/raid1/www/Hosts/bankrupt/TCRAP_Public/070227.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, February 27, 2007, Vol. 10, No. 41
Headlines
A U S T R A L I A
ALLSTATE EXPLORATIONS: Inks Deal to Emerge from Administration
COLES GROUP: Expects Lower Sales for Fiscal Year 2007
FORTESCUE METALS: Requests Loading Berth Expansion at Anderson
C H I N A & H O N G K O N G
ACTIVE ENERGY: Appoints Lam Kwong Chak, Zaloit as Liquidator
ASIA PREMIUM: Dec. 31 Balance Sheet Upside-Down by US$1 Million
BENQ CORP: German Unit's Assets to Be Split Off & Liquidated
DAILY WIN ENGINEERING: Members and Creditors to Meet on March 14
ELECTROCOM ENGINEERING: Liquidator Resigns from Post
FILA CHINA: Members' Final Meeting Slated for March 26
FULTON PREBON (ASIA): Undergoes Liquidation Proceedings
FULTON PREBON (HONG KONG): Proofs of Debt Due on March 23
MOULINEX FAR EAST: Members to Receive Wind-Up Report on March 26
PREBON TECHNOLOGY (Hong Kong): To Receive Claims Until March 23
RICHEST CENTURY: Commences Liquidation Proceedings
ROAD KING: S&P's BB+ Ratings Remain on Watch Negative
ROYAL & SUN: Philip Brendan Gilligan Quits Post as Liquidator
SHENYANG JINBEI: Expects To Post Profit in 2006
SHENZHEN DEVELOPMENT: Forecasts Profit to Reach CNY1.4 Billion
SICHUAN CHANG: Forms Joint Venture For Display Devices Company
SICHUAN CHANG: 2006 Net Income Increases 7.3% to CNY306 Million
TAPPA (HONG KONG): New Liquidators Set Mar. 23 as POC Bar Date
Y.K. PRE-BORNING: Final General Meeting Slated for March 14
YANTAI HUALIAN: Expects to Post Profit in 2006
YANTAI HUALIAN: Shareholder's 39 Million Shares Frozen
I N D I A
AMERICAN AXLE: Fitch Places BB Rating on New Sr. Notes Due 2017
AMERICAN AXLE: Moody's Assigns Ba3 Rating on US$300-Mln Notes
CONEXANT SYSTEMS: Gets US$98.1 Mil. from Acquicor-Jazz Merger
CORPORATION BANK: Board to Meet Today Over PD Business Takeover
DHANALAKSHMI BANK: 4th Qtr. Net Profit Up 199% to INR31.1 Mil.
DHANALAKSHMI BANK: Hikes Benchmark Prime Lending Rate to 14.50%
HDFC BANK: Signs MOU with Italy's Monte de Paschi di Siena
VIJAYA BANK: Fitch Upgrades Individual Rating from 'D' to 'C/D'
I N D O N E S I A
BANK MANDIRI: 2006 Net Income Probably Tripled, Minister Says
BANK RAKYAT: In Talks With Four Lenders to Buy Bank, Report Says
FREEPORT-MCMORAN: To End Phelps Dodge's Copper-Hedging Practice
GARUDA INDONESIA: Will Step Up Seat Capacity From Perth to Bali
GENERAL NUTRITION: To Sell US$425 Million in Bonds
HILTON HOTELS: Fights Accor for Newly Sold Macdonald Hotels
TELKOMSEL: 3G Service Subscribers Reach 1.7 Mil. in January
J A P A N
FUJI HEAVY: Recalls 850 Subaru Cars Due to Flaws in Brake System
NIKKO CORDIAL: To Seeks JPY3 Bil. in Damages From 3 Former Execs
NIKKO CORDIAL: Citigroup May Raise Stake to 33.4%
SANYO ELECTRIC: Fitch Places 'BB+' Rating on Negative Watch
K O R E A
HYNIX SEMICONDUCTOR: Chin Dae-je Decides Not to Run for CEO
KRISPY KREME: Completes US$160 Million Credit Refinancing
KRISPY KREME: Becomes Current in SEC Filings
MAGNACHIP SEMICONDUCTOR: To Defend Against Pixelplus Lawsuit
M A L A Y S I A
COMSA FARMS: BD Dutchman Demands Payment of EUR209,357
DATAPREP HOLDINGS: Posts MYR426,000 Profit in Dec. 2006 Quarter
HALIFAX CAPITAL: Incurs MYR929,000 Net Loss in 4th Quarter 2006
MALAYSIA AIRLINES: To Set Up Services for Premium Travel Market
PROTON HOLDINGS: Expects to Incur Net Loss in Third Quarter
SINORA INDUSTRIES: Posts MYR514,000 Net Loss in 4th Quarter 2006
TENAGA NASIONAL: Extends CEO's Term for Another Three Years
N E W Z E A L A N D
AIR NEW ZEALAND: Sir Ron Carter to Retire from Board on March 31
AIR NEW ZEALAND: Reveals Simplified Fare Structure for Canada
AWHITU PENINSULA: Creditors to Must File Claims by March 1
BEHEMOTH CORP: Court Hears Liquidation Petition
CRUSADER FISHERIES: CIR Seeks to Liquidate Company
LITTLE LABELS: Court to Hear Liquidation Petition on March 5
OMFINANCIAL: S&P Assigns BB+ Credit Rating with Stable Outlook
PCW INVESTMENTS: Creditors to Prove Debts by March 21
POGO PRODUCING: Sale Plan Spurs S&P's Developing CreditWatch
PRIMED PAINTING: Court Appoints Joint Liquidators
RD1 HOLDINGS: Creditors Must File Claims by March 8
SMOOTH CREW: Creditors' Proofs of Claim Due on June 8
SOLUTION DYNAMICS: Reports NZ$116,000 Surplus in First-Half
SOX NEW ZEALAND: Petition Hearing Slated for May 10
TOYS FOR OLD: Faces Liquidation Proceedings
TRIGNO ACCESS: Court Sets Liquidation Hearing for March 1
VELO LTD: Shareholders Appoint Liquidators
* New Zealand Posts NZ$833-Million Deficit in January
P H I L I P P I N E S
BENGUET CORPORATION: Affirms Talks with Chemical Vapor
CENTRAL AZUCARERA: To Hold Stockholders' Meeting on March 27
CHIQUITA BRANDS: Incurs US$42 Mil. Net Loss in 2006 Fiscal Year
GLOBE TELECOM: To Prepay US$300-Mil. Notes Due 2012 on Apr. 15
MAGNUM HOLDINGS: Discloses Results of Feb. 21 Board Meeting
PHIL. AIRLINES: Net Profit Up 15% in 9 Mos. Ended December '06
PHIL. LONG DISTANCE: To Release 2006 Financials on March 6
WENDY'S INT: Inks US$300-Million Share Purchase Pact with Broker
S I N G A P O R E
ALLIED DOMECQ: Creditors Must Prove Debts by March 23
HIANGKIE INDUSTRIES: Liquidators to Receive Claims Until March 9
ODYSSEY RE: Earns US$83.8 Million in Quarter Ended Dec. 31, 2006
PETROLEO BRASILEIRO: Reports Oil & Gas Production in January
REFCO INC: Refco LLC Files Dec. 2006 Monthly Operating Report
SIFINVEST OVERSEAS: Petition Hearing Slated for March 9
T H A I L A N D
ADVANCE AGRO: Sets Shareholders' Meeting for April 18
COMPUTER SCIENCES: Asking Noteholders for One-Time Waiver
DAIMLERCHRYSLER: Finalizes Pact with Canadian Auto Workers
KRUNG THAI: To Sell NPLs Worth THB15 Bil. to Meet Growth Targets
TOTAL ACCESS: Predicts Record-Breaking Subscriber Growth in 2007
TRUE MOVE: Court Reissues Order for TOT to Integrate 1.5M Nos.
* BOND PRICING: For the Week 19 February to 23 February 2007
- - - - - - - -
=================
A U S T R A L I A
=================
ALLSTATE EXPLORATIONS: Inks Deal to Emerge from Administration
--------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Jan. 24, 2007, Beaconsfield Gold NL has inked deals to buy
Allstate Explorations NL's debt and become its controlling
shareholder.
According to the TCR-AP, Beaconsfield Gold has agreed to buy
Allstate's debt with a face value of AU$48 million for
AU$2.85 million from Macquarie Bank, which bought the debt for
AU$300,000.
Beaconsfield Gold has also agreed to buy Newmont Mining
Corporation's 57.2% shareholding in Allstate for AU$1.4 million,
thus, taking its total interest in Allstate to 83%, the TCR-AP
cited the Sydney Morning Herald.
After these proposals, on Feb. 9, 2007, Allstate's Deed
Administrator disclosed with the Australian Securities Exchange
that it has reached an agreement with Beaconsfield Gold in the
form of a proposal aimed at allowing Allstate Explorations and
its subsidiary companies -- Can 070 164 653 Pty Ltd and Allstate
Prospecting Pty Ltd -- to emerge from deed of company
arrangement.
Under the Proposal, the Allstate Group of Companies would cease
to be subject to deeds of company arrangement immediately on
creditors voting in favor of the Proposal and Beaconsfield
paying the first installment due under the Proposal.
The Proposal state that:
* All tier 1 pre-appointment creditors will be paid the
remainder of their debt (but without interest), with half
of the amount owing being advanced on creditor approval and
the balance three months after termination of the DOCAs. A
Creditors' Trust will be established to facilitate the
payments to the relevant creditors. Funds totaling AU$1.18
million will be advanced to the Allstate Group of Companies
by Beaconsfield Gold for this purpose;
* All other pre-appointment creditors' debts will be
forgiven, not proven for, or deferred:
-- Macquarie,
-- members of the Newmont group,
-- Aurora Energy (for its contingent claim),
-- the Tasmanian Government (for its stamp duty claim),
-- BGNL, and
-- members of the Allstate Group of Companies.
* All employee entitlements (both pre- and post-appointment)
have been provided for and will be payable by the Allstate
Group of Companies, when due in the ordinary course;
* Macquarie will not vote against the DOCAs ending and will
enter into a standstill arrangement with the Allstate Group
of Companies in respect of financial accommodation provided
by Macquarie,
* Beaconsfield Gold will defer its claims in relation to the
recently acquired miner's debt and in relation to funds to
be provided to the Allstate Group of Companies under the
Proposal, until at least Aug. 3, 2007;
* After the Allstate Group of Companies come out of the
DOCAs, control of each member of the Allstate Group of
Companies will be returned to their boards of directors,
with some new directors being appointed; and
* Beaconsfield Gold has confirmed it intends to fund (or
procure the funding of) the ongoing operations of the
Allstate Group of Companies once the DOCAs terminate.
A creditors' meeting of each member of the Allstate Group of
Companies will be held on Feb. 27, 2007, so creditors can vote
on the Proposal.
According to Michael Ryan, the Deed Administrator, the Proposal
"sees creditors repaid their debts in full and allows
shareholders the possibility for future returns. It also sets
out a basis on which BGNL will provide funding to the Allstate
Group following the DOCAs terminating."
"Subject to completion of final documentation and approval by
creditors, the Allstate Group could be out of administration" by
the end of February, Mr. Ryan adds.
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
COLES GROUP: Expects Lower Sales for Fiscal Year 2007
-----------------------------------------------------
On Feb. 23, 2007, Coles Group Ltd. provided updated earnings
guidance to take account of lower-than-anticipated sales and
earnings in supermarkets and Kmart.
According to Chief Executive Officer John Fletcher, the Group's
other businesses had performed in line with or above
expectations, contributing to net profit after tax for the first
half of FY07 of AU$501 million, subject to audit.
While FY07 earnings were expected to remain in the order of
AU$787 million net profit after tax, the contribution from
supermarkets would be lower than anticipated.
Earnings for FY08 are now expected to be approximately 10% lower
than previous guidance of AU$1,066 million net profit after tax.
Mr. Fletcher said that although the company is adjusting
earnings guidance for FY08, it has made strong progress in
implementing some components of the strategy.
"On the plus side, business simplification has identified
potential savings in excess of the AU$363 million target
outlined in September. Our Liquor business, Coles Express,
Target and Officeworks have also gained strong strategic
momentum.
"However, initiatives to drive top-line growth in supermarkets
have taken longer to gain traction, including the re-badging of
Bi-Lo to Coles which has not achieved the sales and earnings
uplift envisaged. This has contributed to an easing in Food and
Liquor comparative sales growth to 2.6%2 in the second quarter,"
Mr. Fletcher said.
The lower sales base in supermarkets would impact earnings in
the second half of the year and in FY08 as would the need to
further invest in expediting the strategic customer initiatives.
"We are spending more in supermarkets now to minimize
executional risk and maximize long-term value," Mr. Fletcher
said.
Additionally, the investigation into practices within the meat
department had identified the need to improve capability,
process, accountability and governance arrangements within that
department and within merchandise more broadly. These issues
will be acted on immediately.
The investigation, which followed the dismissal of Peter Scott
as Managing Director of Merchandise in November, had made no
adverse findings in relation to further Coles team members.
Commences Ownership Review Process
Coles Group also advised that it would commence a process to
review ownership options for the company and its businesses.
According to Chairman Rick Allert, following a number of
informal approaches to its advisers in recent weeks regarding
potential ownership proposals, the Board had decided to commence
a process to review ownership options for the company and its
businesses.
The Board would decide whether a 100% sale or a restructuring of
the Group, including demerger, would create greater value for
shareholders than the current ownership structure and growth
strategy.
Mr. Allert said that a formal process would be established --
governed by strict protocols to ensure a rigorously competitive
process -- to receive and assess proposals from interested
parties.
Mr. Allert further said that the Board believed the strategy
outlined to the market in July and September 2006 remained sound
but the growth rate in the earlier years would be slower than
envisaged.
"This is a business which has more than doubled earnings and
shareholder returns over the past five years. It has an
exciting strategy to create significant further value for
shareholders over the next five years," Mr. Allert said.
According to Mr. Allert, the Board has received advice from
Carnegie Wylie & Company and Deutsche Bank that the value of the
company remained substantially above AU$15.25 per share.
Mr. Allert revealed that John Fletcher, as Group CEO, would
oversee the ownership review, assisted by the company's external
advisers.
To ensure Mr. Fletcher has sufficient time to oversee the review
process as well as to lead the Group, Mick McMahon would be
appointed as Chief Operating Officer of Coles retail businesses
(Supermarkets, Liquor and Express).
"Mick McMahon brings extensive experience in retail leadership
to the position, having held a number of senior positions within
Shell before joining Coles Myer two years ago as Managing
Director, Coles Express," Mr. Fletcher said.
"Since that time, [Mr. Mcmahon's] responsibilities have been
expanded to include leadership of the Liquor business, Group
Marketing and Supermarkets Merchandise," Mr. Fletcher noted.
About Coles Group
Coles Group -- http://www.colesgroup.com.au-- based in
Melbourne, is one of Australia's largest retailers.
Approximately 80% of its revenues are obtained from its core
supermarkets division, which encompasses the retailing of food
and groceries, liquor and fuel. The company also operates a
number of other retail formats, including Kmart and Target,
which retail general merchandise and apparel, and Officeworks.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 26, 2007, Moody's Investors Service has placed the ratings
of Coles Group Limited on review with direction uncertain.
The review has been prompted by the announcement that the Coles
board is considering various ownership options for the company
and its various retail formats.
The ratings placed on review are:
Issuer Rating - Baa2
Senior Unsecured Rating - Baa2
Subordinated MTN Rating - Baa3
Preference Stock Rating - Ba1
Short-Term Commercial Paper Rating - P-2
FORTESCUE METALS: Requests Loading Berth Expansion at Anderson
--------------------------------------------------------------
In a disclosure with the Australian Securities Exchange,
Fortescue Metals Group Ltd., recounts that, as provided in its
quarterly report for December 2006, it announced an increase in
its resource estimate following drilling across some of its
Chichester Range and central Pilbara tenement areas. The
quarterly report also identified further target areas within
Fortescue's central and western Pilbara tenement holdings.
The company notes that any expansion beyond the first stage
target of 45 million tones per annum would be subject to gaining
the required consents and approvals including regulatory and
finance.
Accordingly, Fortescue has written to the Western Australian
Government requesting an expansion from its current single
loading berth (and holding bay) construction at Anderson Point
in Port Hedland, to a three loading berth port design to
facilitate the company's consideration of increasing its
production and shipping capacity.
Fortescue is confident that market demand exists for production
beyond the first stage 45mta. Thus, it is considered prudent to
plan for such potential growth now, the company concludes.
* * *
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
In 2005, Fortescue's chief executive officer, Andrew Forrest,
admitted to a AU$500-million blowout on the cost of port and
rail infrastructure in the Pilbara Project because of price
hikes for steel, fuel, construction materials, and contract
labor. The Company also disclosed that the hampered progress of
the Pilbara Project brings in the possibility that the company
may not meet its ore delivery schedule and pushes up costs at
resource developments across Western Australia. In May 2005,
the Australian Stock Exchange pressured Fortescue to explain
matters about the project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products. The ASX then referred the matter to the
Australian Securities and Investments Commission, which
commenced a legal action against the Company.
The ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on August 23 and Nov. 5, 2004. In particular,
Fortescue did not disclose that the Chinese parties had not
reached a concluded agreement on fundamental aspects of the
projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters. The
ASIC is seeking civil penalties of up to AU$3 million against
Fortescue.
* * *
Fortescue reported a net loss for the past two fiscal years.
Net loss for the year ended June 30, 2005, was AU$4.52 million
and net loss for the year ended June 30, 2006, was AU$2.15
million.
* * *
The TCR-AP reported on Aug. 10, 2006, that Moody's Investors
Service assigned a Ba3 rating to approximately US$1.9 billion in
senior secured 144A bonds to be issued by FMG Finance Pty Ltd,
the financing vehicle of the Fortescue Metal Group. The funding
will be used to partially finance the development of the
Company's iron ore mine in the Pilbara region of Western
Australia as well as an associated rail line and port
infrastructure.
=================================
C H I N A & H O N G K O N G
=================================
ACTIVE ENERGY: Appoints Lam Kwong Chak, Zaloit as Liquidator
------------------------------------------------------------
At an extraordinary general meeting held on Feb. 7, 2007, a
special resolution was passed relating to the wind-up of Active
Energy Limited's operations.
In this regard, Lam Kwong Chak, Zaloit was appointed as
liquidator.
The Liquidator can be reached at:
Lam Kwong Chak, Zaloit
29th Floor, K. Wah Centre
191 Java Road, North Point
Hong Kong
ASIA PREMIUM: Dec. 31 Balance Sheet Upside-Down by US$1 Million
---------------------------------------------------------------
Asia Premium Television Group Inc. filed its fourth quarter
financial statements for the three months ended Dec 31, 2006,
with the Securities and Exchange Commission on Feb. 14, 2007.
The company reported a US$1,400,925 net income on US$14,857,672
of revenues for the three months ended Dec. 31, 2006, compared
with US$31,434 net loss on US$16,243,541 of revenues in the
comparable period of 2005.
At Dec. 31, 2006, the company's balance sheet showed
US$13,769,868 in total assets and $14,853,193 in total
liabilities resulting in US$1,083,325 stockholders' deficit.
The company's December 31 balance sheet also showed strained
liquidity with US$12,792,485 in total current assets available
to pay US$14,853,193 in total current liabilities.
Going Concern Doubt
At Sept. 30, 2006, the company had a working capital deficiency
of US$3,470,665. The company's management expressed substantial
doubt about the company's ability to continue as a going concern
due to liquidity problems. However, management believes the
going concern is mitigated because of these factors:
a) convertible notes payable in the amount of US$4,000,000 is
included in current liabilities but the note is held by a
significant shareholder and will be repaid by conversion
into common stock;
b) the company has shown a net profit in each of the two most
recent fiscal years and expects the trend to continue; and
c) the company has generated positive cash flows in each of
the two most recent fiscal years and expects the trend to
continue.
A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?1a30
* * *
Asia Premium Television Group, Inc., provides marketing, brand
management, advertising, media planning, public relations and
direct marketing services to clients in the People's Republic of
China.
The Company's primary operating activities are Publishing
advertisements as agents for clients; Media consulting services;
and Advertising production.
Going Concern Doubt
At Sept. 30, 2006, the company had a working capital deficiency
of US$3,470,665. The company's management expressed substantial
doubt about the company's ability to continue as a going concern
due to liquidity problems. However, management believes the
going concern is mitigated because of these factors:
a) convertible notes payable in the amount of $4,000,000 is
included in current liabilities but the note is held by a
significant shareholder and will be repaid by conversion
into common stock;
b) the Company has shown a net profit in each of the two most
recent fiscal years and expects the trend to continue; and
c) the Company has generated positive cash flows in each of
the two most recent fiscal years and expects the trend to
continue.
BENQ CORP: German Unit's Assets to Be Split Off & Liquidated
------------------------------------------------------------
BenQ Mobile GmbH & Co. OHG, the bankrupt mobile subsidiary of
Taiwan-based BenQ Corp., will be liquidated and sold off
separately, published reports say, citing BenQ Mobile's
insolvency administrator, Martin Prager.
Mr. Prager confirmed a report in Germany's Sueddeutsche Zeitung
that "there is no longer a realistic chance of it [BenQ Mobile]
being sold as a whole," the Associated Press relates.
The announcement came after a potential bidder dropped plans to
acquire the bankrupt firm.
"We have to acknowledge that the market has decided against Benq
Mobile," Mr. Prager told Bloomberg News.
According to Sueddeutsche Zeitung, Mr. Prager estimated up to
EUR310 million of sales proceeds from real estate, machinery and
patents, in addition to EUR66 million of cash, Bloomberg
relates. However, the paper suggests, this is still millions
short compared with the company's EUR883 million in liabilities.
Mr. Prager wouldn't comment on the possible loss of the firm's
3,000 jobs once the assets are split off and sold separately,
the Wall Street Journal reports citing AP as its source.
Siemens, which previously owned BenQ Mobile before selling it to
BenQ Corp., revealed in January a solid financial basis for the
job placement companies for employees of BenQ Mobile OHG in
North Rhine-Westphalia and Bavaria. A EUR10 million aid fund
has also been set up by Siemens for supporting employees in
financial difficulties. Through the job exchange established by
Siemens for employees of BenQ Mobile OHG, over 690 interviews
have been scheduled at Siemens. Round about 150 concrete job
offers have so far been made. In addition, Siemens has secured
the continuation of training for 88 trainees of BenQ Mobile
within Siemens AG.
