/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/070228.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 Wednesday, February 28, 2007, Vol. 10, No. 42 Headlines A U S T R A L I A ADVANCED MARKETING: Answers Objections to Houlihan Retention ADVANCED MARKETING: Amends Wells Fargo DIP Loan Facility AWB LIMITED: Says Drought to Adversely Affect 2006/2007 Earnings ASFORM PTY: Will Declare Dividend on April 13 BEYOND ELECTRICAL: Creditors Agree to Wind Up Operations BRIGHTPOINT INC: Secures US$165 Mil. Revolving Credit Facility COUNTRY FINANCE: Members' Final Meeting Slated for March 27 CRINALIN PTY: Undergoes Members' Voluntary Liquidation DANCE GROUP: Subsidiaries Undergo Liquidation Proceedings DARFIELD PTY: Members' Final Meeting Slated for April 2 DOMETEK PTY: Members and Creditors to Receive Wind-Up Report ERNEST SMITH: To Declare Dividend for Unsecured Creditors FLOWCRETE CONCRETE: Members and Creditors to Meet on March 29 GEMA PROFESSIONAL: Members & Creditors to Receive Wind-Up Report HEALTHPOINT BELMONT: Appoints Doran and Campbell as Liquidators HEALTHPOINT ELLENBROOK: Members Resolve to Shut Down Business HUTCHISON TELECOMMUNICATIONS: Posts AU$759-Mln. Net Loss in 2006 INTELLECT HOLDINGS: Secures New Funding Facility of AU$11 Mln. JENJAM PTY: Liquidator to Present Wind-Up Report KUZMINA PTY: Commences Liquidation Proceedings LAYERDALE PTY: Members to Hold Final Meeting on March 21 MELJON CONSULTING: Will Declare Dividend on April 12 MGM MIRAGE: Inks Partnership Agreement with Jeanco Realty POLYPORE INT'L: Good Performance Prompts S&P's Revised Outlook PRIMUS TELECOMMS: NY Court Denies Noteholders' Injunctive Relief SMARTIRE SYSTEMS: Amends Purchase Deal with Xentenial Holdings SUNCORP-METWAY: 2006 2nd Half NPAT Grows 16.1% to AU$527 Million SUNCORP-METWAY: To Acquire Promina Reset Preference Shares TAMSITY PTY: Commences Liquidation Proceedings TELBAZ PTY: Placed Under Members' Voluntary Liquidation THE MOVIEFINDERS: To Declare First Dividend for Employees C H I N A & H O N G K O N G ACTIVE ENERGY: Creditors Must Prove Debts by March 23 BANK OF COMMUNICATIONS: To Issue CNY25 Bil. Subordinated Bonds BENQ CORP: Assets to Land in eBay & Second-Hand Market CENTIGAIN LIMITED: Liquidator to Receive Claims Until March 23 CHONGQING CHANGAN: Parent Ups Production and Sales Target By 20% DONGFENG ELECTRONIC: Implements Share Merger Reform FAIR BUSINESS: Taps Lam Kwong Chak, Zaloit as Liquidator HUA HIN: Placed Under Members' Voluntary Liquidation HUNAN GENUINE: Reapplies for Listing Despite Unqualified Audit JIAOZUO XIN'AN: Faces Bankruptcy Petition from Five Creditors RAINBOW PLAZA: Creditors' Proofs of Debt Due on March 23 REFCO FOREX: Members to Receive Wind-Up Report RICHEST CENTURY: Creditors Must Prove Debts by March 23 SHANGHAI TYRE: Finds Partner for Joint Venture SHENZHEN SEG: Reports 16% Increase in Net Income For 2006 SICHUAN CHANGJIANG: Acquires Undergarments Company For CNY69MM SPARKLE TREE: Sutton and Chiong Quit Liquidator Posts SPEEDTEX GARMENT: Members and Creditors to Meet on March 27 SUNNY BAY: Members' Final Meeting Slated for March 26 SUNNY EAGLE: Will Receive Claims Until March 23 TUNG DA AV: Joint Liquidators Quit Posts I N D I A ICICI BANK: Signs Exclusive Cooperation Pact with BMW India ICICI BANK: Signs Cooperation Agreement with Austria's RLB IFCI LTD: Clarifies Report on Malvika Steels Sale OCWEN FINANCIAL: Gets US$45.9-Million Share from BMS Holdings ROYAL & SUNALLIANCE: Gets Conditional Approval to Sell U.S. Unit I N D O N E S I A ALCATEL-LUCENT: Will Build WiMax Network for Telmex Chile ALCATEL-LUCENT: Alliances Director Named to WiMAX Forum Board ANEKA TAMBANG: Seeks US$70 Mil. in Loans, Bisnis Indonesia Says AVNET INC: Launches Redesigned Investor Relations Web Site BANK NEGARA: Government and Parliament Delay Divestment FREEPORT-MCMORAN: Moody's Confirms 'Ba3' Corporate Family Rating FREEPORT-MCMORAN: Pays Indonesian Gov't. US$1.6-Bil in 2006 GENERAL NUTRITION: S&P Lowers Corporate Credit Rating to B- GENERAL NUTRITION: Reports Estimated 4Q 2006 Financial Results HILTON HOTELS: Moody's Upgrades Corporate Family Rating to 'Ba1' J A P A N ALL NIPPON: In Talks With Asiana Air Over New Flights, Products INFOR GLOBAL: Increased Debt Prompts S&P's Stable Outlook JAPAN AIRLINES: To Redeem JPY79.7 Billion of Bonds on March 25 NIKKO CORDIAL: Citigroup Stake Raise May Improve S&P's Ratings NIKKO CORDIAL: Mizuho Enters Picture After News on Citigroup Bid SADIA SA: S&P Affirms BB Long-Term Corporate Credit Rating SOJITZ CORP: S&P Lifts Credit Rating to BB+ on Bond Conversion XEROX CORPORATION: Increases Share Repurchase Program K O R E A EUGENE SCIENCE: Gets Patents for Wider PlantSterol Application EUGENE SCIENCE: Teams with RexGene for Nutraceutical Line HANAROTELECOM: Plans to Spend Up to KRW340 Bil. in 2007 CAPEX HYNIX SEMICONDUCTOR: Records 33% Increase in Fourth Qtr. Revenue HYNIX SEMICONDUCTOR: Injects Funds into Two Units INDUSTRIAL BANK: Hikes Dividends After KRW1.05-Tril. 2006 Profit INDUSTRIAL BANK: Divests LG Card Stakes JEONBUK BANK: To Issue 7.13 Million Shares to Raise Capital M A L A Y S I A COMSA FARMS: Bursa Decides to Delist Securities on March 8 HONG LEONG: 2006 2nd Half Pre-Tax Profit Increases by 23% YOY MEGASTEEL BERHAD: To Issue Shares to Raise MYR200 Million SILVERSTONE CORP: Fails to File Plan; Bursa to Delist Securities STAR CRUISES: New Fleet Member to Debut in Hong Kong in June STAR CRUISES: Unit Inks Agreement to Buy 75% in Macau Land TAP RESOURCES: Units Set Creditors' Meeting for Planned Wind-Up TENAGA NASIONAL: Mulls Selling Shares in Indonesian Firm N E W Z E A L A N D AIR NEW ZEALAND: 6-Months to Dec. 2006 Net Profit Up 61% AN YING: Court Appoints Joint Liquidators CLEAR CHANNEL: 4th Quarter 2006 Revenues Rose to US$1.94 Billion GENESIS RESEARCH: Records NZ$3.3-Million Net Surplus for 2006 GLASS EARTH: Inks Hauraki Region JV Agreement with Newmont GOURMET CHICKEN: Wind-Up Hearing Slated for May 10 HOWARD ELECTRICAL: Creditors' Proofs of Claim Due on April 5 MAINTENANCE SPECIALISTS: Faces Liquidation Proceedings MOVIT 2000: Court to Hear Liquidation Petition on March 5 MULTI BUILDING: Commences Liquidation Proceedings NELSON ADMINISTRATION: CIR Files Liquidation Petition PETER FLOWER: Creditors to Prove Debts by March 5 ROSKILL METAL: Shareholders Opt to Liquidate Business TECHNOLOGY FINANCE: Liquidation Hearing Set for March 5 TURNERS DEVELOPMENTS: Creditors to Lodge Claims by March 8 ULSTER CORP: Court Hears Liquidation Petition P H I L I P P I N E S CENTRAL AZUCARERA: FY2005-06 Net Loss Narrows 84% to PHP87.48MM RIZAL COMMERCIAL: To List 250 Million Shares on March 29 LAND BANK: Net Income Up 17% to PHP3.53 Billion in 2006 LAND BANK: Loans to Priority Sectors Reach PHP82.6 Bil. in 2006 LAND O'LAKES: Saputo Agreement Prompts S&P's Positive Outlook LAND O'LAKES: Appoints Myron Voth & James Netto as Directors MAGNUM HOLDINGS: Prepares MOA for Advances-Equity Conversion * Philippine Gov't. Confident of Exceeding 2007 Growth Targets S I N G A P O R E ADVANCED SYSTEMS: Director Takes Deemed Shares DAEWOO SINGAPORE: Pays First and Final Dividend GERMAN DISTRICENTRE: Wind-Up Petition Hearing Slated on March 2 OVERSEAS SHIPHOLDING: To Acquire Heidmar Lightering Business PETROLEO BRASILEIRO: Ceara Plant Construction Starts in March PETROLEO BRASILEIRO: Inks Oil & Gas Pact with Gazprom PETROLEO BRASILEIRO: Mulls Biodiesel Plant Works in Bolivia READER'S DIGEST: Extends Tender Offer of Senior Notes to March 1 SEA CONTAINERS: Posts US$7.3 Million Net Loss in December 2006 SCOTTISH RE: Facing Bankruptcy Absent MassMutual/Cerberus Deal T H A I L A N D DAIMLERCHRYSLER: Chrysler's Bidding Process May Start This Week DAIMLERCHRYSLER AG: Hyundai Denies Interest in Chrysler Purchase DAIMLERCHRYSLER AG: Predicts Drop in 2007 Sales for Truck Arm ITV PLC: SET Posts "SP" & "NP" Signs on Financial Issues ITV PLC: SET Orders Halt on Securities Trading KASIKORNBANK: Cuts Deposit Rates By 25 To 50 Basis Points SIAM CITY: Cuts Fixed Deposit Rates to 3.5% From 3.75% * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= ADVANCED MARKETING: Answers Objections to Houlihan Retention ------------------------------------------------------------- Advanced Marketing Services Inc. and its debtor-affiliates have responded to objections raised by the Official Committee of Unsecured Creditors and Kelly Beaudin Stapleton, the United States Trustee for Region 3, questioning the appropriateness and the benefit to the Debtors' estate of the employment of Houlihan Lokey Howard & Zukin Capital as the Debtors' investment banker, nunc pro tunc to Dec. 29, 2006. Mark D. Collins, Esq., at Richards, Layton & Finger, PA, at Wilmington, Delaware, tells the Hon. Judge Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware that if the Debtors' application to employ Houlihan Lokey were denied, the delay that would ensue would cause significant harm to the Debtors. As reported in the Troubled Company Reporter on Feb. 14, 2007, the Debtors sought to employ Houlihan Lokey to act as their investment banker because the firm has substantial expertise in advising them, and is well qualified to perform the services and represent their interests in the Chapter 11 cases. Representing the Unsecured Creditors Committee, Thomas F. Driscoll III, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, objected to the employment of Houlihan Lokey because, given the high fees being asked by the firm, there would be no benefit to the estates and creditors to retain them at this time and that the service for which the firm is to be employed could an be provided by the Debtors' other professionals. Kelly Beaudin Stapleton, the United States Trustee for Region 3, also objected to the firm's professional fees unless and until the applicant shows that there is a benefit to the estate. The fees must be reasonable and necessary, she added. Ms. Stapleton also said that Houlihan Lokey should provide hourly rates for its professionals. Ms. Stapleton also noted that Houlihan Lokey's monthly fee, if allowed, should be subject to Section 330 standards, while the various transaction and financing fees should be disallowed under the "improvident" standard stated in Section 328 and subject to Section 330. Need for Houlihan Lokey's Services The Debtors desperately need the services of Houlihan Lokey, Mr. Collins tells Judge Sontchi. As investment banker, one of Houlihan Lokey's most critical tasks is the valuation of the Debtors' assets to determine whether the greatest value can be achieved through a sale of the assets or through a liquidation of the estates, Mr. Collins explains. He adds that Houlihan Lokey's role is critical and is not duplicative of the roles performed by other professionals in the Debtors' Chapter 11 cases. For its part, Houlihan Lokey points out that the Committee ignores the substantial work the firm has already performed for the Debtors, including running the M&A process for the sale of Advanced Marketing Services Inc., preparing and presenting financial statements to potential buyers, and advising the Debtors regarding negotiations with potential buyers. "On a broader level, the Committee misconstrues the services provided by Houlihan Lokey by implying that its sole function is to find potential buyers," Mr. Collins says. "Significant further activity would need to be done by Houlihan Lokey even after a purchaser is identified," he adds. To address the objections filed by the Committee and the U.S. Trustee, Mr. Collins contends that the overall compensation structure for Houlihan Lokey is comparable to compensation generally charged by investment banking firms of similar stature to Houlihan Lokey for comparable engagements, both in and out of court. The nature of Houlihan Lokey's employment in the Debtors' bankruptcy cases is especially appropriate for pre-approval under Section 328(a) of the Bankruptcy Code, Mr. Collins continues. Accordingly, the Debtors and Houlihan Lokey maintain that the Court should approve the Debtors' employment application pursuant to Section 328(a). Mr. Collins further notes that to demonstrate to the Court that the Debtors and Houlihan Lokey are willing to compromise, both parties would make certain revisions to their engagement letter and the application if the Court approved Houlihan Lokey's employment pursuant to Section 328(a). Among other things, Mr. Collins says, the Debtors would revise their application so that Houlihan Lokey's retention would be granted, nunc pro tunc to Jan. 17, 2007, instead of the Dec. 29, 2006 petition date. Houlihan Lokey, on the other hand, would modify the terms of the engagement letter as suggested by the Committee so that the firm would receive a Transaction Fee during the 12th month "Tail Period," only if an M&A Transaction or Restructuring Transaction is caused or procured by the firm. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom, and Australia, and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a Chapter 11 Plan will expire on Apr. 28, 2007. ADVANCED MARKETING: Amends Wells Fargo DIP Loan Facility -------------------------------------------------------- Advanced Marketing Services Inc. and its debtor-affiliates filed with the Court on February 8 an amendment letter to the DIP Loan Facility modifying certain terms and parts of the DIP Facility. The Hon. Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware has authorized the debtors, on an interim basis, to access the DIP financing facility arranged by Wells Fargo Foothill Inc. for a consortium of lenders. The Senior Facility provides for a revolving line of credit up to a maximum commitment level of US$90,000,000. Among other things, the Debtors, Wells Fargo Foothill as agent to the Debtors' DIP Lenders, and a consortium of lenders agree to amend the definition of: (1) Qualified Transaction Timeline to mean the schedule of events by which the Qualified Transaction is to occur and be accomplished, specifically: (a) On or before 10 calendar days after the Petition Date, the Debtors will have filed in their bankruptcy Cases the Qualified Transaction Motion; (b) On or before 35 calendar days after the filing of the Qualified Transaction Motion, an order, in form and substance acceptable to Wells Fargo and each Lender, will be entered in the Debtors' bankruptcy cases approving the Qualified Transaction Procedures and also on or before 35 calendar days after the filing of the Qualified Transaction Motion, in the event the Qualified Transaction contemplates the sale or disposition of substantially all or a significant portion of the Debtors' assets, the Debtors will (i) designate a buyer as the "stalking horse" bidder for the purchase of the assets -- which will include an executed, definitive asset purchase agreement in form and substance acceptable to Wells Fargo and each Lender -- containing a minimum "stalking horse" bid, without contingencies other than approval of the bid or a higher and better bid by the Court; or (ii) schedule the other sale hearing or procedures as are acceptable to Wells Fargo and each Lender, on conditions approved by Wells Fargo and each Lender; (c) On or before 60 calendar days after the filing of the Qualified Transaction Motion, an order acceptable to Wells Fargo and each Lender will be entered in the Debtors' bankruptcy cases approving the Qualified Transaction Motion; and (d) On or before 75 calendar days after the filing of the Qualified Transaction Motion, Wells Fargo, for the benefit of the Lenders, will have received cash proceeds from the Qualified Transaction in an aggregate amount sufficient to indefeasibly pay all Obligations and all Senior Obligations in full; (2) Budget to mean the week-by-week Projections for the Debtors, delivered to Wells Fargo setting forth the Projected Information, in form and substance satisfactory to Wells Fargo; and (3) Maximum Revolver Amount to mean US$45,000,000, provided, however, that during the period commencing on the date of the entry of the Interim Financing Order through and including the date of entry of the Final Financing Order, the Maximum Revolver Amount will not exceed, as of the Friday of any week, the lesser of (i) US$45,000,000, or (ii) the amount set forth in the Budget as Loan Outstanding for that Friday. A full-text copy of the amendment letter to the DIP Loan Facility is available for free at: http://bankrupt.com/misc/advanced_DIPamendment.pdf About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom, and Australia, and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for Chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a Chapter 11 Plan will expire on Apr. 28, 2007. AWB LIMITED: Says Drought to Adversely Affect 2006/2007 Earnings ---------------------------------------------------------------- In a media release posted at its Web site, AWB Limited stated that its earnings in 2006/2007 will be adversely affected by the prolonged drought resulting in the under-performance of some businesses and changes in wheat marketing arrangements. According to the company's Managing Director Gordon Davis, internal forecasts for underlying profit before tax are currently at the bottom end of the range of analyst expectations between AU$67 million and AU$116 million. Mr. Davis said earnings this financial year will be adversely affected by: * the impact of the continuing drought on the Australian commodity management activities, especially chartering and Grainflow; * the impact of the continuing drought on Landmark rural services business and insurance sales and loan book growth in Landmark Financial Services; * under-performance of the meat and livestock custom feeding business which is being restructured; and * changes in wheat marketing arrangements. Mr. Davis further said that after one-off costs, particularly redundancy and restructuring expenses, AWB expects net profit after tax for the current year to be approximately 30%-40% below the reported net profit after tax result for last financial year of AU$58.1 million. "Our earnings forecasts are highly conditional on the length of the drought and any changes to wheat export marketing arrangements," Mr. Davis said. "We are closely monitoring performance and are continuing to implement remedial measures to minimize the impact of the drought on earnings. We will update shareholders