/raid1/www/Hosts/bankrupt/TCRAP_Public/071220.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
Thursday, December 20, 2007, Vol. 10, No. 252
Headlines
A U S T R A L I A
BOXALL PROPERTIES: Placed Under Voluntary Liquidation
C.F. & G.M.: Holds Final Meeting
CENTRO PROPERTIES: Will Not Pay Dividends for the H1 of FY07
CHRYSLER LLC: In Talks With Nissan on Bilateral Supply Deal
CONSTELLATION BRANDS: Closes Fortune Brands' Wine Business Sale
FINANCE RELATIONSHIP: Declares First Dividend
FINCORP GROUP: Founder Asserts AU$3 Million Claim
GRAHAM PROPERTIES: Members Receive Wind-Up Report
LAFAYETTE MINING: Goes Into Voluntary Administration
C H I N A , H O N G K O N G & T A I W A N
ASSOCIATION OF CERTIFIED: Commences Liquidation Proceedings
BEIHAIL GOLF: Liquidator to Present Wind-Up Report on Jan. 18
BEAUTY SQUARE: Appoints Chan Kin Hang Danvil as Liquidator
CHAROEN POKPHAND CATERING: Members to Receive Report on Jan. 18
CHAROEN POKPHAND INTERTRADE: Members' Final Meeting on Jan. 18
CHINA CHILDREN: Members' Final General Meeting Set for Jan. 15
CHINA EASTERN: Air China Not Keen on SIA-Temasek Deal
CITY LAND DEVELOPMENT: Liquidator to Present Report on Jan. 18
COASTAL GREENLAND: Moody's Affirms B1 Corporate Family Rating
DAEWOO DIGITAL: Members' General Meeting Set for Jan. 18
DANA CORP: Rhodes Wants Cape Girardeau Property Offer Considered
EPICOR SOFTWARE: Moody's Says NSB Buyout Won't Affect Rating
FIAT SPA: Names Luca De Meo as Alfa Romeo's Chief Executive
FIAT SPA: Extends Buy Back Program to April 30, 2008
FILMKO PICTURES: Members & Creditors' Meeting Set for Dec. 27
GOLD SPRING: Members to Receive Wind-Up Report on Jan. 18
GOOD VANTAGE: Members' Final General Meeting Set for Jan. 15
HENTON ENTERPRISES: Commences Liquidation Proceedings
HUNTER PENCIL: Creditors' Meeting Set for January 18
HYUNDAI DIGITAL: Members' Final General Meeting Set for Jan. 18
K SOLUTIONS: Members' Final General Meeting Set for Jan. 14
LOYAL BUSINESS: Members & Creditors' Meeting Set for Jan. 15
MERRY VIEW: Proofs of Debt Due by January 14
NHJ (HK) Limited: Members & Creditors' Meeting Set for Jan. 3
PENAR LIMITED: Members' Final General Meeting Set for Jan. 15
PETROLEOS DE VENEZUELA: Makes Prepayment of Hamaca Project Debt
PLENTY POWER: Members' Final General Meeting Set for Jan. 15
RESOLUTIONS OF THE WORLD: Creditors Receive Wind-Up Report
SENIKU LIMITED: Commences Liquidation Proceedings
SCIENCE ESTHETIC: Proofs of Debt Due by December 29
STAR CRUISES: Moody's Continues to Review B1 Rating
STAR CRUISES: S&P Cuts Long-Term Corporate Credit Rating to B
I N D I A
DECCAN AVIATION: Accenture Recommends Kingfisher-Deccan Merger
GENERAL MOTORS: Commodity Costs Spark Price Increase on '08 Cars
GENERAL MOTORS: Begins 1st Phase of UAW Attrition Program
GENERAL MOTORS: Lays Off 800 Tonawanda Workers Before Schedule
GLOBAL BROADCAST: Consolidates w/ Hindi News Channel IBN-7
IFCI LTD: Board Rejects Sterlite-Morgan Stanley Consortium Offer
KINETIC ENGINEERING: To Raise INR100.01 Cr. for Expenses
NAVISTAR INT'L: Unit Names Steve Bruford as Vice President
NAVISTAR INT'L: Ratifies New Three-Year Contract w/ UAW Members
RPG LIFE: Bombay Court Approves Scheme of Arrangement
I N D O N E S I A
INDOSAT: Temasek Files Appeal Against Court Ruling
MEDCO ENERGI: Consortium Finishes Execution of Project Contracts
TELKOM INDONESIA: Unit to Buy 80% of Sigma Cipta
J A P A N
ALITALIA SPA: Air France Offers EUR750 Million Capital Injection
ALITALIA SPA: Outlines Criteria for Selecting Preferred Buyer
ALL NIPPON: Inks MOU with Nippon Express and Kintetsu World
CASTOR TRUST: S&P Assigns BB Rating on Class D Certificate
EBARA CORP: To Sue Former Vice-president Over Anomalous Deal
FORD MOTOR: Names J. Hinrichs as Global Manufacturing Vice Pres.
ICONIX BRAND: Completes US$60 Million Starter Brand Acquisition
INT'L RECTIFIER: Promotes Rick Sivan to Vice President for R&D
SPANSION INC: Amends Merger Agreement With Saifun Semiconductors
* Japan's Corporate Bankruptcies Increase 11.2% Year-on-Year
K O R E A
DAEWOO ELECTRONICS: Attracts 10 Foreign Bidders for Stake Sale
HANARO: SK Telecom Applies for Purchase Approval from Government
M A L A Y S I A
MERGE ENERGY: Earns MYR3.7 Mil. in Quarter Ended Oct. 31
INDUSTRIAS METALURGICAS: Will Upgrade Acaray II Plant
VERIFONE HOLDINGS: Purchases EFTPOS Services Business
N E W Z E A L A N D
CASA ROCA: Subject to CIR's Wind-Up Petition
CLEAR CHANNEL: Launches Tender Offer & Solicitation for Notes
CRAWLER TRACTOR: Wind-Up Petition Hearing Set for Feb. 5
G & H BUILDING: Court to Hear Wind-Up Petition on March 13
GOOD OLD BOY'S: Fixes Jan. 15 as Last Day to File Claims
M.J. WATSON: Names Rodewald & Neilson as Liquidators
PORIRUA MULTIPLEX: Appoints Shephard & Dunphy as Liquidators
PRACTIV (NZ): Faces CIR's Wind-Up Petition
VALENZIA LTD: Fixes February 29 as Last Day to File Claims
WEIGHT WATCHERS: Declares US$0.175 Per Share Quarterly Dividend
P H I L I P P I N E S
LAND O'LAKES: Posts US$2.8 Million Net Loss in 3rd Quarter 2007
FEDERAL-MOGUL: Plan's Effective Date Set for December 27
S I N G A P O R E
ADVANCED MICRO: Goodwill Recorded After ATI Buy Likely Impaired
SEA CONTAINERS: Posts US$19.4MM Net Loss in Month Ended Oct. 31
- - - - - - - -
=================
A U S T R A L I A
=================
BOXALL PROPERTIES: Placed Under Voluntary Liquidation
-----------------------------------------------------
During a general meeting held on October 31, 2007, members of
Boxall Properties Pty Ltd resolved to voluntarily wind up the
company's operations.
John Langford was appointed as liquidator.
The Liquidator can be reached at:
John Langford
Macquarie Accounting Pty Ltd
18 Elizabeth Street, Level 2
Hobart, Tasmania 7000
Australia
About Boxall Properties
Located at Lindisfarne, in Tasmania, Australia, Boxall
Properties Pty Ltd is an investor relation company.
C.F. & G.M.: Holds Final Meeting
--------------------------------
C.F. & G.M. Mildwaters Pty Ltd, which is in liquidation, held
their final meeting on December 12, 2007.
The company's liquidator is:
Shaun Boyle
summerscorporate
Next Building, Level 5
16 Milligan Street
Perth, Western Australia 6000
Australia
About C.F. & G.M.
Located at Waggrakine, in Western Australia, Australia, C.F. &
G.M. Mildwaters Pty Ltd is an investor relation company.
CENTRO PROPERTIES: Will Not Pay Dividends for the H1 of FY07
------------------------------------------------------------
Following the request from the Centro Properties Group for a
trading halt on Thursday, December 13, 2007, Centro has reviewed
its earnings projections and completed certain refinancing
arrangements.
Impact on Earnings
Increased costs associated with the extension of the debt
facilities and expected costs of the refinancing will have an
adverse effect on Centro’s earnings and forecast distributions.
In addition, restrictions imposed on Centro’s capital
expenditure under the terms of the financing extension will
restrict Centro from carrying out some of its growth plans in
the United States, which had been expected to generate higher
earnings.
As a result, Centro’s operating distributable profit per
security has been revised downward from 47.0 cents per security
to 40.6 cents per security. This represents a slight increase
of 2.1% on the FY07 DPS of 39.8 cents per security.
In addition, for prudence in the current circumstances and in
order to ensure the broadest possible range of long term
financing options, Centro will not pay a distribution for the
half year ending December 31, 2007.
A decision as to when distributions will be reinstated will be
made following the outcome of the strategic review.
Refinancing Update
Centro is continuing to negotiate the refinancing of
AU$1.3 billion in Centro maturing facilities, and has obtained
an interim extension until February 15, 2008, of all facilities
maturing prior to that date. In addition, U.S. joint venture
facilities have also been similarly extended.
Tightened credit conditions have, however, had the effect that
negotiation of a comprehensive refinancing package of these
short-term facilities has not yet occurred.
It has become clear that to secure longer term financing in the
current illiquid credit market, Centro will need to reduce its
gearing level significantly.
The funding extension will allow Centro’s Board and Management
to undertake a review of options available to secure the long
term capital structure of Centro and its managed funds and to
reduce the current gearing levels.
These options may include asset sales, joint ventures and equity
injections. A complete review of the overall structure of the
Group will also be undertaken. The restructure and refinancing
is forecast to incur a one off cost of AU$40 million. These
have been excluded from the FY08 forecast operating
distributable profit.
In the meantime, Centro’s AU$26.6 billion managed property
portfolio is performing well and in line with expectations,
reflective of the strong cashflows and defensive characteristics
of nondiscretionary food and convenience based retail property.
Brian Healey, Centro Chairman, said: "While all at Centro are
extremely disappointed not to declare a distribution for the
current period, we believe that over the medium to long term, it
is the correct decision to make in order to preserve value for
securityholders.
"Recent turbulence in international credit markets, in
particular in the US, has resulted in a tougher environment in
raising debt and refinancing existing debt facilities that are
maturing.
"In August, the Centro Board and management took the view that
the long-term refinancing of our debt obligations would be
available with attractive funding terms through the US CMBS
markets.
"We never expected nor could reasonably anticipate that the
sources of funding that have historically been available to us
and many other companies would shut for business.
"Even following the onset of turbulence in international credit
markets, we completed a US$300 million, 10 year CMBS issue was
completed on reasonable terms, reinforcing our confidence that
it would be more cost effective to wait for the debt markets to
settle.
"Up until late last week, we were of the view that our short
term debt obligations could be refinanced on a long term basis.
"While we understand the difficulty that this presents to our
securityholders, the underlying retail property assets and
performance of the business remains strong. The Board and
management are working hard to find an enduring solution to its
financing requirements and preserving value for
securityholders."
Property Portfolio Continues to Perform Strongly
Centro’s underlying business remains strong with its
AU$26.6 billion managed property portfolio performing well and
slightly above budget.
The Australian managed portfolio has occupancy levels in excess
of 99% and property income growth for FY08 is forecast to exceed
4%.
The US managed portfolio is performing in line with expectations
with results underpinned by the non-discretionary nature of
Centro’s shopping centers and the security of income from leases
to tenants such as Kroger, TJ Maxx and Wal-Mart.
About Centro Properties
Centro Properties Group -- http://www.centro.com.au/ -- is an
Australia-based company that comprises the operations of Centro
Property Trust (the Trust) and its entities, which are engaged
in property investment, property management, property
development and funds management. The Company operates in two
business segments: property ownership business and services
business. The Company derives income from retail property
rentals of shopping center space to retailers across Australasia
and the United States. It also derives income from its retail
property investments in listed and unlisted entities. Its
services business activities include incorporating funds
management, property management and development and leasing.
During the fiscal year ended June 30, 2007, the Company acquired
New Plan Excel Realty Trust (New Plan), Heritage Property
Investment Trust (Heritage) and Galileo Funds Management, as
well as assumed full ownership of its United States management
operations.
* * *
The Troubled Company Reporter-Asia Pacific reported on December
18, 2007, that Standard & Poor's Ratings Services lowered its
issuer credit, senior-unsecured debt and preferred stock ratings
to 'BB+' with negative implications.
CHRYSLER LLC: In Talks With Nissan on Bilateral Supply Deal
-----------------------------------------------------------
Chrysler LLC is discussing terms of a bilateral supply deal with
Nissan Motor Co., various reports say citing Japanese newspaper
Nikkei. Chrysler is keen on distributing Nissan's compact cars
and Nissan wants access to Chrysler's medium and large-sized
vehicles.
Reports relate that the carmakers are reportedly negotiating
prices and model types to be manufactured.
As reported in the Troubled Company Reporter on Dec. 4, 2007,
Chrysler LLC dealers delivered 161,088 new vehicles to U.S.
customers in November 2007, down 2% compared with a year ago.
Chrysler brand car sales were led by the Sebring Convertible,
which increased sales to 2,039 units compared with 195 units a
year ago, up 946%. Chrysler Town & Country sales rose 10% to
12,629 units versus November 2006 with 11,507 units.
High fuel prices impacted Jeep(R) brand results, down 2% versus
November of last year. Large SUVs saw the greatest impact with
Jeep(R) Commander down 45% at 4,391 units versus November 2006.
Dodge brand car sales increased 75% over last year by steady
sales of the Dodge Charger with 10,341 units delivered.
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 on Nov. 12, 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. The
outlook is negative.
CONSTELLATION BRANDS: Closes Fortune Brands' Wine Business Sale
---------------------------------------------------------------
Constellation Brands Inc. has completed the acquisition of the
Fortune Brands, Inc. United States wine portfolio for a purchase
price of US$885 million. Coupled with the sale earlier this
year of two wine brands to E. & J. Gallo Winery, Fortune Brands
has realized total consideration for its wine unit well in
excess of US$900 million.
"This acquisition is another significant step to expand our
excellent portfolio of fine wine in the fast-growing super-
premium and luxury segments of the U.S. market," stated
Constellation Brands president and chief executive officer, Rob
Sands. "We are pleased that we have been able to take advantage
of this opportunity to strengthen our position as the premium
wine leader in the U.S. marketplace and improve our ability to
meet wine trade-up consumer trends."
"The sale of our wine business will help us drive shareholder
value in a couple of meaningful ways," said Norm Wesley,
chairman and chief executive officer of Fortune Brands. "It
will help enhance the already high returns in our premium
spirits business, which is the segment that generates our
largest profit. Naturally, it will also increase our financial
flexibility to focus resources on value-creating opportunities."
The wine brands in the transaction with Constellation -- which
include Clos du Bois, Geyser Peak, Wild Horse, Buena Vista
Carneros and Gary Farrell -- had sales in 2006 of 2.6 million 9-
liter cases and revenues of US$214 million including excise
taxes. In addition to the wine brands, the transaction also
included the associated vineyards, winemaking assets and sales
organization. The previous transaction with Gallo included the
William Hill and Canyon Road wine brands and related assets.
In connection with this acquisition, the company financed the
transaction using net proceeds from its Dec. 5, 2007, sale of
US$500 million 8 3/8% Senior Notes due 2014 together with
borrowings under the revolving portion of the company's senior
credit facility. Constellation Brands is formulating an
integration plan for the acquired assets and will announce
details when the plan is finalized.
Fortune Brands was advised on the transaction by Citi and Credit
Suisse as financial advisors and Pillsbury Winthrop Shaw Pittman
as legal advisor.
About Fortune Brands
Headquartered in Deerfield, Illinois, Fortune Brands Inc. is a
leading consumer brands company with annual sales exceeding
US$8 billion. Its operating companies have premier brands and
leading market positions in spirits and wine, home and hardware
products, and golf equipment. Beam Global Spirits & Wine, Inc.
is the company's spirits and wine business. Major spirits
brands include Jim Beam and Maker's Mark bourbons, Sauza
tequila, Canadian Club whisky, Courvoisier cognac, DeKuyper
cordials, Starbucks(TM) liqueurs and Laphroaig single malt
Scotch. Home and hardware brands include Moen faucets,
Aristokraft, Omega, Diamond and Kitchen Craft cabinetry, Therma-
Tru door systems, Simonton windows, Master Lock padlocks and
Waterloo tool storage sold by units of Fortune Brands Home &
Hardware LLC. Acushnet Company's golf brands include Titleist,
Cobra and FootJoy. The company is traded on the New York Stock
Exchange under the ticker symbol FO and is included in the S&P
500 Index, the MSCI World Index and the Ocean Tomo 300(TM)
Patent Index.
