/raid1/www/Hosts/bankrupt/TCRAP_Public/070212.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, February 12, 2007, Vol. 10, No. 30
Headlines
A U S T R A L I A
ALLSTATE EXPLORATIONS: Court Dismisses Claims Against ASIC
ANDREWS LABORATORIES: Liquidator to Present Wind-Up Report
ASHGROVE PTY: Members' Final Meeting Slated for March 7
ASTROGEM PTY: Enters Wind-Up Proceedings
CAPRI CONFECTIONERY: To Declare Second and Final Dividend
DANMOY PTY: Placed Under Voluntary Liquidation
ESTORIL ENTERPRISES: Members and Creditors to Meet on March 27
GLADSTONE: Club Management Appoints Receivers and Managers
GRIFFIN COAL: S&P Assigns BB- Rating to Proposed US$50-M Notes
JAMES HARDIE: Shareholders Approve Final Funding Agreement
JAMES HARDIE: Commissioner Jackson Finds MRCF Underfunded
OLD G.C. PTY: Members to Receive Wind-Up Report on March 14
STEVE WARD: To Declare First and Final Dividend on March 16
TRACER MARKETING: Schedules Final Meeting on March 7
VOCON PTY: Members and Creditors to Hear Liquidator's Report
WIZDOM PTY: Final Meeting Slated for March 6
C H I N A & H O N G K O N G
ANJALI (H.K.): Members to Receive Wind-Up Report on March 6
ASCEND DYEING: To Receive Proofs of Debt Until February 16
ATWL & ASSOCIATES: Wind-Up Hearing Set on February 28
CDS INTRA-CITY: Schedules Annual Meetings on February 16
CHINA MERCHANTS: Credit Card to Reach 15 Million in 2007
CHINA UNION: Members Pass Resolution to Wind Up Firm
CREDIT ELITE: Court to Hear Wind-Up Petition on March 21
GOLD BASE: Members Opt to Wind-Up Firm
HEGEL LIMITED: Cheng Mo Kit to Act as Liquidator
HILLDUN LIMITED: Creditors Must Prove Debts by March 16
KEYBOND TRADING: Creditors' Proofs of Debt Due on March 2
MING KWONG: Members' Final Meeting Slated for March 15
PANVA GAS: EGM Set on Feb 15 to Approve Acquisition Plans
SHENZHEN DEVELOPMENT: Names Xiao as New President
SMITHKLINE BEECHAM: Joint Liquidators Cease to Act
I N D I A
ATV PROJECTS: Posts INR41-Mil. Net Loss in December 2006 Quarter
BANK OF BARODA: BOB Housing Members & Creditors Approve Merger
BANK OF BARODA: In JV Talks with Three European Life Insurers
BHARTI AIRTEL: Issues 65,385 Shares on FCCB Conversion
BPL LTD: Narrows Net Loss to INR88 Mil. in December '06 Quarter
BPL LTD: Nambiar International Reduces Stake to 3.70%
BRITISH AIRWAYS: Agrees to Funding Plan Deal with NAPS Trustees
BRITISH AIRWAYS: Wants Inflation-Only Rise for Heathrow Charges
BRITISH AIRWAYS: Traffic Figures Down by 2.8% in January 2007
* India Upgrade Sparks Five Rising Stars, S&P Report Says
I N D O N E S I A
ALCATEL-LUCENT: To Aid Freescale with Fiber-to-the-Home Adoption
BANK DANAMON: Reports 34% Slump in 2006 Net Profit
BEARINGPOINT INC: S&P Withdraws Ratings & Removes CreditWatch
COMVERSE TECHNOLOGY: Zeev Bregman Resigns as Unit's CEO
CORUS GROUP: Tata Expects Deal to Take Effect Next Month
CORUS GROUP: Confirms Issuance of Ordinary Shares and Bonds
CORUS GROUP: Tata to Repay US$1.8-Bln Bonds; Default Swaps Fall
HANOVER COMPRESSION: Merger Deal Prompts S&P's Positive Watch
METSO CORP: Posts EUR4,955 Net Sales in 2006
METSO CORP: Sets Annual General Meeting on April 3
METSO CORP: To Expand Share Ownership Plan 2006-2008
NORTEL NETWORKS: To Cut Global Workforce by 2,900 Posts
PHILLIPS-VAN HEUSEN: Enters Licensing Agreement with Timberland
J A P A N
CONTINENTAL AIRLINES: Reports January Operational Performance
CONTINENTAL AIRLINES: To Add US$35 Million to Pension Plans
FIDELITY NATIONAL: Reports Strong Fourth Quarter 2006 Results
FIDELITY NATIONAL: Declares US$0.05 Per Share Quarterly Dividend
JAPAN AIRLINES: Debt Default Risk Falls on Future Profitability
JAPAN AIRLINES: Executives Take Part in Cost-Cutting Efforts
SOFTBANK CORP: Net Profit Slips 66% to JPY7.4 Bil. in 2006 3Q
TIMKEN CO: Declares US$0.16 Per Share Quarterly Dividend
US AIRWAYS: America West Pilots Demand Fair, Single Contract
K O R E A
HANAROTELECOM: Earns KRW7.9 Billion from 060 Service
KOREA EXCHANGE BANK: FSC & BAI Disagree on Lone Star's Status
KOREA EXCHANGE BANK: Pres. Says Lone Star to Decide Sale of Bank
* Grace Period to Correct Accounting Fraud Ends in March
* Government Plans Corporate Tax Cuts for Global Competitiveness
M A L A Y S I A
SUREMAX GROUP: Annual General Meeting Set for February 28
SUREMAX GROUP: Al-Hidayah Inks Deal to Help Bag US$60M Project
SUREMAX GROUP: Court Orders Payment of MYR120,511-Plus to WJC
SYARIKAT KAYU: Fails to Submit Plan; Bursa to Suspend Securities
SYARIKAT KAYU: Inks MOU for Sale and Lease Deal with Amanah Raya
TAP RESOURCES: Unveils Proposals on Regularization Plan
TENCO BHD: Inks Deal With Vendors to Vary Acquisition Proposals
TENGGARA OIL: Ten Units Under Creditors' Voluntary Liquidation
N E W Z E A L A N D
BLIS TECHNOLOGIES: Better Sales and Cost Cuts Pare Down Losses
BLIS TECHNOLOGIES: Key Shareholder Ups Stake By 4 Mil. Shares
BOTRY-ZEN LTD: Posts Interim Net Loss of NZ$700,176
BOTRY-ZEN LTD: Lays Out Plans for New Plant
CONNEXIONZ: Contract Delays, One-Offs Add Up to NZ$288,147 Loss
DIYONLINE LTD: Court Hears Liquidation Petition
GENESIS RESEARCH: Arborgen Settlement Fuels Interim Profit
KERWYN DEVELOPMENTS: Liquidation Hearing Set for March 1
NEWBURY RACING: Court Hears CIR's Liquidation Petition
NSSI NZ: Creditors' Proofs of Claim Due on February 15
PAUL HARRIS: Court Orders Liquidation
RAINBOW ENGINEERING: Court Sets Liquidation Hearing on Feb. 15
RAUMATI ROAD: R. T. McKenzie to Act as Liquidator
SHANTI CLEANING: Faces Liquidation Proceedings
SOLID FOUNDATION: Court Issues Liquidation Order
TEST AND TAG: Shareholders Appoint Liquidators
ZURICH APARTMENTS: Names Parsons and Kenealy as Liquidators
P H I L I P P I N E S
LAFAYETTE MINING: Can Resume Mining in Rapu-Rapu, Gov't. Says
SBARRO INC: Closes Tender Offer for 11% Senior Notes Due 2009
S I N G A P O R E
AFFYMETRIX INC: Profit Down to US$8.7 Mil. in 4th Qtr. 2006
LAZARD LTD: Declares US$0.09 Per Share Quarterly Dividend
PDC CORP: To Raise SG$50 Million from Issue of Convertible Notes
PETROLEO BRASILEIRO: Posts Preliminary Manati Production Result
PETROLEO BRASILEIRO: Unit Selling Biodiesel in All Outlets
PROGEN ENGINEERING: Court to Hear Wind-Up Petition on Feb. 16
READER'S DIGEST: High Leverage Cues Moody's to Cut Ratings to B2
SAW SPECIALIST: Wind-Up Petition Hearing Set for Feb. 23
SEA CONTAINERS: Court OKs Richards Butler as Foreign Counsel
SEA CONTAINERS: Committee Hires Morris as Delaware Counsel
SEA CONTAINERS: Court OKs Bingham as Services Committee Counsel
YEW SAY: Creditors Must Prove Debts by February 16
- - - - - - - -
=================
A U S T R A L I A
=================
ALLSTATE EXPLORATIONS: Court Dismisses Claims Against ASIC
----------------------------------------------------------
On Feb. 6, 2007, Justice Roger Gyles of the Federal Court upheld
a decision by the Australian Securities and Investments
Commission authorizing Allstate Explorations NL's shareholder,
Simon Evans, to run public examinations in the Federal Court,
Sydney Morning Herald reports.
The ASIC was awarded costs, The Australian reports, adding that
a directions hearing began before Justice Gyles on Feb. 7, 2007.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 6, 2006, Mr. Evans obtained the orders after the ASIC
authorized him to seek them.
The Sydney Herald relates that Mr. Evans spent AU$60,000 on
Allstate shares before the company went into administration in
2001. Mr. Evans belongs to a group of shareholders backed by
litigation funding firm IMF (Australia) Ltd who took
unsuccessful action in the NSW Supreme Court in 2005, the paper
notes.
IMF claimed that Macquarie's 2002 purchase of Allstate debts
with a face value of AU$77 million for AU$300,000 unfairly
transferred value from the company to the bank, the Sidney
Herald relates.
The Administrators, with Macquarie Bank, have argued that the
ASIC failed to take into account several matters, including that
the ASIC had investigated shareholder complaints and had decided
in 2003 to take no further action, the TCR-AP noted.
Judge Gyles dismissed their argument.
Justice Gyles said the Corporations Act gave the ASIC an
"unconstrained" discretion to authorize Mr. Evans to apply to
the court for examination orders, the Sydney Herald relates.
According to the Judge, internal ASIC documents showed that the
regulator's decision not to proceed was "based upon a number of
debateable matters requiring judgment and that, indeed, the
possibility of various forms of civil action were flagged but
not precluded," the paper says.
The Sidney Herald further says the judgment clears the way for a
timetable to be set for Michael Ryan and Tony Woodings to appear
in court and for Macquarie to produce all the documents it holds
relating to its dealings with to Allstate.
Administrators to Press Constitutional Challenge
As reported in the TCR-AP, the Federal Court ordered Allstate
administrators, Messrs. Ryan and Woodings, to appear and answer
questions under oath at a public examination. However, the
orders were frozen pending a hearing on the challenge to the
joint administrators' validity, the TCR-AP said.
On February 6, the parties sought the cancellation of the
examinations and orders to produce documents, the Sidney Herald
relates.
According to the paper, the administrators have decided to press
ahead with a constitutional challenge to head off public
examinations.
However, the Federal Court had not yet made a final decision on
whether Macquarie Bank will join the challenge, the Sidney
Herald notes. Justice Gyles suggested he was likely to refer
the constitutional challenge to a full bench of the Federal
Court, the paper relates.
As legally required, lawyers for Messrs. Ryan and Woodings have
notified the federal and state attorneys-general that the
attempt to examine them involves a constitutional matter, the
paper notes.
They expect to hear within two weeks whether any government or
ASIC wishes to intervene in the case, the Sidney Herald notes.
About Allstate
Allstate Explorations NL solely operates in Australia. The
Company manages, develops, and operates the Beaconsfield Mine
Joint Venture in Beaconsfield, Tasmania. Allstate partially
owns the Beaconsfield gold mine with its partner Beaconsfield
Gold NL. The Beaconsfield mine is located in Launceston,
Tasmania, Australia.
Allstate was placed under administration in 2004. The
Administrator can be reached at:
Allstate Explorations NL
The Administrator
Taylor Woodings Corporation Services
6th Floor, 30 The Esplanade
Perth, Australia, 6000
Telephone: 08 9321 8533
Fax: 08 9321 8544
ANDREWS LABORATORIES: Liquidator to Present Wind-Up Report
----------------------------------------------------------
Andrews Laboratories Pty Ltd, which is in voluntary liquidation,
will hold a final meeting for its members on March 13, 2007, at
10:00 a.m.
During the meeting, Robyn Beverley McKern, the appointed
liquidator, will present a report regarding the company's wind-
up proceedings and property disposal exercises.
The Liquidator can be reached at:
Robyn Beverley McKern
McGrathNicol+Partners
Level 8, IBM Centre, 60 City Road
Southbank, Victoria 3006
New Zealand
Telephone:(03) 9038 3100
Web site: http://www.mcgrathnicol.com
About Andrews Laboratories
Andrews Laboratories Pty Ltd is engaged with drugs,
proprietaries, and sundries.
The company is located in New South Wales, Australia.
ASHGROVE PTY: Members' Final Meeting Slated for March 7
-------------------------------------------------------
The members of Ashgrove Pty Ltd will hold a final meeting on
March 7, 2007, at 10:30 a.m., to consider the liquidator's
account of the company's wind-up proceeding.
The Troubled Company Reporter - Asia Pacific reported that the
company went into liquidation on June 15, 2005.
The liquidator can be reached at:
R. G. Shoobridge
Deloitte Touche Tohmatsu
Level 9, ANZ Centre, 22 Elizabeth Street
Hobart, Tasmania 7000
Australia
Telephone:(03) 6237 7000
Facsimile:(03) 6237 7001
About Ashgrove Pty
Ashgrove Pty Ltd provides business services.
The company is located in Western Australia, Australia.
ASTROGEM PTY: Enters Wind-Up Proceedings
----------------------------------------
At an extraordinary general meeting held on Jan. 16, 2007, the
members of Astrogem Pty Ltd resolved to voluntarily wind up the
company's operations.
Subsequently, Morgan Chubb was appointed liquidator at the
creditors' meeting held that same day.
The Liquidator can be reached at:
M. J. Chubb
Clout & Associates
Telephone:(02) 6652 3288
Facsimile:(02) 6651 9393
CAPRI CONFECTIONERY: To Declare Second and Final Dividend
---------------------------------------------------------
Capri Confectionery Pty Ltd, which is in liquidation, will
declare a second and final dividend for its creditors on Feb.
28, 2007.
In this regard, creditors are required to submit their proofs of
debt by Feb. 21, 2007, to be included in the dividend
distribution.
The liquidator can be reached at:
G. S. Andrews
G. S. Andrews & Assocs
22 Drummond Street, Carlton Victoria 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
About Capri Confectionery
Capri Confectionery Pty Ltd is a distributor of candies,
chocolates and other confectioneries.
The company is located in Victoria, Australia.
DANMOY PTY: Placed Under Voluntary Liquidation
----------------------------------------------
At a general meeting held on Jan. 22, 2007, the members of
Danmoy Pty Ltd passed a special resolution to voluntarily
liquidate the company's business and distribute the proceeds of
its assets disposal.
The Joint and Several Liquidators can be reached at:
BDH & Co
Accountants
Suite 3, Level 1, 3 Carlingford Road
Epping, New South Wales 2121
Australia
ESTORIL ENTERPRISES: Members and Creditors to Meet on March 27
--------------------------------------------------------------
The members and creditors of Estoril Enterprises Pty Ltd will
meet on March 27, 2007, at 9:00 a.m.
At the meeting, the liquidator will present an account of how
the company was wound up and its properties disposed of.
The liquidator can be reached at:
R. A. Sutcliffe
Ground Floor, 192-198 High Street
Northcote, Victoria 3070
Australia
Telephone:(03) 9482 6277
About Estoril Enterprises
Estoril Enterprises Pty Ltd is engaged with truck rental and
leasing.
The company is located in Victoria, Australia.
GLADSTONE: Club Management Appoints Receivers and Managers
----------------------------------------------------------
On Jan. 5, 2007, Club Management Pty Ltd appointed Robert Hutson
and John Park as joint and several receivers and managers of the
property of Gladstone & District Leagues Club Ltd.
The Joint Receivers and Managers can be reached at:
Robert Hutson
John Park
KordaMentha (Queensland)
22 Market Street, Brisbane Queensland 4000
Australia
Telephone:(07) 3225 4900
Facsimile:(07) 3225 4999
About Gladstone & District
Gladstone & District Leagues Club Ltd operates recreation clubs.
The company is located in Queensland, Australia.
GRIFFIN COAL: S&P Assigns BB- Rating to Proposed US$50-M Notes
--------------------------------------------------------------
On Feb. 8, 2007, Standard & Poor's Ratings Services assigned its
'BB-' long-term issue rating to The Griffin Coal Mining Company
Pty Ltd.'s (Griffin Coal; BB-/Stable/--) proposed US$50 million
senior unsecured notes due Dec. 1, 2016. The proposed note
issue follows the company's inaugural US$400 million Rule 144A
(without registration rights) note issue in November 2006. The
additional US$50 million note will be issued under the same
indenture governing the outstanding US$400 million, 9.5% senior
notes due Dec. 1, 2016.
The additional funds will be held to support the company's
liquidity position ahead of its significant upcoming capital-
expenditure programs. The company's temporary cash position
after the new debt issue will be about AU$240 million. Standard
& Poor's expects these funds to be available to fund the
company's proposed capital expenditure over the next three
years. The capital program relates to the development of the
Ewington 1 and 2 coal mines and the refurbishment and expansion
of the charring plant and coal-drying facilities. The capital
spend is expected to be about AU$90 million in fiscal 2007,
AU$70 million in fiscal 2008, and AU$80 million in fiscal 2009.
Griffin Coal's investments in the Bluewater 1 and Bluewater 2
power stations, which are funded independently, are not included
in the company's expenditure program.
The Bluewater 1 power station is currently under construction
and will require a capital investment of about AU$55 million in
two stages (AU$30 million during construction and AU$25 million
at completion). Negotiations are continuing on the proposed
funding and engineering contracts associated with the Bluewater
2 power station.
Griffin Coal is privately owned by the Stowe family and is one
of only two coal mining companies in Western Australia. The
company's coal mines are located in the Collie region of Western
Australia. The rating on Griffin Coal reflects the company's
limited mine and geographic diversity, significant short-term
capital expenditure, changing customer mix, reliance on growth
plans of key industrial customers, and limited financial
disclosure due to its private company status. These weaknesses
are mitigated by the company's low-cost coal mining operations,
its strong market share and contractual relationships with key
Western Australian industrial customers, the favorable proximity
of mines to proposed power-generation plants and industrial
customers, and a long reserve life.
JAMES HARDIE: Shareholders Approve Final Funding Agreement
----------------------------------------------------------
On Nov. 21, 2006, the Troubled Company Reporter - Asia Pacific
reported that James Hardie Industries Ltd and the NSW Government
executed an Amended and Restated Final Funding Agreement to
compensate Australians with asbestos-related personal injury
claims against former James Hardie subsidiaries.
According to the TCR-AP, for the Amended FFA to be implemented,
it must be approved by 50% of the shareholder votes cast at the
Extraordinary General Meeting. The EGM was held in Amsterdam on
Feb. 7, 2007.
In an update, James Hardie relates that during the EGM, security
holders approved the long-term compensation funding arrangements
for asbestos-related personal-injury claims against certain
former group subsidiaries.
This resolution was passed with 99.6% of the votes cast in favor
of the compensation proposal, James Hardie says, noting that the
votes represented 59.4% of the issued capital.
The initial payment of AU$184.3 million is expected to be
transferred to the Asbestos Injuries Compensation Fund by
Feb. 14, 2007. KPMG Actuaries' central estimate of the net
present value of the liabilities over the life of the fund as at
Sept. 30, 2006, is AU$1,555 million.
Shareholders Approve Re-election of Board Members
As reported in the TCR-AP on Dec. 19, 2006, the Supervisory
Board of James Hardie Industries Ltd. appointed Brian Anderson
and Don DeFosset to the company's Supervisory and Joint Boards
effective December 14, 2006. Mr. Anderson has also been
appointed a member of the Audit Committee and Mr. DeFosset a
member of the Remuneration Committee.
The Board has also endorsed two candidates, Michael Hammes and
Rudy van der Meer, to stand for election at the EGM.
During the meeting, security holders approved the resolutions to
re-elect Messrs. DeFossett and Anderson to the Supervisory and
Joint Boards and to elect Messrs. Hammes and van der Meer to the
Supervisory and Joint Boards.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives. On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring. James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL. Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.
On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001. In connection with the 2001
reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV. Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.
The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established.
By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia. Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.
In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades. When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.
On Dec. 1, 2005, the Company announced that the NSW Government
and a wholly owned Australian subsidiary of the Company -- LGTDD
Pty Ltd -- had entered into a conditional agreement to provide
long-term funding to a special purpose fund that will provide
compensation for Australian asbestos-related personal injury
claims against certain former James Hardie asbestos companies.
The amount of the asbestos provision of AU$1 billion, at March
31, 2006, is the Company's best estimate of the probable
outcome. The estimate includes an actuarial calculation
prepared by KPMG Actuaries Pty Ltd of the projected future cash
outflows, undiscounted and uninflated, and the anticipated tax
deduction arising from Australian legislation, which came into
force on April 6, 2006.
JAMES HARDIE: Commissioner Jackson Finds MRCF Underfunded
---------------------------------------------------------
The Australian Securities and Investments Commission has until
Feb. 15, 2007, to start criminal prosecutions or civil suits
against James Hardie Industries Ltd over the creation of its
asbestos compensation trust six years ago -- the Medical
Research and Compensation Foundation -- Ean Higgins writes for
The Australian.
According to the report, the ASIC has a taskforce working on
James Hardie's case, after New South Wales special commissioner
David Jackson QC found evidence the company and some of its
officers had broken corporate laws in the establishment of the
MRCF with insufficient funds.
The Australian relates that Mr. Jackson found evidence of
misleading and deceptive conduct by former chief executive Peter
Macdonald when he announced on Feb. 16, 2001, that the MRCF was
"fully funded".
The paper cites sources close to the investigation, as saying,
whether or not the ASIC launched actions related to the February
2001 events, it would pursue possibly more serious alleged
wrongdoing later on, which include:
* misleading the NSW Supreme Court, which approved the
company's move to The Netherlands; and
* the cancellation of AU$1.9 billion of partly paid shares
that the company promised the court would be available to
meet some of its residual asbestos liabilities.
However, the company and its officers deny the allegations, The
Australian says.
About James Hardie
James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives. On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring. James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL. Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.
On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001. In connection with the 2001
reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV. Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.
The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL. In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims. The Foundation has
warned that it could run out of money within five years. The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund. James Hardie was later accused of topping
up the dwindling asbestos fund it established.
By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia. Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.
In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades. When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.
On Dec. 1, 2005, the Company announced that the NSW Government
and a wholly owned Australian subsidiary of the Company -- LGTDD
Pty Ltd -- had entered into a conditional agreement to provide
long-term funding to a special purpose fund that will provide
compensation for Australian asbestos-related personal injury
claims against certain former James Hardie asbestos companies.
The amount of the asbestos provision of AU$1 billion, at March
31, 2006, is the Company's best estimate of the probable
outcome. The estimate includes an actuarial calculation
prepared by KPMG Actuaries Pty Ltd of the projected future cash
outflows, undiscounted and uninflated, and the anticipated tax
deduction arising from Australian legislation, which came into
force on April 6, 2006.
