/raid1/www/Hosts/bankrupt/TCRAP_Public/080122.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
Tuesday, January 22, 2008, Vol. 11, No. 15
Headlines
A U S T R A L I A
ARROW ENERGY: Tipton Joint Venture Receives Reserves Upgrade
ARROW ENERGY: Changes Name to Arrow Energy Ltd.
CENTRO PROPERTIES: Shares Plummet Amid Market Uncertainty
CHRYSLER LLC: Appoints New Execs; Senior VP Cortez to Retire
FLIGHT CENTRE: Unlikely to Pursue MFS Assets, Company Says
FORTESCUE METALS: Wants Robe River Railway Open to 3rd Parties
HIH INSURANCE: Founder Claims He Did Not Transfer Assets to Wife
PSIVIDA LTD: Sells Food Science Subsidiary for AU$5.9 Million
C H I N A , H O N G K O N G & T A I W A N
ACXIOM CORP: Board Appoints John Meyer as President & CEO
BEST ADVANCER: Members Meeting Fixed for February 15
BECHTEL ENTERPRISES: Creditors' Proofs of Debt Due on Jan. 25
CHINA EASTERN: Suspends Share Trading in Hong Kong and Shanghai
CHINA EASTERN: Says Air China Proposal Incomplete
CHINA EVERBRIGHT: FY2007 Net Profit Rises 65.6% to CNY4.6 Bln.
DEEPER CHRISTIAN: Members Meeting Fixed for February 11
GATX CAPITAL: Commences Liquidation Proceedings
KINGTIME (H.K.): Appoints New Liquidator
OCEAN BRIGHT: Creditors' Proofs of Debt Due on Feb. 13
PETROLEOS DE VENEZUELA: Investing US$15.6 Billion in 2008
PRIMERA (ASIA): Members Meeting Fixed for February 11
SHIN HO CH'ENG: Commences Liquidation Proceedings
SKYBINET LIMITED: Creditors Meeting Fixed for February 14
THE WORLD ASSOCIATION: Members Meeting Fixed for February 18
TOY BIZ INTERNATIONAL: Commences Liquidation Proceedings
TRENDING INTERNATIONAL: Liquidator to Present Wind-Up Report
TYSON FOODS: Inks Supply & Sponsorship Pact with Six Flags
WEALTHY-ON: Commences Liquidation Proceedings
I N D I A
AFFILIATED COMPUTER: Tennessee Medicaid Likely to Award New Deal
AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal
GENERAL MOTORS: Outlines Turnaround Progress & 2008 Priorities
FERTILIZERS & CHEMICALS: Board to Consider Q3 Results on Jan. 24
ICICI BANK: Reports 35% Profit Increase in Qtr. Ended Dec. 31
ICICI BANK: Director Vinod Rai Resigns From Board
IFCI LTD: Net Profit Soars to INR3.19 Bil. in Qtr. Ended Dec. 31
INDUSTRIAL DEV'T BANK: Vinod Rai Leaves Director Post
SUN MICROSYSTEMS: Moody's Says MySQL Buyout Won't Affect Ratings
SUN MICROSYSTEMS: Caris & Co. Keeps Above-Average Rating on Firm
TATA MOTORS: In Talks with Dunlop India for Tire Supply
TATA POWER: Shareholders Approve Raising Addt'l Long-Term Funds
I N D O N E S I A
ALCATEL-LUCENT: Inks BRL2B Maintenance Pact with Brasil Telecom
ALCATEL-LUCENT: SA Names Andy Williams as Services Biz Chief
BANK NEGARA: Partners with IBM to Meet Customers Demands
BANK RAKYAT: To Operate Shariah-Service Unit as Stand-Alone Bank
BERLIAN LAJU: S&P Says Rating Remains on CreditWatch Negative
FOSTER WHEELER: To Supply Heat Recovery Steam Generator in Spain
GARUDA INDONESIA: To Open Direct Medan-Chennai Flight in June
GARUDA INDONESIA: Targets to Fly 22,000 Passengers From Beijing
GOODYEAR TIRE: Holders Can Convert 4% Sr. Notes Until March 31
TELKOMSEL: To Lease Telecommunication Towers to Other Operators
J A P A N
ELAN CORP: US FDA Approves TYSABRI Biologics License Application
GAP INC: Names Sabrina Simmons as Chief Financial Officer
HARMAN INTERNATIONAL: Promotes Ken Yasuda as Japan Manager
NIPPON PAPER: Net Income Lowers to JPY4.6BB for 2007 Half-Year
SANYO ELECTRIC: To Sell Mobile Phone Unit to Kyocera for JPY50BB
SANYO ELECTRIC: To Introduce Age Limit for Executives in April
SOFTBANK CORP: To Offer Discounts to Students on February 1
SOFTBANK CORP: Objects to Fiber-Optic Access Fee Charged by NTT
K O R E A
BURGER KING: Brings In Robert Perkins as Vice President
LYONDELL CHEMICAL: S&P Lowers Senior Secured Debt Rating to B
TRIGEM COMPUTER: Wants Toshiba's Prepetition Lawsuit Enjoined
M A L A Y S I A
ASPEN TECHNOLOGY: Deloitte Declines Re-Appointment as Accountant
P H I L I P P I N E S
FEDDERS CORP: Court Extends Plan Filing Deadline Until Feb. 29
FEDDERS CORP: Completes $7.5 Million Sale of Affiliate's Assets
GEOGRACE RESOURCES: Stockholders Tap 11 New Directors for 2008
S I N G A P O R E
ADVANCED MICRO: Posts US$1.7 Billion Net Loss in Fourth Quarter
BENCHMARK ELECTRONICS: Moody's Puts Ba2 Rating on US$100MM Debt
T H A I L A N D
DOLE FOOD: Units Appoint Three New Managers
FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman
* BOND PRICING: For the Week 14 January to 18 January 2008
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=================
A U S T R A L I A
=================
ARROW ENERGY: Tipton Joint Venture Receives Reserves Upgrade
------------------------------------------------------------
Arrow Energy NL, in a disclosure with the Australian Securities
Exchange, said that its Tipton West Field project has received a
substantial reserves upgrade.
Tipton Field 1P reserves have increased by 560% to 167
petajoules and 2P reserves for the Surat Basin Field increased
by 68%.
According to Arrow Energy, the reserves upgrade is predominantly
a result of development drilling and continued strong production
trends in the field.
Arrow has a 60% interest with the project, while Beach Petroleum
Ltd. has 40%.
Overall, production from Arrow's Surat basin projects continues
to increase with the current gross field production rates from
Arrow operated fields of 38 million cubic feed per day (mmcfd)
and Arrow net sales of approximately 23TJ/D. Combined Surat
production levels have increased by a further 10% in the last
two months. This performance will, in turn, lead to further
reserve upgrades.
The Tipton reserves upgrade also include Tarooms coal seam
reserves in the 2P category for the first time, which is in the
early stages of two pilots in the Tarooms. The two pilots are
currently producing a total of nearly 2 mmcfd with the rate
continuing to increase.
Arrow Chief Executive Nick Davies commented on this progress
saying that all of its Surat fields have surpassed field
production expectations. Mr. Davies said, "We have always
believed the wider spaced wells we are using in the Surat would
lead to a gradual build up to a sustainable production level for
optimal investment."
About Arrow Energy
Arrow Energy NL -- http://www.arrowenergy.com.au/-- is an
Australian company engaged in the undertaking of gas exploration
and development activities. The Company is focused on coal seam
gas exploration and production in the Surat, Clarence-Moreton
and Ipswich Basins in southeast Queensland and northern New
South Wales and the Styx Basin and Nagoorin Graben in coastal
central Queensland. Arrow Energy NL has been carrying out
exploration/appraisal drilling (over 50 wells) and has proven a
large CSG resource. The Company's projects include Kogan North,
Tipton West, Moranbah, Daandine, Dundee, Mt Lindesay, Silverdale
and Boyne River.
The Troubled Company Reporter-Asia Pacific's Distressed Bonds
Column on January 15, 2008, listed Arrow Energy's bond, with a
10.000% coupon and a March 31, 2008 maturity date, as trading at
2.56% on the AU dollar.
ARROW ENERGY: Changes Name to Arrow Energy Ltd.
-----------------------------------------------
Arrow Energy NL, in a disclosure with the Australian Securities
Exchange, says that as of January 18, it changed to a company
limited by shares and, accordingly, changed its name to Arrow
Energy Ltd.
Arrow Energy Ltd. -- http://www.arrowenergy.com.au/-- is an
Australian company engaged in the undertaking of gas exploration
and development activities. The Company is focused on coal seam
gas exploration and production in the Surat, Clarence-Moreton
and Ipswich Basins in southeast Queensland and northern New
South Wales and the Styx Basin and Nagoorin Graben in coastal
central Queensland. Arrow Energy Ltd. has been carrying out
exploration/appraisal drilling (over 50 wells) and has proven a
large CSG resource. The Company's projects include Kogan North,
Tipton West, Moranbah, Daandine, Dundee, Mt Lindesay, Silverdale
and Boyne River.
The Troubled Company Reporter-Asia Pacific's Distressed Bonds
Column on January 15, 2008, listed Arrow Energy's bond, with a
10.000% coupon and a March 31, 2008 maturity date, as trading at
2.56% on the AU dollar.
CENTRO PROPERTIES: Shares Plummet Amid Market Uncertainty
---------------------------------------------------------
Securities in Centro Properties Group continued to dive
Wednesday morning as the market further digested revelations of
a new chief executive officer and a bid for more time to repay
its lenders, The Age reports.
According to The Age, Centro shares had lost seven cents, or
11.7%, to 53 cents, by 10:55 a.m. yesterday, while its listed
retail trust, Centro Retail Group, had lost three cents, or
9.23%, to 29.5 cents.
The report recounts that Centro's shares have lost about 90% of
their market value since mid-December 2007 when the firm first
revealed that it was having trouble financing AU$3.9 billion in
maturing debt.
Centro's efforts at overseas expansion left it exposed to the
global credit crunch, and the group now teeters at the brink of
collapse, The Age notes.
As reported by the Troubled Company Reporter-Asia Pacific on
Jan. 16, Centro Properties' chief executive officer, Andrew
Scott, stepped down from his post and was replaced by Glenn
Rufrano, who heads Centro's business in the United States. In
addition, Centro asked its lenders to extend a Feb. 15 deadline
to refinance AU$3.9 billion (US$3.5 billion) of debt.
The Age cites Goldman Sachs JBWere analysts as saying that the
best outcome for Centro would be to sell substantial equity
interests where natural synergies could be realized. The
analysts said in a statement that these assets are Centro
Australia Wholesale Fund, Direct Property Fund, CMCS Australia
and The MCS business, which, in the firm's estimates, would
bring approximately AU$2.3 billion.
It is believed that the big four Australian banks hold a
combined AU$1 billion in unsecured Centro loans and that U.S.
investment bank JPMorgan is owed more than AU$2 billion after it
played lead arranger for the massive loan to buy New Plan Excel
Realty Trust, The Age says. Moreover, Centro owes U.S.
investors US$450 million in private placement debt and rejected
claims that it might have defaulted on some of the notes.
Centro added that the lenders are currently considering
extending these arrangements beyond February 15.
Centro Properties Group -- http://www.centro.com.au/-- is a
Melbourne, Australia-based company that comprises the operations
of Centro Property 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, Heritage Property Investment Trust and
Galileo Funds Management, as well as assumed full ownership of
its United States management operations.
The Troubled Company Reporter-Asia Pacific reported on Jan. 4,
2008, that Standard & Poor's Ratings Services lowered its issuer
credit, senior-unsecured debt and preferred stock ratings to
'CCC+' with negative implications reflecting the potential of
the group's assets to be sold in softening market
conditions, particularly in the U.S.
CHRYSLER LLC: Appoints New Execs; Senior VP Cortez to Retire
------------------------------------------------------------
Chrysler LLC announced organizational changes and appointments
in Mopar(R) and Global Alliance Operations. These moves will
take immediate effect following Christine K. Cortez's
announcement of her intent to retire from her position as Senior
Vice President - Global Service and Parts.
"Chrysler is grateful to Chris for her 31 years of dedicated
service and many contributions," said Chrysler Vice Chairman and
President James E. Press. "She leaves with our most sincere
well wishes."
Simon Boag has been appointed as President - Mopar, Global
Service and Parts, reporting to Mr. Press. Mr. Boag will be
responsible for Global Service, International Service and Parts,
Global Parts Marketing, Service Contracts and Global Parts
Supply Chain Management. Mr.Boag was recently appointed
Executive Vice President - Global Alliance Operations.
"As a result of Chris' decision to retire, Simon will
immediately assume this critical new role," said Mr. Press.
"Simon's strong background in manufacturing operations and
procurement is a great fit with the needs of Mopar. It's
important that he continue our focus on the customer and this
incredibly strong brand."
Scott R. Garberding replaces Mr. Boag and has been appointed
Vice President - Global Alliance Operations, reporting to
Chrysler Vice Chairman and President Thomas W. LaSorda. Mr.
Garberding will lead the operations side of Chrysler's
automotive alliances designed to expand the Company's global
presence. Mr. Garberding will also work closely with Michael
Manley, Executive Vice President - International Sales,
Marketing and Business Development. Mr. Garberding most
recently served as Vice President - Supplier Quality.
About Chrysler LLC
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.
FLIGHT CENTRE: Unlikely to Pursue MFS Assets, Company Says
----------------------------------------------------------
Flight Centre Ltd. says that it is unlikely to pursue acquiring
the travel assets held by MFS Ltd, the Australian Associated
Press reports.
According to the Sydney Morning Herald, Flight Centre said that
it was focused on opportunities that would create greater value
for shareholders.
The company's clarification, according to Shaw Stockbroking,
follows speculation surrounding the funds manager's possible
sale of its Stella tourism business.
"Flight Centre has historically been reasonably disciplined in
applying its acquisition strategy and has only pursued
businesses that could be acquired for the right prices to create
significant shareholder value," SMH quotes Flight Centre's
managing director, Graham Turner, as saying.
"For various reasons at this stage, we do not believe at this
time that the MFS travel assets represent an attractive
acquisition opportunity," Mr. Turner added.
MFS according to press reports, said it had received interest
from a number of parties about taking an interest in its tourism
business.
About Flight Centre
Headquartered at Brisbane, in Queensland, Australia, Flight
Centre Ltd. -- http://www.flightcentre.com/-- is an Australian
owned and New Zealand-run independent retail travel group,
guaranteeing the lowest prices on all airfares. It had a
turnover in excess of $3 billion worldwide and 18 years of
consecutive profits until its shares plunged more than 8%
following the announcement of its first ever annual profit
decline.
The company, which in the past has reported spectacular results,
hit the wall in 2004-05 with two profit downgrades. Flight
Centre announced 2004-05 profit of AU$67.91 million, down 17%
from the previous period. Embattled Flight Centre then launched
a restructuring drive aimed at saving costs and began working
towards a turnaround in 2005/06 by focusing on ongoing
development of its four main networks. It has implemented
changes to its customer relations programs, following a
comprehensive review of its other company initiatives.
FORTESCUE METALS: Wants Robe River Railway Open to 3rd Parties
--------------------------------------------------------------
The Pilbara Infrastructure Pty Ltd, a wholly owned subsidiary of
Fortescue Metals Group Ltd, has lodged an application with the
National Competition Council under Part IIIA of the Trade
Practices Act 1974 seeking to declare Rio Tinto’s "Robe River
Railway" which runs from Rio’s Mesa J (Deepdale) mine site to
Rio’s port at Cape Lambert.
The application to declare the Robe River Railway comes two
months after TPI lodged similar declaration applications over
Rio’s Hamersley Iron Railway Network and BHP Billiton’s
Goldsworthy Railway.
"Fortescue is seeking to open the tremendous transport logistic
synergies available in the Pilbara to all Australian mining
companies," said Fortescue’s Executive Director Graeme Rowley.
"There are numerous stranded iron ore deposits in the Pilbara
which alone may not be of sufficient scale to support their own
infrastructure yet could become viable with access to existing
infrastructure such as the Robe River Railway," Mr. Rowley
added.
About Fortescue Metals
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
* * *
Fortescue reported a net loss for the past three fiscal years.
Net loss for the year ended June 30, 2007, was AU$68.43 million,
while net losses for FY2006 was AU$2.15 million and for FY2005
was AU$4.52 million.
HIH INSURANCE: Founder Claims He Did Not Transfer Assets to Wife
----------------------------------------------------------------
HIH Insurance Ltd. founder Ray Williams, through a friend, made
known to the public that he did not transfer assets into his
wife's name within the period leading to the AU$5.2-billion
collapse of the insurance company in March 2001, reports Glenda
Korporaal of The Australian.
Mr. William's long-time friend, Father Dave Smith, of the Holy
Trinity Anglican Church, spoke to The Australian after receiving
a faxed list of points from Mr. Williams who was released on
January 15 after two years and nine months in jail.
The Australian says that according to Fr. Smith, Mr. Williams
said he and wife Rita were living in a rented house as her
AU$3.1-million mansion in the Sydney harborside suburb of
Seaforth -- bought in 2003 -- was heavily mortgaged and had to
be rented out.
Fr. Smith, notes The Australian, said that Mr. Williams "didn't
have a clue it was falling over. . ." and that "he lost
everything and bought HIH shares not long before it crashed" and
added that Mr. Williams had no assets of his own.
Mr. Smith is quoted by The Australian as saying, "Ray is most
definitely bankrupt. He doesn't have any money squirreled
away."
The report says that Mr. Williams also hit out at Rodney Adler,
pointing out that when HIH bought Mr. Adler's FAI in 1998, the
rival insurer was worthless.
In the fax to Fr. Smith, Mr. Williams said that Mr. Adler
benefited from HIH purchasing FAI, which was worthless, as he
took 50% cash and 50% HIH shares, notes the report.
On October 17, 2007, Troubled Company Reporter-Asia Pacific
reported that Mr. Adler was released on parole after already
serving two years and six months of his four-and-a-half year
sentence.
About HIH Insurance
HIH Insurance Limited -- http://www.hih.com.au/-- the holding
company of the HIH Group, was a publicly listed company in
Australia. Prior to its collapse, the HIH Group was known as
the second largest general insurer in Australia, and had
operations in many other countries.
On March 15, 2001, the HIH Group failed, with a deficiency now
believed to be between AU$3.6 billion and AU$5.3 billion.
