/raid1/www/Hosts/bankrupt/TCRAP_Public/071207.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, December 7, 2007, Vol. 10, No. 243
Headlines
A U S T R A L I A
AQUARIUS CARWASH: Members Agree on Voluntary Liquidation
CAPSARIN PTY: Members Opt to Shut Down Business
CHRYSLER LLC: Implements Downsizing Plan, Workers Leave
COEUR D'ALENE: Palmarejo Shareholders Okay Bolnisi Acquisition
DREAM MERCHANT: To Declare Dividend for Unsecured Creditors
G J MORGAN: Appoints Lynette Evans as Liquidator
JARABB PTY: Undergoes Liquidation Proceedings
JERVOIS PASTORAL: Members' Final Meeting Set for December 12
LEAN TEAM: Placed Under Voluntary Liquidation
REVLON CONSUMER: Moody's Affirms Ratings, Shifts Outlook to Pos.
RILEY HOLDINGS: Commences Liquidation Proceedings
SAMAR SERVICES: Commences Wind-Up Proceedings
STARK DISTRIBUTION: Will Declare Priority Dividend on Dec. 14
C H I N A , H O N G K O N G & T A I W A N
ACXIOM CORPORATION: Inks Strategic Deal with Search Initiatives
CHUNG SHING: Balance Sheet Upside-Down by TWD3.09BB at Sept. 30
CHUNG SHING: Incurs TWD15.76-Million Loss Due to Typhoon Krosa
CHUNG SHING: September Sales Total TWD86.26 Million
CIS TECH: Sept. 30 Balance Sheet Upside-Down by TWD730 Million
CIS TECH: Continues Bleak Sales Record for August 2007
CMC MAGNETICS: Incurs TWD140-Mil. Net Loss for Jan.-Sept. Period
CMC MAGNETICS: Obtains Level-A Laboratory Certification
COSMOS BANK: Bondholders Agree to Recapitalization Plan
PACCO TECH: June 30 Balance Sheet Upside-Down by TWD335 Million
PETROLEOS DE VENEZUELA: Wants 190 Oil Rigs by End of Next Year
PROTOP TECH: June 30 Balance Sheet Shows TWD604-Mil. Insolvency
RITEK CORP: Posts TWD78.4-Mil. Net Profit in First Nine Months
RITEK CORP: Appoints Zhang Yuhuan as Assistant Finance GM
RITEK CORP: Divests Giantplus Technology Shares
TAIWAN BUSINESS BANK: Mega Financial Might Divest Shares
YEU TYAN: June 30 Balance Sheet Upside-Down by TWD9 Billion
YEU TYAN: September 2007 Sales Down to TWD96,000
I N D I A
AES CORP: Unit To Decrease Concession Area Power Losses To 11.6%
SPICEJET: Auditor Says Loss in July-Sept Would Have Been Higher
STATE BANK OF INDIA: No Development Yet on SBH Merger
STATE BANK OF INDIA: Gov't Okays Subcription to Rights Issue
TATA MOTORS: To Commence Thai Pick-Up Production in Early 2008
* Fitch Says Indian Banks Face Increased Challenges
I N D O N E S I A
ANEKA TAMBANG: Expects 2008 Nickel Output to Increase by 6.3%
BANK NEGARA: Fitch Affirms Short-Term Rating at 'B'
BANK MANDIRI: Fitch Affirms Long-Term IDR at 'BB-'
TELKOM INDONESIA: Responds to Indonesian Watchdog's Ruling
TELKOM INDONESIA: Pays IDR48.45. Share Interim Dividend for 2007
TELKOM : Gov't Orders Opening of DLD Service by April 3, 2008
J A P A N
COREL CORP: Partners with ConceptShare for Online Collaboration
TENNECO INC: Completes Partial Offering of 10-1/4% Senior Notes
K O R E A
JINRO LTD: Parent Won't Sell Sales Unit in Japan
HANARO: SK Telecom Denies Rumors of Possible Deal Nullification
MAGNACHIP: Claims Withdrawn on Contact Hole Process Patent
MAGNACHIP SEMICONDUCTOR: Enters Power Management Segment
* Fitch Reports H107 Results and Outlook for Korea's Banks
M A L A Y S I A
EKRAN BERHAD: Exempted by Bourse to Submit Regularization Plan
FA PENINSULAR: Bursa to Delist Securities on December 13
FCW HOLDINGS: Expects to Complete Corporate Exercises by Jan. 8
MANGIUM INDUSTRIES: In Midst of Finalizing Valuation Report
MEGAN MEDIA: In Talks w/ Creditor Banks to Regularize Condition
PANGLOBAL BHD: Incurs MYR20.2MM Net Loss in Qtr. Ended Sept. 30
SOLUTIA INC: Moody's Assigns B1 Corporate Family Rating
* Malaysian Parliament Records 158,042 Bankruptcy Cases
N E W Z E A L A N D
AFS (2002): Court to Hear Wind-Up Petition on December 13
BOOST SMP: Appoints Finnigan and Whittfield as Liquidators
CLEAR CHANNEL: Gets FCC Approval for US$1.3BB Sale to Newport TV
FELTEX: CAFCA Questions SC Investigations & Ernst & Young Audit
JPM MANGERE: Subject to CIR's Wind-Up Petition
LIFT TRANZ: Court to Hear Wind-Up Petition on February 8
NZ BUSINESS: Wind-Up Petition Hearing Set for February 21
RESIDENTIAL MORTGAGES: Court Hears Wind-Up Petition
RODNEY ELECTRICAL: Faces CIR's Wind-Up Petition
SHOW-OFF NEW ZEALAND: Faces CIR's Wind-Up Petition
T K LOGGING: Subject to CIR's Wind-Up Petition
S I N G A P O R E
AAR CORP: Completes Acquisition of Summa Technology
CHEE TAT: Final Meeting Slated for December 31
EXCEL PRECISION: To Pay First Dividend on December 14
HUP HIN: Creditors' Proofs of Debt Due on December 14
SEMITECH ELECTRONICS: Will Hold General Meeting on December 28
* Large Companies with Insolvent Balance Sheets
- - - - - - - -
=================
A U S T R A L I A
=================
AQUARIUS CARWASH: Members Agree on Voluntary Liquidation
--------------------------------------------------------
On October 26, 2007, the members of Aquarius Carwash Systems Pty
Limited agreed to voluntarily liquidate the company's business.
C. W. Nicholls was appointed as liquidator.
About Aquarius Carwash
Aquarius Carwash Systems Pty Ltd is a distributor of service
industry machineries. The company is located at Artarmon, in
New South Wales, Australia.
CAPSARIN PTY: Members Opt to Shut Down Business
-----------------------------------------------
During a general meeting held on October 24, 2007, the members
of Capsarin Pty Limited resolved to voluntarily liquidate the
company's business.
About Capsarin Pty
Capsarin Pty Limited is involved with real estate agents and
managers. The company is located at Wollongong, in New South
Wales, Australia.
CHRYSLER LLC: Implements Downsizing Plan, Workers Leave
-------------------------------------------------------
Chrysler LLC's first batch of salaried workers, who opted for
the company's buyout proposals, left Friday. Another batch will
be leaving at the end of the year, various reports stated.
As reported in the Troubled Company Reporter on Nov. 5, 2007,
Chrysler disclosed that it would make volume-related
reductions at several of its North American assembly and
powertrain plants. Shifts will be eliminated at five North
American assembly plants which, combined with other volume-
related manufacturing actions, will lead to a reduction of
8,500-10,000 additional hourly jobs through 2008.
Additional actions include reductions of salaried employment by
1,000 and supplemental (contract) employment by 37%. The
company also plans to eliminate hourly and salaried overtime and
reduce purchased services due to reduction in volume. The
volume-related actions are in addition to 13,000 jobs
eliminated by the three-year Recovery and Transformation Plan
announced in February. The objectives of the RTP remain the
same.
Sources say, citing Chrysler spokesman David Elshoff, that the
first buyout program called the "special incentive program" was
offered to workers who were 62 years old or older with 10 years
(or more) of service. The buyout program presented these white-
collared workers three months' salary and either a vehicle
voucher worth US$20,000 after taxes or a US$20,000 tax-free
contribution to a retirement health care account, in addition to
full pension and retiree health benefits.
Workers ages 53 to 61 with at least 10 years of service who make
less than US$100,000 annually, as well as select workers ages 55
to 61 with 10 years of service who make US$100,000 or more in
salary will be offered Chrysler's second buyout program, which
provides full pension and retiree health care benefits," Eric
Morath of The Detroit News relates. The program is otherwise
known as "the special early retirement program."
About Chrysler
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating on Chrysler LLC and DaimlerChrysler
Financial Services Americas LLC and removed it from CreditWatch
with positive implications, where it was placed Sept. 26, 2007.
S&P said the outlook is negative.
COEUR D'ALENE: Palmarejo Shareholders Okay Bolnisi Acquisition
--------------------------------------------------------------
Palmarejo Silver and Gold Corporation shareholders has approved
a plan of arrangement pursuant to which, among other things,
Coeur d'Alene Mines Corporation will acquire all of the
outstanding shares of Palmarejo held by shareholders other than
Bolnisi and, through its acquisition of Bolnisi Gold NL, all of
the Palmarejo shares held by Bolnisi, as more particularly
described in the Palmarejo Notice and Management Information
Circular dated Oct. 31, 2007.
At a meeting of Palmarejo shareholders held earlier today, the
arrangement was approved by over 99.99% of the votes cast, and
99.99% of the "minority" votes, excluding those votes required
to be excluded by applicable securities laws. Approximately
90.2% of the total eligible Palmarejo shares were voted at the
meeting. Under the terms of the arrangement, Palmarejo
shareholders will receive 2.715 Coeur shares and US$0.004 for
each Palmarejo share.
"Today's overwhelming vote in favor of this arrangement
demonstrates that our shareholders support Palmarejo joining
forces with Coeur," said James Crombie, President and Chief
Executive Officer of Palmarejo. "The new Coeur, with the
addition of Palmarejo's projects, will enjoy an excellent
profile in the industry."
On Dec. 4, 2007, Bolnisi shareholders also voted in favor of the
resolution to allow the offer by Coeur to acquire all of the
shares of Bolnisi by way of a scheme of arrangement to be
implemented in accordance with the Merger Implementation
Agreement between Bolnisi and Coeur. Under the scheme of
arrangement, Bolnisi shareholders will receive 0.682 of a Coeur
share and AU$0.004 in cash for each Bolnisi share.
Coeur announced on Dec. 3, 2007 that it has adjourned its
special meeting of shareholders to vote on the amendment of its
charter and the issuance of its shares in connection with its
proposed acquisition of Bolnisi and Palmarejo to Dec. 7, 2007,
at 4:00 p.m. (PST). Coeur has received overwhelming support for
the proposals related to the acquisition with in excess of 91%
of the votes submitted having voted in favor. Proxies are
continuing to be received and votes representing an additional
1.7% of the outstanding shares are needed to achieve quorum and
enable the matters to be put to a vote at the meeting. The
adjournment will allow Coeur to receive the necessary additional
proxies.
Palmarejo's application to the Ontario Superior Court of Justice
to obtain the final court order approving the arrangement is
scheduled for Dec. 5, 2007.
Completion of the transaction remains subject to satisfaction of
certain conditions set out in the plan of arrangement and the
Merger Implementation Agreement between Palmarejo and Coeur.
About Palmarejo Silver
Palmarejo Silver And Gold Corporation is a silver/gold
exploration company listed on the TSX Venture Exchange under the
symbol "PJO". Palmarejo's principal activity is to explore and
develop gold and silver properties located in the Temoris
District of Chihuahua, Mexico within the Sierra Madre Occidental
mountain range. Additional information is available on SEDAR
and on the Company's website.
About Coeur d'Alene
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.
DREAM MERCHANT: To Declare Dividend for Unsecured Creditors
-----------------------------------------------------------
Dream Merchant Pty Limited, which is subject to deed of company
arrangement, will declare dividend for its unsecured creditors
on December 14, 2007.
Only creditors who were able to file their proofs of debt by the
Nov. 27, 2007 deadline will be included in the company's
dividend distribution.
The company's deed administrator is:
Richard Albarran
Hall Chadwick
Level 29, 31 Market Street
Sydney, New South Wales 2000
Australia
About Dream Merchant
Dream Merchant Pty Limited provides business services. The
company is located at Cronulla, in New South Wales, Australia.
G J MORGAN: Appoints Lynette Evans as Liquidator
------------------------------------------------
On October 24, 2007, G J Morgan Pty Ltd's members decided to
voluntarily liquidate the operations of the company.
Lynette Evans was appointed as liquidator.
About G J Morgan
G J Morgan Pty Ltd provides health and allied services. The
company is located at Nyngan, in New South Wales, Australia.
JARABB PTY: Undergoes Liquidation Proceedings
---------------------------------------------
The members of Jarabb Pty Ltd met on October 24, 2007, and
passed a resolution to voluntarily liquidate the company's
operations.
Anthony M. Long was named as liquidator.
The Liquidator can be reached at:
Anthony M. Long
c/o Boyce Chartered Accountants
19 Montague Street
Goulburn, New South Wales 2580
Australia
About Jarabb Pty
Located at Mungindi, in New South Wales, Australia, Jarabb Pty
Ltd is an investor relation company.
JERVOIS PASTORAL: Members' Final Meeting Set for December 12
------------------------------------------------------------
A final meeting will be held for the members of Jervois Pastoral
Co Pty Ltd on December 12, 2007, at 10:00 a.m.
At the meeting, the members will hear the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Noel Robert Willis
KPMG
491 Smollett Street
Albury, New South Wales 2640
Australia
Telephone:(02) 6021 1111
About Jervois Pastoral
Jervois Pastoral Co Pty Ltd is involved in the beef cattle
feedlots business. The company is located at Alice Springs, in
NT, Australia.
LEAN TEAM: Placed Under Voluntary Liquidation
---------------------------------------------
On October 8, 2007, a special resolution was passed to
voluntarily wind up Lean Team Australia Pty Ltd's operations.
A. T. Macgillivray was appointed as liquidator.
The Liquidator can be reached at:
A. T. Macgillivray
c/o Provimi Australia Pty Ltd
PO Box 15
Macclesfield, South Australia 5153
Australia
About Lean Team
Located at Adelaide, in South Australia, Australia, Lean Team
Australia Pty Ltd is an investor relation company.
REVLON CONSUMER: Moody's Affirms Ratings, Shifts Outlook to Pos.
----------------------------------------------------------------
Moody's Investors Service has affirmed all of the ratings of
Revlon Consumer Products Corporation but revised the outlook to
positive from negative.
The revision of the outlook to positive reflects the elimination
of a significant near-term maturity following the company's
announcement that it intends to repay in full the US$167.4
million of remaining 8-5/8% senior subordinated notes in a
manner that is neutral to bondholders by retaining a US$170
million senior subordinated term loan from its indirect parent
company, MacAndrews and Forbes. The revised outlook also
reflects Revlon Consumer's success in achieving its financial
targets for the last twelve-month period ending September 2007
and the resulting significant improvement in profitability and
credit metrics.
"While Revlon's financial performance has significantly improved
and market share trends have stabilized over the last twelve
months, the company still needs to demonstrate that these gains
are sustainable while at the same time achieving profitable
growth in its core Revlon and Almay franchises," says Moody's
Vice President Janice Hofferber.
These ratings of Revlon Consumer were affirmed:
-- Corporate family rating at Caa1;
-- Probability of default rating at Caa1;
-- US$160 million senior secured asset based revolving credit
facility due 2012 at B1 (point estimate revised to LGD 2,
12% from LGD 2, 11%);
-- US$840 million senior secured term loan facility due 2012
at B3 (point estimate revised to LGD 3, 37% from LGD 3,
36%);
-- US$387 million 9.5% senior notes due 2011 at Caa2 (point
estimate revised to LGD 4, 63% from LGD 4, 61%);
-- US$167 million 8.625% senior subordinated notes due 2008 at
Caa3 (point estimate revised to LGD 6, 94% from LGD 6,
93%); and
-- Speculative grade liquidity rating of SGL-4
Outlook revised to positive from negative.
Revlon Consumer's Caa1 corporate family rating reflects the weak
free cash flow, high leverage and weak liquidity profile of the
company. The Caa1 rating also incorporates the remaining
refinancing risks that the company faces due to the relatively
short maturity date of the newly provided term loan (matures
Aug. 1, 2009), as well as the ongoing financial and operational
challenges the company continues to face. While Moody's views
MacAndrews & Forbes' agreement to provide Revlon Consumer with a
US$170 million senior subordinated term loan as helpful in the
near term, but notes that the short dated maturity of the term
loan as well as the expiration of MacAndrews & Forbes' existing
US$50 million back-up line of credit at closing will continue to
strain liquidity. Nevertheless, MacAndrews & Forbes'
willingness to provide this critical financing as well as its
track record of supporting Revlon Consumer over the last several
years by backstopping equity rights offerings and by providing
back-up liquidity, is an important ratings factor.
The positive outlook reflects Moody's recognition that the
company has eliminated a significant near-term maturity and that
its credit metrics and financial performance have meaningfully
improved. Accordingly, profitability and cash flow generation
have improved such that EBITA margins are approaching 10% and
free cash flow usage has substantially improved. In addition,
other key credit metrics, while still more consistent with a Caa
issuer, are also stronger -- EBITDA to interest coverage ratios
are in excess of 1.6 times and Debt to EBITDA was 6.7 times for
the last twelve month period ending September 2007.
