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
Wednesday, April 30, 2008, Vol. 11, No. 85
Headlines
A U S T R A L I A
AIRPIPE PTY: Joint Meeting Scheduled Today
BIG V DEMOLITION: Placed Under Liquidation on March 18
CCC CUSTOMER: Schedules Final Meeting on May 1
CENTRO PROPERTIES: Halts Share Trades; Debt Deadline Today
CHARTWELL ENTERPRISES: Administrators Appointed
CHC HELICOPTER: Shareholders Vote on First Reserve Merger
CRAEPHIL PTY: Court Orders Winding Up of Company
DORFER AND GLANZNIG: To Hold Final Meeting on May 12
FARM ENTERPRISES: Placed Under Liquidation on March 14
FORSTER CENTRE: Placed Under Liquidation on March 17
GRONK WEAR: Commences Liquidation Proceedings
HOMESTEAD BAKERIES: Placed Under Liquidation on March 17
IZAMAR GROUP: Court Places Company Under Liquidation
KEPPEL HOLDINGS: Placed Under Liquidation on March 17
KINETIC CONCEPTS: Earns US$68 Million in First Quarter 2008
KINETIC CONCEPTS: Moody's Rates Proposed US$1.3BB Loan at Ba1
KINETIC CONCEPTS: 2008 Shareholders' Meeting Scheduled on May 20
REED ENTERPRISES: Placed Under Liquidation on March 17
TRICOM EQUITIES: Faces Heavy Debts on Margin Lending Probe
* Moody's Says Australian Building Sector Outlook is Negative
C H I N A & H O N G K O N G & T A I W A N
AMERICAN AXLE: Posts US$27 Million Net Loss in 1Q 2008
ANDERSON & LEMBKE: Commences Liquidation Proceedings
BIJOU TASZ: Members' Final Meeting Set for May 19
BOE TECHNOLOGY: To Invest CNY3.1 Billion on LCD Production
BLOUNT INT'L: Dec. 31 Balance Sheet Upside-Down by $54 Million
BUCYRUS INT'L: Earns US$41.1 Million in Quarter Ended March 31
BUCYRUS INT'L: Inks Preliminary JV Agreement With Huainan
CHINA EASTERN: Seeks Gov't Okay to Resume Suspended Flights
HENTRA INTERNATIONAL: Commences Liquidation Proceedings
JINAN IRON & STEEL: Paying CNY6 Per 10 Shares Dividend Today
JOSEPH CHAN WING: Commences Liquidation Proceedings
LUDGATE ASIA: Commences Liquidation Proceedings
MING FUNG: Creditors' Proofs of Debt Due May 20
MTU AERO: Earns EUR44.2 Million in First Quarter of 2008
MUSIC IMPACT: Members' Final Meeting Set for May 19
SEAENA INC: Weaver & Martin Raises Substantial Doubt
SPRING ASIA: Commences Liquidation Proceedings
TOWNGAS CHINA: Moody's Ups Towngas China Rating From Ba1 to Baa3
TITAN PETROCHEMICAL: 2007 Revenue Up 48% to HK$17,004 Million
TITAN PETROCHEMICAL: S&P Cuts Long-Term Corp. Credit Rating to B
TYSON FOODS: Posts $5 Million Net Loss in Quarter Ended March 29
ULTIMOS MANUFACTURING: Liquidator Quits Post
UNI-ALPHA: Members' Final Meeting Set for May 19
* Fitch Says Taiwanese Securities Firm is Strong
I N D I A
AXIS BANK: Shri. Surendra Singh's Term as Director Expires
BHARTI AIRTEL: To Cut Long-Distance and Mobile Roaming Rate
DCM SHRIRAM: HB Stockholding Increases Stake to 3,831,776
DECCAN AVIATION: Incurs INR1.9BB Net Loss in Qtr. Ended March 31
GENERAL MOTORS: Former Unit Delphi Wants $650 Million GM Credit
GENERAL MOTORS: Chief Says Delphi's Ch. 11 Exit to be Delayed
WORLDSPACE INC: Grant Thornton Raises Substantial Doubt
I N D O N E S I A
BANK MANDIRI: Reports IDR1.4 Trillion Net Profit
BANK RAKYAT: To Hold Shareholders' General Meeting on May 15
J A P A N
DELPHI CORP: To Seek $4.1BB Loan Refinancing, Adjusts Forecasts
DELPHI CORP: Wants to Obtain $650 Million Credit from GM
DELPHI CORP: Ch. 11 Exit to be Delayed for Months, GM Chief Says
FORD MOTOR: Shareholder Tracinda Offers to Buy 20MM Ford Stake
FORD MOTOR: Inks Master Economics Offer Agreement with CAW
MICRON TECH: S&P Keeps 'BB-' Corp. Rating on Ample Liquidity
K O R E A
LG TELECOM: First Quarter Net Income Up 15% to KRW76.1 Billion
M A L A Y S I A
CELESTICA INC: S&P Changes Outlook to Stable; Holds 'B+' Ratings
UBG BERHAD: To Hold Annual General Meeting on May 20
THERMADYNE HOLDINGS: Earns US$4 Million in Quarter Ended Dec. 31
N E W Z E A L A N D
ALEXIAM DEVELOPMENTS: Court to Hear Wind-Up Petition on July 11
ALEXIAM PROJECT: Court to Hear Wind-Up Petition on July 11
CENTRAL OTAGO HOUSE: Court to Hear Wind-Up Petition Tomorrow
CGC ENGINEERING: Joint Liquidators Appointed
CLEAR CHANNEL: Set to Release 1st Quarter 2008 Results on May 9
CLEAR CHANNEL: Further Extends Offers' Expiration Date to May 2
COLOURGRAPHIX: Shareholders Appoint Liquidators
DOCTOR GLOBAL: Court to Hear Wind-Up Petition on May 13
ELITE BUILDING: Court to Hear Wind-Up Petition on May 30
FIND US LTD: Joint Liquidators Appointed
GUILDCRAFT (TAWA): Shareholders Appoint Liquidators
GUILDCRAFT WELLINGTON: Shareholders Appoint Liquidators
HAERE RA LIMITED: Parsons & Kenealy Appointed as Liquidators
HELL ZENJIRO: Creditors Must File Claims by May 14
LINK ENGINEERING (2003): Claims Must Be Filed by May 2
LONDON TRADERS: Court Appoints New Liquidators
PATHWAY TO WEALTH: Claims Must Be Filed by May 30
R. V. MOTOR HOME: Faces ACP Media's Wind-Up Petition
SEWING MACHINE WAREHOUSE: Commences Liquidation Proceedings
ST. GEORGE DEVELOPMENTS: Court to Hear Wind-Up Petition on May 2
TRUBOND TIMBER LAMINATORS: Claims Must Be Filed by May 5
TUAKE CONSULTANTS: Faces CIR's Wind-Up Petition
* NEW ZEALAND: Records NZ$50 Mil. Trade Deficit in March 2008
P H I L I P P I N E S
NIHAO MINERAL: David Atienza Acquires 1,000 Common Shares
* PHILIPPINES: 2008 Fiscal Deficit Down to Php51.6 Billion
S I N G A P O R E
BESTGROWTH HOLDINGS: Creditors' Proofs of Debt Due on May 9
MJC (SINGAPORE): Creditors' Meeting Set for May 6
SEI WOO PLASTIC: Filing Proofs of Debt Due on May 26
SEI WOO VENTURE: Requires Creditors to File Claims by May 26
SMSHUB PTE: Court Enters Wind-Up Order
STATS CHIPPAC: Earns US$17.85 Mil. in Quarter Ended March 30
* Fitch Says Singapore Banks Financial Profiles Remains Strong
T H A I L A N D
BLOCKBUSTER INC: Circuit Stockholder HBK Supports Merger Talks
X X X X X X X X
* Fitch Says Asia Banks Have Modest Exposure to CDOs & SIVs
* Upcoming Meetings, Conferences and Seminars
- - - - -
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A U S T R A L I A
=================
AIRPIPE PTY: Joint Meeting Scheduled Today
------------------------------------------
Airpipe Pty Limited will be holding a joint meeting of its
members and creditors at 10:30 a.m. today, April 30, 2008, at
the offices of Armstrong Wily, Level 5, 75 Castlereagh
Street, in Sydney.
At the meeting, the appointed liquidators will present the
manner in which the winding up has been conducted and the
property of the company disposed.
The liquidators are:
Andrew H.J. Wily
David A. Hurst
Armstrong Wily Chartered Accountants
Level 5, 75 Castlereagh Street
Sydney NSW
BIG V DEMOLITION: Placed Under Liquidation on March 18
------------------------------------------------------
Big V Demolition & Civil Construction Pty Limited's
members decided at a general meeting held March 18, 2008, that
the Company be wound up voluntarily.
M.F. Cooper of Frasers Insolvency Advisory at Level 5, 99
Elizabeth Street in Sydney was appointed as liquidator of the
company.
CCC CUSTOMER: Schedules Final Meeting on May 1
-----------------------------------------------
CCC Customer Contact Centre Pty Limited will hold a
final meeting of its creditors and members on May 1, 2008,
at 9:30a.m., at the offices of Jones Partners, Insolvency &
Business Recovery, Level 13, 189 Kent Street, in Sydney.
At the meeting, the company's liquidator will present
an account showing how the winding up has been
conducted and the property of the company has been
disposed.
The liquidator is:
Michael Jones
Jones Partners Insolvency & Business Recovery
Telephone: (02) 9251-5222
CENTRO PROPERTIES: Halts Share Trades; Debt Deadline Today
----------------------------------------------------------
Laura Cochrane of Bloomberg News reports that Centro Properties
Group halted trading in its shares as the company faces a
deadline today to extend as much as AU$5.6 billion in debt.
The Age reported two weeks ago that Centro has until April 30
to repay the first tranche of the AU$4.2 billion of outstanding
debt to its Australian bankers. Reports previously noted that
financiers are expected to confirm an extension to the end of
September.
The trading halt today also includes Centro Retail Group
securities, The Australian Associated Press relates. Centro
Retail Group is the company's listed real estate trust.
Ms. Cochrane relates that Centro Properties has been trying for
more than four months to sell assets and persuade investors and
lenders it should retain a collection of malls that stretches
from Perth, Western Australia to Yonkers, New York.
According to Bloomberg, Centro's lenders include Commonwealth
Bank of Australia, Australia & New Zealand Banking Group Ltd.,
National Australia Bank Ltd., JPMorgan Chase & Co., Royal Bank
of Scotland Group Plc and BNP Paribas.
Citing The Age, the Troubled Company Reporter-Asia Pacific
reported on April 18, 2008, that bankers of Centro Properties
Group are moving closer to extending the deadline for repayment
of debt by a further six months to avoid the appointment of an
administrator and consequent asset fire sales. A six-month
extension would be in line with the repayment deadline for its
US-based bankers and bondholders, The Age noted.
About Centro Properties
Centro Properties Group -- http://www.centro.com.au/-- is a
Melbourne, Australia-based company that comprises the operations
of Centro Property Trust and its entities, which are engaged in
property investment, property management, property development
and funds management.
The company operates in two business segments: property
ownership business and services business. The Company derives
income from retail property rentals of shopping center space to
retailers across Australasia and the United States. It also
derives income from its retail property investments in listed
and unlisted entities. Its services business activities include
incorporating funds management, property management and
development and leasing. During the fiscal year ended June 30,
2007, the Company acquired New Plan Excel Realty Trust, Heritage
Property Investment Trust and Galileo Funds Management, as well
as assumed full ownership of its United States management
operations.
