/raid1/www/Hosts/bankrupt/TCRAP_Public/071102.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
Friday, November 2, 2007, Vol. 10, No. 218
Headlines
A U S T R A L I A
CIRCLECOM LTD: June 30 Balance Sheet Upside-Down by AU$410,000
COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request
COEUR D'ALENE: Names Donald Gray as Gen. Manager for Chile Unit
CROWN CASTLE: Posts US$67MM Net Loss in Quarter Ended Sept. 30
JAMES HARDIE: Closes U.S. Plant Due to Housing Market Slowdown
SCO GROUP: Selects Dorsey & Whitney as Special Corporate Counsel
SCO GROUP: Taps Boies Schiller as Special Litigation Counsel
SOLAGRAN LTD: Records Third Consecutive Net Loss at AU$3.65MM
C H I N A & H O N G K O N G
ACXIOM CORP: Board Approves US$75MM Stock Repurchase Program
ACXIOM CORP: Annual Stockholders Meeting Scheduled on Dec. 21
ACXIOM CORP: Earns US$10.5MM in Quarter Ending September 30
BAIN CLARKSON: Appoints Joint and Several Liquidators
BRIGHT SMOOTH: Shareholders Voluntarily Wind-Up Business
CDS RETAIL: Final Meeting of Creditors & Members Set on Nov. 30
CENTRAL UNITY: Final Meeting Slated on Nov. 26
CHALLENGE POINT: Members Opt to Wind Up Business
CHINA EASTERN AIRLINES: Books 9-Month Net Profit of CNY1.03BB
FINE HORSE: Creditors to Meet on Nov. 16
GLOBAL POWER: Court Approves Disclosure Statement
GLOBAL POWER: Plan Confirmation Hearing Scheduled on December 20
GTI FINANCIAL: Appoints Timothy Lau as Liquidator
HONG GIAP: Final Meeting Set on Nov. 27
KONFULL LTD: Final Meeting Scheduled on Nov. 30
LDI (HONG KONG): Appoints Liquidators
LOULAN HOLDINGS: Dec. 31 Balance Sheet Upside-down By CNY30.64MM
MEGA SUNNY: Final Meeting Slated on Nov. 27
PACE MICRO: Final Meeting Slated on Nov. 28
PALADIN LIMITED: Deloitte Touche Raises Going Concern Doubt
PALADIN LIMITED: Plans to Raise HK198 Million in Open Offer
SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007
SILVERDALE INVESTMENT: Final Meeting Set on Nov. 26
SOCIETE GENERALE: Enters Voluntary Wind Up
TSUEN TUNG: Final Meeting of Creditors & Members Set for Nov. 30
WOLSTENHOME CHINA: Appoints Liquidators
YAN WING: Voluntarily Winds Up Business
* Bad Loan Ratio for Chinese Banks Drops to 6.2%
I N D I A
AES CORP: Seeking Regulators' Approval on 2 Gas Projects
BANK OF BARODA: Profit Up 13.47% to INR2.88 Bil. in 2nd Quarter
DRESSER-RAND GROUP: Earns US$21.3 Mil. for Quarter to Sept. 30
DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF
GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell
ITI LTD: Posts INR1.24-Bil. Loss in Quarter Ended September 30
KINETIC ENGINEERING: To Increase Capital to INR63,40,00,000
I N D O N E S I A
ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm
ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched.
ANEKA TAMBANG: Reports IDR3.8-Tril. Nine-Month Net Profit
ANEKA TAMBANG: Signs US$2-Mil. Feasibility Study w/ Tsingshan
BANK NISP: Nine-Month Net Profit Up 20% to IDR206.3 Billion
BANK TABUNGAN: Pefindo Upgrades "idA" Bond Rating to "idA+"
CSM CORPORATAMA: Moody's Downgrades Bond Ratings to Ba1.id
GOODYEAR TIRE: Earns US$668 Million for Third Quarter 2007
MEDIA NUSANTARA: Earns IDR326 Bil. in First Nine Mos. of 2007
PT INCO: Board Approves Proposed US$0.978/Share Interim Dividend
TELKOM INDONESIA: 3Q Net Profit Falls- 6.2% to IDR3.19 Trillion
TELKOMSEL: Net Profit for First Nine Months of 2007 Rises 16%
TELKOMSEL: Extends Agreement w/ Nokia on Convergent Charging
J A P A N
ALL NIPPON: April-September Net Profit Triples to JPY105.5 Bil.
FUJI HEAVY: In Talks to Receive Daihatsu Vehicle Supply
NOVA CORP: May Sue Ex-President Over Dubious Deals
SAPPORO: To Tie Up with Morgan Stanley on Property Management
SUN WAVE: Lowers Consolidated Full-year Forecast for Fiscal 2008
* Japanese Banks Suffer Bigger Subprime Damages Than Thought
K O R E A
NOVELIS INC: Realm Communications Completes Rebranding
NOVELIS INC: Will Invest US$7 Million for Brazilian Plant
M A C A U
MELCO PBL: Plans to Raise US$592 Mil. by Selling ADS
M A L A Y S I A
SOLUTIA INC: Receives US$2 Billion Exit Loan Commitment
SOLUTIA INC: Court Urges Resolution of Bank of New York Dispute
N E W Z E A L A N D
A&R WHITCOULLS: Books AU$7.6-Mil. Net Profit After Tax in FY2007
A2 CORP: Enters Into Exclusive Licensing Pact with Lotte Milk
P H I L I P P I N E S
BANCO DE ORO-EPCI: Central Bank OKs Purchase of AMEX Phil. Unit
RIZAL COMMERCIAL: Lists 1,096 New Common Shares in Local Bourse
SAN MIGUEL: Lists 4,288 Additional Common Shares in Local Bourse
STA. LUCIA LAND: Changes Stock Symbol from “ZIP” to “SLI”
S I N G A P O R E
LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend
V I E T N A M
ASIA COMMERCIAL BANK: Moody's Assigns Low-B First-Time Ratings
* Large Companies with Insolvent Balance Sheets
- - - - - - - -
=================
A U S T R A L I A
=================
CIRCLECOM LTD: June 30 Balance Sheet Upside-Down by AU$410,000
--------------------------------------------------------------
CircleCom Limited reported a AU$1.29-million net loss for the
year ended June 30, 2007, more than doubling the AU$0.62-million
net loss the company reported a year before.
As of June 30, 2007, the group had total liabilities of
AU$1.35 million and total assets of AU$0.94 million, resulting
in a capital deficiency of AU$0.41 million.
Headquartered in Melbourne, Australia, CircleCom Limited is an
investment holding company. Through its subsidiaries, the
company operates as a holder of investments in the
telecommunications industry in South East Asia. The only
operating investments of the Company relate to its 14%
investment in PT Circlecom Nuantara, which operates in
Indonesia. CircleCom Limited did not earn any revenue during the
fiscal year ended June 30, 2006. Its wholly owned subsidiaries
include Diamonds Galleria (Asia) Pte Ltd and CircleCom
International Limited.
COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request
--------------------------------------------------------------
Coeur d'Alene Mines Corporation disclosed that a three-judge
panel of the United States Court of Appeals for the Ninth
Circuit has issued a ruling that denies the Petitions for
Rehearing En Banc filed by Coeur Alaska, the State of Alaska and
Goldbelt, Inc. as well the limited Petition for Rehearing filed
by the Department of Justice, representing the U.S. Forest
Service and the U.S. Army Corps of Engineers.
The same Ninth Circuit three-judge panel had previously ruled on
the legal challenge filed by Southeast Conservation Council, the
Sierra Club and Lynn Canal Conservation challenging the
Kensington Section 404 Permit issued by the U.S. Army Corps of
Engineers. The Federal District Court in Alaska had upheld the
permit, and the Plaintiffs appealed that decision to the Ninth
Circuit in August 2006. The Ninth Circuit three-judge panel
reversed the District Court on May 22, 2007. The Department of
Justice, representing the U.S. Forest Service and the U.S. Army
Corps of Engineers, as well as Coeur Alaska, the State of Alaska
and Goldbelt, a native corporation, all asked the Ninth Circuit
Court to reconsider the prior May 22 decision. The order denies
the reconsideration by this Court.
The Company is continuing its discussions with the Plaintiffs to
explore options for the Kensington Mine to begin production as
well as reviewing a possible appeal to the Supreme Court of the
United States.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
COEUR D'ALENE: Names Donald Gray as Gen. Manager for Chile Unit
---------------------------------------------------------------
Coeur d'Alene Mines Corporation has appointed Donald Gray as
Vice President and General Manager of Compania Minera Cerro
Bayo, Coeur's wholly owned subsidiary that owns and operates the
Cerro Bayo Mine in southern Chile.
Mr. Gray joins Coeur with more than 27 years of operational and
developmental mining experience, most recently as Vice President
and General Manager of Minera Hecla Venezolana, in Venezuela.
He is a graduate of the University of Idaho in mining
engineering and also holds a masters degree in civil engineering
from the Massachusetts Institute of Technology. Mr. Gray has
also worked for Newmont Mining, Exxon and Climax Molybdenum.
In addition to its ongoing silver and gold production, Cerro
Bayo has a US$4.8 million exploration program underway in 2007,
which already through the first half of the year increased
silver mineral reserves by 51% over year-end 2006 levels.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
CROWN CASTLE: Posts US$67MM Net Loss in Quarter Ended Sept. 30
--------------------------------------------------------------
Crown Castle International Corp. reported Tuesday results for
the quarter ended Sept. 30, 2007. On Jan. 12, 2007, Global
Signal Inc. merged into a subsidiary of Crown Castle. These
reported results include the effect of the merger for the third
quarter of 2007 and are compared to (i) pre-Merger historical
results of Crown Castle for prior fiscal periods and (ii)
selected pro forma results for the third quarter of 2006,
assuming the merger was completed on Jan. 1, 2006.
Net loss was US$67.0 million for the third quarter of 2007,
inclusive of (i) a US$57.7 million asset write-down charge and
$3.1 million restructuring charge related to the long-term
spectrum lease announced in July 2007, (ii) a US$63.4 million
increase in depreciation, amortization and accretion expense
primarily relating to the merger, (iii)US$4.7 million of merger
integration costs, and (iv) an improvement in benefit for income
taxes of US$32.5 million, compared to a net loss of US$15.6
million for the same period in 2006.
Net loss after deduction of dividends on preferred stock was
$72.2 million in the third quarter of 2007, compared to a loss
of
$20.8 million for the same period last year.
Total net revenues increased to US$351.7 million for the third
quarter ended Sept. 30, 2007, from net revenues of US$200.9
million in the same period last year. Site rental revenue for
the third quarter of 2007 increased US$147.8 million, or 82.6%,
to
$326.8 million from US$179.0 million for the same period in the
prior year. Pro forma site rental revenue growth was 7.3%,
comparing reported third quarter 2007 results to pro forma third
quarter 2006 results, exclusive of approximately US$1.1 million
and US$6.5 million of out of run-rate items in the third quarter
of 2007 and the third quarter of 2006, respectively.
Site rental gross margin, defined as site rental revenue less
site rental cost of operations, increased US$91.2 million, or
73.7%, to US$214.9 million in the third quarter of 2007 from the
same period in 2006. Pro forma site rental gross margin growth
was 10.0%, comparing reported third quarter 2007 results to pro
forma third quarter 2006 results, exclusive of the previously
mentioned out of run-rate site rental revenue. Adjusted EBITDA
for the third quarter of 2007 increased US$85.5 million, or
77.6%, to US$195.8 million, from the same period in 2006.
"We had another solid quarter, exceeding the midpoint of our
third quarter outlook for site rental revenue, site rental gross
margin, adjusted EBITDA and recurring cash flow," stated John P.
Kelly, president and chief executive officer of Crown Castle.
"Our new leasing pipeline continues to build. Further, with the
AWS spectrum clearing process well underway, our confidence in
the growth of new leasing revenue continues to increase. In
addition, we made significant progress in the third quarter with
the integration of the Global Signal assets and anticipate that
we will be substantially complete by the end of the year. Along
with the third quarter results, we are announcing our full year
2008 outlook which suggests approximately 25% year-over-year
growth in recurring cash flow per share, which is at the high
end of our previously stated annual growth goal of 20% to 25%.
Our expectation for growth in recurring cash flow per share
reinforces our belief that our well-located assets, industry-
leading customer service, and efficient capital structure will
create short and long-term value for our shareholders."
Balance Sheet
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$10.51 billion in total assets, US$6.78 billion in
total liabilities, US$313.6 million in redeemable preferred
stock, and US$3.41 billion in total shareholders' equity.
Recurring Cash Flow
Recurring cash flow, defined as adjusted EBITDA less interest
expense and sustaining capital expenditures, increased by
US$39.2 million, or 63.8%, from US$61.6 million in the third
quarter of 2006 to US$100.8 million for the third quarter of
2007, inclusive of approximately US$18.9 million of additional
interest expense from the US$1.15 billion in borrowings in the
fourth quarter of 2006 and first quarter of 2007 to reduce
potential and actual shares outstanding by 33.7 million shares.
Investments and Liquidity
During the third quarter of 2007, Crown Castle invested
approximately US$66.3 million in capital expenditures. Capital
expenditures was comprised of US$5.6 million of sustaining
capital expenditures and US$60.7 million of revenue generating
capital expenditures, of which US$34.7 million was spent on land
purchases, US$10.9 million on existing sites and US$15.1 million
on the construction of new sites.
About Crown Castle
Based in Houston, Crown Castle International Corp. (NYSE: CCI)
-- http://www.crowncastle.com/-- engineers, deploys, owns and
operates technologically advanced shared wireless
infrastructure, including extensive networks of towers. Crown
Castle offers significant wireless communications coverage to 91
of the top 100 US markets and to substantially all of the
Australian population. Crown Castle owns, operates and manages
over 22,000 and over 1,400 wireless communication sites in the
US and Australia, respectively.
* * *
Crown Castle International Corp. still carries Standard & Poor's
'BB' corporate credit rating, on CreditWatch with negative
implications.
JAMES HARDIE: Closes U.S. Plant Due to Housing Market Slowdown
--------------------------------------------------------------
James Hardie Industries Limited has suspended production at its
plant in the United States due to a slowdown in the U.S. housing
market, the Sydney Morning Herald reports.
The report notes that the closure of the factory in Blandon,
Pennsylvania, will result in the loss of 80 jobs. Moreover, SMH
says that there is a possibility James Hardie would close two
more plants as construction activity continues to fall.
According to the Australia Associated Press, James Hardie makes
more than 65% of its revenue in the U.S.
The AAP relates that James Hardie's (jhx.ASX:Quote,News) shares
have tumbled more than 28%, since hitting a high of AU$9.04 on
July 9, as problems triggered by the meltdown in the U.S. sub-
prime mortgage market played out.
Shares in James Hardie lost as much as 4% on Oct. 31. The
shares were trading at AU$6.53, down 21 cents or 3.12%, at 12:08
p.m. AEDT on the said date.
In addition, James Hardie expects the situation to cause a
AU$30 million to AU$35 million hit to its third quarter results,
which are due to be delivered on November 19, the AAP reveals.
"Although we have continued to partly offset the impact of the
US housing downturn by concentrating on market penetration
against alternative materials, the further deterioration in
market conditions led to today's decision," the AAP quotes James
Hardie Chief Executive Officer Louis Gries as saying.
SMH recounts that, in August, James Hardie reported a 10% rise
in first-quarter net operating profit to US$39.1 million,
despite higher material prices and a struggling housing market.
It said at the time it was taking market share from other
building product companies.
However, the AAP relates that James Hardie's decision to phase
out production over 90 days at the Blandon site, the least cost
efficient of its plants, has been caused by the soft housing
market. The plant, which can produce 200 million square feet of
materials a year but has been running at reduced operating
levels, accounts for around 5% of James Hardie's overall
production capacity.
The AAP recounts that James Hardie had bought the plant from
former competitor Cemplank Inc. in 2001 to meet growing demand
for fibre cement.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/--
manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives.
The company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established.
By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia. Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.
In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades. When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.
As reported by Asbestos Litigation on Feb. 16, 2007, the
Australian Securities & Investments Commission has sued
James Hardie Industries NV, claiming the Company misled
investors over the cost of compensating people sickened by
asbestos. The ASIC said that Chairman Meredith Hellicar, former
Chief Executive Officer Peter MacDonald and eight other
officials face bans from running a public company and fines of
more than AU$200,000 or US$160,000.
The suit centers on a Feb. 16, 2001 press release when the
Company said a newly created AUD293 million fund was
"sufficient" to compensate victims of asbestos poisoning. A
government inquiry later found the fund would have run out of
money in three years and the Company was forced to set up a new
AU$1.6 billion compensation fund.
SCO GROUP: Selects Dorsey & Whitney as Special Corporate Counsel
----------------------------------------------------------------
The SCO Group Inc. and SCO Operations Inc. ask the United States
Bankruptcy Court for the District of Delaware for authority to
employ Dorsey & Whitney LLP as special corporate and securities
counsel, nunc pro tunc to Sept. 14, 2007.
Dorsey & Whitney will:
a. advise and counsel the Debtors with respect to their
responsibilities in complying with the requirements of
regulatory authorities and general corporate matters;
b. give advice with respect to continued compliance with
securities matters, specifically with respect to the
Debtors' continued compliance with the Securities Act of
1033 and the Securities and Exchange Act of 1934,
including the preparation and filing of quarterly and
annual reports required by federal law that will be
necessary during the pendency of the cases;
c. give advice with respect to general corporate governance,
transactional, finance, labor and employment, and other
related general outside counsel matters; and
d. assist lead bankruptcy counsel as may be needed to protect
the interests of the estates in all matters pending before
the Court.
The Debtors will pay the firm at its standard hourly rate.
Professional Designation Rate
------------ ----------- ----
Nolan S. Taylor, Esq. Partner US$440
Devan Padmanabhan, Esq. Partner US$495
Eric Lopez Schnabel, Esq. Partner US$450
Samuel P. Gardner, Esq. Partner US$330
David Marx Associate US$270
In addition, Dorsey had unbilled fees and expenses owed by the
Debtors totaling US$53,128 and other expenses already billed
totaling US$1,622. Prior to the bankruptcy filing, Dorsey
received a US$100,000 retainer, however Dorsey was not able to
issue an invoice for its unbilled expenses. The Debtors and
Dorsey has requested for authority to apply the unbilled claim
against the retainer and the remainder of the retainer against
fees approved for payment pursuant to Court orders.
The Debtors believe that the employment of Dorsey & Whitney is
necessary and in the best interest of the Debtors' estates.
The firm can be reached at:
Nolan S. Taylor, Esq.
Dorsey & Whitney LLP
170 South Main Street, suite 900
Salt Lake, Utah
http://www.dorsey.com/
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, 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). Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
SCO GROUP: Taps Boies Schiller as Special Litigation Counsel
------------------------------------------------------------
The SCO Group Inc. and SCO Operations Inc. ask the United States
Bankruptcy Court for the District of Delaware for authority to
employ Boies, Schiller & flexner LLP as special litigation
counsel, nunc pro tunc to Sept. 14, 2007.
Boies Schiller will assist the Debtors in connection with the
continuation of the SCO Litigation. The SCO Litigation consists
of these pending matters:
-- SCO Group v. International Businesses Machines Corp.
pending in the U.S. District Court for the District of
Utah;
-- SCO Group v. Novell Inc. pending in the U.S. District
Court for the District of Utah;
-- Red Hat Inc. v. SCO Group pending in the U.S. District
Court for the District of Delaware;
-- SCO Group v. Autozone Inc. pending in the U.S. District
Court for the District of Nevada;
-- SCO Group v. DaimlerChrysler Corporation pending in the
State of Michigan, Circuit Court for the County of
Oakland;
-- Gray Litigation: Wayne R. Gray v. Novell, SCO Group and
X/Open Company Ltd. pending in the U.S. District Court for
the Middle District of Florida; and
-- SuSE Linux GmbH v. SCO Group pending before the
International Court of Arbitration.
Specifically, the firm will:
a. give advice to the Debtors with respect to the SCO
Litigation;
b. prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents
necessary in the prosecution, defense or appeal of
administration of the SCO Litigation;
c. represent the Debtors at all trials, hearings or
arbitration proceedings with respect to the SCO
Litigation; and
d. protect the interests of the Debtors with respect to the
SCO Litigation.
Subject to the Court's approval, the Debtors will pay the firm
at its standard hourly rate with respect to the Gray Litigation
and 50% of its standard hourly rates with respect to the SuSE
Arbitration and continue the terms of their pre-bankruptcy
engagement on other SCO Litigation.
The Debtors believe that the employment of the firm is necessary
and in the best interest of the Debtors' estates. To the best
of the Debtors' knowledge, Boies Schiller does not represent or
hold any interest adverse to the Debtors or their estates.
The firm can be reached at:
Stuart H. Singer, Esq.
Boies, Schiller & flexner LLP
333 Main St.
Armonk, NY 10504-1812
Tel: (914) 749-8200
Fax: (914) 749-8300
http://www.bsfllp.com/
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, 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). Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
SOLAGRAN LTD: Records Third Consecutive Net Loss at AU$3.65MM
-------------------------------------------------------------
Solagran Limited reported a net loss of AU$3.65 million for the
year ended June 30, 2007, up from the previous year's
AU$2.11 million.
The company currently has AU$36.81 million in accumulated
losses. The company also suffered an AU$2.11 million net loss
in fiscal 2004.
Headquartered in Melbourne, Australia, Solagran Limited --
http://www.solagran.com/-- is a biotechnology company engaged
in the continuing research and commercial development of
Bioeffectives, along with the extension of patent protection for
the extraction and applications of Bioeffectives.
================================
C H I N A & H O N G K O N G
================================
ACXIOM CORP: Board Approves US$75MM Stock Repurchase Program
-------------------------------------------------------------
Acxiom(R) Corporation's board of directors has authorized the
repurchase of up to US$75 million of the company's common stock
over the next 12 months in open market or privately negotiated
transactions, depending on prevailing market conditions and
other factors. The repurchase program may be suspended or
discontinued at any time.
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Acxiom Corp. remains on CreditWatch with
negative implications, where it was placed on May 17, 2007. At
the same time, S&P also placed the 'BB' senior secured debt
ratings on CreditWatch with negative implications, because the
debt will no longer be refinanced as part of the LBO financing.