on progress at our half year results in May." About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to AU$5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. In late 2005, AWB was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. However, after auditing AWB's financial results for the fiscal year ended September 30, 2006, Brett Kallio, a partner at Ernst & Young, disclosed that there is inherent uncertainty surrounding the consolidated entity with regard to matters associated with the Federal Inquiry into certain Australian companies in relation to the United Nations Oil-for-Food Programme. Mr. Kallio noted that there is uncertainty as to the nature of the findings of the Oil-for-Food Inquiry and the resultant impact, if any, on the company's financial position, financial performance, cash flows and its operations arising directly or indirectly from the Inquiry. * * * The Troubled Company Reporter - Asia Pacific reported on July 12, 2006, that six American wheat farmers have launched a AU$1-billion class action against AWB in the United States, claiming its dealings in overseas markets damaged their own incomes. According to the TCR-AP report, more farmers are considering joining the class action. The TCR-AP also previously reported that Australian law firm Maurice Blackburn Cashman was considering a class action against AWB on behalf of shareholders who lost money in the wake of the Cole Inquiry. AWB's September 30, 2006, balance sheet showed total assets of AU$5.65 billion and total liabilities of AU$4.52 billion resulting to total shareholders' equity of AU$1.12 billion. ASFORM PTY: Will Declare Dividend on April 13 --------------------------------------------- Asform Pty Limited will declare a first and final dividend for its creditors on April 13, 2007. Creditors who cannot prove their debts by March 15, 2007, will be excluded from the company's distribution of dividend. As reported by the Troubled Company Reporter - Asia Pacific on June 28, 2006, the Supreme Court of New South Wales entered an order to wind up the company's operations. The company's liquidator can be reached at: Geoffrey McDonald c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia BEYOND ELECTRICAL: Creditors Agree to Wind Up Operations -------------------------------------------------------- At an extraordinary general meeting held on Feb. 9, 2007, the creditors of Beyond Electrical Services Pty Ltd agreed to voluntarily wind up the company's operations. Accordingly, Anthony Matthews was appointed as liquidator. The company's Liquidator can be reached at: Anthony Matthews Anthony Matthews & Associates Chartered Accountants Ground Floor, 91 Hutt Street Adelaide, South Australia 5000 Australia Telephone:(08) 8232 8885 Facsimile:(08) 8232 8886 e-mail: info@matthewsassociates.com.au About Beyond Electrical Beyond Electrical Services Pty Ltd is engaged with electrical work. The company is located in South Australia, Australia. BRIGHTPOINT INC: Secures US$165 Mil. Revolving Credit Facility -------------------------------------------------------------- Brightpoint Inc. has secured a new global US$165 million five- year senior secured revolving credit facility from a consortium of nine major U.S. and international lenders led by Banc of America Securities LLC, as lead arranger. The revolving credit facility allows for expansion of up to US$240 million. This new credit facility replaces Brightpoint's existing US$70 million North American asset based credit facility and $50 million Australian Dollar (approximately US$39 million) asset based credit facility in Australia. "This new revolving credit facility will allow Brightpoint flexible access to capital throughout its entire global footprint," said Anthony W. Boor, Executive Vice President, Chief Financial Officer and Treasurer, Brightpoint Inc. Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- engages in the distribution of wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed Brightpoint's long- term local and foreign issuer credit ratings at BB- with a stable outlook. COUNTRY FINANCE: Members' Final Meeting Slated for March 27 ----------------------------------------------------------- The members of Country Finance & Insurance Pty Limited will hold a final meeting on March 27, 2007, at 10:00 a.m., to hear the liquidator's report regarding the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: James Dick Auswild & Co. Pty Limited 1st Floor, 50 Montgomery Street Kogarah, New South Wales Australia About Country Finance Country Finance & Insurance Pty Limited provides management- consulting services. The company is located in New South Wales, Australia. CRINALIN PTY: Undergoes Members' Voluntary Liquidation ------------------------------------------------------ On Feb. 7, 2007, the members of Crinalin Pty Ltd held a general meeting and agreed to wind up the company's operations. In this regard, Gary Peter Doran and Christopher Robert Campbell were appointed as joint liquidators. The company's Liquidators can be reached at: Gary Peter Doran Christopher Robert Campbell Deloitte Touche Tohmatsu Level 14, Woodside Plaza 240 St George's Terrace Perth, Western Australia 6000 Australia About Crinalin Pty Crinalin Pty Ltd is an investor relation company. The company is located in Western Australia, Australia. DANCE GROUP: Subsidiaries Undergo Liquidation Proceedings ---------------------------------------------------------------- On Jan. 25, 2007, the creditors of Dance Civil Operations Pty Ltd and Dance Contracting Pty Ltd -- subsidiaries of Dance Group -- held a general meeting and decided to wind up the companies' operations. Accordingly, Stephen Neville Hall was appointed as liquidator. The Liquidator can be reached at: Stephen Neville Hall Forsyths Chartered Accountants 127 Marius Street Tamworth, New South Wales 2340 Australia About Dance Civil Dance Group -- http://www.dancecon.com.au/-- is involved with civil contracts. Dance Group is a family owned business, which is based in New South Wales, Australia. The company started operations in 1988 trading as Roger Dance Earthmoving, a small bulldozer contracting business, undertaking rural civil work in the New England. Dance Group provides modern & efficient civil contracting services to the construction & agricultural industries. DARFIELD PTY: Members' Final Meeting Slated for April 2 ------------------------------------------------------- The members of Darfield Pty Ltd will hold a final meeting on April 2, 2007, at 9:00 a.m., to receive the liquidator's report pertaining to the company's wind-up proceedings and property disposal. In a report by the TCR-AP, the company was placed under voluntary liquidation on Feb. 20, 2006. The company's liquidator can be reached at: Robert William Cowling 5 Edmunds Street Darwin NT 0800 Australia About Darfield Pty Darfield Pty Ltd is an investor relation company. The company is located in Queensland, Australia. DOMETEK PTY: Members and Creditors to Receive Wind-Up Report ------------------------------------------------------------ The members and creditors of Dometek Pty Ltd will hold a final meeting on March 22, 2007, at 3:30 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. According to the Troubled Company Reporter - Asia Pacific, the company commenced liquidation proceedings on Feb. 15, 2006. The company's liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris 3146 Australia ERNEST SMITH: To Declare Dividend for Unsecured Creditors --------------------------------------------------------- Ernest Smith & Co. Proprietary Limited -- formerly trading as Ernsmiths -- will declare a first and final dividend for its preferred unsecured and unpreferred unsecured creditors on April 10, 2007. Accordingly, unsecured creditors must prove debts by March 13, 2007, to be included in the company's distribution of dividend. The company's liquidators can be reached at: M. C. Hall T. J. Clifton PPB Chartered Accountants 10th Floor, 26 Flinders Street Adelaide, South Australia 5000 Australia Telephone: 8211 7800 About Ernest Smith Ernest Smith & Co Proprietary Limited operates household appliance stores. The company is located in South Australia, Australia. FLOWCRETE CONCRETE: Members and Creditors to Meet on March 29 ------------------------------------------------------------- The members and creditors of Flowcrete Concrete Pumps Pty Limited will hold a final meeting on March 29, 2007, at 10:15 a.m., to receive the liquidator's report regarding the company's wind-up proceedings and property disposal. The company's liquidator can be reached at: C D Darin & Co Chartered Accountant Level 3 12-14, Mount Street North Sydney, New South Wales 2059 Australia About Flowcrete Concrete Flowcrete Concrete Pumps Pty Limited is a distributor of pumps and pumping equipment. The company is located in New South Wales, Australia. GEMA PROFESSIONAL: Members & Creditors to Receive Wind-Up Report ---------------------------------------------------------------- Gema Professional Caterers Pty Limited will hold a final meeting for its members and creditors on March 23, 2007, at 10:30 a.m. At the meeting, the members and creditors will receive the liquidator's final accounts regarding the company's wind-up proceedings and property disposal. According to the Troubled Company Reporter - Asia Pacific, the company entered wind-up proceedings on Oct. 7, 2004. The company's liquidator can be reached at: P. Ngan Ngan & Co, Level 5 49 Market Street Sydney, New South Wales 2000 Australia HEALTHPOINT BELMONT: Appoints Doran and Campbell as Liquidators --------------------------------------------------------------- At an extraordinary general meeting held on Feb. 7, 2007, the members of Healthpoint Belmont Pty Ltd resolved to voluntarily wind up the company's operations. In this regard, Gary Peter Doran and Christopher Robert Campbell were appointed as joint liquidators. The Joint Liquidators can be reached at: Gary Peter Doran Christopher Robert Campbell Deloitte Touche Tohmatsu Level 14, Woodside Plaza 240 St George's Terrace Perth, Western Australia 6000 Australia About Healthpoint Belmont Healthpoint Belmont Pty Ltd is a distributor of durable goods. The company is located in Western Australia, Australia. HEALTHPOINT ELLENBROOK: Members Resolve to Shut Down Business ------------------------------------------------------------- On Feb. 7, 2007, the members of Healthpoint Ellenbrook Pty Ltd held a general meeting and agreed to shut down the company's business. Accordingly, Gary Peter Doran and Christopher Robert Campbell were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Gary Peter Doran Christopher Robert Campbell Deloitte Touche Tohmatsu Level 14, Woodside Plaza 240 St George's Terrace Perth, Western Australia 6000 Australia About Healthpoint Ellenbrook Healthpoint Ellenbrook Pty Ltd provides health and allied services. The company is located in Western Australia, Australia. HUTCHISON TELECOMMUNICATIONS: Posts AU$759-Mln. Net Loss in 2006 ---------------------------------------------------------------- Hutchison Telecommunications (Australia) says it is well-placed to attract more customers to its 3G (third generation) mobile phone network in 2007, after reporting an annual net loss of AU$759.4 million, the Sydney Morning Herald says, citing a report from the Australian Associated Press. The result for the 2006 calendar year is higher compared with a loss of AU$547.3 million for the 2005 year, AAP reveals, noting that the latest result included an impact of AU$307.9 million related to the closure of the CDMA (Code Division Multiple Access) network. After eliminating the network closure costs from the reported result, the company's underlying result was a net loss of AU$451.5 million, an improvement of AU$95.8 million, the Sydney Herald says. "With 3G market growth set to accelerate and as migration activity from 2G (second generation) networks increases, we are well placed to attract more customers to 3 and continue to lead in 3G services, innovation and usage," AAP cites Chief Executive Nigel Dews, as saying. According to AAP, Hutchison's revenue rose 15.6% to AU$1.06 billion for the year to Dec. 31, 2006. The company did not declare a final dividend, AAP notes. The Sydney Herald relates that Hutchison's earnings before interest, tax, depreciation and amortisation (EBITDA) was a positive AU$30.2 million, an improvement of AU$195.8 million over the EBITDA loss of AU$165.6 million of 2005. The paper explains that the 2006 EBITDA improvement was a result of a 22% lift in service revenue, 25% growth in operating margins and a 7% decline in running operating expenses. About Hutchison Headquartered in New South Wales, Australia, Hutchison Telecommunications (Australia) Limited -- http://www.hutchison.com.au/-- is engaged in the ownership and operation of wideband code division multiple access (W-CDMA), third-generation (3G) mobile network (branded 3) across the five mainland capital cities and national capital, Canberra; the ownership and operation of a code division multiple access (CDMA) network (branded Orange) mobile in and around Sydney and Melbourne, and a national paging and messaging service under the Orange brand. 3 is part of the global telecommunication operations of Hutchison Whampoa Limited. In February 2006, Hutchison re- branded its CDMA network to 3 CDMA. 3 CDMA provides customer with voice and basic messaging services. 3 also provides a range of paging, messaging and portable information services. The Troubled Company Reporter - Asia Pacific reported on Jan. 26, 2007, that Hutchison's balance sheet as of Jan. 25 recorded US$1696.65 million in total assets and US$786.31 million in stockholders' equity deficit. The company recorded a AU$759.4-million net loss for the 2006 fiscal year, compared with a AU$547.3-million loss for 2005. INTELLECT HOLDINGS: Secures New Funding Facility of AU$11 Mln. -------------------------------------------------------------- In a statement dated Feb. 16, 2007, the directors of Intellect Holdings Limited disclosed that they have secured a new funding facility to finance the increasing order book for the Group. The new Facility totals AU$11 million and is available to June 30, 2008. The funds will be used to retire AU$6 million of existing short-term funding and provide the company with the working capital required to meet the increasing order book and large prospective contracts the company is currently pursuing. "We are pleased with the significant uptake in the order levels that we have seen in recent months. We are confident that this new facility will allow the company to continue on this path," Mr. Warren McLeland, Chairman, said. "This funding arrangement, together with increased efficiencies in the manufacturing supply chain, will allow the company to respond better and faster to delivery and service expectations in the market, with both new and traditional customers," Pieter Marx, Intellect International's Managing Director said. Recent order include 15,000 Presto units from customers in Asia, Latin America, and Europe. In addition the company is in the process of delivering 3,000 units to a customer in the Middle East, which is expected to lead to further orders of 50,000 units. A second Middle East order of 50,000 units is also being negotiated. These contracts have an estimated value of over AU$20 million. The company also wishes to update the market in respect to negotiations with Cadmus Technology Limited. Intellect and Cadmus have previously announced that they were negotiating the sale of Intellect's operating subsidiary, Intellect International, to Cadmus in exchange for shares in Cadmus. The negotiations were delayed during the Christmas break and to allow each company the opportunity to carry out further due diligence in respect to the transaction. Intellect also sought to finalize its new funding facility during this period. Discussions are continuing between the parties with a view to agreeing the final terms of the transaction. The market will be kept informed of any further developments. About Intellect Holdings Headquartered in New South Wales, Intellect Holdings Limited -- http://www.intellect.com.au/-- operates predominantly in the design, marketing, distribution and manufacturing of security and electronic funds transfer and encapsulated solid state keyboard technology. The company carries out its operations in Australia/Asia and Europe/Americas. The areas of operation in Australia are principally sales, distribution, service, assembly and research and development, as well as certain head office activities. Other distribution operations are carried on from its Hong Kong office (Intellect Asia Limited). Belgium is the home country of the main operating entity Intellect International NV and the physical location of the company's head office. Intellect International NV carries out sales, distribution, service, assembly, manufacturing and research & development activities. On July 5, 2006, Intellect and Cadmus Technology Limited (Cadmus) announced a proposal to merge their businesses. Significant Doubt on Going Concern After auditing its annual report for the year ended June 30, 2006, PriceWaterhouseCoopers, the company's independent auditors, stated that there is significant uncertainty whether the company will be able to continue as a going concern. The auditors pointed out that in the financial year ended June 30, 2006, the company has recorded a net loss of AU$10.5 million and a net operating cash outflow of AU$3.6 million. The company also has net liabilities of AU$1.1 million and net current liabilities of AU$2.4 million as of June 30, 2006. The auditors added that the continuing viability, in the short term, of the consolidated entity and its ability to continue as a going concern and meet its debts and commitments as and when they fall due remains dependent upon generating revenues and cash flows, reducing operating costs, achieving delivery schedules, working within available funding facilities and achieving a favorable outcome on legal claims outstanding. JENJAM PTY: Liquidator to Present Wind-Up Report ------------------------------------------------ Jenjam Pty Ltd will hold a final meeting on March 29, 2007, at 10:00 a.m. At the meeting, Liquidator Jamie Owen Neill will present the final report pertaining to the company's wind-up proceedings and property disposal. In a report by the Troubled Company Reporter - Asia Pacific, the company underwent liquidation proceedings on June 29, 2006. The company's liquidator can be reached at: Jamie Owen Neill 3 Heron Cove Marina Queens Parade West Newport, New South Wales Australia KUZMINA PTY: Commences Liquidation Proceedings ---------------------------------------------- At a general meeting held on Feb. 14, 2007, the members of Kuzmina Pty Ltd passed a resolution to voluntarily wind up the company's operations. Accordingly, Peter Belcastro was appointed as liquidator. The company's Liquidator can be reached at: Peter Belcastro 13 The Crescent Penrith, New South Wales 2750 Australia About Kuzmina Pty Kuzmina Pty Ltd is a distributor of durable goods. The company is located in New South Wales, Australia. LAYERDALE PTY: Members to Hold Final Meeting on March 21 -------------------------------------------------------- The members of Layerdale Pty Ltd will have their final meeting on March 21, 2007, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. As reported by the TCR-AP, the company entered wind-up proceedings on Aug. 18, 2006. The liquidator can be reached at: Alison Nicole Schelberg 146 Mort Street Toowoomba, Queensland 4350 Australia MELJON CONSULTING: Will Declare Dividend on April 12 ---------------------------------------------------- A first and final dividend will be declared for the creditors of Meljon Consulting Pty Limited on April 12, 2007. Creditors must prove debts by March 13, 2007, to be included in the company's distribution of dividend. The company went into liquidation on Aug. 9, 2006, the Troubled Company Reporter - Asia Pacific reported. The liquidator can be reached at: R. M. Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 MGM MIRAGE: Inks Partnership Agreement with Jeanco Realty --------------------------------------------------------- MGM MIRAGE has entered into a partnership agreement with Jeanco Realty Development LLC to form a 50/50 joint venture whose purpose is to master plan a mixed-use development on approximately 166-acres of land owned by MGM MIRAGE in Jean, Nevada. The agreement values the Jean assets, which currently generate approximately US$6 million of annual cash flow, at US$150 million. "As part of our continuing commitment to Southern Nevada, we envision the creation of a community featuring residential, commercial and retail elements in addition to a new hotel casino," said Terry Lanni, MGM MIRAGE Chairman and CEO. "We're very enthusiastic at the prospect of working with our new partners on this new development which we anticipate will have a positive impact on our community overall." "We are delighted that we have this opportunity with MGM and Diamond to use our four decades of mixed-use and community development experience to help provide Southern Nevada with a more positive and enriching environment in Jean," said Brian Greenspun, Chairman of the Greenspun Companies. "We have always believed in the future of Southern Nevada and this is another ANC commitment to play our part in making the dream of Las Vegas better." At present, the company operates Nevada Landing Casino and the Gold Strike Hotel and Casino in Jean. Both properties became part of the MGM MIRAGE portfolio during the Mandalay Resort Group merger in April 2005. A full-text copy of MGM Mirage and Jeanco Realty's Operation Agreement is available at no charge at: http://ResearchArchives.com/t/s?19fc Las Vegas, Nev.-based, MGM Mirage -- http://www.mgmmirage.com/ -- owns and operates 12 casino resorts located in Nevada, Mississippi, Michigan, and Australia, and has investments in three other casino resorts in Nevada, New Jersey, and Macau. The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services assigned its 'BB' rating to MGM Mirage's proposed US$750 million senior unsecured notes due 2017, which will be sold pursuant to a prospectus dated May 9, 2006. Moody's Investors Service assigned a Ba2 rating to the new US$750 million senior unsecured guaranteed notes due 2017, raised the SGL rating to SGL-2 from SGL-3 and affirmed MGM Mirage's other existing ratings. The new notes will rank pari- passu with existing senior unsecured debt and proceeds of the notes will be used to term out existing bank revolver debt. POLYPORE INT'L: Good Performance Prompts S&P's Revised Outlook -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Charlotte, North Carolina-based Polypore International Inc. and its subsidiary Polypore Inc. to stable from negative. At the same time, Standard & Poor's affirmed its ratings on the company, including its 'B' corporate credit rating. "The outlook revision acknowledges the company's progress in stabilizing operating performance especially in its healthcare segment, its positive free cash flow generation despite significant cash restructuring costs, and its adequate liquidity," said Standard & Poor's credit analyst Gregoire Buet. Polypore experienced a significant drop in revenue and operating profits during 2005, caused by a conjunction of adverse factors, notably a change in customer and product mix, volatile demand for lithium separators in the energy storage business, and by the loss of one of its largest hemodialysis customers, as market demand is rapidly shifting from cellulosic to synthetic membranes technology. Performance stabilized in 2006 as the company benefited from volume growth in energy storage and from its lower-cost production facilities in Asia. Polypore also exited the production of cellulosic membranes because demand has weakened below economically profitable levels, and alternative synthetic membranes technology is progressively gaining customer acceptance. As a result, operating margins remain sound, close to 30%. Despite cash restructuring costs and higher capital expenditures expected in 2007, the company should continue to generate positive free operating cash flow. The ratings continue to reflect Polypore's highly leveraged financial risk profile characterized by very high debt levels and weak credit metrics. Polypore International Inc. -- http://www.polypore.net/-- is a worldwide developer, manufacturer and marketer of highly specialized polymer-based membranes used in separation and filtration processes. Polypore's products and technologies target specialized applications and markets that require the removal or separation of various materials from liquids, with concentration in the ultrafiltration and microfiltration markets. As a global provider, Polypore has manufacturing facilities or sales offices in ten countries serving five continents. Polypore's corporate offices are located in Charlotte, NC. The company has operations in Australia and China. PRIMUS TELECOMMS: NY Court Denies Noteholders' Injunctive Relief ---------------------------------------------------------------- Primus Telecommunications Holding Inc., a wholly owned subsidiary of Primus Telecommunications Group Inc., reported that the claim for injunctive relief sought by the plaintiffs in the disclosed litigation filed by certain of the purported holders of 8% Senior Notes due 2014 was denied by the United States District Court for the Southern District of New York. On Feb. 15, 2007, the $22.7 million payable by the company in respect of its outstanding 5-3/4% Convertible Subordinated Debentures due Feb. 15, 2007 was satisfied and paid. As a result, the February 2007 Group Debentures have been paid in full. In January 2007, the companies were served with a complaint by certain of the purported holders of Holding's 8% Senior Notes due 2014 seeking the relief described below before the Court. The complaint effectively sought declaratory and injunctive relief to prevent, set aside or declare illegal or fraudulent certain transfers of funds allegedly made by Holding to Group and injunctive relief to prevent certain payments or disbursements of funds by Group in respect of outstanding obligations of Group that are payable, including the February 2007 Payment Obligation. The companies believe that the remaining claims concerning the litigation described above are without merit and will continue to defend the matter vigorously. Based in McLean, Virginia, PRIMUS Telecommunications Group Inc. (NASDAQ: PRTL) -- http://www.primustel.com/-- is an integrated communications services provider offering international and domestic voice, voice-over-Internet protocol, Internet, wireless, data and hosting services to business and residential retail customers and other carriers located primarily in the United States, Canada, Australia, the United Kingdom and western Europe. PRIMUS provides services over its global network of owned and leased transmission facilities, including approximately 350 points-of-presence throughout the world, ownership interests in undersea fiber optic cable systems, 16 carrier-grade international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. Going Concern Doubt Deloitte & Touche LLP expressed substantial doubt about PRIMUS Telecommunications Group, Incorporated's ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended Dec. 31, 2005. The auditing firm pointed to the company's recurring losses from operations, the maturity of US$23.6 million of the 5-3/4% convertible subordinated debentures due February 2007, negative working capital, and stockholders' deficit. SMARTIRE SYSTEMS: Amends Purchase Deal with Xentenial Holdings -------------------------------------------------------------- SmarTire Systems Inc. have amended the securities purchase agreement with Xentenial Holdings to provide: -- Xentenial Holdings will purchase one additional secured convertible debenture in the principal amount of US$334,000; and -- that the company will change its transfer agent to Worldwide Stock Transfer LLC before March 15, 2007, provided that Worldwide is and remains cost competitive. On Jan. 23, 2007, the company entered into a securities purchase agreement with Xentenial Holdings Limited whereby Xentenial agreed to purchase up to US$1,800,000 of secured convertible debentures. The company also reported that it had sold one convertible debenture to Xentenial Holdings pursuant to the securities purchase agreement in the principal amount of US$684,000. Pursuant to the terms of the amendment to the security purchase agreement, the company have sold one additional secured convertible debenture on Feb. 9, 2007, to Xentenial Holdings in the principal amount of US$334,000. Under the terms of the secured convertible debenture, we are required to repay principal, together with accrued interest calculated at an annual rate of 10%, on or before Jan. 23, 2009. Interest may be paid either in cash or in shares of the company's common stock valued at the closing bid price on the trading day immediately prior to the date paid, at the company's option. Subject to a restriction, all or any part of principal and interest due under the secured convertible debenture may be converted at any time at the option of the holder into shares of the company's common stock. The conversion price in effect on any conversion date shall be equal to the lesser of: a) US$0.0573 or; b) 80% of the lowest volume weighted average price of the company common stock during the 30trading days immediately preceding the conversion date as quoted by Bloomberg, LP. The conversion price is subject to adjustment in the event the company issue any shares of its common stock at a price per share less than the conversion price then in effect, in which event, subject to certain agreed exceptions, the conversion price will be reduced to the lower purchase price. The secured convertible debenture contains a contractual restriction on beneficial share ownership. It provides that the holders may not convert the convertible debenture, or receive shares of the company's common stock as payment of interest, to the extent that the conversion or the receipt of the interest payment would result in such holder, together with its respective affiliates, beneficially owning in excess of 4.99% of the company's then issued and outstanding shares of common stock. This beneficial ownership limitation may be waived by the holder upon not less than 65 days' notice to the company. About SmarTire Systems Based in British Columbia, Canada, SmarTire Systems Inc. (OTC Bulletin Board: SMTR) -- http://www.smartire.com/-- develops and markets technically advanced tire pressure monitoring systems for the transportation and automotive industries that monitor tire pressure and tire temperature. Its TPMSs are designed for improved vehicle safety, performance, reliability and fuel efficiency. The company has three wholly owned subsidiaries: SmarTire Technologies Inc., SmarTire USA Inc. and SmarTire Europe Limited. The company has operations in Australia and New Zealand. Going Concern In an addendum to its audit report, KPMG pointed to the company's uncertainty in meeting its current operating and capital expense requirements after auditing the company 's financial statements for the fiscal years ended July 31, 2005 and 2004. SUNCORP-METWAY: 2006 2nd Half NPAT Grows 16.1% to AU$527 Million ---------------------------------------------------------------- Suncorp-Metway Limited reported net profit after tax growth of 16.1% to AU$527 million (1H06: AU$454 million) for the half-year to Dec. 31, 2006, and confirmed that it is on track to achieve its full-year profit outlook. Other highlights of the result included: * Bank profit contribution before tax up 13.3% to AU$289 million (1H06: $255 million), underpinned by continued growth momentum, strong retail deposits performance, an improved cost to income performance, and sound asset quality; * General insurance half-year profit before tax of AU$383 million (1H06: AU$330 million) with an insurance trading ratio (ITR) of 21% (1H06: 19.3%), well above the company's long term 11% to 14% target range; * Wealth management profit before tax of AU$54 million (1H06: AU$42 million), an increase of 28.6%; * An ordinary interim dividend payment of 52 cents per share (1H06: 47 cents per share), up 10.6% on the prior corresponding period. At end of December 2006, the Group had total assets of AU56.3 billion, an increase of 12.7% from the figure reported as of December 2005. Liabilities totaled AU$51.4 billion, up 12.2% from Dec. 2005, leaving equity at AU$4.9 billion, up 18.1% from the figure as of Dec. 2005. A full-text copy of the company's Consolidated Financial Results for the half-year ended December 2006 is available for free at: http://bankrupt.com/misc/suncorp-metway_HFfinancials_Dec2006.pdf About Suncorp-Metway Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in retail and business banking, general insurance, life insurance, superannuation and funds management with a focus on retail consumers and small to medium businesses. Its brand offering includes Suncorp and GIO, with GIO being the main insurance brand outside of Queensland. Standard and Poor's gave the company a B financial strength rating on July 10, 2005. SUNCORP-METWAY: To Acquire Promina Reset Preference Shares ---------------------------------------------------------- On Jan. 30, 2007, the Troubled Company Reporter - Asia Pacific reported that Suncorp-Metway Limited's proposal to acquire Promina Group Limited has received regulatory clearance after being approved under the Financial Sector (Shareholdings) Act 1998. The company has earlier obtained the Australian Competition and Consumer Commission's approval for the merger, the TCR-AP noted. In an update, Suncorp-Metway has confirmed that it will make a cash offer to acquire all Promina Reset Preference Shares after the satisfactory completion of the required approvals of the proposed Suncorp and Promina merger, expected to be on March 12, 2007. Full details of the cash offer will be sent to registered Promina Reset Preference Shareholders as soon as practicable after March 12, 2007, Suncorp notes. The cash offer, which was approved by Suncorp's Board on Feb. 23, 2007, will be AU$102.5641 per Reset Preference Share. Reset Preference Shareholders who accept the offer will also be entitled to receive any accrued dividend. The cash offer was one of the two options in relation to the Reset Preference Shares in the Merger Implementation Agreement. The alternative was for Suncorp to provide a similar hybrid equity instrument in exchange for the Reset Preference Shares. Details of those alternatives, together with further information in relation to the rights of Reset Preference Shareholders after implementation of the merger, are contained in Promina's scheme booklet in connection with the Scheme, which is available for download at Suncorp's Web site http://www.suncorp.com.auor at Promina's Web site http://www.promina.com.au About Suncorp-Metway Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in retail and business banking, general insurance, life insurance, superannuation and funds management with a focus on retail consumers and small to medium businesses. Its brand offering includes Suncorp and GIO, with GIO being the main insurance brand outside of Queensland. Standard and Poor's gave the company a B financial strength rating on July 10, 2005. TAMSITY PTY: Commences Liquidation Proceedings ---------------------------------------------- During an extraordinary general meeting held on Feb. 7, 2007, the members of Tamsity Pty Ltd decided to liquidate the company's business. In this regard, Gary Peter Doran and Christopher Robert Campbell were appointed as the company's liquidators. The company's Liquidators can be reached at: Gary Peter Doran Christopher Robert Campbell Deloitte Touche Tohmatsu Level 14, Woodside Plaza 240 St George's Terrace Perth, Western Australia 6000 Australia About Tamsity Pty Tamsity Pty Ltd is an investor relation company. The company is located in Western Australia, Australia. TELBAZ PTY: Placed Under Members' Voluntary Liquidation ------------------------------------------------------- The members of Telbaz Pty Ltd met on Feb. 7, 2007, and decided to wind up the company's operations. In this regard, Gary Peter Doran and Christopher Robert Campbell were appointed as joint liquidators. The Joint Liquidators can be reached at: Gary Peter Doran