Nevertheless, Revlon Consumer will need to demonstrate a longer
track record of financial stability and profitable market share
growth given the still leveraged profile, negative free cash
flow and need to refinance the MacAndrews & Forbes term loan by
August 2009. The company's highly leveraged profile and
liquidity constraints remain on-going rating concerns as the
company participates in an industry segment that requires
material upfront brand support, fixture, and product development
expenditures with uncertain consumer receptivity.
Moody's affirmation of Revlon Consumer's speculative grade
liquidity rating of SGL-4 reflects the company's still weak cash
flow from operations and inability to satisfy its basic cash
requirements through internal sources with no additional need
for external financing. In addition, while the agreement with
MacAndrews & Forbes to provide a US$170 million senior
subordinated loan satisfies a critical requirement in its 8 5/8%
senior note indenture in a way that is not detrimental to
bondholders and has a positive impact on liquidity, the short
term maturity date of the term loan will require another
significant financing. The company's resolution of these two
critical factors would likely lead to an upgrade in its
speculative grade liquidity rating.
Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a
worldwide cosmetics, skin care, fragrance, and personal care
products company. The company's vision is to deliver the
promise of beauty through creating and developing the most
consumer preferred brands. The company's brands include
Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R),
Flex(R), and Mitchum(R). The company's Latin American
operations are located in Argentina, Brazil, Chile, Mexico and
Venezuela. The company has Asia Pacific operations in
Australia, China, Hong Kong, Singapore, and Taiwan.
Headquartered in New York, Revlon Consumer Products Corp. is a
worldwide cosmetics, skin care, fragrance, and personal care
products company. The company is a wholly owned subsidiary of
Revlon Inc. -- http://www.revloninc.com/-- which in turn is
majority-owned by MacAndrews and Forbes, which is wholly owned
by Ronald O. Perelman. The company's Latin American operations
are located in Argentina, Brazil, Chile, Mexico and Venezuela.
RILEY HOLDINGS: Commences Liquidation Proceedings
-------------------------------------------------
During a general meeting held on December 10, 2007, the members
of Riley Holdings Pty Ltd resolved to voluntarily liquidate the
company's business.
R. B. Chippindale was appointed as liquidator.
The Liquidator can be reached at:
R. B. Chippindale
WT Martin & Associates
17a Althrop Street
East Gosford, New South Wales 2250
Australia
About Riley Holdings
Located at Dalkeith, in Western Australia, Australia, Riley
Holdings Pty Ltd is an investor relation company.
SAMAR SERVICES: Commences Wind-Up Proceedings
---------------------------------------------
During a general meeting held on October 12, 2007, the directors
of Samar Services Pty Limited passed a resolution to voluntarily
liquidate the company's business.
Ieuan Griffiths was named as liquidator.
The Liquidator can be reached at:
Ieuan Griffiths
9 Orangegrove Avenue
Unanderra, New South Wales, 2526
Australia
About Samar Services
Samar Services Pty Limited operates manufacturing industries.
The company is located at Wollongong, in New South Wales,
Australia.
STARK DISTRIBUTION: Will Declare Priority Dividend on Dec. 14
-------------------------------------------------------------
Stark Distribution Services Pty Limited, which is in
liquidation, will declare its first dividend for priority
creditors on December 14, 2007.
Creditors who were not able to file their proofs of debt by the
November 30, 2007 deadline will be excluded from the company's
dividend distribution.
The company's liquidator is:
N. C. Malanos
Star Dean-Willcocks
Level 1, 32 Martin Place
Sydney, New South Wales 2000
Australia
Telephone:(02) 9223 2944
Facsimile:(02) 9223 3011
About Stark Distribution
Stark Distribution Services Pty Limited is involved with
trucking business, except local. The company is located at
Moorebank, in New South Wales, Australia.
=============================================
C H I N A , H O N G K O N G & T A I W A N
=============================================
ACXIOM CORPORATION: Inks Strategic Deal with Search Initiatives
---------------------------------------------------------------
Acxiom(R) Corporation has entered into a new strategic
partnership with Nashua, N.H.-based Search Initiatives LLC,
which will provide clients of Acxiom with more detailed business
directory data on small- to medium-sized businesses across the
country.
Acxiom will include data from Search Initiatives' subsidiary,
eLocal Listing, to further enhance its business data listings.
In turn, Search Initiatives will incorporate Acxiom data into
its products, including the company's search and search engine
optimization offerings.
"The U.S. business sector is constantly changing," said Jon
Cohn, Acxiom product leader, "and we are constantly looking for
innovative ways to further improve the quality of our business
data listings. With this agreement, we'll be able to provide
even more detailed business information to our many data
clients."
"We are in the business of speaking to thousands of U.S.
businesses every day," said Tim Judd, chief executive officer of
Search Initiatives. "Through our subsidiary, eLocal Listing, and
our network of call centers, we reach out and touch millions of
SMBs each year. The additional information we discover about
those companies during our process will be incorporated into
Acxiom's core business listing products."
The strategic alliance between the two companies reinforces the
importance of the emerging local online market and the value of
enhanced local contact data.
"The national online market has developed on a largely self-
service basis that doesn't work as well at the local level with
time-starved small businesses," Mr. Judd said. "To be effective
while marketing to the enormous U.S. small business market, you
need accurate, current data supported by the ability to talk to
those customers with a personal touch."
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.
Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brazil, Argentina and Mexico.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Little Rock, Arkansas-based 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.
CHUNG SHING: Balance Sheet Upside-Down by TWD3.09BB at Sept. 30
---------------------------------------------------------------
Chung Shing Textile Co. Ltd. recorded a net loss of
TWD378.20 million for the nine months ended Sept. 30, 2007,
almost halving the TWD714.70-million net loss recorded for the
nine-month period ended Sept. 30, 2006.
The company had net sales of TWD2.71 billion for the period in
review. Cost of goods sold and other operating expenses
amounted to TWD2.91 billion, giving the company an operating
loss of TWD207.60 million.
The company also paid TWD222.40 million in interest expenses for
the first nine months of 2007.
As of Sept. 30, 2007, the company had a shareholders' equity
deficit of TWD3.09 billion on total assets of TWD10.37 billion
and total liabilities of TWD13.46 billion.
Taiwan-based Chung Shing Textile Co. Ltd. --
http://www.chung-shing.com.tw/-- is engaged in the manufacture
and sale of various fibers, textiles and garments. The
Company's products include knitting cotton apparels and knitting
synthetic fiber apparels, cotton yarns, synthetic fiber cloth,
plain woven cloth, polyester yarns, nylon filament yarns,
polyester staple fibers, textured yarns, polyester chips and
others.
CHUNG SHING: Incurs TWD15.76-Million Loss Due to Typhoon Krosa
--------------------------------------------------------------
Chung Shing Textile Co. Ltd. estimates a loss of
TWD15.76 million as a result of typhoon Krosa, Reuters Key
Developments reports.
Reuters did not provide further details regarding the matter.
Taiwan-based Chung Shing Textile Co. Ltd. --
http://www.chung-shing.com.tw/-- is engaged in the manufacture
and sale of various fibers, textiles and garments. The
Company's products include knitting cotton apparels and knitting
synthetic fiber apparels, cotton yarns, synthetic fiber cloth,
plain woven cloth, polyester yarns, nylon filament yarns,
polyester staple fibers, textured yarns, polyester chips and
others.
As of Sept. 30, 2007, the company had a shareholders' equity
deficit of TWD3.09 billion on total assets of TWD10.37 billion
and total liabilities of TWD13.46 billion.
The company also incurred net losses TWD1.82 billion,
TWD988.70 million, TWD1.69 billion, TWD2.90 billion and
TWD1.13 billion for the years ending Dec. 31, 2002 through 2006.
CHUNG SHING: September Sales Total TWD86.26 Million
---------------------------------------------------
Chung Shing Textile Co. Ltd.'s sales in September 2007 fell
88.06% year-on-year to TWD86.26 million from TWD722.69 million,
according to data obtained from Bloomberg News.
The company's year-to-date sales totaled TWD2.81 billion, 68.52%
less than the previous year's TWD8.93 billion.
The company's August 2007 sales also fell 90.70% year-on-year to
TWD111.44 million from TWD1.20 million.
Taiwan-based Chung Shing Textile Co. Ltd. -- http://www.chung-
shing.com.tw/ -- is engaged in the manufacture and sale of
various fibers, textiles and garments. The Company's products
include knitting cotton apparels and knitting synthetic fiber
apparels, cotton yarns, synthetic fiber cloth, plain woven
cloth, polyester yarns, nylon filament yarns, polyester staple
fibers, textured yarns, polyester chips and others.
As of Sept. 30, 2007, the company had a shareholders' equity
deficit of TWD3.09 billion on total assets of TWD10.37 billion
and total liabilities of TWD13.46 billion.
The company also incurred net losses TWD1.82 billion,
TWD988.70 million, TWD1.69 billion, TWD2.90 billion and
TWD1.13 billion for the years ending Dec. 31, 2002 through 2006.
CIS TECH: Sept. 30 Balance Sheet Upside-Down by TWD730 Million
--------------------------------------------------------------
CIS Technology Inc. reported a net loss of TWD80.10 million for
the nine months ended Sept. 30, 2007, almost halving the
TWD164.8-million net loss reported for the nine months ended
Sept. 30, 2006.
The company had net sales of TWD0.10 million for the period in
review, while costs of goods sold and other operating expenses
amounted to TWD0.90 million and TWD18.50 million, respectively,
resulting in an operating loss of TWD19.30 million. The company
also paid TWD37.30 million in interest expenses.
As of Sept. 30, 2007, the company's balance sheet showed total
assets of TWD1.03 billion and total liabilities of
TWD1.76 billion, resulting in a capital deficiency of
TWD730.40 million.
Hsi Chih, Taiwan-based CIS Technology Inc. --
http://www.cis.com.tw/-- is principally engaged in the
manufacture of computer peripheral products, as well as video
and audio products. The company's major products include crystal
display televisions and crystal computer monitors.
CIS TECH: Continues Bleak Sales Record for August 2007
------------------------------------------------------
CIS Technology Inc. reported no sales for August 2007, according
to data obtained from Bloomberg.
The company virtually had no sales activity since the start of
the year, with only TWD97,000 in sales recorded for June 2007.
The company had sales of TWD30.46 million in the January to
August 2006 period.
Hsi Chih, Taiwan-based CIS Technology Inc. --
http://www.cis.com.tw/-- is principally engaged in the
manufacture of computer peripheral products, as well as video
and audio products. The company's major products include crystal
display televisions and crystal computer monitors.
As of Sept. 30, 2007, the company had total assets of
TWD1.03 billion and total liabilities of TWD1.76 billion,
resulting in a capital deficiency of TWD730.40 million.
The company also incurred net losses of TWD307.9 million,
TWD80.6 million, TWD630.2 million, and TWD445.2 million for the
years ended Dec. 31, 2003 through 2006, respectively.
CMC MAGNETICS: Incurs TWD140-Mil. Net Loss for Jan.-Sept. Period
----------------------------------------------------------------
CMC Magnetics Corporation reported a net loss of
TWD140.0 million for the first nine months of 2007, a
disappointing turn compared to the TWD447.4-million net profit
in the previous corresponding period.
The company also recorded a net profit of TWD146.9 million for
the half-year ending June 30, 2007.
For the 2007 nine-month period, the company had sales of
TWD18.4 billion, which translated to an operating income of
TWD475.9 million after operating expenses of TWD17.9 billion
were deducted. The company, however, recorded a
TWD466.0 interest expense charge.
As of Sept. 30, 2007, the company had total assets of
TWD79.4 billion, total liabilities of TWD25.7 billion, and total
equity of TWD53.7 billion.
Headquartered in Taipei, Taiwan, CMC Magnetics Corporation --
http://www.cmcdisc.com/-- is engaged in the manufacture and
sale of media storage devices and opto-electrical products. The
Company distributes its products within the domestic market and
to overseas markets, including the Americas, Europe and rest of
Asia.
The Troubled Company Reporter-Asia Pacific reported that on
Jan. 11, 2007, Moody's Investors Service changed to stable from
negative the outlook for both CMC Magnetics Corporation's B1
corporate family rating and its Ba2.tw national scale issuer
rating.
CMC MAGNETICS: Obtains Level-A Laboratory Certification
-------------------------------------------------------
Optical disc makers CMC Magnetics and Ritek Corp. recently
obtained Level A laboratory certification for 4x Blu-ray Disc
(BD)-R SL discs, the Digitimes.Com reports.
Digitimes relates that CMC and Ritek are keeping apace with each
other in terms of their progress in R&D for blue-laser optical
discs, with each having so far secured level A laboratory
certification for 2x HD DVD-R SL, 1x HD DVD-RW SL, 2x
BD-RE SL and 4x BD-R SL, according to industry sources in
Taiwan.
The report explains that CMC will focus on markets in North
America, Europe and Japan for its 4x BD-R SL discs for the time
being, and whether or not it expands its production capacity of
BD discs will hinge on global market conditions, the company
pointed out. Ritek is already poised to start volume production
of HD DVD and BD discs, the company indicated.
Headquartered in Taipei, Taiwan, CMC Magnetics Corporation --
http://www.cmcdisc.com/-- is engaged in the manufacture and
sale of media storage devices and opto-electrical products. The
Company distributes its products within the domestic market and
to overseas markets, including the Americas, Europe and rest of
Asia.
The Troubled Company Reporter - Asia Pacific reported that on
Jan. 11, 2007, Moody's Investors Service changed to stable from
negative the outlook for both CMC Magnetics Corporation's B1
corporate family rating and its Ba2.tw national scale issuer
rating.
COSMOS BANK: Bondholders Agree to Recapitalization Plan
-------------------------------------------------------
Cosmos Bank Taiwan's bondholders had signed agreements for its
recapitalization plan, the Taipei Times relates.
The Times reports that the cash-strapped lender's bondholders
have agreed to convert their debt holdings into Cosmos equities
to help improve the bank's financial structure, the bank said in
a statement.
As of Dec. 4, 2007, bondholders held TWD4.685 billion in the
lender's debt, or 35.4% of the total, The Times says, citing the
bank's statement.
The report adds that the bondholders agreed to exchange their
debt holdings for the lender's equities at TWD2 per share, which
will represent a fully diluted stake of 4.2% in the bank.
The report also explains that the bondholders' agreements depend
on the planned capital injection of TWD29.7 billion from US
private equity firm SAC Private Capital Group LLC and GE Money.
Headquartered in Taipei, Taiwan, Cosmos Bank, Taiwan --
http://www.cosmosbank.com.tw/-- provides financial services for
individuals and small and medium-sized enterprises in Taiwan.
Cosmos reported a net loss of NT$11.29 billion (US$342.1
million) for FY2006. Its capital-adequacy ratio fell to 7.51%
as of the end of March, below the 8% level required by Taiwan's
regulator. In April, Cosmos said it planned to increase its
capital by the third quarter to avoid being taken over by the
government.
The Troubled Company Reporter-Asia Pacific reported on Sept. 6,
2007, that Fitch Ratings downgraded the bank's individual rating
of Cosmos Bank to F, reflecting Fitch Rating's view that Cosmos
would have defaulted if it had not received external support.
In order to distinguish failed banks more clearly, Fitch, in
June 2007, added a sixth rating category to its Individual
rating scale, i.e. 'F', which denotes a bank that has either
defaulted or, in Fitch's opinion, would have defaulted if it had
not received external support.
PACCO TECH: June 30 Balance Sheet Upside-Down by TWD335 Million
---------------------------------------------------------------
Pacco Tech Co. Ltd. reported a net loss of TWD3.8 million for
the half-year period ended June 30, 2007.
As of June 30, 2007, the company had total assets of
TWD282.3 million and total liabilities of TWD617.5 million,
resulting in a capital deficiency of TWD335.2 million.
Preliminary nine-month results
The company also reported a net loss of TWD7.6 million for the
nine months to Sept. 30, 2007, significantly lower than the net
loss of TWD31.1 million reported for the nine months ended Sept.
30, 2006.
Pacco Tech Co. Ltd. -- http://www.paccogroup.com/-- is a
Taiwan-based company engaged in the manufacture and sale of
electronic products, as well as construction business.
PETROLEOS DE VENEZUELA: Wants 190 Oil Rigs by End of Next Year
--------------------------------------------------------------
Venezuelan oil and energy minister Rafael Ramirez told Business
News Americas that state-run oil firm Petroleos de Venezuela SA
wants to have about 190 oil rigs running by the end of 2008.
Minister Ramirez said in a statement that with the recent
arrival of two Chinese-made rigs, about 156 rigs are operating
in Venezuela.
BNamericas relates that Venezuela will run 27 Chinese rigs after
Petroleos de Venezuela signed an accord with Chinese counterpart
China National Petroleum Corp. About 13 rigs will be shipped
from China and some 14 will be assembled in Venezuela.
Minister Ramirez said in a statement that Venezuelan technicians
and engineers have been studying how to run the rigs in China.
Minister Ramirez commented to BNamericas, "They are coming back
with the ability to operate our own rigs."
The Venezuelan government wants to begin natural gas production
at offshore wells by the end of next year as part of its Costa
Afuera program, BNamericas says, citing Minister Ramirez. The
Venezuelan officer said in the report that Petroleos de
Venezuela contracted a Singapore-based rig vessel to drill up to
32 natural gas wells.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China. As
reported on March 28, 2007, Standard & Poor's Ratings Services
assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s USUS$2 billion notes due
2017, USUS$2 billion notes due 2027, and USUS$1 billion notes
due 2037.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, USUS$2 billion notes due 2027, and US$1 billion notes due
2037.