ACXIOM CORP: Annual Stockholders Meeting Scheduled on Dec. 21
-------------------------------------------------------------
The board of directors of Acxiom(R) Corporation has scheduled
the company's Annual Meeting of Stockholders for Friday, Dec.
21, 2007, at 10 a.m. CST. The meeting will be held at the
Acxiom River Market Building, 601 East Third Street in Little
Rock, Arkansas.
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Acxiom Corp. remains on CreditWatch with
negative implications, where it was placed on May 17, 2007. At
the same time, S&P also placed the 'BB' senior secured debt
ratings on CreditWatch with negative implications, because the
debt will no longer be refinanced as part of the LBO financing.
ACXIOM CORP: Earns US$10.5MM in Quarter Ending September 30
-----------------------------------------------------------
Acxiom Corporation reported financial results for the second
quarter of fiscal 2008 ended Sept. 30, 2007. The company
reported a net income for the second quarter of US$10.5 million,
compared to net earnings of US$21.7 million in the second
quarter of fiscal 2007.
Revenue for the three-month period was US$351.0 million, an
increase of 0.8% over US$348.3 million for the comparable prior-
year period. Income from operations for the three-month period
equaled US$20.4 million compared to US$41.9 million for the
quarter ended Sept. 30, 2006.
For the six-month period ended Sept. 30, 2007, revenue totaled
US$689.2 million, an increase of 0.6% over US$685.0 million for
the comparable prior-year period. Income from operations for
the six-month period was US$24.5 million compared to US$78.2
million for the six months ended Sept. 30, 2006.
"We are moving forward as an independent, publicly owned
company," Charles D. Morgan, Acxiom's company leader and
chairman of the board stated. "Despite the distraction of the
recent course of events, the company posted a slight revenue
increase for the quarter. In addition, we instituted an expense
reduction plan during mid-September and we expect to see the
benefit of the plan during the second half of the fiscal year."
The company had operating cash flow of US$40.6 million and free
cash flow available to equity of negative US$11.3 million.
At Sept. 30, 2007, the company's balance sheet showed total
assets of US$1.6 billion and total debts of US$1.0 billion,
resulting in a US$580.8 million stockholders' equity. Equity on
March 31, 2007, was US$521.3 million.
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Acxiom Corp. remains on CreditWatch with
negative implications, where it was placed on May 17, 2007. At
the same time, S&P also placed the 'BB' senior secured debt
ratings on CreditWatch with negative implications, because the
debt will no longer be refinanced as part of the LBO financing.
BAIN CLARKSON: Appoints Joint and Several Liquidators
-----------------------------------------------------
Ying Hing Chiu and Chung Miu Yin Diana has been appointed as
Bain Clarkson (HK) Limited's joint and several liquidators on
Oct. 22, 2007.
The company's liquidators may be contacted at:
Level 28, Three Pacific Place
1 Queen's Rd. East,
Hong Kong
BRIGHT SMOOTH: Shareholders Voluntarily Wind-Up Business
--------------------------------------------------------
Shareholders of Bright Smooth Development Ltd. have decided to
voluntarily wind up the company and appointed Pang Wai Kui as
liquidator.
The liquidator may be reached at:
Suite A, 12.F Ritz Plaza
122 Austin Rd., Tsimshatsui,
Kowloon, Hong Kong
CDS RETAIL: Final Meeting of Creditors & Members Set on Nov. 30
---------------------------------------------------------------
The final meeting of the members and creditors of CDS Retail
Logistics Company Ltd. will be held on November 30, 2007, at
11:00 a.m.
The liquidator can be reached at:
Victor Chiu
Club Lusitano Building, 8th Floor
16 Ice House Street,
Central, Hong Kong
CENTRAL UNITY: Final Meeting Slated on Nov. 26
----------------------------------------------
The final general meeting among members of Central Unity
International Limited will be held on Nov. 26, 2007, at
10:00 a.m.
The company's liquidator, Hung See Mei Elena, will give a report
on the company's wind-up proceedings and property disposal.
At an extraordinary general meeting held on May 2, 2007, the
members of the company agreed to shut down its business.
The Liquidator can be reached at:
Hung See Mei, Elina
Shui On Centre, Room 2411
6 Harbour Road
Hong Kong
CHALLENGE POINT: Members Opt to Wind Up Business
------------------------------------------------
At an extraordinary general meeting held on Oct. 22, 2007,
members of Challenge Point Limited approved the voluntary wind
up of the company.
Mr. Cheng Alexander Chiu Wang was appointed liquidator.
Mr. Cheng may be reached at:
Room 810, Argyle Centre
688 Nathan Rd. Kowloon
Hong Kong
CHINA EASTERN AIRLINES: Books 9-Month Net Profit of CNY1.03BB
--------------------------------------------------------------
China Eastern Airlines Corp Ltd (SHA 600115; HK 0670; NYSE CEA),
booked a net profit of CNY1.03 billion in the first nine months
of 2007, turning around from a loss of CNY843.7 million a year
earlier, Trading Markets relates.
According to the report, the carrier's stock was sharply higher
after it booked the net profit. The stock rose CNY1.34 or by
the 10% daily trading limit to CNY14.75.
In the third quarter, the company posted operating revenue of
CNY12.5 billion, against CNY10.8 billion a year earlier, and a
net profit of CNY976.5 million, well up on the year-earlier
CNY491.5 million, Trading Markets says.
Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal
activity is operation of domestic and international commercial
air transportation. The Group also is involved in the common
aircraft industry. Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training. The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly. Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.
On April 28, 2006, Fitch Ratings downgraded China Eastern's
foreign currency and local currency issuer default ratings to B+
from BB-. The outlook on the IDRs is stable.
Xinhua Far East China Ratings gave the company a BB+ issuer
credit rating.
FINE HORSE: Creditors to Meet on Nov. 16
----------------------------------------
The creditors of Fine Horse Co Ltd will convene on Nov. 16,
2007, at the 6th Floor of Sunning Plaza, 10 Hyan Ave., in
Causeway Bay, Hong Kong.
Alison Wong Lee Fung Ying and Alan CW Tang, joint and several
liquidators of the company, may be reached at:
Grant Thornton Specialist Services Limited
Gloucester Tower, 13th Floor
The Landmark, 15 Queen’s Road
Central, Hong Kong
GLOBAL POWER: Court Approves Disclosure Statement
-------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
approved Global Power Equipment Group Inc.'s Disclosure
Statement, authorizing the company to begin soliciting votes
from its creditors and shareholders on its amended Chapter 11
Plan of Reorganization.
Pursuant to a Plan Support Agreement approved by the Bankruptcy
Court, the Plan is supported by both of the statutory committees
appointed to represent creditors and stockholders in the chapter
11 cases and by holders the company's senior subordinated notes.
As reported in the Troubled Company Reporter on Sept. 14, 2007,
Global Power's plan includes a rights offering available to
existing equity holders for the issuance of new common stock of
the reorganized company backstopped in an amount up to US$90
million by a group of existing equity holders. The timeline
approved by the Court establishes Nov. 6, 2007, as the record
date for voting on the Plan and participating in the rights
offering.
"Since entering into the plan settlement outline in August with
the committees and the noteholders, the company and
representatives of the major constituencies in these cases have
worked hard to finalize the various components of the Plan,
which the company believes maximizes the recovery of all
stakeholders," John Matheson, President and Chief Executive
Officer of Global Power, said. "With the Disclosure Statement
approved and a confirmation hearing scheduled, we now have a
clear timeline for a successful emergence from chapter 11. The
company will emerge from chapter 11 with a strong balance sheet
and capital structure that will ensure continued excellent
service and support for our customers."
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 ofUS$177,758,000 and total debts ofUS$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: Plan Confirmation Hearing Scheduled on December 20
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set a
hearing on Dec 20, 2007, to consider confirmation of the Amended
Chapter 11 Plan of Reorganization filed Global Power Equipment
Group Inc.
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 ofUS$177,758,000 and total debts ofUS$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.
GTI FINANCIAL: Appoints Timothy Lau as Liquidator
-------------------------------------------------
GTI Financial Information Limited has appointed Lau Cheuk Man
Timothy as its liquidator in a resolution passed Oct. 16, 2007.
Mr. Lau can be reached at:
Unit 9, 17/F CitiCorp Centre,
18 Whitfield Road
Causeway Bay, Hong Kong
HONG GIAP: Final Meeting Set on Nov. 27
---------------------------------------
Hong Giap Investment (China) Ltd. will hold its final meeting on
Nov. 27, 2007, at 10:00 a.m.
The company's liquidator, Ng Kin Yung Tony, will give a report
on the company's wind-up proceedings and property disposal.
The liquidators can be reached at:
Allied Kajima Building, 7th Floor
138 Gloucester Road
Hong Kong
KONFULL LTD: Final Meeting Scheduled on Nov. 30
-----------------------------------------------
Konfull Ltd. will hold its final general meeting on Nov. 30,
2007, at 10:00 a.m.
At the meeting, the company's liquidators, Wong Tak Man Stephen
and Wong Poh Weng, will give a report on the company's wind-up
proceedings and property disposal.
The members of Konfull Limited resolved to voluntarily liquidate
the company's business at an extraordinary general meeting held
on Sept. 18, 2007.
The liquidator can be reached at:
Ng Kin Yung, Tony
805 Capitol Centre
5-19 Jardine's Bazaar
Causeway Bay
Hong Kong
LDI (HONG KONG): Appoints Liquidators
-------------------------------------
LDI (Honh Kong) Limited has appointed Chiu Wai Hon and Lau Wai
Ming as joint and several liquidators of the company.
The liquidators can be reached at:
Rooms 603-4, 6/F Hang Seng Wanchai Building
200 Hennessy Rd.
Wanchai, Hong Kong
LOULAN HOLDINGS: Dec. 31 Balance Sheet Upside-down By CNY30.64MM
----------------------------------------------------------------
Loulan Holdings Limited reported a CNY12.82 million net loss for
the year ended Dec. 31, 2006, the company said in a belated
filing with the Hong Kong Stock Exchange.
For the year in review, the group recorded a turnover of
approximately CNY7.62 million, much lower than the
CNY12.38 million reached in 2005 due to the closure of its wine
distribution business. The sales of self-manufactured wine also
decreased due to lack of financial resources.
As of Dec. 31, 2006, the group had total assets amounting
CNY47.72 million, current liabilities of CNY61.25 million, and
non-current liabilities of CNY0.80 million, resulting in a
capital deficiency of CNY30.64 million.
Loulan Holdings Limited and its subsidiaries are principally
engaged in the production, sales and distribution of alcoholic
drinks, principally wines under the Company's own brand name,
Loulan. The Company operates in two main segments: selling of
self-manufactured wines and distribution of wine products.
Loulan Holdings Limited's subsidiaries include Powerful Kingdom
Inc. (wholly owned), Xinjiang Loulan Wine Co., Ltd (90% owned),
Crownhead Limited (wholly owned), Vision Spirit Investment
Limited (wholly owned) and Shanghai Shen Hong (wholly owned).
The Company operates in Hong Kong and Mainland China.
MEGA SUNNY: Final Meeting Slated on Nov. 27
-------------------------------------------
A final general meeting among the members of Mega Sunny Limited
will be held on Nov. 27, 2007, at 10:00 a.m.
The sole shareholder of Mega Sunny Limited passed a resolution
to voluntarily wind up the company's operations and appointed
Poon Ka Lee, Barry, as liquidator on July 13, 2007.
The liquidator can be reached at:
Poon Ka Lee, Barry
1607, ING Tower
308 Des Voeux Road,
Central Hong Kong
PACE MICRO: Final Meeting Slated on Nov. 28
-------------------------------------------
A final general meeting among members of Pace Micro Technology
(Asia Pacific) Limited will be held on Nov. 28, 2007, at 3:00
p.m.
At the meeting, the company's liquidators, Alan CW Tang and Wong
Kwok Man, will give a report on the company's wind-up
proceedings and property disposal.
To recall, the members of the company agreed to shut down its
business during an extraordinary general meeting on May 2, 2007.
The Liquidator can be reached at:
Grant Thornton
Certified Public Accountants
13/F, Gloucester Tower
The Landmark
15 Queen's Road, Central
Hong Kong
PALADIN LIMITED: Deloitte Touche Raises Going Concern Doubt
-----------------------------------------------------------
Deloitte Touche Tohmatsu, after auditing Paladin Limited's
financial statements for the year ended June 30, 2007, raised
material uncertainty regarding the company's and its
subsidiaries' ability to continue as a going concern.
Deloitte Touche notes that the Group had net liabilities of
approximately HK$48,734,000 as at June 30, 2007, and relates
that the Group is dependent upon the financial support of its
bankers and other lenders.
The company recorded a loss for the year ended June 30, 2007 of
HK$109,059,000, compared to the HK$39,770,000 loss it reported
for the year ended June 30, 2006.
As of end-June 2007, the group's consolidated balance sheet
showed total assets of HK$1,308,991,000, and total liabilities
of HK$1,357,725,000.
As of June 30, 2007, the group recorded a capital deficiency of
HK$48.73 million.
The Group's outstanding liabilities comprise of:
(i) secured bank loans of approximately HK$926 million,
(ii) other loans and amounts due to directors of
subsidiaries of approximately HK$184 million and
(iii) other payables of approximately HK$248 million.
Annual General Meeting On December 18
The group, in a separate corporate disclosure, announced that
its annual general meeting, excluding holders of the convertible
redeemable preference shares of the company, will be held on
Dec. 18, 2007, at 11:00 a.m. The meeting's agenda include:
* the approval of the financial statements and the reports of
the directors and auditors for the year ended
June 30, 2007;
* the re-election of directors;
* the fixing of the directors’ remuneration; and
* the appointment of Deloitte Touche Tohmatsu as auditors for
the ensuing year and to authorise the directors to fix
their remuneration.
Holders of the company's convertible redeemable preference share
will meet on Dec. 18, 2007 at 11:00 a.m.
Headquartered in Wanchai, Hong Kong, Paladin Limited -- which
was incorporated in Bermuda -- is an investment holding company.
The activities of its principal subsidiaries are investment
holding, property development and investment, and general
trading. The principal activities of the Group are re-
development of a property project at Nos. 8, 10 and 12 Peak
Road (the Peak Road Project) and trading of textiles. The Peak
Road Project located at Nos. 8, 10 and 12 Peak Road, Hong Kong
consists of 34 apartment units and a 3-story private house and
the gross floor area is approximately 119,000 square feet. The
Group commenced the pre-sale of the Peak Road Project in
November 2004 and has sold 10 apartment units in previous years.
PALADIN LIMITED: Plans to Raise HK198 Million in Open Offer
-----------------------------------------------------------
Paladin Limited will make an open offer of 396,203,711
convertible redeemable preference shares, subsequent to the
balance sheet date, at the subscription price of HK$0.50 per
convertible redeemable preference share starting on November 14,
2007, the company said in a corporate disclosure.
The company, in its annual report, said that the approximately
HK$198.00 million raised from the open offer will be spent in
the development and establishment of a high technology
manufacturing facility in Wuhan East Lake High-Technology
Development Zone in the next twelve months and paying off its
financial obligations.
Headquartered in Wanchai, Hong Kong, Paladin Limited -- which
was incorporated in Bermuda -- is an investment holding company.
The activities of its principal subsidiaries are investment
holding, property development and investment, and general
trading.
Going Concern Doubt
Deloitte Touche Tohmatsu, after auditing Paladin Limited's
financial statements for the year ended June 30, 2007, raised
material uncertainty regarding the company's and its
subsidiaries' ability to continue as a going concern.
Deloitte Touche notes that the Group had net liabilities of
approximately HK$48,734,000 as at June 30, 2007, and relates
that the Group is dependent upon the financial support of its
bankers and other lenders.
SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007
-----------------------------------------------------------
Sanmina-SCI Corporation has revenue of US$2.5 billion, compared
to US$2.5 billion in the third quarter ended June 30, 2007 and
US$2.7 billion in the fourth quarter ended Sept. 30, 2006.
Revenue for the year ended Sept. 29, 2007 was US$10.4 billion,
compared to US$11.0 billion in the prior year.
Non-GAAP Financial Results for the Quarter and Fiscal Year
Net income for the fourth quarter 2007 was US$10.2 million,
US$0.02 diluted earnings per share, compared to a net loss of
US$22.8 million, a diluted loss per share of US$0.04 for the
third quarter ended June 30, 2007, and net loss of US$2.1
million, breakeven diluted earnings per share for the fourth
quarter 2006. Net income for fiscal year 2007 was US$22.8
million, US$0.04 diluted earnings per share, compared to
US$102.4 million, US$0.19 diluted earnings per share in the
prior year.
Gross profit was US$134.1 million or 5.4 percent of revenue, a
60 basis point improvement from the prior quarter of US$120.3
million, or 4.8 percent of revenue, and up from US$131.0
million, or 4.8 percent of revenue in the same period a year
ago. Operating income for the quarter was US$42.8 million, up
from US$29.1 million in the prior quarter and up from US$32.1
million for the same period last year. Fiscal 2007 operating
income was US$182.6 million, compared to US$243.7 million in
fiscal 2006 (see Non-GAAP Financial Information).
GAAP Financial Results for the Quarter and Fiscal Year
Fourth quarter GAAP earnings were primarily impacted by a non-
cash impairment charge for goodwill of US$1.1 billion. As a
result of this charge, the company reported a net loss of US$1.1
billion in the fourth quarter of fiscal 2007, compared to a net
loss of US$27.6 million in the prior quarter and a net loss of
US$28.1 million for the same period last year. Diluted loss per
share for the quarter was US$2.10. Net loss for fiscal year
2007 was US$1.1 billion and diluted loss per share was US$2.15.
This charge resulted from the company's annual goodwill
impairment analysis in accordance with Statement of Financial
Accounting Standards No. 142 (SFAS No. 142).
Cash Flow and Balance Sheet Metrics
The company continued to manage its cash flow and balance sheet
metrics, making improvements throughout fiscal 2007.
* Cash flow from operations was US$145 million in fourth
quarter 2007, and US$511 million for fiscal 2007
* Cash and cash equivalents were US$933.4 million, up
US$441.6 million from Q4'06
* Cash cycle days of 29 days represented a 7 day improvement
from Q3'07
* Inventory decreased US$72.7 million, inventory turns
improved to 8.9 in Q4'07
"I am pleased with our gross margin improvement, cash flow
generation and inventory turns during the fourth quarter. We
are confident that we will continue to improve our financial
metrics. We are committed to driving our ROIC above our
weighted cost of capital as we exit fiscal year 2008,"
stated Jure Sola, Chairman and Chief Executive Officer.
"The basis for Sanmina-SCI's operational excellence strategy in
2008 and beyond is to focus on high-end markets that offer the
greatest opportunity for success, invest in leading edge
technology, and provide unparalleled end-to- end manufacturing
solutions to our customers," concluded Mr. Sola.
Personal and Business Computing Division
Consistent with previous announcements made by the company
concerning its personal and business computing business unit,
the company reaffirmed its intentions of separating this
business unit from its core operations either by means of a sale
or other disposition of the business. This business unit
includes the company's personal computing and industry standard
server businesses, their related BTO/CTO operations in Mexico
and Hungary and their associated logistics activities. The
company expect the disposition of this business to occur over
the next twelve months. Accordingly, effective with the first
fiscal quarter 2008, the company expects to account for this
business unit as a discontinued operation in accordance with
SFAS No. 144, Accounting for the Impairment or Disposal of Long-
Lived Assets.
First Quarter Fiscal 2008 Outlook
The following statements are based on current expectations.
These statements are forward-looking and actual results may
differ materially. Please refer to the Risk Factors reported in
the company's annual and quarterly reports on file with the
Securities and Exchange Commission for a description of some of
the factors that could influence the company's ability to
achieve the projected results.
The company provides these guidance with respect to the first
fiscal quarter ending Dec. 29, 2007:
* Revenue is expected to be in the range of US$2.5 billion to
US$2.65 billion
* Non-GAAP diluted earnings per share to be between US$0.02
to US$0.04 Non-GAAP Financial Information
In the commentary set forth above, we present the following non-
GAAP financial measures: gross profit, gross margin, operating
income, operating margin, net income and earnings per share. In
computing each of these non-GAAP financial measures, we exclude
charges or gains relating to: stock-based compensation
expenses, restructuring costs (including employee severance and
benefits costs and charges related to excess facilities and
assets), integration costs (consisting of costs associated with
the integration of acquired businesses into our operations),
impairment charges for goodwill and intangible assets,
amortization expense and other infrequent or unusual items, to
the extent material or which we consider to be of a non-
operational nature in the applicable period.
About Sanmina-SCI
Headquartered in San Jose, California, Sanmina-SCI Corporation
(NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is a
Electronics Manufacturing Services (EMS) provider focused on
delivering complete end-to-end manufacturing solutions to
technology companies around the world. Service offerings
include product design and engineering, test solutions,
manufacturing, logistics and post-manufacturing repair/warranty
services.
The company has locations in Brazil, China, Ireland, Finland,
Malaysia, Mexico and Singapore, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2007, Standard & Poor's Ratings Services has revised
its outlook on Sanmina-SCI Corp. to negative from stable, as a
result of continued operating weakness and increasing leverage.
The corporate credit and senior unsecured ratings are affirmed
at 'B+', and the subordinated debt rating is affirmed at 'B-'.
SILVERDALE INVESTMENT: Final Meeting Set on Nov. 26
---------------------------------------------------
A final general meeting among members of Silverdale Investment
Limited will be held on Nov. 26, 2007, at 10:00 a.m.
At the meeting, the company's liquidators, Yu Yu Kin and Cheng
Kam Wa, Thomas, will give a report on the company's wind-up
proceedings and property disposal.
The Liquidators may be reached at
Office B, 26/F., United Centre
95 Queensway, Hong Kong
SOCIETE GENERALE: Enters Voluntary Wind Up
------------------------------------------
Members of Societe Generale Asia Investment Ltd. has approved
the voluntary wind up of the company at an extraordinary general
meeting on Oct. 15, 2007.
Patrick Cowley and Paul Jeremy Brough, both of KPMG, have been
appointed as joint and several liquidators.
Mr. Cowley and Mr. Brough may be reached at:
KPMG
8th Floor, Prince's Bldg.,
10 Chater Rd. Central,
Hong Kong
TSUEN TUNG: Final Meeting of Creditors & Members Set for Nov. 30
----------------------------------------------------------------
A final meeting among the members and creditors of Tsuen Tung
Film and TV Service Ltd. will be held on November 30, 2007, at
12:00 noon.