About Constellation Brands
Headquartered in Fairport, New York, Constellation Brands Inc.
(NYSE:STZ) -- http://www.cbrands.com/-- is a producer and
marketer of beverage alcohol in the wine, spirits and imported
beer categories, with market presence in the U.S., Canada,
Chile, U.K., Australia and New Zealand. The company has more
than 250 brands in its portfolio, sales in 150 countries and
operates approximately 60 wineries, distilleries and
distribution facilities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2007, Fitch Ratings assigned a 'BB-' rating to a note
registered by Constellation Brands Inc. to fund the purchase
price of Beam Wine Estates Inc., a subsidiary of Fortune Brands
Inc: US$500 million 8.375% senior unsecured note due Dec. 15,
2014. Fitch said the rating outlook is negative.
FINANCE RELATIONSHIP: Declares First Dividend
---------------------------------------------
Finance Relationship Consultants Pty Ltd, which is in
liquidation, declared its first dividend on December 7, 2007.
Only creditors who were able to file their proofs of debt by
November 23, 2007, will be included in the company's dividend
distribution.
The company's liquidator is:
Kim Holbrook
Holbrook & Associates
Chartered Accountants
Level 2, 19 Pier Street
GPO Box M925
Perth, Western Australia 6001
Australia
About Finance Relationship
Finance Relationship Consultants Pty Ltd is a distributor of
durable goods. The company is located at Victoria Park, in
Western Australia, Australia.
FINCORP GROUP: Founder Asserts AU$3 Million Claim
-------------------------------------------------
Fincorp Group's dispute with its founder and owner Eric
Krecichwost over the return of up to AU$3 million in loans is
still ongoing, Danny John of The Sydney Morning Herald reports.
The Herald relates that Fincorp's former Chairman, Peter
Pengilley, disclosed during a liquidator's examination hearing
at the New South Wales Supreme Court that he was given the task
of getting back the money from Mr. Krecichwost, after former
Chief Executive Officer Craig Stubbs presented to him a
shareholder loan report some time in August and September last
year.
Mr. Pengilley, the report notes, disclosed during the hearing
that Mr. Stubbs' report detailed various Fincorp credits and
debits covering loans made to and by Mr. Krecichwost but that
the conclusion was that he actually owed the group money.
Mr. Krecichwost, Fincorp's sole shareholder, did not respond to
Mr. Pengilley's telephone calls even though he was given 90 days
to pay up or face legal action, the Herald relates.
Mr. Pengilley related that just five weeks before Fincorp
collapsed, he had a "robust discussion" with Mr. Krecichwost
regarding pursuing the money, but Mr. Krecichwost continued to
argue that he was owed AU$3 million by Fincorp -- a claim which
appeared to be substantiated by the company's 2005 accounts, the
newspaper reported.
About Fincorp
Fincorp Group -- http://www.fincorp.com.au/-- in its current
structure was established in July 2005. The company is a
boutique funds management and property development business that
focuses on mortgage-backed and property products. It is based
in Grosvenor Place, Sydney, with around 40 employees across New
South Wales, Victoria, and Queensland.
Two companies with the Fincorp Group (Fincorp Financial Services
Limited and Fincorp Managed Investments Limited) hold Australian
Financial Services Licenses and act as Responsible Entities
under the Corporations Act 2001. Fincorp and its Funds are
regulated by the Australian Securities and Investment
Commission.
* * *
On March 27, 2007, the Troubled Company Reporter-Asia Pacific
reported that Fincorp Group went into administration with
AU$290 million in debt, of which AU$200 million were owed to
investors and AU$90 million to external financiers.
David Winterbottom was appointed as administrator together with
Mark Korda and Lachlan McIntosh, partners at corporate recovery
firm KordaMentha.
Fincorp Group has reportedly been struggling under heavy inter-
company debt loads and negative cashflow, the TCR-AP cited a
report from The Australian, published on March 26, 2007.
GRAHAM PROPERTIES: Members Receive Wind-Up Report
-------------------------------------------------
Members of Graham Properties Pty Ltd met on December 17, 2007,
and received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
A. A. Gaffney
c/o RSM Bird Cameron
Chartered Accountants
8 St George's Terrace
Perth, Western Australia 6000
Australia
Telephone:(08) 9261 9100
About Graham Properties
Located at Mandurah, in Western Australia, Australia, Graham
Properties Pty Ltd is an investor relation company.
LAFAYETTE MINING: Goes Into Voluntary Administration
----------------------------------------------------
The Board of Directors of Lafayette Mining Limited appointed
Messrs. Rod Sutton and Peter McCluskey of Ferrier Hodgson as
joint and several Administrators of the Company pursuant to
section 436A of the Corporations Act 2001.
The Administrators will immediately take control of the
Company’s business, property and affairs.
The Company has been working for several months with key
stakeholders to restructure and recapitalize the Company, which
has a 74% interest in Rapu-Rapu Processing, Inc., located in the
Philippines.
On October 4, 2007, non-binding term sheets were executed by the
Company and the banks with a Special Purpose Vehicle (SPV) owned
by a prospective Cornerstone Investor and the South East Asian
Strategic Asset Fund (SEASAF). These term sheets outlined the
basis of a series of transactions, which could have
recapitalized and restructured the Company. As part of these
arrangements, a binding Option Deed was executed by the banks
and the SPV under which the SPV was granted the right, but not
the obligation, to purchase the bank debt exposure at a price,
which represented a discount to the face value of the debt. For
a variety of reasons, the SPV elected not to exercise the
option, which expired on November 30, 2007.
Since that date, the Company and the banks have received a
further proposal from SEASAF and a new group of financial
investors. This proposal was similar in structure to the
proposal announced on October 4, 2007, and since the date of its
receipt it has been the subject of review by the banks. As time
has elapsed, the level of certainty that the series of
agreements between the prospective investors, the banks and
Lafayette (and other project and Company stakeholders), that are
needed to ensure that Lafayette could continue to meet its
obligations as an when they fell due, has diminished to a level
that the Board of Directors of Lafayette no longer considers
that they have reasonable grounds to continue to hold this view.
The Administration process will allow all options for either the
sale of the operations or a restructure and recapitalization of
the Lafayette group to be fully explored.
It is expected that further details of the Administration
process will be announced to the ASX by the Administrators in
the near future.
About Lafayette
Lafayette Mining Philippines, Incorporated, is a subsidiary
ofAustralian firm Lafayette Mining, Incorporated --
http://www.lafayettemining.com/-- which has been listed on the
Australian Stock Exchange since August 1997. Lafayette
Philippines is currently developing a polymetallic project
involving copper, gold, zinc and silver on the Island of Rapu-
Rapu in the Philippines.
TCR-AP's "Large Companies with Insolvent Balance Sheets" column
on December 14, 2007, reflected Lafayette Mining Limited as
having US$190.86 million equity deficit, on total assets of
US$105.24 million.
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C H I N A , H O N G K O N G & T A I W A N
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ASSOCIATION OF CERTIFIED: Commences Liquidation Proceedings
----------------------------------------------------------
Association of Certified Fraud Examiners, Hong Kong Chapter
Limited commenced liquidation proceedings on November 29, 2007.
BEIHAIL GOLF: Liquidator to Present Wind-Up Report on Jan. 18
-------------------------------------------------------------
Members of Behai Golf Club (HK) Company Limited will have their
final general meeting on January 18, 2008, at 9:20 a. m., to
hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central Hong Kong
BEAUTY SQUARE: Appoints Chan Kin Hang Danvil as Liquidator
----------------------------------------------------------
Members of Beauty Square Limited appointed Chan Kin Hang Danvil
as the company's liquidator.
The Liquidator can be reached at:
Chan Kin Hang Danvil
Ginza Square, Room 2301, 23rd Floor
565-567 Nathan Road
Yaumatei, Kowloon
Hong Kong
CHAROEN POKPHAND CATERING: Members to Receive Report on Jan. 18
---------------------------------------------------------------
Members of Charoen Pokphand Catering Services Company Limited
will have their final general meeting on January 18, 2008, at
9:40 a. m., to hear the liquidator's report on the company's
wind-up proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central Hong Kong
CHAROEN POKPHAND INTERTRADE: Members' Final Meeting on Jan. 18
--------------------------------------------------------------
Members of Charoen Pokphand Intertrade Company Limited will have
their final general meeting on January 18, 2008, at 10:20 a. m.,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central Hong Kong
CHINA CHILDREN: Members' Final General Meeting Set for Jan. 15
--------------------------------------------------------------
Members of China Children and Teenagers (Hong Kong) Fund Limited
will meet on January 15, 2008, 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:
Winbase Centre, 20th Floor
208 Queen's Road
Central Hong Kong
CHINA EASTERN: Air China Not Keen on SIA-Temasek Deal
-----------------------------------------------------
China Eastern Airlines Corporation Ltd did not get the support
of shareholder Air China on the sale of a 24% stake in the
company to Singapore Airlines Ltd and Temasek Holdings, various
reports say.
SIA will buy 15.73%, while Temasek Holdings 8.27%, of China
Eastern's shares at HK$3.80 per share, paying a total of HK$7.16
billion.
Reuters, citing as source the Shanghai Securities News, related
that Air China did not express support for the deal during a
three-hour meeting on Wednesday with China Eastern executives.
According to Xinhua News, Air China's parent, China National
Aviation Holding Co, is to vote against the planned sale. Air
China's parent holds a 12.07% stake in China Eastern.
The news of non-support, however, is contrary to China Eastern's
statement that Air China is supportive of the deal.
“[T]he CEA management team has met with Air China's top
management in Hong Kong and Beijing, and the latter has
expressed understanding of and support to the deal,” China
Eastern said in a media release yesterday.
The shareholders will vote on the proposed stake sale at an
extraordinary general meeting on Jan. 8.
After a week's investor roadshow to Hong Kong, Singapore and
Beijing, China Eastern exudes confidence that it will win
shareholders' support at the meeting meeting where resolutions
will be passed to approve the strategic cooperation plan with
SIA and Temasek, the company said in the release.
According to China Eastern the deal has the Chinese government's
blessing as it will promote a healthy development of China's
aviation industry.
The release further quoted China Eastern Chairman Li Fenghua as
saying, "On our roadshow, investors started to realize why Air
China wouldn't, and couldn't, oppose our deal. We start to gain
more and more understanding and in fact, quite a few investors
have already indicated they would vote "for" at the forthcoming
EGM."
Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal
activity is operation of domestic and international commercial
air transportation. The Group also is involved in the common
aircraft industry. Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training. The fleet includes more than 60 large and medium size
airplanes, Airbus and Boeing mostly. Its operation centering
from Shanghai to the whole People's Republic of China and
linking to Asia, Europe, America and Australia.
On April 28, 2006, Fitch Ratings downgraded China Eastern's
foreign currency and local currency issuer default ratings to B+
from BB-. The outlook on the IDRs is stable.
Xinhua Far East China Ratings gave the company a BB+ issuer
credit rating.
CITY LAND DEVELOPMENT: Liquidator to Present Report on Jan. 18
--------------------------------------------------------------
Members of City Land Development Company Limited will have their
final general meeting on January 18, 2008, at 14:00 p.m. [sic.],
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central Hong Kong
COASTAL GREENLAND: Moody's Affirms B1 Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed Coastal Greenland
Limited's (CGL) B1 corporate family rating. At the same time,
Moody's has affirmed CGL's B2 senior unsecured bond rating.
These affirmations follow the successful closing of CGL's US$150
million bond issuance. Both ratings have had their provisional
status removed and their outlook is stable.
Coastal Greenland Limited is a Chinese property developer
focusing on medium to high-end market residential and commercial
property developments. It has an attributable land bank of 4.3
million sqm in six major economic areas in China. Founded in
1990, the company was listed on the Hong Kong stock exchange in
1997 and has a current market capitalization of around HK$4
billion.
DAEWOO DIGITAL: Members' General Meeting Set for Jan. 18
--------------------------------------------------------
Members of Daewoo Digital (Hong Kong) Limited will meet on
January 18, 2008, at 11:00 a. m., to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The meetign will be held at:
6307 Central Plaza
18 Harbour Road
Wanchai, Hong Kong
DANA CORP: Rhodes Wants Cape Girardeau Property Offer Considered
----------------------------------------------------------------
Rhodes Development Company, LLC is interested in purchasing the
Cape Girardeau property at a higher purchase price, and is
asking Dana Corp. and its debtor-affiliates to consider its
offer. Rhode says that is willing to participate in any
reasonable auction format established for the sale of the
Property.
As reported in the Troubled Company Reporter on Dec. 14, 2007,
the Debtors sought authority from the U.S. Bankruptcy Court
for the Southern District of New York the to sell a 15-acre
parcel of real estate and a 150,000 square-foot building located
at 2075 Corporate Circle in Cape Girardeau, Missouri, to
Schaefer's Power Panels, Inc., for US$2,841,750.
The Debtors currently use the property for manufacturing, and
they are in the process of closing the manufacturing operations,
Corinne Ball, Esq., at Jones Day, in New York related.
Request to Delay Sale Approval
Furthermore, Rhodes asks the Court to delay the approval of the
sale of the Property pending further discussions among the
interested parties.
In a separate filing, the Official Committee of Unsecured
Creditors asks the Debtors to immediately put in place auction
procedures for the sale of the Property to ensure that the
Property is sold at a maximum value.
About Dana
Headquartered in Toledo, Ohio, Dana Corporation --
http://www.dana.com/-- designs and manufactures products
for every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies. Dana employs 46,000 people in 28 countries.
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total
assets and US$7,551,000,000 in total debts resulting in a total
shareholders' deficit of US$673,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan. The
Court has set Dec. 10, 2007, to consider confirmation of the
Plan. (Dana Corporation Bankruptcy News, Issue No. 66;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
EPICOR SOFTWARE: Moody's Says NSB Buyout Won't Affect Rating
------------------------------------------------------------
Moody's Investors Service does not expect Epicor Software
Corporation's announced agreement to acquire NSB Retail Systems
PLC for approximately GBP160 million to impact the company's B1
corporate family rating or stable outlook.
As mentioned previously, the company's ratings reflect an
expectation of measured acquisition activity as the company
looks for opportunities to expand its market share within
specific industry verticals. Although the proposed NSB Retail
acquisition will increase debt levels, pro forma leverage is
expected to remain at or below 4.0. Additionally, the
combination of NSB Retail with Epicor's CRS retail product suite
is expected to enhance Epicor Software's retail ERP market
position. Moody's expects to analyze the company's new capital
structure and integration plans as details become available.
Headquartered in Irvine, California, Epicor Software Corporation
-- http://www.epicor.com/www/-- is a provider of enterprise
resource planning, customer relationship management, and supply
chain management software and solutions to mid-market companies
worldwide. Epicor Software has worldwide locations in China,
Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan,
Korea, Malaysia, Mexico, Singapore, Taiwan, and the United
Kingdom, among others.
FIAT SPA: Names Luca De Meo as Alfa Romeo's Chief Executive
-----------------------------------------------------------
Fiat S.p.A. disclosed that Luca De Meo took on the role as Alfa
Romeo Automobiles' CEO on Dec. 11, 2007, replacing Antonio
Baravalle, who left the group on his request.
Mr. De Meo will keep his current position as chief marketing
officer of the Fiat Group, with responsibility for all marketing
related activities across all Fiat Group Sectors, as well as his
post of CEO of Abarth.
Mr. De Meo's simultaneous commitment to the development of the
Alfa brand and to the promotion of marketing activities puts him
in an ideal position to follow one of the most important
projects of the brand, its return to the U.S. market.
Fiat Group thanked Antonio Baravalle for his precious
professional cooperation and his valuable contribution
throughout these years.
"The commitment, passion and determination with which Luca De
Meo faces great challenges is the best guarantee for Alfa
Romeo's relaunch plan and the development of marketing
activities across all Fiat Group brands. I thank Antonio
Baravalle, who always worked with intelligence and dedication,
and wish him all the best for his future activities," Sergio
Marchionne, Fiat Group CEO commented.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As of Dec. 10, 2007, Fiat S.p.A. carries Moody's long-term
corporate family rating of Ba1 and probability of default rating
of Ba1 with positive outlook.
