/raid1/www/Hosts/bankrupt/TCRAP_Public/070129.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 29, 2007, Vol. 10, No. 20
Headlines
A U S T R A L I A
AALEN PTY: Members Resolved to Wind-Up Firm
ADVANCED MARKETING: US Trustee Appoints 5-Member Creditors Panel
ADVANCED MARKETING: Wants Until March 29 to File Schedules
ADVANCED MARKETING: Court Sets Jan. 31 Bidding Protocol Hearing
BOSBORAS PTY: Placed Under Voluntary Liquidation
BURNETT VALLEY: Enters Voluntary Liquidation
BUSINESS CLUB: Final Meeting Slated for March 2
CASTELPLANIO PTY: Liquidator to Present Wind-Up Report
COMMSCOPE INC: Introduces Residential Structured Cabling System
COOPER COMPANIES: Discloses Planned US$1 Billion Refinancing
DIXON FIRE: Members Agree on Voluntary Wind-Up
GEO GROUP: S&P Rates New US$515 Million Senior Facility at BB
GETTY: Extends 0.50% Deb. Consent Solicitation Until Jan. 24
INVESTEC BANK (AUSTRALIA): Fitch Affirms Individual Rating at C
J & L EDWARDS: Members Decide to Close Business
MULLALEY PROPERTIES: Taps Receivers and Managers
MULTIPLEX GROUP: May Receive Possible Acquisition Proposal
PEABODY ENERGY: Declares Quarterly Dividend of US$0.06 Per Share
PEABODY ENERGY: Appoints David James as Director of Trading
PINEFAB PTY: Undergoes Voluntary Wind-Up
REDPRAIRIE CORP: Moody's Holds B1 Rating on US$190 Million Loans
REDPRAIRIE CORP: Moody's Junks US$70-Mln Sr. Sec. Lien Notes
REDPRAIRIE CORP: Narrow Product Focus Cues S&P to Affirm Ratings
S.C.I. ACQUISITIONS: Members to Receive Wind-Up Report
SOFT CENTRE: Members and Creditors' Meeting Set on February 26
TRANSAX INT: Inks US$5.9MM Letter of Intent to Sell MedLink Unit
UNIVERSAL COMPRESSION: Acquires B.T. Engineering
XILLIX TECH: Court Extends CCAA Protection Until February 5
C H I N A & H O N G K O N G
AFK HONG KONG: Schedules First Meetings on January 30
CHAODA MODERN: Fiscal 2006 Profit Reaches CNY1.4 Billion
CRYSTAL JADE: Court Appoints Joint Liquidators
CYBERTRONICS (HK): Members to Receive Wind-Up Report
FOREGROUND SECURITIES: Will Pay Dividend on February 1
HONGKONG PHARMA: Posts HK$39.4M Net Loss in 1/H Ended Sept. '06
LOULAN HOLDINGS: Receives Delisting Notice from SEHK
PLUS HOLDINGS: Posts HK$1.4 Million Net Loss in Fiscal Year 2006
RADIER LIMITED: Contributories & Creditors to Meet on January 29
SMI PUBLISHING: Year Ended-March 2006 Balance Sheet Upside Down
* Hong Kong Stock Exchange Delists 24 Companies in 2006
I N D I A
AFFILIATED COMPUTER: Earns US$61.4 Mil. in Qtr. Ended Sept. 30
BANK OF INDIA: Net Profit in Dec. '06 Qtr. Soars to INR2.5 Bil.
BANK OF INDIA: To Issue INR1,200-Crore Tier II Capital Bonds
BHARTI AIRTEL: To Buy Network i2i's Cable System for US$110 Mil.
BHARTI AIRTEL: Offered to Provide Mobile Services in Sri Lanka
BHARTI AIRTEL: Allots 11600 Equity Shares Under ESOP
CENTURION BANK: Issues 7,50,00,000 Shares to India Advantage
GENERAL MOTORS: Delays Filing of 2006 4th Qtr. & Annual Reports
GENERAL MOTORS: May Shift Responsibility of Retiree Benefits
SUN MICRO: Commences US$700MM Notes Private Placement with KKR
SUN MICROSYSTEMS: S&P Says Debt Placement Won't Affect Ratings
UTI BANK: Gets RBI Nod to Float Infrastructure Funding Arm
I N D O N E S I A
AVNET INC: Reports Second Quarter Fiscal Year 2007 Results
BANK INDONESIA: Fitch Affirms Issuer Default Rating BB-
BANK NEGARA: Asked to Execute Defrauders' Assets
BANK NIAGA: Provides Excelcomindo Subscribers Expanded Service
FOSTER WHEELER: Wins Refinery Expansion Contract In Malaysia
FOSTER WHEELER: Indian Firm Awards Services Contract
PERTAMINA: Readies US$315 Million to Pay Karaha Claim
PERTAMINA: Eyes US$500 Million in Loans to Expand Business
PERTAMINA: Chief Calls For Share Listing by End-2008
J A P A N
ATARI INC: Expands Line-Up of Dragon Ball Z(R) Handheld Games
JAPAN AIRLINES: In Talks with Embraer on Plane Orders
KOBE STEEL: To Invest JPY5 Billion To Raise Titanium Capacity
MICRON TECHNOLOGY: Credit Suisse Upgrade Firm to "Outperform"
K O R E A
DURA AUTOMOTIVE: Judge Carey Okays Ernst & Young as Tax Advisors
DURA AUTOMOTIVE: Brunswick Hired as Communications Consultants
HYNIX SEMICONDUCTOR: Fab-Expansion Plan Gets Partial Approval
WOORI BANK: To Invest USUS$500 Mil. on New Chinese Subsidiary
M A L A Y S I A
NORTH BORNEO: Bursa to Delist Securities on February 6
SETEGAP BERHAD: Court Extends Restraining Order Until April 21
SUREMAX GROUP: Receives Summon and Claim Statement from Unipati
SUREMAX GROUP: Bursa Extends Plan Filing Deadline to March 8
SYARIKAT KAYU: Gets Plan Filing Extension Until February 7
TAP RESOURCES: Extends Completion of Shares Sale Agreement
TRIPLC BERHAD: Posts MYR469,000 Net Profit in 2nd Quarter 2007
N E W Z E A L A N D
A-MART EDEN: Faces Liquidation Proceedings
ANVIL HOLDINGS: Court to Hear Liquidation Hearing on Feb. 1
COURTHOUSE CAFE: Court Appoints Joint Liquidators
G-GROUP LTD: Commences Liquidation Proceedings
GUELPH ENTERPRISES: Court Hears Liquidation Hearing
KIDS AND FAMILIES: Court Issues Liquidation Order
M & S PROPERTY: Official Assignee Acts as Liquidator
MILTON CONSTRUCTION: Nellies and Deuchrass to Act as Liquidators
PIPIRIKI FARMS: Court to Hear Liquidation Petition on Jan. 31
POGO PRODUCING: Quarterly Dividend to be Paid on February 23
QUALITY FERNS: Court Sets Liquidation Hearing on February 1
QUANTUM DEVELOPMENTS: Official Assignee to Liquidate Business
SPORTSCAR WORLD: Liquidation Hearing Slated for February 5
P H I L I P P I N E S
COVANTA HOLDING: Moody's Puts B1 Rating on US$325MM Debentures
COVANTA HOLDING: S&P Rates US$1.3 Bil. Credit Facilities at BB-
EAST ASIA POWER: Creditors Object to Rehabilitation Petition
EAST ASIA POWER: Restructures Employee Functions for Efficiency
GUESS? INC: Raises Fourth Quarter Earnings Per Share Guidance
GUESS? INC: Board Approves Fiscal Year End Change
HERMOSA SAVINGS: Claims for Insured Deposits Due on February 5
SBARRO INC: Receives Tenders for US$218.89 Mln in 11% Sr. Notes
SBARRO INC: Loan Add-on Prompts S&P to Affirm Ratings
* Bangko Sentral ng Pilipinas Maintains Key Policy Rates at 7.5%
S I N G A P O R E
CKE RESTAURANTS: Credit Add-on Cues S&P to Hold BB-Rating
CONTINENTAL CHEMICAL: Moody's Revises Outlook to Stable
DIGILAND INTERNATIONAL: Temasek Holdings Reduces Stake
HONMA GOLF: Creditors Must Prove Debts by Feb. 19
HUA SENG: Liquidator to Receive Claims Until Feb. 2
PETROLEO BRASILEIRO: Fails to Win Bolivian Gas Supply Contract
PETROLEO BRASILEIRO: Petros Boosting Private Sector Investments
SHIP FINANCE: Acquires Jack-Up Drilling Rig for US$210 Million
SHIP FINANCE: Names Svein Aaser to Board of Directors
NT VISION: Liquidators to Receive Claims Until Feb. 3
T H A I L A N D
ASIA HOTEL: ANS Audit Co. Raises Significant Going-Concern Doubt
BANGKOK BANK: To Increase Stake in BBL Asset to 75%
BANK OF AYUDHYA: Board Names Kong Khoon Tan as CEO & President
iTV PCL: Unable to Pay THB2.21-Bil. Debt; Presents 5 Options
- - - - - - - -
=================
A U S T R A L I A
=================
AALEN PTY: Members Resolved to Wind-Up Firm
-------------------------------------------
The members of Aalen Pty Ltd met on Jan. 8, 2007, and resolved
to voluntarily wind up the company's operations.
In this regard, Desmond John Galgut was appointed as liquidator.
The Liquidator can be reached at:
Desmond John Galgut
39 Clunies Ross Crescent
Mulgrave, Victoria
Australia
About Aalen Pty
Aalen Pty Ltd is a special trade contractor.
The company is located in Victoria, Australia.
ADVANCED MARKETING: US Trustee Appoints 5-Member Creditors Panel
----------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
has appointed five creditors to the Official Committee of
Unsecured Creditors in Advanced Marketing Services Inc. and its
debtor-affiliates Chapter 11 cases.
The Creditors Committee members are:
(1) Random House, Inc.
400 Hahn Road
Westminster, MD 21157
Attn: William C. Sinnott
Tel: (410) 386-7480
Fax: (410) 386-7439
(2) Penguin Group USA Inc.
375 Hudson Street
New York, NY 10014
Attn: Alexander Gigante
Tel: (212) 366-2959
Fax: (212) 366-2867
(3) Hachette Book Group USA
3 Center Plaza
Boston, MA 02108
Attn: Dennis J. Balog
Tel: (617) 263-1880
Fax: (617) 263-2852
(4) Grove/Atlantic
841 Broadway
New York, NY 10003
Attn: E. Morgan Entrekin, Jr.
Tel: (212) 614-7975
Fax: (212) 529-9725
(5) Wisdom Publications, Inc.
199 Elm Street
Somerville, MA 02144
Attn: Timothy McNeill
Tel: (617) 776-7416
Fax: (617) 776-7841
Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtor's expense. They may investigate the Debtor's business
and financial affairs. Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent. Those committees will also attempt to negotiate the
terms of a consensual chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest. If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee. If the
Committee concludes reorganization of the Debtor is impossible,
the Committee will urge the Bankruptcy Court to convert the
Chapter 11 cases to a liquidation proceeding.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United
Kingdom, and Australia and employs approximately 1,200 people
Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than US$100 million. The Debtors' exclusive
period to file a Chapter 11 Plan will expire on Apr. 28, 2007.
ADVANCED MARKETING: Wants Until March 29 to File Schedules
----------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to extend
to March 29, 2007, their deadline to file:
-- schedules of assets and liabilities;
-- a schedule of current income and expenditure;
-- a schedule of executory contracts and unexpired leases; and
-- a statement of financial affairs.
Under Rule 1007(b) of the Federal Rules of Bankruptcy Procedure
and Rule 1007-1(b) of the Local Rules of Bankruptcy Practice and
Procedure of the U.S. Bankruptcy Court for the District of
Delaware, the Debtors are required to file their Schedules and
Statements within 30 days after filing their chapter 11
petitions.
Paul N. Heath, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, however, tells Judge Christopher S.
Sontchi that because of the substantial size and scope of the
Debtors' business, the complexity of their financial affairs,
the limited staffing available to perform the required internal
review of their accounts and affairs, and the press of business
incident to the commencement of their cases, the Debtors were
unable to assemble, prior to Dec. 29, 2006, all of the
information necessary to complete and file the Schedules and
Statements.
The Debtors will not be in a position to complete the Schedules
and Statements within the time specified in Bankruptcy Rule 1007
and Local Rule 1007-1(b), Mr. Heath relates. Completing the
Schedules and Statements for each of the Debtors, Mr. Heath
explains, will require the collection, review and assembly of
information from multiple locations throughout the United
States.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United Kingdom, and
Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Chun I. Jang, Esq., Mark D.
Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts of more than US$100 million. The Debtors' exclusive
period to file a Chapter 11 Plan will expire on Apr. 28, 2007.
ADVANCED MARKETING: Court Sets Jan. 31 Bidding Protocol Hearing
---------------------------------------------------------------
The Hon. Christopher S. Sontchi of the United States Bankruptcy
Court for the District of Delaware scheduled a hearing on Jan.
31 to consider Advanced Marketing Services Inc. and its debtor-
affiliates' request to establish procedures and a timeline to
consummate a Qualified Transaction, as well as an offer
evaluation process for certain Qualified Transactions.
The Debtors have been seeking to recapitalize their businesses
through a strategic transaction, by way of the sale of
substantially all or a portion of their major assets, or a debt
or equity investment. The Debtors have received substantial
investor interest, with multiple third parties executing non-
disclosure agreements and conducting diligence.
Pursuant to their Amended and Restated Loan and Security
Agreement dated as of Jan. 3, with Wells Fargo Foothill Inc. as
DIP agent and a consortium of lenders, the Debtors are obligated
to take steps to consummate a Qualified Transaction pursuant to
a specified timeline.
The Debtors also seek permission to provide stalking horse
protections with respect to a stalking horse for the Qualified
Transaction. The Debtors also seek approval of the manner of
notice of the Qualified Transaction Procedures.
The Debtors will seek approval of a Qualified Transaction not
more than two days following Court approval of the Qualified
Transaction Procedures.
Sale Notice
In the event they enter into an agreement to sell substantially
all of their assets, the Debtors will send notice of the
proposed Qualified Transaction Procedures and the proposed time
and date of the Sale Procedures to all parties-in-interest and
all potential purchasers. The Qualified Transaction Motion will
attach the form of asset purchase agreement executed by the
Stalking Horse, and the notice will include instructions as to
how parties-in-interest may obtain a copy of the Definitive
Agreement.
Access to Data Room
The Debtors will establish an electronic data room that contains
information relevant to the Debtors for evaluation by interested
parties. The Debtors will make the electronic data room
available to any entity the Debtors determine to be qualified
that executes an appropriate confidentiality agreement.
Offer Deadline
Binding offers to purchase all or any defined portion of the
Debtors' assets may be submitted up to two days prior to the
date the Offer Evaluation Process is to occur. Each Qualified
Offer should include:
(i) a mark up of the Definitive Agreement;
(ii) detailed information about the party making the Qualified
Offer, including its financial and other capacity to
consummate the transaction;
(iii) an identification of the executory contracts and leases
to be assumed by the party making the Qualified Offer;
and
(iv) information sufficient to demonstrate that the party
making the Qualified Offer will be able to provide
parties to the contracts and leases with adequate
assurance of its ability to perform under them.
Offer Evaluation Process
Two business days prior to the Qualified Transaction Hearing, a
meeting will be held at the offices of Richards Layton & Finger,
the Debtors' Delaware counsel, if the Debtors determine in their
discretion, after consultation with their major creditors, that
proceeding with the Offer Evaluation Process is appropriate.
During the Offer Evaluation Process, the Debtors will evaluate
the offers of the Stalking Horse and any Qualified Offers.
Successive Qualified Offers will be considered only if they
exceed the previous offer by a minimum increment to be
determined by the Debtors in their business judgment, provided
that the initial increment will be not less than the amount that
would be owed if the Debtors would be required to pay the
Stalking Horse Protections to the Stalking Horse.
The Debtors may recess the Offer Evaluation Process from time to
time in their discretion to assess Qualified Offers or permit
participants whether to alter or increase their Qualified
Offers.
If the Qualified Transaction Motion seeks approval of a
financing transaction or other debt or equity infusion, no
overbid procedures will be necessary.
In the event the Debtors have not selected a Stalking Horse at
the time they file the Qualified Transaction Motion, the
Definitive Agreement will be drafted by the Debtors.
Multiple Lots
The Debtors reserve the right to accept and evaluate one or more
Qualified Offers seeking the purchase of one or more defined
subsets of their assets. In the event that acceptance and
evaluation of the Qualified Offers is deemed appropriate in the
Debtors' business judgment, formed after consultation with their
major creditors, the Offer Evaluation Process may proceed in
multiple lots, provided that any participant will have an
opportunity to submit a Qualified Offer on one or more lots or
on all lots together, and the Debtors will be free in their
business judgment to accept the Qualified Offer or Offers that,
alone or in conjunction with others, the Debtors deem to
comprise the highest and best offer available.
Qualified Transaction Hearing
The Debtors ask the Court to schedule the Qualified Transaction
Hearing on a date not less than 22 days after entry of the
Qualified Transaction Procedures Order.
Stalking Horse Protections
The Debtors seek authority, but not direction, to provide these
Stalking Horse Protections upon the execution of a Definitive
Agreement:
(i) a break up fee of up to 2.5% of the net consideration to
the Debtors under the Definitive Agreement, or
(ii) reimbursement of reasonable, documented out of pocket
expenses not to exceed US$200,000.
To be entitled to the Protections, the Debtors explain that the
Stalking Horse must agree to keep its offer open until the
conclusion of the Offer Evaluation Process.
In the event that the Debtors seek a Qualified Transaction in
the form of a refinancing of the DIP Facility, the Debtors seek
authority, but not direction, to provide a refinancing lender
with these protections:
(i) a break up fee of up to 0.5% of the face amount of the new
facility, or
(ii) reimbursement of reasonable, documented out of pocket
expenses not to exceed US$150,000.
The Qualified Transaction Protections are modest sums, Paul N.
Heath, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, assures Judge Sontchi.
"Not only will a Stalking Horse or Refinancing Lender provide
the Debtors and their creditors with a measure of comfort that
the Qualified Transaction will in fact be consummated, but the
presence of a Stalking Horse will encourage third parties to
submit competitive offers and will enable the Debtors to
maximize value for their estates," Mr. Heath says. "The
benefits of having a Stalking Horse or a Refinancing Lender thus
far outweigh the potential costs associated with the Qualified
Transaction Protections."
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services Inc.
-- http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution, and publishing services, currently
primarily to the book industry. The company has operations in
the U.S., Mexico, the United Kingdom, and Australia and employs
approximately 1,200 people worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No.
3; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
BOSBORAS PTY: Placed Under Voluntary Liquidation
------------------------------------------------
On Jan. 11, 2007, the members of Bosboras Pty Ltd -- formerly
known as Club Coco Pty Ltd -- resolved to voluntarily liquidate
the company's business.
At the creditors' meeting held that same day, Leigh Dudman was
subsequently appointed as liquidator.
The Liquidator can be reached at:
Leigh Dudman
B. K. Taylor & Co
8/608 St Kilda Road
Melbourne, Victoria 3004
Australia
About Bosboras Pty
Bosboras Pty Ltd -- trading as Club Coco Screenprinters -- is a
distributor of automotive trimmings, apparel findings, and other
related products.
The company is located in Victoria, Australia.
BURNETT VALLEY: Enters Voluntary Liquidation
--------------------------------------------
At a general meeting held on Dec. 21, 2006, the members of
Burnett Valley Ltd passed a special resolution to voluntarily
liquidate the company's business and to distribute the proceeds
of its assets disposal.
The joint liquidator can be reached at:
Bradley Hellen
c/o Pilot Partners
Level 5, 175 Eagle Street
Brisbane, Queensland 4000
Australia
About Burnett Valley
Burnett Valley Ltd -- trading as Burnett Valley Stockfeeds -- is
a distributor of prepared feeds and feed ingredients for animals
and fowls, except for dogs and cats.
The company is located in Queensland, Australia.
BUSINESS CLUB: Final Meeting Slated for March 2
-----------------------------------------------
The final meeting of the members and creditors of The Business
Club Company Pty Ltd will be held on March 2, 2007, at
12:00 p.m., to consider the accounts of the company's
liquidator.
According to the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of its operations on Dec. 13, 2005,
due to its inability to pay debts.
The Liquidator can be reached at:
Robert Moodie
Rodgers Reidy
Level 8, 333 George Street
Sydney, New South Wales 2000
Australia
About The Business Club
The Business Club Company Pty Ltd -- trading as Salamanca
Training Centre -- operates vocational schools.
The company is located in Tasmania, Australia.
CASTELPLANIO PTY: Liquidator to Present Wind-Up Report
------------------------------------------------------
Castelplanio Pty Ltd formerly trading as Ernies Iga Supermarket,
and which is in liquidation, will hold a final meeting for its
members and creditors on Feb. 23, 2007, at 10:00 a.m.
During the meeting, Paul Vartelas, the appointed liquidator,
will present a report of how the company was wound up and its
properties disposed of.
The Liquidator can be reached at:
Paul Vartelas
B. K. Taylor & Co
Certified Practising Accountants
8/608 St Kilda Road
Melbourne, Victoria 3004
Australia
About Castelplanio Pty
Castelplanio Pty Ltd -- trading as Ernies Iga Supermarket --
operates grocery stores.
The company is located in Victoria, Australia.
COMMSCOPE INC: Introduces Residential Structured Cabling System
---------------------------------------------------------------
CommScope, Inc., introduces a new professional connectivity
solution to the residential market with the addition of its
Uniprise Residential Network Solutions portfolio. Since in-home
networking now means more than simple access to the Internet,
its newest product, the Residential Cabling Distribution Center,
provides simultaneous distribution of high-speed data, voice and
video signals throughout the home, multi-family dwelling or
small commercial building.
"The innovative Residential Network Solution features our
revolutionary structured home and small office cabling system
that we believe will suit the needs of simple to highly complex
residential systems," said Mark Peterson, Senior Vice President,
Enterprise Global Marketing, CommScope. "Combining our advanced
engineering with a structured cabling approach that supports
virtually all standards and vendor-independent applications,
people can now experience the same networking abilities at home
that they use in their offices."
CommScope's Residential Network Solution supports a fully
incorporated applications environment for current and emerging
communication and video entertainment. Data, voice and video
signals converge in the residential cabling distribution center
and are then distributed to individual room outlets, allowing
cable, satellite, PCs, printers and fax machines to work in
concert using a single sophisticated system. The cabling
distribution center supports both basic and enhanced systems.
The basic system is pre-designed for voice and data
applications, while the enhanced system provides flexibility for
removing modules and allows plug-and-play simplicity for both
copper and fiber applications.
In addition, an eight-port switch gives users the ability to
network up to seven computers. Other features include complete
automation capabilities and central control of multiple
integrated home communication and video entertainment
applications, including telephone, video, data, CATV, Satellite,
audio distribution, HDTV, cable modem and even security systems.
The multi-media system supports Cat 5e, Cat 6 and fiber
connectivity while meeting EIA/TIA 60 CEBus and the TIA/EIA 570-
B Residential Wiring Standard. The fiber- based system accepts
all connector types-SC, ST and LC-and is easily upgradeable with
flexible patch panel modularity. Added security is available
with an optional locking kit.
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) --
http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research and
development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope has facilities in Australia, Brazil, China and
Ireland.
* * *
Standard & Poor's Rating Services removed its rating on Hickory,
North Carolina-based CommScope, Inc., from CreditWatch with
negative implications from CreditWatch, where they were placed
with negative implications on Aug. 7, 2006, and affirmed the
existing 'BB' corporate credit rating. S&P said the outlook is
stable.
COOPER COMPANIES: Discloses Planned US$1 Billion Refinancing
------------------------------------------------------------
The Cooper Companies, Inc. disclosed a proposed refinancing
which includes a US$650 million revolving credit facility and a
proposed private offering of US$350 million aggregate principal
amount of senior notes due 2015.
Cooper intends to use borrowings under the new revolving credit
facility and the net proceeds of the notes offering to repay in
full its US$250 million term loan and all outstanding borrowings
under its existing US$750 million syndicated bank credit
facility, which will be terminated. The new revolving credit
facility will be unsecured and will include customary guarantees
from domestic subsidiaries and negative pledges on assets.
The exact terms and timing of the new financing will depend on
market conditions and other factors.
Cooper's proposed new financing is designed to:
* lock in long-term capital with attractive pricing;
* provide enhanced strategic and operational flexibility with
fewer and less restrictive covenants;
* generate greater borrowing capacity with lower pricing and
lower fees and eliminate existing debt amortization.
"This new financing is intended to serve our financing needs for
the foreseeable future," Steven M. Neil, Cooper's Chief
Financial Officer said. "We are pleased to be working with a
bank syndicate that recognizes our improving financial position,
our favorable operational outlook and the significant progress
we have made integrating Ocular Sciences into CooperVision."
About Cooper Companies
The Cooper Companies, Inc. (NYSE:COO) --
http://www.coopercos.com/-- manufactures and markets specialty
healthcare products through its CooperVision and CooperSurgical
units. Corporate offices are in Lake Forest and Pleasanton,
Calif.
CooperVision -- http://www.coopervision.com/-- manufactures and
markets contact lenses and ophthalmic surgery products.
