. Shares of Levi Strauss Japan K.K., the
company's Japanese affiliate, are publicly traded in Japan.
The company employs a staff of approximately 10,000 worldwide,
including approximately 1,010 at the company's San Francisco,
California headquarters. Levi Strauss Europe is headquartered
in Brussels, Belgium, while Levi's Asia Pacific division is
based in Singapore. Levi's has operations in Brazil, Mexico,
Chile and Peru.
OMNI TECH: Members' Final Meeting Set for November 15
-----------------------------------------------------
Omni Tech Design Pte Ltd, which is voluntary liquidation, will
hold a final meeting for its members on November 15, 2007, at
138 Cecil Street, #15-00, in Cecil Court, Singapore 069538.
At the meeting, Steven Tan Chee Chuan and Douglas Tan Kay Yeow,
the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.
RED HAT: S&P Affirms B+ Corp. Credit Rating w/ Positive Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Red Hat Inc. to positive from stable and affirmed the ratings,
including the 'B+' corporate credit rating. The outlook
revision reflects Red Hat's consistent growth in revenues and
operating earnings and improving financial profile.
"The ratings reflect Red Hat's narrow business profile, modest
scale relative to other rated software companies, rapid
technology evolution, and highly competitive industry
conditions," said S&P's credit analyst Molly Toll-Reed. "These
are partially offset by some barriers to entry provided by the
large number of independent software and hardware vendors that
certify their products to work with Red Hat, and liquidity and
cash flow that are strong for the rating level."
Red Hat provides operating and middleware software and related
services predominantly to large enterprise customers.
S&P expects to see financial leverage multiples continue to
improve over the intermediate term, driven by EBITDA growth.
Total adjusted debt to EBITDA was 4.7 as of August 2007,
compared with 6 in the prior-year period. While financial
leverage is still relatively high, free cash flow as a percent
of debt is strong for the rating at more than 25%, reflecting
the up-front payment characteristics of Red Hat's subscription
model.
Headquartered in Raleigh, North Carolina Red Hat, Inc. --
http://www.redhat.com/-- is an open source and Linux provider.
Red Hat provides operating system software along with
middleware, applications and management solutions. Red Hat also
offers support, training, and consulting services to its
customers worldwide and through top-tier partnerships.
The company has offices in Singapore, Germany, and Argentina,
among others.
UNITED TEST: Moody's Affirms B1 Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service has on October 19, 2007, downgraded
the corporate family rating of United Test and Assembly Center
Ltd (UTAC) to B1 from Ba3 and withdrawn the Ba3 senior unsecured
rating of its US$190m convertible bonds. These bonds will be
cancelled upon conclusion of the takeover of UTAC. At the same
time, Moody's has assigned a provisional (P)Ba3 senior secured
rating to UTAC's new parent, Global A&T Electronics Ltd's
(Global A&T), proposed US$625m term loan facility and US$150m
revolving facility. The ratings outlook is stable.
"The rating action concludes the review for possible downgrade
initiated on UTAC's ratings on June 27 following the
announcement that Global A&T was acquiring UTAC for a total
consideration of approximately USS$2.2b," says Wonnie Chu, a
Moody's Analyst, adding, "The transaction was approved by
shareholders on 05 Oct, 2007 and is expected to be confirmed by
a high court hearing on Oct 23."
The proposed senior secured term loan facility and senior
secured revolving facility will be guaranteed by UTAC and its
main operating subsidiaries, and will be secured by all of the
assets of the group. The (P)Ba3 ratings for the senior secured
facilities, which is one-notch higher than the corporate family
rating, reflect their first lien on all assets pledged and their
priority of claims over all present and future indebtedness of
the company.
"The CFR downgrade reflects UTAC's weakened credit profile as a
result of the largely debt-funded nature of the LBO," says Chu,
adding, "Approx. US$1.1b in additional debt is expected to be
added to UTAC's balance sheet, increasing its FY2007 Debt/EBITDA
to approx. 4x."
Such a credit profile - that is post-transaction - is more in-
line with those of its B1 peers, and the expected increase in
financial leverage would further boost UTAC's already high
operating leverage and earnings sensitivity to industry
volatility.
In such a situation, any worse-than-expected industry downturn
could pressure cash flow and further weaken its financial
profile. The increased leverage could also hamper growth as the
company tries to strike a balance between seizing future
opportunities and de-leveraging its capital structure.
"The main challenge facing management is to de-risk the
company's enlarged capital structure but not neglect existing
operations and opportunities for rapid growth in Asia," says
Chu.
At the same time, the rating considers UTAC's unique market
position, including its balanced mix of test and assembly
services, which helps buffer it against industry cyclicality as
well as generate above-average revenue growth and profitability.