OLD G.C. PTY: Members to Receive Wind-Up Report on March 14
-----------------------------------------------------------
The members of Old G.C. Pty Ltd will meet on March 14, 2007, at
11:00 a.m., to receive the liquidator's report regarding the
company's wind-up proceedings.
As reported by the Troubled Company Reporter - Asia Pacific, the
company entered voluntary wind-up on Oct. 11, 2006.
The liquidator can be reached at:
Richard Judson
Members Voluntarys Pty Ltd
1st Floor, 10 Park Road
Cheltenham 3192
Australia
About Old G.C.
Old G.C. Pty Ltd is security broker and dealer.
The company is located in New South Wales, Australia.
STEVE WARD: To Declare First and Final Dividend on March 16
-----------------------------------------------------------
Steve Ward Tyre & Mechanical Pty Ltd, which is in liquidation,
will declare a first and final dividend for its creditors on
March 16, 2007.
Accordingly, creditors are required to submit their proofs of
debt by Feb. 22, 2007, to be included in the dividend
distribution.
The liquidator can be reached at:
Mark Pearce
Pearce & Heers
Insolvency Accountants
Level 8, 410 Queen Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3221 0055
Facsimile:(07) 3221 8885
About Steve Ward
Steve Ward Tyre & Mechanical Pty Ltd -- trading as Bundaberg
Tyre Power -- operates auto and home supply stores.
The company is located in Queensland, Australia.
TRACER MARKETING: Schedules Final Meeting on March 7
----------------------------------------------------
Tracer Marketing Pty Ltd, which is in liquidation, will hold a
final meeting for its members and creditors on March 7, 2007, at
9:00 a.m., for the purpose of attending to statutory duties.
The liquidator can be reached at:
Nicholas Crouch
Crouch Insolvency
Level 28, 31 Market Street
Sydney, New South Wales
New Zealand
About Tracer Marketing
Tracer Marketing Pty Ltd is engaged with motor truck trailers.
The company is located in New South Wales, Australia.
VOCON PTY: Members and Creditors to Hear Liquidator's Report
------------------------------------------------------------
The members and creditors of Vocon Pty Ltd will meet on
March 6, 2007, at 10:30 a.m., to receive the liquidator's report
regarding the company's wind-up proceedings and property
disposal exercises.
The liquidator can be reached at:
K. A. Strickland
SimsPartners
Level 12, 40 St George's Terrace
Perth, Western Australia 6000
Australia
About Vocon Pty
Vocon Pty Ltd provides business services,
The company is located in Western Australia, Australia.
WIZDOM PTY: Final Meeting Slated for March 6
--------------------------------------------
Wizdom Pty Ltd, which is in liquidation, will hold a final
meeting for its members and creditors on March 6, 2007, at
10:00 a.m., to consider the liquidator's final account of the
company's liquidation.
The liquidator can be reached at:
Stuart Ariff
Stuart Ariff Insolvency Administrators
Level 7, 50 Clarence Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9248 2888
Facsimile:(02) 9290 2885
About Wizdom Pty
Wizdom Pty Ltd provides management consulting services.
The company is located in New South Wales, Australia.
================================
C H I N A & H O N G K O N G
================================
ANJALI (H.K.): Members to Receive Wind-Up Report on March 6
-----------------------------------------------------------
The members of Anjali (H.K.) Corporation Ltd will meet on
March 6, 2007, at 10:00 a.m., to receive the liquidator's report
regarding the company's wind-up proceedings.
As reported by the Troubled Company Reporter - Asia Pacific, the
company's shareholders appointed Ip Chung Yuen as liquidator on
Sept. 2, 2006.
The Liquidator can be reached at:
Ip Chung Yuen
22/F, Guangdong Investment Tower
148 Connaught Road, Central
Hong Kong
ASCEND DYEING: To Receive Proofs of Debt Until February 16
----------------------------------------------------------
The official receiver and liquidator of Ascend Dyeing Works Ltd
will be receiving proofs of debt until Feb. 16, 2007.
The Troubled Company Reporter - Asia Pacific previously reported
that the company issued a preferential dividend on Oct. 8, 2005.
The official receiver and liquidator can be reached at:
E. T. O'Connell
10/F, Queensway Government Offices
66 Queensway
Hong Kong
ATWL & ASSOCIATES: Wind-Up Hearing Set on February 28
-----------------------------------------------------
An amended wind-up petition filed against ATWL & Associates
(International) Ltd will be heard before the High Court of Hong
Kong on Feb. 28, 2007, at 9:30 a.m.
Yeung Ka Wai filed the petition. It was amended on Dec. 18,
2006.
Any creditors who oppose or support the making of an order on
the amended petition may appear at the time of the hearing.
Yeung Ka Wai's solicitor can be reached at:
Rowdget W Young & Co.
3/F, Wings Building
110-116 Queen's Road, Central
Hong Kong
CDS INTRA-CITY: Schedules Annual Meetings on February 16
--------------------------------------------------------
CDS Intra-City Logistics Company Ltd will hold annual meetings
for its members and creditors on Feb. 16, 2007, at 11:00 a.m.,
to consider the liquidator's wind-up report during the preceding
year.
The liquidator can be reached at:
Desmond Chiong
14/F, Hong Kong Club Building
3A Chater Road, Central
Hong Kong
CHINA MERCHANTS: Credit Card to Reach 15 Million in 2007
--------------------------------------------------------
China Merchant's Bank credit card issuance will reach 15 million
by the end of 2007, or a rise of about 50% from 2006, Chi Wei
Joong, head of the bank's credit card unit told Reuters.
According to The International News, the bank began issuing
credit cards in 2002 and had about 10 million cards last year.
"In 2006, we started to contribute significantly to the bank's
profits," Mr. Joong said, noting that the bank's bad debt ratio
for credit cards remained below 1% compared with a global
average of between 5% and 6%.
Without divulging any details, Mr. Joong relates that the unit's
profitability came about two years faster than the industry
average.
The News recounts that China Merchants said last month that net
profits in 2006 would rise more than 50% from the previous year,
indicating earnings would be at least US$758 million.
* * *
China Merchants Bank -- http://www.cmbchina.com/-- is the
second-largest bank among China's 12 nationwide shareholding
commercial banks. It was established in 1987 and listed on the
Shanghai Stock Exchange in 2002. The Ministry of
Communications-owned China Merchants Group is the bank's main
shareholder with a 26 percent stake (through various companies).
The bank had 410 banking outlets nationwide and 17,829 employees
at end-2004.
On August 3, 2006, The Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings has upgraded its Individual rating
on China Merchants Bank to 'D' from 'D/E'. At the same time,
the bank's Support rating was affirmed at '3'.
Fitch Ratings affirmed on September 5, 2006, China Merchants
Bank's Individual D and Support 3 ratings.
Fitch on August 3, 2006, upgraded its Individual rating on China
Merchants Bank (CMB) to 'D' from 'D/E'. At the same time, CMB's
Support rating was affirmed at '3'.
CHINA UNION: Members Pass Resolution to Wind Up Firm
----------------------------------------------------
On Jan. 23, 2007, the members of China Union (HK) Ltd passed a
special resolution to voluntarily wind up the company's
operations.
Subsequently, Wong Chun Keung was appointed as liquidator.
The Liquidator can be reached at:
Wong Chun Keung
29/F, K. Wah Centre
191 Java Road, North Point
Hong Kong
CREDIT ELITE: Court to Hear Wind-Up Petition on March 21
--------------------------------------------------------
The High Court of Hong Kong will hear a wind-up petition filed
against Credit Elite Ltd on March 21, 2007, at 9:30 a.m.
China Insurance Group Finance Company Ltd filed the petition on
Jan. 12, 2007.
China Insurance's solicitor can be reached at:
Tsang, Chan & Wong
16/F, Wing On House
No. 71 Des Voeux Road, Central
Hong Kong
GOLD BASE: Members Opt to Wind-Up Firm
--------------------------------------
On Jan. 23, 2007, the members of Gold Base Ltd passed a special
resolution to voluntarily wind up the company's operations.
In this regard, Wong Chun Keung was appointed as liquidator and
was authorized to divide to company's assets to its members.
The Liquidator can be reached at:
Wong Chun Keung
29/F, K. Wah Centre
191 Java Road, North Point
Hong Kong
HEGEL LIMITED: Cheng Mo Kit to Act as Liquidator
------------------------------------------------
Cheng Mo Kit Katherine was appointed as liquidator of Hegel Ltd
by a special resolution passed on Jan. 26, 2007.
The Liquidator can be reached at:
Cheng Mo Kit, Katherine
United Centre
26/F, Office B, 95 Queensway
Hong Kong
HILLDUN LIMITED: Creditors Must Prove Debts by March 16
-------------------------------------------------------
The creditors of Hilldun Ltd are required to submit their proofs
of claims by March 16, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in any distribution the company will make.
As reported by the Troubled Company Reporter - Asia Pacific, the
company's members resolved to close its business on Dec. 29,
2006.
The joint and several liquidators can be reached at:
Robert Michael James Atkinson
Antony Nigel Tyler
9/F, Central Tower
Cathay City, 8 Scenic Road
Lantau, Hong Kong
KEYBOND TRADING: Creditors' Proofs of Debt Due on March 2
---------------------------------------------------------
The creditors of Keybond Trading Ltd are required to submit
their proofs of debt by March 2, 2007, to be included in the
company's distribution of dividend.
According to the Troubled Company Reporter - Asia Pacific, the
company went into liquidation on Jan. 24, 2007.
The liquidator can be reached at:
Sung Mi Yin
Suite No. A, 11th Floor
Ritz Plaza, 122 Austin Road
Tsimshatsui, Kowloon
Hong Kong
MING KWONG: Members' Final Meeting Slated for March 15
------------------------------------------------------
The final meeting of the members of Ming Kwong Association Ltd
will be held on March 15, 2007, at 4:00 p.m., to consider the
liquidator's account of the company's wind-up proceedings and
property disposal exercises.
As reported by the Troubled Company Reporter - Asia Pacific the
company entered wind-up proceedings on Jan. 8, 2007.
The liquidator can be reached at:
Lo Shui Shan Zue
7/F, Pearl Oriental Tower
225 Nathan Road, Kowloon
Hong Kong
PANVA GAS: EGM Set on Feb 15 to Approve Acquisition Plans
---------------------------------------------------------
Panva Gas Holdings Ltd will convene for an extraordinary general
meeting on Feb. 15, 2007, 10:30 a.m. at Board Room, 28th Floor,
Vicwood Plaza, 1999 Des Voeux Road Central, Hong Kong.
The purpose of the meeting is to approve these resolutions:
1 a. that the conditional sale and purchase agreement between
the company, The Hong Kong and China Gas Company Limited
and Hong Kong & China Gas (China) Limited dated December
4, 2006, and for the purpose of identification marked
"A", be and is hereby approved, confirmed and ratified;
b. that the company's acquisition of the entire issued
share
capital of each of: (Target Companies)
- Hong Kong & China Gas (Qingdao) Limited,
- Hong Kong & China Gas (Zibo) Limited,
- Hong Kong & China Gas (Yantai) Limited,
- Hong Kong & China Gas (Weifang) Limited,
- Hong Kong & China Gas (Weihai) Limited,
- Hong Kong & China Gas (Taian) Limited,
- Hong Kong & China Gas (Maanshan) Limited and
- Hong Kong & China Gas (Anqing) Limited
and the taking of the assignment by the company of the
outstanding loans due from the Target Companies to
HK&CG(China) or its associates as at completion of the
Agreement and the allotment and issue of 772,911,729
ordinary shares of HK$0.10 each in the capital of the
Company to HK&CG(China) credited as fully paid in full
satisfaction of the consideration of the Acquisition, in
each case in accordance with the terms and conditions of
the Agreement, are approved; and
c. that the directors of the company are authorized execute
the documents and take all steps which may necessary,
desirable, or expedient to implement all transactions
contemplated under the Agreement.
2. that subject to the approval of the first three
resolutions, the waiver of the obligation of HK&CG(China)
and parties acting in concert with it to make a mandatory
offer for all the securities of the company not already
owned by them, is approved.
3. that the re-election of Zhang Ke as the company's
independent non-executive Director with effect from the
conclusion of the EGM and his fixed remuneration, are
approved.
* * *
Panva Gas, listed on the Hong Kong Stock Exchange, is primarily
engaged in the downstream selling and distribution of LPG and
natural gas in Mainland China. Its main operations include the
sale of LPG in bulk and cylinders, the provision of piped
natural gas, the construction of gas pipelines and, to a lesser
extent, the sale of LPG household appliances.
On Dec. 5, 2006, Standard & Poor's Ratings Services had placed
its BB corporate credit rating on Panva Gas Holdings Ltd on
CreditWatch with positive implications following an announcement
that the company plans to acquire 10 piped gas projects from
Hong Kong & China Gas Co. Ltd. At the same time, the BB issue
ratings on US$50 million convertible bonds due 2008 and US$200
million senior unsecured notes due 2011 were also placed on
CreditWatch with positive implications.
Moody's Investors Service on December 4, 2006, has placed under
review for possible upgrade its Ba2 corporate family rating and
senior unsecured bond rating of Panva Gas.
The rating action follows Panva's announcement that it will
issue new shares to Hong Kong and China Gas and, in return,
acquire ten piped gas-operating projects in Eastern China.
Accordingly, the transaction will involve no cash payment.
SHENZHEN DEVELOPMENT: Names Xiao as New President
-------------------------------------------------
Shenzhen Development Bank had appointed Xiao Suining as its
president to replace Jeffrey Williams who resigned a year ago,
Wall Street Journal reports.
However, the appointment is still subject to approval by the
China Banking Regulatory Commission, Reuters says.
Mr. Xiao is the former head of China's Bank of Communication,
Shenzhen branch.
As reported by the Troubled Company Reporter - Asia Pacific on
Feb. 16, 2006, Mr. Williams has tendered his resignation as
president effective Feb. 11, 2006 due to management reshuffle.
The bank's chairman, Frank Newman has temporarily stepped in to
handle the president's functions, the TCR-AP said.
Chinese regulations do not permit a bank's presidency and chair
to be held by a single person except in extraordinary
situations, the TCR-AP noted.
In an earlier interview by the Wall Street Journal, Mr. Newman
said that the board wanted to fill the position with a Chinese
banker.
Mr. Newman would continue as chairman and chief executive of the
bank, Reuters adds.
* * *
Based in Shenzhen, Guangdong, People's Republic of China,
Shenzhen Development Bank Company Ltd's --
http://www.sdb.com.cn/-- principal activities are the provision
of local and foreign currency deposits and loan services. Other
activities include foreign currencies exchanging, foreign
currency deposit and remittances, acts as an agent for issuing
foreign currency value-bearing securities, management of letters
of credit and operation of both an international and a domestic
discounting service.
Fitch Ratings on August 14, 2006, affirmed Shenzhen Development
Bank's Individual 'D/E' and Support '4' ratings.
SMITHKLINE BEECHAM: Joint Liquidators Cease to Act
--------------------------------------------------
On Feb. 5, 2007, Ying Hing Chiu and Chung Miu Yin Diana ceased
to act as joint and several liquidators of SmithkLine Beecham
Ltd.
According to the Troubled Company Reporter - Asia Pacific, the
liquidators presented the company's wind-up report during the
members' final meeting on Dec. 4, 2006.
The former Joint Liquidators can be reached at:
Ying Hing Chiu
Chung Miu Yin, Diana
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
=========
I N D I A
=========
ATV PROJECTS: Posts INR41-Mil. Net Loss in December 2006 Quarter
----------------------------------------------------------------
Engineering and construction firm ATV Projects India Ltd posted
a net loss of INR40.63 million for the three months ended
Dec. 31, 2006, compared with the INR45.01-million loss incurred
in the corresponding quarter in 2005.
ATV Projects' revenues dropped 19% from the INR22.45 million
total income in the quarter ended Dec. 31, 2005, to
INR18.15 million booked in the December 2006 quarter.
Expenditures fell 34% to INR15 million in the current quarter
under review.
A copy of ATV Projects' financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange at http://ResearchArchives.com/t/s?19ae
ATV Projects India Ltd undertakes engineering and construction
projects, besides manufacturing heavy engineering and industrial
equipment. The company's projects include power plants, off-
site facilities, oil pipelines and sugar mills. ATV Projects
also manufactures thermoplastic elastomer products. The company
has private and public sector customers, domestically and
abroad.
The company is a sick industrial undertaking and has submitted a
rehabilitation and revival proposal with the Board for
Industrial and Financial Reconstruction.
BANK OF BARODA: BOB Housing Members & Creditors Approve Merger
--------------------------------------------------------------
The members and the secured and unsecured creditors of BOB
Housing Finance Ltd Bank, a subsidiary of Bank of Baroda, have
approved the scheme of amalgamation of the unit to the bank.
The shareholders and creditors made the unanimous decision at a
convened Jan. 17 meeting called by the Honorable High
Court of Judicature at Jaipur.
Headquartered in Mumbai, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking
services in India. The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.
Fitch Ratings, on June 1, 2005, gave Bank of Baroda an
individual rating of C/D.
BANK OF BARODA: In JV Talks with Three European Life Insurers
-------------------------------------------------------------
Bank of Baroda is in talks with three European insurance and
financial group -- Munich Re, Societe Generale (SocGen) and
Legal & General -- to form a life insurance joint venture, the
Business Standard reports.
According to the news agency, Bank of Baroda expects to firm up
the venture this February.
More than six foreign insurance companies reportedly made
presentations to the bank. Bank of Baroda is most likely to
zero in on a European insurer, BS says, citing banking sources.
The news agency expects Bank of Baroda to tie up with another
Indian company since the Indian Government has a 26% ceiling on
foreign investment in insurance ventures while the Reserve Bank
of India has indicated that it does not favor Indian banks
holding 74% stake in insurance venture.
Headquartered in Mumbai, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking
services in India. The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.
Fitch Ratings, on June 1, 2005, gave Bank of Baroda an
individual rating of C/D.
BHARTI AIRTEL: Issues 65,385 Shares on FCCB Conversion
------------------------------------------------------
The committee of directors of Bharti Airtel Ltd's board has
issued 65,385 fully paid-up equity shares of the company upon
conversion of US$350,000 foreign currency convertible bonds.
The issuance made at a meeting on Feb. 7, was pursuant to the
terms and conditions of an Offering Circular dated May 12, 2004.
With the allotment, the equity share capital of the company has
increased from 1,895,780,547 to 1,895,845,932 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.
BPL LTD: Narrows Net Loss to INR88 Mil. in December '06 Quarter
---------------------------------------------------------------
Despite a fall in revenues, BPL Ltd narrowed its net loss to
INR87.8 million in the quarter ended Dec. 31, 2006, from the
INR1.567 billion booked in the corresponding quarter in 2005.
BPL's net sales fell 20% from INR310.9 million in the three
months ended Dec. 31, 2005, to INR249.7 million in the December
2006 quarter. There's a sharp fall in the company's total
revenues with the INR3.654 billion in other income recorded in
the December 2005 quarter with just INR6.3 million in the
current quarter under review.
With the drop in revenues came a slide in expenditures from
INR2.494 billion in the December 2005 quarter to
INR278.8 million in the December 2006 quarter. Compared with
the (INR2.908 billion) extraordinary items recorded in the
December 2005 quarter, the company did not book any
extraordinary items that could have widened the loss in the
quarter under review.
A copy of the company's financial results for the quarter ended
Dec. 31, 2006, is available for free at the Bombay Stock
Exchange at http://ResearchArchives.com/t/s?19b1
Headquartered in Bangalore, India, BPL Limited manufactures and
distributes consumer electronic products such as televisions,
video tape recorder, audio systems, emergency lanterns,
electrocardiographs and monitors. The Group also manufactures
home appliances like washing machines, refrigerators, vacuum
cleaners, microwave ovens, gas tables, soft energy and consumer
telecom products. Its plants are located at Kerala, Karnataka
and Uttar Pradesh. The Group operates only in India.
In 2005, the Company obtained approval from the Kerala High
Court for its financial restructuring scheme and the launch of
the 50:50 joint venture with Sanyo for the CTV business. The
restructuring has allowed BPL to focus and strategize on its
core businesses like mobile phones, entertainment electronics,
medical electronics, engineering plastics and tooling for
automotive and consumer electronics industry. As a part of the
restructuring exercise, BPL had recently sold off its dry cell
business -- which operated through its subsidiary BPL Soft
Energy Systems -- in a INR67 crore deal including liabilities to
the Khaitans of Eveready Industries.
* * *
On Jan. 5, 2006, CRISIL Ratings reaffirmed the 'D' and 'FD'
ratings on BPL Limited's non-convertible and fixed deposit
programmes. The ratings indicate that the company continues to
be in default on its rated debt.
These ratings are reaffirmed:
* INR600 Million Non-Convertible Debenture at D
* INR210 Million Non-Convertible Debenture at D
* INRFixed Deposit Programme at FD
BPL LTD: Nambiar International Reduces Stake to 3.70%
-----------------------------------------------------
In a filing with the Bombay Stock Exchange, BPL Ltd disclosed
that stakeholder Nambiar International Investment Company Pvt
Ltd sold some of its shares in the company.
Nambiar International disposed 1,035,000 of its shares in BPL
through open market sale reducing its 6.01% stake (2,688,000
shares) to 3.70% (1,653,000 shares).
Headquartered in Bangalore, India, BPL Limited manufactures and
distributes consumer electronic products such as televisions,
video tape recorder, audio systems, emergency lanterns,
electrocardiographs and monitors. The Group also manufactures
home appliances like washing machines, refrigerators, vacuum
cleaners, microwave ovens, gas tables, soft energy and consumer
telecom products. Its plants are located at Kerala, Karnataka
and Uttar Pradesh. The Group operates only in India.
In 2005, the Company obtained approval from the Kerala High
Court for its financial restructuring scheme and the launch of
the 50:50 joint venture with Sanyo for the CTV business. The
restructuring has allowed BPL to focus and strategize on its
core businesses like mobile phones, entertainment electronics,
medical electronics, engineering plastics and tooling for
automotive and consumer electronics industry. As a part of the
restructuring exercise, BPL had recently sold off its dry cell
business -- which operated through its subsidiary BPL Soft
Energy Systems -- in a INR67 crore deal including liabilities to
the Khaitans of Eveready Industries.
* * *
On Jan. 5, 2006, CRISIL Ratings reaffirmed the 'D' and 'FD'
ratings on BPL Limited's non-convertible and fixed deposit
programmes. The ratings indicate that the company continues to
be in default on its rated debt.
These ratings are reaffirmed:
* INR600 Million Non-Convertible Debenture at D
* INR210 Million Non-Convertible Debenture at D
* INRFixed Deposit Programme at FD
BRITISH AIRWAYS: Agrees to Funding Plan Deal with NAPS Trustees
---------------------------------------------------------------
British Airways Plc and the trustees of the New Airways Pension
Scheme have formally agreed the funding plan including benefit
changes to tackle the GBP2.1-billion deficit in the scheme.
The plan, which was agreed in principle with the trustees last
year, includes annual company contributions of some GBP280
million for the next ten years and a one-off cash injection of
GBP800 million. It also includes benefit changes to take effect
from April 1 and an additional GBP150 million in cash over the
next three years, subject to the airline's financial
performance.
The benefit changes will deliver an immediate deficit reduction
of some GBP400 million and a saving of some GBP80 million a
year.