Headquartered in Lake Forest, Calif., it manufactures in
Albuquerque, N.M., Juana Diaz, Puerto Rico, Norfolk, Va.,
Rochester, N.Y., Adelaide, Australia, Hamble and Hampshire
England, Ligny-en-Barrios, France, Madrid, Spain and Toronto.
CooperSurgical -- http://www.coopersurgical.com/-- manufactures
and markets diagnostic products, surgical instruments and
accessories to the women's healthcare market. With headquarters
and manufacturing facilities in Trumbull, Conn., it also
manufactures in Pasadena, Calif., North Normandy, Ill., Fort
Atkinson, Wis., Montreal and Berlin.
Proclear(R) and Biomedics(R) are registered trademarks and
Biomedics XC(TM) and Biofinity(TM) are trademarks of The Cooper
Companies, Inc., and its subsidiaries or affiliates.
* * *
On Jan. 5, 2007, the Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services placed its
ratings on The Cooper Companies, including the 'BB' corporate
credit rating, on CreditWatch with negative implications.
"The CreditWatch listing reflects the company's weak fiscal 2006
fourth quarter and its downward revision in guidance for 2007,
the most recent in a succession of lowered expectations,"
explained Standard & Poor's credit analyst Cheryl Richer.
DIXON FIRE: Members Agree on Voluntary Wind-Up
----------------------------------------------
On Jan 5, 2007, the members of Dixon Fire Pty Ltd passed a
special resolution to voluntarily wind up the company's
operations and to distribute the proceeds of its assets
disposal.
In this regard, Priit Ari Taylor was appointed as liquidator.
The Liquidator can be reached at:
Priit Ari Taylor
Chartered Accountant
48 Greenhill Road
Wayville, South Australia 5034
Australia
About Dixon Fire
Dixon Fire Pty Ltd is an industrial launderer.
The company is located in New South Wales, Australia.
GEO GROUP: S&P Rates New US$515 Million Senior Facility at BB
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its loan and
recovery ratings to The GEO Group Inc.'s new US$515 million
senior secured credit facility. It comprises an upsized US$150
million revolving credit facility due 2010 and a proposed US$365
million term loan B due 2014. The facility was rated 'BB', with
a recovery rating of '1', indicating a high expectation for full
recovery of principal in the event of a payment default.
S&P has affirmed its 'BB-' corporate credit rating on GEO and
revised the rating outlook to negative from stable. Also, the
rating on GEO's senior unsecured debt rating was lowered to 'B'
from 'B+', reflecting unsecured lenders' less favorable recovery
position than the senior secured lenders under the company's pro
forma capital structure.
Accordingly, we have also lowered our preliminary senior
unsecured shelf debt rating to 'B' from 'B+'.
Proceeds from the $365 million term loan facility will be used
in conjunction with cash to fund the acquisition of CentraCore
Properties Trust, a correctional and detention facility REIT,
for about US$396.1 million plus related transaction fees. Pro
forma for the transaction, GEO is expected to have about US$515
million in total debt outstanding, excluding nonrecourse debt.
"The 'BB-' corporate credit rating reflects GEO's narrow
business focus, customer concentration, and highly leveraged
financial profile," said S&P credit analyst Mark Salierno.
"These factors are somewhat mitigated by the company's strong
market position in the highly regulated U.S. private
correctional facility management industry, as well as favorable
demographic trends."
When the transaction closes, GEO's capital structure will be
more highly leveraged and its credit measures will weaken,
despite a reduction in operating lease obligations. On a pro
forma basis, we expect lease- and pension-adjusted total debt to
EBITDA to be about 5.4x. We believe GEO will improve credit
measures in the near term by maintaining its strong operating
performance and by applying free cash flow to debt reduction.
The company has limited flexibility at the current rating level
for additional debt-financed acquisitions.
Headquartered in Boca Raton, Florida, The GEO Group, Inc. --
http://www.thegeogroupinc.com/-- is a world leader in the
delivery of correctional, detention, and residential treatment
services to federal, state, and local government agencies around
the globe. The company offers a turnkey approach that includes
design, construction, financing, and operations. The company
represents government clients in the United States, Australia,
South Africa, Canada, and the United Kingdom. GEO's worldwide
operations include 62 correctional and residential treatment
facilities with a total design capacity of approximately 51,000
beds, inclusive of facilities under management, facilities for
which GEO has received contract awards but which have not yet
opened, and inactive facilities.
The Geo Group, Inc.'s 8-1/4% Senior Notes due 2013 carry Moody's
Investors Service's and Standard & Poor's single-B rating.
GETTY: Extends 0.50% Deb. Consent Solicitation Until Jan. 24
------------------------------------------------------------
Getty Images, Inc., has extended the expiration time for its
consent solicitation from the holders of record of its
outstanding 0.50% Convertible Subordinated Debentures, Series B
due 2023 in the aggregate principal amount of US$265 million.
The Consent Solicitation, which was scheduled to expire at 5:00
p.m., New York City time, on Jan. 17, 2007, will now expire at
5:00 p.m., New York City time, on Jan. 24, 2007. Holders may
deliver their consents to the Tabulation Agent at any time
before the expiration time, as extended. All other terms and
conditions of the Consent Solicitation remain unchanged.
The Consent Solicitation is being made upon the terms, and is
subject to the conditions, set forth in the Consent Solicitation
Statement, dated Jan. 4, 2007. The proposed amendments and
waiver require the consent of holders of a majority in aggregate
principal amount of the outstanding Debentures.
Getty Images has retained Goldman, Sachs & Co. to serve as the
Solicitation Agent and D.F. King & Co., Inc. to serve as
Information Agent and Tabulation Agent for the Consent
Solicitation. Requests for documents may be made directly to:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York
Tel: 800-488-8095 (toll free)
212-269-5550 (collect)
Questions regarding the solicitation of consents may be directed
to:
Goldman, Sachs & Co.
Attn: Credit Liability Management Group
Tel: 800-828-3182 (toll free)
212-357-0775 (collect)
Headquartered in Seattle, Washington, Getty Images, Inc. --
http://corporate.gettyimages.com/-- creates and distributes
visual content. The company has corporate offices in Australia,
the United Kingdom and Argentina.
* * *
Moody's Investors Service upgraded the credit ratings of Getty
Images, Inc. and changed the ratings outlook to stable from
positive. The upgrade in the corporate family rating to Ba1
from Ba2 reflected Getty's leading market position, improving
credit metrics, impressive operating margins and good secular
growth trends in the stock imagery market. Moody's also
upgraded its rating on the company's US$265 million series B
convertible subordinated notes due 2023, to Ba2 from Ba3.
On December 11, 1006, the TCR-LA reported that Standard & Poor's
Ratings Services lowered its ratings on Getty Images, including
lowering the corporate credit rating to 'B+' from 'BB', and
placed the ratings on CreditWatch with developing implications.
INVESTEC BANK (AUSTRALIA): Fitch Affirms Individual Rating at C
---------------------------------------------------------------
On January 25, 2007, Fitch Ratings revised the Outlook on
Investec Bank (Australia) Limited's Long-term Issuer Default
rating to Positive from Stable. At the same time, the agency
affirmed IBAL's ratings at IDR 'BBB', Short-term 'F3',
Individual 'C' and Support '2'. This follows a similar Outlook
revision on IBAL's parent, Investec Bank UK ("IBUK";
'BBB+'/Positive/'F2').
IBAL's ratings reflect the potential for support from IBUK and
therefore any changes to IBUK's IDR is likely to have an impact
on IBAL's ratings. IBUK's revised Outlook reflects the strong
improvement in its profitability in the past three years and the
increasing depth and breadth of its franchise. IBUK's ratings
also reflect the bank's good asset quality and capitalisation.
An upgrade to IBUK's IDR would be likely on sustained strong
performance and continued sound asset quality as its rapidly
expanded loan book seasons.
J & L EDWARDS: Members Decide to Close Business
-----------------------------------------------
On Dec. 29, 2006, the members of J & L Edwards Pty Ltd resolved
to voluntarily wind up the company's operations.
Accordingly, John Georgakis was appointed as liquidator.
The Liquidator can be reached at:
John Georgakis
Level 27, 8 Exhibition Street
Melbourne, Victoria 3000
Australia
Telephone: 03 9288 8000
About J & L Edwards
J & L Edwards Pty Ltd is a distributor of motor vehicle supplies
and new parts.
The company is located in New South Wales, Australia.
MULLALEY PROPERTIES: Taps Receivers and Managers
------------------------------------------------
On Jan. 12, 2007, Perpetual Nominees Ltd appointed Stephen James
Parbery and Christopher Clarke Hill as the receivers and
managers of Mullaley Properties Pty Ltd.
The Receivers and Managers can be reached at:
Stephen James Parbery
Christopher Clarke Hill
PPB Chartered Accountants
Level 46 MLC Centre
19 Martin Place
Sydney, New South Wales 2000
Australia
About Mullaley Properties
Mullaley Properties Pty Limited is land subdivider and
developer, except cemeteries.
The company is located in New South Wales, Australia.
MULTIPLEX GROUP: May Receive Possible Acquisition Proposal
----------------------------------------------------------
Multiplex Group has received a request from a third party to
commence discussions on a confidential basis which may lead to a
proposal being put in relation to the acquisition of Multiplex
securities and assets. Multiplex notes that it is unaware of
details of any possible proposal. The company emphasizes that
there is no guarantee that any proposal will be forthcoming. It
is likely that any discussions will occur within the next few
weeks.
The company relates that the third party concerned has had
preliminary discussions with Roberts Family Nominees -- the
Group's largest securityholder. According to RFN, there is no
firm proposal in those discussions and it is not clear whether
there will be any proposal.
However, RFN has requested that if the third party has a
proposal that it be submitted to the Board of Multiplex. If any
proposal put to the Multiplex Board involves RFN, RFN will
consider it.
About Multiplex
Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its
revenue from property funds management, construction, property
development, and facilities management. The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East. In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion. Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.
Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties. Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down. In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits. This started a series of profit downgrades throughout
2005.
In May 2005, Multiplex admitted that its troubled Wembley
Stadium construction project may end up with a multimillion
loss. As of February 2006, the Company is faced with liquidity
crisis after posting a massive AU$474 million loss on Wembley.
The Troubled Company Reporter - Asia Pacific reported on Aug.
18, 2006, that Multiplex Group's financial results for the year
ended June 30, 2006, noted that the Wembley project in the
United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss. The project loss position has
remained unchanged since December 31, 2005.
PEABODY ENERGY: Declares Quarterly Dividend of US$0.06 Per Share
----------------------------------------------------------------
Peabody Energy's board of directors today declared a regular
quarterly dividend on its common stock of US$0.06 per share.
The dividend is payable on Feb. 27, 2007, to holders of record
on Feb. 6, 2007.
Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and U.S.US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Australia.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 20, 2006, Standard & Poor's Ratings Services assigned its
'B' rating to Peabody's US$500-million convertible junior
subordinated debentures.
On Dec. 14, 2006, Moody's Investors Service assigned Peabody
Energy Corporation's proposed US$500-million convertible junior
subordinated debentures a rating of Ba2. At the same time,
Moody's affirmed Peabody's Ba1 corporate family rating and the
Ba1 senior unsecured rating on its existing revolver, term loan
and notes. The ratings reflect the overall probability of
default of the company, to which Moody's affirms a PDR of Ba1.
On Dec. 13, 2006, Fitch Ratings rated the US$500-million
debentures due 2066 at 'BB-'.
PEABODY ENERGY: Appoints David James as Director of Trading
-----------------------------------------------------------
Peabody Energy disclosed that its Coaltrade, LLC, subsidiary has
named David A. James as Director of Trading, reporting to
COALTRADE President Stephen Miller. Mr. James will be
responsible for developing and implementing coal trading
strategies, coordinating the corporate emission allowance
position, and developing structured transactions. He will be
based in Peabody's St. Louis office.
Mr. James spent more than 17 years with Ameren, including the
last seven years in coal procurement and trading in the Ameren
Fuels and Services Department. He holds a Bachelor of Science
from Illinois State University, Normal, Ill., and a Master of
Business Administration from Southern Illinois University
Edwardsville. Mr. James currently serves as a director of the
Coal Trading Association.
Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and U.S.US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Australia.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 20, 2006, Standard & Poor's Ratings Services assigned its
'B' rating to Peabody's US$500-million convertible junior
subordinated debentures.
On Dec. 14, 2006, Moody's Investors Service assigned Peabody
Energy Corporation's proposed US$500-million convertible junior
subordinated debentures a rating of Ba2. At the same time,
Moody's affirmed Peabody's Ba1 corporate family rating and the
Ba1 senior unsecured rating on its existing revolver, term loan
and notes. The ratings reflect the overall probability of
default of the company, to which Moody's affirms a PDR of Ba1.
On Dec. 13, 2006, Fitch Ratings rated the US$500-million
debentures due 2066 at 'BB-'.
PINEFAB PTY: Undergoes Voluntary Wind-Up
----------------------------------------
At an extraordinary general meeting held on Jan. 10, 2007, the
members of Pinefab Pty Ltd resolved to voluntarily wind up the
company's operations.
Consequently, Richard Herbert Judson was appointed liquidator at
the creditors' meeting held that same day.
The Liquidator can be reached at:
Richard Herbert Judson
Judson & Co
Chartered Accountants
Suite 4, Level 1, 10 Park Road
Cheltenham, Victoria 3192
Australia
Telephone: 9585 4155
About Pinefab Pty
Pinefab Pty Ltd -- trading as South East Timber -- operates
manufacturing industries.
The company is located in Victoria, Australia.
REDPRAIRIE CORP: Moody's Holds B1 Rating on US$190 Million Loans
----------------------------------------------------------------
Moody's Investors Service affirmed RedPrairie Corporation
ratings after the company's disclosure of its intentions to
offer a one time debt financed US$25 million dividend to its
equity sponsors.
The new debt will increase the size of RedPrairie's second lien
borrowings from US$45 million to US$70 million. Moody's notes
that this additional financing when coupled with RedPrairie's
previously stated intentions to increase the size of its first
lien borrowings to US$170 million for the acquisition of
StorePerform does not change the company's B2 corporate family
rating, the individual loan ratings, or its stable outlook.
However, Moody's notes that the increase in leverage to
approximately 5.2x places the company closer to the lower end of
the B2 rating category. Additionally, the company is following
up a relatively soft third quarter and does not yet have audited
financials available for the fourth quarter.
These ratings are affirmed:
-- Corporate Family Rating, B2
-- US$20 million Senior Secured Revolving Credit Facility due
in 5 years, B1, LGD3, 33%
-- US$170 million Senior Secured First Lien due in 6 years,
B1, LGD3, 33%
-- US$70 million Senior Secured Second Lien due in 6.5 years,
Caa1, LGD5, 84%
Headquartered in Waukesha, Wisconsin, RedPrairie Corporation --
http://www.redprairie.com/-- is a provider of warehouse
management, labor management and transportation management
software solutions.
The company has locations in Australia, China, Denmark, and the
United Kingdom, among others.
REDPRAIRIE CORP: Moody's Junks US$70-Mln Sr. Sec. Lien Notes
------------------------------------------------------------
Moody's Investors Service affirmed RedPrairie Corp. ratings
following the company's announcement of its intentions to offer
a one-time debt financed US$25 million dividend to its equity
sponsors.
The new debt will increase the size of RedPrairie's second lien
borrowings from US$45 million to US$70 million.
Moody's notes that this additional financing when coupled with
RedPrairie's previously stated intentions to increase the size
of its first lien borrowings to US$170 million for the
acquisition of StorePerform does not change the company's B2
corporate family rating, the individual loan ratings, or its
stable outlook. However, Moody's notes that the increase in
leverage to approximately 5.2x places the company closer to the
lower end of the B2 rating category. Additionally, the company
is following up a relatively soft third quarter and does not yet
have audited financials available for the fourth quarter.
The following ratings are affirmed:
-- Corporate Family Rating, B2
-- US$20-million Senior Secured Revolving Credit Facility due
5yr, B1, LGD3, 33%
-- US$170-million Senior Secured First Lien due 6 yr, B1,
LGD3, 33%
-- US$70 million Senior Secured Second Lien due 6.5yr, Caa1,
LGD5, 84%
Headquartered in Waukesha, Wisconsin, RedPrairie Corporation --
http://www.redprairie.com/-- is a provider of warehouse
management, labor management and transportation management
software solutions.
The company has locations in Australia, China, Denmark, and the
United Kingdom, among others.
REDPRAIRIE CORP: Narrow Product Focus Cues S&P to Affirm Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Waukesha, Wisconsin-based RedPrairie Corp.
The outlook is stable.
Standard & Poor's also affirmed the existing ratings on the
senior secured first-lien and second-lien bank loans, including
the proposed US$25 million add-on to the existing second-lien
facility, to provide a dividend to the equity sponsors. While
there is capacity within the rating for the dividend, it limits
the company's ability to pursue further growth from acquisitions
without impacting credit quality.
"The ratings on RedPrairie reflect its narrow product focus
within a highly competitive and consolidating marketplace,
moderately acquisitive growth strategy, and high debt leverage,"
said Standard & Poor's credit analyst Stephanie Crane
Mergenthaler.
These are only partly offset by a largely recurring revenue
base, supported by a broad customer base and relatively stable
operating margins.
RedPrairie is a global provider of supply chain execution
software and services for warehouse, labor, and transportation
management activities, coordinating interaction between
manufacturers, distributors, wholesalers and retailers. Pro
forma for the proposed add-on to the second lien term loan,
RedPrairie will have approximately US$240 million of operating
lease-adjusted total debt.
The market for supply chain execution software is highly
fragmented, with no clear market leader. In addition to
competing with other supply chain specialist vendors such as
Manhattan Associates, RedPrairie also competes with tier one
players such as Oracle and SAP, each of whom possesses greater
scale and broader product breadth, in addition to being much
better capitalized. A relatively broad and diverse customer
base, along with retention rates in the high 90% area, support
revenue visibility over the intermediate term; however, a
continued focus on improving product functionality and servicing
capabilities will be a key to RedPrairie maintaining, or
improving, its competitive position over the longer term.
Headquartered in Waukesha, Wisconsin, RedPrairie Corporation --
http://www.redprairie.com/-- is a provider of warehouse
management, labor management and transportation management
software solutions.
The company has locations in Australia, China, Denmark, and the
United Kingdom, among others.
S.C.I. ACQUISITIONS: Members to Receive Wind-Up Report
------------------------------------------------------
The members of S.C.I. Acquisitions Pty Ltd will meet on Feb. 16,
2007, at 10:30 a.m., to receive the liquidators' report
regarding the company's wind-up proceedings and property
disposal exercises.
As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of its operations on Sept. 12, 2006.
The liquidators can be reached at:
Salvatore Algeri
Timothy B. Norman
180 Lonsdale Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9208 7000
About S.C.I. Acquisitions
S.C.I. Acquisitions Pty Ltd is an investor relation company.
The company is located in Victoria, Australia.
SOFT CENTRE: Members and Creditors' Meeting Set on February 26
--------------------------------------------------------------
The members and creditors of Soft Centre Australia Pty Ltd will
meet on Feb. 26, 2007, at 11:30 a.m., to receive the
liquidator's account of the company's wind-up proceedings and
property disposal activities.
The Troubled Company Reporter - Asia Pacific has reported that
the company's creditors resolved to wind up its operations on
Dec. 15, 2005.
The liquidator can be reached at:
B. A. Secatore
Cor Cordis
Chartered Accountants
406 Collins Street
Melbourne, Victoria 3000
Australia
About Soft Centre
Soft Centre Australia Pty Ltd is engaged with software business.
The company is located in Victoria, Australia.
TRANSAX INT: Inks US$5.9MM Letter of Intent to Sell MedLink Unit
----------------------------------------------------------------
Transax International Limited has signed a Letter of Intent with
CBGS -- Gestao e Processamento de Infomacoes de Saude Ltda. to
sell its wholly owned Brazil subsidiary Medlink Conectividade em
Saude Ltda. and related intellectual property held by its
subsidiary Medlink Technologies, Inc., for BRL12.625 million or
US$5.9 million.
CBGS is a company created to provide technology services to
companies operating in the health sector in Brazil. CBGS is a
subsidiary of Companhia Brasileira de Meios de Pagamento. CBMP
is the leading credit card payment processor in Brazil.
Under specific terms of the Letter of Intent CBGS will pay all
cash and retain operating control of Medlink's assets and
intellectual property rights in Brazil. The transaction is
subject to operating, financial and legal due diligence, any
closing balance sheet adjustments, and signing of definitive
agreements which both parties anticipate completing by Feb. 28,
2007.
Stephen Walters, President & CEO of Transax, commented, "We are
pleased to have been able to reach an agreement with CBGS in
monetizing our Brazilian operations. Transax will continue to
retain certain licensing rights outside of Latin America and IP
rights for the USA market at no cost. This transaction will
also significantly strengthen our Balance Sheet. As a result we
intend to pay off all outstanding debts, including the US$1.6
million preferred equity investment by Cornell Capital, as well
as drastically increasing our cash position. Additionally, we
will evaluate future business opportunities and update investors
as warranted."
Going Concern Doubt
Moore Stephens, P.C., in New York, raised substantial doubt
about Transax International Limited's ability to continue as a
going concern after auditing the Company's consolidated
financial statements for the year ended Dec. 31, 2005. The
auditor pointed to the Company's losses, and working capital and
stockholders' deficiencies.
About Transax International
Based in Miami, Florida, Transax International Limited (OTCBB:
TNSX) -- http://www.transax.com/-- provides health information
management systems to hospitals, physicians and health insurance
companies. The company's subsidiaries, TDS Telecommunication
Data Systems LTDA provides services in Brazil; Transax Australia
Pty Ltd. operates in Australia; and Medlink Technologies Inc.
initiates research and development.
* * *
Transax International Limited's balance sheet at June 30, 2006,
showed a US$3,717,316 total stockholders' deficit from total
assets of US$2,196,551 and total liabilities of US$5,913,867.
Transax International's balance sheet at June 30, 2006, also
showed negative working capital with US$1,085,530 in total
current assets and US$4,943,668 in total current liabilities.
UNIVERSAL COMPRESSION: Acquires B.T. Engineering
------------------------------------------------
Universal Compression Holdings, Inc., has acquired B.T.
Engineering Pte Ltd, a Singapore-based fabricator of oil and
gas, petrochemical, marine and offshore equipment, including
pressure vessels, FPSO (floating production, storage and
offloading) process modules, terminal buoys, turrets, natural
gas compression units and related equipment. BTE currently has
approximately 400 full-time and contract employees and a
fabrication yard of approximately 45,000 square meters,
including a workshop facility of approximately 7,000 square
meters, and 270 meters of waterfront.
"The BTE operation is an excellent addition to our international
activities and a strategic complement to our existing
fabrication capabilities," said Brad Childers, Senior Vice
President and President of Universal's International Division.
"With this transaction, Universal has expanded its product
offering to meet a wider range of production-related customer
requirements and added a centrally-located operation for the
cost-efficient fabrication of compressor equipment for Asia-
Pacific and other markets."
"BTE is pleased to be joining forces with Universal
Compression," said B.T. Gay, BTE's founder and Chief Executive
Officer. "We will continue our commitment to provide quality
fabrication products and services to BTE's existing customers
and traditional markets while also working to expand the market
penetration of Universal's compression business lines."
"We are excited about this opportunity to expand our fabrication
operations," said Stephen A. Snider, Universal's Chairman,
President and Chief Executive Officer. "We look forward to
working with the outstanding BTE management, administrative and
fabrication employee team as we continue to seek growth
opportunities in key international markets. In conjunction with
this expansion of our global fabrication capacity, we plan to
establish the regional headquarters for our Asia-Pacific
operations in Singapore. Universal's current Asia-Pacific
business includes natural gas compressor sales and service
operations in Australia, China, Indonesia and Thailand."
Headquartered in Houston, Texas, Universal Compression, Inc. --
http://www.universalcompression.com/-- provides natural gas
compression equipment and services, primarily to the energy
industry in the United States, as well as in Canada, Venezuela,
Argentina, Columbia, and Australia.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
November 27, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on Universal Compression Holdings Inc.
to 'BB' from 'BB-'. At the same time, Standard & Poor's
assigned its 'BB' rating and '3' recovery rating to Universal's
US$500 million revolving credit facility. The company had
approximately US$807 million in debt outstanding following the
IPO of its subsidiary Universal Compression Partners L.P.
XILLIX TECH: Court Extends CCAA Protection Until February 5
-----------------------------------------------------------
The British Columbia Supreme Court has extended, until Feb. 5,
2007, Xillix Technologies Corporation's period of protection
from creditors under the Companies' Creditors Arrangement Act.
The Court's order, which provides an additional 31 days of
protection, will provide the company's management with more time
to develop and implement a reorganization plan.
The company originally filed for protection on Oct. 13, 2006, as
reported in the Troubled Company Reporter on Oct. 25, 2006.
PricewaterhouseCoopers has been appointed as Monitor to assist
the company in connection with its reorganization.
About Xillix Technologies
Xillix Technologies Corp. (TSX:XLX) -- http://www.xillix.com/--
is a Canadian medical device company and is known for using
fluorescence endoscopy for improved cancer detection. The
company's currently approved device, Onco-LIFETM, incorporates
fluorescence and white-light endoscopy in a single device that
has been developed for the detection and localization of lung
and gastrointestinal cancers. Onco-LIFE is approved for sale in
the United States for the lung application and in Europe,
Canada, and Australia for both lung and gastrointestinal
applications. The company also recently developed a new product,
LIFE LuminusTM, designed to allow fluorescence imaging of the
colon using conventional video endoscope technology.