About BenQ
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing,
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, 3G handset, Camera phones, and other products.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29, after BenQ Corp.'s board decided to
discontinue capital injection into the mobile unit in order to
stem unsustainable losses. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.
More than 3,000 manufacturing workers have been affected in the
company's insolvency proceedings after it disclosed of plans to
reduce two-thirds of its work force. The mobile unit took over
a factory in Kamp Lintfort in western Germany from Siemens,
which cost Siemens more than US$1 billion. Under the agreement,
BenQ will have the right to use the Siemens brand for five
years. Siemens owns a 2.5 percent stake in BenQ Corp.
* * *
The Troubled Company Reporter - Asia Pacific reported on Dec. 5,
2006, that Taiwan Ratings Corp., assigned its long-term twBB+
and short-term twB corporate credit ratings to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's:
* continuing operating losses from its handset operations;
* high leverage; and
* the competitive nature and low profitability of the LCD
monitor industry.
DAILY WIN ENGINEERING: Members and Creditors to Meet on March 14
----------------------------------------------------------------
The members and creditors of Daily Win Engineering Limited will
hold separate final meetings on March 14, 2007, at 10:30 a.m.
and 10:45 a.m., respectively, at Room 203, Duke of Windsor
Social Service Building in 15 Hennessy Rd, Hong Kong.
As reported by the Troubled Company Reporter - Asia Pacific, the
petition to wind up the company was heard on May 19, 2004.
Nanyang Commercial Bank filed the wind-up petition.
ELECTROCOM ENGINEERING: Liquidator Resigns from Post
----------------------------------------------------
On Feb. 14, 2007, Philip Brendan Gilligan ceased to act as
liquidator for Electrocom Engineering Company Limited, which is
placed under members' voluntary liquidation.
FILA CHINA: Members' Final Meeting Slated for March 26
------------------------------------------------------
The members of Fila China Limited will have their final meeting
on March 26, 2007, at 4:00 p.m., to hear the liquidator's report
regarding the company's wind-up proceedings and property
disposal.
As reported by the Troubled Company Reporter - Asia Pacific, the
company commenced liquidation proceedings on Sept. 29, 2006.
The company's joint liquidators are:
Puen Wing Fai
Lo Yeuk Ki, Alice
21/F, Kwan Chart Tower
6 Tonnochy Road, Wanchai
Hong Kong
FULTON PREBON (ASIA): Undergoes Liquidation Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on Feb. 12, 2007, the
members of Fulton Prebon (Asia) Limited decided to wind up the
company's operations.
Accordingly, creditors are required to prove their debts by
March 23, 2007, to be included in the company's distribution of
dividend.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road Central
Hong Kong
FULTON PREBON (HONG KONG): Proofs of Debt Due on March 23
---------------------------------------------------------
The creditors of Fulton Prebon (Hong Kong) Holdings Limited
are required to prove their debts by March 23, 2007.
The company commenced wind-up proceedings on Feb. 12, 2007.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road Central
Hong Kong
MOULINEX FAR EAST: Members to Receive Wind-Up Report on March 26
----------------------------------------------------------------
Moulinex Far East Limited will hold a final meeting for its
members on March 26, 2007, at 11:30 a.m.
At the meeting, the members will receive the liquidators' report
regarding the company's wind-up proceedings.
The liquidators can be reached at:
Alan C. W. Tang
Wong Kwok Man
c/o Grant Thornton
13th Floor, Gloucester Tower
The Landmark
15 Queen's Road Central
Hong Kong
PREBON TECHNOLOGY (Hong Kong): To Receive Claims Until March 23
---------------------------------------------------------------
Prebon Technology Services (Hong Kong) Limited will be accepting
proofs of debt from its creditors until March 23, 2007.
Failure to prove debts by the deadline will exclude a creditor
from sharing in the company's distribution of dividend.
The company entered wind-up proceedings on Feb. 12, 2007.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road Central
Hong Kong
RICHEST CENTURY: Commences Liquidation Proceedings
--------------------------------------------------
A special resolution was passed on Feb. 7, 2007, to wind up the
operations of Richest Century Limited.
Accordingly, Lam Kwong Chak, Zaloit was appointed as liquidator
for the company.
The Liquidator can be reached at:
Lam Kwong Chak, Zaloit
29th Floor, K. Wah Centre
191 Java Road, North Point
Hong Kong
ROAD KING: S&P's BB+ Ratings Remain on Watch Negative
-----------------------------------------------------
Standard & Poor's Ratings Services, on Feb. 21, 2007, said that
its BB+ long-term corporate credit rating on Road King
Infrastructure Ltd and its BB+ issue rating on the company's
senior unsecured notes remain on CreditWatch, where they were
placed with negative implications on Jan. 26, 2007.
This CreditWatch update follows an announcement by RKI that it
plans to issue HK$549 million in new shares.
"While the share issue could improve RKI's capital strength over
the near term, the impact on the company's long-term financial
profile remains unclear," said Standard & Poor's credit analyst
Judy Kwok-Cheung. This uncertainty is due to the relatively
modest size of the issue -- 6.1% of issued share capital -- and
because RKI's plans to fund its future capital needs remain
unclear.
The net proceeds will mainly be used to fund RKI's property
development business in China. As at June 30, 2006, the
company's total capitalization was about HK$7.34 billion and its
total shareholders' equity was HK$5.42 billion.
The ratings were placed on CreditWatch due to concerns that the
company's credit measures and business profile will weaken as a
result of its plan to increase its investment in Chinese real-
estate developer Sunco Binhai Land Ltd.
The ratings may fall below BB+ following a full review of RKI's
current and proposed property development portfolio, as well as
full information regarding its financing and capital investment
plans. The ratings could be lowered if the company's financial
metrics significantly weaken, with the ratio of funds from
operations to total debt consistently below 20%.
RKI's stable toll-road business, however, is expected to provide
consistent recurring cash flow and limit downward rating
pressure.
ROYAL & SUN: Philip Brendan Gilligan Quits Post as Liquidator
-------------------------------------------------------------
Philip Brendan Gilligan ceased to act as liquidator of
Royal & Sun Alliance Insurance (Hong Kong) Limited on Feb. 14,
2007.
As reported by the Troubled Company Reporter - Asia Pacific,
Mr. Gilligan presented the company's wind-up report at a final
meeting held on Feb. 13, 2007.
SHENYANG JINBEI: Expects To Post Profit in 2006
-----------------------------------------------
Shenyang Jinbei Automotive Co., Ltd., expects to report a profit
for fiscal 2006, Reuters reports.
Reuters recounts that the company reported a loss of
CNY752,508,284.66 for fiscal 2005.
* * *
Headquartered in Shenyang, Liaoning Province, China, Shenyang
Jinbei Automotive Co., Ltd. is principally engaged in the
development, manufacture and sale of light trucks, light
passenger vehicles, multi-functional commercial automobiles and
spare parts, as well as the provision of after-sale services.
The company distributes its automobiles and spare parts, under
the brand name of Jinbei, in the domestic and overseas markets,
such as the Middle East and Africa.
Xinhua Far East China Ratings gave the company a 'C' issuer
credit rating on March 23, 2006.
SHENZHEN DEVELOPMENT: Forecasts Profit to Reach CNY1.4 Billion
--------------------------------------------------------------
Shenzhen Development Bank has filed its 2006 financial result
pre-announcement with the Shenzhen Stock Exchange.
According to the bank, it expects its pre-audit net profit for
2006 to be between CNY1.2 billion and CNY1.4 billion, 300%-350%
more than the 2005 net profit of CNY311 million. Consequently,
earnings per share will increase from CNY0.16 in 2005 to between
CNY0.64 and CNY0.72 for 2006.
The bank explained that the significant profit increase for 2006
was mainly driven by the improved interest spread, more
efficient use of funds, and healthy loan growth. In addition,
continued success in collection and improved asset quality
contributed to lower credit provision charge, and reduction in
the effective tax rate further enhanced profitability.
The bank further said that in 2006, it took initiatives in
enhancing internal management in various areas, including active
asset and liabilities management to utilize funds more
efficiently with risks under better control, improving credit
risk management to maintain good credit quality in the new
portfolio, and implementing matrix management at the branch
level to encourage professional operation and quality customer
service.
* * *
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.
The Troubled Company Reporter - Asia Pacific reported that Fitch
Ratings, on August 14, 2006, affirmed Shenzhen Development
Bank's individual 'D/E' and support '4' ratings.
The bank carries Moody's Ba3 rating for its long-term bank
deposits and a NP short-term rating both effective on September
21, 1998. The bank also carries Moody's E+ bank financial
strength rating effective on April 12, 2001.
SICHUAN CHANG: Forms Joint Venture For Display Devices Company
--------------------------------------------------------------
Sichuan Chang Hong Electric Co., Ltd., will form a joint venture
together with a Sichuan-based display devices company and
MatlinPatterson Global Opportunities Partners IIL.P, Reuters
reports.
The joint venture company will be engaged in display devices.
The new entity will have a registered capital of US$225 million,
of which Sichuan Chang Hong Electric will contribute
US$90 million, representing a 40% stake, Reuters relates.
* * *
Based in Mianyang, Sichuan Province, China, Sichuan Chang Hong
Electric Co., Ltd. -- http://www.changhong.com/-- is
principally engaged in the manufacture and sale of televisions,
air conditioners, mobile phones, refrigerators and other
household electrical appliances. The company offers its
products under 13 categories, including military products,
digital televisions, digital display panels, information
technology products, air conditioners, digital audio/video
products, digital network products, molding products, digital
electronic components, environment-friendly power supply
systems, electrical equipment, electric engineering products and
chemical materials. The company distributes its products in 90
countries/regions, including Russia, the United States, France,
and South America.
Xinhua Far East China Ratings gave the company a B+ issuer
credit rating on February 24, 2006.
SICHUAN CHANG: 2006 Net Income Increases 7.3% to CNY306 Million
---------------------------------------------------------------
Sichuan Chang Hong Electric Co., Ltd, reported a net income of
CNY305.91 million for the year ending December 31, 2006, a 7.32%
change from the CNY285.04-million net income reported in the
full year ending December 31, 2005.
The company reported a 24.49% increase in sales to
CNY18.71 billion for the period in review.
Fourth Quarter Results
Bloomberg News reports that the company increased its fourth
quarter profit fourfold on higher sales of flat-panel TVs and
income from investments.
Bloomberg notes that net income rose to CNY84.6 million in the
three months ended Dec. 31, 2006, from CNY20.1 million a year
earlier. Sales for that quarter rose 36% to CNY6.6 billion.
Chang Hong made a CNY30.6 million profit from investments in the
fourth quarter, from a loss a year earlier, as China's surging
stock market raised the value of its holdings, Bloomberg notes.
The report explains further that the company also sold more
plasma TVs, driven by consumers replacing their bulkier glass-
tube sets and China's economic growth.
Announces Dividends
Sichuan Chang Hong announced a dividend payment for fiscal 2006,
Reuters reports.
According to Reuters, all shareholders will be paid CNY0.70 for
every 10 shares held.
Sichuan also announced a change in its accounting policies for
recording bad debts. The residual value for fixed assets is
also changed from 3% to 5%, Reuters notes.
* * *
Based in Mianyang, Sichuan Province, China, Sichuan Chang Hong
Electric Co., Ltd. -- http://www.changhong.com/-- is
principally engaged in the manufacture and sale of televisions,
air conditioners, mobile phones, refrigerators and other
household electrical appliances. The company offers its
products under 13 categories, including military products,
digital televisions, digital display panels, information
technology products, air conditioners, digital audio/video
products, digital network products, molding products, digital
electronic components, environment-friendly power supply
systems, electrical equipment, electric engineering products and
chemical materials. The company distributes its products in 90
countries/regions, including Russia, the United States, France,
and South America.
Xinhua Far East China Ratings gave the company a B+ issuer
credit rating on February 24, 2006.
TAPPA (HONG KONG): New Liquidators Set Mar. 23 as POC Bar Date
--------------------------------------------------------------
Thomas Andrew Corkhill and Iain Ferguson Bruce were appointed as
joint liquidators for Tappa (Hong Kong) Limited through a
special resolution passed on Feb. 14, 2007.
In this regard, Messrs. Corkhill and Bruce requires the
company's creditors to prove their claims by March 23, 2007, to
be included in the company's distribution of dividend.
The Joint Liquidators can be reached at:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road Central
Hong Kong
Y.K. PRE-BORNING: Final General Meeting Slated for March 14
-----------------------------------------------------------
Y.K. Pre-Borning Limited will hold a final general meeting for
its members and creditors on March 14, 2007, at 10:00 a.m. and
10:15 a.m., respectively, at Room 203, Duke of Windsor Social
Service Building in 15 Hennessy Rd, Hong Kong.
At the meeting, the members and creditors will receive the
liquidator's report regarding the company's wind-up proceedings
and property disposal.
YANTAI HUALIAN: Expects to Post Profit in 2006
----------------------------------------------
Yantai Hualian Development Group Co. Ltd. expects to book a
profit for fiscal 2006, Reuters reports.
The company reported a loss of CNY224,469,400 in fiscal 2005,
Reuters recounts.
* * *
Yantai Hualian Development Group Co., Ltd. is primarily engaged
in the wholesaling and retailing of various merchandises, the
production and sale of pharmaceuticals, as well as the
development of real estate and property management. During the
year ended December 31, 2005, approximately 61.5 % of its total
revenue was attributed to its pharmaceutical business, which is
operated primarily through three subsidiaries in Shandong
Province and Guangdong Province. The company is headquartered in
Yantai, Shandong Province, China.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007, that the company has a capital deficiency of
US$7.66 million, on total assets of US$59.99 million.
YANTAI HUALIAN: Shareholder's 39 Million Shares Frozen
------------------------------------------------------
A total of 38,981,370 shares owned by Yantai Hualian Development
Group Co Ltd's second largest shareholder have been frozen for a
year, starting from February 7, 2007, Reuters reports.
Yantai Hualian Development Group Co., Ltd. is primarily engaged
in the wholesaling and retailing of various merchandises, the
production and sale of pharmaceuticals, as well as the
development of real estate and property management. During the
year ended December 31, 2005, approximately 61.5 % of its total
revenue was attributed to its pharmaceutical business, which is
operated primarily through three subsidiaries in Shandong
Province and Guangdong Province. The company is headquartered in
Yantai, Shandong Province, China.
The Troubled Company Reporter - Asia Pacific reported on
February 16, 2007, that the company has a capital deficiency of
US$7.66 million, on total assets of US$59.99 million.
=========
I N D I A
=========
AMERICAN AXLE: Fitch Places BB Rating on New Sr. Notes Due 2017
---------------------------------------------------------------
Fitch has assigned a 'BB' rating to American Axle &
Manufacturing's (NYSE: AXL) new senior unsecured notes due 2017.
Fitch has also affirmed American Axle's existing ratings:
-- Issuer Default Rating (IDR) 'BB';
-- Senior unsecured bank facility 'BB'; and
-- Senior unsecured 'BB'.
The Outlook remains Negative. Including the new issuance, the
ratings cover approximately US$972 million of debt.
Fitch's affirmation reflects the risks associated with American
Axle's dependence on General Motors (Fitch IDR 'B'; Watch
Negative) for roughly 75% of its total revenue and in
particular, GM's passenger trucks which compete in segments that
will remain under pressure in 2007. Partially offsetting these
risks are American Axle's margin performance, solid liquidity,
competitive position, the financial benefits of recent headcount
reduction, and an expected improvement in free cash flow in
2007. Free cash flow over the next several years will benefit
from recent restructuring activities and reduced capital
expenditure levels following an extended period of higher costs
associated with the launch of GM's GMT900 trucks and
international growth initiatives. The new business backlog with
customers other than GM continues to grow.
The Negative Outlook reflects the credit condition of American
Axle's largest customer, critical labor negotiations later this
year between GM and the United Auto Workers union, a financially
stressed base of suppliers other than American Axle, and the
uncertain sustainability of large pickup truck production volume
in light of a slump in new home construction. In addition, the
uncertainty related to large sport utility vehicle volumes and
consumers reaction to fuel prices. Fitch could revise the
Outlook to Stable if GM's production outlook stabilizes or
American Axle's free cash flow materially improves in 2007,
providing increased cushion against the uncertainty of the
factors listed above.
Fitch has also assigned a rating of 'BB' to American Axle's new
senior unsecured bonds due Feb 2017. The issuance capitalizes
on favorable capital market conditions and supplements American
Axle's liquidity position through an uncertain 2007 industry
environment. Fitch anticipates that, in the absence of any
labor disruptions at American Axle's largest customer, issuance
proceeds would be used to keep revolver capacity available with
the balance held in cash. Axle will likely use the cash on the
balance sheet instead of the revolver to handle mid-period
working capital requirements during the year. Upon resolution
of General Motors/United Auto Workers-contract negotiations,
Fitch expects to see a reduction in total debt. A 'Change In
Control' clause is included in the new issue terms.
Despite a 12.7% decline from 2005 to 2006 in GM light truck
sales, American Axle 2006 revenue was off 5.8% from US$3.4
billion to US$3.2 billion. The offsets to the decline in GM's
truck sales include American Axle's business with customers
other than GM and higher content on the new GM SUVs and large
pickups. However, lower volumes and higher launch costs brought
adjusted operating income down from US$105 million last year to
US$52 million for 2006. Free cash flow was a use of US$132
million versus a use of US$56 million a year ago primarily due
to the special attrition program payments but also higher than
normal capital expenditure related to the launch of the new GM
products. To fund operations, the Special Attrition Program,
other attrition programs and US$37 million in lease buyouts, the
company's total debt rose to US$672 million in 2006 from US$489
million last year. Liquidity at the end of 2006 consisted of
US$14 million in cash and marketable securities and US$476
million in available revolver. The company also has
availability under uncommitted and foreign lines of credit
totaling US$27 million and US$92 million, respectively.
American Axle has maintained its financial discipline through a
period of heavy investment and in the midst of difficult
industry conditions. While many suppliers have chosen to take
advantage of attractive secured financing arrangements, American
Axle's funding has remained unsecured. American Axle's credit
metrics are healthy for the current rating, but American Axle 's
credit profile is currently constrained by the company's
dependence on GM, exposure to light trucks, and negative free
cash flow over the past two years. For 2006 American Axle's
Total Debt to Operating EBITDA was 2.6x, Total Adjusted Debt to
Operating EBITDA (adjusted for rent) was 2.9x, and FFO Adjusted
Leverage was 3.4x.
Headquartered in Detroit, MI, American Axle & Manufacturing --
http://www.aam.com/-- manufactures, engineers, designs and
validates driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed
products for light trucks, sport utility vehicles and passenger
cars. In addition to locations in the United States, AAM also
has offices or facilities in Brazil, India, China, England,
Germany, Japan, Mexico, Poland, Scotland and South Korea.
AMERICAN AXLE: Moody's Assigns Ba3 Rating on US$300-Mln Notes
-------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating (LGD-4, 56%) to
American Axle & Manufacturing Inc.'s new issue of US$300-million
of unsecured notes.
At the same time, the rating agency raised the company's
Speculative Grade Liquidity rating to SGL-1 and affirmed the
company's existing Corporate Family Rating of Ba3 and negative
outlook.
Although the company's leverage measurements will initially
increase as a result of the new debt, its margins, cash flows
and coverage ratios should improve during 2007 as a result of
restructuring initiatives and employee buy-out programs
initiated during 2006. The company's liquidity profile will be
strengthened from the combination of retention of a portion of
the proceeds as corporate cash, increased availability under its
bank revolving credit facility, and free cash flow generation.
The result of improved liquidity and expected trends in key
metrics help maintain the company's position in the Ba3 rating
category despite the modest initial increase in debt levels.
The negative outlook recognizes the considerable near-term
uncertainty posed by the September 2007 expiration of the Big-3
UAW contract and the possibility of any related strikes or work
actions. In addition, due to its significant supply contracts
relating to General Motors' T900 trucks and SUVs, American Axle
remains vulnerable to further shifts in consumer preference away
from these segments.
"American Axle's credit metrics could improve by late 2007 and
into 2008 as the benefits of its restructuring initiatives begin
to take hold" Edwin Wiest, vice president with Moody's said.
"However, the company and the entire automotive supplier sector
will face considerable near-term uncertainty until the Big-3 UAW
contract negotiations are finalized." Mr. Wiest went on to say
that, "Given this uncertainty, the company's effort to
strengthen is liquidity position is constructive."
American Axle will use a portion of the proceeds from the issue
to reduce outstandings under its bank revolving credit facility
and money market borrowings, which collectively amounted to
US$134 million at the end of December 2006. The balance will be
retained as cash. On a pro forma basis for year end 2006,
debt/EBITDA on a trailing basis would increase from roughly 3
times to 3.5 times. Following its Special Attrition Program and
other restructuring actions in the fourth quarter of 2006, the
company is expected to achieve significant savings in its cost
structure. This should facilitate higher EBITDA generation,
and, along with lower capital expenditures, produce positive
free cash flow over the intermediate period. In turn, coverage
and leverage metrics should exhibit positive trends and help
position the company in the Ba3 rating category.
Nonetheless, American Axle remains vulnerable to a challenging
industry environment, faces ongoing correlation of its results
with GM's production of light trucks, and continues with its
revenues concentrated in North America. Those issues along with
uncertainties on the ultimate application of higher cash
balances warrant maintaining a negative outlook until OEM labor
contract issues are resolved and final consumer demand for
vehicles based on the GM T900 in a higher fuel cost environment
is confirmed beyond an introductory period.
The Speculative Grade Liquidity rating of SGL-1 represents
excellent liquidity over the coming twelve months. This
develops from the increase in internal resources from the
retention of a portion of the note proceeds, minimal, if any,
near term debt maturities, and expectations of free cash flow of
at least US$100 million in 2007. External sources will
effectively increase as a result of the repayment of revolving
credit borrowings. The company should have ample room under its
principal financial covenants, which measure debt net of cash
and exclude certain non-recurring charges from the measurement
of EBITDA and their related impact on deemed net worth. All of
the company's bank obligations and notes are currently
unsecured, which establishes some flexibility to generate
alternative liquidity, if needed, subject to lien baskets and
sale/leaseback limitations in their respective indentures.
The notes will be issued under the company's existing shelf
registration. However, the indenture will include a change in
control provision. As with American Axle's existing bank debt
and unsecured notes, the issue will be guaranteed by American
Axle's holding company parent. Given the unsecured nature of
the debt claims in the company's capital structure, recovery
rates in Moody's Loss Given Default assessment have not
materially changed from earlier measurement dates and are LGD-4,
56 %.