The company's liquidator is:
Victor Chiu
Club Lusitano Building, 8th Floor
16 Ice House Street
Central, Hong Kong
WOLSTENHOME CHINA: Appoints Liquidators
---------------------------------------
Li Man Pong and Yu Kam Ming were appointed joint and several
liquidators of Wolstenholme China Ltd.
The Liquidators may be reached at:
Units 3802-04, 38/F Cosco Tower
181 Queen's Road Central
Hong Kong
YAN WING: Voluntarily Winds Up Business
---------------------------------------
Yan Wing Fibre and Accessory Co. Ltd.'s members has approved the
voluntary winding up of the company and has appointed Cheung
Kwok Sun as liquidator.
Mr. Cheung may be reached at:
21/F Fee Tat
Commercial Centre
No. 613 Nathan Rd. Kowloon,
Hong Kong
* Bad Loan Ratio for Chinese Banks Drops to 6.2%
------------------------------------------------
The combined bad-loan ratio at China's state-owned banks, joint-
stock banks, city and rural lenders, and foreign banks dropped
to 6.2% as of Sept. 30, 2007, from 7.1% at the end of 2006,
Bloomberg News reports, citing a statement from the China
Banking Regulatory Commission.
Bloomberg relates that total bad loans amounted to
CNY1.25 trillion.
Bloomberg says that the reduction was due to improvements in
risk management and the implementation of stricter lending rules
in China. Bloomberg explains that banks including Industrial &
Commercial Bank of China Ltd. have trimmed non-performing loans
after improving oversight and as the fastest economic growth in
a decade reduced defaults.
The report further explains that the Chinese government, after
spending almost US$500 billion bailing out banks after decades
of state-directed lending went awry, aims to cut the bad-loan
ratio to below 5%.
The report details that China's five biggest state-owned lenders
had CNY1.08 trillion of bad loans by the end of the third
quarter, representing 7.8% of total advances, while China
Merchants Bank Co., China Citic Bank Co. and 10 other mid-sized
national banks had combined non-performing loans of
CNY94.4 billion, or 2.4% of the total.
Bad loans at city commercial banks dropped 1.1 percentage points
to 3.7%, while those at foreign banks dropped 0.3 percentage
point to 0.5%, the report continues.
=========
I N D I A
=========
AES CORP: Seeking Regulators' Approval on 2 Gas Projects
--------------------------------------------------------
The Baltimore Sun reports that the AES Corporation is seeking
the US Federal Energy Regulatory Commission's authorization for
the construction of a liquefied natural gas terminal at the
Sparrows Point shipyard and an 88-mile pipeline into
Pennsylvania.
According to The Sun, the National Association of State Fire
Marshals and federal regulators heeded a request from some
Turners Station residents to consider the approval for liquefied
natural gas projects. The Fire Marshals and regulators will
meet in Washington about the approval process.
O'Rourke of the National Association of State Fire Marshals told
The Sun, "Some folks who, to date, haven't been involved -- who
missed those initial hearings -- wanted to learn about the LNG
[liquefied natural gas] approval process."
The Sun relates that many community leaders and officials have
been opposing the project.
The terminal would be a potential hazard to nearby homes in
Dundalk, especially to those in Turners Station, The Sun says,
citing sources.
Federal officials had notified AES that the State Highway
Administration would not grant the company access to construct
its pipeline along the Baltimore Beltway. They asked the firm
to present a new route for the pipeline, The Sun states.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Specifically, it also has operations
in India. Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies.
As reported in the Troubled Company Reporter-Latin America on
Oct. 12, 2007, Moody's Investors Service affirmed The AES
Corporation's Corporate Family Rating at B1 and the senior
unsecured rating assigned to its new senior unsecured notes
offering at B1 following its upsizing to US$2 billion from
US$500 million. LGD assessments are subject to change pending
the final capital structure.
As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1'
rating to AES Corporation's US$500 million issue of senior
unsecured notes due 2017. AES' long-term Issuer Default Rating
is rated 'B+' by Fitch. Fitch said the rating outlook is
stable.
BANK OF BARODA: Profit Up 13.47% to INR2.88 Bil. in 2nd Quarter
---------------------------------------------------------------
Bank of Baroda booked a net profit of INR3.27 billion in the
quarter ended Sept. 30, 2007, up 13.47% from the INR2.88 billion
earned in the corresponding quarter last year. Total income
rose 32.95% to INR33.34 billion, most of which is from interest
earned on advances that aggregated INR20.52 billion.
The bank's expenditures for the July-Sept. 2007 period totaled
INR26.97 billion, which include interest expense of
INR18.98 billion and operating expenses of INR7.98 billion.
A copy of the bank's unaudited financial results for the quarter
ended Sept. 30, 2007, is available for free at:
http://ResearchArchives.com/t/s?24b1
Headquartered in Vadodara, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking
services in India. The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.
Bank of Baroda has branches in the Bahamas, Belgium, the Fiji
Islands, Mauritius, Republic of South Africa, Seychelles,
Singapore, Sultanate of Oman, United Arab Emirates, the United
Kingdom, and the United States of America.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
July 11, 2007, Standard & Poor's assigned its 'BB' issue rating
to Bank of Baroda's US$300 million upper Tier-II subordinated
notes due in 2022.
Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of
Baroda's proposed unsecured subordinated Upper Tier 2 notes
(expected size: US$250 million plus greenshoe option), as well
as the hybrid Tier 1 debt to be issued under its USD1.5 billion
medium-term notes programme. Fitch said the outlook on all
ratings is stable.
DRESSER-RAND GROUP: Earns US$21.3 Mil. for Quarter to Sept. 30
--------------------------------------------------------------
Dresser-Rand Group Inc. has reported net income of
US$21.3 million, or US$0.25 per diluted share, for the third
quarter 2007. This compares to a net income of US$22.9 million,
or US$0.27 per diluted share, for the third quarter 2006.
Vincent R. Volpe, Jr., President and Chief Executive Officer of
Dresser-Rand, said, "Consistent with the information contained
in our Oct. 3, 2007 news release, there are two items which
affected our third quarter 2007 results. Costs and margin
related to deferred sales associated with the work stoppage at
our Painted Post facility were approximately US$20 million,
which was higher than the originally anticipated range of US$12
to US$18 million. As we continue to hire permanent replacement
workers and extend subcontracting, the associated financial
impact of the strike will continue to be reduced and we believe
will not be of a material nature in 2008."
"Additionally, we expected a stronger recovery in aftermarket
bookings and shipments than experienced. This shortfall is
principally due to a delay attributable to changes in the
procurement and budgeting processes of certain national oil
company clients. The impact of this shortfall on bookings in
the first nine months of 2007, which we believe was one of
timing rather than lost market share, was approximately US$43
million compared to the corresponding nine month period in 2006.
Excluding the specific national oil companies involved, the rest
of the aftermarket bookings have grown from US$531.5 million in
2006 to US$574.4 million in 2007 or 8.1%. We do see signs of
recovery with one national oil company with which we are
presently negotiating a three year blanket purchase agreement
initially valued at approximately US$50 million in aftermarket
parts and services. This agreement would essentially pre-
approve the operating budget and, thereby, shorten the approval
process. We expect this agreement to be signed in the fourth
quarter of this year. In light of the above, we believe that
the year-to-date aftermarket sales shortfall will be at least
partially recovered in the fourth quarter."
Market conditions remain strong in both new unit and aftermarket
business segments. In the third quarter 2007, total revenues
increased 25.5%, bookings increased 2.7% and backlog grew 48.0%
over the prior year period.
Total revenues for the third quarter 2007 of US$389.3 million
increased US$79.0 million or 25.5% compared to US$310.3 million
for the third quarter 2006. Total revenues for the nine months
ended Sept. 30, 2007, of US$1,144.9 million increased US$119.1
million or 11.6% compared to revenues of US$1,025.8 million for
the corresponding period in 2006.
Operating income for the third quarter 2007 was US$36.4 million.
This compares to operating income of US$48.4 million for the
third quarter 2006. Third quarter 2007 operating income
decreased from the year ago quarter primarily due to the adverse
impact of a work stoppage at the company's Painted Post facility
in New York State. The company estimates the work stoppage
reduced its operating income for the third quarter 2007 by
approximately US$20 million, which includes approximately US$10
million higher costs principally for temporary workers and US$10
million for margin related to deferred sales.
Operating income for the nine months ended Sept. 30, 2007, was
US$119.4 million. This compares to operating income of US$105.8
million for the corresponding period in 2006. Operating income
increased from the year ago nine-month period primarily due to
higher sales which was partially offset by the work stoppage at
the Painted Post facility.
Bookings for the third quarter 2007 were US$496.2 million, which
was US$12.9 million or 2.7% higher than the third quarter 2006.
Bookings for the nine and twelve months ended Sept. 30, 2007, of
US$1,581.0 million and US$2,137.2 million, respectively, were
23.3% and 26.2% higher than the bookings for the corresponding
periods ended Sept. 30, 2006.
The backlog at the end of September 2007, was US$1,750.8 million
or 48.0% higher than the backlog at the end of September 2006 of
US$1,183.0 million.
New Units Segment
New unit revenues for the third quarter 2007 of US$194.0 million
compared to US$113.7 for the third quarter 2006. New unit
revenues for the nine months ended Sept. 30, 2007, of US$540.6
million compared to US$501.0 million for the corresponding
period in 2006. Overall demand for rotating equipment remains
strong in all key markets.
New unit operating income was US$12.0 million for the third
quarter 2007 compared to operating income of US$11.4 million for
the third quarter 2006. This segment's operating margin was
6.2% compared to 10.0% for the third quarter 2006. The decrease
in this segment's operating results was primarily attributable
to the work stoppage at the Painted Post facility. The company
estimates the work stoppage reduced this segment's third quarter
2007 operating income by approximately US$8 to US$9 million and
its operating margin by approximately 300 to 350 basis points.
New unit operating income was US$34.0 million for the nine
months ended Sept. 30, 2007, compared to operating income of
US$24.7 million for the corresponding period in 2006. This
segment's operating margin for the nine months ended
Sept. 30, 2007, was 6.3% compared to 4.9% for the corresponding
nine month period in 2006. The increases from the corresponding
periods in 2006 were attributable to higher sales partially
offset by the the work stoppage at the Painted Post facility.
The company estimates the work stoppage reduced this segment's
operating margin by approximately 100 to 150 basis points for
the nine months ended Sept. 30, 2007.
Bookings for the three months ended Sept. 30, 2007, of US$285.1
million were 2.8% higher than bookings for the corresponding
period in 2006. New unit bookings included a US$33.5 million
order for four reciprocating compressors, two centrifugal
compressors, and two steam turbines for Valero's refinery
expansion projects.
Bookings for the nine and twelve months ended Sept. 30, 2007, of
US$973.0 million and US$1,300.4 million, respectively, were
44.2% and 46.4% higher than the bookings for the corresponding
periods ended Sept. 30, 2006.
The backlog at Sept. 30, 2007, of US$1,456.7 million was 61.8%
above the US$900.3 million backlog at Sept. 30, 2006. This
increase was due to continuing strong worldwide demand for
rotating equipment.
Aftermarket Parts and Services Segment
Aftermarket parts and services revenues for the third quarter
2007 of US$195.3 million compared to US$196.6 for the third
quarter 2006. Aftermarket parts and services revenues for the
nine months ended Sept. 30, 2007, of US$604.3 million compared
to US$524.8 for the corresponding period in 2006. While the
market overall continues to be strong, revenues in 2007 have
been affected adversely, but the company believes temporarily,
by changes in the procurement process and a delay in budget
appropriations for certain of the company's national oil company
clients.
Aftermarket operating income for the third quarter 2007 of
US$43.1 million compared to US$51.9 million for the third
quarter 2006. This segment's operating margin for the third
quarter of 2007 of approximately 22.1% compared to 26.4% for the
third quarter 2006. The decrease in this segment's operating
results was principally due to the work stoppage at the Painted
Post facility. The company estimates the work stoppage reduced
this segment's third quarter 2007 operating income by
approximately US$11 to 12 million and its operating margin by
approximately 400 to 450 basis points.
Aftermarket operating income for the nine months ended
Sept. 30, 2007, of US$143.2 million compared to US$131.8 million
for the corresponding period in 2006. The increase in operating
income from the corresponding nine-month period in 2006 was
attributable to higher sales for parts and services partially
offset by the adverse impact of the work stoppage at the Painted
Post facility. This segment's operating margin of approximately
23.7% compared to 25.1% for the corresponding period in 2006.
The company estimates the work stoppage reduced this segment's
operating margin by approximately 100 to 150 basis points for
the nine months ended Sept. 30, 2007.
Bookings for the three months ended Sept. 30, 2007, of US$211.1
million were 2.5% above bookings for the corresponding period in
2006 of US$206.0 million. Bookings for the nine and twelve
months ended Sept. 30, 2007 of US$608.0 million and US$836.8
million, respectively, compared to bookings of US$607.8 million
and US$804.4 million, respectively, for the corresponding
periods ended Sept. 30, 2006. Bookings have been affected
adversely, but the company believes temporarily, by changes in
the procurement process and a delay in budget appropriations for
certain of the company's national oil company clients.
The backlog at Sept. 30, 2007, of US$294.1 million compared to
the backlog of US$282.7 million at Sept. 30, 2006.
Liquidity and Capital Resources
As of Sept. 30, 2007, cash and cash equivalents totaled
US$184.0 million and borrowing availability under the company's
US$500 million senior secured credit facility was
US$306.6 million, as US$193.4 million was used for outstanding
letters of credit.
In the first nine months of 2007, cash provided by operating
activities was US$187.7 million compared to US$92.1 million for
the corresponding period in 2006. The increase of
US$95.6 million in net cash provided by operating activities was
principally from changes in working capital and improved
operating performance. In the first nine months of 2007, capital
expenditures totaled US$15.0 million and the company prepaid
US$137.1 million of its outstanding indebtedness under its
senior secured credit facility. As of Sept. 30, 2007, total
debt was US$370.0 million and total debt net of cash and cash
equivalents was approximately US$186.0 million.
In August 2007, the company amended its senior secured credit
facility. The amended credit facility is a five year,
US$500 million revolving credit facility. The amendment
increased the size of the facility by US$150 million, lowered
borrowing costs 50 basis points to LIBOR plus 150 basis points
at present leverage and extended the maturity date from Oct. 29,
2009, to Aug. 30, 2012. The amendment also reduced the
commitment fee from 37.5 basis points to 30.0 basis points.
Painted Post Labor Agreement
The labor agreement covering approximately 400 represented
employees at the company's Painted Post facility in New York
expired Aug. 3, 2007. There was no agreement reached resulting
in a continuing work stoppage. The company implemented a
multiphase contingency plan that has been designed to allow for
uninterrupted service to its clients. The company estimates the
work stoppage reduced its operating income for three and nine
months ended Sept. 30, 2007, by approximately US$20 million,
which includes approximately US$10 million in higher costs,
principally for temporary workers, and US$10 million for margin
related to deferred sales. While the work stoppage has resulted
in higher costs and deferred sales, the company maintains its
commitment to the long-term improvement of its operations and
believes any short-term adverse impacts to its business are
worth incurring for whatever period necessary to meet its long-
term objectives.
Contingency plan update:
1. Approximately 180 temporary replacement workers have been
contracted since the first week of the work stoppage.
Temporary workers will be reduced as the company continues
recruiting permanent replacement workers and extends
subcontracting.
2. The company has begun the process of operating with a
permanent workforce in Painted Post, which currently stands
at 75 employees. This total includes both recently hired
permanent workers and bargaining unit employees who have
chosen to return to work.
3. Additionally, another twenty-five applicants have been
offered employment and are expected to begin training in
early November, bringing the total in-plant permanent
workforce to approximately 100.
4. Subcontracting has grown to approximately 35% of Painted
Post's labor hours and will continue, replacing the work of
approximately 150 people by year-end 2007.
5. Quality products continue to be shipped starting with the
second week of the work stoppage.
6. Production capacity will continue to ramp-up due to the
above planned actions.
Outlook
Demand for rotating equipment and aftermarket parts and services
continues to be strong but aftermarket bookings and revenues
continue to be adversely, but the company believes temporarily,
impacted by changes in the procurement process approval cycle
and a delay in the budget appropriations for certain of its
national oil company clients. The backlog of orders has
continued to increase to record levels. At Sept. 30, 2007,
72.4% of the backlog of US$1,750.8 million is scheduled to ship
in 2008 and beyond.
The company believes that its 2007 operating income will be in
the range of US$205 million to US$225 million, including a
potential FAS 106 non-cash curtailment gain related to the work
stoppage of approximately US$8 million to US$12 million.
About Dresser-Rand Group
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--).
DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF
-----------------------------------------------------------
Dresser-Rand Group Inc. has signed an alliance agreement with
Repsol YPF. The agreement covers sales of all Dresser-Rand
products and services. Dresser-Rand estimates the value of the
alliance agreement to be approximately US$100 million for
products and services over the next two years.
One steam turbine project for the Tarragona (Spain) refinery
valued at approximately US$13 million was secured in August
2007. Subsequently, in the month of October, two projects for
the Petronor Refinery (Bilbao, Spain) have been awarded with a
total value of approximately US$20 million. Dresser-Rand will
supply one process reciprocating compressor, one DATUM
centrifugal compressor and associated services.
"We're appreciative of the confidence that Repsol has placed in
Dresser- Rand," said Vincent R. Volpe, Jr., president and Chief
Executive Officer of Dresser-Rand. "As a new alliance partner,
we look forward to working with Repsol to provide value- adding
solutions through lowest life cycle cost for new equipment and
minimal emissions. We're also pleased to supply equipment to
the planned refinery expansions reflecting the continued
strength of this market segment, particularly as it relates to
expansion in the European market."
Repsol-YPF's decision to enter into an alliance with Dresser-
Rand was primarily based on the company's technical capability
as well as its proposal to reduce Repsol's total cost of
ownership of their assets. Repsol-YPF will be able to realize
considerable saving by not utilizing an EPC contractor for the
final design stages and procurement (after FEED) based on
Dresser-Rand's proprietary Corporate Product Configurator and
its Price Book e-tools.
About Repsol YPF
Repsol YPF, S.A. (IBEX: REP) is an integrated Spanish oil and
gas company with operations in 29 countries, the bulk of its
assets are located in Spain and Argentina. Repsol S.A. is one
of the world's ten largest private oil enterprises, employing
over 30,000 people worldwide. Repsol YPF operates five
refineries in Spain and four in Latin America and produces
chemicals, plastics, and polymers. It sells gas under the brands
Campsa, Petronor, and Repsol at more than 6,900 service stations
in Europe and Latin America. It is one of Spain's largest
sellers of liquefied petroleum gas.
About Dresser-Rand Group
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--).
GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell
-----------------------------------------------------------
UBS analysts have upgraded General Motors' shares to "buy" from
"sell," Newratings.com reports.
According to Newratings.com, the one-year target price for
General Motors' shares was increased to US$48 from US$24.
The analysts said in a research note that under the United Auto
Workers contract, General Motors' Tier 2 employees would earn
almost 50% less than the Tier 1 workers, while new core
employees would get total compensation in-line with that at
Toyota.
The analysts told Newratings.com that this year's contract
decreased "the number of skilled jobs, which would encourage
senior workers to accept buyouts." General Motors would be
"transformed" by 2010.
The contract accounts for US$3-billion potential cost savings,
Newratings.com notes, citing UBS.
This year's earnings per share estimate was decreased to US$2.75
from US$4.00, Newratings.com states.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. S&P says the outlook is stable.
ITI LTD: Posts INR1.24-Bil. Loss in Quarter Ended September 30
--------------------------------------------------------------
The unaudited financial results of ITI Ltd for the second
quarter ended Sept. 30, 2007, showed a net loss of
INR1.24 billion, a bit of an improvement from the
INR1.46-billion loss booked in the same quarter last year.
Total income jumped by 49% to INR3.2 billion with net sales
aggregating INR3.21 million. Operating expenses for the quarter
under review totaled INR3.83 million, bringing the company an
operating loss of INR505.8 million.
The company also recorded interest expenses of INR637.7 million,
depreciation of INR95.4 million and INR1.2 million in taxes.
A copy of ITI Ltd's unaudited financial results for the quarter
ended Sept. 30, 2007, is available for free at:
http://ResearchArchives.com/t/s?24b5
ITI Limited -- http://www.itiltd-india.com/default.htm-- is a
telecom company, which manufactures a range of telecom
equipment, including switching products; transmission systems,
such as satellite communication systems, optical line
terminating equipments and digital microwave systems; access
products, such as fixed wireless local loop systems and digital
local loop carriers; terminal equipment, such as telephones,
integrated services digital network products and video
conferencing systems; microelectronic products and software;
information technology products and telecom products for the
defense sector, and other products, including solar power
systems and bank mechanizing products. It also provides value-
added services, such as shared hub very-small aperture terminal
services, and public mobile radio trunked services and
turnkey solutions. Its customers include The Department of
Telecommunications, defense, railways, oil sector and corporates
in India, and certain African and South Asian nations.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Apr. 23, 2007, Credit Analysis & Research Ltd. revised the
rating assigned to the 'L' series long term bond issue of ITI
Limited to CARE D (SO) [Single D (Structured Obligation)] from
CARE AAA (SO) [Triple A (Structured Obligation))] with Credit
Watch. The rating revision took into account the delay in the
interest payment of the above said bond issue.
The TCR-AP reported on Nov. 3, 2006, that Fitch Ratings assigned
final National ratings of 'D(ind)(SO)' to ITI's INR550 million
'J-1' Series long-term bonds.
ITI has incurred losses for at least two consecutive years --
INR4.12 in FY2006-07 and INR4.51 billion in FY2006-06. The
company is a sick company as per provisions of India's Sick
Industrial Companies Act 1985.
KINETIC ENGINEERING: To Increase Capital to INR63,40,00,000
-----------------------------------------------------------
Kinetic Engineering Ltd's members will hold their extraordinary
general meeting on Nov. 6, 2007, to consider, among others, the
increase in the company's authorized share capital to
INR63,40,00,000 from the current INR50,00,00,000.