* * *
In its financial statements for the quarterly period ended June
30, 2006, Xillix Technologies reports a shareholders' deficit of
US$89,689,422 at June 30, 2006. The company discloses that the
losses have been primarily funded by the issuance of debt and
equity, and their ability to continue as a going concern is
uncertain and dependent upon its ability to achieve profitable
operations, to obtain additional capital and on the continued
support of its shareholders.
================================
C H I N A & H O N G K O N G
================================
AFK HONG KONG: Schedules First Meetings on January 30
-----------------------------------------------------
AFK Hong Kong Ltd will hold meetings for its contributories and
creditors on Jan. 30, 2007, at 2:30 p.m. and 3:30 p.m.,
respectively, at Level 5, One Pacific Place in 88 Queensway,
Hong Kong.
According to the Troubled Company Reporter - Asia Pacific,
Cosimo Borrelli and Grace Jacqueline Walsh were named as the
company's liquidators on Aug. 18, 2006.
The Joint and Several Liquidators can be reached at:
Cosimo Borrelli
Grace Jacqueline Walsh
5/F, Allied Kajima Building
138 Gloucester Road
Wanchai, Hong Kong
CHAODA MODERN: Fiscal 2006 Profit Reaches CNY1.4 Billion
--------------------------------------------------------
Chaoda Modern Agriculture (Holdings) Ltd. records a profit of
CNY1.36 billion for the full fiscal year ending June 30, 2006,
slightly higher than the CNY1.30 billion it recorded for the
previous year, the company said in its annual report.
For the period in review, turnover amounted to CNY2.80 billion,
while cost of sales reached CNY904.15 million, giving the
company a gross profit of CNY1.89 billion.
* * *
Headquartered in Wanchai, Hong Kong, Chaoda Modern Agriculture
(Holdings) Ltd. --
http://www.chaoda.com/english001/cddc/index.htm-- through its
subsidiaries, is engaged in growing, distribution and sale of
crops, breeding and sales of livestock in the People's Republic
of China. It is also engaged in investment holding and agency
services. The Company's directly held subsidiaries include
Timor Enterprise Limited, Insight Decision Limited, Huge Market
Investments Limited, Worthy Year Investments Limited and Great
Challenge Developments Limited. Some of the Company's
indirectly held subsidiaries include Fuzhou Chaoda Modern
Agriculture Development Company Limited, Fujian Chaoda Livestock
Company Limited and Chaoda Vegetable & Fruits Limited.
The Troubled Company Reporter - Asia Pacific reported that on
Dec. 11, 2006, Moody's Investors Service placed the Ba3
corporate family rating and Ba3 foreign currency debt rating of
Chaoda Modern Agriculture Ltd on review for possible upgrade.
The TCR-AP also reported that on July 26, 2006, Standard &
Poor's Ratings Services said that its rating on Chaoda Modern
Agriculture (Holdings) Ltd (BB/Stable/--) would not be affected
by a company announcement that it is planning to invest in Hong
Kong-listed Innomaxx Biotechnology Group Ltd.
CRYSTAL JADE: Court Appoints Joint Liquidators
----------------------------------------------
On Dec. 22, 2006, the High Court of Hong Kong appointed Bruno
Arboit and Simon Richard Blade as joint and several liquidators
of Crystal Jade Restaurant Ltd.
The Joint and Several Liquidators can be reached at:
Bruno Arboit
Simon Richard Blade
Units 1203-13, 12/F, China Merchants Tower
Shun Tak Centre
168-200 Connaught Road, Central
Hong Kong
CYBERTRONICS (HK): Members to Receive Wind-Up Report
----------------------------------------------------
The members of Cybertronics (Hong Kong) Ltd will meet on
Feb. 23, 2007, at 10:30 a.m., to receive the liquidators' report
regarding the company's wind-up proceedings.
As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced a wind-up of its operations on Sept. 18, 2006.
The joint and several liquidators can be reached at:
Andrew C. C. Ma
Felix K. L. Lee
19/F, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
FOREGROUND SECURITIES: Will Pay Dividend on February 1
------------------------------------------------------
Foreground Securities Company Ltd will pay its third ordinary
dividend of 5% to its creditors on Feb. 1, 2007.
The payment will be administered at 32nd Floor, One Pacific
Place in 88 Queensway, Hong Kong.
According to the Troubled Company Reporter - Asia Pacific, the
company's creditors were required to submit their proofs of debt
before Nov. 20, 2006.
The liquidators can be reached at:
Joseph Lo Kin Ching
Dermot Agnew
26/F, Wing On Centre
111 Connaught Road Central
Hong Kong
HONGKONG PHARMA: Posts HK$39.4M Net Loss in 1/H Ended Sept. '06
---------------------------------------------------------------
Hong Kong Pharmaceuticals Holdings Ltd incurred HK$39.44 million
net loss on HK$22.55 million revenues in the first half ended
September 2006 as compared with HK$666,000 net profit on
HK$21.57 million revenues gained in the corresponding period in
2005.
As of end-September 2006, the company's balance sheet showed
strained liquidity with current assets of HK$30.70 million
available to pay HK$148.82 million in current liabilities.
In addition, its balance sheet also showed solvency problem with
total assets of HK$31.91 million and total liabilities of
HK$149.11 million resulting a capital deficit of HK$117.20
million.
* * *
Hong Kong Pharmaceutical Holdings Limited --
http://www.hkpharma.com.hk/-- is an investment holding company.
The Company's segments include the sum yung and pharmaceutical
products segment sells Chinese and other medicines,
pharmaceutical products, health products and dried seafood
products to wholesalers and retailers; the biotechnological and
transgenic products segment engages in the production and sale
of biotechnological and transgenic products; the property
investment segment engages in investment property holding and
receives rental income from properties located in Hong Kong and
Mainland China, and the corporate and others segment comprises
the provision of Chinese clinical services, the trading of
marketable securities and corporate income and expense items.
The company is currently working out a restructuring proposal.
Going Concern Doubt
On August 17, 2006, Moore Stephens, the company's independent
auditors raised a going concern issue after auditing the
company's 2006 annual report. The auditor said that the
consolidated financial statements show a net deficiency of
amounts attributable to equity holders of the company of
HK$77,758,000 at March 31, 2006. Further, in the opinion of the
Provisional Liquidators, the group and the company would not be
a going concern at the balance sheet date if the Restructuring
Proposal is not successfully implemented.
* * *
As of September 30, 2006, the company had a consolidated capital
deficiency amounting to HK$117.20 million.
LOULAN HOLDINGS: Receives Delisting Notice from SEHK
----------------------------------------------------
Loulan Holdings Ltd has received a delisting notice dated Dec.
1, 2006, from the Stock Exchange of Hong Kong Ltd.
The notice states that the bourse intends to delist the
company's securities from its trading lists on May 1, 2007,
exactly six months from the date of the notice.
Loulan Holdings, however, was given until May 1, to submit a
viable resumption proposal, which could make the bourse cancel
the delisting procedure it intends to commence.
A viable resumption proposal, according to the bourse
guidelines, must demonstrate that the company, directly or
indirectly, has a sufficient level of operations and management
expertise on its core business. The proposal will also need to
demonstrate that the company has adequate financial reporting
and internal control systems and procedures to be able to meet
its obligations under the bourse's listing rules.
Shares of the company had already been suspended from trading
since Jan. 27, 2006, and no viable resumption proposal was
submitted before the bourse.
The bourse also noted that the publication of the company's
financial reports for the year ended Dec. 31, 2005, the first
quarter ended March 31, 2006, and the interim period ended
June 30, 2006, as well as the quarter ended Sept. 30, 2006, were
still unpublished.
* * *
Loulan Holdings Limited and its subsidiaries are principally
engaged in the production, sales and distribution of alcoholic
drinks, principally wines under the Company's own brand name,
Loulan. The Company operates in two main segments: selling of
self-manufactured wines and distribution of wine products.
Loulan Holdings Limited's subsidiaries include Powerful Kingdom
Inc. (wholly owned), Xinjiang Loulan Wine Co., Ltd (90% owned),
Crownhead Limited (wholly owned), Vision Spirit Investment
Limited (wholly owned) and Shanghai Shen Hong (wholly owned).
The Company operates in Hong Kong and Mainland China.
The Troubled Company Reporter - Asia Pacific reported on January
19, 2007 that the company has a US$1.04 million capital deficit.
PLUS HOLDINGS: Posts HK$1.4 Million Net Loss in Fiscal Year 2006
----------------------------------------------------------------
Plus Holdings Ltd incurred a net loss of HK$1.4 million on
HK$77.23 million revenues earned in the fiscal year ended
March 31, 2006, as compared with a net loss of HK$13.70 million
on HK$137.28 million revenues recorded in 2005.
The company's balance sheet as of end-March 2006, showed
strained liquidity with HK$850,000 current assets available to
pay HK$43.21 million current liabilities.
In addition, Plus Holdings' balance sheet showed solvency
problem with total assets of HK$860,000 and total liabilities of
HK$43.21 million. Shareholders' deficit in the company as of
end-March 2006, reached HK$42.35 million.
* * *
Headquartered in Hong Kong, Plus Holdings Limited is an
investment holding company. The company is organized into three
operating divisions: sales and integration services, services
income and contract income. Sales and integration includes
income from sales and services, provision of integration
services of computer and communication systems. Services income
includes income from design, consultation, production of
information system software and management training services.
Contract income includes income in connection with the sale of
communication systems equipment for intelligent buildings and
provision of installation services. The company's subsidiaries
include Beijing HollyBridge System Integration Company Limited,
Chun Tai (BVI) Limited, Full Hope Enterprises Limited, Holy
(Hong Kong) Universal Limited, Plus Financial Distribution
Holdings Limited and Telecom Plus Investment Limited.
Going Concern Doubt
Morison Heng, the company's independent auditor was not able to
assess the validity of the board of directors' assumptions that
the group is a going concern. The auditors said that for the
year ended March 31, 2006, the group reported a loss
attributable to shareholders of HK$1,210,000. As at March 31,
2006, the group had a capital deficiency of HK$25,956,000 and
net current liabilities of HK$29,101,000. During the year, the
group had overdue borrowings totaling HK$16,886,000. In
addition, there are various actions involving litigation against
the group from various parties, including suppliers, leasing
company and others.
Subsequent to the balance sheet date, a finance company has
petitioned to the Court in Hong Kong for the winding up of the
company. The directors are still negotiating with the
bondholder, creditors and litigation parties to reschedule the
repayment terms of the existing borrowings.
RADIER LIMITED: Contributories & Creditors to Meet on January 29
----------------------------------------------------------------
The contributories and creditors of Radier Ltd will meet on
Jan. 29, 2007, at 10:00 a.m. and 10:30 a.m., respectively, at
18th Floor, Two International Finance Centre, 8 Finance Street,
in Central, Hong Kong.
The Troubled Company Reporter - Asia Pacific has reported that
the company posted a notice of preferential payments on Dec. 17,
2004.
The joint liquidators can be reached at:
Stephen Liu Yiu Keung
Yeo Boon Ann
17/F, Hutchison House
10 HarCourt Road, Central
Hong Kong
SMI PUBLISHING: Year Ended-March 2006 Balance Sheet Upside Down
---------------------------------------------------------------
SMI Publishing Group Ltd filed before the Stock Exchange of Hong
Kong Ltd its audited financial report for the year ended
March 31, 2006.
The company incurred net loss of HK$100.97 million on HK$84.05
million revenues gained in the financial year ended March 31,
2006, compared with HK$100.70 million net loss on HK$108.7
million revenues recorded in 2005.
SMI's balance sheet for the year ended-March 2006, showed
liquidity problems with current assets of HK$11.46 million
available to pay HK$40.02 million in current liabilities.
In addition, the company's balance sheet went upside down with
total assets of HK$49.89 million and total liabilities of
HK$195.55 million. The company's capital deficiency was
HK$145.65 million.
A full text-copy of the company's financial statement for the
year ended March 2006, can be viewed for free at:
http://bankrupt.com/misc/smipub-ay-2006.pdf
* * *
SMI Publishing Group Limited -- http://www.singpao.com/-- is an
investment holding company. Some of the Company's subsidiaries
include First Brilliant Limited, Actiwater Resources Limited,
Designate Success Lmited, Somatic International Limited and
Optima Media Holding Limited.
Going Concern Doubt
CCIF CPA Ltd., the company's independent auditors, expressed a
fundamental uncertainty relating to the company's going concern
basis, citing that as of March 31, 2006, the group had net
liabilities of approximately HK$146 million. The auditors add
that the going concern depends on the continuing financial
support from its substantial shareholder, the outcome of
licenses granted and generation of royalty income.
* Hong Kong Stock Exchange Delists 24 Companies in 2006
-------------------------------------------------------
The Stock Exchange of Hong Kong Limited, a wholly owned
subsidiary of Hong Kong Exchanges and Clearing Limited, has
delisted a total of 24 companies in 2006, the bourse said in its
Report on Initial Public Offering Applications, Delisting
Proceedings and Suspensions.
The Dec. 29, 2006 report reveals 62 companies were listed in
2006, 56 of which were listed on the main board. As at Dec. 29,
2006, listed companies totaled 1,173.
Main Board GEM Total
---------- ---------- ----------
Newly-listed companies
(since January 1, 2006) 56 6 62
Delisted companies
(since January 1, 2006) 15 9 24
Main Board companies at
the third stage of
delisting
(as of December 29, 2006) 6 N/A 6
GEM companies that has
been served a notice of
intention of cancellation
of listing
(as of December 29, 2006) N/A 8 8
Number of companies in
suspension for more than
10 business days
(as of December 29, 2006) 41 23 64
Total number of listed
companies
(as of December 29, 2006) 975 198 1,173
New Applications Accepted
Main Board GEM Total
---------- ---------- ----------
a. December 2006 8 0 8
b. 2006 Year-to-date 85 3 88
Approvals in principle granted by the Listing Committee
Main Board GEM Total
---------- ---------- ----------
a. December 2006 2 0 2
b. 2006 Year-to-date 63 6 69
Active applications (as at 29 December 2006)
1. Under processing (based on listing application form
accepted):
Main Board GEM Total
---------- ---------- ----------
a. New applications
accepted since
January 1, 2006 28 1 29
---------- ---------- ----------
2. Approval in principle granted by the Listing Committee but
not yet listed
Main Board GEM Total
---------- ---------- ----------
a. Approvals granted
since January 2006 6 0 6
---------- ---------- ----------
Total 34 1 35
Inactive applications (since 1 January 2006)
1. Lapsed
Main Board GEM Total
---------- ---------- ----------
a. Approval in principle
granted by the Listing
Committee but not yet
Listed 11 1 12
b. Others 19 3 22
2. Rejected 5 2 7
3. Withdrawn 4 0 4
4. Renewals (17) (3) (20)
Total 22 3 25
=========
I N D I A
=========
AFFILIATED COMPUTER: Earns US$61.4 Mil. in Qtr. Ended Sept. 30
--------------------------------------------------------------
Affiliated Computer Services Inc. reported US$61.4 million of
net income on US$1.4 billion of revenues for the first quarter
ended Sept. 30, 2006, compared with US$93.4 million of net
income on US$1.3 billion of revenues for the same period in
2005.
Internal revenue growth for the first quarter of fiscal year
2007 was 4% and the remainder of the revenue growth was related
to acquisitions. Excluding revenues related to divested
operations, revenues increased US$127.6 million, or 10% from the
first quarter of fiscal year 2006.
The Commercial segment, which represents 61% of consolidated
revenue for the first quarter of fiscal year 2007, increased
US$75.7 million, or 10%, to US$841.7 million in the first
quarter of fiscal year 2007. Internal revenue growth was 6%.
Revenue in the Government segment, which represents 39% of
consolidated revenue for the first quarter of fiscal year 2007,
decreased US$1.2 million, to US$543.7 million in the first
quarter of fiscal year 2007 compared to the same period last
year. Revenue growth from acquisitions was 9% primarily due to
the Transport Revenue acquisition completed in the second
quarter of fiscal year 2006. Excluding revenues related to
divested operations, revenues increased US$51.9 million, or 10%
from the first quarter of fiscal year 2006. Internal revenue
growth was 1%.
Operating income decreased US$13.3 million, or 8.7% in the first
quarter of fiscal year 2007 compared to the prior year.
Interest expense increased US$33.3 million, to US$46 million
primarily due to interest expense on cash borrowed to finance
the company's share repurchase programs. Interest expense also
includes US$2.6 million in charges related to a waiver fee on
the company's Credit Facility in the first quarter of fiscal
year 2007.
At Sept. 30, 2006, the company's balance sheet showed US$5.6
billion in total assets, US$3.8 billion in total liabilities,
and US$1.8 billion in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2006, are available
for free at http://researcharchives.com/t/s?18fb
Restructuring Activities
During the first quarter of fiscal year 2007, the company
executed certain restructuring activities to further support its
competitive position. As of Sept. 30, 2006, approximately 2,000
employees have been involuntarily terminated.
Cash Flows
Cash flow from operations was approximately US$173 million, or
12% of revenues. Capital expenditures and additions to
intangible assets were approximately US$110 million, or 8% of
revenues.
Acquisitions
During the first quarter of fiscal year 2007, the company
acquired Primax Recoveries Inc. for US$40 million, plus
contingent payments of up to US$10 million based on future
performance. Primax is one of the oldest and largest health
care recovery firms.
Subsequent to Sept. 30, 2006, the company acquired Systech
Integrators Inc. for US$65 million, plus contingent payments of
up to US$40 million based upon future performance. Systech is
an information technology solutions company offering an array of
SAP software services.
About Affiliated Computer
Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides
business process outsourcing and information technology
solutions to commercial and government clients. The company's
global presence include operations in China, Brazil, Dominican
Republic, India, among others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 30, 2006, Standard & Poor's Ratings Services kept its
ratings for Affiliated Computer, including the 'B+' corporate
credit rating, on CreditWatch, where they were placed with
negative implications on Sept. 29, 2006.
Fitch Ratings assigned its BB issuer default rating, BB senior
secured revolving bank credit facility rating, BB senior secured
term loan rating, and BB senior notes rating on Affiliated
Computer Services, Inc. The rating outlook is negative.
BANK OF INDIA: Net Profit in Dec. '06 Qtr. Soars to INR2.5 Bil.
---------------------------------------------------------------
Bank of India's unaudited results for the quarter ended Dec. 31,
2006, as filed with the Bombay Stock Exchange, showed net profit
soaring to INR2.549 billion from the INR1.431 billion recorded
in the quarter ended Dec. 31, 2005.
The bank's income for the last quarter of 2006 total
INR26.410 billion, a 28% increase from the INR20.631 earned in
the corresponding quarter in 2005.
Total expenditures for the bank also increased from INR16.884 in
the three months ended Dec. 31, 2005, to INR20.879 billion in
the corresponding period in 2006.
Bank of India -- http://www.bankofindia.com/-- has 2,628
branches spread over all states/union territories in India,
including 93 specialized branches. The bank provides a range of
financial products and services, including numerous credit
schemes, deposit schemes, cash management services, credit/debit
cards, deposit vaults and corporate bonds. It also extends
finance to small and medium enterprises and small-scale
industries. It provides a variety of loans, such as mortgage
loans, educational loans, auto finance loans, holiday loans,
personal loans and home loans. The bank offers Internet banking
services for both the retail and corporate clients.
The bank also operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 11, 2006, that Standard & Poor's Ratings Services assigned
its BB- rating to Bank of India's (BoI; BB+/Positive/B) proposed
upper Tier II subordinated and hybrid Tier I notes under its
US$1 billion MTN program.
At the same time, Standard & Poor's raised its rating on the
proposed subordinated notes, or lower Tier II notes, under the
MTN program to BB from BB-.
S&P had earlier given Bank of India both BB+ long-term local and
foreign issuer credit ratings, and B ratings on its short-term
foreign and local issuer credit.
BANK OF INDIA: To Issue INR1,200-Crore Tier II Capital Bonds
------------------------------------------------------------
Bank of India's board of directors, at its meeting on Jan. 22,
2007, approved the bank's issuance of Upper Tier II capital
bonds to the tune of INR1,200 crore, a filing with the Bombay
Stock Exchange reveals.
The board also approved an increase in Tier I capital by issuing
Innovative Perpetual Debt Instruments - Series I to the tune of
INR800 crore in Indian rupees or partly in foreign currency up
to US$85 million.
According to the BSE filing, the bank plans to issue the debt
instruments on "private placement basis at an appropriate time."
Bank of India -- http://www.bankofindia.com/-- has 2,628
branches spread over all states/union territories in India,
including 93 specialized branches. The bank provides a range of
financial products and services, including numerous credit
schemes, deposit schemes, cash management services, credit/debit
cards, deposit vaults and corporate bonds. It also extends
finance to small and medium enterprises and small-scale
industries. It provides a variety of loans, such as mortgage
loans, educational loans, auto finance loans, holiday loans,
personal loans and home loans. The bank offers Internet banking
services for both the retail and corporate clients.
The bank also operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Sept. 11, 2006, that Standard & Poor's Ratings Services assigned
its BB- rating to Bank of India's (BoI; BB+/Positive/B) proposed
upper Tier II subordinated and hybrid Tier I notes under its
US$1 billion MTN program.
At the same time, Standard & Poor's raised its rating on the
proposed subordinated notes, or lower Tier II notes, under the
MTN program to BB from BB-.
S&P had earlier given Bank of India both BB+ long-term local and
foreign issuer credit ratings, and B ratings on its short-term
foreign and local issuer credit.
BHARTI AIRTEL: To Buy Network i2i's Cable System for US$110 Mil.
----------------------------------------------------------------
Bharti Airtel Ltd, in a filing with the Bombay Stock Exchange,
revealed plans to acquire a submarine network cable system from
Network i2i by way of purchase of all the assets or equity for
an overall consideration of US$110 million, subject to obtaining
the requisite approvals.
In the BSE filing, Bharti said its board of directors ata
meeting on Jan. 22, 2007, approved the purchase plan. Network
i2i is jointly owned by Singtel and a Bharti group company.
The board, in the same meeting also approved:
a. a scheme of transfer of the towers for mobile
communications and related passive infrastructure into a
wholly owned subsidiary, Bharti Infratel Ltd for enhanced
operational efficiencies; and
b. the commencement of Direct To Home services to address the
fast growing home entertainment segment through its wholly
owned subsidiary Bharti Telemedia Ltd.
Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services. The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India. The B&TS business unit provides broadband and
telephone services in 90 cities across India. The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates. Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services. The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+ ratings
on Sept. 21, 2005.
BHARTI AIRTEL: Offered to Provide Mobile Services in Sri Lanka
--------------------------------------------------------------
Bharti Airtel Ltd received a Letter of Offer from the
Telecommunications Regulatory Commission of Sri Lanka to provide
2G and 3G mobile services in Sri Lanka, the company said in a
Jan. 18 filing with the Bombay Stock Exchange
According to Bharti Airtel, this will be its first international
operation and is in line with company plans to expand telecom
operations in the South Asian region.
Commenting on the Letter of Offer, of the Company said, "We are
delighted to have received the offer to provide mobile services
in Sri Lanka.
"[T]he South Asian region offers tremendous growth opportunities
and Sri Lanka is a very promising market for telecom services,"
Sunil Bharti Mittal, chairman and managing director of Bharti
Airtel, says. "Bharti Airtel with its extensive experience and
unique business model will strive to offer world-class services
at affordable rates to the people of Sri Lanka."
Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services. The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India. The B&TS business unit provides broadband and
telephone services in 90 cities across India. The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates. Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services. The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+ ratings
on Sept. 21, 2005.
BHARTI AIRTEL: Allots 11600 Equity Shares Under ESOP
----------------------------------------------------
Bharti Airtel Ltd informs the Bombay Stock Exchange that
pursuant to its ESOP Scheme 2005, the committee of directors of
its board has issued 11,600 equity shares to employees upon
exercise of options:
-- 11,050 equity shares of INR10 each fully paid up at an
exercise price of INR221; and
-- 550 equity shares of INR10 each fully paid up at an
exercise price of INR313.
With the allotment of the shares, Bharti Airtel's equity base
increased from 1,895,768,947to 1,895,780,547 (Nos.) equity
shares of INR10 each.
Headquartered in New Delhi, India, Bharti Airtel Limited --
http://www.bhartiairtel.in/-- is a telecom services provider.
The company has three business units: Mobile Services, Broadband
& Telephone Services (B&TS) and Enterprise Services. The Mobile
Services business unit offers mobile services in all 23 telecom
circles of India. The B&TS business unit provides broadband and
telephone services in 90 cities across India. The Enterprise
Services business unit has two sub-units: Carriers (long-
distance services) and Corporates. Through Enterprise Services-
Carriers, Bharti Airtel provides national and international
long-distance services. The Enterprise Services-Corporates
business unit provides integrated voice and data communications
solutions to corporate customers and small and medium-size
enterprises.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel
Limited's long-term foreign currency issuer default rating at
BB+. The outlook on the rating remains stable.
Additionally, Standard and Poor's Rating Service gave the
company's long-term local and foreign issuer credit BB+ ratings
on Sept. 21, 2005.