Provisional liquidators were appointed to HIH Insurance Limited
and many of its subsidiaries. Other insolvency practitioners
were appointed to various group companies incorporated in other
parts of the world. In August 2001, the major Australian
companies in the HIH Group were placed into liquidation.
On March 29, 2006, meetings of the creditors of the eight
companies in the HIH Insurance Group approved the Australian
Schemes of Arrangement for those companies. Moreover, separate
meetings of creditors of four HIH Insurance Group companies with
branches in the United Kingdom approved English Schemes for
those companies.
HIH's collapse is known to be the nation's biggest corporate
failure.
PSIVIDA LTD: Sells Food Science Subsidiary for AU$5.9 Million
----------------------------------------------------------------
pSivida Ltd. has sold its food science subsidiary pSiNutria to
Intrinsiq Materials Cayman Ltd. for AU$5.9 million, WA Business
reports.
WA Business relates that under the deal, pSivida, which
continues to focus operations on its core technologies, has sold
the licensed intellectual property and other assets concerned
with nutraceuticals and food science applications of
BioSiliconTM, with UK-based Intrinsiq obliged to make a series
of payments totaling AU$1.39 million in the first year following
the close of the transaction.
Once the license is in place, Intrinsiq, according to the
report, is obligated to pay royalties with minimum payments of
AU$4.49 million over approximately the next six years,
AU$569,000 of which will be payable 18 months after the closing.
pSivida, states WA Business, retains all rights outside the food
science area.
According to pSivida Managing Director Paul Ashton, the
pSiNutria sale would advance the BioSiliconTM food program
whilst further reducing its burn rate.
pSiNutria, adds WA Business, was established in December 2005 to
develop applications of the company's BioSiliconTM technology
for the food industry.
About pSivida Ltd.
pSivida Limited -- http://www.psivida.com/-- is an Australian
company existing pursuant to the Australian Corporations Act
2001 with shares listed on the Australian Securities Exchange,
the NASDAQ Global Market, the Frankfurt Stock Exchange, and
London's OFEX International Market Service. The company is
committed to biomedical applications of nano-technology and has
as its core focus the development and commercialization of drug
delivery products in the healthcare sector, initially in
ophthalmology and oncology.
The company's corporate headquarters is located at:
Level 12 BGC Centre
28 The Esplanade
Perth WA 6000, Australia
Tel No. (+61 8) 9226 5099
The legal entity that became pSivida was incorporated as the
Sumich Group Ltd in April 1987. The Sumich Group operated a
business that was placed into administration or receivership in
1998. pSivida was subsequently formed on December 1, 2000, upon
entering into a court-approved arrangement with Sumich Group's
creditors, which fully extinguished all prior liabilities as of
that time. Subsequently, the company appointed new directors
and officers and re-listed on the Australian Securities Exchange
as pSivida. The company was then recapitalized through a
placement to investors of 9.3 million ordinary shares at AU$0.30
per share, raising AU$2.79 million.
pSivida revealed that it has not made substantial divestitures
in the past three fiscal years through the present.
Going Concern Doubt
After auditing the company's consolidated balance sheet as of
June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered
Accountants, said that as of Oct. 31, 2006, pSivida has
determined there may be a risk of default associated with
maintaining the US$1.5 million minimum cash balance. In the
event of a default, the noteholder is entitled to call the full
value of the liability. This risk of default, together with the
company's recurring losses from operations and negative cash
flows from operations, raise substantial doubt about its ability
to continue as a going concern.
Deloitte notes that the financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.
================================================
C H I N A , H O N G K O N G & T A I W A N
================================================
ACXIOM CORP: Board Appoints John Meyer as President & CEO
---------------------------------------------------------
Acxiom(R) Corporation's Board of Directors has named John Meyer
to serve as the company's chief executive officer and president.
Mr. Meyer has been president of the Global Services group of
Alcatel-Lucent since 2003. Prior to joining Lucent, Mr. Meyer
spent almost 20 years in a number of high-profile positions at
EDS that included Chairman of the Europe, Middle East and Africa
Operating Team, President of Diversified Financial Services and
Credit Services Divisions, and CIO for the company's GMAC
business. Mr. Meyer's global, multi-industry experience at EDS
was marked by numerous successes, including doubling revenue in
EMEA from US$3.6 billion to US$7.2 billion in four years.
Before entering the business world, Mr. Meyer served as a flight
commander and was selected as a captain in the U.S. Air Force.
Michael Durham, Acxiom's non-executive chairman, said the board
unanimously selected Meyer because of his demonstrated strong
leadership skills, his broad experience in the information
technology industry and his history of success in building
shareholder value.
"Since October, the board has been focused on the search for a
new leader in its efforts to return Acxiom to sustained
success," Mr. Durham said. "John commanded our attention
because of his strong execution skills, his ability to lead
high-performing teams and his track record in driving
shareholder value. He has demonstrated these skills at both
Alcatel-Lucent and EDS as he ran businesses that are
substantially larger and more complex than Acxiom. As we
learned more about John, we were equally impressed by his focus
on developing internal talent while reaching outside for new
skills. His straightforward style and integrity impressed us as
it has his employees, clients and investors in his previous
roles. John's track record has established him as one of the
most accomplished services leaders in the technology industry."
Mr. Meyer said that "Acxiom's position as the leading provider
of offline and online marketing services is the envy of the
market. Acxiom's proud history of innovation and delivery
excellence has created value for its clients for decades. It is
an honor to join the company and do all I can to build on its
successes. I look forward to working with our associates to
create value for our clients and shareholders."
Mr. Meyer will join Acxiom on Feb. 4. He also will serve as a
member of Acxiom's board of directors. He succeeds Charles
Morgan, a 35-year company veteran who has been Chairman and
Chief Executive Officer since 1975. Mr. Morgan, who announced
his retirement in October, will remain a consultant to the
company through 2010.
"John's go-to-market, operational and technology skills in
leading a large services business are impressive," Mr. Morgan
said. "I leave Acxiom in the capable hands of a leader who has
a strong client focus and will continue to bring out the best in
the teams he leads."
Mr. Meyer will be introduced to the financial analyst community
during the company's third-quarter earnings call at 4:30 p.m.
CST Jan. 23.
Mr. Meyer, his wife Victoria and their three children live in
Dallas, Texas and will be moving to Little Rock, Acxiom's
headquarters, as soon as practical.
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brazil, Argentina and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2007, Moody's Investors Service has confirmed Acxiom
Corp.'s Ba2 corporate family rating and assigned a negative
rating outlook, concluding a review for possible downgrade
initiated on May 17, 2007, following the company's announcement
that it had entered into a definitive agreement to be acquired
by Silver Lake and ValueAct Capital for US$3.0 billion.
BEST ADVANCER: Members Meeting Fixed for February 15
----------------------------------------------------
The members of Best Advancer Limited will have their final
general meeting on February 15, 2008, at Flat C-1, 5th Floor of
Dragon Court, 6 Dragon Terrace, Causeway Bay, in Hong Kong to
hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is Yan Renwill.
BECHTEL ENTERPRISES: Creditors' Proofs of Debt Due on Jan. 25
-------------------------------------------------------------
The creditors of Bechtel Enterprises (Hong Kong) Limited are
required to file their proofs of debt by January 15, 2008, for
them to be included in the company's dividend distribution.
The company's liquidator is:
Jeffrey Stewart Roehl
5275 Westview Drive
Frederick, MD 21703
USA
CHINA EASTERN: Suspends Share Trading in Hong Kong and Shanghai
---------------------------------------------------------------
Shares in China Eastern Airlines were suspended from trading in
Hong Kong and Shanghai on Monday as Air China's parent company
-- China National Aviation Corp -- prepares to announce a bid,
Agence France Presse reports, citing the two cities' stock
exchanges.
AFP notes that trading in China Eastern's shares was halted in
Shanghai for one hour until 10:30 a.m. (0230 GMT), while Hong
Kong trading was suspended indefinitely.
No reason was given for the suspension of the shares, the report
says.
The airline is reportedly studying a proposal by CNAC for
capital and operational tie-ups, AFP relates.
Reuters, however, cites China Eastern group as saying that it
could not respond to the proposed partnership because the
proposal was incomplete and lacked legal validity.
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.
CHINA EASTERN: Says Air China Proposal Incomplete
-------------------------------------------------
The China Eastern Airlines group said it could not respond to a
partnership proposal launched by Air China because the proposal
was incomplete and lacked legal validity, Reuters reports.
Reuters cites a brief China Eastern statement quoted by the
official Shanghai Securities News on Monday that says the
proposal lacked details and did not carry the authorization of
Air China's board of directors. China Eastern contended that
the issue is important for stock market investors, thus Air
China needs to make a formal, complete proposal.
Air China's parent, China National Aviation Corp, on Friday
proposed a "strategic partnership" that it said could bring
China Eastern a cash injection of US$1.9 billion and involve a
broad tie-up between the two airlines' operations, Reuters
recalls. CNAC suggested that it and the China Eastern group buy
a placement of 2.98 billion new Hong Kong-listed H shares in
China Eastern, while the airlines would consolidate their cargo
operations and cooperate in areas such as sharing flights,
frequent flyer programmes, maintenance and ground service, the
report adds.
CNAC's proposal was made 10 days after China Eastern's minority
shareholders rejected Singapore Airlines' and Temasek Holding
Pte Ltd's bid of HK$3.80 per share, or HK$7.2 billion
(US$923 million) in aggregate, for a 24% holding in China
Eastern.
As reported by the Troubled Company Reporter-Asia Pacific on
Jan. 10, 2008, the rejection came after CNAC pledged an offer of
at least 32% more than Singapore Air's, or at least HK$5.00 a
share.
However, after the vote, China Eastern Chairman Li Fenghua
emphasized that he would not consider Air China as a strategic
investor, adding that a tie-up between them would not benefit
China Eastern.
Air China Denies Involvement in Acquisition Talks
According to a separate Reuters report, Air China said it was
not involved in any acquisition talks with China Eastern.
The report notes that shares of Air China hit an intra-day low
of HK$8.70 before recovering to HK$8.81, down 10.8% in late
Monday trade, on fears that it might be roped in to help
bankroll an expensive deal.
About China Eastern
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.
CHINA EVERBRIGHT: FY2007 Net Profit Rises 65.6% to CNY4.6 Bln.
--------------------------------------------------------------
China Everbright Bank's net profit for FY2007 rose 65.6% year-
on-year to CNY4.6 billion (US$582 million), China Knowledge
relates.
AFX News Limited also notes that China Everbright's net interest
income in 2007 stood at CNY17.36 billion, up 37.3% year-on-year.
Meanwhile, China Knowledge says, the lender's outstanding loans
amounted to CNY418 billion, 18.66% higher than the previous
year, while its outstanding deposits grew 1766% to
CNY551 billion by the end of 2007. The bank has generated
CNY1.41 billion from its intermediary business in 2007, up 7.31%
year-on-year.
AFX cites China Everbright Chairman Tang Shuangning as saying
that the bank plans to complete an initial public offering in
2008. Moreover, China Knowledge notes that the bank was
preparing for its dual listing both in Shanghai and Hong Kong.
China Knowledge recalls that China Everbright has received
CNY20-billion capital injection from Central Huijin, China's
central bank's investment arm, which helped the bank raise its
capital adequacy rate to 7.11% at the end of 2007. However the
bank's capital adequacy rate is still lower than the regulatory
minimum of 8% for domestic listing.
Headquartered in Beijing, China, China Everbright Bank Company
-- http://www.cebbank.com/-- is the first state-owned
commercial bank with shares held by international financial
institutions.
Everbright Bank is 21%-owned by Hong Kong-listed China
Everbright Ltd, an Everbright Group unit. The Asian Development
Bank is the only foreign stakeholder, with 2%.
The Troubled Company Reporter-Asia Pacific stated on Aug. 9,
2007, that China approved China Everbright Bank's plan for
financial restructuring, paving the way for a capital injection
and eventual listing.
China Everbright Bank is saddled with debts partly because of
its takeover of the troubled China Investment Bank in the late
1990s.
DEEPER CHRISTIAN: Members Meeting Fixed for February 11
-------------------------------------------------------
The members of Deeper Christian Life Ministry (H.K.) Limited
will have their final general meeting on February 11, 2008, at
unit 805-6, 8th Floor of the Swire & Maclaine House, 19-23
Austin Avenue, Tsimshatsui, in Kowloon, Hong Kong, to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is Kwok Lai Ngor.
GATX CAPITAL: Commences Liquidation Proceedings
-----------------------------------------------
Gatx Capital Limited commenced liquidation proceedings on
December 28, 2007.
The company's liquidators are:
Natalia K M Seng
Susan Y H Lo
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
KINGTIME (H.K.): Appoints New Liquidator
---------------------------------------
The members of Kingtime (H.K.) Limited appointed Chan Shui Kin
as liquidator for the company.
The Liquidator can be reached at:
Chan Shui Kin
18th Floor H
Tower 13, Ocean Shores
88 O King Road
New Territories, Hong Kong
OCEAN BRIGHT: Creditors' Proofs of Debt Due on Feb. 13
------------------------------------------------------
The creditors of Ocean Bright Technology Limited are required to
file their proofs of debt by February 13, 2008, for them to be
included in the company's dividend distribution.
The company commenced liquidation proceeding on January 11.
The company's liquidator is:
Ying Yuk Chu
21st Floor, Fee Tat Commercial Centre
No. 613 Nathan Road
Kowloon, Hong Kong
PETROLEOS DE VENEZUELA: Investing US$15.6 Billion in 2008
---------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA will
invest US$15.6 billion to consolidate the "Sowing the Oil Plan"
and to guarantee the achievement of output goals for the year
2012, Agencia Bolivariana de Noticias reports, citing energy and
oil minister Rafael Ramirez.
The US$15.6 billion will make it possible to boost Venezuela's
oil production to 5.8 million barrels in five years, Minister
Ramirez told Agencia Boliviana. The amount represents a leap
forward regarding the investments Petroleos de Venezuela had
made. Petroleos de Venezuela had invested no more than US$3.3
billion in operations up to the year 2002. That amount has
increased due to the implementation of the "Sowing the Oil
Plan." Petroleos de Venezuela's investment in 2006 was US$5.8
billion. Last year it was US$10 billion.
Minister Ramirez emphasized to Agencia Bolivariana the need to
study Petroleos de Venezuela's processes by following an
evaluation proposed by President Hugo Chavez to face the
challenges of 2008:
-- revision,
-- rectification, and
-- re-boosting the revolution.
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.
* * *
In March 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.
PRIMERA (ASIA): Members Meeting Fixed for February 11
-----------------------------------------------------
The members of Primera (Asia) Limited will have their final
general meeting on February 11, 2008, at 3806 Central Plaza, 18
Harbour Road, in Wanchai, Hong Kong, to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The company's liquidators are Andrew C.C. MA and Felix K.L. Lee.
SHIN HO CH'ENG: Commences Liquidation Proceedings
------------------------------------------------
Shin Ho Ch'eng Development Limited commenced liquidation
proceedings on December 31, 2007.
The company's liquidators are:
Messrs. Lai Kar Yan (Derek)
Darach E. haughey
35th Floor, One pacific Place
88 Queensway
Hong Kong
SKYBINET LIMITED: Creditors Meeting Fixed for February 14
---------------------------------------------------------
The members of Skybinet Limited will have their final general
meeting on February 14, 2008, at Room 1308-9 of the Cosco Tower,
183 Queen's Road, in Central, Hong Kong, to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidators is Yeung Wing On Adrian.
THE WORLD ASSOCIATION: Members Meeting Fixed for February 18
------------------------------------------------------------
The members of The World Association for Chinese Church Music
Limited will have their final general meeting on February 18,
2008, at Room 1701, 17th Floor of the Shui On Centre, 6-8
Harbour Road, in Wanchai, Hong Kong to hear the liquidator's
report on the company's wind-up proceedings and property
disposal.
The company's liquidators is Yeung Pak Lun David.
TOY BIZ INTERNATIONAL: Commences Liquidation Proceedings
--------------------------------------------------------
Toy Biz International Limited commenced liquidation proceedings
on December 28, 2007.
The company's liquidators are:
Natalia K M Seng
Susan Y H Lo
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
TRENDING INTERNATIONAL: Liquidator to Present Wind-Up Report
------------------------------------------------------------
The members of Trending International Limited will have their
final general meeting on February 15, 2008, at 3806 Central
Plaza, 18 Harbour Road, in Wanchai, Hong Kong, to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is Chui Soo Ching, Katherine.
TYSON FOODS: Inks Supply & Sponsorship Pact with Six Flags
----------------------------------------------------------
Tyson Foods, Inc., has reached a supply and sponsorship
agreement with Six Flags, Inc.
Under the agreement, Tyson Foods will become a Six Flags
Corporate Alliance partner and Tyson chicken will become the
Official Chicken of Six Flags. In addition, the two companies
will collaborate on a number of marketing and advertising
initiatives.
The agreement makes Tyson Foods, the exclusive chicken supplier
for all United States Six Flags parks and includes exclusive
product placement on menu boards wherever Tyson products are
sold, in-park signage, billboards and additional high-impact
messaging via the Six Flags Media Networks.
"Moms trust Tyson products and they trust Six Flags," said Six
Flags Executive Vice President of Corporate Alliances, Lou
Koskovolis. "Millions of families come to our parks every
summer expecting industry leading attractions and friendly guest
service; now when they dine in our restaurants, they'll
immediately identify the Tyson brand for its own superior
qualities. We're delighted that Tyson recognizes the Six Flags
platform as a unique opportunity to connect with their key
consumers."
"We want to be where families live, work and play," said Tyson
Senior Vice President of Food Service, Randy Smith. "Six Flags
entertains millions of visitors every year and now those
visitors can experience the same Tyson chicken they cook at home
for their families at a Six Flags theme park. We're delighted
to be partnering with a brand that resonates so strongly with
Moms and kids."
About Six Flags Inc.
Six Flags, Inc. is the world's largest regional theme park
company with 21 parks across the U.S., Mexico and Canada. Since
1961, Six Flags has provided world-class thrilling entertainment
for millions of families. Six Flags, Inc. is a publicly traded
corporation (NYSE: SIX) headquartered in New York City.
About Tyson Foods, Inc.
Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN)
-- http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork. The company produces a wide variety of
protein-based and prepared food products, which are marketed
under the "Powered by Tyson(TM)" strategy.
The company has operations in China, Japan, Singapore, South
Korea, and Taiwan. In Latin America, Tyson Foods has operations
in Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods
Inc.'s ratings, including its Ba1 corporate family rating and
Ba1 probability of default rating. Moody's said the rating
outlook is negative.