* * *
The Troubled Company Reporter-Asia Pacific reported on Jan. 4,
2008, that Standard & Poor's Ratings Services lowered its issuer
credit, senior-unsecured debt and preferred stock ratings to
'CCC+' with negative implications reflecting the potential of
the group's assets to be sold in softening market conditions,
particularly in the U.S.
CHARTWELL ENTERPRISES: Administrators Appointed
-----------------------------------------------
ABC News reported last week that administrators have been
appointed to look into the collapse of Chartwell Enterprises, a
Geelong-based share trading company. According to ABC News, the
Australian Securities and Investments Commission is also
investigating Chartwell Enterprises, which owes about 100 staff
and investors millions of dollars. ABC News related that
Administrator Bruno Secatore from Cor Cordis Chartered
Accountants is looking for Chartwell's financial records.
Sasha Melnick is the accountant who blew the whistle on
Chartwell Enterprises. Ewin Hannan of The Australian reports
that Mr. Melnick revealed that Chartwell Enterprises "raked in
$20 million from investors, despite a director knowing the firm
was in trouble after a series of spectacular multi-million-
dollar share trading losses."
Mr. Hannan notes that it's the first time that Mr. Melnick spoke
publicly about the scandal. Mr. Melnick told Mr. Hannan how he
"flipped" when he learned that Chartwell hired a financial
astrologer to predict sharemarket trends based on when the
"stars were aligned". The company reportedly paid the
astrologer on a two-day-a-week $75,000 salary.
According to The Australian, Mr. Melnick believes AU$50 million
to AU$60 million in investors' funds had been lost as a result
of Chartwell's collapse.
Based in Geelong, Australia, Chartwell Enterprises was founded
by Ian Rau and Graeme Hoy. Mr. Hoy also owns a hospitality
company which has recently been placed in receivership.
CHC HELICOPTER: Shareholders Vote on First Reserve Merger
---------------------------------------------------------
CHC Helicopter Corporation held its special shareholder meeting
on April 29, 2008, in Richmond (Vancouver), British Columbia, to
consider a special resolution to approve an arrangement to be
acquired by an affiliate of First Reserve Corporation, under the
Canada Business Corporations Act.
As reported in the Troubled Company Reporter on Feb. 25, 2008,
CHC Helicopter Corporation entered into an agreement with First
Reserve Corp. Under the terms of the transaction, an affiliate
of the First Reserve fund will acquire all outstanding class A
subordinate voting shares and all of the outstanding class B
multiple voting shares of CHC for CN$32.68 per class A share and
class B share for an aggregate consideration of approximately
CN$1.5 billion.
After completion of the transaction CHC's class A shares and
class B shares will be de-listed and no longer traded publicly.
CHC's headquarters will remain in Vancouver, Canada.
The price of C$32.68 per Class A Subordinate Voting Share and
Class B Multiple Voting Share to be received under the
arrangement represents a premium of 45.3% and 41.0%, over the
average trading price of such shares on the TSX for the three-
month period ending on Feb. 21, 2008, the last trading day prior
to the public disclosure of the transaction.
Holders of Class A Subordinate Voting Shares, Class B Multiple
Voting Shares and Ordinary Shares of record as of the close of
business, Toronto time, on March 28, 2008, will be entitled to
receive notice of, and vote at, the meeting. T he management
information circular, which shareholders should receive in the
coming days, provides important information on the arrangement,
including voting procedures.
The company has filed its management information circular and
related proxy materials with the Canadian provincial securities
regulatory authorities and the U.S. Securities and Exchange
Commission in preparation for the special shareholder meeting.
The management information circular contains a unanimous
recommendation from CHC's board of directors to vote for the
special resolution approving the arrangement.
Completion of the arrangement is subject to a number of
conditions, some of which are beyond CHC's and the purchaser's
control; accordingly, the exact timing of implementation of the
arrangement is not currently known. CHC and the purchaser
expect the closing to occur in June 2008.
Merrill Lynch Canada Inc. and Scotia Capital are financial
advisors to CHC. Ogilvy Renault LLP and DLA Piper USA LLP are
legal counsel to CHC. Simpson Thacher & Bartlett LLP, Blake,
Cassels & Graydon LLP and Slaughter and May are legal counsel to
the First Reserve fund.
About CHC Helicopter Corporation
Headquartered in Richmond, British Columbia, in Canada, CHC
Helicopter Corporation (TSE:FLY.A)V7B - http://www.chc.ca/-- is
a commercial helicopter operator. The company, through its
subsidiaries, operates in over 30 countries, on all seven
continents and in most of the offshore oil and gas producing
regions of the world. The company's operating units are based
in the United Kingdom, Norway, the Netherlands, South Africa,
Australia and Canada. It provides helicopter transportation
services to the oil and gas industry for production and
exploration activities through its European and global
operations segments. It also provides helicopter transportation
services for emergency medical services and search and rescue
activities and ancillary services, such as flight training. The
company's Heli-One segment is a non-original equipment
manufacturer helicopter support company, providing repair and
overhaul services, aircraft leasing, integrated logistics
support, helicopter parts sales and distribution and other
related services.
* * *
As reported in the Troubled Company Reporter on Feb. 25, 2008,
Moody's Investors Service placed under review for possible
downgrade the Ba3 corporate family rating and probability of
default rating for CHC Helicopter Corporation. The review also
covered the B1 (LGD 5, 72%) rating on CHC's $400 million senior
subordinated notes. These actions followed the statement that a
fund managed by First Reserve Corporation has entered into an
agreement to acquire CHC.
CRAEPHIL PTY: Court Orders Winding Up of Company
------------------------------------------------
On March 14, 2008, the Federal Court of Australia ordered the
winding-up of Craephil Pty Limited and appointed
Frank Lo Pilato as Official Liquidator of the company.
The liquidator can be reached at:
Frank Lo Pilato
RSM Bird Cameron Partners Chartered Accountants
Level 1, 103-105 Northbourne Avenue
Canberra, Australia
Telephone: (02) 6247-5988
Facsimile: (02) 6262-8633
DORFER AND GLANZNIG: To Hold Final Meeting on May 12
----------------------------------------------------
The final meeting of Dorfer and Glanzing Pty Limited's members
will be held on May 12, 2008, at 2:00 p.m., at the offices
of Hardwicke Whigham & Driver Pty Ltd, Level 2 Hardwicke's
House, 6 Phipps Close, Deakin.
At the meeting, the company's liquidator will present his final
account and report about the company's liquidation.
The company's liquidator is:
Paul G. Driver
Hardwickes Chartered Accountants
6 Phipps Close, Deakin
Canberra, Australia
FARM ENTERPRISES: Placed Under Liquidation on March 14
------------------------------------------------------
On March 14, 2008, the Federal Court of Australia ordered the
winding-up of Farm Enterprises Pty Limited and appointed
Frank Lo Pilato as Official Liquidator of the company.
The liquidator can be reached at:
Frank Lo Pilato
RSM Bird Cameron Partners Chartered Accountants
Level 1, 103-105 Northbourne Avenue
Canberra, Australia
Telephone: (02) 6247-5988
Facsimile: (02) 6262- 8633
FORSTER CENTRE: Placed Under Liquidation on March 17
----------------------------------------------------
At a general meeting of The Forster Centre Pty Limited's
members held March 17, 2008, it was resolved that the company be
wound up voluntarily and that Ross Harrison of Harrison Main &
McArthur be appointed to act as liquidator of the company.
The liquidator can be reached at:
Ross Harrison
Harrison Main & McArthur
PO Box 143
Forster NSW 2428
Telephone: (02) 6554 7955
Facsimile: (02) 6555 4216
GRONK WEAR: Commences Liquidation Proceedings
---------------------------------------------
At a general meeting of Gronk Wear Pty Limited's members held on
March 13, 2008, it was resolved that the company be wound up
voluntarily.
The members appointed David Anthony Hurst and Andrew Hugh Jenner
Wily of Armstrong Wily, Chartered Accountants as liquidators.
The liquidators can be reached at:
David Anthony Hurst
Andrew Hugh Jenner Wily
Armstrong Wily Chartered Accountants
Level 5, 75 Castlereagh Street
Sydney NSW
HOMESTEAD BAKERIES: Placed Under Liquidation on March 17
--------------------------------------------------------
At a general meeting of Homestead Bakeries Pty Limited's
members held March 17, 2008, it was resolved that the company be
wound up voluntarily and that Ross Harrison of Harrison Main &
McArthur be appointed to act as liquidator of the company.
The liquidator can be reached at:
Ross Harrison
Harrison Main & McArthur
PO Box 143
Forster NSW 2428
Telephone: (02) 6554 7955
Facsimile: (02) 6555 4216
IZAMAR GROUP: Court Places Company Under Liquidation
----------------------------------------------------
On March 11, 2008, the Supreme Court of New South Wales
ordered the winding up of Izamar Group Pty Ltd and appointed
P. Ngan as liquidator of the company.
The liquidator can be reached at:
P. Ngan
Ngan & Co
Level 5, 49 Market Street, Sydney
New South Wales, Australia
KEPPEL HOLDINGS: Placed Under Liquidation on March 17
-----------------------------------------------------
At a general meeting of Keppel Holdings Pty Limited's
members held March 17, 2008, it was resolved that the company be
wound up voluntarily and that Ross Harrison of Harrison Main &
McArthur be appointed to act as liquidator of the company.
The liquidator can be reached at:
Ross Harrison
Harrison Main & McArthur
PO Box 143
Forster NSW 2428
Telephone: (02) 6554 7955
Facsimile: (02) 6555 4216
KINETIC CONCEPTS: Earns US$68 Million in First Quarter 2008
-----------------------------------------------------------
Kinetic Concepts, Inc. reported first quarter 2008 total revenue
of US$420.0 million, an increase of 14% from the first quarter
of 2007. Foreign currency exchange movements favorably impacted
total revenue for the first quarter of 2008 by 4% compared to
the corresponding period of the prior year.
Net earnings for the first quarter of 2008 were US$68.0 million,
up 27%, compared to US$53.6 million for the same period one year
ago. Net earnings per diluted share for the first quarter of
2008 increased 25% to US$0.94 compared to US$0.75 for the same
period in the prior year.
“During the first quarter, we made progress on a number of
initiatives we have planned for 2008,” said Catherine Burzik,
President and Chief Executive Officer of KCI. “We realigned our
domestic sales force, improving both focus and customer service
levels, submitted our application for regulatory approval of
V.A.C.(R) in Japan and completed due diligence related to a
major acquisition. On top of these development activities, we
delivered higher revenue, earnings and margins compared to the
prior year.”
Revenue Recap First Quarter 2008
During 2007, we took steps to structure KCI as a global company,
which included the alignment of key leadership positions for
specific geographic regions. Beginning with the first quarter
2008, we have reported financial results consistent with this
new structure. The geographic reporting structure is made up of
(i) North America, which consists of the United States, Canada
and Puerto Rico and (ii) Europe, the Middle East and Africa and
the Asia Pacific region.
Total revenue for North America was US$309.5 million for the
first quarter of 2008, an increase of US$25.8 million, or 9%,
from the prior-year period due primarily to increased rental and
sales volumes for V.A.C. wound healing devices and related
disposables. North American V.A.C. revenue of US$250.2 million
for the first quarter was 10% higher than the same period one
year ago due to continued market penetration. Rental unit
growth was reported across all care settings. North American
revenue from Therapeutic Support Systems was US$59.2 million for
the first three months of 2008, a 4% increase from the prior-
year period, due to higher rental unit volume in the acute care
setting, partially offset by lower TSS sales in the period.