Christopher Robert Campbell Deloitte Touche Tohmatsu Level 14, Woodside Plaza 240 St George's Terrace Perth, Western Australia 6000 Australia About Telbaz Pty Telbaz Pty Ltd is an investor relation company. The company is located in Western Australia, Australia. THE MOVIEFINDERS: To Declare First Dividend for Employees --------------------------------------------------------- The Moviefinders Australia Pty Ltd will declare a first dividend for its employees on March 20, 2007. Thus, employees must prove debts by March 13, 2007, to be included in the company's distribution of dividend. In a report by the TCR-AP, the company commenced liquidation proceedings on Nov. 2, 2005. The liquidator can be reached at: Joseph Loebenstein Loebenstein Insolvency Services Pty Ltd 191 Balaclava Road Caulfield, North Victoria 3161 Australia ================================ C H I N A & H O N G K O N G ================================ ACTIVE ENERGY: Creditors Must Prove Debts by March 23 ----------------------------------------------------- The creditors of Active Energy Limited are required to prove their debts by March 23, 2007, to be included in the company's distribution of dividend. The company's liquidators can be reached at: Lam Kwong Chak, Zaloit 29/F., K. Wah Centre 191 Java Road, North Point Hong Kong BANK OF COMMUNICATIONS: To Issue CNY25 Bil. Subordinated Bonds -------------------------------------------------------------- China's Bank of Communications would issue subordinated bonds worth CNY25 billion through the country's interbank market, from March 6 to 8, 2007, Xinhua News cites a statement from the bank. According to the report, the bonds have 10-year and 15-year terms. The bank tapped China Galaxy Securities Co. Ltd as its sole managing underwriter and bookrunner, Xinhua says. Bank of Communications said that the underwriting syndicate is made up of the 40 "most vigorous" financial institutions in the interbank market, including state commercial banks, urban commercial banks, insurance companies, and securities dealers. Xinhua relates that this will be the largest issue of subordinated bonds to be underwritten by a securities dealer since China launched its interbank market in June 1997. Jiang Chaoliang, board chairman of the bank, told Xinhua that the issue is aimed at replenishing the bank's supplementary capital and improving its capital adequacy. * * * Bank of Communications Co Ltd -- http://www.bankcomm.com/jh/en/index.jsp-- is a commercial bank in the People's Republic of China. As of December 31, 2005, the bank had 137 branches and sub-branches, in addition, to over 2,600 business outlets in China. It also has its branches in Hong Kong, New York, Tokyo, Singapore and Seoul. The bank's business is divided into four segments: corporate banking, retail banking, treasury and others. Its corporate banking business provides products and services to the corporate customers, such as loans, deposits, bill discounting, trade finance, fund custody and guarantees. The retail banking business provides retail banking products and services to its retail customers, such as deposits, mortgage loans, debit cards, credit cards, wealth management and foreign exchange trading services. The treasury operations include inter-bank money market transactions, foreign exchange trading and government, and finance bond trading and investment. The bank carries Fitch Rating's D individual rating effective on November 21, 2005. BENQ CORP: Assets to Land in eBay & Second-Hand Market ------------------------------------------------------ Administrators of BenQ Mobile GmbH & Co. OHG, the bankrupt mobile subsidiary of Taiwan-based BenQ Corp., are set to sell the company's assets through eBay and the second-hand market, Reuters reports. According to the report, BenQ Mobile's office equipment, furniture and even plants will be sold through the online auction house and the insolvency administrator's Web site at http://www.pluta.net/while larger items, such as factory- production equipment, will find itself in second-hand markets. Martin Prager, BenQ Mobile's insolvency administrator, said the company will be liquidated and sold off in parts after a potential bidder dropped plans to buy the bankrupt firm. Proceeds from the sale, which Mr. Prager estimated to be about EUR310 million, would go to BenQ Mobile's largest creditors, chipmaker Infineon Technologies AG and credit-insurance firm Euler Hermes, Reuters relates. 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. * * * 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. CENTIGAIN LIMITED: Liquidator to Receive Claims Until March 23 -------------------------------------------------------------- Lam Kwong Chak, Zaloit, as liquidator of Centigain Limited, will be receiving proofs of debt from the company's creditors until March 23, 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 company went into liquidation on Feb. 7, 2007. The Liquidator can be reached at: Lam Kwong Chak, Zaloit 29/F., K. Wah Centre 191 Java Road, North Point Hong Kong CHONGQING CHANGAN: Parent Ups Production and Sales Target By 20% ---------------------------------------------------------------- Changan Auto Group, parent of Chongqing Changan Automobile Co. Ltd., has set its 2007 production and sales target at 850,000 vehicles, up about 20% from previous years levels, Forbes reports. According to the report, the company said that its sales revenue rose 43.83% in 2006 to CNY43.2 billion, with auto sales of 708,737 units. Forbes adds that auto exports of Changan Auto Group were up 43.3% at 21,725 units last year. Chongqing Changan Auto, the group's listed arm, said earlier this month that it expects its 2006 net profit to have risen more than 200% from CNY236.75 million the year earlier due to strong sales growth, Forbes relates. * * * Chongqing, China-based Chongqing Changan Automobile Company Limited -- http://www.changan.com.cn/-- is principally engaged in the development, manufacture and sale of mini passenger vehicles, minivans, commercial vehicles and passenger cars. The company offers its products under seven brands: mini passenger vehicles are under the brand Changan Star; minivans are under the brand Changan, and passenger cars are under the brands Alto, Lingyang, Fiesta and Mondeo. It also manufactures and distributes various engines, under the brand Jiangling. During the year ended December 31, 2005, the company manufactured 489,368 vehicles and sold 474,625 vehicles, accounting for approximately 8.24% of the domestic market. Chongqing Changan Automobile has formed partnership with Suzuki Motor Corporation and Ford Motor Company. The company has 12 major subsidiaries/associates. The Troubled Company Reporter - Asia Pacific reported that Fitch Rating assigned, on September 20, 2006, a long-term foreign and local currency Issuer Default ratings of BB to Chongqing Changan Automobile Co. Ltd. The rating outlook is stable. DONGFENG ELECTRONIC: Implements Share Merger Reform --------------------------------------------------- Dongfeng Electronic Technology Co Ltd has implemented its share merger reform on Jan. 8, 2007, Reuters reports. According to the report, the company's shareholders approved the share merger reform on Dec. 21, 2006. Based on the reform terms, holders of tradable shares will be compensated four shares for every 10 tradable shares they hold by the company's sole holder of non-tradable share. * * * Based in Shanghai, Dongfeng Electronic Technology Co., Ltd. -- http://www.detc.com.cn/-- is principally engaged in the manufacture and sale of automobiles and automobile parts and components. The company offers automobiles, instrument sets, sensors, flexible shafts, gasoline supply systems, braking products, die casting products, automobile ornaments, automobile global position system (GPS) navigation parts, automobile remote-controllers and other accessories for motorcycles, passenger cars and trucks. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on March 21, 2006. FAIR BUSINESS: Taps Lam Kwong Chak, Zaloit as Liquidator -------------------------------------------------------- At an extraordinary general meeting held on Feb. 7, 2007, a special resolution was passed appointing Lam Kwong Chak, Zaloit as the liquidator of Fair Business Limited. Accordingly, Mr. Lam requires the company's creditors to file their proofs of debt by March 23, 2007. The Troubled Company Reporter - Asia Pacific previously reported that the company entered wind-up proceedings on Feb. 7, 2007. Mr. Lam can be reached at: Lam Kwong Chak, Zaloit 29/F., K. Wah Centre 191 Java Road, North Point Hong Kong HUA HIN: Placed Under Members' Voluntary Liquidation ---------------------------------------------------- At an extraordinary general meeting held on Feb. 9, 2007, the members of Hua Hin (S) Company Limited agreed to wind up the company's operations. Accordingly, Philip Brendan Gilligan was appointed as liquidator. The company's Liquidator can be reached at: Philip Brendan Gilligan 7th Floor, Alexandra House 18 Chater Road, Central Hong Kong HUNAN GENUINE: Reapplies for Listing Despite Unqualified Audit -------------------------------------------------------------- Hunan Genuine New Material Group Co., Ltd. has reapplied for the resumption of trading of its shares at the Shenzhen Stock Exchange, Panorama reports, citing a company's corporate disclosure. The move, according to the report, follows the company's return to profit for the full year in 2006. Shares of the company were suspended from trading in April 2006 for the three consecutive losses the company incurred in 2003, 2004, and 2005. However, the company's shares face the risk of being delisted again due to the unqualified audit report presented by the company's auditors. Administrative Punishment In an earlier development, the China Securities Regulatory Commission, on Feb. 1, 2007, stated that administrative punishments have been imposed on Hunan Genuine New Material Group Co., Ltd. and its related personnel. The administrative punishments were related to: 1) the company's revelation of false information in respect of its prime operating revenue and gross profit in its 2002 and 2003 annual report as well as 2004 annual report; 2) major matters that were not revealed on a timely basis and furthermore, weren't revealed in the company's 2002, 2003, and 2004 annual report; and 3) the company's failure to truly reveal its actual controller's particulars. * * * Hunan Genuine Material Group Co., Ltd. is primarily engaged in the production of aluminum sections, polyvinyl chloride (PVC) products and artificial leather. Headquartered in Changsha, Hunan Province, the company has three subsidiaries in Hunan Province, engaged in the production of plastic products, aluminum sections and management consulting services, as well as two affiliates in Hunan Province and Hainan Province. The Troubled Company Reporter - Asia Pacific reported that as of June 19, 2006, Hunan Genuine has a shareholders' deficit of US$65.04 million on US$94.17 million assets. JIAOZUO XIN'AN: Faces Bankruptcy Petition from Five Creditors ------------------------------------------------------------- Jiaozuo Xin'An Science & Technology Co., Ltd is facing bankruptcy petition filed by five of its creditors before the Henan Jiaozuo Intermediary People's Court, Panorama reports, citing a company's disclosure with the Shenzhen Stock Exchange. Creditors' details were not disclosed, Panorama notes. Based on the listing rules of the bourse, if the company is declared bankrupt, the stock exchange will initiate delisting procedures of the company's shares. * * * Jiaozuo Xin'an Science & Technology Co., Ltd. is primarily engaged in the production of basic chemical materials and pharmaceutical products. Its major products include sodium carbonate, heavy sodium carbonate, silver nitrate, calcium chloride, paracetamol bulk drugs and small-volume injections. The company is headquartered in Jiaozuo, Henan province, China. RAINBOW PLAZA: Creditors' Proofs of Debt Due on March 23 -------------------------------------------------------- The creditors of Rainbow Plaza Limited are required 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 company's liquidator can be reached at: Lam Kwong Chak, Zaloit 29/F., K. Wah Centre 191 Java Road, North Point Hong Kong REFCO FOREX: Members to Receive Wind-Up Report ---------------------------------------------- Refco Forex Limited, which is under members' voluntary liquidation, will hold a final meeting for its members on March 26, 2007, at 10:00 a.m., at 5th Floor, Ho Lee Commercial Building, 38-44 D'Aguilar Street in Central, Hong Kong. At the meeting, the members will receive a report regarding the company's wind-up proceedings and property disposal exercises. RICHEST CENTURY: Creditors Must Prove Debts by March 23 ------------------------------------------------------- Richest Century Limited requires its creditors to file their proofs of debt 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 company was placed under liquidation on Feb. 7, 2007, as reported by the Troubled Company Reporter - Asia Pacific. The company's liquidator can be reached at: Lam Kwong Chak, Zaloit 29/F., K. Wah Centre 191 Java Road, North Point Hong Kong SHANGHAI TYRE: Finds Partner for Joint Venture ---------------------------------------------- Shanghai Tyre & Rubber Co., Ltd., disclosed that it will introduce an investment partner, a Shanghai-based property company, in its 90%-owned subsidiary, which will become a joint venture. The investment partner will inject CNY10 million in the joint venture, the registered capital of which will be increased from CNY10 million to CNY20 million. Shanghai Tyre, with an initial investment of CNY9 million, will hold a 45% stake in the joint venture, and the investment partner will hold a 50% stake. Because the joint venture has acquired the development right of a plot of land in Yangpu District, Shanghai, the investment partner will pay Shanghai Tyre CNY50 million. * * * Headquartered in Shanghai, the People's Republic of China, Shanghai Tyre & Rubber Co., Ltd. -- http://www.cstarc.com/-- is principally engaged in the manufacture and sale of tires, soap, batteries and printing ink and is also engaged in industrial, commercial, food, beverage and tourism, and real estate businesses. Xinhua Far East China Ratings gave the company a C issuer credit rating on August 11, 2003. SHENZHEN SEG: Reports 16% Increase in Net Income For 2006 --------------------------------------------------------- Shenzhen Seg Samsung Glass Co., Ltd. posts a net income of CNY46.85 million for the year ending Dec. 31, 2006, a 15.81% increase from the net income of CNY40.46 million the company registered a year ago, according to the company's financials. Sales for the year 2006 fell 3% to CNY2.01 billion from CNY2.06 billion a year ago. The company's operating expenses increased by 2.93% to CNY2.00 billion, causing the company's operating income to fall 82.39% to CNY21.63 million. * * * Headquartered in Shenzhen, China, Shenzhen Seg Samsung Glass Co., Ltd. -- http://www.ssg.com.cn/-- is principally engaged in the manufacture and sale of colored glass substrates for color televisions and computer display panels. The company offers its products under two categories: color picture tube (CPT) glass substrates, including 20-inch, 21-inch and 25-inch models, and cathode ray display terminal (CDT) glass substrates, including 14-inch, 15-inch and 17-inch models. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating on October 28, 2005. SICHUAN CHANGJIANG: Acquires Undergarments Company For CNY69MM -------------------------------------------------------------- Sichuan Changjiang Packaging Holding Co.'s board of directors has approved the proposal to issue 10,106,300 shares to its underlying controlling shareholder at a price of CNY6.79 per share, Reuters reports. According to the report, Sichuan Changjiang will acquire a 100% stake in a Zhejiang-based undergarments company from the company's underlying controlling shareholder with CNY68,621,773.62 as the basis price. * * * Headquartered in Yuban, Sichuan Province, China, Sichuan Changjiang Packaging Holding Co.Ltd is primarily engaged in the repair and installation of paper-manufacturing machinery, as well as the manufacture of paper testing instruments. During the year ended December 31, 2005, the company discontinued its paper-manufacturing business and leased paper-manufacturing machinery of its subsidiary to another company. The Troubled Company Reporter - Asia Pacific reported on February 16, 2007 that the company has a capital deficiency of US$72.76 million, on total assets of US$13.11 million. SPARKLE TREE: Sutton and Chiong Quit Liquidator Posts ----------------------------------------------------- Roderick John Sutton and Desmond Chung Seng Chiong resigned to be the liquidators of Sparkle Tree Limited on Feb. 12, 2007. The former Liquidators can be reached at: Roderick John Sutton Desmond Chung Seng Chiong 14/F Hong Kong Club Building 3A Chater Road Hong Kong SPEEDTEX GARMENT: Members and Creditors to Meet on March 27 ----------------------------------------------------------- The members and creditors of Speedtex Garment Factory Limited will have their final meetings on March 27, 2007, at 11:00 a.m., and 11:30 a.m. respectively at Room 1228, 12/F., One Grand Tower, 639 Nathan Road in Kowloon, Hong Kong. At the meetings, the members and creditors will receive the final accounts of the company's wind-up proceedings and property disposal. The TCR-AP previously reported that the company went into liquidation on April 4, 2006. SUNNY BAY: Members' Final Meeting Slated for March 26 ----------------------------------------------------- The members of Sunny Bay Industrial Limited will hold a final meeting on March 26, 2007, at 10:00 a.m., at 26th Floor, Citicorp Centre, 18 Whitfield Road in Causeway Bay, Hong Kong. At the meeting, the members will receive the liquidator's accounts regarding the company's wind-up proceedings and property disposal. As reported by the Troubled Company Reporter - Asia Pacific, the company was placed under members' voluntary liquidation on Sept. 25, 2006. The Joint Liquidators can be reached at: Leung Hok Lim Leong Ting Kwok, David 26/F, Citicorp Centre 18 