Ratings assigned:
* American Axle & Manufacturing, Inc.
-- US$300 million of guaranteed senior unsecured notes due
2017, Ba3 (LGD-4, 56%)
Ratings changed:
* American Axle & Manufacturing, Inc.
-- Speculative Grade Liquidity rating to SGL-1 from SGL-2
Loss Given Default Assessments revised:
* American Axle & Manufacturing, Inc. and American Axle &
Manufacturing Holdings, Inc.
-- Senior unsecured term loan and Senior Unsecured notes to
LGD-4, 56% from LGD-4, 57%
Ratings affirmed:
* American Axle & Manufacturing Holdings, Inc.
-- Corporate Family Rating, Ba3
-- Senior Unsecured Convertible Notes, Ba3
* American Axle & Manufacturing, Inc.
-- Senior Unsecured Term Loan, Ba3
-- Senior Unsecured Notes, Ba3
American Axle's revolving credit facility is not rated. The
last rating action was on Dec. 8, 2006, at which time all of the
company's ratings were confirmed after being placed under review
for downgrade on Oct. 5, 2006.
Headquartered in Detroit, MI, American Axle & Manufacturing --
http://www.aam.com/-- manufactures, engineers, designs and
validates driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed
products for light trucks, sport utility vehicles and passenger
cars. In addition to locations in the United States, AAM also
has offices or facilities in Brazil, India, China, England,
Germany, Japan, Mexico, Poland, Scotland and South Korea.
CONEXANT SYSTEMS: Gets US$98.1 Mil. from Acquicor-Jazz Merger
-------------------------------------------------------------
Conexant Systems Inc. has received US$98.1 million as a result
of the completion of the merger between Acquicor Technology Inc.
and Jazz Semiconductor Inc. The closing of the all-cash
transaction, valued at approximately US$260.1 million, was
reported [Tues]day by Acquicor and Jazz.
Conexant Systems plans to use the proceeds for general corporate
purposes, including debt retirement. The company also made an
equity investment of US$10 million in the merged company, which
was renamed Jazz Technologies Inc. Jazz Semiconductor retains
its name, and is now a wholly owned subsidiary of the newly
merged company. Conexant Systems disclosed that it owned
approximately 42% of Jazz Semiconductor.
"The proceeds from the Acquicor-Jazz transaction strengthen
Conexant's balance sheet and improve our liquidity," said Dwight
W. Decker, Conexant chairman and chief executive officer. "In
five short years, the Jazz team built an independent, world-
class specialty-process wafer foundry serving more than one
hundred customers across our industry. During that time,
Conexant and Jazz enjoyed a close and mutually beneficial
relationship, which we plan to continue. I'd like to
congratulate the Jazz team on their accomplishments and wish the
combined company continued success moving forward."
The carrying value of Conexant Systems' investment in Jazz
Semiconductor, Inc. was approximately US$55.5 million as of
Dec. 29, 2006.
About Conexant Systems
Headquartered in Newport Beach, CA, Conexant Systems, Inc. --
http://www.conexant.com/-- is a leading provider of integrated
circuits for the communications and broadband digital home
markets. The company has operations in Taiwan, China, India,
Japan, Korea, Bristol, and Germany.
The Troubled Company Reporter - Asia Pacific reported on Nov. 1,
2006, that Standard & Poor's Ratings Services raised its
corporate credit and other ratings on Conexant Systems Inc.,
reflecting improved liquidity and operating results. The
corporate credit rating was raised to 'B' from 'B-'. The
outlook was revised to stable from negative.
At the same time, Standard & Poor's assigned 'B+' senior secured
rating and '1' recovery rating to the company's proposed US$250
million senior secured floating rate notes due 2010, indicating
that investors can expect full (100%) recovery of principal in
the event of payment default. The rating is based on
preliminary offering statements and is subject to review upon
final documentation.
Also on Nov. 1, the TCR-AP reported that Moody's Investors
Service assigned a B1 rating to the senior secured floating rate
notes and a Caa1 rating to the corporate family of Conexant
Systems, Inc.
CORPORATION BANK: Board to Meet Today Over PD Business Takeover
---------------------------------------------------------------
Corporation Bank will hold a meeting today, Feb. 27. The board
of directors will discuss, among others, the bank's takeover of
the primary dealer business activity from its wholly owned
subsidiary, CorpBank Securities Ltd.
A licensed Primary Dealer, CorpBank Securities, functions as a
financial intermediary in the debt market in general and
government securities and money market securities in particular.
Headquartered in Mangalore, India, Corporation Bank --
http://www.corpbank.com/-- offers a range of deposit schemes
and loan products to customers. The various products offered by
the bank include Corp Pragathi savings bank account, current
account products and term deposits. Corporation Bank offers
housing loans, education loans, consumer loans for purchase of
consumer durables, loans against future rent receivables on
leased out building/premises, loans to purchase two wheelers and
four wheelers, loans against shares, loans for purchase of
medical and other such equipments, loan to acquire office
premises/building and furniture, personal loans, loans to women
to buy gold/jewelry, and loan against mortgage of property. It
also offers a range of non-resident Indian services, as well as
debit and credit cards.
Fitch Ratings gave Corp Bank a 'C' individual rating on June 1,
2005.
DHANALAKSHMI BANK: 4th Qtr. Net Profit Up 199% to INR31.1 Mil.
--------------------------------------------------------------
Dhanalakshmi Bank posted a net profit of INR31.1 million for the
three months ended Dec. 31, 2006, a sharp rise from the
INR10.4 million booked in the same period in 2005.
Dhanalakshmi's total income jumped 22% from INR582.1 million in
the quarter ended Dec. 31, 2005, to INR709.5 million in the last
quarter of 2006. Along with higher revenues came increased
expenses. The bank's total expenses rose 19% to
INR615.2 million in the December 2006 quarter from the
INR515.7 million in the December 2005 quarter.
The bank has much larger provisions for taxes in the December
2006 quarter -- INR17.2 million -- compared to the
INR6.9 million set aside in the corresponding quarter in 2005.
Other provisions and contingencies, however, decreased slightly
from INR49.1 million in the December 2005 quarter to INR46
million in the December 2006 quarter.
A copy of the bank's financial results for the quarter ended
Dec. 31, 2006, is available for free at:
http://ResearchArchives.com/t/s?1a59
Dhanalakshmi Bank -- http://www.dhanbank.com/-- is a small
'old' private bank (total assets as at FYE06: INR28.5 bil.) set
up in 1927 in the south Indian state of Kerala. The bank lends
primarily to the small- and medium-sized enterprises (more than
50% of the total advances). About 70% of its deposit and
branches are concentrated in Kerala.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 31, 2006, Fitch Ratings assigned the bank an Individual
rating of 'D/E' and a Support rating of '5'.
DHANALAKSHMI BANK: Hikes Benchmark Prime Lending Rate to 14.50%
---------------------------------------------------------------
Dhanalakshmi Bank has revised its Benchmark Prime Lending Rate
from 14.00% to 14.50% per annum with effect from Feb. 26, 2007.
Also effective starting Feb. 26 is the bank's increased rate of
interest on deposits for a term of 400 days from 8.5% to 9%, The
Hindu reports. The offer is available until March 31.
Dhanalakshmi Bank -- http://www.dhanbank.com/-- is a small
'old' private bank (total assets as at FYE06: INR28.5 bil.) set
up in 1927 in the south Indian state of Kerala. The bank lends
primarily to the small- and medium-sized enterprises (more than
50% of the total advances). About 70% of its deposit and
branches are concentrated in Kerala.
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 31, 2006, Fitch Ratings assigned the bank an Individual
rating of 'D/E' and a Support rating of '5'.
HDFC BANK: Signs MOU with Italy's Monte de Paschi di Siena
----------------------------------------------------------
HDFC Bank and Italy-based Banca Monte dei Paschi di Siena signed
a memorandum of understanding to offer banking services to each
other's corporate customers engaged in business activities in
their respective countries, a company press release states.
Reportedly the world's oldest bank, Banca Monte dei Paschi di
Siena is part of the MPS Group. This is the first tie-up in
India for the Siena-based bank, which is reportedly Italy's
fourth largest, and the world's oldest (established in 1472).
The bank operates in India through its representative office set
up in 2006 in Mumbai.
The two banks will assist their customers, particularly with
regard to commercial (i.e. imports and exports from and to
Italy/India including shipment services, payment orders etc.)
and financial transactions (i.e. investment activities, foreign
direct investments, pre-export financing, trade financing etc.)
between Italy and India. The services covered would include
remittances and bank guarantees.
Headquartered in Mumbai, India, HDFC Bank Limited --
http://www.hdfcbank.com/-- is a private sector bank that offers
a range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank
operates in three segments: retail banking, wholesale banking
and treasury services. The retail banking segment serves retail
customers through a branch network and other delivery channels.
The wholesale banking segment provides loans and transaction
services to corporate and institutional customers. The treasury
services segment undertakes trading operations on the
proprietary account, foreign exchange operations and derivatives
trading.
Fitch Ratings, on June 1, 2005, gave HDFC Bank a 'C' individual
rating.
VIJAYA BANK: Fitch Upgrades Individual Rating from 'D' to 'C/D'
---------------------------------------------------------------
Fitch Ratings, on Feb. 26, assigned Vijaya Bank's proposed
INR2,000 million subordinated lower tier 2 and INR3,000 million
upper tier 2 bonds programmes National Long-term 'AA+(ind)' and
'AA(ind)' ratings respectively. The rating of the upper tier 2
programme is notched below the bank's National Long-term
'AA+(ind)' rating in line with Fitch's methodology for National
ratings of such instruments.
The agency also upgraded the bank's Individual rating to 'C/D'
from 'D'. At the same time, VB's National Long-term rating with
Stable Outlook and INR2.5bn subordinated debt rating are
affirmed at 'AA+(ind)'. Its Support rating is affirmed at '4'.
The upgrade of the Individual rating reflects VB's improved
solvency ratios, which have remained above the system's medians
for the past three years. As with many other banks in India,
VB's non-performing loan ratios have consistently improved due
to focus on recovery, accelerated write-offs and higher loan
loss provisioning reserves (73.6% of gross NPLs in FY06 versus
median 60%). However, incremental additions to NPLs, especially
in the unseasoned retail business, have been higher than the
median for Indian banks. While VB has focused on improving its
risk management systems in this business to arrest this trend,
the bank still lags stronger government and private banks in
this regard.
The bank's historically higher-than-median net interest margins
showed a declining trend over the last two years due to lower
investment yields and increased borrowing costs. High marked-to-
market provisions on its investment portfolio further affected
profitability. This trend was moderately reversed in the nine-
month period ending December 2007 through lower market risk on
the investment portfolio, repricing of loans and increasing
focus on higher yielding products such as retail and SME
lending. Given the increased share of retail and SME loans in
its loan portfolio, the bank is likely to sustain margins at
current median levels. However, attainment of pre-FY05 margins
is unlikely given intense competition and the bank's
concentration in the south where low-cost deposit levels have
traditionally been lower than in north India.
The bank's total capital adequacy ratio has been declining
(11.88% in H107) due to increased loan growth. With the
government's shareholding (53.7%) close to the statutory minimum
of 51%, VB is almost entirely dependent on internal capital
generation and Tier 2 infusions to manage loan growth and also
prepare for Basel II implementation. However, at the bank's
current rate of loan growth, these are likely to be adequate to
meet its enhanced capital needs for the next 24-36 months while
maintaining its CAR above 11%.
Headquartered in the southern state of Karnataka, VB was
established in 1931 and nationalised in 1980. Historically a
lender to small and medium enterprises, the mid-sized bank has
focused on retail loans in the past 5 years and has expanded
beyond its traditional south Indian market.
=================
I N D O N E S I A
=================
BANK MANDIRI: 2006 Net Income Probably Tripled, Minister Says
-------------------------------------------------------------
PT Bank Mandiri's 2006 profit probably tripled as it set aside
less money to cover bad loans, Bloomberg News reports, citing a
statement made by State Enterprise Minister Sugiharto for a
Parliament hearing in Jakarta.
Specifically, Mr. Sugiharto estimates Bank Mandiri to have a net
income of IDR1.8 trillion (US$199 million) in 2006 as non-
performing loans declined, the report says.
According to Bloomberg data, the bank's net income in 2005 was
IDR603.4 billion.
Bank Mandiri said in an e-mailed statement to Bloomberg that net
income in 2006 probably rose to between IDR1.8 trillion and
IDR2.4 trillion.
The report says that the bank plans to auction by 2008 about
IDR15 trillion of bad loans owed by small borrowers to reduce
delinquent debt and increase profit.
Mr. Sugiharto in a statement said that Bank Mandiri's net bad
loans was 7.9% of total loans at the end of 2006, from 16.1 % in
2005, and that gross bad loans fell to 17.9% from 26.7%.
PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is
Indonesia's largest and best capitalized bank in terms of
assets, loans and deposits, and provides comprehensive financial
services to more than six million corporate and individual
consumers, as well as small and medium-sized enterprises in
Indonesia.
The Troubled Company Reporter - Asia Pacific reported on Feb. 6,
2007, that Moody's Investors Service revised the outlook to
positive from stable of PT Bank Mandiri's senior debt and
foreign currency long-term deposit ratings. The bank's short-
term deposit rating and long-term subordinated debt rating
continue to carry Moody's stable outlook while the bank
financial strength remains on review for possible upgrade.
Moody's detailed ratings for Bank Mandiri are:
-- senior/subordinated debt of Ba3/Ba3;
-- foreign currency long-term/short-term deposit of B2/Not
Prime; and
-- bank financial strength of E+.
Fitch Ratings has affirmed all the ratings of Bank Mandiri as
follows:
* Long-term foreign and local currency Issuer Default ratings
'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA(idn)',
* Individual 'D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
BANK RAKYAT: In Talks With Four Lenders to Buy Bank, Report Says
----------------------------------------------------------------
PT Bank Rakyat Indonesia (Persero) Tbk plans to acquire a bank
and merge it with its Islamic finance unit, Bloomberg News
reports, citing Bisnis Indonesia.
Bank Rakyat's President Director Sofyan Basir reportedly
disclosed that the bank is in talks with four lenders in and
outside Jakarta and will seek approval from shareholders in a
meeting in May.
Mr. Basir told Bisnis Indonesia that the bank plans to spend as
much as IDR1 trillion (US$110 million) this year to acquire a
bank and expand its branches.
Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- clients services
comprise Savings, Credits and Syariah. In addition, the bank
divides its financial and business services into three groups:
Business Services, consisting of bank guarantees, bank
clearance, automatic teller machines and safe deposit boxes;
Financial Services, consisting of bill payments, CEPEBRI,
INKASO, deposit acceptance, online transactions and transfers,
and Other Services, consisting of tax and fine payments,
donations, Western Union and zakat contributions. During the
year ended December 31, 2005, the bank had one branch office in
Cayman Islands and two representative offices in New York and
Hong Kong, respectively.
* * *
A Troubled Company Reporter - Asia Pacific report on Feb. 6,
2007, that Moody's Investors Service revised the outlook for the
long-term credit rating of PT Bank Rakyat Indonesia to positive
from stable. The short-term deposit rating and long-term
subordinated debt rating continue to carry a stable outlook
while the BFSR remains on review for possible upgrade.
Bank Rakyat'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-.
Fitch Ratings has affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk's as follows:
* Long-term foreign Issuer Default rating 'BB-',
* Short-term rating 'B',
* National Long-term rating 'AA+(idn)',
* Individual 'C/D', and
* Support '4'.
The Outlook for the ratings was revised to Positive from Stable.
FREEPORT-MCMORAN: To End Phelps Dodge's Copper-Hedging Practice
---------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., will put an end to Phelps
Dodge's policy of hedging on copper prices after it completes
the acquisition of the latter next month, Purchasing Magazine
reports.
As reported in the Troubled Company Reporter - Asia Pacific on
Dec. 13, 2006, Freeport-McMoRan agreed to buy Phelps Dodge for
about US$26 billion in cash and stock to create the world's
largest publicly traded copper company.
The acquisition is subject to Freeport and Phelps shareholder
approval, regulatory approvals and customary closing conditions,
TCR-AP relates.
Freeport Chief Executive Officer Richard Anderson told Reuters
in an interview that the company has no intention to hedge
copper.
However, the company would honor Phelps' existing contracts
through the end of 2007, Reuters quotes Mr. Anderson as saying.
But after that, no prices would be locked-in, he added.
Reuters, citing Mr. Anderson, says that copper hedging was never
Freeport's approach or its philosophy and no change is expected
since it is not a requirement of their financing.
Freeport expects completion of the Phelps Dodge acquisition in
March, Reuters says.
About Phelps Dodge
Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.
Phelps Dodge has operations in Venezuela, Thailand, China, the
Philippines and Japan, among others.
* * *
On June 26, 2006, Moody's Investors Services has placed Phelps
Dodge's Ba1 junior preferred shelf rating in CreditWatch for a
possible downgrade.
About Freeport-McMoRan
Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper
& Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries,
engages in the exploration, mining, and production of copper,
gold, and silver. The company has operations in Indonesia.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Nov. 24, 2006, that Standard & Poor's placed its 'BB-' corporate
credit and its other ratings on Freeport-McMoRan on
CreditWatch with positive implications and its 'BBB' corporate
credit and its other ratings on Phelps Dodge Corp. on
CreditWatch with negative implications. The actions followed
the report that Freeport entered into an agreement with Phelps
Dodge to acquire Phelps in a transaction valued at US$25.9
billion.
The TCR-AP stated on Oct. 18, 2006, Moody's Investors Service
confirmed Freeport-McMoran's Ba3 Corporate Family Rating in
connection with the rating agency's implementation of its ne
Probability-of-Default and Loss-Given-Default rating
methodology.
Dominion Bond Rating Service confirmed in April the rating of
Freeport-McMoRan Copper & Gold Inc. at BB (low). DBRS said the
trend is Stable.
GARUDA INDONESIA: Will Step Up Seat Capacity From Perth to Bali
---------------------------------------------------------------
In order to service the needs of West Australia's strong holiday
market to Bali, PT Garuda Indonesia will step up its seat
capacity from Perth to Denpasar.
The move follows a doubling of the airline's capacity to
Indonesia in December last year, when daily services to Jakarta
were introduced to supplement the existing daily Bali services.
From March 1, three of these Jakarta services will be redirected
to Bali instead to meet the growing demand for the popular
holiday destination.
The additional Bali flights will operate on Tuesdays, Thursdays
and Saturdays, with evening departures times from Perth
complimenting the daily morning flights and providing even
greater choice to Bali vacationers.
The direct Jakarta services depart on Mondays, Wednesdays,
Fridays and Sundays, also with an evening departure time.
The extra inbound flights depart Bali around 11:00 p.m. on
Tuesday, Thursday and Saturday, arriving in the early hours of
the following morning. Jakarta flights depart Cengkareng
Airport at 9:30 p.m. on Mondays, Wednesday, Friday and Sunday,
also arriving early hours of the following morning.
While timings will vary slightly, days of operation will remain
the same when new Northern Hemisphere Summer Schedules take
effect on March 25.
All services from Perth to Indonesia are operated with a B737-
800NG aircraft, which, from February, has been newly configured
to offer both Executive class and Economy.
"The re-establishment of a business class product from Perth
means that this premium service is now available from all Garuda
Indonesia's Australian ports including Darwin," says the
airline's Regional Manager, South West Pacific, Mr Suranto
Yitnopawiro
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves another 10 domestic routes. Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The airline was affected by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. Garuda is concentrating its efforts on repaying its debt
with foreign creditors under the European Credit Agency, which
were due on December 31, 2005.
The company, until November 2006, suffered an unaudited loss of
IDR390 billion, which was lower than the IDR672 billion,
recorded in the same period the year before, the report
discloses.
Garuda is currently undergoing debt restructuring. The Troubled
Company Reporter - Asia Pacific reported on December 20, 2006,
that in line with the airline's debt restructuring, it continues
to consistently pay debt interest.
Reuters reported that Garuda's outstanding debt, mostly owed to
the ECA, fell to US$749 million as of November 2006 from
US$794.5 million by the end of 2005.
GENERAL NUTRITION: To Sell US$425 Million in Bonds
--------------------------------------------------
General Nutrition Centers Inc. will help finance its US$1.7
billion all-cash buy-out by Ares Management LLC and Ontario
Teachers' Private Capital by selling US$425 million in bonds,
Pittsburgh Tribune-Review says citing a Standard & Poor's
Ratings Services report.
According to S&P, the bond sale will consist of US$300 million
in senior unsecured floating-rate debt due in 2014, and US$125
million in senior subordinated notes due in 2015, with both
portions below investment grade.
The Troubled Company Reporter - Asia Pacific reported on Feb.
14, 2006, that Ares Management and the Ontario Teachers'
Pension Plan signed a definitive agreement to acquire GNC Parent
Corp., the parent company of GNC, from Apollo Management L.P.
"GNC's enterprise value is estimated at US$1.65 billion for this
transaction," S&P's credit analyst Jackie Oberoi said.
Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary
of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of
health and wellness products, including vitamins, minerals,
herbal, and specialty supplements (VMHS), sports nutrition
products and diet products. The company sells its products
through a worldwide network of more than 5,800 locations
operating under the GNC brand name and operates in three
business segments: retail, franchise and manufacturing/
wholesale.
GNC's Asian operations include those in Indonesia and the
Philippines.
The Troubled Company Reporter reported on Feb. 15, 2007, that
Moody's Investors Service stated that the intention of Ares
Management and the Ontario Teachers' Pension Plan to buy GNC
Parent Corp. from Apollo Management has no immediate impact on
the company's ratings and/or stable rating outlook. The LBO
that was publicized on Feb. 9, 2007, is consistent with previous
disclosures that the current owners were exploring strategic
alternatives such as the sale of the company. The total
enterprise value of the transaction is approximately US$1.65
billion. As further particulars regarding the acquisition and
its financing plans become available, the ratings and/or outlook
could be adjusted.
These are the ratings of GNC:
-- Corporate family rating of B3;
-- Probability of Default Rating of B3;
-- Senior secured bank loan of Ba3 (LGD 1, 4%);
-- US$150 million of 8.625% senior notes (2011)
of B1 (LGD 2, 25%);
-- US$215 million of 8.5% senior subordinated notes (2010)
of B3 (LGD 4, 56%); and
-- US$425 million notes (2011) issued by GNC Parent Corp.
of Caa2 (LGD 5, 84%).