Furthermore, the fundamentals of the OSAT industry are expected
to remain solid as IDM and fabless companies continue to out-
source back-end processes. The rating also recognizes UTAC's
improving liquidity profile following the LBO transaction.
The ratings outlook is stable, reflecting the expectation that
a) well-advanced plans to finance the LBO will be successful;
and b) UTAC will maintain financial discipline as it executes
its business plan and protects its market position.
The ratings may be upgraded if the company (1) demonstrates a
longer track record for successfully implementing its business
model and sustaining its competitiveness against its global
peers; and (2) generates positive FCF for debt reduction. The
key credit metrics that Moody's would consider for an upgrade
include adj.TD/EBITDA < 2.5x and EBIT/Int > 3x over the cycle.
On the other hand, downward ratings pressure could evolve if (1)
evidence emerges that UTAC's business model is losing traction,
leading to a material weakening in its competitiveness against
its global peers; and (2) an industry downturn emerges, and
which materially impairs its debt-servicing ability, such that
adj. TD/EBITDA > 4.5-5.0x and EBIT/Int < 1x over the
cycle.
About UTAC
About UTAC
United Test and Assembly Center Ltd, based in Singapore and
listed on the Singapore Stock Exchange since 2004, is an
independent provider of test and assembly services for
semiconductor devices, including memory, mixed-signal and logic
integrated circuits. The company has manufacturing facilities
in Singapore, China (Shanghai), Taiwan and Thailand, and a
global sales network in Singapore, Thailand, Taiwan, the US,
Italy, Korea and Japan.
================
S R I L A N K A
================
* Sri Lanka Enters Int'l Debt Markets with Five-Year Bond
---------------------------------------------------------
Sri Lanka entered the international debt markets for the first
time on Oct. 17, selling a five-year dollar-denominated bond to
raise US$500 million, Stacy-Marie Ishmael writes for the
Financial Times.
The bond issue met about US$1.25 billion of demand, and priced
at 397.2 basis points over U.S. Treasuries with a yield of
8.25%, bankers told the Times. The bond had been originally
scheduled for September but was postponed after conflict
escalated between the government and rebel group Liberation
Tigers of Tamil Eelam.
According to the report, Sri Lanka said that it would use the
proceeds from the issue to fund infrastructure projects. In
fact, it has allotted US$5 billion in infrastructure spending
over the next four to five years, central bank officials said.
The bond sets a pricing benchmark for Sri Lankan firms seeking
to raise money in international capital markets, the Times says.
Barclays Capital, HSBC and JPMorgan managed the deal, which was
rated B+ by Standard & Poor's and BB- by Fitch Ratings.
===============
T H A I L A N D
===============
BLOCKBUSTER: Names E. Peterson as EVP, Gen. Counsel & Secretary
---------------------------------------------------------------
Blockbuster Inc. has appointed Eric H. Peterson as Executive
Vice President, General Counsel and Secretary.
Most recently, Mr. Peterson was Executive Vice President and
General Counsel for the former TXU Corporation, a US$32 billion
Fortune 200 Dallas-based energy company. He joined the energy
services company in 2002 as its first ever general counsel, was
responsible for the successful resolution of the company's
complex legal affairs in conjunction with its then European
operations and was an integral part of the executive management
team responsible for the company's turnaround.
Prior to TXU, Mr. Peterson served as general counsel for DTE
Energy, an US$8.6 billion publicly traded, integrated utility in
Detroit. Before that he was a partner in the Texas-based law
firm, Worsham, Forsythe & Wooldridge LLP, now known as Hunton &
Williams, where in addition to practicing corporate law, he
served as a top legal advisor to TXU, the firm's largest client.
"Eric is an accomplished and skilled legal professional with an
extensive background in highly competitive, fast-moving
industries," said Jim Keyes, Blockbuster Chairman and Chief
Executive Officer. "In addition to his considerable legal
expertise, he is a seasoned business executive who will
contribute significantly to our efforts to transform Blockbuster
into the most convenient source for media entertainment."
Mr. Peterson graduated cum laude and Phi Beta Kappa with a
Bachelor's degree from Southern Methodist University where he
also earned his law degree. He received the "Best General
Counsel" award in 2004 from the Dallas Business Journal, is a
member of the SMU Corporate Counsel Symposium's Board of
Directors, and serves on numerous professional and non-profit
boards, including the United Way of Metropolitan Dallas.
Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- provides in-home movie
and game entertainment, with more than 9,000 stores throughout
the Americas, Europe, Asia and Australia. The company maintains
operations in Brazil, Mexico, Denmark, Italy, Taiwan, Thailand,
Australia, among others.
The Troubled Company Reporter-Asia Pacific reported on August 9,
2007, that Standard & Poor's Ratings Services lowered its
ratings on Dallas-based Blockbuster Inc. to 'B-' from 'B'. The
outlook is negative.
