/raid1/www/Hosts/bankrupt/TCRAP_Public/080313.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, March 13, 2008, Vol. 9, Issue 52
Headlines
A U S T R A L I A
AUSTRALIAN MONTESSORI: To Declare Dividends on March 27
CHRYSLER: Idles Facility in Delaware Due to Axle Labor Strike
FERNSPRAY PTY: Placed Under Voluntary Liquidation
INDEPENDENT TRADING: Members to Hear Wind-Up Report on March 19
KAH HONG (AUSTRALIA): Commences Liquidation Proceedings
KH FOODS: Posts AU$9-Million Loss for Half Year
NATIONAL 1 AUSTRALIA: Members to Hear Wind-Up Report on March 19
NEIL D. HOILE: Undergoes Liquidation Proceedings
PYROTRONICS FIRE: To Declare Final Dividend on March 28
RHOSMAEN PTY: Commences Liquidation Proceedings
SEANET PTY: Members' Final Meeting Set for March 19
VOGUE HOMES: To Declare Ordinary Dividend on March 25
XPEDIOR (AUSTRALIA): Final Meeting Slated for March 20
C H I N A & H O N G K O N G & T A I W A N
BAODIA INTERNATIONAL: Commences Liquidation Proceedings
CARTO LEATHERWARE: Commences Liquidation Proceedings
CHINA DIGITAL: Zhong Yi Expresses Going Concern Doubt
EATON ASIA: Court to Hear Wind-Up Proceedings on April 9
FAG CHINA: Appoints New Liquidators
GTI FINANCIAL: Liquidator Quits Post
KIND YIELD (H.K.): Court to Hear Wind-Up Proceedings on March 19
KOOKMIN LEASING: Liquidators Quit Post
MEDISON GREATER: Commences Liquidation Proceedings
MYRETE LIMITED: Creditors' Proofs of Debt Due on April 7
PEROT SYSTEMS: Creditors' Proofs of Debt Due on April 7
I N D I A
BIRLA VXL: Considers Issuance of Preference Shares
QUEBECOR: Court OKs Rejection of Banc of America Lease Pact
QUEBECOR WORLD: Court Approves Creditor Information Protocol
QUEBECOR WORLD: Can Pay Non-Employee Sales Brokers' Commissions
RPG CABLES: Grabs US$25 Million Kabul Cables Supply Contract
TATA MOTORS: Plans to Raise US$1 Billion of Long-Term Funds
TATA STEEL: Reports INR1,416 Crore Consolidated Profit
I N D O N E S I A
ALCATEL-LUCENT: Inks Deal to Acquire ReachView Technologies
ARPENI PRATAMA: Wins Coal-Transport Deal for US$342 Million
BANK INT'L: Plans to Acquire Teamsek's BII Stake
BEARINGPOINT: Dec. 31 Balance Sheet Upside Down by US$469.2 Mil.
CHAROEN: To Engage in Palm Production to Meet Rising Demand
DIRECTED ELECTRONICS: Sets 4Q & FY2007 Conference Call on Monday
INDOSAT: Mulls Reduction of Post-Paid Tariffs
J A P A N
ALITALIA SPA: New Gov't to OK Sale if Flagship Status Retained
JAPAN AIRLINES: Not Subject to EU Cartel Probe, Company Says
METHANEX: Paying US$0.14/Share Quarterly Dividend on March 31
MITSUBISHI MOTOR: Opens 39th Dealer Showroom in India
SANYO ELECTRIC: Fitch Affirms BB Ratings with Stable Outlook
* Fitch Says Japan's Shinkin Sector Faces Hurdlers This Year
M A L A Y S I A
AMBANK BERHAD: Fitch Puts BB Rating on Stapled Securities
MALAYSIA AIRLINES: Unit Expects to Achieve MYR400MM of Revenues
SOLUTIA INC: Inks Amended Monsanto & Retiree Agreements
SOLUTIA INC: Issues New Common Stock Under Confirmed Plan
SOLUTIA INC: Terminates Pre-Emergence Stock & Select Deals
WWE HOLDINGS: Posts MYR771,000 Net Loss in Qtr. Ended Dec. 31
WWE HOLDINGS: To Hold 19th Annual General Meeting on March 26
N E W Z E A L A N D
FALCON PROTECTION: Wind-Up Petition Hearing Set for Today
FL VINEYARD: Taps Parsons & Kenealy as Liquidators
HELL ZENJIRO: Wind-Up Petition Hearing Set for April 9
JONESES REAL: Fixes March 20 as Last Day to File Claims
KNAPP CONSTRUCTION: Commences Liquidation Proceedings
NZ BUSINESS: Taps Parsons & Kenealy as Liquidators
OODIAN (GLENFIELD): Fixes March 14 as Last Day to File Claims
PEACE INDUSTRIES: Court to Hear Wind-Up Petition on June 4
T & F KENT: Subject to CIR's Wind-Up Petition
TPH INVESTMENTS: Placed Under Voluntary Liquidation
P H I L I P P I N E S
FEDDERS CORP: Wants Committee's US$150-Million Lawsuit Denied
MANILA ELECTRIC: Explains March Generation & System Loss Charges
MANILA ELECTRIC: Discloses Resignation, Election of Directors
MANILA ELECTRIC: To Hold Annual Shareholders Meeting on May 27
PHIL. LONG DISTANCE: Aims 5 Mil. Growth in Cellular Subcribers
S I N G A P O R E
Q-LOG TRANSPORTATION: Court to Hear Wind-Up Petition on March 7
SPECTRUM BRANDS: Inks Standstill Pact with Harbinger Capital
* Fitch Says Potential M&A in REIT Market May Affect Ratings
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN MONTESSORI: To Declare Dividends on March 27
-------------------------------------------------------
Australian Montessori Education Pty. Ltd., which is in
liquidation, will declare dividends on March 27, 2008.
Only creditors who were able to file their proofs of debt by
March 11, 2008, will be included in the company's dividend
distribution.
The company's liquidator is:
David James Hambleton
46 Edward Street, Level 9
Brisbane, Queensland 4000
Australia
About Australian Montessori
Australian Montessori Education Pty. Ltd. provides schools and
educational services. The company is located at Surfers
Paradise, in Queensland, Australia.
CHRYSLER: Idles Facility in Delaware Due to Axle Labor Strike
-------------------------------------------------------------
Chrysler LLC will temporarily close its vehicle assembly
facility in Newark, Delaware, this week, as the strike among
members of the United Auto Workers union at American Axle &
Manufacturing Inc. stretches, Terry Kosdrosky of The Wall Street
Journal reports.
WSJ relates citing spokeswoman Michele Tinson, American Axle
supplies Chrysler components for the Dodge Durango and Chrysler
Aspen sport utility vehicles in Newark and two versions of the
Dodge Ram pickup made in Saltillo, Mexico.
As reported in the Troubled Company Reporter on Feb. 27, 2008,
UAW union president Ron Gettelfinger and Vice President James
Settles disclosed that members at American Axle began an unfair
labor practices strike at 12:01 a.m. on Feb. 26, 2008, following
expiration of a four-year master labor agreement, which expired
at 11:59 p.m., Feb. 25, 2008.
American Axle, which earned US$37 million on US$3.25 billion
sales in 2007, wants a deal like those UAW gave General Motors
Corp., Ford Motor Co., Chrysler LLC, and parts makers Delphi
Corp. and Dana Corp., insisting that cutting labor costs is
essential to be competitive, according to The Associated Press.
The auto parts supplier is asking the union to approve US$20 to
US$30 hourly wage cuts from US$73 per hour it pays now to US$27
per hour, saying that its original U.S. locations incurred
losses for three years.
TCR relates that a Chrysler assembly plant in Windsor, Ontario
was forced to temporarily shut down after Canadian Auto Workers
union members of TRW Automotive Inc. went on strike on
Feb. 28, 2008, due to failed wage increase talks. TRW supplies
Chrysler suspension modules for Dodge Caravan and Town & Country
minivans.
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
FERNSPRAY PTY: Placed Under Voluntary Liquidation
-------------------------------------------------
Fernspray Pty. Ltd.'s members agreed on February 6, 2008, to
voluntarily liquidate the company's business. In line with this
goal, the company has appointed Robert Eugene Murphy and David
James Hambleton to facilitate the sale of its assets.
The company will also declare dividend on March 27, 2008.
Creditors are required to file their proofs of debt by
March 11, 2008, to be included in the company's dividend
distribution.
The liquidators can be reached at:
Robert Eugene Murphy
David James Hambleton
Chartered Accountants R.E. Murphy & Co.
46 Edward Street, Level 9
Brisbane, Queensland 4000
Australia
About Fernspray Pty.
Fernspray Pty. Ltd. is a distributor of durable goods. The
company is located at Robina, in Queensland, Australia.
INDEPENDENT TRADING: Members to Hear Wind-Up Report on March 19
---------------------------------------------------------------
A. A. Gaffney, Independent Trading Co. Pty. Ltd.'s appointed
estate liquidator, will meet with the company's members at
10:30 a.m. on March 19, 2008, to provide them with property
disposal and winding-up reports.
The liquidator can be reached at:
A. A. Gaffney
RSM Bird Cameron
Chartered Accountants
8 St George's Terrace
Perth, Western Australia 6000
Australia
Telephone:(08) 9261 9100
About Independent Trading
Independent Trading Co. Pty. Ltd. is a distributor of fish and
seafoods. The company is located at Morley, in Western
Australia, Australia.
KAH HONG (AUSTRALIA): Commences Liquidation Proceedings
-------------------------------------------------------
Kah Hong (Australia) Pty. Ltd.'s members agreed on
Jan. 28, 2008, to voluntarily liquidate the company's business.
In line with this goal, the company has appointed Martin Jones
and Darren Weaver to facilitate the sale of its assets.
The liquidators can be reached at:
Martin Jones
Darren Weaver
Ferrier Hodgson
BankWest Tower, Level 26
108 St Georges Terrace
Perth, Western Australia 6000
Australia
About Kah Hong (Australia)
Kah Hong (Australia) Pty. Ltd. provides business services. The
company is located at Nedlands, in Western Australia, Australia.
KH FOODS: Posts AU$9-Million Loss for Half Year
-----------------------------------------------
KH Foods Limited, which is selling the South Australian bakery
Balfours, has posted a AU$9 million loss for the half year, ABC
News reports. KH Foods told ABC News that Balfours and another
business it is selling made almost AU$5 million trading loss for
the period.
KH Foods has been plagued with financial problems, but the half-
year result is an improvement on a AU$14 million loss for the
previous period, ABC News says. In February, KH Foods announced
it would sell Balfours to local pasta company San Remo.
KH Foods' share price has been damaged because of its woes, ABC
News notes.
The Troubled Company Reporter-Asia Pacific's "Large Companies
with Insolvent Balance Sheets" column on Sept. 28, 2007,
recorded KH Foods as having total assets of US$62.30 million and
total shareholders' equity deficit of US$1.71 million.
KH Foods Limited -- http://www.keithharris.com.au/-- is an
Australia-based company engaged in the manufacture and sale of
bakery products, such as savories, cakes, desserts and bread.
It operates in three business divisions: flavor and fragrances
division, which is engaged in the manufacture and sale of
flavors, essences and colors to the food industry, and
fragrances and colors to the industrial and cosmetic industries;
bakery division, which is engaged in the manufacture and sale of
bakery products, and investments division, which is engaged in
investments in shares listed on prescribed stock exchange,
dividend revenue and interest on short term deposits. The
flavor and fragrances division was sold with effect from
Jan. 31, 2005. Some of its wholly owned subsidiaries include
Jusfrute Limited, United Beverages Pty. Ltd., Redland Industries
Pty. Ltd., Keith Harris Extracts Pty. Ltd. and Quotidian No.115
Pty. Ltd. As of January 22, 2007, Washington H. Soul Pattinson
and Co. Ltd. held an 86.62% interest in the company.
NATIONAL 1 AUSTRALIA: Members to Hear Wind-Up Report on March 19
----------------------------------------------------------------
Brian Mccmaster, National 1 Australia Limited's appointed estate
liquidator, will meet with the company's members on
March 19, 2008, at 10:30 a.m. to provide them with property
disposal and winding-up reports.
As reported by the Troubled Company Reporter-Asia Pacific, the
company commenced liquidation proceedings on March 27, 2006.
The liquidator can be reached at:
Brian Mccmaster
KordaMentha
37 St Georges, Level 11
Terrace, Perth
Western Australia
Australia
About National 1 Australia
National 1 Australia Limited is in the business of trusts,
except educational, religious, and charitable trusts. The
company is located at Belmont, in Western Australia, Australia.
NEIL D. HOILE: Undergoes Liquidation Proceedings
------------------------------------------------
Neil D. Hoile Pty. Ltd.'s members agreed on February 5, 2008, to
voluntarily liquidate the company's business. In line with this
goal, the company has appointed Peter Ivan Macks and Timothy
James Clifton to facilitate the sale of its assets.
The liquidators can be reached at:
Peter Ivan Macks
Timothy James Clifton
Chartered Accountants
26 Flinders Street, Level 10
Adelaide
Australia
About Neil D. Hoile
Neil D. Hoile Pty. Ltd. provides management consulting services.
The company is located at Glenelg, in South Australia,
Australia.
PYROTRONICS FIRE: To Declare Final Dividend on March 28
-------------------------------------------------------
Pyrotronics Fire Protection Pty. Ltd., which is in liquidation,
will declare final dividend on March 28, 2008.
Only creditors who were able to file their proofs of debt by
March 11, 2008, will be included in the company's dividend
distribution.