Whitfield Road, Causeway Bay Hong Kong SUNNY EAGLE: Will Receive Claims Until March 23 ----------------------------------------------- Sunny Eagle Limited will be receiving proofs of debt from its creditors until March 23, 2007. Creditors who cannot prove debts by the due date will be excluded from the company's distribution of dividend. The company's liquidator can be reached at: Lam Kwong Chak, Zaloit 29/F., K. Wah Centre 191 Java Road, North Point Hong Kong TUNG DA AV: Joint Liquidators Quit Posts ---------------------------------------- Chan Shu Kin and Chow Chi Tong ceased to act as liquidators of Tung Da Av Factory Limited on Feb. 23, 2007. The company's former Liquidators can be reached at: Chan Shu Kin Chow Chi Tong 9th Floor, Tung Ning Building 249-253 Des Voeux Road Central Hong Kong ========= I N D I A ========= ICICI BANK: Signs Exclusive Cooperation Pact with BMW India ----------------------------------------------------------- BMW India and ICICI Bank signed an exclusive cooperation agreement for offering finance through BMW Financial Services. With this agreement, BMW India and ICICI Bank will offer innovative and premium quality of service through BMW dealership network and ICICI Bank Direct Sales Agency's across India. BMW customers will now be able to avail a range of tailor-made financing solutions from BMW Financial Services offered and provided by ICICI Bank at competitive interest rates. Commenting on the signing of the agreement, Peter Kronschnabl, president of BMW India, said "ICICI as a leading bank is the optimal partner for offering BMW Financial Services in India. We believe, this association will strengthen our commitment to provide world-class experience to our customers by offering unique financing solutions through ICICI Bank. BMW Financial Services is currently active in more than 50 countries worldwide offering innovative financing solutions for BMW customers. In 20 countries, BMW Financial Services are offered through leading local banking and insurance partners. Mr. N.R. Narayanan, Head-Car and Commercial Vehicle Loans, ICICI Bank, said, "ICICI Bank is market leader in Car loans in the country and is delighted to be associated with BMW and looks forward to a long-standing relationship. This retail cooperation agreement would take the financing options available to BMW customers, to a higher level. ICICI Bank has been at the forefront in delivering distinctive value to its customers and remains committed to grow the market." About BMW India Headquartered in Gurgaon (National Capital Region) BMW India is 100% subsidiary of the BMW Group. The wide range of activities planned by BMW India includes the establishment of a production plant in Chennai (Tamil Nadu) and development of a dealer organisation across all metropolitan centers of the country. The official start of production at Chennai is scheduled for the end of March 2007. The initial investment in India is INR1.1 billion. The plant will produce BMW 3 Series and BMW 5 Series saloons in petrol and diesel variants. In medium term, the company will employ around 200 people in India; up to 600 additional jobs will be created in the dealer and service network. So far, two intermediary dealers with three outlets represented BMW in the Indian market. Owing to an exuberant growth potential, BMW is hopeful of multiplying its annual sales volume and has already chalked out an extensive dealer strategy to support its plans. Phase I of the Dealer network expansion plan would include 12 dealers covering all metropolitan centers of the country by the end of 2009 About ICICI Bank Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * On Jan. 30, 2007, Standard & Poor's Ratings Services affirmed to Bank Fundamental Strength Rating of ICICI at 'C'. Moody's Investors Service, on July 14, 2006, assigned to ICICI a 'C-' Financial Strength Rating. Fitch Ratings gave the bank a 'C' Individual Rating on Dec. 15, 2005. ICICI BANK: Signs Cooperation Agreement with Austria's RLB ---------------------------------------------------------- ICICI Bank Ltd and Raiffeisenlandesbank Oberosterreich have signed a cooperation agreement covering several business areas. This agreement will pave the way for intensifying cooperation in areas of banking business, especially funding, commercial and syndicated credit business and cash management services. The cooperation also covers the international trade finance activities of the two banks. The agreement was signed by Chanda Kochhar, ICICI Bank's deputy managing director, and Ludwig Scharinger, chief executive officer at RLB in Mumbai, on February 9, 2007. Under the cooperation agreement, both banks will also provide reciprocal support for their respective customers. Therefore the customers of the Raiffeisen banking group in Upper Austria will now benefit from an attractive range of services helping them to enter new growth markets with huge potential in many sectors. In light of ICICI Bank's outstanding expertise in the Indian capital market, there will also be business potential for investors focusing on emerging markets. The same is true for the customers of ICICI Bank. RLB and ICICI Bank Ltd. are convinced that the co-operation will further intensify and develop the long-standing business relations for the benefit of the two partners, their customers and shareholders. Ms. Kochhar said, "It has been our endeavour to work closely with partner banks across the world to provide high quality products and services to our customers. This agreement is one more step in that direction and it will leverage the strengths of ICICI Bank and RLB to facilitate the global aspirations of Indian corporates." Mr. Scharinger said, "The close cooperation with India's strongest private bank enables us to assist our customers in this very important economic area in the best possible way." RLB, with an asset base of US$22,6 billion, is the largest regional Bank in Austria. The Bank enjoys leading market shares in all sectors especially industrial sector, SME and retail sector. Upper Austria is the export center covering more the 28% of total exports of the country. ICICI Bank, is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over US$66.83 billion as on December 31, 2006. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * On Jan. 30, 2007, Standard & Poor's Ratings Services affirmed to Bank Fundamental Strength Rating of ICICI at 'C'. Moody's Investors Service, on July 14, 2006, assigned to ICICI a 'C-' Financial Strength Rating. Fitch Ratings gave the bank a 'C' Individual Rating on Dec. 15, 2005. IFCI LTD: Clarifies Report on Malvika Steels Sale ------------------------------------------------- To clarify a news item that it has sold off Malvika Steels Ltd, IFCI Ltd informs the Bombay Stock Exchange that a sale notice was already issued in a leading newspaper in November 2006. However, IFCI makes it clear that the sale of assets has not yet materialized. The MSL assets, which is reportedly "stressed assets" of IFCI, relate to a steel plant located in Uttar Pradesh over a land measuring 739.65 acres at a distance of 78 kilometers from Lucknow on Lucknow Varansi National Highway. The sale notice is pursuant the Debts Recovery Tribunal's order directing IFCI to sell the assets by inviting sealed tenders. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non- project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * Fitch Ratings, on June 29, 2006, affirmed IFCI Limited's support rating at '4'. The outlook on the rating is stable. Additionally, on February 15, 2006, Credit Analysis and Research Limited retained a CARE D rating to the long and medium term debt aggregating INR248 crore. Instruments carrying this rating are judged to be of the lowest category. They are either in default or likely to be in default soon. OCWEN FINANCIAL: Gets US$45.9-Million Share from BMS Holdings ------------------------------------------------------------- Ocwen Financial Corp. reported its receipt of a US$45.9 million capital distribution from BMS Holdings, Inc., which was equal to Ocwen's original investment in BMS Holdings. The Board of Directors of BMS Holdings declared a dividend payable to its stockholders on Feb. 14, 2007, from the proceeds of its private placement of US$150 million aggregate principal amount of Floating Rate Senior PIK Notes due in 2012. Interest on the notes will be payable semi-annually in arrears and will accrue at a floating rate equal to six-month LIBOR plus a spread, which will be 700 basis points and will increase by 50 basis points on Aug. 15, 2008 and by an additional 50 basis points on Aug. 15, 2009. BMS Holdings may pay interest in cash, additional notes, or a combination of 50% in cash and 50% in additional notes. In addition to the declaration of a dividend to its stockholders, BMS Holdings may use the proceeds of the private placement to pay additional dividends in the future, fees and expenses related to the offering and for general corporate purposes. The notes will be redeemable, in whole or in part, beginning on Aug. 15, 2007 at the option of BMS Holdings. The redemption price will be based on a percentage of the principal amount of the notes plus accrued and unpaid interest to the date of redemption. About Ocwen Financial Headquartered in West Palm Beach, Florida, Ocwen Financial Corp. (NYSE:OCN) -- http://www.ocwen.com/-- is a provider of servicing and origination processing solutions to the loan industry with offices in Orlando, Florida, Downers Grove, Illinois and Atlanta, Georgia and global operations in Canada, Germany, India and Taiwan. The company makes its clients' loans worth more by leveraging its superior processes, innovative technology and high-quality, cost-effective global human resources. * * * Ocwen Financial's 3-1/4% Contingent Convertible Senior Unsecured Notes due 2024 carry Standard & Poor's B- rating. ROYAL & SUNALLIANCE: Gets Conditional Approval to Sell U.S. Unit ---------------------------------------------------------------- Delaware Insurance Commissioner Matthew Denn has approved the disposal of Royal & SunAlliance Insurance Group plc's U.S. unit to Arrowpoint Capital Corp., subject to a number of conditions that are intended to protect policyholders, Randall Chase writes for the Associated Press. According to the report, Mr. Denn requires Royal & SunAlliance to resolve any claims brought by policyholders and reimburse his agency for the hiring of a claims monitor, who will hear policyholder complaints and keep track of its indemnity reserves. Mr. Denn also prohibits any non-salary compensation, including a final payout, to principals of Arrowpoint without the approval of his department. The British insurer will allocate US$287.5 million to pay remaining U.S. unit claims, Bloomberg says. However, critics of the deal argued the amount is insufficient to ensure that obligations are met. The insurance commissioner dismissed allegations by critics that the British insurer was blackmailing his department by saying it would cease to subsidize its ailing U.S. affiliates, AP relates. "Were I convinced that Royal U.K. would continue subsidizing its American subsidiaries indefinitely, in spite of its unequivocal statements to both the department and shareholders that it will not, I would deny the application," Mr. Denn wrote in his decision. Opponents of the deal are given five days to file a court appeal. About Royal & Sun Alliance Headquartered in London, United Kingdom, Royal & Sun Alliance Insurance Group Plc -- http://www.royalsunalliance.com/-- provides risk management and insurance solutions through two divisions focusing on property & casualty business and personal insurance. The group consists of three regions -- U.K., Scandinavia and International. The group has operations in Asia including China, Hong Kong and India, among others. * * * In September 2006, A.M. Best Co. has placed the financial strength ratings of C++ (Marginal) and the issuer credit ratings of "b" of the Royal & SunAlliance U.S.A. Insurance Pool and Royal Surplus Lines Insurance Company under review with developing implications pending the completion of the proposed sale of these operations to Arrowpoint Capital, a new company formed by the existing management team of these operations. All the above companies are domiciled in Wilmington, Delaware. R&SAUS and RSLIC are U.S. subsidiaries of Royal & Sun Alliance Insurance Group plc (London, England). In March 2006, Standard & Poor's Ratings Services lowered its counterparty credit and insurer financial strength ratings on Royal & Sun Alliance Insurance Group PLC's U.S. insurance operations (RSA USA) to 'BB' from 'BB+'. S&P said the outlook remains negative. At the same time, the ratings were withdrawn at the request of the companies' management. ================= I N D O N E S I A ================= ALCATEL-LUCENT: Will Build WiMax Network for Telmex Chile --------------------------------------------------------- Alcatel-Lucent said in a statement that it has been awarded a contract to construct a WiMax network for the Chilean unit of Mexico's Telmex. Business News Americas relates that the Telmex Chile network will comply with the IEEE 802.16e-2005 standard for fixed, nomadic and mobile usage in the 3.5 gigahertz frequency band using the Alcatel-Lucent's 9100 WiMax end-to-end solution. The network will be operational in the second half of this year, BNamericas notes. Telmex Chile General Manager Eduardo Diaz-Corono told the press that the firm will invest US$15 million this year in the network. Telmex Chile expects that the network will cover 90% of Chile's municipalities by the end of the year. With the network, Telmex Chile will target the business market, particularly the small and medium-sized enterprises, BNamericas states. About Telmex Telefonos de Mexico, SA, aka Telmex owns and operates telecommunications system in Mexico. It is a nationwide provider of fixed-line telephony services, as well as fixed local and long-distance telephone services. It also provides other telecommunications and telecommunications-related services, such as corporate networks, Internet services, directory services, information network management, telephone equipment sales, satellite services, paging services and interconnection services to other carriers. It offers voice, data and Internet services in Brazil, Chile, Argentina, Peru and Colombia. In January 2006, together with Alcatel and SBC International, Inc., a subsidiary of AT&T Inc., Telefonos de Mexico, S.A. acquired an aggregate 51% interest in the capital stock of 2Wire. In October 2006, it acquired an 80% interest in the affiliate of Blue Equity, LLC that publishes Enlace Spanish Yellow Pages. In connection with the acquisition, such affiliate changed its name to SECCION AMARILLA USA, LLC. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ALCATEL-LUCENT: Alliances Director Named to WiMAX Forum Board ------------------------------------------------------------- Philippe Goossens, Strategic Alliances Director for Alcatel- Lucent's WiMAX activities, has been named as member of the Borad of Directors of the WiMAX Forum, an industry-led non-profit organization comprising more than 430 companies committed to promoting and certifying interoperable WiMAX products. As a strong contributor to the WiMAX Forum, Alcatel-Lucent's presence on its board of directors is indicative of the acknowledgement by wireless market leaders around the globe that WiMAX is a powerful option for delivering broadband Internet services anytime and anywhere. Being elected to WiMAX Forum Board of Directors recognizes Alcatel-Lucent's commitment and contribution to the fast-growing WiMAX market and a testimony to its technical leadership in WiMAX technologies. "Alcatel-Lucent is a global leader in telecommunications, and having the company join our Board is evidence of its dedication to taking the WiMAX ecosystem forward," said Ron Resnick, president and chairman of the WiMAX Forum. "Having one of the industry's most comprehensive wireless portfolios, we look forward to Alcatel-Lucent's further involvement to help accelerate the WiMAX deployment worldwide. As a leading proponent of WiMAX, Alcatel-Lucent has proven its ability to deliver standards-based products that are commercially installed by its numerous operator customers." Alcatel-Lucent's strong support of open standards and device interoperability -- as demonstrated by several interoperability testing centers operational in France, the United States and Taiwan -- benefits operators seeking to diversify and offer the optimum choice of terminals to their subscribers. "The announcement is a major step forward and further highlights our commitment to promote the IEEE 802.16e-2005 open standard to advance the adoption of WiMAX worldwide," said Philippe Goossens, Strategic Alliances Director for Alcatel-Lucent's WiMAX activities. "As part of the WiMAX Forum, Alcatel-Lucent is working to ensure interoperability of wireless broadband solutions and enable telecom operators to deliver innovative and differentiating services to their customers." About the WiMAX Forum The WiMAX Forum is an industry-led, non-profit corporation formed to help promote and certify the compatibility and interoperability of broadband wireless products using the IEEE 802.16 and ETSI HiperMAN wireless MAN specifications. The forum's goal is to accelerate the introduction of these devices into the marketplace. WiMAX Forum Certified products will be fully interoperable and support Metropolitan Broadband Fixed, Portable and Mobile Applications. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. The company has operations in Indonesia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ANEKA TAMBANG: Seeks US$70 Mil. in Loans, Bisnis Indonesia Says --------------------------------------------------------------- PT Aneka Tambang is seeking US$70 million in loans to help finance a chemical-grade alumina project, Bloomberg News reports, citing Bisnis Indonesia. The Troubled Company Reporter - Asia Pacific reported on Jan. 31, 2007, that Aneka Tambang plans to invest between US$200 million and US$240 million to build an alumina mining facility in West Kalimantan. The feasibility studies are expected to be complete next month and Aneka may start construction of the facility next year, Bloomberg News relates. Aneka Tembang is reportedly in talks with PT Bank Mandiri to help finance the project. PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and West Java (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * The Troubled Company Reporter - Asia Pacific reported on Dec. 4, 2006, that Standard & Poor's Ratings Services raised its long- term corporate credit rating on Indonesian state-owned mining company PT Antam Tbk. to 'B+' from 'B'. The outlook is stable. At the same time, Standard & Poor's also raised to 'B+', from 'B', the rating on the senior unsecured notes issued by Antam Finance Ltd. and guaranteed by Antam. Moody's Investors Service gave Aneka Tambang a local currency B1 corporate family rating, and a B2 foreign currency bond rating. AVNET INC: Launches Redesigned Investor Relations Web Site ---------------------------------------------------------- Avnet, Inc. has redesigned its investor relations Web site with investors' and analysts' needs in mind, with a host of new features including personalized briefcases, RSS feeds and email alerts. Shareholder tools put you in the driver's seat, allowing access to the information you need in a convenient format via your computer or PDA. The Avnet investor relations site now includes: * A personalized investor briefcase that allows you to store useful Avnet documents and locate them easily on your next visit * RSS feed functionality that has the ability to send up-to- the-minute Avnet news directly to your PDA * An email feature that lets you send a press release from the site to another person * An email alert function to ensure you receive news of Avnet events, SEC filings, stock price changes when it matters most "Avnet's investor relations website has been improved to incorporate new features that make accessing detailed company information faster and easier. These Shareholder tools are a user-friendly way keep abreast of important financial information in a cost and time efficient manner," commented Roy Vallee, chairman and chief executive officer for Avnet, Inc. About Avnet Inc. Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues for the fiscal year ended July 1, 2006 were US$14.3 billion. It has operations in these Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. The Troubled Company Reporter - Asia Pacific reported on Nov. 6, 2006, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. technology semiconductor and distributor sector, the rating agency affirmed its Ba1 corporate family rating on Avnet, Inc. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$400MM 8.00% Sr. Unsecured Notes due 2006 Ba1 Ba1 LGD3 49% US$250MM 6.00% Sr. Unsecured Notes due 2015 Ba1 Ba1 LGD3 49% US$300MM 6.625% Sr. Unsecured Notes due 2016 Ba1 Ba1 LGD3 49% US$300MM 2.00% Convertible Sr. Debentures due 2034 Ba1 Ba1 LGD3 49% Shelf - Sr. Unsecured (P)Ba1 (P)Ba1 LGD3 49% Shelf - Subor. (P)Ba2 (P)Ba2 LGD6 97% BANK NEGARA: Government and Parliament Delay Divestment ------------------------------------------------------- The government and the Working Committee for Privatization at the House of Representatives are delaying the decision regarding further divestment of PT Bank Negara Indonesia Tbk, Tempo Interactive reports. According to the report, the government wanted the first-phase share divestment of BNI to be at 20% while half of the members of the Working Committee for Privatization demanded that the divestment be 15%. The report notes that a member of the Working Committee for Privatization from the National Awakening Party Faction, Anna Mu'awanah, said that the Committee's decision is equivalent to the State Budget of 2007. In a joint meeting with the House, the Finance Minister and the State Minister for State-Owned Enterprises, the government says that for the amount of BNI shares offered, it will be raised to 20% as well as the number of BNI shares that will be offered through a rights issue, Tempo relates. However, Ms. Mu'awanah said that it would be difficult to implement the additional BNI shares to be offered, the report says. Any addition must be re-examined, she added. State SOE Minister Sugiharto reportedly said that the resolutions of the Working Committee for Privatization could still be altered. Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id/-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, a securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 6, 2007, Moody's Investors Service revised the outlook from positive to stable the ratings of PT Bank Negara Indonesia's senior debt and foreign currency long-term deposit ratings to positive from stable. The bank's short-term deposit rating and long-term subordinated debt rating continue to carry the rating agency's stable outlook and the bank financial strength rating a positive outlook. The bank's detailed ratings are: -- senior/subordinated debt of Ba3/Ba3; -- foreign currency long-term/short-term deposit of B2/Not Prime; and -- bank financial strength of E. TCR-AP reported on Feb. 1, 2007, Fitch Ratings has affirmed all the ratings of PT Bank Negara Indonesia (Persero) Tbk as follows: * Long-term foreign and local currency Issuer Default ratings 'BB-', * Short-term rating 'B', * National Long-term rating 'A+(idn)', * Individual 'D', and * Support '4'. The Outlook for the ratings was revised to Positive from Stable. Standard & Poor's Ratings Services revised the outlook on the local currency counterparty credit rating on Bank Negara to stable from positive. At the same time, Standard & Poor's affirmed its foreign and local currency ratings on BNI (B+/Stable/B). FREEPORT-MCMORAN: Moody's Confirms 'Ba3' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service confirmed Freeport-McMoRan Copper & Gold Inc.'s Ba3 corporate family rating and announced a number of rating actions with respect to Freeport and Phelps Dodge Corporation. The ratings actions are based on the assumption that Freeport completes the acquisition of Phelps Dodge on substantially the terms agreed. The ratings reflect the overall probability of default of Freeport, to which Moody's assigns a PDR of Ba3. The outlook for both Freeport and Phelps Dodge is stable. In related rating actions, Moody's assigned a Baa3 senior secured rating to Freeport's US$500 million secured revolver and Ba2 senior secured ratings to each of Freeport's US$1 billion secured revolver, US$2.5 billion secured Term Loan A, and US$7.5 billion secured Term Loan B. Freeport's existing 6.875%, 10.125% and 7.20% senior unsecured notes, which are being granted a security and guarantee package equivalent to the US$1 billion revolver and Term Loans A & B, were upgraded to Ba2 from B1. Moody's downgraded Phelps Dodge's Cyprus Amax notes, which mature in May 2007, as well as the ratings on Phelps Dodge's other existing senior unsecured notes to B1 from Baa2. Moody's also affirmed Freeport's SGL-1 Speculative Grade Liquidity rating. This concludes Moody's review of the ratings of Freeport and Phelps Dodge begun on November 20, 2006 following the announcement that Freeport had agreed to acquire Phelps Dodge for US$26 billion. The Ba3 corporate family rating reflects Freeport's very high debt level of approximately US$19 billion and what Moody's believes will be a protracted time frame for debt reduction in the face of softening metals prices and continued high cost challenges. The rating also considers the high concentration in copper and resultant variability in earnings and cash flow, significant capital expenditures, and a high level of reliance on the Grasberg mine in Indonesia. The rating also reflects the cultural challenges inherent in the acquisition of the larger Phelps Dodge by Freeport, and the execution and political risk of Phelps Dodge's development project in the Congo. The Ba3 rating favorably considers the company's leading positions in copper and molybdenum, a significant amount of gold production, the low cost, long-life reserves at PT-FI, and improved operating and political diversity. Ratings confirmed are: * Issuer: Freeport-McMoRan Copper & Gold Inc. * Corporate Family Rating: Ba3 * Probability of Default Rating: Ba3 Ratings assigned are: Issuer: Freeport-McMoRan Copper & Gold Inc. * US$0.5 billion Senior Secured Revolving Credit facility, Baa3, LGD1, 1.0% * US$1.0 billion Senior Secured Revolving Credit Facility, Ba2, LGD2, 29% * US$2.5 billion Senior Secured Term Loan A, Ba2, LGD2, 29% * US$7.5 billion Senior Secured Term Loan B, Ba2, LGD2, 29% Ratings to be upgraded: Issuer: Freeport-McMoRan Copper & Gold Inc. * US$340 million 6.875% Senior Unsecured Notes due 2014, B1 --> Ba2, LGD2, 29% * US$272 million 10.125% Senior Unsecured Notes due 2010, B1 -> Ba2, LGD2, 29% * US$0.2 million 7.20% Senior Unsecured Notes due 2026, B1 --> Ba2, LGD2, 29% Ratings to be downgraded: * Issuer: Cyprus Amax Minerals Company * US$60.1 million 7.375% Senior Notes due 2007, Baa2 --> B1, LGD4, 63% * Issuer: Phelps Dodge Corporation * US$107.9 million 8.75% Senior Notes due 2011, Baa2 --> B1, LGD4, 63% * US$115 million 7.125% Senior Notes due 2027, Baa2 --> B1, LGD4, 63% * US$150 million 6.125% Senior Notes due 2034, Baa2 --> B1, LGD4, 63% * $193.8 million 9.50% Senior Notes due 2031, Baa2 --> B1, LGD4, 63% Ratings to be withdrawn: * Issuer: PD Capital Trust I * Preferred Stock Shelf, currently (P)Baa3 * Issuer: PD Capital Trust II * Preferred Stock Shelf, currently (P)Baa3 * Issuer: Phelps Dodge Corporation * Multiple Seniority Shelf, currently (P)Ba1 Outlook Actions: * Issuer: Freeport-McMoRan Copper & Gold Inc. * Outlook, Changed To Stable from Rating Under Review * Issuer: Cyprus Amax Minerals Company * Outlook, Changed To Stable from Rating Under Review * Issuer: Phelps Dodge Corporation * Outlook, Changed To Stable from Rating Under Review 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. FREEPORT-MCMORAN: Pays Indonesian Gov't. US$1.6-Bil in 2006 ----------------------------------------------------------- Freeport-McMoRan Copper and Gold Inc. paid the Indonesian government US$1.6 billion in 2006, mostly in taxes from its vast mining operation in Papua province, Antara News reports citing a company statement. Of the total amount, US$1.29 billion was paid for corporate, employee income and other taxes, while dividends accounted for US$159 million and royalties for US$146 million. The report notes that the company has paid US$5.1 billion to the Indonesian government since 1992, with taxes accounting for US$4.1 billion of the figure, while the remainder represents royalties and dividends. The company said that Freeport Indonesia had also invested US$5 billion to develop company infrastructure and US$500 million in social facilities, Antara relates. Furthermore, the firm had also purchased domestic goods and services worth US$4.3 billion, the report adds. 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. GENERAL NUTRITION: S&P Lowers Corporate Credit Rating to B- ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on General Nutrition Centers Inc. The corporate credit rating was lowered to B- from B. All ratings were removed from CreditWatch with negative implications, where they were placed on Dec. 22, 2006. The outlook is stable. At the same time, S&P assigned its bank loan and recovery ratings to the company's proposed US$750 million bank facility. The facility is rated 'B-' (the same as the corporate credit rating on General Nutrition) with a recovery rating of '3', indicating the expectation for meaningful (50%-80%) recovery of principal in the event of payment default. In addition, Standard & Poor's assigned General Nutrition's proposed US$300 million senior unsecured floating-rate notes due 2014 and US$125 million senior subordinated notes due 2015 a credit rating of 'CCC' (two notches below the corporate credit rating). Proceeds, along with a US$589 million equity investment, will be used to fund the purchase of General Nutrition by an investor group comprised of Ares Management LLC and Ontario Teachers' Private Capital and to refinance existing debt. "The rating action," said Standard & Poor's credit analyst Jackie Oberoi, "reflects a resulting capital structure that is highly leveraged and cash flow protection measures are weak." 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. GENERAL NUTRITION: Reports Estimated 4Q 2006 Financial Results -------------------------------------------------------------- General Nutrition Centers, Inc. an indirect wholly owned subsidiary of GNC Parent Corporation, disclosed estimated ranges with respect to certain of its financial results for the fourth quarter ended December 31, 2006. GNC disclosed the estimates in connection with its private debt offering to be completed as part of the financing for the previously announced agreement of GNC Parent Corporation to be acquired by an affiliate of Ares Management LLC and the Ontario Teachers' Pension Plan. GNC plans to file its annual report on Form 10-K for the year ended December 31, 2006, on or before March 31, 2007. It is in the process of completing its audit for 2006 and, as a result, the ranges presented below are preliminary and unaudited. GNC expects to report the following results for the fourth quarter of 2006: * net revenues of between US$345.2 million and US$350.2 million compared to US$325.4 million for the same period in 2005; * net cash provided by operating activities of between US$4.3 million and US$5.8 million compared to US$29.5 million for the same period in 2005; * EBITDA of between US$16.6 million and US$18.5 million compared to US$29.0 million for the same period in 2005; and * Adjusted EBITDA of between US$39.2 million and US$41.1 million compared to US$30.2 million for the same period in 2005. GNC does not intend to update or otherwise revise these estimates. GNC also disclosed that, as of December 31, 2006, it operated 2,554 company-owned stores in the United States, 134 company- owned stores in Canada, 1,046 domestic franchised stores, 961 international franchised stores in 48 international markets, and 1,227 store-within-a-store locations. 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: Moody's Upgrades Corporate Family Rating to 'Ba1' --------------------------------------------------------------- Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. Moody's capitalizes total rent at 8x and adds a debt equivalent of approximately 20% of Hilton's guaranty exposure to debt. The rating outlook is stable reflecting the solid outlook for demand and limited supply additions. Hilton's rating outlook could move to positive if the company continues to execute it asset sale program at reasonable multiples and uses the proceeds to repay debt resulting in adjusted debt to EBITDAR around 3.75x. The ratings could be considered for upgrade, if leverage is likely to remain at lower levels in the context of the industry operating environment, management's financial policy and willingness to manage the company's growth initiatives in the context of an investment grade rating. Absent event risk, Moody's does not anticipate downward rating pressure given the strong earnings outlook, the success of the asset disposition program to date and the strong appetite for lodging assets by third parties. Pursuant to Moody's Lodging Rating Methodology, Hilton maps to an overall rating in the Baa category reflecting a strong Baa rating with respect to diversification, and profitability, and mid-Ba rating with respect to leverage and coverage. The difference between its assigned and methodology implied rating is expected during peak industry cycles that currently exists, and Hilton's reliance on asset sales to improve credit metrics more in line with the Baa rating category. Moody's notes that once Hilton's reduces its total leverage ratio at or below 4.5x for two consecutive quarter, Hilton's bank and public debt will no longer be guaranteed or secured by stock pledges. The release of this collateral is expected to occur during 2007. Ratings upgraded: * Corporate family rating to Ba1 from Ba2. * Senior secured bank facility to Ba1, LGD4 from Ba2, LGD4 * Senior bonds, debenture and convertible notes to Ba1, LGD4 from Ba2, LGD4 * Multiple seniority shelf to (P)Ba1, LGD4, from (P)Ba2, LGD4, and to (P)Ba2, LGD6 from (P)B1, LGD6 Rating confirmed: * Commercial paper at Not Prime. 