Benefit changes include:
-- normal retirement age at 60 with an accrual rate of
1/60 and contribution rates of 8.5%;
-- normal retirement age at 65 with an accrual rate of
1/60 and contribution rates of 5.25%;
-- normal retirement age of 55 with an accrual rate of
1/60 and contribution rates of 17.5%;
-- options to buy improved accrual rates;
-- lifting the cap on total pension contributions from 15
to 30%;
-- introducing tax efficient ways of making
pension contributions;
-- future pensionable pay rises capped to inflation; and
-- pension growth in retirement (LPI) remains at 5%.
Staff can still choose to retire earlier than the normal
retirement age but with a reduced pension.
"This brings to a close our lengthy consultation process on
pensions," British Airways' chief financial officer Keith
Williams, said. "It provides greater stability and certainty
for all 70,000 NAPS members and frees the company to move
forward into an exciting phase of investment and growth."
According to AFX News, the Transport & General Workers Union
will consult its members regarding the issue.
Meanwhile, the British Airline Pilots Association will allow its
3,000 members to vote on the matter with a recommendation to
accept BA's proposals. The union is set to reveal the results
on Friday, AFX relates.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 8, 2007, Moody's Investors Service changed the outlook on
the Ba1 corporate family and Ba2 senior unsecured debt ratings
of British Airways Plc and its guaranteed subsidiaries to
positive from negative.
BRITISH AIRWAYS: Wants Inflation-Only Rise for Heathrow Charges
---------------------------------------------------------------
British Airways Plc is calling for airport charges at London
Heathrow to rise by no more than inflation between 2008 and 2013
and for safeguards to be introduced to allow the Civil Aviation
Authority to ringfence revenue to improve airport facilities.
The airline wants the CAA to challenge BAA plc to run its
business more efficiently to reduce costs and to take account of
the full retail earning potential of the airport operator so
that charges can be reduced to the benefit of customers.
It also wants safeguards in place to ensure that BAA's new
owners, Grupo Ferrovial SA, cannot divert money for improved
airport facilities and services to pay off its debt.
The airline's views are detailed in its response to the CAA's
consultation on its preliminary prices proposals for charges at
BAA London airports.
The CAA'S preliminary proposal is to raise charges at London
Heathrow by inflation plus 4-8% each year between 2008 and 2013.
It has proposed a lower cost of capital at 6.2%, down from 7.75%
currently, and assumed that BAA can achieve a 1% operating
efficiency each year.
British Airways believes that a 50% rise in charges over the
next five years is unjustified on top of the 50% increase during
the current charging period between 2003-2008.
Paul Ellis, British Airways general manager airport policy,
said, "While the CAA has told Ferrovial that it won't allow them
to increase charges to pay off debt or acquisition costs, it is
vital that sufficient measures are put in place to ensure this
does not happen. Revenue from the regulated parts of the
business must be ringfenced to protect the airport's operational
integrity and secure Heathrow's future."
The airline is calling on the CAA to set BAA's cost of capital
at 5.5% and target the airport operator with a 3% a year
operating efficiency improvement. Achieving this would enable
charges to increase by no more than inflation.
"The opening of Terminal 5 in March 2008 will be a catalyst for
change at BAA. The cost of investing at Heathrow can be cut by
5% because terminal congestion will be reduced, lowering
building costs and making it easier to modernize the airport.
"Also, an improved operating efficiency target is achievable. By
opening a brand new terminal and redeveloping older facilities
such as Terminal 2, there is an opportunity for better working
and operational practices to be introduced," Mr. Ellis said.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 8, 2007, Moody's Investors Service changed the outlook on
the Ba1 corporate family and Ba2 senior unsecured debt ratings
of British Airways Plc and its guaranteed subsidiaries to
positive from negative.
BRITISH AIRWAYS: Traffic Figures Down by 2.8% in January 2007
-------------------------------------------------------------
British Airways Plc disclosed of its traffic and capacity
statistics for January 2007.
In January 2007, passenger capacity, measured in Available Seat
Kilometers, was 1.5% above January 2006. Traffic, measured in
Revenue-Passenger-Kilometers, was lower by 2.8%. This resulted
in a passenger load factor down 3 points versus last year, to
69.5%. The decrease in traffic comprised a 3.1% decrease in
premium traffic and a 2.7% decrease in non-premium traffic.
Cargo, measured in Cargo-Ton-Kilometers, decreased by 18.1%.
Overall load factor fell by 3.2 points to 64.9%.
This month's statistics were significantly impacted by the
threat of industrial action. Premium volumes suffered the
largest reductions as most tickets are flexible and refundable,
and customers are easily able to move to other carriers. The
ballot result in favor of strike action was disclosed on Jan. 15
and the strike averted on Jan. 29.
Market Conditions
The market continues to show good demand in premium cabins. The
weakness in some non-premium segments is also still a feature.
The revenue outlook for the fourth quarter has been impacted by
the threat of industrial action by the T&G. While the strike
was averted, the estimated revenue loss is still some GBP80
million. Revenue guidance for the full year is now 3.25 - 3.75%
growth.
Costs
While cost control remains strong, full year costs excluding
fuel are expected to be some GBP50 million higher than last
year. This reflects higher costs in the first quarter. The
airline's full year fuel guidance has been revised down by
GBP40 million reflecting the reduction in fuel prices. The fuel
bill will now be accounted for on a continuing operations basis,
and is expected to be some GBP1.95 billion.
Strategic Developments
Following a ballot for industrial action the T&G announced a
series of planned strikes. As a result the airline cancelled
1,300 flights over a 48-hour period. While the dispute was
averted and the schedule reinstated, supported by a seat sale of
500,000 tickets, the impact on lost bookings and revenue is
expected to be some GBP80 million in the fourth quarter.
The BA Forum, which represents British Airways' unions, issued a
statement recommending acceptance of changes to benefits to
tackle the GBP2.1 billion deficit in the New Airways Pension
Scheme.
The airline reduced its fuel surcharge on longhaul flights under
nine hours by from GBP35 to GBP30 per sector as a result of a
fall in the price of oil.
British Airways disclosed of modifications to its uniform rules
to allow staff to wear a symbol of faith openly. The decision
came after a comprehensive review of the airline's uniform
policy and extensive consultation with a wide range of religious
groups including representatives from the Church of England, the
Catholic Church and the Muslim Council of Britain. The new
policy was introduced on Feb. 1, 2007.
The airline disclosed of a new daily service between London
Gatwick and Newquay. The flights will start on March 20
operating on a Boeing 737.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 8, 2007, Moody's Investors Service changed the outlook on
the Ba1 corporate family and Ba2 senior unsecured debt ratings
of British Airways Plc and its guaranteed subsidiaries to
positive from negative.
* India Upgrade Sparks Five Rising Stars, S&P Report Says
---------------------------------------------------------
So far in 2007, six issuers have crossed over to investment
grade from speculative grade, according to an article published
today by Standard & Poor's. The article, which is titled
"Global Potential Rising Stars," says that these rising stars
affected debt worth US$10.3 (EUR13.5) billion.
In 2006, 29 issuers, having a total rated debt worth US$45
(EUR34.8) billion, crossed over to investment grade, the lowest
number since 2004 and far fewer than the 51 issuers that crossed
in the year 2005.
The sovereign upgrade of India at the end of January led to the
generation of all five rising-star additions last month. The
ratings on entities in India's banking sector were raised
because of a better operating environment amid stable and strong
economic prospects.
"Although it is still early in the year, the trend so far in
2007 reverses the 2006 pattern, when the number of rising stars
lagged that of fallen angels," said Diane Vazza, head of
Standard & Poor's Global Fixed Income Research. As of Feb. 5,
2007, rising stars have overtaken fallen angels by a margin of
three entities.
Globally, utilities, insurance, and high technology rank high on
the list of potential rising stars, with three entities each.
All three entities in utilities and insurance and two of the
high technology entities are based in the U.S.
The report is available to subscribers of RatingsDirect, the
real-time Web-based source for Standard & Poor's credit ratings,
research, and risk analysis, at http://www.ratingsdirect.com
=================
I N D O N E S I A
=================
ALCATEL-LUCENT: To Aid Freescale with Fiber-to-the-Home Adoption
----------------------------------------------------------------
Alcatel-Lucent and Freescale disclosed their plan to facilitate
the adoption of fiber-to-the-home technologies by making
available jointly developed Gigabit Passive Optical Network or
GPON technology and interoperability specifications to vendors
of terminal equipment worldwide.
Through an agreement with Freescale Semiconductor, terminal
vendors will be able to license critical technologies, including
reference designs and support, for GPON that is compliant with
Alcatel-Lucent's 7342 Intelligent Services Access Manager fiber-
to-the-user (FTTU) or FTTU product family. In addition, and
under a separate agreement, Alcatel-Lucent will offer support
services required to promote interoperability.
"Alcatel-Lucent has been a long-standing promoter of the Full
Service Access Network Group's efforts to standardize GPON and
this should come as no great surprise given our market position
in broadband access," says Dirk Van den Berghen, President of
Alcatel-Lucent's access activities. "It is fully expected that
this move will help eliminate industry barriers toward multi-
vendor interoperability and enable service providers to select
GPON terminal equipment in nearly any configuration they desire
at competitive prices."
As part of this program, manufacturers of GPON terminal
equipment will be able to procure system-on-a-chip or SOC
silicon from industry leader Freescale Semiconductor. Freescale
and Alcatel-Lucent had already partnered in 2005 to deliver the
first available GPON interface using a combination of Freescale
and Alcatel-Lucent intellectual property. Through the use of a
reference design and support services, vendors will now be able
to ensure interoperability of GPON optical network terminals.
"Freescale's ongoing collaboration with Alcatel-Lucent gives
customers access to exceptional software and systems expertise
while helping to drive industry-wide adoption of advanced fiber-
to-the-home technology," said Lynelle McKay, Senior Vice
President and General Manager of Freescale's Networking and
Computing Systems Group. "This important technology milestone,
a result of combining Freescale's GPON SoC capabilities with
Alcatel-Lucent's broadband system leadership, ultimately
benefits subscribers who can look forward to a greater choice of
broadband services in the future."
Alcatel-Lucent is a leading provider of digital subscriber line,
having shipped over 115 million lines. It is also a leading
manufacturer of fiber-to-the-home equipment with more than 60
deployments. Alcatel-Lucent's GPON equipment is comprised of
the 7342 Intelligent Services Access Manager FTTU system, which
has received worldwide adoption.
The Full Service Access Network Group is a forum for the world's
leading telecommunications services providers and equipment
suppliers to work towards a common goal of truly broadband
access networks.
About Freescale
Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets. Freescale
Semiconductor became a publicly traded company in July
2004. The company has design, research and development,
manufacturing or sales operations in more than 30 countries. In
Latin America, Freescale Semiconductor has operations in
Argentina, Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Freescale Semiconductor Inc. to 'BB-' from 'BB+' and
removed the rating from CreditWatch with negative implications,
where it had been placed on Sept. 11, 2006, following the
company's announcement that it was considering a business
transaction, later confirmed as a leveraged buyout. The outlook
is negative.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move. The company has operations in
Indonesia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
* * *
As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent to
'BB-' from 'BB', in line with its preliminary indication in its
Nov. 7, 2006 research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
BANK DANAMON: Reports 34% Slump in 2006 Net Profit
--------------------------------------------------
PT Bank Danamon Tbk reported a 34% fall in its 2006 net profit
in the absence of any non-recurring income and because of higher
interest rates, Reuters reports.
Despite the slump, the bank remains optimistic a better
macroeconomic condition this year will help its performance,
Reuters says.
The report notes that Danamon's president director, Sebastian
Paredes, said in a news conference that on a normalized basis,
the bank reported a 16% increase in its net profit compared to
the previous year.
Danamon posted a net profit of IDR1.325 trillion last year,
compared to analysts' estimates of IDR1.4 trillion, and
IDR2.0 trillion a year ago, Reuters points out. The bank's net
interest income rose nearly 9% to IDR5.6 trillion, the news
agency adds.
The report relates that the bank recorded IDR808 billion worth
of non-recurring income in 2005 from various sources, including
debts that have been written off.
Analysts polled by Reuters estimates predict the bank's net
profit will grow to IDR2.17 trillion on the back of stronger
demand for loans, the report says.
Reuters points out that Danamon's outstanding loans, with a
market capitalization of US$3.2 billion, grew 17% last year to
IDR43 trillion, higher than the industry average of an expected
10-12%.
Danamon's chief financial officer, Vera Eve Lim, said that the
lender was aiming for 20% growth in lending this year, and that
the bank plans to raise IDR1.5 trillion in bonds in the first
quarter of 2007, Reuters notes.
However, the bank's net non-performing loans rose to 3.3% by the
end of 2006 from 2.7% in 2005, caused by an unfavorable
operating environment for several industries, but was still
below the five percent guidance from the central bank, Reuters
adds.
Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking. Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services. The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers. DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income. Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb. 6, 2007 that Moody's Investors Service revised the outlook
for PT Bank Danamon Indonesia's long-term credit ratings to
positive from stable. The short-term deposit rating continues
to carry a stable outlook while the BFSR remains on review for
possible upgrade.
The bank's detailed ratings are:
-- subordinated debt of Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of D-.
The TCR-AP reported on Feb. 1, 2007, that Fitch Ratings has
affirmed all the ratings of PT Bank Danamon Indonesia Tbk as
follows:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA-(idn)' (AA minus(idn))
* Individual 'C/D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
BEARINGPOINT INC: S&P Withdraws Ratings & Removes CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B-' corporate
credit rating and 'CCC+' subordinated debt ratings on
BearingPoint Inc. and removed them from CreditWatch, where they
were placed March 18, 2005.
"While BearingPoint continues to operate its business and
recently filed its 2005 Form 10-K and the related 2005 Forms 10-
Q, it has not completed its 2006 filings, thus neither its
operations nor its financial performance can be assessed
properly," said Standard & Poor's credit analyst Philip Schrank.
About BearingPoint
Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
COMVERSE TECHNOLOGY: Zeev Bregman Resigns as Unit's CEO
-------------------------------------------------------
Zeev Bregman has decided to resign as the Chief Executive
Officer of Comverse, Inc. -- a subsidiary of Comverse
Technology, Inc. -- on March 31. Yaron Tchwella, the President
of Comverse, Inc.'s InSight Open Services Environment
(Messaging) Group and a 10-year veteran of the company, has been
named President and will lead Comverse, Inc., after Mr.
Bregman's departure. Mr. Bregman will work closely with Mr.
Tchwella and Comverse Technology's Board of Directors to ensure
a smooth transition.
Mark C. Terrell, Chairperson of Comverse Technology's Board
stated, "Zeev has led a fundamental transformation of Comverse,
Inc. -- steering it through the telecom crisis, significantly
increasing revenues and building it from a narrowly focused
voice mail business into a market leading, diversified
communications software company. Comverse, Inc. has become a
truly global company, with a greatly expanded customer base and
a well-earned reputation for bold technological innovations.
While we will certainly miss him, we respect his decision to
leave the company and thank him for his years of dedicated
service."
Mr. Bregman commented, "After nearly 20 years with Comverse,
Inc. -- including more than six years as CEO -- I have decided
to leave the company to explore other opportunities, as well as
to spend more time with my family. I have enormous confidence
in our employees and our management team, and in the expertise
of our new Board of Directors. I look forward to working with
Yaron and everyone else involved to ensure that this transition
takes place smoothly, with no effect on our services to
customers or our intense focus on delivering value to our
investors. The best interests of the company remain my first
priority."
Mr. Terrell also said, "We are pleased that Yaron Tchwella has
agreed to lead Comverse, Inc.'s business. Yaron is a talented,
experienced executive with a strong track record of success,
deep knowledge of our operations, products and customers and a
thorough understanding of the challenges resulting from changing
industry dynamics."
Mr. Tchwella noted, "Zeev has provided extraordinary leadership
over the years, and I look forward to working closely with him,
the Board of Directors and the entire Comverse team to ensure
continued business progress and seamless service. Comverse has
a multitude of cutting-edge products and technology, and as a
leading supplier to the world's largest and most successful
telecommunication carriers, I am confident that Comverse is well
equipped to adapt and succeed in the dynamically changing
telecommunications environment."
Update on Developments at Comverse Technology
The Comverse Technology Board recently launched a search for a
new Chief Executive Officer, who will be responsible for the
strategy of Comverse Technology and the performance of its
operations.
"The Comverse Technology Board is moving systematically to put
new leadership in place and to assess corporate structure and
opportunities. The new CEO will work with the Board in its
ongoing review of Comverse Technology's businesses and areas of
competitive opportunity and to effect strategies that serve the
interests of investors, customers and employees," said Mr.
Terrell.
Yaron Tchwella is a member of Comverse, Inc.'s Senior Management
team who began his tenure at Comverse, Inc. in 1997, and who has
held several senior management and product development
positions. In 2000, he was assigned to establish Comverse,
Inc.'s U.S. Research & Development center, and in 2001 was named
Vice President of Professional Services, Americas. In 2002, he
was named Vice President and General Manager of Comverse
Americas Services, where he was responsible for product
development, delivery and customer service in Comverse Americas.
He became President of Comverse, Inc.'s entire messaging
business in 2003.
Comverse Technology, Inc. (NASDAQ: CMVT)
-- http://www.comverse.com/-- provides software and systems
that enable network-based multimedia enhanced communication and
billing services. Over 450 communication and content service
providers in more than 120 countries use Comverse products to
generate revenues, strengthen customer loyalty and improve
operational efficiency.
Comverse has offices all over the world, including Indonesia,
Malaysia and the Philippines.
The Troubled Company Reporter - Asia Pacific reported on Jan. 4,
2007, that Standard & Poor's Ratings Services said that it is
leaving its 'BB-' corporate credit and senior unsecured debt
ratings on New York, N.Y.-based Comverse Technology Inc. on
CreditWatch with negative implications, where they were placed
on March 15, 2006.
CORUS GROUP: Tata Expects Deal to Take Effect Next Month
--------------------------------------------------------
Tata Steel Ltd. anticipates that the Effective Date of the
scheme of arrangement for its acquisition of Corus Group Plc
will be around the end of March or the first week in April 2007.
Tata Steel intends to despatch consideration pursuant to the
Scheme as soon as practicable following the Effective Date and
if practicable, on the Effective Date.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, Tata Steel won an auction for Corus over Companhia
Siderurgica Nacional after offering investors 608 pence per
share in cash, or GBP5.7 billion (US$11.3 billion).
About Tata Steel
Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb 2, 2007, Standard & Poor's Ratings Services kept its 'BB'
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the dislocure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review.
CORUS GROUP: Confirms Issuance of Ordinary Shares and Bonds
-----------------------------------------------------------
In accordance with Rule 2.10 of the City Code on Takeovers and
Mergers, Corus Group plc confirmed that, as at Feb. 7, it had
the following relevant securities in issue (including any
ordinary shares represented by American Depositary Shares but
excluding any ordinary shares held in treasury):
-- 946,127,682 ordinary shares of 50p each under
ISIN code GB00B127GF29.
-- 4.625% convertible subordinated bonds due 2007
amounting to NLG345,000,000 convertible into
19,338,687 ordinary shares of Corus Group plc.
The ISIN code for these securities is NL0000183184.
Each American Depositary Share represents two ordinary shares of
the company.
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB'
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the dislocure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review.
CORUS GROUP: Tata to Repay US$1.8-Bln Bonds; Default Swaps Fall
---------------------------------------------------------------
Tata Steel Ltd. is likely to repay Corus Group Plc's
US$1.8 billion of bonds as cost of credit default swaps on
EUR10-million of Corus debt fell to EUR172,000 since the
takeover deal was disclosed on Jan. 31, Bloomberg News reports
citing traders of credit derivatives.
There may not be "any Corus debt to back the default swap
contracts," Priya Viswanathan, a credit analyst at Bangalore,
India-based Frontline, was quoted by Bloomberg as saying.
Ms. Viswanathan added Tata Steel might opt to issue a new debt
under the company that isn't referenced by existing credit-
default swap contracts.
Tata Steel Managing Director B. Muthuraman said financing
arrangements of the takeover would be revealed this month,
Hamish Risk writes for Bloomberg. However, he declined to
provide further details on the matter.
According to Roberto Pozzi, a credit analyst at Societe Generale
in London, Mr. Muthuraman will either send credit-default swaps
tumbling or push the cost to as much as EUR270,000, Bloomberg
relates.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, Tata Steel won an auction for Corus over Companhia
Siderurgica Nacional after offering investors 608 pence per
share in cash, or GBP5.7 billion (US$11.3 billion).
About Tata Steel
Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Corus turns over GBP10 billion annually and employs 47,300 in
over 40 countries and sales offices and service centers
worldwide, including Indonesia and the Philippines.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 2, 2007 Standard & Poor's Ratings Services kept its 'BB'
long-term corporate credit rating on U.K.-based steelmaker Corus
Group PLC on CreditWatch with developing implications, after the
completion of the auction process, during which India-based
steel manufacturer Tata Steel Ltd. offered the highest bid of
608 pence per share.
This values the company at GBP5.75 billion, up from the 455
pence per share of the initial bid.
At the same time, the 'BB+' long-term debt rating on Corus'
EUR700 million senior secured bank loan and the 'BB-' unsecured
debt ratings on Corus remain on CreditWatch with developing
implications. The 'B' short-term corporate credit rating
remains on CreditWatch with positive implications.
All ratings were placed on CreditWatch on Oct. 18, 2006,
following the dislocure of an initial bid by Tata Steel.
On Feb 2, 2007, Fitch Ratings said that Corus Group Plc's
Issuer Default 'BB-' and Short-term 'B' ratings remain on Rating
Watch Negative following a recommended bid, valued at GBP6.2
billion, from India-based Tata Steel Limited in the wake of an
auction process conducted by the UK Takeover Panel on 30-31
January 2007. The RWN also applies to the 'B+' ratings on CS's
EUR800 million 7.5% senior notes and Corus Finance Plc's GBP200m
6.75% guaranteed bonds.
At the same time, Moody's Investors Service placed Corus Group
plc's Ba2 Corporate Family and other ratings under review.
HANOVER COMPRESSION: Merger Deal Prompts S&P's Positive Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor
Co. and its related entity Hanover Compression L.P. on
CreditWatch with positive implications.
At the same time, Standard & Poor's affirmed the 'BB' corporate
credit ratings on oilfield service company Universal Compression
Holdings Inc. and its related entity Universal Compression Inc.
The rating actions come after the report that Hanover Compressor
and Universal Compression Holdings have entered into a
definitive agreement to merge in an all-stock transaction.
Pro forma the transaction, the combined entity will have US$2.2
billion in debt outstanding.
"The CreditWatch listing for Hanover reflects the likelihood
that the ratings could be raised in the near term following an
assessment of the merged entity's likely credit profile," said
Standard & Poor's credit analyst Aniki Saha-Yannopoulos.
Although the combined entity's business profile is strengthened
significantly, Standard & Poor's haas affirmed the ratings on
Universal Compression for the following reasons: The combined
entity's credit measures are weaker than Universal's stand-alone
credit measures. There are concerns regarding the integration
that we will have to assess over time, particularly plans to
achieve $50 million in synergies and the likelihood of achieving
such goals.
Standard & Poor's expects the combined entity to place more of
its contract compression fleet in master limited partnership
Universal Compression Partners L.P., thus increasing the
proportion of cash flows to the combined entity from the MLP.
Standard & Poor's generally does not consider the cash flow
associated with MLP distributions as supportive of credit
quality.
Standard & Poor's will meet with management to assess the
combined company's business strategy, financial policy, and
expected financial profile before resolving the CreditWatch
listing.