PROTOP TECH: June 30 Balance Sheet Shows TWD604-Mil. Insolvency
---------------------------------------------------------------
Protop Technology Co. Ltd. reported a net loss of
TWD58.60 million for the half-year ended June 30, 2007, an
improvement against the TWD1.54-billion net loss for the half-
year ended June 30, 2006.
It is, however, a disappointment compared to the net profit of
TWD41.80 million recorded for the first quarter of 2007.
The company posted sales of TWD141.40 million for the half-year
in review, while costs of goods sold and other operating
expenses amounted to TWD75.40 million and TWD197.7 million,
respectively, giving the company an operating loss of
TWD131.7 million.
The company also had a TWD42.20 million interest expense.
As of June 30, 2007, the company had total assets of
TWD1.05 billion and total liabilities of TWD1.66 billion,
resulting in a capital deficiency of TWD603.55 million.
Taiwan-based Protop Technology Co. Ltd. --
http://www.protop.com.tw/-- is engaged in the manufacture and
distribution of home video electronics and portable video
electronics. Its products are applied to consumer electronics.
The company distributes its products in the domestic market and
to overseas markets, including the rest of Asia, the Americas
and Europe.
RITEK CORP: Posts TWD78.4-Mil. Net Profit in First Nine Months
--------------------------------------------------------------
Ritek Corp. posted a net income of TWD78.4 million for the first
nine months of 2007, a turnaround against the TWD2.99-billion
net loss recorded for the first nine months of 2006.
The company boasted net sales of TWD15.02 billion, which
translated to an operating income of TWD639.10 million as cost
of goods sold and other operating expenses amounted to
TWD13.28 billion and TWD1.10 billion, respectively.
As of Sept. 30, 2007, the company had total assets of
TWD59.51 billion, total liabilities of TWD19.71 billion and
total shareholders' equity of TWD39.80 billion.
Headquartered in Hsinchu County, Taiwan, Ritek Corporation --
http://www.ritek.com/-- is engaged in the manufacture,
processing and sale of optical products. The company's major
products include electronic storage media products, such as
flash memory cards; information technology products;
optoelectronic components, such as indium tin oxide conductive
glasses, as well as optical discs and their peripherals. The
company distributes its products in the domestic market and to
overseas markets, including the rest of Asia, the Americas and
Europe.
Ritek Corp. incurred net losses of TWD12.27 billion,
TWD2.35 billion, and TWD6.67 billion for the years ended
Dec. 31, 2004 through 2006.
RITEK CORP: Appoints Zhang Yuhuan as Assistant Finance GM
---------------------------------------------------------
Ritek Corp.'s board of directors has appointed Zhang Yuhuan as
Assistant General Manager of Finance, Reuters Key Developments
reports.
Zhang replaces Pan Yanmin effective on Oct. 26, 2007, Reuters
adds.
Headquartered in Hsinchu County, Taiwan, Ritek Corporation --
http://www.ritek.com/-- is engaged in the manufacture,
processing and sale of optical products. The company's major
products include electronic storage media products, such as
flash memory cards; information technology products;
optoelectronic components, such as indium tin oxide conductive
glasses, as well as optical discs and their peripherals. The
company distributes its products in the domestic market and to
overseas markets, including the rest of Asia, the Americas and
Europe.
Ritek Corp. incurred net losses of TWD12.27 billion,
TWD2.35 billion, and TWD6.67 billion for the years ended
Dec. 31, 2004 through 2006.
RITEK CORP: Divests Giantplus Technology Shares
-----------------------------------------------
Ritek Corp.has sold 7,416,000 shares of Giantplus Technology
Co., Ltd., at a price of TWD44.49 per share, Reuters Key
Developments reports.
No further details were reported.
Headquartered in Hsinchu County, Taiwan, Ritek Corporation --
http://www.ritek.com/-- is engaged in the manufacture,
processing and sale of optical products. The company's major
products include electronic storage media products, such as
flash memory cards; information technology products;
optoelectronic components, such as indium tin oxide conductive
glasses, as well as optical discs and their peripherals. The
company distributes its products in the domestic market and to
overseas markets, including the rest of Asia, the Americas and
Europe.
Ritek Corp. incurred net losses of TWD12.27 billion,
TWD2.35 billion, and TWD6.67 billion for the years ended
Dec. 31, 2004 through 2006.
TAIWAN BUSINESS BANK: Mega Financial Might Divest Shares
--------------------------------------------------------
Mega Financial Holding Co. may sell its shares in Taiwan
Business Bank after the island's presidential election in March
2008, Bloomberg News reports, citing an Apple Daily report.
According to Bloomberg, the Ministry of Finance has agreed that
the two lenders won't seek a merger.
Bloomberg explains that Mega Financial owns 13% of Taiwan
Business Bank, according to the newspaper. No explanation was
given in the report for the timing of the possible stake sale,
the report adds.
Taipei, Taiwan-based Taiwan Business Bank --
http://www.tbb.com.tw/-- provides corporate financial services
personal financial services. The bank's domestic branch
network covers the whole island of Taiwan. In additon there are
three overseas units,including Los Angeles Branch in US, Hong
Kong Branch in Hong Kong and Sydney Branch in Australia.
The Troubled Company Reporter-Asia Pacific reported that Fitch
Ratings, on Jan. 22, 2007, affirmed the bank's long-term issuer
default rating at BB+, and short-term rating at B.
YEU TYAN: June 30 Balance Sheet Upside-Down by TWD9 Billion
-----------------------------------------------------------
Yeu Tyan Machinery Manufacturing Company, Ltd. reported a net
loss of TWD153.8 million for the half-year ended June 30, 2007.
The company reported TWD8.6 million in net sales, while cost of
goods sold and other expenses amounted to TWD7.6 million and
TWD9.6 million, respectively, giving the company an operating
loss of TWD8.6 million.
As of June 30, 2007, the company had total assets of
TWD1.3 billion and total liabilities of TWD10.2 billion,
resulting in a capital deficiency of TWD9.0 billion.
Yeu Tyan Machinery Manufacturing Company, Ltd. manufactures and
markets automobile and related parts.
YEU TYAN: September 2007 Sales Down to TWD96,000
------------------------------------------------
Yeu Tyan Machinery Manufacturing Company, Ltd.'s sales for
September 2007 fell 8.57% year-on-year to TWD96,000 from
TWD105,000, Bloomberg News reports.
The report adds that sales figures for the first nine months of
2007 totaled TWD2.21 million, down 30.36% from sales figures in
the previous corresponding period.
Yeu Tyan Machinery Manufacturing Company, Ltd. manufactures and
markets automobile and related parts.
The company incurred net losses of TWD973.5 million,
TWD699.8 million, TWD487.2 million, TWD537.4 million, and
TWD351.5 million for the years ending Dec. 31, 2002 through
2006.
The Troubled Company Reporter-Asia Pacific reported that as of
June 30, 2007, the company had total assets of TWD1.3 billion
and total liabilities of TWD10.2 billion, resulting in a capital
deficiency of TWD9.0 billion.
=========
I N D I A
=========
AES CORP: Unit To Decrease Concession Area Power Losses To 11.6%
----------------------------------------------------------------
AES Eletropaulo's corporate revenue manager Charles Capdeville
told Business News Americas that power losses in the firm's
concession area will decrease to 11.6% of overall distribution
in 2007, from 12.0% in 2006.
AES Eletropaulo wants to reduce the "rate," planning to bring
down power losses in its concession area by 0.4 percentage
points a year to 9.7% or 9.8% in the next five years, BNamericas
says, citing AES Eletropaulo's loss reduction manager Jose
Cavaretti.
Mr. Capdeville told BNamericas.com that AES Eletropaulo
decreased by a third energy consumption in Paraisopolis, one of
Sao Paulo's poorest neighborhoods.
BNamericas relates that consumption declined partly due to AES
Eletropaulo's Paraisopolis clients, who began paying for power.
Mr. Capdeville commented to BNamericas, "We had a 100% loss rate
in Paraisopolis. After a major and thorough community awareness
program, we were able to reduce power losses to 65% of all
consumption."
According to BNamericas, Paraisopolis has about 4,365 power-
consuming units:
-- 80% are residential customers,
-- 10% are commercial users, and
-- 10% are a mix of residential and commercial
clients.
Mr. Cavaretti told BNamericas that the firm was able to catalog
power users in the community through door-to-door visits,
conducting mini-audits in over 4,000 homes and 70 shops. The
firm distributed about 9,600 efficient light bulbs and some 500
new refrigerators in the community in an effort to encourage
conservation.
"After a user migrates to our client database, it is hard for
them to become delinquent again as we connected Paraisopolis
slum to the system with state-of-the-art cables, which make
illegal connections more difficult," Mr. Capdeville commented to
BNamericas.
BNamericas notes that polling institute Ibope 's director Silvia
Penteado Cervellini said during a conference in Sao Paulo that a
market study by the institute indicated that 62% of Paraisopolis
residents accept Eletropaulo's program. Ms. Cervellini
explained that the approval rating was taken from interviews
with 400 power users. When the institute only considers users
who were given brand new refrigerators, this increases to 88%.
The residents were positive that the program can lessen the risk
of fire and boost efficiency.
Paraisopolis was chosen as it is among the poorest areas in AES
Eletropaulo's concession area. It also has a mix of residential
and commercial users, BNamericas states, citing Mr. Capdeville.
About AES Eletropaulo
AES Eletropaulo is a power distributor in Sao Paulo. It has 4.6
million clients and serves an estimated 14 million people in its
4,526sq km concession area. In terms of revenues, it is the
largest electricity distributor in Latin America.
About AES Corp.
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. The company's Latin America business
group is comprised of generation plants and electric utilities
in Argentina, Brazil, Chile, Colombia, Dominican Republic, El
Salvador, Panama and Venezuela.
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 USNZ$2 billion from
USNZ$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 USNZ$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.
SPICEJET: Auditor Says Loss in July-Sept Would Have Been Higher
---------------------------------------------------------------
Spicejet Ltd's auditors, in the limited review of the airline's
financial results for the quarter ended Sept. 30, 2007, said
that had certain adjustments been included, the company's loss
for the quarter would have been higher by INR298.15 million.
As previously reported by the Troubled Company Reporter-Asia
Pacific, SpiceJet booked a net loss of INR377.71 million in the
quarter ended Sept. 30, 2007.
In the limited review report, the auditors recalled that the
audit report on the company's financial statements for the
period ended March 31, 2007 was qualified in respect of certain
disputed and therefore, doubtful receivables and non-accrual of
interest on liabilities aggregating to INR624.15 million. These
matters are detailed in the company in Note 6 of the unaudited
financial results and detailed in paragraph 5 of the said audit
report.
Considering the reduction in doubtful receivables and addition
to the un-accrued interest, the auditors limited review pointed
out, the impact of those qualifications as at Sept. 30, 2007,
stands at INR298.15 million. Had these adjustments been
recorded in the quarter ended Sept. 30, 2007, the loss after tax
would have been higher by INR298.15 million, the report said.
Gurgoan, India-based SpiceJet Limited --
http://www.spicejet.com/-- is an airline carrier. In fiscal
2006, SpiceJet carried over 1.6 million passengers. As of
May 31, 2006, the company operated over 60 daily flights
covering 13 destinations, including eight Boeing 737-800
aircraft. SpiceJet has integrated with various travel related
Websites, such as indiatimes, makemytrip, travelguru and
cleartrip. The company has launched a co-branded credit card
with State Bank of India in association with MasterCard. In
fiscal 2006, SpiceJet entered into a sale and lease back
agreement with Babcock & Brown Aircraft Management along with
its partner Nomura Babcock & Brown Co. Ltd. covering 16 Boeing
737-800/-900ER aircraft.
Spicejet incurred net losses for at least two consecutive years
-- INR414.2 million in the year ended May 31, 2006, and
INR287.05 million in the year ended May 31, 2005. For the ten
months ended March 31, 2007, the airline carrier booked a net
loss of INR707.43 million.
STATE BANK OF INDIA: No Development Yet on SBH Merger
-----------------------------------------------------
There is no concrete development yet on the issue of merger of
State Bank of Hyderabad with State Bank of India, Business Line
quotes SBH Managing Director Amitabha Guha as saying.
SBI is planning to merge with its seven associate banks -- SBH,
State Bank of Indore, State Bank of Saurashtra, State Bank of
Patiala, State Bank of Bikaner & Jaipur, State Bank of
Travancore and State Bank of Mysore.
So far, SBI's board has only approved one of the proposed
mergers, and no firm decisions have been taken on the merger
with SBH or no road is given yet, Business Line quotes Mr. Guha
in an interview.
As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 29, 2007, SBI's central board approved the bank's merger
with the State Bank of Saurashtra. The mergers are still
subject to the approval of the government and the Reserve Bank
of India in accordance with State Bank of India Act, 1955.
Employees and officers of the associated banks opposed the
proposed mergers and even staged a two-day strike that started
on Monday.
The SBI is facing tough competition to maintain its top position
and hence planning to merge these associate banks with itself to
utilize their assets for its own “selfish ends", Business Line
cites a bank employees union as saying. The union asserted that
merger is not in the interest of customers or the staff and is
not at all in the national interest.
Headquartered in Mumbai, State Bank of India --
http://www.sbi.co.in/-- is a financial services group operating
primarily in the banking industry. Its core operations include
Treasury Operations, Corporate Banking Group, National Banking
Group and International Banking Group.
* * *
Standard & Poor's Ratings Services, on June 18, 2007, assigned
its 'BB' issue rating to the State Bank of India's proposed
USNZ$225 million Hybrid Tier I perpetual notes under its USNZ$5
billion MTN program. The Hybrid Tier I notes will be perpetual
notes with a call option 10 years from the date of issue.
As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual
rating.
Moody's Investors Service placed a Ba2/Not Primerating on State
Bank of India's foreign currency bank deposits, Ba2/Not Prime on
Financial Strength Rating in June 2006.
STATE BANK OF INDIA: Gov't Okays Subcription to Rights Issue
------------------------------------------------------------
The Government of India has conveyed its approval to subscribe
to the proposed rights issue of shares of the State Bank of
India, a regulatory filing with the Bombay Stock Exchange
discloses.
The subscription of around INR10,000 crore will be by way of
issue of SLR Marketable Government Securities. A Security
Redemption Fund will be created for redeeming these securities
on the due date.
Headquartered in Mumbai, State Bank of India --
http://www.sbi.co.in/-- is a financial services group operating
primarily in the banking industry. Its core operations include
Treasury Operations, Corporate Banking Group, National Banking
Group and International Banking Group.
* * *
Standard & Poor's Ratings Services, on June 18, 2007, assigned
its 'BB' issue rating to the State Bank of India's proposed
USNZ$225 million Hybrid Tier I perpetual notes under its USNZ$5
billion MTN program. The Hybrid Tier I notes will be perpetual
notes with a call option 10 years from the date of issue.
As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual
rating.
Moody's Investors Service placed a Ba2/Not Primerating on State
Bank of India's foreign currency bank deposits, Ba2/Not Prime on
Financial Strength Rating in June 2006.
TATA MOTORS: To Commence Thai Pick-Up Production in Early 2008
--------------------------------------------------------------
Tata Motors Ltd will commence production of pick-up trucks at
its Thailand early next, Thomson Financial reports.
According to the report, the automobile maker's subsidiary, Tata
Motors (Thailand), will dole out THB1.3 billion to set up its
first output base in Thailand, the biggest auto market in
Southeast Asia.
Production will start in March 2008 with output capacity of
35,000 units per year, the news agency quotes the company in a
media release.
India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the Company. The Company's operating segments consists of
Automotive and Others. In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.
Tata Motors has operations in Russia, and the United Kingdom.
* * *
Standard & Poor's Ratings Services, on July 13, 2007, assigned
its 'BB+' issue rating to the proposed USNZ$490 million zero-
coupon convertible bonds of India's Tata Motors Ltd.
(BB+/Stable/--). The bonds represent a direct, unsecured and
unsubordinated obligation of the company. Proceeds from the
bonds will be used for capital expenditure, overseas
investments, acquisitions, and other general corporate purposes.
Moody's Investors Service, on July 26, 2005, gave Tata Motors
'Ba1' long-term corporate family and senior unsecured debt
ratings.
* Fitch Says Indian Banks Face Increased Challenges
---------------------------------------------------
Fitch Ratings, on Dec. 5, said that the tightening bias of
India's monetary policy, together with increased consumer
leverage and the appreciating rupee could impact the immediate
prospects of the country's banks. Asset quality has come under
some pressure, particularly in consumer loans that grew rapidly
in the past and has now started to season, forcing banks to re-
examine the loss assumptions in some parts of the business.
Fitch would therefore likely be increasingly cautious in its
near-term outlook on the performance of Indian banks; the banks,
however, will continue to benefit from the growth opportunities
in the economy given their dominant status as financial
intermediaries -- the strong investment cycle currently underway
is the new growth engine for bank credit.
In the report titled "Indian Banks - Annual Review and Outlook",
Fitch observes that while the increase in net income of Indian
banks remained strong at 25% yoy during H108 (24% in FY07), on
the back of loan growth and lower mark-to-market depreciation on
government securities portfolios, the rise in net interest
income was more sedate at 11% in H108 reflecting the pressure on
net interest margins. The slowdown in loans growth in FY08,
together with any increase in loan loss provisions, could
therefore affect net income.