Specifically, Kinetic Engineering proposes to create 8,57,400
optionally convertible cumulative preference shares of
INR156 each and 24,560 unclassified shares of INR10 each to
increase the company's capital from INR50,00,00,000 divided
into:
-- 1,93,60,200 shares of INR10 each;
-- 1,50,00,000 redeemable non-convertible non-cumulative
preference shares of INR10 each;
-- 6,50,000 optionally convertible cumulative preference
shares of INR156 each;
-- 3,20,500 redeemable cumulative preference shares of
INR 156 each; and
-- 5,00,000 unclassified shares of INR10 each;
to INR63,40,00,000 divided into:
-- 1,93,60,200 shares of INR10 each;
-- 1,50,00,000 redeemable non-convertible non-cumulative
preference shares of INR10 each;
-- 15,07,400 optionally convertible cumulative preference
shares of INR156 each;
-- 3,20,500 redeemable cumulative preference shares of
INR156 each; and
-- 5,24,560 unclassified shares of INR10
The members will also consider approving the:
a. allotment, by preferential basis, to Micro Age Instruments
Pvt Ltd 8,65,384 optionally convertible cumulative
preference shares of INR156 each, fully paid-up,
convertible in full into maximum of 8,65,384 fully paid-up
equity shares of the face value of INR10 each at a price
of INR156 per share;
b. company's borrowing from time to time of money that may
exceed the aggregate of its paid-up capital and its free
reserves provided that the total amount so borrowed will
not exceed INR300 crore; and
c. the issuance, on preferential basis, to Reliance Capital
Ltd of 1,50,00,00 redeemable non-convertible non-
cumulative preference shares of INR10 each, fully paid at
par, for the redemption of 1,50,00,000 redeemable non-
convertible non-cumulative preference shares of INR10
each, fully paid-up, issued earlier by the company to RCL.
India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,
which specializes in two wheelers. The company has sold over 6
million vehicles in India. Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks. The company offers top-end bikes, such as Comet and
Aquila. It has a nationwide network of nearly 450 dealers and
over 1,000 service centers. Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.
For the 15 months ended Dec. 30, 2006, the company booked a net
loss of INR432.9 million. For the period Apr. 1, 2004, to
Sept. 30, 2005, the company incurred a net loss of
INR549.6 million.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm
---------------------------------------------------------------
Dresdner Kleinwort analyst Per Lindberg has kept his "buy"
rating on Alcatel-Lucent's shares, Newratings.com reports.
According to Newratings.com, the target price for Alcatel-
Lucent's shares was set at EUR8.
Mr. Lindberg said in a research note that Alcatel-Lucent sold
its 12.3% equity stake in Avanex for EUR33 million to Pirelli.
The sale shows Alcatel-Lucent's commitment to building up a cash
reserve to fund additional restructuring requirements,
Newratings.com states, citing Mr. Lindberg.
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, China,
Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and
Lucent Technologies Inc. completed their merger transaction, and
began operations as a communication solutions provider under the
name Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on Sept. 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.
ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched.
-------------------------------------------------------------
The long-term, US$277 million agreement announced in November of
2006 between Alcatel-Lucent and the University of Pittsburgh
Medical Center is progressing on schedule, as Alcatel-Lucent
hits key milestones.
UPMC's data center expansion projects are well underway; the
optical and IP/MPLS metro backbone will be carrying live
applications at the beginning of December; and the North
American headquarters project for U.S. Steel Tower has been
launched. In addition to moving forward within the scope of the
original contract, Alcatel-Lucent, in conjunction with its new
value-added reseller Johnson Controls, has been awarded an
additional US$11.8 million contract for a voice and data
wireless infrastructure project at the new Lawrenceville campus
for Children's Hospital of Pittsburgh of UPMC.
"A complete transformation of voice, data and video networking
on wired, wireless and optical infrastructures is a significant
undertaking," commented Mark Gilbert, industry analyst. "A
transformation of this type can demonstrate the real impact
communications can have in the advancement of health care
delivery."
In preparation for significant growth, two UPMC data centers
have been enlarged by over 3,000 square feet. Alcatel-Lucent is
currently working with clinical and data center administrative
system managers to design a multiple campus WLAN for mobile
users, and with a variety of third party manufacturers to
provide patient monitoring, nursing management systems, and
other critical applications.
The Alcatel-Lucent optical and IP/MPLS metro backbone, on
schedule for completion in December, will provide UPMC with a
foundation over which health care providers, administrators,
vendors and patients can communicate through various means with
unparalleled security, speed, and reliability, improving both
business efficiency and the quality of patient care.
Work began in September on the installation of voice, video, and
data infrastructure in the U.S. Steel building in Pittsburgh,
PA, which will house the executive headquarters of UPMC.
"With UPMC, Alcatel-Lucent is designing, installing, and
implementing a communications model that merges state-of-the-art
technology with a clear focus on user needs," said Hubert de
Pesquidoux, President of Alcatel-Lucent's Enterprise activities.
"Beyond physical infrastructure, our companies are building a
relationship to develop new technologies and applications that
will improve not only the healthcare industry, but patient care
as well."
"UPMC and Alcatel-Lucent have begun combining world class
healthcare and technology expertise to deliver the innovative
technologies necessary to create unbound healthcare," added Dan
Drawbaugh, Chief Information Officer, UPMC. "Over the next two
years, UPMC and Alcatel-Lucent will lead the way in building one
of the most advanced communications networks within the
healthcare industry underscoring UPMC's mission of enhanced
patient care."
About University of Pittsburgh Medical Center
The University of Pittsburgh Medical Center (UPMC) --
http://www.upmc.com-- is the largest integrated health care
enterprise in Pennsylvania and one of the leading nonprofit
health systems in the country. It has appeared eight times on
the prestigious U.S. News & World Report Honor Roll of
"America's Best Hospitals," most recently earning 13th position
in 2007. Widely recognized for its innovations in patient care,
research, technology and health care management, UPMC has
transformed the economic landscape in western Pennsylvania. The
region's largest employer, with 45,000 employees and nearly US$7
billion in revenue, UPMC comprises 19 tertiary, specialty and
community hospitals, 400 outpatient sites and doctors' offices,
retirement and long-term care facilities, an insurance plan, and
international ventures. Nearly 5,000 physicians are affiliated
with UPMC, including more than 2,300 employed physicians. Since
April 2005, UPMC has signed joint development agreements with
such industry leaders as IBM, Cerner, Alcatel and dbMotion
valued at more than US$175 million. UPMC and its partners aim
to commercialize innovative technologies and services that will
enhance the safety and efficiency of health care worldwide.
About Alcatel-Lucent in Healthcare
For healthcare providers and patients, Alcatel-Lucent provides a
complete platform that improves the patient's customer
experience and the efficiency of the provider's operations by
integrating communication throughout the healthcare delivery
system. Alcatel-Lucent, ensures the protection of patient data
and HIPAA compliance while also improving the speed of
notification and routing of critical information. Alcatel-
Lucent brings together all of the key infrastructure to create
an end-to-end solution that connects contact centers, wireless
medical devices, patient information systems and other critical
technology.
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, China,
Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and
Lucent Technologies Inc. completed their merger transaction, and
began operations as a communication solutions provider under the
name Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on Sept. 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.
ANEKA TAMBANG: Reports IDR3.8-Tril. Nine-Month Net Profit
---------------------------------------------------------
PT Aneka Tambang Tbk's unaudited consolidated net profit for the
first nine months of 2007 increased 374% to IDR3,831 billion,
and Earnings per Share of IDR401.69. This is compared to
IDR809 billion, and EPS of IDR84.80 of the the same period last
year. The significant increase is mostly due to higher prices
of nickel and gold and higher sales volumes of nickel ore and
nickel contained in ferronickel. The increase was assisted by a
relatively lower increase of Antam's cost of sales.
Net Sales
Antam's net sales for the nine months to September 30, 2007,
increased 143% to IDR8,270 billion from IDR3,401 billion. The
largest share of the IDR4,868 billion increase is attributed to
nickel ore sales, which accounted for 57%, followed by nickel
contained in ferronickel at 35% and gold at 8%. This is a
larger increase than the 53% increase of net sales in 2006,
attributed substantially all to nickel contained in ferronickel.
The increases of Antam's other products of silver, iron sands,
precious metals refinery services and other precious metals did
not significantly contribute to the increase of net sales and
bauxite ore sales decreased slightly.
Nickel ore sales increased 241% to IDR3,939 billion due to
higher prices and volumes. Nickel ore, substantially all sold
as saprolite to ferronickel and stainless steel producers in
Europe and North Asia, became the largest revenue earner ahead
of nickel contained in ferronickel. The ore is sold in short to
medium term contracts and priced in accordance with the
international spot price for nickel. Antam produced 5,205,907
wet metric tonnes of saprolite and exported 5,010,268 wmt in the
first nine months of 2007. The average price of saprolite
increased 53% to US$85.43/wmt. Antam boosted nickel ore sales
in 2007 by beginning to export saprolite nickel ore to China for
the first time. Antam has traditionally sold saprolite to Japan
and in the past four years began exporting saprolite to Eastern
Europe. China became a source of ore demand in 2006 as they
began to use old technology blast furnaces to make nickel
contained in pig iron for sale to domestic stainless steel
mills. Antam made a trial shipment to China in 2006 and held
tenders in February of 2007, which were won by three Chinese
companies for the export of two million tonnes of saprolite. In
2006, Antam exported 3.4 million wmt of saprolite. In 2007 due
to the new orders from China, Antam will boost saprolite exports
to approximately 5.5 million wmt. Depending on demand from
China, linked to a continuing strong nickel price, Antam will
likely export 5 to 6 million tonnes of wmt of ore in 2008.
Disappointingly, Antam's nickel contained in ferronickel sales
did not increase as much as Antam expected. Previously the
largest earner, nickel contained in ferronickel revenues
increased 101% to IDR3,377 billion due largely to higher prices
and volumes. Antam produced 12,258 tonnes of nickel contained in
ferronickel and exported 9,279 tonnes in the first nine months
of 2007. The average price of Antam's nickel contained in
ferronickel over the period increased 73% to US$18.28/lb.
Antam's nickel contained in ferronickel, which normally contains
about 20% nickel, is sold in medium to long term contracts, on a
spot-price basis, predominately to stainless steel mills in
Europe and North Asia. Due to a June 16th, 2007 leak that
occurred with Antam's recently constructed FeNi III smelter, the
increase in revenues from ferronickel was less that expected.
On August 26th, 2007 Antam switched on FeNi III after the
completion of partial repairs. In order to maintain safety and
prevent further leakages, Antam will continue to carefully
monitor the furnace and ramps up to 25 megawatts. Antam's 2007
revised production forecast remains at 16,000 tonnes of nickel
contained in ferronickel. This excludes 400-2,000 tonnes of
additional production from a potential toll smelting agreement.
To ensure a safe and stable operation, Antam estimates
production to reach 17,000 tonnes of nickel contained in
ferronickel in 2008.
Gold remained the third largest revenue earner as revenues
increased 103% to IDR737 billion to higher volumes and prices.
Antam produced 2,128 kg of gold and sold 3,730 kg of gold in the
first nine months of 2007. Silver, a by product of Antam's gold
refining process, generated IDR72 billion, a 33% increase. Antam
produced 17,949 kg of silver (equivalent to 577,074 oz) and sold
18,894 kg (equivalent to 607,456 oz) in the first nine months of
2007. The prices of Antam's gold and silver rose 12% to
US$673.24/oz and 14% to US$13.17/oz, respectively. Antam will
likely produce 2,980 kg (equivalent to 95,809 oz) of gold and
22,700 kg (equivalent to 729,822 oz) of silver. Antam refines
its own gold and silver at its Logam Mulia refinery, Southeast
Asia's only precious metals refinery. Producing gold and silver
that is internationally accredited for its purity and quality,
Antam generates revenue through refinery services. In the first
nine months of 2007, Logam Mulia's revenues increased 118% to
IDR23 billion. Running at only 35% of its current 75 tonnes
(75,000kg or 2.4 million oz) gold refining capacity, there is
significant potential upside at Logam Mulia once investment in
the Indonesian gold industry fully revives.
Not unexpectedly, Antam's bauxite ore sales fell 19% to IDR110
billion, accounting for 1% of Antam's total sales. The drop is
due to the low demand for the low quality bauxite that is left
at Antam's nearly-exhausted Bintan island facility. Antam's
bauxite sales volumes dropped 23% to 826,071 wmt and the average
price rose 7% to US$14.61/wmt. The next stage for Antam's
bauxite division will be to move into alumina processing, using
the 84 million tonnes of bauxite reserves the company holds at
Tayan, West Kalimantan.
Although insignificant to Antam's total revenues, it is worth
noting that Antam's iron sands revenues increased 864% to IDR9
billion.
Antam's revenues were 97% exports, and substantially all US
dollar-denominated. The three biggest customers, accounting for
almost half of total revenues, were all buyers of ferronickel,
namely Avarus AG, Yieh United and Posco. The share of revenues
from the nickel division amounted to 89% of Antam's total
revenues. Of that amount, 48% came from nickel ore and 41% came
from ferronickel. In 2006, nickel ore and ferronickel accounted
for 34% and 49% respectively. The reversal in relative
importance of nickel ore and nickel contained in ferronickel is
the increase in nickel ore exports to China and the June 2007
leak at the FeNi III smelter. In the future Antam plans to
generate most of its revenues from the more value-added
processing activities. Antam's gold sales held relatively
steady at 9% of total revenues. With the nickel division
traditionally accounting for about two thirds of revenues, in
the years ahead Antam intends to decrease the relative share of
nickel to its traditional contribution, by maintaining a
diversified revenue mix through processing bauxite reserves into
alumina and acquiring gold assets.
Cost of Sales
Antam's cost of sales increased IDR922 billion or 49% to
IDR2,818 billion. The largest contributor to the increase was
materials, followed by ore mining services and royalties. The
pace of increase was reduced, compared to 2006 when the cost of
sales increased IDR719 billion, or 61% to IDR1,895 billion. In
2006, by contrast, the main contributor to the increase was
fuel, followed by materials and depreciation.
Antam's production cost, rose IDR1,308 billion, or 66%, to
IDR3,284 billion. Again the magnitude of increase was less than
in 2006. In 2006, Antam's production cost rose 77% to IDR1,976
billion. As a percentage of the total 2007 production cost
increase, materials accounted for 34%, ore mining services 16%,
royalties 11%, salaries 9%, depreciation 7%, fuel/others both 6%
and repairs 5%. In 2006, by contrast, fuel was 30% of the
increase in production cost, followed by materials 26%,
depreciation 17%, ore mining services 13% and salaries 11%.
The five top costs in 2007 in descending order were materials,
ore mining services, fuel, depreciation and salaries. The only
change from 2006 is that fuel and ore mining services swapped
positions. In 2007, they accounted for 88% of the cost of
sales, compared to 81% in the first nine months of 2006. The
increase and change of structure of Antam's costs is due to
increased ore exports, lower share of ferronickel revenue,
higher international oil prices and higher prices for all mining
inputs and services, including labour.
Materials was the top cost item at IDR819 billion, accounting
for 25% of the total production cost. In 2006, materials rose
162% and accounted for 19% of the total production cost. This
cost item increased 122% in 2007, the second largest increase
after royalties, due primarily to the cost of buying third-party
nickel ore, although also affected by generally rising prices of
other consumables and spare parts. Normally Antam will use its
own ore to feed its processing facilities. However in 2003
Antam signed a deal with PT Inco, to jointly develop a portion
of their nickel ore deposit called East Pomalaa, next to Antam's
property. Antam will process 1,000,000 wmt of East Pomalaa
saprolite nickel ore at least until the agreement expires in
mid-2008. The ore price is linked to the international spot
price and became very expensive. However, in so far as Antam's
operating margins continue to widen, Antam's own deposits can be
used for later developments and the freed up ore capacity can be
used to boost exports of ore Antam couldn't otherwise currently
process into ferronickel, Antam will continue to use ore from PT
Inco's East Pomalaa.
Ore mining services rose 63% to IDR541 billion and accounted for
16% of the total production cost. This compares with the same
period in 2006 when the cost rose 50% and was 17% of the total
production cost. Antam uses ore mining services for
substantially all of its ore excavation and transportation. As
Antam's ore exports increases have increased so to has the use
of ore mining services. As well, as the contractors production
costs increase, such as fuel, ore mining services costs
increase. Antam uses a combination of related and third party
contractors for its ore mining services. The terms for the
related party transactions are fair and what could have been
achieved on an arms length basis as evidenced by what Antam has
arranged with its third party contractors. Antam's ore mining
services would have increased more if Antam were not buying ore
from PT Inco.
The third largest production cost item is fuel, which rose 21%
to IDR423 billion and accounted for 13% of the total production
cost. This compares with 2006 when the cost rose by a much
larger 285% and was 18% of the total cost of production. The
increase is due to rising international oil prices and increased
ferronickel production. The average fuel price Antam paid for
its power plant fuel rose by 12% to IDR3,657 per litre from
IDR3,264 per litre.
Antam's fuel consumption is mostly attributed to energy-
intensive ferronickel production. Second only to the production
of aluminum in terms of power requirements, the cost of
producing ferronickel is about 50% fuel. Antam's 102 megawatt
dual-fired power plant was built and is operated by Wartsila of
Finland. It generates all the power required for Antam's three
smelters, FeNi I, FeNi II and FeNi III. Generally requiring
about 10,000 litres per tonne on nickel contained in
ferronickel, Antam's total fuel cost is over 90% attributed to
the Pomalaa ferronickel facility.
Antam has a plan to significantly reduce its production costs by
converting from costly diesel to a less expensive fuel, such as
natural gas, hydro or coal.
Due to FeNi III, Antam's depreciation cost item rose 37% to
IDR353 billion and accounted for 11% of the total production
cost. In 2006, by comparison, depreciation rose 124% and
accounted for 13% of the total production cost.
Due to the improved performance of the company, salaries rose
49% to IDR351 billion and accounted for 11% of the total
production cost. In 2006, salaries rose by 64% and accounted
for 12% of the total production cost.
Other than the top cost items, other notable changes includes
the 191% increase of royalty payments to IDR224 billion, which
is associated with the increased value of Antam's sales.
Antam's repairs and maintenance expense increased, largely due
to FeNi III, by 321% to IDR80 billion. Antam's Other costs
increased 105% to IDR164 billion.
Except for ore mining services, in all of Antam's top five cost
of sales items, for the first nine months of the year, the rate
of increase was smaller, in 2007 than in 2006. This is
especially true for fuel.
Gross Profit, Gross Margin
As revenues increased at a greater pace than cost increases,
Antam's gross profit rose IDR3,946 billion, or 262% to IDR5,452
billion. As such, Antam's gross margin widened to 66% from 44%.
Operating Expenses, Profit, Margin
Antam's operating expenses rose 69% to IDR320 billion, largely
due to the 48% increase of general and administrative expenses
to IDR261 billion. General and administrative expenses
increased due to the 65% increase of salaries to IDR135 billion
and the IDR40 billion provision for doubtful accounts, which did
not exist in 2006. Another notable item in the general and
administrative category, Other expenses decreased 31% to IDR22
billion. Besides general and administrative expenses, operating
expenses rose due to a 122% increase for the Tokyo selling and
marketing activities to IDR20 billion and a 806% increase for
exploration to IDR39 billion.
Antam's operating profit rose IDR3,815 billion, or 290% to
IDR5,132 billion. As such, Antam's operating margin widened to
62% from 39%.
Other Income and Net Income
For the first nine months of 2007, Antam booked other income of
IDR321 billion compared to other expenses of IDR157 billion in
2006. The main reasons for the difference was income generated
from penalties and insurance claims, dividend payments, higher
interest income, lower interest expenses and foreign exchange
gains in 2007 versus foreign exchange losses in 2006.
Antam received IDR86 billion for penalties related to FeNi II
and FeNi III. Due to the several months delay in delivery of
the FeNi III smelter in 2006, Antam filed a claim from Antam's
contractors, Mitsui & Co Ltd and Kawasaki Heavy Industries Ltd.
Also in April 1007, Antam received two settlements for insurance
claims related to the breakdown of FeNi II in 2005, amounting to
IDR8 billion.
Antam received a IDR68 billion dividend from its gold joint
venture with Newcrest Singapore, PT Nusa Halmahera Minerals.
Due to larger cash holdings and higher Rupiah interest rates and
despite lower US dollar interest rates, Antam's interest income
rose 324% to IDR83 billion. Although the Rupiah strengthened
during the period, which has the affect of making Antam's US
dollar assets worth less, due to the repayment of Antam's US
dollar bonds, Antam booked a foreign exchange gain of IDR110
billion versus a foreign exchange loss of IDR61 billion during
the same period 2006. Also due to debt repayment, Antam's
interest expense decreased 42% to IDR56 billion.
Antam achieved net income of IDR3,831 billion, a 374% increase
over the first nine months of 2006.
Balance Sheet
Antam 's balance sheet strengthened considerably during the
first nine months of 2007, due to Antam's large cash increases
and debt reduction activities. Antam's total assets grew
significantly, rising 64% to IDR10,938 billion, as cash grew
438% to IDR4,380 billion. Total long term debt was reduced 55%
to IDR788 billion.
Long term debt accounted for 9% of total assets down IDR811
million, from 27% of total assets. Antam's current ratio
weakened slightly to 364% from 378%, with Antam's working
capital increasing to 5,127 billion from IDR1,935 billion. The
ratio of Antam's total liabilities to equity was 47% down from
89% and Antam's balance sheet was funded 32:68, liabilities to
equity. Antam has improved its balance sheet and is poised to
leverage up and make growth investments.
Antam had IDR7,463 billion in total stockholder's equity, which
rose 111% from the first nine months of 2006, of which IDR6,484
billion was retained earnings.
Assets
As a result of the large cash increase, Antam's current assets
increased 169% to IDR7,068 billion, or 65% of total assets.
Antam's non-current assets decreased 4% to IDR3,869 billion due
mostly to the depreciation of fixed assets.
Antam's cash and cash equivalents rose 438% to IDR4,380 billion,
due to increased prices and volumes. As a result of Antam's
larger cash holdings, and debt reduction, Antam had net cash of
IDR3,381 billion compared to net debt at the end of the same
period in 2006 of IDR996 billion. Antam's cash was 89% in US
dollars, the rest substantially all Rupiah, and 77% held in time
deposits, with the rest in cash accounts and all spread out
amongst a number of domestic banks. Rupiah interest rates on
the time deposits increased compared to the previous period,
ranging from 3.25% - 11.50%. US dollar interest rates decreased
to a range of 3.55% - 9.30%.