Headquartered in Houston, Texas, Hanover Compressor Company --
http://www.hanover-co.com-- rents and repairs compressors and
performs natural gas compression services for oil and gas
companies. It has a fleet of more than 6,520 mobile compressors
ranging from 8 to 4,735 horsepower. The company's subsidiaries
also provide service, fabrication, and equipment for oil and
natural gas processing and transportation applications. Hanover
Compressor is disposing of its non-oilfield power generation
facilities and used equipment businesses to focus on core
operations. In 2006 the company sold the US amine treating
rental assets of Hanover Compression Limited Partnership to oil
and gas firm Crosstex Energy for about US$52 million.
The company has locations in Argentina, Bolivia, China,
Indonesia, Japan, Korea, Peru, Taiwan, Trinidad, the United
Kingdom, Venezuela and Vietnam, among others.
METSO CORP: Posts EUR4,955 Net Sales in 2006
--------------------------------------------
Metso Corp.'s net sales increased by 17% to EUR4,955 in 2006,
compared with 2005.
Highlights of 2006
* In 2006, new orders worth EUR5,705 million were received
(EUR4,745 million in 2005).
* At year's end, the order backlog was EUR3,737 million
(EUR2,350 million at Dec. 31, 2005). This includes EUR727
million order backlog of the Pulping and Power businesses
acquired from Aker Kvaerner. The acquired businesses were
consolidated into Metso's balance sheet on Dec. 31, 2006.
* Operating profit was EUR457.2 million, 9.2% of net sales
(EUR335.0 million and 7.9% in 2005).
* Nonrecurring deferred tax assets of EUR87 million were
recognized through the income statement.
* Earnings per share from continuing operations were EUR2.89
(EUR1.57).
* Free cash flow was EUR327 million (EUR106 million in 2005).
* Return on capital employed (ROCE) was 22.2% (18.8% in
2005).
* The Board proposes a dividend of EUR1.50 per share.
Highlights of the last quarter of 2006
* New orders worth EUR1,557 million were received in
October-December (EUR1,537 million in the fourth quarter of
2005).
* Net sales increased by 23% and totaled EUR1,538
million (EUR1,254 million in the fourth quarter of 2005).
* Operating profit was EUR125.0 million, 8.1% of net sales
(EUR101.5 million and 8.1% in the fourth quarter of 2005).
* In the final quarter, a nonrecurring deferred tax asset of
EUR30 million was recognized in the income statement.
* Earnings per share from continuing operations were EUR0.86
(EUR0.47 in the fourth quarter of 2005).
"Year 2006 was a year of consistent profitable growth for Metso.
The favorable market situation prompted brisk order intake
throughout our businesses. Our net sales clearly exceeded our
over 10% growth target for a second year in a row, and our
operating profit improved substantially," Metso President and
Chief Executive Officer Jorma Eloranta said.
Also, the outlook for 2007 is positive. Ms. Eloranta stated,
"We have started the year with a very solid order backlog out of
which over 80% is scheduled to be delivered this year.
Furthermore, we expect the overall favorable demand for our
products to continue, which give us confidence that our net
sales growth will remain strong."
"Of course, we still see opportunities to improve our
performance. Aftermarket development, continuous improvement of
productivity and further cutting of non-quality costs remain on
our agenda as means to further boost our profitability. In
addition, we will be investing in supply chain management and in
securing our delivery capability to respond to the growth
especially in Metso Minerals and Metso Automation. We continue
to strengthen our presence in the emerging markets to secure
Metso's longer-term development," Ms. Eloranta commented.
According to Ms. Eloranta, the integration of pulping and power
businesses acquired from Aker Kvaerner in the end of 2006 is
proceeding according to plans. She said, "The acquisition will
significantly improve our capabilities as a full-scope supplier
to the pulp and paper industries. Furthermore, we see very
promising business opportunities in the power industry and
biomass technology."
Short-term Outlook
The overall market situation for Metso is expected to remain
favorable in 2007.
The overall market outlook for Metso Paper is expected to be
satisfactory in 2007. The demand for new fiber and tissue lines
as well as related rebuilds and aftermarket services is expected
to slightly soften from the good level in 2006, except for South
America and Asia where the markets for new fiber lines are
expected to remain good. The demand for new paper and board
machines, as well as rebuilds and aftermarket services is
expected to remain satisfactory also in 2007. The strong demand
is expected to continue in Asia. The demand for power
production solutions, especially related to biomass utilization,
is expected to remain excellent.
Metso Minerals' markets for both new equipment and aftermarket
services are expected to remain excellent in mining and metal
recycling. In the mining industry, the trend is towards large
equipment and projects. The demand for Metso Minerals' new
equipment for the construction industry is expected to soften
from excellent to good in 2007. This is mainly due to the
leveling-off of North American aggregates demand. Meanwhile,
the demand for aftermarket services within construction segment
is expected to continue due to active spare and wear part
markets for the installed base.
The demand for Metso Automation's process automation systems for
the pulp and paper industry is estimated to get slightly
stronger. The demand for flow control systems is expected to
continue good in the pulp and paper industry and excellent in
the power, oil and gas industry. The markets for process
automation systems in the power industry are expected to
continue to be good.
Due to strong order backlog, continuing favorable market
situation and the expanded business scope, Metso's net sales in
2007 are estimated to grow by more than 20% on 2006, and the
operating profit is estimated to clearly improve. At present,
it is estimated that the operating profit margin in 2007 will be
slightly below Metso's over 10% target. This is primarily due
to the high first-year amortization of intangible assets,
integration costs and only partially materializing synergy
benefits related to the acquisition of the Pulping and Power
businesses.
The estimates concerning Metso's net sales and operating profit
do not include changes resulting from any future acquisitions or
divestitures.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
METSO CORP: Sets Annual General Meeting on April 3
--------------------------------------------------
Metso Corp.'s shareholders are invited to the Annual General
Meeting on April 3, 2007, at 2:00 p.m. at:
Helsinki Fair Centre
Messuaukio 1, 00520 Helsinki
These matters will be on the agenda:
1. The Annual General Meeting matters referred to in
Article 11 of the Articles of Association;.
2. Amendments to the Articles of Association.
3. Authorizing the Board of Directors to decide on the
repurchase of the company's own shares.
The Board of Directors proposes that the Annual General
Meeting authorizes the board to decide on the repurchase
of the company's own shares up to a maximum number of
5,000,000 shares.
The company's own shares will be repurchased using the
non-restricted equity and will be acquired through public
trading on the Helsinki Stock Exchange, at the share price
prevailing at the time of acquisition.
Metso Corp.'s own shares so acquired may be held,
cancelled or conveyed by the company.
The authorization to repurchase the company's own shares
will be valid until June 30, 2008.
4. Authorizing the Board of Directors to decide on a share
issue.
The Board of Directors proposes that the Annual General
Meeting authorizes the Board of Directors to decide on
issuing up to a maximum number of 15,000,000 new shares
and on conveying up to a maximum number of 5,000,000 of
the own shares held by the company, either against payment
or for free.
The new shares can be issued and the own shares held by
the company conveyed to the company's shareholders in
proportion to their present holding or by means of a
directed issue, waiving the pre-emptive subscription
rights of the shareholders, if there is a weighty
financial reason for the company to do so.
The Board of Directors would be authorized to decide on
a free share issue also to the company itself. The number
of shares to be issued to the company will not exceed
5,000,000, including the number of own shares acquired by
the company by virtue of the authorization to repurchase
the company's own shares.
The subscription price of the new shares will be recorded
in the fund of invested non-restricted equity and the
consideration paid for the company's shares will be
recorded in the fund of invested non-restricted equity.
The share issue authorization is valid until
June 30, 2008.
5. Shareholder's proposal for election of a Nomination
Committee.
The Ministry of Trade and Industry in Finland proposes that:
1. The Annual General Meeting decides to establish a
Nomination Committee to prepare proposals for the
following Annual General Meeting concerning the
composition of the Board of Directors and Board
remuneration.
2. The chairperson of the Board of Directors as an expert
member and the representatives of the four biggest
shareholders are elected to the Nomination Committee. The
right to appoint members representing shareholders is held
by the four shareholders who on Nov. 1 prior to the Annual
General Meeting hold the biggest part of all votes in the
company.
Should a shareholder choose not to use his right to
appoint, the right to appoint is transferred to the next
biggest shareholder. The biggest shareholders are
determined on the basis of the ownership information
registered in the book-entry system. However, the
holdings of a shareholder who according to the Finnish
Securities Markets Act is obliged to report certain
changes in holdings (shareholder with a disclosure
obligation), e.g. holdings spread over several funds, are
added together if the shareholder notifies the company's
Board of Directors in writing of such demand by
Oct. 31, 2007, at the latest.
3. The Nomination Committee is convened by the chairperson of
the Board of Directors, and the Committee elects a
chairperson from among its members.
4. The Nomination Committee will present its proposal to the
company's Board of Directors no later than Feb. 1
prior to the Annual General Meeting.
Copies of the financial statements, Board of Directors' report
and Auditors' report as well as the proposals to the Annual
General Meeting will be available for inspection by shareholders
from March 23, 2007, at Metso Corp.'s head office at:
Fabianinkatu 9 A,
00130 Helsinki
Finland
and on the company's web site http://www.metso.com
Copies of the documents will be mailed to shareholders upon
request.
Shareholders who on March 23, 2007, are registered as a
shareholder in the company's shareholder register, maintained by
the Finnish Central Securities Depository Ltd., have the right
to attend the meeting.
Shareholders whose shares are registered in their account in the
book-entry system are also registered in the company's
shareholder register. Owners of shares held under the name of a
nominee can request to be temporarily recorded in the company's
Shareholder register 10 days prior to the date of the Annual
General Meeting at the latest in order to be able to attend the
meeting. Registration must have been made on March 23, 2007, at
the latest.
Shareholders who wish to attend the Annual General Meeting must
notify the company of their intention by 4:00 p.m. (Finnish
time) on March 29, 2007, at the latest. Registration of notices
to attend begins on Feb. 28, 2007. Parties-in-interest may
contact:
Metso Corp.
Attention: Soili Johansson
P.O. Box 1220, FI-00101
Helsinki, Finland
Tel: +358 (0)108-0-8300
Fax: +358 (0)2048 43125
http://www.metso.com
The notice to attend the meeting must be received by the company
prior to the above deadline. Any powers of attorney be
submitted to the above address prior to the above deadline.
The Nomination Committee proposes to the Annual General Meeting
that the number of Board members be seven and that of the
current Board members Svante Adde, Maija-Liisa Friman, Christer
Gardell, Matti Kavetvuo, Yrjo Neuvo and Jaakko Rauramo be re-
elected until the closing of the following Annual General
Meeting. Moreover, the Committee proposes that Eva Liljeblom,
Professor at the Swedish School of Economics and Business
Administration, Helsinki, Finland, will be elected as a new
member of the Board of Directors for the same period.
The Committee also proposes that Matti Kavetvuo be re-elected as
Chairman and Jaakko Rauramo as Vice Chairman of the Board of
Directors. The Committee further proposes that the annual
remuneration for the members Board of Directors be EUR80,000 for
the Chairman, EUR50,000 for the Vice Chairman and the Chairman
of the Audit Committee and EUR40,000 for the members, and that
the meeting fee including committee meetings be EUR500 per
meeting attended.
The Audit Committee has decided to recommend the election of
Authorized Public Accountants PricewaterhouseCoopers Oy as the
auditor of the company until the closing of the following Annual
General Meeting.
The Board of Directors proposes to the Annual General Meeting
that a dividend of EUR1.50 per share be paid based on the
balance sheet approved for the financial year that ended on
Dec. 31, 2006. The dividend will be paid to shareholders
entered as shareholders in the company's shareholder register,
maintained by the Finnish Central Securities Depository Ltd., on
the dividend record date, April 10, 2007. The dividend will be
paid on April 17, 2007.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
METSO CORP: To Expand Share Ownership Plan 2006-2008
----------------------------------------------------
Metso Corp.'s board of directors has decided to change the terms
of the company's share ownership plan for 2006-2008. The share
ownership plan will be expanded due to Metso's good financial
development and as the Pulping and Power businesses acquired
from Aker Kvaerner have become part of Metso Corp.
In the earnings period 2007 the plan will cover over 80 Metso
managers instead of the originally planned 50 managers. The
maximum of Metso shares to be allocated as incentives in the
earnings period 2007 is 125,500 instead of the 120,000 in the
original program. Furthermore, it has been decided that the
share value maximum of the original incentive program, that is
used to cut the amount of grantable shares, is increased for the
shares to be used as incentives in the earnings period 2007 to
EUR48 in order to maintain the determined strive for share value
increase. The original price limit was EUR38.
The total maximum of shares to be allocated to the 2006-2008
incentive program is still 360,000 Metso Corp.'s shares, as was
originally decided in December 2005. If there were a need to
deviate from the total maximum due to a significant corporate
acquisition or for any other reason, a Board resolution about a
new, separate share ownership plan would be required. The
maximum of shares to be allocated for the 2008 earnings period
as well as the share value limit will be decided by Metso's
Board of Directors in the beginning of 2008.
2007 Share Ownership Plan Covers 84 People
Metso's board of directors has decided to direct the 2007 share
ownership plan to a total of 84 Metso managers. The entire
Metso Executive Team is included in the sphere of the 2007
incentive plan.
The potential reward from the plan will be based on the achieved
operating profit of Metso Corp. and its business areas in 2007.
The incentive will consist of both shares and cash, with cash
dedicated to cover possible taxes and tax-related payments. The
share ownership plan in 2007 will cover a maximum total of
125,500 shares from Metso's treasury shares. The Metso
Executive Team's share of this total is a maximum of 26,500
shares. If the value of Metso's share, determined as the
average price of Metso's share during the first two full weeks
of March 2008, exceeds EUR48, the number of grantable shares for
the 2007 plan will be decreased by a corresponding ratio.
Payment of the potential rewards will be decided during the
first quarter of 2008.
Share Ownership Plan for 2006
The share ownership plan for 2006 has been specified to cover a
total of 61 Metso managers. Based on the 2006 earnings period,
by the end of March 2007 a maximum of 100,601 shares, or about
0.07% of all company shares, will be distributed. The Metso
Executive Team can be rewarded with a maximum of 25,955 shares.
If the average value of Metso's share between March 5 and
March 16, 2007, exceeds EUR38, the number of grantable shares
for the 2006 plan will be decreased by a corresponding ratio.
Metso is a global engineering and technology corporation with
2005 net sales of approximately EUR4.2 billion. Its 25,000
employees in more than 50 countries serve customers in the pulp
and paper industry, rock and minerals processing, the energy
industry and selected other industries.
About Metso
Headquartered in Helsinki, Finland, Metso Corporation
-- http://www.metso.com/-- serves customers in the pulp and
paper industry, rock and minerals processing, the energy
industry and selected other industries.
The company also has operations in Indonesia.
* * *
Standard & Poor's Ratings Services revised its outlook on
Finland-based machinery and engineering group Metso Corp. to
positive from stable, reflecting improvements in the group's
operating performance and capital structure that offer it the
potential to return to a low investment-grade rating. The 'BB+'
long-term and 'B' short-term corporate credit ratings, as well
as the 'BB' senior unsecured debt rating on the group were
affirmed.
NORTEL NETWORKS: To Cut Global Workforce by 2,900 Posts
-------------------------------------------------------
Nortel Networks Corp. will cut its global workforce by
approximately 2,900 jobs as part of its business transformation
plan, the company said in a media release dated Feb. 7.
During the course of 2007 and into 2008, Nortel is expected to
implement the workforce reduction, with about 70% taking place
in 2007. In addition, the company plans to shift approximately
1,000 positions from higher-cost to lower-cost locations, with
approximately 40% of this activity taking place in 2007.
"These reductions will not affect sales positions in targeted
growth areas," the company says.
"We are transforming Nortel, and are focused on building a
highly competitive organization that drives innovation and
profitable growth," said Mike Zafirovski, president and chief
executive officer, Nortel. "In early 2006, Nortel laid the
foundations of its Business Transformation plan, and we provided
additional details and specific targets for our new business
model at the time of our third quarter 2006 results and at the
November 15, 2006 Investor Conference."
The business model requirements include a significant reduction
in general and administrative expenses, driven by simplified
operations, reduced systems and improved processes. In addition,
R&D investment will continue to be a top priority and though
reduced, will be maintained at an industry-competitive 15
percent of total revenues. Funding will shift and increase
significantly Nortel's investment in high-growth opportunities.
Plans to increase the Company's investment in sales and other
customer-facing functions remain unchanged by today's
announcement.
"These are tough but necessary measures, and we recognize the
impact they will have on affected employees," added Zafirovski.
"However, as we roll-out the various initiatives over the next
two years, every effort will be made to leverage normal
attrition and re-deploy affected employees to other areas of the
Company. Our goal is nothing short of creating a high-
performance, successful and profitable enterprise based on a
highly motivated work environment powered by strong business
results."
Nortel will deliver additional cost savings by efficiently
managing its various business locations and consolidating real
estate requirements to reduce its global real-estate portfolio
by over 500,000 square feet of space in 2007.
Upon completion, these actions are expected to deliver
approximately US$400 million in annual savings, with
approximately half of the savings expected to be realized in
2007. The cost of these actions could be as high as US$390
million, about US$300 million of which relates to the workforce
reductions and about US$90 million to the real estate actions.
Approximately 75% of those costs are expected to be recorded as
charges to the income statement in 2007 with most of the
remainder to be recorded as charges in 2008. The expected cash
cost of the plan could be as high as US$370 million and is
expected to be incurred generally in the same timeframe.
However, with the concerted effort to re-deploy affected
employees to other parts of the Company, the costs could be
lower.
Where appropriate, planned workforce reductions will be subject
to information and consultation requirements with employee
representatives.
About Nortel
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges. Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 9, 2006, Moody's Investors Service upgraded its B3
Corporate Family Rating for Nortel Networks Corp. to B2.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
PHILLIPS-VAN HEUSEN: Enters Licensing Agreement with Timberland
---------------------------------------------------------------
Phillips-Van Heusen Corporation has entered into a licensing
arrangement with The Timberland Company to design, source and
market men's and women's casual sportswear under the
Timberland(R) brand in North America. Phillips-Van Heusen will
assume management of the men's apparel line in Fall 2008 and
launch a women's line in Fall 2009.
Distribution of the Timberland brand product will be principally
through department and specialty stores, as well as Timberland's
own full price and outlet retail stores. It is estimated that
the men's line will be available in approximately 600 department
store doors in Fall 2008, in addition to specialty store
distribution.
Sales of Timberland(R) brand apparel in North America were
approximately US$70 million in 2006. Phillips-Van Heusen
expects to incur a total of approximately US$5 million of start-
up costs in 2007, associated with design, merchandising and
selling expense. The Company continues to estimate that,
including these start-up expenses, 2007 earnings per share will
be in the US$2.97 to US$3.05 range, which also excludes the
impact of the acquisition of Superba, completed in January 2007,
which is expected to be modestly accretive.
Emanuel Chirico, Chief Executive Officer of Phillips-Van Heusen
Corporation said, "Our partnership with Timberland pairs the
apparel design, logistics and marketing expertise of PVH with
the strength and heritage of the Timberland(R) brand.
Timberland is an authentic outdoor traditional brand which has a
unique positioning. It will complement PVH's strong stable of
brands and enable us to reach a broader spectrum of consumers."
Jeffrey Swartz, Timberland President and CEO said, "We are
pleased to enter into this agreement with a powerful partner
like Phillips-Van Heusen. They have the capabilities to help us
maximize our brand potential through an improved apparel
offering and strengthened distribution under the Timberland(R)
label. With their impressive portfolio of high-quality premium
brands and our shared commitment to responsible manufacturing, I
believe we are poised for success."
Phillips-Van Heusen Corporation is one of the world's largest
apparel and neckwear companies. It owns and markets the Calvin
Klein brand worldwide. It is the world's largest shirt company
and markets a variety of goods under its own brands, Van Heusen,
Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co., and its
licensed brands, including Geoffrey Beene, Kenneth Cole New
York, Kenneth Cole Reaction, unlisted, A Kenneth Cole
Production, BCBG Max Azria, BCBG Attitude, MICHAEL Michael Kors,
Sean John, Chaps, Donald J. Trump Signature Collection, JOE
Joseph Abboud, Tommy Hilfiger, and Perry Ellis.
About Timberland Company
Timberland is a global leader in the design, engineering and
marketing of premium-quality footwear, apparel and accessories
for consumers who value the outdoors and their time in it.
Timberland markets products under the Timberland(R), Timberland
PRO(R), SmartWool(R), Timberland Boot Company(TM), Mion(TM),
GoLite(R), and Howies(R) brands, all of which offer quality
workmanship and detailing and are built to withstand the
elements of nature. The Company's products can be found in
leading department and specialty stores as well as
Timberland(R)retail stores throughout North America, Europe,
Asia, Latin America, South Africa and the Middle East.
About Phillips-Van Heusen
Phillips-Van Heusen Corporation -- http://www.pvh.com/-- own
and markets the Calvin Klein brand worldwide. It is a shirt
company that markets a variety of goods under its own brands:
Van Heusen, Calvin Klein, IZOD, Arrow, Bass and G.H. Bass & Co.,
Geoffrey Beene, Kenneth Cole New York, Reaction Kenneth Cole,
BCBG Max Azria, BCBG Attitude, Sean John, MICHAEL by Michael
Kors, Chaps and Donald J. Trump Signature.
It has operations in the Asia-Pacific region, including
Indonesia, China, Philippines, Malaysia, and Thailand.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 14, 2006, that Moody's Investors Service upgraded Phillips
Van Heusen Corporation's corporate family rating to Ba2 from
Ba3.
The company's senior secured notes were upgraded to Baa3 from
Ba1 and the company's senior unsecured notes were upgraded to
Ba3 from B1.
The rating outlook is stable, reflecting Moody's expectations
the company will sustain financial metrics appropriate for the
rating category.
=========
J A P A N
=========
CONTINENTAL AIRLINES: Reports January Operational Performance
-------------------------------------------------------------
Continental Airlines reported a January consolidated (mainline
plus regional) load factor of 76.3%, 0.4 points above the
January 2006 consolidated load factor, and a mainline load
factor of 76.8%, 0.4 points above the January 2006 mainline load
factor. Both load factors were records for the month. In
addition, the carrier reported a domestic mainline load factor
of 78.1%, 0.2 points below January 2006, and an international
mainline load factor of 75.3%, 1.1 points above January 2006.
During the month, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 74.3% and a January
mainline completion factor of 99.6%.
In January 2007, Continental flew 7.0 billion consolidated
revenue passenger miles and 9.2 billion consolidated available
seat miles, resulting in a traffic increase of 5.9% and a
capacity increase of 5.5% as compared with January 2006. In
January 2007, Continental flew 6.3 billion mainline RPMs and 8.2
billion mainline ASMs, resulting in a mainline traffic increase
of 6.2% and a 5.6% increase in mainline capacity as compared
with January 2006. Domestic mainline traffic was 3.4 billion
RPMs in January 2007, up 4.8% from January 2006, and domestic
mainline capacity was 4.3 billion ASMs, up 5.1% from January
2006.
For January 2007, consolidated passenger revenue per available
seat mile is estimated to have increased between 2.0% and 3.0%
compared with January 2006, while mainline passenger RASM is
estimated to have increased between 3.5 and 4.5% compared with
January 2006. For December 2006, consolidated passenger RASM
increased 4.1% compared with December 2005, while mainline
passenger RASM increased 6.2 percent from December 2005.
January 2007 sales at continental.com increased 17% over January
2006.