The company also carries Standard & Poor's BB+ on long-term
foreign issuer credit rating, BB+ on long-term local issuer
credit rating, B on short-term foreign issuer and local issuer
credit ratings.
FIAT SPA: Extends Buy Back Program to April 30, 2008
----------------------------------------------------
Fiat S.p.A. decided to extend the buy back program from
Dec. 31, 2007, to April 30, 2008.
At a stockholders meeting on April 5, 2007, Fiat authorized the
purchase of treasury shares from the aggregate three classes of
stock, which shall not exceed in the aggregate 10% of the
capital stock and maximum amount of EUR1.4 billion. The
authorization will last 18 months from April 5, 2007, and will
therefore expire on Oct. 5, 2008.
The stockholders authorization does not compel Fiat to complete
the buy back up to the maximum EUR1.4 billion amount and
therefore the buy back may be executed in the whole or in part.
Additionally, pursuant to the applicable regulations which
require that any buy back program be announced to the market, on
April 5, 2007, after the stockholders' authorization, Fiat
disclosed the details of its buy back program, aimed at
servicing stock option plans and the investment of excess
liquidity, which would expire on Dec. 31, 2007.
As already stated, the company will execute share repurchases in
its total and complete discretion including the choice of
timing, quantum and share price levels. In so doing, the
company will be guided by the principle that it will only
repurchase its shares if such repurchase is value accretive to
the shareholders of Fiat, and subject to any negative
repercussions a given repurchase may have on its credit ratings.
The buy back will be carried out on the regulated markets as:
-- it will end on April 30, 2008, or once the maximum amount
of EUR1.4 billion or a number of shares equal to 10% of
the capital stock is reached;
-- the maximum purchase price will not exceed 10% of the
reference price reported on the stock exchange on the day
before the purchase is made; and
-- the maximum number of shares purchased daily will not
exceed 20% of the total daily trading volume for each
class of shares.
Should purchases be carried out, Fiat will maintain its daily
communication program to the market and competent authorities,
detailing the number of shares purchased, the average price, the
total number of purchased shares as of the date of the
communication and the total invested amount as of such date.
As of December 12, 2007 Fiat has repurchased 20.482 billion Fiat
ordinary shares for a total aggregate amount of EUR426 million.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term
corporate family rating of Ba1 and probability of default rating
of Ba1 with positive outlook.
The company also carries Standard & Poor's BB+ on long-term
foreign issuer credit rating, BB+ on long-term local issuer
credit rating, B on short-term foreign issuer and local issuer
credit ratings.
FILMKO PICTURES: Members & Creditors' Meeting Set for Dec. 27
-------------------------------------------------------------
Members and creditors of Filmko Pictures Limited will meet on
December 27, 2008, at 3:00 p. m., to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The meeting will be held at:
Ginza Square, Room 2301, 23rd Floor
565-567 Nathan Road
Kowloon, Hong Kong
The company's liquidator is:
Chan Kin Hang, Danvil
Ginza Square, Room 2301, 23rd Floor
565-567 Nathan Road, Yaumatei
Kowloon, Hong Kong
GOLD SPRING: Members to Receive Wind-Up Report on Jan. 18
---------------------------------------------------------
Members of Gold Spring Consultant & Management Limited will have
their final general meeting on January 18, 2008, at 15:20 p. m.,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
China Merchants Building, Room 804
152-155 Connaught Road
Central Hong Kong
GOOD VANTAGE: Members' Final General Meeting Set for Jan. 15
------------------------------------------------------------
Members of Good Vantage Limited will meet on January 15, 2008,
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
Dominion Centre, Room 1307-8
43-59 Queen's Road East
Wanchai, Hong Kong
HENTON ENTERPRISES: Commences Liquidation Proceedings
-----------------------------------------------------
Henton Enterprises Limited commenced liquidation proceedings on
December 3, 2007.
The company's liquidators are:
Ho Man Kit
Kong Sze Man
Unit 511, 5th Floor
Tower 1, Silvercord
No. 30 Canton Road
Tsimhatsui, Kowloon
Hong Kong
HUNTER PENCIL: Creditors' Meeting Set for January 18
----------------------------------------------------
Creditors of Hunter Pencil Case Manufactory Limited will meet on
January 18, 2008, at 3:00 p. m., to hear the liquidator's report
on the company's wind-up proceedings and property disposal.
The meeting will be held at:
Richmond Commercial Building, 8th Floor
109 Argyle Street
Mongkok, Kowloon
Hong Kong
HYUNDAI DIGITAL: Members' Final General Meeting Set for Jan. 18
---------------------------------------------------------------
Members of Hyundai Digital (HK) Limited will meet on
January 18, 2008, at 11:00 a. m., to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The meeting will be held at:
6307 Central Plaza
18 Harbour Road
Wanchai, Hong Kong
K SOLUTIONS: Members' Final General Meeting Set for Jan. 14
-----------------------------------------------------------
Members of K Solutions Limited will meet on January 14, 2008, at
2:00 p. m., to hear the liquidator's report on the company's
wind-up proceedings and property disposal.
The meeting will be held at:
Kiu Fu Commercial Building, Office B, 4th Floor
300 Lockhart Road
Wanchai, Hong Kong
LOYAL BUSINESS: Members & Creditors' Meeting Set for Jan. 15
------------------------------------------------------------
Members and creditors of Loyal Business Limited will meet on
January 15, 2008, at 6:00 p.m., to hear the liquidator's report
on the company's wind-up proceedings and property disposal.
The meeting will be held at:
Malaysia Building, Unit 30, 3rd Floor
50 Gloucester Road
Wanchai, Hong Kong
MERRY VIEW: Proofs of Debt Due by January 14
--------------------------------------------
Creditors of Merry View Investment Limited are required to file
their proofs of debt by January 14, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on December 4,
2007.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
Gloucester Tower, 8th Floor
The Landmark
15 Queen's Road
Central Hong Kong
NHJ (HK) Limited: Members & Creditors' Meeting Set for Jan. 3
-------------------------------------------------------------
Members and creditors of NHJ (HK) Limited will meet on Jan. 3,
2008, at 2:30 p. m., to hear the liquidator's report on the
company's wind-up proceedings and property disposal.
The meeting will be held at:
Gloucester Tower, 13th Floor
The Landmark
15 Queen's Road Central, Hong Kong
PENAR LIMITED: Members' Final General Meeting Set for Jan. 15
-------------------------------------------------------------
Members of Penar Limited will meet on January 15, 2008, at 11:00
a. m., to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The meeting will be held at:
The Center, 31st Floor
99 Queen's Road
Central Hong Kong
PETROLEOS DE VENEZUELA: Makes Prepayment of Hamaca Project Debt
---------------------------------------------------------------
Petroleos de Venezuela S.A. has prepaid in full on
Dec. 14, 2007, all of the outstanding senior indebtedness of the
Hamaca heavy oil project in the Faja region of Venezuela. A
final prepayment of principal in an aggregate amount of
approximately US$340 million, plus interest, was made on
December 14, after an initial prepayment of principal in an
aggregate amount of US$400 million, plus interest, was made on
Nov. 30, 2007.
Prepayments were made out of project funds by Corpoguanipa,
S.A., a wholly owned subsidiary of PDVSA, and Texaco Orinoco
Resources Company, a wholly owned subsidiary of Chevron
Corporation. The senior indebtedness consisted of a syndicated
bank credit facility, with BNP Paribas as administrative agent,
and a bank credit facility guaranteed by the Export-Import Bank
of the United States, with Barclays Bank as facility agent.
About PDVSA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
PLENTY POWER: Members' Final General Meeting Set for Jan. 15
------------------------------------------------------------
Members of Plenty Power Limited will meet on January 15, 2008,
at 11:00 a. m., to hear the liquidator's report on the company's
wind-up proceedings and property disposal.
The meeting will be held at:
Highgrade Building, Room 402
117 Chatman Road
Tsim Shat Sui, Kowloon
Hong Kong
RESOLUTIONS OF THE WORLD: Creditors Receive Wind-Up Report
----------------------------------------------------------
Creditors of Resolutions of the World Association for Chinese
Church Music Limited met on December 7, 2007, and heard the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Yeung Pak Lun David
Room 1701, 17th Floor
Shui On Centre
6-8 Harbour Road
Wanchai, Hong Kong
SENIKU LIMITED: Commences Liquidation Proceedings
-------------------------------------------------
Seniku Limited commenced liquidation proceedings on December 3,
2007.
The company's liquidators are:
Ho man Kit
Kong Sze Man, Simone
Unit 511, 5th Floor
Tower 1, Silvercord
No. 30 Canton Road
Tsimshatsui, Kowloon
Hong Kong
SCIENCE ESTHETIC: Proofs of Debt Due by December 29
---------------------------------------------------
Creditors of Science Esthetic Solutions Limited are required to
file proofs of debt by December 29, 2007, to be included in the
company's dividend distribution.
The company's liquidator is:
Sytske Helena Maria Teppema
Suite 1306, 13th Floor
ING Tower
308 Des Voeux Road
Central, Hong Kong
STAR CRUISES: Moody's Continues to Review B1 Rating
---------------------------------------------------
Moody's Investors Service said yesterday it will continue to
review the B1 corporate family rating of Star Cruises Limited
(SCL) with direction uncertain, pending the final closing of
Apollo Management LP's (Apollo) US$1 billion cash investment in
NCL Corporation Limited (NCL) for a 50% equity interest.
As part of the transaction, Apollo will name a majority of the
NCL board, while SCL, which will continue to own the remaining
50% of NCL, will retain certain consent rights.
The cash proceeds of the transaction will be used to repay NCL's
existing debt and fund upcoming new builds.
"Moody's will expect to confirm SCL's B1 corporate family rating
with a stable outlook upon completion of the transaction early
next year," says Kaven Tsang, Moody's lead analyst for SCL.
"The confirmation reflects SCL's improved key financial metrics
as a result of the pro-rata consolidation -- rather than full
consolidation -- of NCL and, at the same time, factors in the
implied support of its major shareholders, particularly Genting
Berhad (rated Baa1/Stable)," says Tsang.
In its assessment, Moody's -- on a pro-rata basis --
consolidates 50% of NCL into SCL's financial position, given the
lower equity interest but, at the same time, incorporates the
expectation that NCL will remain a key asset of the company.
SCL's projected adjusted debt/EBITDA of around 5.5-6.5x and
adjusted EBITDA interest coverage of around 2.5-3x are
comparable with mid-B rated companies.
The final B1 rating reflects Moody's view of ongoing support, if
necessary, for SCL from its shareholders, including Genting,
through Resort World Bhd, as the company remains strategically
important to the group.
Its diversification into gaming in Macau is consistent with the
business direction and strategy of the overall group. However,
Moody's considers that a one-notch uplift will be more
appropriate in view of the continuous reduction in Genting's
effective equity interest in SCL.
Star Cruises Limited, publicly listed in Hong Kong, is 19.3%
owned by Resorts World Bhd, which is, in turn, 49.2% owned by
Genting Berhad. SCL operates 21 ships with some 33,300 lower
berths under five brands: Star Cruises and Cruise Ferries, which
service Asia Pacific, and three brands under NCL.
STAR CRUISES: S&P Cuts Long-Term Corporate Credit Rating to B
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Hong Kong-based cruise operator Star
Cruises Ltd. to 'B' from 'BB-'. Standard & Poor's also lowered
its long-term corporate credit rating on U.S.-based cruise
operator NCL Corp. Ltd. (NCL) to 'B' from 'BB-', and its foreign
currency rating on NCL's senior unsecured debt of US$250 million
due 2014 to 'CCC+' from 'B'. All these ratings remain on
CreditWatch with negative implications.
"The downgrades reflect Standard & Poor's view that the economic
incentive of Malaysia's Genting Bhd. (BBB/Stable/--), to
continue supporting them financially is significantly reduced,"
said Standard & Poor's credit analyst Manuel Guerena. "Standard
& Poor's considers that both Star Cruises and NCL have more
financial flexibility than their financial figures suggest, and
that NCL's financial profile will benefit from the incoming
capitalization from Apollo Management L.P. However, these
factors only partially offset our perception of the decreased
potential support from Genting due to a change in its investment
priorities as a result of its interest in the Sentosa Integrated
Resort.
In August 2007, Star Cruises agreed to a US$1 billion equity
injection in NCL by Apollo Management in exchange for a 50%
equity interest, with these proceeds to be used to pay down
debt. Once the transaction materializes, NCL will cease to be
consolidated into Star Cruises and will be accounted for using
the equity method. Star Cruises and Apollo Management have also
agreed to evaluate the commercial viability of NCL's U.S.-flag
Hawaiian cruise operation (with three ships deployed) by no
later than Dec. 31, 2008.
Genting indirectly owns 19.6% of Star Cruises, while NCL is,
until the agreement with Apollo Management materializes, a
fully-owned subsidiary of Star Cruises. Star Cruises is the
third-largest cruise operator globally, with 22 ships and about
34,700 lower berths. For the nine months ended Sept. 30, 2007,
Star Cruises reported consolidated revenues of US$1.96 billion,
and a net loss of US$77 million. Of these 22 ships, NCL operates
15, with 29,000 lower berths. For the nine months ended Sept.
30, 2007, NCL had revenues of
US$1.72 billion and a net loss of US$94 million.
The ratings on Star Cruises and NCL will remain on CreditWatch
with negative implications due to the potential consequences of
the agreed, but not yet finalized, transaction with Apollo
Management. The CreditWatch also reflects these companies'
leveraged financial profiles, their vessels replacement needs,
and the strong pressure from competitors.
"These ratings are expected to be removed from CreditWatch after
the
materialization of Apollo Management's deal (and subsequent
capitalization of NCL and its deconsolidation from Star Cruises)
and Standard & Poor's further evaluation of each of these
companies' operating and financial evolution," Mr. Guerena
noted. "At that point, the ratings on Star Cruises are likely to
be affirmed with a stable outlook, while those on NCL are likely
to be affirmed with a negative outlook, due to the latter's
higher investment requirements."
=========
I N D I A
=========
DECCAN AVIATION: Accenture Recommends Kingfisher-Deccan Merger
--------------------------------------------------------------
Management consultancy firm Accenture, in a report, has
recommended the merger of Deccan Aviation Ltd with UB Group's
Kingfisher Airlines Ltd, India's The Economic Times reports,
citing “sources close to the development.”
As previously reported by the Troubled Company Reporter-Asia
Pacific, the consulting firm was tapped to find operational
synergies between the two airlines.
According to The Economic Times, Accenture recommended a merger
to fully exploit the two carriers' synergies. The board of UB
Group, which owns nearly 46% stake in Deccan, reportedly will be
naming a financial consultant to decide on the modalities of the
deal. The Times reports its sources discounted the possibility
of a reverse merger -- Kingfisher merging into Deccan -- because
of tax implications.
Accenture's report further proposed to spun off Deccan’s charter
division into a separate company, the news agency adds.
In a meeting yesterday, the UB Group board, after considering
the report, decided that Kingfisher will absorb Deccan,
Bloomberg News reports. The merged entity, 51% of which UB
holding will own after the merger, will be traded as Kingfisher
Airlines, Bloomberg says, citing Vijay Mallya, chairman of the
UB Group, as saying. Mr. Mallya told the news agency that the
stock-swap ratio of the merger, which combination is expected to
be completed by March 31, is to be decided after the valuation
is complete in four-five weeks.
Bangalore, India-based Deccan Aviation Limited --
http://www.deccanair.com/-- is a charter aviation company in
the private sector. Deccan Aviation provides company charters,
tourism, medical evacuation, off-shore logistics and a host of
other services.
In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the INR3.41-
billion loss incurred in FY 2006.
GENERAL MOTORS: Commodity Costs Spark Price Increase on '08 Cars
----------------------------------------------------------------
General Motors Corp. disclosed a price adjustment on most of its
2008 model year vehicles to partially recover increasing steel
and commodity costs. The price increases, averaging about 1.5%,
are effective with vehicles invoiced to dealers on and after
Dec. 19, 2007.
“This targeted price increase is designed to partially recover
ever-increasing commodity costs,” Mark LaNeve, GM North America
vice president, Vehicle Sales, Service and Marketing, said.
“While most cars and trucks in our portfolio will go up between
100 to 500 dollars, in hotly contested segments, many vehicles
such as the Saturn Aura four-cylinder and the all-new Malibu LS
will have no increase. With our award-winning designs and the
best warranty coverage of any full-line manufacturer, our 2008
vehicles remain the best value in the market place.”
Price increases will range from US$0 on the 2008 Chevrolet
Malibu LS to US$1,500 on the Cadillac XLR luxury sports coupe.