NPL ratios will remain under focus, particularly in consumer
loans where rising interest rates and increased consumer
leverage has affected borrowers' repayment capacity, leading to
growing delinquencies in the unsecured loan portfolio. Asset
quality in residential mortgage loans (accounting for about half
the retail loan portfolio) has held steady, but could be
vulnerable if rising interest rates are accompanied by a
correction in property prices. The appreciation of the rupee
against the US dollar could affect the smaller exporters of
textiles; banks have reportedly restructured some of their
exposure to this segment in FY08.
The ability to raise timely capital could remain a key
differentiator between banks, given that internal capital
generation is unlikely to meet the requirements of growth in
risk weighted assets, as well as the increased capital charge
for operational risk and the need for government banks to make
additional provisions for pension liabilities. The larger
private banks have demonstrated greater capabilities in raising
capital in a timely manner. Preference shares have been added
to the list of hybrid capital that banks can issue; however,
credit spreads in the international markets (that have been the
largest source of hybrid Tier 1 capital for Indian banks) has
dramatically widened since July 2007 following the global
tightening of liquidity, forcing banks to postpone their plans
to issue these instruments overseas. The need to access capital
may come into sharper focus if the credit cycle deteriorates,
which could well provide an impetus for consolidation.
The report, "Indian Banks - Annual Review and Outlook", also
contains a comparison of key financial parameters of 47
government and private banks that accounted for over 90% of
commercial bank assets in India in FY07, and will be available
shortly on the agency's subscription Web site,
http://www.fitchratings.com
=================
I N D O N E S I A
=================
ANEKA TAMBANG: Expects 2008 Nickel Output to Increase by 6.3%
-------------------------------------------------------------
PT Aneka Tambang Tbk expects its ferro-nickel output to rise by
6.3% next year as it gradually lifts the output of its damaged
smelter, Reuters reports.
According to the report, Antam expects to produce 17,000 tonnes
on ferro-nickel in 2008 compared to an estimated 16,000 tonnes
this year.
In October, the report recounts, Antam cut its ferro-nickel
production forecast for 2007 to 16,000 from 20,000 tonnes due to
a leak in its new nickel.
As reported by The Troubled Company Reporter-Asia Pacific on
June 21, 2007, Aneka had a metal leakage in its third
smelter FeNi III. The leak from the furnace wall
occurred on June 16 and lasted for 90 minutes. It prompted
Antam to reduce the power load at the smelter to prevent damage
and for safety reasons.
Company Director Darma Ambiar told Reuters that Antam is aiming
to produce 15 tonnes of gold a year by 2017, from around 3
tonnes a year currently, to reduce its reliance on nickel
output.
The company expects the contribution from nickel to its revenue
to come down to 60-70 %within the next 10 years, compared to
more than 90% currently, Reuters 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 NEGARA: Fitch Affirms Short-Term Rating at 'B'
---------------------------------------------------
Fitch Ratings has upgraded the National Long-term rating of PT
Bank Negara Indonesia to 'AA-(idn)' (AA minus (idn)) from 'A+
(idn)). The Outlook is Stable. This rating action resolves the
Positive Outlook that BNI's National rating was placed on in
September 2007. At the same time, Fitch has affirmed BNI's
other ratings, as follow:
-- Long-term foreign and local currency Issuer Default
Ratings at 'BB-' with a Positive Outlook,
-- Short-term rating at 'B'
-- Individual rating at 'D'
-- Support rating at '4', and
-- Support rating floor at 'B+'
The upgrade of BNI's National rating reflects its stronger
capital, post its rights issue in Q307, its improving but still
weak loan quality, generally stable but below-average
profitability relative to that of its peers. It also takes into
account its majority state-ownership (76.36%) and size (9.3% of
system assets).
BNI raised IDR3.9 trillion in new capital in a secondary share
offering in August 2007, which involved a rights issue of
1.99 billion new shares followed by a vendor sale of almost
4 billion government shares. The rights issue increased BNI's
total CAR to 17.6% at end-9M07 (Tier-1: 13%) from 15.3% at end-
2006. However, this was still below the peer average of about
20% (Tier-1: 15%).
Progress in loan restructuring and more favorable macro
conditions in 2007 contributed to an improvement in loan
quality. NPLs were reduced to 8.3% of gross loans at end-9M07
from 10.5% at end-2006 and 13.7% at end-2005. In the first nine
months of 2007, BNI finalized restructuring of about
IDR1.3 trillion of non-performing corporate loans (1.6% of gross
loans) and upgraded about half to performing loans, and reduced
the NPL ratio for the corporate segment to 6.4% at end-9M07 from
10.7% at end-2006. However, the NPL ratio for commercial/SME
loans remained quite high although there was a modest decline to
11.1% at end-9M07 from 11.9% at end-2006 as the bank focused on
the resolution of larger corporate NPLs.
Provision cover improved to 62% of NPLs at end-9M07 from 55% at
end-2006, but was still below that of its peers of about 90%
based on June 2007 numbers. Fitch considers the provision cover
as quite low given the volatile operating condition and weak
legal system in Indonesia. A significant amount of restructured
loans, about 13% of total loans at end-9M07 (of which about two-
thirds were classified as performing loans), may also be prone
to a relapse if macro conditions worsen.
Pre-tax ROA was stable at 1.8% in 9M07 and 2006, as higher
trading and fee income offset weaker net interest income. Net
interest margins narrowed to 4.4% in 9M07 from 4.9% in 2006
partly due to higher funding costs as time deposits increased to
50% of total deposits at end-Q107 from 42% at end-2005.
However, in the past six months ended 9M07, BNI has made the
effort to cut the time deposit amount and raise the proportion
of low cost savings and demand deposits, resulting in better
funding mix - time deposits declined to 43% of total deposits at
end-9M07. New lending has picked up, raising the share of loans
to 44% of total assets at end-9M07 from 37% at end-2006.
Corporate loans remained substantial at 41% of total loans at
end-9M07 but reduced from 72% at end-2001, reflecting increased
exposure to better-yielding SME and consumer loans. BNI intends
to maintain a 40:60 loan distribution between corporate and
consumer/SME loans.
About Bank Negara
Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id/-- is a financial
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature. The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore. The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.
BANK MANDIRI: Fitch Affirms Long-Term IDR at 'BB-'
--------------------------------------------------
Fitch Ratings has upgraded the Individual Rating of PT Bank
Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its
National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The
Outlook on the National rating remains Stable. At the same
time, all other ratings are affirmed, as follows:
-- Long-term foreign and local currency Issuer Default
ratings at 'BB-' with a Positive Outlook
-- Short-term IDR at 'B'
-- Support at '4', and
-- Support Floor at 'B+'
The upgrade in the Individual Rating reflects its stronger
balance sheet position, as reflected by its substantially
reduced NPLs and increased provision cover, as well as the
restoration of profitability ratios, since Q107, closer to peer
levels. The improved credit profile relative to other Fitch-
rated Indonesian banks, and its systemic importance as the
largest state-owned bank in Indonesia accounting for about 16%
of system assets, underpin the upgrade in its National Rating.
Meanwhile, the Positive Outlook on its international ratings
reflect the Indonesian sovereign ('BB-' (BB minus)/Positive).
Thanks to increased loan restructuring and recovery efforts
under the new management team and the more favorable operating
conditions in Indonesia since H206, NPLs were substantially
reduced to IDR14.4 trillion (12.9% of gross loans) at end-
September 2007, from IDR26.6tn (26.6%) at end-2005. Provision
cover on NPLs was raised to 92% at end-Sep07, as compared with
77% at end-2006 and 45% at end-2005; provision charges increased
sharply in 2005-2006 (dampening profitability then), while
provisions, which could have been written back, were ploughed
back to bolster reserves.
Stress testing by the agency assuming harsher write-offs on
existing NPLs and special mention loans (which include a large
portion of its restructured loans), indicates much reduced
capital impairment risk amounting to about 20% of equity
(compared with 50%-60% when NPLs peaked in H205 to H106); Fitch
notes that actual impairment should be lower due to ongoing
earnings accretion (ROE was 15.5% in 9M07). The agency
understands the bank is on track to further reduce gross NPLs to
10% or less of loans by end-2007 through a combination of write-
offs and loan recoveries/restructuring.
Meanwhile, ROA recovered to 1.6% in the first three quarters of
2007 (ROE: 15.5%) compared with 0.9% in 2006 and 0.2% in 2005,
which are also closer to the peer average of 2.0% (ROE: 18.5%)
based on H107 data. This reflects stronger income growth on the
combined impact of reduced NPL drag and lower deposit funding,
as well as decreased provision charges as NPLs fell. Tier 1 and
Total CAR ratios remained strong at 18.3% and 22.4%,
respectively (peer average of 16% and 20% respectively), albeit
noting the high proportion of zero-weighted government recap
bonds in its balance sheet (33% of total assets). Long term CAR
targets are unchanged at 18%-20% (total CAR) to support the
bank's organic and non-organic expansion plans.
However, given its still high NPL ratio and exposure to
restructured loans (accounting for 20% of total loans), Fitch
will continue to monitor the progress of its NPL reduction. It
should also be noted that the improvements made to the bank's
risk management system in the last two years with the help of
external consultants (under the new management team) remained
largely untested amidst the setting of stronger loan targets for
the bank in the medium term. Mandiri's loans slowed to a 10%+
annualized rate in 2005-2006 (due to the focus on NPL
resolution) from 20%+ in 2004. Loan composition was 46%
corporates, 31% commercial, 11% small/micro loans and 13%
consumer at end-September 2007.
About Bank Mandiri
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
TELKOM INDONESIA: Responds to Indonesian Watchdog's Ruling
----------------------------------------------------------
PT Telekomunikasi Indonesia Tbk said the Business Competition
Supervisory Commission has issued a press release through its
Web site on November 19, 2007, stating its ruling which involves
one of Telkom's major subsidiaries, PT Telekomunikasi Selular,
with the following decisions:
-- Telkomsel has breached Article 17 (1) Law No.5/1999
regarding domination upon production and or marketing of
services suspected to create a monopolistic act and unfair
business practice.
-- Telkomsel did not breach Article 25(1) Law No.5/ 1999.
-- KPPU has told Telkomsel to stop its practices of applying
high tariffs and to lower its current cellular tariffs up
to a minimum of 15% .
-- KPPU has imposed a fine to Telkomsel in the amount of
IDR25 billion.
In view of the above, the company said that:
-- In general, Telkom respects the legal processes which has
been conducted by KPPU as an independent body for
supervising fair competition in Indonesia. Telkom will
always be committed to comply with good corporate
governance practices.
-- As the majority and controlling shareholder of Telkomsel,
Telkom has requested Telkomsel to immediately carry out a
legal review in accordance with its own internal processes
and governance practices.
-- Telkom will fully support all legal efforts made by
Telkomsel, including any options for an appeal to the
District Court.
About PT 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-'.
TELKOM INDONESIA: Pays IDR48.45. Share Interim Dividend for 2007
----------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk 's Board of Directors Meeting
decided to distribute an interim dividend for the financial year
2007 in the amount of IDR48.45 per share with a nominal value of
IDR250 to all of its shareholders registered in the company's
Shareholders Registry on December 4, 2007 at 16.00 Western
Indonesian Time.
The distribution of the interim dividend is based on the
Company's Financial Statements for the period ended on September
30, 2007 (Q3-2007). In relation to that, the company hereby
announces the schedules and procedures of the distribution of
the interim dividend for the financial year of 2007 as follows:
A. Schedule
Date
----------------
Recording Date December 4, 2007
Cum Dividend
- Regular and Negotiation Market November 29, 2007
- Cash Market December 4, 2007
Ex Dividend
- Regular and Negotiation Market November 30, 2007
- Cash Market December 5, 2007
Payment Date December 18, 2007
B. Procedures for Distribution of Dividend
* The eligible shareholders are shareholders registered in
the company's Shareholders Registry (Recording Date) on
December 4, 2007 at 16.00 Western Indonesian Time, or at
Kustodian Sentral Efek Indonesia securities account at the
close of trading on December 4, 2007.
* For the American Depository Shareholders, the New York
Stock Exchange regulations shall apply, and the interim
dividend will be paid through the Custodian Bank appointed
by the Bank of New York in accordance with the numbers
registered at the record date at the Stock Administration
Bureau and Kustodian Sentral Efek Indonesia on December 4,
2007.
* For shareholders whose shares are registered with KSEI, the
payment of the interim dividend will be conducted through
KSEI and will be distributed to the respective securities
account or custodian bank on December 18, 2007. The
payment receipt will be provided by KSEI to the respective
securities company or the bank of the securities company or
Custodian Bank where the shareholders open their accounts.
* For shareholders whose shares are not registered with KSEI,
the company will send a Notice of Dividend Payment
to the shareholders' address.
-- Interim Dividends can be withdrawn at the nearest Bank
Negara Indonesia branches in Indonesia. The
shareholders should bring along valid original identity
cards, or if a proxy represents a shareholder, the
proxy should bring along a Power of Attorney (“POA”)
along with the valid original Identity Card of both the
POA Grantor and the POA Grantee.
-- The interim dividend can only be transferred to the
Shareholder's bank account if:
* The amount of Interim Dividends received by the
shareholder is at least IDR500,000, and
* the shareholders must inform their bank account
numbers correctly and notify the account number to
PT DATINDO ENTRYCOM, Puri Datindo – Wisma Sudirman,
Jl. Jend. Sudirman Kav.34-35, Jakarta 10220 before
December 4, 2007.
* The Company will apply Income Tax Deduction in accordance
with the applicable tax regulations for the payments of
dividend.
* In accordance with Circular Letter of the Director General
of Tax No. SE-03/PJ.101/1996 dated 29 March 1996, foreign
Shareholders whose countries have signed Agreements to
Avoid Double Taxation with Indonesia must deliver the
original letter of Domicile issued by their Governments or
a copy the letter of Domicile which has been legalized by
the Go Public Tax Office, to PT Datindo Entrycom or KSEI,
at the latest at 16.00 Western Indonesian Time (WIB) on
December 4, 2007. Without that letter, the interim dividend
will be subject to 20% income tax based on PPh Article 26.
About PT 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-'.
TELKOM : Gov't Orders Opening of DLD Service by April 3, 2008
-------------------------------------------------------------
The government of Indonesia has ordered PT Telekomunikasi
Indonesia Tbk to open up its DLD service by April 3, 2008,
various reports say.
According to Teleography News, this company move is aimed to
rival PT Indosat Tbk.
Telkom must allow its fixed-line subscribers, initially in
Balikpapan, East Kalimantan, to use the service provided by
rival Indosat by the deadline given, Thomson Financial reports.
Indosat Director Guntur Siboro told Thomson Financial that "We
appreciate the decision to open up domestic long distance access
code in Balikpapan. We hope this will be a first step for the
creation of healthier climate for competition that will
ultimately benefit general public and subscribers, he added.
About PT 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-'.
=========
J A P A N
=========
COREL CORP: Partners with ConceptShare for Online Collaboration
---------------------------------------------------------------
Corel Corporation has partnered with ConceptShare Inc., an
emerging leader in online collaboration.
www.CorelDRAWConceptShare.com is launched as the first project
in a five-year partnership between the two companies. This new
online tool enables designers to easily share their work with
other designers, colleagues or clients, providing a more dynamic
and collaborative experience, while accelerating the design
process.
CorelDRAWConceptShare.com helps designers and clients by making
it easier to review concepts, make adjustments and complete
projects faster. By moving consultations online,
CorelDRAWConceptShare.com also saves time and money by
eliminating the need to travel for face-to-face meetings. In
addition, discussions about visual concepts are centralized,
improving information flow and the speed of decision making
between designers and their key stakeholders.
"CorelDRAW(R) has long been recognized as a premier graphics
application that delivers the features and functionality our
users need to be more productive in their day-to-day
activities," said Gerard Metrailler, Director of Product
Management, Graphics for Corel. "We understand the time many
users spend trying to collaborate on designs and feel that
partnering with ConceptShare, an emerging leader in the online
collaboration space, provides our users with the ability to get
the feedback they need on all of their designs in an efficient
and meaningful way."
"We are enthusiastic about our partnership with Corel. The
CorelDRAW version of ConceptShare(TM) provides us immediate
exposure to millions of CorelDRAW users worldwide and will help
to accelerate our growth into international markets," said
Bernie Aho, Product Manager and Co-Founder, ConceptShare. "This
strategic partnership demonstrates a new model for relationships
between web application providers and desktop software
companies."
About ConceptShare Inc.
ConceptShare Inc. -- http://www.conceptshare.com/-- is a world
leader in online design collaboration founded in 2006 in
Sudbury, Ontario, Canada by a team of designers and industry
professionals that understood the pains of the design
collaboration process. The company has developed a web
application that allows users to easily share, discuss and mark-
up designs for review over the web.
About Corel Corp.
Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX:
CRE) -- http://www.corel.com/-- is a packaged software company
with an estimated installed base of over 40 million users. The
company provides productivity, graphics and digital imaging
software. Its products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers. The company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro,
and Corel Painter(TM).
The company has operations in Germany, Italy, the United
Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among
others.
* * *
As reported Troubled Company Reporter-Latin America on
Nov. 15, 2007, Standard & Poor's Ratings Services has revised
its outlook on Corel Corp. to stable from positive. At the same
time, S&P affirmed the ratings, including the 'B' long-term
corporate credit rating, on the company.