CENTURION BANK: Issues 7,50,00,000 Shares to India Advantage
------------------------------------------------------------
Centurion Bank of Punjab Ltd allotted 7,50,00,000 equity shares
with face value of INR1 each at a price of INR24.54 per share
(including premium of INR23.54 per share) on a preferential
basis to India Advantage Fund V through The Western India
Trustee and Executor Company Ltd.
The issuance raised cash aggregating INR184.05 crore.
The Securities Transfer, Allotment & Grievance Redressal
Committee of the bank's board of directors made the issuance at
a meeting on Jan. 18, 2007.
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 17, the Reserve Bank of India recently approved the
issuance on a preferential basis.
Headquartered in Goa, India, Centurion Bank of Punjab Limited --
http://www.centurionbop.co.in/-- is a private-sector bank. The
bank provides a range of transaction banking products under cash
management services to various customer segments, such as
corporates, small and medium enterprises, utility providers and
domestic correspondent banks. The bank has entered into an
enterprise partnership with Indecomm Global Services to form
Centillion Solutions and Services. Centillion will focus on
operations and services for banking and related financial
services. The Retail Asset servicing operations of the Bank are
being transitioned to Centillion. The bank has entered into an
arrangement with IL&FS Investsmart Limited for offering equity
broking services to its customers. The wholesale banking
business is divided into Corporate, SME and Financial
Institutions Group. NRI business has been a focus of the bank.
In Trade Finance business, the bank provides services, such as
export trade, import trade, remittance, domestic trade and
structured trade.
Fitch Ratings, on November 2, 2005, gave Centurion Bank of
Punjab a support rating of 5.
GENERAL MOTORS: Delays Filing of 2006 4th Qtr. & Annual Reports
---------------------------------------------------------------
General Motors will be delaying the announcement of its 2006
year-end and fourth quarter financial results but expects to
report improved performance in its automotive business,
including record fourth quarter revenue in 2006. The company
also said that it will restate its financial statements,
primarily due to pre-2002 tax accounting adjustments.
GM indicated that its deferred tax liabilities, as previously
disclosed in its results for the third quarter of 2006 and prior
periods, were overstated due to errors that originally occurred
primarily before 2002. While these errors do not impact cash
flow or previously reported cash balances, retained earnings as
of Dec. 31, 2001, and subsequent periods were understated by a
range of US$450 million to US$600 million as a result.
In light of recent focus on accounting under Statement of
Financial Accounting Standard 133, Accounting for Derivative
Instruments and Hedging Activities, GM is reviewing its
accounting in this area. While this review is still ongoing, GM
currently anticipates that it will make accounting restatements
in this area, and the completed review may result in additional
restatements that could be material. GM also is assessing
various other miscellaneous adjustments for 2002 through 2006,
and believes these adjustments, individually and collectively,
will not be material on a consolidated basis.
As a result of these anticipated adjustments related to the
deferred tax liabilities, hedging activities and other
miscellaneous items, GM will be restating its financial
statements for 2002 through the third quarter of 2006. GM does
not expect any material impact on cash flow.
In addition, GMAC has informed GM that it continues to finalize
its financial statements for 2006 and its balance sheet as of
Nov. 30, the date of the sale of 51% of the equity of GMAC. As
a result, GMAC advised GM that it is not yet able to provide the
financial information needed to complete GM's fourth quarter
financial results.
Based on these factors, GM will delay the announcement of its
2006 year-end and fourth quarter financial results, previously
planned for Jan. 30, 2007, pending resolution of outstanding
accounting issues and final GMAC financial results.
GM intends to provide further information on the progress of its
financial reporting during the week of Feb. 5. The Corporation
currently anticipates that it will file its annual report on
Form 10-K by its due date of March 1, 2007.
Separately, in terms of operations, GM continued to demonstrate
improved performance in its automotive business, with record
fourth quarter revenue in 2006. The company expects to be
profitable on a reported consolidated basis in the 2006 fourth
quarter, and net income is expected to improve significantly
over the fourth quarter of 2005. GM also further improved its
liquidity position, ending the year with approximately
US$26.4 billion in cash and equivalents (including US$2.5
billion of readily available VEBA assets), an increase of about
US$5.9 billion over year-end 2005.
GM reportedly implemented Statement of Financial Accounting
Standards 158, a new accounting standard for pension and other
post-retirement benefits effective Dec. 31, 2006. Adoption of
this standard will result in negative stockholders' equity on a
book value basis. For the third straight year, the company's
U.S. pension funds performed strongly, with asset returns of 15%
for 2006. As a result, including the impact of significant
employee attrition in 2006, GM's U.S. hourly and salary plans
(as measured by Statement of Financial Accounting Standards 87)
ended the 2006 calendar year over-funded by US$17 billion.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan. The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.
GENERAL MOTORS: May Shift Responsibility of Retiree Benefits
------------------------------------------------------------
General Motors Corp., Ford Motor Corp., and the United Auto
Workers union are discussing a plan to transfer billions of
dollars of retiree healthcare obligations to the union, The Wall
Street Journal reports, citing people familiar with the matter.
The parties are determined to restructure the automotive
industry without the need for the automakers to file for
bankruptcy, WSJ says.
According to Reuters, GM hired the advisers who worked on a deal
between Goodyear Tire & Rubber Co. and the United Steelworkers
union.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including India, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1,
9% rating to the proposed US$1.5 Billion secured term loan. The
term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of GM and Saturn Corporation.
SUN MICRO: Commences US$700MM Notes Private Placement with KKR
--------------------------------------------------------------
Sun Microsystems, Inc., disclosed a US$700 million private
placement transaction with KKR Private Equity Investors, L.P.,
the publicly traded fund of Kohlberg Kravis Roberts & Co., one
of the oldest and most experienced private equity firms. The
investment will be in the form of US$350 million of convertible
senior notes due in 2012, and US$350 million of convertible
senior notes due in 2014. Closing of the investment is
scheduled for Jan. 26, 2007, and is subject to meeting customary
closing conditions. A nominee of KKR will be presented for
appointment to the Sun Microsystems Board of Directors upon or
shortly following the close of this transaction.
"We are excited to have the support of one of the world's
premiere private equity firms. KKR has a stellar track record
of creating value for shareholders, and bringing insight and
opportunity to the companies in which it invests. This
investment is an important validation of our strategy and
competitive assets, and reflects endorsements from key
customers, along with improving financial performance and market
share gains," said Jonathan Schwartz, CEO of Sun Microsystems.
"Sun is clearly becoming a vendor of choice in the race to build
out the Internet's global infrastructure -- and we intend to use
proceeds from this placement to pursue strategic opportunities
for growth. We're looking forward to working with KKR to
leverage its expertise, assets, global reach and relationships."
George R. Roberts, a founding member of KKR, said, "Sun
Microsystems is a leader and innovator in the global technology
marketplace. Jonathan Schwartz and his team have demonstrated
remarkable vision and strong discipline in executing its
turnaround strategy. This leadership, coupled with the world-
class products and services for which Sun has always been known,
underscores the company's ability to sustain its recent momentum
and the gains it has made in the marketplace. We are pleased to
have the opportunity to pursue this investment through KKR
Private Equity Investors in order to help Sun to best capitalize
on its substantial growth potential."
The 2012 and 2014 notes will pay interest semi-annually at a
rate of 0.625% and 0.750% per annum respectively. The 2012 and
2014 notes will be convertible, at the holder's option during
specified periods, at a conversion price of US$7.21 per share.
Upon conversion, Sun Microsystems will deliver cash up to the
principal amount and, at its option, cash or stock equal to the
remaining conversion value. KPE's US$700 million investment in
Sun Microsystems includes financing provided to KPE by a major
bank in the amount of US$350 million.
Sun Microsystems will use a portion of the offering proceeds to
fund convertible note hedge transactions that it entered into
concurrently with the private placement transaction. These
transactions are intended to offset the dilution to Sun's common
stock resulting from potential future conversion of the notes.
Concurrent with entering into the convertible note hedges, Sun
Microsystems also entered into separate transactions to sell
warrants to purchase shares of its common stock. These
transactions will generally have the effect of increasing the
effective conversion price of the notes. The warrants
associated with the 2012 notes have an exercise price that
represents an approximate 60% premium to the closing price of
Sun Microsystems common stock on Jan. 22, 2007. The warrants
associated with the 2014 notes have an exercise price that
represents an approximate 75% premium to the closing price of
Sun Microsystems common stock on Jan. 22, 2007.
The counterparty to these transactions, or its affiliates, may
purchase shares of Sun Microsystems common stock or enter into
derivative transactions in Sun Microsystems common stock
concurrently with or following the pricing of the notes.
About KKR
KKR is one of the world's oldest and most experienced private
equity firms specializing in management buyouts, with offices in
New York, Menlo Park, California, London, Paris, Hong Kong and
Tokyo. In recent years KKR has participated in several of the
largest private equity technology investments in history,
including SunGard Data Systems, NXP Semiconductors and Avago
Technologies. Other KKR technology industry investments include
Aricent, Amphenol, RELTEC, Wincor Nixdorf, Tenovis and Zhone
Technologies. Over the past thirty years, KKR has invested in
more than 149 transactions with a total value of US$274 billion.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services. It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels. The company has
operations in Brazil, Hungary and India, among others.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 27, 2006, Moody's Investors Service confirmed its Ba1
Corporate Family Rating for Sun Microsystems Inc.
SUN MICROSYSTEMS: S&P Says Debt Placement Won't Affect Ratings
--------------------------------------------------------------
Sun Microsystems Inc. (BB+/Stable/A-3) recently announced a
US$700 million private placement transaction of senior
convertible notes with KKR Equity Investors, L.P. In
conjunction with or shortly following the close of this bond
transaction, a nominee of KKR will be presented for appointment
to Sun's board of directors.
Standard & Poor's Ratings Services does not expect the proposed
transaction to have a current impact on its ratings or outlook
for the company. While Sun's funded debt level will increase,
so will the company's already substantial net cash position. As
of Dec. 31, 2006, Sun had cash and marketable securities
balances of US$4.8 billion, and total debt (including
capitalized operating leases) of about US$1.4 billion. Pro
forma total debt to EBITDA will be about 2.6x as of
Dec. 31, 2006. Sun has been more acquisitive since 2005, but
has used its cash balances to fund its growth initiatives.
However, the presence of a KKR nominee on Sun's board does raise
concerns about potential future changes in Sun's financial
policy and financial profile, particularly in light of
increasing LBO activity in the technology sector. In the near
term, we expect Sun to maintain a moderately leveraged capital
structure, and to continue to invest in strategic growth,
including acquisitions. Sun's current financial profile
provides important ratings support, given its inconsistent
operating performance, so a change to its financial policy could
negatively affect the rating.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services. It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels. The company has
operations in Brazil, Hungary and India, among others.
UTI BANK: Gets RBI Nod to Float Infrastructure Funding Arm
----------------------------------------------------------
The Reserve Bank of India approves UTI Bank Ltd's plan to float
a separate infrastructure financing arm as a wholly owned
subsidiary, The Hindu reports citing R. Asok Kumar, the bank's
executive director (corporate strategy), as source.
The new arm will be called UBL Asset Management Company.
The bank is applying for registration with the Securities and
Exchange Board of India and is expecting to get the regulator's
approval soon, The Telegraph says.
According to The Telegraph, UTI Bank is set to float the asset
management company by June this year. "The company is expected
to start operations from the first quarter of the next financial
year," the paper quotes Mr. Kumar as saying.
The bank, reportedly, is also planning to float an investment
subsidiary.
Headquartered in Ahmedabad, India, UTI Bank Limited --
http://www.utibank.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. Total
deposits were INR31,712 crore at March 31, 2006.
* * *
On November 6, 2006, Moody's Investors Service assigned a Ba1
rating to the foreign currency perpetual non-cumulative
subordinated debt to be issued by UTI Bank's Singapore branch
under its USUS$1 billion Medium Term Note program.
The Troubled Company Reporter - Asia Pacific reported on
August 4, 2006, that Standard & Poor's Ratings Services assigned
its BB+/B counterparty credit ratings to UTI Bank Ltd. The
outlook is positive. S&P also assigned its C bank fundamental
strength rating to the bank.
At the same time, S&P assigned its ratings to UTI Bank's
proposed debt issues under its EUR1 billion medium-term note
program. The agency rated UTI Bank's proposed senior unsecured
notes BB+, its lower Tier II subordinated notes BB, and its
upper Tier II subordinated notes 'BB-'. The lower Tier II
subordinated notes will have a minimum tenor of five years, and
the upper Tier II subordinated notes will have a minimum term
of 15 years.
Another TCR-AP report on July 26, 2006, related that Fitch
Ratings assigned an individual rating of C/D to UTI Bank. The
outlook on the ratings is stable.
=================
I N D O N E S I A
=================
AVNET INC: Reports Second Quarter Fiscal Year 2007 Results
----------------------------------------------------------
Avnet, Inc., reported revenue of US$3.89 billion for the second
quarter of fiscal 2007 ended December 30, 2006, representing an
increase of 3.5% over the figure recorded for the second quarter
of fiscal 2006. Excluding the impact of divestitures during
fiscal year 2006, second quarter revenue grew 6.0% over the year
ago quarter and 3.2% excluding the impact of foreign currency
translation. Net income for second quarter fiscal 2007 was
US$99.1 million, or US$0.67 per share on a diluted basis, as
compared with net income of US$49.6 million, or US$0.34 per
share on a diluted basis, for the second quarter last year.
Excluding the impact of US$32.4 million of restructuring and
other charges recorded in the prior year quarter, net income and
diluted earnings per share increased 40% year over year.
Included in these results is stock compensation expense of
US$0.02 per diluted share in both the current year and prior
year second quarter.
Operating income for second quarter fiscal 2007 was
US$163.8 million, up 72% as compared with operating income of
US$95.5 million in the year ago quarter and up 28% excluding
last year's restructuring and other charges. Operating income
as a percent of sales was 4.2%, up 81 basis points from last
year's second quarter, excluding the restructuring and other
charges recorded in the year ago quarter, with both operating
groups contributing to the improvement.
Roy Vallee, Chairman and Chief Executive Officer, commented,
"Our strong performance this quarter was the result of our
highly diversified revenue base and continuously improving
expense productivity across both operating groups. While year
over year revenue growth slowed to 3.5% this quarter, we were
able to grow operating income eight times faster than revenues
for the quarter. When combined with solid working capital
velocity, driven by a sequential reduction in inventory dollars
at EM and seasonally higher sales at TS, return on capital
employed improved 155 basis points over the year ago quarter to
11%, the highest level in over ten years."
Electronics Marketing sales of US$2.33 billion in the second
quarter fiscal 2007 were up 3.4% on a year over year basis and
5.1% when adjusted for divestitures. EM sales in EMEA and Asia
increased 9.4% and 7.5%, respectively, year over year while the
Americas region decreased 3.9%. Excluding divestitures and the
impact of foreign currency translation, year over year growth at
EM EMEA was 6.6%. EM operating income of US$119.1 million for
second quarter fiscal 2007 was up 30% over the prior year second
quarter operating income of US$91.5 million and operating income
margin of 5.1% was up 104 basis points over the prior year
quarter representing the fourth consecutive quarter of operating
margin in excess of 5.0%.
Mr. Vallee added, "Electronics Marketing delivered another
quarter of significant year over year margin expansion. While
revenue growth was dampened by a relatively mild component
industry correction, our gross profit margin at EM was up on
both a sequential and year over year basis. During the quarter,
EM reduced inventory by US$51 million sequentially in reported
U.S. dollars or approximately US$67 million in constant dollars.
With inventory managed back to desired levels and our margins
improving, we believe EM is well positioned to drive further
earnings improvement as we enter our seasonally strong March
quarter."
Technology Solutions sales of US$1.56 billion in the second
quarter fiscal 2007 were up 3.7% year over year and up 7.3% when
adjusted for the divestiture of Avnet Enterprise Solutions.
Second quarter sales in the Americas and EMEA increased 3.5% and
17.5%, respectively, year over year, while sales in Asia were
essentially flat. Excluding the impact of foreign currency
translation, top line growth in EMEA was 7.0%. TS operating
income was US$64.0 million, a 15.8% increase as compared with
second quarter fiscal 2006 operating income of US$55.3 million,
and operating income margin of 4.1% increased by 43 basis points
over the prior year second quarter.
Mr. Vallee further added, "Technology Solutions produced its
fourteenth straight quarter of year over year improvement in
both operating income dollars and margin. We closed out another
strong December quarter with 28% sequential growth and remain
excited about our prospects for TS going forward as we integrate
the recently acquired Access Distribution business. In addition
to adding approximately US$2 billion in annual sales, TS is now
positioned to sell a broader range of products and services into
an expanded VAR base with the contributions of several hundred
talented new associates. With return on capital consistently
exceeding our hurdle rate, TS continues to grow economic profits
and shareholder value."
The acquisition of Access Distribution was completed on Dec. 31,
2006, the first day of Avnet's fiscal third quarter. The
integration of the Access business into Avnet's Technology
Solutions Group is expected to be essentially complete by the
end of June 2007 with projected annual costs savings of at least
US$15 million.
The Company generated US$230 million of free cash flow during
the second quarter of fiscal 2007. As a result, the Company
ended the quarter with US$390 million of cash and cash
equivalents and net debt of US$774 million prior to the
acquisition of Access.
Ray Sadowski, Chief Financial Officer, stated: "This quarter's
cash flow performance is further evidence of the impact our
value based management initiatives have had on the cash
generation capability of our business, and consequently our
balance sheet. Over the last four quarters we have generated
approximately US$330 million of free cash flow thereby
significantly strengthening our balance sheet and allowing us to
finance the Access acquisition with existing liquidity while
maintaining investment grade credit statistics."
Outlook
For Avnet's third quarter fiscal 2007, management expects sales
at EM to be in the range of US$2.43 billion to US$2.53 billion
and anticipates sales for TS, including Access, to be between
US$1.67 billion to US$1.77 billion. Therefore, Avnet's
consolidated sales are forecasted to be US$4.10 billion to
US$4.30 billion for third quarter fiscal 2007 ending on March
31, 2007. Management expects the third quarter earnings to be
in the range of US$0.67 to US$0.71 per share, including
approximately US$0.02 per share related to the expensing of
stock-based compensation. The above EPS guidance does not
include the amortization of intangibles and integration charges
related to the acquisition of Access Distribution as those
amounts have not yet been determined.
Non-GAAP Financial Information
In addition to disclosing financial results that are determined
in accordance with generally accepted accounting principles, the
Company also discloses in this press release certain non-GAAP
financial information including adjusted operating income,
adjusted net income and adjusted diluted earnings per share.
The non-GAAP financial information is used to reflect the
Company's results of operations excluding certain items that
have arisen from restructuring, integration and other charges in
the periods presented.
Management believes that operating income adjusted for
restructuring, integration and other charges is a useful measure
to help investors better assess and understand the Company's
operating performance, especially when comparing results with
previous periods or forecasting performance for future periods,
primarily because management views the excluded items to be
outside of Avnet's normal operating results. Management
analyzes operating income without the impact of restructuring,
integration and other charges as an indicator of ongoing margin
performance and underlying trends in the business. Management
also uses these non-GAAP measures to establish operational goals
and, in some cases, for measuring performance for compensation
purposes.
Management similarly believes net income and diluted earnings
per share adjusted for the impact of the items discussed above
is useful to investors because it provides a measure of the
Company's net profitability on a more comparable basis to
historical periods and provides a more meaningful basis for
forecasting future performance. Additionally, because of
management's focus on generating shareholder value, of which net
profitability is a primary driver, management believes net
income and diluted EPS excluding the impact of these items
provides an important measure of the Company's net results of
operations for the investing public.
However, analysis of results and outlook on a non-GAAP basis
should be used as a complement to, and in conjunction with, data
presented in accordance with GAAP. Reconciliations of the
Company's reported results to the results adjusted for the items
discussed above are included in this table:
Quarter ended Operating Net Diluted
Dec. 31, 2005 Income Income EPS
------------- --------- ------ -------
(in thousands, except
/share data)
GAAP results US$95,498 US$49,636 US$0.34
Restructuring,
Integration and
other charges 32,423 21,360 0.14
Adjusted results 127,921 70,996 0.48
Cash Flow Activity
The following table summarizes the Company's cash flow activity
for the second quarters and first six months of fiscal 2006 and
2007, including the Company's computation of free cash flow and
a reconciliation of this metric to the nearest GAAP measures of
net income and net cash flow from operations. Management's
computation of free cash flow consists of net cash flow from
operations plus cash flows generated from or used for purchases
and sales of property, plant and equipment, acquisitions of
operations, effects of exchange rates on cash and cash
equivalents and other financing activities. Management believes
that the non-GAAP metric of free cash flow is a useful measure
to help management and investors better assess and understand
the Company's operating performance and sources and uses of
cash. Management also believes the analysis of free cash flow
assists in identifying underlying trends in the business.
Computations of free cash flow may differ from company to
company. Therefore, the analysis of free cash flow should be
used as a complement to, and in conjunction with, the Company's
consolidated statements of cash flows presented in the
accompanying financial statements.
Management also analyzes cash flow from operations based upon
its three primary components noted in the table below: net
income, non-cash and other reconciling items and cash flow
generated from working capital. Similar to free cash flow,
management believes that this breakout is an important measure
to help management and investors understand the trends in the
Company's cash flows, including the impact of management's focus
on asset utilization and efficiency through its management of
the net balance of receivables, inventories and accounts
payable.
Second Quarter Ended Six Months Ended
12/30/06 12/30/05 12/30/06 12/30/05
-------- -------- -------- --------
(in thousands)
Net income US$99,088 US$49,636 US$163,231 US$74,533
Non-cash and
other reconciling
items 45,933 47,814 96,783 81,672
Cash flow generated
from (used for)
working capital
(excluding cash
and cash
equivalents) 92,653 (109,192) (48,957) (317,205)
Net cash flow
generated from
(used for)
operations 237,674 (11,742) 211,057 (161,000)
Cash flow generated
from (used for):
Purchases of
property, plant
and equipment (13,574) (10,918) (27,619) (24,067)
Cash proceeds
from sales of
property, plant
and equipment 234 1,337 962 1,629
Acquisitions of
operations, net (4,180) (6,032) (4,180) (304,022)
Effect of exchange
rates on cash and
cash equivalents 3,696 (1,498) 3,784 (2,537)
Other, net
financing
activities 6,488 1,510 9,570 23,579
Net free
cash flow $230,338 $(27,343) $193,574 $(466,418)
Teleconference Webcast and Upcoming Events
Avnet will host a Webcast of its quarterly teleconference on
January 26, 2007 at 2:00 p.m. Eastern Time. The live Webcast
event, as well as other financial information including
financial statement reconciliations of GAAP and non-GAAP
financial measures, will be available through
http://www.ir.avnet.com/ Please log onto the site 15 minutes
prior to the start of the event to register or download any
necessary software. An archive copy of the presentation will
also be available after the Webcast.
Avnet, Inc., headquartered in Phoenix, Arizona, is one of the
largest worldwide distributors of electronic components and
computer products, primarily for industrial customers. Revenues
for the fiscal year ended July 1, 2006 were US$14.3 billion. It
has operations in these Asia-Pacific countries: Indonesia,
Australia, China, Hong Kong, India, Japan, Malaysia, New
Zealand, Philippines and Singapore.
The Troubled Company Reporter - Asia Pacific reported on
November 6, 2006, that in connection with Moody's Investors
Service's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology for the U.S. technology
semiconductor and distributor sector, the rating agency affirmed
its Ba1 corporate family rating on Avnet, Inc.
Additionally, Moody's held its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$400MM 8.00% Sr.
Unsecured Notes
due 2006 Ba1 Ba1 LGD3 49%
US$250MM 6.00% Sr.
Unsecured Notes
due 2015 Ba1 Ba1 LGD3 49%
US$300MM 6.625% Sr.
Unsecured Notes
due 2016 Ba1 Ba1 LGD3 49%
US$300MM 2.00%
Convertible Sr.
Debentures due 2034 Ba1 Ba1 LGD3 49%
Shelf - Sr.
Unsecured (P)Ba1 (P)Ba1 LGD3 49%
Shelf - Subor. (P)Ba2 (P)Ba2 LGD6 97%
BANK INDONESIA: Fitch Affirms Issuer Default Rating BB-
-------------------------------------------------------
Fitch Ratings affirmed the ratings of Bank Internasional
Indonesia as follows:
-- Long-term foreign currency Issuer Default rating at 'BB-',
-- Short-term rating at 'B',
-- National Long-term rating at 'AA-',
-- Individual rating at 'C/D' and
-- Support rating at '4'.
The ratings reflect its stable profitability and improved
capital position, which help to mitigate a still high level of
impaired loans. The agency also notes that BII's underlying
profitability improved in the first nine months of 2006 as loan
margins held steady, loan growth was strong and contribution
from non-interest income remained good. However, loan quality
worsened - its gross NPL ratio increased to 4.8% at end-
September 2006 from 2.9% at end-2005 - as consumer loan defaults
increased in response to the weaker macro conditions over the
period. The bank's provision cover, at 67% of NPLs at end-
September 2006, is also considered to be on the low side given
the legal uncertainties and foreclosure difficulties in
Indonesia. Stress testing by Fitch using harsher write-off
assumptions on its impaired loans suggests that additional
provisions may be needed but appears quite well cushioned by a
pre-tax ROE of c.15%. The bank's capital position also improved
with total CAR at 22.9% at end-September 2006 versus 20.2% at
end-2004 with profit retention and the issuance of a
subordinated debt in 2005.
Established in 1959, BII is the sixth-largest Indonesian bank.