Total revenue outside of North America, which consists of EMEA
and APAC, was US$110.6 million for the first quarter of 2008, an
increase of 30%, compared to the prior-year period due primarily
to an increase in V.A.C. revenue. EMEA/APAC V.A.C. revenue for
the first three months of 2008 was US$82.7 million, an increase
of US$21.1 million, or 34%, from the prior-year period.
EMEA/APAC TSS revenue increased 18% from the prior-year period
to US$27.8 million for the first quarter resulting primarily
from an increase in rental volume and favorable foreign currency
exchange movements. Foreign currency exchange movements
favorably impacted total EMEA/APAC revenue by 14% compared to
the prior-year period. Foreign currency exchange movements
favorably impacted EMEA/APAC V.A.C. and TSS revenue by 14% and
13%, respectively, in the 2008 first quarter.
Worldwide V.A.C. revenue was US$333.0 million for the first
quarter of 2008, an increase of 15% from the prior-year period.
Foreign currency exchange movements favorably impacted worldwide
V.A.C. revenue by less than 4% compared to the first quarter of
the prior year. The growth in V.A.C. revenue stemmed from
increased market penetration, resulting in higher rental and
sales unit volumes.
Worldwide TSS revenue was US$87.1 million for the first quarter
of 2008, an increase of US$6.8 million, or 8%, due primarily to
higher rental unit volume worldwide and foreign currency
exchange movements. Foreign currency exchange movements
favorably impacted worldwide TSS revenue by 5% compared to the
same period one year ago.
Profit Margins
Gross profit for the first quarter of 2008 was US$209.0 million,
an increase of 22% from the prior-year period. Gross profit
margin was 49.8% for the first quarter of 2008, an increase of
approximately 335 basis points from the same period one year
ago. As a percent of total revenue, lower field service
expenses, product depreciation, cost of sales and marketing
costs made up the majority of the increase in gross margin.
Selling, general and administrative expenses increased US$17.1
million, or 22%, year-to-year. The SG&A increase was due
primarily to certain costs associated with the U.S. sales force
realignment, additional costs associated with the transition of
V.A.C. unit production to our Ireland manufacturing facility and
higher share-based compensation expenses. Research and
development spending increased 50% from the prior-year period to
US$14.7 million for the quarter. Total research and development
expenses represented 3.5% of revenue for the first quarter of
2008.
Balance Sheet
Total long-term debt outstanding at March 31, 2008 was US$68.0
million. Total cash at quarter-end was US$305.2 million, an
increase of US$39.2 million from year-end 2007.
Notes Offering
On April 21, 2008, the company closed its offering of US$600
million aggregate principal amount of 3.25% convertible senior
notes due 2015. The company has also granted an option to the
initial purchasers of the notes to purchase up to an additional
US$90 million aggregate principal amount of notes to cover over-
allotments. The over-allotment option is exercisable during the
13 day period beginning on the closing date. The coupon on the
notes will be 3.25% per year on the principal amount. Interest
will accrue from April 21, 2008, and will be payable semi-
annually in arrears on April 15 and October 15 of each year,
beginning Oct. 15, 2008.
The notes will mature on April 15, 2015, unless previously
converted or repurchased in accordance with their terms. The
notes are not redeemable by us prior to the maturity date. Upon
conversion, holders will receive cash up to the aggregate
principal amount of the notes being converted and shares of KCI
common stock in respect of the remainder, if any, of KCI’s
conversion obligation in excess of the aggregate principal
amount of the notes being converted. The initial conversion
rate for the notes is based on an initial conversion price of
approximately US$51.34 per share of common stock and represents
a 27.5% conversion premium over the last reported sale price of
KCI’s common stock on April 15, 2008 (the day of pricing of the
notes), which was US$40.27 per share. In connection with the
offering, we entered into convertible note hedge and warrant
transactions with financial institutions that are affiliates of
two of the offering’s initial purchasers to increase the
effective conversion price of the notes to approximately
US$60.41, which is approximately 50% higher than the closing
price of the Company’s common stock on April 15, 2008. The
company intends to settle the principal amount of these notes in
cash. The net proceeds of this offering will be used, in
combination with other financing arrangements and existing cash
on hand, primarily to fund our acquisition of LifeCell
Corporation.
Income Tax Rate
The effective income tax rate for the first quarter of 2008 was
33.5%, which was comparable to 33.2% for the same period in
2007.
Outlook
This guidance is based on current information and expectations
as of April 22, 2008:
KCI is reaffirming its projections for 2008 total revenue of
US$1.77 US$1.82 billion based on continued demand for its
V.A.C. negative pressure wound therapy devices and related
supplies. The company is also reaffirming its projections for
net earnings per diluted share for 2008 of US$3.85 US$3.95 per
diluted share, based upon a weighted average diluted share
estimate of 72.0 73.0 million shares. This outlook excludes
the impact associated with our anticipated acquisition of
LifeCell.
About KCI
KCI has an infrastructure across all health care settings,
including acute care hospitals, extended care facilities and
patients' homes in the United States, Canada, Australia and
most major European countries.
KINETIC CONCEPTS: Moody's Rates Proposed US$1.3BB Loan at Ba1
-------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to Kinetic
Concepts, Inc's proposed US$1.3 billion senior secured first
lien credit facility, consisting of a US$1 billion term loan and
a US$300 million revolver. The Corporate Family Rating remains
unchanged at Ba2 and the ratings outlook is stable.
In addition, in accordance with Moody's Loss Given Default
methodology the probability of default rating was revised to Ba2
from Ba3 due to the introduction of unsecured debt into the
capital structure, which led to changes in assumptions for asset
recovery and a lower implied likelihood of default. Moody's
will withdraw the ratings on KCI's existing senior secured
revolving credit facility (rated Ba2) at the close of the
transaction.
The proceeds of the proposed credit facility will be used to
finance the acquisition of LifeCell Corporation and repay the
amounts outstanding under KCI's existing senior secured credit
facility, which will be terminated at the close of the
transaction. The new credit facility is rated one notch higher
than the Corporate Family Rating, benefiting from the first loss
absorption that will be provided by the recently issued
US$600 million unsecured 3.25% convertible notes.
Assigned:
-- Proposed US$300 million Senior Secured Revolving Credit
Facility due 2013, Ba1, LGD3, 32%
-- Proposed US$1,000 million Senior Secured Term Loan A due
2013, Ba1, LGD3, 32%
Revised:
-- Probability of Default Rating, to Ba2 from Ba3
To be withdrawn:
-- Existing US$500 million Senior Secured Revolving Credit
Facility due 2012, Ba2, LGD3, 34%
The ratings outlook is stable.
Kinetic Concepts, Inc., headquartered in San Antonio, Texas, is
a global medical technology company with leadership positions in
advanced wound care and therapeutic support systems. The
company's advanced would care systems incorporate proprietary
Vacuum Assisted Closure Therapy technology. LifeCell is a
leading provider of innovative biological products for soft
tissue repair. Moody's estimates that the combined company
would have reported pro forma revenues of approximately US$1.8
billion for the twelve months ended Dec. 31, 2007.
KCI has an infrastructure across all health care settings,
including acute care hospitals, extended care facilities and
patients' homes in the United States, Canada, Australia and
most major European countries.
KINETIC CONCEPTS: 2008 Shareholders' Meeting Scheduled on May 20
----------------------------------------------------------------
Ronald W. Dollens, Chairman of Kinetic Concepts, Inc.'s Board of
Directors, said in a regulatory filing that the 2008 annual
meeting of the company's shareholders will be held on May 20,
2008 at 8:30 a.m. CDT.
The meeting will be the Westin Riverwalk Hotel Hidalgo Room,
420 West Market Street in San Antonio, Texas.
At the meeting, shareholders will be asked to:
-- elect three Class A directors for a three-year term;
-- approve a new 2008 Omnibus Stock Incentive Plan;
-- ratify the selection of Ernst & Young LLP as the
company's independent auditors for our fiscal year
ending Dec. 31, 2008.
-- transact such other business as may properly come
before the meeting or any adjournment or postponement
thereof.
Only the company's shareholders of record at the close of
business on April 9, 2008 are entitled to notice of and to vote
at the annual meeting and at any adjournment or postponement
thereof.
About KCI
KCI has an infrastructure across all health care settings,
including acute care hospitals, extended care facilities and
patients' homes in the United States, Canada, Australia and
most major European countries.
REED ENTERPRISES: Placed Under Liquidation on March 17
------------------------------------------------------
At a general meeting of Reed Enterprises Pty Ltd 's members
held March 17, 2008, it was resolved that the company be wound
up voluntarily and that Ross Harrison of Harrison Main &
McArthur be appointed to act as liquidator of the company.
The liquidator can be reached at:
Ross Harrison
Harrison Main & McArthur
PO Box 143
Forster NSW 2428
Telephone: (02) 6554 7955
Facsimile: (02) 6555 4216
TRICOM EQUITIES: Faces Heavy Debts on Margin Lending Probe
----------------------------------------------------------
Brokerage firm Tricom Equities Ltd. is staggering under similar
debt burdens which forced Opes Prime Stockbroking Ltd. and Lift
Capital Ltd. into receivership, Laura Santini of The Wall Street
Journal reports.
In February 2008, the Australian Securities Exchange conducted
an investigation about securities and margin lending at Tricom,
the company said on its Web site.
Commenting on the probe, Tricom Managing Director Lance
Rosenberg said in February that the company is "working in 100%
partnership with the ASX to ensure restoration of confidence in
Tricom."
As part of ASX’s condition with regards to the probe, Tricom
appointed Pricewaterhouse Coopers to conduct an independent
review of Tricom’s operating and systems controls.
In addition, Tricom reduced its securities lending book from
approximately AU$2.4 billion in June 2007 to AU$340 million at
close of business on March 17 , 2008.
According to WSJ, there is a loophole in Australia's regulations
that allows brokers to put up customers' shares as loan
collateral, without notifying the customers.
Tricom termed the practice as securities lending book in which
Tricom borrows from counterparties on behalf of clients to fund
loans. The borrowing is secured by shares, and remains covered
by a significant margin. As the market has corrected, Tricom
said lenders have become more conservative about loan to value
ratios, and values have simultaneously dropped. This prompted
Tricom to commence an orderly sell down in June 2007.
Merger Deal
In a media release dated February 19, 2008, Tricom disclosed
that Bell Financial Group agreed to acquire 100% of Tricom
Group, subject to a number of conditions, including satisfactory
completion of due diligence prior to March 7, 2008.
However, in March 2008, Tricom confirmed that discussions
regarding a potential acquisition by Bell Financial Group have
ceased after the March 7, 2008 exclusivity period ended.
About Tricom Equities Limited
Tricom Equities Limited -- http://www.tricom.com.au/-- is an
Australian owned global Investment, Advisory and Trading House.
Formed in Sydney, Australia in 1994 as a specialist futures
broking firm, Tricom now employs over 230 people in 14 offices.
Internationally, the firm is located in New Zealand, China, Hong
Kong and Switzerland.
* Moody's Says Australian Building Sector Outlook is Negative
-------------------------------------------------------------
Moody's Investors Service says the credit outlook for the
Australian building society sector is negative due to pressures
from the global financial crisis.
"The negative outlook applies principally to those building
societies whose traditional business models had a structural
reliance on wholesale funding, and securitisation in
particular," says Marina Ip, a Moody's Assistant Vice
President/Analyst.