TENNECO INC: Completes Partial Offering of 10-1/4% Senior Notes
---------------------------------------------------------------
Tenneco Inc. has completed its partial tender offer and consent
solicitation for its 10-1/4% Senior Secured Notes due 2013
(CUSIP 880349AD7).
As of midnight, New York City time, on Nov. 30, 2007, the
expiration date, holders of Notes had tendered approximately
US$474 million principal amount of Notes and Tenneco purchased
US$230 million principal amount of such Notes, which was the
maximum amount of the offer, or 48.5% of the principal amount of
Notes tendered in the offer.
The total purchase price of the Notes was US$250 million,
including US$20 million in premiums. Holders whose Notes were
accepted for purchase were also paid accrued and unpaid interest
on their purchased Notes up to, but not including the payment
date.
Banc of America Securities LLC and Citigroup Global Markets,
Inc. served as dealer managers and solicitation agents in
connection with the tender offer and consent solicitation.
About Tenneco Inc.
Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket. Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products. The company has operations in
Argentina, Japan, and Germany, with its European operations
headquartered in Brussels, Belgium. The company has
approximately 19,000 employees worldwide.
* * *
As reported in the Troubled Company Reporter on Sept. 26, 2007,
Fitch Ratings has placed Tenneco Inc.'s Issuer Default Ratings
and securities ratings on Rating Watch Negative. Fitch
confirmed these ratings: (i) IDR 'BB-'; (ii) Senior secured bank
facility 'BB+'; (iii) Senior secured notes 'BB'; and (iv)
Subordinated 'B'.
=========
K O R E A
=========
JINRO LTD: Parent Won't Sell Sales Unit in Japan
------------------------------------------------
Jinro Ltd.'s parent company, Hite Brewery Co., said it wont sell
Jinro's sales unit in Japan, Yonhap News reports.
According to the report, this company move is influenced by
Japan's liquor brand's public awareness.
Rumors have circulated that Hite might sell Jinro's unit in
Japan as it lost market share when Jinro was in a court
receivership before being bought by Hite, the report recounts.
With distilleries in Ichon, Cheongwon and Masan in South Korea,
Jinro Ltd. -- http://www.jinro.co.kr/english/main.asp/--
specializes in manufacturing soju, a vodka-like distilled
liquor. Jinro also produces and sells wine, whisky and ginseng
liquors as well as non-alcoholic beverages like mineral water
and soft drinks. In addition, the Company provides information
processing, financial services as well as construction services.
Before it was sold to Hite Brewery in 2005, Jinro was declared
bankrupt on September 9, 1997. The Company was delisted
effective Jan. 10, 2003.
According to the Financial Times, in spite of high expectations
of synergies from Hite's takeover of Jinro, the company is
facing severe competition in the Soju market. Jinro, market
share, the report says, has fallen from 55% in Feb. 2006 to 50%
at the end of June 2006.
The Financial Times related that analysts cautioned that the
acquisition of Jinro would lay a substantial financial burden on
Hite. Although Hite's operating profit was only 3% lower in the
first quarter of 2006 compared with a year ago, its profits
before tax were down 59%, largely due to Jinro.
HANARO: SK Telecom Denies Rumors of Possible Deal Nullification
--------------------------------------------------------------
SK Telecom Co. dismissed rumors that its recently announced deal
to takeover hanarotelecom Inc. could be nullified, saying the
company will push ahead with its plan to buy the company, Asia
Pulse reports.
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 4, 2007, SK Telecom agreed to buy hanarotelecom for
KRW1.09 trillion in cash, a near 50% premium on pre-acquisition
talks.
But later, Asia Pulse relates, Hanarotelecom denied SK Telecom's
announcement, saying that its largest shareholder said that "the
deal isn't signed at the moment."
The TCR-AP related that American International Group and
Newbridge Capital, a consortium that bought hanarotelecom shares
for US$500 million in 2003, is looking to sell its 40% stake.
SK Spokesperson Kim Hyun-young said "It is a fact that we have
signed the takeover contract with the consortium and will push
ahead with the process to get the needed approval from the
government," Asia Pulse says. "First of all, we plan to submit
the necessary documents to the Financial Supervisory Service
within this week for the planned acquisition of Hanarotelecom
shares," she added.
Asia Pulse points out that an official of Goldman Sachs, the
lead manager of the envisioned stake sale for hanarotelecom,
neither elaborated on the controversy nor confirmed the deal.
However, he told Asia Pulse on condition of anonymity that there
are some "procedural problems."
About hanarotelecom
hanarotelecom Inc. -- http://www.hanaro.com/-- is the second
largest player in the Korean local telephone market. It
provides high-speed Internet services in Korea. It provides
high-speed Internet services in Korea. In June 2001, the
company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables and Broadband
Wireless Local Loop into a single brand called HanaFOS.
hanarotelecom offers VoIP services to its broadband business
customers as a bundled service and also as a stand alone
service.
* * *
Moody's Investor Service has given hanarotelecom's long-term
corporate family and its senior unsecured debt 'Ba2' ratings.
Standard and Poor's gave both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit 'BB'
ratings.
MAGNACHIP: Claims Withdrawn on Contact Hole Process Patent
----------------------------------------------------------
The claims on the disputed contact hole process patent asserted
by MagnaChip Semiconductor have been completely withdrawn from
the company in Seoul High Court, Thomson Financial reports.
With the development, the report relates, MagnaChip's patent
infringement claims on the contact hole process patent will no
longer be contested or remain an issue.
In February 2007, Pixelplus Co. Ltd obtained a completely
positive and affirmative ruling in the patent infringement
proceedings from the Seoul Central District Court on the
disputed color filter and contact hole process patents claimed
by MagnaChip, Reuters recounts.
In March 2007, Reuters adds, MagnaChip filed an appeal with the
Seoul High Court to reverse this earlier ruling issued by the
District Court.
About Pixelplus Co., Ltd.
Pixelplus is a South Korea-based developer of high-performance,
high-resolution, and cost-effective CMOS image sensors for use
primarily in mobilecamera phones. In addition to mobile phones,
Pixelplus provides CMOS imagesensors and SoC solutions for use
in webcams and notebook embedded cameras,toys and games, and
security and surveillance system applications.
As a fabless semiconductor company, Pixelplus is focused on
creatingproprietary design technologies to develop CMOS image
sensors with sharp,colorful and enhanced image quality, size
efficiency, and low powerconsumption.
About MagnaChip Semiconductor
Based in Korea, MagnaChip Semiconductor --
http://www.magnachip.com/-- designs, develops, and manufactures
mixed-signal and digital multimedia semiconductors addressing
the convergence of consumer electronics and communications
devices. MagnaChip also provides wafer foundry services
utilizing CMOS high voltage, embedded memory, and analog and
power process technologies for the manufacture of IC's for
customer-owned designs. MagnaChip has world-class manufacturing
capabilities and an extensive portfolio of approximately 8,500
registered and pending patents. As a result, MagnaChip is a
valued partner in providing leading technology solutions to its
customers worldwide.
* * *
The Troubled Company Reporter-Asia Pacific reported on Oct. 10,
2007, that Moody's Investors Service confirmed the B2 corporate
family rating of MagnaChip Semiconductor LLC. At the same time,
Moody's confirmed the ratings of the debt issued by MagnaChip
Semiconductor Finance Co and MagnaChip Semiconductor S.A.,
including:
1) B1 rating of the US$100 million five-year senior secured
credit revolver
2) B2 rating of the US$500 million aggregate floating and
fixed-rate second-priority senior secured notes due 2011
3) Caa1 rating of the US$250 million senior subordinated notes
due 2014
On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating on MagnaChip to 'B' from 'B+'. At the
same time, S&P lowered the rating on MagnaChip's senior
unsecured debt to 'B' from 'B+' and rating on its senior
subordinated notes due 2014 to 'CCC+' from 'B-'.
MAGNACHIP SEMICONDUCTOR: Enters Power Management Segment
--------------------------------------------------------
MagnaChip Semiconductor Ltd has begun marketing a new line of
power management solutions. The company's initial power
management products include MOSFETs, DC-DC converters and linear
regulators. These initial products are designed for
applications such as mobile phones and LCD televisions and allow
electronics manufacturers to achieve specific design goals of
high efficiency and low standby power consumption.
For mobile device applications, MagnaChip's product design is
focused on improving battery life. For LCD televisions, the
company has focused its product design on controlling and
reducing standby power consumption. The company believes that
its power management solutions will enable customers to increase
system stability and reduce heat dissipation and energy use,
resulting in cost savings for our customers and consumers, as
well as environmental benefits.
MagnaChip's move into power management products is part of an
overall strategy to leverage its leading analog and mixed-
signal technology platform and systems level expertise to extend
its product and service offerings within its target end markets.
MagnaChip's power management solutions will utilize the
company's extensive patent portfolio, process technologies, and
analog and mixed-signal technology platform to expand its market
opportunity and meet more of its customers' needs.
About MagnaChip Semiconductor
Based in Korea, MagnaChip Semiconductor --
http://www.magnachip.com/-- designs, develops, and manufactures
mixed-signal and digital multimedia semiconductors addressing
the convergence of consumer electronics and communications
devices. MagnaChip also provides wafer foundry services
utilizing CMOS high voltage, embedded memory, and analog and
power process technologies for the manufacture of IC's for
customer-owned designs. MagnaChip has world-class manufacturing
capabilities and an extensive portfolio of approximately 8,500
registered and pending patents. As a result, MagnaChip is a
valued partner in providing leading technology solutions to its
customers worldwide.
* * *
The Troubled Company Reporter-Asia Pacific reported on Oct. 10,
2007, that Moody's Investors Service confirmed the B2 corporate
family rating of MagnaChip Semiconductor LLC. At the same time,
Moody's confirmed the ratings of the debt issued by MagnaChip
Semiconductor Finance Co and MagnaChip Semiconductor S.A.,
including:
1) B1 rating of the US$100 million five-year senior secured
credit revolver
2) B2 rating of the US$500 million aggregate floating and
fixed-rate second-priority senior secured notes due 2011
3) Caa1 rating of the US$250 million senior subordinated notes
due 2014
On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating on MagnaChip to 'B' from 'B+'. At the
same time, S&P lowered the rating on MagnaChip's senior
unsecured debt to 'B' from 'B+' and rating on its senior
subordinated notes due 2014 to 'CCC+' from 'B-'.
* Fitch Reports H107 Results and Outlook for Korea's Banks
----------------------------------------------------------
Fitch Ratings has just published a report on the H107 results
and outlook for Korea's banks. The report begins with a
discussion of the Korean banks' quite strong loans growth over
FY06 and H107, noting the fastest growing banks in this regard
and the fastest areas of growth (mortgages and SMEs). It then
comments on the banks' good current loans quality; at June 30,
2007, NPLs and precautionary loan ratios for the system stood at
just 0.8% and 1.2% respectively, with close to 200% reserves
coverage of NPLs. Going forward, loans quality should remain
satisfactory assuming economic growth in Korea remains broadly
positive, which in turn could be somewhat subject to
developments in the US economy.
As such, bank profitability should remain generally sound,
albeit constrained by notably narrower margins due to loans and
deposits competition (the latter from non-bank securities
companies providing wealth management products) - with fee
income and better efficiency for the banks compensating
somewhat; the banks' core RoAA is expected to come in at about
0.9% going forward versus around 1.1% over the past couple of
years.
Meanwhile, capitalization should remain solid (system-wide Tier
I and Total CARs of 9.4% and 12.9%, respectively, at 30Jun07)
with the regulator likely to curtail any efforts by the banks to
manage down capital, due say to profitability pressures.
The report also discusses the banks' exposure to US sub
prime/CDO securities (which is quite limited), as well as their
foreign currency borrowing/lending activities. In regards to
the latter, foreign currency borrowing by the banks
(particularly the foreign banks in Korea) has been substantial
over recent years, mainly due to strong demand from their
customers for foreign currency hedging facilities, and to a
lesser extent, foreign currency credit facilities. Such
borrowings by the banks, however, in the current global
environment of tightened liquidity and widening spreads, have
become more difficult and expensive to obtain, reducing the
ability of the banks to provide such facilities.
The report then goes on to comment on the competitive landscape
including the most major developments over recent times, such as
the Shinhan Group's acquisition of LG Card, HSBC's bid for Korea
Exchange Bank, strategy and ownership of the Woori group and
privatisation plans for Korea's policy and specialised banks.
The report concludes with comments on Korea's new Capital
Markets Law.
===============
M A L A Y S I A
===============
EKRAN BERHAD: Exempted by Bourse to Submit Regularization Plan
--------------------------------------------------------------
In an update to Ekran Berhad's plan to regularize its financial
condition pursuant to Practice Note 17/2005, the company
disclosed that is was exempted by the Bursa Malaysia Securities
Berhad to submit a Regularization Plan that falls with the ambit
of Section 32 of the Securities Commission Act 1993.
Bursa Securities’ decision is without prejudice to its right to
proceed to suspend the trading of the company's securities and
to commence de-listing procedures against it in the event that
certain conditions imposed by Bursa Securities are not fulfilled
by December 31, 2007.
Ekran Berhad is a Malaysian company engaged in investment
holding and the provision of management services to its
subsidiary companies. Through its subsidiaries, the company is
engaged in property development; the provision of property
management services; timber logging and saw milling; the sale of
timber products, and the operation of oil palm plantations. The
company's operations are mainly concentrated in Malaysia, China
and the Philippines.
Ekran has been classified as an affected listed issuer under
Amended Practice Note 17, when the auditors have expressed a
disclaimer opinion on the company's audited financial report for
the financial year ended June 30, 2005, and for defaulting on
various credit facilities.
FA PENINSULAR: Bursa to Delist Securities on December 13
--------------------------------------------------------
The Bursa Malaysia Securities Berhad will delist the securities
of FA Peninsular Bhd on December 13, 2007, after the company
failed to make the Requisite Announcement in relation to its
regularization plans by the November 30, 2007 deadline.
Upon the delisting, the company will continue to exist but as an
unlisted entity. The company will still continue its operations
and business and proceed with its corporate restructuring and
its shareholders can still be rewarded by the company’s
performance. However, the shareholders will be holding shares
which are no longer quoted and traded on Bursa Securities.
Headquartered in Kuala Lumpur, FA Peninsular's principal
activities are processing and trading cocoa. Other activity
includes stock and share-broking. Operations are carried out
mainly in Malaysia.
The company is currently listed under the Bursa Malaysia
Securities Bhd's Amended PN-17 category.
FCW HOLDINGS: Expects to Complete Corporate Exercises by Jan. 8
---------------------------------------------------------------
In relation to FCW Holdings Berhad's plan to regularize its
financial condition, the company is expecting to complete its
corporate exercises by January 8, 2008, which is the expected
date of admission of the new warrants to be issued under the
Rights Issue to the Official List of Bursa Malaysia Securities
Berhad, and the listing of and quotation for the new FCW shares
to be issued under the Rights Issue, New Warrants and adjusted
Warrants 2003/2013 on the Main Board of Bursa Securities.
The company also disclosed that its corporate exercises are
progressing as planned. Upon completion of its corporate
exercises, save for the acquisition of the Factory Block which
will be completed in year 2010, FCW will regularize its
financial condition and will no longer trigger any of the
criteria under the Amended PN17.
Headquartered in Selangor Darul Ehsan, Malaysia, FCW Holdings
Berhad is principally involved in investment holding, providing
management services and trading of telecommunications equipment.
Its other activities include renting of communication access,
selling and hiring of telecommunications equipment and
electronic goods, providing paging services and turnkey
contracting.
FCW Holdings is a Practice Note 17 company. It has been
incurring continuous losses since 1999. The Troubled Company
Reporter-Asia Pacific reported that for the quarter ended
March 31, 2006, the Company's accumulated losses has hit
MYR135,469,000, from MYR134,410,000 accumulated losses in
March 31, 2005. The Company is also facing possible delisting
by Bursa Malaysia Securities Berhad if it fails to submit a plan
to regularize its financial condition.
MANGIUM INDUSTRIES: In Midst of Finalizing Valuation Report
-----------------------------------------------------------
In compliance with Paragraph 3.1(b) of Practice Note No.
17/2005, Mangium Industries Bhd. disclosed that Ooi & Zaharin
Sdn Bhd, the company's Valuer, is in the midst of finalizing the
valuation report on SAFODA Bengkoka Project in Sabah. Upon
finalization, the company's adviser, Kenanga Investment Bank
Berhad will submit the company's Proposed Disposal of the entire
issued and paid-up share capital in Mangium Plantations Sdn Bhd
to Global Emerging Markets Forestry Investors LLC, to the
Securities Commission for approval.
Mangium has approximately three months to submit its
Regularization Plan to the relevant authorities for approval.
About Mangium Industries
Mangium Industries Berhad's principal activities are the
manufacture and trade of timber and timber related products.
Other activities include provision of printing services,
publisher, printer consultants and advertisers, trading of
alcoholic beverages, general trading of office furniture,
operation and development of the plantation and investment
holding. Operations of the Group are carried out in Malaysia.
The Troubled Company Reporter-Asia Pacific reported on May 25,
2007, that Mangium Industries, on May 22, became an affected
listed issuer pursuant to the provisions of Amended Practice
Note 17/2005, as its shareholders' equity on consolidated basis
is less than 25% of its issued and paid-up capital. As an
affected listed issuer, Mangium is required to formulate and
implement a plan to regularize its financial condition within a
timeframe stipulated by relevant authorities.