WEALTHY-ON: Commences Liquidation Proceedings
---------------------------------------------
Wealthy-On (Hong Kong) Limited commenced liquidation proceedings
on January 9, 2008.
The company's liquidator is:
Yeung Kin Fuk, Cangi
21st Floor
Fee Tat Commercial Centre
No. 613 Nathan Road
Kowloon, Hong Kong
=========
I N D I A
=========
AFFILIATED COMPUTER: Tennessee Medicaid Likely to Award New Deal
----------------------------------------------------------------
Affiliated Computer Services, Inc., has announced the Tennessee
Bureau of TennCare's intent to award a new contract for the
TennCare Management Information System. The proposed contract
has a length of five years and an evaluated total value of
US$156 million, and must be negotiated and executed prior to
Affiliated Computer commencing operations.
The proposed contract calls for Affiliated Computer to assume
responsibility for the current TennCare Management Information
System used by the state for the management of its Medicaid
program. In addition to the takeover, the company will be
responsible for data management, as well as ongoing systems
modifications and day-to-day operations. The company currently
supports Medicaid programs in 13 states and the District of
Columbia, in addition to the proposed contract with Tennessee.
Affiliated Computer will also assess current TennCare business
processes and collaboratively work with TennCare in making
business process improvement recommendations. Additionally, it
will be performing multiple enhancement projects, including the
development of an enterprise Project Management Office and
several other projects that will enable TennCare to leverage
technology in the most effective manner.
"Tennessee has been a leader in Medicaid Managed Care and is
looking to ACS' expertise and innovation to continue to advance
their program and keep TennCare as one of the premier Medicaid
programs in the country," said ACS senior vice president and
managing director, Government Healthcare Solutions, Christopher
T. Deelsnyder. "In taking over the system, we are committed to
our client's success and to building the enhancements that will
benefit all Tennesseans enrolled in the TennCare program."
TennCare is Tennessee's managed care Medicaid program, serving
1.2 million Tennesseans through a network of contracted, managed
care companies. The core of its population consists of
Medicaid-eligible people, most of whom are low-income children
and families, pregnant women, disabled people, women needing
treatment for breast or cervical cancer, or persons requiring
care in a nursing facility.
"Using Tennessee's competitive bid process to help ensure
TennCare vendors bring added-value at competitive prices to our
state is a cornerstone of our program's operational success,"
said Bureau of TennCare deputy commissioner, Darin Gordon.
"TennCare looks forward to working with ACS as they assume their
contracted responsibilities for an integral part of our day-to-
day operations."
Affiliated Computer is partnering with Zycron, a Nashville-based
minority-owned information technology staffing and outsourcing
company. "Zycron is excited to partner with ACS in supporting
the state in meeting TennCare objectives," said Zycron Chief
Executive Officer, Darrell Freeman. "Zycron's strong presence
in the IT industry coupled with ACS' international profile is
the ideal solution for the state of Tennessee."
About Affiliated Computer Services
Headquartered in Dallas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.acs-inc.com/-- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries. The company has global operations in
Brazil, China, Dominican Republic, India, Guatemala, Ireland,
Philippines, Poland, and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2008, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit rating on Dallas, Texas-based Affiliated
Computer Services Inc., and removed it from CreditWatch, where
it had been placed with negative implications on March 20, 2007.
S&P said the outlook is negative.
AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal
----------------------------------------------------------------
Affiliated Computer Services, Inc. has been awarded a seven-
year, US$130 million contract to provide information technology
outsourcing services for Allergan, Inc., a premier, global
multi-specialty healthcare company.
Under the terms of the contract, Affiliated Computer will supply
comprehensive infrastructure services, including data center
operations, network monitoring and management, and end-user
support services. The ACS-designed solution will provide the
scale necessary to meet Allergan's growth, as well as access to
new technology to support its unique industry needs.
"This key relationship further expands our presence in the
pharmaceutical industry and allows us to develop and strengthen
our industry-specific competencies," said ACS Commercial
Solutions group president, Ann Vezina. "Our partnership will
enable Allergan to focus on its global core business operations
as the company grows and help meet Allergan's need for advanced
technological capabilities."
Along with comprehensive information technology outsourcing
services, the company will implement an innovative platform that
utilizes a network connection to store important data online,
provide additional data security, and more reliably restore
backup data. The solution replicates backup data directly to
the disaster recovery site, thereby reducing business recovery
time and incidence of data loss by eliminating off-site data
handling.
Allergan's Chief Information Officer, Sue-Jean Lin said, "With
our many innovative products, we operate in a wide range of
global, high-growth markets. We needed a strategic partner who
could not only support our market-leading positions, but help us
meet the challenges of continued expansion. ACS has the
technology and expertise to meet our growth needs, and their
dedication to quality service makes them a strong cultural fit
as well."
About Allergan
Founded in 1950, Allergan, Inc. (NYSE: AGN), with headquarters
in Irvine, California, is a multi-specialty health care company
that discovers, develops and commercializes innovative
pharmaceuticals, biologics and medical devices that enable
people to live life to its greatest potential -- to see more
clearly, move more freely, express themselves more fully. The
Company employs more than 7,500 people worldwide and operates
state-of-the-art R&D facilities and world-class manufacturing
plants. In addition to its discovery-to-development research
organization, Allergan has global marketing and sales
capabilities with a presence in more than 100 countries.
About Affiliated Computer Services
Headquartered in Dallas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.acs-inc.com/-- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries. The company has global operations in
Brazil, China, Dominican Republic, India, Guatemala, Ireland,
Philippines, Poland, and Singapore.
* * *
Affiliated Computer Services Inc. continues to carry Standard &
Poor's Ratings Services' 'BB' corporate credit rating with a
negative outlook.
GENERAL MOTORS: Outlines Turnaround Progress & 2008 Priorities
--------------------------------------------------------------
General Motors Corp. Chairman and CEO Rick Wagoner and Vice
Chairman and CFO Fritz Henderson spoke to automotive analysts at
a GM conference on Jan. 17, 2008, giving detailed reviews of the
company's turnaround progress, outlining the automaker's
priorities for the year and providing a preview of improvement
opportunities for 2010 and beyond.
"We're delivering on the turnaround plan we established in 2005,
and have exceeded expectations on virtually all counts," Mr.
Wagoner said. "We've set a strong foundation that we can truly
build on. We're encouraged by our progress in revitalizing our
product portfolio, strengthening our brands, reducing structural
cost and growing the business globally. At the same time, it's
clear that we'll face some challenging headwinds in 2008.
"To continue driving the company's transformation, we'll remain
steadfast in our efforts to introduce great cars and trucks and
new advanced propulsion technologies, take full advantage of
growth markets around the world, and accelerate our efforts to
reduce structural costs to even more competitive levels in North
America," Mr. Wagoner added.
Turnaround Progress
Since introducing its North America turnaround plan in 2005, GM
has delivered significant progress in its massive restructuring,
including:
a) Product excellence
Dramatically improved vehicle design and performance is
gaining broad recognition, demonstrated by robust sales of
recently launched vehicles and numerous industry awards,
including 2008 North America Car of the Year for the
Chevrolet Malibu, 2008 Motor Trend Car of the Year for the
Cadillac CTS, and 2007 North America Car and Truck of the
Year awards for the Saturn Aura and Chevrolet Silverado;
b) Revitalize the sales and marketing strategy
The company has fundamentally changed its "go to market"
approach, resulting in stronger brands, re-alignment of its
brand distribution channels, stabilized retail market share,
significant reductions in daily rental sales and higher
average transaction prices;
c) Intensify the focus on cost and quality
GM reduced annual structural cost in North America from 2005
to 2007 by US$9 billion, driven by the 2005 hourly healthcare
agreement, revisions to U.S. salaried healthcare and pension
programs, capacity reduction actions, special attrition
programs for 34,000 hourly employees, and efficiencies
achieved in other activities. Significant improvements also
continue to be made in vehicle quality, as measured by both
internal and industry metrics;
d) Address healthcare/legacy cost burden
Reflecting the impact of historical agreements with the
United Auto Workers union and several other key initiatives,
GM anticipates that its spending on U.S. hourly and salaried
pension and healthcare will be reduced from an average of
US$7 billion per year over the last 15 years, to
approximately US$1 billion per year beginning in 2010.
Despite continued pressures in the German market, GM has also
made significant progress in its Europe operations, driven by
strong new products, successful implementation of its multi-
brand strategy, especially the rapid growth of the Chevrolet
brand, which contributed to record GME unit sales of over 2
million in 2007. Rapid expansion in Russia and Eastern Europe,
and further structural cost reductions have also contributed to
the improvements.
GM's total automotive results have demonstrated strong progress
since 2005, marked by significant improvements in both adjusted
net income and adjusted operating cash flow through the first
three quarters of 2007. GM continues to have strong liquidity,
with 2007 year-end gross liquidity estimated to be more than
US$27 billion, up from US$20.4 billion at year-end 2005.
2008 Outlook
Acknowledging headwinds facing the industry, including weak U.S.
auto industry sales volumes, high fuel prices, high commodity
and steel prices, and mounting regulatory requirements, Mr.
Wagoner outlined the following focus areas for 2008 designed to
continue the momentum and achieve improved financial results:
-- Continue to execute great products;
-- Build strong brands and distribution channels;
-- Execute additional cost reduction initiatives;
-- Take full advantage of growth in emerging markets;
-- Build GM's advanced propulsion leadership position; and
-- Maximize the benefits of running the business globally.
For 2008, GM projects global industry volume to reach a record
high of approximately 73 million units, up from about 71 million
in 2007, with growth in Asia Pacific, Latin America, Africa and
the Middle East and Europe. GM anticipates U.S. industry sales
will likely be in the low 16-million range, reflecting
continuing high fuel prices and sub-par consumer confidence.
Despite industry pressures, GM expects to increase revenues in
all of its regions, particularly in emerging markets.
Building on notable product successes including the Cadillac
CTS, Chevrolet Malibu, GMC Acadia, Saturn Outlook and Buick
Enclave in the U.S. and the Opel Corsa in Europe, GM will
continue to introduce a host of new products including the
Pontiac G8 and Chevrolet Traverse in the U.S. and Opel Insignia
in Europe. Capital spending is projected to be up slightly from
2007 levels to about US$8 billion in 2008.
On the sales and marketing front, GM will continue its efforts
-- most clearly demonstrated in the recent launch of the Chevy
Malibu in the U.S. -- to more effectively integrate product and
brand marketing strategies. GM will accelerate the alignment of
its seven U.S. brands into four distinct dealer channels:
Chevrolet, Saturn, Buick/Pontiac/GMC and Cadillac/Hummer/SAAB.
By doing this, the company expects to enhance dealer
profitability and over time facilitate more highly
differentiated products and brands.
With regard to cost competitiveness, GM has made major strides
toward achieving its global target of reducing automotive
structural costs to benchmark levels of 25% of revenue by 2010.
Structural costs are already below 30%, compared to 34% in 2005,
despite weaker than expected U.S. industry volumes. In light of
the progress already made, the company fully expects structural
costs as a percentage of revenue to be further reduced beyond
2010, with a target of 23% by 2012.
In support of those goals, the company plans to reduce annual
U.S. labor costs by an additional estimated US$5 billion by
2011.
A significant portion of those reductions will be driven by the
implementation of the 2007 GM-UAW contract, including the
independent healthcare VEBA scheduled to begin in 2010, and in
the shorter term by taking full advantage of the workforce
restructuring opportunities included in the contract, including
a "non-core" wage and benefit structure which will result in the
re-classification of a significant number of jobs over time.
To facilitate these changes, GM launched, in cooperation with
the UAW, the first phase of a voluntary special attrition
program for hourly workers in January 2008. This phase applies
to those at select job banks, Service Parts Operations, and
other key sites. Employees participating in this phase will
begin to exit in March. GM disclosed that Phase 2 of the
program, under active discussion with the UAW, will be launched
in February in all other plants. Participating employees will
begin exiting in April. For both phases of the program, 46,000
existing employees are eligible for retirement.
During the conference, GM also reiterated its strategy to
achieve manufacturing capacity utilization of 100%, or greater,
in countries with higher labor costs. Based on current U.S.
industry volume levels, additional capacity actions would be
required in vehicle assembly, stamping and powertrain
facilities. The company will continue to assess U.S. industry
and product mix trends, and what potential actions may be
required over the coming months.
GM will continue its aggressive plans to grow in emerging
markets such as China, Brazil, Russia and India. To strengthen
its position in China, where it was the first automaker to sell
1 million units in a single year, GM intends to continue to
build its corporate reputation, expand its product portfolio
with fuel-efficient products, drive full implementation of its
multi-brand strategy, expand capacity, and develop our local
supply base and technology capability.
At GMAC Financial Services, while its mortgage business faces
continued challenges relating to weaknesses in the housing and
credit markets, its auto financing business remains profitable
and its insurance operations continue to perform well. GMAC
expects Residential Capital, LLC to meet its year-end 2007
financial covenants, and GM believes GMAC remains adequately
capitalized.
In addition, GMAC's liquidity position is at relatively high
historical levels and GMAC expects to be profitable in 2008,
with substantially reduced losses at ResCap due to risk
mitigation actions undertaken by the company.
Looking Ahead to 2010
Looking ahead, GM expects continued cost savings and improved
automotive pre-tax earnings by 2010, compared to 2007 levels,
driven by a number of factors.
The most significant savings is the estimated US$4-5 billion GM
expects to gain in 2010 once it realizes the full-impact of the
2007 GM-UAW labor agreement related to the shift of U.S. hourly
health care to an independent VEBA, and takes advantage of
favorable labor demographics to adjust workforce levels and
transition a portion of the workforce to the new non-core wage
structure.
In addition, GM will reduce the cost premiums it has
historically paid to Delphi for systems, components and parts by
approximately US$1 billion by 2010. Those savings will be
offset by various labor and transitional subsidies of US$400-500
million under Delphi's proposed reorganization, resulting in net
savings of approximately US$500 million.
GM also sees the probability of a stronger U.S. industry in 2009
and beyond, as compared to the relatively low 16.5 million total
industry in 2007. All indications are that 16.5 million units
are approximately 1 million units below trend. It is estimated
that a move of the industry back to trend levels by 2010 would
generate additional pre-tax income to GM in the range of
approximately US$1 billion to US$1.5 billion annually.
Beyond these factors, there are a number of additional
opportunities to further improve GM earnings and cash flow by
2010, though they are more difficult to predict with
specificity. These include: additional material cost reductions
due to continued leveraging of global vehicle architectures,
improved pricing driven by compelling designs and stronger
brands, continued explosive growth in revenue and profitability
in emerging markets, and improved performance at GMAC.
At the same time, continued U.S. industry product mix
deterioration, regulatory cost increases and the ongoing
competitiveness of the marketplace pose potential risks to GM's
profitability.
Considering the foregoing, GM management expects to
significantly improve operating results, including earnings and
cash flow, over the next two to three years.
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-Latin America 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. S&P said the outlook is stable.
FERTILIZERS & CHEMICALS: Board to Consider Q3 Results on Jan. 24
----------------------------------------------------------------
Fertilizers & Chemicals Travancore Ltd's board of directors will
hold a meeting on Jan. 24, 2008, to consider the company's
unaudited financial results for the third quarter ended Dec. 31,
2007.
FACT, reported a net loss of INR269.30 million in the quarter
ended Dec. 31, 2007. Revenues for that three-month period
aggregated INR4.26 billion.
Headquartered in Kochi, Kerala, India, Fertilisers & Chemicals
Travancore Limited is principally engaged in the manufacturing
and distribution of fertilizers and chemicals. Its products
include ammonium sulphate, factomfos, urea and caprolactam. The
company operates solely in the domestic market.
The company, which had been making profits for over a decade,
started reporting losses from 1998-99 onwards due to the steep
rise in cost of raw materials like naphtha, benzene, sulphur and
rock phosphate. There were also uneconomic realization from
sales and the company had to stop production because of a
liquidity crunch. In 2004, the company was referred to the
Board for Industrial and Financial Reconstruction as a
potentially sick unit. The company is currently undergoing a
revamp program to turn its business around.
ICICI BANK: Reports 35% Profit Increase in Qtr. Ended Dec. 31
-------------------------------------------------------------
The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its
meeting held at Mumbai on Saturday, approved the audited
unconsolidated Indian GAAP accounts of the Bank for the quarter
ended December 31, 2007 (Q3-2008).
Highlights
* Profit after tax for Q3-2008 increased 35% to INR1,230
crore (US$312 million) from INR910 crore (US$ 231 million)
for the quarter ended December 31, 2006 (Q3-2007).
* Operating profit excluding treasury income increased 37% in
Q3-2008 to INR1,977 crore (US$ 502 million) from
INR1,442 crore (US$366 million) for the quarter ended
December 31, 2006 (Q3-2007).
* Net interest income increased 32% to INR1,960 crore
(US$ 497 million) for Q3-2008 from INR1,485 crore
(US$377 million) for Q3-2007.
* Fee income increased 33% to INR1,785 crore (US$453 million)
for Q3-2008 from INR1,345 (US$341 million) for Q3-2007.
* Current and savings account deposits increased 33% to
INR62,494 crore (US$ 15.9 billion) at December 31, 2007
from INR47,062 crore (US$ 11.9 billion) at December 31,
2006 resulting in an increase in CASA ratio to 27% at
December 31, 2007.
* Total advances increased 25% to INR215,517 crore (US$54.7
billion) at December 31, 2007 from INR172,763 crore
(US$43.8 billion) at December 31, 2006.
* Profit after tax for the nine months ended December 31,
2007 (9M-2008) increased 32% to INR3,008 crore
(US$763 million) from INR2,285 crore (US$ 580 million) for
the nine months ended December 31, 2006 (9M-2007).
Operating Review
Deposit Growth
Current and savings account deposits increased 33% to
INR62,494 crore (US$15.9 billion) at December 31, 2007 from
INR47,062 crore (US$ 11.9 billion) at December 31, 2006. During
this period, the Bank's total deposits increased 17% to
INR229,779 crore (US$ 58.3 billion) at December 31, 2007 from
INR196,893 crore (US$ 49.9 billion) at December 31, 2006. The
Bank had 955 branches and extension counters and about 3,687
ATMs at December 31, 2007.