Standard & Poor's Ratings Services said its ratings on General
Nutrition Centers Inc., including the 'B' corporate credit
rating, remains on CreditWatch with negative implications, where
they were placed on Dec. 22, 2006, following the company's
announcement that it was no longer contemplating a public
offering, but that it would continue to evaluate strategic
alternatives, including a possible sale of the company that
would be financed with a substantial amount of additional debt.
HILTON HOTELS: Fights Accor for Newly Sold Macdonald Hotels
-----------------------------------------------------------
Hilton Hotels Corp. is competing with French rival Accor for the
contract to run 24 of the former Macdonald hotels acquired by
Moorfield Real Estate, the Scotsman reports.
Accor plans to convert the hotels to its Mercure brand, whereas
Hilton intends to establish its DoubleTree brand for the first
time in Europe through the hotels, the Scotsman states.
Moorfield, which purchased the properties for about GBP400
million, said upon acquisition that it would let Macdonald run
the hotels on an interim basis pending the result of a three-way
bidding process among "two international hotel companies" and
Macdonald, The Times relates.
About Accor
Based in Cedex, France, Accor -- http://www.accor.com/-- is a
global leader in corporate services that operates in nearly 100
countries with 160,000 employees. It offers to its individual
and corporate clients nearly 40 years of expertise in its two
core businesses, Hotels and Services to corporate clients and
public institutions.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotel
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Indonesia, Australia, Austria, India, Philippines and
Vietnam.
* * *
In February 2007, Standard & Poor's Ratings Services placed its
ratings on Hilton Hotels Corp., including the 'BB' corporate
credit rating, on CreditWatch with positive implications.
As reported in the Troubled Company Reporter - Asia Pacific
reported on Feb. 2, 2007, that Fitch Ratings has upgraded
the debt ratings for Hilton Hotels as follows:
--Issuer Default Rating to 'BB+' from 'BB';
--Senior credit facility to 'BB+' from 'BB'; and
--Senior notes to 'BB+' from 'BB'.
The ratings apply to its US$5.75 billion credit facility and
roughly US$2.6 billion of its senior notes. Fitch has also
revised Hilton's Rating Outlook to Positive from Stable.
Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corporation in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.
Additionally, Moody's revised and held its probability-of
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior Notes
with an average
rate of 8.1%
due 2007 - 2031 Ba2 Ba2 LGD4 53%
Chilean inflation
indexed note
effective rate
7.65% due 2009 Ba2 Ba2 LGD4 53%
3.375%
Contingently
convertible
senior notes
due 2023 Ba2 Ba2 LGD4 53%
Minimum Leases
Commitments Ba2 Ba2 LGD4 53%
Term Loan A
at adjustable
rates due 2011 Ba2 Ba2 LGD4 53%
Term Loan B
at adjustable
rates due 2013 Ba2 Ba2 LGD4 53%
Revolving loans
at adjustable
rates, due 2011 Ba2 Ba2 LGD4 53%
Senior unsecured
debt shelf Ba2 Ba2 LGD4 53%
Subordinate debt
Shelf Ba3 B1 LGD6 97%
Preferred B1 B1 LGD6 97%
TELKOMSEL: 3G Service Subscribers Reach 1.7 Mil. in January
-----------------------------------------------------------
PT Telekomunikasi Selular has 1.7 million users for its high-
speed phone network as of January, Bloomberg News reports citing
Investor Daily Indonesia.
According to the report, Telkomsel Director Alan Ho said that
the company started the service in Balikpapan, making it the
30th city with the company's service.
Telkomsel will build 1,500 new mobile-phone towers for the third
generation, or 3G, services this year, the report relates.
Bloomberg explains that 3G services allow mobile-phone users to
download video clips and surf the Internet at a faster speed.
PT Telekomunikasi Selular Indonesia
-- http://www.telkomsel.com/-- is the leading operator of
cellular telecommunications services in Indonesia by market
share. By the end of June 2006, Telkomsel had close to 29.3
million customers, which based on industry statistics
represented a market share of more than 50%.
Telkomsel provides GSM cellular services in Indonesia, through
its own nationwide Dual band 900/1800 MHz GSM network, an
internationally, through 259 international roaming partner in
153 countries as of June 2006. The company provides its
subscribers with the choice between two prepaid cards-simPATI
and kartuAs of a pre-paid simPATI service, or the post-paid
kartuHALO service, as well as a variety of value-added services
and programs.
A Troubled Company Reporter - Asia Pacific report that Fitch
Ratings, on August 18, 2006, upgraded PT Telekomunikasi
Selular's long-term foreign currency issuer default rating to
'BB' from 'BB-'.
=========
J A P A N
=========
FUJI HEAVY: Recalls 850 Subaru Cars Due to Flaws in Brake System
----------------------------------------------------------------
Fuji Heavy Industries Ltd. is recalling more than 850 Subaru
passenger vehicles over possible brake system flaws, the
Associated Press reports, citing a statement made by the company
last week.
The report says that two Subaru models -- the Impeza compact car
and the Forester wagon -- will be covered by the recall, but it
is not certain if any exports are included.
The AP cites a Kyodo News report as saying that the recall may
involve 4,100 cars that had been exported to the U.S., Europe
and Australia.
According to E-Kereta.com, Fuji Heavy says that the units
affected were only sold in Japan, and the following are chassis
or engine numbers of the units:
GD2-010556 - GD2-010678
GD3-007320 - GD3-007346
GDC-002233 - GDC-002249
GDD-002109 - GDD-002113
GG2-084138 - GG2-084602
GG3-050668 - GG3-050822
GGC-003680 - GGC-003690
GGD-002792 - GGD-002806
SG5-117715 - SG5-119036 (Forester)
According to E-Kereta, the defect concerns improper installation
of the air-filter case, which may vibrate excessively and cause
certain parts to rub against the brake hose, which is adjacent
to it. This may cause the hose to wear out and in extreme
cases, leak, causing brake failure.
About Fuji Heavy Industries
Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. --
http://www.fhi.co.jp/-- is a manufacturing company engaged in
the production, sale, repair and leasing of automobile and
transportation-related products.
Standard & Poor's Ratings Services lowered its long-term credit
rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based
on diminished prospects for a recovery in profitability and cash
flow over the near term along with intensifying competition in
the global auto industry.
NIKKO CORDIAL: To Seeks JPY3 Bil. in Damages From 3 Former Execs
----------------------------------------------------------------
Nikko Cordial Corp. has decided to file a legal action against
and seek a total of JPY3 billion in damages from three former
senior executives -- Nikko Cordial President Junichi Arimura;
former chairman of Nikko Principal Investments Japan Ltd.,
Hirofumi Hirano; and former executive managing director of Nikko
Cordial Securities Inc., Hajime Yamamoto -- for their
involvement in the accounting scandal surrounding the company,
The Japan Times states.
The Yomiuri Shimbun relates that Nikko Cordial was able to
determine that the three former executives did not strictly
adhere to the corporate law, which caused the scandal. The
report notes that the company decided to hold the former leaders
legally responsible for neglecting their duty as managers.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 1, 2007, that a special panel looking into the accounting
fraud at Nikko Cordial said that Mr. Yamamoto and Mr. Hirano
were directly involved in the falsification of the company's
consolidated earnings report for the year through March 2005.
The TCR-AP also stated that the special panel felt that then-
President Arimura, because he has a grave responsibility as a
top executive, may also be involved in the deal.
According to The Times, sources said that the new Nikko Cordial
management team wants to gain back the trust of the market as
soon as possible by holding the three former executives
responsible for the accounting fraud.
Nikko Cordial has lost customers after news of the accounting
scandal broke out, and the company has twice corrected its
earning results and was slapped with a JPY500 million fine, the
largest ever imposed by the Financial Services Agency, the
report recounts.
The Times says that Nikko Cordial will officially announce its
intention to seek damages soon.
The Tokyo Stock Exchange expects to decide whether to delist
Nikko Cordial stock around mid-March.
The Yomiuri Shimbun explains that Nikko Cordial's stock has been
transferred to the TSE's supervision post, but the company's
current managers are determined to free the firm from its stigma
by taking legal actions against the former executives in the
hopes that the company may avoid delisting.
About Nikko Cordial
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The Company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The
Asset Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore.
The company has a global network.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 13, 2007, that Fitch Ratings has downgraded Nikko Cordial's
Long- term foreign and local currency Issuer Default ratings to
'BBB-' from 'BBB', the Short-term foreign and local currency
IDRs to 'F3' from 'F2', and the Individual rating to 'C/D' from
'C'.
The TCR-AP reported on Dec. 22, 2006, that Fitch placed its
ratings on Nikko Cordial Corp. and Nikko Cordial Securities Inc.
on Rating Watch Negative following the decision announced on
Dec. 18 by the Tokyo Stock Exchange to place the shares of NCC
on its official watchlist pending the full investigation into
reported accounting breaches by the company.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating Nikko
Cordial for falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.
NIKKO CORDIAL: Citigroup May Raise Stake to 33.4%
-------------------------------------------------
Citigroup Inc. may increase its stake in Nikko Cordial Corp. to
33.4% or JPY330 million (US$2.73 million) to shore up the
Japanese brokerage after it got hit by an accounting scandal,
Bloomberg News reports, citing three people "with knowledge of
the talks," but who refused to be identified.
Bloomberg relates that Citigroup, currently owning 4.9% of Nikko
Cordial, may raise its stake to gain a veto power over Nikko
Cordial's management. The purchase, the report says, would cost
Citigroup about JPY380 billion (US$3.1 billion) based on Nikko's
market value.
According to Reuters, the NewYork-based bank has been widely
seen as a top candidate to buy Nikko Cordial should the Tokyo
Stock Exchange decide next month to revoke Nikko's share listing
over accounting problems at its merchant banking unit. Reuters,
citing Kyodo News, says that an increase in Citigroup's equity
stake in Nikko Cordial would put the third-biggest Japanese
brokerage house under Citigroup's wing.
Furthermore, Bloomberg explains that a bigger stake in Nikko
Cordial would give Citigroup a bigger presence in a brokerage
market, where firms including Mizuho Financial Group Inc.
compete for US$13 trillion of financial assets held by
individuals. The move would also help Citigroup gain a platform
to expand in Japan, as it seeks the TSE's approval to have its
shares traded locally, Bloomberg says.
Reuters, meanwhile, quotes Jiji as relating from a source that
even if Nikko were delisted, Citigroup would be prepared to take
it over, in which case Nikko could become a 100% unit of
Citigroup.
Nikko Cordial is not denying discussions concerning various
buyout options with Citigroup, Mizuho, and other firms,
Bloomberg adds.
About Citigroup
Headquartered in New York, Citigroup - http://www.citigroup.com/
- is today's pre-eminent financial services company, with some
200 million customer accounts in more than 100 countries. Other
major brand names under Citigroup's trademark red umbrella
include Citi Cards, CitiFinancial, CitiMortgage, CitiInsurance,
Primerica, Diners Club, The Citigroup Private Bank, and
CitiCapital.
About Nikko Cordial
Headquartered in Tokyo, Japan, Nikko Cordial Corporation --
http://www.nikko.jp/-- is mainly engaged in the provision of
financial services in the securities-related field. The Company
operates in four business segments. The Retail segment provides
consulting services for financial products management. The
Asset Management segment provides asset management services for
individual, corporate and foreign investors. The Investment
Banking segment provides corporate finance and capital market
services, mergers and acquisitions, advisory services, trading
services for institutional investors and research services. The
Merchant Banking segment is involved in the investment of
corporate issued stocks, bonds, securities-related financial
products and other financial products. Nikko Cordial has 62
consolidated subsidiaries. It has oversea operations in the
United States, the United Kingdom, Luxemburg and Singapore.
The company has a global network.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 13, 2007, that Fitch Ratings has downgraded Nikko Cordial
Corporation's Long- term foreign and local currency Issuer
Default ratings to 'BBB-' from 'BBB', the Short-term foreign and
local currency IDRs to 'F3' from 'F2', and the Individual rating
to 'C/D' from 'C'.
The TCR-AP reported on Dec. 22, 2006, that Fitch placed its
ratings on Nikko Cordial Corp. and Nikko Cordial Securities Inc.
on Rating Watch Negative following the decision announced on
Dec. 18 by the Tokyo Stock Exchange to place the shares of NCC
on its official watchlist pending the full investigation into
reported accounting breaches by the company.
As reported in the TCR-AP on Dec. 22, 2006, Japan's Securities
and Exchange Surveillance Commission began investigating Nikko
Cordial for falsifying its annual financial statements for the
business year ended March 30, 2005, declaring JPY14 billion in
false profits, and using them to procure money from the market.
SANYO ELECTRIC: Fitch Places 'BB+' Rating on Negative Watch
-----------------------------------------------------------
Fitch Ratings has placed Sanyo Electric Co., Ltd.'s 'BB+' Long-
term foreign and local currency Issuer Default and senior
unsecured ratings on Rating Watch Negative. The rating action
was triggered by the ongoing investigation into Sanyo by Japan's
Securities and Exchange Surveillance Commission. Fitch
understands that The SESC is undertaking a review of Sanyo's
past accounting practices. Although there is uncertainty
regarding the timing and outcome of the investigation, Fitch
considers that any negative conclusion by the authority will
likely affect Sanyo's creditworthiness. This has already been
adversely affected by a difficult operating environment,
notwithstanding the company's various turnaround efforts.
Although the agency believes that any negative cash flow impact
on the company resulting directly from the investigation may not
be material, a negative outcome from the investigation would
likely result in a further weakening of Sanyo's brand equity and
its operating performance. Fitch acknowledges that the company
has a limited level of flexibility within the current rating
category and, therefore, any material weakening of the credit
profile would likely result in a rating downgrade.
Sanyo is a major Japanese consumer electronics manufacturer,
with its business segmented into three groups, namely consumer,
commercial and components. For fiscal year ending 2006, the
company recorded sales of JPY2,484.3 billion, an operating loss
of JPY17.2 billion and a net loss of JPY205.7 billion.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Chin Dae-je Decides Not to Run for CEO
-----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 21, 2007, major shareholders of Hynix Semiconductor Inc.
will interview five candidates for the chief executive position
including former minister of information and communication Chin
Dae-je.
However, a report from The Korea Times, citing sources, says
that Mr. Chin has decided not to run for the CEO post.
The paper cites an aide saying that Mr. Chin will concentrate on
investment in his own tech startup, which he established after
quitting the ministry.
Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. --
http://www.hynix.com/-- is a semiconductor manufacturer.
Through a merger with LG Semiconductor in 1999, Hynix
Semiconductor now has the world's largest dynamic random access
memory chip production capacity as well as the industry's best
technical development capacity by fully exploiting synergies
resulting from the historical integration of both companies.
Standard & Poor's Ratings Services gave Hynix, and its U.S.
subsidiary, Hynix Semiconductor Manufacturing America Inc., a
'B+' long-term corporate credit rating.
KRISPY KREME: Completes US$160 Million Credit Refinancing
---------------------------------------------------------
Krispy Kreme Doughnuts, Inc. has closed a new senior secured
credit facility aggregating US$160 million, comprised of a US$50
million revolving credit facility and a US$110 million term
loan. The revolving facility has a six-year term ending in
February 2013. The term loan amortizes in quarterly
installments of US$275,000 beginning in April 2007 with a final
payment of the remaining term loan balance due in February 2014.
The revolving credit facility provides that up to US$30 million
of this facility may be used by the Company to obtain letters of
credit. The new facility may be retired without penalty at any
time.
Proceeds of the term loan were used to repay the approximately
US$107 million outstanding balance under the Company's prior
credit facility (which was retired), and to pay fees and
expenses related to the new financing and the retirement of the
prior facility. The Company will record a pretax charge of
approximately US$9.6 million in the quarter ending April 29,
2007, representing the prepayment fee related to the prior
facility and the write-off of unamortized deferred financing
costs related to the prior facility.
The new term loan bears interest at LIBOR plus 3.00% (subject to
a stepdown based on credit ratings), compared to LIBOR plus
5.875% (and which had been LIBOR plus 7.25% from Dec. 12, 2005
through Jan. 28, 2007) under the retired term loan.
The new credit facility will be filed as an exhibit to a current
report on Form 8-K, which will be made available on the
company's Web site promptly after its filing with the Securities
and Exchange Commission. Credit Suisse arranged the facilities
as sole bookrunner, sole lead arranger and administrative agent.
About Krispy Kreme
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed. There are currently
approximately 323 Krispy Kreme stores and 79 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea, and the United Kingdom.
The company generates revenues from three distinct sources:
company-owned stores, franchise fees and royalties from
franchise stores, and a vertically integrated supply chain.
Freedom Rings, LLC, company's franchisee in Eastern
Pennsylvania, Delaware and Southern New Jersey, filed on Oct.
16, 2005 for Chapter 11 protection with the Delaware Bankruptcy
Court (Bankr. D. Del. Case No. 05-14268). Following closure of
its four remaining stores, the Bankruptcy Court confirmed
Freedom Rings' plan of liquidation on April 20, 2006 and its
operations have been substantially wound up.
KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for
restructuring on April 15, 2005, pursuant to the Companies'
Creditors Arrangement Act with the Ontario Superior Court of
Justice. Krispy Kreme Doughnut Corp. agreed to pay
approximately US$9.3 million to two secured creditors to settle
its obligations with respect to its guarantees pertaining to
certain indebteness and related equipment agreements. In
exchange, a newly formed subsidiary of Krispy Kreme Doughnut
Corp. acquired substantially all of the operating assets of
KremeKo, as authorized by the Ontario Court.
Glazed Investments, LLC, company's franchisee in Colorado,
Minnesota and Wisconsin, filed for Chapter 11 protection on Feb.
3, 2006 (Bankr. N.D. Ill. Case No. 06-00932). Subsequent to
this filing, Glazed Investments sold its remaining 12 Krispy
Kreme stores to Western Dough, Krispy Kreme's area developer for
Nevada, Utah, Idaho, Wyoming and Montana, for appoximately US$10
million. This sale was facilitated by the Chapter 11 filing, by
permitting the assets to be sold free and clear of all liens,
claims and encumbrances.
Under the plan of liquidation filed by Glazed Investments, it
will be dissolved after distribution of the sale proceeds to
creditors, and Krispy Kreme will not receive any payment on
account of its ownership in Glazed Investments. While a
substantial portion of Glazed Investments' debts were retired
from the sale proceeds and liquidation of other assets, Krispy
Kreme paid approximately US$1 million of its franchisee's debt
which was guaranteed by it.
KRISPY KREME: Becomes Current in SEC Filings
--------------------------------------------
Krispy Kreme Doughnuts Inc. has filed with the United States
Securities and Exchange Commission its Form 10-Q for the fiscal
quarter ended Oct. 31, 2004, the third quarter of its 2005
fiscal year.
The filing follows the filings of the company's Form 10-Qs for
the first, second and third quarters of fiscal 2007, filed on
Dec. 22, 2006, Jan. 19, 2007, and Jan. 19, 2007, respectively.
This brings the company current with all of its SEC periodic
reporting obligations. The filings can be found on the SEC's
website at http://www.sec.gov/
About Krispy Kreme
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed. There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.
Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.
Freedom Rings operates six out of the approximately 360 Krispy
Kreme stores and 50 satellites located worldwide. The Company
filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268). M. Blake Cleary, Esq., Margaret B.
Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtor in its
restructuring efforts. When the Debtor filed for protection
from its creditors, it estimated US$10 million to US$50 million
in assets and debts.
Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932). The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts. When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.
KremeKo Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings. The Monitor
is attempting to sell the KremeKo business.
The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.
MAGNACHIP SEMICONDUCTOR: To Defend Against Pixelplus Lawsuit
------------------------------------------------------------
In a statement posted at its Web site, MagnaChip Semiconductor
Ltd. says that it will fight the lawsuit filed by Pixelplus
(NASDAQ; PXPL) alleging defamation and tortious business
interference. MagnaChip asserts that the lawsuit is baseless.
MagnaChip also notes that it will continue to pursue the
infringement action it filed early this year against Pixelplus
on three additional patents and intends to appeal the recent
ruling by the Seoul Central District Court on the patents filed
previously.
As reported in the Troubled Company Reporter - Intellectual
Property Reporter on Jan. 19, 2007, MagnaChip has filed three
new lawsuits against Pixelplus Co. Ltd. in the Seoul Central
District Court in November 2006 over the infringement of two
patents each referring to photo diodes and sensors.
According to the TCR-IPD, the Intellectual Property Tribunal of
the Korea Intellectual Property Office invalidated these two
patents in September 2006. MagnaChip also filed an appeal in
November 2006 on one item of the photo diode patent did not
appeal the decision on the sensor patent.
About Pixelplus
Based in Kyonggi, South Korea, Pixelplus Co. Ltd. designs and
markets image sensor chips used in mobile-phone cameras. The
Company offers both complementary metal-oxide semiconductor
(CMOS) and application-specific integrated circuit (ASIC)
designs.
About MagnaChip Semiconductor
MagnaChip Semiconductor -- http://www.magnachip.com/-- designs,
develops, and manufactures mixed-signal and digital multimedia
semiconductors addressing the convergence of consumer
electronics and communications devices. MagnaChip also provides
wafer foundry services utilizing CMOS high voltage, embedded
memory, analog and power process technologies for the
manufacture of IC's for customer-owned designs. MagnaChip has
world-class manufacturing capabilities and an extensive
portfolio of approximately 8,500 registered and pending patents.
As a result, MagnaChip is a valued partner in providing leading
technology solutions to its customers worldwide.
* * *
Moody's Investors Service, on Aug. 8, 2006, downgraded MagnaChip
Semiconductor LLC's corporate family rating to B1 from Ba3. At
the same time, Moody's has downgraded the following ratings of
debt issued by MagnaChip Semiconductor Finance Co (US) and
MagnaChip Semiconductor S.A.:
* US$100 million 5-year senior secured credit revolver to Ba3
from Ba2
* US$500 million aggregate floating- and fixed-rate second-
priority senior secured notes due 2011 to B1 from Ba3
* US$250 million senior subordinated notes due 2014 to B3
from B2
On Feb. 1, 2007, Moody's placed the ratings on review for
possible downgrade.
On Feb. 13, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating on MagnaChip to 'B' from 'B+'. At the
same time, S&P lowered the rating on MagnaChip's senior
unsecured debt to 'B' from 'B+' and rating on its senior
subordinated notes due 2014 to 'CCC+' from 'B-'. The outlook on
the long-term corporate credit rating is negative.