Antam's third party trade receivables increased 9% to IDR923
billion, with the large customers, like in 2006, such as Avarus
AG, Raznoimport Nickel Ltd, Mitsui & Co. New entrants to this
list include Chinese buyers of nickel ore, such as Shanghai
International Trading Co Ltd. Antam believes the IDR45 billion
allowance for doubtful accounts is enough to cover potential
losses from the non-collection of the accounts.
Antam's inventories increased 126% to IDR1,588 billion, due
mostly to the IDR325 billion or 85% increase of product
inventory as well as the IDR244 billion of inventory in transit,
which didn't exist in the same period of 2006, and the 84%
increase in the value of spare parts and supplies to IDR551
billion. Product inventory rose largely due the 396% increase
of ferronickel to IDR502 billion, due to the higher cost of
producing ferronickel.
Antam's fixed assets, or property plant and equipment decreased
11% to IDR3,080 billion due to depreciation. Depreciation of
fixed assets increased 36% to IDR356 billion at the end of the
period in 2007. The decrease could not be offset by the 37%
increase in deferred exploration and development expenditure to
IDR485 billion nor the 64% increase in deferred tax assets to
IDR189 billion.
Liabilities
Antam's total liabilities increased IDR336 billion, or 11%, to
IDR3,475 billion, due to the 179% increase of current
liabilities to IDR1,941 billion and despite the 37% decrease of
non-current liabilities to IDR1,534 billion. Antam's current
liabilities made up 56% of total liabilities.
The main factor contributing to the increase of Antam's current
liabilities was the 396% increase of taxes payable to IDR1,110
billion, due to higher taxable income. Taxes payable made up
57% of current liabilities. Antam's third party trade payables
increased 68% to IDR131 billion, with the largest amount, or
IDR82 billion owed to PT Inco for nickel ore, 71% owed in US
dollars and 88% due within 30 days. Accrued expenses rose 43%
to IDR451 billion with the largest increases attributed to the
IDR117 billion accrued for raw material purchases compared to
substantially no accrual in 2006, the 238% increase to IDR105
billion for exploitation costs and the IDR90 billion for mining
and transportation services fee. Current maturities of
investment loans rose 284% to IDR211 billion, with IDR121
billion owed to PT Bank Central Asia and the IDR90 billion owed
to PT Bank Mandiri.
Antam's non-current liabilities decreased 37% to IDR1,534
billion due largely to the reduction of debt with the repayment
of the IDR1,547 billion of US dollar bonds. To help repay the
bonds, Antam increased its investment loan with PT BCA from
IDR263 billion to IDR588 billion and drew down IDR411 billion on
a new investment loan with PT Bank Mandiri. The combined effect
of repaying the US dollar bonds and increasing its loans with
BCA and Mandiri was to lower investment loans 45% to IDR999
billion. Less current maturities, Antam's total interest
bearing obligations were lowered 55% to IDR788 billion. The
average interest rate on the BCA and Mandiri facility in 2007
was 6.86%.
Antam's other major non-current liability is for pensions and
other post-retirement obligations, which increased 9% to IDR662
billion.
Cash Flow
Antam's cash flows are indicative of the higher prices and sales
volumes generated throughout the first nine months of 2007.
They also show the higher costs of production and continued
reduced cash flows for investment, following the last of the
investment made on the FeNi III expansion, as Antam prepares to
make its next major investment.
Antam's free cash flow, calculated as cash flow from operations
less capital expenditure amounted to IDR4,910 billion compared
to IDR712 billion in the same period of 2006. Antam's capital
expenditures decreased 63% to IDR90 billion in the first nine
months of 2007 from IDR242 billion in 2006. Unlike in 2006, the
largest expenditure of IDR60 billion was for the gold division,
rather than for the nickel division.
Antam's cash flows from operations increased 447% to IDR4,198
billion as receipts from customers rose 170% to IDR8,248
billion. Unlike the 107% increase in 2006, payments to
suppliers increased by a lesser 56% to IDR2,758 billion.
Payments to commissioners, directors and employees increased 47%
to IDR490 billion. In line with higher income, payments for tax
increased 194% to IDR1,013 billion.
Antam's cash flows used for investing activities decreased 99%
to IDR5 billion as payment for the construction of FeNi III
smelter came to an end. Payments for the acquisition of
property, plant and equipment decreased 63% to IDR90 billion.
Antam's expenditures for exploration and development rose 60% to
IDR157 billion. Other cash flows from investing activities
include the IDR86 billion, or 682% increase of cash receipts for
payment of penalty and insurance claims and the IDR121 billion
dividend payment.
Antam's cash flows used in financing activities increased 202%
to IDR973 billion, as Antam repaid IDR352 billion of long term
debt, 878% more than in the same period of 2006. Antam made a
dividend payment of IDR621 billion, a 117% increase over the
same period of 2006.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
The Troubled Company Reporter-Asia Pacific reported on Oct. 24,
2007, Moody's Investors Service has put on review for possible
upgrade the B1 corporate family rating of PT Aneka Tambang
(Persero) Tbk.
On Dec. 4, 2006, that Standard & Poor's Ratings Services raised
its long-term corporate credit rating on Indonesian state-owned
miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is
stable. At the same time, Standard & Poor's also raised to
'B+', from 'B', the rating on the senior unsecured notes issued
by Antam Finance Ltd. and guaranteed by Antam.
ANEKA TAMBANG: Signs US$2-Mil. Feasibility Study w/ Tsingshan
-------------------------------------------------------------
PT Aneka Tambang has signed an agreement that will cost around
US$2 million with China's Tsingshan Holding Group to conduct a
feasibility study on a steel project in Maluku island, Antara
News reports.
According to Antara, the study aims to explore possibilities of
setting up an integrated stainless steel facility, which
includes a power plant and a ferro-nickel plant at Antam's
laterite ore concession on Obi island.
Antam Chief Dedi Aditya Sumanegara told the Indonesian news
agency that the agreement is part of the company's effort to
find new ways to increase shareholder's value.
Antara relates that the the the study is expected to be
completed by August 2008 Antam gave no estimate how much the
potential venture might cost. A joint venture company will
only be set up if the feasibility study shows satisfactory
result, the report adds.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
The Troubled Company Reporter-Asia Pacific reported on Oct. 24,
2007, Moody's Investors Service has put on review for possible
upgrade the B1 corporate family rating of PT Aneka Tambang
(Persero) Tbk.
On Dec. 4, 2006, that Standard & Poor's Ratings Services raised
its long-term corporate credit rating on Indonesian state-owned
miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is
stable. At the same time, Standard & Poor's also raised to
'B+', from 'B', the rating on the senior unsecured notes issued
by Antam Finance Ltd. and guaranteed by Antam.
BANK NISP: Nine-Month Net Profit Up 20% to IDR206.3 Billion
-----------------------------------------------------------
PT Bank NISP's net profit for the first nine months of 2007
increased 20% to IDR206.3 billion, from the IDR171.5 -billion
profit booked in the same period last year, Thomson Financial
reports.
According to the report, the bank said fee-based income rose 87%
to IDR247.4 billion, while net interest income grew 37% to
IDR872.6 billion.
The increase of fee-based income was due to a rise in marketable
securities transactions, forex gains as well as increased
activities in investment banking, wealth management, insurance
and trade finance, the report says.
Thomson notes that the bank's net interest margin increased 5%
from 4.6%.
At end-September, the bank's net non-performing loan ratio had
decreased to 2.1% from 2.8% a year earlier, while the bank's
loan to deposit ratio increased to 91.0% from 81.9% previously,
the report adds.
PT Bank NISP Tbk -- http://www.banknisp.com/english/index.html
-- categorizes its products into two groups: Funding, which
consists of savings and deposits, and Lending, consisting of
working capital loans, investment loans and consumer loans. In
addition, the bank has three service categories: Individual,
Corporate and Others. As of January 18, 2006, the bank has 29
branch offices, 101 representative offices and 26 cash offices
throughout the country. The Bank is headquartered in Jakarta,
Indonesia.
* * *
The Troubled Company Reporter-Asia Pacific reported on
Feb. 1, 2007, that Fitch Ratings affirmed all the ratings of
PT Bank NISP Tbk as follows:
* Long-term foreign and local currency Issuer Default ratings
'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '3'.
The Outlook for the ratings was revised to Positive from Stable.
BANK TABUNGAN: Pefindo Upgrades "idA" Bond Rating to "idA+"
-----------------------------------------------------------
Pefindo upgraded its ratings for PT Bank Tabungan Negara and the
Bank's Bonds X-XII amounting to IDR3.25 tn to "idA+"from "idA",
while the Bank's subordinated Bond I/2004 of IDR250 billion is
upgraded to "idA"from "idA-". A "stable"outlook is assigned to
the ratings.
The rating upgrade reflects continuing support from Government
of Indonesia as the controlling shareholder, BTNG's strong
presence in housing ownership loan market especially for low to
middle income classes, and improving financial profile.
However, the ratings are still constrained by the bank's
exposure to concentration risk in funding and wide maturity
mismatch.
Established under the name of Postpaarbank in 1897, the Bank's
name was several times changed before it is known as Bank
Tabungan Negara in 1963 up until now. In 1974, BTNG was
appointed as the housing loan financing institution for low to
medium income classes in order to support the government's
housing development program. With total assets of IDR33.4
trillion as of June 2007, BTNG commanded around 2% of banking
industry assets.
As of 2006, the Bank delivered services through 227 outlets and
876 post offices, of which 589 offices are on-line with BTNG's
offices throughout Indonesia. The Bank's operation is also
supported by 211 self-owned ATMs, which are also connected to
around 6,000 units ATM Link. As to date, the Government of
Indonesia still holds 100% ownership at BTNG.
About Bank Tabungan
Headquartered in Jakarta, Indonesia, Bank Tabungan Negara
(Persero) -- http://www.btn.co.id/-- is a state-owned bank
involved in commercial banking. In 1974, Bank Tabungan was
appointed as the financing institution for low- to medium-income
housing in an effort to support the Government's housing
development program. Nonetheless, BTN suffered huge losses from
large corporate lending during the 1997 economic crisis. The
Government then recapitalized the Bank, and still wholly owns
it.
BTN is now the smallest state bank, but retains a dominating 31%
share in housing loans as of end-2004. In 2002, the Government
directed it to focus on commercial housing loans. Hence, its
subsidized housing loans dropped to 44% of its portfolio at July
2005 from 75% at end-2002.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Oct. 19, 2007, that Moody's Investors Service has raised the
foreign currency long-term debt and foreign currency long-term
deposit ratings of Bank Tabungan Negara.
-- The foreign currency long-term deposit rating was raised
to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating,
Baa2 global local currency deposit rating and D- BFSR were
unaffected.
All ratings carry a stable outlook
CSM CORPORATAMA: Moody's Downgrades Bond Ratings to Ba1.id
----------------------------------------------------------
PT Moody's Indonesia has downgraded PT CSM Corporatama's
national scale issuer and bond ratings to Ba1.id from Baa2.id.
The ratings are on review for possible further downgrade.
"The ratings downgrade mainly reflects the heightened
refinancing risk with regard to RENT's IDR100 billion bond due
November 11, 2007," says Joko Widodo, Moody's lead analyst for
the company, adding, "As collaterals for bond obligation are
still actively being rented by customers, the company is now in
discussion with domestic and international banks for refinancing
loans while it also needs to include ex-rental assets sale to
meet such repayment. As such, Moody's has concerns whether
sufficient funding can be put in place in time given the very
close maturity date."
In addition, the Ba1.id ratings recognize RENT's relatively high
leverage and low interest cover with current EBIT coverage of
around 1.0x.
RENT has been experiencing a declining operating profile, as a
result of unavailability of cars for servicing due to a time
mismatch of investment capex. Combined with the increase in
debt-funded fleet and lower than expected car sales, this has
resulted in a weakening of the financial profile.
Partially mitigating such concerns, Moody's acknowledges the
company's long-term corporate customer contracts with some well-
established local as well as multinational customers. Moreover,
RENT has benefited from its strong relationship with its
minority shareholder, Indomobil, one of the largest automotive
distributors in the country, which is also one of the major car
suppliers to the company. The collaboration with Europcar also
brings some advantages to the company such as its network,
skilled employees and integrated software.
The ratings would be downgraded if RENT fails to meet the
upcoming bond repayment. Additionally, a failure to improve its
operating profile would also be negative for the ratings. The
key financial indicators for such trend include:
1) if RENT's EBITDA margin falls below 40%; and/or
2) there is a material increase in debt such that its
EBITDA/Interest is lower than 1.0 -1.2x.
On the other hand, the ratings would be confirmed if the IDR100
billion bonds are successfully repaid or refinanced.
About CSM Corporatama
Headquartered in Jakarta, PT CSM Corporatama's main business
activities are car rental, new & used car sales, and fuel & gas
station services. RENT is 99.86% owned by PT Hamfred Pte Ltd
Singapore with the remaining 0.07% owned by PT Indomobil Sukses
International Tbk (Indomobil); the remaining 0.07% is owned by
PT Unicor Prima Motor. The Company is also the holder of
Europcar's exclusive network for Indonesia. Europcar is a
leading global rental company headquartered in France.
GOODYEAR TIRE: Earns US$668 Million for Third Quarter 2007
----------------------------------------------------------
The Goodyear Tire & Rubber Company has reported record third
quarter sales of US$5.1 billion, up 3 percent from last year,
offsetting lower volumes with higher prices and a richer product
mix.
Improved pricing and product mix in all five business units
drove revenue per tire up 7 percent over the 2006 quarter.
Lower volumes reflect the strategic decision to exit certain
segments of the private label tire business in North America,
along with weak markets.
"Our outstanding third quarter is evidence of the success we are
seeing in marketing our premium product lines while remaining
focused on improving our cost structure," said Robert J. Keegan,
chairman and chief executive officer. "Despite market
challenges, our results are among the best ever achieved by
Goodyear.
"Our product, brand, customer and geographic mix drove margin
expansion," he said. The company achieved a gross margin of 20
percent in the quarter, up from 17.4 percent a year ago.
"North American Tire delivered dramatic earnings improvement
despite lower volumes. This reflects its new product success,
strong marketing initiatives and cost savings efforts."
Each of the five business units achieved double digit or better
percentage growth in segment operating income for the quarter.
The company's three emerging markets businesses increased sales
15 percent and segment operating income 24 percent over last
year.
Mr. Keegan said the company made further progress during the
third quarter on its plan to achieve US$1.8 billion to US$2
billion in gross cost savings by the end of 2009. "We have now
achieved nearly US$900 million in savings and remain on track to
reach our four-year goal."
Third quarter 2007 income from continuing operations was US$159
million (67 cents per share). This compares to a third quarter
2006 loss from continuing operations of US$76 million (43 cents
per share).
Segment operating income benefited from improved pricing and
product mix of US$179 million in the third quarter of 2007,
which more than offset increased raw material costs of US$23
million.
Favorable foreign currency translation positively impacted sales
by US$232 million and segment operating income by US$33 million
in the quarter.
The 2007 third quarter was also impacted by after-tax
rationalization and accelerated depreciation costs of US$6
million (2 cents per share), tax expense related primarily to a
tax law change of US$12 million (5 cents per share) and a gain
on asset sales of US$10 million (4 cents per share).
The third quarter of 2006 included US$132 million (75 cents per
share) in after-tax rationalization and accelerated depreciation
costs.
Goodyear had third quarter 2007 net income of US$668 million
(US$2.75 per share), which includes discontinued operations of
US$509 million (US$2.08 per share). Included in discontinued
operations was an after-tax gain of US$517 million (US$2.12 per
share) on the sale of the company's Engineered Products
business. In the third quarter of 2006, the company had a net
loss of US$48 million (27 cents per share). All per share
amounts are diluted.
Business Segments
Total segment operating income from continuing operations was
US$382 million in the third quarter of 2007, an all-time high
and up 35 percent from the 2006 period.
Asia Pacific Tire, Latin American Tire, European Union Tire, and
Eastern Europe, Middle East and Africa Tire achieved record
sales.
All five business units had higher segment operating income
compared to last year, with Asia Pacific Tire and Eastern
Europe, Middle East and Africa Tire setting records for any
quarter. Segment operating income for European Union Tire and
Latin American Tire set third quarter records.
North American Tire third quarter sales were down 6 percent
compared to the 2006 period, primarily due to lower volume
resulting from the company's exit from certain segments of the
private label tire business as well as weak original equipment
and replacement markets. This was partially offset by market
share gains in Goodyear brand tires and improved pricing and
product mix.
Third quarter segment operating income is the highest since the
third quarter of 2001. It was up 247 percent compared to the
2006 quarter due to improved pricing and product mix of US$60
million, which more than offset increased raw material costs of
US$8 million.
European Union Tire third quarter sales increased 9 percent over
last year as a result of improved pricing and product mix and a
favorable impact from currency translation of US$108 million,
which more than offset lower volume.
Segment operating income for the third quarter increased 11
percent compared to 2006 as pricing and product mix improvements
of US$55 million more than offset US$13 million in higher raw
material costs. Also impacting results were favorable foreign
currency translation of US$7 million, increased conversion costs
and lower unit volume.
Eastern Europe, Middle East and Africa Tire third quarter sales
were up 13 percent compared to 2006. This resulted from
improved pricing and product mix and a favorable impact from
currency translation of US$37 million that more than offset
lower unit volume.
Segment operating income improved 12 percent for the third
quarter due to improved pricing and product mix of US$31 million
that more than offset less than US$2 million in higher raw
material costs. Also impacting results were favorable foreign
currency translation of US$5 million as well as higher
conversion costs, partially the result of a strike in South
Africa, and lower volume.
Latin American Tire sales increased 20 percent from the third
quarter of 2006 due to higher unit volume, improved pricing and
product mix and a favorable impact from currency translation of
US$40 million.
Third quarter 2007 segment operating income increased 29 percent
from last year due to higher unit volume and improved pricing
and product mix of US$20 million, which more than offset higher
raw material costs of US$5 million. Results also benefited from
favorable currency translation of US$18 million. Higher
conversion costs were a partial offset.
Asia Pacific Tire third quarter sales were 12 percent higher
than the 2006 period primarily due to improved pricing and
product mix and a favorable impact from currency translation of
US$40 million, which offset lower volume.
Segment operating income increased 46 percent in the 2007 third
quarter, primarily due to improved pricing and product mix of
US$13 million, reduced raw material costs of US$4 million and
US$3 million of favorable foreign currency translation. Higher
SAG costs were a partial offset.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
The Troubled Company Reporter-Asia Pacific reported on June 8,
2007, that Standard & Poor's Ratings Services raised its ratings
on the class A-1 and A-2 certificates from the US$46 million
Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-
Backed Series 2001-34 Trust to 'B' from 'B-' and removed them
from CreditWatch, where they were placed with positive
implications on May 14, 2007.
The rating actions reflect the May 31, 2007, raising of the
rating on the underlying securities, the 7% notes due March 15,
2028, issued by Goodyear Tire & Rubber Co., and its removal from
CreditWatch positive.
On March 15, 2007, that Fitch Ratings affirmed ratings for The
Goodyear Tire & Rubber Company and revised the Rating Outlook to
Stable from Negative.
-- Issuer Default Rating 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';
-- Senior unsecured debt 'CCC+/RR6'.
Goodyear Dunlop Tires Europe B.V.
-- EUR505 million European secured credit facilities 'BB/RR1'
Moody's Investors Service affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1. Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed,
as was the company's Speculative Grade Liquidity rating of
SGL-2. The outlook has reverted to stable from negative.
MEDIA NUSANTARA: Earns IDR326 Bil. in First Nine Mos. of 2007
-------------------------------------------------------------
PT Media Nusantara Citra's net income for the first nine months
of 2007 increased 51% to IDR326 billion, compared to a year ago,
Channel NewsAsia reports.
According to the report, the company's revenue also increased by
51% to IDR2.2 trillion rupiah.
The company said that it was due to synergies between media
subsidiaries that allowed them to achieve higher revenue and
improved efficiency, the report adds.
Headquartered in Jakarta, PT Media Nusantara Citra
-- http://www.mnc.co.id/-- is an integrated media company with
operations in television broadcasting network, radio and print
media. It is the leader in Indonesia's FTA TV broadcasting
market, owning 3 FTA TV networks out of a total of 11, and
captured the largest audience and ADEX shares in 2005. MNC is
100% owned by PT Bimantara Citra Tbk, which is listed on Jakarta
Stock Exchange.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its
'B+' long-term local and foreign currency corporate credit
rating on Indonesia's integrated media company, PT Media
Nusantara Citra. The outlook has been revised to positive from
stable.
On Sept. 19, 2006, that Moody's Investors Service has affirmed
its B1 rating for the senior unsecured bonds issued by PT Media
Nusantara Citra following the issuance's completion. At the
same time, Moody's has affirmed its B1 corporate family rating
for MNC. Both ratings have been removed from their provisional
status. The ratings outlook is stable.
PT INCO: Board Approves Proposed US$0.978/Share Interim Dividend
----------------------------------------------------------------
PT International Nickel Indonesia Tbk's Board of Commisioners of
the Company approved the proposal of the Board of Directors to
distribute an interim 2007 dividend of US$0.9787 per share,
consisting of a nominal interim dividend of US$0.0250 per share
and an extraordinary interim dividend of 0.9537 per share. The
dividend is payable on December 7, 2007 to shareholders of
record as of November 23, 2007. Indonesian shareholders will be
paid in the Rupiah equivalent of the US dollars amount based on
the Bank of Indonesia middle rate on November 23, 2007. Foreign
shareholders will be paid in US Dollars.
The decision to pay a total interim dividend of US$0.9787 per
share was made in light of the Company's strong performance
through the first nine months of 2007 and its current strong
financial condition.
The Company will also propose a stock split with a ratio of 10:1
representing a change in nominal value of the shares of the
Company from IDR250 per share to IDR25 per share. The proposal
has been approved by The Board of Commissioners. Implementation
of the stock split is subject to obtaining approval of the
shareholders of the Company and the Jakarta Stock Exchange. The
Company will issue a press release at a later date to confirm
the date of the extraordinary general meeting of shareholders to
consider the stock split.
Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer
with a production facility and mine are in Sorowako, Sulawesi,
where it has a contract agreement until 2025. It produces
nickel matte, an intermediate product, from lateritic ores at
its integrated mining and processing facilities near Sorowako on
the island of Sulawesi. Inco Limited of Canada holds a 60.8%
stake of the company and Sumitomo Metal Mining Co Ltd. holds a
20.1% stake.