"We expect consolidation in the industry to pick up, driven by
rising funding costs and the impact of a slowing economy on the
mortgage market. These factors will add to longer-term pressures
caused by rising compliance and IT costs," Ip observed.
Ip was speaking on the release of her new Industry Outlook on
the Australian Building Societies, which examines a broad range
of themes, including the impact of the sub-prime crisis on the
sector's funding, competition with the banks, consolidation, and
credit and profit profiles.
The closure of the RMBS market will force some of Australia's
building societies to slow loan growth, affecting profit growth.
Securitisation warehouse funding has provided an important
liquidity buffer for the Australian building societies, but as
providers withdraw from the market, this funding source is
becoming scarcer and more expensive.
For the traditional securitisers, new lending will have to be
funded with deposits or debt, which -- even if available -- is
unlikely to allow the same asset/liability matching provided by
securitisation. Furthermore, they will not benefit from the
capital relief afforded by securitisation -- which could
eventually impact capital levels.
On a positive note, "some societies are implementing initiatives
to enhance their liquidity profiles," says Ip, adding, "For
example, they are making their CDs repo-eligible with the
Reserve Bank of Australia (RBA) through the establishment of
exchange settlement accounts."
"Despite the sector's negative outlook, on an absolute basis,
its problem loan losses are likely to remain contained because
delinquencies are rising off a low base, while its lending
standards are relatively conservative, and higher loan-to-value
mortgages are insured," says Ip. "In general, building societies
also have very sound capital levels relative to the low risk in
their loan books."
The Moody's report further notes a more competitive retail
banking environment -- as the major banks maintain their
presence in the traditional markets of the building societies --
and this situation has squeezed margins. However, the societies
still command loyal customer bases, given their relatively low-
fee product structures.
Australian building societies do not have direct exposures to US
sub-prime mortgages, CDOs, SIVs, or leveraged loans, nor are
they engaged in high-risk mortgage lending, the report says. The
sector's loan portfolio consists of prime domestic mortgages
which have historically experienced very low loan loss rates.
==================================================
C H I N A & H O N G K O N G & T A I W A N
==================================================
AMERICAN AXLE: Posts US$27 Million Net Loss in 1Q 2008
------------------------------------------------------
American Axle & Manufacturing Holdings, Inc. reported financial
results for the first quarter of 2008.
AAM's results in the first quarter of 2008 were a net loss of
US$27.0 million or US$0.52 per share. This compares to net
earnings of US$15.7 million, or US$0.30 per share, in the first
quarter of 2007.
UAW Strike
Upon expiration of the four-year master labor agreement between
AAM and the UAW at 11:59 p.m. on February 25, 2008, the
International UAW called a strike against AAM. The expiring
master labor agreement covered approximately 3,650 associates at
AAM's original U.S. locations in Michigan and New York. AAM
estimates the reduction in sales and operating income resulting
from the International UAW strike to be US$132.6 million and
US$45.8 million (US$0.56 per share), respectively.
Special Charges
In the first quarter of 2008, AAM incurred US$3.5 million, or
US$0.04 per share, of special charges and non-recurring
operating costs, primarily related to the redeployment of
machinery and equipment. In the first quarter of 2007, AAM
recorded special charges of US$2.9 million, or US$0.04 per
share, primarily related to attrition program activity.
"AAM's first quarter 2008 results were severely impacted by the
strike called by the International UAW at AAM's original U.S.
locations on February 25, 2008," said AAM Co-Founder, Chairman
of the Board & Chief Executive Officer Richard E. Dauch. "AAM
must have a U.S. market cost competitive labor agreement for the
original U.S. locations with operating flexibility. This is
needed to compete for new business and match the operational
flexibility and efficiency of our competitors. While it would
be tragic to dismantle AAM's original U.S. manufacturing base,
AAM will be forced to consider additional restructuring and
capacity rationalization actions if the International UAW
refuses to accept the structural and permanent changes needed to
achieve market cost competitiveness at these facilities."
Net sales in the first quarter of 2008 were US$587.6 million as
compared to US$802.2 million in the first quarter of 2007. AAM
estimates that approximately US$132.6 million of this decrease
was attributable to the International UAW strike. Customer
production volumes for the full-size truck and SUV programs AAM
currently supports for GM and Chrysler were down approximately
31% in the first quarter of 2008 as compared to the prior year.
AAM estimates that customer production volumes for its mid-sized
truck and SUV programs were down approximately 43% in the first
quarter of 2008 on a year-over-year basis. Non-GM sales
represented 26% of total sales in the first quarter of 2008.
AAM's content-per-vehicle is measured by the dollar value of its
product sales supporting GM's North American truck and SUV
platforms and Chrysler's heavy duty Dodge Ram pickup trucks. For
the first quarter 2008, AAM's content-per-vehicle increased
approximately 6% to US$1,326 as compared to US$1,252 in the
first quarter of 2007.
Gross margin for the first quarter of 2008 was 2.2% as compared
to 10.6% in first quarter 2007. Operating loss was US$36.7
million or a negative 6.2% of sales in the first quarter of 2008
as compared to operating income of US$36.4 million or 4.5% of
sales in the first quarter of 2007.
AAM's SG&A spending for the first quarter of 2008 was US$49.4
million as compared to US$48.9 million in the first quarter of
2007. AAM's R&D spending for the first quarter of 2008 was
approximately US$20.2 million as compared to US$20.1 million in
the first quarter of 2007.
Net cash provided by operating activities in the first quarter
of 2008 was US$8.2 million. Capital spending for the first
quarter of 2008 was US$33.3 million as compared to US$42.5
million in the first quarter of 2007. Reflecting the impact of
this activity and dividend payments of US$8.0 million, AAM's
free cash flow use of US$33.1 million in the first quarter of
2008 represents an improvement of US$7.4 million, or 18%, as
compared to the first quarter of 2007.
About America Axle
Headquartered in Detroit, Michigan, American Axle &
Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/--
and its wholly owned subsidiary, American Axle & Manufacturing,
Inc., manufactures, engineers, designs and validates driveline
and drivetrain systems and related components and modules,
chassis systems and metal-formed products for light trucks,
sport utility vehicles and passenger cars. In addition to
locations in the United States (in Michigan, New York and Ohio),
the company also subsidiaries in China, Japan, Korea, India,
Poland, Luxembourg and Mexico.
* * *
On April 3, 2008, Moody's Investors Service placed the ratings
of American Axle & Manufacturing Holdings, Inc., Corporate
Family -- Ba3, under review for downgrade. In a related action,
American Axle's Speculative Grade Liquidity Rating was lowered
to SGL-2 from SGL-1.
ANDERSON & LEMBKE: Commences Liquidation Proceedings
----------------------------------------------------
Anderson & Lembke Asia Limited's members agreed on April 7, 2008
to voluntarily liquidate the company's business. The company
has appointed Bruno Arboit and Simon Richard Blade to facilitate
the sale of its assets.
The liquidators can be reached at:
Bruno Arboit
Simon Richard Blade
China Merchants Tower, 12th Floor
Shun Tak Centre, 168-200 Connaught Road
Central, Hong Kong
BIJOU TASZ: Members' Final Meeting Set for May 19
-------------------------------------------------
Members of Bijou Tasz Films (International) Limited will have
their final general meeting on May 19, 2008, at Bank Centre, 9th
Floor, Room 902, 636 Nathan Road, Kowloon, in Hong Kong to hear
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Poon Ching Wah
Bank Centre, 9th Floor
Room 902, 636 Nathan Road
Kowloon, Hong Kong
BOE TECHNOLOGY: To Invest CNY3.1 Billion on LCD Production
----------------------------------------------------------
BOE Technology Group Co. Limited may invest CNY3.1 billion
(US$443.61 million) in the fourth and a half generation LCD
production line, which the company has started in Chengdu,
capital city of Southwest China's Sichuan Province, Business
Week reports.
According to the report, the production line will produce small
and mid-size display panel screens and modules for notebook PCs,
panel PCs, digital photo frames, vehicular displays, mobile
displays and other digital products.
About BOE Technology
Based in Beijing, BOE Technology Group Co., Ltd. (BOE) is a
manufacturer of display devices and digital products. Based in
Beijing, the People's Republic of China, the Company operates
seven key divisions: Thin-Film Transistor-Liquid Crystal Display
(TFT-LCD); Monitor & Panel Television (TV), offering cathode ray
tube (CRT) monitors, TFT-LCD monitors, TFT-LCD TVs and plasma
display panel (PDP) TVs; Mobile Display System, providing super
twisted nematic-LCD (STN-LCD) and organic light-emitting display
(OLED); Special Application Display, supplying vacuum
fluorescent display (VFD) and light-emitting display (LED); CRT,
producing CRTs together with Toshiba and Panasonic; Precision
Electronic Component & Material, and Digital Display Product &
Display Application System.
As of April 29, 2008, the company currently holds Xinhua Far
East China Ratings' CC issuer credit rating.
BLOUNT INT'L: Dec. 31 Balance Sheet Upside-Down by $54 Million
--------------------------------------------------------------
Blount International Inc.'s balance sheet at Dec. 31, 2007,
showed total assets of US$411.949 million and total liabilities
of US$466.095 million, resulting to a total shareholders'
deficit of US$54.146 million.
The company reported results for the fourth quarter and year
ended Dec. 31, 2007.
Net income for fourth quarter was US$17.566 million compared
with net income of US$9.038 million for the same period in the
previous year.
Fourth quarter net income from continuing operations was
US$8.9 million compared to $8.8 million in the fourth quarter of
2006. Included in this year's fourth quarter is the recognition
of a loss on the sale of surplus property of US$0.6 million and
US$0.4 million in expense for the early extinguishment of debt.
The company reported net income of US$42.857 million for full
year 2007 compared with net income of US$42.546 million in 2006.
"This past year, we continued to refine our business focus by
exiting non-core businesses," James S. Osterman, chairman and
chief executive officer, stated. "The sale of our Forestry
Equipment Division this past November allowed us to reduce debt
further and remove much of the company's exposure to the
cyclical North American forestry industry.
"Our core business, the Outdoor Products segment, finished with
solid revenue growth in the fourth quarter and a good order
backlog," Mr. Osterman said. "As we progress through 2008, we
expect that our international reach and new product development
will allow us to weather a continuation of weak market
conditions in the North American region."
Liquidity and Capital Resources
Total debt was US$297 million at Dec. 31, 2007 and
US$350.9 million at Dec. 31, 2006, representing a reduction of
$53.9 million during 2007. Outstanding debt as of Dec. 31, 2007
consisted of a term loan balance of US$122.0 million and 8-7/8%
senior subordinated notes of US$175.0 million. The company has
no principal outstanding on its revolving credit facility as of
Dec. 31, 2007.
Cash and cash equivalents at Dec. 31, 2007, were US$57.6 million
compared to US$27.6 million at Dec. 31, 2006.
About Blount International
Blount International Inc. (NYSE: BLT) -- http://www.blount.com/
-- is a diversified international company operating in two
principal business segments: Outdoor Products and Industrial and
Power Equipment. The company's Outdoor Products segment
provides chain, bars and sprockets to the chainsaw industry,
accessories to the lawn care industry and concrete cutting saws.
Blount manufactures its products in the United States, Canada,
China, and Brazil, and sells them in more than 100 countries.
BUCYRUS INT'L: Earns US$41.1 Million in Quarter Ended March 31
---------------------------------------------------------------
Bucyrus International, Inc. disclosed its summary unaudited
financial results for the quarter ended March 31, 2008.