The company's liquidator is:
Andrew Fielding
PPB Chartered Accountants & Business
31 Sherwood Road, Level 4
Toowong, Queensland 4066
Australia
Telephone:(07) 3371 7244
Facsimile:(07) 3371 7311
About Pyrotronics Fire
Pyrotronics Fire Protection Pty. Ltd. is involved with fire
protection. The company is located at Yeronga, in Queensland,
Australia.
RHOSMAEN PTY: Commences Liquidation Proceedings
-----------------------------------------------
Rhosmaen Pty. Ltd.'s members agreed on February 6, 2008, to
voluntarily liquidate the company's business. In line with this
goal, the company has appointed Robert Eugene Murphy and David
James Hambleton to facilitate the sale of its assets.
The company will also declare dividend on March 27, 2008.
Creditors are required to file their proofs of debt by
March 11, 2008, to be included in the company's dividend
distribution.
The liquidators can be reached at:
Robert Eugene Murphy
David James Hambleton
Chartered Accountants R.E. Murphy & Co.
46 Edward Street, Level 9
Brisbane, Queensland 4000
Australia
About Rhosmaen Pty.
Rhosmaen Pty. Ltd. is a distributor of durable goods. The
company is located at Robina, in Queensland, Australia.
SEANET PTY: Members' Final Meeting Set for March 19
---------------------------------------------------
A. A. Gaffney, Seanet Pty. Ltd.'s appointed estate liquidator,
will meet with the company's members at 10:00 a.m. on
March 19, 2008, to provide them with property disposal and
winding-up reports.
The liquidator can be reached at:
A. A. Gaffney
RSM Bird Cameron
Chartered Accountants
8 St George's Terrace
Perth, Western Australia 6000
Australia
Telephone:(08) 9261 9100
About Seanet Pty.
Seanet Pty. Ltd. is a distributor of groceries. The company is
located at Hillarys, in Western Australia, Australia.
VOGUE HOMES: To Declare Ordinary Dividend on March 25
-----------------------------------------------------
Vogue Homes Pty. Ltd., which is in liquidation, will declare an
ordinary dividend on March 25, 2008.
Only creditors who were able to file their proofs of debt by
March 11, 2008, will be included in the company's dividend
distribution.
The company's liquidator is:
K. A. Strickland
SimsPartners
40 St Georges Terrace, Level 12
Perth, Western Australia 6000
Australia
About Vogue Homes
Vogue Homes Pty. Ltd. is a general contractor of non-residential
buildings. The company is located at Mount Hawthorn, in Western
Australia, Australia.
XPEDIOR (AUSTRALIA): Final Meeting Slated for March 20
------------------------------------------------------
Xpedior (Australia) Pty. Ltd. will hold a final meeting for its
members and creditors at 10:30 a.m. on March 20, 2008. During
the meeting, the company's liquidator, D. C. Vickers at
PricewaterhouseCoopers, will provide the attendees with property
disposal and winding-up reports.
The liquidator can be reached at:
D. C. Vickers
PricewaterhouseCoopers
QV1, Level 19
250 St Georges Terrace
Perth, Western Australia 6000
Australia
About Xpedior (Australia)
Xpedior (Australia) Pty. Ltd. provides business services. The
company is located at Perth, in Western Australia, Australia.
==================================================
C H I N A & H O N G K O N G & T A I W A N
==================================================
BAODIA INTERNATIONAL: Commences Liquidation Proceedings
-------------------------------------------------------
Baodia International Investment Co. Limited's members agreed
March 7, 2008, to voluntarily liquidate the company's business.
In line with this goal, the company has appointed Sit Hung Ching
to facilitate the sale of its assets.
The liquidator can be reached at:
Sit Hung Ching
Block 1
Bailey Garden
23 Bailey Street
Kowloon, Hong Kong
CARTO LEATHERWARE: Commences Liquidation Proceedings
----------------------------------------------------
Carto Leatherware Company Limited's members agreed
Feb. 26, 2008, to voluntarily liquidate the company's business.
In line with this goal, the company has appointed Lau Siu Hung
to facilitate the sale of its assets.
The liquidator can be reached at:
Lau Siu Hung
2nd Floor
Wing Yee Commercial Bldg.
5 Wing Kut Street
Central, Hong Kong
CHINA DIGITAL: Zhong Yi Expresses Going Concern Doubt
-----------------------------------------------------
Hong Kong-based Zhong Yi C.P.A. Company Limited raised
substantial doubt about the ability of China Digital Wireless,
Inc., to continue as a going concern after it audited the
company's financial statements for the year ended Dec. 31, 2006.
The auditor pointed to the company's substantial losses.
The company posted a net loss of US$10,577,418 on total revenues
of US$2,889,436 for the year ended Dec. 31, 2006, as compared
with a net income of US$1,811,107 on total revenues of
US$20,419,022 in the prior year.
At Dec. 31, 2006, the company's balance sheet showed
US$4,464,612 in total assets, US$1,117,975 in total liabilities,
and US$3,346,637 in stockholders' equity.
A full-text copy of the company's 2007 annual report is
available for free at: http://ResearchArchives.com/t/s?2906
About China Digital
China Digital Wireless, Inc., provides value added information
services, cellular phone distribution and advertising services
through its Chinese operating subsidiaries. In 2006 and first
quarter of 2007, the company also began to engage in recycling
energy business, providing energy saving and recycling products
and services. The company is headquartered in Shanghai, China.
EATON ASIA: Court to Hear Wind-Up Proceedings on April 9
---------------------------------------------------------
On January 31, 2008, Bank of China (Hong Kong), filed a petition
to have Eaton Asia Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
April 9, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
Kao, Lee & Yip
7th Floor, Gloucester Tower
The Landmark
Central, Hong Kong
FAG CHINA: Appoints New Liquidators
-----------------------------------
The members of Fag China Limited appointed Stepehen Briscoe and
Kenneth Chen as the company's liquidators.
The liquidators can be reached at:
Stepehen Briscoe
Kenneth Chen
29th Floor
Caroline Centre
Lee Gardens Two
28, Yun Ping Road
Hong Kong
GTI FINANCIAL: Liquidator Quits Post
------------------------------------
On February 25, 2008, Lau Cheuk Man Timothy, stepped down as
liquidator for GTI Financial Information Limited, which is
undergoing liquidation.
KIND YIELD (H.K.): Court to Hear Wind-Up Proceedings on March 19
----------------------------------------------------------------
On January 11, 2008, Lai Kam Cheung, filed a petition to have
Kind Yield (H.K.) Limited's operations wound up.
The High Court of Hong Kong will convene at 9:30 a.m. on
March 19, 2008, to hear the petition.
The petitioners' solicitor can be reached at:
Joyce Chan & Co.
Room 506, 5th Floor
Nan Fung Tower
173 Des Vouex Road Central
Hong Kong
KOOKMIN LEASING: Liquidators Quit Post
--------------------------------------
On March 7, 2008, Lai Kar Yan (Derek) and Darach E. Haughey,
stepped down as liquidators for Kookmin Leasing & Finance (Hong
Kong) Limited, which is undergoing liquidation.
MEDISON GREATER: Commences Liquidation Proceedings
--------------------------------------------------
Medison Greater China Limited's members agreed February 28, 2008
to voluntarily liquidate the company's business. In line with
this goal, the company has appointed Au-Yeung Sim Ming Candy to
facilitate the sale of its assets.
The liquidator can be reached at:
Au-Yeung Sim Ming Candy
1301-02, 13th Floor
Kwan Chart Tower
6, Tonnochy Road
Wanchai, Hong Kong
MYRETE LIMITED: Creditors' Proofs of Debt Due on April 7
--------------------------------------------------------
The creditors of Myrete Limited are required to file their
proofs of debt by April 7, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 27, 2008.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Fegurson Bruce
8th Floor
Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
PEROT SYSTEMS: Creditors' Proofs of Debt Due on April 7
--------------------------------------------------------
The creditors of Perot Systems Hong Kong Limited are required to
file their proofs of debt by April 7, 2008, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Feb. 22, 2008.
The company's liquidators are:
Chung Miu Yin Diana
Yeung Betty Yuen
Level 28
Three Pacific Place
1 Queen's Road East
=========
I N D I A
=========
BIRLA VXL: Considers Issuance of Preference Shares
--------------------------------------------------
Birla VXL Ltd. will hold a meeting of the Committee of the Board
on March 18, 2008, the company informed the Bombay Stock
Exchange.
Among others, the committee will finalize the terms and
conditions for issue of preference shares and to offer the same
on private placement basis. The move is still subject to the
approval of the company's shareholders of the proposed issuance
of preference shares. The shareholders will meet on
March 17, 2008, to consider the move.
Headquartered in Gujarat, Birla VXL is a part of the S.K. Birla
Group and manufactures fabrics for suitings under the brand name
DIGJAM.
In July 2004, the High Courts of Gujarat and Punjab & Haryana
approved the company's Scheme of Arrangement, under Sections 391
to 394 of the Companies Act, 1956. The Scheme, which took
effect on March 30, 2006, among others provides the debt and
capital restructuring and transfer of OCM Division of the
company to its wholly owned subsidiary OCM India Ltd.
QUEBECOR: Court OKs Rejection of Banc of America Lease Pact
-----------------------------------------------------------
Quebecor World Inc. and its debtor-affiliates obtained authority
from the U.S. Bankruptcy Court for the Southern District of New
York to reject an aircraft lease agreement with Banc of America
Leasing and Capital, LLC.
As reported in the Troubled Company Reporter on March 6, 2008,
the Debtors asked the Court to lift the automatic stay so that
Banc of America can exercise its rights to the Aircraft Lease
Agreement, which includes one Bombardier CL-601-3A aircraft, two
General Electric CF34-3A engines and certain appliances, parts,
instruments, appurtenances, accessories, furnishings, seats and
other equipment incorporated to the aircraft. The Aircraft
Lease expired on January 18, 2008.
The Debtors want to reject the Aircraft Lease effective as of
Jan. 21, 2008, out of an abundance of caution, and to confirm
that their bankruptcy estates do not retain any equitable
interest in the aircraft or the Aircraft Lease.
The Debtors sought clarification that Banc of America's exercise
of remedies under the Aircraft Lease and actions to take
possession of the aircraft will not be construed as a violation
of the automatic stay under Section 362 of the Bankruptcy Code.
As of Jan. 7, 2008, the Debtors owed US$12,218,351 under the
Lease.
According to Michael Canning, Esq., at Arnold & Porter LLP, in
New York, the aircraft is not operational and is hangared in
Montreal, Canada. The Debtors are also continuing to incur
costs associated with its storage and insurance.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW) -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March
2007, it sold its facility in Lille, France. Quebecor World
(USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 8; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Feb. 13, 2008,
Moody's Investors Service assigned a Ba2 rating to the
US$400 million super priority senior secured revolving term loan
facility of Quebecor World Inc. as a Debtor-in-Possession. The
related US$600 million super priority senior secured term loan
was rated Ba3 (together, the DIP facilities). The RTL's better
asset value coverage relative to the TL accounts for the
ratings' differential.
QUEBECOR WORLD: Court Approves Creditor Information Protocol
------------------------------------------------------------
The Hon. James Peck of the U.S. Bankruptcy Court for the
Southern District of New York approved a stipulation allowing a
Creditor Information Protocol in the bankruptcy case of Quebecor
World Inc. and its debtor-affiliates. Creditor Information
Protocol is effective as of March 6, 2008, however, its terms
will also apply to information in the Official Committee of
Unsecured Creditors' possession prior to March 6, 2008.
As reported in the Troubled Company Reporter on March 5, 2008,
the Debtors and the Committee asked the Court to approve the
protocol asserting that it will ensure the Committee compliance
with its obligations under Section 1102(b)(3)(A) of the
Bankruptcy Code and to protect the Debtors' confidential,
privileged or proprietary information.
The Debtors will assist the Committee in identifying, receiving
any information from any entity in connection with an
examination pursuant to Rule 2004 of the Federal Rules of
Bankruptcy Procedure.
Requests for information may be addressed to:
Arnold & Porter LLP
Attn: Michael J. Canning
399 Park Avenue,
New York, New York 10022
quebecorservice@aporter.com
The stipulation also governs the release of confidential
information of third parties and exculpation provisions.
A full-text copy of the Creditor Information Protocol is
available for free at
http://ResearchArchives.com/t/s?28b0
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW)
(NYSE:IQW) -- http://www.quebecorworldinc.com/-- provides
market solutions, including marketing and advertising
activities, well as print solutions to retailers, branded goods
companies, catalogers and to publishers of magazines, books and
other printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March
2007, it sold its facility in Lille, France. Quebecor World
(USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 8; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Feb. 13, 2008,
Moody's Investors Service assigned a Ba2 rating to the
US$400 million super priority senior secured revolving term loan
facility of Quebecor World Inc. as a Debtor-in-Possession. The
related US$600 million super priority senior secured term loan
was rated Ba3 (together, the DIP facilities). The RTL's better
asset value coverage relative to the TL accounts for the
ratings' differential.
QUEBECOR WORLD: Can Pay Non-Employee Sales Brokers' Commissions
---------------------------------------------------------------
Quebecor World Inc. and its debtor-affiliates obtained authority
from the U.S. Bankruptcy Court for the Southern District of New
York to pay commissions that accrued prepetition to non-employee
sales brokers.
As reported in the Troubled Company Reporter on March 7, 2008,
the Debtors' sales and marketing efforts are done through both
employees and third-party brokers. The Debtors previously
sought and obtained the Court's approval to pay sales
commissions that accrued prepetition to one group of sales
employees who were otherwise scheduled to receive their
commissions on Feb. 1, 2008.