Mangium's balance sheet as of March 31, 2007, showed total
assets of MYR45.09 million and total liabilities of
MYR93.33 million. Shareholders' equity deficit totaled
MYR46.11 million.
MEGAN MEDIA: In Talks w/ Creditor Banks to Regularize Condition
---------------------------------------------------------------
Megan Media Holdings Berhad is still continuing discussions with
Creditor Banks to regularize its financial condition.
As reported by the Troubled Company Reporter-Asia Pacific on
Oct 3, 2007, Megan Media has forwarded a formal proposal to the
Creditors Steering Committee on a comprehensive debt
restructuring and regularization plan to resolve its financial
distress, including defaults on all its credit facilities
totaling MYR900 million in principal sums.
The company will announce the details to Bursa Securities only
upon the acceptance and finalization. Until a formal or
informal standstill agreement is reached, Creditor Banks reserve
their position to initiate legal action.
Megan Media has approximately three months to submit its
Regularization Plan to the relevant authorities for approval.
Megan Media Holdings Berhad' s principal activities are
manufacturing and trading data storage media products such as
Computer diskettes, video cassette tapes, compact disc
recordable (CD-R's) and digital versatile disc recordable (DVD-
R's). The Group operates in Malaysia, Singapore and other
countries.
The Troubled Company Reporter-Asia Pacific reported on June 11,
2007, that the Rating Agency Malaysia has downgraded the long-
term rating of Memory Tech Sdn Bhd's MYR320 million Bai Bithaman
Ajil Islamic Debt Securities (2005/2012) ("BaIDS"), from C3
(with a negative outlook) to D.
The BaIDS carries a corporate guarantee from MTSB's holding
company, Megan Media Holdings Berhad. Concurrently, RAM has
lifted the Rating Watch (with a negative outlook) that had been
placed on MTSB on May 9, 2007, following the failure of MTSB and
MJC (Singapore) Pte Ltd, another wholly owned subsidiary of
Megan Media, to repay their trade facilities amounting to
MYR47.36 million.
On June 19, 2007, the company was classified as a PN17 company,
and was given eight months to submit a substantive plan to
regularize its financial condition.
PANGLOBAL BHD: Incurs MYR20.2MM Net Loss in Qtr. Ended Sept. 30
---------------------------------------------------------------
Panglobal Berhad has incurred a net loss of MYR20.2 million for
the quarter ended September 30, 2007, an increase from the
MYR13.25-million net loss recorded for the same period n 2006.
Revenues for the third quarter totaled MYR36.25 million,
compared with the MYR47.56 million recorded in the third quarter
of 2006.
As of September 30, 2007, the company's balance sheet showed
MYR640.28 million in total assets and MYR1.15 billion in total
liabilities, resulting in a shareholders' equity deficit of
MYR509 million.
Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.
PanGlobal is listed under Practice Note 4/2001. The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating. The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005. On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme.
The company's balance sheet as of June 30, 2007, went upside
down with shareholders' deficit of MYR489 million, resulting
from total assets of MYR632.52 million, and total liabilities of
MYR1.12 billion.
SOLUTIA INC: Moody's Assigns B1 Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to a
proposed US$400 million, five-year, senior secured asset-based
credit facilities of Solutia Inc. Moody's also assigned a B1
rating to a proposed US$1,200 million, seven-year, secured term-
loan, a B2 rating to a proposed US$400 million 8-year senior
unsecured note, and a corporate family rating of B1. The ratings
outlook is stable. The ratings assigned are subject to a
complete review by Moody's of the final credit facility, term
loan and senior note documents and are also subject to the
transactions being closed in a manner and with terms that are
substantially identical to those that have been shared with
Moody's.
US$2.0 billion of proposed debt rated.
Assignments:
-- Corporate Family Rating, Assigned B1
-- Probability of Default Rating, Assigned B1
-- Speculative Grade Liquidity Rating, Assigned SGL-3
-- Senior Secured Bank Credit Facility, Assigned Ba1 (LGD2,
16%)
-- Senior Secured Bank Term Loan, Assigned B1 (LGD4, 54%)
-- Senior Unsecured Note, Assigned B2 (LGD4, 69%)
The B1 corporate family rating reflects the company's initially
high leverage and weak credit metrics along with the material
uncertainty surrounding its environmental remediation activities
upon exiting bankruptcy. An additional concern centers on the
high proportion of Solutia's revenue base that is concentrated
in low margin commodity businesses and a material percentage of
EBITDA that is derived from a single product with concentrated
customers.
Following the refinancing and exit from bankruptcy, Solutia will
be highly leveraged, particularly after adjusting debt for rent
and pensions, which adds some US$60 million and US$180 million,
respectively. Moody's projected coverage for fiscal year 2008,
as measured by EBITDA/Interest, is only 2.1 times while
projected leverage as measured by adjusted Debt/EBITDA is 5.2
times. In Moody's model, adjusted debt is slightly above
US$1,900 million at the end of December 2008. Pro forma
adjusted debt to book capital would be just above 62% at
Dec. 31, 2007. Moody's notes that even with fresh start
accounting, tangible net worth is likely to be negative.
While Moody's recognizes that good progress has been made in the
elimination, classification and/or sharing of environmental,
legal and pension liabilities, there remains a noteworthy level
of uncertainty as to the ultimate scope of these liabilities,
particularly the environmental liabilities. Moody's believes
that these environmental liabilities are subject to changing
governmental policy and regulations, discovery of unknown
conditions, judicial proceedings, method and extent of
remediation, existence of other potentially responsible parties
and future changes in both measurement and remediation
technologies.
Moody's also has some concerns over Solutia's business profile
as a high percentage of revenues, about 55%, are generated by
the relatively low margin (7%-8% EBITDA) integrated nylon
business, a sector that is going through a fair amount of
turmoil. Moody's also notes that a significant percentage of
pro forma 2007 EBITDA is derived from a single reasonably stable
product line, Crystex, that also has a high degree of customer
concentration with the bulk of EBITDA being derived from tire
manufacturers. Positive factors supporting the ratings include:
* strong geographic, product and operational diversity
* sizeable market leadership in the markets Solutia serves
* sizeable revenue base - projected to exceed US$3.5 billion
in 2007
* the reduction in pre-bankruptcy liability exposure in the
range of US$1.3 billion
* improvement in pro forma revenues and EBITDA over the last
four years excluding reorganization costs
* the ability to share on a 50/50 basis with Monsanto
environmental liabilities at certain sites if the costs
exceed US$325 million.
Moody's views management's track record and actions to
effectively cut costs and to improve Solutia's business profile
during the bankruptcy period as positive factors supporting the
ratings. Moody's also believes that the acquisition of Flexsys
was a logical and strong strategic fit for the company. Moody's
believes that a continued focus on efficiencies and maintaining
market share is critical to succeeding in the company's highly
competitive markets, which Moody's expects may face some pricing
pressures in the face of a potentially weaker global market,
particularly in the construction and automotive markets.
The Ba1 rating recognizes that the asset-based credit facilities
are secured by a first lien on inventory and receivables and a
second lien on assets securing the term loan. The B1 rating on
the term loan recognizes the high proportion of the term loan in
Solutia's capital structure and the limited security provided
the first lien on assets not securing the asset-based credit
facility and the second lien on inventories and receivables. In
Moody's opinion the collateral package for the term loan may not
adequately cover the loan in a default scenario. The B2 rating
on the unsecured notes reflects their junior position in the
capital structure and the prospect of limited protection after
the first and second lien lenders have been provided for in a
distressed scenario.
The speculative grade liquidity SGL-3 rating reflects the
company's adequate liquidity and Moody's expectation of
reasonable retained cash flow, in excess of US$150 million, for
the fiscal year ending 2008. The rating is supported by
Solutia's favorable debt maturity profile and flexibility under
the financial covenants for the company's asset backed credit
facility. A factor limiting the SGL rating is that the only
external source of liquidity is a US$400 million revolving
credit facility and Moody's anticipates that this facility will
initially be drawn to a degree in 2008. Revolver borrowings are
dictated by a borrowing base formula.
Solutia's stable outlook considers the strength of its franchise
in terms of its market positions and long-lived customer
relationships. If operating performance is weaker than
anticipated or material increases in environmental liabilities
were to occur, the outlook or rating could turn negative. To
the extent that the company reduces debt faster than expected,
such that debt/EBITDA metrics improve to less than 4.0 times on
a permanent basis or if environmental liabilities were deemed to
be much improved a positive change in outlook or rating could
occur.
About Solutia
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. The
company 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 listed US$2,854,000,000 in assets and
US$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.
* Malaysian Parliament Records 158,042 Bankruptcy Cases
-------------------------------------------------------
A total of 158,042 bankruptcy cases were registered at 21
Department of Insolvency branches in Malaysia from 2005 until
July 31, 2007, Bernama reports.
Deputy Minister in the Prime Minister's Department Datuk M.
Kayveas said out of the number, 6,813 cases were discharged
while 2,772 cases were canceled.
He said that this year, 7,814 new cases were registered until
July 31 while 2005 recorded 15,868 cases with 13,590 cases last
year.
====================
N E W Z E A L A N D
====================
AFS (2002): Court to Hear Wind-Up Petition on December 13
---------------------------------------------------------
The High Court of Auckland will hear on December 13, 2007, at
10:00 a.m., a petition to have AFS (2002) Ltd.'s operations
wound up.
The Commissioner of Inland Revenue filed the petition on
Aug. 21, 2007.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
BOOST SMP: Appoints Finnigan and Whittfield as Liquidators
----------------------------------------------------------
On November 9, 2007, the shareholders of Boost SMP Ltd appointed
Micaela Finnigan and John Trevor Whittfield as the company's
liquidators.
Creditors are required to file their proofs of debt by Dec. 21,
2007, to be included in the company's dividend distribution.
The Liquidators can be reached at:
Micaela Finnigan
John Trevor Whittfield
McDonald Vague
PO Box 6092, Auckland
New Zealand
Telephone:(09) 303 0506
Facsimile:(09) 303 0508
Web site: http://www.mvp.co.nz
CLEAR CHANNEL: Gets FCC Approval for US$1.3BB Sale to Newport TV
----------------------------------------------------------------
Clear Channel Communication Inc. received approval from the
Federal Communications Commission to sell 35 television stations
to Newport Television LLC, a private equity firm controlled by
Providence Equity Partners Inc., for US$1.3 billion, various
sources report.
In its order, the FCC denied a petition filed by Buckley
Broadcasting of Monterey, seeking reconsideration of the 2002
Commission decision granting applications to transfer control of
the Ackerley Group Inc. to Clear Channel.
However, the FCC approval comes with certain conditions that
must be met by Newport in six months, including divesting TV
stations in nine markets where it is in violation with FCC
ownership rules.
Companies must comply with the numerical ownership limits of the
FCC local television ownership rule. The nine market areas are
Bakersfield, San Francisco, Santa Barbara, Fresno and Monterey
in California; Salt Lake City; Albany, New York; Jacksonville,
Florida, and San Antonio, Texas.
Cross-ownership Rule Violation
Providence has defiled an FCC newspaper-broadcast station cross-
ownership rule in five markets because it owns interests in
Spanish language network Univision Communications Inc. and
Freedom Communications Holdings Inc.
On Oct. 31, 2007, Providence filed a request for more time, in
which it states that it "had intended to comply by way of
redemption of its attributable interest in Freedom," but that
"due to extraordinarily volatile conditions in the credit market
and newspaper industry in general," it has not been able to
obtain the necessary financing. Instead, it proposes to convert
its interest in Freedom into one that is not attributable under
the FCC's rules and, by doing so, come into compliance with the
rule.
About Clear Channel
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
* * *
As reported in the Troubled Company Reporter on Sept. 27, 2007,
Fitch Ratings said it expects to downgrade Clear Channel
Communications Inc.'s Issuer Default Rating to 'B' from 'BB-'.
The rating outlook is expected to be stable. Existing ratings
remain on rating watch negative pending the closing of the
merger transaction and review of final documentation.
FELTEX: CAFCA Questions SC Investigations & Ernst & Young Audit
---------------------------------------------------------------
Sue Newberry, a member of the New Zealand Institute of Chartered
Accountants, representing the Campaign Against Foreign Control
of Aotearoa, released an article asserting the need for the
Securities Commission to rei-investigate Feltex Carpets Ltd.
The collapse into receivership of Feltex Carpets continues to
produce waves of concern, Ms. Newberry said. Shareholders are
preparing a case against its directors; there has been another
Securities Commission investigation, and we have raised our
disquiet at the deals revealed by Overseas Investment Office
decisions when Feltex was broken up. Concerns are well merited.
The CAFCA article gathers evidence that the Securities
Commission has not adequately scrutinised the behaviour of
Feltex or its auditors; that Feltex was misleading in reporting
its financial situation to its current and prospective
shareholders at crucial times; and questions the quality of the
work of its auditor, Ernst and Young.
Recently, the Securities Commission released its report “Feltex
Carpets Limited – IPO (Initial Public Offer) Prospectus,
Financial Reporting and Continuous Disclosure” --
http://www.seccom.govt.nz/publications/documents/feltex/print.shtml
The Commission concluded in this report on Feltex that:
1. “the prospectus [of 2004] was not misleading in any
material particulars;
2. FTX failed to disclose certain material information to the
market concerning changes to its facility agreement with
ANZ in October 2005;
3. FTX failed to disclose the breach of its banking covenants
in its December 31st, 2005 half-year financial statements;
and
4. FTX did not properly classify its debt in its
December 31st, 2005 half-year financial statements”.
In other words, the 2004 prospectus was fine (point 1), but
subsequent events in 2005 were not (points 2-4). Even so, the
Securities Commission does not intend doing much about them.
Action on the market disclosure breaches would need to be action
against Feltex, but Feltex is in liquidation so there is nothing
to be done about that (points 2 and 3). The Commission intends
to act only on the financial reporting failure (point 4). It
will refer the matter to the registrar of companies to consider
action against Feltex's directors -- but not its auditors --
under the Financial Reporting Act. Auditors are not liable
under that act.
According to the Securities Commission, the work of Feltex's
auditor Ernst & Young on the December 2005 financial reports was
substandard. Further, the Securities Commission considered it
unacceptable that EY refused access to the audit working papers
for Feltex's Australian activities. The Securities Commission
will report these matters to the New Zealand Institute of
Chartered Accountants. As one commentator noted, this might
earn EY a slap on the wrist with a wet bus ticket. Indeed, the
Securities Commission itself recognises the NZICA “lacks the
crucial elements of perceived independence and objectivity.
The Securities Commission's report is unconvincing. Points 2,
3, and 4 in the Report relate to late 2005, when the terms of
the ANZ's banking arrangements with Feltex were renegotiated,
but Feltex did not disclose this to the public either in market
disclosures or in its financial reports. This change was
significant, because it allowed the “ANZ to call the debt
immediately due and payable with 30 days notice”. It meant that
Feltex's “financial stability depended upon the continued
support of ANZ”(para 90). This raises questions about Feltex's
solvency in 2005 just a year after the share float, and a year
before it fell. Although Feltex's liquidator intends to
prosecute the directors for reckless trading in 2005, it is
difficult to understand how the 2004 prospectus issued just a
year earlier, could be declared “not misleading”.
Feltex's share float in June 2004 raised more than NZ$250
million from mostly New Zealand investors, many of those
individual “mum and dad” retail investors. Retail investors are
at a disadvantage in any share float because the larger
institutional investors receive information additional to that
provided in the prospectus. Representatives of institutional
investment houses, for example, taken on a tour of Feltex's
Melbourne manufacturing plant, could see for themselves its
shabby condition. Institutional investors shunned Feltex's
share float, regarding it as a dud.
Shortcomings of Auditors &
Securities Commission
The prospectus, as required, advises those contemplating
investment to seek advice from their investment advisors. Many
small investors didn't need to do that though, because the
advisors came to them. The joint lead managers to the share
offer, First NZ Capital and Forsyth Barr Limited, earned
NZNZ$5.5 million from the share float in commissions and
incentive payments. The relative lack of information available
to the retail investors and the enthusiasm with which brokers
promoted the share float meant that, as one burnt retail
investor put it, “a whole bunch of suckers in New Zealand got
screwed”.
The Securities Commission has reported that Feltex's 2005
disclosures were seriously deficient, but the 2004 prospectus
was not materially misleading. It “reviewed the [historical]
financial statements in the prospectus. This review did not find
evidence of any breach of disclosure required under the
securities laws and financial reporting standards” (para, 65).
It also reported “there was no information available to the
directors at the time of the IPO to suggest that the directors
of FTX could or should have foreseen that the projections [in
the prospective financial information] would not be reasonable”
(para 69). I've reviewed the prospectus, Feltex's financial
statements from 2000 to 2005, and news reports from around the
time of Feltex's collapse and subsequently. I think the
Commission should revisit the matter.
All of the financial statements concerned, including those in
the prospectus, are audited. Two points should be made about
auditing before explaining why I think the prospectus is
misleading. First, when an auditor certifies financial
statements, that certification does not relate solely to
compliance with financial reporting standards, as the Securities
Commission suggests. A clean audit report typically states that
“the financial statements on pages _ to _ comply with generally
accepted accounting practice in New Zealand; and give a true and
fair view of the financial position of the company and group as
at [the date] and their financial performance and cash flows for
the [time period] ended on that date”.
Generally accepted accounting practice includes compliance with
financial reporting standards, but it involves more than that.