Operating Results
The overall increase in surface mining sales was attributable to
the strong global demand for Bucyrus' products and services,
which continues to be driven by high international commodity
prices and strong markets for commodities mined by Bucyrus
machines. Surface mining original equipment sales for the first
quarter of 2008 increased in all three product lines compared to
the first quarter of 2007. Surface mining aftermarket parts and
service sales for the first quarter of 2008 increased in nearly
all worldwide markets compared to the first quarter of 2007.
The expansion of Bucyrus' South Milwaukee, Wisconsin surface
mining facilities was substantially complete as of March 31,
2008, which will allow for annual shovel production capacity of
24 machines and almost doubled manufactured parts capacity from
2006 levels. Underground mining sales for the first quarter of
2008 decreased from the third and fourth quarters of 2007
primarily due to the timing of new orders in 2007.
Gross profit for the first quarter of 2008 was US$141.6 million,
or 27.4% of sales, compared to US$52.1 million, or 27.4% of
sales, for the first quarter of 2007. Gross profit for the
first quarter of 2008 was reduced by US$8.7 million of
amortization of purchase accounting adjustments as a result of
the acquisition of DBT in 2007, which had the effect of reducing
gross margin for the first quarter of 2008 by 1.7 percentage
points. The increase in gross profit was primarily due to the
acquisition of DBT and increased surface mining sales. For the
first quarter of 2008, gross margins on surface mining original
equipment and aftermarket parts and services were improved from
the first quarter of 2007; however, overall gross margin was
negatively impacted by the sales mix of lower margin original
equipment and higher margin aftermarket parts and services.
Gross margin on underground mining equipment for the first
quarter of 2008 was improved from the last two quarters of 2007
primarily due to 2008 sales consisting of a larger percentage of
higher margin aftermarket parts and services.
Selling, general and administrative expenses for the first
quarter of 2008 were US$59.5 million, or 11.5% of sales,
compared to US$21.1 million, or 11.1% of sales, for the first
quarter of 2007. This increase was primarily due to the
acquisition of DBT.
The increase in operating earnings for the first quarter of 2008
was primarily due to the acquisition of DBT and increased gross
profit resulting from increased surface mining sales volume.
Operating earnings for underground mining operations were
reduced by purchase accounting adjustments related to the
acquisition of DBT of US$14.3 million for the first quarter of
2008.
Net interest expense for the first quarter of 2008 was US$5.9
million compared to US$1.2 million for the first quarter of
2007. The increase in net interest expense in 2008 was due to
increased debt levels related to the financing of the
acquisition of DBT.
Net earnings for the first quarter of 2008 were US$41.1 million,
or US$1.11 per share, compared to US$17.9 million, or US$0.57
per share, for the first quarter of 2007.
Capital expenditures the first quarter of 2008 were US$21.2
million, which included US$7.5 million related to Bucyrus'
expansion of its South Milwaukee facilities. At Bucyrus' Annual
Meeting of Stockholders held last week, Chief Executive Officer
Tim Sullivan reaffirmed that the Board of Directors had
previously approved an additional US$45 million for the
completion of renovations at Bucyrus' South Milwaukee, Wisconsin
facility. Bucyrus' capital expenditures for 2008 are expected to
be between US$90 million and US$100 million, including this
expenditure.
Backlog as of March 31, 2008 and December 31, 2007, as well as
the portion of backlog which is expected to be recognized within
12 months of these dates, was:
March 31, December 31,
2008 2007 % Change
----------- ------------- ---------
(Dollars in thousands)
Surface mining:
Total US$1,136,222 US$804,781 41.2%
Next 12 months US$741,557 US$579,448 28.0%
Underground mining:
Total US$881,042 US$636,473 38.4%
Next 12 months US$744,013 US$551,923 34.8%
Total:
Total US$2,017,264 US$1,441,254 40.0%
Next 12 months US$1,485,570 US$1,131,371 31.3%
A portion of the surface mining backlog as of March 31, 2008 and
December 31, 2007 was related to multi-year contracts that will
generate revenue in future years.
New orders related to surface mining operations for the first
quarter of 2008 were US$260.8 million and US$354.7 million for
original equipment and aftermarket parts and service sales,
respectively. Included in surface mining aftermarket parts and
service new orders was US$209.8 million related to multi-year
contracts that will generate revenue in future years. New
orders related to underground mining operations for the first
quarter of 2008 were US$353.1 million and US$124.4 million for
original equipment and aftermarket parts and service sales,
respectively.
About Bucyrus International
Headquartered in South Milwaukee, Wisconsin, Bucyrus
International Inc. (Nasdaq: BUCY) -- http://www.bucyrus.com/--
is a global manufacturer of electric mining shovels, walking
draglines and rotary blasthole drills and provides aftermarket
replacement parts and services for these machines. In 2006, it
had sales of USUS$738 million. The company has operations in
Brazil, Chile, China, Poland, the United Kingdom, Australia,
India, Germany and Peru, among others.
* * *
Moody's Investor Service placed the company's long-term
corporate family rating at 'Ba3' in April 2007. The rating
still holds to date with a stable outlook.
BUCYRUS INT'L: Inks Preliminary JV Agreement With Huainan
---------------------------------------------------------
Bucyrus International, Inc. last week entered into a preliminary
framework agreement with Huainan Mining Industry (Group) Co.,
Ltd. to establish the basis for the potential creation of a
joint venture in the Huainan mining area of the Anhui Province
in the People’s Republic of China.
The preliminary agreement contemplates Bucyrus owning a
controlling interest in a joint venture that would involve the
building of a new state of the art manufacturing facility in the
Huainan mining area of China that would initially manufacture
belt systems and armored face conveyors for resale on a
preferential basis to Huainan Mining, as well as to other third
parties in China and elsewhere. It is possible that the joint
venture could manufacture and sell additional underground mining
equipment as well. Both Bucyrus and Huainan Mining would
contribute an undisclosed amount of cash, as well as other
assets and personnel, to the joint venture. The parties believe
that initial equipment manufacturing and sales by the joint
venture could begin within approximately nine months of final
completion of the proposed joint venture.
The preliminary agreement is subject to additional due
diligence, final legal documentation, approval by the boards of
directors of both Bucyrus and Huainan, Chinese governmental and
regulatory approvals and various other customary consents,
approvals and closing conditions and is anticipated to be
completed later this year. Bucyrus does not intend to update
the status of this process unless and until either a final joint
venture agreement is completed, as to which there can be no
assurance, or negotiations are definitely terminated.
Bucyrus’ President and Chief Executive Officer Tim Sullivan
stated, “The joint venture which we hope will result from this
preliminary framework agreement will benefit both Bucyrus and
Huainan Mining. The first step in a resulting joint venture will
extend our market coverage and provide us with a low cost
manufacturing base in China. Huainan Mining will benefit from
the higher technology of our products, and the region will gain
through the development of a high technology manufacturing base
in Anhui Province. There is also the future potential for
exports using our international sales network.” A business plan,
to be developed by both parties, will include expansion phases
linking additional future investment to direct successes in the
targeted markets. “China is a large and very complex market,”
said Sullivan. “Our underlying concept is to partner with
strong industry players, such as Huainan Mining, who have market
access, a manufacturing base and a service network through which
we can rapidly extend our footprint in China. We recognize the
value of localized relationships and wish to maintain and expand
those links.”
“With Huainan Mining’s coal production at 42 million tons in
2007, there is an already existing base market for the products
that will result from a joint venture between us and Huainan
Mining,” said Sullivan. “We have built a special relationship
with Huainan Mining where our engineers have an open forum to
look at mining issues and develop common solutions. This moves
us away from a buyer versus seller, “western style” relationship
that is typical in China to one that allows us to apply our
technology to the benefit of both parties.”
In addition to the announcement regarding the Huainan framework
agreement, Mr Sullivan also emphasized, “This agreement is a
first step. We are currently reviewing other, additional
options that may provide us with an opportunity to achieve a
market leading position in China with numerous product lines.”
About Huainan
Huainan Mining (Group) Co., Ltd. is a state-owned mining group
company in China with its primary business being coal mining and
power generation. Its coal output in 2007 was 42 million tons.
The Huainan mining area is one of the largest coal fields in the
southeast area of China with coal reserves of approximately 21.4
billion tons. The Huainan mining area has been listed as one of
China’s top 13 large coal production bases and one of the top 6
coal-electricity bases.
About Bucyrus International
Headquartered in South Milwaukee, Wisconsin, Bucyrus
International Inc. (Nasdaq: BUCY) -- http://www.bucyrus.com/--
is a global manufacturer of electric mining shovels, walking
draglines and rotary blasthole drills and provides aftermarket
replacement parts and services for these machines. In 2006, it
had sales of USUS$738 million. The company has operations in
Brazil, Chile, China, Poland, the United Kingdom, Australia,
India, Germany and Peru, among others.
* * *
Moody's Investor Service placed the company's long-term
corporate family rating at 'Ba3' in April 2007. The rating
still holds to date with a stable outlook.
CHINA EASTERN: Seeks Gov't Okay to Resume Suspended Flights
-----------------------------------------------------------
China Eastern Airlines Corporation Limited will ask the Chinese
government's permission to resume its flights at suspended
routes, Shanghai Daily reports, citing Board Secretary Luo
Zhuping.
As reported in the Troubled Company Reporter-Asia Pacific on
April 29, 2008, the Southwest Management Bureau of the Civil
Aviation Administration of China (CAAC), as punishment of the
flight incident, has suspended flights between Kunming and
Xishuangbanna, and to Dali. The two routes are to be suspended
from May 4.
Some pilots of China Eastern Airlines' flights refused to land
at their destinations and instead returned to their departure
point on March 31. The pilots were reportedly seeking higher
wages and freedom to work for another airline. About 1,000
passengers were stranded at Kunming Airport in the southern
China. A total of 21 flights from southeastern Yunnan province
were affected. Some pilots and the general manager of China
Eastern's Yunnan unit were suspended.
China Eastern was also fined CNY1.5 million (US$215,000) for the
pilots' strike.
All the suspended flights of China Eastern will be run by Air
China, Shenzhen Airlines, Lucky Air and West Air, of which Lucky
Air will be the biggest beneficiary.
Edward Wong, an analyst at Quam Limited, told the Daily that
it's going to be difficult for the airline to solve the row with
their pilots in the near future. "The number of pilots being
added can't catch up with the expansion of China's aviation
industry," he was quoted by the Daily as saying.
Meanwhile, Bloomberg News relates that the airline said it may
lose CNY405 million (US$58 million) of sales this year due to
the suspension of flights.
According to Reuters, the suspended flights generated CNY660
million in revenue for the carrier in 2007, accounting for 1.52%
of its overall sales for the year, Reuters notes.
About China Eastern Airlines
Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- principal
activity is operation of domestic and international commercial
air transportation. The Group also is involved in the common
aircraft industry. Other activities include general aviation,
air catering, advertisement, import and export, equipment
manufacturing, real estate, hotel business, finance and
training. As of December 31, 2006, it operated a fleet of
205 aircraft, including 182 jet passenger aircraft and 11 jet
freighters. The company operated a total of 423 routes
serving a total of 136 foreign and domestic cities. Its
operation centering from Shanghai to the whole People's
Republic of China and linking to Asia, Europe, America and
Australia.
* * *
On Feb. 27, 2008, Fitch Ratings affirmed China Eastern
Airlines Corp. Ltd.'s "B+" Long Term Issuer Default Rating
and "B+" Local Currency Long Term Issuer Default Rating
with a stable outlook.