===============
M A L A Y S I A
===============
COMSA FARMS: BD Dutchman Demands Payment of EUR209,357
------------------------------------------------------
Comsa Farms Bhd received on Feb. 23, 2007, a statutory notice
from BD Dutchman Intl. GmbH asking for payment of goods sold and
delivered to the company.
The notice specifically states that:
1. Comsa is indebted to BD Dutchman for a sum of
EUR209,357.25, comprising principal amount of
EUR72,937.54 and interest charges of EUR136,419.71, due
on May 31, 2006; and
2. Comsa is now required to pay BD Dutchman, and if Comsa
fails to pay or to secure the debt within three weeks
from the date of the notice, Comsa will be deemed at
default and wind-up proceedings will be commenced.
Comsa, meanwhile, maintains that it had been granted a
restraining and stay order on any legal actions effective from
Nov. 3, 2006, to March 2, 2007, by the High Court of Malaya at
Kuala Lumpur.
* * *
Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in
the wholesale and retail of fresh and frozen chicken products,
meat and foodstuff. Its other activities include livestock,
aqua feed milling, poultry feeding, hatchery operations, and
layer farming.
On April 10, 2006, the company was declared a Practice Note 17
company by Bursa Malaysia due to a stockholders' equity deficit.
As an affected listed issuer, Comsa Farms is required to submit
a plan to regularize its financial condition.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 16, 2007, the company registered US$50.74 million in total
assets and a US$25.55-million shareholders' equity deficit.
DATAPREP HOLDINGS: Posts MYR426,000 Profit in Dec. 2006 Quarter
---------------------------------------------------------------
Dataprep Holdings Bhd posted a net profit of MYR426,000 on
MYR39.61 million of revenues in the third quarter ended Dec. 31,
2006, as compared with the MYR490,000 net profit on
MYR22.55 million of revenues in the same quarter in 2005.
As of end-November 2006, the company's balance sheet showed
current assets of MYR75.15 million and current liabilities of
MYR69.92 million.
Dataprep Holdings' total assets as of end-November 2006 reached
MYR85.54 million and total liabilities amounted to
MYR70.16 million. Shareholders' equity in the company
aggregated to MYR15.38 million.
A full text-copy of the company's financial statement for the
third quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/dprep-3q-results.xls
* * *
Headquartered in Petaling Jaya, Dataprep Holdings Berhad is an
investment holding company that provides management services to
its subsidiary companies. The company provides a spectrum of
information, communication and technology services from business
and technology consulting, systems and network integration,
software developments to managed services, e-business and
application services.
The company was classified as an affected listed issuer of the
Amended PN 17 category of the Bursa Malaysia Securities Bhd on
May 5, 2006. Based on the unaudited consolidated quarterly
results of the company for the financial quarter ended Dec. 31,
2005, shareholders' equity, amounting to MYR12.171 million, is
less than 25% of the issued and paid-up share capital of
MYR76.118 million and is also less than the minimum issued and
paid-up share capital of MYR40.0 million for companies listed on
the Second Board of Bursa Securities.
HALIFAX CAPITAL: Incurs MYR929,000 Net Loss in 4th Quarter 2006
---------------------------------------------------------------
Halifax Capital Bhd incurred a net loss of MYR929,000 on
MYR2.29 million of revenues in the fourth quarter ended Dec. 31,
2006, as compared with a net loss of MYR555,000 on
MYR3.09 million of revenues in the same quarter in 2005.
As of end-December 2006, the company's balance sheet showed
strained liquidity with current assets of MYR3.25 million
available to pay current liabilities of MYR6.28 million.
Halifax's total assets as of Dec. 31, 2006, amounted to
MYR19.63 million and total liabilities reached MYR13.64 million,
resulting to a shareholders' equity of MYR5.98 million.
A full text-copy of the company's financial statement for the
fourth quarter period ended Dec. 31, 2006, can be viewed for
free at:
http://bankrupt.com/misc/halifax-4q-results.xls
* * *
Headquartered in Kuala Lumpur, Malaysia, Halifax Capital Berhad
-- fka Setron (Malaysia) Berhad -- is principally engaged
investment holding, and assembly and sale of electrical and
electronic products. Setron Sales & Service (M) Sdn. Bhd., the
Company's wholly owned subsidiary, is engaged in the
distribution of electrical and electronic products.
The company is considered an affected listed issuer under
Practice Note 17 as the its shareholders' equity on consolidated
basis is less than 25% of the issued and paid-up share capital
of the listed issuer and such shareholders' equity is less than
the minimum issued and paid up share capital.
MALAYSIA AIRLINES: To Set Up Services for Premium Travel Market
---------------------------------------------------------------
Malaysia Airlines is planning to set up a new domestic and
regional operation to service premium travel market, Business
Times reports.
Codenamed "Project Firefly", sources told the Business Times
that the airline will use Penang Bayan Lepas International
Airport as its base to service holiday destinations such as
Langkawi, Phuket in Thailand and Medan in Indonesia, as well as
domestic destinations, namely Kota Baru and Kuala Terengganu.
Sources told the paper that the airline will use its two Fokker
50s, owned by MAS' parent company Penerbangan Malaysia Bhd, for
the operation which is scheduled to begin on April 1.
Fly Asian Xpress currently uses Malaysia Airlines' other eight
F50s for the rural air services in Sabah and Sarawak, Business
Times' sources said.
Aviation industry sources told Business Times that MAS has
already submitted a proposal for the new operation to the
Transport Ministry. The airline is also understood to have re-
deployed some of its F50 pilots from Sabah and Sarawak to
Penang.
The paper recounts that transport Minister Datuk Seri Chan Kong
Choy said that a new local airline will operate from Penang and
is in the final stage of seeking the required permits. The
minister did not identify the airline's name, Business Times
says.
Acdording to sources, the new operation will complement MAS'
existing service between Penang and Medan, which is using the
B737 daily. It will also enable MAS to satisfy the huge demand
for flights in Penang-Kota Baru and Penang- Kuala Terengganu
sectors.
"The new service will not eat into MAS' market share, despite
the fact that the airline is already flying to these
destinations," a source told Business Times.
However, aviation analysts told Business Times that they were
concerned as to how the new service plans to compete with low-
cost carrier AirAsia, which is also flying the routes.
One analyst told the paper that the "operational cost involved
is also another factor to consider. Comparatively, I think the
Fokker 50 is less efficient compared to the A320s or 737s."
* * *
Headquartered in Selangor, Malaysia, Malaysia Airlines --
http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with airlines
partners.
The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, due to high fuel and operating costs, and
unprofitable routes. In late February 2006, it unveiled a
radical rescue plan to raise MYR4 billion to stay afloat and
return to profitability by 2007. Under the restructuring plan,
the airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
whistle-blowing and stop corporate sponsorship.
PROTON HOLDINGS: Expects to Incur Net Loss in Third Quarter
-----------------------------------------------------------
Proton Holdings Bhd may announce a further loss in the third
quarter ended December 2006 based on the overall weak car sales
quarter-on-quarter last year, Business Times reports, citing a
Kuala Lumpur-based analyst.
The paper recounts that Proton fell deeper into the red in the
three months to September 2006 as net loss widened to
MYR250.3 million from MRY154.3 million a year earlier, as lack
of new models and consumer confidence on the overall market
dampened sales.
In addition, the company's revenue for the second quarter fell
29% to MYR1.27 billion, the third consecutive quarter-on-quarter
sales decline, Business Times notes.
However, sectoral analysts anticipate better performance in the
years ahead as Proton ties up with a strategic partner, the
paper says.
Analysts told Business Times that the entry of a global carmaker
as its strategic partner would mark a new phase for Proton as
its value and quality standards are set to benefit.
Moreover, Kuwait Finance House Research noted that for the first
three quarters of fiscal year ended March 2006, Proton's net
loss was MYR80.2 million compared with a net profit of
MYR506.3 million in the previous corresponding period.
"The near-term outlook for Proton is rather uninspiring amid the
uncertainty over its market share, nonetheless, we view Proton
as a trading buy with target price at this current juncture at
MYR7.30," OSK Research told the paper.
Furthermore, OSK Research has forecast Proton to incur a net
loss of MYR14.3 million for the year ending March 2007 against a
net profit of MYR25.8 million in 2006.
Despite Proton's recent launch of the Satria Neo, it has failed
to boost sales volume, analysts told the paper. Total sales
volume fell 33% to about 115,706 units last year, pushing the
carmaker's market share down from 31% to 23.6% in 2005.
Meanwhile, Business Times relates that across the industry, the
Malaysian Automotive Association sales volume declined 11% in
2006 to about 490,768 units, the worst slide in nearly a decade.
* * *
Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan
Otomobil Nasional Berhad or Proton Holdings Berhad --
http://www.protonedar.com.my/-- is engaged in manufacturing,
assembling, trading and provision of engineering and other
services in respect of motor vehicles and related products. Its
other activities include property development, trading of steel
and related products, engine and technologies research,
development of automotive related technologies, investment
holding, importation and distribution of motor vehicles, related
spare parts and accessories, holds intellectual property,
provides engineering consultancy, operates single make race
series and carries out specific engineering contracts. The
Group's operations are carried out in Malaysia, England,
Australia, Socialist Republic of Vietnam and the United States
of America.
Proton was reported to be among Malaysia's worst performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss. It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner. The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.
As reported by the Troubled Company Reporter - Asia Pacific on
Dec. 6, 2006, Proton Holdings' fiscal second-quarter loss
widened as lower revenue and higher expenses pressured
Malaysia's national carmaker. Based on the company's financial
report for the three months ended Sept. 30, 2006, Proton had a
loss of MYR250.3 million compared with a loss of
MYR154.3 million in the same quarter a year earlier.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner.
SINORA INDUSTRIES: Posts MYR514,000 Net Loss in 4th Quarter 2006
----------------------------------------------------------------
Sinora Industries Bhd incurred a net loss of MYR514,000 on
MYR1.09 million of revenues in the fourth quarter ended Dec. 31,
2006, as compared with a net loss of MYR624,000 on
MYR3.90 million of revenues in the same period of 2005.
As of December 31, 2006, the company's current assets amounted
to MYR27.09 million and current liabilities aggregated to
MYR447,000.
Sinora's total assets as of end-December 2006 reached
MYR31.36 million and total liabilities amounted to MYR447,000,
resulting to a shareholders' equity of MYR30.92 million.
A full text-copy of the company's financial report for the
fourth quarter ended Dec. 31, 2006, can be viewed for free at:
http://bankrupt.com/misc/sinora-4q-2006.doc
* * *
Headquartered in Kota Kinabalu, Malaysia, Sinora Industries
Berhad was engaged in the manufacture and sale of plywood, sawn
timber, veneer and molded wood products. Its other activities
included investment holding and the provision of management
services. Operations of the Group are carried out in Malaysia,
Japan, Korea, the United States of America, Europe and other
Asian countries.
Bursa Malaysia Securities Berhad, on July 8, 2005, classified
Sinora Industries Berhad as an affected listed issuer pursuant
to Practice Note No. 17/2005, in view that the company has
effectively ceased all its business operations.
TENAGA NASIONAL: Extends CEO's Term for Another Three Years
-----------------------------------------------------------
Tenaga Nasional Bhd has extended the term of its chief executive
officer, Che Khalib Mohamad Noh, for three more years from
July 1, 2007, Reuters reports.
According to Reuters, Tenaga made the announcement regarding its
CEO's term extension on Feb. 23.
* * *
Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad
-- http://www.tnb.com.my/-- is engaged in the generation,
transmission, distribution and sale of electricity. The Company
also manufactures, sells and repairs transformers and
switchgears. It is also involved in provision of project
management, consultancy, engineering works, contracting,
trading, risk management, risk surveys, insurance, research and
development, property management, energy project development and
investment holding services. It also undertakes repairs and
maintenance of motor vehicles. The Group operates in Malaysia
and Mauritius.
The Company is currently undertaking liability management
exercises, which are expected to extend the Company's debt
maturity profile and reduce refinancing risk.
Moody's Investor Service gave the Company a 'Ba' rating due to
its relatively high financial leverage and significant PPA
obligations.
=====================
N E W Z E A L A N D
=====================
AIR NEW ZEALAND: Sir Ron Carter to Retire from Board on March 31
----------------------------------------------------------------
Air New Zealand's longest serving Director, Sir Ron Carter, will
retire from the airline's Board of Directors on March 31, 2007.
Chairman John Palmer says Sir Carter has made an outstanding
contribution to the airline since he joined the Board in July
1998.
Mr. Palmer says "Sir Ron's background in engineering and
Chairmanship of the New Zealand Civil Aviation Authority have
enabled him to make a significant contribution in the area of
flight operations and safety as Chairman of Air New Zealand's
Safety Committee."
Meanwhile, Mr. Palmer further says that given the recent
appointment of Jim Fox to the Board, there are no plans for
further appointments.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.
As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer
rating on Air New Zealand Limited after the airline announced
its annual results for FY2005. Air NZ's rating reflected its
dominant position in the New Zealand domestic market, with
around 80% market share, and the profitability of domestic
operations following their restructuring to a low-cost network
model. Also supporting Air NZ's rating was its solid liquidity
position, with cash balances of NZ$1.071 billion held as at
June 30, 2005.
However, while Air NZ has a solid position in New Zealand and
other parts of the international network are performing well,
intense competition on trans-Tasman routes has resulted in it
being unprofitable for Air NZ. International competition also
limits Air NZ's ability to expand. Its management is also aware
of the airline's vulnerability to external shocks and the
actions of key competitors.
AIR NEW ZEALAND: Reveals Simplified Fare Structure for Canada
-------------------------------------------------------------
Air New Zealand has revealed a revised fare structure for
Canada, moving away from the industry's typically elaborate
international pricing model. This change, which is based on the
highly successful introduction of an updated pricing system for
the U.S. in 2005, directly follows Air New Zealand's
announcement of a new non-stop route between Vancouver and
Auckland. Air New Zealand's revised fare structure set an
industry standard for streamlining the booking process in the
U.S. and now, with the company's new Canadian route, benefits
can be extended to all customers throughout U.S.A. and Canada.
Changes to Air New Zealand's long-haul pricing model for Canada
will be implemented on Feb. 22, 2007, and will remove many of
the fare restrictions traditionally associated with
international travel. In addition, the new structure is more
flexible and minimizes the often convoluted terms and conditions
long-used by airlines and maligned by travel agents and
consumers. Along with these changes, Air New Zealand will also
offer more travel flexibility with:
(a) Class combinations: Travelers will be able to combine
classes, allowing them to travel in a different class
each way. These fares may be combined with each other on
half-round trips. The most restrictive rule will apply
to the round trip; and
(b) Pacific Island stopover options: When customers fly from
Vancouver to New Zealand via Los Angeles, they have the
option to stop over in the Pacific Islands for a minimal
fee. Optional Pacific Island stopovers include Fiji, the
Cook Islands, Tonga or Western Samoa at $150 per stop.
Other features include add-on fares for select Canadian and New
Zealand cities. Group bookings can still be made through Air
New Zealand's Group Desk.
These updates are part of several upgrades the airline has
recently made to its international services. The new non-stop
service between Vancouver and Auckland will begin in November
2007 and significantly reduce travel time, with all flights on
Air New Zealand's new fleet of Boeing 777-200ER aircraft.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.
As reported in the Troubled Company Reporter - Asia Pacific on
Sept. 2, 2005, Moody's Investors Service affirmed its Ba1 issuer
rating on Air New Zealand Limited after the airline announced
its annual results for FY2005. Air NZ's rating reflected its
dominant position in the New Zealand domestic market, with
around 80% market share, and the profitability of domestic
operations following their restructuring to a low-cost network
model. Also supporting Air NZ's rating was its solid liquidity
position, with cash balances of NZ$1.071 billion held as at
June 30, 2005.
However, while Air NZ has a solid position in New Zealand and
other parts of the international network are performing well,
intense competition on trans-Tasman routes has resulted in it
being unprofitable for Air NZ. International competition also
limits Air NZ's ability to expand. Its management is also aware
of the airline's vulnerability to external shocks and the
actions of key competitors.
AWHITU PENINSULA: Creditors to Must File Claims by March 1
----------------------------------------------------------
The creditors of Awhitu Peninsula Engineering Ltd are required
to file their claims by March 1, 2007, and establish any
priority claims they may have.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the company will make.
The liquidator can be reached at:
John Michael Gilbert
c/o C & C Strategic Limited
Private Bag 47927
Ponsonby, Auckland
New Zealand
Telephone:(09) 376 7506
Facsimile:(09) 376 6441
BEHEMOTH CORP: Court Hears Liquidation Petition
-----------------------------------------------
The High Court of Christchurch heard the petition to liquidate
the operations of Behemoth Corporation Ltd on Feb. 26, 2007.
The Commissioner of Inland Revenue filed the petition on
Dec. 13, 2006.
The CIR's solicitor can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception, 518 Colombo Street
(PO Box 1782), Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
CRUSADER FISHERIES: CIR Seeks to Liquidate Company
--------------------------------------------------
On Dec. 1, 2006, Crusader Fisheries Ltd filed before the High
Court of Nelson a liquidation petition against Crusader
Fisheries Ltd.
The petition will be heard on March 1, 2007, at 10:00 a.m.
The CIR's solicitor can be reached at:
Julia Dykema
Inland Revenue Department
Technical and Legal Support Group
South Island Service Centre
Ground Floor Reception, 518 Colombo Street
(PO Box 1782), Christchurch 8140
New Zealand
Telephone:(03) 968 0809
Facsimile:(03) 977 9853
LITTLE LABELS: Court to Hear Liquidation Petition on March 5
------------------------------------------------------------
The High Court of Wellington will hear a liquidation petition
filed against Little Labels NZ Ltd on March 5, 2007, at 10:00
a.m.
Accident Compensation Corp. filed the petition on Jan. 23, 2007.
Accident's solicitor can be reached at:
Dianne S. Lester
Maude & Miller
2nd Floor, McDonald's Building
Cobham Court (PO Box 50555 or DX SP 32505)
Porirua City
New Zealand
OMFINANCIAL: S&P Assigns BB+ Credit Rating with Stable Outlook
--------------------------------------------------------------
On Feb. 26, 2007, Standard & Poor's Ratings Services said that
it had assigned its 'BB+' long-term counterparty credit rating
on OMFinancial Ltd. on its robust debt-free financial profile,
strong liquidity position, and low counterparty risk. The
outlook is stable.
At March 31, 2006, OMF, a niche brokerage company servicing
retail-trading clients in New Zealand, had total assets of
NZ$81.1 million. While OMF was formed in 2002, its history
extends over more than 20 years, with prior owners including Ord
Minett, Westpac Banking Corp., and JP Morgan Chase. Its primary
business focus is the provision of trading services to the high-
net-worth retail market. The company is majority owned by staff
at 60%, and 40% owned by private equity investors.
"The rating assigned also reflects OMF management's low risk
appetite for financial leverage and trading risk," said Standard
& Poor's credit analyst Craig Bennett. "Furthermore, OMF
manages its exposure to counterparty risks well, both in the
origination and execution of trades."
However OMF's niche market position in the competitive New
Zealand market is a major rating constraint, affecting its
earnings diversity and resilience. In addition, its focus on
high-net-worth clients results in a greater sensitivity to
reputational or franchise risks. Nevertheless, Standard & Poor's
believes that OMF is able to continue differentiating itself in
the New Zealand derivative-brokerage market and maintain a
stable rating outlook.
PCW INVESTMENTS: Creditors to Prove Debts by March 21
-----------------------------------------------------
The creditors of PCW Investments Ltd are required to prove their
debts by March 21, 2007, or they will be excluded from the
company's distribution.
The Troubled Company Reporter - Asia Pacific previously reported
that the company faced liquidation proceedings on Feb. 8, 2007.
The Liquidators can be reached at:
John Robert Buchanan
Callum James Macdonald
Buchanan Macdonald Limited
Chartered Accountants
PO Box 101993
North Shore Mail Centre, Auckland
New Zealand
Telephone:(09) 441 4165
Facsimile:(09) 441 4167
POGO PRODUCING: Sale Plan Spurs S&P's Developing CreditWatch
------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating on oil and gas exploration and production company
Pogo Producing Co. on CreditWatch with developing implications.
The rating action follows Pogo's report that it will explore
strategic alternatives, including sale of assets or the company.
As of Dec. 31, 2006, Houston, Texas-based Pogo had US$2.3
billion of debt outstanding.
The CreditWatch listing reflects the potential for ratings to be
raised, lowered, or affirmed in the near term.
"A sale or merger carries the risk that the buyer or resulting
merged company will have a lower rating," said Standard & Poor's
credit analyst.
"Alternatively, we could raise the ratings could if Pogo is
acquired by a company with a higher rating that guarantees
Pogo's debt."
Standard & Poor's also said that the CreditWatch listing
reflects the risk that the company may pursue large share
repurchases or special dividends funded with debt or asset sale
proceeds that could result in a company with significantly
increased financial leverage or a smaller asset and production
base.
Headquartered in Houston, Texas, Pogo Producing Company (NYSE:
PPP) -- http://www.pogoproducing.com/-- explores for, develops
and produces oil and natural gas. Pogo owns approximately
4,000,000 gross leasehold acres in major oil and gas provinces
in North America, 3,119,000 acres in New Zealand and 1,480,000
acres in Vietnam.
PRIMED PAINTING: Court Appoints Joint Liquidators
-------------------------------------------------
On Feb. 5, 2007, the High Court of Wellington appointed Iain
Bruce Shephard and Christine Margaret Dunphy as joint and
several liquidators of Primed Painting Services Ltd.
According to the Troubled Company Reporter - Asia Pacific, the
High Court of Wellington heard the liquidation petition against
the company on that day. Accident Compensation Corp. filed the
petition.
The Joint Liquidators can be reached at:
Iain Bruce Shephard
Christine Margaret Dunphy
Shephard Dunphy Limited
Level 2, Zephyr House
82 Willis Street, Wellington
New Zealand
Telephone:(04) 473 6747
Facsimile:(04) 473 6748
RD1 HOLDINGS: Creditors Must File Claims by March 8
---------------------------------------------------
The High Court of Auckland appointed Henry David Levin and Barry
Phillip Jordan as joint and several liquidators of RD1 Holdings
Ltd on Feb. 8, 2007.
Accordingly, the liquidators fixed March 8, 2007, as the last
day for creditors to prove their claims and to establish any
priority claims they may have against the company.