Continental's regional operations had a January load factor of
72.3%, 0.4 points below the January 2006 load factor. Regional
RPMs were 759.7 million and regional ASMs were 1,050.4 million
in January 2007, resulting in a traffic increase of 3.6% and a
capacity increase of 4.2% versus January 2006.
Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 3,100 daily departures throughout the
Americas, Europe and Asia, serving 150 domestic and 136
international destinations. More than 400 additional points are
served via SkyTeam alliance airlines. With more than 44,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 67 million passengers per year.
Continental consistently earns awards and critical acclaim for
both its operation and its corporate culture.
About Continental Airlines:
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout the Americas, Europe and
Asia. It serves 15 European cities, 7 South American cities,
Tel Aviv, Hong Kong and Tokyo. International operations are
carried out throughout Europe, Canada, Mexico, Central and South
America, Caribbean and also Tel Aviv, Hong Kong and Tokyo. More
than 400 additional points are served via SkyTeam alliance
airlines. With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
* * *
As reported in the Troubled Company Reporter on Nov. 10, 2006,
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s. Moody's affirmed the B3 corporate
family rating. The outlook is stable.
As reported in the TCR on Oct. 23, 2006, Standard & Poor's
Ratings Services affirmed its ratings, including the 'B' long-
term and 'B-3' short-term corporate credit ratings, on
Continental Airlines Inc. The outlook is revised to stable from
negative. Continental has about US$17 billion of debt and
leases.
At the same time, Fitch Ratings upgraded Continental Airlines
Inc.'s Issuer Default Rating to 'B-' from 'CCC' and Senior
Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Rating outlook was
stable.
CONTINENTAL AIRLINES: To Add US$35 Million to Pension Plans
-----------------------------------------------------------
Continental Airlines Inc. will make an early contribution of an
additional US$35 million in cash to its defined benefit pension
plans. This amount is in addition to a US$71 million
contribution made less than a month ago and is being made prior
to the next required payment due date in April.
"We remain focused on meeting our pension commitments to our
employees," said Larry Kellner, chairman and chief executive
officer. "Our company culture is strongly linked to our co-
workers' trust that we will meet these commitments now and in
the future."
This pension contribution will be made with the proceeds of
recent sales of substantially all of Continental's remaining
shares of ExpressJet Airlines Inc. (NYSE: XJT). The disposition
of those shares was consistent with previous dispositions by the
company of non-core assets. Continental will receive the
proceeds from the last portion of its sales on Monday, Feb. 5,
2007, and will make its pension contribution on that date.
Since the beginning of 2002, Continental has contributed more
than US$1.2 billion to its pension plans.
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout the Americas, Europe and
Asia. It serves 15 European cities, 7 South American cities,
Tel Aviv, Hong Kong and Tokyo. International operations are
carried out throughout Europe, Canada, Mexico, Central and South
America, Caribbean and also Tel Aviv, Hong Kong and Tokyo. More
than 400 additional points are served via SkyTeam alliance
airlines. With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
* * *
As reported in the Troubled Company Reporter on Nov. 10, 2006
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s. Moody's affirmed the B3 corporate
family rating. Moody's said the outlook is stable.
As reported in the TCR on Oct. 23, 2006, Standard & Poor's
Ratings Services affirmed its ratings, including the 'B' long-
term and 'B-3' short-term corporate credit ratings, on
Continental Airlines Inc. The outlook is revised to stable from
negative. Continental has about US$17 billion of debt and
leases.
At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Fitch said
the rating outlook was stable.
FIDELITY NATIONAL: Reports Strong Fourth Quarter 2006 Results
-------------------------------------------------------------
Fidelity National Information Services, Inc., reported financial
results for the fourth quarter of 2006. Consolidated revenue
increased to US$1.1 billion, net earnings increased to
US$75.1 million and net earnings per diluted share was US$0.39.
For the full year 2006, consolidated revenue increased to
US$4.1 billion, net earnings increased to US$259.1 million and
net earnings per diluted share was US$1.37. In accordance with
Generally Accepted Accounting Principles, these results reflect
the combination between FIS and Certegy Inc. as of Feb. 1, 2006,
the effective date of the merger.
"FIS reported excellent fourth quarter results with pro forma
revenue growth of 12.5%, EBITDA growth of 11.0% and adjusted
cash earnings of US$0.58 per diluted share," stated FIS Chairman
William P. Foley, II. For the full year 2006, the company
reported pro forma revenue growth of 8.8% and adjusted pro forma
EBITDA growth of 10.6%. "We are extremely pleased with the
outstanding results we achieved in 2006, which was our first
year as a new public company. Our strong operating performance
provides an excellent foundation for the continued growth and
success of our company."
FIS' operating results are presented on a GAAP and on an
adjusted pro forma basis, which management believes provides
more meaningful comparisons between the periods presented. FIS'
pro forma results reflect a Jan. 1, 2005, effective date for the
merger between FIS and Certegy, the March 2005 recapitalization
and sale of minority interests by FIS. Additionally, the
adjusted pro forma results exclude merger and acquisition and
integration expenses.
Pro Forma Segment Information
FIS' Transaction Processing Services generated revenue of
US$694.7 million, or 16.1% over the prior-year period, driven by
55.0% growth in International, 8.9% growth in Enterprise
Solutions and 8.6% growth in Integrated Financial Solutions.
The company's new item processing operation in Brazil, new
account wins and deeper penetration of the existing customer
base contributed to the strong revenue growth. Transaction
Processing Services' EBITDA increased 16.6% over the prior-year
quarter to US$179.2 million. The EBITDA margin of 25.8% was
comparable to the fourth quarter of 2005, and 160 basis points
above the third quarter 2006 EBITDA margin.
Lender Processing Services revenue increased 7.9% to
US$437.1 million, driven by 10.6% growth in Information
Services, which continues to benefit from strong results within
the default solutions and appraisal product lines. Lender
Processing Services' EBITDA was US$138.8 million, or 0.6%, below
the prior year quarter. The EBITDA margin was 31.7% compared
with 34.4% in the prior year. The declines in EBITDA and the
EBITDA margin are primarily the result of strong growth in lower
margin product lines, lower tax processing volumes and a decline
in revenue from the company's investment property exchange
services.
Pro forma corporate expense for the fourth quarter of 2006
totaled US$23.3 million. The US$4.5 million, or 16.1%, decline
from the prior-year quarter was primarily attributable to the
consolidation of duplicate administrative functions. Pro forma
interest expense for the quarter increased US$8.2 million to
US$50.8 million, driven primarily by higher interest rates. The
effective tax rate was 37.1% for the quarter.
2007 Outlook
FIS provided its outlook for 2007 as:
-- Revenue growth of 7% to 9%, compared with pro forma
revenue of US$4.2 billion in 2006.
-- Pro forma earnings per diluted share of US$1.97 to
US$2.03, compared with US$1.52 in 2006;
-- Pro forma cash earnings per diluted share of US$2.47 to
US$2.53, compared with US$2.10 in 2006;
-- Pro forma EBITDA growth of 10% to 12%, compared with pro
forma EBITDA of US$1.1 billion in 2006;
-- Capital expenditures of approximately US$300 million;
-- Pro forma free cash flow, which the company defines as
net earnings plus depreciation and amortization less
capital expenditures, of US$530 million to US$560 million.
The company's 2007 guidance includes after-tax stock option
expense of approximately US$21.5 million, or US$0.11 per diluted
share. This compares to after-tax stock option expense of
US$31.4 million in 2006, which included US$12.1 million, or
US$0.06 per diluted share in comparable expense, and
US$19.3 million in non-recurring performance based and
accelerated stock option expense. The guidance excludes the
remaining integration costs associated with the Feb. 1, 2006,
combination of FIS and Certegy Inc., and the previously
announced first quarter 2007 non-cash charge of approximately
US$17.2 million after tax, or US$0.09 per diluted share,
incurred in conjunction with refinancing the company's credit
facilities, which was completed Jan. 18, 2007.
About Fidelity National
Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage-
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals. FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten. Nearly 50 percent of all U.S. residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil and Japan.
* * *
As reported in the Troubled Company Reporter on Jan. 24, 2007,
Fitch Ratings assigned a senior unsecured rating of 'BB+' for
Fidelity National Information Services' new US$3 billion senior
unsecured credit facilities. The facilities consist of a US$2.1
billion term loan and a US$900 million revolving credit
facility. The company used the proceeds to refinance existing
debt. Fidelity's Issuer Default Rating remains at 'BB+'. Fitch
said the rating outlook is stable.
Standard & Poor's Ratings Services raised, on March 8, 2006, the
corporate credit and senior secured ratings of Fidelity National
Information Services Inc. to 'BB+' from 'BB', and removed it
from CreditWatch where it was placed on Sept. 15, 2005.
FIDELITY NATIONAL: Declares US$0.05 Per Share Quarterly Dividend
----------------------------------------------------------------
Fidelity National Information Services, Inc., declared a regular
quarterly dividend of US$0.05 per common share. The dividend is
payable March 28, 2007, to shareholders of record as of the
close of business March 14, 2007.
About Fidelity National
Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage-
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals. FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten. Nearly 50 percent of all U.S. residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil and Japan.
* * *
As reported in the Troubled Company Reporter on Jan. 24, 2007,
Fitch Ratings assigned a senior unsecured rating of 'BB+' for
Fidelity National Information Services' new US$3 billion senior
unsecured credit facilities. The facilities consist of a US$2.1
billion term loan and a US$900 million revolving credit
facility. The company used the proceeds to refinance existing
debt. Fidelity's Issuer Default Rating remains at 'BB+'. Fitch
said the rating outlook is stable.
Standard & Poor's Ratings Services raised, on March 8, 2006, the
corporate credit and senior secured ratings of Fidelity National
Information Services Inc. to 'BB+' from 'BB', and removed it
from CreditWatch where it was placed on Sept. 15, 2005.
JAPAN AIRLINES: Debt Default Risk Falls on Future Profitability
---------------------------------------------------------------
Derivatives contracts show that Japan Airlines Corp.'s debt
default risk had the biggest drop in more than a year on
speculation that JAL will avoid a cash shortage and become
profitable, Bloomberg News says.
"The restructuring and the financing is positive for the company
and that's why the credit default swaps have dropped," Bloomberg
quotes Jun Ishida, a fund manager in Tokyo at Societe Generale
Asset Management, which oversees about US$365 billion in assets.
According to the report, credit-default swaps, which protect
investors from Japan Airlines defaulting, had the biggest drop
since December 2005. Bloomberg says that prices from Credit
Suisse Group show that contracts based on JPY1 billion of the
company's debt fell to JPY19.8 million from JPY24 million on
Feb. 2, 2007.
Bloomberg explains that the five-year contracts, used to
speculate on changes in Japan Airlines' ability to repay its
JPY280 billion of bonds, fell to a 14-month low as perceptions
of creditworthiness improve.
The report cites Shinsei Securities Co. senior analyst Yasuhiro
Matsumoto as saying that there are "some signs that the
company's earnings will improve, and its credit could become
better, even without the restructuring plans announced this
week."
The difference in yield, or spread, between the carrier's bonds
and the yen swap rate narrowed, Bloomberg says.
According to the most recent prices from the Japan Securities
Dealers Association, JAL's JPY10 billion of 2.94% bonds maturing
in December 2013 yielded 2.81 percentage points more than the
yen swap rate on Feb. 8, the report notes. The spread was 3.32
percentage points in January.
Bloomberg adds that JAL needs to free up cash for a possible
redemption next month of its zero-coupon 2011 convertible bonds,
which combine the characteristics of debt and equity.
Each JPY1 million of the securities, Bloomberg says, may be
exchanged for JPY642,000 of JAL stock based on Friday's price of
JPY256 a share. Investors who redeem the bonds receive the full
face amount.
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 Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP 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.
JAPAN AIRLINES: Executives Take Part in Cost-Cutting Efforts
------------------------------------------------------------
Japan Airlines Corp. will scrap the president's room and the
board members' private rooms in its Tokyo headquarters to make
them work together in a larger office as part of management
reform efforts, The Japan Times says, citing company officials.
According to the report, nine JAL board members, including the
chairman, and executives in charge of marketing and corporate
planning, will have to work together in one larger room.
In addition, JAL officials terminated the exclusive use of
company cars by its three top executives -- President Haruka
Nishimatsu, Chairman Toshiyuki Shinmachi and Senior Managing
Director Kiyoshi Kishida, The Times relates.
The Times points out that Mr. Nishimatsu proposed both plans to
speed up decision-making and to set an example for employees as
the airline prepares for restructuring.
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 Feb. 9,
2007, that Standard & Poor's Ratings Services affirmed its 'B+'
long-term corporate credit and issue ratings on Japan Airlines
Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-
term corporate credit rating is negative.
The TCR-AP 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.
SOFTBANK CORP: Net Profit Slips 66% to JPY7.4 Bil. in 2006 3Q
-------------------------------------------------------------
Softbank Corp.'s operating profits for the April-December 2006
period rose sevenfold to JPY197 billion from the figure reported
in the same period in 2005 following a cut in basic monthly fees
and the introduction of more attractive handsets to lure
subscribers from rivals in the wireless market, The Japan Times
reports.
According to Bloomberg News, Softbank's operating profit in the
third quarter ended Dec. 31, 2006, more than tripled to
JPY84.7 billion (US$699 million) from JPY23.5 billion a year
earlier after it cut commissions and added revenue from the
Vodafone Group Plc Japan unit.
Agence France Press says that Softbank Corp. posted a net profit
of JPY21.93 billion (US$182 million dollars) for the 2006 nine-
month period, up from the JPY17.82 billion in the same period in
2005.
Net profit slipped 66% to JPY7.4 billion in the 2006 third
quarter because of higher taxes and declines in extraordinary
income, AFX News Limited says. The company's revenue more than
doubled to JPY702.1 billion in the 2006 third quarter from
JPY287.5 billion in the same period the previous fiscal year.
The AFP report says that Softbank has been luring customers away
from industry leader NTT DoCoMo after the "number portability
system" allowed subscribers to switch mobile telephone operators
while retaining their phone numbers.
However, the company suffered technical problems in its system,
and Softbank was criticized because its aggressive advertising
campaign was misleading, the report adds.
The Times points out that analysts were more optimistic about
Softbank's prospects.
"As the company's monthly subscriber data show, this trend
(Softbank's popularity) continues. There is also a possibility
that rivals will cut prices after Softbank's new price plan
takes effect in March," The Times quotes Credit Suisse analyst
Hitoshi Hayakawa before Softbank's third-quarter results were
announced.
Softbank did not provide forecasts for the year to March 2007,
AFP says.
About Softbank Corporation
Based in Tokyo, Japan, Softbank Corporation --
http://www.softbank.co.jp/-- is a leading Japanese
telecommunications and media corporation, with operations in
broadband, fixed-line telecommunications, e-Commerce, Internet,
broadmedia, technology services, finance, media and marketing,
and other businesses. SoftBank was established on September 3,
1981, and had a market capitalization of approximately
US$32.8 billion at February 28, 2006.
SoftBank's corporate profile includes various other companies
such as Japanese broadband company Cable & Wireless IDC, cable
company BB-Serve, and gaming company GungHo Online
Entertainment. On March 17, 2006, SoftBank announced its
agreement to buy Vodafone Japan, giving it a stake in Japan's
US$78 billion mobile market.
* * *
According to the Troubled Company Reporter - Asia Pacific on
April 18, 2006, Standard & Poor's Rating Services agency
affirmed its 'BB-' long-term corporate credit rating on the
company, with negative implications.
Moody's Investors Service had, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2 from Ba3, concluding a review initiated on March 17,
2006, when the company announced that it would acquire a 97.7%
stake in mobile phone giant Vodafone Group's Japanese unit,
Vodafone K. K.
TIMKEN CO: Declares US$0.16 Per Share Quarterly Dividend
--------------------------------------------------------
The Timken Co.'s board of directors declared a quarterly cash
dividend of 16 cents per share. The dividend is payable on
March 2, 2007, to shareholders of record as of Feb. 16, 2007.
It will be the 339th consecutive dividend paid on the common
stock of the company.
About Timken Co.
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The company has
operations in Japan, Argentina, Australia, Belgium, Brazil,
Canada, China, Czech Republic, England, France, Germany,
Hungary, India, Italy, Japan, Korea, Mexico, Netherlands,
Poland, Romania, Russia, Singapore, South America, Spain,
Taiwan, Turkey, United States, and Venezuela and employs 27,000
employees.
* * *
The Troubled Company Reporter - Asia Pacific reported on Nov. 2,
2006, that Moody's Investors Service confirmed The Timken
Company's Ba1 Corporate Family Rating and the Ba1 rating on the
company's US$300 Million Unsecured Medium Term Notes Series A
due 2028 in connection with the rating agency's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology.
US AIRWAYS: America West Pilots Demand Fair, Single Contract
------------------------------------------------------------
Nearly two years after the new US Airways was created by the
announced merger of America West Airlines and US Airways, the
pilots of America West and US Airways have had enough of
management's lack of commitment to negotiating a fair, single
contract and are demonstrating their frustration by picketing in
front of their corporate headquarters.
There are still major gaps between the corporate promises made
to employees and the reality of how management behaves at the
negotiating table. US Airways is posting record quarterly and
full-year profits, yet management is determined to force
bankruptcy-era concessions onto the pilots. Such an agreement
is not acceptable to either pilot group, both of which are
represented by the Air Line Pilots Association or ALPA,
International.
A single contract would be a significant step toward completing
the America West-US Airways merger and combining the two
airlines, making it easier for passengers traveling on US
Airways. Management at US Airways instead chose to focus its
energy on pursuing yet another merger (that has since been
rescinded), causing the pilots to seriously question their
ability to effectively run two operations, let alone three.
"There's no doubt that the quality of operations has
deteriorated due to management's lack of focus in combining the
two airlines," said Captain John McIlvenna, chairman of the
America West Master Executive Council. "The sacrifices of
labor, specifically the pilots of America West and US Airways,
have enabled the new airline to succeed and post a considerable
profit for 2006. Management has rewarded themselves with
raises, bonuses and stock options and pursued a billion-dollar
deal at the expense of the company, its employees, and our
passengers."
"The US Airways and America West pilots have committed billions
through massive concessions that were used to fund the recovery
and renaissance of our airline. Yet, we continue to be paid
wages that are at the bottom our industry while we participate
in fruitless negotiations," said Captain Jack Stephan, chairman
of the US Airways Master Executive Council. "It is unfortunate
that our passengers are also forced to deal with management's
whitewashing of the promise of a single carrier, and must endure
the travel frustrations created from operating two airlines
under one banner."
Joint negotiations with US Airways management for a single, fair
pilot contract have been ongoing for more than one year. Both
pilot groups remain focused on the issue of achieving a fair
single contract, one that is commensurate with US Airways'
position in the marketplace.
About US Airways
Headquartered in Arlington, Virginia, US Airways' primary
business activity is the ownership of the common stock of US
Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines,
Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways
Leasing and Sales, Inc., Material Services Company, Inc., and
Airways Assurance Limited, LLC.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.
The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005. The Debtors completed their
merger with America West on the same date.
US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.
* * *
As reported in the Troubled Company Reporter on Jan. 11, 2007,
Standard & Poor's Ratings Services stated that its ratings on US
Airways Group, including the 'B-' corporate credit ratings on US
Airways Group and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
remain on CreditWatch with developing implications, where they
were initially placed on Nov. 15, 2006.
=========
K O R E A
=========
HANAROTELECOM: Earns KRW7.9 Billion from 060 Service
----------------------------------------------------
Korean telecommunications company hanarotelecom Inc. has emerged
as the largest network provider for spam-generating 060
telephone-based information services last year, The Korea Herald
cites a recent data collected by the telecom industry.
According to the report, the 060 information service networks
are currently provided by four major telecom firms:
1) KT,
2) hanarotelecom,
3) LG Dacom, and
4) Onse Telecom
Borrowing the networks and paying commission to telecom
companies, 060 service providers offer a wide range of
information from stock market news to horoscopes and legal
advice with telephone numbers starting with 060, Korea Herald
explains.
Out of the total revenue from consumers paying for the 060
service, 10% goes to the intelligent network providers like
hanarotelecom, and the rest goes to mostly small and invisible
060 service providers, the paper says.
According to hanarotelecom, it earned KRW7.9 billion worth of
commissions for providing its networks for 060 services in 2006,
Korea Herald relates, noting that the commission accounted for
about 4.6% of the company's total sales as of December 2006.
About hanarotelecom
hanarotelecom Inc. -- http://www.hanaro.com/-- is the second
largest player in the Korean local telephone market. It
provides high-speed Internet services in Korea. It provides
high-speed Internet services in Korea. In June 2001, the
company integrated broadband Internet access services which
included ADSL, Hybrid Fiber Coaxial cables and Broadband
Wireless Local Loop into a single brand called
HanaFOS.hanarotelecom offers VoIP services to its broadband
business customers as a bundled service and also as a stand
alone service.
* * *
Moody's Investor Service has given hanarotelecom's long-term
corporate family and senior unsecured debt 'Ba2' ratings.
Standard and Poor's gave both hanarotelecom's long-term foreign
issuer credit and long-term local foreign issuer credit 'BB'
ratings.
KOREA EXCHANGE BANK: FSC & BAI Disagree on Lone Star's Status
-------------------------------------------------------------
The Financial Supervisory Commission and the Board of Audit and
Inspection are reportedly at odds over whether to deprive Lone
Star Funds of its status as the major shareholder in Korea
Exchange Bank, The Chosun Ilbo reports.
The report recounts that Lone Star took over KEB in 2003 but has
been under investigation by Korean authorities for allegations
of irregularities in the process of taking over the bank at a
knockdown price.
The Troubled Company Reporter - Asia Pacific reported on
Dec. 8, 2006, that the prosecutors declared the KEB sale to the
investment fund as illegal. The probe in the sale led them to
conclude that the deal was conducted "abnormally without
following regulations and due procedure, and the sale price did
not reach the adequate level."
The BAI reportedly asked the FSC to consider stripping the
offshore fund of its major shareholder status. However, the FSC
insists it will make a decision on the issue only after the
Court's final decision, Chosun Ilbo relates.
An FSC official contended that his agency had never been asked
to deprive Lone Star of major shareholder status, adding that
the BAI merely "sought opinions" on handling the Lone Star
issue, the paper relates.
A BAI official, however, did not confirm whether the request was
made or not, Chosun Ilbo says, noting that the BAI will release
a final report on the issue late this month.
Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank. KEB Futures -- http://www.kebf.com/english/-- is
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.
* * *
Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.
Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.
KOREA EXCHANGE BANK: Pres. Says Lone Star to Decide Sale of Bank
----------------------------------------------------------------
On Feb. 7, 2007, Korea Exchange Bank President Richard Wacker
disclosed that it is time to sell the bank to another lender or
strategic investors, the Chosun Ilbo reports.
Mr. Wacker, however, noted that it will be major shareholder
Lone Star who will decide if the environment has matured enough
to push the sale, the report relates.
According to Mr. Wacker, Lone Star's decision last year to sell
the bank to a strategic investor has not changed.
Chosun Ilbo recounts that during an investigation by Korean
authorities over irregularities in its takeover of KEB, Lone
Star withdrew from a deal to sell its stake to Korea's largest
lender, Kookmin Bank.
The paper relates that Mr. Wacker dismissed rumors that Lone
Star has contacted Industrial and Commercial Bank of China and
Deutsche Bank with an eye to sell its holding, adding that Lone
Star had also rejected the market talk.