Michael Canning, Esq., at Arnold & Porter LLP, in New York,
related that these third-party brokers are utilized in certain
segments of the Debtors' businesses, and it is crucial to the
Debtors' sales and marketing effort that the Debtors maintain a
strong and loyal team of sales brokers.
The Debtors have determined that there approximately 36 brokers
who are or will likely be due commissions based on prepetition
activities. The total amount expected to be owing for these
commissions is US$705,775. There could be some variation in the
final total based on payments from customers, but it is not
anticipated that the final total will be materially higher
than this amount, Mr. Canning said.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW) -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March
2007, it sold its facility in Lille, France. Quebecor World
(USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 8; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Feb. 13, 2008,
Moody's Investors Service assigned a Ba2 rating to the
US$400 million super priority senior secured revolving term loan
facility of Quebecor World Inc. as a Debtor-in-Possession. The
related US$600 million super priority senior secured term loan
was rated Ba3 (together, the DIP facilities). The RTL's better
asset value coverage relative to the TL accounts for the
ratings' differential.
RPG CABLES: Grabs US$25 Million Kabul Cables Supply Contract
------------------------------------------------------------
RPG Cables Ltd. has secured an order for supply of Medium
Voltage and Low Voltage Cables of various sizes to Kabul
Distribution Enhancement Project, Afghanistan. This contract
will contribute to the company revenue of approximately
US$25 million.
Headquartered in Mysore, India, RPG Cables Ltd. operates in two
segments: Power cables and Telecommunication cables. The
company manufactures power and control cables, jelly filled
telephone cables, optical cables and housewiring cables.
The company's net worth has been eroded as at March 31, 2004.
In accordance with the provisions of Sick Industrial Companies
(Special Provision) Act, 1985, the company was referred to the
Board for Industrial & Financial Reconstruction on July 5, 2004.
The State Bank of India, the BIFR-appointed operating agency for
the RPG Cables, has prepared a modified rehabilitation scheme
for the revival the company and has submitted the same to the
BIFR.
TATA MOTORS: Plans to Raise US$1 Billion of Long-Term Funds
-----------------------------------------------------------
Tata Motors Ltd. plans to raise additional long-term funds of up
to INR40 billion, Reuters reports.
According to the report, the company had major growth plans for
domestic and global markets, achievable by expanding existing
manufacturing facilities and through strategic acquisitions and
alliances.
"Whilst this may require incurrence of expenditure for organic
growth over the next three to four years, the acquisition
opportunities will have to be financed upfront," the company
said in a statement, the same report relates.
Hiral Vora of Reuters writes that the funds, which would be
raised through securities issued in foreign and/or domestic
markets, would be used to partly meet the cost of some of the
strategic plans.
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 STEEL: Reports INR1,416 Crore Consolidated Profit
------------------------------------------------------
Tata Steel Ltd. published stand alone audited financial results
for the nine months ended December 31, 2007.
Highlights for the nine months ended December 31, 2007:
* Profit before interest, exceptional items and taxes for
the nine months ended December 31, 2007, was INR10,889
crores against INR5,101 crores for the same period of the
last financial year.
* Diluted EPS before exceptional items (not annualized) for
the nine months ended December 31, 2007, was INR73.05
against INR58.44 for the same period in the last financial
year.
* In terms of the leveraged buyout requirements of the
lenders of Corus acquisition, the post acquisition
corporate restructuring of Corus Group in United Kingdom
and Netherlands was completed in December 2007.
Quarter Results
Turnover
Excluding turnover of Tata Steel UK of INR23,867 crores for the
quarter, turnover registered an increase of INR2,157 crores. The
increase was mainly due to increases in Tata Steel Indian
operations (INR472 crores), Natsteel (INR1,135 crores) and Tata
Steel Thailand (INR554 crores). The increase in Tata Steel
Indian operations were primarily due to increase in prices,
whereas the increase in Natsteel and Tata Steel Thailand was
attributable to both price increases as well as increase in
volume.
Total Expenditure
Total expenditure for the quarter ended 31st December 2007
amounted to INR28,967 crores , (including total expenditure of
INR22,808 crores of Tata Steel UK), against INR4,325 crores
during the previous year.
Material cost
The material cost excluding of Tata Steel U.K of INR11,253
crores increased from INR1,919 crores in the previous year same
period to INR3,003 cr during the current year. While Increase
in volume of operations as well as increase in prices of inputs
(scrap) consumed by Natsteel resulted in an increase of INR887
crores, Tata Steel Thailand contributed INR226 crores to the
increase on account of increase in volumes. Increase in
Natsteel group is also due to increase in purchases of raw
materials by TS Resources Australia for use by Tata Steel India.
Other Expenditure
The Other expenditure excluding that of Tata Steel UK (INR5,053
crores) was INR1,395 crores in Q3 FY08 against INR1,133 crores
in Q3 FY07. The increases were in Tata Steel Thailand, Natsteel
and the Indian operations. While the increase in Indian
operations by INR58 crores was mainly due to increases in
conversion charges for converting chrome ore and manganese ore
to ferro chrome and ferro manganese / silico manganese, the
increases in Natsteel and Tata Steel Thailand were mainly on
account of increased volume of operations.
Interest
The interest charges (net) were INR1,081 crores in Q3 FY08
(INR96 crores in Q3 FY07). Other than interest charge of INR606
crores of Tata Steel UK, remaining increase is mainly due to
increase in borrowings, to fund acquisition cost of Corus, by
various entities including TSAH and Tata Steel India.
Exceptional Items
The employee separation compensation was INR65 crores in Q3 FY08
(Q3 FY07: INR50 crores). The discounting rate changed from
7.50% to 8.00 % in Q3 FY07 reducing the charge for employee
separation in the last financial year while the discounting rate
remained at 8.00% in the Q3 FY08 increasing the charge for
employee separation compensation in Q3 FY08 against Q3 FY07.
Due to rupee appreciation against major foreign currencies in Q3
FY08, the company had a net exchange gain of INR45 crores.
The actuarial gain on funds for employee benefits amounted to
INR145 crores for the quarter ended 31st December 2007. The
gain represents reduction in pension liability arising out of
higher discount rate, reflecting improved yields on bonds. The
gains or losses for employee benefits is required to be
accounted for, through the P&L Account under Indian GAAP while
this is adjusted through reserves under IFRS.
The Profit after tax inclusive of share of profits of associates
and net of minority interest, amounted to INR1,416 crores for
the quarter ending 31st December 2007 compared to INR1,055
crores for the corresponding period of the previous year.
Nine months Ended December 31, 2007
Turnover
Excluding turnover of Tata Steel UK of INR73,676 crores for the
nine months, turnover registered an increase of INR4,200 crores.
The increase was mainly due to increases in Tata Steel Indian
operations (INR1,339 crores), Natsteel (INR2,372 crores) and
Tata Steel Thailand (INR1,066 crores). The increase in Tata
Steel Indian operations were primarily due to increase in
prices, whereas the increase in Natsteel and Tata Steel Thailand
was attributable to both price increases as well as increase in
volume.
Total Expenditure
Total expenditure for the nine months ended 31st December 2007
amounted to INR85,079crores, (including total expenditure of
INR68,576 Cr of Tata Steel UK), against INR12,990 crores during
the previous year.
Material Cost
The material cost excluding of Tata Steel UK of INR35,409 crores
increased from INR6,227 crores in the previous year same period
to INR8,062 crores during the current year. While Increase in
volume of operations as well as increase in prices of inputs
(scrap) consumed by Natsteel resulted in an increase of INR2,014
crores, Tata Steel Thailand contributed INR663 crores to the
increase on account of increase in volumes. Increase in
Natsteel group is also due to increase in purchases of raw
materials by TS Resources Australia for use by Tata Steel India.
Other Expenditure
The Other expenditures excluding that of Tata Steel UK
(INR15,199 crores) were INR3,789 crores in 9m FY 08 against
INR3,059 crores in nine months FY07. The increases were
primarily in Tata Steel India (INR348 crores), Natsteel (INR102
crores) and Tata Steel Thailand (INR180 crores). While the
increases in Natsteel and Tata Steel Thailand were attributable
mainly to increase in volume of operations, the increases in
Indian operations were mainly due to increases in conversion
charges for converting chrome ore and manganese ore to ferro
chrome and ferro manganese / silico manganese.
Interest
The interest charges (net) were INR3,358 crores in 9mFY08
(INR224 crores in 9mFY07). Other than interest charge of
INR2,236 crores of Tata Steel UK, remaining increase is mainly
due to increase in borrowings, to fund acquisition cost of
Corus, by various entities including TSAH and Tata Steel India.
Exceptional items
The employee separation compensation was INR177 crores in 9mFY08
(9mFY07: INR113 crores). The discounting rate changed from
7.50% to 8.00 % in nine months ended 31st December 2006 reducing
the charge for employee separation in the last financial year
while the discounting rate decreased from 8.25% to 8.00% in the
current financial year increasing the charge for employee
separation compensation in the current financial year.
A contribution of INR150 crores towards development of sports
infrastructure has been recognized as an exceptional expenditure
during the current fiscal year.
Due to rupee appreciation against major foreign currencies in
the current financial year, the company had a net exchange gain
of INR689 crores mainly due to revaluation the forex loans and
deposits. This has been recognized as an exceptional income
during the nine months ended December 31, 2007.
The actuarial gain on funds for employee benefits amounted to
INR6,117 crores for the nine months ended December 31, 2007.
The gain is on account of recovery on bond yields used to
discount scheme liabilities, and recovery in asset values of the
scheme funds. The gains or losses for employee benefits is
required to be accounted for, through the P&L Account under
Indian GAAP while this is adjusted through reserves under IFRS.
The Profit after tax inclusive of share of profits of associates
and net of minority interest, amounted to INR11,118 crores for
the nine months ending December 31, 2007, compared to INR3,213
crores for the corresponding period of the previous year.
About Tata Steel
Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- manufactures steel, and ferro
alloys and minerals. Tata Steel's products are targeted at the
auto sector and construction industry. With wire manufacturing
facilities in India, Sri Lanka and Thailand, the company plans
to emerge as a major global player in the wire business.
As reported in the Troubled Company Reporter-Asia Pacific,
Standard & Poor's Ratings Services, on July 10, 2007, lowered
its corporate credit rating on Tata Steel to 'BB' from 'BBB.'
The outlook is positive. The rating is removed from
CreditWatch, where it was placed on Oct. 18, 2006, with negative
implications after its announcement on acquiring Corus
Group PLC (Corus, BB-/Stable/--).
Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1
corporate family rating of Tata Steel Ltd., and changed the
outlook to negative from stable.
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: Inks Deal to Acquire ReachView Technologies
-----------------------------------------------------------
Alcatel-Lucent signed an agreement to acquire ReachView
Technologies, a service assurance consulting and integration
firm in North America. The financial terms of the agreement are
not being disclosed.
The company relates that upon completion this acquisition will
enhance Alcatel-Lucent's current professional services
consulting practice, specifically, OSS/BSS and software
integration, enabling the company to deliver advanced service
assurance solutions to carriers and industry and public sector
customers.
"Communications service providers are looking for advanced
services assurance solutions, and by acquiring ReachView,
Alcatel-Lucent will be able to more quickly meet that need,"
said Andy Williams, president of Alcatel-Lucent's Services
business. "The skills of ReachView complement our own service
assurance competence centers. Together we will be able to offer
carriers the premier consulting and integration expertise they
are looking for, no matter where they are located."
"Carriers and large enterprises have complex networking,
services and business challenges, and they are looking for a
partner that can help them with their operations requirements,"
said Ian Bresnahan, ReachView's chief executive officer.
"ReachView is excited to be joining Alcatel-Lucent to offer
customers our expertise in delivering quality of service and
service assurance solutions, Mr. Bresnahan added. "Our combined
skills, knowledge, network expertise and access to multi-vendor
labs, will give us a competitive advantage in taking on very
large and complex transformation projects."
Mr. Bresnahan and the two other principle partners, Todd Cochran
and Josh Shipman, of ReachView will continue with Alcatel-Lucent
after the acquisition.
Alcatel-Lucent's service assurance solution provides tools to
ensure that end-user services provided by a carrier or
enterprise are continuously available and performing to service
level agreements and quality of service performance levels. The
tools monitor performance, availability and quality of
experience, detect possible failures while at the same time
assess services and impact on the user experience.
Alcatel-Lucent related that with ReachView it will be able to
provide a total consulting practice that will help operators
isolate, prioritize and resolve network & server issues faster,
through root cause isolation and resolution management. These
solutions are tailored to match each operator's operational and
business process environment.
According to the company, integrating a solution into an
operator's network, taking into consideration existing systems,
service definitions and adapting to the carrier's processes is a
unique competency of the combined companies.
The closing, which is subject to the satisfaction of certain
conditions, is expected to be April 1, 2008.
About ReachView Technologies
Headquartered in Atlanta and Dallas, ReachView Technologies
-- http://www.reachview.com/-- specializes in best practices
around service assurance and performance management consulting,
technology solutions and integration. For service providers and
enterprise customers, reachview technologies mission is to
provide its clients with solutions that assure quality service
delivery to their customers. The company has approximately 85
employees.