It is currently majority controlled by Sorak Financial Holdings,
a joint venture between Temasek Holding, Kookmin Bank, ICB
Financial Holdings and Barclays Capital.
PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/
engages in general banking services and in other banking
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard. The bank is headquartered in Jakarta,
Indonesia.
With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.
BANK NEGARA: Asked to Execute Defrauders' Assets
------------------------------------------------
The working committee on Assets Recovery of PT Bank Negara
Indonesia (Persero) Tbk is urging the bank's management to
execute all assets of the defrauders of the Kebayoran branch BNI
in 2003, Tempo Interactive reports.
According to the report, the working committee of the House of
Representatives gave BNI six months to coordinate with the
attorneys to execute all assets that have been imposed a
permanent decision by the Supreme Court.
The report cites the Head of the Working Committee, Yunus
Yosfiah, as saying that they always try to maximize the attempt
in alleviating state losses, so they have set a deadline.
Mr. Yosfiah said that the recovery process of BNI's assets is
still slow and the legal attempt from police and attorneys is
still delayed.
The report adds that of the IDR1.58 trillion total assets that
must be recovered, only IDR113.06 billion is ready to be
withdrawn.
Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id/-- is a financial
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature. The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore. The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
a securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.
As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service has lifted Bank Negara
Indonesia's senior debt rating to B1 from B2, and long-term
deposit rating to B2 from B3. The revised ratings carry a
stable outlook. Bank Negara's short-term deposit rating of Not-
Prime, and bank financial strength rating of E are unaffected.
A subsequent TCR-AP report on July 17, 2006, said that Standard
& Poor's Ratings Services revised the outlook on the local
currency counterparty credit rating on Bank Negara to stable
from positive. At the same time, Standard & Poor's affirmed its
foreign and local currency ratings on BNI (B+/Stable/B).
Another TCR-AP report on December 15, 2006, stated that Fitch
Ratings affirmed Bank Negara's:
-- Long-term foreign currency Issuer Default rating at 'BB-';
-- Long-term local currency Issuer Default rating at 'BB-';
-- Short-term foreign currency rating at 'B';
-- National Long-term rating at 'A+(idn)';
-- Individual rating at 'D';
-- Support rating at '4'; and
-- subordinated notes rating at 'B+'.
BANK NIAGA: Provides Excelcomindo Subscribers Expanded Service
--------------------------------------------------------------
PT Bank Niaga Tbk provides subscribers of PT Excelcomindo
Pratama a system in which they can now pay their bills and top
up their mobile phone credit online via Self-Service Terminals,
The Jakarta Post reports.
According to the report, the new service became effective
following the signing of an agreement by Niaga's head of
operations and IT, Paul S. Hasjim, and XL marketing director
Nicanor V. Santiago.
The report notes that Mr. Hasjim said that Bank Niaga has also
entered into collaborative ventures with a number of other
telecommunications firms, such as PT Telekomunikasi Indonesia
Tbk, PT Telekomunikasi Selular Indonesia and PT Indosat Tbk, and
boasts 204 SST units at present and it plans to install 50 more
terminals this year.
Mr. Hasjim also said that Niaga had allocated IDR150 billion for
the expansion program, along with the opening of 11 new branches
and two sharia centers in Yogyakarta and Bandung.
Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk
-- http://www.bankniaga.com/-- has a license to operate as a
commercial bank, a foreign exchange bank and a bank engaged in
activities based on Syariah principles. The bank's products and
services include: Funding, Consumer Financing, Business
Financing, Credit and Debit Cards, Private Banking, Preferred
Circle, e-Banking, Corporate Trust, Bancassurance and Treasury
Indicator. The bank's subsidiaries consist of: PT Niaga Aset
Manajemen and PT Saseka Gelora Finance. As of January 31, 2006,
the Bank operates 54 domestic branches, 145 domestic supporting
branches, 22 domestic payment points, seven Syariah units and
one overseas branch.
* * *
As reported by the Troubled Company Reporter - Asia Pacific on
July 6, 2006, Moody's Investors Service has placed Bank Niaga's
E+ bank financial strength rating on review for possible
upgrade.
These ratings were unaffected:
-- Issuer rating of Ba3. Outlook stable;
-- Subordinated debt rating of Ba3. Outlook stable; and
-- Long-term/short-term deposit ratings of B2/Not Prime.
Outlook stable.
Additionally, Fitch Ratings gave a B+ rating to Bank Niaga's
proposed US$100 million, 10-year subordinated debt issue. At
the same time, Fitch has affirmed the bank's existing ratings
including Long-term Senior foreign currency rating of 'BB-' (BB
minus), Individual rating of D, and Support rating of 4.
FOSTER WHEELER: Wins Refinery Expansion Contract In Malaysia
------------------------------------------------------------
Foster Wheeler Ltd. revealed that its subsidiary, Foster Wheeler
E&C Sdn. Bhd., part of its Global Engineering and Construction
Group, has been awarded a contract by Malaysian Refining Company
Sdn. Bhd., a joint venture between PETRONAS and ConocoPhillips,
for the basic design engineering package and the engineering,
procurement and construction management for a debottlenecking/
revamp project at MRC's PSR-2 Melaka Refinery in Malaysia.
The Foster Wheeler contract value was not disclosed and the
project will be included in the company's first-quarter 2007
bookings.
"This award reflects our in-depth technical expertise in
refining, our revamp experience, and our reputation as one of
the leading EPC contractors in the industry," said Aziz Ali,
director, Foster Wheeler E&C Sdn. Bhd. "In addition, we have an
extensive knowledge of this refinery, having been MRC's front-
end engineering design contractor and project management
consultant for the original PSR-2 facility, which was completed
in 1999. We look forward to building upon our close working
relationship with MRC and are committed to delivering a
successful project which fully satisfies our client's business
objectives."
The debottlenecking and revamp project is expected to permit MRC
to increase the overall refinery throughput from 130,000 to
175,000 barrels per day. This project includes the revamp of
the hydrocracker unit, significant modifications to the
internals of the vacuum distillation and crude distillation
units, the installation of additional heat exchangers, and
modifications to other process units and associated offsite and
utilities.
With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services. Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand, and Vietnam.
* * *
On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company. The company had about
US$217 million of total debt at Sept. 29, 2006.
FOSTER WHEELER: Indian Firm Awards Services Contract
----------------------------------------------------
Foster Wheeler Ltd. revealed that two subsidiaries in its Global
Engineering and Construction Group -- Foster Wheeler Energy
Limited and Foster Wheeler India Private Limited -- have been
awarded services contracts by Indian Oil Corporation Limited for
the Paradip Refinery Project, which is expected to be one of the
largest integrated refinery petrochemicals complexes in India.
This world-scale facility, comprising a new export refinery and
petrochemicals complex, will be built in Orissa State.
The terms of the contracts were not disclosed, and the projects
will be included in the company's first-quarter 2007 bookings.
Foster Wheeler's scope includes the front-end engineering
design, preparation of cost estimates and the overall project
strategy, and supervision of early works on site up to financial
investment decision for the refinery, which is expected in mid-
2008.
The planned new refinery, with a crude processing capacity of 15
million tonnes per annum, will include a fluidized catalytic
cracking unit, an aromatics complex and a polypropylene unit.
The new complex will ultimately produce 700,000 TPA of
polypropylene, 1.2 million TPA of paraxylene, 600,000 TPA of
styrene monomer, along with 10.5 million TPA of refined
petroleum products. This award also includes a detailed
feasibility study for Phase 2 of the development, the Paradip
Naphtha Cracker Project.
"Foster Wheeler is very pleased to be awarded this strategically
important project," said Steve Davies, chairman and chief
executive officer, Foster Wheeler Energy Limited. "This award
reflects our in-depth expertise in refining and petrochemicals
and in the successful integration of refining and petrochemicals
production. We have been active in the Indian market for over
seventy years and it remains a very important market for Foster
Wheeler. We look forward to working with IOCL to deliver a high
quality FEED which meets or exceeds our client's
With operational headquarters in Clinton, New Jersey, Foster
Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of
engineering, procurement, construction, manufacturing, project
development and management, research and plant operation
services. Foster Wheeler serves the refining, upstream oil and
gas, LNG and gas-to-liquids, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries.
The company has offices in Indonesia, China, India, Malaysia,
Singapore, Thailand, and Vietnam.
* * *
On Dec. 17, 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company. The company had about
US$217 million of total debt at Sept. 29, 2006.
PERTAMINA: Readies US$315 Million to Pay Karaha Claim
-----------------------------------------------------
PT Pertamina (Persero) has set aside about US$315 million to pay
possible compensation to Karaha Bodas, which is controlled by
Florida-based utility company FPL Group Inc, over a disputed
geothermal energy project, Reuters reports.
According to the report, the U.S. Supreme Court turned down an
appeal by Pertamina, which was seeking to overturn an
arbitration panel to award US$261 million compensation to Karaha
Bodas, and now Karaha Bodas is just awaiting a ruling by a
Cayman Islands court.
The report recounts that the dispute centers on the project in
Indonesia's West Java province agreed between Pertamina and
Karaha in 1994, but was suspended in 1998 during the Asian
financial crisis.
Pertamina Chief Executive Officer Ari Soemarno said that the
firm had filed a lawsuit alleging fraud in the project, adding
that they are just waiting for the decision in March, Reuters
says.
The report relates that Mr. Soemarno said that if they lose,
there is no other choice but to pay, adding that they have put
in their budget around US$315 million for preparation, since
they have to pay the interest too.
Mr. Soemarno said Pertamina wanted to settle this dispute as
soon as possible to avoid potential problems doing business
abroad, the report point out.
Reuters adds that Karaha, which had spent US$111 million on the
project, in 1999 asked a Swiss arbitration panel to force
Pertamina to repay its lost investment and cover future profits,
adding that the tribunal awarded Karaha US$261 million in 2000.
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
PERTAMINA: Eyes US$500 Million in Loans to Expand Business
----------------------------------------------------------
PT Pertamina (Persero) hopes to sign US$500 million worth of
loan deals in March to help expand its business, Reuters
reports, citing its chief.
According to the report, Pertamina said that it planned to drill
30 exploration wells in 2007 in a bid to boost production.
The report notes that President Director Ari Soemarno, referring
to the London Interbank Offer Rate, said that the lenders are
foreign and domestic banks and the rate is 1.75 percentage
points over LIBOR.
Mr. Soemarno said that this is to finance Pertamina's downstream
and upstream businesses, adding that Swiss bank Credit Suisse is
an arranger for the loan deals, Reuters relates.
The report points out that the company plans to spend around
IDR10 trillion on upstream activities this year, which includes
US$120 million for explorations.
Mr. Soemarno said that Pertamina is expected to book IDR23
trillion net profit in 2007, compared with IDR21 trillion in
2006, the Reuters says.
The report further cites Pertamina's upstream director, Sukusen
Soemarinda, as saying that the firm will increase crude oil
production to 118,000 barrels per day in 2007, compared with
107,000 in 2006.
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
PERTAMINA: Chief Calls For Share Listing by End-2008
----------------------------------------------------
PT Pertamina (Persero) has called for a modest market listing by
the end of 2008 to help improve the firm's efficiency, Reuters
reports.
According to the report, President Director Ari Soemarno
admitted that the target was very ambitious considering the
extent of the company's corporate, operational and financial
problems, but said a listing would force Pertamina to become
more transparent, efficient and professional.
The report notes that Mr. Soemarno did not specify how much he
thought the company should raise from the potential listing but
he estimated the company's market capitalization would be about
US$30 billion by the end of next year, and added that
privatization remained a sensitive subject in Indonesia.
Indonesia's Finance Minister Sri Mulyani Indrawati told the
Financial Times that a flotation in 2008 was a possibility,
though some market watchers believe President Susilo Bambang
Yudhoyono would prefer to wait until after the next general
election, the report relates.
Reuters points out that Pertamina has been a cash cow for the
government for decades and has often been used to finance
projects unrelated to the oil and gas sector.
The Government was in the process of establishing Pertamina's
balance sheet and once that was done, it will be ready to take
any corporate action, the report says.
However, Mr. Indrawati added that a share flotation would have
to be discussed by the Government's privatization committee, the
report adds.
PT Pertamina (Persero) -- http://www.pertamina.com/-- is a
wholly state-owned enterprise. The enactment of Oil and Gas Law
No. 22/2001 in November 2001 and Government Regulation
No.31/2003 has changed its legal status from a special state
owned enterprise into a Limited Liability Company. In carrying
out its activities, PT Pertamina implements an integrated system
from upstream to downstream. Pertamina operates seven oil
refineries with a total output capacity of around 1 million
barrels per day. However, these refineries only cover about
three-quarters of domestic oil demand, with the rest being me by
imports.
In 2003, PT Pertamina finance director Alfred Rohimone disclosed
that the Company's financial condition was in critical condition
because its expenses had surpassed its income due to its
obligation to meet domestic demand with fuel oil bought at
higher prices on the international market. Mr. Rohimone stated
that with a liquidity position below IDR2 trillion, the Company
was already bleeding.
Despite reporting a net profit of IDR3.03 trillion for the first
six months of 2005, Pertamina's failure to service its financial
obligations was pegged as one of the contributors to Indonesia's
decreased income for the year.
In August 2005, Pertamina's debt to United States firm Karaha
Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion.
The debt had increased when, in 2003, a U.S. court ordered the
Company to pay compensation to KBC, relating to an international
arbitration decision, when the Indonesian Government halted a
geothermal project in Karaha Bodas, East Java. Since that time,
the debt has steadily risen due to the Company's failure to pay
the compensation immediately.
=========
J A P A N
=========
ATARI INC: Expands Line-Up of Dragon Ball Z(R) Handheld Games
-------------------------------------------------------------
Atari, Inc. (NASDAQ: ATARD), revealed the development of two new
Dragon Ball Z(R) titles for 2007 release, "Dragon Ball Z(R) Shin
Budokai(TM): Another Road" for the PSP(TM)
PlayStation(R)Portable) system and "Dragon Ball Z(R) Harukanaru
Densetsu" for Nintendo DS(TM).
"Dragon Ball Z Shin Budokai: Another Road" is the sequel to
"Dragon Ball Z: Shin Budokai," one of the best selling PSP(R)
system games launched in 2006. The game takes the intense Wi-Fi
multiplayer battles and thrilling combative gameplay made
popular in last year's hit and adds an improved fighting system
with over 50 new fighting skills and ultimate attacks and the
power to play heroes and villains from the DBZ, Dragon Ball GT
and Dragon Ball worlds. In addition to these all-new features,
"Shin Budokai: Another Road" will send players into a completely
new story arc following the future world of Trunks on his
adventures against rival Majin Buu. Developed by NAMCO BANDAI
Games Inc./Dimps, "Dragon Ball Z Shin Budokai: Another Road" is
slated to release in March 2007 for the PSP(R) system.
"Dragon Ball Z Harukanaru Densetsu" is an all-new DBZ(R)
experience unlike any other for the Nintendo DS. Harukanaru
Densetsu combines strategic card based gameplay and role playing
to deliver a game that is easy to understand but hard to master.
Players' progression is determined through their use of the
cards to evolve characters, strengthen moves and create new
moves. Developed by NAMCO BANDAI Games Inc., "Dragon Ball Z
Harukanaru Densetsu" will be available on Nintendo DS in Spring
2007.
"Newcomers and faithful fans of DBZ will be thrilled with these
two new handheld games," said Emily Anadu, Product Manager,
Atari, Inc. "Shin Budokai: Another Road lets players take the
DBZ universe over a Wi-Fi network with an exciting new story
that is sure to grab long-time fans while Harukanaru Densetsu
tackles a new form of RPG with card-playing -- an interesting
innovation for the DBZ series that we believe will attract
gamers who enjoy strategy based gameplay."
Ms. Anadu continued, "Both games represent the innovation and
evolution that characterize the DBZ experience and maintain the
Dragon Ball Z reputation as one of the best anime and cartoon-
based series of all time."
Dragon Ball Z is the gold standard of anime-based video games,
with more than 26 different games and over 10 million units sold
since May 2002.
For additional information about "Dragon Ball Z Shin Budokai:
Another Road" and "Dragon Ball Z Harukanaru Densetsu," please
visit http://www.atari.com/dragonballz/
About FUNimation Entertainment
FUNimation(R) Entertainment, a wholly-owned subsidiary of
Navarre Corporation (NASDAQ: NAVR), is the leading company for
home video sales of Japanese animation in the United States.
FUNimation is known for acquiring top-rated anime series from
Japan and for developing some of North America's most popular
anime series. The company has a proven formula for launching
and advancing brands, and manages a full spectrum of rights for
most of its brands including broadcasting, licensing,
production, internet, and home video sales and distribution.
For images, or more information on FUNimation or any of its
properties, contact Jeff Dronen at 817-788-0627, ext. 251 or
jeff.dronen@funimation.com
About Atari
New York-based Atari, Inc. (Nasdaq: ATAR) --
http://www.atari.com/-- develops interactive games for all
platforms and is one of the largest third-party publishers of
interactive entertainment software in the U.S. The Company's
1,000+ titles include franchises such as The Matrix(TM) (Enter
The Matrix and The Matrix: Path of Neo), and Test Drive(R); and
mass-market and children's franchises such as Nickelodeon's
Blue's Clues(TM) and Dora the Explorer(TM), and Dragon Ball
Z(R). Atari, Inc. is a majority-owned subsidiary of France-
based Infogrames Entertainment SA (Euronext - ISIN: FR-
0000052573), the largest interactive games publisher in Europe.
Atari has offices in Brazil, the United Kingdom and Japan.
* * *
Going Concern Doubt
Deloitte & Touche LLP expressed substantial doubt about Atari,
Inc.'s ability to continue as a going concern after auditing the
Company's financial statements for the for the fiscal years
ended March 31, 2006 and 2005. The auditing firm pointed to
Atari's significant operating losses and the expiration of its
line of credit facility.
JAPAN AIRLINES: In Talks with Embraer on Plane Orders
-----------------------------------------------------
Japan Airlines Corp. and Empresa Brasileira de Aeronautica SA
are in discussions for an order of up to 10 regional jets,
Bloomberg News reports.
Bloomberg's Chan Sue Ling relates that Japan Airlines wants to
add smaller planes to its fleet as it prepares to meet higher
demand for regional air travel after Tokyo's Haneda airport
completes its expansion.
Embraer, which is known as the world's fourth-biggest aircraft
maker, is proposing the Embraer 170 and 190, the report cites
Bruce Peddle, managing director for Embraer's Asia-Pacific
market, as saying in an interview.
Bloomberg notes that the Embraer 170, with a 78-passenger
capacity and a range of 2,000 nautical miles, cost
US$27.5 million each at list prices. On the other hand, the
Embraer 190, which can carry as many as 108 passengers and reach
a maximum of 2,300 nautical miles, cost US$33 million.
Winning Japan Airline's order, worth as much as US$330 million
at list prices, will help Embraer break into the Japanese market
for smaller aircraft dominated by rival Bombardier Inc,
Bloomberg says. Moreover, an order from Asia's largest carrier
by sales will boost Embraer's bid to increase the Asia-Pacific
region's contribution to its total sales to 14% in 20 years from
the current 8%.
"The number of aircraft and timing of introduction are not
fixed, but we are thinking of introducing them in time for the
expansion of slots," Stephen Pearlman, spokesman at Japan
Airlines, said in an e-mail correspondence with Bloomberg.
"There is no deadline for the decision and we have not indicated
the possible numbers required."
Bloomberg points out that Japan Airlines wants to introduce
smaller, more fuel-efficient aircraft into its fleet and aims to
reduce the number of different aircraft types it operates from
nine as at the end of 2005 to eight by the end of 2010.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on
October 10, 2006, that Moody's Investors Service affirmed its
Ba3 long-term debt ratings and issuer ratings for both Japan
Airlines International Co., Ltd and Japan Airlines Domestic Co.,
Ltd. The rating affirmation is in response to the planned
restructuring of the Japan Airlines Corporation group on Oct. 1,
2006 with the completion of the merger of JAL's two operating
subsidiaries, JAL International and Japan Airlines Domestic.
JAL International will be the surviving company. The rating
outlook is stable.
Meanwhile, Fitch Ratings Tokyo analyst Satoru Aoyama said that
the company's debt obligations and expenses for new aircraft
have placed it in an unfavorable financial position. Fitch
assigned a BB- rating on the Company, which is three notches
lower than investment grade.
On July 20, 2006, Standard & Poor's Ratings Services had
affirmed its B+ long-term corporate credit and senior unsecured
debt ratings on the Company.
KOBE STEEL: To Invest JPY5 Billion To Raise Titanium Capacity
-------------------------------------------------------------
Kobe Steel, Ltd., plans to invest a total of roughly
JPY5 billion in four projects to upgrade and expand its titanium
production facilities.
Kobe Steel will construct a new titanium melting shop at its
Takasago Works in Hyogo Prefecture in western Japan to be
completed in January 2008. It will also upgrade the counterblow
hammer for closed die forging at Takasago and construct a new
welded tube line at group company Kobe Special Tube Co., Ltd. in
Shimonoseki, Yamaguchi Prefecture. Both projects are scheduled
for completion in May 2007. Completed last month was an
expansion of the continuous annealing-pickling line for titanium
sheet at Kakogawa Works in Hyogo Prefecture.
The projects will increase the integrated production capacity of
titanium mill products, enabling Kobe Steel to manufacture more
titanium alloy forgings for next-generation aircraft engines and
meet the growing demand in China and the Middle East for pure
titanium products used in infrastructure projects. The capital
investments cover Kobe Steel's titanium production facilities at
all locations including Takasago Works, Kakogawa Works and Kobe
Special Tube. Under its Fiscal 2006-2008 Medium-Term Business
Plan, Kobe Steel is aiming to increase sales and add further
value to its "Only One" upper-end products.
Japan's titanium industry has been undergoing strong growth in
recent years, and production and shipments of titanium mill
products are anticipated to be robust in fiscal year 2006,
ending in March 2007. In addition to Japanese manufacturers,
this trend is similar worldwide. Bolstered by rising aircraft
orders and growing demand from the energy industries, demand for
titanium products is brisk.
Kobe Steel pioneered Japan's titanium industry when in 1949 it
became the first company to begin research and development of
this material. With over a half century of experience, Kobe
Steel is Japan's only integrated producer of titanium mill
products with operations ranging from melting to mill product
manufacturing. The company contributes to the development of
industry by supplying a wide variety of titanium mill products.
Upstream capital investment
1. Construction of additional titanium melt shop at Takasago
Works
Location: Takasago, Hyogo Prefecture
Start-up: January 2008
The new melt shop will be built adjacent to the current melt
shops to stabilize production and improve operational
efficiency. Production capacity is anticipated to increase
30% to 40%. The new shop will use the company's proprietary
"Kobe method" (vacuum arc remelting method), which makes
possible the use of titanium scrap. Kobe Steel intends to
make the new facility the most cost competitive melt shop in
Japan. Kobe Steel has also started mulling a further
capacity increase.
Downstream capital investments
2. Upgrade of the counterblow hammer for closed die forging at
Takasago Works
Location: Takasago, Hyogo Prefecture
Start-up: May 2007
Investment: Computer control and stabilization of hammer blow
energy
Japan's largest counterblow hammer is used to manufacture
closed die forgings for jet engine disks. Supporting the
growing aircraft business of Japan's heavy industry
manufacturers, Kobe Steel is meeting the need for value-added
titanium alloy forged products used in aircraft engine disks
and other applications.
3. Higher production capacity of continuous annealing-pickling
line at Kakogawa Works
Location: Kakogawa, Hyogo Prefecture
Start-up: December 2006 (already in operation)
The dedicated continuous annealing-pickling line for titanium
sheet, the only one of its type in the world, went back into
operation last month. Throughput capacity has increased
roughly by 30%. The hot and cold strip mills, located
adjacent and used in steel production, also roll titanium
sheet. The proximity to the strip mills contributes to
maintaining and improving the integrated quality assurance
system for titanium sheet products.
4. Construction of new titanium welded tube line at Kobe Special
Tube
Location: Shimonoseki, Yamaguchi Prefecture
Start-up: May 2007
The new dedicated line at Japan's largest titanium welded
tube plant will increase production capacity by 30%. It will
help meet demand from power plants in China, seawater
desalination plants in the Middle East, and other
applications. In addition to the higher production capacity,
the layout will be improved, which will further increase
productivity.
About Kobe Steel
Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel,
Limited -- http://www.kobelco.co.jp/english/corp/index.html--
is one of Japan's leading steel makers, as well as the top
supplier of aluminum and copper products. Other businesses
include welding consumables, urban infrastructure and plant
engineering services, and industrial machinery.
Kobe Steel has offices in New York, Singapore, Bangkok and
Beijing.
As the Troubled Company Reporter - Asia Pacific reported on
May 31, 2006, Fitch Ratings has upgraded the long-term foreign
and local currency Issuer Default Ratings of Japanese steel-
maker Kobe Steel to BB+ from BB. At the same time, the agency
affirmed Kobelco's short-term IDR at B. The outlook on the
ratings is positive.
MICRON TECHNOLOGY: Credit Suisse Upgrade Firm to "Outperform"
-------------------------------------------------------------
Analysts at Credit Suisse upgraded Micron Technology Inc. from
"neutral" to "outperform," while reducing their estimates for
the company, newratings.com reports. The target price is set to
US$18.