* * *
As of October 29, 2007, the company currently holds Standard and
Poor's long-term foreign and local issuer credit ratings both at
BB- rating.
As of As of October 29, 2007, the company currently holds Fitch
Rating's BB LT Issuer Default rating and Foreign Currency LT
Derb Rating at BB.
TELKOM INDONESIA: 3Q Net Profit Falls- 6.2% to IDR3.19 Trillion
-------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk's third quarter net profit
dipped 6.2% to IDR3.19 trillion from last year's
IDR3.4 trillion, which decrease could be attributed to lower
revenue at its mobile phone business and foreign exchange
losses, Reuters reports.
According to the report, analysts surveyed by Reuters expected
Telkom to book a 22% net profit rise to IDR4.16 trillion and
revenue of IDR16.96 trillion in the third quarter.
Telegeography says the government's implementation of the new
interconnection policy resulted in Telkom booking IDR100.13
billion of interconnect charges in the period under review,
compared with IDR2.25 trillion in the third quarter of 2006.
The fall came despite a 17.4% rise in overall revenues to
IDR15.5 trillion. Mobile revenues at the group's 65%-owned
Telkomsel unit, however, were down 2.5% to IDR5.3 trillion,
Telegeography adds.
According to Reuters, the company's total revenue rose 17.4% to
IDR15.5 trillion. While Telkom's revenue fell 2.5% to IDR5.3
trillion, revenue at its data and Internet services rose more
than 70% to IDR3.88 trillion. The company also recorded a
foreign exchange loss of IDR168.6 billion in the quarter, from a
gain of 91.2 billion last year.
About Telkom Indonesia
Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk --
http://www.telkom-indonesia.com/-- provides local and long
distance telephone service in Indonesia. Known as Telkom, the
company also offers fixed wireless service, leased lines, and
data transport through affiliates.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 24, 2007, that Moody's Investors Service has changed the
outlook on PT Telekomunikasi Indonesia's local currency
corporate family rating to positive from stable. At the same
time Moody's has affirmed Telkom's local currency corporate
family rating at Ba1.
On Sep. 12, 2007, Fitch Ratings has affirmed Telekomunikasi
Indonesia's Long-term foreign and local currency Issuer Default
Ratings at 'BB-'.
About PT International Nickel
Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer
with a production facility and mine are in Sorowako, Sulawesi,
where it has a contract agreement until 2025. It produces
nickel matte, an intermediate product, from lateritic ores at
its integrated mining and processing facilities near Sorowako on
the island of Sulawesi. Inco Limited of Canada holds a 60.8%
stake of the company and Sumitomo Metal Mining Co Ltd. holds a
20.1% stake.
* * *
As of October 29, 2007, the company currently holds Standard and
Poor's long-term foreign and local issuer credit ratings both at
BB- rating.
As of As of October 29, 2007, the company currently holds Fitch
Rating's BB LT Issuer Default rating and Foreign Currency LT
Derb Rating at BB.
TELKOMSEL: Net Profit for First Nine Months of 2007 Rises 16%
-------------------------------------------------------------
PT Telekomunikasi Selular Indonesia's net profit for the first
nine months of 2007 increased 16% to IDR9.71 trillion, from last
year's IDR8.37 trillion, Reuters reports.
According to the report, the company's net operating revenue
climbed 34% to IDR28.06 trillion as the number of mobile phone
subscribers grew to 44.5 million from around 35 million at the
end of 2006.
Reuters relates that the company expects its 2007 revenue to
increase by more than 24% as the mobile phone market grows. The
company's earnings before interest ,tax, depreciation and
amortisation may decline by around 2%, the report adds.
About Telkomsel
PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share. By the end of June 2006,
Telkomsel had close to 29.3 million customers, which, based on
industry statistics, represented a market share of more than
50%.
Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, an
internationally, through 259 international roaming partner in 53
countries as of June 2006. The company provides its subscribers
with the choice between two prepaid cards-simPATI and kartuAs of
a pre-paid simPATI service, or the post-paid kartuHALO service,
as well as a variety of value-added services and programs.
Fitch Ratings, in August 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.
TELKOMSEL: Extends Agreement w/ Nokia on Convergent Charging
------------------------------------------------------------
PT Telekomunikasi Selular Indonesia extending the agreement with
Nokia Siemens Networks on convergent online charging. Nokia
Siemens Networks provides Telkomsel with the next generation
convergent charging solution, charge@once premium, supporting
voice and data services for both prepaid and postpaid
subscribers. The solution enables Telkomsel to extend its
charging capacity of approximately 38 million subscribers with
additional 10.5 million subscribers.
Charge@once premium enables Telkomsel fast time-to-market thanks
to its rich features and tools that enable quick adaptation of
charging services. The solution offers sophisticated, best-in
class online rating, online credit limit supervision, and
advice-of-charge notification to provide cost control and
increasing pricing transparency for Telkomsel's customers, while
reducing credit risk for the operator. Targeted tariff plans,
bonus schemes and hybrid offers help improve customer loyalty
and increase average revenue per user.
"We value our customers and want to give them the freedom to
choose the kind of services and plans that suit their individual
needs. Nokia Siemens Networks charging solution enables even
greater customer centricity and provides us a platform to
achieve sustained growth and new revenue streams,"said Arman
Hazairin, VP Information Technology, Telkomsel. "We are
operating in a competitive market and thanks to this solution,
we will be able to extend and differentiate our offering."
"Our solution helps operators to quickly react to changing
market demands, increase customer loyalty, and succeed in their
business," said Joseph O'Konek, Head of Business Support Systems
Business Line, Operations and Business Software, Nokia Siemens
Networks. "Charge@once premium supports Telkomsel's day-to-day
operations with real-time functionalities and flexibility
required in this customer-focused business."
Under the agreement, Nokia Siemens Networks provides Telkomsel
also with implementation services, project management of the
installation, commissioning, telco integration, supervision and
acceptance activities in the project.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of
communications services. The company provides a complete, well-
balanced product portfolio of mobile and fixed network
infrastructure solutions and addresses the growing demand for
services with 20,000 service professionals worldwide. Nokia
Siemens Networks is one of the largest telecommunications
infrastructure companies with operations in 150 countries. The
company is headquartered in Espoo, Finland.
About Telkomsel
PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share. By the end of June 2006,
Telkomsel had close to 29.3 million customers, which, based on
industry statistics, represented a market share of more than
50%.
Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, an
internationally, through 259 international roaming partner in 53
countries as of June 2006. The company provides its subscribers
with the choice between two prepaid cards-simPATI and kartuAs of
a pre-paid simPATI service, or the post-paid kartuHALO service,
as well as a variety of value-added services and programs.
Fitch Ratings, in August 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.
=========
J A P A N
=========
ALL NIPPON: April-September Net Profit Triples to JPY105.5 Bil.
---------------------------------------------------------------
All Nippon Airways Co. said on Wednesday that its profit more
than tripled to reach a record in the six months ending
September on robust international services and the sale of hotel
assets, the Mainichi Daily News reports, citing the Associated
Press.
According to Bloomberg News, ANA's net income rose to
JPY105.5 billion (US$920 million) in the six months ended
Sept. 30, 2007, from the JPY33.3 billion net income it recorded
a year earlier. Sales at the Tokyo-based carrier rose to
JPY763 billion from JPY753 billion in the same period in 2006.
The amount is the highest the company has ever posted at
midpoint, the International Herald Tribune notes.
Mainichi says that the company recorded a 2.2% rise in revenues
from domestic air transport for the half year, thanks to more
flexible discount fare plans and network improvements.
Meanwhile, international passenger traffic rose to 2.43 million
passengers from 2.24 million and sales rose 17.3%.
"This is a pleasing set of results for ANA Group, and
demonstrates that our strategy to create a solid financial base
capable of weathering changes in the market is bearing fruit,"
the Herald Tribune quotes a statement by ANA Executive Vice
President for Finance & Accounting Tomohiro Hidema.
The report relates that the sale of the group's hotel assets in
June boosted profit considerably. That, combined with a jump in
revenues from international services, more than offset a rise in
fuel costs and the loss of hotel revenues, the had company
expressed.
The company's full-year profit forecast at JPY64.0 billion
(US$558 million) on sales of JPY1.49 trillion (US$12.99 billion)
remains.
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.
FUJI HEAVY: In Talks to Receive Daihatsu Vehicle Supply
-------------------------------------------------------
Fuji Heavy Industries Ltd. is in negotiations about receiving
subcompact cars from Daihatsu Motor Co. to strengthen the
alliance between them, the Japan Times reports, citing sources.
Fuji Heavy, which manufactures Subaru brand cars, is asking top
shareholder Toyota to have Daihatsu, a Toyota subsidiary, supply
Fuji Heavy with subcompacts for sale in the domestic market
under the Subaru brand, the report explains.
Daihatsu may also supply mini-vehicles to Fuji Heavy on an
original equipment manufacturer basis, the sources said.
According to report, Fuji Heavy's move follows a strengthened
alliance between Toyota subsidiary Hino Motors Ltd. and Isuzu
Motors Ltd., in which Toyota holds a stake, and may facilitate a
closer alliance among other companies within the group.
Fuji Heavy is also considering supplying medium-size cars to
Daihatsu under the deal, the sources told Japan Times.
The report says that Fuji Heavy started receiving subcompact
cars for shipment to the European market from Daihatsu this fall
and launched them under the name Subaru Justy.
About Fuji Heavy
Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. --
http://www.fhi.co.jp-- is a manufacturing company engaged in
the production, sale, repair and leasing of automobile and
transportation-related products.
Standard & Poor's Ratings Services lowered its long-term credit
rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based
on diminished prospects for a recovery in profitability and cash
flow over the near term along with intensifying competition in
the global auto industry.
NOVA CORP: May Sue Ex-President Over Dubious Deals
--------------------------------------------------
Nova Corp. may file criminal charges against its former
president, Nozomu Sahashi, over dubious transactions between the
failed foreign-language school chain and a firm he effectively
ran, the Japan Times reports, citing court-appointed
administrator Toshiaki Higashibata.
Nova purchased IP videophone devices from an affiliate owned by
Mr. Sahashi at a price far above their original cost, The
Yomiuri Shimbun relates. Mr. Higashibata told the press that
Osaka-based Ginganet Corp., virtually owned by Mr. Sahashi, is
believed to have made billions of yen in the deal.
Japan Today notes that Nova paid Ginganet JPY8.2 billion for the
equipment over a five-year period dating from 2002. Moreover,
Japan Today says, Mr. Sahashi sold the videophone devices to
students at exaggerated prices.
"Sahashi is suspected of a breach of trust by damaging Nova for
his own profit," the administrator said. "We understand there
was a scheme to funnel money" from the students to Ginganet by
way of Nova, Mr. Higashibata said at the news conference.
He also revealed he would file a criminal complaint and civil
suit against the former Nova president.
In addition, Mr. Higashibata also revealed that Mr. Sahashi sold
all his shares in two firms effectively under his control --
including Ginganet —- to one person around the time Nova filed
for protection from creditors on Oct. 26.
The Yomiuri Shimbun explains that Mr. Sahashi had owned 50% of
Ginganet and the rest of the stock had been held by Nova Kikaku,
which he also owned.
Earlier on Tuesday, Japan Times recounts, Nova said that the
equity stakes held by Mr. Sahashi and his family fell sharply in
the April-September half for unknown reasons. As of Sept. 30,
Mr. Sahashi and an Osaka-based firm fully owned by him and his
family held a combined 20.2% of Nova's total voting rights,
compared with 72.6% as of March 31.
Mr. Sahashi's failure to notify financial authorities may have
violated the financial product transactions law, Japan Times
notes.
To recall, Mr. Sahashi was fired by Nova's board of directors in
absentia on Oct. 25, and his whereabouts remain unknown.
Yet, according to the Japan Times, Mr. Higashibata said that
Mr. Sahashi had contacted him through his lawyer and suggested
he would legally challenge the board's decision to remove him as
president.
According to Japan Times, Mr. Higashibata further revealed at
the news conference that Mr. Sahashi received about
JPY310 million in executive salary for the business year ended
March 31, 2006, the year Nova recorded a first-time loss of
about JPY3.1 billion.
Mr. Higashibata also let the media peek inside Mr. Sahashi's
luxurious suite on the 20th floor of Nova's administrative
headquarters in Osaka. The 330-sq.-meter executive suite,
various reports note, has a red-carpeted reception room, a
private dining and living area with large-screen TV, a bathroom
with a sauna, a tea room and a room with a double bed.
Nova was paying JPY2.7 million a month to rent the suite, which
cost JPY60 million to JPY70 million to furnish and decorate, Mr.
Higashibata said.
A TCR-AP report on Oct. 31 stated that the administrators had
started negotiations with three firms to become corporate
sponsors as part of their efforts to rehabilitate the failed
English conversation school chain operator.
* * *
Osaka-based company, Nova Corporation-- http://www.nova.ne.jp/
-- is primarily engaged in the operation of language schools.
The Company has seven subsidiaries and two associated companies.
The Company is involved in the teaching of languages, the
creation of international environment of different languages and
cultures, the provision of real time services, the development
and provision of network contents, the development of hardware
technology, the building of human network, as well as the
organization of member groups to provide services
internationally. The Company also has subsidiaries and
associates, which are engaged in advertisement services,
interior construction, facility and commodity sale, overseas
study services, computer system services, real estate brokerage,
facility leasing and installment sale, capital management,
cleaning services, sanitary management, multimedia goods sale,
Internet connection services, customer services and assistance
to foreigners.
Nova has reported two consecutive net losses -- JPY3.09-billion
net loss for fiscal year ended March 31, 2006, and
JPY2.89 billion for the year ended March 31, 2007.
As reported in the Troubled Company Reporter-Asia Pacific, Nova
filed for bankruptcy on Oct. 26, 2007, under the Corporate
Rehabilitation Law with a debt estimated at about
JPY43.9 billion as of the end of July. The two administrators
appointed by the Osaka District Court are searching for sponsors
to help turn the company around.
SAPPORO: To Tie Up with Morgan Stanley on Property Management
-------------------------------------------------------------
Sapporo Holdings Ltd. and subsidiary Yebisu Garden Place Co.
will tie up with Morgan Stanley Japan Securities Co. to jointly
manage properties, the Japan Times reports.
The report says that under the partnership, a Morgan Stanley
real estate fund will create a special purpose company that will
acquire at least 5.89 million shares, or 1.5% of voting shares,
in Sapporo Holdings by the end of December and raise the stake
to 19.34 million shares, or 5%, by June 2008.
Sapporo Holdings and Yebisu Garden Place will sell their 15%
stake in Yebisu Garden Place properties in the first half of
2008 to another special purpose company to be founded by another
Morgan Stanley real estate fund for JPY50 billion, the Times
relates.
Yebisu Garden Place and Morgan Stanley will launch a business
alliance next year for management and acquisition of properties.
Sapporo Holdings expects to book some JPY24.9 billion in profit
for 2008 on the sale, the report points out.
About Sapporo Holdings
Sapporo Holdings Limited -- http://www.sapporoholdings.jp/--
formerly known as Sapporo Breweries, brews beer and operates
more than 200 beer halls and restaurants. Sapporo is one of
Japan's oldest brewers, and is Japan's third largest brewing
company, with brews ranging from its flagship Black Label to the
pricier Yebisu. Sapporo also makes the low-malt happoshu brew.
The company sells Guinness beer in Japan through its Sapporo
Guinness Company and owns a beverage company that makes canned
coffee, bottled water, and soft drinks.
* * *
As of May 16, 2007, the company carries Standard & Poor's
Rating Service's 'BB' Long-Term Foreign Issuer Credit and Long-
Term Local Issuer Credit Ratings that were issued on February 6,
2006; and Fitch Ratings' 'B' Short-term Foreign and Local
Currency Issuer Default Ratings that were issued on March 14,
2006.
SUN WAVE: Lowers Consolidated Full-year Forecast for Fiscal 2008
----------------------------------------------------------------
Sun Wave Corp. has lowered its full-year consolidated forecast
for revenue from JPY107.00 billion to JPY96.100 billion, Reuters
Key Developments reports.
Reuters adds that the company also lowered its operating profit
from JPY1.90 billion to an operating loss of JPY730.00 million,
while ordinary income expectations went down from JPY1.60
billion to an ordinary loss of JPY910.00 million.
Moreover, net income projections was lowered from
JPY850.00 million to a net loss of JPY2.65 billion for the
fiscal year ending March 31, 2008.
Reuters explains that this is due to the sluggish demand for
house remodeling, as well as an extraordinary loss from
impairment of properties and carrying over of product repairing
costs from last year.
Headquartered in Tokyo, Sun Wave Corporation --
http://www.sunwave.co.jp/index2.html-- is a manufacturing
company primarily engaged in the manufacture and sale of kitchen
appliances, heat equipment, hygienic appliances, kitchen wall
panels, bath-related apparatus, cooling systems and interior and
exterior equipment. The company is also involved in the
manufacture and sale of facilities equipment for business use
and the provision of post sale services.
The Troubled Company Reporter-Asia Pacific reported on July 11,
2007, that Rating and Investment Information, Inc. upgraded the
issuer rating of Sun Wave Corporation to BB from BB- with a
positive outlook.
TCR-AP also reported on Sept. 3, 2007 that Japan Credit Rating
has upgraded the rating of Sun Wave Corporation on its senior
debts and bonds of the issuer from BB/Stable and BB to
BB+/Stable to BB+, respectively. It has also affirmed the J-3
rating on CP program of the issuer.
* Japanese Banks Suffer Bigger Subprime Damages Than Thought
------------------------------------------------------------
Japanese banks and other financial service providers that
earlier were widely seen as having limited exposure to the
subprime mortgage crisis are now reporting that, if not as
serious as U.S. and European banks, their problems also are of
considerable magnitude in terms of both direct losses and
other ripples into their domestic business, the Bankruptcy Law
Daily reports.
The Bankruptcy Law Daily cites the following institutions:
* Mitsubishi-UFJ Financial Group now expects its half-year
net earnings ending Sept. 30 would shrink to approximately
JPY100 billion from JPY180 billion. The group reported
shortly after the subprime mortgage problem surfaced that
it expected subprime losses of JPY5 billion. This time,
however, the official said the group expects subprime
losses to be between JPY20-30 billion corresponding to the
market price drop of subprime mortgage-linked securities.
* Sumitomo-Mitsui Financial Group says that its projected
losses relating to write-offs and provisioning for subprime
mortgage exposures totaled JPY32 billion. As a result, the
group said it had made a downward revision in its pretax
income outlook for the half-year ending in September to
JPY170 billion yen from its earlier outlook of
JPY220 billion. The bank had a subprime mortgage-related
investment exposure of JPY70 billion at the end of
September, of which JPY18 billion yen worth of investments
had unrealized losses, meaning that the group might still
report additional subprime-related losses.
* Mizuho Securities Co., the securities arm of Mizuho
Financial Group, also reported that it had a group loss of
JPY27 billion , in a turnaround from a pretax income of
JPY11 billion in the same period a year ago, primarily
because of a JPY26 billion loss resulting from losses of
its collateralized debt obligations held by its U.K.
subsidiary. The CDOs lost values in response to the
subprime mortgage problem, a Mizuho official said.
Mizuho does not have direct subprime mortgage exposures,
but it lowered its CDO values because of the erratic
capital market conditions, the official said.
* Nomura Holdings Co., the parent of Nomura Securities, said
that it had a group loss totaling JPY46.5 billion in
the July-September quarter because of its U.S. Subprime
loan losses, and for the first half-year business period
ending Sept. 30, it had a loss of JPY10.5 billion. It was
Nomura's first loss since the January-March 2003 quarter.
Nomura's residential mortgage backed securities losses
during the first nine months of 2007 totaled JPY145
billion, of which the group disposed of JPY73 billion in
the July-September quarter, a Nomura official said.
Nomura made a foray into the RMBS business in 2002 and
began securitization of subprime mortgages in 2005,
according to the official.
* Norinchukin Bank, which is a farm cooperatives' bank, said
that it expects losses of JPY50 billion primarily due to
loan and investment losses relating to subprime mortgages,
out of its total subprime mortgage-related securities
investments of US$4.43 billion.
The report explains that when the subprime mortgage problem
surfaced in Europe and the United States in July, Japanese
financial service providers and its primary regulator, the
Financial Services Agency, said Japan's exposures were extremely
limited and that they would not suffer any serious damage. At
that time, they were apparently referring to exposures of their
core Japanese operations alone, perhaps putting aside exposures
of their U.S. and European subsidiaries and affiliates.
The report continues that in early August, the FSA instructed
Japanese financial service providers to calculate and report
exposures to latent and real losses directly and indirectly
relating to U.S. subprime mortgages.
Bankruptcy Law Daily also opines that Japan's subprime losses
are likely to further balloon partly because large sums of
securitized subprime instruments have been sold to nonfinancial
companies, and even to individual investors.
The report expounds that the subprime problem's impact on
Japanese individuals, can be seen as "housing starts in July
plummeted 23.4%, followed by an even steeper drop of 43.3% in
August -- a record year-on-year fall, according to Ministry of
Land, Infrastructure and Transport data. The report further
expounds that the housing decreases meant that Japanese banks
became extra cautious about lending and many consumers began
suffering losses in their investment portfolios, particularly
structured products that may package subprime mortgages.
=========
K O R E A
=========
NOVELIS INC: Realm Communications Completes Rebranding
------------------------------------------------------
Realm Communications has announced the completion of its
rebranding initiative for Novelis Inc., newly acquired by
Mumbai-based Hindalco Industries Limited, the flagship company
of the multinational conglomerate Aditya Birla Group. The
biggest Indian acquisition of a U.S.-based company, Hindalco,
with Novelis, is now the world's largest aluminum rolled
products company and recycler of aluminum cans, as well as one
of the largest producers of primary aluminum in Asia and of
copper in India.
A landmark transaction for Aditya Birla and further evidence of
India's expanding global business presence, Realm capitalized on
the reputations and collaboration of these two giants in the
metals industry by combining the best of both worlds, yet
remaining sensitive to accommodating two cultures, both from a
corporate and ethnic perspective, under one brand.
"When you're rebranding a multicultural corporation, especially
in light of an acquisition, you have to take a 360-degree view,
respecting what has come before and balancing that with
established identities," said Michael Stewart, Realm's Creative
Director. "In this particular case we had to marry the brand
promise and graphic identity of an Indian parent company with a
North American subsidiary with locations in 11 countries. We
believe the result not only affirms their complementary
capabilities, but also anticipates their future possibilities."