Importantly, this price increase will not affect vehicles
already in dealer inventory, which continue to be available to
customers until the end of the year during the GM Red Tag Event.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of US$39 billion
for the third quarter of 2007 related to establishing a
valuation allowance against its deferred tax assets (DTAs) in
the US, Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GENERAL MOTORS: Begins 1st Phase of UAW Attrition Program
---------------------------------------------------------
General Motors Corp. and the United Auto Workers union have
reached an agreement on the first phase of a comprehensive
special attrition program. The agreement is a key step in the
implementation of the 2007 GM-UAW national contract.
In the first phase, the attrition program will be offered to all
UAW-represented hourly employees working at GM’s Service Parts
and Operations facilities across the country. The program also
will be offered to hourly employees at GM’s metal stamping plant
in Pittsburgh, Pennsylvania, casting plant in Massena, New York
and to all hourly employees currently assigned to JOBS Banks in
Oklahoma City, Oklahoma, Linden, New Jersey and Rancho
Cucamonga, California.
Special attrition program details for UAW-represented hourly
employees who work in GM’s assembly, stamping, powertrain and
engineering facilities will follow in early 2008.
"We continue to work closely with our UAW partners to improve
our competitiveness in the currently challenging U.S. market
conditions, while also investing in future products and
technologies critical to support our leadership in fuel
economy," Rick Wagoner, GM Chairman and CEO, said. "This first
phase of a comprehensive attrition program, designed in
conformance with the 2007 UAW national labor agreement, provides
our employees with attractive options to consider."
The attrition program will include a combination of early
retirement incentives and other considerations similar to the
special attrition program that GM, the UAW and Delphi
implemented in 2006. Specific program details will be rolled
out to affected employees beginning in January 2008.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of US$39 billion
for the third quarter of 2007 related to establishing a
valuation allowance against its deferred tax assets (DTAs) in
the US, Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GENERAL MOTORS: Lays Off 800 Tonawanda Workers Before Schedule
--------------------------------------------------------------
The tentative displacement of 800 hourly production workers at
General Motors Corp.'s Powertrain engine plant in the town of
Tonawanda in New York, came a week before its scheduled
shuttering for the holidays from Dec. 22, 2007 to Jan. 2, 2008,
various reports say.
Papers say that GM spokeswoman Mary Anne Brown assured salaried
and skilled trade workers were not included in the lay-offs.
GM relates that low market demand for car parts is the cause of
the carmaker's streamlining action, reports disclose.
As reported in the Troubled Company Reporter on Dec. 7, 2007, to
avoid a deluge of inventory, GM will close three pickup truck
plants for two weeks in January. Aside from that, GM plants
will also be closed over the holiday. GM anticipates a
production of 950,000 vehicles from January through March, down
11% from the same period in 2007.
Analysts anticipate low annual sales in 2008, a drop in U.S.
light vehicle sales to 3% to 15.6 million units, a record low
since 1998.
Cash Incentives
GM is initiating a cash incentive program for pickups and sports
utility vehicles to increase sales, various papers relate.
The program offers US$1,000 cash on 2008 models of GMC Yukon,
Pontiac Torrent SUVs and Chevrolet Silverado pickups, Greg
Bensinger of Bloomberg News reports citing GM spokesman John
McDonald.
As reported in the Troubled Company Reporter on Dec. 4, 2007,
after three consecutive monthly increases, General Motors Corp.
dealers in the United States delivered 263,654 vehicles in
November, down 11% compared with a year ago, reflecting
continuing reductions in daily rental sales and softening
industry demand.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of US$39 billion
for the third quarter of 2007 related to establishing a
valuation allowance against its deferred tax assets (DTAs) in
the US, Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GLOBAL BROADCAST: Consolidates w/ Hindi News Channel IBN-7
----------------------------------------------------------
Global Broadcast News Ltd's board of directors, at a meeting
yesterday, approved the consolidation with 24-hour Hindi news
channel IBN-7 with the company pursuant to a Scheme of
Arrangement with BK Fincap Pvt Ltd and Jagran TV Pvt Ltd (the
owner and broadcaster of 24hrs Hindi news channel).
The company disclosed the complete consolidation of the IBN-7
Channel with the company. The Channel is currently housed in a
joint venture with Gupta family, the promoters of Dainik Jagran.
BMR Advisors acted as the transaction and financial advisors for
the consolidation, which is still subject to relevant regulatory
and stakeholder approvals.
Pursuant to the consolidation, 1,467,390 equity shares of INR10
each of the company (being 4.45% at the company's Capital on a
fully diluted basis after effect of the Scheme and the exercise
of 3,000,000 warrants by the promoters) will be issued to the
Gupta family in consideration of the consolidation. A further
1,793,478 equity shares of INR10 each of the company will be
held in a Trust -- which Trust will be capable of monetizing the
stake, for the benefit of the company's shareholders.
The board also gave its nod to the proposal to split the nominal
value of the equity share of the company from the present INR10
per share to INR2 per equity share, resulting in a 5 for 1 stock
split. The stock split will be subject to shareholders
approval, which will be sought through a postal ballot and will
then apply in respect of the shares to be issued on the
consolidation as well.
The company, currently listed on the Bombay Stock Exchange and
National Stock Exchange, owns and operates one of India's
leading 24-hour English language news and current affairs
channel, CNN IBN, and is a market leader in this category. The
Company is also entering the regional news space with the launch
of a Marathi news channel with Lolcniat Group. The
consolidation is part of the vision of the company to emerge as
an integrated player in the Indian General News Broadcasting
Segment having news and current affairs channels in various
languages.
Headquartered in New Delhi, Global Broadcast News Limited --
http://www.ibnlive.com/-- owns and operates a 24-hour English
language news and current affairs channel called CNN-IBN. CNN-
IBN was launched in December 2005. The Company has an agreement
with CNN for an exclusive, limited, non-transferable right to
use and reproduce, inter alia, the CNN name and principal logo.
It also has news services agreement with Turner for production
and broadcasting services. It is also part of the TV 18 group,
which owns and operates some business channels and Internet
portals.
The Troubled Company Reporter-Asia Pacific reported on Sept. 28,
2007, that Global Broadcast had a stockholders' deficit of
US$30.6 million.
IFCI LTD: Board Rejects Sterlite-Morgan Stanley Consortium Offer
---------------------------------------------------------------
IFCI Ltd's board of directors, at its recent meeting, rejected
the financial proposal submitted consortium of Sterlite
Industries and Morgan Stanley and Co. for the 26% stake in the
company, a filing with the Bombay Stock Exchange revealed.
According to the company, the consortium's offer was conditional
and the board unanimously decided that the conditional offer is
not acceptable.
The rejection came after news that the Sterlite-led consortium
has emerged as the front-runner to acquire 26% stake. The
Economic Times, citing unnamed sources close to the development,
previously reported that the consortium offered a INR107-per-
share minimum price at which institutional shareholders will
convert their debt into equity.
According to ET's sources, the Sterlite consortium was the only
bidder to be invited on Monday evening for discussions since the
bids made by the other two consortia have many conditions
attached.
The Troubled Company Reporter-Asia Pacific reported on Dec. 5,
2007, that four bidders for the stake, including the Sterlite-
Morgan Stanley consortium, have carried out due diligence. The
three other firms were:
-- WL Ross, US Capital Partners VI Fund, Standard Chartered
Bank and HDFC.
-- Cargill Financial Services Corporation and Texas Pacific
Group
-- Shinsei Bank Ltd, PNB and JC Flowers & Co.
From four, the number of bidders later narrowed down to three
after the consortium led by WL Ross opted out without submitting
a financial bid, ET relates.
IFCI Limited -- http://www.ifciltd.com/-- is established to
cater the long-term finance needs of the industrial sector. The
principal activities of IFCI include project finance, financial
services, non-project specific assistance and corporate advisory
services. Project finance involves providing credit and other
facilities to green-field industrial projects (including
infrastructure projects), as well as to brown-field projects.
Financial services covers a range of activities wherein
assistance is provided to existing concerns through various
schemes for the acquisition of assets, as part of their
expansion, diversification and modernization programs.
Non-project specific assistance is provided in the form of
corporate/short-term loans, working capital, bills discounting,
etc to meet expenditure, which is not specifically related to
any particular project. Its investment portfolio includes
equity shares, preference shares, security receipts and
government securities.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 3, 2007, India's Credit Analysis & Research Ltd. retained
a CARE D rating to IFCI's Long & Medium Term Debt aggregating
INR91.36 crore. The amount represents the outstanding non-
restructured amount under the Bonds series, which have been
rated by CARE.
Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating
at '4'. The outlook on the rating is stable.
KINETIC ENGINEERING: To Raise INR100.01 Cr. for Expenses
--------------------------------------------------------
Kinetic Engineering Ltd's board of directors has decided, at its
meeting on Dec. 18, 2007, to raise INR100.01 crore by issuing
convertible securities on preferential basis and/or convertible
securities in foreign currency, a filing with the Bombay Stock
Exchange discloses. According to the company, the funds will be
used to meet the company's requirement of funds for capital
expenditure and working capital.
Accordingly, the board has formed a committee of board members,
authorizing it to take all decisions regarding the plan. The
committee will schedule a general meeting of the company's
shareholders to seek their approval of the move.
Subject to obtaining approval from shareholders, the board
intends to issue Optionally Convertible Cumulative Preference
shares to M/S Micro Age Instrument Pvt Ltd on preferential basis
as per the SEBI Guideline for a value of INR13.50 crore.
Also during the Dec. 18 meeting, the board approved to extend
the company's current financial by an additional three months,
so as to end it on March 31, 2008. The board has deferred
considering a scheme of merger between the company and Jay Hind
Sciaky Ltd (JHS) for next board meeting.
India-based Kinetic Engineering Ltd. --
http://www.kineticindia.com/-- is an automobile manufacturer,
which specializes in two wheelers. The company has sold over 6
million vehicles in India. Kinetic has brought to India
technologies, such as four valve engines, electric start on
scooters and motorcycles, v-twin engines and upside down (USD)
forks. The company offers top-end bikes, such as Comet and
Aquila. It has a nationwide network of nearly 450 dealers and
over 1,000 service centers. Kinetic exports vehicles to the
United States, Canada, Latin America, Europe, Africa, Middle
East and South Asia.
For the 15 months ended Dec. 30, 2006, the company booked a net
loss of INR432.9 million. For the period Apr. 1, 2004, to
Sept. 30, 2005, the company incurred a net loss of
INR549.6 million.
NAVISTAR INT'L: Unit Names Steve Bruford as Vice President
----------------------------------------------------------
International Truck and Engine Corporation, a subsidiary of
Navistar International Corporation, has appointed Steve Bruford
as its vice president of global product creation for its truck
group.
Bruford will provide engineering and product development
leadership for all of Navistar's truck product lines and will
reside at Navistar's Truck Development and Technology Center in
Fort Wayne, Ind. He will report to Ramin Younessi, vice
president, business and product operations.
"Steve brings to our company a distinguished reputation in the
field of automotive and commercial vehicle engineering," said
Dee Kapur, president, Truck Group, International Truck and
Engine Corporation. "His extensive product development
knowledge and experience in global program management will help
us continue to develop great products for customers all over the
world."
With more than 29 years of global product development experience
in all fields of automotive engineering and commercial vehicle
design as well as the defense industry, Bruford has performed in
a number of executive level assignments prior to joining
Navistar. He has served in supplier roles as well as a
vertically integrated OEM and holds 19 design patents.
Bruford received his bachelor's degree in mechanical engineering
from Loughborough University in Loughborough, England. In
addition, he holds a master's in science from Hertfordshire
University in Hatfield, England.
About International Truck
A wholly owned subsidiary of Navistar International Corporation
(Other OTC: NAVZ), International Truck and Engine Corporation is
a leading producer of medium trucks, heavy trucks, severe
service vehicles, MaxxForce brand diesel engines, parts and
service. International and its affiliates sell their products,
parts and services through a network of nearly 1,000 dealer
outlets in the United States, Canada, Brazil and Mexico and from
more than 60 dealers in 90 countries throughout the world.
About Navistar International
Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp. The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market. The company
also provides truck and diesel engine parts and service sold
under the International brand. A wholly owned subsidiary offers
financing services. The company has operations in Brazil,
Iceland and India.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services said that its
'BB-' corporate credit ratings on North American truck and
diesel engine producer Navistar International Corp. and
subsidiary Navistar Financial Corp. remain on CreditWatch with
negative implications, where they were placed on Jan. 17, 2006.
NAVISTAR INT'L: Ratifies New Three-Year Contract w/ UAW Members
---------------------------------------------------------------
The seven-week strike against International Truck and Engine
Corporation, a subsidiary of Navistar International Corporation,
ended on Dec. 16, 2007, as members of the United Auto Workers
approved new three-year labor agreements that will yield
operational flexibility and cost improvements at nine company
locations.
The contract was ratified by a majority of UAW members in a vote
conducted this weekend. The new contracts take effect
immediately and run until Oct. 1, 2010.
"We expect the new agreements to result in operational and cost
improvements at these facilities while maintaining a good
quality of life for our employees and retirees," Dan Ustian,
chairman, president and chief executive officer of Navistar,
said. "This deal represents a positive step forward for these
facilities."
The agreements were ratified after more than two years of
periodic negotiations between company and UAW leaders. The UAW
chose to strike on Oct. 23, 2007, and the company utilized its
diversified operations and resources effectively so that
customers were unaffected by the UAW strike.
"With extraordinary efforts and planning, we met all delivery
schedules and as a result, we are well positioned as a business
going forward," Mr. Ustian said.
Navistar's preliminary unaudited manufacturing cash and
marketable securities balance as of Oct. 31, 2007 was US$695
million.
"We have maintained our focus on executing our business
strategies," Mr. Ustian said. "We have the liquidity and lines
of credit available to continue to fund our growth plans to
capitalize on market opportunities. The new contract will help
the company to reach its previously announced goals for 2009
revenues and operating segment margins."
Outstanding products and a competitive cost structure will be
the basis for Navistar's continued success, Mr. Ustian
continued. "All our operations must be structured to succeed
against any competitor and in any market condition. Our ability
to compete effectively is important to both our shareholders and
to our employees. True job security comes only through
competitiveness."
These summarizes some key competitive changes and provisions in
the new contracts:
* significant improvements in operational flexibility and
cost structure, while maintaining operational improvements
from prior contracts;
* elimination of restrictive and costly minimum employment
level requirements;
* increased health care cost sharing;
* ability to shed non-core work;
* improved new hire package;
* ability to close/sell specific locations if business needs
dictate; and
* "Living Operating Agreement" that facilitates ongoing
improvements.
In addition, the UAW has dropped all unfair labor practice
charges previously filed with the National Labor Relations
Board, which the UAW communicated were the basis of its strike.
The UAW represents approximately 3,700 employees at nine
International facilities in Indianapolis, Indiana (engine
assembly and foundry), Melrose Park, Illinois (engine assembly
and engine engineering), Springfield, Ohio (truck assembly),
Atlanta, York (Pennsylvania) and Dallas (parts distribution
centers) and Fort Wayne, Indiana (truck engineering). Total
worldwide employment at the company is more than 16,000.
About International Truck and Engine
International Truck and Engine Corporation, a wholly owned
subsidiary of Navistar International Corporation, produces
medium trucks, heavy trucks, severe service vehicles, MaxxForce
brand diesel engines, parts and service. International and its
affiliates sell their products, parts and services through a
network of nearly 1,000 dealer outlets in the United States,
Canada, Brazil and Mexico and from more than 60 dealers in 90
countries throughout the world.
About Navistar International
Headquartered in Warrenville, Illinois, Navistar International
Corporation (Other OTC: NAVZ) -- http://www.navistar.com/-- is
a holding company whose wholly owned subsidiaries produce
International(R) brand commercial trucks, MaxxForce brand diesel
engines, IC brand school and commercial buses, and Workhorse
brand chassis for motor homes and step vans. It also is a
private-label designer and manufacturer of diesel engines for
the pickup truck, van and SUV markets. The company also
provides truck and diesel engine parts and service. Another
wholly owned subsidiary offers financing services. The company
has operations in Brazil, Iceland and India.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services said that its
'BB-' corporate credit ratings on North American truck and
diesel engine producer Navistar International Corp. and
subsidiary Navistar Financial Corp. remain on CreditWatch with
negative implications, where they were placed on Jan. 17, 2006.
RPG LIFE: Bombay Court Approves Scheme of Arrangement
-----------------------------------------------------
The Bombay High Court has sanctioned the the Scheme of
Arrangement entered into among RPG Life Sciences Ltd, RPG
Pharmaceuticals Ltd, Instant holdings Ltd and Instant Trading
and Investment Company Ltd, the company informed the Bombay
Stock Exchange.