HENTRA INTERNATIONAL: Commences Liquidation Proceedings
-------------------------------------------------------
Hentra International Limited's members agreed on April 11, 2008
to voluntarily liquidate the company's business. The company
has appointed Cheung Fong Ming to facilitate the sale of its
assets.
The liquidator can be reached at:
Cheung Fong Ming
Two Finance Centre, 72-76th Floor
8 Finance Street,
Hong Kong
JINAN IRON & STEEL: Paying CNY6 Per 10 Shares Dividend Today
------------------------------------------------------------
Jinan Iron & Steel Co. Limited will pay a dividend of
CNY6(before tax) today, April 30, 2008, for every 10 shares held
by shareholders of record as of the close of business on
April 23, 2008, Reuters reports.
Headquartered in Jinan, Shandong Province, China, Jinan Iron &
Steel Co., Ltd is principally engaged in the manufacture and
sale of iron and steel products. The company mainly offers
medium to heavy steel plates and deformed steel bars.
As of April 29, 2008, the company holds Xinhua Far East China
Ratings' BB+ issuer credit rating.
JOSEPH CHAN WING: Commences Liquidation Proceedings
---------------------------------------------------
Joseph Chan Wing Chui International Limited's members agreed on
April 3, 2008 to voluntarily liquidate the company's business.
The company has appointed Annie Wong to facilitate the sale of
its assets.
The liquidator can be reached at:
Annie Wong
Block 27, 25A
Baguio Villa
Hong Kong
LUDGATE ASIA: Commences Liquidation Proceedings
-----------------------------------------------
Ludgate Asia Limited's members agreed on April 7, 2008 to
voluntarily liquidate the company's business. The company has
appointed Bruno Arboit and Simon Richard Blade to facilitate the
sale of its assets.
The liquidators can be reached at:
Bruno Arboit
Simon Richard Blade
China Merchants Tower, 12th Floor
Shun Tak Centre, 168-200 Connaught Road
Central, Hong Kong
MING FUNG: Creditors' Proofs of Debt Due May 20
-----------------------------------------------
Creditors of Ming Fung Watch Parts Factory No. 8 Limited are
required to file their proofs of debt by May 20, 2008, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on April 14, 2008.
The company's liquidator is:
Mark Kin Man
Fee Tat Commercial Centre, 21st Floor
No. 613 Nathan Road, Kowloon
Hong Kong
MTU AERO: Earns EUR44.2 Million in First Quarter of 2008
--------------------------------------------------------
MTU Aero Engines Holding AG improved its EBITDA by 9% in the
first three months of 2008, from EUR90.6 million in the
equivalent period of 2007 to EUR98.3 million. The EBITDA margin
increased by 1.5 percentage points to 15.6%. Revenues of EUR630
million were generated in the first three months of 2008,
remaining close to the previous year's level (1-3/07: EUR640.6
million). After adjustments for the U.S. dollar exchange rate,
revenues increased by 10%.
MTU's first-quarter net income more than doubled to EUR44.2
million (1-3/07: EUR18 million). The 2007 figure includes a
nonrecurring charge for the early redemption premium in
connection with the high yield bond. Excluding this exceptional
charge, net income increased by 40%.
"These results show that MTU is still a highly profitable
company, despite the continuing unfavorable U.S. dollar exchange
rate situation," MTU CEO Egon Behle commented. "The first
quarter’s results substantiate our expectations for the
financial year 2008 as a whole. We are confident that we will
reach the targets we have set, and we intend to optimize costs
still further in order to do so."
Developments during the first three months of 2008:
Like revenues at group level, revenues in the OEM and MRO
segments roughly matched those of the previous year.
The effects of the U.S. dollar exchange rate were evident in
both the commercial engine business and commercial MRO. Whereas
commercial engine revenues increased by 11% after adjustments
for the U.S. dollar exchange rate, the actual amount in euros
was EUR265.3 million, which represents a year-on-year decrease
of 2.9% (March 31, 2007: EUR273.1 million). Similarly,
commercial MRO revenues increased by 13% excluding adjustments
for the U.S. dollar exchange rate. Expressed in euros, revenues
in the commercial MRO business amounted to EUR258.3 million, or
1.5% lower than at the end of the equivalent period in 2007.
The main contributors to revenues in the commercial MRO segment
were the V2500 engine for the Airbus A320 family and the CF6
engine used to power wide-body passenger airliners such as the
A330 and the Boeing 747. The programs that generated the
greatest revenues for the commercial engine business were the
V2500 and the PW2000 for the C17 transporter.
Revenues in the military engine business increased by 3% to
EUR114.1 million. The highest contributions to these revenues
came from the EJ200 Eurofighter engine and the RB199 employed in
the Tornado.
At March 31, 2008, MTU's order backlog amounted to EUR3.1
billion or 1.2 times annual revenues in 2007. This figure is
lower than that at the end of the last financial year
(Dec. 31, 2007: EUR3.3 billion), primarily as a result of the
U.S. dollar exchange rate. Excluding this factor, the order
backlog is stable.
The improvement in the EBITDA margin is above all attributable
to the positive evolution of the OEM business, where the
successful implementation of various programs to improve
efficiency, a high demand for spare parts, and the start of
volume production in certain programs compensated for the
unfavorable U.S. dollar exchange rate. EBITDA in the OEM
business grew by 45% to EUR85.6 million, bringing the EBITDA
margin to 22.6%. The EBITDA margin for the commercial MRO
business amounted to 5.5%, while this segment's EBITDA dropped
by 53% to EUR14.2 million. This result, which reflects the
additional costs occasioned by the introduction of new software
and logistics systems at MTU Maintenance Hannover, was not
unexpected. "We have taken steps to bring the commercial MRO
business back on course, and these measures are already having
the desired effect at an operational level," MTU CFO Reiner
Winkler explained.
Free cash flow at the end of March 2008 amounted to EUR43.4
million, or roughly the same as at the end of the equivalent
period one year earlier (1-3/07: EUR44.3 million).
MTU's investing activities in the first three months of 2008
amounted to EUR18.9 million, exceeding those of the equivalent
period in the previous year by 6% (1-3/07: EUR17.9 million). A
large part of these investments relate to the construction of a
new engine test rig at MTU Maintenance Hannover.
Research and development expenses in the first three months of
2008 amounted to EUR37.7 million (1-3/07: EUR39.5 million).
"Research and development is the keystone in our efforts to
strengthen our innovative lead, and we intend to make
considerable investments in this area in the future," Mr. Behle
points out. "In the coming years, we expect to invest an
average of 7 to 8% of our revenues in R&D."
The number of MTU employees at March 31, 2008 was 7,156, which
is about the same as at the end of the previous year
(Dec. 31, 2007: 7,130 employees).
Outlook
There has been no change in MTU's end-of-year forecast for 2008.
The company expects to generate revenues of EUR2.6 billion,
roughly equivalent to those generated in 2007 (EUR2,575.9
million). Adjusted EBITDA at year-end 2008 is expected to
amount to around EUR390 million, thereby remaining close to the
previous year’s level of EUR392.9 million despite a significant
increase in investing activity and despite the effects of the
U.S. dollar exchange rate. MTU expects its reported EBITDA
(i.e. the EBITDA figure including the capitalized research and
development expenses) to reach EUR420 million at the end of
2008. Net income for 2008 is expected to increase year-on-year
by an estimated 20% to around EUR180 million (2007: EUR154.1
million). In view of the planned strategic investments to
assure MTU's future - notably the acquisition of additional
shares in engine programs and the construction of the new plant
in Poland - free cash flow is expected to decrease to around
EUR100 million (2007: EUR131.7 million).
Headquartered in Munich, Germany, MTU Aero Engines --
http://www.mtu.de/-- develops, manufactures, markets and
repairs commercial and military engine modules and components
for aircraft engines and industrial gas turbines. The company
has operations in China.
* * *
As of April 28, 2008, MTU Aero Engines Holding AG carries a
long-term corporate family rating of Ba1 and probability of
default rating of Ba1 from Moody's with a stable outlook. The
company also carries a long-term foreign issuer credit rating of
BB+ and long-term local issuer credit rating of BB+ from
Standard & Poor's with a stable outlook.
MUSIC IMPACT: Members' Final Meeting Set for May 19
---------------------------------------------------
Members of Music Impact Entertainment (Hong Kong) Limited will
have their final general meeting on May 19, 2008, at Gloucester
Tower, 8th Floor, The Landmark, 15 Queen's Road Central, in Hong
Kong to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ian Fegurson Bruce
Gloucester Tower, 8th Floor
The Landmark, 15 Queen's Road
Central, Hong Kong
SEAENA INC: Weaver & Martin Raises Substantial Doubt
----------------------------------------------------
Weaver & Martin, LLC, in Kansas City, Mo., raised substantial
doubt about Seaena, Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
pointed to the company's recurring losses and negative cash
flows from operations.
For the year ended Dec. 31, 2007, the company posted a
US$3,420,400 net loss on US$3,336,957 of revenues compared with
a US$9,875,464 net loss on US$4,272,495 of revenues in the prior
year period ended Dec. 31, 2006.
At Dec. 31, 2007, the company's balance sheet showed
US$4,601,656 in total assets and US$5,779,145 in total
liabilities, resulting in a US$1,177,490 stockholders' deficit.
The company's balance sheet at Dec. 31, 2007, showed strained
liquidity with US$1,259,057 in total current assets available to
pay US$5,779,145 in total current liabilities.
The company's accumulated deficit at Dec. 31, 2007, increased to
US$35,032,452 from US$31,612,052 at Dec. 31, 2007.
Subsequent Events
Seaena, Inc., entered on Jan. 15, 2008, into a binding letter of
intent with Concord Industries, Inc. Seaena will acquire
Concord in a reverse acquisition. Under the letter of intent,
Seaena will issue a number of shares equal to 60% of the shares
then outstanding to the Concord shareholders in exchange for
their Concord shares. About 53% of the shares would be released
to the Concord shareholders at closing and 7% would be held in
escrow and released upon having achieved certain milestones over
the three-year period following the closing.
A full-text copy of the company's 2007 annual report is
available for free at http://ResearchArchives.com/t/s?2b44
About Saena
Based in Las Vegas, Seaena, Inc. (OTCBB: SEAI) --
http://www.seaena.com-- distributes etched crystal goods. The
company also develops and sells laser machinery. The company
operates primarily in the United States, China, and Europe.
SPRING ASIA: Commences Liquidation Proceedings
----------------------------------------------
Spring Asia Limited's members agreed on April 7, 2008 to
voluntarily liquidate the company's business. The company has
appointed Bruno Arboit and Simon Richard Blade to facilitate the
sale of its assets.
The liquidators can be reached at:
Bruno Arboit
Simon Richard Blade
China Merchants Tower, 12th Floor
Shun Tak Centre, 168-200 Connaught Road
Central, Hong Kong
TOWNGAS CHINA: Moody's Ups Towngas China Rating From Ba1 to Baa3
----------------------------------------------------------------
Moody's Investors Service has upgraded to Baa3 from Ba1 Towngas
China Company Limited's (Towngas China) corporate family rating
and senior unsecured bond rating. This concludes the review
initiated on March 17, 2008. At the same time, Moody's has
withdrawn the corporate family rating and assigned a Baa3 issuer
rating to Towngas China. The outlook for the ratings is stable.
"The rating upgrade reflects Moody's assessment of the
likelihood of the strong financial and operational support
Towngas China would receive from its 45%-owned shareholder, The
Hong Kong and China Gas Company Limited (HKCG), and which
translates into further uplift for the ratings," says Ken Chan,
a Moody's Vice President.