In developing the new brand message, Realm chose a direction
that would better support the Novelis vision -- "To make the
world a lighter, brighter and better place" -- and ensure that
it underscores a consistent and stable message for the corporate
transition. With that as the goal, "Brighter ideas with
aluminum" is the new Novelis tag line. The brand message
clearly defines Novelis' business and reinforces their
commitment to be a commodity provider as well as an industry
innovator.
Brand applications such as websites, collateral, vehicles and
workwear are due to be fully implemented by the end of the year.
Exterior signage will be completed by July 2008.
About Realm Communications
REALM Communications Group, Inc. -- http://www.rcgoptic.com/--
is a manufacturer, a value added reseller, a systems integrator
and distributor of fiber optic equipment, communication
products, and fiber optic cables. The company specializes in
developing and marketing unique fiber optic solutions. Founded
in 1987, REALM has taken a leading role in supplying state of
the art technologies and integrated solutions in voice, data,
video, and SCADA fields.
About Novelis
Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- is the global provider of aluminum
rolled products and aluminum can recycling. The company
operates in 11 countries and has approximately 12,900 employees.
Novelis has the capability to provide its customers with a
regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South
America. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.
Novelis South America operates two rolling plants and primary
production facilities in Brazil in the Latin American region.
Novelis also has operations in Germany, Switzerland and Korea.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 26, 2007, Fitch Ratings has affirmed the Issuer Default
Rating for Novelis, Inc. and Novelis, Corp. at 'B' and assigned
a Negative Rating Outlook. The company's previous senior
secured bank debt ratings have been withdrawn. Ratings for the
new credit facility of 'BB' were assigned and the senior
unsecured debt ratings have been affirmed as:
Novelis, Inc.
-- IDR 'B';
-- Senior secured asset-based revolver 'BB/RR1';
-- Senior secured term loan B 'BB/RR1';
-- Senior unsecured notes 'B/RR4'.
Novelis, Corp.
-- IDR 'B';
-- Senior secured asset-based revolver 'BB/RR1';
-- Senior secured term loan B 'BB/RR1'.
NOVELIS INC: Will Invest US$7 Million for Brazilian Plant
---------------------------------------------------------
Novelis Inc.'s Brazilian subsidiary told Business News Americas
that it will invest US$7.0 million to boost aluminum sheet ingot
output at its Pindamonhangaba plant in Sao Paulo.
Novelis said in a statement that the expansion project will
increase aluminum sheet production capacity by 12%. It involves
the construction of a new furnace. Work on the project would be
completed by February 2008.
The project will boost the plant's remelting capacity by 70,000
tons per year, BNamericas states.
About Novelis Inc
Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- is the global provider of aluminum
rolled products and aluminum can recycling. The company
operates in 11 countries and has approximately 12,900 employees.
Novelis has the capability to provide its customers with a
regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South
America. Through its advanced production capabilities,
the company supplies aluminum sheet and foil to the automotive
and transportation, beverage and food packaging, construction
and industrial, and printing markets.
Novelis South America operates two rolling plants and primary
production facilities in Brazil in the Latin American region.
Novelis also has operations in Germany, Switzerland and Korea.
* * *
As reported in the Troubled Company Reporter on Jun 26, 2007,
that Standard & Poor's Ratings Services assigned its 'BB' debt
rating, with a recovery rating of '2', to Novelis Inc.'s US$860
million secured term loan due 2014. The '2' recovery rating
indicates an expectation of substantial (70%-90%) recovery in
the event of default. Proceeds from the borrowings will be used
to refinance existing bank loans, which are being repaid in the
wake of the company's acquisition by Hindalco Industries Ltd.
The long-term corporate credit rating on Novelis is 'BB-'. The
outlook is negative. After giving effect to the proposed
refinancing, the company will have about US$2.9 billion of pro
forma fully adjusted debt at March 31, 2007.
On Feb. 16, 2007, Fitch Ratings placed the Issuer Default
Ratings or IDR of 'B' for Novelis Inc. and its subsidiary
Novelis Corp. on Rating Watch Negative. The company's senior
secured bank debt ratings and senior unsecured debt ratings that
were affirmed are:
Novelis Inc.
-- Senior secured revolver and term loan at 'BB/
Recovery Rating (RR) 1'; and
-- Senior unsecured notes at 'B/RR4'.
Novelis, Corp.
-- Senior secured revolver and term loan B at 'BB/RR1'.
=========
M A C A U
=========
MELCO PBL: Plans to Raise US$592 Mil. by Selling ADS
----------------------------------------------------
Casino operator Melco PBL Entertainment (Macau) Ltd is selling
37.5 million American Depositary Shares to raise about
US$592 million with a 15% over-allotment option, Reuters
reports, citing a term sheet.
Reuters relates that the term sheet said the post deal market
capitalization of the company would be US$6.6 billion.
UBS AG, Deutsche Bank Securities Inc. and Citigroup Global
Markets Inc are underwriters.
Hong Kong-based Melco PBL Entertainment (Macau) Limited --
http://www.melco-pbl.com/-- is a developer, owner and operator
of casino gaming and entertainment resort facilities focused on
the Macau market. The company, through its subsidiary MPBL
Gaming is one of six companies licensed, through concessions or
sub-concessions, to operate casinos in Macau. MPBL
Entertainment is a 50/50 joint venture between Melco
International Development Limited and Publishing and
Broadcasting Limited. Through its existing operations and
projects under development, MPBL Entertainment caters to a range
of potential gaming patrons, including wealthy high-end patrons,
as well as mass market patrons, who wager lower stakes and may
be casual gaming patrons. Its existing operations and
development projects consist of The Crown Macau, The City of
Dreams, Mocha Clubs and Macau Peninsula Site.
The Troubled Company Reporter-Asia Pacific reported on Sept. 11,
2007, that Standard & Poor's Ratings Services said that it had
assigned its BB- long-term corporate credit rating to Melco PBL
Gaming (Macau) Ltd. (MPGL). The outlook is stable. At the same
time, Standard & Poor's assigned its BB- bank loan rating to a
loan package that consists of US$1.5 billion in Series A
(amortizing) debt with a seven-year term and a five-year US$250
million revolver.
The TCR-AP also reported on the same day that Moody's Investors
Service has assigned a provisional (P)Ba3 corporate family
rating to Melco PBL Gaming (Macau) Limited (MPBL Gaming). At
the same time, Moody's has assigned a provisional (P)Ba3 rating
to the company's proposed US$1.75 billion senior secured
syndicated loan facility. The outlook for the ratings is
stable.
===============
M A L A Y S I A
===============
SOLUTIA INC: Receives US$2 Billion Exit Loan Commitment
-------------------------------------------------------
Solutia Inc. has received a fully underwritten commitment for
US$2 billion of exit financing. The company has also arranged
for a fully backstopped rights offering that will raise
US$250 million in new equity capital.
Solutia will use the exit loan funds to pay certain creditors
upon emergence from Chapter 11 pursuant to its plan of
reorganization, and for its ongoing operations after emergence.
Citi, Goldman Sachs, and Deutsche Bank Securities Inc. are
acting as joint lead arrangers and joint bookrunners for the
exit financing.
"With this commitment, we are well on our way to achieving the
fourth and final component of the reorganization strategy we
identified at the outset of our case, which is to put in place
an appropriate capital structure for the company," Jeffry N.
Quinn, chairman, president and chief executive officer of
Solutia Inc., said in a news statement.
The exit financing package includes:
-- a US$400 million senior secured asset-based revolving
credit facility;
-- a US$1.2 billion senior secured term loan facility; and
-- a US$400 million senior unsecured bridge facility.
"Despite the recent turbulence in the debt capital markets, we
have obtained an exit financing package that will position
Solutia for continued success and provide adequate funds to
deliver on our business strategies," James M. Sullivan, senior
vice president and chief financial officer, Solutia Inc., said.
Solutia will use the proceeds of the rights offering to fund
retiree benefits and retained legacy liabilities. The rights
offering is backstopped by Highland Capital Management, UBS
Securities, Longacre Fund Management, Southpaw Asset Management,
Merrill Lynch Pierce Fenner & Smith Incorporated, and others.
The rights offerings will only be open to certain of Solutia's
creditors and holders of Solutia's common stock. A registration
statement relating to these securities has been filed with the
Securities and Exchange Commission but has not yet become
effective. The securities may not be sold nor may offers to buy
be accepted prior to the time the registration statement becomes
effective. A written prospectus, when available, for the rights
offerings may be obtained from:
Financial Balloting Group, LLC
757 Third Avenue, 3rd Floor
New York, NY 10017
http://www.fbgdocuments.com/soi
The exit financing and equity rights offering backstop
commitments require the approval of the United States Bankruptcy
Court for the Southern District of New York.
The court has set a confirmation hearing for Nov. 29, 2007, to
approve Solutia's amended plan of reorganization. Solutia
expects to emerge from bankruptcy by the end of the year.
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.
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
listedUS$2,854,000,000 in assets andUS$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. 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. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
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 Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. A hearing to
consider confirmation of the Debtors' Reorganization Plan is
scheduled for Nov. 29, 2007.
(Solutia Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SOLUTIA INC: Court Urges Resolution of Bank of New York Dispute
---------------------------------------------------------------
"Pigs become hogs and then hogs get slaughtered. And then eaten.
What you're going for is so piggy that you risk getting
nothing," Judge Prudence Beatty at the United States Bankruptcy
Court for the Southern District of New York told a lawyer for
The Bank of New York at an Oct. 31 hearing in Solutia, Inc.'s
case, Bloomberg News reports.
John K. Cunningham, Esq., at White & Case LLP, in New York,
appeared before the Court on behalf of Bank of New York,
regarding aUS$223,000,000 claim by the bank on account of the
11.25% Senior Secured Notes due 2009 issued by Solutia Inc. or
its predecessor. Bank of New York serves as indenture trustee
for the Senior Notes.
Mr. Cunningham has argued that under New York law -- which
governs the Indenture and Guaranties entered into by the parties
-- Bank of New York, as the Senior Secured Notes Trustee, has a
direct claim against Solutia and each of the Subsidiary
Guarantors and, if unpaid, could obtain a judgment for the
fullUS$223,000,000 principal amount of the Senior Secured Notes
plus
damages for any defeasance not in accordance with the Indenture.
Mr. Cunningham also has asserted that effectiveness of Solutia's
Plan of Reorganization will trigger a change in control under
the Indenture giving the Senior Secured Noteholders a right to
defeasance and a minimum claim ofUS$245,300,000. Mr. Cunningham
said the Court has preliminarily recognized that consummation of
the transactions contemplated by the Plan, on the effective
date, will cause a "Change of Control."
According to Mr. Cunningham, each Senior Secured Noteholder has
the contractual right to require Solutia to purchase its Senior
Secured Notes for an amount equal to the Change of Control
Amount. If all of the Senior Secured Noteholders elect to
tender their Senior Secured Notes in exchange for the Change of
Control Amount, that amount at a minimum isUS$225,230,000, plus
accrued and unpaid interest.
Solutia and its Official Committee of Unsecured Creditors have
argued that the Noteholders are entitled to a claim for not more
than the principal amount funded on account of the Notes --
US$181,700,000 -- at issuance plus any original issue discount
that accrues through the effective date of the Plan --
US$28,200,000.
They have accused Bank of New York of trying to secure up
toUS$50,000,000 in windfall at the expense of junior creditors.
Daniel H. Golden, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, counsel to the Creditors Committee, has pointed out
that the Second Circuit is clear that unamortized original issue
discount is unmatured interest -- not principal. Moreover, Mr.
Golden has said, Section 506(b) of the Bankruptcy Code does not
entitle Noteholders, as oversecured creditors, to recover
interest that is unmatured as of the date of payment of their
claim.
Tiffany Kary at Bloomberg News relates that an OID bond is one
issued at a price below par, with OID being considered a form of
interest. When theUS$223,000,000 face amount 2009 notes was
issued, Solutia received onlyUS$181,700,000. The
missingUS$41,300,000 was considered unmatured interest, Ms. Kary
says.
According to Ms. Kary, Judge Beatty said the bank's claim amount
could be as much asUS$60,000,000.
At the hearing, Judge Beatty urged Solutia to settle its dispute
with Bank of New York, noting that the claim was the biggest
hurdle to approval of Solutia's reorganization plan, Ms. Kary
reports.
"There are no cases that I have found which remotely approximate
the application of these principles to a case of this financial
magnitude," Ms. Kary quotes Judge Beatty as saying.
Judge Beatty said if no settlement is reached she will rule on
the matter in about two weeks.
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.
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
listedUS$2,854,000,000 in assets andUS$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. 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. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
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 Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. A hearing to
consider confirmation of the Debtors' Reorganization Plan is
scheduled for Nov. 29, 2007.
(Solutia Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
====================
N E W Z E A L A N D
====================
A&R WHITCOULLS: Books AU$7.6-Mil. Net Profit After Tax in FY2007
----------------------------------------------------------------
A&R Whitcoulls Group Holdings Pty Limited yesterday disclosed a
net profit after tax of AU$7.6 million for the 2007 financial
year.
The Company's FY2006 NPAT was impacted by a significant tax
credit and one-off income from the sale of a retail travel
business at Hong Kong and Australian airports and is therefore
not directly comparable.
Group revenue from continued operations grew from
AU$373.7 million in FY2006 to AU$394.9 million in FY2007,
representing growth of 7% since last year. The FY2007 result
was bolstered by the Group acquiring a 51% share of the news
agency chain Supanews in October 2006.
A&R Whitcoulls Managing Director, Ian Draper, said that the
result was a solid achievement for the business.
"Our improved revenues and underlying profits are a result of
the work we have done to enhance the performance of our retail
businesses and to diversify our revenue streams by moving into
new sectors," said Mr Draper.
"The integration of the Supanews business was a key challenge
this year but it has delivered a pleasing result.
"The Company is well positioned to continue pursuing growth
opportunities now and in the future. We have recently released
a new website which has significantly enhanced online shopping
for our customers and we are also implementing a new world class
loyalty program.
"In addition to these new business initiatives, we have made
significant investment in new store fit outs and expansion and
there continue to be good opportunities for our traditional
store network."
A&R Whitcoulls operates book retailers Angus & Robertson in
Australia and Whitcoulls in New Zealand, along with the Supanews
newsagency chain and a seasonal pop-up retailer called Calendar
Club.
It is estimated that A&R Whitcoulls currently serves about 10%
of the book retailing market in Australia and about 28% of the
market in New Zealand.
"Our objective is to ensure we're providing customers with more
of what they want in terms of products, service levels, store
formats and promotions," said Mr. Draper. "In a competitive
environment we need to continue to adapt and expand our offering
regularly to meet changing customer needs. We look forward to
further progress in this area and new opportunities in 2008."
Melbourne, New Zealand-based A&R Whitcoulls Group Holdings Pty
Ltd. -- http://www.arw.co.nz/ -- is a specialty retail company
operating across New Zealand and Australia. The company
comprises a number of brands, which sell a range of products,
including books, magazines, stationery, calendars, gifts,
greeting cards and digital versatile discs (DVDs). Some of the
Company's subsidiaries include A&R Australia Holdings Pty
Limited, Angus & Robertson Pty Ltd, Angus & Robertson Bookworld
Calendar Club Pty Ltd, Supanews Angus & Robertson Pty Limited,
Whitcoulls Finance Trust, Whitcoulls Limited, Whitcoulls Group
Limited and WHSmith Hong Kong Limited. On October 18, 2005, A&R
Whitcoulls Group Holdings Pty Limited disposed of the travel
retail businesses in Hong Kong and Australian airports.
* * *
On Oct. 30, 2007, the Troubled Company Reporter-Asia Pacific's
Distressed Bonds column listed A&R Whitcoulls Group's bond with
a 9.500% coupon and December 15, 2010 maturity date as trading
at NZ$10.80.
A2 CORP: Enters Into Exclusive Licensing Pact with Lotte Milk
-------------------------------------------------------------
A2 Corporation Limited has executed an exclusive licensing
agreement with Lotte Milk to launch fresh a2 Milk(TM) in the
South Korean market.
Lotte Milk is one of the five largest dairy companies in South
Korea with a wide range of fresh milk, yoghurt and other dairy
products.
Anthony Lawler, CEO of A2 Corporation says that the fresh milk
arrangement with Lotte is a major step forward into Asia for the
Company. "The agreement with Lotte is very exciting as it will
provide us with a substantial presence which will be used as a
springboard to other Asian markets".
As part of the arrangement a2 Milk(TM) products will be launched
on the South Korean market in the middle of 2008. Lotte Milk has
committed to converting a substantial proportion of their fresh
milk volume to a2 Milk(TM) (with the objective of reaching 60%
within three years). Lotte Milk has also committed to a
guaranteed minimum royalty for an initial two year period, plus
a substantial guaranteed marketing spend.
"This opportunity also extends to the potential to consider
yoghurt and other Lotte Milk dairy products in addition to their
fresh milk range." noted Lawler.
Lotte Milk will be backing this investment with a multi-million
dollar marketing budget to promote the benefits of a2 Milk(TM)
to Korean consumers. Cliff Cook, Chairman of A2C states that
"the commitment to marketing expenditure by Lotte is one of the
most pleasing aspects of the arrangement as it will ensure that
Lotte a2 Milk(TM) will be a strong premium milk brand in South
Korea. Cook also added "that the launch next year of a2
Milk(TM) in South Korea is delivering on the previous
commitments from A2 Corporation to open markets in Asia".
Lotte a2 Milk (TM) will be distributed throughout South Korea
via supermarkets, discount stores and convenience stores. Lotte
already has a sizeable market share in the flavoured milk and
yoghurt categories and the a2 Milk(TM) proposition gives Lotte
the opportunity to clearly differentiate their milk products and
significantly increase its presence in the fresh milk category.
About Lotte Milk
Lotte Milk -- http://www.lottemilk.co.kr-- was established in
1978 and is a member of the Daesun group of companies. It is
one of the five largest dairy companies in Korea and they offer
a wide range of dairy products including fresh milk, flavoured
milks and yoghurts such as Bifidus Drinking Yoghurt and RB135
Yoghurt.
Lotte Milk wishes to take the opportunity with A2 Corporation to
launch a new and unique healthy Lotte milk product to the South
Korean market.
About A2 Corp
New Zealand-based A2 Corporation Ltd. --
http://www.a2corporation.com/-- is engaged in the sale and
production of beta-casein A2 milk products. The company owns
and licenses intellectual property that enables the
identification of cattle for the production and subsequent
marketing of A2 Milk. During the fiscal year ended March 31,
2006, the company acquired A2 Australia Pty Ltd. In April 2006,
the company reacquired the business of A2 Australia Pty Ltd from
F&N Dairy Investments Limited. A2 Milk Company LLC provided the
Company with a research basis for launching A2 Milk in the North
American market.
The company suffered at least two consecutive net losses of
NZ$5.08 million and NZ$448,800 for the years ended March 31,
2007 and 2006, respectively.
=====================
P H I L I P P I N E S
=====================
BANCO DE ORO-EPCI: Central Bank OKs Purchase of AMEX Phil. Unit
---------------------------------------------------------------
The Bangko Sentral ng Pilipinas has approved Banco de Oro-EPCI
Inc.'s acquisition of 100% of American Express Bank Philippines
Inc., a disclosure with the Philippine Stock Exchange says.
The Troubled Company Reporter-Asia Pacific reported on Aug. 23,
2007, that the bank's Board of Directors approved the purchase
of a 100% equity in American Express' Philippine unit during a
special meeting held on August 17.
Banco de Oro-Equitable PCI Inc. is the result of a merger
between Banco de Oro Universal Bank and Equitable PCI, with BDO
as the surviving entity.
On June 1, 2007, Moody's Investors Service said it had withdrawn
its ratings for Equitable PCI Bank following its merger with
Banco de Oro Universal Bank.
In a statement, Moody's said the merged entity, Banco de Oro-
EPCI, will assume BDO's "Ba2" rating both for its senior
unsecured debt and subordinated debt, with a stable outlook.
Moody's withdrew its ratings for Equitable PCI following the
merger.
The Troubled Company Reporter-Asia Pacific reported on June 11,
2007, that Standard & Poor's Ratings Services withdrew its 'BB-'
counterparty credit ratings on Equitable PCI Bank Inc., as its
merger with Banco De Oro Universal Bank became effective on
May 31.
S&P retained its 'BB-' counterparty credit rating and the issue
ratings on both Equitable and Banco de Oro's rated debts.
Equitable's rated debts will be transferred to the Banco de Oro-
EPCI.
RIZAL COMMERCIAL: Lists 1,096 New Common Shares in Local Bourse
---------------------------------------------------------------
Rizal Commercial Banking Corp. has listed an additional 1,096
common shares in the Philippine Stock Exchange. These shares
will start to be traded on November 5.
According to a disclosure with the PSE, these new shares reflect
the 3,042 preferred shares that have been converted into common
shares. The conversion rate was 1 common share for every 2.7736
preferred shares.
The company now has 46,300,598 common shares listed in the PSE.
Rizal Commercial Banking Corporation -- http://www.rcbc.com/
is a universal bank principally engaged in all aspects of
banking. It provides services such as deposit products, loans
and trade finance, domestic and foreign fund transfers,
treasury, foreign exchange and trust services. In addition, the
bank is licensed to enter into forward currency contracts to
service its customers and as a means of reducing and managing
the bank's foreign exchange exposure.
On November 2, 2006, the Troubled Company Reporter-Asia Pacific
reported that Fitch Ratings assigned a final rating of 'B-' to
Rizal Commercial Banking Corporation's hybrid issue of up to
US$100 million. The rating action follows the receipt of final
documents conforming to information previously received.
On November 6, 2006, the TCR-AP also reported that Moody's
Investors Service revised the outlook for RCBC's foreign
currency senior debt rating of Ba3, foreign currency Hybrid Tier
1 of B3, and foreign currency long-term deposit rating of B1 to
stable from negative. The outlook for RCBC's foreign currency
Not-Prime short-term deposit rating and bank financial strength
rating of E+ remains stable, the TCR-AP said.
The TCR-AP also reported on October 24, 2006, that Standard &
Poor's Ratings Services assigned its 'CCC' rating to
Philippines' Rizal Commercial Banking Corp's (RCBC; B/Stable/B)
US$100 million non-cumulative step-up callable perpetual capital
securities.