A copy of the order, however, is yet to be received, RPG Life
noted. The Scheme will took effect after the receipt of the
copy of the Bombay Court order.
The scheme, according to a TCR-Asia Pacific report on June 28,
2007, provides for these terms:
1. Sale of pharmaceuticals business to RPG Pharmaceuticals
for INR46 crore. This consideration will be discharged in
the form of equity shares of INR11,49,50,800 representing
1,43,68,850 equity shares of INR8 each fully paid-up at an
aggregate premium of INR34,50,49,200. The appointed date
for the same is April 2, 2007. The shares of RPG
Pharmaceuticals will be issued to the members of the
company in the ratio of 1:1.
2. Sale of investments of the company to Instant Holdings for
a consideration of INR53 crore. This consideration will
be discharged by Instant Holdings in the form of equity
shares of INR9,95,00,000 representing 99,50,000 equity
shares of INR10 each fully paid-up at an aggregate premium
of INR43,05,00,000. The appointed date for the same is
April 1, 2007. These shares will be issued to the
company.
3. Merger of Instant Trading with Instant Holdings.
Headquartered in Mumbai, India, RPG Life Sciences Ltd --
http://www.rpglifesciences.com/-- is a full spectrum, world
class, customer focused, innovative pharmaceutical organization.
Formerly known as Searle (India) Ltd., the company develops,
manufactures and markets, for national and international
markets, a broad range of branded formulations, generics and
bulk drugs developed through fermentation and chemical synthesis
routes.
On April 17, 2003, Credit Analysis and Research Limited
downgraded the rating of the outstanding NCD program of
INR145.5 million of RPG Life Sciences rating from CARE BBB to
CARE D. The downgrade is on account of a default in debt
servicing obligations towards institutional investors.
=================
I N D O N E S I A
=================
INDOSAT: Temasek Files Appeal Against Court Ruling
--------------------------------------------------
PT Indosat Tbk's shareholder, Singapore state investment arm
Temasek Holdings, filed an appeal against an Indonesian court
ruling that said it broke antitrust laws through stakes in the
country's two biggest mobile-phone operators, various reports
say.
An analyst at DBS Vickers Research Singapore told Bloomberg News
that Temasek will use the legal process to appeal the ruling and
the worst-case scenario is a tariff cut will be imposed on the
Indonesian mobile-phone companies.
According to Reuters, Temasek Managing Director of Corporate
Affairs Myrna Thomas said the appeal was filed with the District
Court of Central Jakarta and a ruling is expected within 30
days.
As reported by the Troubled Company Reporter-Asia pacific on
Nov. 23, 2007, Temasek Holdings was found guilty by the Business
Competition Monitoring Commission (KPPU) of violating
Indonesia's anti-monopoly laws. Temasek violated the country's
anti-monopoly laws through its ownership in PT Indosat Tbk and
PT Telekomunikasi Selular Indonesia.
The TCR-AP related that KPPU ruled that Temasek must sell its
minority stake in either Telekomunikasi Selular or Indosat.
Syamsul Maarif, KPPU commission assembly chairman, reportedly
said the shares must be sold within two years at the maximum
since the decision has legal grounds.
Bloomberg notes that Todung Mulya Lubis, the Jakarta-based
lawyer representing Temasek, said Indonesia's regulator has "no
legal authority" to order the divestment of the stakes.
KPPU also ruled that Temasek's units should also pay IDR25
billion in fines. Furthermore, Mr. Maarif said Temasek should
also let go of the voting rights and the right to install a
commissioner director in one of the companies to be released.
Temasek told Agence France-Presse that it is not guilty of
breaking anti-monopoly laws and vowed to fight the KPPU ruling.
Furthermore, Kevin Lim of Reuters writes that Temasek disputed
the findings, noting its indirect stake in Telkomsel is smaller
than the Indonesian government's.
Ms. Thomas was quoted by AFP as saying, "The case against
Temasek is baseless and totally without merit. We are filing an
appeal to demonstrate that there is no basis for the KPPU
decision and to ensure that Temasek's legal rights under the
laws of Indonesia are respected at all times."
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company provides international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter-Asia Pacific reported on
June 19, 2007, that Moody's Investors Service affirmed PT
Indosat Tbk's Ba1 local currency issuer rating and has also
changed the outlook to stable. At the same time, Moody's
affirmed Indosat's Ba3 senior unsecured foreign currency rating.
The rating outlook on the bond remains positive which is in line
with the outlook on Indonesia's foreign currency country
ceiling.
A TCR-AP report on June 7, 2006, stated that Fitch Ratings
affirmed PT Indosat Tbk's long-term foreign and local currency
Issuer Default Ratings at 'BB-'. The outlook on the ratings is
stable.
MEDCO ENERGI: Consortium Finishes Execution of Project Contracts
----------------------------------------------------------------
The Medco-Ormat-Itochu Consortium, which consists of Medco
Energi Internasional Tbk; Ormat International Inc., a subsidiary
of Ormat Technologies, Inc.; and the Itochu Corporation,
completed the execution of the project documents for the 340 MW
Sarulla Geothermal Project in Indonesia. The Consortium signed
an Amendment to the Joint Operating Contract with PT Pertamina
Geothermal Energy, a wholly owned subsidiary of the Indonesian
state-owned oil and gas company PT Pertamina, and, together with
PGE, signed the Amendment to the Energy Sales Contract with PT
Perusahaan Listrik Negara.
The Consortium and PLN executed a Deed of Assignment, whereby
PLN assigned and transferred to the Consortium the rights and
obligations under the JOC and ESC.
The Project, located in Tapanuli Utara, North Sumatra,
represents the largest single-contract geothermal power project
to date, and is a reflection of the large scale, high
productivity and potential of Indonesian geothermal resources.
The Project will be owned and operated by the Consortium members
under the framework of the JOC with PGE, and is to be
constructed in three phases, consisting of Ormat designed and
supplied power generating units of 110 to 120 MW each, over the
next five years. The first unit is scheduled to commence
operation within 30 months of financial close, which is expected
by the end of 2008. The remaining two units are scheduled to
commence operation in stages within 18 months after the first
unit's scheduled commissioning.
The total project cost is expected to be approximately US$800
million, and it is expected that the Japan Bank for
International Corporation will provide the majority of the
project financing based on the Umbrella Note of Mutual
Understanding signed between the Ministry of Finance of
Indonesia and JBIC. Ormat's equity participation shall
initially be 25%, and may be reduced to not less than 12.75%.
Power delivered by the project will serve the base load of PLN's
North Sumatra -- Aceh grid system and annual electricity sales
revenue from the project is anticipated to be approximately
US$115 million when the full capacity is attained. The value of
Ormat's scope of supply for the project is expected to be over
US$250 million.
Lucien Bronicki, Chairman and CTO of Ormat Technologies, stated,
"The execution of the Sarulla project documents is an important
landmark for Ormat, as we will be providing our technology to
Indonesia for the first time. We congratulate the teams of PLN
and Pertamina, as well as our Consortium partners Medco and
Itochu, and express our appreciation for their efforts that have
contributed to the Consortium achieving this milestone. Our
commitment to the development of geothermal resources in
Indonesia is strong and we are pleased to be sharing our long
experience in constructing and operating geothermal plants.
Ormat's air-cooled geothermal Combined Cycle technology, well
proven over the last 15 years, is particularly suited to assure
maximum utilization of the Sarulla resource in a sustainable
manner."
Dita Bronicki, CEO of Ormat Technologies, added, "The signing
today of the project documents is a significant milestone in the
development of the Sarulla project. While the project is still
subject to the uncertainty of the closing of financing,
encouraged by the interest shown in financing this project by
JBIC and other institutions, the Consortium shall make pre-
development investments estimated at approximately $15 million
before financial closing."
About Ormat Technologies
Ormat Technologies, Inc. is a vertically integrated company
primarily engaged in the geothermal and recovered energy power
business. The Company designs, develops, builds, owns and
operates geothermal and recovered energy- based power plants.
Additionally, the Company designs, manufactures and sells
geothermal and recovered energy power units and other power
generating equipment, and provides related services. Ormat
products and systems are covered by more than 70 patents. Ormat
currently operates the following geothermal and recovered
energy-based power plants: in the United States -- Brady, Heber,
Mammoth, Ormesa, Puna, Steamboat and OREG 1; in Guatemala --
Zunil and Amatitlan; in Kenya -- Olkaria; and in Nicaragua --
Momotombo.
About Medco Energi
Headquartered in Jakarta, Indonesia, PT Medco Energi
Internasional Tbk -- http://www.medcoenergi.com/-- is engaged
in the exploration, production of, and support services for oil
and natural gas and other energy industries, including onshore
and offshore drilling. Other activities include production of
methanol and its derivatives and raising funds by issuing debt
securities and marketable securities.
Medco Energy also has operations in the United States and in
Libya.
The Troubled Company Reporter-Asia Pacific reported on Dec. 21,
2006, that Standard & Poor's Ratings Services affirmed its 'B+'
corporate credit rating on Medco Energi. The outlook remains
negative. According to S&P, the negative outlook on Medco
reflects the company's weak financial profile due to its
increased debt burden to fund its aggressive capital
expenditure.
A TCR-AP report on Aug. 16, 2006, said that Moody's Investors
Service changed the outlook on Medco Energi's ratings to
negative from stable. The ratings affected by the outlook
change are:
* B1 local currency corporate family rating -- Medco
* B2 foreign currency long-term rating -- MEI Euro Finance
Ltd (guaranteed by Medco).
TELKOM INDONESIA: Unit to Buy 80% of Sigma Cipta
------------------------------------------------
PT Telekomunikasi Indonesia's unit PT Multimedia Nusantara has
signed a sale and purchase deal to buy an 80% stake in PT Sigma
Cipta Caraka, Thomson Financial reports.
According to the report, Sigma Cipta specializes in providing
services like software development and customization, network
and system integration, and Internet access mainly for the
banking sector.
Telkom told the news agency that the legal closing of the deal
is expected to be completed in February 2008.
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 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 affirmed Telekomunikasi
Indonesia's Long-term foreign and local currency Issuer Default
Ratings at 'BB-'.
=========
J A P A N
=========
ALITALIA SPA: Air France Offers EUR750 Million Capital Injection
----------------------------------------------------------------
Air France-KLM confirms its determination to support Alitalia
S.p.A. in its recovery and to relaunch it as a strong national
flag carrier with world coverage.
The enlarged Group will then be able to rely on three strong,
complementary brands providing customers with an unparalleled
network.
Air France confirms that it has made a non-binding offer:
-- to acquire 100% of the shares of Alitalia through an
exchange offer;
-- to acquire 100% of Alitalia convertible bonds; and
-- to immediately inject at least EUR750 million into
Alitalia through a capital increase that will be open to
all shareholders and be fully underwritten by Air France.
A large part of this investment will be used to support a huge
relaunch program with cabin reconfiguration at the top of in
flight products (seats, interior design, entertainment,) and
ground services to restore Alitalia's international image as a
major airline and to convey the Italian flag and values all over
the world.
As the world's leading airline group, with a strong commercial
position in most regions, Air France will support Alitalia in
restoring and recovering its natural position and market share.
In addition, Alitalia's fleet renewal is Air France's top
priority and the Group has assessed that it will proceed with
the full renewal of the MD80 short/medium-haul fleet and the
B767 long-haul fleet. After the recovery phase, further
investments will ensure the growth of the fleet, and enable
Alitalia to expand its network from a healthy position.
Air France's Recovery and Relaunch Plan will not add any more
redundancies to Alitalia's current plan.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina and Japan.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
ALITALIA SPA: Outlines Criteria for Selecting Preferred Buyer
-------------------------------------------------------------
The Italian Stock Exchange Controller CONSOB requested Alitalia
S.p.A., to disclose details regarding the task of examining the
non-binding offers received by the advisor Citi and presented at
the latest Board meeting.
Alitalia says the appraisal of the offers will focus primarily
on their industrial content, as well as on the financial
contents of the offers. In particular, Alitalia's attention
will focus on these main aspects:
-- the ability to carry out the restructuring of Alitalia
creating conditions of sustainability for the Company in
the medium-long term, together with a fast inversion
of the current loss trend, while enhancing the brand and
its market coverage;
-- the answer to key strategic and critical factors which
have led to the deterioration of the Company's
profitability, in particular:
* reducing traffic capture via major European hubs from
the Italian market;
* drawing up and implementing a business model and a size
to enable the Company to compete globally;
* improving the quality of network organization, also
developing a hub that will eventually come close to the
main European ones in terms of size and number of
connections;
* realigning the Company's cost structure and overall
efficiency levels with those of its main competitors;
and
* improving the service quality to customers and
operational performance in terms of punctuality and
reliability of service.
-- the ability to create conditions for the Company's long-
term growth, and consequently the number of destinations
and flights that the Company will be able to offer its
customers;
-- the creation of significant synergies as a result of
network and operational structures integration;
-- the amount of the financial resources for the
implementation of the Company's Business Plan and its
investments; and
-- the ability to generate adequate cash flow to sustain a
debt level in line with rest of the industry.
As reported in the TCR-Europe on Dec. 7, 2007, Alitalia received
non-binding proposals for the Italian government's 49.9% stake
from:
-- Air France-KLM,
-- AP Holding S.p.A., and
-- Cordata Baldassarre.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina and Japan.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
ALL NIPPON: Inks MOU with Nippon Express and Kintetsu World
-----------------------------------------------------------
All Nippon Airways Co. Limited signed a memorandum of
understanding with Tokyo-based logistics companies Nippon
Express and Kintetsu World Express to establish a new joint
venture company to provide business-to-business international
express delivery services in Asia. The new company will
commence operations on April 1, 2008.
ANA will take a 34% share in the joint venture company - which
has yet to be named - with Nippon Express and Kintetsu World
Express both holding shares of 28%. The final 10% share will be
taken by other forwarding companies.
The three companies cited the growth of international logistics
and the increasing need for high quality, integrated, strategic
distribution services as a driver behind their new joint
venture. In particular, they pointed out the need in Asia for
reliable and responsive logistics services to support the supply
chains of businesses with rapidly expanding production bases.
To better compete in this changing environment, Nippon Express
and Kintetsu World Express have been developing their own new
products independently. ANA has also been working to create a
cargo hub in Okinawa and highly efficient air network in Asia,
with a move into the international express delivery market in
its sights. The memorandum signed will combine the expertise,
experience and resources and of the three companies, allowing
them to provide more effective and responsive services, and
contribute to the growth of the domestic Japanese and regional
Asian economies.
Headquartered in Tokyo, All Nippon Airways Co., Limited --
http://www.ana.co.jp/eng/-- is Japan's second-largest airline
company in terms of revenue. The company, which was founded
in1952, provides these services:
1. Scheduled air transportation business;
2. Nonscheduled air transportation business and business
utilizing aircraft;
3. Business of buying, selling, leasing and maintenance of
aircraft and aircraft parts; and
4. Aircraft transportation ground support business, including
passenger boarding procedures and loading of hand baggage.
The Troubled Company Reporter-Asia Pacific reported on April 20,
2007, that Moody's Investors Service placed the Ba1 senior
unsecured debt ratings of All Nippon Airways Co., Ltd. under
review for possible upgrade. The rating action reflects ANA's
high and stable profitability despite the ongoing price hikes of
aircraft fuel, as well as Moody's view that the company's
financial flexibility is likely to be further improved by its
recently announced asset disposition related to its hotel
business.
CASTOR TRUST: S&P Assigns BB Rating on Class D Certificate
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its ratings to the
class A to D senior beneficiary certificates, due March 2014,
issued under the Castor Trust Beneficiary Certificates
transaction:
Class Rating Amount
----- ------ ------
A AA JPY6,072,599,315
B A JPY1,327,498,455
C BBB JPY1,412,232,399
D BB JPY919,298,587
Standard & Poor's ratings address the full and timely payment of
interest and the ultimate repayment of principal by the
transaction's legal final maturity of March 2014 for the class A
to D senior beneficiary certificates. The certificates are
ultimately secured by a pool of unsecured small business
loan receivables entrusted to a trust company.
The ratings reflect:
-- Ample overcollateralization appropriate for each rating
level;
-- A sufficient cash reserve to be funded at closing to
enhance liquidity in the event of a servicer replacement;
-- The covering of commingling risk by overcollateralization;
and
-- The conversion of the transaction, via an early
amortization trigger, to a pass-through turbo structure
under certain adverse circumstances.