About Alcatel-Lucent
Headquartered in Paris, Alcatel Lucent -- http://www.alcatel-
lucent.com/ -- (NYSE:ALU) fka Alcatel, provides solutions that
enable service providers, enterprises and governments, to
deliver voice, data and video communication services to end
users. It offers end-to-end solutions that enable
communications services for residential, business and mobile
customers. It has operations in more than 130 countries Alcatel-
Lucent is organized around three business groups and four
geographic regions. The Wireless, Wireline and Convergence
groups, which make up the Carrier Business Group, are dedicated
to serving the needs of the world's service providers. The
Enterprise Business Group focuses on meeting the needs of
business customers. The Services Business Group designs,
deploys, manages and maintains networks worldwide.
The Company's geographic regions are Europe and North, Europe
and South, North America, and Asia-Pacific, specifically in
Indonesia.
* * *
Moody's Investor Service placed Alcatel-Lucent's probability of
default rating at 'Ba2' in March 2007. The rating still holds
to date with a stable outlook.
ARPENI PRATAMA: Wins Coal-Transport Deal for US$342 Million
-----------------------------------------------------------
PT Arpeni Pratama Ocean Line won a IDR3.08 trillion (US$342
million) contract to transport coal to a coal-fired power plant,
Antara News reports.
According to the report, Jati B. Corporate Secretary Ronald
Nangoi said the company will provide two Panamax ships to carry
coal under the 15-year contract.
Under the contract, Arpeni will transport 4 million tons of coal
per year from Kalimantan to the power plant in Jepara, Central
Java, the report adds.
PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is
a marine shipping company. The company's activities include
bulk and liquid transportation services. Arpeni operates a
fleet of general-purpose specialist, such as their tweendecker
MV Alas, which is designed to transport dry cargoes such as
plywood and agricultural products.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 30, 2008, Fitch Ratings affirmed the 'BB-' Long-term
foreign and local currency Issuer Default Ratings, and the
'A+(idn)' National Long-term rating of PT Arpeni Pratama Ocean
Line Tbk. The Outlook on the ratings has been revised to
Negative from Stable. At the same time, Fitch has affirmed the
'BB-' rating on Arpeni's US$160 million senior notes due 2013.
The TCR-AP also reported on April 24, 2006, that Standard &
Poor's Ratings Services assigned its B+ corporate credit rating
to PT Arpeni, with a stable outlook. At the same time,
Standard & Poor's assigned its 'B+' rating to the proposed
US$160 million seven-year senior unsecured notes to be issued by
the company. The company intends to use a part of the net
proceeds -- about US$93 million -- for refinancing existing
debt, and the balance for capital expenditure and vessel
financing.
BANK INT'L: Plans to Acquire Teamsek's BII Stake
------------------------------------------------
South Korea's Kookmin plans to acquire Singapore fund Temasek's
PT Bank Internasional Indonesia Tbk shares, that could give it a
controlling stake in the bank, Reuters reports.
According to the report, Kookmin spokesman Choi In-seok
confirmed part of a report from the Korea Economic Daily that
quoted its CEO Kang Chung-won as saying that Kookmin bank
planned to raise its stake in Bank International.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 26, 2007, under Bank Indonesia's single-presence
policy, foreign parties cannot own a controlling stake in more
than one Indonesian bank and must submit statements of
compliance to this rule. Bank Indonesia, the report noted, set
an end-2007 deadline for affected bank owners to decide on how
they would comply with the rule.
Foreigners controlling Indonesian banks have three options to
comply with the single presence policy introduced by Bank of
Indonesia, the TCR-AP related:
-- merge the banks,
-- set up a holding company for the banks, or
-- sell down their stakes.
Temasek's Fullerton Financial Holdings Pte Ltd. since 2003 has
owned 75% of the shares of Sorak consortium, which in turn owns
a 55.85% stake in BII. Fullerton also holds a 59% majority
share in Bank Danamon.
Kim Yeon-hee of Reuters writes that Kookmin controls BII via the
Sorak Financial consortium led by Temasek, which paid US$380
million for a 51% stake in BII in 2003. The South Korean bank
owns 10.2% of BII, the report notes.
An unknown source told Reuters that Kookmin is seeking advice
from Merrill Lynch on the Indonesian market.
About Bank Internasional
PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--
engages in general banking services and in other banking
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard. The bank is headquartered in Jakarta,
Indonesia.
With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.
The Troubled Company Reporter-Asia Pacific reported on
March 3, 2008, Fitch Ratings has affirmed PT Bank Internasional
Indonesia Tbk's(BII) long-term foreign currency Issuer Default
Rating at 'BB', following Fullerton Financial Holdings'
announcement of its intentions to pursue the sale of its
interest in BII. FFH is a wholly owned subsidiary of Temasek
Holdings.
On October 19, 2007, Moody's Investors Service raised the
foreign currency long-term debt and foreign currency long-term
deposit ratings of PT Bank Internasional Indonesia Tbk.
-- The issuer/foreign currency subordinated debt ratings were
raised to Ba2/Ba2 from Ba3/Ba3 and foreign currency long-
term deposit rating to B1 from B2
-- The Not Prime foreign currency short-term deposit rating,
Baa3 global local currency deposit rating and D BFSR were
unaffected.
On Aug. 15, 2007, that Fitch Ratings affirmed all the ratings of
Bank Internasional as follows:
* Long-term foreign currency IDR at 'BB-' with a Positive
Outlook,
* Short-term foreign currency IDR at 'B',
* Individual Rating 'C/D',
* Support Rating '4', Support Rating Floor 'B' and
* National Rating 'AA-(idn)'.
BEARINGPOINT: Dec. 31 Balance Sheet Upside Down by US$469.2 Mil.
---------------------------------------------------------------
BearingPoint Inc. reported that on Dec. 31, 2007, the company
had total assets of US$1,981.4 million, total liabilities of
US$2,450.6 million resulting to a total stockholders' deficit of
US$469.2 million.
For the fourth quarter of fiscal 2007 ended Dec. 31, 2007, the
company realized a net loss of US$169.0 million, which was
significantly above the average of its net losses incurred in
the first three quarters of fiscal 2007. Proactive management
actions taken in the fourth quarter and intended to drive
further cost savings in 2008 contributed significantly to the
magnitude of this loss.
These fourth quarter management actions included, among other
things, lease and facilities restructuring costs of US$20.6
million and additional severance costs of US$14.4 million. Also
contributing to the fourth-quarter loss was US$58.8 million in
contract write-downs and loss accruals, a notable net year-over-
year increase over the fourth quarter of fiscal 2006.
Notwithstanding these fourth-quarter increases, total contract
write-downs and loss accruals for the full fiscal year continued
to show improvement, as compared to contract write-downs and
loss accruals for 2006 and 2005.
The company incurred a net loss of US$362.7 million for the
fiscal year ended Dec. 31, 2007 compared to US$213.4 million net
loss for fiscal 2006. Contributing to the net loss for 2007
were bonuses accrued and payable to the company's employees, in
part for 2006, as well as 2007; non-cash compensation expense
related to the vesting of stock-based awards; lease and
facilities restructuring charges; external costs related to the
preparation of its financial statements, and its auditors'
review of the company's financial statements and the testing of
internal controls. Year-over-year external accounting costs
were down significantly and the company expects continued
improvement in these costs in 2008.
"Today marks an important milestone for BearingPoint as we are
once again timely with our SEC filings," Ed Harbach,
BearingPoint's chief executive officer, said. "In 2007, we also
significantly reduced our SG&A expenses and exceeded our year-
end cash balance target for 2007, ending the year with cash on
hand of US$468.5 million.
"While last year's financial results were disappointing overall,
we have a lot to build on. In 2008, we are focused on
controlling costs, increasing cash flow and improving
utilization of our talented workforce," Mr. Harbach continued.
"We are investing in [UTF-8?] our people, in our systems and in
our technology" all of which will lead to a stronger and more
flexible organization.
"We have some strong momentum entering the year, which we will
use to strategically leverage our global footprint and
capitalize on areas where we have a differentiated portfolio of
expertise, particularly our strong Public Services practice,"
Mr. Harbach added. "We will execute our plan, lead with our
strengths and make profitability our first priority.
"We are now at a clear inflection point in our business and in
our history. We are excited about what our future holds,"Mr.
Harbach concluded.
About BearingPoint Inc.
Headquartered in Mclean, Virginia, with approximately US$3.4
billion in revenues for the twelve months ended September 2007,
BearingPoint, Inc. provides I/T consulting and managed services
to commercial and governmental entities worldwide.
* * *
As reported in the Troubled Company Reporter on Dec. 11, 2007,
Moody's confirmed BearingPoint's B2 corporate family rating and
assigned a negative rating outlook. In doing so, Moody's has
concluded its review for possible downgrade of the company's
ratings. The B2 rating confirmation is supported by the
likelihood that, irrespective of a potential further slowdown in
the U.S. economy, the company's Public Services, EMEA, and Asia
Pacific divisions will continue to provide support for the
company's overall revenue growth and achievement of operating
profitability. The confirmation also reflects the likelihood
that the company will continue reduce its high finance,
accounting, and infrastructure costs, raise staff utilization
levels, and lower capital expenditures, thereby improving its
overall financial operating performance. On Dec. 3, 2007, the
company reestablished and expects to maintain current financial
reporting status.
CHAROEN: To Engage in Palm Production to Meet Rising Demand
-----------------------------------------------------------
Charoen Pokphand Group, the parent firm of PT Charoen Pokphand
Indonesia Tbk, will start production of palm oil over the next
three years as local demand for the commodity is on the rise,
the Bangkok Post reports.
Montri Congtrakultien, president and chief executive officer of
the group's Crop Integration Business Group, told the Post that
the conglomerate is preparing to invest at least THB600 million
in the oil-palm business beginning this year.
The plan includes planting palm trees in the company's lands and
engaging in contract farming to increase production, the same
report says.
Aside from that, the company also plans to put up biodiesel
units in three locations.
"We have set a target to have the oil palm plantation area under
the contract farming to 200,000 rai within 10 years," Mr.
Congtrakultien told the Post.
PT Central Proteinaprima Tbk headquartered in Jakarta Indonesia
is an Indonesia-based agribusiness company that is part of
Charoen Pokphand Group. The Company is engaged in the animal
husbandry sector, producing animal feed for fish, shrimp and
poultry, as well as shrimp farming activity. Its subsidiaries
include Isodoro Holding BV, which is engaged in the financial
sector; PT Centralpertiwi Bahari and PT Centralwindu Sejati,
which are engaged in the agribusiness sector; PT Marindo Lab
Pratama, which is engaged in the production of dietary
supplement containing bacteria or yeast and Blue Ocean Resources
Pte Ltd, which is a trading company. As of May 22, 2007, the
Company has acquired PT Central Panganpertiwi, which is engaged
in the production of fish feed.
The Troubled Company Reporter-Asia Pacific reported on
June 14, 2007, that Fitch Ratings assigned a Long-term foreign
currency Issuer Default Rating of 'B+' to PT Central
Proteinaprima Tbk. Fitch said the outlook on the rating is
stable. At the same time, Fitch has assigned an expected rating
of 'B+' and an expected recovery rating of 'RR4' to the proposed
senior notes to be issued by Blue Ocean Resources Pte Ltd and
guaranteed by CPP and its subsidiaries. The ratings were
assigned based on an indicative issue size and tenor
communicated to the agency by CPP; any material deviations from
these may result in a negative rating action. Further, the
final ratings are contingent upon receipt of final documents
conforming to the information already received.
DIRECTED ELECTRONICS: Sets 4Q & FY2007 Conference Call on Monday
----------------------------------------------------------------
Directed Electronics, Inc. will report financial results for the
fourth quarter and full year ended December 31, 2007 after the
market close on March 17, 2008. The company also announced that
it will host a conference call on the same day at 5:00 p.m.
Eastern Time. The company will discuss its results for the
fourth quarter and full year of 2007. The conference call may
include forward-looking statements.
To participate in the conference call, investors should dial
800-762-8779 ten minutes prior to the call. International
callers should dial 480-248-5081. A telephone replay of the
call will be available through 11:59 p.m. Eastern Time on
March 31, 2008 by calling 800-406-7325 (passcode: 3853738).
International callers should dial 303-590-3030 and use the same
passcode.
The call will be open to all interested investors through a live
audio Web broadcast via the Internet at http://www.directed.com.
For those who are not available to listen to the live broadcast,
the call will be archived for a period of 90 days.
About Directed Electronics
Directed Electronics, Inc. (Nasdaq: DEIX) --
http://www.directed.com/-- is the largest designer and marketer
of consumer branded vehicle security and convenience systems in
the United States based on sales and a major supplier of home
audio, mobile audio and video, and satellite radioproducts. As
the sales leader in the vehicle security and convenience
category, Directed offers a broad range of products, including
security, remote start, hybrid systems, GPS tracking and
navigation, and accessories, which are sold under its Viper(R),
Clifford(R), Python(R), and other brand names. In the home audio
market, Directed designs and markets Definitive Technology(R)
and a/d/s/(R) premium loudspeakers. Directed's mobile audio
products include speakers, subwoofers, and amplifiers. Directed
also markets a variety of mobile video systems under the
Directed Video(R), Directed Mobile Media(R) and Automate(R)
brand names. Directed also markets and sells certain SIRIUS-
branded satellite radio products, with exclusive distribution
rights for such products to Directed's existing U.S. retailer
customer base. The company has Asian Sales offices, including
in Indonesia, Japan, Malaysia, Singapore, Korea and Thailand.
INDOSAT: Mulls Reduction of Post-Paid Tariffs
---------------------------------------------
PT Indosat Tbk, is considering to reduce tariffs in post-paid
customers rather than in prepaid customers, basing its decision
on the fact that post-paid customers use the company's services
more than the prepaid ones, Tempo Interactive reports.