The Credit Suisse analysts stated that the company's risk/reward
profile is attractive in view of the potential improvement in
the DRAM sector's results and better-than-expected trends in the
seasonally weak 1H07, the report relates. The EPS estimate for
F2Q has been reduced from US$0.12 to US$0.01 to reflect concerns
over the inventory and pricing trends.
About Micron
Micron Technology, Inc. (NYSE:MU) -- http://www.micron.com/--
is a worldwide provider of semiconductor solutions. Through its
worldwide operations, Micron manufactures and markets DRAMs,
NAND flash memory, CMOS image sensors, other semiconductor
components, and memory modules for use in leading-edge
computing, consumer, networking, and mobile products. Micron
has worldwide locations including those in Japan, China, India,
Korea, Singapore, and Taiwan.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 16, 2007, that Standard & Poor's Ratings Services raised
its corporate credit rating on Micron Technology Inc. to 'BB-'
from 'B+'. The outlook is stable.
=========
K O R E A
=========
DURA AUTOMOTIVE: Judge Carey Okays Ernst & Young as Tax Advisors
----------------------------------------------------------------
The Honorable Kevin J. Carey of the United States Bankruptcy
Court for the District of Delaware authorized Dura Automotive
Systems Inc. and its debtor-affiliates to employ Ernst & Young
as tax advisory and risk advisory services providers, nunc pro
tunc to Oct. 30, 2006.
The Debtors engaged Ernst & Young on May 6, 2005, to provide
internal audit services, services with respect to compliance
with Section 404 of the Sarbanes-Oxley Act of 2002, and loaned
staff services.
The services of Ernst & Young are necessary to enable the
Debtors to maximize the value of their estates and to reorganize
successfully.
The firm is expected to provide tax advisory services to the
Debtors:
(1) FIN 48 implementation services, which include assisting
the Debtors in assessing their current controls and
processes employed in the financial reporting of
uncertain tax positions, and in making appropriate
revisions to meet the requirements under Sarbanes-Oxley
Section 404 and other financial reports;
(2) international compliance review services, including a
review of information to be filed with the U.S. Internal
Revenue Service and all related calculations the Debtors
have identified as material, or that may need managerial
review; and
(3) routine on-call tax advisory services.
The risk advisory services the firm will provide are:
(a) internal audit reaming services, including risk
assessment, audit plan and execution;
(b) business risk services ongoing assistance related to
Section 404 of the Sarbanes-Oxley Act of 2002, including
the preparation of the Debtors' documentation, testing
and evaluation of internal controls over financial
reporting for their significant accounts and processes;
(c) tax risk advisory services ongoing assistance related to
Section 404 of the Sarbanes-Oxley Act of 2002, including
assistance to management in the preparation of its
documentation, testing, and evaluation of internal
controls over financial reporting for the Company's state
and federal tax income tax provision;
(d) loan staff discrete projects in conjunction with share
service center projects including designing a centralized
check disbursement process and the creation of a cash
disbursements journal on a "loaned staff" basis; and
(e) technology and security risk services and information
technology services, including assisting Dura Internal
Audit with testing IT general and application controls in
both the North American and European regions.
Ernst & Young will coordinate any services performed at the
Debtors' request with the Debtors' other professionals to avoid
duplication of effort.
The Debtors will pay Ernst & Young based on its standard hourly
rates:
Loaned Staff
Level BRS TSRS/IT Tax Services
----- --- ------- --- --------
Partner US$340 US$359 US$595 N/A
Senior Manager 242 328 464 N/A
Manager 196 291 323 US$196
Senior 132 223 226 132
Staff 113 162 226 113
The Debtors requested a single "global" retention, whereby the
vast international resources of Ernst & Young could be brought
to meet the Debtors' needs, including non-Debtor foreign
affiliates, while maintaining clarity that all duties are owed
to the Debtors.
The Engagement Letter provides that in rendering services to the
Debtors, the firm may subcontract a portion of the services to
certain other Ernst & Young affiliates, including other member
firms of Ernst & Young Global Limited or its affiliates.
Ernst & Young intends to pay EYGL member firms directly for
their services and apply for reimbursement by the Debtors of any
payments made any Ernst & Young to the EYGL Member Firms.
The Debtors will indemnify Ernst & Young for any claim arising
from, related to or in connection with its performance of
services to the Debtors. The Debtors will have no obligation to
indemnify any person, or provide contribution or reimbursement
for any claim or expense arising from gross negligence or
willful
misconduct.
Randall J. Miller, the coordinating principal for Ernst & Young,
assured the Court that the firm is a disinterested person, as
defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia: China,
Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 6,
2006, that Fitch Ratings placed one tranche from one public
collateralized debt obligation and one tranche from private CDO
on Rating Watch Negative following Dura Automotive Corp.'s
filing for protection under Chapter 11.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
* * *
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'
special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors'
investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors. As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities. (Dura Automotive Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTOMOTIVE: Brunswick Hired as Communications Consultants
--------------------------------------------------------------
The Honorable Kevin J. Carey of the United States Bankruptcy
Court for the District of Delaware authorized Dura Automotive
Systems Inc. and its debtor-affiliates to employ Brunswick Group
LLC as their corporate communications consultants, effective as
of Oct. 30, 2006.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 8, 2006, Brunswick is expected to:
(a) prepare materials to be distributed to the Debtors'
employees explaining the impact of the Reorganization
Cases;
(b) draft correspondence to creditors, vendors, employees and
other interested parties regarding the Reorganization
Cases;
(c) prepare written guidelines for head office and location
managers to assist them in addressing employee and
customer concerns;
(d) prepare news releases for dissemination to the media for
distribution;
(e) interface and coordinate media reports to contain the
correct facts and the Debtors' perspective as an ongoing
business;
(f) assist the Debtors in maintaining their public image as a
viable business and going concern during the Chapter 11
reorganization process;
(g) assist the Debtors, and develop internal systems, in
handling inquiries;
(h) coordinate public relations services with a third party
making an investment in the Debtors;
(i) perform other strategic communications consulting
services as may be required by the Debtors in the
Reorganization Cases; and
(j) provide additional public relations services appropriate
and necessary to the benefit of the Debtors' estates.
The Debtors will pay Brunswick based on the firm's hourly rates:
Partner US$700
Director US$550
Associate US$450
AD US$325
Exec US$225
The Debtors will also reimburse Brunswick for its actual and
necessary out-of-pocket expenses. Production-related
expenditures -- e.g., photography, printing, etc. -- will be
charged to the Debtors at cost.
The Debtors have made prepetition payments totaling US$227,917
to Brunswick in the year preceding the Petition Date.
The payments have been applied to outstanding invoices and on
account of fees and expenses incurred in providing services to
the Debtors in connection with the restructuring activities.
The payments received include:
(a) US$91,495 for fees and expenses incurred for periods
before October 13, 2006, and
(b) US$136,422 on October 24, 2006.
The Debtors do not owe Brunswick any amount for services
performed or expenses incurred prior to the Petition Date and
thus Brunswick is not a prepetition creditor of the Debtors.
Robert Mead, a partner at Brunswick, assured the Court that his
firm is a "disinterested person" within the meaning of Section
101(14) of the Bankruptcy Code, and it does not hold nor
represent any interest adverse to the Debtors or their estates.
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries. The company has three locations in Asia: China,
Japan and Korea.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 6,
2006, that Fitch Ratings placed one tranche from one public
collateralized debt obligation and one tranche from private CDO
on Rating Watch Negative following Dura Automotive Corp.'s
filing for protection under Chapter 11.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
* * *
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'
special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors'
investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors. As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities. (Dura Automotive Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
HYNIX SEMICONDUCTOR: Fab-Expansion Plan Gets Partial Approval
-------------------------------------------------------------
The Korean Government partially approved Hynix Semiconductor
Inc.'s plan to expand its microchip production line, press
reports say.
According to The Chosun Ilbo, the Government gave its nod for
Hynix Semiconductor to develop a wafer plant in Cheongju, but
rejected the company's planned facility expansion at Icheon.
Hynix had initially proposed the construction of two new wafer
facilities in Icheon for 2007 and 2009, and one for Cheongju in
2008, Korean.net relates. After the Government initially
rejected the plan, the company submitted a revised proposal to
first expand its plant in Cheongju this year, and enlarge its
Icheon factory in 2008. The company will decide on a site for
another wafer production facility in 2009.
The Icheon complex sits in a zone subject to strict
environmental regulations.
"Hynix would not be allowed to build an additional wafer plant
at Icheon, an environmentally protected area," AFX News Limited
quotes Lee Jae-Hoon, head of Korea's Ministry of Commerce,
Industry and Energy, as saying.
According to AFX News, Icheon is near a large reservoir that
provides drinking water to Seoul.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 8, 2006, James Kim, Hynix vice president of investor
relations, believes that building fabs at Icheon is the
company's most cost-effective option because it already has
land, research center and infrastructure there.
The Ministry, however, assured Hynix that efforts will be made
to help the company find alternative locations so as not to
seriously affect the original investment timetable.
Hynix is pushing to invest KRW13.5 trillion (USUS$14.3 billion)
in expanding its plants in Cheongju and Icheon, the Korean
Government's Web site states.
Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.
WOORI BANK: To Invest USUS$500 Mil. on New Chinese Subsidiary
-------------------------------------------------------------
To advance its retail banking business, Woori Bank plans to set
up a subsidiary in China.
The Chinese unit will be set up in Shanghai or Beijing with an
initial capital base of US$500 million, The Korea Herald
reports, citing a statement made by the bank.
"Woori's four existing branches in Beijing, Shanghai, Shenzhen
and Suzhou will be put under the new unit," the paper adds.
"Services for Korean companies and residents in China have
reached saturation point amid the fierce competition among
domestic lenders," The Korea Times quotes Lee Chong-Hwi, deputy
president of Woori Bank, as saying. "So, to find new sources of
income and actively cope with rapidly changing financial market
environment in China, we have decided to set up a subsidiary.
It will be the turning point for Woori Bank to emerge as the one
of the leading banks in the Asia-pacific region."
Woori plans to expand its reach to other Chinese cities and even
take over local banks after the subsidiary is set up.
Woori Bank -- http://www.wooribank.com/-- is a government-owned
bank headquartered in Seoul, Korea. The bank was established in
2002, and includes the former Hanbit Bank, Sangup Bank and Hanil
Bank. It is a part of the Woori Financial Group. It has
branches all over the world, including in New York, Los Angeles,
Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore,
Moscow, London, and Dhaka.
Fitch Ratings gave Woori Bank an individual rating of 'B/C'
effective July 20, 2005.
Moody's Investors Service gave Woori a 'D+' Bank Financial
Strength Rating effective March 14, 2006.
===============
M A L A Y S I A
===============
NORTH BORNEO: Bursa to Delist Securities on February 6
------------------------------------------------------
The Bursa Malaysia Securities Bhd decided to delist the
securities of The North Borneo Corp Bhd from its official list
of securities on February 6, 2007, at 9:00 a.m.
According to the bourse, the company does not have the adequate
level of financial condition to warrant continued listing on the
Official List of Bursa Securities.
Securities of the company, however, may remain deposited with
the Bursa Depository. Shareholders who intend to hold their
securities in the form of physical certificate can withdraw them
from Bursa Depository at anytime after the securities of the
Company are delisted from the Official List.
* * *
Headquartered in Sabah, Malaysia, The North Borneo Corporation
Berhad engages in the management of forest management unit and
investment holding. The Group operates in Malaysia and Bermuda.
Due to its continuous losses, the Kuala Lumpur Stock Exchange
placed the Company under the Practice Note 4/2001 category in
April 2001 and was ordered to start regularizing its financial
condition. On April 28, 2005, the Securities Commission has
agreed to North Borneo's proposal to dispose of its business as
part of the Company's efforts to regularize its finances and
restructure its debts. The Plan, however, met objections from
creditors. On March 6, 2006, two scheme creditors -- Sabah
Development Bank and Prokhas Sdn Bhd -- withdrew their support
of the Company's proposed debt restructuring, saying that they
are no longer agreeable to the terms of the planned business
disposal as part of the restructuring program.
The company's Sept. 30, 2006 balance sheet showed a shareholders
funds' deficit of MYR112.969 million.
SETEGAP BERHAD: Court Extends Restraining Order Until April 21
--------------------------------------------------------------
The High Court of Kuala Lumpur extended the Restraining Order
pertaining to Setegap Bhd until April 21, 2007.
According to a Troubled Company Reporter - Asia Pacific report
on Oct. 23, 2006, the Restraining Order was granted to allow the
company to implement its debt-restructuring plan.
Setegap's Plan consists of a proposed:
-- debt settlement of all outstanding debt owed by the
Company to its secured lenders and trade creditors for a
total of MYR87.6 million;
-- exchange of Setegap shareholders' ordinary shares of
MYR1.00 each with Newco, or new company, shares on the
basis of one Newco share for every five existing Setegap
shares;
-- transfer of listing status to Newco; and
-- disposal by the Newco of the entire issued and paid-up
capital of Setegap for a nominal consideration of MYR1.00.
Moreover, the proposed plan were added with three new
conditions, which are:
-- to give access the independent Director, Mr. Lai Yoke
Heong @ Lai Yoke Hoong to all the Company's applicants'
accounts;
-- make Director Heong a co-signatory of all the
applicants' bank accounts; and
-- to pay promptly the Director's fees and out-of-pocket
expenses by the applicants.
* * *
Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's
principal activities consist of the construction and maintenance
of roads, railways and building, including services rendered on
quarrying. The Company's other activities include manufacturing
and selling offroad construction equipment, asphalt plants,
mixing plants, asphalt emulsions and premix. The Group also
provides mechanical and electrical services, leases machinery
and investment holding.
Setegap's cash flow and profitability were affected by the Asian
financial crisis in 1997/98.
As of September 30, 2006, Setegap's balance sheet showed
solvency problems with total assets of MYR71.40 million and
total liabilities of MYR190.92 million. Shareholders' deficit
reached MYR119.52 million.
SUREMAX GROUP: Receives Summon and Claim Statement from Unipati
---------------------------------------------------------------
Unipati Concrete Sdn Bhd has served Suremax Group Bhd along with
its subsidiary, Suremax Marketing Sdn Bhd, with Summons and a
Statement of Claims.
These, among others, are what Unipati claims from Suremax Group
and its unit:
(a) Principal amount owing of MYR11,858.80;
(b) Interest accrued as at September 30, 2006 amounting to
MYR4,956.00;
(c) Interest on MYR11,858.80 at the rate of 1.5% per month
calculated from 1 October 2006 until the date of full
settlement;
(d) Cost; and
(e) Other further relief as the Honorable Court deems reasonable
and just.
The Summons has been fixed for mention on May 7, 2007.
No material financial impact is expected to come out from the
summons, Suremax clarifies.
* * *
Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works. The firm's
other activities include the provision of property management
services and building construction. The Group is also involved
in the manufacture and sale of ready mixed concrete.
The Troubled Company Reporter - Asia Pacific reported on May 16,
2006, that based on the Audited Financial Statements of Suremax
Group for the year ended August 31, 2005, the company's auditors
have expressed a modified opinion with emphasis on Suremax
ability to continue as a going concern. Furthermore, based on
the company's six months accounts to February 28, 2006,
Suremax's shareholders' equity on a consolidated basis is less
than 50% of its issued and paid-up capital. As such, Suremax is
an affected listed issuer of the Bursa Malaysia Securities
Berhad's Amended Practice Note 17 category.
SUREMAX GROUP: Bursa Extends Plan Filing Deadline to March 8
------------------------------------------------------------
At Suremax Group Bhd's request, Bursa Malaysia Securities Bhd
extended the company's deadline to file a regularization plan.
The bourse, in its letter addressed to the company, extended
until:
a. February 8, 2007, the time within which the company may
make the Requisite Announcement relating to its
regularization plans in accordance with paragraph 8.14C of
the Listing Requirements and PN17; and
b. March 8, 2007, or one month from the date of the RA, the
time within which the company may submit its
regularization plans to the Securities Commission and
other relevant authorities for approval.
In the event the company submits its regularization plans to the
Approving Authorities for approval within the Extended Deadline,
the Bursa Malaysia will await the outcome of the company's
submission. Moreover, the company must proceed to implement its
regularization plans expeditiously within the timeframes or
extended timeframes stipulated by the Approving Authorities.
Bursa Malaysia said that its decision is without prejudice to
its right to commence suspension and delisting procedures
against the Company in the event that:
1. Suremax fails to make the RA on or before Feb. 8;
2. Suremax fails to submit its regularization plans to the
Approving Authorities for approval on or before the
Extended Deadline;
3. Suremax fails to obtain the approval from any of the
Approving Authorities necessary for the implementation of
its Regularization plans and does not appeal to the
Approving Authorities within the timeframe prescribed to
file an appeal;
4. Suremax does not succeed in its appeal against the
decision of the Approving Authorities; or
5. Suremax fails to implement its regularization plans
within the time frame or extended time frames stipulated
by the Approving Authorities.
The suspension will be imposed on the trading of the listed
securities of the company upon the expiry of five market days
from the date the company is notified by Bursa Malaysia or such
other date specified.
* * *
Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is
engaged in property development, construction, trading in
construction materials and sub-contracting works. The firm's
other activities include the provision of property management
services and building construction. The Group is also involved
in the manufacture and sale of ready mixed concrete.
The Troubled Company Reporter - Asia Pacific reported on May 16,
2006, that based on the Audited Financial Statements of Suremax
Group for the year ended August 31, 2005, the company's auditors
have expressed a modified opinion with emphasis on Suremax
ability to continue as a going concern. Furthermore, based on
the company's six months accounts to February 28, 2006,
Suremax's shareholders' equity on a consolidated basis is less
than 50% of its issued and paid-up capital. As such, Suremax is
an affected listed issuer of the Bursa Malaysia Securities
Berhad's Amended Practice Note 17 category.
SYARIKAT KAYU: Gets Plan Filing Extension Until February 7
----------------------------------------------------------
As an affected listed issuer under the Amended PN17 category of
the Bursa Malaysia Securities Bhd's official list, Syarikat Kayu
Wangi Bhd is required to submit a plan to regularize its
financial condition and disclose details of the plan and its
implementation on Jan. 7, 2007.
Syarikat Kayu asked the Bursa Malaysia to extend the plan
submission deadline to Feb. 7, 2007. However, the bourse
rejected the company's extension request and instead decided to
commence a delisting procedure against the company's securities.
On Jan. 5, 2007, the Troubled Company Reporter - Asia Pacific
reported that the company appealed the Bursa's rejection of its
extension request. Accordingly, the bourse deferred the
delisting procedure on the company's securities pending the
decision on the appeal.
In an update, Bursa Malaysia decided to grant the company an
extension of time until February 7, 2007, to submit its
regularization plans to the Securities Commission and other
relevant authorities for approval.
Bursa Securities further decided that:
(a) in the event the company submits its regularization plans
to the Approving Authorities for approval within the
Extended Deadline, the Bursa Malaysia will await the
outcome of the company's submission; and
(b) the company must proceed to implement its regularization
plans expeditiously within the timeframes or extended
timeframes stipulated by the Approving Authorities in the
event its approval.
* * *
Headquartered in Johor, Malaysia, Syarikat Kayu Wangi Berhad is
principally involved in the development of residential and
commercial projects. Its other activities include housing
construction, production of sawn timber, manufacture of
prefabricated timber rooftrusses and timber trading. The
Company first made a loss in 1999 when it defaulted on its first
bond payment. The Company has failed to turn its finances
around and has been suffering continuous losses since then.
The company was classified as an affected listed issuer under
the Bursa Malaysia's Amended PN17/2005 category on May 8, 2006,
since its audited financial statements for the year ended Nov.
30, 2005, showed that the company's shareholders' equity is
MYR7,189,000, which is less than 25% of the company's issued and
paid up capital.
Syarikat Kayu is currently in the process of preparing its
Regularization Plan. Once completed, the Requisite Announcement
outlining the Regularization Plan will be made to Bursa
Securities.
TAP RESOURCES: Extends Completion of Shares Sale Agreement
----------------------------------------------------------
Tap Resources Bhd and Encik Yusoff bin Berahim agreed to extend
the completion of the Shares Sale Agreement for the shares in
Pola Unik Sdn Bhd until July 2007.
The Troubled Company Reporter - Asia Pacific reported on
July 25, 2006, that Tap Resources and Yusoff bin Berahin had
entered a same deal seeking extension to complete the share sale
in Pola Unik.
On July 19, 2005, the TCR-AP reported that Tap entered into a
Shares Sale Agreement with Yusoff bin Berahim for the
acquisition of 27,500 ordinary shares of MYR1.00 each
representing 11% of the total issued and paid-up share capital
in Pola Unik for a purchase consideration of MYR3,000,000.
* * *
TAP Resources Berhad is principally engaged in property
development. Its other activities include general contracting;
manufacturing and general trading of building materials,
construction chemicals, ready mixed concrete and non-baked
bricks; installing air-conditioners, process control and switch
gear automation; selling of electrical goods; and investment
holding. The Group operates wholly in Malaysia.
The company is classified under the PN17 category because, for
the nine months ended January 31, 2006, its shareholders' equity
on a consolidated basis is equal to or less than 25% of the
issued and paid up capital of the Company and such shareholders
equity is less than the minimum issued and paid up capital as
required under paragraph 8.16A (1) of the Listing Requirements
of Bursa Malaysia Securities Berhad, plus it has a default in
payments and is unable to provide a solvency declaration.
TRIPLC BERHAD: Posts MYR469,000 Net Profit in 2nd Quarter 2007
--------------------------------------------------------------
Triplc Bhd posted a MYR469,000 net profit on MYR95.20 million of
revenues in the second quarter ended Nov. 30, 2006, as compared
with the MYR1.37 million net profit on MYR26.98 million of
revenues in the corresponding period in 2005.
As of end-November 2006, the company's balance sheet showed
strained liquidity with current assets of MYR198.09 million and
current liabilities of MYR225.11 million.
Triplc's balance sheet as of Nov. 31, 2006, showed total assets
of MYR324.1 million and total liabilities of MYR303.02 million.
Shareholders' equity in the company reached MYR21.04 million.
* * *
TRIPLC Berhad, formerly U-Wood Holdings Berhad, is a Malaysian-
based provider of property development, construction and related
project management services. The Company operates in four
segments: property development, which is engaged in the
development of residential and commercial properties; property
construction, which is involved in the construction of
commercial properties; manufacturing and trading, engaged in the
manufacturing and trading of plywood, blockboard and timber
products, and others, which is engaged in investment holding and
investment of property.
On May 8, 2006, the company has been classified as an affected
listed issuer of the Amended Practice Note 17 category of the
Bursa Malaysia Securities Bhd. Accordingly, as stipulated in
the listing requirements of the bourse, the company is required
to submit a regularization plan to relevant authorities which is
aimed at stabilizing the company's financial condition.
=====================
N E W Z E A L A N D
=====================
A-MART EDEN: Faces Liquidation Proceedings
------------------------------------------
A petition to liquidate A-Mart Eden Restaurant Group Ltd will be
heard before the High Court of Auckland on Feb. 1, 2007, at
10:45 a.m.
Paul Cheng & Co, suing as a firm, filed the petition with the
Court on Oct. 31, 2006.
Paul Cheng's solicitor can be reached at:
Malcolm David Whitlock
Whitlock & Co.
c/o Level 2, Baycorp House
15 Hopetoun Street, Auckland
New Zealand
ANVIL HOLDINGS: Court to Hear Liquidation Hearing on Feb. 1
-----------------------------------------------------------
On Nov. 3, 2006, the Commissioner of Inland Revenue filed a
petition to liquidate Anvil Holdings Ltd.
The petition will be heard before the High Court of Auckland on
Feb. 1, 2007, at 10:45 a.m.
The CIR's solicitor can be reached at:
Justine Berryman
Technical and Legal Support Group
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue (PO Box 33150)
Takapuna, Auckland
New Zealand
Telephone:(09) 984 1538
Facsimile:(09) 984 3116
COURTHOUSE CAFE: Court Appoints Joint Liquidators
-------------------------------------------------
On Nov. 23, 2006, the High Court of Nelson appointed Iain Andrew
Nellies and Wayne John Deuchrass as joint and several
liquidators of Courthouse Cafe & Gallery Ltd.
The Joint and Several Liquidators can be reached at:
Iain Andrew Nellies
Wayne John Deuchrass
Insolvency Management Limited
Level 1, 148 Victoria Street (PO Box 13401)
Christchurch
New Zealand
G-GROUP LTD: Commences Liquidation Proceedings
----------------------------------------------
On Dec. 5, 2006, the shareholders of G-Group Ltd resolved to
liquidate the company's business and appointed Iain Andrew
Nellies and Paul William Gerrard Jenkins as joint and several
liquidators.
The Joint and Several Liquidators can be reached at:
Iain Andrew Nellies
Paul William Gerrard Jenkins
Insolvency Management Limited
Level 3, Burns House
10 George Street (PO Box 1058)
Dunedin
New Zealand
GUELPH ENTERPRISES: Court Hears Liquidation Hearing
---------------------------------------------------
The High Court of Auckland heard a liquidation petition filed
against Guelph Enterprises Ltd on Jan. 25, 2007.
John Green & Associates Ltd filed the petition with the Court on
Oct. 3, 2006.