EBARA CORP: To Sue Former Vice-president Over Anomalous Deal
------------------------------------------------------------
Ebara Corp. President Natsunosuke Yago said that the company
plans to file a damages suit against one of its former vice
presidents by the end of this month at the earliest for
allegedly misappropriating JPY320 million of the company's
money, Kyodo News reports.
According to the report, an investigative commission by Ebara
revealed that the former senior executive ordered the company to
improperly pay JPY320 million in sales commissions and other
fees to a sales agent for Ebara's work to build garbage
incineration facilities from 2004 to 2006.
Headquartered in Tokyo, Japan, Ebara Corp. --
http://www.ebara.co.jp/en/ir/index.html-- is Japan's largest
manufacturer of pumps, a major fluid machinery producer and an
integrated environmental engineering service company. It also
has technologies for semiconductor polishing, cleaning and
plating. The company has 107 subsidiaries and 17 associated
companies.
Ebara Corp. still carries' Fitch Ratings' BB+ foreign and local
currency Issuer Default Ratings and BB+ senior unsecured local
currency debt rating, with a stable outlook. The rating was
announced on June 21, 2006.
FORD MOTOR: Names J. Hinrichs as Global Manufacturing Vice Pres.
----------------------------------------------------------------
Ford Motor Company President and Chief Executuve Officer Alan
Mulally has named Joe Hinrichs as group vice president, Global
Manufacturing effective Jan. 1, 2008.
Mr. Hinrichs, currently vice president of North America
Manufacturing, will lead the worldwide integration of the
company's manufacturing operations and its engineering support
for vehicle, powertrain and stamping. In his new role, Mr.
Hinrichs will drive alignment between manufacturing and product
development on a global scale, leveraging the company's
worldwide product strategy. He will continue to directly
oversee North American manufacturing operations. In addition,
he will have global responsibility for the company's Material
Planning and Logistics, Ford Production System, and
Manufacturing Business Office organizations.
"Joe has been successful in leading the restructuring of our
North American manufacturing operations and was a key
participant in the recent contract talks with the UAW," Mr.
Mulally said. "In his new role, Joe will focus on delivering a
global manufacturing plan that allows us to improve our
efficiency while leveraging our scale worldwide. A global
manufacturing footprint supporting a global product plan that
delivers the vehicles people want and value are key to creating
an exciting and viable company -- that delivers profitable
growth for all."
In his global role, Mr. Hinrichs reports to Mr. Mulally. In his
North American role, he will continue to report to Mark Fields,
executive vice president and president, The Americas.
"Our plants in North America are more competitive and our
launches are stronger, thanks in large part to Joe's
leadership," Mr. Fields said. "Integrating manufacturing around
the world and aligning it with product development on a global
scale will make the entire business stronger."
Mr. Hinrichs, who joined Ford Motor in 2000 and has held a
variety of top manufacturing jobs, led the company's successful
effort to negotiate Competitive Operating Agreements with the
United Auto Workers across Ford's United States manufacturing
operations while driving improved quality. He also played a key
role in this year's contract negotiations with the UAW, which
led to a new four-year U.S. labor agreement that will help the
company become significantly more competitive and protects
workers and retirees.
"I am excited by the opportunity to bring our plants and
engineering functions around the world together into one,
cohesive manufacturing operation," Mr. Hinrichs said.
"Integrating a global process plan and combining it with our
global product plan allow us to accelerate our ability to
produce the vehicles customers want around the world while
continuing to improve quality."
Mr. Hinrichs also will lead Automotive Components Holdings LLC,
the Ford-managed temporary business entity comprised of former
Visteon Corp. plants and facilities in the United States and
Mexico. Automotive Components is preparing its plants for sale
or closure by the end of 2008.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures or distributes
automobiles in 200 markets across six continents. With about
260,000 employees and about 100 plants worldwide, the company's
core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The
company provides financial services through Ford Motor Credit
Company.
The company has operations in Japan in the Asia-Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 19, 2007, Moody's Investors Service affirmed the long-term
ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative. These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the UAW.
ICONIX BRAND: Completes US$60 Million Starter Brand Acquisition
---------------------------------------------------------------
Iconix Brand Group, Inc. has completed the acquisition of the
brand Starter(R). The purchase price for the transaction was
US$60 million in cash.
Founded in 1971, the Starter brand pioneered the league licensed
apparel business and is currently licensed to several
manufacturer/wholesalers selling primarily to Wal-Mart in the
United States, Canada and Mexico. Iconix Brand is forecasting
2008 royalty revenue from Starter of approximately US$18 million
worldwide.
About Iconix Brand
Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON) -
- http://www.iconixbrand.com/-- owns fashion brands to retail
distribution from the luxury market. The company licenses its
brands to retailers and manufacturers worldwide. The group has
international licenses in Mexico, Japan and the United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 12, 2007, Standard & Poor's Ratings Service assigned its
bank loan and recovery ratings to apparel brand manager and
licensor Iconix Brand Group Inc.'s proposed US$60 million add-on
term loan facility. The add-on was rated 'BB', two notches
above the corporate credit rating, with a '1' recovery rating,
indicating the expectation of very high (90%-100%) recovery in
the event of a default. At the same time, S&P raised the rating
on the existing US$212.5 million loan facility to 'BB', from
'BB-', and revised the recovery rating to '1' from '2'. S&P
affirmed the 'B+' corporate credit rating on the company.
The outlook is negative. The group had about US$642.2 million
in debt at Sept. 30, 2007.
INT'L RECTIFIER: Promotes Rick Sivan to Vice President for R&D
--------------------------------------------------------------
International Rectifier Corporation has promoted Rick Sivan to
Vice President, Research & Development effective immediately.
In this role, Mr. Sivan will be responsible for Research &
Development efforts.
Mr. Sivan joined International Rectifier in March 2005 and most
recently served as the company's Vice President R&D where he was
responsible for radiation hardened technologies, EDA/PDK
development, as well as managing the R&D organizational goals
and budget.
Before joining International Rectifier, Mr. Sivan spent 18 years
at Motorola Semiconductor, where he led the development of
several generations of memory and microcontroller technology
platforms and held several senior positions including Vice
President and Chief Technology Officer of the Semiconductor
Products Sector. Mr. Sivan previously was a member of the
technical staff at Bell Laboratories, where he worked on
advanced CMOS technologies.
Mr. Sivan received his Ph.D. in solid-state physics from the
University of Texas at Austin, as well as a post-doctoral
fellowship at the University of Tel Aviv, Israel. He has
authored or co-authored 16 US patents and numerous articles in
scientific and technical journals.
Don Dancer, International Rectifier's acting chief executive
officer, said, "This is a well-deserved promotion for Rick. His
proven industry experience will play an important role in
driving the company toward continued innovation and
technological expertise."
International Rectifier Corporation (NYSE:IRF) --
http://www.irf.com/-- provides power management technology.
IR's analog, digital, and mixed signal ICs, and other advanced
power management products, enable high performance computing and
save energy in a wide variety of business and consumer
applications. Manufacturers of computers, energy efficient
appliances, lighting, automobiles, satellites, aircraft, and
defense systems rely on IR's power management solutions to power
their next generation products. The company has manufacturing
facilities in the U.S., Mexico, United Kingdom, Germany and
Italy; and has subsidiaries in Japan and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services said that its
'BB' corporate credit rating on International Rectifier Corp.
remains on CreditWatch with negative implications.
SPANSION INC: Amends Merger Agreement With Saifun Semiconductors
----------------------------------------------------------------
The boards of directors of Spansion Inc. and Saifun
Semiconductors Ltd. have executed an amendment to their merger
agreement providing for an approximately US$31.4 million
increase in the cash distribution, which would result in a cash
distribution of approximately US$6.05 per share in cash based on
Saifun Semiconductor's current capitalization. The cash
distribution will be funded solely from Saifun's existing cash
on hand prior to or on the closing of the transaction. The
exchange ratio that each outstanding share of Saifun common
stock would receive in the merger remains 0.7429 shares of
Spansion common stock. In connection with this amendment,
Saifun will send to its shareholders and file with the
Securities and Exchange Commission additional solicitation
materials.
"We are very excited about this transaction as the combined
company will be well positioned for future growth.
Additionally, with the cash that will be acquired in the
transaction, the combined company will be capitalized to further
leverage Saifun's licensing business," said Spansion Inc.
president and Chief Executive Officer, Bertrand Cambou. "We
also feel it is appropriate in this environment that Saifun
shareholders receive a higher cash distribution."
The special general meeting of Saifun shareholders called to
obtain the shareholder approval necessary to complete the merger
and all transactions contemplated under the amended merger
agreement including the increased cash distribution will be
held, as originally scheduled, on Dec. 20, 2007 at 4:00 p.m.
Israel time. The record date for Saifun shareholders entitled
to attend and vote at the Saifun special general meeting remains
Nov. 11, 2007. Saifun notes that shareholders that have
previously voted may either change their vote as a result of the
amendment, or decide to leave their original vote unchanged, in
which case their vote shall be seemed to refer to the amended
merger agreement which includes the increased cash distribution
amount as detailed above.
The merger remains subject to satisfaction of customary closing
conditions that include Israeli court approval, regulatory
approvals and the Saifun shareholders' approval, and is expected
to close in the first quarter of 2008.
Saifun shareholders are reminded that their vote is very
important. Any shareholder who has not yet voted is urged to
vote 'FOR' the approval of the merger agreement as amended, the
merger and the transactions the amended merger agreement
contemplates, including the increased cash distribution. Saifun
shareholders are advised that if they have any questions or need
any assistance in the voting of their shares or if they need
additional copies of Saifun's proxy materials, they should
contact Saifun's proxy solicitor, Innisfree M and A
Incorporated, toll-free at 888-750-5834 (United States and
Canada) or 00800 7710 9971 (Europe and Israel).
Saifun Semiconductors has filed a Form 6-K with the SEC
containing a definitive proxy statement and other relevant
materials in connection with the proposed merger. On or about
Nov. 13, 2007, the definitive proxy statement was mailed to
Saifun shareholders of record as of the close of business on
Nov. 11, 2007. Saifun security holders are urged to read the
definitive proxy statement and the other relevant materials
because they contain, among other things, important information
about the merger, the merger agreement, the cash distribution
and the special general meeting of Saifun shareholders, as well
as important information about Saifun and Spansion. The
definitive proxy statement and other relevant materials, and any
other documents filed by Spansion or Saifun with the SEC, may be
obtained free of charge at the SEC's web site at
http://www.sec.gov. In addition, investors and security holders
may obtain free copies of the documents filed with the SEC by
Spansion by contacting its Investor Relations, Bob Okunski,
(408) 616-1117. Investors and security holders may obtain free
copies of the documents filed with the SEC by Saifun by
contacting KCSA Worldwide, Lee Roth, (212) 896-1209.
About Spansion
Spansion Inc. -- http://www.spansion.com/-- (Nasdaq: SPSN),
headquartered in Sunnyvale, California, and parent of Spansion
LLC, is a leading provider of flash memory semiconductors that's
after its initial public offering in December 2005, is owned
approximately 38% by Advanced Micro Devices and 25% by Fujitsu
Limited.
The company has European operations in France, Asia-Pacific
facilities in Japan, China, Malaysia and Thailand, as well as
sales offices in Latin American countries including Brazil and
Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Fitch Ratings assigned a rating of 'B+/RR2' to
Spansion Inc.'s US$550 million senior secured floating- rate
notes due 2013 issued pursuant to Rule 144A, the net proceeds
from which will be used to repay the outstanding obligations
under the company's US$500 million senior secured term loan
facility due 2012. The remainder of net proceeds will be used
for general corporate purposes, including capital expenditures
and working capital.
Fitch withdrew the 'BB-/RR1' rating of the approximately US$500
million senior secured term loan facility in anticipation of
Spansion's repayment of this tranche of debt. Additionally,
Fitch downgraded the US$175 million senior secured revolving
credit facility due 2010 to 'B+/RR2' from 'BB-/RR1.' In
conjunction with the refinancing, Fitch affirmed these ratings:
-- Issuer Default Rating of 'B-';
-- US$250 million of 11.75% senior unsecured notes due 2016
at 'CCC+/RR5'; and
-- US$207 million of 2.25% convertible senior subordinated
debentures due 2016 at 'CCC/RR6'.
Fitch said the rating outlook remains negative. Approximately
US$1.1 billion of total debt is affected by Fitch's actions.
* Japan's Corporate Bankruptcies Increase 11.2% Year-on-Year
--------------------------------------------------------------
A private credit research agency said that Japanese corporate
bankruptcies jumped 11.18% year-on-year in November to 1,213,
with debts of the failed firms climbing 11.53% to
JPY492.57 billion, Kyodo News reports.
According to the report, the collapse is attributed to the
struggling construction and real estate sectors.
The bankruptcy figure, as stated by the Tokyo Shoko Research, is
seen to exceed 14,000 for the first time in four year as the
number between January and November rose 7.0% to 12,994, relates
Kyodo News. The downfalls are on a moderate uptrend and more
smaller concerns will likely fall by the wayside toward the end
of most companies' business years through March, states Kyodo
News.
Kyodo News notes that in the construction industry, bankruptcies
surged 29.6% to 359. Nine of them collapsed due to tougher
building regulations introduced in June.
The law, the report says, was stiffened following a spate of
scandals involving the fabrication of earthquake resistance data
by officially certified architects.
=========
K O R E A
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DAEWOO ELECTRONICS: Attracts 10 Foreign Bidders for Stake Sale
--------------------------------------------------------------
Over 10 foreign companies are jockeying for position in their
attempt to acquire Daewoo Electronics Corporation, The Donga-A
News reports.
Woori Investment and Securities and Samil Pricewaterhouse
Coopers, the report relates, reported that after registering a
letter of intent, 10 companies expressed their interest in
acquiring Daewoo.
As reported by the Troubled Company Reporter-Asia Pacific on
Nov. 28, 2007, Daewoo Electronics is put up for sale a second
time as the US$746-million Videocon-Ripplewood bid fails.
Videocon and bid partner Ripplewood Holdings, LLC, the TCR-AP
recounted, submitted the winning bid for a controlling stake in
Daewoo. The deal started to hit obstacles after the buyers
completed due diligence, the report said. Expectations were out
of line with what the asset was worth and creditors were not
prepared to make the significant concessions necessary to
progress discussions, the report points out, the report noted.
According to The Donga-A, the only Korean company that expressed
interest in acquiring Daewoo was MBK Partners, but it did not
participate in the initial period, and the only companies that
registered LOIs were foreign companies.
Creditors, The Donga-A relates, will examine submitted LOIs and
screen qualified companies before this week is up. Some five
weeks after the preliminary inspections, the most eligible
companies will be short-listed, the report adds.
About Daewoo Electronics
Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation
-- http://www.dwe.co.kr/-- is the third largest Korean consumer
electronics company. It manufactures and sells a variety of
products including televisions, DVD players, refrigerators, air
conditioners, washing machines, microwaves, vacuum cleaners and
car audio systems in over 105 countries.
According to the Troubled Company Reporter-Asia Pacific, Daewoo
Electronics has been under a debt workout program since January
2000, months after its parent group -- the Daewoo Group --
collapsed under debts of nearly US$80 billion in 1999.
Daewoo Electronics Corp. posted a KRW94-billion loss in 2005
after sales declined 6.4%. The net loss compares with the
KRW30-billion profit the company posted in 2004. Sales fell to
KRW2.2 trillion from KRW2.3 trillion in 2004.
The TCR-AP reported on Nov. 14, 2005, that creditors of Daewoo
Electronics placed the firm for sale for US$1 billion. ABN
Amro, PricewaterhouseCoopers and Woori Bank were appointed to
find a buyer for the business. In September 2006, the
consortium led by Videocon Industries submitted a bid for a
controlling stake in Daewoo.
HANARO: SK Telecom Applies for Purchase Approval from Government
----------------------------------------------------------------
SK Telecom Co. has applied for government approval to purchase a
controlling stake in hanarotelecom Inc., Asia Pulse reports.
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 4, 2007, SK Telecom agreed to buy hanarotelecom Inc.
for KRW1.09 trillion in cash, a near 50% premium on pre-
acquisition talks. Asia Pulse notes that SK Telekom will buy
the stake from a consortium led by Newbridge Capital and AIG
earlier this month.
Under local law, Asia Pulse says, any company is required to get
approval from the ministry before taking over more than a 15
percent stake or becoming the largest shareholder of a
communications carrier that provides services to the general
public.
The ministry is required to make its final decision within two
months of receiving an application, the report adds.
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.
* * *
hanarotelecom carries Moody's Investors Service's Ba2 long-term
corporate family and senior unsecured debt ratings.