Adita Irawati, company head of the public relations division,
told the news agency that the post-paid customers are only 5%
out of the total number of customers. "The average usage is
IDR150,000 per person per month", she added.
Ms. Irawati, the report relates, denied that the company treats
prepaid customers better than post paid ones. However, she
admitted that the marketing strategy for the prepaid product is
more substantial than for post-paid products because it has more
customers.
According to Tempo, Ms. Irawati explained that post-paid
customers are treated personally so the appreciation shown is
different from post-paid customers. Prepaid has more
communication strategy because most of the customers prefer
Prepaid to Postpaid, so the promotion given for post-paid is not
as forthcoming as the prepaid, she said.
Ms. Irawati's statements are a response to criticisms by Heru
Sutadi from the Indonesian Telecommunication Regulation
Institution, questioning the company's tariff and treatment
disparity between postpaid and prepaid customers, the report
adds.
About Indosat
PT Indosat Tbk -- http://www.indosat.com/-- is a fully
integrated Indonesian telecommunications network and service
provider and provides a full complement of national and
international telecommunications services in Indonesia. The
company provides international long-distance services in
Indonesia. It also provides multimedia, data communications and
Internet services to Indonesian and regional corporate and
retail customers. The company's principal cellular service is
the provision of airtime, which measures the usage of its
cellular network by its customers. Airtime is sold through
postpaid and prepaid plans. It provides a variety of
international voice telecommunications services and both
international switched and non-switched telecommunications
services. MIDI services include high-speed point-to-point
international and domestic digital leased line broadband and
narrowband services, a high-performance packet-switching service
and satellite transponder leasing and broadcasting services.
* * *
The Troubled Company Reporter-Asia Pacific reported on
March 3, 2008, that Fitch Ratings has assigned a stable outlook
on PT Indosat Tbk's BB- rating. EBITDA margins are likely to be
stable overall. Fitch Ratings has said that its overall outlook
for the Asia Pacific telecommunication sector in 2008 is stable,
with 24 out of its total 28 rated telecommunications issuers
bearing a Stable Outlook. Highlighting its newly published
"Asia-Pacific Telecoms Credit Outlook 2008" 20 page report, the
agency outlines its expectations on how key financial metrics
will move for 26 operators across Asia-Pacific in 2008,
concluding that while revenue growth is likely to slow, cash
flow from operations and free cash flow after dividends are
likely to rise on aggregate. Nevertheless the agency cautioned
that it expects FCF to actually fall for half of its rated
operators across Asia Pacific.
On June 19, 2007, Moody's Investors Service affirmed PT
Indosat Tbk's Ba1 local currency issuer rating and has also
changed the outlook to stable. At the same time, Moody's
affirmed Indosat's Ba3 senior unsecured foreign currency rating.
The rating outlook on the bond remains positive, which is in
line with the outlook on Indonesia's foreign currency country
ceiling.
=========
J A P A N
=========
ALITALIA SPA: New Gov't to OK Sale if Flagship Status Retained
--------------------------------------------------------------
The next Italian government will approve the sale of its 49.9%
stake in Alitalia S.p.A. to Air-France KLM S.A. if the carrier's
national identity is retained, various reports say citing former
Prime Minister and opposition leader Silvio Berlusconi.
"The idea of an Air France-KLM-Alitalia public company is
possible, but by maintaining Alitalia as a flagship carrier,
with its own symbol and offices around the world," the former
prime was quoted by Reuters as saying.
Mr. Berlusconi had been against a possible takeover by Air
France over Alitalia. He, however, stressed that an Italian
buyer is much preferred, Bloomberg News relates. Mr. Berlusconi
also reiterated his stand against downsizing Alitalia's
operations in Milan.
The former prime minister added that Italian may make a
temporary "sacrifice" under exceptional circumstances to save
Alitalia, Reuters relates.
As reported in the TCR-Europe on Feb. 18, 2008, Air France said
it will seek approval from the new Italian government chosen
following the April 13-14, 2008, snap elections, for any
agreement to acquire Italy stake in Alitalia. Air France
managing director Pierre Henri Gourgeon that the exclusive talks
may go beyond the April elections due to various procedural
steps.
The Forza Italia opposition party, headed by former Prime
Minister Silvio Berlusconi and seen to win the upcoming
election, said it will respect the possible sale of stake in
Alitalia to Air France if it emerges as the victor.
"If there were to be a contract already signed, it would be
respected," Renato Brunetta, deputy coordinator of Silvio
Berlusconi's Forta Italia, was quoted by Bloomberg News as
saying.
Alitalia and Air France-KLM SA have until mid-March to complete
exclusive talks and present a final binding offer to the Italian
government, which thereafter will decide whether to sell its
stake to the French carrier.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/ -- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
JAPAN AIRLINES: Not Subject to EU Cartel Probe, Company Says
------------------------------------------------------------
Japan Airlines Corp. said they were not being investigated as
part of an EU cartel probe, Reuters reports.
European Commission trust busters, the report recounts, raided
the offices of several international airlines operating long-
haul scheduled flights to Japan on Tuesday in an investigation
into suspected cartel activity.
A spokesman for JAL said none of its branches in Europe had been
investigated, the same report adds.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
As reported on March 6, 2008, Standard & Poor's Ratings Services
revised to positive from negative the outlook on its 'B+'
long-term corporate credit ratings on Japan Airlines Corp.
(JAL) and the company's wholly owned subsidiary, Japan Airlines
International Co. Ltd. The outlook revision is based on the
prospect that JAL will receive a capital infusion of more than
JPY150 billion, which has eased concern over the company's
financing plans over the next two to three years. The outlook
revision is also based on increased certainty that progress in
structural reforms will help the company improve its financial
profile and stabilize its cash flow. At the same time, Standard
& Poor's affirmed its 'B+' long-term corporate credit and senior
unsecured debt ratings on both companies.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006 with the completion of the merger of JAL's two
operating subsidiaries, JAL International and Japan Airlines
Domestic. JAL International will be the surviving company.
Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
METHANEX: Paying US$0.14/Share Quarterly Dividend on March 31
-------------------------------------------------------------
Methanex Corporation's board of directors declared a quarterly
dividend of US$0.14 per share that will be payable on
March 31, 2008, to holders of common shares of record on
March 17, 2008.
Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) --
http://www.methanex.com/-- is a publicly-traded company engaged
in the production, distribution, and marketing of methanol. The
company's stock also trate on foreign securities market of the
Santiago Stock Exchange in Chile under the trading symbol
"Methanex".
* * *
Moody's Investor Services placed Methanex Corporation's
probability of default rating at 'Ba1' in September 2006. The
rating still holds to date with a stable outlook.
MITSUBISHI MOTOR: Opens 39th Dealer Showroom in India
-----------------------------------------------------
Mitsubishi Motors Corporation and Hindustan Motor (HM) opened
its 39th dealer showroom in Lunknow, India, in line with its
plan to expand dealership network in the country, Antara News
reports.
According to the report, the company is also planning to open 50
dealerships in India by the end of 2008.
With the opening of its new dealer showroom in Lucknow, the
total number of its dealership goes up to 39, the report notes.
HM Vice President Y V S Vijaya Kumar was quoted by the news
agency as saying, "This initiative is part of series of
dealerships which Mitsubishi and HM are opening through out the
country in the next 20 days.
About Mitsubishi Motors
Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation
-- http://www.mitsubishi-motors.co.jp/-- is one of the few
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.
The company also operates consumer-financing services and
provides this to its customer base. MMC adopted the Mitsubishi
Motors Revitalization Plan on Jan. 28, 2005, as its three- year
business plan covering fiscal 2005 through 2007, after investor
DaimlerChrysler backed out from the company. The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."
The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia. Its
products are sold in over 170 countries.
As reported on Feb. 25, 2008, Moody's Investors Service placed
the Ba3 long-term debt ratings of Mitsubishi Motors Corporation
and its supported subsidiaries, Mitsubishi Motors Credit of
America, Inc. and MMC International Finance (Netherlands) B.V.
under review for possible upgrade. The rating action reflects
MMC's successful implementation of its business strategy, which
involves revitalizing its business in line with its turnaround
plan for FYE 3/2008, the plan's final year.
As reported on Feb. 22, 2008, Standard & Poor's Ratings Services
placed its 'B' long-term corporate credit and 'B+' senior
unsecured debt ratings on Mitsubishi Motors Corp. on CreditWatch
with positive implications. This follows the increased
likelihood that the company will achieve most of the profit
targets set forth in its revitalization plan, and the progress
the company has made in optimizing its global production system
following its decision to close its assembly plant in Australia.
SANYO ELECTRIC: Fitch Affirms BB Ratings with Stable Outlook
------------------------------------------------------------
Fitch Ratings has affirmed Sanyo Electric Co., Ltd.'s long-term
foreign and local currency Issuer Default Ratings and senior
unsecured debt rating at 'BB+', and removed them from Rating
Watch Negative. The ratings were placed on RWN on
Feb. 23, 2007, following the launch of an investigation by
Japan's Securities and Exchange Surveillance Commission into the
company's past accounting practices. The Outlook on the
ratings is Stable.
"We believe the strategic direction Sanyo is now heading in,
together with its restructuring efforts, are helping to improve
the company's operating performance," says Tatsuya Mizuno,
Director in Fitch's Asia Pacific telecommunications, media and
technology team. Sanyo has also focused on improving its
balance sheet, leading to a significant reduction in debt
levels. "An amendment of past accounting records and the
subsequent penalties charged by the authority have negatively
influenced Sanyo's creditworthiness to some extent, but we now
believe the company is restoring its credibility under the new
management's reform activities," added Mr. Mizuno.
On December 25, 2007, Sanyo announced amendments to previous
financial statements for the past six periods until the fiscal
year ending March 31, 2006. The amendments revealed that the
company paid dividends for five half-year periods from September
2002 to the half year ended September 2004, despite negative
earnings during the same periods. The SESC recommended that the
Financial Services Agency fine Sanyo JPY8.3 million for the
accounting irregularities. The Tokyo Stock Exchange put Sanyo
on its monitoring post to decide whether its shares should be
de-listed. On February 8, 2008, TSE issued a warning to Sanyo
regarding its historic practise of releasing false financial
statements, while at the same time removed Sanyo's stock from
the monitoring post.
Last Spring, three senior management members resigned at Sanyo
and a new president, Seiichiro Sano, took office. Fitch views
that this management change has reduced the founding family's
control over the company and positively impacted Sanyo, as
previously an apparent conflict among senior management over
strategic direction prevented the company from implementing its
strategies in a consistent and swift manner. On the other hand,
the influence of three financial institutions, which provide
financial support to Sanyo, has now increased. Fitch believes
that support from these financial institutions continues to be
critically important for Sanyo to maintain its creditworthiness.
Under the new management team, Sanyo's operating performance has
been improving. In Q308, the company recorded consolidated
sales of JPY597.2 billion with operating profit of JPY26.2
billion, a 4.4% operating profit margin, which is a considerable
improvement from the 2.6% operating profit margin in Q307. For
FYE08, the company forecasts a net profit of JPY20bn, which will
be its first positive earnings report in four years. In
November 2007, Sanyo announced its "Mid-term Business Strategy
(Master Plan)," in which the company expressed its intention to
focus on key products including rechargeable batteries, solar
cells and electronic components. Fitch expects Sanyo's earnings
and cash flow to improve if management resources continue to
focus on these key products.
Moreover, lower restructuring expenses (which peaked in FYE06)
and asset sales are also likely to mitigate the company's
financial burden. On the other hand, Fitch believes it will be
challenging for the company to restore its competitiveness
against stronger competitors in the home appliance and audio
visual product lines.
Sanyo's consolidated debt fell to JPY541.7 billion at the end of
2007 from JPY792.2 billion at FYE06. However, its liquidity
(cash + time deposits + restricted cash) declined to JPY329.5
billion at the end of 2007 from JPY562.3 billion at FYE06. A
large part of the proceeds (JPY264.8 billion) from the issuance
of preferred stocks (i.e. the capital infusion from the three
financial institutions), was retained as restricted cash but has
been consumed during the restructuring process. While
net debt/EBITDA improved to 2.0x in FYE07 from 2.5x in FYE06,
its net debt/equity ratio worsened slightly to 0.9x from 0.7x
during the same period.
Sanyo is a major Japanese consumer electronics manufacturer with
its business segmented into three groups, namely consumer,
commercial and components. For FYE07, the company recorded
sales of JPY2,215.4 billion and a net loss of JPY45.4 billion.
* Fitch Says Japan's Shinkin Sector Faces Hurdlers This Year
-------------------------------------------------------------
Fitch Ratings has just published a special report, "Japan's
Shinkin: Annual Review and Outlook," on the performance of
shinkin (Japan's credit associations) in 2007 and the outlook
for 2008. This is the fourth annual review on the shinkin
sector since the agency first started publishing its Shinkin
Financial Strength ratings in January 2004. Based on
the financial results for the year ended March 2007, 68 Shinkin
Financial Strength Ratings were upgraded, which far exceeds the
number of downgrades. Fitch expects there will be fewer
upgrades in 2008.
Following on from previous years, Japan's shinkin sector
benefited from the benign credit environment in FYE07, which
allowed their asset quality to improve following a reduction in
NPLs, and their loan books, whilst still modest, to grow.
Having recorded the largest net loss in the sector's history in
the year ended March 2002, the shinkin's average capital ratio
has risen to almost 12% at end-March 2007 by retained earnings.