Financial reporting standards don't cover every possible
transaction or arrangement. GAAP requires application of
judgement and consideration of appropriateness of accounting
practices adopted. Strict compliance with financial reporting
standards does not necessarily result in financial reports
giving a true and fair view. Judgement is required to decide
whether the financial reports do give a true and fair view. If,
having complied with the financial reporting standards, the
financial statements do not give a true and fair view, then
additional information is required to ensure that they do. The
Commission appears to have a very narrow, legalistic view of
appropriate accounting. Although it does mention GAAP, it seems
focused predominantly on financial reporting standards, thus
overlooking both the broader GAAP requirements for financial
reporting and the true and fair view claims in an auditor's
certification.
The second point to think about with audited financial
statements is what auditors actually do. An embarrassing case
in the 1940s led to the United States Securities and Exchange
Commission instructing auditors that “facts should be confirmed
by physical inspection or independent confirmation”. This
instruction gave auditors “a forceful reminder that meticulous
figures need not match fact”. The Securities Commission's
report suggests EY may have forgotten that. The Commission
criticised EY for relying on information provided by Feltex
about its arrangements with the ANZ in 2005, instead of
verifying matters directly with the bank.
Having criticised EY for that failure to ensure the content of
the financial report matches fact in the 2005 financial reports,
the Securities Commission should consider the possibility that
this was not an isolated failure. And in relation to its own
review of Feltex's prospectus, did the Securities Commission
consider whether the financial information presented in the
prospectus accords with the facts? Maybe it has done this, but
the Securities Commission's report seems to be focused narrowly
on compliance with particular financial reporting standards.
Did the Commission consider whether the prospectus presented a
true and fair view? If not, how can the Commission claim the
prospectus was not materially misleading?
Background Information on Feltex
and Its Share Float
Information published around the time of Feltex's demise
contributes to an understanding of the environment in which
Feltex operated. Having been purchased in 1996 by Credit Suisse
First Boston Asian Merchant Partners, Feltex purchased Shaw
Industries, an Australian-based carpet manufacturer and
importer, in 2000. This purchase, for NZ$111.4 million, was
totally debt funded -- by the ANZ. The purchase “turned Feltex
from a New Zealand-based wool carpet producer to a firm making
75% of sales in Australia, with 60% in synthetic carpets,
competing against cheap Chinese imports”.
The Shaw Industries purchase was a disaster, Feltex's Australian
operations incurring losses each year. These losses were only
partly offset by Feltex's smaller but profitable operations in
New Zealand, and Feltex reported overall losses in both 2001 and
2002. Australia is committed to reducing tariffs on imported
carpet. Imports of synthetic carpets increased by 25% between
June 2002 and June 2003. Tariffs on imported carpets were
scheduled to drop a further five percentage points, from 15% to
10%, from January 2005; and, in 2004, Australia signed a free
trade agreement with the United States that would lower still
further barriers to imported carpets. Feltex's Australian sales
fell each year, at least partly because of heavy discounting in
that highly competitive market.
In 2003, Feltex issued a prospectus for NZ$60 million of secured
bonds, following which it “renegotiated its banking facilities
with the Australia and New Zealand Banking Group Limited”. In
other words, the money raised from the secured bonds was used to
repay some of Feltex's debt to the ANZ. According to Feltex,
the new financing structure provided “the Group with an improved
and stable funding position and significantly lowers the overall
cost of the Group's borrowings”. The bond issue also gave bond
holders preferential rights in a subsequent share float, thus,
according to one commentator, signalling “that Feltex was being
dressed up for sale”. This suggests the need for increased
scepticism about the financial statements to come.
Feltex's annual report for 2003 was reported as difficult to
understand because it showed falling sales and increased profit
(the 2002 financial report shows sales of NZ$312.6 million and a
loss of NZ$18.2 million; and the 2003 financial report shows
sales of NZ$303 million and a profit of NZ$6.8 million). Having
examined the 2003 report, I don't understand the turnaround
either. Feltex appears to have reduced its cost of sales by
about five percentage points. In an industry with such high
fixed costs, that this could be achieved in conjunction with
falling sales seems remarkable. According to Feltex, following
the acquisition of Shaw Industries, it had achieved cost
synergies and introduced lean manufacturing techniques,
repositioned its product mix towards higher value and higher
margin carpet, and expanded its relationships with key
customers. Maybe, but it is worth noting that the existence of
related party arrangements for the purchase and sale of
inventory, and for plant utilisation charges, provides scope for
creative transfer pricing arrangements. Did the Securities
Commission consider taking a closer look at Feltex's 2003
financial report? Figures from Feltex's 2003 financial report
are reproduced in the 2004 share float prospectus. If there is
doubt about that report, so too should there doubt about the
prospectus.
Just a year later, in May 2004, Feltex launched the Initial
Public Offer that would allow its shareholder, CSFBAMP, to sell
its shares and, at the same time allow Feltex to raise an
additional NZ$50 million with which it could redeem the bonds it
had issued in 2003. This too seems remarkable because the issue
of the bonds and their redemption just a year later cost Feltex
around NZ$10 million (approximately NZ$5 million bond issue
costs and another NZ$5 million of early redemption costs) on top
of the 10.25% interest rate paid on the bonds during the year.
That amounts to paying approximately NZ$16 million to borrow
NZ$60 million for just one year, and works out at an interest
rate of almost 27%. In contrast to Feltex's claim in 2003 that
the issue of the bonds reduced interest cost, the reality is
that the finance costs worked out to be very expensive. There
was no comment about this.
The bonds had been secured “by way of a second mortgage over
land and buildings of the Group and by fixed and floating
charges over the assets and undertakings of the Group”.
Following the share issue, Feltex again renegotiated its banking
facilities with the ANZ. This refinancing via the share issue
brought New Zealand's “mum and dad” investors in to carry the
risk of Feltex's demise and, presumably, allowed the ANZ to
strengthen its security. As Feltex's shareholders know to their
cost, shares are not secured.
This background information is relevant to the review of parts
of Feltex's prospectus. Three examples are sufficient to
illustrate my doubts about the Securities Commission's view that
the prospectus is not materially misleading. These examples
relate to the sales trajectory depicted in the prospectus and
the allegedly unforeseen drop in sales in 2005; the depiction in
the prospectus of Feltex's anticipated profitability for 2004
and 2005; and the reported value attributed to Feltex's
investment in Australia. Two of these examples also demonstrate
that, although the Securities Commission, in its review of the
prospectus, did not find evidence of any breach of disclosure
required under financial reporting standards, that does not mean
there were no breaches.
Feltex's Sales Trajectory
Feltex's 2004 prospectus shows historical information apparently
taken from the audited figures in its 2002 and 2003 annual
reports, plus further results for the six months ended
December 31st, 2003. Total sales for the 12 months ended June
2002 and June 2003 are shown in the prospectus as NZ$321,564,000
and NZ$313,412,000 respectively, whereas the total sales in the
actual reports published in 2002 and 2003 show sales figures of
NZ$312,645,000 and NZ$303,042,000 respectively. Further
analysis of these sales figures may be found in the notes to the
financial reports where the total sales are analysed by country.
There it becomes apparent that the differences relate
predominantly to the Australian sales which, between June 2002
and June 2003 the annual reports showed had reduced, whereas the
prospectus shows them increasing. The table below shows only a
part of the information presented in the notes. The full notes
reconcile to the total sales figures mentioned above.
The adjustments do not affect the reported profit figures (net
surplus [deficit]), which means an offsetting adjustment must
have been made to expenses. Even so, at the detail level, that
is, in the segment information, the adjusted figures in the
prospectus convert a falling Australian sales pattern into a
rising one, and help to support the notion that losses incurred
from the Australian operations are reversing.
The prospectus also forecasts results for 2004 and 2005, but it
does not give sufficient detail to identify projected sales
figures. For this reason, I've used the total operating revenue
figures in the table below. These figures include sales plus
other revenues but in the historical figures, those other
revenues are relatively minor.
The prospectus figures for 2004 and 2005 look heroic compared
with the figures published in the annual reports for 2002 and
2003. Even after the 2002 and 2003 figures have been adjusted
upwards for publication in the prospectus, they still look very
optimistic. The prospectus contains no explanation for the
upward adjustments made to the 2002 and 2003 figures.
It is not until after the share issue, when the financial
reports for 2004 were published that information is provided to
explain the upward changes in the sales figures. In that 2004
financial report, Feltex reported a change of accounting policy:
“To achieve consistency within the Group, the disclosure of the
sales amount has been amended to exclude claims and freight.
Previously the Australian sales amount was net of claims and
freight. These costs are now shown as part of cost of goods
sold”. Bearing in mind the heavy discounting reported in the
Australian market, and that these adjustments are mostly
confined to the Australian sales, it seems possible that the
“claims” mentioned represent discounts and, therefore, that the
Australian sales figures have been adjusted upwards so they are
reported as a before-discount amount.
Change of Accounting Policy:
Not Apparent, Incorrect & Misleading
This is not apparent in the prospectus, which says: “there have
been no changes in accounting policies. All policies have been
applied on bases consistent with those used in the prior year
being the year ended 30 June 2003”. This statement in the
prospectus is incorrect, and the effect is misleading,
especially because sales information is crucial. This failure
to disclose a change in accounting policy in the prospectus
breaches a financial reporting standard.
The adjustments to the Australian comparative sales figures are
small in percentage terms, so it could be argued that the
amounts are not material. The accountant's rule of thumb for
materiality in relation to sales is 5% and the difference in
June 2003 is 4.7%. If a legalistic interpretation is applied,
the amount of the change could be argued to be immaterial.
According to such an argument, neither Feltex's directors nor
its auditors should be criticised for failing to disclose the
change. B ut materiality also requires consideration of the
information itself and its likely effect on decisions. Surely,
the sales patterns projected are very important in a prospectus
for a share offer. The adjustments made reversed the direction
of the sales trajectory.
The glossy part of Feltex's prospectus supports the positive
trajectory shown in the detailed sales figures. Under the
headings of “competitive environment” and “industry conditions”
there is little to suggest the existence in Australia of the
market conditions outlined above. The forecasts and projections
assume that:
* there will be no changes in selling prices (this could
imply that reported sales show the sales prices);
* “no material changes in the competitive markets”;
* “no significant changes in the pricing policy of
competitors”;
* “no new entrants in the market”;
* “the revenue projection assumes that the market will grow
as described”; and that
* “Feltex will increase its market share by about 1% over
the projected period”.
The projected period was through to the end of the 2005
financial year. With further tariff reductions in Australia due
from Jan. 1, 2005, and the free trade agreement signed,
questions must arise as to how realistic those assumptions were.
A reader of Feltex's prospectus would find out about these
competitive conditions only by referring to the “What are my
risks?” section on pages 125-130 and reading it all. That
section notes that, “the floor coverings industry in both
Australia and New Zealand is highly competitive”. Under the
heading of “Imports” the reader learns that “the likelihood of a
change in the level of imports into Australasia is dependent on
a number of factors, including movements in tariffs, exchange
rates and the cost of production in exporting countries”. “In
Australia, tariffs are scheduled to decrease from 15% to 10% on
January 1st, 2005 and from 10% to 5% on January 1st, 2010. In
addition, the Australia US Free Trade Agreement will reduce
those tariffs by a further 2% for imported product from the
United States. A tariff reduction programme has also been
announced by the New Zealand government. Under that programme,
tariffs are expected to reduce from 17% to 15% in 2007, to 12.5%
in 2008 and to 10% in 2009”.
In the event, the total operating revenues for 2004 and 2005
were below Feltex's projections. 2004 was only slightly below,
which should not be surprising given that the financial year was
almost over when the prospectus was produced. According to the
directors, the “sudden” sales downturn that Feltex encountered
in early 2005 was a surprise. The total operating revenues
reported are shown below the figures shown in the prospectus:
The Securities Commission assessed the assumptions underlying
the prospective financial information Feltex supplied in the
prospectus and concluded: “there was no information available to
the directors at the time of the IPO to suggest that the
directors of [Feltex] could or should have foreseen the
projections would not be reasonable”. Feltex's Australian sales
had been falling but the undisclosed change in accounting policy
concealed those falling Australian sales and gave the impression
of increasing sales. Was this purely a coincidental oversight,
or did Feltex have something to hide by making that change? Why
was the change in accounting policy not disclosed? And, given
that EY earned NZ$1.471 million in fees for its clean report on
the prospectus, why was this undisclosed change from the 2002
and 2003 annual reports not picked up?
The Depiction in the Prospectus of
Feltex's Profitability for 2004 and 2005
In Feltex's prospectus, the consolidated statement of
prospective financial performance shows the forecast profit for
June 2004 and the projected surplus for June 2005. Financial
reporting standards specify the presentation of this report and,
in particular, specify what the bottom line must be. FRS-29
Prospective Financial Information requires presentation in the
same format as for other audited financial statements.
Reproduced below is Feltex's consolidated statement of
prospective financial performance, which has two “bottom lines”.
The first bottom line, “net surplus attributable to
shareholders” is the one that is required in financial reports.
The second bottom line, “net surplus attributable to
shareholders (before amortisation, write-offs and early
redemption amount)” is not allowed.
Note that the figures in the second bottom line (22,307 and
25,873) are larger than those in the first bottom line (10,113
and 23,889), and these are the ones the eye is drawn to. The
write-offs, which amount to almost NZ$10 million (341 + 4,881 +
5,014), relate to the cost of issuing the bonds in 2003 and the
additional payment required for early redemption. The second
bottom line seems designed to divert the reader's attention away
from their effect and to give the impression of greater
profitability. This is a blatant breach of a financial
reporting standard, and it is surprising that neither EY nor the
Securities Commission seems to have noticed it.
The Value of Feltex's Investment in Australia
The final point from this limited review relates to the value of
Feltex's investment in Australia as reported in the prospectus.
Feltex purchased Shaw Industries in May 2000, borrowing the full
purchase price of NZ$114,290,000 from the ANZ. This is what
loaded Feltex with debt and is a key contributor to its
downfall, especially because as already noted, this operation
was unprofitable. In exchange for the NZ$114,290,000 purchase
price, Feltex obtained control of net assets of NZ$71,432,000.
The difference between the purchase price and the net assets was
NZ$42,858,000, an amount that accountants like to call
“goodwill”. The logic behind this is that the value of the
whole firm is greater than the sum of its parts, and that
goodwill is a payment for the super-profits to be earned from
the acquisition. When the financial reports of the subsidiary
are combined with those of the purchaser, this goodwill shows up
as an asset in the consolidated financial report. Of course, it
is always possible that the amount paid is simply too much, in
which case the goodwill should not be shown as an asset at all.
It should be written off as an expense. Because Shaw Industries
incurred losses from the beginning, whether goodwill should have
been reported as an asset in the prospectus warrants further
consideration.
Under the financial reporting standards of the time, Feltex was
required to write off the goodwill as an expense gradually over
an appropriate period, the maximum time allowed being 20 years.
Feltex's financial reports show that Feltex was writing the
goodwill off over 20 years, thus implying that it was indeed
earning super-profits from its acquisition, and anticipated
earning those super-profits for the full 20 years. But Feltex's
acquisition had incurred losses from the start.
The prospectus shows Feltex's consolidated statement of
financial position for December 2003. In that, Feltex reported
goodwill at NZ$32,394,000. Given the losses incurred from Shaw
Industries, arguably this goodwill should not have been included
as an asset in the prospectus. Feltex continued to report
goodwill as an asset in 2005. In 2006, Feltex announced its
annual results but did not publish them. The announcement
stated that Feltex had written the goodwill down to zero.
Arguably, it should have done this several years previously and
certainly before issuing the prospectus. It is difficult to see
how reporting goodwill as an asset in relation to such a
subsidiary bears any resemblance to projecting a true and fair
view. While the practice adopted did not breach the financial
reporting standard of the time, it did not match the reality.
Once again, the US Securities and Exchange Commission's
important reminder of the late 1940s requires consideration.
The most meticulous figures might be consistent with financial
reporting standards, but that does not mean they match fact.
The true and fair view statement signed by the auditors means
the auditors certified that the figures did match the facts.
Clearly, Feltex directors considered what should be in the
financial reports shown in the prospectus, and some changes were
made. In addition to the undisclosed change of accounting
policy for reporting its sales, Feltex also for the first time
revalued its assets upwards by NZ$15.3 million. The “fair
value” basis used for the valuations was very likely based on
Feltex's projections of profits to be earned from those assets.
It is an irony that Feltex's collapse precipitated disposal of
those assets at “fire sale” prices, thus incurring significant
losses. The question of goodwill should also have arisen.
A Tangle of Conflicts of Interest
Enron and other companies in the scandalous collapses of 2001
and 2002, drew public attention to the tangle of conflicts of
interest among the financial market players. Closer scrutiny of
Feltex's share float reveals similar conflicts affecting
Feltex's auditors, its directors and management, the ANZ, and
the brokers who promoted the share float to small investors.
All of them stood to gain from releasing misleading financial
information.
Feltex's auditor, EY had a long a fruitful relationship with
Feltex. For all of Feltex's financial reports since 2000, EY
had issued clean audit reports. Part of an audit report must
state any other relationship the auditor has with the audited
company, and notes in the financial reports analyse the fees
paid to auditors for their audit and other services. The table
below shows the reported fees paid to Feltex's auditors and the
services to which those fees are related, and then shows EY's
audit fees as a percentage of total fees paid.
Over the six years shown above, EY's audit fees averaged only
about 30% of the total fees paid to EY for services to Feltex.