John Green's solicitor can be reached at:
Peter C. Gilbert
Dransfield House
335 Willis Street (PO Box 2420)
Wellington
New Zealand
Telephone:(04) 385 2507
Facsimile:(04) 385 2505
KIDS AND FAMILIES: Court Issues Liquidation Order
-------------------------------------------------
On Nov. 23, 2006, the High Court of Nelson ordered Kids and
Families Are Us Ltd to liquidate its business and appointed Iain
Andrew Nellies and Wayne John Deuchrass as joint and several
liquidators.
As reported by the Troubled Company Reporter - Asia Pacific, the
Commissioner of Inland Revenue filed a liquidation petition
against the company. Accordingly, the Court heard the petition
on Nov. 23, 2006.
The Joint and Several Liquidators can be reached at:
Iain Andrew Nellies
Wayne John Deuchrass
Insolvency Management Limited
Level 1, 148 Victoria Street (PO Box 13401)
Christchurch
New Zealand
M & S PROPERTY: Official Assignee Acts as Liquidator
----------------------------------------------------
On Dec. 18, 2006, the Official Assignee of M & S Property
Developments Ltd was appointed as the company's liquidator.
As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Wellington heard a liquidation petition against
the company on Nov. 21, 2006. The petition was filed by GHD
Ltd.
The Liquidator can be reached at:
Official Assignee
Insolvency and Trustee Service
Private Bag 4714, Christchurch
New Zealand
Telephone: 0508 467 658
Website: http://www.insolvency.govt.nz
MILTON CONSTRUCTION: Nellies and Deuchrass to Act as Liquidators
----------------------------------------------------------------
On Dec. 11, 2006, the High Court of Christchurch appointed Iain
Andrew Nellies and Wayne John Deuchrass as joint and several
liquidators of Milton Construction Ltd.
According to the Troubled Company Reporter - Asia Pacific, the
High Court of Christchurch heard a liquidation petition against
the company on Dec. 11, 2006. The Commissioner of Inland
Revenue filed the petition.
The Joint and Several Liquidators can be reached at:
Iain Andrew Nellies
Wayne John Deuchrass
Insolvency Management Limited
Level 1, 148 Victoria Street (PO Box 13401)
Christchurch
New Zealand
PIPIRIKI FARMS: Court to Hear Liquidation Petition on Jan. 31
-------------------------------------------------------------
On Dec. 13, 2006, Williams & Kettle -- part of PGG Wrightson
Ltd, formerly known as Williams & Kettle Ltd -- filed before the
High Court of Wanganui a petition to liquidate Pipiriki Farms
Ltd.
The petition will be heard on Jan. 31, 2007, at 10:00 a.m.
Williams & Kettle's solicitor can be reached at:
Malcolm David Whitlock
Whitlock & Co.
c/o Level 2, Baycorp House
15 Hopetoun Street, Auckland
New Zealand
POGO PRODUCING: Quarterly Dividend to be Paid on February 23
------------------------------------------------------------
The Board of Directors of Pogo Producing Company declared a
regular quarterly cash dividend of US$0.075 per share on Pogo's
outstanding common stock, to be paid on Feb. 23, 2007 to
shareholders of record as of Feb. 9, 2007.
Headquartered in Houston, Texas, Pogo Producing Company (NYSE:
PPP) -- http://www.pogoproducing.com/-- explores for, develops
and produces oil and natural gas. Pogo owns approximately
4,000,000 gross leasehold acres in major oil and gas provinces
in North America, 3,119,000 acres in New Zealand and 1,480,000
acres in Vietnam.
On Sept. 26, 2006, the Troubled Company Reporter - Asia Pacific
reported that in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. and Canadian Exploration
and Production sector this week, the rating agency confirmed its
Ba3 Corporate Family Rating for Pogo Producing Company.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings to these securities:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
8.25% Sr. Sub.
Notes due 2011 B2 B1 LGD4 70%
6.625% Sr. Sub.
Global Notes
due 2015 B2 B1 LGD4 70%
6.875% Sr. Sub.
Global Notes
due 2017 B2 B1 LGD4 70%
7.875% Sr. Sub.
Global Notes
due 2013 B2 B1 LGD4 70%
Multiple Seniority
Shelf (Senior
Unsecured) (P)Ba3 (P)Ba2 LGD3 33%
Multiple Seniority
Shelf (Subordinate) (P)B2 (P)B1 LGD4 70%
Multiple Seniority
Shelf (Junior
Subordinate) (P)B2 (P)B2 LGD6 97%
Multiple Seniority
Shelf (Preferred
Shelf) (P)B3 (P)B2 LGD6 97%
Trust II Preferred
Shelf (P)B2 (P)B2 LGD6 97%
QUALITY FERNS: Court Sets Liquidation Hearing on February 1
-----------------------------------------------------------
A liquidation petition filed against Quality Ferns NZ Ltd will
be heard before the High Court of Auckland on Feb. 1, 2007, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition with the
Court on Oct. 11, 2006.
The CIR's solicitor can be reached at:
Justine Berryman
Technical and Legal Support Group
Auckland North Service Centre
Inland Revenue Department
5-7 Byron Avenue (PO Box 33150)
Takapuna, Auckland
New Zealand
Telephone:(09) 984 1538
Facsimile:(09) 984 3116
QUANTUM DEVELOPMENTS: Official Assignee to Liquidate Business
-------------------------------------------------------------
On Dec. 18, 2006, the Official Assignee was appointed as
liquidator of Quantum Developments Ltd.
According to the Troubled Company Reporter - Asia Pacific, the
High Court of Wellington heard a liquidation petition against
the company on Dec. 18, 2006. Schindler Lifts New Zealand Ltd.,
filed the petition.
The Liquidator can be reached at:
Official Assignee
Insolvency and Trustee Service
Private Bag 4714, Christchurch
New Zealand
Telephone: 0508 467 658
Website: http://www.insolvency.govt.nz
SPORTSCAR WORLD: Liquidation Hearing Slated for February 5
----------------------------------------------------------
The High Court of New Plymouth will hear a liquidation petition
against Sportscar World Ltd on Feb. 5, 2007, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition on
Nov. 20, 2006.
The CIR's solicitor can be reached at:
E. M. Duncan-Sittlington
Inland Revenue Department
1 Bryce Street, Hamilton
New Zealand
Telephone:(07) 959 0471
=====================
P H I L I P P I N E S
=====================
COVANTA HOLDING: Moody's Puts B1 Rating on US$325MM Debentures
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures. The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp. Concurrently, the CFR has been
upgraded to Ba2 from Ba3.
Moody's has also upgraded the ratings of various industrial
revenue bonds guaranteed by Covanta ARC LLC, a subsidiary of
Covanta Energy. In addition, Moody's affirmed the company's
SGL-1 speculative grade liquidity rating, which has also been
reassigned to Covanta Holding from Covanta Energy. The outlook
remains stable.
The new credit facility includes a US$680 million dollar term
loan, a US$320 million synthetic letter of credit facility, and
a revolver that has been increased to US$300 million from US$100
million. Proceeds of the new term loan and the convertible
notes, together with a planned US$125 million equity issuance
and US$170 million in cash, will be used to repay Covanta's
existing US$367 million first lien and US$260 million second
lien term loans, along with US$612 million of debt currently
outstanding at three intermediate holding companies.
The upgrade of the CFR reflects the strengthening of the
company's consolidated balance sheet and significant improvement
in pro forma credit metrics driven by the current proposed
transaction, which is expected to result in a US$235 million
decrease in consolidated debt and an approximate US$50 million
reduction in annual interest expense.
Moody's calculates that the ratio of Funds from Operations to
Interest increases to 4.0x for 2006 on a pro forma basis from an
estimated actual result of 2.8x, while FFO to Debt improves to
13.7% from 10.9%. These ratios are consistent with a Ba
category rating for a company with Covanta's fundamental
business risk profile. Moody's notes that the company's
financial performance had already considerably improved in 2006,
with FFO/Debt and FFO/interest ratios increasing from 6.6% and
2.4x, respectively, in 2005.
Further improvements in financial performance are expected as
project debt continues to amortize and the amount of the term
loan is reduced by the 50% cash sweep required by the credit
facility. The company may pay down the term loan more rapidly
than required if investment opportunities do not arise, though
Moody's expects that the company may seek to re-lever at some
point over the next few years if debt reduction exceeds a
certain level.
The Ba2 rating assigned to the new credit facility further
reflects the reduction in structural subordination achieved
through the expected elimination of intermediate holding company
debt at MSW Energy Holdings LLC, MSW Energy Holdings II LLC and
Covanta ARC LLC and the resulting improvement in loss given
default rates to a range of 30%-50% from a range of 50% to 70%
previously.
In addition, the repayment of the MSW debt, which had a bullet
maturity in 2010, also substantially reduces the company's
exposure to refinancing risk. The new credit facility will be
secured by a pledge of stock of Covanta's subsidiaries, most of
which are separately financed with non-recourse project debt.
As a result, project debt holders have a prior claim on
virtually all of Covanta's hard assets, primarily consisting of
waste-to-energy facilities. The convertible debentures will be
unsecured obligations of Covanta Holdings and as such are
structurally subordinated to all of the company's other
indebtedness.
Moody's upgraded these ratings:
Issuer: Covanta Holding Corp.
-- Corporate Family Rating, Reassigned from Covanta Energy
Corp., Upgraded to Ba2 from Ba3.
Guarantor: Covanta ARC LLC
-- Hempstead Industrial Development Agency, NY 5% IRBs
due 2010, Upgraded to Baa3 from Ba1;
-- Niagara County Industrial Devel. Agency, NY, Series 2001
IRBs,Upgraded to Baa2 from Baa3;
-- Delaware County Industrial Dev. Auth., PA, Series 1997-A
IRBs, Upgraded to Ba1 (27 - LGD2) from Ba2;
-- Connecticut Resources Recovery Authority, Ser. A and Ser.
1992 A IRBs, Upgraded to Ba1 (27 - LGD2) from Ba2.
Moody's assigned these ratings:
Issuer: Covanta Energy Corporation
-- Senior Secured Bank Credit Facility, Assigned Ba2.
Issuer: Covanta Holding Corporation
-- Senior Unsecured Conv./Exch. Bond/Debenture, Assigned B1.
Headquartered in Fairfield, New Jersey, Covanta Energy Corp. --
http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad. Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.
COVANTA HOLDING: S&P Rates US$1.3 Bil. Credit Facilities at BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
$320 million in funded LOCs, and $300 million in revolving
credit facilities.
The outlook remains stable.
As of Sept. 30, 2006, Fairfield, New Jersey-based Covanta
Holding had about US$2.6 billion of debt on a consolidated
basis.
Covanta Holding also plans to issue about $125 million in common
equity along with the new financing. The Covanta Energy upgrade
follows the proposed recapitalization: proceeds of the new debt
issue will be used to refinance existing indebtedness of Covanta
Holding and its subsidiaries, as well as pay related fees,
premiums, and expenses associated with the debt issuance.
"The stable outlook on Covanta Holding reflects predictable cash
flow from waste disposal and power contracts," said Standard &
Poor's credit analyst Chinelo Chidozie.
"It also reflects the expectation that consolidated credit
metrics should improve over the medium term, as mandatory
amortizations, cash sweeps, and scheduled step-downs in LOC
requirements result in company deleveraging," she continued.
The possibility of an upgrade is limited, given the company's
level of leverage. Continued strength in operations and
significant deleveraging would be necessary for the rating to
gain some positive momentum.
On the other hand, the failure to meet forecasts, which could
result from operating problems or a weaker pricing environment
for power and waste disposal, could negatively affect the
rating.
EAST ASIA POWER: Creditors Object to Rehabilitation Petition
------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 12, 2006, East Asia Power Resources Corporation's wholly
owned subsidiary, East Asia Diesel Power Corporation, filed with
the Regional Trial Court of Malabon a petition for
rehabilitation for itself and Duracom Mobile Power Corporation.
East Asia Diesel owns 40% of Duracom. East Asia Diesel and
Duracom are engaged in the power generation business, the TCR-AP
noted.
In compliance with the Philippine Stock Exchange's rules and
regulations, East Asia Power discloses that these creditors of
East Asia Diesel filed their respective Comment & Opposition to
the petition:
1) Security Bank;
2) Rizal Commercial Banking Corporation;
3) Philippine National Bank;
4) Equitable-PCI Bank;
5) Cameron Granville 2 Asset Management; and
6) Philippine Opportunities Growth Inc.
Manila Electric Company also filed its Comment and Notice of
Claim, while YNN Holding Corporation filed its Comment and
Opposition to the inclusion of Duracom Mobile in the petition.
About East Asia Power
East Asia Power Resources Corporation was established in 1975 as
a mining company under the name Olecram Mining Corporation. It
ceased commercial operations as a mining firm after a decade and
changed its corporate name to Northwest Holdings & Resources
Corporation in 1992. Consequently, the Company changed its
primary purpose from mining to holdings. In 1996, the Company's
Board of Directors approved the change of its corporate name to
East Asia Power Resources Corporation.
East Asia Power operates power generation facilities in Metro
Manila, Bataan, Cebu, and Mactan Island, and has interests in a
24 MW coal-fired power plant in Jiangsu Province in the People's
Republic of China. In addition to its power plant operations,
the Company owns 100% of East Asia Power Services, Inc., which
offers planning, construction, operation and maintenance
consultancy services to other prospective and established power
generating facilities. The Company also ventured into the
transmission and distribution sub-industries of the power sector
through the incorporation of a wholly owned subsidiary, East
Asia Transmission and Distribution Corporation.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 22, 2006, that Sycip, Gorres, Velayo & Co., raised
substantial doubt on East Asia Power's ability to continue as a
going concern after auditing the Company's financial report for
the year ended December 31, 2005. SGVC notes that the Company's
2005 consolidated financial statements indicate that it has
posted significant losses and capital deficiencies as of
Dec. 31, 2005, and 2004.
EAST ASIA POWER: Restructures Employee Functions for Efficiency
---------------------------------------------------------------
In line with its reorganization, East Asia Power Resources Corp.
recently undertook a restructuring program through which
employee functions were merged or integrated into existing
positions to achieve organizational efficiency.
Accordingly, the company advises the Philippine Stock Exchange
that effective February 23, 2007, these officers are separated
from the company due to redundancy under Article 283 of the
Labor Code:
* Walden H. Tantuico - Executive VP and Chief Operating
Officer
* Haide Z. Concepcion - VP-Human Resources and Administrative
Department
* Marcos A. Ferrer - Regional Environmental, Health and
Safety Manager
About East Asia Power
East Asia Power Resources Corporation was established in 1975 as
a mining company under the name Olecram Mining Corporation. It
ceased commercial operations as a mining firm after a decade and
changed its corporate name to Northwest Holdings & Resources
Corporation in 1992. Consequently, the Company changed its
primary purpose from mining to holdings. In 1996, the Company's
Board of Directors approved the change of its corporate name to
East Asia Power Resources Corporation.
East Asia Power operates power generation facilities in Metro
Manila, Bataan, Cebu, and Mactan Island, and has interests in a
24 MW coal-fired power plant in Jiangsu Province in the People's
Republic of China. In addition to its power plant operations,
the Company owns 100% of East Asia Power Services, Inc., which
offers planning, construction, operation and maintenance
consultancy services to other prospective and established power
generating facilities. The Company also ventured into the
transmission and distribution sub-industries of the power sector
through the incorporation of a wholly owned subsidiary, East
Asia Transmission and Distribution Corporation.
* * *
The Troubled Company Reporter - Asia Pacific reported on
June 22, 2006, that Sycip, Gorres, Velayo & Co., raised
substantial doubt on East Asia Power's ability to continue as a
going concern after auditing the Company's financial report for
the year ended December 31, 2005. SGVC notes that the Company's
2005 consolidated financial statements indicate that it has
posted significant losses and capital deficiencies as of
Dec. 31, 2005, and 2004.
GUESS? INC: Raises Fourth Quarter Earnings Per Share Guidance
-------------------------------------------------------------
Guess?, Inc., raised its earnings per share guidance for the
fourth quarter ended Dec. 31, 2006, to a range of US$0.91 to
US$0.93 compared with earnings per share of US$0.57 in the
fourth quarter of 2005. The company raised its earnings per
share guidance for the fiscal year ended Dec. 31, 2006, to a
range of US$2.60 to US$2.62, compared withUS$1.31 per share in
2005. Previous fourth quarter earnings guidance was US$0.65 to
US$0.67 per share, which would have resulted in fiscal year 2006
earnings per share of US$2.34 to US$2.36.
Strong performance in the company's retail, licensing and
wholesale segments drove the improved operating results for the
quarter. The company's retail segment exceeded previous
expectations due to higher revenues coupled with better gross
margins resulting from more full-priced selling. Strong sales
of the company's accessories drove higher than expected
licensing revenues, and the wholesale segment benefited from
higher revenues and improved margins in the period.
Paul Marciano, Chief Executive Officer, stated, "We are very
pleased with the momentum across all of our businesses and
geographic regions of the world, which reflects the strong
global acceptance of our brand. Our strategy to execute a
diversified and balanced business continues to be our top
priority, resulting in profitable growth as we expand globally."
The company plans to release its financial results for the
fourth quarter and fiscal year ended Dec. 31, 2006, on Feb. 14,
2007, and will address its guidance for the current fiscal year
at that time.
Guess?, Inc., -- http://www.guess.com-- designs, markets,
distributes and licenses a lifestyle collection of contemporary
apparel, accessories and related consumer products. The company
owns and operates retail stores in the United States, Canada and
Mexico. The company also distributes its products through
better department and specialty stores around the world,
including the Philippines, Hungary and the Dominican Republic.
* * *
Standard & Poor's Ratings Services revised its rating outlook on
Guess? Inc. to positive from stable. At the same time, Standard
& Poor's affirmed the company's ratings, including its
'BB-' corporate credit rating.
GUESS? INC: Board Approves Fiscal Year End Change
-------------------------------------------------
Guess?, Inc.'s board of directors has approved a change in the
company's fiscal year end from Dec. 31 to the Saturday nearest
Jan. 31 of each year.
The fiscal year end change will align the company's reporting
cycle with the National Retail Federation fiscal calendar and is
expected to provide for more consistent quarter-to-quarter
comparisons. The change will be effective with the company's
2008 fiscal year, which will begin Feb. 4, 2007, and end Feb. 2,
2008, and will result in a one-month transition period beginning
Jan. 1, 2007, and ending Feb. 3, 2007.
The company plans to provide recast historical financial
information for the first three quarterly periods of 2006 (ended
April 29, July 29 and Oct. 28) on Feb. 14, 2007, when it
releases its results for the fourth quarter and year ended Dec.
31, 2006. Results for the one-month January 2007 transition
period are expected to be reported when the company releases its
results for the first quarter ending May 5, 2007.
Guess?, Inc., -- http://www.guess.com-- designs, markets,
distributes and licenses a lifestyle collection of contemporary
apparel, accessories and related consumer products. The company
owns and operates retail stores in the United States, Canada and
Mexico. The company also distributes its products through
better department and specialty stores around the world,
including the Philippines, Hungary and the Dominican Republic.
* * *
Standard & Poor's Ratings Services revised its rating outlook on
Guess? Inc. to positive from stable. At the same time, Standard
& Poor's affirmed the company's ratings, including its 'BB-'
corporate credit rating.
HERMOSA SAVINGS: Claims for Insured Deposits Due on February 5
--------------------------------------------------------------
The Philippine Deposit Insurance Corporation advises that the
last day for filing of claims for insured deposits in the closed
Hermosa Savings and Loan Bank, Inc., is on Feb. 5, 2007. After
the due date, PDIC as insurer, will no longer accept any claim
for insured deposits maintained with the bank.
Accordingly, depositors are requested to proceed directly to the
pay-out sites of their respective branches where they can file
their claims with the PDIC representatives during office hours,
form 8:00 a.m. to 5:00 p.m., on these dates:
* Jan. 25 to Feb. 5, 2007:
Banking Unit Payout Site
------------ -----------
Head Office, Hermosa SLB - Head Office
Dinalupihan, Nuguid St., Hermosa, Bataan
Orani & Samal Branches
Abucay, Balanga, Pilar Balanga City Hall, Balanga,Bataan
and Bagac Branches
Orion and Limay Branches Orion Municipal Hall, Orion,
Bataan
* Jan. 30 to Feb. 5, 2007:
Banking Unit Payout Site
------------ -----------
Mariveles Branch Hermosa SLB - Mariveles Branch
Burgos St., Mariveles, Bataan
Morong Branch Morong Municipal Hall, Morong
Bataan
Lubao Branch Lubao Municipal Hall, Lubao,
Pampanga
* Until February 5, 2007:
Banking Unit Payout Site
------------ -----------
Makati Extension Office PDIC Ayala Extension Office
6th Flr. SSS Bldg., Ayala Ave.
corner V.A. Rufino St., Makati
City
Depositors are also advised to present these requirements to the
PDIC representatives when filing their claims:
(a) Original evidence of deposit like Savings Passbook,
Certificate of Time Deposit, or Bank Statement including
Unused Checks; and
(b) Two latest identification cards/documents with
depositor's signature.
PDIC notes that its representative may require other documents
in the course of their processing of claims filed.
About Hermosa Savings
On Feb. 17, 2005, the Troubled Company Reporter - Asia Pacific
reported that the Monetary Board ordered the closure of Hermosa
Savings and Loan Bank on Feb. 3.
The Philippine Deposit Insurance Corporation took over the bank
on the same day.
Hermosa Savings maintained 14 branches in Bataan, Pampanga and
Makati City, the TCR-AP noted.
SBARRO INC: Receives Tenders for US$218.89 Mln in 11% Sr. Notes
---------------------------------------------------------------
Sbarro, Inc., disclosed that, as of 5:00 p.m., New York City
time, on Jan. 22, 2007, a total of approximately US$218,898,000
in aggregate principal amount of its 11% Senior Notes due 2009
were tendered pursuant to its tender offer for any and all of
the outstanding US$255,000,000 principal amount at maturity of
Notes.
Holders who validly tendered their Notes prior to 5:00 p.m., New
York City time, on Jan. 22, 2007, unless extended or earlier
terminated, are entitled to receive the total consideration of
US$1,020.83, payable in cash, for each US$1,000 principal amount
of Notes accepted for payment, which amount includes a consent
payment of US$10 per US$1,000 of Notes accepted for payment.
Holders who validly tender their Notes after the Consent Date
but prior to the Expiration Date will receive the total
consideration minus the consent payment. Accrued and unpaid
interest up to, but not including, the applicable payment date
will be paid in cash on all validly tendered and accepted Notes.
Holders who tender Notes are required to consent to the proposed
amendments to the indenture.
The tender offer will expire at midnight, New York City time, on
Feb. 6, 2007, unless extended or earlier terminated by Sbarro.
Withdrawal rights with respect to tendered Notes have expired.
Accordingly, holders may not withdraw any Notes previously or
hereafter tendered, except as contemplated in the offer.
Notwithstanding any other provision of the offer, Sbarro's
obligation to accept for purchase, and to pay for, securities
validly tendered pursuant to the offer is conditioned upon
satisfaction or waiver of the conditions set forth in the offer,
including the receipt of consents of the holders representing at
least a majority in aggregate principal amount of the Notes
outstanding under the indenture, consummation of the acquisition
of Sbarro by MidOcean Partners III, L.P. and Sbarro obtaining
the financing necessary to pay for the Notes and consents in
accordance with the terms of the tender offer and consent
solicitation.
The terms and conditions of the tender offer are set in Sbarro's
Offer to Purchase and Consent Solicitation Statement dated
January 8, 2007. Sbarro, in its sole discretion, may amend,
extend or waive any of the conditions of the offer in whole or
in part, at any time or from time to time. In addition, Sbarro
may amend, extend or, subject to certain conditions, terminate
the tender offer.
Sbarro has retained Credit Suisse Securities (USA) LLC and Banc
of America Securities LLC as the dealer managers and
solicitation agents in connection with the tender offer and
consent solicitation.
Questions regarding the tender offer and consent solicitation
may be directed to:
Credit Suisse Securities (USA) LLC
Tel: (800) 820-1653 (toll free)
(212) 325-7596 (collect)
-- or --
Banc of America Securities LLC
Tel: (888) 292-0070 (toll-free)
(704) 388- 9217 (collect)
Copies of the Offer to Purchase and Consent Solicitation
Statement can also be obtained from the information agent at:
D.F. King & Co., Inc.
Tel: (800) 290-6426 (toll-free)
(212) 269-5550 (collect)
Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods. As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria". Total revenues for fiscal 2005 were
approximately US$348 million. The company has restaurants in El
Salvador, Japan, New Zealand and the Philippines.
* * *
Moody's Investors Service held Sbarro Inc.'s Caa1 Corporate
Family Rating and Caa1 rating on the company's $255 million
Guaranteed 11% Senior Unsecured Notes due on September 2009 in
connection of the rating agency's implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.
SBARRO INC: Loan Add-on Prompts S&P to Affirm Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on Sbarro Inc.'s bank facility, after the
report that the company will increase the size of the loan to
US$208 million from US$175 million.
Pro forma for the add-on, the facility will consist of a US$25
million revolving facility due 2013 and a US$183 million first-
lien term loan due 2014. Both facilities are rated 'B', one
notch above the corporate credit rating. This and the recovery
rating of '1', indicate our expectation of full recovery of
principal in the event of payment default.
The proceeds from the US$33 million add-on to the term loan will
be used to redeem all of the preferred equity retained by the
Sbarro family in connection to the acquisition of the company by
MidOcean Partners.
Ratings List:
* Sbarro Inc.