Chosun relates that when Mr. Wacker was asked if Kookmin Bank
would be the preferred bidder when Lone Star puts KEB on sale
again, he did not give a definite answer, but noted that he knew
of no such agreement.
Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm--
established in 1967, is one of seven national banks in South
Korea with over 300 domestic branches and 28 overseas networks
constituting the most extensive global banking network of any
Korean bank. KEB Futures -- http://www.kebf.com/english/-- is
a clearing member of KOFEX and is a subsidiary of Korea Exchange
Bank, the official F/X settlement bank for Korean Futures
Exchange.
* * *
Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating
effective on June 17, 2005.
Moody's Investors Service gave KEB a 'D' Bank Financial Strength
Rating effective on May 9, 2006.
* Grace Period to Correct Accounting Fraud Ends in March
--------------------------------------------------------
Some 200 listed companies, an eighth of the total companies on
both of Korea's bourses, have confessed to accounting fraud over
the last two years, The Chosun Ilbo reports.
Financial Supervisory Commission Chairman Yoon Jeung-hyun
released the number of guilty companies during an invited
lecture to the Korea Listed Companies Association, Chosun Ilbo
relates.
The paper recounts that the FSC and the Justice Ministry granted
a two-year grace period during which businesses that confess to
wrongful accounting are exempted from criminal punishment and
subjected to less strict penalties.
The grace period expires in March, Chosun Ilbo notes.
After the grace period ends, companies which will be found to
have engaged in fraudulent accounting will be inspected by the
FSC, a move that would damage their reputations and cause their
stock prices to plummet, Chosun Ilbo says, adding that investors
will be allowed to file class action suits against them, which
can incur massive damage penalties.
A new regulation, which went into effect this year entitles
minority shareholders to file class action suits when businesses
are found out to have engaged in accounting fraud, misled
investors with false information, or manipulated stock prices,
Chosun Ilbo recounts.
"Given that some 1.5% of U.S. listed companies faced class
action suits last year, it is possible that about 20 Korean
listed companies could be subjected to them annually," Chosun
Ilbo cites the FSC chairman, as saying.
* Government Plans Corporate Tax Cuts for Global Competitiveness
----------------------------------------------------------------
In a press briefing on Feb. 7, 2007, Huh Yong-seok, the head of
the Taxation Office at the Ministry of Finance and Economy,
disclosed that the government plans to continue reducing
corporate taxes to keep up with a global trend and to help
Korean businesses strengthen their competitiveness in the global
market, The Chosun Ilbo reports.
However, Huh Yong-seok noted "it won't be possible to reduce
taxes soon since it has been just two years since the government
reduced them in 2005. But we will remain open to another
possible cut considering the country's competitiveness with
neighboring Asian nations."
The report recounts that in late December 2006, the government
had no intention to adjust the current corporate tax rates
because they were already lower than other nations. But that
position seems to have changed since rivals like Singapore and
Hong Kong began slashing taxes, Chosun Ilbo says.
Singapore recently announced a plan to cut its corporate tax
rate by one percentage point from the current 20% while Hong
Kong was considering cutting its corporate tax rate by as much
as five percentage points, Chosun Ilbo notes.
===============
M A L A Y S I A
===============
SUREMAX GROUP: Annual General Meeting Set for February 28
---------------------------------------------------------
Suremax Group Bhd will hold its 12th Annual General Meeting at
9:00 a.m. on Feb. 28, 2007, at Dewan Seroja, Kelab Golf
Perkhidmatan Awam Malaysia, Bukit Kiara, Off Jalan Damansara, in
Kuala Lumpur.
The agenda of the meeting will be:
1. to receive the Audited Financial Statements for the
financial year ended August 31, 2006, together with the
reports of the directors and the auditors;
2. to reelect Director Encik Ahmad Zaidi Bin Zainal, who
will retire in accordance with Article 82 of the
Company's Articles of Association, and being eligible,
have offered himself for reelection;
3. to reelect the following directors who will retire in
accordance with Article 74 of the Company's Articles of
Association, and being eligible, have offered themselves
for reelection:
(a) Encik Redzelan Bin Mohamad
(b) Encik Zulkifli Bin Haji Mohama
4. to re-appoint Atarek Kamil Ibrahim & Co as auditors of
the company until the conclusion of the next Annual
General Meeting and to authorize the directors to fix
the auditors' remuneration.
Meanwhile, as a special business, the company will also consider
if thought fit, with or without any modification, to pass this
ordinary resolution:
"Subject to Section 132D of the Companies Act, 1965 and the
approvals of the relevant authorities, the Directors are
empowered to issue shares in the Company, at any time
provided that the aggregate number of shares issued does not
exceed 10% of the current issued and paid-up share capital of
the company. The Directors are also empowered to obtain the
approval for the listing of and quotation for the additional
shares issued on Bursa Malaysia Securities Berhad. In
addition, if approved, this authority will commence
immediately and continue to be in force until the conclusion
of the next Annual General Meeting of the Company."
* * *
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's
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, and is therefore
required to implement a plan to regularize its financial
condition.
SUREMAX GROUP: Al-Hidayah Inks Deal to Help Bag US$60M Project
--------------------------------------------------------------
Suremax Group Bhd entered into an agreement with Al-Hidayah
Investment Bank (Labuan) Ltd for the bank to extend financial
and advisory services for the company to secure a construction
project with the Jakarta Local Government.
The company told the Bursa Malaysia Securities Bhd that the
local government of Jakarta, through its wholly owned company,
PD Pembangunan Sarana Jaya, intends to build a commercial
development project comprising of shopping kiosk, SOHO and
condominium at Tanah Abang, Jakarta at an estimated construction
cost of US$60 million.
* * *
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's
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, and is therefore
required to implement a plan to regularize its financial
condition.
SUREMAX GROUP: Court Orders Payment of MYR120,511-Plus to WJC
-------------------------------------------------------------
The Kuala Lumpur Sessions Court issued an order requiring
Suremax Group Bhd and its subsidiary, Suremax Marketing Sdn Bhd,
to pay the amount owed to William Jacks & Co Sdn Bhd on
April 24, 2006.
Both Suremax and its unit were issued a judgment in default of
appearance by being absent during the court's ruling.
Based on the Kuala Lumpur Sessions Court's ruling, Suremax and
its unit will pay WJC these amounts:
(a) the sum of MYR120,511.62;
(b) interest at the rate of 1.5% per month on the sum of
MYR120,511.62 from December 26, 2004, until the date of
judgement;
(c) interest at the rate of 8% per annum on the sum of
MYR120,511.62 from the date of judgment until the date
of full settlement; and
(d) cost of action amounting to MYR1,724.00.
Suremax has instructed its solicitors to file an appeal on the
judgment.
Meanwhile, Suremax told the Bursa Malaysia Securities Bhd that
there is no material financial impact on the group arising from
the judgment.
* * *
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's
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, and is therefore
required to implement a plan to regularize its financial
condition.
SYARIKAT KAYU: Fails to Submit Plan; Bursa to Suspend Securities
----------------------------------------------------------------
Syarikat Kayu Wangi Bhd failed to submit its regularization plan
with the Securities Commission and other relevant authorities on
Feb. 7, 2007.
The company, therefore, asked the Bursa Malaysia Securities Bhd
to further extend its plan filing deadline to March 7.
However, the bourse immediately rejected the company's extension
request and decided to commence suspension and delisting
procedures against the company's securities at 9:00 a.m. on
Feb. 16.
As reported by the Troubled Company Reporter - Asia Pacific on
Jan. 29, 2007, Syarikat was originally required to submit its
plan with the relevant securities on Jan. 7. The company asked
for a time extension to Feb. 7, which was recognized by the
bourse.
The company, as an affected listed issuer under the Amended PN17
category of the Bursa Malaysia Securities Bhd's official list,
is required to submit a plan to regularize its financial
condition and disclose details of the plan and its
implementation.
* * *
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 of the
Amended PN17/2005 on May 8, 2006, since its latest 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 the
Regularization Plan. Once completed, the Requisite Announcement
outlining the Regularization Plan will be made to Bursa
Securities.
SYARIKAT KAYU: Inks MOU for Sale and Lease Deal with Amanah Raya
----------------------------------------------------------------
Syarikat Kakyu Wangi Bhd, on Feb. 7, 2007, entered into a
Memorandum of Agreement with Amanah Raya Bhd to enter into a
sale, leaseback and buyback arrangement.
According to the agreement, Syarikat Kayu and its subsidiaries
agree to sell these various properties to Amanah Raya for a
total sale price of MYR22 million:
a) all pieces of land held under Syarikat Kayu at the
sale price of MYR11,500,000;
b) all pieces of land held under Syarikat Subari Sdn. Bhd at
the sale price of MYR6,000,000; and
c) all pieces of land held under Syarikat Kayu Yew Chai Sdn
Bhd at the sale price of MYR4,500,000.
The sale agreement is conditional on the approval of Amanah
Raya's board of directors.
Meanwhile, part of the deal states that upon the completion
transfer of the Syarikat Kayu's property, the company will lease
the property from Amanah Raya for a 10-year period at the net
rental to be calculated on the sale price.
In addition, Syarikat Kayu has the option to buyback the
property until within six months prior to the expiry of 10th
year lease.
* * *
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 of the
Amended PN17/2005 on May 8, 2006, since its latest 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 the
Regularization Plan. Once completed, the Requisite Announcement
outlining the Regularization Plan will be made to Bursa
Securities.
TAP RESOURCES: Unveils Proposals on Regularization Plan
-------------------------------------------------------
Tap Resources Bhd disclosed with the Bursa Malaysia Securities
Bhd the various proposals it plans to undertake in order to
regularize its financial and operational position.
The company's regularization plan involves:
* liquidation or disposal of certain subsidiaries;
* debt settlement with various creditors of Tap
Construction;
* TCSB's capital reduction of the issued and paid-up share
capital;
* capital reduction involving reduction of the existing
issued and paid-up share capital;
* renounceable rights issue;
* private placement of new TAP shares;
* restructuring of debts of RCLS holders; and
* amendment to the Memorandum and Articles of Association.
Based on Tap Resources' proposals, certain subsidiaries are
facing liquidation as these subsidiaries have either ceased or
wound down their respective businesses.
The subsidiaries to face liquidations are:
-- Tap Builders Sdn Bhd;
-- Tanco Properties (North) Sdn Bhd;
-- Mech-E Engineering & Trading Sdn Bhd; and
-- Sumbangan Tiara Sdn Bhd
These subsidiaries have a negative or minimal shareholders'
funds position and therefore will not have any material surplus
arising from such liquidation, the company said.
Meanwhile, Tap Resources also proposed to settle the debts of
Tap Construction Sdn Bhd, a wholly owned subsidiary, through
TCSB S176 Scheme.
According to the company, Tap Construction's total known debts
as of Oct. 31, 2006, stood at MYR126,567,556. Of the total
debt, MYR117,978,197 is owed by Tap Construction to Tap
Resources while another MYR3,106,976 is owed by Tap Construction
to the Inland Revenue Board.
Under the proposed TCSB S176 Scheme, the amount owed to the IRB
is proposed to be paid in full in cash -- subject to the outcome
of an appeal being made by TCSB against IRB -- while all other
debts will be converted into equity where every MYR1 of debt
will be settled in full by the issuance of new ordinary shares
of M1.00 each.
In addition, TCSB will reduce its issued and paid up share
capital and the credit arising from the reduction will be used
to offset its accumulated losses as at October 31, 2006.
Accordingly, the board of Tap Resources will undertake a write-
off of certain fixed assets of its unit by 60% of its existing
net book value. The write-offs, based on the estimated
valuation of assets, will result in an impairment from
MYR51,414,140 to MYR20,565,656.
Moreover, Tap Resources also proposes to implement a capital
reduction exercise involving a reduction of the existing issued
and paid-up share capital from MYR109,155,805 comprising
109,155,805 ordinary shares to MYR10,915,580 comprising
109,155,805 ordinary shares, by way of reducing the par value of
each share to RM0.10.
The credit of MYR98,240,225 arising from the capital reduction
will be utilized to reduce part of the accumulated losses of the
company, which stood at MYR161,385,037 as of April 31, 2006.
Tap Resources also proposes to reduce the entire amount of
MYR21,142,802 standing in its share premium account based on the
latest audited financial statements as at April 30, 2006, to set
off the its accumulated losses.
Meanwhile, Tap Resources' proposed rights issue involves the
renounceable rights issue of 54,577,902 Right Share on the basis
of one Rights Share for every two TAP Shares held after the
Proposed Capital Reduction, together with one free warrant for
every Rights Share subscribed.
Tap Resources will also undertake private placement involving
the issuance of up to 50,000,000 new TAP Shares at an issue
price to be determined later.
Lastly, Tap Resources proposes to restructure its MYR33,088,053
debts owing on the redemption of its outstanding RCSLS together
with outstanding interests through:
a. Conversion of MYR6,000,000 outstanding on the nominal
value of RCSLS held by ABB into a three-year term loan and
on terms to be agreed between the Company and the lender;
b. Settlement of MYR27,088,053 outstanding on the nominal
value of RCSLS via the issuance of 270,880,530 new TAP
Shares of MYR0.10 at par; and
c. The balance of the debt, together with all interest,
penalties and other charges accruing after the Cut-off
Date will be completely waived.
The company added that in the event that the Proposed Debt
Restructuring results in any of the Lenders obtaining more than
33% of the voting shares in TAP, a waiver will be sought for
such Lender from the requirement to undertake a mandatory
general offer in accordance with the provisions of the Malaysian
Code on Take-overs and Mergers, 1998.
* * *
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.
TENCO BHD: Inks Deal With Vendors to Vary Acquisition Proposals
---------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
Dec. 18, 2006, that Tenco Bhd filed additional proposals under
its regularization plan.
Part of the additional proposals were the 100% acquisition of
Tenco in MB Travel for a purchase consideration of
MYR11.80 million to be satisfied by the issuance of 11,800,000
new Tenco shares and 100.00% equity interest in MB Online for a
cash consideration of MYR1.00, the TCR-AP said.
In an update, Tenco Bhd and the vendors of MB Travel and MB
Online have signed a supplemental agreement to vary certain
terms of the proposed acquisitions.
MB Travel:
Tenco and the vendors of MB Travel have agreed to extend the
date to May 27, 2007, for the company to furnish a copy of its
draft reports on the due diligence investigation into MB Travel.
Tenco and the vendors have also agreed to extend the date for
fulfilling one of the condition precedent in relation to the
execution of the stakeholder agreement to May 27, 2007.
MB Online:
Tenco and the vendors of MB Online have agreed to extend the
date to May 27, 2007, for Tenco to furnish a copy of its draft
reports on the due diligence investigation into MB Online.
* * *
Headquartered in Selangor, Malaysia, Tenco Berhad's principal
activities are manufacturing and selling of polymer, chemicals,
adhesive, decorative coatings and related products, building
materials, equipment and consumer products. Other activities
include investment holding and provision of management services.
The Group operates in Malaysia, Singapore and Canada.
Tenco is classified as a Practice Note 17 company because its
current shareholders' equity on a consolidated basis is less
than 25% of its issued and paid up capital, and it defaulted on
various loan facilities and is unable to provide a solvency
declaration. Tenco is therefore required to submit and
implement a plan to regularize its financial condition.
Total assets as of September 30, 2006, amounted to
MYR60.44 million while total liabilities reached
MYR58.55 million. Shareholders' equity in the company totaled
MYR1.89 million.
TENGGARA OIL: Ten Units Under Creditors' Voluntary Liquidation
--------------------------------------------------------------
Ten of Tenggara Oil Bhd's wholly owned subsidiary were placed
under creditors' voluntary liquidation pursuant to the Special
Resolution passed by these subsidiaries' member on Feb. 6, 2007.
The subsidiaries under creditors' voluntary liquidation are:
1. Tenggara Oceanic Sdn Bhd -- ceased operations and had since
remained dormant.
2. Tenggara Plaza Sdn Bhd
3. Gerunas Sdn Bhd -- has been inactive since incorporation.
4. Sumbangan Sumber Sdn Bhd -- ceased operations and had since
remained dormant.
5. Tenggaraform (M) Sdn Bhd -- ceased operations and had since
remained dormant.
6. Fajar Sepakat Sdn Bhd -- ceased operations and had since
remained dormant.
7. Pangkal Damai Sdn Bhd -- ceased operations and had since
remained dormant.
8. Tipcom Sdn Bhd -- ceased operations and had since remained
dormant.
9. TOB Exploration Sdn Bhd -- has not commenced operations
since incorporation.
10. Tenggara Advantage Sdn Bhd -- ceased operations and had
since remained dormant.
The liquidation of the subsidiaries will reduce Tenggara Oil
shareholders' fund by approximately MYR18.745 million, the
company said. Tenggara also clarified that the creditors'
voluntary winding-up of the subsidiaries will not have any
material effect on its shareholding structure.
The creditors' voluntary winding-up of the TOB Subsidiaries
forms part of the Company's restructuring exercise to regularize
its financial condition.
* * *
Tenggara Oil Berhad is undertaking a divestment and
restructuring exercise, which will reposition it as a service-
oriented and trading group from its current resource-based
businesses. Current businesses include investment holding,
supply of ready mixed concrete, property holding, management and
construction. As part of a corporate revamp exercise, the
Company has repositioned itself in the oil and gas business,
which will be its core business.
The Company is headquartered in Kuala Lumpur, Malaysia.
Tenggara is in the process of formulating a debt-restructuring
scheme with relevant parties.
The company's consolidated balance sheet as of Oct. 31, 2006,
showed total assets of MYR52.48 million and total liabilities of
the same amount, resulting to no shareholders' equity.
=====================
N E W Z E A L A N D
=====================
BLIS TECHNOLOGIES: Better Sales and Cost Cuts Pare Down Losses
--------------------------------------------------------------
BLIS Technologies Limited Chairman PF Fennessy said in a press
release that the company has an operating deficit of
NZ$0.391 million for the six months ending Sept. 30, 2006,
before tax, compared to NZ$0.615 million in the corresponding
period last year.
The shareholder funds currently stand at NZ$0.536 million, with
no tax is payable and no dividend anticipated. Shareholder
funds in the corresponding period last year were
NZ$1.220 million.
Mr. Fennessy said that the reduced loss is in line with budget
and primarily is due to lower costs and increased sales,
particularly in the international sector. The company
experienced a 20% growth in revenue as both New Zealand sales
and sales abroad grew in the period.
Mr. Fennessy, however, lamented that the New Zealand sales
growth was not enough, explaining that the "slower than
anticipated growth in New Zealand sales means a delay in
achieving positive cash flow and the need to seek additional
funding for working capital." Positive cash flow was one of the
conditions laid out by the company directors to ensure the
company's ability to continue as a going concern.
BLIS Technologies is in discussion with interested parties
regarding a significant investment in the company.
The company's disclosure to the New Zealand Exchange Ltd.
include the following financial data (in NZ$, 000):
Half-year Ending
September 30,
2006 2005 Change
------ ------ ------
Operating Revenue
Trading Revenue 312 258 20.9%
Other Revenue 82 71 15.5%
Total Operating Revenue 394 329 19.8%
Operating Deficit
Before Taxation 391 615 (36.4%)
* * *
Headquartered in Dunedin, New Zealand, BLIS Technologies Limited
-- http://www.blis.co.nz/-- is engaged in developing healthcare
products based on strains of bacteria that produce bacteriocin-
like inhibitory substances. BLIS substances act as natural
antibiotics and control the growth of bacterial infections.
Fundamental Uncertainty
Deloitte -- the company's auditors -- raised an uncertainty on
the company's ability to continue as a going concern.
BLIS Technologies Limited recorded a net deficit of NZ$1,107,851
for the year ended March 31, 2006 (2005: 1,336,319) and has cash
and short-term deposits of NZ$201,850 on hand at March 31, 2006.
The company has raised additional capital of NZ$200,000 by way
of a private placement of 2 million ordinary shares at NZ$0.10
per share. The company has prepared a business plan and budget,
which indicate that available cash reserves combined with cash
generated as a result of the private placement, are sufficient
for a period of at least 12 months from the date these financial
statements were approved by the Board of Directors.
While the directors are confident in the Company's ability to
continue as a going concern, there is significant uncertainty as
to whether the company will be able to achieve a positive
operating cash flow position within the timeframe set out in the
Board of Directors' plans prior to utilization of available cash
resources, and continue as a going concern and therefore,
whether they will be able to pay their debts as and when they
become due and payable.
In addition, the company may have to provide further liabilities
that might arise, and to reclassify non current assets and
liabilities as current assets and liabilities.
BLIS TECHNOLOGIES: Key Shareholder Ups Stake By 4 Mil. Shares
-------------------------------------------------------------
BLIS Technologies Limited has reached an agreement with an
existing strategic shareholder to make a further investment in
the company, the company said in a disclosure to the New Zealand
Exchange Ltd.
The shareholder has agreed to subscribe to an additional
4,000,000 ordinary shares in the company at an issue price of
7.5 cents (NZ$) per ordinary share. The shareholder has
indicated a wish to maintain its proportionate holding in the
company in the event of further non-pro rata share issues by the
company. The agreement reflects this, subject to ongoing
compliance with the NZSX Listing Rules and all other legal
requirements.
The company is continuing to assess various other funding
options to allow it to continue to fully pursue its business
objectives, especially in international markets.
The issue is expected to be completed within the next few
business days and a further market announcement will be made
following completion.
* * *
Headquartered in Dunedin, New Zealand, BLIS Technologies Limited
-- http://www.blis.co.nz/-- is engaged in developing healthcare
products based on strains of bacteria that produce bacteriocin-
like inhibitory substances. BLIS substances act as natural
antibiotics and control the growth of bacterial infections.
Fundamental Uncertainty
Deloitte -- the company's auditors -- raised an uncertainty on
the company's ability to continue as a going concern.
BLIS Technologies Limited recorded a net deficit of NZ$1,107,851
for the year ended March 31, 2006 (2005: 1,336,319) and has cash
and short-term deposits of NZ$201,850 on hand at March 31, 2006.
The company has raised additional capital of NZ$200,000 by way
of a private placement of 2 million ordinary shares at NZ$0.10
per share. The company has prepared a business plan and budget,
which indicate that available cash reserves combined with cash
generated as a result of the private placement, are sufficient
for a period of at least 12 months from the date these financial
statements were approved by the Board of Directors.
While the directors are confident in the Company's ability to
continue as a going concern, there is significant uncertainty as
to whether the company will be able to achieve a positive
operating cash flow position within the timeframe set out in the
Board of Directors' plans prior to utilization of available cash
resources, and continue as a going concern and therefore,
whether they will be able to pay their debts as and when they
become due and payable.
In addition, the company may have to provide further liabilities
that might arise, and to reclassify non current assets and
liabilities as current assets and liabilities.
BOTRY-ZEN LTD: Posts Interim Net Loss of NZ$700,176
---------------------------------------------------
Botry-Zen Limited has reported an operating deficit for the six
months ending September 30, 2006, of NZ$700,176, which figure
compares favorably with the period's NZ$785,006 deficit
forecast, the Botry-Zen Chair Max Shepherd said in the company's
half-year report.
For the similar period in 2005, the net deficit position was
NZ$780,610. That outcome was against a budgeted deficit of
NZ$718,288. Overall, company policy of carefully managing
operating expenditure within a realistic range has been closely
maintained.
Headquartered in Dunedin, New Zealand, Botry-Zen Limited --
http://www.botryzen.co.nz/-- is engaged in the research,
development and commercialization of biological control agents
for use in the agriculture and horticulture industry. The
company operates in New Zealand, and is engaged in the
production and marketing for sale of the BOTRY-Zen product.