Credit Growth
The Bank's total advances increased 25% to INR215,517 crore
(US$54.7 billion) at December 31, 2007 from INR172,763 crore
(US$ 43.8 billion) at December 31, 2006. The proportion of
advances of the Bank's international branches in total advances
increased from 12% at December 31, 2006 to 21% at December 31,
2007, reflecting effective synergies between the Bank's strong
corporate franchise and its international presence. The Bank's
retail advances were INR132,311 crore (US$33.6 billion) at
December 31, 2007 and constituted 61% of total advances.
International Operations
The Bank is present in 18 countries through wholly-owned
subsidiaries, branches and representative offices. At December
31, 2007 the Bank's international operations accounted for about
23% of its consolidated banking assets.
ICICI Bank UK plc opened two additional branches in UK in
Coventry and London taking the number of retail locations to
nine. ICICI Bank Canada opened its seventh branch in Canada in
the Greater Toronto Area.
Capital Adequacy
The Bank's capital adequacy at December 31, 2007 was 15.8%1
(including Tier-1 capital adequacy of 12.1%), well above RBI's
requirement of total capital adequacy of 9.0%.
Asset Quality
At December 31, 2007, the Bank's net non-performing assets
constituted 1.47% of net customer assets.
International Funding Plan
At December 31, 2007, ICICI Bank's consolidated balance sheet
size was US$115 billion. From January to December 2007, ICICI
Bank and ICICI Bank UK plc raised US$6.7 billion in the
international bond markets in dollar, euro and sterling
currencies. This is used primarily for financing the expansion
of Indian businesses, including their organic and inorganic
growth internationally and their large investment plans in
India. Going forward, the Bank seeks to continue to capitalize
on these growth opportunities. Based upon an evaluation of
funding opportunities and returns thereof, the Bank currently
expects to raise approximately the same amount through bond
issuances during calendar year 2008 subject to market
conditions. The Bank currently expects to continue to diversify
and evaluate alternative markets to complement its dollar, euro
and sterling bond issuances. The balance international funding
is likely to come from retail and corporate deposits, bank loan
markets, multilateral sources and trade financing.
Performance Highlights of Key Subsidiaries
ICICI Bank's unaudited consolidated profit after tax was
INR2,762 crore (US$701 million) for 9M-2008 compared to INR2,203
crore (US$559 million) for the 9M-2007.
ICICI Prudential Life Insurance Company continued to maintain
its market leadership among private sector life insurance
companies with a private market share of 25.8% and an overall
market share of 11.8% on the basis of new business weighted
received premium. During April-November ICICI Life's new
business weighted received premium increased by 67% as compared
to industry growth of 14%. The growing operations of ICICI Life
had a negative impact of INR674 crore
(US$171 million) on the unaudited consolidated profit after tax
of ICICI Bank in 9M-2008. However, ICICI Life's unaudited New
Business Profit (NBP) in 9M-2008 was INR748 crore
(US$190 million). The assets held by ICICI Life increased from
about INR15,818 crore (US$ 4.0 billion) at March 31, 2007
to INR28,409 crore (US$ 7.2 billion) at December 31, 2007.
ICICI Lombard General Insurance Company maintained its
leadership position with a market share of 31.9% among private
sector general insurance companies and an overall market share
of 12.7% during April-November 2007. ICICI General's premiums
increased 17% to INR2,722 crore (US$691 million) in 9M-2008
despite the impact of detariffication. ICICI General's profit
after tax increased by 134% to INR115 crore (US$29 million) in
9M-2008 from INR49 crore (US$ 12 million) in 9M-2007.
ICICI Securities' revenues for Q3-2008 and 9M-2008 were INR257
crore (US$65 million) and INR527 crore (US$134 million)
respectively. The company's profit after tax for Q3-2008 and
9M-2008 was INR71 crore (US$18 million) and INR108 crore (US$ 27
million) respectively.
ICICI Prudential Asset Management Company's assets under
management (including portfolio management services and advisory
assets) increased by 59% to INR69,230 crore (US$17.6 billion) at
December 31, 2007 from INR43,440 crore (US$11.0 billion) at
March 31, 2007. ICICI AMC's profit after tax increased by 127%
to INR75 crore (US$19 million) in 9M-2008 from INR33 crore
(US$8 million) in 9M-2007.
ICICI Venture Fund Management Company is the largest private
equity company in India with assets under management of about
INR9,600 crore (US$ 2.4 billion). ICICI Venture's profit after
tax for 9M-2008 was INR52 crore (US$13 million).
A copy of the bank's audited results for the quarter and nine
months ended Dec. 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?2735
About ICICI Bank
Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance. It also has
interests in the software development, software services and
business process outsourcing businesses. The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others. It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
* * *
Fitch Ratings gave ICICI a 'C' Individual Rating.
On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On
Oct. 16, S&P assigned its 'BB+' issue rating to its senior
unsecured, five-year, fixed-rate U.S. dollar notes.
ICICI BANK: Director Vinod Rai Resigns From Board
-------------------------------------------------
ICICI Bank Ltd has informed the Bombay Stock Exchange that
Vinod Rai, non-executive director and government nominee of the
bank has resigned from the board effective Jan. 6, 2008.
The board at its meeting on Jan. 19, noted the resignation of
Mr. Rai and placed on record its deep appreciation for his
contribution to the growth and development of the bank.
Headquartered in Mumbai, India, ICICI Bank Limited --
http://www.icicibank.com/-- is a financial services group
providing a variety of banking and financial services, including
project and corporate finance, working capital finance, venture
capital finance, investment banking, treasury products and
services, retail banking, broking and insurance. It also has
interests in the software development, software services and
business process outsourcing businesses. The Company's
operations have been classified into three segments: Commercial
Banking, Investment Banking and Others. It has subsidiaries in
the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain, and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
* * *
Fitch Ratings gave ICICI a 'C' Individual Rating.
On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to
the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On
Oct. 16, S&P assigned its 'BB+' issue rating to its senior
unsecured, five-year, fixed-rate U.S. dollar notes.
IFCI LTD: Net Profit Soars to INR3.19 Bil. in Qtr. Ended Dec. 31
----------------------------------------------------------------
IFCI Ltd's net profit more than doubled to INR3.19 billion in
the three months ended Dec. 31, 2007, from the INR1.29-billion
profit recorded in the corresponding quarter in 2006.
The profit growth is brought about by rising revenues and the
absence of huge interest charges that was part of the company's
results in the prior quarters.
Total revenues increased from INR3.68 billion in Oct.-Dec. 2006
to INR5.79 billion in the current quarter under revenue. There
was zero interest expanded in the quarter ended Dec. 31, 2007,
compared to the INR1.88-billion interest last year. In view of
GOI letter dated Dec. 12, 2007, the reduction of pro-rata
interest, as done in earlier years and current half-year, has
not been done in the current quarter, IFCI explained.
With operating expenditures of INR962.2 million, the company
booked an operating profit of INR4.83 billion. Depreciation for
the quarter aggregated INR16.7 million while taxes totaled
INR1.62 billion.
A copy of the company's financial results for the quarter ended
Dec. 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?2739
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.
INDUSTRIAL DEV'T BANK: Vinod Rai Leaves Director Post
-----------------------------------------------------
Vinod Rai has tendered his resignation from Industrial
Development Bank of India Ltd's board of directors with effect
from Jan. 6, 2008, IDBI disclosed in a filing with the Bombay
Stock Exchange.
Mr. Rai quit as director of IDBI's board to enable him to take
oath of office for the post of the comptroller and auditor
beneral of India.
Headquartered in Mumbai, India, Industrial Development Bank of
India -- http://www.idbi.com-- is a commercial bank that offers
a range of products, including secured loans, such as housing
loans, mortgage loans and loan against securities, and unsecured
loans, such as personal loans, educational loans and overdrafts
to merchant establishments. It also distributes third-party
products, such as insurance and mutual fund products to its
retail customers. IDBI also offers project financing, film
financing, equipment financing, asset credits, corporate loans,
working capital loans, direct discounting, the financing of
receivables, venture capital funds, bill rediscounting,
rehabilitation financing, foreign exchange and merchant banking.
* * *
As part of the application of Moody's Investors Service's
refined joint default analysis and updated bank financial
strength rating methodologies, the rating agency, on April 24,
2007, affirmed Industrial Development Bank of India's BFSR at
D-. Moody's also maintains the bank's Foreign Currency Deposit
Rating at Ba2.
SUN MICROSYSTEMS: Moody's Says MySQL Buyout Won't Affect Ratings
----------------------------------------------------------------
Moody's has commented that Sun Microsystems, Inc.'s Ba1
corporate family and unsecured debt rating with a stable outlook
would not be affected by the company's recent announcement that
it has entered into a definitive agreement to acquire MySQL AB
for approximately US$1 billion. MySQL is a privately held
developer of high performance open-source database software
experiencing fast growth in the US$15 billion relational
database management systems market. Moody's believes the high
purchase price is mitigated by the strategic nature of the
acquisition and long-term growth opportunities in the relational
database management systems market, which is growing roughly at
14% per annum. Having assembled nearly all of the elements for
its web-based platform strategy, the MySQL acquisition is
consistent with Sun Microsystems' solutions-based operating
model of selling a broader, more integrated comprehensive
offering of storage, servers, software and services based on
open architecture standards. The company expects to: migrate
its customers to MySQL's technology to deepen existing
relationships; provide MySQL with access to its global
infrastructure, channels and OEM partnerships to accelerate the
growth of MySQL's mission critical deployment of applications
for large-scale customers; and further exploit the secular shift
in computing from desktop to web-based platforms through up-sell
and cross-sell opportunities.
Given MySQL's small relative size, Moody's does not expect it to
be a major contributor to the company's operating earnings over
the near term. However, its strong liquidity profile, improved
credit protection measures and enhanced operating profile can
absorb an acquisition of this size.
"This pending transaction reflects the company's historical
penchant to achieve growth through external means, which is
currently factored into the Ba1 CFR. Despite potential revenue
synergies, access to new untapped markets and cross-selling
opportunities, Moody's believes that Sun's acquisition strategy
poses challenges for the company to successfully integrate
technologies and operations as the company seeks to expand its
business model into the software space. Moody's expects the
company will continue to make selective acquisitions to extend
the reach of its products among software developers and
corporate customers, and strengthen its position as a platform
provider for the Web-based economy", stated Moody's Vice
President-Senior Analyst, Gregory Fraser.
Despite market share growth, improvements in profitability and
margins, and higher levels of free cash flow in the company's
recent past, the Ba1 rating reflects the company's aggressive
acquisition strategy to grow beyond its core business. Sun
Microsystems has stated in its public statements that it intends
to be a consolidator in the IT industry. The company has had an
active acquisition program to acquire small, emerging technology
companies whose growth is restrained by resources, distribution
and infrastructure that can benefit from its global sales force
and services organization. The rating is constrained at Ba1,
reflecting the ongoing transition of the company's operating
model away from a direct product sale to a cross-product selling
approach, which blends hardware, software, and services into a
single offering. Though the solutions based sales approach
focuses on the value proposition of the bundled sale rather than
individual pricing of each component, by adapting to a strategy
of selling lower priced servers in order to obtain longer term
service revenue streams, the company is likely to witness
operating margin pressure on the hardware component of the
overall solution sale, while potentially generating future
higher margin revenue streams. Moody's is also concerned about
the sustainability of this operating model given that Sun's
market share continues to be eclipsed by stronger rivals such as
IBM and HP.
Moody's expects that if the acquisition is consummated as
proposed, the company would fund the transaction with
approximately US$800 million in cash and assume US$200 million
in MySQL options. The company expects the transaction to close
in the third or fourth quarter of its fiscal 2008 subject to
regulatory approvals. Moody's also expects that following the
closing of the proposed transaction, Sun will maintain moderate
share purchase activity.
The company's liquidity position is strong, with roughly US$5
billion in cash and marketable securities. Balance sheet debt
totals US$1.27 billion, comprised of a US$550 million note
maturing in August 2009, a US$350 million convertible due 2012,
a US$350 million convertible due 2014 and US$21 million in
interest rate swaps. The company also maintains full access to
US$391 million of uncommitted credit lines. Moody's notes that
further cash usage for material acquisitions or stock purchases
would likely have a negative impact on the company's liquidity
profile and potential credit rating.
The company's revenue and EBITDA for the twelve months ended
Sept. 30, 2007 were US$13.9 billion and US$1.8 billion,
respectively.
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, among others.
SUN MICROSYSTEMS: Caris & Co. Keeps Above-Average Rating on Firm
----------------------------------------------------------------
Caris & Company analyst Shebly Seyrafi has kept his "above
average" rating on Sun Microsystems Inc.'s shares,
Newratings.com reports.
Newratings.com relates that the target price for Sun
Microsystems was decreased to US$20.00 from US$25.20.
Mr. Seyrafi said in a research note that Sun Microsystems issued
a positive pre-announcement for the second quarter of the fiscal
year 2008, with revenues of almost US$3.6 billion and GAAP
earnings per share of up to US$0.32, which is above the
consensus.
Mr. Seyrafi told Newratings.com that sales of Sun Microsystems'
Intel/Galaxy products are not meeting expectations. Sun
Microsystems would face a challenging macro environment.
The earnings per share estimates for the fiscal years 2008 and
2009 were decreased to US$1.28 from US$1.37 and to US$1.51 from
US$1.68, respectively, Newratings.com states.
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, Singapore, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
TATA MOTORS: In Talks with Dunlop India for Tire Supply
-------------------------------------------------------
Tire and tube manufacturer Dunlop India Ltd is eying a tie-up
with Tata Motors Ltd, The Times of India reports.
Dunlop India has commenced discussions with Tata Motors for the
supply of truck tires, The Times says, citing a statement made
by Dunlopo Chairman Pawa Ruia.
Aside from making tires and tubes, Dunlop India also
manufactures high-pressure hoses, steelcord belting, and
vibration isolators. As reported by the Troubled Company
Reporter-Asia Pacific on Jan. 3, 2008, Dunlop India is out from
the clutches of the Board for Industrial and Financial
Reconstruction pursuant to the order of the Madras High Court.
India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the Company. The Company's operating segments consists of
Automotive and Others. In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.
Tata Motors has operations in Russia and the United Kingdom.
* * *
On Jan. 7, 2008, Standard & Poor's Ratings Services placed its
'BB+' long-term corporate credit ratings on India-based
automaker Tata Motors Ltd. on CreditWatch with negative
implications. At the same time, Standard & Poor's placed its
'BB+' foreign currency rating on all of Tata Motor's rated debt
issues on CreditWatch with negative implications.
As reported in the TCR-Asia-Pacific on Jan. 8, 2008, Moody's
Investors Service placed the Ba1 Corporate Family Rating of Tata
Motors Ltd on review for possible downgrade.
TATA POWER: Shareholders Approve Raising Addt'l Long-Term Funds
---------------------------------------------------------------
Tata Power Company Ltd's shareholders, by way of postal ballot,
approved the company's plans to, among others, raise additional
long-term funds and commence new business, a filing with the
Bombay Stock Exchange discloses.
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 28, 2007, Tata Power intends to go into shipping and
logistics, and raise as much as INR4,000 crore. The company
will intends to raise the money through the offering of
securities in the local or international markets.
"The company is in an aggressive expansion phase and, in the
next five years, plans to add 10,000 MW capacity based on
thermal coal," Business Line relates.
Tata Power Company Ltd. -- http://www.tatapower.com/-- is a
licensee engaged in generation and supply power to bulk
consumers in the Mumbai metropolitan area. The company operates
four thermal plants with a combined capacity of 1,350 MW, and
three hydroelectric plants aggregating 447 MW; all of these
supply power to the Mumbai licence area. The company also has a
plant that supplies power to Tata Steel. In addition, Tata
Power has an 81-MW independent power project at Belgaum that
sells power to Karnataka Power Transmission Corporation Limited.
* * *
Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered
its corporate credit rating on India's Tata Power Co. Ltd. to
'BB-' from 'BB+'. The outlook is stable. At the same time, the
rating on Tata Power's US$300 million senior unsecured bonds
have been lowered to 'BB-' from 'BB+'.
Moody's Investors Service, on July 3, 2007, downgraded the
corporate family rating of Tata Power Company to Ba3 from Ba1.
At the same time, Moody's has downgraded its senior unsecured
bond rating to B1 from Ba2. The ratings outlook is negative.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Inks BRL2B Maintenance Pact with Brasil Telecom
---------------------------------------------------------------
Alcatel-Lucent has signed an almost BRL2 billion contract with
Brasil Telecom Participacoes for maintenance of network, Brasil
Telecom said in a statement.
Dow Jones Newswires relates that Alcatel-Lucent won the two-year
contract against Ericsson and Nokia Siemens Networks. The
contract can be extended.
Alcatel-Lucent will be responsible for the administration and
maintenance of Brasil Telecom's fixed-line and wireless
telephony infrastructure and data transmission network. Brasil
Telecom hopes it will lessen costs. The network's maintenance
is one of Brasil Telecom's principle outlays, representing
almost 10% of all expenses in the first nine months of 2007, Dow
Jones states.
About Brasil Telecom
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional long-
distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
About Alcatel-Lucent
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from
Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings
for senior debt of the group were equally lowered to Ba3 from
Ba2 and the trust preferred notes of Lucent Technologies Capital
Trust I have been downgraded to B2 from B1. At the same time,
Moody's affirmed its Not-Prime rating for short-term debt of
Alcatel-Lucent. Moody's said the outlook for the ratings is
stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
ALCATEL-LUCENT: SA Names Andy Williams as Services Biz Chief
------------------------------------------------------------
Alcatel-Lucent S.A. disclosed that Andy Williams will become
President of the company’s Services Business. He will be a
member of the management committee. He replaces John Meyer who
is leaving the company to become the CEO and President of Acxiom
Corporation.
Andy Williams currently heads the Network Operations business
globally for Alcatel-Lucent's Services group.
"Andy Williams is a very experienced business leader with
extensive knowledge of the communications industry," said Pat
Russo, CEO of Alcatel-Lucent. "Throughout his career Andy
Williams has had a broad set of experiences including senior
positions running a large Services business, identifying and
assessing business opportunities, creating solutions and
developing and transforming businesses."
Andy Williams headed the former Lucent Technologies European
business, responsible for all of the company’s activities in the
region. He joined the company in 2005 from IBM, where he worked
for 25 years and held a number of senior leadership positions.
Prior to joining the former Lucent company, he served as general
manager of the Public Sector Services business in EMEA, part of
IBM Global Services. His was responsible for the overall region
IT services business in Public Sector, including profit and
loss, consulting, systems integration and strategic outsourcing.