Standard and Poor's gave hanarotelecom 'BB' long-term foreign
issuer credit and long-term local foreign issuer credit
ratings.
===============
M A L A Y S I A
===============
MERGE ENERGY: Earns MYR3.7 Mil. in Quarter Ended Oct. 31
--------------------------------------------------------
Merge Energy Bhd posted a net profit of MYR3.69 million on
MYR60.36 million of revenues in the third quarter ended
October 31, 2007, compared with a net profit of MYR4.49 million
on MYR45.59 million of revenues in the same period in 2006.
As of October 31, 2007, the company's consolidated balance sheet
showed current assets of MYR103 million and current
liabilities of MYR76.96 million.
Merge Energy's balance sheet as at October 31 also showed total
assets of MYR115.15 million and total liabilities of
MYR77.99 million, resulting in a shareholders' equity of
MYR37.16 million.
Merge Energy Berhad's principal activities involve building
construction, structural, infrastructure and civil engineering
works. Other activity includes property investment and
investment holding. Operations of the company are carried out
predominantly in Malaysia.
On May 8, 2006, the company was classified as an affected listed
issuer pursuant to the Amended Practice Note No. 17/2005 whereby
the company's shareholders' equity on consolidated basis is less
than twenty five percent (25%) of its issued and paid-up share
capital of MYR67.00 million.
INDUSTRIAS METALURGICAS: Will Upgrade Acaray II Plant
-----------------------------------------------------
Industrias Metalurgicas Pescarmona SA has signed an accord with
Paraguayan state-run power firm Ande to modernize the Acaray II
hydroelectric plant, Business News Americas reports.
BNamericas says that the upgrade is aimed at increasing the
plant's capacity.
Industrias Metalurgicas said in a statement that the contract is
about US$11 million. It involves the revamping of plant
generators three and four to boost their production to 150
megawatts from 121 megawatts.
According to BNamericas, Ande runs Acaray II, which supplies 15%
of Paraguay's power needs. Acaray II is also the sole
hydroelectric plant Paraguay runs on its own.
BNamericas notes that work for the project would last for 30
months.
Industrias Metalurgicas told Waterpowermagazine.com that
"binational possibilities" like the Yacyreta project on the
Parana river were still of interest as the firm is examining
possibilities for the 300-megawatt Ana Cua project, a
complementary scheme to the 3200-megawatt Yacyreta plant for
which the company provided seven 160-megawatt units out of the
total 20 turbines.
Industrias Metalurgicas commented to Waterpowermagazine.com that
it is working on providing equipment for a series of other
projects like:
-- Bakun in Malaysia;
-- Tocoma and Macagua schemes in Venezuela;
-- Porce III in Colombia; and
-- Simplicio, Dardanelos and Anta plants in Brazil.
Waterpowermagazine.com says that Industrias Metalurgicas is also
working on wind farm development.
Industrias Metalurgicas told Waterpowermagazine.com that its
power generation projects surpass six giga watts, entailing a
US$1.7-billion "order backlog."
Industrias Metalurgicas Pescarmona SA aka IMPSA --
http://www.impsa.com.ar/-- is one of the largest worldwide
providers of integrated energy solutions for hydropower and wind
energy projects through the production of capital goods and by
investing in power generation projects. The company has offices
in Malaysia, China, and Argentina.
As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on Industrias Metalurgicas
Pescarmona S.A.I.C. y F, aka IMPSA. Standard & Poor's said that
the outlook remains stable.
Oct. 16, 2007, Fitch Ratings assigned a 'B' rating to Industrias
Metalurgicas Pescarmona S.A.I.C. Y F proposed US$250 million
amortizing notes due in 2014. These notes were assigned a
Recovery Rating of 'RR4', which is consistent with an
anticipated recovery of 30%-50% in the event of a default.
Fitch maintains a foreign and local currency Issuer Default
Rating of 'B'. Fitch said the rating outlook is stable.
VERIFONE HOLDINGS: Purchases EFTPOS Services Business
-----------------------------------------------------
VeriFone Holdings Inc. has acquired the EFTPOS services business
of Peripheral Computer Industries to enhance its ability to
provide acquirer banks and other organizations with one-stop
electronic payments products and services.
Local acquirers are increasingly reliant on partners to add
value to their product offerings through expanded solutions and
managed service offerings while at the same time reducing their
cost of ownership. With an expanded services organization,
VeriFone Australia now has the ability to provide one-stop
shopping with a complete array of APCA-certified products,
software solutions and an integrated services capability.
APCA - Australian Payments Clearing Association - has defined
standards for design, security and functionality in line with
global standards. VeriFone has developed a broad portfolio of
powerful system solutions and peripherals that have received
APCA certification.
"PCI has built up one of the largest EFTPOS service companies in
Australia, with a superior service infrastructure, strong
customer relationship management skills and a large help desk
organization," said William C. Nichols, senior vice president,
VeriFone Asia Pacific. "With the continuing growth in
electronic payments and the industry's need to comply with
global security standards such as PCI, EMV and local APCA
mandates, these resources will further enhance VeriFone's
ability to provide a full complement of integrated point-of-sale
payment solutions and services.
"With this acquisition VeriFone will provide a variety of value
added services to our customers not only in Australia and New
Zealand but across the South East Asia market," Mr. Nichols
said. "Our Melbourne-based Helpdesk is capable of providing
7x24 coverage. VeriFone is the only company to offer key
injection, repairs, installation and maintenance and software
development in both Sydney and Melbourne to service local
customers."
The PCI acquisition will also provide a launch pad for
VeriFone's expanded product portfolio of unattended, petro and
retail solutions, which have seen considerable success around
the globe.
Australia is one of the largest EFTPOS markets in Asia, with an
installed base of over 500,000 payment systems. VeriFone
markets and supports secure technology that enables electronic
payment transactions and value-added services at the point of
sale throughout Asia and the Pacific Rim region. The company
delivers advanced payment solutions based on leading-edge IP
technologies such as Ethernet, Wi-Fi, CDMA and GPRS.
About VeriFone
VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems. The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.
* * *
As reported in the Troubled Company Reporter on Sept. 29, 2006,
Moody's Investors Service affirmed the Corporate Family
Rating of B1 of VeriFone and revised the rating outlook to
stable from negative. At the same time, Moody's assigned
ratings to new bank credit facilities that VeriFone will use to
finance its pending acquisition of Lipman Electronic Engineering
Ltd.
====================
N E W Z E A L A N D
====================
CASA ROCA: Subject to CIR's Wind-Up Petition
--------------------------------------------
On August 31, 2007, the Commissioner of Inland Revenue filed a
petition to have Casa Roca Ltd.'s operations wound up.
The petition will be heard before the High Court of Auckland on
January 31, 2008, at 10:45 a.m.
The CIR's solicitor is:
Simon John Eisdell Moore
Offices of Meredith Connell
Forsyth Barr Tower, Level 17
55-65 Shortland Street
PO Box 2213
New Zealand
CLEAR CHANNEL: Launches Tender Offer & Solicitation for Notes
-------------------------------------------------------------
Clear Channel Communications Inc. has commenced a cash tender
offer and consent solicitation for its outstanding
US$750,000,000 principal amount of the 7.65% Senior Notes due
2010 (CUSIP No. 184502AK (the CCU Notes) on the terms and
conditions set forth in the Offer to Purchase and Consent
Solicitation Statement dated Dec. 17, 2007 (the CCU Offer to
Purchase).
The company also announced that its subsidiary, AMFM Operating
Inc., is commencing a cash tender offer and consent solicitation
for the outstanding US$644,860,000 principal amount of the 8%
Senior Notes due 2008 (CUSIP No. 158916AL0) on the terms and
conditions set forth in the Offer to Purchase and Consent
Solicitation Statement dated Dec. 17, 2007.
The CCU Tender Offer and the AMFM Tender Offer are being made
in connection with the previously announced merger with BT
Triple Crown Merger Co., Inc. The completion of the Merger and
the related debt financings are not subject to, or conditioned
upon, the completion of the Tender Offers or the related consent
solicitations or the adoption of the proposed amendments with
respect to any Notes contemplated by the CCU Offer to Purchase
and the AMFM Offer to Purchase.
The total consideration for each US$1,000 principal amount of
CCU Notes and AMFM Notes validly tendered and accepted for
purchase by Clear Channel or AMFM, as applicable, pursuant to
the applicable Offer to Purchase will be the price (calculated
as described in the applicable Offer to Purchase) equal to:
(i) the sum of:
(a) the present value, determined in accordance with
standard market practice, on the scheduled payment
date of US$1,000 on the maturity date for the
applicable Notes plus
(b) the present value on the scheduled payment date of
the interest that would be payable on, or accrue
from, the last interest payment date prior to the
scheduled payment until the applicable maturity date
for such Notes, in each case determined on the basis
of a yield to such maturity date equal to the sum
of:
(A) the yield to maturity on the U.S. Treasury
Security specified in the table below as
calculated by Citi, as lead dealer manager, in
accordance with standard market practice, based
on the bid-side price of such reference security
as of 2:00 p.m., New York City time on the
second business day immediately preceding the
applicable tender offer expiration date for the
applicable Notes (which, for both the CCU Notes
and the AMFM Notes is currently expected to be
Jan. 14, 2008), unless modified by Clear Channel
or AMFM, as applicable, in its sole discretion,
as displayed on the page of the Bloomberg
Government Pricing Monitor or any recognized
quotation source selected by Citi, as lead
dealer manager, in its sole discretion if the
Bloomberg Government Pricing Monitor is not
available or is manifestly erroneous, plus
(B) the applicable spread (as shown in the table
below), minus
(ii) accrued and unpaid interest to, but not including, the
scheduled payment date.
The total consideration includes a consent payment of US$30.00
per US$1,000 principal amount of the Notes tendered which will
be payable only in respect of the Notes purchased that are
tendered on or prior to the applicable consent payment deadline.
Holders who tender their Notes after the consent payment
deadline will not be eligible to receive the consent payment and
will receive the applicable total consideration less the consent
payment. The consent payment deadline for both the CCU Notes
and the AMFM Notes is 5:00 p.m. New York City time, on
Dec. 31, 2007, unless, in either case, earlier terminated or
extended. Both Tender Offers will expire at 8:00 a.m., New York
City time, on Jan. 16, 2008, unless, in either case, earlier
terminated or extended. In conjunction with the Tender Offers,
Clear Channel and AMFM are also soliciting consents from the
holders of their respective Notes to effect amendments to
eliminate substantially all of the restrictive covenants and the
covenants regarding mergers and consolidations, eliminate
certain events of default, and modify or eliminate certain other
provisions, including certain provisions relating to defeasance.
If adopted, the proposed amendments in connection with the CCU
Tender Offer will not amend any of the terms of any of Clear
Channel's securities other than the CCU Notes. A holder cannot
tender its Notes without delivering a corresponding consent or
vice versa. The proposed amendments to Notes and provisions of
the indenture applicable to the Notes are subject to consents
from holders of a majority of the outstanding principal amount
of the applicable Notes. Tendered Notes, including the related
consents, may be withdrawn at any time prior to Dec. 31, 2007,
but not thereafter in the case of the CCU Notes and at any time
prior to the receipt of the requisite consents and the execution
of the applicable supplemental indenture, but not thereafter in
the case of the AMFM Notes.
The tender offers and consent solicitations relating to the
Notes are made upon the terms and conditions set forth in the
CCU Offer to Purchase and the AMFM Offer to Purchase, as
applicable and the related Consent and Letter of Transmittal.
Each of the Tender Offers is conditioned upon the consummation
of the Merger and the satisfaction of certain other customary
conditions as described in the applicable Offer to Purchase.
The completion of the CCU Tender Offer is not conditioned upon
the receipt of the requisite consents or the adoption of the
proposed amendments. The AMFM Tender Offer is conditioned upon
the receipt of the requisite consents. If any of the conditions
are not satisfied or waived, CCU and AMFM are not obligated to
accept for payment, purchase or pay for, and may delay the
acceptance for payment of, any tendered Notes, and may even
terminate the Tender Offers. Further details about the terms
and conditions of the tender offers and the consent
solicitations are set forth in the CCU Offer to Purchase and the
AMFM Offer to Purchase.
Clear Channel has retained Citi to act as the lead dealer
manager for the tender offers and lead solicitation agent for
the consent solicitations and Deutsche Bank Securities Inc. and
Morgan Stanley & Co. Incorporated to act as co-dealer managers
for the tender offers and co-solicitation agents for the consent
solicitations. Global Bondholder Services Corporation is the
Information Agent for the tender offers and the consent
solicitations. Questions regarding the transaction should be
directed to Citi at 800-558-3745 (toll-free) or 212-723-6106
(collect). Requests for documentation should be directed to
Global Bondholder Services Corporation at 212-430-3774 (for
banks and brokers only) or 866-924-2200 (for all others toll-
free).
Clear Channel-Triple Crown Merger
In connection with the proposed Merger of Clear Channel with and
into BT Triple Crown Merger Co, Inc. pursuant to the terms and
conditions of that certain Agreement and Plan of Merger, dated
as of Nov. 16, 2007, by and among Mergerco, B Triple Crown
Finco, LLC, T Triple Crown Finco, LLC, CC Media Holdings, Inc.
(formerly BT Triple Crown Capital Holdings III, Inc., CC
Media) and Clear Channel, as amended by Amendment No. 1, dated
as of April 18, 2007 and by Amendment No. 2, dated as of
May 17, 2007, Clear Channel and CC Media have filed a joint
proxy statement/prospectus dated Aug. 21, 2007 with the U.S.
Securities and Exchange Commission.
Investors and security holders may obtain a free copy of the
definitive proxy statement and other documents filed by Clear
Channel and CC Media at the U.S. Securities and Exchange
Commission's web site at http://www.sec.gov/
The definitive proxy statement and such other documents may also
be obtained for free from Clear Channel by directing such
request to:
Clear Channel Communications, Inc.
Investor Relations Department
200 East Basse
San Antonio, TX 78209
Tel: (210) 822-2828
As previously announced by Clear Channel, the closing of the
Merger is expected to occur during the first quarter 2008. The
closing of the Merger is subject to the receipt of regulatory
approvals and conditions, which are summarized in Clear
Channel's proxy statement.
Concurrently with the consummation of the Merger, Clear Channel
expects to obtain US$18,525 million of new senior secured credit
facilities, to be available to the Company and certain of its
subsidiaries as borrowers. The senior secured credit facilities
are expected to include:
(i) a US$1.25 billion term loan A facility, a US$12.65
billion term loan B facility and a US$2.0 billion (which
is expected to be reduced by the amount of net cash
proceeds from certain specified asset sales received
prior to the closing of the Merger) term loan C facility
to be funded at the closing of the Merger,
(ii) a US$2.0 billion revolving credit facility and
(iii) a US$625 million delayed draw term loan facility
Clear Channel and one or more of Clear Channel's subsidiaries
would be the borrowers under a separate receivables-backed
revolving credit facility with availability of up to
US$1.0 billion. To the extent that availability under the
company's receivables-backed credit facility is less than US$750
million at closing, the term loan A facility would be increased
by a corresponding amount.
Clear Channel expects to issue US$2.6 billion in aggregate
principal amount of new senior unsecured notes, including:
(i) US$1.1 billion in senior cash pay notes and
(ii) US$1.5 billion in senior pay-in-kind option notes (the
PIK Toggle Notes and together with the Cash Pay Notes,
the New Senior Notes).
If US$1.1 billion in aggregate principal amount of Cash Pay
Notes are not issued, the company would incur up to US$1.1
billion (less the amount of the Cash Pay Notes, if any, issued
on or prior to the closing of the merger) in aggregate principal
amount of loans with an increasing interest rate under a new
senior unsecured cash pay bridge facility. If US$1.5 billion in
aggregate principal amount of PIK Toggle Notes are not issued,
the company would incur up to US$1.5 billion (less the amount of
the PIK Toggle Notes, if any, issued on or prior to the closing
of the merger) in aggregate principal amount of loans with an
increasing interest rate under a new senior unsecured
pay-in-kind option bridge facility.
The new senior secured credit facilities are expected to be
guaranteed by Clear Channel's direct parent entity and by each
of Clear Channel's existing and future wholly owned material
domestic restricted subsidiaries, subject to certain exceptions,
and such subsidiaries would also guarantee the receivables-
backed revolving credit facility and the New Senior Notes.
Clear Channel's existing senior notes are not guaranteed by
Clear Channel's subsidiaries and the existing senior notes that
remain outstanding after the merger and the new debt financing
will not be entitled to guarantees by Clear Channel's
subsidiaries.