The Joint Liquidators can be reached at:
Henry David Levin
Barry Phillip Jordan
PPB McCallum Petterson
Level 11, Forsyth Barr Tower
55-65 Shortland Street, Auckland
New Zealand
Telephone:(09) 336 0000
Facsimile:(09) 336 0010
SMOOTH CREW: Creditors' Proofs of Claim Due on June 8
-----------------------------------------------------
The creditors of Smooth Crew Ltd are required to submit their
proofs of claim by June 8, 2007.
As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Auckland heard the liquidation petition against
the company on Feb. 8, 2007. Natalie Mary Hope filed the
petition.
The joint liquidators can be reached at:
Vivian Judith Fatupaito
Richard Dale Agnew
PricewaterhouseCoopers
Level 8, PricewaterhouseCoopers Tower
188 Quay Street (Private Bag 92162), Auckland
New Zealand
Telephone:(09) 355 8000
Facsimile:(09) 355 8013
SOLUTION DYNAMICS: Reports NZ$116,000 Surplus in First-Half
-----------------------------------------------------------
Solution Dynamics has reported satisfactory progress in
rebuilding the business during the first six months ending
Dec. 31, 2006, achieving a modest half-year surplus and
progressing on schedule with its production platform upgrade and
back to basics service strategy, the company said in a
disclosure with the New Zealand Stock Exchange.
"First half results are in line with expectations," said Chief
Executive Nelson Siva in the Half Yearly Report for the period
to Dec. 31, 2006.
Highlights for the Period include:
* Net Profit after Tax before Amortization NZ$116,000 versus
half year loss in corresponding period;
* EBITDA up 8% to NZ$479,000;
* Group revenue down 8% to NZ$4.98 million as low margin
print sales decrease and focus shifts to higher margin core
mailhouse business;
* Planned investment of NZ$850,000 in upgrading production
platform on track for completion in second half;
* New executive leadership and dedicated sales, marketing and
business development team in place; and
* Strategic alliances in New Zealand and Australia extending
reach and range of offering.
The company attributed the surplus of NZ$116,000 before
amortization for the period to:
(a) growing existing customer business,
(b) improving production efficiencies, and
(c) disposal of surplus equipment.
"The back to basics strategy and the focus on core business
enabled us to increase mail house revenues by 12% which
contributed towards a 5% growth in gross margin," Mr. Siva said,
adding that the 8% decrease in total revenues was a result of a
drop in sales activity in the low margin print segment.
Solution Dynamics is investing NZ$850,000 to build the most up
to date and comprehensive production platform available with the
capability and capacity to service existing and changing
requirements of the mail house market.
"Specific benefits will be delivered by improving data
integrity, responsiveness and the introduction of high volume
transactional, mail inserting and promotional color services
that will be completed in the June quarter," Mr. Siva said.
Progress has also been made in lifting competitive appeal with
innovative and efficient product and service initiatives,
including an agreement with PrintSoft, a subsidiary of Australia
Post, to market DeskDirect, a unique and simple to use desk top
direct mail product.
Introduced late last year to existing customers, Mr Siva said
early contracts have been secured with a wider market launch
scheduled during the June quarter
"We have also formed Trans Tasman alliances with three
Australian enterprises to enable cross-border processing of
mail," he said.
Solution Dynamics' proprietary archival and retrieval product
has been completed and is being rolled out to existing customers
in New Zealand and Europe. Mr. Siva also reported that some
small new contracts had been secured locally with distribution
agreements in target offshore markets currently being sought.
Full Year Outlook
According to Mr. Siva, the period to June 30, 2007, would be one
of consolidation and investment to position the company for long
term, sustainable and profitable growth.
"Although we have made satisfactory progress in rebuilding the
business during the first six months, with the new management
team working well, much work remains to be completed. We expect
to deliver a full year result slightly ahead of the previous
financial year but with the business in a sounder position to
lift performance in the following year," Mr. Siva noted.
About Solution Dynamics
Headquartered in Albany, New Zealand, Solution Dynamics Ltd. --
http://www.solutiondynamics.com/-- through its subsidiaries,
offers a range of solutions encompassing data management,
electronic digital printing, document distribution, Web
presentment and archiving, fulfillment, traditional print
services, scanning, data entry, and document management.
During the fiscal year ended June 30, 2006, the Company
deregistered its subsidiaries companies, including Comit Group
Limited, Complete Data Services Limited, Complete Print
Solutions Limited and Dejar Holdings Limited, Efactor
Investments Limited and Advantage Payment Services Limited.
The company reported consecutive net deficits of NZ$610,000 and
NZ$735,000 for the years ended June 30, 2006, and 2005,
respectively. The company also had a working capital deficit of
NZ$679,000 as of June 30, 2006.
SOX NEW ZEALAND: Petition Hearing Slated for May 10
---------------------------------------------------
An application to liquidate the business of Sox New Zealand Ltd
will be heard before the High Court of Auckland on May 10, 2007,
at 10:00 a.m.
Westpac New Zealand Ltd filed the petition with the Court on
Jan. 18, 2007.
Westpac's solicitor can be reached at:
M. M. B. Van Ryn
Simpson Grierson
Level 27, 88 Shortland Street
Auckland
New Zealand
TOYS FOR OLD: Faces Liquidation Proceedings
-------------------------------------------
A liquidation petition filed against Toys for Old Girls and Boys
Ltd will be heard before the High Court of Invercargill on
Feb. 28, 2007, at 10:00 a.m.
Ruahine Bookshop Ltd filed the petition on Jan. 22, 2007.
Ruahine Bookshop's solicitor can be reached at:
Dianne S. Lester
c/o of Credit Consultants Debt Services NZ Limited
Level 3, 3-9 Church Street
(PO Box 213 or DX SX 10069), Wellington
New Zealand
Telephone:(04) 470 5972
TRIGNO ACCESS: Court Sets Liquidation Hearing for March 1
---------------------------------------------------------
Frucor Beverages Ltd filed a petition to liquidate Trigno Access
Builders Ltd on Oct. 26, 2006.
The petition will be heard before the High Court of Auckland on
March 1, 2007, at 10:00 a.m.
Frucor Beverages' solicitor can be reached at:
Debra M. Law
Debtor Management Limited
Unit 11, 9 Freeman Way
Manukau City, Auckland
New Zealand
Facsimile:(09) 263 9108
VELO LTD: Shareholders Appoint Liquidators
------------------------------------------
The shareholders of Velo Ltd appointed Gerald Stanley Rea and
John Maurice Leonard as liquidators of Velo Ltd on Feb. 8, 2007.
In this regard, Messrs. Rea and Leonard fixed March 9, 2007,
within, which the company's creditors are to prove their debts.
The Joint Liquidators can be reached at:
Gerald Stanley Rea
John Maurice Leonard
Gerry Rea Associates
PO Box 3015, Auckland
New Zealand
Telephone:(09) 377 3099
Facsimile:(09) 377 3098
* New Zealand Posts NZ$833-Million Deficit in January
-----------------------------------------------------
New Zealand posted a worse than expected monthly trade deficit
of NZ$833 million in January, pushing the annual shortfall out
to NZ$6.03 billion, the New Zealand Herald cites a report from
the New Zealand Press Association.
The report notes that median forecast of economists polled by
Reuters had been for a monthly deficit of NZ$671 million, and an
annual figure of NZ$5.9 billion.
NZPA cites data released by Statistics New Zealand on Feb. 26,
2007, putting imports at NZ$3.31 billion, which barely changed
from December, but 7% up on a year earlier.
Exports at NZ$2.48 billion were lower than for any month since
January 2006, but 12.5% ahead of the year ago figure, the report
revealed, noting that the January monthly trade balance amounted
to 33.7% of exports.
According to SNZ, the 12.5% rise in exports to NZ$2.48 billion
was the largest annual increase for a January month, by both
value and percentage, since January 2001, and the highest value
on record for a January month, NZPA relates.
Trend values for recent months indicated exports had flattened,
NZPA notes.
Westpac economist Doug Steel and Goldman Sachs JBWere economist
Shamubeel Eaqub agreed on the unexpected growth in imports.
While the Reserve Bank would not like that, it would be
encouraged by the increase in capital good imports, NZPA says.
=====================
P H I L I P P I N E S
=====================
BENGUET CORPORATION: Affirms Talks with Chemical Vapor
------------------------------------------------------
Benguet Corporation affirmed that it had previous discussions
with Canada's Chemical Vapour Refining, Inc., regarding its
Sta. Cruz Nickel Property.
The company said that its statement is in connection with the
Philippine Stock Exchange's request for confirmation of a news
article published by Business World. The article stated that
Chemical Vapour was in talks with five firms -- Lucio Tan-owned
Macro-Asia, Comet Mining, Platinum Group Metal Corporation,
Eramen Minerals, and Benguet Corp. -- about sourcing nickel
concentrate from them.
The company points out that there is nothing specific or
substantial that can be disclosed as of date regarding the
discussion.
Benguet Corporation -- http://www.benguetcorp.com/-- was
organized to primarily engage in gold mining. It expanded into
chromite and copper production, and then into the fields of
general engineering and industrial construction, agriculture,
shipping, banking and finance, real estate and forestry-based
ventures.
As of Sept. 30, 2006, the company's total assets stood at
PHP2.82 billion, while total liabilities amounted to
PHP4.89 billion, resulting to a shareholders' equity deficit of
PHP2.07 billion.
CENTRAL AZUCARERA: To Hold Stockholders' Meeting on March 27
------------------------------------------------------------
In a disclosure with the Philippine Stock Exchange Central
Azucarera de Tarlac informed that it will hold its Annual
Meeting of Stockholders on Mar. 27, 2007, at 11:00 a.m., at the
Alto Pavilion, San Miguel, in Tarlac City, Philippines.
Only stockholders of record as of March 20 are entitled to vote
during the Annual Meeting.
Central Azucarera scheduled its Stockholders' Meeting after it
filed its 17-A Annual Report for fiscal year 2005-2006, together
with its Financial Statement and the preliminary and definitive
information statements that are dependent on the Annual Report.
About Central Azucarera
Central Azucarera de Tarlac was incorporated in 1927 and renewed
in 1976. It operates a sugar mill and refinery, distillery and
carbon dioxide plants in Barrio San Miguel, Tarlac City. The
sugar cane milled is sourced within the Tarlac district and
nearby towns of Pampanga. Affiliate Hacienda Luisita, Inc.,
provides around 1/3 of the mill's cane requirements.
Auditor Raises Going Concern Doubt
After auditing Central Azucarera's financial report for the
fiscal year ended June 30, 2005, Emmanuel V. Clarino, a partner
at Sycip, Gorres, Velayo & Co. noted the company indicated that
its milling operations were halted due to a labor strike in
November 2004 as a result of a Collective Bargaining Deadlock.
The dispute was only settled on Dec. 8, 2005. However, it has
brought considerable hardship to the company's financial and
operational condition. The company has not been able to pay its
maturing loans with creditor banks. Thus, the company incurred
a PHP550.4-million net loss, leading to a deficit of
PHP230 million as of June 30, 2005, which has placed the Company
in a tight liquidity position. These conditions cast
significant doubt on the Company's ability to continue as a
going concern.
The company's consolidated balance sheet as of June 30, 2005,
showed strained liquidity with PHP1,068,416,381 in total current
assets available to pay PHP1,378,111,272 in total current
liabilities.
The company's ability to continue as a going concern depends
largely on the resolution of labor disputes, successful
negotiation with creditor banks, and the resumption of milling
operations.
CHIQUITA BRANDS: Incurs US$42 Mil. Net Loss in 2006 Fiscal Year
---------------------------------------------------------------
Chiquita Brands International Inc. released its financial and
operating results for the fourth quarter and full-year 2006.
Fourth quarter net sales increased by 9% year-over-year to
US$1.1 billion, and the company reported a net loss of US$42
million, including a US$25 million accrual related to a
potential settlement of a previously disclosed U.S. Department
of Justice investigation. This compares to a net loss of US$19
million in the year-ago period.
For the full year, net sales increased by 15% to US$4.5 billion,
and the company reported a net loss of US$96 million compared to
net income of US$131 million in 2005.
"We continued to drive top-line growth in the fourth quarter
and, as expected, we began to overcome several significant
headwinds that had impacted our results in the third quarter,"
said Fernando Aguirre, chairman and chief executive officer.
"Net sales increased due primarily to improved banana volume in
Europe and higher banana volume and pricing in North America."
Mr. Aguirre continued, "We continue to face a challenging and
evolving environment due to competitive pressures and regulatory
changes in the European banana market as well as lingering
consumer concerns about the safety of fresh spinach and packaged
salads in the United States. However, we believe the strategic
initiatives we have put in place will effectively address these
issues and gain momentum in 2007. Moreover, we strongly believe
that our efforts to further leverage Fresh Express and develop
new innovative products are successfully positioning Chiquita
for the long-term. Our team remains focused on driving
profitable growth across our operations and on our vision to
become a consumer-driven global leader in branded, healthy,
fresh foods."
* Net Sales: Quarterly sales increased primarily due to
increased banana volume in Europe and North America,
improved banana pricing in North America, higher Fresh
Select sales and favorable foreign exchange, partly offset
by lower banana pricing in Europe. The increase in annual
sales reflects the positive full-year impact of the
acquisition of Fresh Express in mid-2005.
* Operating Income (Loss): The quarterly operating loss
increased year-over-year due to the impact of changes in
the European banana market, which have resulted in lower
pricing and increased tariffs; higher fuel and other
industry costs; and the accrual for potential settlement of
the U.S. Department of Justice investigation. These were
partially offset by lower marketing expenses in Europe and
costs from Tropical Storm Gamma in the year-ago period that
did not recur. In addition to the factors impacting the
fourth quarter operating results, operating results for the
full-year 2006 were impacted by a US$43 million goodwill
impairment charge related to Atlanta AG, while operating
income for 2005 included charges of US$23 million for
flooding in Honduras and the closure of a fresh-cut fruit
facility.
* Cash used in operations in the fourth quarter 2006 was
US$65 million compared to cash provided by operations of
US$11 million in the year-ago period. For the quarter, the
decline was due to lower operating income and increases in
seasonal working capital requirements compared to the year-
ago period. For the full year, the decline in cash flow is
attributable to lower operating income.
* Total debt was US$1.029 billion at Dec. 31, 2006, compared
to US$997 million at Dec. 31, 2005. The increase was due
to US$44 million of borrowings on the company's revolving
credit facility in the 2006 fourth quarter to fund seasonal
working capital needs.
* Cash was US$65 million at Dec. 31, 2006, compared to US$89
million at Dec. 31, 2005.
As previously disclosed, in April 2003 the company's management
and audit committee, in consultation with the board of
directors, voluntarily disclosed to the U.S. Department of
Justice that its former banana-producing subsidiary in Colombia,
which was sold in June 2004, had made payments to certain groups
in that country which had been designated under United States
law as foreign terrorist organizations. Following the voluntary
disclosure, the Justice Department undertook an investigation,
including consideration by a grand jury. In March 2004, the
Justice Department advised that, as part of its criminal
investigation, it would be evaluating the role and conduct of
the company and some of its officers in the matter. In
September and October 2005, the company was advised that the
investigation was continuing and that the conduct of the company
and some of its officers and directors was within the scope of
the investigation.
During the fourth quarter of 2006, the company commenced
discussions with the Justice Department about the possibility of
reaching a plea agreement. As a result of these discussions,
and in accordance with the guidelines set forth in SFAS No. 5,
the company has recorded a reserve of US$25 million in its
financial statements for the quarter and year ended Dec. 31,
2006. This amount reflects liability for payment of a proposed
financial sanction contained in an offer of settlement made by
the company to the Justice Department. The US$25 million would
be paid out in five equal annual installments, with interest,
beginning on the date judgment is entered. The Justice
Department has indicated that it is prepared to accept both the
amount and the payment terms of the proposed US$25 million
sanction.
Negotiations are ongoing, and there can be no assurance that a
plea agreement will be reached or that the financial impacts of
any such agreement, if reached, will not exceed the amounts
currently accrued in the financial statements. Furthermore,
such an agreement would not affect the scope or outcome of any
continuing investigation involving any individuals.
In the event an acceptable plea agreement between the company
and the Justice Department is not reached, the company believes
the Justice Department is likely to file charges, against which
the company would aggressively defend itself. The company is
unable to predict the financial or other potential impacts that
would result from an indictment or conviction of the company or
any individual, or from any related litigation, including the
materiality of such events.
Outlook
While the company does not provide specific guidance for net
sales and net income, the following information is provided to
assist investors in analyzing the company's results for 2007.
* The company expects 2007 capital expenditures to be in the
range of US$65-75 million.
* Depreciation and amortization expense is estimated to be
approximately US$90 million in 2007.
* Gross interest expense in 2007 is estimated to be in the
range of US$85-90 million, and net interest expense is
expected to be US$80-85 million, assuming an average LIBOR
rate of 5.3%.
* The company expects to apply excess cash primarily to pay
down debt until it reaches its target total debt-to-capital
ratio of 40%. At year-end 2006, this ratio was 54%.
* While the company does not offer forward-looking pricing or
volume estimates, it provides regular updates eight times
per year on year-over-year percentage changes in pricing and
volume in its major operating regions.
* In the first half of 2006, the company incurred higher
sourcing and logistics costs totaling US$24 million due to
banana volume shortfalls caused by Hurricane Stan and
Tropical Storm Gamma, which affected results by US$16
million in the first quarter and US$8 million in the second
quarter. These storm impacts are not expected to recur in
this year's first half.
* The company estimates costs for items such as raw products,
fuel, ship charters, paper and resins to be approximately
US$40-50 million higher in 2007 than in 2006. Approximately
three-quarters of the increases relate to the cost of raw
products, most of which relate to bananas and will be
heavily weighted toward the first four months of the year.
To mitigate such increases, the company continuously seeks
Cost savings across its global operations. In 2007, the
company is targeting US$40 million in gross cost savings,
most of which are expected to occur later in the year.
* Based on current euro forward rates, the company's 2007
currency hedging costs are estimated to be approximately
equal to the US$17 million of costs in 2006.
* Declining prices over the last several months have allowed
the company to increase its fuel hedge coverage to
approximately 65% through 2009. Based on current market
forward rates, the company expects a fuel hedging loss of
US$6 million in 2007, compared to a US$12 million gain in
2006.
* The company expects reduced sales and decreased margins
resulting from consumer concerns about the safety of
packaged salad products to continue to negatively affect
Fresh Cut segment results through at least the third quarter
2007. In addition, the record January freeze in Arizona is
expected to impact Fresh Cut operating results by up to US$4
million in the first quarter 2007.
About Chiquita Brands
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 60 countries including the Philippines and Australia. It
also distributes and markets fresh-cut fruit and other branded,
value-added fruit products.
On Nov. 6, 2006, Moody's Investors Service downgraded the
ratings for Chiquita Brands L.L.C., as well as for its parent
Chiquita Brands International, Inc. Moody's said the outlook on
all ratings is stable. This rating action follows the company's
announcement that it had incurred a USUS$96 million net loss for
its 2006 third quarter.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'. S&P
said the ratings remain on CreditWatch with negative
implications where they were placed on Sept. 26.
GLOBE TELECOM: To Prepay US$300-Mil. Notes Due 2012 on Apr. 15
--------------------------------------------------------------
Globe Telecom, Inc., will redeem its US$300 million senior
unsecured notes on April 15, 2007, the company informs the
Philippine Stock Exchange in a regulatory filing.
Due April 2012, Globe Telecom prepays the notes five years ahead
of schedule.
The prepayment is in line with Globe's aims to lower costs in
all aspects of its operations and to reduce volatility in its
Profit & Loss Statement, the company told the stock exchange.
Globe expects to realize cumulative after-tax interest expense
savings of PHP2.3 billion over the remaining life of the notes.
While this will translate into savings in interest expense of
about PHP2.32 billion this year, there will be a one-time impact
to net income of about PHP1.17 billion, largely non-cash in
nature, coming from the decline in mark-to-market values of the
related derivatives, Mary Ann Reyes of The Philippine Star
points out.
"But this will not undermine our core operating performance and
will even improve out longer-term financing cost profile as
after-tax savings of PHP444 million a year in interest expense
is generated over the remaining life of the notes," the local
newspaper quotes Globe's Chief Financial Officer Delfin Gonzalez
Jr. as saying.
As reported in the Troubled Company Reporter - Asia Pacific on
Feb. 13, the company had disclosed plans to raise PHP5 billion
to finance the early redemption of the US$300-million bonds.
Aside from the PHP5-billion in fresh loans, which Globe arranged
via a notes facility agreement arranged by Standard Chartered
Bank, the company also raised US$50 million via a term loan with
Norddeutsche Landesbank Gironzentrale, Singapore branch, for the
funds used to prepay the US$300-million debt. The company will
source the balance of the amount to be prepaid from internal
funds.
Globe Telecom, Inc. -- http://www.globe.com.ph/-- is one of the
country's major telecommunications companies. It was
incorporated on January 15, 1935 as a traditional provider of
telex/telegram and VSAT services. Thereon, it diversified its
business into a cellular, landline and international gateway
facility services provider for long distance telephone calls.
The Company offers a wide range of telecommunications services
to business and residential subscribers, including wireless,
wireline and carrier services. It has introduced innovative
features like text messaging, Infotext and Handyphone Mobile
Office. It also offers caller ID, voice mail, call forwarding
and data/fax capabilities. Recently, it launched various
services like video messaging, streaming video, wireline data
services, over-the-air loading and its latest, MyGLobe G-TV
service, which allows subscribers to view selected TV programs
on mobile phones, among others.
* * *
Standard and Poors gave Globe Telecom's Long Term Foreign Issuer
Credit and Long Term Local Issuer Credit both a BB+ rating,
effective Nov. 3, 2005, and June 23, 2004, respectively.
On Sept. 1, 2006, the Troubled Company Reporter - Asia
Pacific reported that S&P affirmed its ratings on Globe Telecom
Inc. at 'BB+', with a stable outlook.
On Nov. 3, 2006, Moody's Investors Service affirmed Globe
Telecom's Ba2 senior unsecured foreign currency rating and
changed its outlook to stable from negative. At the same time,
Moody's has affirmed Globe's Baa2 domestic currency issuer
rating. The outlook for this rating remains stable.