Andy Williams holds degrees in mathematics from Cambridge
University in the U.K.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
BANK NEGARA: Partners with IBM to Meet Customers Demands
--------------------------------------------------------
PT Bank Negara Indonesia (Persero) Tbk has partnered with
International Business Machines Corporation to more quickly meet
the demands of its increasingly tech-savvy customers and
strengthen its market position in Indonesia's banking industry.
As a leading Indonesian bank with more than 9 million customers
and 972 branch offices across the Indonesian archipelago, Bank
Negara Indonesia's first strategic SOA project was the
strengthening of its electronic channels through the addition of
new offerings to their Internet, mobile and ATM banking services
to provide better service to their customers by making
transactions as quick and convenient as possible.
By using IBM WebSphere software and services to build its SOA
and integrate its various service components, BNI is able to
quickly aggregate critical data generated by separate systems.
For example, data on customer accounts can be shared with new
applications just by creating the links between the services.
This cuts down the development time as the bank does not have to
write a new customer account program for the new applications.
Now, when information is updated in one system, the changes are
reflected automatically in the others resulting in greater
efficiency and productivity.
With SOA, Bank Negara is able to protect its IT investments by
recycling many of its existing software applications without
compromising productivity or customer service. This is due to
the fact that the SOA is based on open standards which allow
existing and new applications to easily 'talk' to each other
through IBM integration middleware. This standards-based
approach enables Bank Negara to reuse existing business
services, thereby shortening the application development time
required to bring the new banking product or service to market.
As a result, the bank is now able to reduce the development time
from up to three months to down to a few weeks, facilitating a
dramatic improvement in responsiveness to client demands.
For example, bank Negara's tax services were previously only
available from the bank tellers. With SOA, the bank is now able
to link the services to Internet banking and ATM applications
providing a new and additional service to its customers for a
faster and more convenient tax payment option.
"We realized the powerful benefits of SOA and chose IBM due to
their world class technology which will enable us to respond
quickly to emerging needs and changing technological
circumstances," said Henrisa Lubis, Vice President, Information
Technology Division, Bank Negara "Using a combination of IBM
technology and services to build an SOA has freed bank Negara
to focus on achieving our strategic business goals through the
combination of world-class technology and more efficient
organizational processes," Henrisa added.
Further, to facilitate and enable the bank's internal team to
become proficient in a relatively short period of time, IBM
conducts small hands-on workshops monthly in order to
effectively transfer SOA knowledge to the Bank's relevant staff
during the project engagement.
"IBM is deeply committed to developing innovative solutions to
help its clients expand to new, emerging markets. We have seen
great examples of SOA around the region helping clients to
better align IT and business goals, resulting in improved
business flexibility, cost savings, reduced risk, and increased
revenue," said Erwin Sukiato, Country Manager, IBM Software
Group. "IBM's collaboration with BNI, one of the leaders in the
banking industry in Indonesia, leveraging on the innovative SOA
technology, will enable the bank to quickly respond to new
market opportunities and challenges faster and more
efficiently," Erwin added.
The next phase of the project is to implement WebSphere Service
Registry and Repository (WSRR) to manage the services. This
tool manages the repository of services that are already defined
and used in bank Negara, and also tracks the versions of the
programs, an essential tool to ensure workers know which version
the programs are on. "When our business development team is
asked to write a new application for a new product, our
programmer will first check the repository to see whether a
service is available that they can reuse--with or without
modification--before they decide to create a new program,"
explained Henrisa.
For the infrastructure, BNI acquired System p 595 and System p
590 servers to run IBM WebSphere MQ and other SOA tools such as
IBM WebSphere Message Broker(TM). The bank also opted for IBM
WebSphere DataPower(TM) SOA security appliance.
About Bank Negara
Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id/-- is a financial
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature. The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore. The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.
As reported in the Troubled Company Reporter-Asia Pacific
Troubled Company Reporter-Asia Pacific on Dec. 7, 2007, Fitch
Ratings has upgraded the National Long-term rating of PT Bank
Negara Indonesia to 'AA-(idn)' (AA minus (idn)) from 'A+ (idn)).
The Outlook is Stable. This rating action resolves the Positive
Outlook that BNI's National rating was placed on in September
2007. At the same time, Fitch has affirmed BNI's other
ratings, as follow:
-- Long-term foreign and local currency Issuer Default
Ratings at 'BB-' with a Positive Outlook,
-- Short-term rating at 'B'
-- Individual rating at 'D'
-- Support rating at '4', and
-- Support rating floor at 'B+'
Oct. 19, 2007, Moody's Investors Service raised PT Bank Negara
Indonesia (Persero) Tbk.'s foreign currency long-term debt
rating to Ba2 from Ba3 and foreign currency long-term deposit
rating to B1 from B2.
On April 20, 2007, Standard & Poor's Ratings Services raised
Bank Negara's long-term counterparty credit ratings to 'BB-'
from 'B+'.
BANK RAKYAT: To Operate Shariah-Service Unit as Stand-Alone Bank
----------------------------------------------------------------
PT Bank Rakyat Indonesia (Persero) Tbk plans to operate its
shariah service unit, BRI Syariah, in the first quarter this
year, Thomson Financial reports.
According to the report, BRI director Sarwono Sudarto said that
BRI Syariah will initially have capital of IDR500 billion. BRI
Syariah's focus will be on serving small- and medium-scale
businesses, which have also become the main customers of BRI, he
added.
BRI Syariah will become the fourth stand-alone shariah bank in
Indonesia, the report adds.
Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise
Savings, Credits and Syariah. In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions. During the year ended
Dec. 31, 2005, the bank had one branch office in Cayman Islands
and two representative offices in New York and Hong Kong,
respectively.
The Troubled Company Reporter-Asia Pacific reported on Oct. 19,
2007, that Moody's Investors Service raised Bank Rakyat's
foreign currency long-term debt rating to Ba2 from Ba3 and its
foreign currency long-term deposit ratings to B1 from B2.
Fitch Ratings affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '4'.
BERLIAN LAJU: S&P Says Rating Remains on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services said PT Berlian Laju Tanker
Tbk's corporate credit rating remains on CreditWatch with
negative implications. The 'B+' issue rating on the US$400
million senior unsecured notes due 2014 and the US$125 million
five-year convertible bonds due 2012, issued by BLT's fully
owned BLT Finance B.V., also remains on CreditWatch with
negative implications.
These ratings were placed on CreditWatch on Oct. 15, 2007, after
BLT's announcement that it had agreed to acquire Chembulk
Tankers LLC, a U.S. chemical tanker company, and remain on
CreditWatch pending the finalization of BLT's long-term
financing plan.
"Our 'B+' rating takes into consideration benefits derived in
BLT's business profile from the entry into new market segments
and an improved fleet profile, under an overall softening
outlook for shipping companies," said Standard & Poor's credit
analyst Manuel Guerena.
The total consideration for Chembulk will be US$850 million, to
be funded primarily by new debt; this funding plan increases
BLT's US$856 million debt as of September 2007 well above 5x
debt to EBITDA. In Standard & Poor's view, further downward
pressure on the rating remains.
"In resolving the CreditWatch, we will review the terms of the
different funding phases and their execution, including the
company's intention to partially reduce debt through an equity
injection, as well as the potential subordination impact on the
existing bonds if the financing changes the existing
collateralization levels," Mr. Guerena said.
BLT is an Indonesia-based shipping company, focusing on liquid
bulk cargo, with operations primarily in Asia. Its other markets
are the Middle East and Europe. In the first nine months of
2007, BLT recorded revenue amounting to USD294m, EBITDA of
USD132m and net income of USD54m. The founder, Mr Hadi Surya has
a 52.4% beneficial interest in BLT.
FOSTER WHEELER: To Supply Heat Recovery Steam Generator in Spain
----------------------------------------------------------------
Foster Wheeler Ltd. announced that Foster Wheeler Energia, S.A.,
a Spanish subsidiary of its Global Power Group, has been awarded
a contract for a heat recovery steam generator through SENER,
IngenierIa y Sistemas, S.A. for PETRONOR. The boiler will be
integrated in a cogeneration plant that REPSOL-YPF/PETRONOR is
constructing at the Petronor Refineria de Somorrostro in Bilbao,
Spain. REPSOL-YPF owns 85% of the Petronor Refinery.
Foster Wheeler has received a full notice to proceed on this
contract. The terms of the award were not disclosed, and the
contract will be included in the company's bookings for the
fourth-quarter of 2007.
Foster Wheeler will design, supply and erect the HRSG, and will
also provide start-up supervision for the HRSG, which will be
coupled to a General Electric PG-6581 combustion turbine, with a
total installed capacity of 42 MWe (gross megawatt electric).
The HRSG will produce medium- and low-pressure steam for the
refinery process. Commercial operation of the HRSG is scheduled
for the second quarter of 2009.
About Foster Wheeler
Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services. Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries. The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.
The company has offices in China, India, Indonesia, Malaysia,
Singapore, Thailand, and Vietnam.
* * *
As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the company. The company had
about US$217 million of total debt at Sept. 29, 2006.
GARUDA INDONESIA: To Open Direct Medan-Chennai Flight in June
-------------------------------------------------------------
PT Garuda Indonesia is to start a direct flight service between
Medan in North Sumatra and Chennai in India next June, Antara
News reports, citing Garuda Vice Director for Networks
Management Risnaldi.
According to the report, Mr. Risnaldi said that after the
process to obtain permission from the Indian government will be
completed, they hope to begin flying the route in June.
Mr. Risnaldi, the report notes, said there is a 54% increase in
Indian tourist who visited Indonesia in 2007.
Meanwhile, Director of Overseas Promotions at Indonesia's
Culture and Tourism Ministry Tatang Rukhiyat told the news
agency that his department would open two representative offices
in New Delhi and Mumbai to facilitate promotion of Indonesian
tourism. The two representative offices would begin operating
next February, he added.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The Troubled Company Reporter-Asia Pacific reported on Sept. 6,
2007, that Garuda, saddled with a debt of around US$750 million
including some US$475 million owed to the European Credit
Agency, is in negotiations with creditors to restructure some of
its debt. The carrier's debt needs to be restructured,
otherwise Garuda will not be able to fly anymore as its debt is
too big, the report added.
The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
was due on Dec. 31, 2005.
The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.
Garuda is currently undergoing debt restructuring. The Troubled
Company Reporter-Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.
GARUDA INDONESIA: Targets to Fly 22,000 Passengers From Beijing
---------------------------------------------------------------
PT Garuda Indonesia targets to fly 22,000 passengers for the
Beijing-Jakarta route in 2008, Antara News reports, citing
Garuda General Manager for Beijing Pikri Ilham K.
Mr. Pikri was quoted by the news agency as saying, "Amid tight
competition with foreign airlines which also served the Beijing-
Jakarta route, the number of Garuda's passengers from Beijing
continued to increase in 2007."
The report notes that Mr. Pikri said Garuda's seat load factor
last year reached 81.8%.
According to the report, besides serving the Beijing-Jakarta
route, the airline also plied the Shanghai-Jakarta and Guanzhou-
Jakarta routes with four flights a week respectively.
In connection with the Visit Indonesia Year 2008, Garuda
Indonesia has prepared a number of programs in China to attract
as many tourists as possible to Indonesia, the report adds.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The Troubled Company Reporter-Asia Pacific reported on Sept. 6,
2007, that Garuda, saddled with a debt of around US$750 million
including some US$475 million owed to the European Credit
Agency, is in negotiations with creditors to restructure some of
its debt. The carrier's debt needs to be restructured,
otherwise Garuda will not be able to fly anymore as its debt is
too big, the report added.
The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
was due on Dec. 31, 2005.
The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before.
Garuda is currently undergoing debt restructuring. The Troubled
Company Reporter-Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.
GOODYEAR TIRE: Holders Can Convert 4% Sr. Notes Until March 31
--------------------------------------------------------------
The Goodyear Tire & Rubber Company has announced that its 4.00%
Convertible Senior Notes due June 15, 2034 are now convertible
at the option of the holders and will remain convertible through
March 31, 2008, the last business day of the current fiscal
quarter.
The notes became convertible because the last reported sale
price of the company's common stock for at least 20 trading days
during the 30 consecutive trading-day period ending on
Jan. 16, 2008, the 11th trading day of the current fiscal
quarter, was greater than 120 percent of the conversion price in
effect on such day. The notes have been convertible in previous
fiscal quarters.
The company will deliver shares of its common stock or pay cash
upon conversion of any notes surrendered on or prior to
March 31, 2008. If shares are delivered, cash will be paid in
lieu of fractional shares only. Issued in July 2004, the notes
are currently convertible at a rate of 83.0703 shares of common
stock per US$1,000 principal amount of notes, which is equal to
a conversion price of US$12.04 per share.
During the fourth quarter of 2007, the company completed an
exchange offer for outstanding notes for a cash payment and
shares of common stock. As a result, less than US$4 million in
aggregate principal amount of notes remain outstanding. If all
outstanding notes are surrendered for conversion, the aggregate
number of shares of common stock issued would be approximately
0.3 million.
The notes could be convertible after March 31, 2008, if the sale
price condition described above is met in any future fiscal
quarter or if any of the other conditions to conversion set
forth in the indenture governing the notes are met.
About Goodyear Tire
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. It has marketing operations in almost every country
around the world, including Indonesia, Australia, China, India,
Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan,
and Thailand. Goodyear employs more than 80,000 people
worldwide.
* * *
In June 2007, Standard & Poor's Ratings Services raised its
ratings on Goodyear Tire & Rubber Co., including its corporate
credit rating to 'BB-' from 'B+'. These ratings still apply as
of Dec. 4, 2007.
TELKOMSEL: To Lease Telecommunication Towers to Other Operators
---------------------------------------------------------------
PT Telekomunikasi Selular Indonesia President Director Kiskenda
said the company is ready to lease its telecommunication towers,
as well infrastructure including networks, to other
telecommunication operators, Antara News reports.
According to the report, Mr. Kiskenda said he still has no exact
figures on the number of towers that could be leased but it has
been estimated that 60% of the total of 21,000 BTS comprising
12,600 towers could be leased. Telkomsel has set up a special
unit to handle the leasing of its towers and infrastructure, he
added.
About Telkomsel
PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/
-- is the leading operator of cellular telecommunications
services in Indonesia by market share. By the end of June 2006,
Telkomsel had close to 29.3 million customers, which, based on
industry statistics, represented a market share of more than
50%.
Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, an
internationally, through 259 international roaming partner in 53
countries as of June 2006. The company provides its subscribers
with the choice between two prepaid cards-simPATI and kartuAs of
a pre-paid simPATI service, or the post-paid kartuHALO service,
as well as a variety of value-added services and programs.
Fitch Ratings, in August 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.
=========
J A P A N
=========
ELAN CORP: US FDA Approves TYSABRI Biologics License Application
----------------------------------------------------------------
The U.S. Food and Drug Administration has approved the
supplemental Biologics License Application of Elan Corporation
plc and Biogen Idec for TYSABRI(R) (natalizumab).
TYSABRI is approved for inducing and maintaining clinical
response and remission in adult patients with moderately to
severely active Crohn's disease with evidence of inflammation
who have had an inadequate response to, or are unable to
tolerate, conventional CD therapies and inhibitors of TNF-alpha.
TYSABRI will be available for the treatment of CD upon the
completion of key implementation activities related to the
approved risk management plan. The companies anticipate TYSABRI
will be available to Crohn's patients by the end of February
2008.
"The FDA's approval of TYSABRI is an important step forward in
the treatment of Crohn's disease," Dr. Stephen Hanauer,
professor of Medicine & Clinical Pharmacology & chief of the
Section of Gastroenterology at the University of Chicago
Pritzker School of Medicine, said. "A significant number of
patients either fail or cannot tolerate current therapies. The
unique mechanism of action of TYSABRI affords us a new class of
therapy in our fight against this debilitating disease."
The FDA granted approval based on its review of TYSABRI CD
clinical trial data and overall safety data. The approval is
accompanied by robust labeling with safety warnings; and a CD-
specific risk management plan (including the mandatory TOUCH(TM)
Prescribing Program) designed to inform prescribers, patients
and infusion centers about the use of TYSABRI and to minimize
potential risk of progressive multifocal leukoencephalopathy and
other opportunistic infections.
"We are delighted that TYSABRI will be available for Crohn's
patients and their physicians, who continue to need new
therapeutic options with novel mechanisms of action," Gordon
Francis, MD, senior vice president, Global Clinical
Development, Elan, said. "We are committed to providing
therapeutic choice to those patients who can benefit from
TYSABRI, and will continue to work with the FDA and the medical
community to implement the TOUCH(TM) Prescribing Program for
Crohn's patients."
"We are pleased with the FDA's decision to make TYSABRI
available to Crohn's patients suffering from this chronic,
debilitating disease," Evan Beckman, MD, senior vice president,
Immunology Research and Development, Biogen Idec, said.
"Despite the therapeutic advances of the TNF-alpha inhibitors in
CD, there remains a significant unmet need for Crohn's patients
who have inadequate responses to, or are unable to tolerate,
current CD therapies."
TOUCH(TM) Prescribing Program
The TOUCH(TM) (TYSABRI Outreach: Unified Commitment to Health)
Prescribing Program was developed in conjunction with the FDA to
facilitate appropriate use of TYSABRI and to assess, on an
ongoing basis, the incidence and risk factors for PML and other
serious opportunistic infections associated with TYSABRI
treatment. This program represents Elan and Biogen Idec's
commitment to making the unique benefits of TYSABRI available in
a responsible manner. The program already has been implemented
for patients receiving TYSABRI therapy for MS.
About TYSABRI
Data from the ENCORE trial showed that TYSABRI induced response
and remission among patients with moderately to severely active
Crohn's disease, and objective evidence of inflammation, as
measured by elevated C-reactive protein. After 12 weeks of
therapy, 60% of TYSABRI-treated patients attained response,
compared to 44% of placebo treated patients, and 48% of patients
had sustained response at both weeks 8 and 12, compared to 32%
of placebo treated patients (p less than 0.005 for both). Among
the patients who had inadequate response to prior treatment with
inhibitors of TNF-alpha, 38% achieved sustained response at
weeks 8 and 12.
Data from the ENACT-2 showed that an additional year of TYSABRI
therapy sustained response and remission among patients with an
initial response to TYSABRI after 3 months in ENACT-1. Of
patients with response in ENACT-1, sustained response during
ENACT-2 was seen in 61% of patients treated with TYSABRI at
every visit through an additional 6 months of therapy, compared
to 29% for placebo. This treatment difference was also
sustained through 12 months of additional therapy (54% vs. 20%).