The TCR-AP also reported on August 8, 2007 that Moody's
Investors Service downgraded Blockbuster Inc.'s corporate family
rating to Caa1, its senior secured credit facilities to B3, and
speculative grade liquidity rating to SGL-4.
TMB BANK: Board Approves ING's THB35-Billion Recapitalization
-------------------------------------------------------------
TMB Bank PCL's Board of Directors has approved ING Bank's
infusion of THB35 billion for recapitalization in exchange for a
25.1% holding in TMB, the Bangkok Post reports.
ING is expected to invest THB18 billion in a private placement,
pricing of which has been set at THB1.40 per share, the Post
adds.
According to the article, the Finance Ministry will invest
THB7 billion in a rights issue at the same price. However, it
will hold a reduced shareholding at 26.2% after completion of
the recapitalization. THB8 billion is expected from retail
investors through a rights issue.
Bangkok Post's sources said that ING can choose to increase its
ownership to 35% within the next two years, and will be given
three seats on the bank's 12-member board. This will result to
the Ministry's shareholdings declining to 22%, sources told
Bangkok Post.
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 July 6, 2007, Standard & Poor's Ratings Services gave TMB
Bank's US$200-million hybrid Tier 1 securities a 'BB' rating.
The TCR-AP also 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.
On October 11, 2007, the Troubled Company Reporter-Asia Pacific
said that Standard & Poor's Ratings Service said that it has
lowered its long-term counterparty credit rating on Thailand's
TMB Bank Public Co. Ltd. to 'BB+' from 'BBB-' and the short-term
rating to 'B' from 'A-3'. The rating has been removed from
CreditWatch, where it was placed with negative implications on
July 6, 2007. The outlook is negative.
TMB BANK: To Offer 5.586 Billion Shares to Ministry of Finance
--------------------------------------------------------------
TMB Bank PCL has allocated at most 5,586,944,825 newly-issued
ordinary shares for offering to the Ministry of Finance, a major
shareholder.
The allocation is comprised of an offering equal to its
shareholding for at most 2,854,559,829, and an additional
offering of 2,732,384,996 shares.
The shares will be offered pending approval by the bank's
shareholders during an extraordinary general meeting to be held
on November 27.
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 July 6, 2007, Standard & Poor's Ratings Services gave TMB
Bank's US$200-million hybrid Tier 1 securities a 'BB' rating.
The TCR-AP also 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.
On October 11, 2007, the Troubled Company Reporter-Asia Pacific
said that Standard & Poor's Ratings Service said that it has
lowered its long-term counterparty credit rating on Thailand's
TMB Bank Public Co. Ltd. to 'BB+' from 'BBB-' and the short-term
rating to 'B' from 'A-3'. The rating has been removed from
CreditWatch, where it was placed with negative implications on
July 6, 2007. The outlook is negative.
TMB BANK: Turns Around with THB2.53-Billion Net Loss for 3Q 2007
----------------------------------------------------------------
TMB Bank PCL has reported a THB2.539-billion net loss in its
unreviewed and unaudited financials for the third quarter of
2007, a turnaround from the THB1.285 billion net income for the
same period in 2006.
For the quarter ended September 30, 2007, the bank reported an
interest and dividend income of THB7.917 billion, interest
expenses of THB3.845 billion, non-interest income of
THB1.783 billion and non-interest expenses of THB3.920 billion.
The bank also reported a THB20.687-billion net loss for the
nine-month period ending September 30, 2007, reversing its
position from the THB4.613 billion net income for the same
period in 2006.
The bank's financials for the January-September period showed
THB26.251 billion in interest and dividend income,
THB14.162 billion in interest expenses, THB5.961 billion in non-
interest income and THB25.966 billion in non-interest expenses.
As of September 30, 2007, the bank had THB651.783 billion in
total assets and THB623.279 billion in total liabilities,
resulting in a THB28.504-billion shareholders' equity.
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 July 6, 2007, Standard & Poor's Ratings Services gave TMB
Bank's US$200-million hybrid Tier 1 securities a 'BB' rating.
The TCR-AP also 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.
On October 11, 2007, the Troubled Company Reporter-Asia Pacific
said that Standard & Poor's Ratings Service said that it has
lowered its long-term counterparty credit rating on Thailand's
TMB Bank Public Co. Ltd. to 'BB+' from 'BBB-' and the short-term
rating to 'B' from 'A-3'. The rating has been removed from
CreditWatch, where it was placed with negative implications on
July 6, 2007. The outlook is negative.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Mark Andre Yapching, Azela Jane Taladua, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Tara
Eliza Tecarro, Freya Natasha Fernandez-Dy, Frauline Abangan, and
Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
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