-- Corporate credit rating affirmed B-
-- US$25 million revolver due 2013 affirmed at B
-- Us$183 million term loan due 2014 affirmed B
Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods. As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria". Total revenues for fiscal 2005 were
approximately US$348 million. The company has restaurants in El
Salvador, Japan, New Zealand and the Philippines.
* Bangko Sentral ng Pilipinas Maintains Key Policy Rates at 7.5%
----------------------------------------------------------------
On Jan. 25, 2007, the Monetary Board decided to leave the Bangko
Sentral ng Pilipinas' key policy interest rates unchanged at
7.5% for the overnight borrowing or reverse repurchase rate and
9.75% for the overnight lending or repurchase rate. The tiering
system on bank placements with the BSP was also kept in place.
The Monetary Board noted during its assessment that the outlook
for inflation has largely eased since its previous policy
meeting. Supply-side pressures have diminished noticeably in
recent months. Meanwhile, demand-side pressures continue to be
minimal thus far, although latest data show moderate
improvements across demand indicators. More importantly, latest
BSP forecasts for 2007 and 2008 show that in the absence of
further adverse shocks, average inflation may edge closer to the
lower end of the 4.0%-5.0% target range for 2007 and the 4.0% ñ
1.0% target for 2008.
Nevertheless, the Monetary Board believes that, on balance,
there continue to be sufficient grounds for caution in the
monetary stance. More time is needed to allow the impact of the
tiering system to fully wind its way through the credit channel.
A prudent pause is only appropriate particularly in light of the
continued strong growth in liquidity and the downtrend in
interest rates.
Caution in adjusting policy settings is also important in light
of various upside risks to inflation, which include various
cost-side adjustments. There is also some uncertainty as to
whether the recent moderation in supply-side pressures will
continue, given the vulnerability of energy prices to
geopolitical disruptions and the risk to food prices from a
stronger El Ni¤o episode. In addition, inflation expectations,
while manageable at present, are also at risk from anticipated
increases in public expenditure and possible large adjustments
in nominal wages.
The Monetary Board remains firmly committed to addressing the
risks to future inflation and will continue to monitor closely
the evolving conditions for consumer prices, aggregate demand,
domestic liquidity and other factors in order to determine the
appropriate stance of monetary policy.
* * *
On January 10, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured debt rating to the Republic of
Philippines' (foreign currency BB-/Stable/B, local currency
(BB+/Stable/B) proposed US$1.0 billion global bond issue
maturing in 2032.
On January 10, 2007, Fitch Ratings assigned a Long-term foreign
currency rating of 'BB' to the Republic of the Philippines'
(rated foreign currency Issuer Default 'BB') US$1 billion global
bond maturing in 2032 and priced to yield 6.55%.
On November 3, 2006, the Troubled Company Reporter - Asia
Pacific reported that Moody's Investors Service changed to
stable from negative the outlook on the Philippines' key ratings
due to the progress made in reining in fiscal deficits in 2006
and an easing in dependence on external financing.
The affected ratings include the B1 long-term government
foreign- and local-currency ratings, the B1 foreign-currency
bank deposit ceiling and Ba3 foreign currency country ceiling,
the TCR-AP noted.
=================
S I N G A P O R E
=================
CKE RESTAURANTS: Credit Add-on Cues S&P to Hold BB-Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its loan and
recovery ratings on CKE Restaurants Inc.'s senior secured first-
lien bank facility, following the disclosure that the company
will add US$100 million to its US$150 million revolving credit
facility.
Pro forma for the add-on, the facility will consist of a
US$250 million revolver due in 2007 and US$70 million first-lien
term loan due to 2010.
The secured loan is rated 'BB' and the recovery rating is '1',
indicating the expectation for full recovery of principal in the
event of a payment default.
The loans are secured by all the assets of CKE's subsidiaries.
Although the revolver has increased by US$100 million, the term
loan has decreased from US$230 million in 2005 to US$70 million.
Ratings List
* CKE Restaurants Inc.
-- Corporate credit rating, BB-, Stable;
-- Senior secured debt, BB.
About CKE Restaurants
Headquartered in Carpinteria, California, CKE Restaurants Inc.,
through its wholly owned subsidiaries, engages in the ownership,
operation, and franchising of quick-service and fast-casual
restaurants. The company operates its restaurants primarily
under Carl's Jr., Hardee's, La Salsa Fresh Mexican Grill, and
Green Burrito brand names. As of Jan. 31, 2006, the company
operated or franchised approximately 3,160 restaurants in 43
states and 13 countries including Singapore.
CONTINENTAL CHEMICAL: Moody's Revises Outlook to Stable
-------------------------------------------------------
Moody's Investors Service has changed the outlook for the B1
corporate family rating of Continental Chemical Holdings Ltd to
stable from negative. The change in outlook reflects
Continental's recent equity injection and the securing of long-
term funding for its China expansion project. These
developments have substantially reduced funding uncertainty,
which was a key consideration in the previous negative outlook.
"Continental has made improvements to its long-term capital
structure that should support it during the building of its
second plant in China, which is expected to begin first
production by the end of 2007," says Moody's Senior Vice
President, Alan Greene. "The combined total of over US$125
million in new long-term debt facilities and equity raised in
2006 more than meets necessary capital investment for the
plant," he says.
The B1 rating reflects Continental's strong market position in
the regional phthalic anhydride (PA) and plasticiser markets, a
degree of vertical integration evident in its production
process, and management's experience in implementing capacity
expansions.
At the same time, the rating takes into account the cyclical and
competitive nature of Continental's markets, as well as its
relatively small operating scale, high financial leverage and
the execution risks related to its PA/plasticiser plant in China
(currently still under development). The rating also reflects
the company's constrained, albeit improving, liquidity profile.
"Continental's business profile has evolved with its recent
switch from plasticiser to biodiesel production activity. The
change is manageable within the B1 rating, though it does expose
the rating to increased downward pressure should operating
challenges arise", adds Greene, also Moody's lead analyst for
Continental.
The rating outlook is stable, reflecting Moody's expectation
that the company will manage its expansion plans prudently and
that there will be no material increase in capital expenditure
above Moody's expectations. However, the recent switch to
biodiesel may raise operating challenges for the company over
the next 12-18 months, given its limited track record in this
area. That said, Continental appears to be managing this
business in a prudent manner.
The rating could go up upon successful completion of the new
China plant, the development of a meaningful market position in
bio-diesel and a thorough re-working of its short-term finances
would provide the basis for an improved credit standing. Credit
metrics Moody's would look for include Total debt/EBITDA of
under 3.0x, EBITDA/Interest of more than 6.0x and an EBITDA
margin over 12%, all on a sustainable basis over the next 2--3
years.
On the other hand, the rating could go down if there are delays
to the start-up of the new China plant and problems arising at
third party toll producers represent the company-specific risks
that could challenge the rating. For the company's biofuel
activities, failure to develop Continental's market position
beyond the broad structure of the supply and offtake
arrangements in place for 2007, and/or large debt-funded
investments to bolster its market position would pressure the
current rating. Credit metrics Moody's would look for include
Debt/EBITDA exceeding 4.5x, EBITDA/Interest falling below 4.0x
and/or EBITDA margin under 9.0%.
Headquartered in Singapore, Continental Chemical Holdings Ltd,
is a chemical company specializing in intermediate chemicals and
specialty resin products and biofuel.
DIGILAND INTERNATIONAL: Temasek Holdings Reduces Stake
------------------------------------------------------
Digiland International Ltd disclosed that its substantial
shareholder, Temasek Holdings (Private) Limited has reduced its
stake in the company.
Presently, Temasek Holdings holds 497,494,255 deemed shares with
6.50% issued share capital. Prior to the change, Temasek
Holdings held 541,144,255 deemed shares with 7.07% issued share
capital.
Temasek Holdings owns approximately 28% of DBS Group Holdings
Limited, which in turn owns DBS Bank Ltd. On Jan. 23, 2007,
DBS Bank sold 43,650,000 of its shares, thus the reduction of
Temasek Holdings' stake in the company.
About Digiland
Digiland International Limited -- http://www.digiland.com.sg/--
is a major distributor of IT products and provider of IT
services in the Asia-Pacific. The Digiland International Group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited. It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific. The company has been
reporting a string of losses in the recent years due to the
negative impact of the highly cyclical nature of the computer
industry. Sales were adversely affected by the shortening
product cycles of IT products and downward pressure on selling
prices as newer and more technologically advanced products enter
mass production. Aside from recurring losses, the company's
subsidiaries have also been bombarded by wind-up petitions filed
by creditors.
The company has acquired losses for the past two years. For the
fiscal year ended June 2005, the Company's annual report showed
a US$18.7-million loss while fiscal year ended June 2004 showed
a US$44.7-million loss.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 13, 2006, the company registered US$31.32 million in total
assets and a US$11.94 million shareholders' equity deficit as of
October 12, 2006.
HONMA GOLF: Creditors Must Prove Debts by Feb. 19
-------------------------------------------------
Honma Golf Singapore Pte Ltd, which is under members' voluntary
liquidation, will be receiving proofs of debt from its creditors
until Feb. 19, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's distribution of dividend.
The liquidator can be reached at:
Lau Chin Huat
c/o 6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
HUA SENG: Liquidator to Receive Claims Until Feb. 2
---------------------------------------------------
Hua Seng Huat Electrical Engineering Pte Ltd requires its
creditors to prove their claims until Feb. 2, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from the company's distribution of dividend.
The liquidator can be reached at:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
PETROLEO BRASILEIRO: Fails to Win Bolivian Gas Supply Contract
--------------------------------------------------------------
Bolivia's state-owned oil firm Yacimientos Petroliferos Fiscales
Bolivianos has excluded Brazil's state oil Petroleo Brasileiro
and Repsol -- YPF SA's parent firm -- from contracts for the
supply of natural gas to Argentina, MarketWatch reports.
A Bolivian government official told MarketWatch that of the
eight qualified bidders, Yacimientos Petroliferos awarded the
contracts to:
-- BP PLC-controlled Chaco;
-- South Korea's Dong Won Corp.;
-- US-based Vintage; and
-- Argentina's Pluspetrol.
The official told Dow Jones Newswires that Repsol and Petroleo
Brasileiro were excluded from the deals because the government
was unsatisfied with the two firm's plans on investment and
production in Bolivia.
According to MarketWatch, the official said that the contracts
Yacimientos Petroliferos awarded are aimed at meeting the
requirements of a deal agreed to in October 2006 by the firm's
officials and their counterparts in Argentine state-run energy
company Enarsa. Under the bi-national contract, supply will:
-- remain at up to 7.7 million cubic meters per day this
year;
-- increase to between 7.7 million cubic meters per day and
16 million cubic meters per day during 2008 and 2009; and
-- reach up to 27.7 million cubic meters per day between 2010
and 2026.
However, the contracts awarded fail to fully cover those
amounts, and Yacimientos Petroliferos will launch at least one
more call for bids, MarketWatch notes, citing the official.
The official told MarketWatch that the offers submitted in
January 2007 provide gas from smaller fields that don't require
extensive production investment. He said, "Once the big fields
have investment plans, Yacimientos Petroliferos sees the second
call for offers being more successful. Similarly, if the second
call doesn't cover (the Argentine supply contract), we will
again wait and then hold a third call for bids."
Yacimientos Petroliferos expects to open a second call for
Argentina supply bids within six months, MarketWatch says,
citing the official.
The official told MarketWatch that the firms still have to
finish presenting to the government their plans to develop gas
reserves and to explore for additional reserves. The exclusion
of Petroleo Brasileiro and Repsol from this week's round of
Argentine gas supply contract doesn't mean that they will
forever be rejected.
"Once they (Petroleo Brasileiro and Repsol) present their
investment plans in compliance with their new contracts, we
think they will present much larger volume offers in future
calls for offers, " MarketWatch says, citing the official.
About YPF SA
YPF SA is an integrated oil and gas company engaged in the
exploration, development and production of oil and gas and
natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream). Repsol,
which holds 99.04% of YPF's shares, controls YPF.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.
Petrobras has operations in China, India, Japan and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Petros Boosting Private Sector Investments
---------------------------------------------------------------
Wagner Pinheiro -- president of Petros, the pension fund for
Petroleo Brasileiro's workers -- told Agencia Estado that the
firm wants to increase private securities investments to up to
BRL5.00 billion from BRL3.00 billion.
Petros will likely invest in receivables funds, among other
instruments, to meet the minimum targets to pay pensions to its
members in the current climate of dropping interest rates,
BNamericas relates, citing Mr. Pinheiro.
BNamericas underscores that Petros will reduce by BRL950 million
the BRL5.00 billion being invested in fixed income and redirect
them toward investments in:
-- infrastructure;
-- housing; and
-- shares in companies with good corporate governance
and sustainability practices.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.
Petrobras has operations in China, India, Japan and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
SHIP FINANCE: Acquires Jack-Up Drilling Rig for US$210 Million
--------------------------------------------------------------
Ship Finance International Ltd. has entered into an agreement to
acquire a new building jack-up drilling rig currently under
construction, the West Prospero Seadrill 4, from a subsidiary of
Seadrill Ltd.
The purchase price for the drilling rig is agreed to US$210
million and expected delivery from Keppel Fels in Singapore will
be in July 2007. The Company is currently in discussions with
banks for the financing of the rig, and based on discussions to
date, the company expects to enter into a term loan facility in
an amount of around US$170 million.
The rig will be chartered back to the seller for 15 years on a
bareboat basis, guaranteed by Seadrill. Seadrill is among the
world's leading offshore drilling contractors, with a market
capitalization of around US$6 billion. The aggregate charter
payments for the first three years will be around US$120
million, the following four years will be around US$77 million,
and the last eight years will be around US$109 million.
Seadrill has been awarded a letter of intent by ExxonMobil
Exploration and Production Malaysia Inc. for the West Prospero,
and the intended contract has a duration of 400 days, with an
estimated value of around US$82 million. Start-up of operations
is planned in the third quarter of 2007, following delivery from
the construction yard.
In addition to the fixed charter rate, Ship Finance will receive
a profit split element of 4% above certain threshold levels,
starting Jan. 1, 2009. During the charter period the charterer
will have several options to buy back the rig, and the first
purchase option will be after three years at US$142 million and
the last purchase option after 15 years at US$60 million.
About Ship Finance
Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers. The company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway and Singapore.
It is also involved in the charter, purchase and sale of
vessels.
* * *
Moody's Investors Service affirmed Ship Finance International
Ltd.'s ratings, including the Ba3 Corporate Family Rating, the
Ba2 Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating. Moody's said the ratings outlook
remains stable.
SHIP FINANCE: Names Svein Aaser to Board of Directors
-----------------------------------------------------
Ship Finance International Ltd. has appointed Svein Aaser to the
Board of Directors.
Mr. Aaser is the former President and Chief Executive Officer of
DnB NOR ASA, the largest financial institution in Norway, and a
leading maritime financier worldwide. During his carreer in DnB
NOR, the market capitalization of the company increased from
around US$2.2 billion to around US$19.1 billion.
Prior to his position in DnB NOR, Mr. Aaser had a long carreer
as a top executive in several copmpanies, including Nycomed
Amersham plc., Storebrand Skade AS and Stabburet AS. Mr Aaser
serves on several boards, including Pan Fish ASA and Laerdal
Medical AS.
"We are very pleased to have recruited Mr. Aaser to become a
non-executive board member," Tor Olav Troim, Chairman in Ship
Finance, said. "His broad international background in large
multinational companies, substantial banking experience and his
outstanding track record in the capital market secures our
Company a very competent and professional board member.
Furthermore, the announced investment in the oil exploration
sector validate the Board of Director's strategy to diversify
the asset base and grow the long-term charter business. Over the
last 12 months, the Company has announced investments of US$950
million, of which more than US$760 million outside the tanker
segment. The company believes there will be particularly good
growth opportunities within oil exploration and related
segments, as the company sees a high activity level and
significant cash flows, and there is a positive market outlook."
About Ship Finance
Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers. The company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway and Singapore.
It is also involved in the charter, purchase and sale of
vessels.
* * *
Moody's Investors Service affirmed Ship Finance International
Ltd.'s ratings, including the Ba3 Corporate Family Rating, the
Ba2 Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating. Moody's said the ratings outlook
remains stable.
NT VISION: Liquidators to Receive Claims Until Feb. 3
-----------------------------------------------------
Chee Yoh Chuang and Lim Lee Meng, as liquidators of NT Vision
Pte Ltd will be receiving proofs of debt from the company's
creditors until Feb. 3, 2007.
Creditors who cannot prove their debts by the due date will be
excluded from sharing in the company's distribution of dividend.
The Liquidators can be reached at:
Chee Yoh Chuang
Lim Lee Meng
c/o Stone Forest Corporate Advisory Pte Ltd
18 Cross Street #08-01
Marsh & McLennan Centre
Singapore 048423
===============
T H A I L A N D
===============
ASIA HOTEL: ANS Audit Co. Raises Significant Going-Concern Doubt
----------------------------------------------------------------
Asia Hotel Public Company Limited reported a consolidated net
income of THB31.63 million for the quarter ended Sept. 30, 2006,
an increase of 329.81% from the THB7.36 million the company
posted for the quarter ended Sept. 30, 2005.
For the quarter in review, the company posted consolidated total
revenues of THB268.89 million, a 4.83% increase from what was
gained in 2005. Total expenses amounted to THB199.04 million,
representing a 4.21% decrease from the previous corresponding
period.
As of Sept. 30, 2006, the company showed total consolidated
assets of THB4,234,580,979.95, total liabilities of
THB3,302,799,691.84 and total shareholders' equity of
THB931,781,288.11.
Going Concern Doubt
Atipong AtipongSakul of ANS Audit Co., Ltd., the company's
independent auditors, raised significant doubt on the company's
ability to continue as a going concern. He said that the
financial position and going concern, the consolidated financial
statements and the financial statements of the company for the
period ended Sept. 30, 2006, showed accumulated deficit of
THB1.11 billion.
* * *
Headquartered in Bangkok, Thailand, Asia Hotel Public Company
Limited -- http://www.asiahotel.co.th/-- was incorporated on
March 24, 1964, and has been publicly listed since 1989. The
Company and its two subsidiaries, Asia Pattaya Hotel Company
Limited and Asia Airport Hotel Company Limited, are involved in
the hotel business, with its principal activities consisting of
room service and operating restaurants. Another subsidiary,
Zeer Property Company Limited is primarily involved in the
construction and the building of shopping complexes.
BANGKOK BANK: To Increase Stake in BBL Asset to 75%
---------------------------------------------------
Bangkok Bank Pcl will purchase ordinary shares of subsidiary BBL
Asset Management Co Ltd from Asset Plus Securities Pcl and Asia
Credit Bank Pcl.
The bank will purchase a total of 125,000 shares from both
companies at a price THB520 per share payable on Jan. 26, 2007.
After the transaction, the shareholding of Bangkok Bank in the
BBL Asset will increase from 50% to 75%.
Bangkok Bank's objective of the purchase of shares from BBLAM is
in compliance with its policy to increase investment portion in
the financial industry relating to core financial business of
the bank.
* * *
Headquartered in Bangkok -- http://www.bangkokbank.com/--
Bangkok Bank is Thailand's largest bank, with total assets of
THBB1.498 trillion (US$39 billion) at end-June 2006.
Moody's Investors Service has upgraded on August 29, 2006,
Bangkok Bank's bank financial strength rating to D+ from D and
was re affirmed on September 20, 2006, following the military
coup in Thailand.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 16, 2006, Fitch Ratings affirmed Bangkok Bank's Individual
rating at C.
BANK OF AYUDHYA: Board Names Kong Khoon Tan as CEO & President
--------------------------------------------------------------
Thailand's Bank of Ayudhya said its board appointed Kong Khoon
Tan as its new chief executive officer effective March 8, 2007.
The bank's board of directors also approved BAY's new
organizational chart composed of:
Names Positions
----- ---------
Kong Khoon Tan President and CEO
Pongpinit Tejagupta Chief Distribution Officer
Virojn Srethapramotaya Chief Commercial Lending Officer
Amornsuk Noparumpa General Counsel
Janice Rae Van Ekeren Chief Financial Officer
C.S. Krishoolndmangalam Chief Risk Officer
Roy Agustinus Gunara Chief Retail Banking Officer
Chet Raktakanishta Chief Operation Officer
Charlotte Donavanik Chief Business Mktg. & PR Officer
Poomchai Wacharapong Chief SME Lending Officer
Tinnawat Mahatharadol Chief Treasury Officer
Chalermpol Vuttisombut Chief Audit Officer
Somrit Srithongdee Head of Human Resources
Apirom Noi-Am Chief Information Officer
The appointment of Mr. Tan, Ms. Ekeren, Mr. Krishoolndmangalam
and Mr. Gunara are still subject to the approval of relevant
authorities, the bank told the Stock Exchange of Thailand.
Before joining Bank of Ayudhya, Mr. Tan worked for Standard
Chartered Bank since 2000. His latest position was Regional
Head of Consumer Banking (Hong Kong & China). Prior to Standard
Chartered Bank, Mr. Tan started his banking career with DBS Bank
in Singapore and had served some other leading financial
institutions namely ABN Bank and Citibank in their Singapore and
Hong Kong offices. His other experiences in financial services
include priority banking, treasury, investment, and insurance
business.
* * *
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
The Troubled Company Reporter - Asia Pacific reported on Jan.
16, 2007, that Fitch Ratings upgraded Bank of Ayudhya's:
* Long-term foreign currency Issuer Default rating to BBB-
from BB+;
* Short-term foreign currency to F3 from B;
* Foreign currency subordinated debt rating to BB+ from BB;
and
* Individual rating to C/D from D.
Fitch also affirmed the bank's Support ratings at 3.
At the same time, Fitch Ratings (Thailand) has also upgraded
BAY's:
* National Long-term rating to A+(tha) from A(tha); and
* National subordinated debt rating to A(tha) from A-(tha);
and
* National Short-term rating of the bank has been affirmed
at F1(tha).
The Outlook on the ratings is Stable.
At the same time, the TCR-AP said that Moody's Investors Service
upgraded the Bank of Ayudhya's bank financial strength rating to
"D-" from "E+".
iTV PCL: Unable to Pay THB2.21-Bil. Debt; Presents 5 Options
------------------------------------------------------------
iTV Pcl admits that with the company's current financial status,
it is incapable to immediately pay its THB2.21 billion in
overdue concession fees to the Prime Ministers Office.
A filing with the Stock Exchange of Thailand, however, discloses
that iTV Pcl proposed five alternatives to the PMO on how it
would settle the amount.
As reported by the Troubled Company Reporter - Asia Pacific on
June 23, 2006, the PMO demanded a concession fee payment and
fines to the government from iTV. The demand, TCR-AP recounted,
was a result of the Arbitration Court's consent given to the
company to pay an annual concession fee to the Prime Minister's
office amounting to THB230 million. The original rate before
the consent amounted to THB1 billion per year.
In a meeting between the permanent secretary of the Office of
the Prime Minister and iTV on Jan. 24, 2007, the television
network owned up that its current financial status won't allow
it to pay its overdue concession fees.
As an alternative, iTV proposed five options on how it would
settle the amount:
1. iTV will repay the PMO by THB710 million in cash and THB1.5
billion worth of new shares priced at THB1 per share. If the
PMO will agree on the first option, the office would
eventually become the company's major shareholder taking
55.4% of shares.
ITV must first propose this to the shareholder's meeting for
approval.
2. As there are some Thai companies bidding to take over all
iTV's shares from Shin Corporation Plc, the winning bidder
who wants to operate iTV's business will take the burden on
the negotiations and disputes with the PMO. However, this
option depends on the approval of the board and shareholders'
meetings of Shin Corp and the result of negotiation with new
shareholders.
3. The government to take over all it's shares from Shin Corp,
which holds 52.9% of total paid-up capital or 638 million
Shares. The government on the other hand will have to
provide its budget for buying iTV's shares and run iTV's
business.
4. iTV will partly pay the concession fee amounting to THB1
billion to the PMO and pay the remaining of THB1.2 billion by
installments within five years. iTV will still have to
prepare the details of the installment method for the PMO's
consideration.
5. In the event that the company will not be able to pay the
PMO, the office PMO has the right to terminate iTV's
"operation of UHF television station" concession agreement.
* * *
iTV Plc's principal activity is producing and broadcasting
television programs and channels, including the promotion of
related rights and assets. Shin Corp Plc is iTV's major
shareholder, with a 53% stake. Singapore's state investment arm
Temasek Holdings controls more than 96% of Shin, which was
previously owned by caretaker Prime Minister Thaksin
Shinawatra's family. Earlier this year, it sold its majority
stake in iTV to Temasek.
On Dec. 15, 2006, the Troubled Company Reporter - Asia Pacific
reported that the Supreme Administrative Court upholds the
Central Administrative Court's verdict by voiding the
arbitration ruling on concession fee payments won by iTV in
2004, various reports say.
The TCR-AP reported on June 23, 2006, that the Prime Minister's
Office demanded a concession fee payment and fines to the
government from the television network.
The demand, TCR-AP recounted, was a result of the Arbitration
Court's consent given to the company to pay an annual concession
fee to the Prime Minister's office amounting to THB230 million.
The original rate before the consent amounted to THB1 billion
per year.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Andrei Sanchez, Nolie Christy Alaba, Rousel
Elaine Tumanda, Valerie Udtuhan, Francis James Chicano,
Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez,
and Peter A. Chapman, Editors.
Copyright 2007. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
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