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. ========= J A P A N ========= ALL NIPPON: In Talks With Asiana Air Over New Flights, Products --------------------------------------------------------------- All Nippon Airways has entered into negotiations with South Korea's Asiana Airlines as part of its efforts to create a three-way tie-up with airlines in China and South Korea, The Yomiuri Shimbun says, citing a senior ANA official. The report says that ANA also plans to launch a new route that connects Haneda Airport in Tokyo, Gimpo Airport in Seoul and Hongqiao Airport in Shanghai. These airports have become large domestic hubs after international airports such as Narita, Incheon (South Korea) and Shanghai Pudong (China) were opened. In an interview conducted with the Shimbun in Washington, ANA Senior Managing Director Katsuhiko Kitabayashi said that the airline hoped a deal would improve convenience for customers, as well as attract more tourists to East Asia through the development of new products such as "circular journey tickets" that will take in all three countries. Mr. Kitabayashi said that a special department, dealing with the planned tie-up, has been established, and in late January 2007, about 20 ANA representatives went to Asiana's headquarters in Seoul for initial talks, the report states. Mr. Kitabayashi also said that ANA and Asiana hope to procure airplane parts and eating utensils together, in keeping with efforts to cut costs. The Shimbun says that ANA and Asiana are part of the 17-member Star Alliance group, and ANA has been considering a partnership with either Air China or Shanghai Airlines, both of which are set to become new Star Alliance members. For the first time, ANA was named "Airline of the Year" by Air Transport World Magazine in 2007, with Mr. Kitabayashi attending the award ceremony, The Shimbun adds. About Asiana Airlines Inc. Headquartered in Osoe-Dong Kangseo-Gu, South Korea, Asiana Airlines Incorporated -- http://www.asiana.co.kr/-- is engaged in air transportation, engineering, construction, facilities, electricity, ground handling, catering, communication, logo products and e-business. Asiana Airlines is a unit of the Kumho Asiana Group, a South Korean conglomerate whose business portfolio includes tire manufacturing and chemical production. About All Nippon Airways Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. The airlines flies to all key Asian destinations, the United States and Canada, France, the United Kingdom and key European countries. As reported in the Troubled Company Reporter - Asia Pacific on Jan. 16, 2007, Fitch Ratings advised All Nippon Airways Co. Ltd., along with Japan Airlines Corporation, that it may need to further increase fares and yields and adopt additional cost reduction measures in order to improve, or at least maintain, their current financial profiles. The TCR-AP reported on June 13, 2006, that Fitch said the credit quality gap between Japan's top two airlines continues to widen with All Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from market improvements, while its rival, Japan Airlines Corporation -- rated 'BB-'/Stable -- continues to be grounded by internal woes. The TCR-AP also stated on May 30, 2006, that Moody's Investors Service has upgraded to Ba1 from Ba3 the senior unsecured debt ratings of All Nippon Airways Co., Ltd. The rating action concludes the review initiated on March 3, 2006. The rating outlook is stable. On May 3, 2006, Standard & Poor's Ratings Services revised its outlook on the BB- long-term corporate credit rating on All Nippon Airways to positive from stable, reflecting the company's improved earnings and expectations for stable profitability, thanks to cost reductions efforts as well as a stronger competitive position. INFOR GLOBAL: Increased Debt Prompts S&P's Stable Outlook --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Alpharetta, Georgia-based Infor Global Solutions Holdings Ltd. At the same time, Standard & Poor's revised its ratings outlook on the company to stable from positive. Standard & Poor's also lowered its bank loan and recovery ratings on Infor's first-lien senior secured debt to 'B-' with a '2' recovery rating, reflecting Standard & Poor's expectation for substantial recovery of principal in the event of a payment default. Standard & Poor's affirmed its 'CCC' rating and '5' recovery rating on Infor's second-lien senior secured term loan. "The revision of the outlook to stable follows the company's decision to increase debt balances to fund a US$500 million dividend to shareholders," said Standard & Poor's credit analyst Ben Bubeck. To fund the transaction, which will be completed as part of the previously rated refinancing of Infor's senior subordinated bridge facility, Infor will add an additional $175 million to its first-lien term loan and $100 million to its second-lien term loan. A new US$235 million senior PIK term loan will also be included in the financing. Pro forma for the proposed transaction, the company will have approximately US$4.3 billion in total funded debt outstanding. The ratings reflect Infor's limited track record following a very aggressive acquisition strategy, its high debt leverage, and a very aggressive financial policy. These factors are only partially offset by the company's leading presence in its selected mid-market niche, a largely recurring revenue base, and a broad and diverse customer base. About Infor Global Solutions Holdings Ltd. Headquartered in Alpharetta, Georgia and a Cayman Islands exempted company, Infor Global Solutions Holdings Ltd., -- http://www.infor.com/-, is a global provider of financial and enterprise applications software. The company has locations in Japan, Australia, Austria, China, France, India, Singapore, and Spain, among others. JAPAN AIRLINES: To Redeem JPY79.7 Billion of Bonds on March 25 -------------------------------------------------------------- Japan Airlines Corp. will redeem JPY79.7 billion (US$660 million) of convertible bonds early, as its share price trades below the level at which investors could change the securities into stock, Bloomberg News reports. Bloomberg relates that in a statement made to the Tokyo Stock Exchange, JAL will redeem the bonds due to mature in 2011 on March 25 and will pay investors from March 26. The report explains that investors had a deadline of Feb. 23, 2007, to apply for redemption of a total JPY100 billion of convertible bonds, issued in 2004. Bondholders opted for cash after JAL's shares plunged a third last year, as it lost sales to All Nippon Airways Co., sold new stock and posted losses. Aside from using proceeds from asset sales, JAL is in negotiations with banks as it seeks a JPY60 billion credit line to help repay the bonds, Bloomberg says, citing JAL spokesman Geoffrey Tudor. The report says that JAL shares closed unchanged at JPY272, or 32% less than the bonds' conversion price of JPY398.7. Stock has risen 28% this year. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. The outlook on the long- term corporate credit rating is negative. The TCR-AP reported on October 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Meanwhile, Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade. NIKKO CORDIAL: Citigroup Stake Raise May Improve S&P's Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services said that plans by U.S.-based Citigroup Inc. (AA/Stable/A-1+) to significantly increase its stake in the Nikko Cordial group as reported by media could have a positive impact on its credit ratings on Nikko Cordial Corp. (BBB-/Watch Neg/A-3), Nikko Cordial Securities Inc. (BBB/Watch Neg/A-2), and NikkoCiti Trust & Banking Corp. (A/Watch Neg/A-1). According to media reports, Citigroup is considering substantially increasing its capital support to the Nikko Cordial group, in which it currently has a 4.9% stake. In the event that the Nikko Cordial group is de-listed from the Tokyo Stock Exchange, Citigroup is reportedly planning to make it a consolidated subsidiary. If Nikko Cordial remains listed, Citigroup plans to increase its stake to more than 33.3%. In either case, if Citigroup raises its support for Nikko Cordial, this would be a positive factor for the ratings on the three Nikko Cordial group companies. Currently, the ratings on Nikko Cordial Corp. and Nikko Cordial Securities do not reflect extraordinary support from Citigroup, as the two companies were thought to have low strategic importance to Citigroup. If capital ties are strengthened, the companies' strategic importance to the higher rated Citigroup will likely increase. Moreover, an increase in ownership by Citigroup, which has a highly creditworthy and solid franchise, could help reverse the deterioration in the business franchise and reputation of the Nikko Cordial group following its placement on a monitoring post by the TSE. Citigroup already holds a high 50% stake in NikkoCiti Trust, and its extraordinary support for the joint venture is incorporated in the rating on NikkoCiti Trust reflecting its strategic importance to Citigroup. However, the rating on NikkoCiti Trust was lowered by one notch on Feb. 16, 2007, and remains on CreditWatch with negative implications, reflecting the possibility that Citigroup would pull back its support due to the decreasing credit quality of the Nikko Cordial group (see Standard & Poor's media release: "Nikko Cordial Group Companies Downgraded; Ratings Remain On Watch Negative", published Feb. 16, 2007). If Citigroup increases ownership in Nikko Cordial and Standard & Poor's confirms that the strategic importance of NikkoCiti Trust has strengthened, the current ratings on NikkoCiti Trust will be more categorically underpinned by Citigroup's support stance. NIKKO CORDIAL: Mizuho Enters Picture After News on Citigroup Bid ---------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on Feb. 27, 2007, that Citigroup Inc. may increase its stake in Nikko Cordial Corp. from 4.9% to 33.4% or JPY330 million (US$2.73 million) to shore up the Japanese brokerage after it got hit by an accounting scandal. The TCR-AP said that the purchase would cost Citigroup about JPY380 billion (US$3.1 billion) based on Nikko's market value. Reuters, citing a report by the Yomiuri newspaper on Tuesday, relates that Mizuho Corporate Bank may also raise its stake to about 20% from 4.9% in an attempt to deepen its business ties with Nikko Cordial and to counter a possible bid from Citigroup. Reuters states that Mizuho would make a final decision when the Tokyo Stock Exchange decides whether to delist Nikko Cordial. However, according to Reuters, the Asahi newspaper reported the opposite, saying that Mizuho Financial Group Inc. -- Mizuho Corporate Bank's parent -- was considering helping Citigroup instead of launching a counter-bid. Bloomberg News, citing two Mizuho officials who refused to be identified, also relates that Mizuho Financial scrapped its plan to acquire the brokerage and will instead seek an alliance with Citigroup. The Bloomberg report says that Mizuho Financial's executives may meet Citigroup representatives next month to discuss possible areas of cooperation. Mizuho abandoned plans to acquire Nikko because talks between the brokerage and Citigroup are already proceeding, Bloomberg explains, citing one of the Mizuho officials. Citigroup also operates an investment banking joint venture in Japan together with Nikko. A tie-up with Citigroup may help Mizuho Financial expand an investment-banking unit that ranked fifth in Japan last year in advising on takeovers, Bloomberg points out. Mizuho last month said it wants to gain ground on Wall Street firms abroad after the value of cross-border purchases by Japanese companies quadrupled in 2006. Reuters says that Nikko Cordial is set to submit revised financial statements to the TSE today before the exchange makes a final decision on its listing in mid-March. Nikko is due to brief media on the revised statements. About Mizuho Financial Group Inc. Headquartered in Tokyo, Japan, Mizuho Financial Group, Inc. -- http://www.mizuho-fg.co.jp/english/-- is a financial institution. The company primarily is engaged in the banking, trust, securities, asset management and credit card businesses, as well as the investment advisory business. Through its subsidiaries, Mizuho Financial Group also is engaged in the consulting, system management, credit guarantee, temporary staffing and office work businesses, among others. Its main subsidiaries and associated companies include Mizuho Bank, Ltd., Mizuho Trust & Banking Co. (USA), Mizuho Trust & Banking (Luxembourg) SA, Mizuho Corporate Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Private Wealth Management Co., Ltd., Mizuho Financial Strategy Co., Ltd., Mizuho Capital Markets Corporation, Mizuho Securities Co., Ltd., Mizuho Bank Switzerland Ltd., Mizuho International plc., Mizuho Securities USA, Inc. and Mizuho Investors Securities Co., Ltd. The company has 130 consolidated subsidiaries and 19 associated companies. 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. SADIA SA: S&P Affirms BB Long-Term Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based food producer Sadia S.A. The outlook is stable. The ratings on Sadia, relates Standard & Poor's credit analyst Jean-Pierre Cote Gil reflect these factors: -- the company's operations in the highly volatile and competitive meat and food-processing industries; -- its exposure to the Brazilian market environment, where the company sells a larger share of its industrialized, higher value-added product line; and -- the company's high gross debt level, which results from its significant financial arbitrage position and a large capital budget. These negative factors, according to Mr. Gil are balanced by: -- Sadia's leading market position in Brazil and its competitive and solid track record in exports; -- the company's low-cost position and profitability levels compared to peers; -- its progressively more diversified product and client mixes; -- its rigorous operating and financial risk-control measures; and -- the company's sound liquidity position. The stable outlook reflects Sadia's competitiveness in both domestic and export market, which should allow it to perform relatively well throughout the cycles of the meat industry. Raising the ratings or positively revising the outlook depend on Sadia's ability to manage the inherent volatility in the local and domestic market, and reach higher operating margins along the following quarters, which would allow for convergence of debt coverage ratios to historical levels. Conversely, the ratings could be lowered if the performance of the local economy lags amid depressed local demand and consumption levels, and if international markets do not offer a profitable sales alternative. About Sadia S.A Headquartered in Sao Paulo, Brazil, Sadia S.A. -- http://www.sadia.com-- operates in the agro industrial and food processing sectors in Brazil and primarily produces a range of processed products, poultry, and pork. The company distributes around 1,000 different products through distribution and sales centers located in Brazil, China, Japan, and Italy, among others. SOJITZ CORP: S&P Lifts Credit Rating to BB+ on Bond Conversion -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term issuer credit rating on Sojitz Corp. to 'BB+' from 'BB' and removed the rating from CreditWatch where it was placed on Apr. 28, 2006, with positive implications. The upgrade follows Sojitz's conversion of a total JPY205 billion of its JPY300 billion in outstanding convertible bonds into common shares by Feb. 26, 2007. In addition, the upgrade reflects expectations that Sojitz will achieve greater improvement in its capital quality as it is expected to continue to make progress in the conversion of convertible bonds. The outlook on the long-term rating is stable. At the same time, Standard & Poor's affirmed its 'BBB-' long-term senior unsecured debt rating on the company. The rating on Sojitz was placed on CreditWatch with positive implications on Apr. 28, 2006, following the company's announcement of its plan to reorganize its capital structure through the issue of convertible bonds and buy back of preferred stock. The long-term issuer credit rating on Sojitz was raised one notch on Sept. 29, 2006, reflecting the company's improved capital quality following progress in its conversion of convertible bonds into common shares and the improved balance between risk volume, capitalization, and profitability. The issuer credit rating remained on CreditWatch with positive implications, while the long-term senior unsecured debt rating was removed from CreditWatch. According to Sojitz's capital reform plan, the company planned to issue JPY300 billion in convertible bonds through a private placement in May 2006. After the conversion of bonds into common stock, the company planned to use the increased capital to redeem preferred shares from March 2007. It intended to repurchase most of its outstanding preferred shares from current shareholders, thus replacing preferred stocks, which are considered by Standard & Poor's to be lower quality capital, with common stocks. This plan was expected to greatly improve Sojitz's capitalization. The company announced that in addition to converting JPY205 billion worth of convertible bonds into common shares as of Feb. 26, 2007, it would start a buy-back, on Mar. 30, 2007, of a portion (JPY230.4 billion) of its outstanding preferred shares for JPY240.9 billion. The upgrade reflects the improvement in capital quality due to the conversion to common shares achieved thus far, and incorporates the expectation that Sojitz's capital quality will improve further as it proceeds in converting the remaining JPY95 billion worth of convertible bonds. Although convertible bonds contain put options, the possibility that underwriters will exercise this option has fallen dramatically as the conversion of convertible bonds has proceeded smoothly. In addition, the company's stock price has remained at a considerably higher level than the conversion price floor of JPY341.3, since the company's announcement on Jan. 31, 2007 that it will resume dividend payments in fiscal 2006 (ending March 31, 2007). The stable outlook reflects the company's strengthening capitalization offset by weak profitability. The company should be able to maintain its current credit quality through the medium term in view of its current policies and plans regarding investments and loans, and the balance between risk volume and post-capital-restructuring-plan capitalization and profitability. However, a downgrade of the company may be considered if the balance between risk volume, profitability, and capitalization markedly deteriorates due to changes to its investment and loan policy, or if its investments are larger than expected. Conversely, an upgrade of the company may be considered if profitability improves more dramatically than expected. The rating on the long-term senior unsecured bonds issued by the company is now one notch higher than the long-term issuer credit rating on the company, reflecting the assumption that bondholders would incur no losses from a default, as Standard & Poor's believes there is a probability that any default by the company would take the form of a loan waiver, rather than bankruptcy. However, the higher a company's credit quality, the more difficult it is to predict how a potential default will unfold. Therefore, the grounds for assigning relatively higher ratings to senior debt may weaken. About Sojitz Corp. The Sojitz Group was essentially formed through the business integration between Nichimen Corporation and Nissho Iwai Corporation, two companies with over a century of history. This business integration took shape in December 2002 and was followed on April 1, 2003, by the incorporation of a joint holding company. As a public listed company, this holding company was incorporated to pursue business integration, management supervision and comprehensive disclosure. Heralding a new era, the principal operating arms of the Group, Nichimen Corporation and Nissho Iwai Corporation were merged to form a new single entity, Sojitz Corporation on April 1, 2004. On October 1, 2005, the final phase of business integration