"Since HKCG became the company's largest shareholder in March
2007, it has already provided strong support to Towngas China,
including two shareholder loans totaling US$63 million, and a
pro-rata subscription to its rights issue of US$90 million,"
adds Chan.
"Moreover, Towngas China delivered an improved operating
performance in 2007, translating into Debt/Capitalization of 27%
and EBIT/Interest of 1.7x," says Chan. "Its credit profile is
projected to gradually improve on the back of strong cash flow
generation from its piped gas projects."
"Such a credit profile is consistent with a Ba2 rating on a
standalone basis, and the expected support from HKCG provides a
2-notch uplift to the final Baa3 rating," says Chan.
The stable outlook reflects Moody's expectation that Towngas
China will execute its business model as planned, as well as
leverage its relationship with HKCG for easier access to the
capital markets for any capital expansion plans.
Upward rating pressure would evolve if Towngas China
demonstrates its financial stability through growing its cash
flow from piped gas sales and new projects, as well as de-
leveraging and improving its balance sheet strength, such that
RCF/Total Debt is above 15-20% and EBIT/Interest is greater than
3.5-4.0x on a sustainable basis.
On the other hand, the rating is sensitive to changes in Moody's
assessment of the level of operational and financial support
from HKCG. Accordingly, downward rating pressure would emerge if
HKCG's ownership level falls, but which Moody's does not expect
to occur in the near term; or if there is evidence that HKCG is
not providing the expected level of support.
Furthermore, the rating may experience downward pressure if
Towngas China is unable to achieve its expected growth and
returns, or if regulatory changes negatively affecting its cash-
generating ability occur. The key credit metrics that Moody's
would focus on include EBIT/Interest below 2.0-2.5x over the
industry cycle.
Towngas China, listed on the Hong Kong Stock Exchange, is
primarily engaged in the downstream sale and distribution of
natural gas and liquid petroleum gas (LPG) in Mainland China.
Its main operations include the provision of piped natural gas,
the construction of gas pipelines, the sale of LPG in bulk and
cylinders, and, to a lesser extent, the sale of gas household
appliances.
TITAN PETROCHEMICAL: 2007 Revenue Up 48% to HK$17,004 Million
-------------------------------------------------------------
Titan Petrochemicals Group Limited disclosed results for the
year ended December 31, 2007, showing higher revenues, but
significantly lower earnings and a net loss for the Group,
impacted largely by extremely difficult operating conditions
during the year. On a positive note, the Group's balance sheet
strengthened considerably, with a much stronger cash position as
at December 31, 2007, of HK$2,111 million, compared to
HK$373 million twelve months ago.
Despite the market challenges, the Group made significant
investments across its businesses during the year as it
continued to build up resources to capture future growth, with
substantial increases in both tangible assets and headcount.
In 2007, the Group completed the acquisition of Titan Quanzhou
Shipyard, a unique multi functional facility with very strong
prospects.
"Market conditions were very challenging in 2007. The VLCC
market remained depressed for the greater part of the year, and
in the second half, businesses suffered under the impact of
higher oil prices and higher volatility, which severely affected
Titan's earnings, "said Titan Chairman and Chief Executive Mr.
Tsoi Tin Chun.
Revenue for the year was HK$17,004 million, an increase of 48%
over 2006. Earnings before interest, tax, depreciation and
amortization (EBITDA), including the HK$262 million gain from
vessel disposals, was HK$772million, and the loss attributable
to shareholders was HK$29 million.
No dividend has been declared.
As part of its asset management program to rebalanced its
portfolio, Titan sold two VLCCs, and five medium to smaller
sized tankers, resulting in a total net book gain of HK$ 262
million.
Cash flow remained positive during the year and included the
receipt of HK$1,365 million (US$175 million) in capital from the
Warburg Pincus investment that was announced in March 2006. The
gearing ratio improved to 0.49 from 0.57 as at December 31,
2006.
Business Review
In 2007, Titan Quanzhou Shipyard delivered its first two
vessels, both 6,500 deadweight ton (dwt) bunker tankers. It
began to contribute to the Group, with total revenues of HK$114
million and segment result of HK$16 million for the year.
The shipyard is a unique multi functional facility that when
fully operational at the end of 2009, will be one of the largest
ship repair, offshore engineering and specialized ship building
yards in Asia.
Its ship building operations began in September 2006 and will be
delivering ten ships in 2008. The Group's storage operations
performed very well, with revenues increasing from HK$96 million
to HK$212 million and segment result rising from HK$25 in 2006
to HK$106 million. Demand for the Group's Floating Storage Units
(FSUs) near Singapore remained strong and a total of four VLCCs
were deployed, nearly tripling capacity to over one million
tons. FSU revenues alone more than doubled to HK$197 million,
while segment result increased three-fold to HK$109 million.
Total revenues for operations at the China terminals were HK$15
million, while segment result was a loss of HK$3 million. The
revenues were derived from Phase I of the Guangdong Nansha
Petrochemical Terminal and also from Phase I of the Titan Fujian
Petrochemical Terminal, which started operations in April 2007
with 90,000 m3 of storage capacity. Utilization rates for both
terminals, although affected in the second half by negative
import margins for customers, have improved considerably since
the first quarter of 2008.
Construction of the 420,000 m3 Phase I of the Yangshan
Petrochemical Terminal near Shanghai made good progress, with
completion expected in the second half of 2008. Another 305,300
m3 of capacity, under the Phase II development of the Nansha
terminal, will also be ready by the end of this year.
In transportation, Titan began strategically reducing its
exposure to the VLCC market with the disposal of two VLCCs and
re-deployment of four as FSUs during the year. As a result,
fleet capacity dropped from 3.51 million at the end of 2006 to
2.13 million dwt at the end of 2007. The reduced capacity,
combined with weaker tanker rates, caused revenues to decline
41% to HK$1,236 million. Pressure from higher bunker costs due
to higher fuel prices drove segment result even lower, with a
decrease of 12% to HK$390 million.
Despite the weak market, Titan made further progress in its
already efficient fleet management, with average VLCC
utilization improving by 12.4% to 92.18% in 2007.
Revenues at the supply chain business (comprising supply and
distribution) increased by 66% to HK$15,442 million. However,
segment result decreased 28% to HK$54 million. The decline in
segment result came in the second half of 2007 when the surge in
oil prices resulted in import margins in the China market
turning negative, in turn leading to slower demand for oil.
Businesses were further affected by an increase of both market
volatility and competition, which led to much lower volumes and
margins, impacting profits significantly.
Nonetheless, Titan achieved growth in market leadership in the
face of very tough competition, rising to become the top eight
bunker supplier in Singapore from its previous ranking of top 10
in 2006.
Outlook
With markets for several of its core businesses including the
China terminals, the VLCC operations and the supply chain
business showing signs of improvement since the first quarter of
this year, Titan expects 2008 to be an exciting year.
"Our focus during the year will be to strengthen the balance
sheet further. We will achieve this by continuing to make
timely disposals of our single-hulled vessels, as we have done
recently. In addition, we will strive to increase the
utilization of our China terminals to more than 70% by the
end of the year, and work hard to secure more third-party
shipbuilding orders," said Mr. Tsoi.
In 2008, the yard is scheduled to start building 20 more ships,
launch 11 and deliver 10 more. The vessels already delivered
have been chartered out on a bare-boat basis, with purchase
obligations, to external clients. Together with the vessels now
under construction for delivery this year, they will begin to
make a substantial contribution to the Group's earnings.
To seize the opportunities presented by the buoyant shipbuilding
market, the shipyard is accelerating its expansion, while
construction of the ship repair and offshore engineering
facilities is well advanced.
To improve utilization of the China terminals, the Group is
refocusing its marketing targets and this
has led to rising demand in both the term and spot lease markets
in the first quarter of 2008.
"We will also focus on forming strategic partnerships with
potential players who will bring both operational expertise and
business opportunities to the Group," added Mr. Tsoi. With a
strong cash position and a reinforced management team, Titan
believes it is well placed to make further developments in 2008
and beyond, with growth driven by the Group's investment
projects in China.
About Titan Petrochemicals
Titan Petrochemicals Group Limited is a fully integrated
downstream oil logistics company, providing end-to-end sourcing,
transportation, storage and wholesale distribution on a single
platform. Through this, we help oil companies and oil users
such as power utilities make their supply chain more efficient
and their business more competitive.
In addition, the Group operates a rapidly expanding multi-
functional shipyard in Quanzhou, a strategic location in China
off the Taiwan Strait. Built to be one of the most advanced
facilities of its kind, the yard's ship building unit began
operations in 2006 and has a strong order book of high
performance vessels. This will soon be complemented by major
ship repair and offshore engineering operations capable of
handling latest generation container ships and oil rigs.
Titan operates in China, Hong Kong, Singapore and Malaysia.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 28,
2008, that Moody's Investors Service placed on review for
possible downgrade Titan Petrochemicals Group Ltd's B2 corporate
family rating and B3 senior unsecured bond rating.
TITAN PETROCHEMICAL: S&P Cuts Long-Term Corp. Credit Rating to B
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Titan Petrochemical Group Ltd. to 'B'
from 'B+'. The outlook is negative. At the same time, Standard
& Poor's lowered the issue rating on US$400 million senior
unsecured notes guaranteed by Titan to 'B-' from 'B'.
"The rating actions reflect our expectation that Titan is likely
to continue to be under financial pressure over the next 12
months and that its performance is no longer commensurate with a
'B+' rating. The company's expansion of its shipyard operations,
which requires large capital expenditure, is likely to put
further pressure on its funding and leverage," said Standard &
Poor's credit analyst Lawrence Lu.
Titan's various business lines--oil transportation, onshore oil
storage, and petroleum supply chain--will face challenging
conditions in 2008. In the transportation segment, very large
crude carrier freight rates are weak, and operating and
bunkering expenses are rising. Modest demand growth and stiff
competition in the onshore oil storage segment are likely to
continue to weigh on its profitability, although the utilization
rate has improved. Onshore oil storage did not contribute as
much as expected to 2007 results because of weaker-than-expected
demand. Margins in Titan's petroleum supply-chain operations are
likely to continue to erode. The margin squeeze began in the
second half of 2007 because of stiff competition and negative
margins on imports to China, as a result of high crude prices,
which had a knock-on impact on Titan.
Titan's shipyard operations could put pressure on the company's
cash flow as capex mounts. The ship-building business is showing
some progress, with two new orders from third parties and
several others under negotiation. It continues to relay heavily
on orders from related parties, has limited pricing power, and
will be vulnerable further weakening of the U.S. dollar. The
company's plan to expand into the ship-repairing and offshore
engineering business entails sizable capex over the next few
years, putting a further strain on Titan's fiscal performance.
Titan's liquidity is weak. The company will find it challenging
to meet all of its loan and bond covenants.
Headquartered in Hong Kong, its operations are spread between
Singapore, Malaysia and China. Titan manages 22 tankers and has
on-shore storage in Guangdong, Fujian and Shanghai. In 2007, the
company acquired a shipyard in Quanzhou, in Fujian.
The Troubled Company Reporter-Asia Pacific reported on April 28,
2008, that Moody's Investors Service placed on review for
possible downgrade Titan Petrochemicals Group Ltd's B2 corporate
family rating and B3 senior unsecured bond rating.
TYSON FOODS: Posts $5 Million Net Loss in Quarter Ended March 29
----------------------------------------------------------------
Tyson Foods Inc. reported net loss of US$5 million in second
quarter ended March 29, 2008, compared to net income of US$68
million for the same period last year.