Notwithstanding the favourable operating environment in 2007, it
has become clear that Japan's financial institutions, including
shinkin, are facing challenges. A recovery in Japan's economy
remains patchy and may even start to falter; also, interest
rates do not seem to be rising, especially after the disruption
to the financial markets caused by US subprime woes. In
addition, competition among the regional banking institutions
has intensified. Although the privatised postal savings
institution (now called Yucho Bank) has yet to be allowed to
extend loans freely, the bank is poised to rival the shinkin in
terms of providing loans, which is its core competence.
While there may be further polarization in shinkin's financial
strength, the Shinkin Central Bank remains the last resort for
this sector in need of support. Fitch has reservations as to
SCB's ability to provide support as the maximum capital
injection of JPY200 billion may not be enough to act as an
adequate safety net or may not be enough to ensure timely
support. Nevertheless, SCB's arrangements for the support of
undercapitalised shinkin do constitute a mutual support
mechanism which, if made stronger and more comprehensive, could
make possible a "group rating". Group ratings are Fitch's
ratings for a banking group backed by mutual support -- legally
binding or else -- depending on the cohesiveness of such banking
groups and the extent to which they can be viewed as a single
economic risk unit.
This year, the prime minister's financial council will discuss
cooperative financial organisations such as shinkin and credit
cooperatives.
The discussion will cover how such organisations are able to
enhance their function and governance. Two drastic options for
the shinkin going forward are either to consolidate all of them
into a single group, or to de-mutualise shinkin, which will
widen the range of possible M&A activities.
===============
M A L A Y S I A
===============
AMBANK BERHAD: Fitch Puts BB Rating on Stapled Securities
---------------------------------------------------------
Fitch Ratings has assigned a long-term rating of 'BB' to
Malaysia-based AmBank (M) Berhad's Stapled Securities
denominated in Singapore dollars. The rating is two notches
below AmBank's Long-term foreign currency Issuer Default Rating
of 'BBB-', which was affirmed in December 2007 with a Positive
Outlook; this is in accordance with Fitch's criteria of rating
hybrid securities of financial institutions. The final rating
is contingent upon receipt of final documents conforming to
information provided to date. In the event of liquidation, the
right of payment of the Stapled Securities will rank junior to
the bank's deposits and debt obligations (including subordinated
instruments), senior to ordinary shares and pari passu to
preference shares.
AmBank's Stapled Securities will comprise the Non-Cumulative
Perpetual Capital Securities, which are stapled with the
Subordinated Notes issued by the bank's wholly owned subsidiary,
AmCapital (L) Inc. Interest payments on the Subordinated Notes
will commence from the issue date while distributions on the
Capital Securities will only commence from an Assignment Event.
An Assignment Event will occur, amongst others, following a
breach in the minimum regulatory capital adequacy ratios, or a
winding up proceeding, or after 10 years from the issue date, or
at the option of either Bank Negara Malaysia or AmBank.
Following an Assignment Event, the Subordinated Notes, which
will cease to be stapled to the Capital Securities, will be
transferred to AmBank under a forward purchase arrangement while
the investors will continue to hold the Capital Securities.
The structure of the Stapled Securities achieves two objectives:
(i) the Capital Securities will qualify as Non-Innovative Tier-1
Capital under the BNM guidelines and (ii) the interest payments
on Subordinated Notes are expected to qualify for tax
deductions. The issuance of the Stapled Securities is unlikely
to materially affect AmBank's CARs (Tier-1: 6.3%; Total: 12.0%
at end-September 2007) as it forms part of the ongoing internal
reorganization of the larger AMMB Holdings Berhad group where
the bank will assume additional assets from its sister
AmInvestment Bank Berhad by end-March 2008.
Based on Fitch's equity credit criteria, the Stapled Securities
are assigned Class E equity treatment, giving them 100% equity
credit. This classification recognizes the securities'
subordinated ranking, their perpetual nature and the mechanisms
for non-payment of interest. Ongoing cash payments on the
Stapled Securities will be mandatorily deferred (i.e. the
interest payment will be waived) should it result in AmBank's
CARs declining below the regulatory minimum. Thisconsideration
overrides the look-back provision which prevents such
nonpayments had the bank or its subsidiaries been franking
dividends on ordinary and other preference shares over the past
six months. While perpetual in nature, the Capital Securities
are redeemable at the bank's option after 10 years from the date
of issuance. Such redemption however would require BNM's
approval and AmBank meeting its minimum CARs.
AmBank has a sizeable presence in the consumer market in
Malaysia with a notable franchise in car hire-purchase
financing. The commercial bank is part of the AHB group, whose
two major shareholders are AmCorpGroup Berhad (owned by non-
executive Chairman, Tan Sri Azman Hashim with 18.1%shareholding)
and ANZ with a shareholding of 14.1%. Subject to regulatory
approvals, ANZ's shareholding can increase up to 24.9% through
the exercise of conversion option attached to the convertible
and exchangeable instruments that it injected into the group in
2007.
MALAYSIA AIRLINES: Unit Expects to Achieve MYR400MM of Revenues
---------------------------------------------------------------
MAS Aerospace Engineering Sdn. Bhd., a wholly owned subsidiary
of Malaysia Airlines Berhad, believes that it will achieve
MYR400 million third-party revenues in 2008 compared to
MYR325 million of revenues last year with the demand for
maintenance, repair and overhaul services from airlines
worlwide, Bernama reports.
Roslan Ismail, Mas Aerospace's managing director, said that the
company expects to offer MRO services to 100 aircrafts this year
as compared to 77 aircrafts last year, the report adds.
To meet the demand, the company planned to expand its facilities
at the KL International Airport, which will cost about
US$100 million.
Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.
The carrier posted a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes. In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007. Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.
SOLUTIA INC: Inks Amended Monsanto & Retiree Agreements
-------------------------------------------------------
In accordance with its fifth amended joint plan of
reorganization, Solutia Inc. entered into an amended and
restated Monsanto settlement agreement; indemnification
agreement with Pharmacia Corporation; and first amended and
restated retiree settlement agreement with certain parties,
Rosemary L. Klein, Solutia's senior vice president, general
counsel and secretary, discloses in a regulatory filing with the
U.S. Securities and Exchange Commission.
The Monsanto Settlement Agreement and the Pharmacia Indemnity
Agreement between Solutia and Monsanto Company provide that
Monsanto will fund post-emergence the environmental remediation
obligations and related environmental liabilities at sites
owned, operated or used by Pharmacia, but which Solutia never
owned, operated or used. Solutia and Monsanto will share the
environmental remediation obligations and related environmental
liabilities for the Anniston, Alabama, and Sauget, Illinois
offsite remediation projects, according to Ms. Klein.
Pursuant to the Monsanto Settlement Agreement, Monsanto has
agreed to assume financial responsibility for all litigation
relating to property damage, personal injury, products liability
or premises liability or other damages related to asbestos, PCB,
dioxin, and other chemicals manufactured before Solutia's spin
off from Pharmacia on Sept. 1, 1997.
Monsanto's funding of the environmental remediation activities
and the resulting claim against Solutia, which Monsanto has
asserted, are being resolved through the Plan, Ms. Klein
relates. Solutia will remain responsible for the environmental
liabilities at sites that it owned or operated after the Spin-
off.
A full-text copy of the Monsanto Settlement Agreement is
available for free at http://ResearchArchives.com/t/s?28f6
Retiree Settlement
In accordance with the Plan, Solutia entered into the Retiree
Settlement Agreement with the Official Committee of Retirees. A
2008 Retiree Welfare Plan has been agreed upon as a result of
the Retiree Settlement Agreement. The 2008 Retiree Plan
provides post-retirement health and life insurance benefits to
certain retirees, Ms. Klein says.
A full-text copy of the 2008 Retiree Plan is available for free
at http://ResearchArchives.com/t/s?28f7
The terms of the Retiree Settlement Agreement provide that
Solutia will contribute US$175,000,000 in cash and an amount
equivalent to the recovery on a US$35,000,000 general, unsecured
claim with a specific distribution of new employer stock to the
voluntary employees' beneficiary association -- Retiree Trust.
The Retiree Trust will be comprised of two sub-accounts, which
will be funded by Solutia or the Retiree Shares and sales
proceeds.
A full-text copy of the Retiree Settlement Agreement is
available for free at http://ResearchArchives.com/t/s?28f8
Registration Rights Agreement
In connection with the issuance of 2,489,977 shares of New
Common Stock to Monsanto, Solutia entered into a Registration
Rights Agreement with Monsanto, pursuant to which, Solutia is
required to file a registration statement under the Securities
Act to effect the registration of the resale of the shares of
New Common Stock issued to Monsanto.
The registration rights granted in the Monsanto Registration
Rights Agreement are subject to customary restrictions. In
addition, Monsanto's registration rights are subject to a "most
favored nation" clause, which provides, among other things, that
Solutia may not grant registration rights to any holder of its
securities that are more favorable to those holders than the
registration rights granted to Monsanto without the prior
written consent of holders of a majority of the shares held by
Monsanto on the Effective Date.
The Monsanto Registration Rights Agreement contains customary
indemnification and contribution provisions, as well as
representations and warranties by Solutia and by Monsanto.
Solutia will be responsible for expenses relating to the
registrations contemplated by the Monsanto Registration Rights
Agreement, subject to certain limitations.
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No.
03-17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan. Solutia emerged from chapter 11
protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No.
121; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on March 4, 2008,
Standard & Poor's Ratings Services raised its corporate credit
rating on Solutia Inc. to 'B+' from 'D', following the company's
emergence from bankruptcy on Feb. 28, 2008, and the
implementation of its financing plan. S&P said the outlook is
stable.
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan. In addition, S&P
assigned its 'B-' rating to Solutia's $400 million unsecured
bridge loan facility. S&P also withdrew its 'B-' rating on the
proposed US$400 million unsecured notes, which have been
replaced by the bridge facility in Solutia's capital structure.
SOLUTIA INC: Issues New Common Stock Under Confirmed Plan
---------------------------------------------------------
Solutia Inc. and 14 of its subsidiaries consummated on
Feb. 28, 2008, their reorganization under Chapter 11 through
transactions contemplated by their confirmed fifth amended joint
plan of reorganization.
On the effective date, all existing shares of common stock
outstanding before the effective date were canceled pursuant to
the Plan. Rosemary L. Klein, Solutia's senior vice president,
general counsel and secretary, relates in a regulatory filing
with the U.S. Securities and Exchange Commission that in
satisfaction of creditor claims and stockholder interests,
Solutia issued:
(a) 29,024,446 shares of common stock, par value $0.01 per
share to its general unsecured creditors and noteholders
who hold the 2027 Notes and the 2037 Notes. About 831,052
of these shares are being held in a disputed claims
reserve for the benefit of holders of disputed claims
whose claims are subsequently allowed and any shares left
over after all disputed claims have been resolved will be
distributed pro rata to holders of allowed claims;
(b) 1,221,492 shares of New Common Stock to the Retiree Trust;
(c) 597,500 shares of New Common Stock, representing 1% of the
total New Common Stock, to holders of at least 175 shares
of the Old Common Stock;
(d) 15,936,703 shares of New Common Stock to general unsecured
creditors and noteholders pursuant to the Creditor Rights
Offering;
(e) 2,812,359 shares of New Common Stock to the backstop
investors in the Creditor Rights Offering;
(f) 7,667,523 shares of New Common Stock to holders of at
least 11 shares of Old Common Stock pursuant to the Equity
Rights Offering; and
(g) 2,489,977 shares of New Common Stock, representing the
shares of New Common Stock that were unsubscribed for in
the Equity Rights Offering, to Monsanto Company.
According to Ms. Klein, the general unsecured claims pool has
US$786,221,598 in total claims and is comprised of (i)
US$455,400,000 in allowed noteholder claims; (ii) $307,342,810
in allowed general unsecured claims; and (iii) $23,478,788 in
disputed general unsecured claims.
Solutia also issued warrants to purchase an aggregate of
4,481,250 shares of New Common Stock to holders of Old Common
Stock based on a holder's prepetition stock ownership, provided
that the holder held at least 24 shares of the Old Common Stock.
In connection with issuance of the Warrants, Solutia entered
into a Warrant Agreement with American Stock Transfer & Trust
Company, as warrant agent. Pursuant to the Warrant Agreement,
Warrant holders are entitled to purchase shares of New Common
Stock at an exercise price of US$29.70 per share. Ms. Klein
says that the Warrants have five-year terms and will expire at
5:00 p.m., New York City time, on Feb. 27, 2013. The Warrants
may be exercised for cash or on a net issuance basis.
Ms. Klein states that the number of shares of New Common Stock
issuable upon exercise of the Warrants and the exercise price
will be adjusted in connection with any dividend, distribution,
subdivision, combination, reclassification or recapitalization
of the New Common Stock.
The exercise price of the Warrants is also subject to downward
adjustment in connection with any distribution to all holders of
the New Common Stock evidences of indebtedness, other securities
of Solutia or any cash, property or other assets.
If on or before the fourth anniversary of the issue date of the
Warrants, Solutia undergoes any business combination in which
Solutia is not the surviving entity, or sells, transfers or
otherwise disposes of all or substantially all of its assets,
depending on the nature of the consideration to be paid to
holders of New Common Stock and the status of the successor, the
acquiring person may be required to purchase the Warrants for
cash at Black-Scholes valuation upon consummation of the Organic
Change, Ms. Klein discloses.
For any Organic Change occurring on or after the fourth
anniversary of the issue date of the Warrants, the Warrant
holders will have the right to receive the consideration that
they would have been entitled to receive had they exercised the
Warrants immediately before the Organic Change.
A copy of the Warrant Agreement is available for free at:
http://ResearchArchives.com/t/s?28f9
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan. Solutia emerged from chapter 11
protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No.
121; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on March 4, 2008,
Standard & Poor's Ratings Services raised its corporate credit
rating on Solutia Inc. to 'B+' from 'D', following the company's
emergence from bankruptcy on Feb. 28, 2008, and the
implementation of its financing plan. S&P said the outlook is
stable.
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan. In addition, S&P
assigned its 'B-' rating to Solutia's US$400 million unsecured
bridge loan facility. S&P also withdrew its 'B-' rating on the
proposed US$400 million unsecured notes, which have been
replaced by the bridge facility in Solutia's capital structure.
SOLUTIA INC: Terminates Pre-Emergence Stock & Select Deals
----------------------------------------------------------
Rosemary L. Klein, Solutia's senior vice president, general
counsel and secretary, discloses in a regulatory filing with the
U.S. Securities and Exchange Commission that certain indentures,
credit facilities, shares of Old Common Stock and related
incentive plans, and other agreements were terminated on the
Effective Date. Among these are:
(a) 7.375% Debentures due Oct. 15, 2027;
(b) 6.72% Debentures due Oct. 15, 2037;
(c) 11.25% Senior Secured Notes due July 15, 2009;
(d) Indentures dated Oct. 1, 1997, and July 9, 2002;
(e) Euro 200 million credit facility contemplated by a
Facility Agreement, dated July 26, 2006, as amended
between Solutia Europe S.A./N.V., Solutia Services
International S.C.A./Comm. V.A., Citigroup Global Markets
Limited, Citibank International plc, and Citibank N.A.;
(f) US$225,000,000 credit facility contemplated by a Flexsys
Multicurrency Term and Revolving Facilities Agreement of
2007; and
(g) 2006 Solutia Annual Incentive Plan.
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No.
03-17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan. Solutia emerged from chapter 11
protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No.
121; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on March 4, 2008,
Standard & Poor's Ratings Services raised its corporate credit
rating on Solutia Inc. to 'B+' from 'D', following the company's
emergence from bankruptcy on Feb. 28, 2008, and the
implementation of its financing plan. S&P said the outlook is
stable.
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan. In addition, S&P
assigned its 'B-' rating to Solutia's US$400 million unsecured
bridge loan facility. S&P also withdrew its 'B-' rating on the
proposed US$400 million unsecured notes, which have been
replaced by the bridge facility in Solutia's capital structure.
WWE HOLDINGS: Posts MYR771,000 Net Loss in Qtr. Ended Dec. 31
-------------------------------------------------------------
WWE Holdings Bhd. posted a net loss of MYR771,000 on
MYR45.45 million of revenues in the quarter ended Dec. 31, 2007,
as compared to a net loss of MYR4.72 million on MYR47.48 million
of revenues in the same quarter of 2006.
As of December 31, 2007, the company's balance sheet showed
MYR218.78 million of current assets available to pay
MYR165.32 million of current liabilities coming due within the
next twelve months.
The company's balance sheet as of end-December 2007 also
reflected MYR254.82 million of total assets and
MYR238.76 million of total liabilities resulting in a
shareholders' equity of MYR16.06 million.
About WWE Holdings
WWE Holdings Bhd is engaged in investment holding and is a
contractor for the provision of engineering services related to
design, fabrication, installation and commissioning of water,
wastewater treatment, environmental facilities and construction
activities. The company's subsidiaries include WWE Construction
Sdn. Bhd., a contractor for the provision of engineering
services related to design, fabrication, installation and
commissioning of water, wastewater treatment, environmental
facilities and construction activities; WWE Industries Sdn.
Bhd., which provides installation of mechanical and electrical
works connected with water, wastewater treatment and
environmental engineering, and Quality Water Technology Sdn.
Bhd., which undertakes research and development activities to
develop new technologies related to water and wastewater. On
March 23, 2006, WWE acquired the remaining 30% equity interest
in Quality Water.
As reported by the Troubled Company Reporter-Asia Pacific on
March 7, 2008, the company was classified as an Affected Listed
Issuer under PN 17 of Bursa Malaysia Securities Berhad's Listing
Requirements because the company's auditors were unable to
ascertain the recoverability of the amounts and the outcome of
the legal suit brought against the company. Thus, the auditors
are unable to form an opinion on the financial statements of the
Group for the financial year ended September 30, 2007.
WWE HOLDINGS: To Hold 19th Annual General Meeting on March 26
-------------------------------------------------------------
WWE Holdings Bhd. will hold its 19th annual general meeting at
9:30 a.m. on March 26, 2008, at Concorde Hotel Shah Alam,
Concorde II (Level 2), No. 3 Jalan Tengku Ampuan Zabedah C9/C,
40100 Shah Alam, in Selangor Darul Ehsan, Malaysia.
At the meeting, the members will be asked to:
-- receive the company's Audited Financial Statements for the
financial year ended September 30, 2007, and the
directors' and auditors' reports;
-- approve the payment of directors' fees of MYR29,000 for
the financial year ended September 30, 2007;
-- re-elect these directors who are retiring in accordance
with Article 98 of the Company's Articles of Association:
(a) YBhg Dato' Mat Hairi Ismail; and
(b) YBhg Dato' Boey Chin Gan
-- re-elect Ng Wah Tar as a director, who will retire in
accordance with Article 103 of the company's Articles of
Association: and
-- appoint BDO Binder (AF 0206) as the company's auditors;
About WWE Holdings
WWE Holdings Bhd is engaged in investment holding and is a
contractor for the provision of engineering services related to
design, fabrication, installation and commissioning of water,
wastewater treatment, environmental facilities and construction
activities. The company's subsidiaries include WWE Construction
Sdn. Bhd., a contractor for the provision of engineering
services related to design, fabrication, installation and
commissioning of water, wastewater treatment, environmental
facilities and construction activities; WWE Industries Sdn.
Bhd., which provides installation of mechanical and electrical
works connected with water, wastewater treatment and
environmental engineering, and Quality Water Technology Sdn.
Bhd., which undertakes research and development activities to
develop new technologies related to water and wastewater. On
March 23, 2006, WWE acquired the remaining 30% equity interest
in Quality Water.
As reported by the Troubled Company Reporter-Asia Pacific on
March 7, 2008, the company was classified as an Affected Listed
Issuer under PN 17 of Bursa Malaysia Securities Berhad's Listing
Requirements because the company's auditors were unable to
ascertain the recoverability of the amounts and the outcome of
the legal suit brought against the company. Thus, the auditors
are unable to form an opinion on the financial statements of the
Group for the financial year ended September 30, 2007.
====================
N E W Z E A L A N D
====================
FALCON PROTECTION: Wind-Up Petition Hearing Set for Today
---------------------------------------------------------
A petition to have Falcon Protection Service (NZ) Ltd.'s
operations wound up will be heard before the High Court of
Auckland today at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition on
Oct. 29, 2007.
The CIR's solicitor is:
Simon John Eisdell Moore
c/o Meredith Connell
Forsyth Barr Tower, Level 17
55-65 Shortland Street
PO Box 2213, Auckland
New Zealand
Telephone:(09) 336 7556)
FL VINEYARD: Taps Parsons & Kenealy as Liquidators
--------------------------------------------------
On February 20, 2008, Dennis Clifford Parsons and Katherine
Louise Kenealy were appointed liquidators of FL Vineyard
Contracting Ltd.
The liquidators can be reached at:
Dennis Clifford Parsons
Katherine Louise Kenealy
Indepth Forensic Limited
PO Box 278, Hamilton
New Zealand
Telephone:(07) 957 8674
Web site: http://www.indepth.co.nz
HELL ZENJIRO: Wind-Up Petition Hearing Set for April 9
------------------------------------------------------
A petition to have Hell Zenjiro Ltd.'s operations wound up will
be heard before the High Court of Auckland on April 9, 2008, at
10:00 a.m.
Meridian Construction Limited filed the petition on
Nov. 20, 2007.
Meridian Construction's solicitor is:
P. P. Buetow
Kensington Swan
18 Viaduct Harbour Avenue
Auckland
New Zealand
JONESES REAL: Fixes March 20 as Last Day to File Claims
-------------------------------------------------------
The Joneses Real Estate Ltd. requires its creditors to file
their proofs of debt by March 20, 2008, to be included in the
company's dividend distrbution.
The company's liquidators are:
Arron Leslie Heath
Michael Lamacraft
c/o Meltzer Mason Heath
Chartered Accountants
PO Box 6302, Wellesley Street
Auckland 1141
New Zealand
Telephone:(09) 357 6150
Facsimile:(09) 357 6152
KNAPP CONSTRUCTION: Commences Liquidation Proceedings
-----------------------------------------------------
Knapp Construction Ltd. commenced liquidation proceedings on
February 4, 2008.
Creditors are required to file their proofs of debt by
March 20, 2008, to be included in the company's dividend
distribution.
The company's liquidator is:
John Michael Gilbert
c/o C & C Strategic Limited
Ponsonby, Auckland
New Zealand
Telephone:(09) 376 7506
Facsimile:(09) 376 6441
NZ BUSINESS: Taps Parsons & Kenealy as Liquidators
--------------------------------------------------
Dennis Clifford Parsons and Katherine Louise Kenealy were
appointed liquidators of NZ Business Products (1992) Ltd. on
February 21 2008.
The liquidators can be reached at:
Dennis Clifford Parsons
Katherine Louise Kenealy
Indepth Forensic Limited
PO Box 278, Hamilton
New Zealand
Telephone:(07) 957 8674
Web site: http://www.indepth.co.nz
OODIAN (GLENFIELD): Fixes March 14 as Last Day to File Claims
-------------------------------------------------------------
Oodian (Glenfield) Ltd. requries its creditors to file their
proofs of debt by March 14, 2008, to be included in the
company's dividend distribution.
The company's liquidator is:
Robert Laurie Merlo
Merlo Burgess & Co. Limited
PO Box 51486, Pakuranga
Auckland
New Zealand
Telephone:(09) 520 7101
Facsimile:(09) 529 1360
e-mail: merloburgess@xtra.co.nz
PEACE INDUSTRIES: Court to Hear Wind-Up Petition on June 4
----------------------------------------------------------
The High Court of Auckland will hear on June 4, 2008, at
10:00 a.m., a petition to have Peace Industries 2007 Ltd.'s
operations wound up.
Peace Industries Limited filed the petition on Feb. 13, 2008.
Peace Industries' solicitor is:
Andrew James Steele
c/o Martelli McKegg Wells & Cormack
PricewaterhouseCoopers Tower, Level 20
188 Quay Street
Auckland 1010
New Zealand
T & F KENT: Subject to CIR's Wind-Up Petition
---------------------------------------------
On November 9, 2007, the Commissioner of Inland Revenue filed a
petition to have T & F Kent (N.Z.) Ltd.'s operations wound up.
The petition will be heard before the High Court of Auckland on
April 18, 2008, at 10:00 a.m.
The CIR's solicitor is:
Kay S. Morgan
Inland Revenue Department
Legal and Technical Services
1 Bryce Street
PO Box 432, Hamilton
New Zealand
Telephone:(07) 959 0373
Facsimile:(07) 959 7614
TPH INVESTMENTS: Placed Under Voluntary Liquidation
---------------------------------------------------
TPH Investments Ltd. commenced liquidation proceedings on
February 19, 2008, and Daryl P. Bonney was appointed as
liquidator.
The liquidator can be reached at:
Daryl P. Bonney
The Invisible Office Company Limited
PO Box 15069, Tauranga
New Zealand
Telephone:(07) 578 0489
Facsimile:(07) 578 0490
=====================
P H I L I P P I N E S
=====================
FEDDERS CORP: Wants Committee's US$150-Million Lawsuit Denied
-------------------------------------------------------------
Fedders Corporation and its debtor-affiliates object to a
lawsuit filed by Official Committee of Unsecured Creditors
against certain of the Debtors' directors, officers and lenders
alleged to have caused up to US$150 million in damages to the
Debtors.
The Debtors tell the Court that the Committee has failed to show
the benefits of pursuing the litigation and failed to provide an
explanation as to how it obtained the $150 million figure.
At this juncture, the Debtors face two primary concerns:
i) unnecessary and meritless litigation, with its related
drain on the estate's limited resources, must be avoided.
ii) individual defendants note that they have just recently
been able to secure legal representation, and that their
counsel has not had a full and fair opportunity to evaluate
the merits of the claims raised in the proposed litigation.
The Debtors' prepetition and postpetition lenders are currently
in talks whether the Committee has asserted colorable claims and
permitting the litigation to proceed would justify and outweigh
the significant cost that will follow.
Nroman L. Pernick, Esq., at Cole Schotz Meisel Forman & Lenoard
P.A., in Wilmington, Delaware, said that the claims are "highly
speculative."
Accordingly, the Debtors ask the Court to deny the Committee's
standing motion without prejudice.
A hearing is set on March 19, 2008, at 11:00 a.m., whether to
approve the request.
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 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.
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 Official
Committee of Unsecured Creditors is represented by Brown Rudnick
Berlack Israels LLP. When the Debtors filed for protection from
its creditors, it listed total assets of $186,300,000 and total
debts of US$322,000,000.
MANILA ELECTRIC: Explains March Generation & System Loss Charges
----------------------------------------------------------------
The Manila Electric Company on Monday said that the generation
charge for March 2008 is PHP4.3998 per kwh, its third lowest
level since October 2004. This represents a substantial
PHP1.30/kwh reduction from the generation charge of
PHP5.6764/kwh in July 2007 when the automatic adjustments were
restored.