The new senior secured credit facilities are expected be secured
by:
(a) a first-priority pledge of the capital stock of Clear
Channel,
(b) the capital stock of future material wholly-owned
domestic license subsidiaries that are not restricted
subsidiaries under the indenture governing its existing
senior notes,
(c) first-priority security interests in certain assets of
Clear Channel and the guarantor subsidiaries that will
not require Clear Channel's existing senior notes that
remain outstanding to be equally and ratably secured
under the indenture governing such notes, and
(d) if requested by the arrangers of the senior secured
credit facilities, a second-priority lien on the accounts
receivable and related assets that would secure the
receivables-backed credit facility on a first-priority
basis.
With respect to any additional collateral, the senior secured
credit facilities documentation would provide that the amount of
indebtedness to be secured by such collateral will be limited at
all times to an amount less than the amount that would require
the Clear Channel's existing senior notes that remain
outstanding to be equally and ratably secured under the
indenture governing such notes.
The documentation for the senior secured credit facilities and
the receivables-backed revolving credit facility would include
customary provisions, including mandatory prepayments,
incremental facilities, representations and warranties,
covenants and events of defaults. The senior secured credit
facilities are also expected to include a maintenance covenant
that would require Clear Channel to maintain a specified ratio
of the consolidated senior secured net debt to consolidated
adjusted EBITDA as determined under the senior secured credit
facilities documentation. The New Senior Notes would include
customary provisions, including covenants and events of
defaults.
The New Senior Notes will be offered in the United States only
to qualified institutional buyers pursuant to Rule 144A under
the Securities Act of 1933, as amended, and to non-U.S. persons
in accordance with Regulation S under the Securities Act. The
New Senior Notes will not be registered under the Securities Act
or any state securities laws and may not be offered or sold in
the United States or to, or for the benefit of, U.S. persons
absent registration under, or an applicable exemption from, the
registration requirements of the Securities Act and applicable
state securities laws.
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-Latin America 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.
CRAWLER TRACTOR: Wind-Up Petition Hearing Set for Feb. 5
--------------------------------------------------------
A petition to have Crawler Tractor Ag. Work Ltd.'s operations
wound up will be heard before the High Court of Timaru on
February 5, 2008, at 2:15 p.m.
P L Clarke Limited filed the petition on October 12, 2007.
P L Clarke's solicitor is:
J. C. D. Guest
Downie Stewart
John Wickliffe House, 8th Floor
265 Princes Street
PO Box 1345, Dunedin
New Zealand
G & H BUILDING: Court to Hear Wind-Up Petition on March 13
----------------------------------------------------------
A petition to have G & H Building Services Ltd.'s operations
wound up will be heard before the High Court Auckland on
March 13, 2008, at 10:45 a.m.
Carters filed the petition on November 2, 2007.
Carters' solicitor is:
Edmund Lawler
Edmund Lawler & Associates
PO Box 25931, St Heliers
Auckland
New Zealand
GOOD OLD BOY'S: Fixes Jan. 15 as Last Day to File Claims
--------------------------------------------------------
Stephen Mark Lawrence and Anthony John McCullagh were appointed
liquidators of Good Old Boy's Investments Ltd. on Nov. 29, 2007.
Creditors are required to file their proofs of debt by Jan. 15,
2008, to be included in the company's dividend distribution.
The Liquidators can be reached at:
Stephen Mark Lawrence
Anthony John McCullagh
c/o Horwath Corporate (Auckland) Limited
PO Box 3678, Auckland 1140
New Zealand
Telephone:(09) 306 7421
Facsimile:(09) 302 0536
M.J. WATSON: Names Rodewald & Neilson as Liquidators
----------------------------------------------------
On November 27, 2007, Thomas Lee Rodewald and Robert James
Neilson were appointed liquidators of M.J. Watson Ltd.
The Liquidators can be reached at:
Thomas Lee Rodewald
Robert James Neilson
c/o Rodewald Hart Brown Limited
127 Durham Street
PO Box 13380, Tauranga
New Zealand
Telephone:(07) 571 6280
Web site: http://www.rhb.co.nz
PORIRUA MULTIPLEX: Appoints Shephard & Dunphy as Liquidators
------------------------------------------------------------
On November 28, 2007, the shareholders of Porirua Multiplex Ltd.
appointed Iain Bruce Shephard and Christine Margaret Dunphy as
the company's liquidators.
The Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
c/o Shephard Dunphy Limited
Zephyr House, Level 2
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
PRACTIV (NZ): Faces CIR's Wind-Up Petition
------------------------------------------
A petition to have Practiv (NZ) Ltd.'s operations wound up was
filed by the Commissioner of Inland Revenue on October 16, 2007.
The High Court of Auckland will hear the petition on January 24,
2008, at 10:00 a.m.
The CIR's solicitor is:
Simon John Eisdell Moore
Offices of Meredith Connell
Forsyth Barr Tower, Level 17
55-65 Shortland Street
PO Box 2213
New Zealand
VALENZIA LTD: Fixes February 29 as Last Day to File Claims
----------------------------------------------------------
Creditors of Valenzia Ltd. are required to file their proofs of
debt by February 29, 2008, to be included in the company's
dividend distribution.
The company's liquidators are:
Vivian Judith Fatupaito
Colin Thomas McCloy
c/o PricewaterhouseCoopers
188 Quay Street, Auckland
New Zealand
Telephone:(09) 355 8000
Facsimile:(09) 355 8013
WEIGHT WATCHERS: Declares US$0.175 Per Share Quarterly Dividend
---------------------------------------------------------------
Weight Watchers International, Inc.'s Board of Directors has
declared its quarterly cash dividend of US$0.175 per share,
which corresponds to an annual dividend rate of US$0.70 per
share. This quarterly dividend will be payable on
Jan. 11, 2008, to shareholders of record at the close of
business on Dec. 28, 2007.
Headquartered in New York City, Weight Watchers International
Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/
-- provides weight management services, with a presence in 30
countries around the world, including Brazil, the Netherlands,
and New Zealand. The company serves its customers through
Weight Watchers branded products and services, including
meetings conducted by Weight Watchers International and its
franchisees.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 10, 2007, Weight Watchers International Inc.'s consolidated
balance sheet at June 30, 2007, showed US$1.04 billion in total
assets and US$2.04 billion in total liabilities, resulting in a
US$991,266 total stockholders' deficit.
In August 2001, Moody's Investor Services placed Weight Watchers
International Inc.'s long-term corporate family and bank loan
debt ratings at "Ba1". These ratings hold to this date.
=====================
P H I L I P P I N E S
=====================
LAND O'LAKES: Posts US$2.8 Million Net Loss in 3rd Quarter 2007
---------------------------------------------------------------
Land O'Lakes, Inc. reported its third-quarter and year-to-date
financial results.
For the third quarter, Land O'Lakes reported US$2.1 billion in
sales and a net loss of US$2.8 million, compared to US$1.5
billion in sales and a net loss of US$16.7 million in 2006.
Year-to-date sales are US$6.3 billion with net earnings of
US$156.6 million, compared to sales of US$5.2 billion and net
earnings of US$44.2 million in the first nine months of 2006.
"We've seen solid performance over the first three quarters of
the year, with strong markets, particularly in dairy and eggs,
helping to boost dollar sales and earnings," Land O'Lakes
President and Chief Executive Officer Chris Policinski said.
"Higher prices have dampened volumes and we don't expect the
fourth quarter to be without its challenges. However, our
results year to date, the positive momentum we have generated
and our ongoing commitment to cost control, brand strength,
targeted marketing and strategic portfolio management put us in
a very good position to meet any challenges which may emerge."
Total balance sheet debt, including capital leases, was
US$960 million at the end of the quarter, compared to US$770
million as of Sept. 30, 2006. Company officials indicated the
increased debt was primarily due to higher working capital
requirements, as the company builds inventory and receivables at
higher price levels, plus cash requirements related to the
September acquisition of Agriliance LLC's crop protection
products business.
The company improved its Long-Term-Debt to Capital ratio, which
is at 36.8% as of Sept. 30, 2007, compared to 40.5%
Sept. 30, 2006. Liquidity, defined as cash on hand plus unused
capacity on short term debt facilities, was US$270 million at
Sept. 30, 2007, versus US$340 million one year ago.
At Sept. 30, 2007, the company's balance sheet showed total
assets of US$3.3 billion and total liabilities of US$2.3
billion, resulting in a stockholders' deficit of US$1.0 billion.
Equity at Dec. 31, 2006, was US$944.5 million.
About Land O'Lakes
Headquartered in Saint Paul, Minnesota, Land O'Lakes Inc. --
http://www.landolakesinc.com/-- is a national, farmer-owned
food and agricultural cooperative. Land O'Lakes does business
in all 50 states and more than 50 countries, including the
Philippines, Ukraine and Guatemala. It is a leading marketer of
a full line of dairy-based consumer, foodservice and food
ingredient products across the United States; serves its
international customers with a variety of food and animal feed
ingredients; and provides farmers and ranchers with an extensive
line of agricultural supplies and services. Land O'Lakes also
provides agricultural assistance and technical training in more
than 25 developing nations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2007, Standard & Poor's Ratings Services raised its
corporate credit and other ratings on privately owned marketing
and supply cooperative Land O'Lakes Inc. The corporate credit
rating is now 'BB'. S&P said the outlook is stable.
FEDERAL-MOGUL: Plan's Effective Date Set for December 27
--------------------------------------------------------
Federal-Mogul Corporation disclosed that its Plan of
Reorganization is scheduled to become effective on Dec. 27,
marking the Company's emergence from Chapter 11.
Federal-Mogul's Plan of Reorganization was confirmed by the U.S.
Bankruptcy Court on November 8 and affirmed by the U.S. District
Court on November 14. The Confirmation Order relating to the
Plan has become final and non-appealable.
As previously reported in the Troubled Company Reporter, the
Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for
the District of Delaware confirmed the Debtors' Fourth Amended
Joint Plan of Reorganization, on Nov. 8, 2007. The Honorable
Joseph H. Rodgriguez of the U.S. District Court for the District
of Delaware affirmed on November 13, 2007, the order of Judge
Fitzgerald, confirming the Plan.
"We are delighted to have reached this significant milestone in
Federal-Mogul's 108-year history of serving the global
automotive industry. We are confident about our future and wish
to acknowledge the support and loyalty of our customers,
suppliers and employees worldwide," said Federal-Mogul Chairman,
President and Chief Executive Officer Jose Maria Alapont.
"The Company's performance reflects the dedication of the
Federal-Mogul team, paving the way toward emergence from Chapter
11,"Alapont said. "We are committed to our global strategy for
sustainable profitable growth, as we remain focused on creating
value for our customers through innovative technologies, leading
products, operational and service excellence, and best cost
optimization in all areas of our business."
The record date for holders of allowed claims and equity
interests under the Plan of Reorganization was Nov. 8, 2007 and
the effective date of the Plan of Reorganization is scheduled
for Dec. 27, 2007.
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $10.15 billion in assets and $8.86
billion in liabilities.
Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based
at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at
Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq.,
Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard
Firm represent the Official Committee of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June
6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan. On July 28,
2004, the District Court approved the Disclosure Statement. The
estimation hearing began on June 14, 2005. The Debtors
submitted a Fourth Amended Plan and Disclosure Statement on Nov.
21, 2006, and the Bankruptcy Court approved that Disclosure
Statement on Feb. 6, 2007. The Bankruptcy Court confirmed the
Fourth Amended Plan on Nov. 8, 2007.
=================
S I N G A P O R E
=================
ADVANCED MICRO: Goodwill Recorded After ATI Buy Likely Impaired
---------------------------------------------------------------
Advanced Micro Devices, Inc., disclosed in a regulatory filing
with the U.S. Securities and Exchange Commission, that the
current carrying value of its goodwill which the company had
recorded as a result of its October 2006 acquisition of ATI
Technologies Inc. was impaired. The company relates that this
conclusion was reached based on the results of an updated long-
term financial outlook for the businesses of the former ATI as
part of AMD's strategic planning cycle conducted annually during
the company’s fourth quarter and based on the preliminary
findings of the company’s annual goodwill impairment testing
that commenced in the beginning of October 2007.
Goodwill represents the excess of the purchase price over the
fair value of net tangible and identifiable intangible assets
acquired. All of AMD's goodwill and acquisition-related
intangible assets outstanding as of Sept. 29, 2007 were related
to its acquisition of ATI.
The company expects that the impairment charge will be material,
but the company has determined that, as of the time of this
filing, it is unable in good faith to make a determination of an
estimate of the amount or range of amounts of the impairment
charge.
Results for the third quarter of 2007 included ATI acquisition-
related charges of US$76 million, an impairment charge on AMD's
investment in Spansion Inc.’s common stock of US$42 million,
stock-based compensation expense of US$27 million and a tax
expense of US$27 million primarily due to the need for a
deferred tax liability related to the large tax deductions AMD
received for the amortization of goodwill from the acquisition
of ATI, which is not amortized through earnings for financial
reporting purposes, and for foreign current taxes.
AMD's cash, cash equivalents and marketable securities as of
Sept. 29, 2007 were US$1.5 billion, a decrease of US$66 million
compared to June 30, 2007 due to the repayment of its October
2006 Term Loan, offset by positive cash flows from operations of
US$223 million, net proceeds from the issuance of its 5.75%
Convertible Senior Notes due 2012 and the inclusion of the fair
market value of AMD's ownership interest in Spansion Inc. of
US$119 million in its marketable securities balance.
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and
manufactures microprocessors and other semiconductor products.
The company has a facility in Singapore. It has sales offices in
Belgium, France, Germany, the United Kingdom, Mexico and Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 14, 2007,
Standard & Poor's Ratings Services affirmed its B/Negative/--
corporate credit rating on Sunnyvale, California-based Advanced
Micro Devices Inc. At the same time, S&P assigned its 'B'
rating to the company's US$1.5 billion 5.75% senior convertible
notes due 2012, and raised the rating on the company's existing
senior unsecured debt to 'B' from 'B-', because the company no
longer has secured debt in its capital structure.
Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro
Devices Inc.'s private placement of US$1.5 billion 5.75%
convertible senior notes due 2012. Fitch also affirmed the
company's Issuer Default Rating at 'B'; and Senior unsecured
debt at 'CCC+/RR6'.
SEA CONTAINERS: Posts US$19.4MM Net Loss in Month Ended Oct. 31
---------------------------------------------------------------
Sea Containers, Ltd., delivered to the United States Bankruptcy
Court for the District of Delaware its Monthly Operating Report
for October, disclosing a shareholders' deficit of US$227.5
million as of Oct. 31, 2007, and a net loss of US$19.4 million.
Sea Containers, Ltd.
Unaudited Balance Sheet
As of October 31, 2007
Assets
Current Assets
Cash and cash equivalents US$34,820,574
Trade receivables, less allowances
for doubtful accounts 317,470
Due from related parties 719,317
Prepaid expenses and other current assets 1,443,166
------------
Total current assets 37,300,527
Fixed assets, net -
Long-term equipment sales receivable, net -
Investments in group companies 143,546,856
Intercompany receivables -
Investment in equity ownership interests 222,728,282
Other assets 3,804,260
------------
Total assets US$407,379,925
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable US$17,908,268
Accrued expenses 59,119,323
Current portion of long-term debt 172,540,013
Current portion of senior notes 385,379,664
------------
Total current liabilities 634,947,268
Total shareholders' equity (227,567,343)
------------
Total liabilities and shareholders' equity US$407,379,925
Sea Containers, Ltd.
Unaudited Statement of Operations
For the Month Ended October 31, 2007
Revenue US$2,673,200
Costs and expenses:
Operating income 162,248
Selling, general and
administrative expenses (3,047,323)
Professional fees (14,600,666)
Charges to provide against
intercompany accounts (190,746)
Impairment of investment in subsidy Co. 0
Forgiveness of intercompany debt 0
Depreciation and amortization 0
------------
Total costs and expenses (17,676,487)
------------
Gain or (Loss) on sale of assets 13,260
------------
Operating income (loss) (14,990,027)
Other income (expense)
Interest income 123,951
Foreign exchange gains or (losses) 2,076
Interest expense, net (4,700,938)
------------
Income (Loss) before taxes (19,564,938)
Income tax credit/(expense) 143,000
------------
Net (Loss) (US$19,421,938)
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP. In its schedules
filed with the Court, Sea Containers disclosed total assets of
US$62,400,718 and total liabilities of US$1,545,384,083. The
Debtors' exclusive period to file a chapter 11 plan expires on
Dec. 21, 2007. (Sea Containers Bankruptcy News, Issue No. 32;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
*********
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
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about which we report.
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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
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*********
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.
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