Remission was sustained at every visit with an additional 6
months or 12 months of TYSABRI in 45% and 40% of patients,
respectively, compared to 26% and 15% of placebo treated
patients (p less than 0.005 for all comparisons). Among the
patients that had previously failed TNF-inhibitors, response and
remission was sustained at every visit through an additional 6
months of TYSABRI in 52% and 30% of patients, respectively.
Among patients on steroids and in whom a clinical response was
achieved, approximately two-thirds were able to discontinue
steroids within 10 weeks of beginning to taper steroids.
TYSABRI increases the risk of PML, an opportunistic viral
infection of the brain that usually leads to death or severe
disability. Other serious adverse events that have occurred in
TYSABRI-treated patients included hypersensitivity reactions
(e.g., anaphylaxis) and infections. Serious opportunistic and
other atypical infections have been observed in TYSABRI-treated
patients, some of whom were receiving concurrent
immunosuppressants. Herpes infections were slightly more common
in patients treated with TYSABRI. In MS and CD clinical trials,
the incidence and rate of other serious adverse events,
including serious infections, were similar in patients receiving
TYSABRI and those receiving placebo. Common adverse events
reported in TYSABRI-treated MS patients include headache,
fatigue, infusion reactions, urinary tract infections, joint and
limb pain, and rash. Other common adverse events reported in
TYSABRI-treated CD patients include respiratory tract infections
and nausea. Clinically significant liver injury has been
reported in patients treated with TYSABRI in the post-marketing
setting.
TYSABRI has previously been approved for relapsing forms of MS
in the United States and relapsing-remitting MS in the European
Union. According to data that have been published in the New
England Journal of Medicine, after two years, TYSABRI treatment
led to a 68% relative reduction (p less than 0.001) in the
annualized relapse rate compared to placebo and reduced the
relative risk of disability progression by 42-54% (p less than
0.001). In addition to the United States and European Union,
TYSABRI is also approved for MS in Switzerland, Canada,
Australia, New Zealand and Israel. TYSABRI was discovered by
Elan and is co-developed with Biogen Idec.
About the Company
Headquartered in Ireland, Elan Corporation plc (NYSE: ELN)
-- http://www.elan.com/-- is a neuroscience-based biotechnology
company. Elan shares trade on the New York, London and Dublin
Stock Exchanges. The company has locations in Bermuda and
Japan.
* * *
As reported on Oct. 15, 2007, Standard & Poor's Ratings Services
revised its outlook on Elan Corp. PLC to positive from stable
and affirmed the ratings on the company and its subsidiaries,
including the 'B' corporate credit rating.
In April 2007, in connection with the implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the corporate families in the Gaming, Lodging
and Leisure, Manufacturing, and Energy sectors, Moody's
Investors Service confirmed its B3 Corporate Family Rating for
Elan Corporation plc and assigned a B2 probability-of-default
rating to the company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
* Issuer: Elan Finance plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$150M Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
US$850M 7.75% Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$465M 8.875% Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65
GAP INC: Names Sabrina Simmons as Chief Financial Officer
---------------------------------------------------------
Gap Inc. disclosed that Sabrina Simmons, the company’s executive
vice president of corporate finance and acting chief financial
officer, has been promoted to the position of chief financial
officer, effective immediately. She will continue to report to
Glenn Murphy, Gap Inc.’s chairman and chief executive officer,
and serve on the company’s Executive Leadership Team.
“As Sabrina has taken on more responsibility over the years, her
deep knowledge of specialty retail, strong financial acumen and
personal integrity have earned her the respect of those inside
and outside the company,” Mr. Murphy said. “After working
closely with Sabrina, it became clear that she has proven
herself to be extremely capable and is the right person to
partner with me and our business leaders to drive our financial
priorities.”
Ms. Simmons, 44, joined Gap Inc. nearly seven years ago as vice
president and treasurer. Prior to being named the company’s
executive vice president and acting chief financial officer in
August 2007, Ms. Simmons served as senior vice president of
corporate finance where she was responsible for all corporate
finance functions including controllership, corporate finance
planning and analysis, investor relations, treasury, tax and
risk management.
“I’m very pleased to have this opportunity to serve as Gap
Inc.’s chief financial officer,” Ms. Simmons said. “Gap Inc.
maintains a strong commitment to financial discipline and I look
forward to working with Glenn and our business leaders to
develop near- and long-term strategies to enhance shareholder
value.”
Before joining Gap Inc., Ms. Simmons held the position of chief
financial officer for Sygen International PLC, a British
genetics company now owned by Genus. She also spent five years
at Levi Strauss & Co., in addition to finance roles at Hewlett
Packard and KPMG.
Ms. Simmons received her B.S. in Finance from the University of
California, Berkeley and her M.B.A. from the University of
California, Los Angeles. She is also a California Certified
Public Accountant.
About Gap Inc.
Headquartered in San Francisco, California, Gap Inc. (NYSE: GPS)
-- http://www.gapinc.com/-- is an international specialty
retailer offering clothing, accessories and personal care
products for men, women, children and babies under the Gap,
Banana Republic, Old Navy, Forth & Towne and Piperlime brand
names. Gap Inc. operates more than 3,100 stores in the United
States, the United Kingdom, Canada, France, Ireland and Japan.
In addition, Gap Inc. is expanding its international presence
with franchise agreements for Gap and Banana Republic in
Southeast Asia and the Middle East.
* * *
Moody's Investor Service placed Gap Inc.'s corporate family,
senior unsecured debt and probability of default ratings at
'Ba1' in February 2007. The ratings still hold to date with a
stable outlook.
HARMAN INTERNATIONAL: Promotes Ken Yasuda as Japan Manager
----------------------------------------------------------
Harman International Industries Incorporated has disclosed Ken
Yasuda, President of Harman Japan, is expanding his
responsibilities effective immediately to assume the newly
created position of Country Manager of Harman Japan. In his new
assignment, Mr. Yasuda will report directly to Harman
International Chief Executive Officer Dinesh Paliwal.
As Country Manager of Harman Japan, Mr. Yasuda will be
responsible for the management of support functions that cross
division and business lines. He will serve as the country
champion for functional best practices and will directly
participate in such business activities as project risk review,
large supply contracts or investment proposals, significant
operational changes or restructurings, organizational and legal
issues, and key human resource decisions. Furthermore, he will
serve as the chief spokesperson for Harman in Japan to build
brand equity. He will also serve as liaison to the chief
executive officer for implementation of group directives.
"The successful implementation of Harman's new best practices
management program will play an important role in driving our
long-term growth in Japan and throughout Asia," Mr. Yasuda said.
"I am honored to have been selected to lead this initiative for
Harman International, as I am convinced this approach will
produce results that will directly benefit Harman customers in
all professional, consumer, and automotive market segments."
Mr. Yasuda has served as President of Harman Japan since 1999.
Harman Japan is a unit of Harman International Industries Inc.,
the leading global producer of premium audio and infotainment
products. The group employs nearly 11,000 worldwide and
operates more than 40 facilities throughout the Americas,
Europe, Africa and Asia.
In addition to serving as President of Harman Japan, Mr. Yasuda
is also Chairman of the International Audio Society of Japan
http://www.iasj.info/
The IASJ is a voluntary association of importers and
manufacturers of advanced audio products. The group's objective
is to promote the distribution and innovation of world-class
audio products and related devices. It was formerly called the
Society of Imported Audio Products Distributors.
Headquartered in Washington, D.C., Harman International
Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes
audio systems through auto manufacturers, including
DaimlerChrysler, Toyota/Lexus, and General Motors. Also the
company makes audio equipment, like studio monitors, amplifiers,
microphones, and mixing consoles for recording studios, cinemas,
touring performers, and others. Harman Int'l has operations in
Japan, Mexico and France.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implications for the 'BB-' corporate credit rating
on Harman International Industries Inc. to positive from
developing.
NIPPON PAPER: Net Income Lowers to JPY4.6BB for 2007 Half-Year
--------------------------------------------------------------
Nippon Paper Group, Inc., posted a net income of JPY4.6 billion
for the six-month period ended September 30, 2007, a
JPY2.3-billion decline from the JPY6.9-billion net income
recorded for the same period in 2006.
Operating income dipped 27.3% to JPY14.4 billion compared to the
previous corresponding period's JPY19.7 billion. Ordinary
income went down to JPY13.9 billion, a 31.2% difference from the
JPY20.2 billion in 2006. Net sales climbed 2.8% to
JPY597 billion from JPY581.1 billion a year ago.
For the full fiscal year ending March 31, 2008, Nippon Paper
projects a net income totaling JPY5.0 billion, operating income
of JPY30.0 billion, ordinary income of JPY30.0 billion and net
sales of JPY1.2 trillion.
Nippon Paper Group, Inc. -- http://www.np-g.com/-- is a Japan-
based holding company mainly engaged in the paper manufacturing
business. The Company is active in four business segments. Its
Paper and Pulp segment manufactures and sells foreign paper,
paperboards and paper pulp, as well as paper for household,
newspaper and phone directory use. This segment is also
involved in the import sale and overseas sale of paper products.
The Paper-related segment offers processed paper products, such
as paper containers and adhesive-related products, in addition
to cardboards, chemical products and others. Its Wooden
Material, Construction Material and Civil Engineering-related
segment is engaged in the purchase and sale of wooden materials,
the purchase, manufacture and sale of construction materials and
the civil engineering-related business. The Others segment is
involved in the distribution business, the manufacture and sale
of soft drinks, the supply of electrical power and the leisure
business, among others.
The Troubled Company Reporter Asia-Pacific reported on
September 20, 2007, that Standard & Poor's Rating Agency
affirmed its BB+ long-term corporate credit rating with a stable
outlook on Nippon Paper Group Inc. reflecting the company's
prospects for improved profitability and cash flow generation
and a limited increase in the company's financial burdens
despite the continuing high level of capital expenditures.
SANYO ELECTRIC: To Sell Mobile Phone Unit to Kyocera for JPY50BB
----------------------------------------------------------------
Sanyo Electric Co. said it will sell its mobile phone operations
to Kyocera Corp., Associated Press reports.
According to the report, the deal, which has yet to be set on
paper, will be cost Kyocera about JPY40-50 billion. The deal is
scheduled to be completed by April 1.
Reuters relates that according to a Sanyo spokesman, the final
selling price of Sanyo's mobile phone unit will be set by
September.
Under the agreement, about 2,000 employees in Sanyo's mobile
phone operation will be transferred to Kyocera, which will
continue to use the Sanyo brand on handsets at home and
overseas, relates AP.
AP notes that, in a statement, Sanyo said that with the
"intensified competition from rival companies," and "in order to
meet the best interest of the business and its stockholders,
Sanyo has. . .concluded that a transfer of the business to
Kyocera would be the ideal situation."
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
SANYO ELECTRIC: To Introduce Age Limit for Executives in April
--------------------------------------------------------------
Sanyo Electric Co. will introduce an age limit for board members
and executive officers in April as part of its efforts to
rejuvenate its management, Japan Times reports, citing company
officials.
Japan Today explains that under the system, board members and
executive officers with the titles of senior managing director
or higher will retire at age 65. Other executive offices, on
the other hand, will leave the company at 63, the officials
said.
The Times notes that the mandatory retirement system will not
cover board members from outside the company or auditors.
The system's debut will coincide with the start of Sanyo's new
three-year plan aimed at rebuilding itself after being hit by
poor earnings and an accounting scandal, the Times says.
The report recalls that late in 2007, Sanyo made major
corrections to its unconsolidated earnings for the past several
years. A panel of outside experts that probed the accounting
scandal blamed the company's habit of retaining long-term
management by a founding family member.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
SOFTBANK CORP: To Offer Discounts to Students on February 1
-----------------------------------------------------------
Softbank Corp. will introduce special discounts for students
attending educational institutions from elementary schools to
universities on February 1, reports Jiji Press.
According to the report, new subscribers will be exempted from
the basic monthly fee of JPY980 for the first three years, while
the minimum fixed monthly fee for data communications will be
lowered to JPY0 from the current JPY1,029-JPY4,410.
In addition, Softbank, states Jiji Press, will open a special
portal site for student subscribers on March 1 to offer 12,000
content titles including games free of charge.
Reuters quotes Softbank President Masayoshi Son as saying,
"Right now, winning more users comes first."
Mr. Son, relates Reuters, said that this offer will lower its
revenue per person, but did not elaborate on the earnings impact
of the new plan.
About Softbank
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation. SoftBank was
established on September 3, 1981. The company operates in eight
business segments:
* Broadband Infrastructure Segment
* Fixed-line Telecommunications Segment
* e-Commerce Segment
* Internet Culture Segment
* Broadmedia Segment
* Technology Services Segment
* Media & Marketing Segment
* Overseas Funds Segment
Softbank is also involved with leisure and service operations,
e-finance, holding company functions for overseas operations,
and back-office services in Japan. SoftBank's corporate profile
includes various other companies such as Japanese broadband
company Cable & Wireless IDC, cable company BB-Serve, and gaming
company GungHo Online Entertainment. In 2006, SoftBank bought
Vodafone Japan, giving it a stake in Japan's US$78 billion
mobile market. As of March 31, 2007, the company's paid-in
capital was JPY163.3 billion.
* * *
The Troubled Company Reporter-Asia Pacific reported on
June 7, 2007, that Standard & Poor's Rating Agency lifted its
long-term corporate credit and senior unsecured debt ratings to
BB from BB- in light of the company's increasing earnings
stability. The outlook for the long-term credit rating is
stable. Moody's Investors Service, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2from Ba3, concluding a review initiated on March 17, 2006,
when the company announced that it would acquire a 97.7% stake
in mobile phone giant Vodafone Group's Japanese unit, Vodafone
K.K.
SOFTBANK CORP: Objects to Fiber-Optic Access Fee Charged by NTT
---------------------------------------------------------------
Softbank Corp. objects against the fee charged by rival Nippon
Telegraph & Telephone Corp. for use of its fiber-optic lines by
other carriers, Jiji Press reports.
Jiji Press states that Softbank believes the fees would still be
at a level that would not allow other carriers to compete with
NTT. NTT's two regional units notified the telecommunications
ministry earlier this month of their plans to lower the access
fee to around JPY5,000 per line on April 1.
According to Softbank BB Corp. Managing Director Tetsuya Yuge,
the method that NTT uses to calculate the access fee's
appropriate level is problematic, questioning the way NTT sets
the size of demand for calculation, relates Jiji Press.
Also, Mr. Yuge urged NTT to start leasing its fiber-optic lines
from one line, instead of eight lines as a unit, in order to
streamline the leasing process and promote the spread of fiber-
optic services, adds Jiji Pres.
Softbank, notes Jiji Press, estimates that the leasing fee can
be reduced to JPY617 per line, considerably less than the
current level, under the condition that one-line leasing is
available and the line's depreciation period is set at 30 years.
About Softbank
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation. SoftBank was
established on September 3, 1981. The company operates in eight
business segments:
* Broadband Infrastructure Segment
* Fixed-line Telecommunications Segment
* e-Commerce Segment
* Internet Culture Segment
* Broadmedia Segment
* Technology Services Segment
* Media & Marketing Segment
* Overseas Funds Segment
Softbank is also involved with leisure and service operations,
e-finance, holding company functions for overseas operations,
and back-office services in Japan. SoftBank's corporate profile
includes various other companies such as Japanese broadband
company Cable & Wireless IDC, cable company BB-Serve, and gaming
company GungHo Online Entertainment. In 2006, SoftBank bought
Vodafone Japan, giving it a stake in Japan's US$78 billion
mobile market. As of March 31, 2007, the company's paid-in
capital was JPY163.3 billion.
* * *
The Troubled Company Reporter-Asia Pacific reported on
June 7, 2007, that Standard & Poor's Rating Agency lifted its
long-term corporate credit and senior unsecured debt ratings to
BB from BB- in light of the company's increasing earnings
stability. The outlook for the long-term credit rating is
stable. Moody's Investors Service, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2from Ba3, concluding a review initiated on March 17, 2006,
when the company announced that it would acquire a 97.7% stake
in mobile phone giant Vodafone Group's Japanese unit, Vodafone
K.K.
=========
K O R E A
=========
BURGER KING: Brings In Robert Perkins as Vice President
-------------------------------------------------------
Burger King Corp. has appointed Robert Perkins as vice
president, inclusion and talent management. In this newly
created position, Perkins will oversee BKC's internal and
external inclusion strategies, and be responsible for ensuring
progress against objectives in each of the company's inclusion
pillars. These four pillars consist of workforce, community,
guests and operators/suppliers. Perkins will also be
responsible for BKC's talent management group. He will oversee
management development, including talent assessment and reviews,
leadership development and training, and succession planning.
He reports to Pete Smith, chief human resources officer.
"Robert's unique experience enables us to merge our talent
management and inclusion departments under one person and most
effectively deliver against our people strategies," Mr. Smith
said. "We also believe Robert can maximize the opportunities
around our inclusion initiative as we incorporate inclusion into
our business strategies. Our inclusion pillars were designed to
reinforce the importance of working as one cohesive group, while
respecting and embracing all the differences we bring to the
BK(R) brand every day. In addition, Robert will work closely
with the Diversity Action Council to elevate the importance of
inclusion among our employees and franchisees."
Mr. Perkins comes to BKC as a senior human resources executive
with extensive global experience in the consumer products, media
and entertainment industries. He worked most recently at Sony
BMG Music where he directed the company's efforts in management
and executive development, talent acquisition and diversity
compliance. His prior experience also includes leadership roles
of increasing responsibility at Time Warner, Philip Morris,
Kraft Foods, Avon Products and Proctor and Gamble. At several
of these corporations, he assisted senior management with
developing company-wide diversity business plans, integrating
diversity into all systems and processes, and coaching managers
on diversity awareness and skills.
Mr. Perkins holds a bachelor's degree in business
administration/marketing from the University of Illinois.
Headquartered in Miami, Florida, The Burger King (NYSE: BKC)
-- http://www.burgerking.com/-- operates more than 11,000
restaurants in more than 69 countries and territories worldwide.
Approximately 90% of Burger King restaurants are owned and
operated by independent franchisees, many of them family owned
operations that have been in business for decades. Burger King
Holdings Inc., the parent company, is private and independently
owned by an equity sponsor group comprised of Texas Pacific
Group, Bain Capital and Goldman Sachs Capital Partners.