In 2004, EY's fees for other services provided to Feltex were
six times the size of the audit fees (NZ$2,027,000/290,000).
And yet in the 2004 Annual Report, EY's statement in its audit
report of its relationship with Feltex said: “Other than in its
capacity as auditor, we have no relationship with or any
interest in the company or any of its subsidiaries”. That
statement is inconsistent with the figures shown in the notes
and clearly does not match the facts. Who audits the auditor's
audit report?
Enron's collapse in 2001 highlighted concerns about auditors'
conflicts of interest when they provide other services to their
clients, especially when the revenues from those other services
are proportionately large. Perhaps some auditors actually do
manage to maintain independence of mind when auditing clients
who provide major fees from other services. But public
perceptions are important too, a point well known in the
auditing profession, and acknowledged by the Securities
Commission. The relative proportions of EY's audit and other
fees from Feltex look ugly.
In its report on Feltex, the Securities Commission criticised EY
for its substandard work in reviewing Feltex's financial report
for the half year ended December 31st, 2005. That audited
report neither disclosed Feltex's breach of its debt covenants
with the ANZ, nor reclassified Feltex's debt from long term to
current. Had these been done, Feltex's solvency would have been
in question almost a year before it collapsed. The auditor's
report said nothing. EY also signed off on Feltex's prospectus.
In clearing Feltex's 2004 prospectus as not materially
misleading and complying with all financial reporting standards,
the Securities Commission undermines its own credibility. To
what extent did the Securities Commission consider whether the
report had any basis in fact? Did the Securities Commission not
notice the breaches of financial reporting standards? And what
grounds does the Securities Commission have for assuming EY's
2005 audit was the only substandard one?
EY has refused to provide the Securities Commission access to
the Australian audit working papers, a move the Securities
Commission has criticised as unacceptable. This obstructiveness
by EY seems little different from that of auditor Arthur
Andersen * in 2001 when it shredded documents relating to Enron.
The Securities Commission's response of reporting EY to the
NZICA is weak. Arthur Andersen was the accountancy
transnational that collapsed as a result of Enron's 2001
collapse. It was in it up to its eyeballs. For a succinct
account of the rise and fall of the US corporate criminal that
was Enron, see Jeremy Agar's review of the excellent
documentary, “Enron: The Smartest Guys In the Room” in Watchdog
111, April 2006, which can be read online at
http://www.converge.org.nz/watchdog/11/10.htm
The Feltex Debacle is a Disgrace
Feltex's directors and management gained personally from the
2004 share float. The higher the share issue price, the more
the directors and management stood to gain. Tim Saunders, Sam
Magill, Peter Thomas, Michael Feeney, Craig Horrocks and David
Hunter “realised combined profits in excess of NZ$14 million
from the IPO”. As already noted, brokers, led by First NZ
Capital and Forsyth Barr took NZ$5.5 million in fees from off
loading the share issue largely onto small investors. In
addition, the ANZ's actions, evidently looking after its own
interests at the expense of shareholders, and resistance to
investigation makes it a deserving winner of the New Zealand
Shareholders' Association's annual Golden Glob award. All of
these parties seem to have taken advantage of the small
shareholders' relative information disadvantage and their
susceptibility to the advice of incentivised investment
advisors. The Feltex debacle is a disgrace, exposing a tangle
of conflicts of interests. The Securities Commission's weak
response does nothing to rebuild confidence in New Zealand's
financial market.
About Feltex Carpets
Headquartered in Auckland, New Zealand, and established over 50
years ago, Feltex Carpets Limited -- http://www.feltex.com/--
has built a reputation for being one of the world's leading
manufacturers of superior-quality carpet. The Feltex operation
includes a wool scouring plant, six spinning mills, three tufted
carpet mills, a woven carpet mill and offices in New Zealand,
Australia and the United States. The company also leads the way
in exports, with customers throughout South East Asia, Japan,
the United States, the Middle East and other key world markets.
NZ Bank placed the company in receivership on Sept. 22, 2006,
and named Colin Nicol, Peter Anderson and Kerryn Downey,
of McGrathNicol+Partners, as receivers and managers.
The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst
acquired Feltex as a going concern, including its assets and
undertakings in New Zealand, Australia, and the United States.
Proceeds of the sale will be used to ease the company's NZ$128-
million debt to ANZ Bank.
On Dec. 13, 2006, the High Court in Auckland ruled in favor of
an application by the Shareholders Association against Feltex
Carpets putting the carpet maker into liquidation. John
Vague was appointed as liquidator.
JPM MANGERE: Subject to CIR's Wind-Up Petition
----------------------------------------------
On September 5, 2007, the Commissioner of Inland Revenue filed a
petition to have JPM Mangere Ltd.'s operations wound up.
The petition will be heard before the High Court of Auckland on
Jan 31, 2007, at 10:45 a.m.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
LIFT TRANZ: Court to Hear Wind-Up Petition on February 8
--------------------------------------------------------
The High Court of Auckland will hear on February 8, 2008, at
10:45 a.m., a petition to have Lift Tranz Ltd.'s operations
wound up.
The petition was filed by the Commissioner of Inland Revenue on
September 26, 2007.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
NZ BUSINESS: Wind-Up Petition Hearing Set for February 21
---------------------------------------------------------
A petition to have NZ Business Products (1992) Ltd.'s operations
wound up will be heard before the High Court of Auckland on
February 21, 2008, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition on
September 5, 2007.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
RESIDENTIAL MORTGAGES: Court Hears Wind-Up Petition
---------------------------------------------------
The High Court of Auckland heard on December 6, 2007, a petition
to have Residential Mortgages Ltd.'s operations wound up.
Fairfax Auckland Group filed the petition on August 2, 2007.
Fairfax Auckland's solicitor is:
Dianne S. Lester
Credit Consultants Debt Services NZ Limited
Level 3, 3-9 Church Street
PO Box 213, Wellington
New Zealand
Telephone:(04) 470 5972
RODNEY ELECTRICAL: Faces CIR's Wind-Up Petition
-----------------------------------------------
The Commissioner of Inland Revenue, on August 14, 2007, filed a
petition to have Rodney Electrical (1990) Ltd.'s operations
wound up.
The High Court at Auckland will hear the petition on January 31,
2008, at 10:00 a.m.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
SHOW-OFF NEW ZEALAND: Faces CIR's Wind-Up Petition
--------------------------------------------------
On August 21, 2007, the Commissioner of Inland Revenue filed a
petition to have Show-Off New Zealand Ltd.'s operations wound
up.
The petition was heard before the High Court of Auckland on
December 6, 2007.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
T K LOGGING: Subject to CIR's Wind-Up Petition
----------------------------------------------
The Commissioner of Inland Revenue, on Sept. 7, 2007, filed a
petition to have T K Logging Ltd.'s operations wound up.
The petition will be heard before the High Court of Rotorua on
December 10, 2007, at 10:00 a.m.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
=================
S I N G A P O R E
=================
AAR CORP: Completes Acquisition of Summa Technology
---------------------------------------------------
AAR Corp has completed the acquisition of Summa Technology,
Inc., a provider of high-end sub-systems and precision
machining, fabrication, welding and engineering services. The
acquisition of Summa builds upon AAR's wide range of
capabilities and extends the company's portfolio of manufactured
products and engineering services.
"We are excited about this strategic combination, which further
strengthens AAR's competitive position in the market for
aerospace and defense products and services," said David P.
Storch, Chairman and Chief Executive Officer of AAR CORP.
"Summa joins us with a solid management team, excellent long-
term customer relationships and diverse manufacturing
capabilities that are well-aligned to growth opportunities in
our markets."
Summa participates in a variety of high-priority aerospace and
defense programs which include munitions supply, military and
business jets, tactical missile platforms, military vehicles and
space launch vehicles. Many of these programs, such as Joint
Strike Fighter, Expeditionary Fighting Vehicle and ARES Launch
Vehicle are very long-term programs.
Summa provides a growth platform for AAR's complex machining and
heavy fabrication business and will operate as a part of the
Company's Structures and Systems segment. The business will
continue to be led by its current Chief Operating Officer,
Stephen Werner.
About AAR Corp.
AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides
products and value-added services to the worldwide
aviation/aerospace industry. With facilities and sales
locations around the world, AAR uses its close-to-the-customer
business model to serve airline and defense customers through
Aviation Supply Chain; Maintenance, Repair and Overhaul;
Structures and Systems and Aircraft Sales and Leasing. In Asia
Pacific, the company has offices in Singapore, China, Japan and
Australia.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 18, 2006, Standard & Poor's Ratings Services upgraded AAR
Corp.'s corporate credit rating from 'BB-' to 'BB'. The outlook
is stable.
The TCR-AP also reported on Dec. 5, 2006, that Moody's upgraded
AAR's corporate family rating and senior notes to Ba3 from B1,
in response to improving financial performance resulting from
the strong commercial and defense aviation supply and repair
environment. The ratings outlook is stable.
CHEE TAT: Final Meeting Slated for December 31
----------------------------------------------
The members of Chee Tat Investments Pte Ltd will have a final
meeting on December 31, 2007, at 10:00 a.m., to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The meeting will be held at 1 Scotts Road #21-07/08/09, in Shaw
Centre, Singapore 228208.
Madam Chia Lay Beng is the company's liquidator.
EXCEL PRECISION: To Pay First Dividend on December 14
-----------------------------------------------------
Excel Precision (Singapore) Pte Ltd, which is in voluntary
liquidation, will pay its first dividend on December 14, 2007.
The company will pay an 8.6% dividend to its creditors.
The company's liquidators are:
Loke Poh Keun
Ewe Pang Kooi
c/o 8 Robinson Road
#08-00 ASO Building
Singapore 048544
HUP HIN: Creditors' Proofs of Debt Due on December 14
-----------------------------------------------------
Hup Hin Realty Pte ltd, which is in compulsory liquidation,
intends to pay dividend.
Creditors are required to file their proofs of debt by Dec. 14,
2007, to be included in the company's dividend distribution.
The company's liquidator is:
Timothy James Reid
c/o Ferrier Hodgson
8 Robinson Road
#12-00 ASO Building
Singapore 048544
SEMITECH ELECTRONICS: Will Hold General Meeting on December 28
--------------------------------------------------------------
Semitech Electronics Ltd will hold an extraordinary general
meeting on December 28, 2007, at 10:00 a.m., at the Gallery Room
of Paramount Hotel, Level 4, in 25 Marine Parade, Singapore
449536.
At the meeting, these resolutions will be passed:
* Approval of the proposed acquisition including the proposed
consideration shares issue and the proposed NRA capital
shares issue;
* Approval of the proposed Whitewash Resolution;
* Approval of the proposed Share Consolidation;
* Appointment of Dicky Suen Yiu Chung as a director;
* Appointment of Lau Hon Kit as a director;
* Appointment of Teo Chew Seng @ Peter Chang as a director;
* Appointment of Wong Shun Cheong as a director;
* Appointment of Kung Seah Lim as a director;
* Appointment of Lim Chee San as a director;
* Approval of the Proposed Disposal;
* Approval of a general mandate for the issue of Consolidated
Shares
* Approval of the proposed payment of directors’ fees of
SGD133,000 for the financial year ending Dec. 31, 2007; and
* Approval of the proposed change of name of the company to
“Sky One Holdings Limited”.
Headquartered in Singapore, Semitech Electronics Ltd. is
principally engaged in contract equipment manufacturing, trading
and distribution of equipment and providing after sales services
for voice and data communication products. Some of its wholly
owned subsidiaries include SEM Manufacturing Pte Ltd, Semitech
Electronics (Wuxi) Co. Ltd, Semitech Enterprise Pte Ltd and
Semitech Manufacturing Sdn Bhd.
Semitech has incurred SGD0.16 million, SGD2.37 million,
SGD5.1 million, and SGD6.5 million net losses since FY2003
through FY2006.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker ($MM) ($MM)
------- ------ ------ ------------
AUSTRALIA
Advance Healthcare Group Ltd AHG 15.65 -6.78
Austar United Communications
Limited AUN 411.16 -43.72
Emperor Mines Limited EMP 138.99 -50.63
Hutchison Telecommunications
(Aust) Ltd. HTA 1637.04 -1443.69
Intellect Holdings Limited IHG 15.25 -10.88
KH Foods Ltd KHF 38.40 -6.79
Lafayette Mining Limited LAF 105.24 -190.86
Renison Consolidated Mines NL RSN 38.83 -3.94
RMG Ltd. RMG 22.33 -2.16
Tooth & Co. Ltd. TTH 99.25 -74.39
UnderCoverWear Limited UCW 28.92 -16.07
ViaGOLD Capital Limited VIA 15.49 -3.11
CHINA AND HONG KONG
Asia Telemedia Limited 376 16.97 -7.53
Baiyin Copper Commercial
Bldg (Group) Co 672 24.47 -2.40
Beiya Industrial (Group)
Co., Ltd 600705 462.13 -20.57
Brilliant Arts Multi-Media
Holding Ltd 8130 11.62 -2.32
Cangzhou Chemical Industrial
Co.Ltd 600722 496.98 -91.41
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
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
Ever Fortune Intl.
Hldgs. Limited 875 14.41 -4.03
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
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
Orient Power Holdings Ltd. 615 176.86 -64.20
Paladin Ltd. 495 167.43 -6.23
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 Shenxin Taifeng
Group Co., Ltd. 34 69.92 -53.39
Shijiazhuang Refining-Chemical
Co., Ltd 783 357.75 -84.57
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
Suncorp Tech Ltd. 1063 75.28 -5.03
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 81.41 -30.90
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
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
Dunlop India Ltd DNLP 52.75 -65.30
GKW Ltd. GKW 35.75 -13.52
Gujarat Sidhee Cement Ltd. GSCL 59.44 -0.66
Himachal Futuris HMFC 574.62 -38.68
HMT Limited HMT 316.41 -175.33
JCT Electronics Ltd. JCTE 117.60 -50.17
Jenson & Nic Ltd JN 14.81 -81.79
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
Modi Rubber Ltd NMDR 62.67 -9.22
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
Parekh Platinum PKPL 59.20 -75.23
Rollataners Ltd RLT 20.68 -3.88
RPG Cables Ltdd NRPG 51.43 -20.19
Saurashtra Cemen SRC 112.31 -4.57
Shree Rama Multi Tech Ltd. NSRMT 79.66 -7.83
Shyam Telecom NSHY 147.34 -22.80
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 657.28 -73.89
UB Engineeering UBE 47.78 -2.77
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 Tbk 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 -46.36
JAPAN
Banners Co., Ltd 3011 46.33 -14.11
C4 Technology, Inc 2355 33.71 -1.24
NIWS Co., HQ Ltd. 2731 541.08 -33.01
Orient Corporation 8585 37956.19 -1109.02
Tasco System Co., Ltd 2709 48.80 -13.52
Trustex Holdings, Inc. 9374 102.84 -7.81
KOREA
Cosmos PLC Co., Ltd 053170 19.31 -4.95
DaiShin Information &
Communication Co. 20180 740.50 -158.45
Dong Yang Gang 1780 108.79 -9.80
E-Rae Electronics Industry
Co., Ltd 45310 45.47 -10.37
E Star B Co., Ltd. 55250 186.00 -1.50
EG Semicon Co. Ltd. 38720 166.70 -12.34
Everex Inc 47600 35.66 -0.66
Hyundai IT Corp. 48410 137.08 -48.10
Inno Metal Izirobot Inc. 70080 28.56 -0.33
Oricom Inc. 10470 82.65 -40.04
Rocket Electric Co., Ltd. 420 77.37 -4.76
Seji Co., Ltd 53330 37.25 -0.31
Starmax Co., Ltd 17050 76.61 -1.50
Tong Yang Magic Co., Ltd. 23020 355.15 -25.77
Unick Corporation 11320 36.54 -4.45
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
Lityan Holdings Berhad LIT 18.84 -23.22
Mangium Industries Bhd MANG 14.24 -12.15
Megan Media Holdings Berhad MMHB 47.76 -232.89
MP Technology Resources Berhad MPT 16.89 -16.29
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
Sino Hua-An International Bhd HUAAN 184.60 -98.30
Sycal Ventures Berhad SYC 58.76 -85.36
TAP Resources Bhd TAP 13.05 -1.33
Techventure Bhd TECH 36.31 -6.21
Tenggara Oil Bhd TENG 12.87 -0.34
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
Benguet Corp. BC 55.45 -44.94
Central Azucarera de Tarlac CAT 35.74 -1.80
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 18.68 -10.86
Mariwasa Manufacturing, Inc. MMI 71.98 -0.78
Prime Orion Philippines Inc. POPI 99.69 -82.12
Unioil Resources & Holdings
Company Inc. UNI 14.96 -11.44
United Paragon UPM 22.80 -29.23
Universal Rightfield Property UP 45.12 -13.48
Uniwide Holdings Inc. UW 62.99 -38.58
Victorias Milling Company Inc. VMC 151.59 -37.48
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
Lindeteves-Jacoberg Limited LJ 185.49 -46.43
Pacific Century Regional PAC 1569.35 -88.20
Semitech Electronics Ltd. SEMI 11.01 -0.23
TAIWAN
CIS Technology Inc. 2326 33.74 -18.91
Chung Shing Textile 1408 433.43 -100.26
Pacco Tech Co Ltd 5510 16.01 -7.00
Protop Technology Co., Ltd. 2410 55.69 -13.46
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
Universal Starch PCL USC 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, 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 ***