The company's loss was affected by the increasing feed costs
that continued to haunt the company, The Wall Street Journal
reports.
WSJ relates that the company has no plans to trim down poultry
production as the demand for chicken products are high. That is
contrary to what its major rival, Pilgrim's Pride Corp., stated
that it plans to cut weekly chicken processing by 5% to offset
rising grain costs, WSJ says.
Second quarter 2008 sales were US$6.6 billion compared to
US$6.5 billion for the same period last year. Operating income
for the second quarter of fiscal 2008 was US$44 million compared
to US$158 million in 2007. In the second quarter of fiscal
2008, the company recorded US$47 million of charges related to
plant closings and asset impairments.
For six months ended March 29, 2008, the company has net income
of US$29 million compared to net income of US$125 million, for
the same period last year.
Sales for the six months of fiscal 2008 were US$13.4 billion
compared to US$13.1 billion for the same period last year.
Operating income for the six months of fiscal 2008 was
US$128 million compared to US$303 million in 2007. In the six
months of fiscal 2008, the company recorded an US$18 million
non-operating gain on the sale of an investment. Additionally,
it recorded US$53 million of charges related to plant closings,
asset impairments and severance.
"Our second quarter results show the strength of a diversified
protein business model," Richard L. Bond, president and chief
executive officer of Tyson Foods, said. "We continue to believe
the second fiscal quarter should be our most challenging, and we
are pleased with our results.
"Our Pork segment did very well, delivering its best January-
March quarter ever," Mr. Bond said. "Our Beef segment improved
US$74 million over the first quarter of this fiscal year, or
approximately US$100 million excluding plant closing and asset
impairment charges. The Chicken segment suffered losses due to
significantly higher and volatile input costs. Our chicken and
pork exports continue to be strong, and we are moving forward
with our strategy for international expansion."
"Looking forward to the third quarter, the Beef segment should
continue its improvement due to the start of grilling season and
the encouraging news South Korea will resume imports of U.S.
beef next month," Mr. Bond said. "The Pork segment should do
well again, although not as well as the second quarter."
"In the Chicken segment, we anticipate an additional US$100
million of increased grain costs over the second quarter, offset
in part by operational improvements, pricing and risk management
activities," Mr. Bond added. "For the year, corn and soybean
meal increases are likely to approach US$600 million. Including
other inputs such as cooking oil, breading and other feed
ingredients, the increase in costs for the fiscal year may
approach US$1 billion compared to fiscal 2007."
At March 29, 2008, the company's balance sheet showed total
assets of US$10.367 billion, total liabilities of US$5.613
billion and total shareholders' equity US$4.754 billion.
Shares of Tyson were up nine cents to US$18.24 in 4 p.m. New
York Stock Exchange composite trading, WSJ says.
About Tyson Foods Inc.
Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork. The company makes a wide variety of
protein-based and prepared food products at its 123 processing
plants. Tyson has approximately 114,000 Team Members employed
at more than 300 facilities and offices in 26 states and 80
countries. Tyson's U.S. beef plants are located in Amarillo,
Texas; Dakota City, Nebraska; Denison, Iowa; Finney County,
Kansas; Joslin, Illinois, Lexington, Nebraska and Pasco,
Washington. The company also has a beef complex in Canada, and
is involved in a vertically integrated beef operation in
Argentina and China.
* * *
As reported in the Troubled Company Reporter on April 7, 2008,
Moody's Investors Service confirmed Tyson Foods, Inc.'s
corporate family rating and probability of default rating at
Ba1. Moody's said the rating outlook remains negative.
ULTIMOS MANUFACTURING: Liquidator Quits Post
--------------------------------------------
On March 31, 2008, Yu Hongbin stepped down as liquidator for
Ultimos Manufacturing Limited, which is undergoing liquidation.
UNI-ALPHA: Members' Final Meeting Set for May 19
------------------------------------------------
Members of Uni-Aplha Futures Limited will have their final
general meeting on May 19, 2008, at Sino Plaza, Room 2104, 256-
257 Gloucester Road, Causeway Bay, in Hong Kong to hear the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ho Mui Ki
Sino Plaza, Room 2104, 256-257
Gloucester Road, Causeway Bay
Hong Kong
* Fitch Says Taiwanese Securities Firm is Strong
------------------------------------------------
Fitch Ratings commented that a prudent supervisory environment
governing capital retention, market and credit risk exposures,
as well as long-term investment expansion have contributed to
Taiwanese securities firms' financial soundness and stability.
The industry's capitalisation is strong compared with
international peers and contrasts with the much higher leverage
levels seen at US investment banks, which have suffered
liquidity pressures during the ongoing credit crisis. The
sector's liquidity is also adequate, supported by sufficient and
consistently positive net current assets.
Meanwhile, the liberalisation of many regulations since late
2007 will help boost Taiwanese securities firms' revenue
diversity and earnings quality. The opening up of selective
wealth management and trust businesses has been especially
welcomed by securities firms with no group banking support, as
some of them have been losing customers to financial groups
which provide a complete range of financial services. Fitch
highlighted in a special report that the capabilities of
securities firms with regards to product renovation and
manufacturing will be a key factor in their competition with
banks, which have distinct advantages in terms of distribution
channels and customer relationships.
Looking into 2008, the sector's earning prospects remain largely
favourable. The agency expects a reasonably good turnover in
the Taiwanese stock market as market sentiment improves, partly
as a result of the easing of the cross-strait relationship
following the presidential election in March 2008.
Fitch also expects that the rating Outlook on Taiwan's
securities sector will remain Stable in 2008. Selective
upgrades could be possible for securities firms that deliver
consistent profitability through improving their revenue
diversity and advanced risk management capabilities, while
rating downgrades are less likely and should be limited.
Additionally, the agency views M&A-driven rating changes as
generally positive as some domestic financial groups have
expressed strong ambitions to expand their franchise value
through acquiring securities firms.
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AXIS BANK: Shri. Surendra Singh's Term as Director Expires
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AXIS Bank Ltd informed the Bombay Stock Exchange that the term
of office of Shri. Surendra Singh, Director of the Bank, has
expired with effect from April 27, 2008. Accordingly, he has
ceased to be a Director at the Bank from that date.
Headquartered in Mumbai, India, Axis Bank Ltd, formerly known as
UTI Bank Limited, -- http://www.axisbank.com/-- is engaged in
treasury and other banking operations. The treasury services
segment undertakes trading operations on the proprietary
account, foreign exchange operations and derivatives trading.
Revenues of the treasury services segment primarily consist of
fees and gains or losses from trading operations and interest
income on the investment portfolio. Other banking operations
principally comprise the lending activities (corporate and
retail) of the bank. The corporate lending activity includes
providing loans and transaction services to corporate and
institutional customers. The retail lending activity includes
raising of deposits from customers and providing loans and
advisory services to customers through branch network and other
delivery channels.
The bank currently holds Moody's Investors Service's Ba2 rating
that was placed on July 1, 2005.
BHARTI AIRTEL: To Cut Long-Distance and Mobile Roaming Rate
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Bharti Airtel Ltd. will cut rates on long-distance calls and
roaming within the country to boost usage, Bibhudatta Pradhan
and Harichandan Arakali write for Bloomberg News.
According to company statement cited by Bloomberg, customers
traveling outside their home coverage circles will be charged 1
rupee or US$2.5 cents a minute while receiving calls, compared
with the 1.75 rupees a minute they pay now. Bharti Airtel's
users will also be billed 1.5 rupees per minute, or 43% less,
on long-distance calls made on their mobile-phones that will
take effect on April 30, the report added.
Gaurav Tyagi, an analyst at Batlivala and Karani Securities Ltd.
in Mumbai, told Bloomberg in a telephone interview that the rate
cuts may pare the company's earnings for the current quarter,
which he rated the stock as “outperform”.
Bharti Airtel has cut prices and expanded coverage in a wireless
services market as rivals including Reliance Communications Ltd.
and Vodafone Group Plc are competing to lure away customers, the
report said.
Headquartered in New Delhi, India, -- Bharti Airtel
Limited's -- http://www.bhartiairtel.in-- is a telecom services
provider. The company has three business units: Mobile
Services, Broadband & Telephone Services and Enterprise
Services.
* * *
Fitch Ratings, on Nov. 19, 2007, affirmed Bharti Airtel
Limited's Long-term foreign currency Issuer Default Rating at
'BB+'. Fitch said the outlook on the rating is stable.
DCM SHRIRAM: HB Stockholding Increases Stake to 3,831,776
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HB Stockholding has increased its stake in DCM Shriram
Industries to 3,831,776 equity shares comprising 25.05% of its
total equity through open market purchases, Keshav Seth at
TopNews reports.
According to the report, the increase of stake to 25.05% has
been calculated based on DCM Shriram's paid up equity share
capital of 15,298,437 equity shares as per its audited balance
sheet as of Mar. 31, 2007.
DCM Shriram Industries Ltd is the flagship company of the DCM
Shriram Industrial Group based predominantly in Northern India,
and was established in 1990, following the restructuring of the
former DCM group. The group's product portfolio includes sugar,
alcohol, industrial fibres, and organic chemicals. DCM Shriram
has sugar and chemical plants at Daurala in Meerut district in
Uttar Pradesh, and an industrial fibre unit at Kota in
Rajasthan. Other DSIG companies are Daurala Food and Beverages
Pvt Ltd, DCM Hyundai Ltd, and DCM Shriram and Leasing Finance
Ltd.
In November 2007, CRISIL revised its ratings on DCM Shriram's
debenture programmes to 'BB+/Negative' from 'BBB-/Negative'.
The rating revision reflects CRISIL's expectation that the weak
scenario prevailing in the sugar industry will adversely affect
the company's financial risk profile over the next 12 months.
Moreover, the stress on cash flows, coupled with high loan
repayment obligations of about INR300 million per annum over the
medium term, is likely to affect the company's liquidity.
DECCAN AVIATION: Incurs INR1.9BB Net Loss in Qtr. Ended March 31
----------------------------------------------------------------
Deccan Aviation Ltd. incurred a net loss of INR1.9 billion in
the three months ended March 31, 2008, as compared with a net
loss of INR2.13 billion in the same quarter of 2007.
The company's total income increased from INR4.57 billion in
Jan.-March 2007, to INR6.07 billion in the latest quarter under
review. Expenditures rose from INR6.41 billion to
INR7.66 billion, bringing the company an operating loss of
INR1.59 billion.
Results in Jan.-March 2008 also showed increased interest
charges (2008:INR279.7 million; 2007: INR174.1 million),
depreciation (2008:INR115.7 million; 2007: INR109.8 million) and
taxes (2008:INR14.1 million; 2007: INR10 million).
Bangalore, India-based Deccan Aviation Limited --
http://www.deccanair.com/-- is a charter aviation company in
the private sector. Deccan Aviation provides company charters,
tourism, medical evacuation, off-shore logistics and a host of
other services.
In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the
INR3.41 billion loss incurred in FY 2006.
GENERAL MOTORS: Former Unit Delphi Wants $650 Million GM Credit
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Delphi Corp. and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the Southern District of New York to:
(i) obtain extensions of credit of up to $650 million from
General Motors Corp. and
(ii) pay undisclosed fees in connection with the loan.
Delphi has filed with the Court a draft of its agreement with
GM, pursuant to which a GM affiliate will provide $650 million
in advances to Delphi. GM has agreed to make accommodations in
the form of the advances, in anticipation of the effectiveness
of their Master Restructuring Agreement and