Burger King Corp. operates restaurants in the Latin American,
Caribbean and Mexican Region. The company's first international
restaurant opened in 1963 in Puerto Rico. Since 1994, Burger
King has opened more than 300 restaurants in the Latin American
region, producing some of the strongest comparable store sales
growth for the brand around the world. Burger King(R)
restaurants in Latin America serve approximately 1,600 customers
per day each, making them some of the highest volume restaurants
in the system. Beginning in 1982, BK and its franchisees began
operating stores in several East Asian countries, including
Japan, Taiwan, Singapore and Korea
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2007, Moody's Investors Service has affirmed the Ba2
corporate family rating of Burger King Corporation. Moody's also
affirmed the Ba2 rating assigned to the company's US$250 million
senior secured term loan A, US$1.1 billion senior secured term
loan B, and US$150 million senior secured revolving credit
facility. In addition, Moody's changed the outlook for Burger
King to stable from negative.
LYONDELL CHEMICAL: S&P Lowers Senior Secured Debt Rating to B
-------------------------------------------------------------
Standard & Poor's Ratings Services has revised its recovery
ratings on the US$100 million notes due 2010 and the US$225
million notes due 2020 issued by Lyondell Chemical Co. to '5'
from '1'. The senior secured debt rating on these instruments
have been lowered to 'B' from 'BB', one notch lower than the
corporate credit rating on the company's parentLyondellBasell
Industries AF S.C.A. (formerly Basell AF S.C.A. B+/Stable/--).
The recovery ratings of '5' indicate S&P's expectation of modest
(10%-30%) recovery in the event of a payment default.
At the same time, the recovery rating on subsidiary Equistar
Chemicals L.P.'s US$150 million senior notes due 2026 has been
revised to '4' from '1' and the senior secured debt rating on
these issues lowered to 'B+' from 'BB', the same level as the
corporate credit rating. The recovery rating of '4' indicates
S&P's expectation of average (30%-50%) recovery in the event of
a payment default.
In addition, the 'B-' senior unsecured debt rating on the
proposed US$2.5 billion senior unsecured notes originally to be
issued by LyondellBasell Finance Co. Ltd. have been withdrawn,
pending finalization of the structure of the debt facilities to
refinance the existing US$8 billion bridge loan.
The recovery rating on the proposed US$5.5 billion second-lien
notes to be issued by LyondellBasell Finance Co. Ltd. has been
revised to '5' from '4' and the issue rating lowered to 'B' from
'B+', one notch lower than the corporate credit rating. The
recovery rating of '5' indicates S&P's expectation of modest
(10%-30%) recovery in the event of a payment default.
The ratings on the new US$12.45 billion senior secured debt
facilities issued by Basell Holdings B.V., Lyondell Chemical
Co., and certain of their subsidiaries, and guaranteed by
LyondellBasell Industries AF S.C.A., and certain of their
subsidiaries, remain unchanged at 'BB', two notches higher than
the corporate credit rating, with a recovery rating of '1'. The
recovery rating of '1' reflects S&P's expectation of very high
(90%-100%) recovery in the event of a payment default.
The ratings on the following instruments remain unchanged at
'B-', two notches lower than the corporate credit rating on the
guarantor, LyondellBasell Industries AF S.C.A.:
-- The US$1.3 billion equivalent bonds due 2015 issued by
LyondellBasell Industries AF S.C.A. and the US$300
million bonds due 2027 issued by Basell Finance Co. B.V.
-- The US$250 million senior unsecured notes due 2026 issued
by related subsidiary Millennium America Inc.
At the same time, the ratings have been withdrawn on all debt
facilities issued by the group that had been refinanced as part
of the recent acquisition and new debt issuance.
The rating actions follow S&P's review of the security
structure, with the benefit of final documentation. The
security package for the legacy Equistar and Lyondell bonds is
considerably weaker than originally envisaged. The security
provided is shared with the senior secured term debt, which
leads to a significant dilution of potential recoveries.
The ratings on these legacy notes factor in material uncertainty
regarding the outcome of a potential insolvency process,
resulting from the intricacies and complexities of the security
structure. The order of distribution of proceeds from different
jurisdictions governing the different collateral pools could
affect recoveries either positively or negatively. S&P's
expectation is that any insolvency filings would take place both
in Europe and the United States at similar times, with the
outcome for the legacy bonds being difficult to predict.
The revision of the recovery rating on the proposed second-lien
notes reflects S&P's expectation that any issuance will for the
time being rank pari passu with the unrefinanced portion of the
second-lien bridge loan. The total amount of pari passu ranking
second-lien debt is expected to total no more than US$8 billion.
In the event that the bridge loan is partially refinanced with
less-well secured or unsecured debt, the ratings on this
instrument would be reviewed.
Recovery expectations for the main senior secured instruments
are underpinned by an extensive security and guarantee package.
The group benefits from an extensive and good quality asset
base, as well as a leading market position as the No. 3 producer
of chemical products worldwide, which support going-concern
valuation and a distressed enterprise value of about US$18.5
billion. After distribution through a particularly complex
waterfall, senior secured lenders are expected to achieve very
high recoveries, with more varied recovery prospects for the
less-well secured or more junior debt instruments.
The 'B-' ratings on the various unsecured debt instruments are
two notches lower than the corporate credit rating of
LyondellBasell Industries AF S.C.A. and reflect the overall
level of subordination to prior-ranking secured or guaranteed
debt. The instruments nevertheless benefit from different
guarantee packages and therefore rank differently between each
other.
Ratings Lowered:
To From
Lyondell Chemical Co.: ----------
-- Senior secured debt (US$225-mil. due 2020) B BB
-- (Recovery rating) 5 1
-- Senior secured debt (US$100-mil. due 2010) B BB
-- (Recovery rating) 5 1
Equistar Chemicals L.P.:
-- Senior secured debt B+ BB
-- (Recovery rating) 4 1
LyondellBasell Finance Co. Ltd.:
-- Proposed US$5.5 billion second lien notes B B+
-- (Recovery rating) 5 4
Rating Withdrawn:
LyondellBasell Finance Co. Ltd.:
-- Proposed senior unsecured debt NR B-
Headquartered in Houston, Texas, Lyondell Chemical Company
(NYSE: LYO) -- http://www.lyondell.com-- is North America's
third-largest independent, publicly traded chemical company.
Lyondell manufacturers basic chemicals and derivatives including
ethylene, propylene, titanium dioxide, styrene, polyethylene,
propylene oxide and acetyls. It also refines heavy, high-sulfur
crude oil and produces gasoline-blending components. It
operates on five continents and employs approximately 11,000
people worldwide. In the Asia-Pacific, the company has
locations in Australia, China, Japan, New Zealand, Singapore,
Taiwan and Korea.
TRIGEM COMPUTER: Wants Toshiba's Prepetition Lawsuit Enjoined
-------------------------------------------------------------
TriGem Computer, Inc., asks the U.S. Bankruptcy Court for the
Central District of California to permanently enjoin the
continuation of a prepetition lawsuit commenced by Toshiba
Corporation, David Packard and John E. Cock against the Korean
PC maker with the U.S. District Court for the Central District
of California.
In the alternative, TriGem suggests that the Bankruptcy Court
allow its bankruptcy case under Chapter 15 of the U.S.
Bankruptcy Code, to remain open in perpetuity so that the
automatic stay will continue and obviate the need to permanently
enjoin the continuation of Toshiba, et al.'s litigation.
Toshiba is a company based in Japan, while Mr. Packard resides
in Vidor, Texas. Mr. Hock lives in Round Rock, Texas.
Toshiba et al.'s lawsuit was automatically stayed upon TriGem's
Chapter 15 bankruptcy filing on November 3, 2005.
On December 8, 2005, Judge Thomas Donovan approved TriGem's
request to recognize its corporate reorganization proceedings
before the Suwon District Court, Bankruptcy Division, in the
Republic of Korea, as a foreign main proceeding under Chapter
15.
Toshiba filed a proof of claim against TriGem in the CRA case
that was subsequently disallowed by the Korean Bankruptcy Court.
Messrs. Packard and Hock did not file a proof of claim in the
CRA Case.
Toshiba then filed a notice of appearance and request for notice
in TriGem's Chapter 15 case. The notice required with respect
to the deadline to file claims in the CRA Case was duly given.
Charles D. Axelrod, Esq., at Stutman, Treister & Glatt, P.C., in
Los Angeles, California, on behalf of Il-Hwan Park, the foreign
representative for TriGem, says TriGem's plan of reorganization
has been accepted by creditors and confirmed by the Korean
Bankruptcy Court.
It is anticipated that TriGem's CRA Case will be closed either
in late 2007 or early 2008, and TriGem may file a request to
close its Chapter 15 case once the CRA case is closed, according
to Mr. Axelrod.
Toshiba and Messrs. Packard and Hock will neither receive nor
retain any claim against or interest in TriGem under the
confirmed plan in the CRA Case. Under Korean Law, the
Plaintiffs have no enforceable claim against or interest in
TriGem.
Mr. Axelrod notes that the automatic stay against the
continuation of the Plaintiffs' litigation against TriGem will
terminate when TriGem's Chapter 15 case is closed. Under
Section 1521 of Chapter 15 of the Bankruptcy Code, the
Bankruptcy Court has the power to permanently enjoin the
continuation of the Plaintiffs' litigation, Mr. Axelrod argues.
An injunction is sought to enforce TriGem's confirmed plan in
the CRA Case and to enforce the disallowance of the Plaintiffs'
prepetition claims in the CRA Case, in order to obviate any
attempt by Toshiba et al., from recovering the disallowed claims
in TriGem's Chapter 15 case, Mr. Axelrod says.
Mr. Axelrod explains that substantial precedent exists for
granting comity to the bankruptcy laws of South Korea since
federal courts in the United States have recognized that
fairness and due process consistent with that practiced in the
U.S. is practiced in the courts of South Korea.
In addition, the only way to assure that the alleged claims of
the Plaintiffs against TriGem are consistently settled is to
have a single court to make the determination and that
determination has already been made in the CRA Case, Mr. Axelrod
contends.
About TriGem Computer
Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer
Inc. -- http://www.trigem.com/-- manufactures desktop PCs,
notebook PCs, LCD monitors, printers, scanners, other computer
peripherals, and PIDs and supplies over four million PCs a year
to clients all over the world. Il-Hwan Park, the Foreign
Representative, filed a chapter 15 petition on Nov. 3, 2005
(Bankr. C.D. Calif. Case No. 05-50052). Charles D. Axelrod,
Esq., at Stutman Treister & Glatt, P.C., represents the Foreign
Representative in the United States.
TriGem America Corporation, an affiliate of the Debtor, filed
for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif.
Case No. 05-13972). TriGem Texas, Inc., another affiliate of
the Debtor, also filed for chapter 11 protection on June 8,
2005 (Bankr. C.D. Calif. Case No. 05-14047).
On Sept. 13, 2007, TriGem filed Draft Plan Amendments in Korea
and on September 20 filed a Final Plan Amendment. The Korean
Court confirmed Trigem's Amended Plan on Oct. 4, 2007. (TriGem
Bankruptcy News, Issue No. 13 Bankruptcy Creditors' Service,
Inc., 215/945-7000).
===============
M A L A Y S I A
===============
ASPEN TECHNOLOGY: Deloitte Declines Re-Appointment as Accountant
----------------------------------------------------------------
Aspen Technology Inc. disclosed that its independent registered
public accounting firm Deloitte & Touche LLP, is declining to
stand for re-appointment for the fiscal 2008 audit.
There is no disagreement between the company and Deloitte on any
matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure.
AspenTech's Audit Committee has begun the process of selecting a
successor independent registered public accounting firm, and it
will make an announcement when this process concludes.
Deloitte's decision does not impact their engagement to complete
the audit of AspenTech's financial statements as of June 30,
2006 and 2007 and for each of the three years in the period
ending June 30, 2007. In addition, Deloitte has agreed to be
engaged for the review of the company's interim consolidated
financial statements included in its Quarterly Report on Form
10-Q for the quarter ended Sept. 30, 2007.
While substantial progress has been made in these efforts, the
company has requested from the Nasdaq Listings Qualification
Panel an additional extension to February 8 to file the above
financial statements and related reports with the SEC and comply
with Nasdaq listing requirements. There can be no assurance
that the Nasdaq Listing Qualifications panel will grant the
company's request, and failure to grant the request would likely
result in the company's securities being delisted from the
Nasdaq Global Market.
Brad Miller, Aspen's Chief Financial Officer, said "We believe
we are in the final stages of completing our work on the
accounting positions related to income taxes. Once completed,
this would bring to close the previously disclosed detailed
review of our financial accounting and put the company in a
position to become current in its filings."
About Aspen Technology
Based in Cambridge, Massachusetts, Aspen Technology Inc.
(Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software
and professional services that help process companies improve
efficiency and profitability by enabling them to model, manage
and control their operations. The company has operations in
Brazil, Malaysia and France.
* * *
Aspen Technology carries Moody's B2 long-term corporate family
rating and Caa1 equity linked rating. Moody's said the outlook
is stable.
The company carries Standard & Poor's B long-term foreign and
local issuer credit ratings, with negative outlook.
=====================
P H I L I P P I N E S
=====================
FEDDERS CORP: Court Extends Plan Filing Deadline Until Feb. 29
--------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
extended Fedders Corporation and its debtors-affiliates'
exclusive periods to:
a) file a Chapter 11 plan until Feb. 29, 2008; and
b) solicit acceptances of that plan until April 29, 2007.
As reported in the Troubled Company Reporter on Dec. 28, 2007,
the Debtors proposed June 17, 2008, as the last day within which
they can file a plan.
In their request, the Debtors told the Court that they need more
time to complete a proposed asset sale process and develop a
confirmable plan, without prejudicing any party in interest.
Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.
The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No. 07-11182). Its debtor-affiliates
filed for separate Chapter 11 cases. Norman L. Pernick, Esq. of
Saul, Ewing, Remick & Saul LLP represents the Debtors in their
restructuring efforts. The Debtors have selected Logan &
Company Inc. as claims and noticing agent. The U.S. Trustee for
region 3 has appointed an Official Committee of Unsecured
Creditors on this case. When the Debtors filed for protection
from its creditors, it listed total assets of US$186,300,000 and
total debts of US$322,000,000.
The company has production facilities in the United States in
Illinois, North Carolina, New Mexico, and Texas and
international production facilities in the Philippines, China
and India.
FEDDERS CORP: Completes $7.5 Million Sale of Affiliate's Assets
---------------------------------------------------------------
Fedders Corporation has completed the sale of its Fedders
Islandaire Inc. subsidiary's assets to Robert E. Hansen, Jr.,
president of Islandaire.
As reported in the Troubled Company Reporter on Jan. 16, 2008,
the Honorable Brendan L. Shannon of the U.S. Bankruptcy
Court for the District of Delaware approved Fedders Corp. and
its debtor-affiliates' proposed bidding procedure for the sale
of substantially all of Fedders Islandaire Inc.'s assets for
US$7.5 million.
The Debtors tell the Court that it entered into an asset
purchase agreement dated Dec. 24, 2007, with Robert E. Hansen,
Jr., for the sale of Fedders Islandaire's assets.
About Fedders Corporation
Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.
The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No. 07-11182). Its debtor-affiliates
filed for separate Chapter 11 cases. Norman L. Pernick, Esq.,
Irving E. Walker, Esq., and Adam H. Isenberg, Esq., of Saul,
Ewing, Remick & Saul LLP represents the Debtors in their
restructuring efforts. The Debtors have selected Logan &
Company Inc. as claims and noticing agent. The U.S. Trustee for
Region 3 has appointed an Official Committee of Unsecured
Creditors in this case. When the Debtors filed for protection
from its creditors, it listed total assets of US$186,300,000 and
total debts of US$322,000,000.
The company has production facilities in the United States
in Illinois, North Carolina, New Mexico, and Texas and
international production facilities in the Philippines, China
and India.
GEOGRACE RESOURCES: Stockholders Tap 11 New Directors for 2008
--------------------------------------------------------------
The stockholders of GEOGRACE Resources Philippines Inc. have
appointed 11 new directors during their annual meeting held last
Friday, January 18, 2008.
These directors are:
* Atty. Renato V. Puno
* Jerry C. Angping
* Atty. Knrisnamurti A. Africano
* Delfin S. Castro Jr.
* Florentino M. Herrera III
* David L.Kho
* Bertrand C. Yao
* Lino T. Coloma
* Atty. Arsenio C. Cabrera Jr.
* Florencio T. Mallare (Independent)
* Edgardo del Fonso (Independent)
However, Mr. Coloma resigned as director during the
organizational meeting of the board of directors held
immediately after the stockholders' meeting. Michael Defensor
was elected his place.
These officers were elected during the meeting:
* Atty. Renato V. Puno as Chairman
* Atty. Khrisnamurti A. Africano as Vice-chairman
* Delfin S. Castro Jr. as Treasurer, Compliance Officer
* Atty. Arsenio C. Cabrera Jr. as Corporate secretary
* Atty. Amor Roselle S. Herrera as Asst. Corporate Secretary
Headquartered in Makati City, Philippines, Geograce Resources --
fka Global Equities, Inc. -- was originally incorporated as La
Suerte Gold Mining Corporation on April 20, 1970, primarily to
engage in the exploration, exploitation, and development of
mineral resources; to purchase, lease and otherwise acquire
mining claims and concessions anywhere in the Philippines; and
to carry on the business of mining, extracting, smelting,
treating, and otherwise producing and dealing in metals and
minerals of all kinds including all its products and by-
products.
As of Mar. 31, 2007, the company had total assets of
PHP8.37 million and total liabilities of PHP21.80 million,
resulting in a capital deficiency of PHP13.43 million.
=================
S I N G A P O R E
=================
ADVANCED MICRO: Posts US$1.7 Billion Net Loss in Fourth Quarter
---------------------------------------------------------------
Advanced Micro Devices Inc. reported fourth quarter 2007 revenue
of US$1.770 billion, an 8 percent increase compared to the third
quarter of 2007 and flat compared to the fourth quarter of 2006.
In the fourth quarter of 2007, Advanced Micro reported a net
loss of US$1.772 billion, or US$3.06 per share, and an operating
loss of US$1.678 billion. Fourth quarter net loss included
charges of US$1.675 billion, or US$2.89 per share, of which
US$1.669 billion were operating charges. The non-cash portion
of the fourth quarter charges was US$1.606 billion.
In the third quarter of 2007, Advanced Micro reported revenue of
US$1.632 billion, a net loss of US$396 million, and an operating
loss of US$226 million. In the fourth quarter of 2006, Advanced
Micro reported revenue of US$1.773 billion, a net loss US$576
million, and an operating loss of US$529 million.