SAN MIGUEL: Lists 4,288 Additional Common Shares in Local Bourse
----------------------------------------------------------------
San Miguel Corp. has listed an additional 4,288 common shares in
the Philippine Stock Exchange. These shares are set to start
trading on November 5.
The new shares reflect the 4,288 Class A shares that were
availed of and fully paid under the Plan of SMC.
The company now has a total of 13,052,093 common shares
currently listed in the PSE.
Headquartered in Manila, Philippines, San Miguel Corporation --
http://www.sanmiguel.com.ph/-- through its subsidiaries,
operates food, beverage and packaging businesses. The company's
products include beer, wine and spirits, soft drinks, mineral
water, chicken and pork products. San Miguel markets its
products both in the domestic and overseas markets. The company
also manufactures glass, metal, plastic, paper and composites
packaging products.
On August 22, 2007, Moody's Investor Service downgraded its
local currency corporate family rating for San Miguel
Corporation to Ba2 from Ba1. The rating outlook is stable.
Standard & Poor's Ratings Services affirmed on August 22, 2007,
its 'BB' long-term foreign currency corporate credit rating on
San Miguel Corp. and removed it from CreditWatch, where it was
placed with negative implications on May 15, 2007. The outlook
is negative.
STA. LUCIA LAND: Changes Stock Symbol from “ZIP” to “SLI”
---------------------------------------------------------
Sta, Lucia Land Inc., formerly known as Zipporah Realty Holdings
Inc., has changed its stock symbol in the Philippine Stock
Exchange from "ZIP" to "SLI" effective November 7, 2007.
Formerly known as Zipporah Realty Holdings, Inc., Sta. Lucia
Land Inc. was originally incorporated as a mining firm.
Presently, it is primarily engaged in real estate holding and
development with mining as its secondary purpose. Its main
source of revenue comes from sales of real estate properties.
The company's subsidiary, EBEDEV, Inc., launched its first
project, the Westmont Village Project along Dr. A. Santos Avenue
in Sucat, Paranaque, which started commercial operations in
January 1996. The Westmont Village was conceptualized primarily
to answer the needs of young urban professionals and the growing
demands of the medium income market for a condominium project
accessible to the centers of commerce and industry, affordable
and with the amenities of a first-class condominium.
The company registered a PHP746.12 million deficit for the year
2006.
=================
S I N G A P O R E
=================
LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend
-------------------------------------------------------
Lazard Ltd.'s Board of Directors has declared a quarterly
dividend of US$0.09 per share on its outstanding Class A common
stock, payable on Nov. 30, 2007, to stockholders of record on
Nov. 9, 2007.
Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a
preeminent financial advisory and asset management firms, that
operates from 32 cities across 16 countries in North America,
Europe, Asia, Australia and South America. With origins dating
back to 1848, the firm provides advice on mergers and
acquisitions, restructuring and capital raising, well as asset
management services to corporations, partnerships, institutions,
governments, and individuals. The company has locations in
Australia, Brazil, China, France, Germany, India, Japan, Korea
and Singapore.
The company reported total assets of US$2.6 billion, total
liabilities of US$2.8 billion, and minority interest at
US$55.7 million, resulting in a total stockholders' deficit of
US$206.8 million as of March 31, 2007.
=============
V I E T N A M
=============
ASIA COMMERCIAL BANK: Moody's Assigns Low-B First-Time Ratings
--------------------------------------------------------------
Moody's Investors Service has assigned these ratings to Asia
Commercial Bank:
* B1 / Not-Prime long and short-term foreign currency
deposits
* Ba1 / Not Prime long and short-term local currency deposits
* Ba2 / Not Prime long and short-term foreign currency Issuer
Ratings
* Ba1 / Not Prime long and short-term local currency Issuer
Ratings
* Bank Financial Strength Rating ("BFSR") of D
The outlook for all ratings is stable, except for the foreign
currency deposit rating which carries a positive outlook. This
is the first time Moody's has assigned ratings to ACB.
"The BFSR of D, which translates into a Baseline Credit
Assessment (BCA) of Ba2, reflects the bank's well-established
franchise in the prosperous southern economic hub of Ho Chi
Minh", said Karolyn Seet, a financial institutions analyst based
in Moody's Singapore office.
The rating also reflects ACB's good credit fundamentals with
strong liquidity, excellent asset quality, good efficiency and
strong profitability. These positives are partly offset by its
modest capital levels, rapid growth and relatively high credit
risk concentration. The rating does however take into
consideration ACB's disciplined credit approval and monitoring
process, and the benefits of skills transfer from its
shareholder Standard Chartered Bank which owns a 8.56% stake in
the bank.
Other constraining factors are ACB's extremely rapid credit
growth, and the volatility inherent in its operating
environment. Further, the bank's focus on gaining market share
in a competitive market with narrowing margins may tempt
management to ease its stringent credit policy.
The probability of systemic support for ACB in the event of a
stress situation is very high due to the strong liquidity
support mechanisms in Vietnam's banking sector, and also due to
the bank's importance, given its size in the banking system and
its payment role. This results in a one-notch uplift to ACB's
long-term deposit rating, to Ba1 from its BCA of Ba2.
ACB is the fifth largest bank in Vietnam and its largest
private-sector bank. Its main business is lending to private
individuals and small and medium enterprises, while 53 out of
its total 95 branches are concentrated in Ho Chi Minh City. ACB
currently controls 8% of system deposits and 2.4% of system
loans, while its lending is weighted towards the consumer and
private company segments. These comprised 51% and 39%,
respectively, of loans at end-2006.
The bank's risk management function is progressive, and it
benefits from technical assistance provided by its foreign
shareholders. However, relatively high borrower concentration
and industry risk concentration constrain its BFSR rating.
As the regulatory focus in Vietnam shifts from a standard based
on a minimum absolute amount of capital, to one based on a
minimum capital ratio basis by 2010, ACB will raise capital in
the near term to provide a larger cushion to absorb losses.
In accordance with Moody's estimates, the bank's current
estimated Tier 1 ratio is below 8%, under the regional peer
average of 12%. ACB plans to issue VND1,350 billion convertible
bonds by the end of 2007, which will be converted into share
capital between 2008 and 2012, positively impacting ACB's BFSR.
ACB's BFSR of D is based on the expectation that its capital
ratio will increase -- and that its capital ratio will be
maintained at a higher level in future.
ACB's profitability is strong on the back of robust economic
conditions, which have contributed to rising margins. Pre-
Provision Profits to Estimated Average Risk Weighted Assets
were 2.96% in 2006, above the D regional peer group average of
2.8%. Close to half of the bank's income is derived from a
combination of fees and commission, dividend and treasury
income.
Asset quality is sound and ACB reports non-performing loan
ratios below those of its regional peer group. However, the
bank's rapid credit growth (81% in 2006) raises the risk of
increased asset quality problems in the future. This risk is
compounded by:
(i) an ineffective legal system, lowering recovery rates on
bad loans; and
(ii) poor credit data on smaller-scale customers -- a sector
which underpins ACB's franchise.
These considerations act as a constraint on the BFSRs of all
banks in Vietnam.
The bank's balance sheet is liquid with loans forming only 38%
of total assets at end-2006. Strong liquidity is an important
factor in emerging markets like Vietnam, where deposits can be
highly confidence sensitive.
Looking ahead, a BFSR upgrade is unlikely in the near term,
given:
(i) the bank's rapid growth plans,
(ii) tight capital management, and
(iii) Vietnam's challenging operating environment.
On the other hand, a BFSR downgrade could be triggered by:
(i) a reduction in Tier 1 capital ratio to less than 4%;
(ii) a significant deterioration in franchise value;
(iii) a marked rise in risk appetite;
(iv) an increase in NPLs, so that NPLs to Capital and Loan
Loss Reserves rise above 40%; and
(v) more aggressive lending practices in the face of tougher
competition, leading to weakening profitability and
deteriorating asset quality.
ACB's deposit and issuer ratings are likely to move in line with
Vietnam's sovereign ratings, due to the high level of systemic
support that we believe would be available for it -- and other
major commercial banks -- in case of need.
Established in 1993, ACB is the largest joint-stock commercial
bank in Vietnam. Headquartered in Ho Chi Minh City, the bank
reported total assets of VND71,126 billion (approximately
US$4.4 billion) at September 30, 2007.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Advance Healthcare Group Ltd AHG 13.59 -12.43
Allstate Explora ALX 12.65 -51.62
Austar United Communications
Limited AUN 411.16 -43.72
Emperor Mines Limited EMP 138.99 -50.63
Global Wine Ventures Limited GWV 22.04 -0.84
Hutchison Telecommunications
(Aust) Ltd. HTA 1637.04 -1443.69
Intellect Holdings Limited IHG 15.01 -0.83
KH Foods Ltd KHF 62.30 -1.71
Lafayette Mining Limited LAF 78.17 -127.82
Life Therapeutics Limited LFE 59.00 -0.38
RMG Ltd. RMG 22.33 -2.16
Tooth & Co. Ltd. TTH 99.25 -74.39
UnderCoverWear Limited UCW 28.92 -16.07
CHINA AND HONG KONG
Artel Solutions Group
Holdings Limited 931 29.19 -18.65
Asia Telemedia Limited 376 16.97 -7.53
Baiyin Copper Commercial
Bldg (Group) Co 672 24.47 -2.40
Bao Long Orienta 600988 15.78 -11.11
Beiya Industrial (Group)
Co., Ltd 600705 462.13 -20.57
Chang Ling Group 561 85.06 -80.88
Chia Tai Enterprises
International Ltd. 121 316.12 -8.92
China Force Oil & Grains
Industrial Co 1194 92.02 -7.43
China HealthCare Holdings Ltd 673 25.44 -3.37
China Liaoning International
Cooperation (Group) Ltd 638 20.46 -41.24
Chinese.Com Logi 805 13.75 -32.33
Chongqing Int'l Enterprise
Investment Co 000736 19.88 -15.67
Compass Pacific Holdings Ltd 1188 46.98 -14.92
Datasys Technology
Holdings Ltd 8057 14.10 -2.07
Dongxin Electrical Carbon
Co., Ltd 600691 34.19 -2.90
Dynamic Global Holdings Ltd. 231 44.64 -9.70
Everpride Biopharmaceutical
Company Limited 8019 14.19 -0.02
Fujian Changyuan Investment
Holdings Limited 592 34.52 -66.85
Fujian Sannong Group Co. Ltd 732 42.50 -100.37
Fujian Start Computer
Group Co.Ltd 600734 114.76 -16.98
Guangdong Hualong Groups
Co., Ltd 600242 15.23 -46.94
Guangdong Kel-A 921 596.71 -94.69
Guangdong Meiya Group
Co., Ltd. 529 70.62 -59.86
Guangxia (Yinchuan) Industry
Co. Ltd. 557 48.71 -59.63
Hainan Dadonghai Tourism
Centre Co., Ltd 613 18.34 -8.39
Hainan Overseas Chinese
Investment Co., Ltd 600759 28.97 -9.90
Hans Energy Company Limited 554 85.00 -0.49
Hebei Baoshuo Co.,Ltd 600155 293.56 -199.47
Heilongjiang Black Dragon
Co., Ltd 600187 113.45 -74.67
Hisense Kelon Electrical
Hldngs. Co., Ltd 921 596.71 -94.69
Hualing Holdings Limited 382 262.90 -32.17
HuaTongTianXiang Group
Co., Ltd. 600225 52.77 -42.02
Huda Technology & Education
Development Co. Ltd. 600892 17.12 -0.39
Hunan Anplas Co. 156 77.57 -77.92
Hunan Hengyang 600762 61.08 -43.98
Innovo Leisure Recreation
Holdings Ltd. 703 13.40 -4.50
Jiaozuo Xin'an-a 719 56.77 -6.52
Junefield Department
Store Group Limited 758 12.93 -5.39
Lan Bao Technology
Information Co.,Ltd 631 110.09 -78.89
Loulan Holdings Limited 8039 11.14 -2.21
Mianyang Gao Xin Industrial
Dev (Group) 600139 23.90 -15.65
New World Mobile Holdings Ltd 862 295.66 -12.53
New City China 456 253.47 -25.03
Orient Power Holdings Ltd. 615 176.86 -64.20
Plus Holdings Ltd. 1013 18.52 -3.34
Qinghai Xiancheng Industry
Stock Co.,Ltd 600381 55.58 -55.04
Regal Real Estate
Investment Trust 1881 945.38 -234.68
Sanjiu Yigong Biopharmaceutical
& Chem 000403 218.51 -3.48
Shanghai Worldbest
Pharmaceutical Co.Ltd 600656 66.75 -13.42
Shenyang Hejin Holding
Company Ltd. 633 103.86 -3.16
Shenzhen China Bicycle Co.,
Hlds. Ltd. 17 34.21 -238.76
Shenzhen Dawncom Business
Tech. and Service Co., Ltd. 863 32.57 -137.55
Shenzhen Kondarl (Group)
Co., Ltd. 000048 112.05 -15.98
Shenzhen Shenxin Taifeng
Group Co., Ltd. 34 69.92 -53.39
Shijiazhuang Refining-Chemical
Co., Ltd 783 357.75 -84.57
Sichuan Direct-A 757 143.71 -94.34
Sichuan Langsha Holding Ltd. 600137 13.82 -62.11
Stellar Megaunion Corporation 000892 54.33 -152.43
Success Information Industry
Group Co. 517 77.23 -17.78
Suntek Technology Co., Ltd 600728 49.03 -14.65
Suntime International
Economic Trading 600084 359.49 -47.93
Swank International
Manufacturing Co Ltd 663 29.31 -1.13
Taiyuan Tianlong Group Co.
Ltd 600234 19.47 -89.51
The First Investment &
Merchant Co, Ltd 600515 90.66 5.98
Tianjin Marine Shipping
Co. Ltd 600751 111.03 -3.59
Tianyi Science & Technology
Co., Ltd 600703 45.82 -41.20
Tibet Summit Industry
Co., Ltd 600338 90.92 -4.05
Winowner Group Co. Ltd. 600681 23.34 -72.39
Xiamen Eagle Group Co., Ltd 600711 18.82 -2.74
Yueyang Hengli Air-Cooling
Equipment Inc. 622 40.61 -17.21
Zarva Technology Co. Ltd. 688 25.83 -175.37
Zhejiang Haina Science & Tech
Co., Ltd. 925 28.53 -36.27
INDIA
Andrew Yule & Co. Ltd ANY 86.39 -12.47
Ashima Ltd. NASHM 96.57 -42.59
ATV Projects India Ltd. ATV 68.25 -30.17
B S Refrigerator NBPLE 75.91 -10.23
Balaji Distiller BLD 45.66 -74.20
Bagalkot Udyog Ltd. BUL 20.55 -0.63
Baroda Rayon Corp. Ltd. BR 41.16 -26.62
Birla VXL Ltd NVXL 98.77 -14.62
CFL Capital Financial
Services Ltd CEATF 25.42 -47.32
Core Healthcare Ltd. CPAR 214.36 -150.72
Deccan Aviation Pte. Ltd. DECA 86.94 -2.83
Dunlop India Ltd DNLP 52.75 -65.30
Fairfield Atlas Ltd. ATG 23.38 -1.76
GKW Ltd. GKW 35.75 -13.52
Gujarat Sidhee Cement Ltd. GSCL 59.44 -0.66
Gujarat State Fi GSF 153.48 -157.34
Himachal Futuris HMFC 574.62 -38.68
HMT Limited HMT 316.41 -175.33
JCT Electronics Ltd. JCTE 118.28 -165.74
Jenson & Nic Ltd JN 15.41 77.32
JK Synthetics Ltd JKS 17.99 -2.61
Kothari Sugars and
Chemicals Ltd. NKTSG 43.24 -29.24
JOG Engineering VMJ 50.08 -10.08
Lloyds Metals LYDM 70.72 -10.25
Lloyds Steel Ind LYDS 404.38 -86.45
LML Ltd. LML 81.21 -11.89
Mafatlal Ind. MFI 95.67 -85.81
Malanpur Steel Ltd. HDC 82.08 -52.01
Modern Threads MRT 78.18 -20.71
Mysore Cements MYC 82.02 -14.57
Mysore Kirloskar Ltd. MK 23.71 -3.04
Panchmahal Steel Ltd. PMS 51.02 -0.33
Panyam Cements PYC 17.18 -18.32
Phil Corporation NPPII 22.13 -4.96
RPG Cables Ltdd NRPG 51.43 -20.19
Saurashtra Cemen SRC 112.31 -4.57
Shree Digvijay Cement Co. Ltd. DIGV 29.62 -32.38
Shree Rama Multi Tech Ltd. NSRMT 86.31 -3.90
Shyam Telecom NSHY 147.34 -22.80
Singer India Ltd SING 12.32 -6.69
SIV Ind. Ltd. NSIV 101.16 -66.27
Steel Tubes Ltd NSTU 30.47 -26.45
Synthetics & Che SYNC 54.94 -6.90
Tata Teleservices (Maharashtra)
Limited NTTLS 619.95 -111.52
UB Engineeering UBE 47.78 -2.77
Uniflex Cables UFC 17.22 -5.04
INDONESIA
Ades Waters Indonesia Tbk ADES 21.35 -8.93
Eratex Djaja Ltd. Tbk ERTX 30.30 -1.21
Hotel Sahid Jaya SHID 71.05 -4.26
Jakarta Kyoei Steel Works Tbk JKSW 44.72 -38.57
Panca Wiratama Sakti Tbk PWSI 39.72 -18.82
Sekar Bumi Tbk SKBM 23.07 -41.95
Steady Safe SAFE 19.65 -2.43
Suba Indah Tbk SUBA 85.17 -9.18
Surya Dumai Industri Tbk SUDI 105.06 -30.49
Toba Pulp Lestrari Tbk INRU 403.58 -198.86
Unitex Tbk UNTX 29.08 -5.87
Wicaksana Overseas
International Tbk WICO 43.09 -46.40
JAPAN
Banners Co., Ltd 3011 46.33 -14.11
C4 Technology, Inc 2355 33.71 -1.24
Frameworx, Inc. 3470 16.59 -5.72
Nihon Seimitsu Sokki Co., Ltd. 7771 26.87 -6.98
NIWS Co., HQ Ltd. 2731 541.08 -33.01
Orient Corporation 8585 37956.19 -1109.02
QUIN LAND Co., Ltd 2732 138.79 -23.93
Tasco System Co., Ltd 2709 48.45 -14.07
Trustex Holdings, Inc. 9374 102.84 -7.82
KOREA
DaiShin Information &
Communication Co. 20180 22.07 -15.48
Dong Yang Gang 1780 108.79 -9.80
E-Rae Electronics Industry
Co., Ltd 45310 42.30 -10.54
E Star B Co., Ltd. 55250 24.24 -20.61
EG Semicon Co. Ltd. 38720 32.35 -1.14
Everex Inc 47600 35.66 -0.66
Hyundai IT Corp. 48410 137.08 -48.10
Inno Metal Izirobot Inc. 70080 33.20 -5.59
Korea Cement Co., Ltd. 3660 145.94 -15.79
Oricom Inc. 10470 102.46 -31.19
Petroholdings Corporation 53170 11.03 -3.20
Rocket Electric Co., Ltd. 420 62.35 -8.52
Seji Co., Ltd 53330 25.84 -13.98
Starmax Co., Ltd 17050 41.94 -1.50
Tong Yang Magic Co., Ltd. 23020 170.55 -69.48
Unick Corporation 11320 58.87 -22.63
MALAYSIA
Boustead Heavy Industries
Corp. Bhd BHIC 57.34 -152.51
Chin Foh Berhad CFOH 53.19 -13.88
FED Furniture FFHB 38.27 -5.11
Harvest Court HAR 10.17 -3.85
Lityan Holdings Berhad LIT 18.84 -23.22
Mentiga Corporation Berhad MENT 22.13 -18.25
Pan Malay Industries PMRI 185.98 -6.91
PanGlobal Berhad PGL 181.15 -125.36
Paxelent Corp PAXE 13.16 -4.51
Putera Capital Berhad PCAP 10.56 -4.70
Sateras Resources Bhd. SRM/4278 44.73 -38.82
Sino Hua-An International Bhd HUAAN 184.60 -98.30
Sycal Ventures Berhad SYC 58.76 -85.36
Wembley Industries
Holdings Bhd WMY 111.72 -204.61
PHILIPPINES
APC Group Inc. APC 71.75 -218.13
Atlas Consolidated Mining and
Development Corp. AT 61.14 -16.74
Cyber Bay Corporation CYBR 12.49 -64.98
East Asia Power Resources Corp. PWR 92.55 -64.61
Fil Estate Corp. FC 36.10 -7.75
Filsyn Corporation FYN 20.88 -9.68
Gotesco Land, Inc. GO 17.34 -9.59
Prime Orion Philippines Inc. POPI 98.36 -74.34
Unioil Resources & Holdings
Company Inc. UNI 10.64 -9.86
United Paragon UPM 22.80 -29.23
Universal Rightfield Property UP 45.12 -13.48
Uniwide Holdings Inc. UW 61.45 -30.31
Victorias Milling Company Inc. VMC 127.83 -32.21
SINGAPORE
ADV Systems Auto ASA 14.32 -8.54
Compact Metal Industries Ltd. CMI 47.42 -36.47
Falmac Limited FAL 10.51 -2.30
Gul Technologies GUL 155.76 -15.21
HLG Enterprise HLGE 116.77 -8.71
Informatics Holdings Ltd INFO 20.42 -11.65
L & M Group Investments Ltd LNM 56.91 -10.59
Lindeteves-Jacoberg Limited LJ 185.49 -46.43
Pacific Century Regional PAC 1569.35 -88.20
Semitech Electronics Ltd. SEMI 11.01 -0.23
THAILAND
Bangkok Rubber PCL BRC 70.19 -56.98
Central Paper Industry PCL CPICO 40.41 -37.02
Circuit Electronic
Industries PCL CIRKIT 20.37 -64.80
Daidomon Group PLC DAIDO 12.92 -8.51
Datamat Public Co., Ltd DTM 17.55 -1.72
Kuang Pei San Food Products
Public Co. POMPUI 12.51 -9.87
Sahamitr Pressure Container
Public Co. Ltd. SMPC 20.77 -28.13
Sri Thai Food & Beverage Public
Company Ltd SRI 18.29 -43.37
Tanayong PCL TYONG 178.27 -734.30
Thai-Denmark PCL DMARK 21.37 -18.88
Thai-Wah PCL TWC 91.56 -41.24
*********
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.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***