MAGNUM HOLDINGS: Discloses Results of Feb. 21 Board Meeting
-----------------------------------------------------------
Magnum Holdings Inc. disclosed with the Philippine Stock
Exchange the matters approved during the meeting of the
company's board of directors on Feb. 21, 2007:
1. The Board accepted the resignations of Francis H. Suarez
Jr., Felix R. Chung, Benson Te, and Leonor Cabarus as
company directors. These individuals were elected as new
Magnum Holdings directors, to serve terms for the ensuing
year until the election and qualification of their
successors:
a. Khrisnamurti A. Africano
b. Delfin S. Castro Jr.
c. Brandon Chis Tzu Chern
d. Eugenio R. Esguerra
2. The Board elected Felix Ang as independent director in
place of Benson Te. The resignations of Mr. Suarez, Mr.
Chung, Mr. Te, and Ms. Cabarus were not results of any
disagreements with Magnum Holdings, or any matter relating
to the company's operations, policies or practices.
3. Mr. Africano was elected as chairman and Simmon Dee as
treasurer and compliance officer.
4. Mr. Castro was elected as the new Magnum Holdings
president for the ensuing year until the election and
qualification of his successor.
5. These are the amendments to the Magnum Holdings Articles
of Incorporation:
* Change of Corporate name to "NiHAO Mineral Resources
International Inc." and amend article 1 of the Articles
of Incorporation and By Laws. The "Ni" in the proposed
corporate name is the chemical symbol of nickel.
* Amendment of the company's primary purpose to include
the exploration, development, and operation of mineral
properties and the mining of metallic and non-metallic
materials including but not limited to nickel, gold,
copper and the like.
* Increase of Authorized Capital Stock from PHP100 million
to PHP700 million, and stock rights offering to comply
with the Securities and Exchange Commission's
requirements for the minimum capital amount to be
subscribed and paid up by the company's stockholders.
Also, the Board authorized the company's management to
formulate the terms and conditions of the stock rights
offering.
* Waiver of Pre-Emptive Rights
6. Conversion of stockholders advances of HDI Securities,
Inc., and Jerry C. Angping in the amount of
PHP4,699,465.00 into equity and the issuance of
4,699,465 shares from the unissued portion of Magnum
Holdings' authorized capital stock.
7. Convene a Magnum Holdings meeting on Apr. 25 2006, at
3:00 p.m. at a venue to be disclosed later to obtain
shareholders' approval for the amendments to the
Articles of Incorporation and amendments to the By-laws.
The record date of Magnum Holdings stockholders entitled
to notice of and to vote at the Annual Stockholders'
Meeting will be the end of trading hours of the Philippine
Stock Exchange on Mar. 20, 2007
8. Amendments to the Magnum Holdings Inc. Manual of Corporate
Governance and By-Laws for the creation of the Audit,
Compensation, and Nomination Committees, description of
their duties and functions, procedure for nomination and
election of directors, and election of independent
directors.
9. The board elected these to the committees prescribed
by the Magnum Holdings Inc. Manual of Corporate
Governance:
* Audit Committee
Felix Ang : Chairman
Brandon Chia Tzu Chen : Member
Simmon Dee : Member
* Nomination Committee
Felix Ang : Chairman
Edison Go : Member
Delfin Castro Jr. : Member
* Compensation Committee
Khrisnamurti Africano : Chairman
Delfin Casto JR, : Member
Eugenio Esguerra : Member
About Magnum Holdings, Inc.
Magnum Holdings, Inc., formerly known as Summit Minerals, Inc.,
was originally organized to engage in mining exploration. On
February 24, 1994, the Securities and Exchange Commission
approved the change in the Company's primary purpose to that of
a holding company and the change in its corporate name to Magnum
Holdings, Inc.
Significant Going Concern Doubt
After auditing Magnum Holdings' financial report for the year
ended December 31, 2005, A.S. Arellano and Co., raised
significant doubt on the Company's ability to continue as a
going concern. The Auditor cites these reasons:
* The Company incurred losses of PHP0.78 million,
PHP0.69 million and PHP0.82 million for the years ending
December 31, 2005, 2004 and 2003.
As of December 31, 2005, the Company's capital deficiency
amounted to PHP89.1 million.
* The Company is dependent on the continuing support of its
major stockholder, Sagarmatha, Inc.
As of December 31, 2005, the Company's current liabilities
exceeded its current assets by some PHP3.8 million.
* The losses were attributed primarily to the poor trading
conditions caused by financial turmoil affecting the region
as well as representing the cost of maintaining and
safeguarding the Company's assets and resources.
PHIL. AIRLINES: Net Profit Up 15% in 9 Mos. Ended December '06
--------------------------------------------------------------
Philippine Airlines Inc.'s net profit rose 15% to
US$22.85 million in the nine months ended December 2006, from
the US$19.87 million booked in the same period in 2005. The
increased profit is mainly due to higher passenger and cargo
revenues, Zinnia B. Dela Pena, of The Philippine Star, reports.
Revenues for the nine months ended December 2006, rose to
US$944.3 million compared with the US$895.15 million a year
earlier. "Revenues were boosted by surcharges as well as
interest and other income," the newspaper says citing a company
disclosure with the Philippine Stock Exchange.
For the October to December 2006 quarter, however, the airline
incurred a net loss of US$2.9 million, slightly narrower than
the US$3.1 million loss posted in the same period a year
earlier. For the latest quarter period, revenues reached
US$303.4 million or an increase of 1.5% from the
US$298.9 million earned in the same quarter in 2005.
As of December 31, 2006, the airline had total assets of
US$1.97 billion and liabilities of US$89.1 million.
According to the paper, PAL is considering acquiring at least
eight wide-bodied aircraft, estimated to cost around US$200
million each, to expand its routes to the United States and
Canada and to return to Europe after an absence of about a
decade. The planes will arrive between 2008 and 2009, the paper
adds.
PAL is in the final phase of talks with three European export
credit agencies to secure a loan of up to US$600 million to fund
its refleeting program, the paper relates.
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. As of 2005, it claims
to serve 21 domestic airports and 31 foreign cities. Its main
hub is the Ninoy Aquino International Airport in the capital
city of Manila.
Following labor problems and its failure to settle debts, PAL
filed for rehabilitation in June 1998, and is slated to complete
its 10-year debt rehabilitation program in 2009.
A March 21, 2006 report by the Troubled Company Reporter - Asia
Pacific stated that the airline company will continue a
government-led rehabilitation program even as creditors neither
approved nor rejected the program to leave the protection of the
Securities and Exchange Commission.
A report by the Manila Times in July 2006 said that since its
corporate rehabilitation in 1998, PAL reduced its debts to
PHP237.23 billion from PHP496.02 billion by selling assets and
using the proceeds to pay off maturing debts.
PHIL. LONG DISTANCE: To Release 2006 Financials on March 6
----------------------------------------------------------
Philippine Long Distance Telephone Co. will release its audited
financial results for the full year 2006 on March 6, 2007, the
company said through a disclosure with the Philippine Stock
Exchange.
The financials, PLDT said, is currently being reviewed by its
external auditors.
The Philippine Star earlier reported that PLDT expects to exceed
its PHP35 billion net income target for 2006, following a
reversal of provisions made for the company's investments in a
satellite company.
According to The Star, PLDT Chairman Manuel Pangilinan had
revealed that the projected reported earnings of PHP35 billion
for 2006 will depend on whether or not PLDT will be able to
close the transaction involving its ACeS satellite business.
PLDT owns 100% of ACeS Phils.Cellular Satellite Corp. as well as
20% of ACeS International Ltd.
The report relates that without the ACeS transaction, PLDT would
end up with a reported net income of PHP33 billion, or lower
than the previous year's PHP34 billion.
Mr. Pangilinan refused to elaborate on the transaction, but
hinted that it will involve a reversal of some provisions made
for AceS, The Star points out. "Both entities (ACeS Phils. and
Int'l) will be involved. There will be potential new investors
and there will be some rearrangement of our ownership. But we
will retain a portion," Mr. Pangilinan disclosed.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 13, 2007, that PLDT, in a letter to the Philippine Stock
Exchange, denied any sale of its ACeS System satellite-based
business and said that it is not divesting its equity interest
in ACeS International.
"In fact, PLDT's equity in ACIL has increased," The Star quotes
PLDT President Napoleon Nazareno as saying in an interview.
About PLDT
Based in Makati City, Philippines, Philippine Long Distance
Telephone Co. -- http://www.pldt.com.ph/-- is the leading
national telecommunications service provider in the Philippines.
Through three principal business groups -- wireless, fixed line,
and information and communications technology -- the company
offers a wide range of telecommunications services to over 22
million subscribers in the Philippines across the nation's most
extensive fiber optic backbone and fixed line, cellular and
satellite networks.
* * *
Moody's Investors Service placed a Ba1 local currency corporate
family rating on PLDT. Moody's also affirmed the company's Ba2
foreign currency senior unsecured ratings, with a negative
outlook.
Standard & Poor's placed the company's long-term foreign issuer
credit rating at BB+. Standard & Poor's also affirmed its 'BB+'
foreign currency rating on the company with a stable outlook.
WENDY'S INT: Inks US$300-Million Share Purchase Pact with Broker
----------------------------------------------------------------
Wendy's International Inc. has entered into an agreement to
purchase up to US$300 million of its common shares from a
broker-dealer in an accelerated share repurchase transaction as
part of the company's plan to return capital to its
shareholders. The common shares purchased will be placed into
treasury to be used for general corporate purposes.
The Board of Directors of the company had approved a share
repurchase program of up to 35.4 million shares. As part of
that authorization, the company repurchased 22.4 million shares
for US$803.4 million in a modified "Dutch Auction" tender offer
in the fourth quarter of 2006. The company repurchased a total
of 26.2 million shares during 2006.
"The ASR enables us to utilize our strong balance sheet to
return capital to shareholders in an efficient manner," said
Chief Executive Officer and President Kerrii Anderson. "We are
confident [that the company's] business will continue to produce
improving results and generate positive cash flow as we execute
our strategic plan, revitalize the Wendy's brand and improve
restaurant operations across the entire system."
The number of shares that the company may repurchase pursuant to
the ASR will not be known until conclusion of the transaction,
which is expected to occur during the company's first quarter;
however, the company expects to repurchase up to approximately
9 million shares. The price per share to be paid by the company
will be determined by reference to the weighted average price
per share actually paid by the broker-dealer to purchase shares
during a hedge period expected to be approximately one month,
subject to a cap and a floor.
Wendy's International Inc. (NYSE:WEN) -- http://www.wendys-
invest.com/ -- is a restaurant operating and franchising company
with more than 9,900 total restaurants and quality brands,
including Wendy's Old Fashioned Hamburgers(R) and Baja Fresh
Mexican Grill. The company also has investments in three
additional quality brands -- Tim Hortons, Cafe Express and Pasta
Pomodoro(R). There are Wendy's restaurants in Asia, including
the Philippines.
On Nov. 7, 2006, the Troubled Company Reporter - Asia Pacific
reported that in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the restaurant sector, the rating
agency held its Ba2 Corporate Family Rating for Wendy's
International Inc.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these
debentures:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$200m 6.25%
senior unsecured
notes due 2011 Ba2 Ba2 LGD4 54%
US$225m 6.2% senior
unsecured notes
due 2014 Ba2 Ba2 LGD4 54%
US$100m 7%
debentures
due 2025 Ba2 Ba2 LGD4 54%
Unsecured shelf Ba2 Ba2 LGD4 54%
Subordinated shelf Ba3 B1 LGD6 97%
Preferred shelf B1 B1 LGD6 97%
On July 3, 2006, the TCR-AP reported that Standard & Poor's
Ratings Services lowered its corporate credit and senior
unsecured debt ratings on Wendy's International Inc. to 'BB+'
from 'BBB-'. At the same time, the short-term rating was
lowered to 'B-1' from 'A-3'. The outlook was negative.
=================
S I N G A P O R E
=================
ALLIED DOMECQ: Creditors Must Prove Debts by March 23
-----------------------------------------------------
Allied Domecq Spirits & Wine (Singapore) Ltd, which is under
members' voluntary liquidation, requires its creditors to prove
their debts by March 23, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's distribution of dividend.
The liquidator can be reached at:
Lai Seng Kwoon
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
HIANGKIE INDUSTRIES: Liquidators to Receive Claims Until March 9
----------------------------------------------------------------
Ong Yew Huat and Seshadri Rajagopalan, as liquidators of
Hiangkie Industries Pte Ltd, will be receiving proofs of debt
from its creditors until March 9, 2007.
Failure to prove debts by the due date will exclude a creditor
from sharing in the company's distribution of dividend.
As reported by the Troubled Company Reporter - Asia Pacific, the
High Court of Singapore issued an order to wind up the company's
operations on July 1, 2005.
The liquidators can be reached at:
Ong Yew Huat
Seshadri Rajagopalan
c/o Ernst & Young
One Raffles Quay, Level 18
North Tower
Singapore 048583
ODYSSEY RE: Earns US$83.8 Million in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
Odyssey Re Holdings Corp. reported net income available to
common shareholders of US$83.8 million for the quarter ended
Dec. 31, 2006, compared to a net loss available to common
shareholders of US$79.2 million in 2005. Operating income after
tax was US$65.4 million for the fourth quarter of 2006, compared
to an operating loss after tax of US$72.6 million in 2005. The
Company's fourth quarter 2005 results include catastrophe
losses, net of applicable reinstatement premiums, of US$115.4
million after tax, or US$1.68 per diluted share principally
related to Hurricanes Katrina, Rita and Wilma. Included in the
fourth quarter 2006 net income available to common shareholders
were after tax net realized capital gains of US$18.4 million
compared to net realized capital losses of US$6.5 million, in
2005.
For the year ended Dec. 31, 2006, the net income available to
common shareholders was US$499.6 million as compared to a net
loss available to common shareholders of US$117.7 million for
the year ended Dec. 31, 2005. Operating income after tax was
US$268.0 million for the year ended Dec. 31, 2006, compared to
operating loss after tax of US$170.9 million, in 2005.
Total shareholders' equity was US$2.08 billion at Dec. 31, 2006,
compared to US$1.64 billion at Dec. 31, 2005. Book value per
common share was US$27.92 at Dec. 31, 2006, an increase of
US$5.61 from the book value per common share at 2005 of
US$22.31. At Dec. 31, 2006, total investments and cash were
US$7.07 billion, an increase of US$1.10 billion over
Dec. 31, 2005.
Fourth Quarter and Full Year Highlights
-- Net income available to common shareholders of US$499.6
million for the full year and US$83.8 million for the
fourth quarter;
-- Net operating income of US$268.0 million for the full year
and US$65.4 million for the fourth quarter;
-- Gross premiums written of US$2.34 billion for the full
year, a decrease of 11.1% from 2005, and US$538.9 million
for the fourth quarter, a decrease of 12.8% over fourth
quarter 2005;
-- Combined ratio of 94.4% for the full year, and 94.8% for
the fourth quarter;
-- Full year net investment income (excluding realized
capital gains of an equity investee) of US$319.5 million,
an increase of 66.2% over 2005;
-- Return on common shareholders' equity of 28.3% and
operating return on common shareholders' equity of 15.2%
for the full year; and
-- Total invested assets of US$7.1 billion at Dec. 31, 2006,
an increase of 18.4% over Dec. 31, 2005.
Gross premiums written for the quarter ended Dec. 31, 2006, were
US$538.9 million, a decrease of 12.8% compared to US$617.7
million for the quarter ended Dec. 31, 2005. This reflects a
decline of 15.1% in the company's worldwide reinsurance business
compared to the fourth quarter of 2005, and a 7.3% decrease in
specialty insurance business. Net premiums written during the
fourth quarter of 2006 were US$508.7 million, a decrease of 2.7%
over fourth quarter 2005 net premiums written of US$523.0
million.
Gross premiums written for the year ended Dec. 31, 2006, were
US$2.34 billion, compared to US$2.63 billion for the year ended
Dec. 31, 2005, while net premiums written over the same period
decreased to US$2.16 billion from US$2.30 billion. The combined
ratio for the year ended Dec. 31, 2006 was 94.4%, as compared to
117.6% in 2005.
Andrew A. Barnard, President and Chief Executive Officer,
stated, "OdysseyRe attained numerous milestones in 2006. Our
full year net income of US$500 million is our highest ever, as
is our return on common equity of 28.3%. Our combined ratio of
94.4% is our best underwriting performance since we became a
public company. Looking forward, our diversified portfolio and
global reach, coupled with our proven underwriting and
investment expertise, position us well for the challenges of an
uncertain market. In recognition of our balance sheet strength,
the OdysseyRe Board of Directors has decided to increase our
annual dividend to US$0.25 per share, double its present level."
Total investment results, which include net investment income
and net realized capital gains (losses), amounted to US$112.2
million before tax in the fourth quarter of 2006, compared to
US$45.9 million in the fourth quarter of 2005. Net investment
income, which excludes net realized capital gains (losses),
amounted to US$84.0 million for the fourth quarter of 2006,
compared to US$56.0 million for the fourth quarter of 2005. Net
pre-tax realized capital gains were US$28.3 million for the
fourth quarter of 2006, compared to net pre-tax realized capital
losses of US$10.1 million for the fourth quarter of 2005. For
the quarter ended Dec. 31, 2006, net cash flow from operations
was a positive US$127.9 million, a US$152.0 million increase
from negative cash flow of US$24.1 million for the quarter ended
Dec. 31, 2005, following significant catastrophe loss payments
in the fourth quarter of 2005.
In the fourth quarter of 2006 and 2005, OdysseyRe paid cash
dividend of US$0.03125 per common share.
About Odyssey Re
Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an
underwriter of property and casualty treaty and facultative
reinsurance, as well as specialty insurance. Odyssey Re
operates through its subsidiaries, Odyssey America Reinsurance
Corporation, Hudson Insurance Company, Hudson Specialty
Insurance Company, Clearwater Insurance Company, Newline
Underwriting Management Limited and Newline Insurance Company
Limited. The company underwrites through offices in the United
States, London, Paris, Toronto, Mexico City and Singapore.
Odyssey Re Holdings Corp. is listed on the New York Stock
Exchange under the symbol ORH.
* * *
Odyssey Re Holdings Corp.'s preferred stock carries a Ba2 rating
from Moody's and a BB rating from Fitch. Fitch also gave the
company senior unsecured debt and long-term issuer default
ratings of BB+.
PETROLEO BRASILEIRO: Reports Oil & Gas Production in January
------------------------------------------------------------
Petrobras' oil and natural gas production in January 2007, in
Brazil and abroad, averaged 2,284,160 barrels of oil equivalent
per day. This result is 2.2% below the previous month's, but
0.8% above January 2006.
Only taking domestic fields into account, the average oil & gas
production reached 2,056,093 boe per day, 2.1% more than a year
ago, and 2.3% less than in December 2006, i.e., 2,105,182 boe.
In this same unit, oil & natural gas production in the eight
countries where Petrobras has assets topped-out at 228,067
barrels per day, 1.0% less than last month.
In January, oil production in Brazilian fields summed-up to
1,785,690 barrels per day, on average, 2.5% less than the volume
lifted in December 2006 (1,832,148 bpd). The 46,000 barrel
decrease compared to the previous month's average resulted from
the scheduled shutdown of platform P-37, in the Marlim field, in
the Campos Basin, as of January 19.
Brazilian natural gas field production totaled 42,991 thousand
cubic meters per day, 2.7% more than a year ago, but 0.9% less
than last December.
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, 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.
REFCO INC: Refco LLC Files Dec. 2006 Monthly Operating Report
-------------------------------------------------------------
In lieu of comprehensive financial statements, Albert Togut, the
Chapter 7 Trustee appointed to oversee the liquidation of Refco,
LLC's estate, filed with the U.S. Bankruptcy Court for the
Southern District of New York a monthly statement of cash
receipts and disbursements for the period from Dec. 1 to 31,
2006.
The Chapter 7 Trustee reports that Refco LLC's beginning balance
as of December 1 totals US$620,450,000. The Debtor's beginning
purchase price account balance totals US$21,927,000, and its
beginning capital account "A" balance totals US$598,523,000.
The purchase price account includes activity related to Man
Financial, Inc., sale proceeds and related disbursements.
Capital account "A" includes activity related to collection of
excess capital.
Refco LLC received US$6,773,000 in cash and disbursed
US$6,808,000 for the Reporting Period. The Debtor held
US$620,415,000 at the end of the period.
A full-text copy of Refco LLC's December 2006 Monthly Statement
is available at no charge at:
http://researcharchives.com/t/s?1a3d
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. The Debtors' Amended Plan was confirmed on Dec. 15,
2006. (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
SIFINVEST OVERSEAS: Petition Hearing Slated for March 9
-------------------------------------------------------
Ijimasia Pte Ltd on Feb. 12, 2007, filed a petition to wind up
the operations of Sifinvest Overseas Pte Ltd -- formerly known
as Advanced Medical Technologies Pte Ltd.
The petition will be heard before the High Court of Singapore on
March 9, 2007, at 10:00 a.m.
===============
T H A I L A N D
===============
ADVANCE AGRO: Sets Shareholders' Meeting for April 18
-----------------------------------------------------
Advance Agro PCL discloses with the Stock Exchange of Thailand
the date of its 14th Annual General Shareholder's Meeting and
the resolutions made at the Board of Directors' Meeting on
Feb. 21, 2007.
The resolutions include, among others:
a. that a proposal be made at the Annual General
Shareholder's Meeting not to appropriate profits and pay
dividends as Advance Agro is required to comply with the
terms of the Indenture of the Bond which will mature in
November 2007;
b. that a proposal be made at the Annual General
Shareholder's Meeting to consider the appointment of
either Narong Puntawong, certified public account license
no. 3315; Ruth Chaowanagawi, certified public account
license no. 3247; Supachai Phanyawattano, certified public
account license no. 3930; Siraporn Ouaanunkun, certified
public account license no. 3844; of Ernst and Young Office
Co., Ltd., as the auditor of the company and its
subsidiaries for the year 2007, and the approval of the
auditing fee totaling THB7,000,000;
c. that a proposal be made at the Annual General Meeting of
Shareholder's regarding the re-appointment of these
company directors:
1) Siriwan Dumnernchanvanich
2) Somchai Richupan
3) Phisamai Supanuntaroek
4) Pracha J. Aruthrakulchai
5) Poonsombat Dumnernchanvanit
6) Seri Chintanaseri
d. that a proposal be made at the Annual General
Shareholder's Meeting for the remuneration of the
directors, including attendance fees, not exceeding
THB40 million, as approved during the Annual General
Meeting of Shareholder's No. 13 in 2006;
e. that the Annual General Shareholder's Meeting be held on
Apr. 18, 2007, at 11:00 a.m. at the 9th Floor, Thailand
Book Tower Building, 122 North Sathon Road, Silom, in
Bangrak, Bangkok; and
d. that the closing of the share registration book to
determine shareholders' rights to attend the Annual
General Shareholder's Meeting will be on Apr. 2, 2007,
from 12:00 a.m. up to the end of the meeting.