For the year ended Dec. 29, 2007, Advanced Micro achieved
revenue of US$6.013 billion, a 6 percent increase from 2006. The
fiscal 2007 net loss was US$3.379 billion. Included in the 2007
net loss were non-cash charges of US$2.007 billion. Advanced
Micro reported revenue of US$5.649 billion and a net loss of
US$166 million for fiscal 2006.
"We were close to break-even operationally for the quarter,
reducing our fourth quarter non-GAAP operating loss to US$9
million. We improved gross margin by three points sequentially,
driven by increased shipments of new products, higher average
selling prices and cost containment actions," said Robert J.
Rivet, Advanced Micro's Chief Financial Officer. "We shipped a
record number of microprocessor units in the quarter, including
nearly four hundred thousand quad-core processors."
Fourth quarter 2007 gross margin was 44 percent, compared to 41
percent in the third quarter of 2007 and 36 percent in the
fourth quarter of 2006.
Computing Solutions
Fourth quarter Computing Solutions segment revenue was US$1.402
billion, a 9 percent sequential increase. Server, mobile and
desktop processor revenue each increased quarter-over-quarter,
driving an 11 percent sequential increase in microprocessor
revenue. Record desktop and mobile processor unit shipments
drove a 7 percent sequential increase in overall microprocessor
unit shipments, resulting in record microprocessor unit
shipments. Server processor unit shipments increased 22 percent
sequentially, driven by a significant increase in quad-core AMD
Opteron(TM) processor shipments.
Graphics
Graphics segment revenue was US$259 million, a three percent
sequential increase. The growth was due to demand for AMD's new
ATI Radeon HD(TM) 3800 series and continued adoption of the ATI
Radeon HD 2000 series of graphics processors.
Consumer Electronics
Fourth quarter Consumer Electronics segment revenue was US$109
million, a 12 percent increase compared with US$97 million in
the third quarter of 2007. The increase was driven largely by
increased game console royalties and sales of products for the
handheld market.
Current Outlook
Advanced Micro's outlook statements are based on current
expectations.
In the seasonally down first quarter, Advanced Micro expects
revenue to decrease in line with seasonality.
Additional Quarterly Highlights:
* The Quad-Core AMD Opteron processor was named Chip of the
Year by CRN. The publication called the processor a "game
changer" because of its blend of "blazing" speed and
energy efficiency.
* Advanced Micro launched its new desktop platform,
"Spider," empowering enthusiasts with the ultimate
computing experience. Spider combines AMD Phenom(TM)
quad-core processors, ATI Radeon HD 3800 series graphics
processors and the AMD 7-Series chipset.
* Since their introduction, ATI Radeon HD 3800 series cards
have won more than 25 editorial awards worldwide,
including HardOCP.com's prestigious Gold Award in the US,
Clubic.com's 'Tres Bon' award in France, and Hexus.net's
'Good Value Gaming' award in the UK.
* Toshiba launched its first AMD-based business notebooks,
the Satellite Pro A210 Series, and expanded its AMD-based
consumer notebook offerings.
* Advanced Micro received net investment proceeds of US$608
million from a wholly owned subsidiary of Mubadala
Development Company, a strategic investment and
development company headquartered in Abu Dhabi, the
capital of the United Arab Emirates.
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.
BENCHMARK ELECTRONICS: Moody's Puts Ba2 Rating on US$100MM Debt
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 (LGD-3, 39%) rating
to Benchmark Electronics, Inc.'s new 5-year US$100 million
senior secured revolving credit facility due 2012 and affirmed
the company's Ba3 corporate family rating. The rating outlook
is stable.
Proceeds from the new credit facility are intended to be used
for working capital needs and general corporate purposes. It
replaces an unrated US$100 million revolver that was set to
expire in January 2008. The new credit facility includes an
accordion feature under which total commitments may be increased
by an additional US$100 million.
The rating for the US$100 million senior secured revolver
reflects the overall probability of default of the company, to
which Moody's assigns a probability of default rating of Ba3.
Under Moody's Loss Given Default methodology, the new senior
secured credit facilities are rated one notch above the Ba3 CFR
given that they receive sufficient support from the company's
senior unsecured non-debt obligations, which provide debt
cushion for any drawings under the secured bank credit facility.
The credit facility is guaranteed by the borrower's domestic
subsidiaries, and is secured by: (1) substantially all assets of
the borrower, subsidiary guarantors and the holding company; (2)
100% of the capital stock of the borrower and domestic
subsidiaries; and (3) 65% of the voting capital stock of foreign
subsidiaries.
The facility contains financial covenants requiring the
maintenance of certain financial ratios (i.e., financial
leverage equal to or less than 2.75 debt to EBITDA, 1.2 minimum
fixed charge coverage and minimum consolidated tangible net
worth).
These new ratings were assigned:
-- Probability of Default Rating -- Ba3
-- US$100 Million Senior Secured Revolving Credit Facility
due 2012 -- Ba2 (LGD-3, 39%)
This rating was affirmed:
-- Corporate Family Rating -- Ba3
Benchmark Electronics' Ba3 CFR reflects the company's minimal
leverage and niche position as a Tier 1 electronics
manufacturing services provider of products in the non-consumer
computing, telecommunications and medical devices markets.
While the company has historically generated operating margins
in the upper range for the industry (4-5% range), the company
experienced margin erosion in the third quarter of 2007 due to a
decrease in activity for its largest customer, slower program
ramps and softer end-market demand. The weakness in the most
recent quarter illustrates the volatility inherent within the
electronics manufacturing services industry, exacerbated by
client concentration and heightened competition from industry
consolidation (i.e., Flextronics' acquisition of Solectron).
Furthermore, Moody's expects the company to continue to face
pricing pressures from OEM customers as well as from Asian
competitors.
Moody's rating outlook is stable, reflecting the expectation
that: (1) revenue levels will bounce back in the near term once
new programs begin to ramp up; (2) bookings levels will remain
healthy, which was the case during the third quarter of 2007
with approximately US$100-US$125 million of new bookings; and
(3) Benchmark Electronics should continue to be free cash flow
positive in 2008. The stable outlook also reflects Moody's view
that it does not expect the company's credit profile to change
significantly over the intermediate term.
The company's revenue and EBITDA for the twelve months ended
Sept. 30, 2007 were US$2.9 billion and US$168 million,
respectively.
Based in Angleton, Texas, Benchmark Electronics Inc. (NYSE: BHE)
-- http://www.bench.com/-- manufactures electronics and
provides services to original equipment manufacturers of
computers and related products for business enterprises, medical
devices, industrial control equipment, testing and
instrumentation products, and telecommunications equipment. The
company's global operations include facilities in The
Netherlands, Romania, Ireland, Brazil, Mexico, Thailand,
Singapore, and China.
===============
T H A I L A N D
===============
DOLE FOOD: Units Appoint Three New Managers
-------------------------------------------
The Dole Food Co.'s units have appointed three new managers,
Fresh Plaza reports.
According to Fresh Plaza, Dole Fresh Fruit named Yvonne
Rentmeester as marketing services manager and appointed Odalis
Hawit-Rivera as brand manager. Meanwhile, Dole Fresh Vegetables
named Keith Kelley as marketing manager for new products.
Fresh Plaza relates that Ms. Rentmeester will manage the
technical services department, as well as banana ripening and
product handling from warehouse all the way through the retail
store. She will be responsible for Dole Fresh's marketing
representatives and the merchandising program.
Dole Fresh's marketing director David Bright commented to Fresh
Plaza, "This move integrates the activities of the technical
sand merchandising departments. Yvonne's experience, management
style, and attention to detail will greatly leverage the
resources of two departments into a strong program that
troubleshoots potential problems, identifies opportunities and
communicates Dole Fresh messages down to the retail store
level."
Fresh Plaza notes that Ms. Rentmeester started at Dole Fresh
Fruit as a technical service representative in November 1997.
She has managed the department since January 2000.
Ms. Hawit-Rivera will leverage market research and head Dole's
marketing to deliver value for clients and drive long-term sales
through message positioning, new product development, Fresh
Plaza says. Ms. Hawit-Rivera had held various positions at
Pharmavite, LLC, most recently as associate brand manager before
joining Dole Fresh.
"Odalis brings extensive experience in trade and consumer
marketing to Dole. She has the strong background in the
development and commercialization of new products that we have
been seeking," Mr. Bright commented to Fresh Plaza.
Meanwhile, Mr. Kelley's responsibilities Dole Fresh Vegetables
will be specifically concentrated on the firm's cross-functional
resources against top priority new product segments, Fresh Plaza
reports. He will co-manage the innovation process to drive
long-term sales and profit growth for Dole Fresh Value-Added
Business. Mr. Kelley has extensive packaged consumer goods
experience in the areas of:
-- brand outreach,
-- product development,
-- strategic planning,
-- sales support, and
-- forecasting analysis, for products including
Columbia Crest Winery and Eight O'Clock Coffee.
"Keith brings direct, hands-on experience in areas relevant to
Dole Fresh Vegetable's business -- market segmentation,
merchandising and sales modeling. He has a successful track
record in building brands and delivering results across multiple
consumer categories, Dole Fresh Vegetables marketing director
Michelle Gonsalves told Fresh Plaza.
Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods. The company has four
primary operating segments. The fresh fruit segment produces
and markets fresh fruit to wholesale, retail and institutional
customers worldwide. The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia, including Thailand. The packaged foods segment contains
several operating segments that produce and market packaged
foods, including fruit, juices and snack foods. Dole's fresh-
cut! flowers segment sources, imports and markets fresh-cut
flowers, grown mainly in Colombia and Ecuador, primarily to
wholesale florists and supermarkets in the U.S.
FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman
----------------------------------------------------------------
The Board of Directors of Federal-Mogul Corporation has elected
Carl Icahn as its non-executive Chairman.
The Federal-Mogul Board will be composed of, among others, Mr.
Icahn and three of his associates, the Associated Press reports.
The company's confirmed Plan of Reorganization provides an
affiliate of Mr. Icahn an option to purchase certain shares of
common stock of Reorganized Federal-Mogul held by the Asbestos
Trust. Thornwood Associates is one of Mr. Icahn's affiliates.
Mr. Icahn has a 75.24% stake in the class A common stock of
Federal-Mogul, according to Reuters.
"I am very pleased that a financially strong Federal-Mogul has
finally emerged from the bankruptcy process. Additionally and
most importantly, Federal-Mogul will no longer be hampered by
asbestos litigation. I wish to thank and congratulate all those
who have worked with me throughout the last six years to
accomplish this. I also wish to extend my thanks to Jose Maria
Alapont, our President and CEO, who has so successfully guided
the operations of Federal-Mogul during the last three years,"
Mr. Icahn said in a press release.
Federal-Mogul President and Chief Executive Officer Jos‚ Maria
Alapont said, "We have very positive relations with Carl Icahn
and we welcome him as non-executive Chairman. We remain
committed to our strategy for sustainable global profitable
growth in all areas of our business and to create value for our
customers, shareholders and employees."
Federal-Mogul shares were down 10 cents in recent trading at
US$19.50, AP relates.
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 US$10.15 billion in assets and US$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 Fourth Amended Plan
was confirmed by the Bankruptcy Court on Nov. 8, 2007, and
affirmed by the District Court on Nov. 14.
* * *
As reported in the Troubled Company Reporter on Jan. 10, 2008,
Moody's Investors Service confirmed the ratings of the
reorganized Federal-Mogul Corporation -- Corporate Family
Rating, Ba3; Probability of Default Rating, Ba3; and senior
secured bank credit facilities, Ba2. The outlook is stable.
The financing for the company's emergence from Chapter 11
bankruptcy protection has been funded in line with the structure
originally rated by Moody's in a press release dated
Nov. 28, 2007.
As reported in the Troubled Company Reporter on Jan. 7, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Southfield, Michigan-based Federal-Mogul Corp.
following the company's emergence from Chapter 11 on
Dec. 27, 2007. S&P said the outlook is stable.
* BOND PRICING: For the Week 14 January to 18 January 2008
----------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA &
NEW ZEALAND
-----------
Ainsworth Game Technology Ltd 8.000% 12/31/09 AUD 0.75
A&R Whitcoulls Group 9.500% 12/15/10 NZD 10.50
Allco Hybrid Investment 9.000% 08/17/09 AUD 63.10
Allco Hybrid Investment 9.000% 12/31/10 AUD 70.00
Antares Energy Limited 10.000% 10/31/13 AUD 1.61
Arrow Energy NL 10.000% 03/31/08 AUD 2.56
Babcock & Brown Pty Ltd 8.500% 11/17/09 NZD 10.00
Babcock & Brown Pty Ltd 9.010% 09/15/16 NZD 10.30
Becton Property Group 9.500% 06/30/10 AUD 0.91
Bounty Industries Limited 10.000% 06/30/10 AUD 0.06
Capital Properties NZ Ltd 8.500% 04/15/09 NZD 11.75
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 10.40
China Century Capital Ltd 12.000% 09/30/10 AUD 1.02
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.96
FGL Finance 6.250% 03/17/10 AUD 8.05
Fletcher Building Ltd 8.600% 03/15/08 NZD 10.00
Fletcher Building Ltd 7.800% 03/15/09 NZD 10.00
Fletcher Building Ltd 7.550% 03/15/11 NZD 9.75
Heemskirk Consolidated
Limited 8.000% 09/30/11 AUD 3.05
Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 10.80
Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 11.60
Infrastructure & Utilities
NZ Ltd 8.500% 09/15/13 NZD 9.75
LongReach Group Limited 10.000% 10/31/08 AUD 0.22
Metal Storm Ltd 10.000% 09/01/09 AUD 0.11
Nylex Limited 10.000% 12/08/09 AUD 2.35
PPCS Limited 11.500% 12/15/10 NZD 72.50
Salomon SB Aust 4.250% 02/01/19 USD 8.93
Speirs Group Ltd. 13.160% 06/30/49 NZD 60.00
TrustPower Ltd 8.300% 12/15/08 NZD 10.50
TrustPower Ltd 8.500% 09/15/12 NZD 9.40
TrustPower Ltd 8.500% 03/15/14 NZD 9.25
CHINA
-----
CITIC Guoan Information
Indust. Co., Ltd 1.200% 09/14/13 CNY 70.35
Rizhao Port Co., Ltd. 1.400% 11/27/13 CNY 73.34
Shenzhen Expressway Co. Ltd. 1.000% 10/09/13 CNY 73.50
Yunnan Yuntianhu Co., Ltd. 1.200% 01/29/13 CNY 74.33
JAPAN
-----
JPN Fin Muni Ent 1.700% 10/30/08 JPY 1.36
Nara Prefecture 1.520% 10/31/14 JPY 9.41
NIS Group Co., Ltd. 2.290% 03/23/09 JPY 70.10
NIS Group Co., Ltd. 2.730% 02/26/10 JPY 69.93
KOREA
-----
Korea Dev. Bank 7.350% 10/27/21 KRW 42.82
Korea Dev. Bank 7.450% 10/31/21 KRW 42.79
Korea Dev. Bank 7.400% 11/02/21 KRW 42.78
Korea Dev. Bank 7.310% 11/08/21 KRW 42.73
Korea Dev. Bank 8.450% 12/15/26 KRW 67.38
MALAYSIA
--------
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 1.17
Berjaya Land Bhd 5.000% 12/30/09 MYR 6.45
Bumiputra-Commerce
Holdings Bhd 2.500% 07/16/08 MYR 1.45
Eastern & Oriental Hotel 8.000% 07/25/11 MYR 2.05
EG Industries Berhad 5.000% 06/16/10 MYR 0.50
Equine Capital 3.000% 08/26/08 MYR 1.61
Greatpac Holdings 2.000% 12/11/08 MYR 0.12
Gula Perak Bhd 6.000% 04/23/08 MYR 0.53
Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.50
Insas Berhad 8.000% 04/19/09 MYR 0.68
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.39
Kretam Holdings Bhd 1.000% 08/10/10 MYR 1.54
Kumpulan Jetson 5.000% 11/27/12 MYR 0.52
Lebuhraya Kajang 2.000% 06/12/19 MYR 71.06
Lebuhraya Kajang 2.000% 06/12/20 MYR 68.57
Lebuhraya Kajang 2.000% 06/12/21 MYR 66.15
Lebuhraya Kajang 2.000% 06/12/22 MYR 63.74
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.53
LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.53
Malaysian Gov't 6.450% 11/30/08 MYR 20.00
Media Prima Bhd 2.000% 07/18/08 MYR 1.70
Mithril Bhd 8.000% 04/05/09 MYR 0.24
Mithril Bhd 3.000% 04/05/12 MYR 0.60
Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.46
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.23
Pelikan International 3.000% 04/08/10 MYR 1.95
Pelikan International 3.000% 04/08/10 MYR 4.00
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.80
Rhythm Consolidated Berhad 5.000% 12/17/08 MYR 0.15
Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.62
Senai-Desaru Expressway 3.500% 12/09/19 MYR 74.95
Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.56
Southern Steel 5.500% 07/31/08 MYR 2.08
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.07
Tradewinds Corp. 2.000% 02/08/12 MYR 1.13
Tradewinds Plantation Berhad 3.000% 02/28/16 MYR 1.65
TRC Synergy Berhad 5.000% 01/20/12 MYR 2.35
Wah Seong Corp. 3.000% 05/21/12 MYR 6.20
WCT Land Bhd 3.000% 08/02/09 MYR 3.86
Wijaya Baru Global Berhad 7.000% 09/17/12 MYR 0.76
YTL Cement Bhd 4.000% 11/10/15 MYR 2.08
SINGAPORE
---------
Sengkang Mall Ltd. 8.000% 11/20/12 SGD 0.20
SRI LANKA
---------
Sri Lanka Govt 6.850% 04/15/12 LKR 72.93
Sri Lanka Govt 6.850% 10/15/12 LKR 71.59
Sri Lanka Govt 8.500% 01/15/13 LKR 70.11
Sri Lanka Govt 7.500% 08/01/13 LKR 64.69
Sri Lanka Govt 7.500% 11/01/13 LKR 63.75
Sri Lanka Govt 8.500% 02/01/18 LKR 73.27
Sri Lanka Govt 8.500% 07/15/18 LKR 72.77
Sri Lanka Govt 7.500% 08/15/18 LKR 67.28
Sri Lanka Govt 7.000% 10/01/23 LKR 59.49
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Marites Claro, 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 2008. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***