While it is higher by 19.39 centavos than the exceptionally low
PHP4.1946 per kwh generation charge billed to customers in
February, it is still lower than PHP4.42 per kwh billed to
customers during the ten-month period when the automatic
adjustments were suspended, Meralco pointed out.
"I would like to assure the public that this is merely a cost-
recovery mechanism and revenue-neutral in so far as Meralco is
concerned. We never gain a single centavo from changes in the
cost of power supply that is passed on to our customers,"
explained Merlaco Vice-President for Corporate Communications
Elpi Cuna, Jr.
Mr. Cuna added that the increase was primarily because of the
upsurge in the Wholesale Electricity Spot Market prices. From
a level of PHP3.3832/kwh in January, an all-time low since the
WESM's commercial operation, the average WESM price in February
jumped by a steep PHP2.5524/kwh to PHP5.9356 per kwh. Further,
las month, there was a significant adjustment to the WESM bill,
bringing the WESM rate to PHP1.9421/kwh. Taking the data from
this level, the increase is close to PHP4 per kwh. Meralco
sourced 10% of its requirements from the WESM.
The average WESM price could have been lower by 27.42 centavos
had NPC's Generation Rate Adjustment Mechanism (-3.15
centavo/kwh) and Incremental Currency Exchange Rate Adjustment
(-24.27 centavo/kwh) been factored in. However, due to NPC's
continued failure to issue credit memos for the negative GRAM
and ICERA for Meralco's WESM purchases in December 2007 and
January 2008, Meralco deemed it prudent not to include the
negative adjustments to the WESM prices. Should NPC issue the
overdue credit memos, the said amounts will be reflected in next
month's generation charge.
Meralco also clarified that NPC's overall average rate posted a
reduction of 38.13 centavos per kwh, brought about by the change
in ICERA from +42.88 centavo/kwh in January, to -24.27
centavo/kwh in February. The 67.15 centavos reduction in ICERA
was partly offset by the 39.64-centavo increase in NPC's basic
Transition Supply Contract rate.
Of the Independent Power Producers, Quezon Power Philippines,
Ltd., managed to post a rate reduction of 96.04 centavos mostly
attributable to the plant's higher dispatch (from 59% to
76.65%). QPPL's generation cost of PHP3.7253/kwh is the lowest
among all Meralco power suppliers and the substantial reduction
it registered was solely responsible for bringing down the IPP's
collective generation cost by 10.77 centavos compared to that of
the previous month.
Meralco's IPPs still registered cheaper power cost than the NPC-
sourced power by at least 35 centavos per kwh. Sta. Rita
registered a price of PHP4.1659 per kwh while San Lorenzo
obtained PHP4.1165 per kwh.
Meralco also said that starting the March 2008 billing month,
ecozone locators will be billed with separate system loss rates
that are lower than other comparable Industrial Service and Non-
Industrial Service customers. For ecozone locators taking power
at 34.5 kV, the system loss charge will be PHP0.1912/kwh which
is 9 centavos lower than the PHP0.2817/kwh rate for other IS/NIS
customers at the same service voltage. For ecozone locators
served at secondary voltages, the system loss charge will be
PHP0.5246/kwh, which is 20 centavos lower than for other
secondary IS/NIS customers.
Meralco clarified that the lower system loss rates for
ecozone's locators is a mere allocation process. It said this
will not increase Meralco's system loss under-recoveries because
the system losses that are re-allocated are only those
kilowatthours that comprise the allowable system loss of 9.5%.
For those in the lifeline levels, the increases in bills will be
minimal, the company advises. For customers consuming 50 kwh
the increase will be PHP10, PHP17 for a 70 kwh customer, and
PHP28 for those consuming PHP100 kwh.
Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
Metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers. Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.
The Troubled Company Reporter-Asia Pacific reported on
Dec. 14, 2007, that Standard & Poor's Ratings Services revised
the outlook on its ratings on Meralco to stable from negative.
The 'B-' long-term issuer credit rating on Meralco was affirmed.
MANILA ELECTRIC: Discloses Resignation, Election of Directors
-------------------------------------------------------------
Manila Electric Company's board of directors accepted the
resignation of independent director Gregory L. Domingo and
elected Winston F. Garcia to replace him and serve the remainder
of the former's term, a filing with the Philippine Stock
exchange reveals.
The board also elected Peter D. Garrucho, Jr., to replace Jose
Manuel Prieto who earlier resigned.
Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
Metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers. Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.
The Troubled Company Reporter-Asia Pacific reported on
Dec. 14, 2007, that Standard & Poor's Ratings Services revised
the outlook on its ratings on Meralco to stable from negative.
The 'B-' long-term issuer credit rating on Meralco was affirmed.
MANILA ELECTRIC: To Hold Annual Shareholders Meeting on May 27
--------------------------------------------------------------
Manila Electric Company will hold its annual stockholders
meeting on May 27, 2008, starting 9:00 a.m., at the Meralco
Theater in Pasig City.
Meralco's board of directors has fixed March 14, 2008, as the
record date for the determination of stockholders entitled to
notice and to vote at the meeting.
Headquartered in Ortigas, Pasig City, the Manila Electric
Company -- http://www.meralco.com.ph/-- is the largest utility
in the Philippines, providing power to 4.1 million customers in
Metropolitan Manila and more than 100 surrounding communities.
As deregulation takes effect, Meralco is reducing its dependence
on state-owned National Power Corp. by increasing the amount of
power it purchases from independent power producers. Meralco is
also preparing for competition by moving into non-regulated
activities, including energy consulting, independent power
production, engineering, fiber optics, e-commerce, and real
estate.
The Troubled Company Reporter-Asia Pacific reported on
Dec. 14, 2007, that Standard & Poor's Ratings Services revised
the outlook on its ratings on Meralco to stable from negative.
The 'B-' long-term issuer credit rating on Meralco was affirmed.
PHIL. LONG DISTANCE: Aims 5 Mil. Growth in Cellular Subcribers
--------------------------------------------------------------
Philippine Long Distance Telephone Co., this year, aims to add
5,000,000 subscribers in its cellular network and about 500,000
in broadband, the company said in a filing with the Philippine
Stock Exchange confirming a March 10 report of a business daily.
On March 10, BusinessMirror reported that PLDT's goal this year
to add at least 5 million mobile-phone subscribers and about
half a million for broadband.
"We are still looking at a favorable growth this year
on the cellular side. The trend for the first two months was
quite energetic for us," the paper quoted PLDT President
Napoleon Nazareno as saying.
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
As of November 7, 2007, Philippine Long Distance Telephone
Company carried Fitch Ratings' long-term foreign currency issuer
default and senior notes ratings of 'BB+'.
The company also carries Standard & Poor's 'BB+' foreign
currency rating, as well as Moody's Investors Service's foreign
currency bond rating of Ba2. In January 2008, Moody's changed
the rating's outlook to positive from stable.
=================
S I N G A P O R E
=================
Q-LOG TRANSPORTATION: Court to Hear Wind-Up Petition on March 7
---------------------------------------------------------------
A petition to have Q-Log Transportation Pte. Ltd.'s operations
wound up will be heard before the High Court of Singapore on
March 7, 2008, at 10:00 a.m.
Ko Aik Trading filed the petition on February 13, 2008.
Ko Aik Trading's solicitor is:
BL TOK & Co.
47 Hill Street
Singapore Chinese Chamber of Commerce
and Industry Building #06-09
Singapore 179365
SPECTRUM BRANDS: Inks Standstill Pact with Harbinger Capital
------------------------------------------------------------
In a regulatory filing with the Securities and Exchange
Commission last week, Spectrum Brands Inc. disclosed that it has
entered into a confidentiality and standstill agreement with
Harbinger Capital Partners Master Fund I Ltd. in order to
provide Harbinger with confidential information relating to
certain of the company's strategic operating assets in
connection with Harbinger's evaluation of a possible
acquisition.
In the third quarter of Spectrum Brands Inc.'s fiscal year ended
Sept. 30, 2006, the company engaged advisors to assist it in
exploring possible strategic options including divesting certain
assets, in order to sharpen its focus on strategic growth
businesses, reduce its outstanding indebtedness and maximize
long-term shareholder value.
No information was provided concerning which assets Harbinger
Capital was considering to purchase under the agreement, which
was signed on Feb. 26.
About Spectrum Brands Inc.
Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE:
SPC) -- http://www.spectrumbrands.com/-- is a supplier of
batteries, portable lighting, lawn and garden products,
household insect control, shaving and grooming products,
personal care products and specialty pet supplies.
* * *
As reported in the Troubled Company Reporter on Feb. 13, 2008,
Spectrum Brands Inc.'s consolidated balance sheet at
Dec. 30, 2007, showed US$3.27 billion in total assets and
US$3.41 billion in total liabilities, resulting in a US$141.2
million total stockholders' deficit.
* Fitch Says Potential M&A in REIT Market May Affect Ratings
------------------------------------------------------------
Fitch Ratings has commented on the recent discussion of
potential M&A in the Singapore REIT market. Fitch believes that
such REIT M&A could happen in the near to medium term, and that
under certain circumstances such M&A could affect the credit
ratings of the affected REITs. At the same time, Fitch has
reviewed the documentation of REIT-originated commercial
mortgage backed securities and believes the impact of such M&A
on CMBS ratings to be minimal.
Despite the relatively liquid Singapore banking sector, the
current disruption in the global credit market is likely to
affect the institutional real estate market in Singapore as many
of the participants are either headquartered or have significant
business interests outside Singapore. Global issues such as
access to equity and/or debt funding may impact the ability of
Singapore REITs to take advantage of any acquisition opportunity
and will certainly limit the number of interested parties in any
asset disposals.
Macquarie Pacific Star, the manager of Singapore-listed
Macquarie MEAG Prime REIT (Prime REIT), recently announced that
it is conducting a strategic review, after receiving offers from
unidentified parties for a 26% stake in Prime REIT held by
Macquarie Real Estate. Several REITs in Singapore, including
Prime REIT and Allco REIT, have their shares trading below their
respective book values and hence there are discussions
about asset sales and/or M&A activities to unlock the
shareholder value. Fitch believes that consolidation of the
Singapore REIT market is likely, but tempers this view with the
knowledge that funding for such acquisitions may become more
expensive and difficult to obtain. REITs with small market
capitalisations, experiencing difficulty in raising funds for
asset expansion or refinancing debt and those also trading at
below book value are likely acquisition targets. Singapore
REITs with foreign sponsors also appear vulnerable to M&A or
asset divestment where the sponsors may look to reallocate their
resources for investment in their home countries.
Singapore REITs with a well-established presence and highly
regarded sponsors, such as CapitaMall Trust, are more likely
able to take advantage of the current market opportunities to
acquire assets from other REITs due to their better abilities to
raise funding for such acquisitions. Any potential M&A in the
Singapore REIT market would probably draw together REITs with
similar property types or asset jurisdictions due to the
potential synergy of managing and operating the assets post-M&A.
While the current loan spreads for Singapore property assets
have widened as a result of the current credit squeeze, interest
rates for Singapore property borrowers are, in fact, relatively
low as a result of the Singapore swap offer rate being at or
close to its historical low in the past three years. As a
result, debt service coverage ratios across the REIT sector
remain robust and credit quality as measured by interest
coverage and asset cash flows remains strong. The current
situation in the global capital markets highlights the
importance of availability of liquidity, which is covered by a
Fitch Special Report, entitled "Asian REITs - Time for
Financial Flexibility", published on June 25, 2007.
Historically, Singapore REITs have managed their debt profiles
with minimal liquidity and limited committed debt facilities.
Those REITs that have not addressed this issue in recent times
and also have significant refinancing to complete in the near-
term are more vulnerable to the capital and/or bank loan market
volatility and hence have higher refinancing risk. Based on the
current market condition, REITs with lower gearing ratios, a
better established portfolio, stronger financials and larger
asset sizes would more likely be the acquirers. REITs with a
smaller asset base may execute acquisitions with less
flexibility because they face a higher refinancing risk and
cannot de-leverage easily due to the weak equity market.
Impact on REIT Rating
How a potential M&A would affect the rating of the acquiring
REIT would depend on many factors, including pre- and post-
acquisition gearing, debt service coverage ratio, asset
composition and REIT management team post-acquisition, etc.
Whether the investment and acquisition criteria of the
management of the acquiring REIT would materially change would
also have a significant impact on the REIT rating.
Impact on CMBS Rating
Since the early 2000s, various Singapore REITs have used CMBS to
raise financing. Compared with the REIT ratings, a potential
M&A would have relatively less significant impact on the rating
of CMBS transactions, which is more tied to the operating and
financial performance of the underlying collateral. The
Singapore commercial real estate market has performed strongly
in recent years and the CMBS transactions are all performing at
or better than those at the time of the initial CMBS rating.
However, should there be a material change in the REIT
management team post-acquisition, the future performance of the
collateral could be impacted. From the legal perspective, a
REIT merger event will generally not constitute a CMBS note
event of default if prior consent for the merger is obtained
from the CMBS note trustee.
For those REITs with shares trading below their book value,
asset disposal is a possible option for financing. The proceeds
from the sale of the assets will be used to prepay the
corresponding portion of the CMBS collateralized by the disposed
assets, such that the cash flow from the remaining assets
collateralizing the outstanding CMBS will still be able to
support the ratings at that time.
Fitch will closely monitor developments in the market and the
credit implications on the rated REITs and CMBS and take any
rating action should circumstances warrant.
*********
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. Azela Jane Taladua, Rousel Elaine Tumanda,
Valerie Udtuhan, Patrick Abing, Tara Eliza Tecarro, Marjorie C.
Sabijon, 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 ***