About Advance Agro PCL
Advance Agro (AA), headquartered in Bangkok, Thailand, is an
integrated producer of pulp, uncoated free sheet, and coated
paper.
* * *
The Troubled Company Reporter - Asia Pacific reported on Jan. 5,
2006, that Advance Agro Public Co. Ltd. received from Standard &
Poor's Rating Services a B- rating, an upgrade from the previous
CCC rating to its US$250 million 11% bonds due 2012.
The TCR-AP stated that the issue rating on Advance Agro Capital
B.V.'s US$48.7 million 13% notes due 2007 was also raised
to 'B-' from 'CCC'. The ratings were removed from CreditWatch,
where they were placed with positive implications on Nov. 29,
2005.
According to a TCR-AP report on Jan. 11, 2006, Moody's Investor
Service has affirmed the B3 senior unsecured rating of Advance
Agro Public Company Limited's (AA) US$250 million bonds due 2012
and removed the rating from its provisional status.
The TCR-AP also said that Moody's affirmed the company's B3
corporate family rating and upgraded to B3 from Caa1 the rating
for AA's US$48.7 million guaranteed unsecured notes due 2007.
The outlook for the ratings is stable.
COMPUTER SCIENCES: Asking Noteholders for One-Time Waiver
---------------------------------------------------------
Computer Sciences Corporation disclosed last week that it is
soliciting consents from the holders of record, as of 5:00 p.m.
on Feb. 20, 2007, of all of its outstanding:
* 3.50% Notes due 2008,
* 6.25% Notes due 2009,
* 7.375% Notes due 2011, and
* 5.00% Notes due 2014.
CSC is requesting a one-time waiver through July 9, 2007, of any
default or event of default that has arisen prior to the
effective date of the waiver by virtue of CSC's failure to file
with the Securities and Exchange Commission and furnish to
Citibank, N.A., the Trustee with respect to the Notes, and
holders of the Notes, certain reports required to be so filed
and furnished by CSC pursuant to the terms of the indentures
governing the Notes.
Holders of the Notes are referred to CSC's Consent Solicitation
Statement dated Feb. 21, 2007, and the related Letter of Consent
for the detailed terms and conditions of the consent
solicitation.
CSC has not yet filed with the SEC its Quarterly Report on Form
10-Q for either the fiscal quarter ended Sept. 29, 2006, or the
fiscal quarter ended Dec. 29, 2006.
On Dec. 8, 2006, CSC received a notice of default from the
Trustee alleging a default under the various indentures
governing the Notes arising from CSC's failure to timely file
the Quarterly Report for the fiscal quarter ended
Sept. 29, 2006. On Dec. 21, 2006, CSC obtained a waiver through
March 9, 2007, from more than a majority of the holders of CSC's
outstanding 6.25% Notes with respect to its failure to file the
Quarterly Report for the fiscal quarter ended Sept. 29, 2006.
As of the date of the Consent Solicitation Statement, CSC has
not received any notice of default from holders of 25% or more
of the aggregate principal amount of any series of Notes.
CSC is offering an initial consent fee of a US$1.25 in cash for
each US$1,000 in principal amount of the Notes to all holders of
record on Feb. 20, 2007, who properly execute and deliver a
Letter of Consent, that is not thereafter revoked, on or prior
to the expiration of the consent solicitation. If CSC has not
filed its Quarterly Reports with the SEC on or before 5:30 p.m.,
New York City time, on the ninth day of each month (beginning
April 9, 2007) following payment of the initial consent fee, CSC
will pay to each consenting holder an additional US$1.00 in cash
for each US$1,000 in principal amount of Notes until the earlier
of the date on which CSC has filed its Quarterly Reports with
the SEC and July 9, 2007.
The proposed waiver shall become effective with respect to each
series of Notes promptly following the receipt of valid and
unrevoked consents from holders representing a majority of the
outstanding aggregate principal amount of such series of Notes.
The consent solicitation will expire at 5:00 p.m., New York City
time, on Monday, March 5, 2007, unless otherwise extended by CSC
with respect to one or more series of Notes. Holders may submit
their Letters of Consent to the Tabulation Agent at any time on
or prior to the expiration date. Holders may revoke their
consents prior to the effectiveness of the proposed one-time
waiver with respect to the applicable series of Notes as
described in the Consent Solicitation Statement.
CSC has retained Global Bondholder Services Corporation to serve
as its Tabulation Agent for the consent solicitation. Requests
for documents should be directed to Global Bondholder Services
at (866) 470-3800 or (212) 430-3774. CSC has also retained
Merrill Lynch & Co. and Banc of America Securities LLC as
Solicitation Agents for the consent solicitation.
Questions regarding the terms of the consent solicitation should
be directed to the Solicitation Agents at:
-- Merrill Lynch
Tel: (888) 654-8637 or (212) 449-4914 (collect), or
-- Banc of America Securities
Tel: (866) 475-9886 or (704) 386-3244 (collect).
The Consent Solicitation is being made solely pursuant to CSC's
Consent Solicitation Statement dated Feb. 21, 2007, and the
related Letter of Consent. Notwithstanding CSC's intention to
seek waivers, no assurance can be given that an event of default
under one or more of the indentures will not occur in the
future.
About Computer Sciences
Headquartered in El Segundo, Calif., Computer Sciences
Corporation (NYSE: CSC) -- http://www.csc.com/-- is an
information technology services company. The company's services
include systems design and integration; IT and business process
outsourcing; applications software development; Web and
application hosting; and management consulting. The company has
operations in Singapore, the United Kingdom and Thailand.
DAIMLERCHRYSLER: Finalizes Pact with Canadian Auto Workers
----------------------------------------------------------
The Canadian Auto Workers and DaimlerChrysler Canada Inc. have
finalized an agreement to mitigate the personal impact of the
company's workforce reduction plan.
The agreement creates retirement and separation incentives to
help reduce DaimlerChrysler's Canadian hourly workforce, as part
of the company's Recovery and Transformation plan.
The programs, full details of which will be relayed to employees
shortly, are specifically designed for the workforces at the
Windsor Assembly Plant, Brampton Assembly Plant, and
Etobicoke Casting Plant.
These retirement and separation incentives are intended to help
those who are eligible to retire or interested in leaving the
workforce to do so and at the same time provide job
opportunities for other workers.
The incentives negotiated, which follow the pattern established
earlier at Ford of Canada, include:
-- US$70,000 in enhanced retirement allowance for eligible
production workers and US$85,000 for eligible skilled
trades workers;
-- those eligible to retire also receive a US$30,000 voucher
toward the purchase of a Chrysler vehicle registered in
either the employee's or their spouse's name;
-- anyone eligible to retire who declines all post-retirement
benefits (other than pension benefits) receives an
additional US$40,000;
-- there will be Separation of Employment offers, for those
not eligible to retire, of US$50,000 with one to five
years service; US$75,000 with five to eight years service,
and of US$100,000 for workers with eight or more years of
service. The total number of separation packages will be
determined from location to location.
"These incentives are an effort on the part of the union and
company to protect the jobs of CAW members with young families
and at the same time will help with the transition for
retirement eligible workers," said CAW President Buzz Hargrove.
"The Chrysler Group's Recovery and Transformation Plan calls for
our Canadian operations to continue to operate at full capacity,
but to become more productive and thus more competitive," said
Ken McCarter, DaimlerChrysler Vice President, Labor Relations.
"In order to reduce our Canadian hourly workforce,
DaimlerChrysler and the CAW have agreed upon socially
responsible separation incentives. With this agreement, we can
support those who choose to leave the company and lower the
number of employees on layoff."
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
KRUNG THAI: To Sell NPLs Worth THB15 Bil. to Meet Growth Targets
----------------------------------------------------------------
Krung Thai Bank expects to sell THB15 billion worth of non-
performing loans this year, or almost triple the bank's sales in
2006, The Bangkok Post reports.
Moreover, The Post, citing KTB's senior executive vice-president
for the asset management group, Sayan Satangmongkol, relates
that the bank would expand its marketing channels to meet the
aggressive growth target.
In addition, the bank plans to use affiliates Krung Thai Asset
Management and Sukhumvit Asset Management to also divest some
property assets, possibly through property fund structures, the
report says. Some of the assets will also be sold off to
Bangkok Commercial Asset Management, as well as to property
developers for renovation.
Mr. Sayan, according to The Post, said that KTB planned to sign
contracts to sell THB1.5 billion in assets to BAM next month.
KTB has also contacted with local property brokers to be sales
agents for its property assets.
The Post recounts that KTB sold THB6 billion worth of non-
performing assets in 2006, reducing its portfolio to
THB37.78 billion at the end of December 2006.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 15, 2007 that Krung Thai Bank expects to reduce its
non-performing loans by one to two percentage points this year
through writeoffs and debt restructuring. The TCR-AP also
stated that KTB recorded gross non-performing loans of 9% of
total loans at the end of 2006, with net bad loans of 6% after
deducting provisions.
By the end of the year, non-performing assets are expected to
fall to THB30 billion, assuming the sales target is met and new
assets are seized by the bank, The Post relates.
About Krung Thai Bank
Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/
-- began its operation on March 14, 1966, through the merger of
business between the Agricultural Bank Limited and the
Provincial Bank Limited with the Ministry of Finance as its
major shareholder.
The Bank provides financial assistance to large and small
business, it also renders financial assistance to other state
enterprises, both business-oriented and public utility types.
Currently the bank is operating 511 domestic and 12 foreign
branches and representative offices.
* * *
The Troubled Company Reporter - Asia Pacific reported that Fitch
Ratings, on October 23, 2006, affirmed the C/D individual rating
of Krung Thai Bank and removed them from Rating Watch Negative
on which they were placed on September 20, 2006 following the
military coup.
The outlook on their ratings is now stable.
The Troubled Company Reporter - Asia Pacific reported on
Oct. 6, 2006, that Moody's has reinstated the Ba1 rating
previously assigned to Krung Thai Bank Public Company Ltd's
(KTB, D-/Baa1/P-2) Hybrid Tier 1 securities being issued via its
Singapore branch. The rating outlook is stable.
The TCR-AP reported that Standard & Poor's Ratings Services
assigned on September 11, 2006, its BB+ rating to the
perpetual, non-cumulative, hybrid Tier-I securities by Krung
Thai Bank Public Co. Ltd (BBB/Stable/A-2).
TOTAL ACCESS: Predicts Record-Breaking Subscriber Growth in 2007
----------------------------------------------------------------
Due to an aggressive acquisition strategy, Total Access
Communications (DTAC) projects another year of record-breaking
growth in net new subscribers -- 3 million new users including
2.2 million prepaid customers -- The Bangkok Post reports.
According to The Post, DTAC Chief Executive Officer Sigve
Brekke, however, sees a flat growth in average revenue per user
because of intense market competition, although he is hoping for
more customers in 2007.
Mr. Brekke said that four key factors would win subscribers:
more free SIM cards, on-net tariff promotions, network
availability in remote areas, and an increasing number of
subscribers taking advantage of different promotions by having
two SIM cards, the report states.
The report also says that DTAC executives have planned to visit
China, India and Ukraine this year to study business models and
marketing methods of major operators to gain better access to
users in Thailand's rural areas.
The Post adds that the company has allocated THB12 billion for
network expansion for 2007, which involves building 1,200 new
base stations mostly in northern and southern provinces,
bringing its total to 9,000.
The report states that DTAC plans to spend THB700 million on
marketing this year, and a Web site --
http://www.thehappyvirus.co.th/-- will be launched in April
2007 to target teenagers.
About Total Access Communications, DTAC
Total Access Communications, DTAC -- http://www.dtac.co.th/--
is the second-largest cellular operator in Thailand with an
approximately 30% market share and strong brand recognition.
With Telenor's recent purchase of a 39.9% interest in United
Communication Industry Plc and its subsequent tender offers for
UCOM and DTAC shares, Telenor lifted its aggregate economic
interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest
acquisition in Asia and it ranks second in terms of EBITDA
contribution outside Norway.
Standard and Poor's gave the Company a BB+ Long-term local and
foreign issuer credit ratings.
DTAC's local and foreign issuer credit were both given a Ba1
rating by Moody's Investor Service.
On Jan. 12, 2007, Fitch Ratings affirmed the ratings of Total
Access Communication following the proposed amendments to
Thailand's Foreign Business Act.
-- Long-term foreign currency Issuer Default rating at BB+;
-- National Long-term rating at A(tha);
-- National Short-term rating at F2(tha); and
-- National senior unsecured rating at A(tha).
The Outlook on DTAC's ratings is Stable.
TRUE MOVE: Court Reissues Order for TOT to Integrate 1.5M Nos.
--------------------------------------------------------------
The Central Administrative Court ordered TOT Corp PLC to abide
by an earlier injunction to integrate 1.5 million new mobile
numbers allocated by the company to True Move Company Limited,
The Bangkok Post reports.
According to the report, a representative of True Move told the
central court that out of the 1.5 million new subscription
numbers, 292,272 have already been sold to subscribers and not
one of them had been connected to TOT's fixed-line network,
prompting customers to complain via e-mail and voice messages.
The Troubled Company Reporter - Asia Pacific reported on
Feb. 5, 2007, that Thailand's National Telecommunications
Commission instructed TOT PCL to integrate 1.5 million new
mobile-phone numbers, given to True Move, into its system
immediately and permanently. The TCR-AP also stated that the
NTC also instructed TOT to do the same with True Move's rival,
Total Access PCL (DTAC).
The TCR-AP said, however, that TOT declined to integrate
True Move and DTAC's new numbers into its network on the grounds
that both companies had not paid their access charges.
The Post says that both private companies have argued that these
access charges have now been superseded by a new system of
interconnection fees -- amounts companies charge each other for
handling call traffic across networks.
According to The Post, TOT representative Prinya Visetsiri
admitted that the company had not yet integrated the new
True Move numbers to its fixed-line network because TOT had
filed an appeal with the Supreme Administration Court seeking
relief from the earlier order made by the Central Administrative
Court, and as long as the appeal was in the high court, there
was no need for TOT to comply with the lower court's ruling.
Mr. Prinya added that TOT had not yet received any notification
from the Supreme Administrative Court as to when the appeal
would be heard, The Post adds.
The Post explains that since TOT's appeal to the Supreme
Administration Court will not hold ground without a ruling, the
Central Administrative court went ahead and re-issued its order
to TOT, along with a summon for TOT's president to testify on
the matter on March 2, 2007.
About TOT Corporation Public Company Limited
State owned TOT Corporation -- http://www.tot.co.th/-- has
exclusive rights to own and operate all domestic fixed-line
infrastructure in Thailand. It has granted concessions to two
private sector operators -- True Move and DTAC PLC -- who
compete with it in Bangkok and the provinces. TOT provides
nationwide fixed-line services, regional telephony, corporate
data networking, VoIP, Internet access and payphone services;
and a GSM mobile service called Thai Mobile. In 2004, TOT is
entering the international telephony and broadband ADSL markets.
The company is expected to conduct its IPO once issues over
concession valuations and interconnection fees have been solved.
About True Move
True Move Company Limited, formerly TA Orange, is a wholly owned
subsidiary of True Corp Pcl. The company is headquartered in
Bangkok, Thailand, and is the country's third largest mobile
telecommunications operator.
As reported by the Troubled Company Reporter - Asia Pacific on
Nov. 27, 2006, Standard & Poor's Ratings Services assigned its
BB- long-term corporate credit rating to Thailand's third-
largest cellular operator, True Move Co. Ltd. The outlook is
negative.
In addition, Standard & Poor's assigned its B issue rating to
True Move's senior unsecured notes, assuming a debt size of
about US$450 million.
Moreover on Dec. 20, 2006, the TCR-AP reported that Moody's
Investors Services affirmed its B1 corporate family rating for
True Move Company Limited and its B2 senior unsecured long-term
debt ratings for True Move's US$465 million Notes issue, due
2013, and removed all ratings from their provisional status.
* BOND PRICING: For the Week 19 February to 23 February 2007
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA & NEW ZEALAND
-----------------------
Ainsworth Game 8.000% 12/31/09 AUD 0.85
Alinta Networks 5.750% 09/22/10 AUD 6.74
APN News & Media Ltd 7.250% 10/31/08 AUD 6.03
A&R Whitcoulls Group 9.500% 12/15/10 NZD 9.40
Arrow Energy NL 10.000% 03/31/08 AUD 1.35
Babcock & Brown Pty Ltd 8.500% 12/31/49 NZD 7.30
Becton Property Group 9.500% 06/30/10 AUD 0.86
BIL Finance Ltd 8.000% 10/15/07 NZD 9.75
Capital Properties NZ Ltd 8.500% 04/15/07 NZD 9.75
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 8.06
Cardno Limited 9.000% 06/30/08 AUD 5.90
CBH Resources 9.500% 12/16/09 AUD 0.49
Chrome Corporation Ltd 10.000% 02/28/08 AUD 0.17
Clean Seas Tuna Ltd 9.000% 09/30/08 AUD 0.86
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.62
Evans & Tate Ltd 8.250% 10/29/07 AUD 0.44
Fletcher Building Ltd 8.600% 03/15/08 NZD 8.40
Fletcher Building Ltd 7.800% 03/15/09 NZD 8.15
Fletcher Building Ltd 8.850% 03/15/10 NZD 8.35
Fletcher Building Ltd 7.550% 03/15/11 NZD 8.50
Futuris Corporation Ltd 7.000% 12/31/07 AUD 2.46
Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 8.15
Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 11.50
Hutchison Telecoms Australia 5.500% 07/12/07 AUD 0.58
IMF Australia Ltd 11.500% 06/30/10 AUD 0.82
Infrastructure & Utilities
NZ Ltd 8.500% 09/15/13 NZD 8.50
Infratil Ltd 8.500% 11/15/15 NZD 8.18
Kiwi Income Properties Ltd 8.000% 06/30/10 NZD 1.21
Minerals Corporation Ltd 10.500% 09/30/07 AUD 0.87
Nuplex Industries Ltd 9.300% 09/15/07 NZD 9.50
Geon Group 10.250% 10/15/09 NZD 12.00
Primelife Corporation 10.000% 01/31/08 AUD 1.03
Salomon SB Australia 4.250% 02/01/09 USD 7.65
Silver Chef Ltd 10.000% 08/31/08 AUD 1.00
Software of Excellence 7.000% 08/09/07 NZD 1.75
Speirs Group Ltd. 10.000% 06/30/49 NZD 61.00
Structural Systems 11.000% 06/30/07 AUD 1.60
TrustPower Ltd 8.300% 09/15/07 NZD 8.65
TrustPower Ltd 8.300% 12/15/08 NZD 8.05
TrustPower Ltd 8.500% 09/15/12 NZD 8.00
TrustPower Ltd 8.500% 03/15/14 NZD 8.15
KOREA
-----
Korea Development Bank 7.350% 10/27/21 KRW 49.83
Korea Development Bank 7.450% 10/31/21 KRW 49.80
Korea Development Bank 7.400% 11/02/21 KRW 49.79
Korea Development Bank 7.310% 11/08/21 KRW 49.74
Korea Development Bank 8.450% 12/15/26 KRW 70.96
MALAYSIA
--------
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.85
AHB Holdings Bhd 5.500% 03/06/07 MYR 0.17
Asian Pac Bhd 4.000% 12/21/07 MYR 0.30
Berjaya Land Bhd 5.000% 12/30/09 MYR 1.09
Bumiputra-Commerce 2.500% 07/17/08 MYR 1.50
Camerlin Group Bhd 5.500% 07/15/07 MYR 2.20
Crescendo Corporation Bhd 3.000% 08/25/07 MYR 0.93
Denko Industrial Corp. Bhd 5.000% 03/15/07 MYR 0.69
Eastern & Oriental Hotel 8.000% 07/25/11 MYR 2.11
Eden Enterprises (M) Bhd 2.500% 12/02/07 MYR 0.95
EG Industries Bhd 5.000% 06/16/10 MYR 0.81
Equine Capital Bhd 3.000% 08/26/08 MYR 0.42
Greatpac Holdings Bhd 2.000% 12/11/08 MYR 0.31
Gula Perak Bhd 6.000% 04/23/08 MYR 0.46
Hong Leong Industries Bhd 4.000% 06/28/07 MYR 0.90
Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.59
I-Berhad 5.000% 04/30/07 MYR 0.63
Insas Bhd 8.000% 04/19/09 MYR 0.87
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.45
Kosmo Technology Industrial 2.000% 06/23/08 MYR 0.85
Kretam Holdings Bhd 1.000% 08/10/10 MYR 0.66
Kumpulan Jetson 5.000% 11/27/12 MYR 0.55
LBS Bina Group Bhd 4.000% 12/31/07 MYR 0.60
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.60
LBS Bina Group Bhd 4.000% 12/31/09 MYR 0.60
Media Prima Bhd 2.000% 07/18/08 MYR 1.60
Mithril Bhd 8.000% 04/05/09 MYR 0.41
Mithril Bhd 3.000% 04/05/12 MYR 0.63
Nam Fatt Corporation Bhd 2.000% 06/24/11 MYR 0.81
Pelikan Int'l Corp Bhd 3.000% 04/08/10 MYR 1.62
Pelikan Int'l Corp Bhd 3.000% 04/08/10 MYR 1.61
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.21
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.87
Ramunia Holdings 1.000% 12/20/07 MYR 1.01
Rashid Hussain Bhd 3.000% 12/23/12 MYR 1.52
Rashid Hussain Bhd 0.500% 12/24/12 MYR 1.61
Rhythm Consolidated Bhd 5.000% 12/17/08 MYR 0.42
Silver Bird Group Bhd 1.000% 02/15/09 MYR 0.30
Southern Steel 5.500% 07/31/08 MYR 1.69
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 1.30
Tradewinds Corp. 2.000% 02/08/12 MYR 0.70
Tradewinds Plantations Bhd 3.000% 02/28/16 MYR 0.92
TRC Synergy Berhad 5.000% 01/20/12 MYR 1.91
WCT Land Bhd 3.000% 08/02/09 MYR 1.65
Wah Seong Corp 3.000% 05/21/12 MYR 3.00
YTL Cement Bhd 4.000% 11/10/15 MYR 2.00
SINGAPORE
---------
Sengkang Mall 4.880% 11/20/12 SGD 0.60
Sengkang Mall 8.000% 11/20/12 SGD 0.98
*********
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 ***