BOTRY-Zen is a live spore preparation of a non-pathogenic
saprophytic fungus.
The company recorded a net deficit NZ$1,579,020 and NZ$757,746
for the years ended March 31, 2006, and 2005, respectively.
BOTRY-ZEN LTD: Lays Out Plans for New Plant
-------------------------------------------
Botry-Zen Ltd. plans a new manufacturing plant for its grape
fungus treatment and to get registration for its products in
Europe ahead of schedule, Stuff.Co.Nz reports.
Stuff.co.nz says that the new plant, on a different site from
the existing Dunedin waterfront plant, will increase production
of Botry-Zen's organic-based products in time to sell into
Europe and North America once regulatory approvals are received.
"We are talking potentially of going 12 and 20 times
(production) what we are doing with the current facility,"
Botry-Zen Chief Executive John Scandrett told Stuff.Co.Nz.
"We're well advanced with the planning of one stage of the
development, and we have further work to do on what we would
call the longer- term phase," he added.
The report explains that the Botry-Zen board was looking to
generate a wider funding base to help pay for the new factory -
which could be built on a Taieri industrial estate. The build
would "link in" with European and United States market
registration in 2008.
The new plant complements the NZ$4.2 million factory upgrade on
the Dunedin plant, where the company manufactures its lead
biological product.
Headquartered in Dunedin, New Zealand, Botry-Zen Limited --
http://www.botryzen.co.nz/-- is engaged in the research,
development and commercialization of biological control agents
for use in the agriculture and horticulture industry. The
company operates in New Zealand, and is engaged in the
production and marketing for sale of the BOTRY-Zen product.
BOTRY-Zen is a live spore preparation of a non-pathogenic
saprophytic fungus.
The company recorded a net deficit NZ$1,579,020 and NZ$757,746
for the years ended March 31, 2006 and 2005, respectively.
CONNEXIONZ: Contract Delays, One-Offs Add Up to NZ$288,147 Loss
---------------------------------------------------------------
Connexionz Ltd. incurred a loss of NZ$288,147 for the half-year
ending Sept. 30, 2006, compared with a loss of NZ$258,531 for
the corresponding period in 2005, the company said in a
disclosure with the New Zealand Exchange Limited.
Connexionz Chairman Craig Boyce said that delays in the
invoicing and deployment of a Maryland University contract as
well as one-off charges amounting to NZ$60,000 contributed to
the first-half loss. Mr. Boyce adds "looking ahead with the
completion of the USA contracts at Maryland University and two
smaller contracts at Charlottesville and Georgetown as well as
ongoing extensions to the Christchurch system we expect
Connexionz New Zealand to breakeven over the second half."
The company's disclosure included these financial data (in
NZ$'000):
Half-Year Ending September 30,
2006 2005
-------- --------
Operating Revenue
Trading Revenue 622 565
Other Revenue 14 27
Total Operating Revenue 636 591
Operating Deficit
Before Taxation 318 282
Net Deficit Attributable
To Members Of The
Listed Issuer 288 282
* * *
Christchurch, New Zealand-based Connexionz Limited --
http://www.connexionz.co.nz/-- is a technology company that
develops real-time vehicle tracking systems for the local and
international markets. The company's products include city-side
systems, airport buses, bus interchanges, the BusFinder and
technical papers. Connexionz has a real time system for
tracking a fleet of buses across a city, handling up to 10,000
vehicles and up to 2,500 routes. The Company's BusFinder signs
provide passengers with information citywide at bus stops,
within interchange buildings and in malls and restaurants. The
Company has also customized their system to provide real time
information for airport bus services.
Going Concern Doubt
After examining the company's annual report for the financial
year ending March 31, 2006, Deloitte -- the company's
independent auditors -- raised a fundamental uncertainty on the
company's ability to continue as a going concern, which is
dependent upon the ability to fund future activities from
operational cash flows and/or raise further capital. Deloitte
adds that the company may need to provide for further
liabilities that might arise, and to reclassify non-current
assets as current assets.
DIYONLINE LTD: Court Hears Liquidation Petition
-----------------------------------------------
A petition to liquidate Diyonline Ltd was heard before the High
Court of Auckland on Feb. 8, 2007.
Tanner Group Ltd filed the petition with the Court on Oct. 26,
2006.
Tanner's solicitor can be reached at:
Malcolm Whitlock
Debt Recovery Group NZ Limited
149 Ti Rakau Drive
Pakuranga, Auckland
New Zealand
GENESIS RESEARCH: Arborgen Settlement Fuels Interim Profit
----------------------------------------------------------
Genesis Research & Development Corp.'s revenue for the six
months to June 30, 2006, was NZ$9.9 million (2005: NZ$1.3
million) including the NZ$8.7 million settlement with Arborgen,
LLC., the company said in its interim report.
Important commercial milestones were achieved in the six months
to June 30, 2006, with final completion of the Arborgen
Settlement and termination of associated litigation, together
with the consequent substantial increase in cash reserves.
Genesis now has a longer term of funding reserves than most
other biotech companies. This security allows the company to
progress with confidence without the distraction of litigation
risks and to consider expansion opportunities.
A net surplus for the period of NZ$6.1 million was recorded as a
result of the Arborgen Settlement. Future periods are likely to
show operating deficits, consistent with most biotech companies,
apart from those periods when substantial licensing deals are
achieved.
Genesis has prospects for achievement of licensing and
collaboration deals over the next 12-18 months and is working
hard to progress these opportunities. Forward revenue was
boosted by renewal of a Frst grant for a plant research
programme for a further 12 months.
Parnell, New Zealand-based Genesis Research & Development Corp.
-- http://www.genesis.co.nz/-- is a discovery-based
biotechnology company. The company uses its ribonucleic acid
interference (RNA i) technology to develop therapeutics for
allergic diseases, especially asthma and atopic dermatitis. The
company's subsidiaries include AgriGenesis BioSciences Limited,
AgriGenesis Limited, ArborGen, LLC, BioStore NZ Limited and
Genesis Employee Fund Limited. The research in the fields of
agriculture, horticulture and forestry is carried out in
AgriGenesis BioSciences Limited.
The group recorded a net deficit after taxation of NZ$7,134,000
and NZ$13,695,000, for the years ended December 31, 2005, and
2004, respectively.
The parent company recorded a net deficit after taxation of
NZ$5,937,000 and NZ$6,758,000, for the years ended December 31,
2005, and 2004, respectively.
KERWYN DEVELOPMENTS: Liquidation Hearing Set for March 1
--------------------------------------------------------
On Dec. 5, 2007, Bluebird Foods Ltd filed a petition to
liquidate Kerwyn Developments Ltd before the High Court of
Auckland.
The petition will be heard on March 1, 2007 at 10:45 a.m.
Bluebird Foods' solicitor can be reached at:
M. J. Gavin
Russell McVeagh
Level 30, Vero Centre
48 Shortland Street, Auckland
New Zealand
NEWBURY RACING: Court Hears CIR's Liquidation Petition
------------------------------------------------------
The Commissioner of Inland Revenue filed with the High Court of
Palmerston North a liquidation petition against Newbury Racing &
Breeding Ltd on Dec. 6, 2006.
The application was heard before the Court on Jan. 29, 2007.
The CIR's solicitor can be reached at:
Kerri Ann Doherty
Technical and Legal Support Group
Wellington Service Centre
1st Floor, New Zealand Post House
7-27 Waterloo Quay (PO Box 1462), Wellington
New Zealand
Telephone:(04) 890 1045
Facsimile:(04) 890 0009
NSSI NZ: Creditors' Proofs of Claim Due on February 15
------------------------------------------------------
The creditors of NSSI NZ Ltd are required to submit their proofs
of claim by Feb. 15, 2007.
Failure to comply with the requirement will exclude a creditor
form sharing in any distribution the company will make.
The Joint and Several Liquidators can be reached at:
Paul John McCormick
Neil Raymond Donnell
Grant Thornton Auckland Limited
97-101 Hobson Street, Auckland
New Zealand
Telephone:(09) 308 2570
PAUL HARRIS: Court Orders Liquidation
-------------------------------------
The High Court of Nelson entered an order on Nov. 23, 2006, to
liquidate the business of Paul Harris Jewellers and Company Ltd.
Subsequently, Iain Andrew Nellies and Wayne John Deuchrass were
appointed as joint and several liquidators.
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
RAINBOW ENGINEERING: Court Sets Liquidation Hearing on Feb. 15
--------------------------------------------------------------
The Commissioner of Inland Revenue filed a petition to liquidate
Rainbow Engineering (2001) Ltd on Oct. 25, 2006.
Accordingly, the petition will be heard before the High Court of
Auckland on Feb. 15, 2007, at 10:00 a.m.
The CIR's solicitor can be reached at:
S. J. Eisdell Moore
Meredith Connell
Level 17, Forsyth Barr Tower
55-65 Shortland Street
PO Box 2213 or DX CP 24063
New Zealand
RAUMATI ROAD: R. T. McKenzie to Act as Liquidator
-------------------------------------------------
Roderick Thomas McKenzie was appointed as liquidator of Raumati
Road Surgery Ltd by order of the Court on Jan. 3, 2007.
The Liquidator can be reached at:
Roderick Thomas Mckenzie
McKenzie & Partners Limited
Level 1, 484 Main Street (PO Box 12014)
Palmerston North
New Zealand
Telephone:(06) 354 9639
Facsimile:(06) 356 2028
SHANTI CLEANING: Faces Liquidation Proceedings
----------------------------------------------
The High Court of Palmerston North heard the liquidation
petition filed against Shanti Cleaning Specialists Ltd on Jan.
29, 2007.
The Commissioner of Inland Revenue filed the petition on Oct.
26, 2006.
The CIR's solicitor can be reached at:
Kerri Ann Doherty
Technical and Legal Support Group
Wellington Service Centre
1st Floor, New Zealand Post House
7-27 Waterloo Quay (PO Box 1462), Wellington
New Zealand
Telephone:(04) 890 1045
Facsimile:(04) 890 0009
SOLID FOUNDATION: Court Issues Liquidation Order
------------------------------------------------
On Jan. 25, 2007, the High Court of Nelson ordered Solid
Foundation Flooring Ltd to liquidate its business.
Accordingly, Iain Andrew Nellies and Wayne John Deuchrass were
appointed as joint and several liquidators.
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
TEST AND TAG: Shareholders Appoint Liquidators
----------------------------------------------
The shareholders of Test and Tag Ltd appointed Gerald Stanley
Rea and Paul Graham Sargison as the company's liquidators on
Jan. 15, 2007.
In this regard, Mr. Rea fixes Feb. 16, 2007, as the due date for
the company's creditors to prove their claims.
The Joint and Several Liquidators can be reached at:
Gerald Stanley Rea
Paul Graham Sargison
Gerry Rea Associates
PO Box 3015, Auckland
New Zealand
Telephone:(09) 377 3099
Facsimile:(09) 377 3098
ZURICH APARTMENTS: Names Parsons and Kenealy as Liquidators
-----------------------------------------------------------
On Dec. 11, 2006, Dennis Clifford Parsons and Katherine Louise
Kenealy were appointed as joint and several liquidators of
Zurich Apartments Ltd.
As reported by the Troubled Company Reporter - Asia Pacific, the
company faced liquidation proceedings on Dec. 11, 2006.
The Joint and Several Liquidators can be reached at:
Dennis Clifford Parsons
Katherine Louise Kenealy
Indepth Forensic Limited
Insolvency Practitioners
PO Box 278, Hamilton
New Zealand
Telephone:(07) 957 8674
Facsimile:(07) 957 8677
=====================
P H I L I P P I N E S
=====================
LAFAYETTE MINING: Can Resume Mining in Rapu-Rapu, Gov't. Says
-------------------------------------------------------------
The Philippine's Department of Environment and Natural Resources
granted Lafayette Mining Ltd. permission to resume mining
operations in Rapu-Rapu Island.
In October 2006, the DENR issued a "cease and desist" order
against the company as a result of incidents of mine tailing
spills in 2005, Komfie Manalo, writing for All Headline News,
relates.
For the waste spills, the company was fined PHP10.7 million for
violating the country's Clean Water Act and its environmental
compliance certificate.
Even with protests from various sectors, the Philippine
Government later gave Lafayette provisional approval for a trial
run subject to certain conditions preventing the same incident.
In a press conference, DENR Secretary Angelo T. Reyes assured
that everything has been done to ensure that the mining
production at Rapu-Rapu Island will not cause environmental
damage.
In evaluating the test performance of Lafayette, the DENR was
guided by the findings of the Rapu-Rapu Fact Finding Commission,
GMANews.TV states, citing Secretary Reyes. The department also
consulted with scientists and experts from other government
agencies, the academe and the science community, the DENR
Secretary added.
"The decision to authorize full mining operations in Rapu-Rapu
is entirely in accordance with the Mining Act, and with the
policy of the government to utilize to the full our natural
resources to improve the living standards of our people not only
of the present but also of future generations," GMANews quotes
the DENR chief as saying.
The Rapu-Rapu Mine is expected to produce copper, gold, silver
and zinc valued at US$350 million over the next six years, AHN
notes.
About Lafayette Mining
Headquartered in Melbourne, Australia, Lafayette Mining Limited
-- http://www.lafayettemining.com/-- through its subsidiary
companies and Philippine partners, holds an interest in the
Rapu-Rapu polymetallic project in the Philippines. Rapu Rapu
Island is approximately 350 kilometers south of Manila. During
the fiscal year ended June 30, 2006, the Company was engaged in
the development of polymetallic mineral prospects on Rapu Rapu
Island and the production of precious metals and base metals.
The Rapu-Rapu mineral resource supports an eight-year mine life
capable of producing approximately 10,000 tons of copper in
concentrates, 14,000 tons of zinc in concentrates, 50,000 ounces
of gold and 600,000 ounces of silver annually. The project was
suspended by the national government's Department of Environment
and Natural Resources after two incidents in 2005 that resulted
in discharges of contaminated liquid.
Going Concern Doubt
After reviewing the company's half-year (ended June 30, 2006)
accounts, HLB Mann Judd, the company's independent auditors,
raised significant uncertainty on the company's going concern
"unless its license to operate the Rapu Rapu polymetallic
project on a commercial basis are fully restored in the near
future, and unless ongoing funding initiatives are successful."
The auditors pointed out that the balance sheet of the group as
of June 30, 2006, disclosed a net working capital deficiency of
AU$89,748,451 and a deficiency in net assets of AU$172,202,840.
The working capital deficiency takes into account a current
liability of AU$88,547,226 being the current portion of
unrealised losses on base and precious metals forward sales
contracts.
SBARRO INC: Closes Tender Offer for 11% Senior Notes Due 2009
-------------------------------------------------------------
Sbarro, Inc., completed its tender offer and consent
solicitation for any and all of its 11% Senior Notes due 2009
(CUSIP No. 805844 AC 1).
The offer expired at 12:00 midnight, New York City time, on
Feb. 6, 2007, with US$219,907,000 in aggregate principal amount
of Notes (approximately 86% of outstanding Notes) tendered and
accepted for purchase under the terms of the Offer.
Proposed amendments in connection with the Offer and effected by
the supplemental indenture dated Jan. 31, 2007, to the indenture
governing the Notes became operative on Jan. 31, 2007. The
proposed amendments, among other things, eliminate substantially
all of the material restrictive covenants, specified affirmative
covenants and certain events of default and related provisions
in the indenture governing the Notes.
Credit Suisse Securities (USA) LLC and Banc of America
Securities LLC served as the dealer managers and solicitation
agents in connection with the Offer.
Sbarro Inc. headquartered in Melville, New York, is a leading
quick service restaurant chain that serves Italian specialty
foods. As of Oct. 8, 2006, the company owned and operated 479
and franchised 476 restaurants worldwide -- including in the
Philippines -- under brand names such
as "Sbarro," "Umberto's," and "Carmela's Pizzeria." The company
also operated 25 other restaurant concepts and joint ventures
under various brand names. Total revenues for fiscal 2005 were
approximately US$348 million. The company announced on
June 19, 2006, its international expansion by opening more than
25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas
and Romania.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 8, 2007, Standard & Poor's Ratings Services revised its
outlook on Sbarro Inc. to negative from stable. At the
same time, Standard & Poor's affirmed the company's 'B-'
corporate credit rating and other ratings.
TCR-AP also reported on Feb. 8 that Moody's Investors Service
assigned the company a B3 corporate family rating while at the
same time assigned Ba3 senior secured ratings to its proposed
bank facility consisting of a US$25-million 1st lien revolver
and a US$150-million 1st lien term loan. Additionally, the
rating agency gave a Caa1 rating on the proposed US$150-million
senior unsecured notes and a SGL-3 speculative grade liquidity
rating.
=================
S I N G A P O R E
=================
AFFYMETRIX INC: Profit Down to US$8.7 Mil. in 4th Qtr. 2006
-----------------------------------------------------------
Affymetrix Inc. reported its operating results for the fourth
quarter and fiscal year ended December 31, 2006. On a GAAP
basis, the company reported net income of approximately US$8.7
million or US$0.13 per diluted share in the fourth quarter of
2006 as compared to net income of US$30.6 million or US$0.43 per
diluted share in the fourth quarter of 2005.
On a GAAP basis, the company reported fiscal year 2006 net loss
of US$13.7 million or US$0.20 per diluted share, as compared to
net income of US$65.8 million or US$0.96 per diluted share for
2005.
On January 1, 2006, the company adopted FAS 123R and is
reporting employee stock-based compensation expense in its GAAP
results. Excluding the impact of FAS 123R, the company reported
non-GAAP net income of approximately US$10.4 million or US$0.15
per diluted share in the fourth quarter of 2006, and for fiscal
year 2006, net loss of US$2.6 million or US$0.04 per diluted
share.
Total revenue for the fourth quarter was US$104.2 million, of
which US$2.6 million was related to the sale of products to
Perlegen Sciences Inc., as compared to total revenue of US$111.5
million in the fourth quarter of 2005, of which US$2.8 million
was related to the sale of products to Perlegen. For the full
year, total revenue was US$355.3 million as compared to US$367.6
million for 2005.
Product and product related revenue was US$95.0 million for the
fourth quarter of 2006, compared to US$105.7 million in the same
period in 2005. Fourth quarter sales included GeneChip(R)
consumable revenue of US$72.1 million, consisting of array
revenue of US$49.6 million, reagent revenue of US$13.0 million,
genotyping services revenue of US$6.9 million and US$2.6 million
of Perlegen revenue. Additionally, the company reported
instrument revenue of US$15.0 million in the fourth quarter of
2006.
In 2006, total product and product related revenue was US$323.8
million as compared to US$350.2 million in 2005. For the year,
consumable revenue was US$251.2 million, in-line with fiscal
year 2005. Affymetrix shipped approximately 170 systems in
2006, bringing our cumulative systems shipped to around 1550 at
the end of the fourth quarter.
Royalties and other revenue were US$6.6 million for the fourth
quarter of 2006 compared to US$3.1 million in the fourth quarter
of 2005. In 2006, royalties and other revenue increased to
US$16.8 million compared to US$8.3 million in 2005.
Total operating costs and expenses were US$93.7 million for the
fourth quarter of 2006 compared to US$89.8 million in the fourth
quarter of 2005. In 2006, total operating costs and expenses
were US$373.9 million as compared to US$310.2 million in 2005.
Cost of product and product related revenue was US$38.7 million
in the fourth quarter of 2006 compared to US$30.7 million in the
same period of 2005. Product and product related gross margin
was 59.3 percent in the fourth quarter of 2006 compared to 71.0
percent in the fourth quarter of 2005. In 2006, cost of product
and product related revenue was US$123.7 million as compared to
US$96.3 million in 2005, resulting in product and product
related gross margin of 61.8% in 2006 as compared to 72.5% in
2005. A significant factor that impacted gross margin
comparisons was the forward pricing of the Company's two-chip
500K Mapping product which was instituted in July ahead of the
planned conversion to a single-array format.
Research and development expenses were US$19.6 million during
the fourth quarter of 2006 compared to US$19.7 million in the
fourth quarter of 2005. Excluding the impact of FAS 123R, on a
non-GAAP basis, research and development expenses were US$18.9
million during the fourth quarter of 2006. In 2006, research
and development expenses were US$86.3 million as compared to
US$77.4 million in 2005. Excluding the impact of FAS 123R, on a
non-GAAP basis, research and development expenses were US$82.6
million in fiscal year 2006.
Selling, general and administrative expenses were US$31.0
million for the fourth quarter of 2006 compared to US$29.5
million in fourth quarter of 2005. Excluding the impact of FAS
123R, on a non-GAAP basis, selling, general and administrative
expenses were US$29.4 million for the fourth quarter of 2006.
In 2006, selling, general, and administrative expenses were
US$145.1 million as compared to US$122.0 million in 2005.
Excluding the impact of FAS 123R, on a non-GAAP basis, selling,
general and administrative expenses were US$135.1 million in
fiscal year 2006.
As of Dec. 31, 2006, the company's balance sheet showed total
assets of US$781.2 million, current liabilities of US$94.6
million, long-term liabilities of US$5.1 million and US$120
million in convertible notes, leaving a stockholders' equity of
US$553 million.
Recent Highlights
Management
* Affymetrix strengthened its management team by appointing
Kevin King as president of life sciences business and
executive vice president, reporting to Stephen Fodor,
Ph.D., chairman and CEO.
DNA Analysis
* In December 2006, Affymetrix began shipping its new single-
chip Genome Wide 5.0 Array in limited release. The array
features SNPs from the original two-chip 500K Array Set, as
well as 500,000 additional probes that can measure other
genetic differences, such as copy number variation. The
Genome Wide 5.0 Array gives researchers a significant
increase in information above the original 500K Array Set
for the same price, while reducing the array processing
time. The Genome Wide 5.0 Array was developed in
collaboration with the Broad Institute of Harvard and the
Massachusetts Institute of Technology. Affymetrix
scientists participated on the International Genome
Structural Variation Consortium's Copy Number Variation
Project generating the first comprehensive copy number
variation map of the human genome. The team discovered
hundreds of CNVs that will enable researchers to perform
more powerful association studies on diseases such as
cancer, Parkinson's and Alzheimer's. The results of this
study were published in the November 23, 2006 issue of
Nature along with a supporting paper in Genome Research.
This work highlights the importance of copy number
variation in genetics and opens up new avenues in future
genetic studies. Using the Affymetrix 500K Array Set,
researchers at Translational Genomics Research Institute
screened DNA samples from over 1,200 patients with sporadic
ALS and 2,000 controls to identify more than 50 genetic
abnormalities in people with sporadic amyotrophic lateral
sclerosis or Lou Gehrig's disease.
RNA Analysis
* Peer reviewed publications have begun to demonstrate the
value of Exon Arrays in biomarker discovery. For example,
researchers at University of Manchester's Paterson
Institute for Cancer Research found a high degree of gene
level correlation between the Affymetrix GeneChip Human
Genome U133 Plus 2.0 arrays and GeneChip Human Exon 1.0 ST
Arrays while at the same time resolving splice variations.
This study was published in the January 2007 issue of
Biotechniques. Two recent publications have reported the
development of new statistical methods for analyzing data
from Affymetrix Exon Arrays. Published December 2006 in
PLoS One, researchers from Stanford University showed that
gene level expression obtained from Exon Arrays is more
representative of the true transcriptional activity of each
gene. Additionally, a research team from University of
Tokyo developed a new statistical method to identify
differentially observed splicing variations from Exon
expression profiles in the October 2006 issue of Genome
Informatics. These publications are paving the way for
further standardization of analysis tools for Exon arrays
and broader adoption by the research community.
Molecular Diagnostics
* The company continued to expand its international molecular
diagnostics business by entering into agreements with
Sysmex of Kobe, Japan. The agreements grant Sysmex
exclusive rights to distribute Affymetrix' diagnostic
microarray products and instruments in Japan with the
opportunity to expand into certain Asia Pacific countries.
In addition, as a Powered by Affymetrix(TM) partner Sysmex
gains non-exclusive access to Affymetrix microarray
technology to develop and market in-vitro diagnostic tests
on a worldwide basis. Sysmex will carry out all
registration, sales and customer support activities in
Japan.
Emerging Markets
* Affymetrix has granted Tessarae Inc. non-exclusive access
to its microarray technology to develop and market
epidemiological research tests for public health and
biodefense surveillance. As part of the Powered by
Affymetrix program, the TessArray kits simultaneously
detect and identify hundreds of strains of natural and
emergent viral and bacterial pathogens, as well as
biothreat agents. The TessArray kits are based on
multiplexed genotypic signatures present on Affymetrix
CustomSeq Resequencing Arrays.
Translational Medicine
* Affymetrix and Vanderbilt-Ingram Cancer Center have entered
into a three-year translational research collaboration to
analyze genomic information across a large number of
patient samples. Under terms of the agreement, researchers
at Vanderbilt-Ingram and Vanderbilt University Medical
Center will use Affymetrix microarrays to develop new
applications for translational research projects, focusing
on disease areas such as cancer and HIV/AIDS.
Toxicology
* Affymetrix and Iconix Biosciences launched the ToxFX
Analysis Suite, a toxicogenomics solution that improves
researchers' understanding of safety issues associated with
new drug candidates. ToxFX combines Iconix' automated
analysis with Affymetrix arrays, helping scientists
prioritize drug candidates and make preclinical development
decisions faster.
Licensing
* Baylor College of Medicine has obtained a non-exclusive,
worldwide license to a number of Affymetrix patents
covering comparative genomic hybridization microarray
services in Clinical Laboratory Improvement Amendments
environments. Baylor joins a growing list of licensees
including Nimblegen, Abbott, Invitrogen, Perkin Elmer,
Applied Biosystems, and Roche.
About Affymetrix Inc.
Headquartered in Santa Clara, California, Affymetrix Inc. --
http://www.affymetrix.com/-- analyzes complex genetic
information that are used by pharmaceutical, biotechnology,
agrichemical, diagnostics and consumer products companies. The
Company has manufacturing facilities in Sacramento, California,
and Bedford, Massachussetts, and maintains important sales and
marketing operations in Europe and Asia (including Singapore,
Japan and China, as well as Australia, New Zealand, Hong Kong,
India, Japan, Malaysia, and Taiwan) and has about 1,100
employees worldwide.
* * *
Affymetrix Inc.'s noteholders issued a notice of default on
Aug. 17, 2006, under the indenture governing the US$120 million
0.75% Senior Convertible Notes due 2033 as a result of the
company's failure to file its Form 10-Q for the quarter ended
June 30, 2006, with the United States Securities and Exchange
Commission.
LAZARD LTD: Declares US$0.09 Per Share Quarterly Dividend
---------------------------------------------------------
Lazard Ltd.'s board of directors has declared a quarterly
dividend of US$0.09 per share on its outstanding Class A common
stock, payable on Feb. 28, 2007, to stockholders of record on
Feb. 16, 2007.
Lazard Ltd. -- http://www.lazard.com/-- one of the world's
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and Brazil. With origins dating back to
1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.
* * *
At June 30, 2006, Lazard's balance sheet showed US$2.1 billion
in total assets and US$2.8 billion in total liabilities,
resulting in US$745 million stockholders' deficit.
Lazard Ltd. -- http://www.lazard.com/-- one of the world's
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and South America. With origins dating
back to 1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals. The company has locations in Australia, China,
France, Germany, India, Japan, Korea and Singapore.
PDC CORP: To Raise SG$50 Million from Issue of Convertible Notes
----------------------------------------------------------------
PDC Corp Ltd disclosed on Feb. 7, 2007, that it plans to issue
convertible notes to Pacific Capital Investment Management
Limited to put up SG$50 million.
The money raised will be used to finance the Group's recent
venture into the robust agribusiness, corporate uses and for
general working capital.
Together with the approximately SG$19 million to be raised from
a 247 million share subscription agreement signed on Jan. 15,
2007, the total amount of funds to be raised would have met the
required amount of approximately US$50 million for the Group's
plans in its agribusiness development.
The proposed unsecured non-interest bearing notes due 2012, will
be structured in five equal tranches of a principal amount of
SG$10,000,000 each. Each tranche comprising of five equal sub-
tranches of SG$2,000,000 each, will be subscribed by Pacific
Capital at an issue price of 100% of the principal amount of the
Notes.
"We are pleased to be able to attract the attention of Pacific
Capital. Their interest in us is certainly a vote of confidence
in our vision and our plans to move forward in the vibrant
agribusiness sector in Asia, said Veronica Gan, PDC's Chief
Operating Officer.
The proposed Notes Issue is subject to shareholders' approval
and conditional upon the in-principle approval from the
Singapore Exchange Securities Trading Limited for the listing
and quotation for the new shares.
About Pacific Capital
Pacific Capital is an offshore investment company based in the
United Kingdom, which specializes in boutique investments. The
shareholders of Pacific Capital comprise high-networth
individual investors investing in proprietary funds.
About PDC Corp.
Headquartered in Singapore, PDC Corporation Limited is
principally involved in the provision of general construction,
property development, real estate and investment. Its other
activities are the provision of renovation work of any kind and
for the demolition of any structure, trading, rental and
servicing of industrial machinery and equipment and the
distribution of multimedia products, home automation system,
other high technology products and investment holding.
* * *
PDC Corporation's Auditors, Ernst & Young, after auditing the
company's financial statements for the year ended Dec. 31,
2005, highlighted a going concern issue.
As at Dec. 31, 2005, the current liabilities of the company and
the Group exceeded current assets by US$3,852,210 and
US$20,001,069 respectively, and their total liabilities exceeded
total assets by US$3,912,981 and US$20,062,940 respectively.
PETROLEO BRASILEIRO: Posts Preliminary Manati Production Result
---------------------------------------------------------------
Norse Energy Corp., in partnership with Petroleo Brasileiro SA
and Queiroz Galvao Oil & Gas, reported the preliminary
production result for January for the Manati gas field.
Petroleo Brasileiro holds 35% of Manati. It is also the field's
operator. Norse Energy Corp owns a 10% in the field, while
Queiroz Galvao Oil & Gas holds 55%.
Production commenced ramp-up on two wells on Jan. 15.
Production for the month totaled approximately 29 million cubic
meters of wet gas, net of retained gas. After a ramp-up period,
production so far has been stable at approximately 1.8 million
cubic meters per day, with highs above 1.9 million cubic meters.
Deliverability from these wells exceeds actual production, which
is aligned with the ramp up of supplying the regional demand.
Liquids in the gas stream are being extracted at the Sao
Fransisco plant. The condensate has an API of high 50 degrees.
The condensate is currently produced to tanks, and will be sold
in US dollar at a Brent price reference when volumes allow. The
dry gas is sold to Petroleo Brasileiro in local denominated
currency.
Well 3 is under final tie-in, and is expected to come on stream
during February 2007.
Well 4 is currently under completion, and is expected to be
ready for production late in the quarter.
Well 5 has reached the top of the Sergi reservoir, and indicates
a higher gross pay than any of the previous wells. Log date will
become available during February.
Overall, production capacity is expected to be gradually
increased to 6.0 million cubic meters per day, according to
estimates provided by the operator. Actual production will be
aligned with local gas demand.
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: Unit Selling Biodiesel in All Outlets
----------------------------------------------------------
Brazilian state oil Petroleo Brasileiro SA's retail unit, BR
Distribuidora, said in a statement that it will sell biodiesel
in all its service stations by July.
BR Distribuidora said in a statement that it has 44 biodiesel
distribution centers and terminals in strategic regions
throughout Brazil.
Business News Americas relates that BR Distribuidora began
selling biodiesel made up of a 2% admixture to ordinary diesel
in 2006. Meanwhile, Petroleo Brasileiro has been purchasing
biodiesel at government auctions and investing to start
producing the fuel.
The report says that BR Distribuidora invested BRL20 million in
2005 and 2006 to prepare for and start the sale of biodiesel.
BR Distribuidora said in a statement that it wants to have 64
biodiesel distribution centers and terminals by the end of this
year.
BNamericas underscores that the investment in expanding
biodiesel distribution is part of Petroleo Brasileiro's BR953-
million distribution operations for this year.
BR Distribuidora will also invest in environmental protection
programs and in improvement of distribution infrastructure for
all fuels, BNamericas states.
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.
PROGEN ENGINEERING: Court to Hear Wind-Up Petition on Feb. 16
-------------------------------------------------------------
Chua Aik Kia -- trading as Uni Sanitary Electrical Construction
-- filed a petition on Jan. 22, 2007, to wind up operations of
Progen Engineering Pte Ltd.
The High Court of Singapore will hear the petition on Feb. 16,
2007, at 10:00 a.m.
Chua Aik's solicitor can be reached at:
WongPartnership
One George Street #20-01
Singapore 049145
READER'S DIGEST: High Leverage Cues Moody's to Cut Ratings to B2
----------------------------------------------------------------
Moody's Investors Service downgraded The Reader's Digest
Association's Corporate Family rating to B2 from Ba1, concluding
the review for downgrade initiated on Sept. 6, 2006, and
continued on Nov. 16, 2006, in connection with the proposed
US$2.4 billion acquisition by a consortium of investors led by
Ripplewood Holdings LLC.
The downgrade reflects the significant increase in leverage that
will occur as a result of the debt-financed buyout and RDA's
concurrent combination with Ripplewood portfolio companies WRC
Media Inc. and Direct Holdings U.S. Corp.
Moody's also assigned a Ba3 rating to Doctor Acquisition Co.'s
proposed US$1.46 billion senior secured credit facilities and B3
rating to DAC's proposed US$750 million senior subordinated
notes to be issued in connection with the acquisition.
Together with US$466 million of cash common equity and the sale
of US$274 million of senior PIK preferred stock by RDA Holding
Co., the parent holding company established by Ripplewood for
this transaction, the proceeds will be used as:
* US$1.7 billion to fund the buyout of RDA's common stock;
* approximately US$700 million to retire existing RDA debt,;
* US$194 million to retire existing debt and other
obligations of Weekly Reader and Direct Holdings; and
* approximately US$140 million for transaction-related fees
and expenses including a US$25 million transaction fee to
Ripplewood.
DAC is an acquisition vehicle owned by Ripplewood and affiliates
that will be merged into RDA to complete the acquisition with
RDA continuing as the survivor and borrower post-closing. The
rating outlook is stable.
Downgrades:
* Reader's Digest Association, Inc.
-- Corporate Family Rating, Downgraded to B2 from Ba1;
-- Probability of Default Rating, Downgraded to B2 from
Ba1.
Assignments:
* Doctor Acquisition Co.
-- Corporate Family Rating, Assigned B2;
-- Probability of Default Rating, Assigned B2;
-- Guaranteed Senior Secured Revolver, Assigned Ba3 LGD2,
28
-- Guaranteed Senior Secured Term Loan B, Assigned Ba3
LGD2, 28
-- Guaranteed Senior Subordinated Notes, Assigned B3 LGD5-
76
Outlook Actions:
* Reader's Digest Association, Inc.
-- Outlook, Changed To Stable From Rating Under Review
* Doctor Acquisition Co.
-- Outlook, Assigned Stable
The B2 CFR reflects the combined company's high leverage, low
EBITDA margins and the moderate growth prospects of the mature
and largely print-based publishing portfolio. Moody's expects
debt-to-EBITDA will remain high at approximately 7.2-7.4x in
FY 2008. Debt reduction will initially be modest due to the
higher interest burden and spending associated with
restructuring actions.
Recognizable brands, significant global presence and broad
diversity of publishing products support the ratings. Moody's
believes the publishing product lines are mature, but that new
initiatives including the Everyday with Rachel Ray magazine,
Taste of Home Entertaining business and continued expansion into
developing countries will contribute to modest revenue growth.
A key area of focus is improving the cost structure and
operational efficiency to drive margin expansion. The company's
print publishing and direct marketing businesses nevertheless
have high customer churn and acquisition costs, and recurring
editorial and paper costs that restrain margin potential.
Moody's believes the high leverage and weak margins limit
financial flexibility over the intermediate term.
The stable rating outlook reflects Moody's expectation that cost
savings and moderate revenue gains will lower debt-to-EBITDA
over the next 12-18 months. Moody's believes the credit
agreement provides near term flexibility for cost reduction
plans to gain traction as the debt-to-EBITDA covenant does not
begin until March 31, 2008.
The Ba2 rating on RDA's existing US$300 million notes remains on
review for downgrade pending the outcome of the tender offer for
the notes. Moody's will withdraw the rating if the notes are
repaid in connection with the tender offer and would likely
lower the rating to B3/LGD4 on any stub portion that remains
after the tender offer.
The Reader's Digest Association Inc., headquartered in
Pleasantville, New York, is a global publisher and direct
marketer of products including magazines, books, recorded music
collections and home videos. Products include Readers Digest
magazine, which is published in 50 editions and 21 languages.
Following the acquisition by Ripplewood and the combination with
the Weekly Reader and Direct Holdings operations, Reader's
Digest will have annual revenues of approximately US$2.8
billion.
SAW SPECIALIST: Wind-Up Petition Hearing Set for Feb. 23
--------------------------------------------------------
Teh Hock Lai and Yeo Suay Hwee filed a petition to wind up the
operations of Saw Specialist & Machinery Pte Ltd on Jan. 26,
2007.
The Court is set to hear the wind-up petition on Feb. 23, 2007,
at 10:00 a.m.
Teh Hock and Yeo Suay's solicitors can be reached at:
K S Chia Gurdeep & Param
1 Finlayson Green
#10-01, Singapore 049246
SEA CONTAINERS: Court OKs Richards Butler as Foreign Counsel
------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates obtained
permission from the U.S. Bankruptcy Court for the District of
Delaware to employ Richards Butler LLP as special counsel for
certain foreign legal matters, nunc pro tunc to Oct. 15, 2006.
Richards Butler has served as the Debtors' outside counsel on
legal matters in the United Kingdom and France as well as
matters involving their interests in their non-debtor subsidiary
Great North Eastern Railway, Ltd., since 1987, related Edwin S.
Hetherington, vice president, general counsel, and secretary of
Sea Containers Ltd.
As the Debtors' Special Foreign Counsel, Richards Butler is
expected to advise and represent the Debtors with respect to
foreign legal matters as well as other non-bankruptcy related
matters, which may arise in the Debtors' Chapter 11 cases in the
ordinary course of business.
Richards Butler's services will be paid in accordance with its
customary hourly rates:
Professional Hourly Rate
------------ ---------------
Partners US$522 - US$997
Associates US$360 - US$740
Paraprofessionals US$295 - US$360
The firm will also be reimbursed for necessary out-of-pocket
expenses.
Mr. Hetherington informed the Court that Richards Butler has
received a replenishing prepetition retainer, with a remaining
balance of US$150,461, for providing the Debtors with
representation on certain of the foreign legal matters prior to
the Petition Date. In addition, Richards Butler also received
US$4,412,000 from the Debtors within one year prior to the
Petition Date for services rendered to certain Foreign Legal
Matters.
Jonathan Yorke, Esq., a member of Richards Butler LLP, assures
the Court that his firm does not hold or represent any interests
adverse to the Debtors, or to their estates in matters upon
which his firm is to be engaged.
Reed Smith and Richards Butler Merge
Reed Smith, a United States-based, top-25 international law firm
with nearly 1100 lawyers, and Richards Butler, a London-based,
top-30 UK and international law firm with more than 250 lawyers,
announced in 2006 that both partnerships have approved the
merger of the two firms. The merger creates one of the 20
largest law firms in the world, with offices on three
continents.
The firms began to integrate their operations in 2006, closing
in the legal combination of the firms on January 1, 2007.
The merged firm will be known as Reed Smith, although there will
be variations in some European markets, including the UK, where
the name Reed Smith Richards Butler will be used.
The firm will be led by Gregory Jordan, Reed Smith's managing
partner, as Firmwide Managing Partner. Roger Parker, Richards
Butler's managing partner, will join Reed Smith's Senior
Management Team and become European Managing Partner. Tim
Foster, current managing partner of Reed Smith's UK offices will
continue in that role overseeing the greatly expanded office of
Reed Smith Richards Butler. Paul Johnston, chairman of Richards
Butler, will also join Reed Smith's Ian Fagelson as European
representatives on the combined firm's Executive Committee.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides
passenger and freight transport and marine container leasing.
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. On October 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 10;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' exclusive period to file a chapter 11 plan expires
on June 12, 2007.
SEA CONTAINERS: Committee Hires Morris as Delaware Counsel
----------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers,
Ltd. and its debtor-affiliates bankruptcy case obtained
authority from the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware to retain Morris,
Nichols, Arsht & Tunnell LLP as its Delaware counsel, nunc pro
tunc to Oct. 26, 2006.
The Creditors Committee selected Morris Nichols because of the
firm's extensive experience, knowledge and resources in the
fields of, inter alia, debtors' and creditors' rights and
business reorganizations under Chapter 11 of the Bankruptcy
Code, Andrew B. Cohen, managing director of Dune Capital LLC,
relates.
Specifically, Morris Nichols will:
(a) advise the Creditors Committee with respect to its
rights, duties and powers in the Debtors' Chapter 11
cases;
(b) assist and advise the Creditors Committee in its
consultations with the Debtors relative to the
administration of their cases;
(c) assist the Creditors Committee in analyzing the claims of
the Debtors' creditors in negotiating with them;
(d) assist with the Creditors Committee's investigation of
the acts, conduct, assets liabilities and financial
condition of the Debtors and of the operation of their
business;
(e) assist the Creditors Committee in its analysis of, and
negotiations with, the Debtors or their creditors
concerning matters related to, among other things, the
terms of a plan of reorganization for the Debtors;
(f) assist and advise the Creditors Committee with respect to
its communications with the general creditor body
regarding significant matters in the Debtors' bankruptcy
cases;
(g) assist and counsel the Creditors Committee in respect to
its organization, the conduct of its business and
meetings, the dissemination of information to its
constituency, and other matters as are reasonably deemed
necessary to facilitate the administrative activities of
the Committee;
(h) attend the meetings of the Creditors Committee;
(i) represent the Creditors Committee at all hearings and
other proceedings;
(j) review and analyze all applications, orders, statements
of operations and schedules filed with the Court and
advise the Creditors Committee as to their propriety;
(k) assist the Creditors Committee in preparing pleadings and
applications as may be necessary in furtherance of the
Creditors Committee's interests and objectives; and
(1) perform other legal services as may be required and are
deemed to be in the interests of the Creditors Committee
in accordance with the Committee's powers and duties as
set forth in the Bankruptcy Code.
Morris Nichols will be paid on an hourly basis, plus
reimbursement of actual and necessary expenses incurred:
Designation Hourly Rate
----------- -----------
Partners US$425 - US$625
Associates US$220 - US$400
Paraprofessionals US$175
Case Clerks US$100
William H. Sudell, Jr., Esq., a partner at Morris Nichols,
assures the Court that his firm is a "disinterested person" as
defined in Section 101(14) of the Bankruptcy Code. Morris
Nichols does not hold or represent any interest adverse to the
Debtors' estates or their creditors, Mr. Sudell adds.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides
passenger and freight transport and marine container leasing.
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. On October 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. The Debtors' exclusive period to file a chapter 11 plan
of reorganization expires on June 12, 2007. (Sea Containers
Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Court OKs Bingham as Services Committee Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Sea
Containers Ltd. and its debtor-affiliates' chapter 11 cases
obtained authority from the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware to retain Bingham
McCutchen, Morris, Nichols, Arsht & Tunnell LLP, as its counsel
serving in the Services Committee, nunc pro tunc to Oct. 26,
2006.
The Creditors Committee sought Court approval to retain Bingham
McCutchen LLP as counsel to its financial members sub-committee.
The U.S. Trustee had indicated that it would be appointing a
Services Committee, after the Creditors Committee requested the
appointment of a separate committee to represent the interests
of
the unsecured creditors of Sea Containers Services Ltd.
Among other things, Bingham McCutchen is expected to:
a. provide legal advice with respect to the Creditors
Committee's rights, powers, and duties in the bankruptcy
cases;
b. represent the Creditors Committee at all hearings and
other proceedings;
c. advise and assist the Creditors Committee in discussions
with the Debtors and other parties-in-interest, as well as
professionals retained by any of the parties, regarding
the overall administration of the bankruptcy cases;
d. assist the Creditors Committee in analyzing the claims of
the Debtors' creditors and in negotiating with those
creditors;
e. assist with the Creditors Committee's investigation of the
assets, liabilities, and financial condition of the
Debtors and of the operations of their businesses;
f. assist the Creditors Committee in its analysis of, and
negotiations with, the Debtors or any third party
concerning matters related to, among other things,
formulating the terms of a plan or plans of reorganization
for the Debtors;
g. assist and advise the Creditors Committee with respect to
their communications with the general creditor body
regarding matters in the bankruptcy cases;
h. review and analyze on behalf of the Creditors Committee
all pleadings, orders, statements of operations,
schedules, and other legal documents;
i. prepare on behalf of the Creditors Committee of all
pleadings, orders, reports and other legal documents as
may be necessary in furtherance of the Creditors
Committee's interests and objectives; and
j. perform all other legal services for the Creditors
Committee that may be necessary and proper to facilitate
the Committee's discharge of its duties in the bankruptcy
cases and any related proceedings.
Bingham McCutchen's services will be paid according to its
customary hourly rates:
U.S.-based UK-based
Hourly Rates Hourly Rates
------------ ---------------
Partners and Of Counsel US$445 - US$850 GBP400 - GBP540
Counsel and Associates US$175 - US$535 GBP210 - GBP390
Paraprofessionals US$100 - US$315 GBP110 - GBP130
The principal attorneys and paralegal designated to represent
the Debtors and their current hourly rates are:
Professional Designation Hourly Rate
------------ ----------- -----------
Barry G. Russell, Esq. Partner GBP535
Ronald J. Silverman, Esq. Partner US$750
Tom Bannister, Esq. Partner GBP460
Abigail Milburn, Esq. Counsel GBP255
Scott K. Seamon, Esq. Associate US$470
Stacy A. Lopez, Esq. Associate GBP240
Flora Ahn, Esq. Associate US$265
Ronald L. Silverman, Esq., a partner of Bingham McCutchen,
assures the Court that his firm is a "disinterested person" as
that phrase is defined in Section 101(14) of the Bankruptcy
Code. Bingham McCutchen does not hold or represent any interest
adverse to the Debtors' estates with respect to the matters for
which it is to be retained.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides
passenger and freight transport and marine container leasing.
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. On October 3, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. The Debtors' exclusive period to file a chapter 11 plan
of reorganization expires on June 12, 2007. (Sea Containers
Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
YEW SAY: Creditors Must Prove Debts by February 16
--------------------------------------------------
The creditors of Yew Say Pte Ltd are required to submit their
proofs of debt by Feb. 16, 2007, to be included in 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
*********
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.
*** End of Transmission ***