was completed through the merger of the holding company and Sojitz Corporation. XEROX CORPORATION: Increases Share Repurchase Program ----------------------------------------------------- Xerox Corporation's board of directors, on Feb. 15, 2007, authorized the company to repurchase another US$500 million in Xerox stock. This increases the company's stock buyback program to US$2.5 billion since it launched in October 2005. In that time, Xerox to date has repurchased about 108 million shares, totaling US$1.6 billion. "Expanding our share repurchase program is consistent with Xerox's steady progress in generating strong cash flow," said Lawrence A. Zimmerman, Xerox senior vice president and chief financial officer. "Last year, we generated US$1.6 billion in operating cash and we expect continued solid performance this year. We're using the cash to deliver value for shareholders by buying back stock and investing in growth through acquisitions, innovation and a services-led approach to winning in the marketplace." About Xerox Corp. Headquartered in Stamford, Connecticut, Xerox Corporation (NYSE: XRX) -- http://www.xerox.com-- develops, manufactures, markets, services, and finances document equipment, software, solutions, and services worldwide. It offers digital monochrome and color systems for customers in the graphic communications industry and enterprises, as well as various prepress and post- press options. Xerox Corporation markets its products through direct sales force, as well as through a network of independent agents, dealers, value-added resellers, and systems integrators. The company has operations in Japan, Italy and Nicaragua. * * * As Reported in The Troubled Company Reporter on Dec. 1, 2006, Moody's Investors Service raised the ratings of Xerox Corporation and supported subsidiaries, upgrading Xerox's Subordinated shelf registration to (P) Ba1 from (P) Ba2 and Preferred shelf registration to (P) Ba1 from (P) Ba2. ========= K O R E A ========= EUGENE SCIENCE: Gets Patents for Wider PlantSterol Application -------------------------------------------------------------- Eugene Science, Inc., has acquired patents for manufacturing techniques that enable the company to use and apply PlantSterol, cholesterol-reducing material, to various types of food, the company said in a press release. Until now, PlantSterol, which reduces cholesterol, has been only partly used in limited products despite its outstanding properties due to the difficulty of applying it to foodstuffs. With the acquisition of the patent, Eugene Science, however, has obtained source technology that enables the numerous types of application not only to medical supplies or health foods but also to functional foods and hereafter, the company expect to create new milestones in the cholesterol-reducing functions market. Eugene Science has already acquired patents for producing water- soluble PlantSterol with nano molecules and particles and its technologies are acknowledged worldwide. It is exported to major companies in United States, Japan, Europe and Southeast Asia and through the networks they possess, we are achieving successful marketing activities as well. In particular, this patent is a technology that enables application of PlantSterol to not only water-soluble base food, but also to high-cholesterol, fat-soluble base food such as yogurt, soup, ice cream, mayonnaise, ketchup, salad oil, dressing and margarine. The technology has its biggest significance in that it can play a critical role in enabling to draw attention from consumers anxious of cholesterol diseases worldwide with the power of Eugene Science's R&D ability. This patent is soon to be registered in countries with massive cholesterol markets such as United States, Japan, Europe and Australia in addition to Korea and Taiwan and is expected to prepare a turning point in the demand and commercialization of the source technology. About Eugene Science Based in Kyonggi Do, South Korea, Eugene Science Inc. is a global biotechnology company that develops, manufactures and markets nutraceuticals, or functional foods that offer health- promoting advantages beyond that of nutrition. Plant sterols are the company's primary products, which include CZTM Series of food additives and CholZeroTM branded beverages and capsules. In June 2005, the company received regulatory approval for certain health claims associated with the company's products from government agencies in the Republic of Korea. Going Concern Doubt As reported in Troubled Company Reporter on May 18, 2006, SF Partnership, LLP, Chartered Accountants, in Toronto, Canada, raised substantial doubt about Eugene Science Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's recurring losses, negative working capital, and operation in a country whose economy is currently unstable -- South Korea. The TCR-AP reported that the company's Sept. 30, 2006 balance sheet also showed US$6,076,682 in total assets, US$16,750,391 in total liabilities, resulting in a US$10,673,709 total stockholders' deficit. The company also reported strained liquidity with US$2,556,354 in total current assets available to pay US$16,003,573 in total current liabilities. EUGENE SCIENCE: Teams with RexGene for Nutraceutical Line --------------------------------------------------------- Eugene Science, Inc., has entered into a contract with RexGene Biotech to develop, produce and market a new type of health supplement product containing Eugene Science's exclusive CZ(TM), which is a cholesterol-lowering nutraceutical products, Eugene Science said in a press release. The two companies signed an MOU on November 2, 2006, prior to the official contract. With this contract, Eugene Science will develop with RexGene Biotech various types of health supplements made of plant sterol and market raw materials and end products using RexGene Biotech's sales networks. RexGene Biotech has a strong sales network through network marketing (High-Living), Korea's largest drugstore chain (Onnuri), TV home shopping and collaborating pharmaceutical companies and recently completed healthy beverage production facility to expand its scope of business. Therefore, it would provide Eugene Science with various business opportunities to broaden and diversify raw material and end product markets. Furthermore, Eugene Science's powerful technology and products, coupled with RexGene Biotech's global production facilities and collaborative marketing networks, would be able to open up new possibilities for Korea's health supplement market and respond to the stricter product quality control requirements of the Health Supplement Act. RexGene Biotech is Korea's first venture company in health supplement industry to be enlisted in KOSDAQ and specializes in OEM and ODM businesses through its GMP facility for health supplements. Eugene Science has been recognized for its exclusive technology to develop and use Plant Sterol and has concentrated on overseas marketing in the U.S., Japan, and Southeast Asia. Its marketing in Korea has begun when Plant Sterol was officially authorized as a type of health supplement in Korea. With the recent contract, Eugene Science is expected to end the depression in Korea's health supplement market through its strategic partnership with RexGene Biotech, which is Korea's best health supplement producer and marketer. About Eugene Science Based in Kyonggi Do, South Korea, Eugene Science Inc. is a global biotechnology company that develops, manufactures and markets nutraceuticals, or functional foods that offer health- promoting advantages beyond that of nutrition. Plant sterols are the company's primary products, which include CZTM Series of food additives and CholZeroTM branded beverages and capsules. In June 2005, the company received regulatory approval for certain health claims associated with the company's products from government agencies in the Republic of Korea. Going Concern Doubt As reported in Troubled Company Reporter on May 18, 2006, SF Partnership, LLP, Chartered Accountants, in Toronto, Canada, raised substantial doubt about Eugene Science Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's recurring losses, negative working capital, and operation in a country whose economy is currently unstable -- South Korea. The TCR-AP reported that the company's Sept. 30, 2006 balance sheet also showed US$6,076,682 in total assets, US$16,750,391 in total liabilities, resulting in a US$10,673,709 total stockholders' deficit. The company also reported strained liquidity with US$2,556,354 in total current assets available to pay US$16,003,573 in total current liabilities. HANAROTELECOM: Plans to Spend Up to KRW340 Bil. in 2007 CAPEX ------------------------------------------------------------- hanarotelecom, Inc., expects to have a 5% to 8% increase in net revenues for the year 2007, from KRW1.72 trillion in 2006, the company said as it released its business plan for 2007. hanarotelecom's forecasted revenues is in the range between KRW1.81 trillion and KRW1.86 trillion. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 20, the company plans to dramatically increase revenues in 2007 through new growth engines like hanaTV and corporate business. With the cumulative number of hanaTV subscribers reaching 300,000 as of the end of January 2007, hanarotelecom plans to achieve revenues of KRW70-80 billion and 1 million subscribers by the end of this year. On the corporate business side, the company aims to achieve revenues of KRW440 billion in 2007, up 18% compared to the previous year, by strengthening existing businesses like corporate voice and IDC and advancing into NI/solution businesses. The company also plans to spend around KRW330 billion to KRW340 billion in capital expenditures in 2007. Seoul, South Korea-based hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * The Troubled Company Reporter - Asia Pacific reported on Nov. 28, 2006 that Fitch Ratings assigned hanarotelecom Inc. a Long-term foreign currency Issuer Default rating of 'BB'. The rating outlook is stable. Moody's Investor Service has given hanarotelecom's long-term corporate family and senior unsecured debt 'Ba2' ratings. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit 'BB' ratings. HYNIX SEMICONDUCTOR: Records 33% Increase in Fourth Qtr. Revenue ---------------------------------------------------------------- Hynix Semiconductor Inc. has disclosed, in a press release, its earnings results for the fourth quarter ended December 31, 2006. The company recorded consolidated revenues of KRW2.61 trillion in the 2006 fourth quarter, a 33% increase compared with the 2006 third quarter's KRW1.97 trillion, and a 48% increase from the 2005 fourth quarter's KRW1.77 trillion. During the 2006 fourth quarter, a favorable market condition continued for DRAM. Demand was especially strong from PCs as more Vista-ready PCs are sold, while supply was still tight which we believe was due to the unresolved technology migration issues at some of our competitors. Meanwhile, NAND flash market improved significantly during the first half of the quarter due to the demand increase from MP3 players, but then started to slow down again in the second half of the quarter due to the worse than expected sell-through of the end applications. Under such market environment, the company's weighted average selling price for DRAM in the fourth quarter increased by 9% sequentially while bit growth increased by 31% based on the smooth ramp up of 80nm technology and accelerated volume production of fabs in Wuxi, China. For NAND flash, although the average selling price fell by 11% sequentially, bit growth of 27% was enough to offset the price drop. Fourth quarter operating profits recorded KRW858 billion, up by 89% quarter-on-quarter, with 33% of operating profit margin, which increased by 10 percentage points compared with the previous quarter. This improvement in the margin was mainly attributable to the strong DRAM price that was sustained throughout the quarter and also by the China operation that turned profitable. Ordinary profits amounted to KRW917 billion, up by 142% quarter-on-quarter, from KRW379 billion in the previous quarter. Net profits for the fourth quarter increased 166% quarter-on- quarter to KRW1.04 trillion, with 40% net profit margin. The reason for the difference between the ordinary profits and net profits is basically due to the additional recognition of tax benefit by the parent company at the end of the year. Non-Consolidated Results Non-consolidated sales in the fourth quarter amounted to KRW2.66 trillion, which is a 46% increase sequentially. Operating profits increased by 202% quarter-on-quarter to KRW881 billion, resulting in 33% of operating profit margin. Ordinary profits was KRW849 billion after reflecting net non- operating expense of KRW32 billion. Net profits was KRW1.01 trillion with 38% of net profit margin. About Hynix Headquartered in Echon, 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. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Standard & Poor's Ratings Services revised to positive from stable the outlooks on its 'B+' long-term corporate credit ratings on Hynix Semiconductor Inc. and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc. At the same time, Standard & Poor's affirmed its long-term corporate credit and senior debt ratings on the company. The TCR-AP reported on July 14, 2005, that Moody's Investors Service has upgraded the rating of the senior secured notes issued by Hynix Semiconductor Manufacturing America Inc. to Ba3 from Caa2. The rating action follows Moody's decision to affirm the Ba3 corporate family rating (previously called senior implied rating) of Hynix Semiconductor Inc., the majority shareholder of HSMA, and remove it from provisional status. The TCR-AP reported on July 13, 2005, that Moody's Investor Service affirmed its B1 senior unsecured rating for Hynix Semiconductor Inc.'s US$500 million bonds upon its successful closing. HYNIX SEMICONDUCTOR: Injects Funds into Two Units ------------------------------------------------- Hynix Semiconductor Inc. invests US$500 million into Hynix-ST Semiconductor Ltd., increasing its holdings in the China-based company to 66.7%, Reuters Key Development reports. Hynix also decided to invest approximately KRW2.1 million into Hynix Semiconductor Indian Subcontinent Private Ltd. effectively making HSIS a wholly owned subsidiary, Reuters Key Development adds. Headquartered in Echon, 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. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Standard & Poor's Ratings Services revised to positive from stable the outlooks on its 'B+' long-term corporate credit ratings on Hynix Semiconductor Inc. and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc. At the same time, Standard & Poor's affirmed its long-term corporate credit and senior debt ratings on the company. The TCR-AP reported on July 14, 2005, that Moody's Investors Service has upgraded the rating of the senior secured notes issued by Hynix Semiconductor Manufacturing America Inc. to Ba3 from Caa2. The rating action follows Moody's decision to affirm the Ba3 corporate family rating (previously called senior implied rating) of Hynix Semiconductor Inc., the majority shareholder of HSMA, and remove it from provisional status. The TCR-AP reported on July 13, 2005, that Moody's Investor Service affirmed its B1 senior unsecured rating for Hynix Semiconductor Inc's US$500 million bonds upon its successful closing. INDUSTRIAL BANK: Hikes Dividends After KRW1.05-Tril. 2006 Profit ---------------------------------------------------------------- Industrial Bank of Korea will increase dividend payments by 38% after posting a record profit in 2006, The Korea Herald reports. According to the report, the bank will pay KRW252 billion, or KRW550 a share, to shareholders within one month, compared with KRW183.3 billion, or KRW400 a share, a year earlier. The latest dividend will be the bank's highest since 2003. The report also says that Industrial Bank's profit rose 35% to a record of KRW1.05 trillion in 2006, as Korean banks benefited from sustained growth in Asia's third-largest economy. Reuters, on the other hand, reports that the bank expects a net income of KRW1.2 trillion for the full year 2007. Headquartered in Seoul, Kore, state-run Industrial Bank of Korea -- http://www.kiupbank.co.kr/-- provides commercial banking services to small and mid-sized companies. The Bank provides loans, discount bills, deposits, installment savings deposits, domestic remittances, foreign exchange, safe deposit boxes, and payment acceptances and guarantees. IBK also provides PC banking and telephone banking services. Moody's Investors Service gave Industrial Bank of Korea a Bank Financial Strength Rating of 'D' effective Jan. 24, 2006. INDUSTRIAL BANK: Divests LG Card Stakes --------------------------------------- Industrial Bank of Korea has sold stakes worth KRW427,981,442,850 in LG Card Co., Ltd., reducing its stake in the company to 0.91%, Reuters Key Development says. Headquartered in Seoul, Kore, state-run Industrial Bank of Korea -- http://www.kiupbank.co.kr/-- provides commercial banking services to small and mid-sized companies. The Bank provides loans, discount bills, deposits, installment savings deposits, domestic remittances, foreign exchange, safe deposit boxes, and payment acceptances and guarantees. IBK also provides PC banking and telephone banking services. Moody's Investors Service gave Industrial Bank of Korea a Bank Financial Strength Rating of 'D' effective Jan. 24, 2006. JEONBUK BANK: To Issue 7.13 Million Shares to Raise Capital ----------------------------------------------------------- Jeonbuk Bank Ltd. will issue 7,126,869 new ordinary shares, through a rights issue raising KRW35,634,345,000, with the par value of KRW5,000, Reuters Key Development says. The report says that the shareholders of record as of Feb. 14, 2007, are entitled to subscribe to 0.16 per share owned. The shares will initially be up for subscription for members of employee stock ownership association. On March 15 and 16, the remaining will be offered to shareholders for an agreed first offer price of KRW6,320 per share. Reuters also said that the listing date of new shares will be April 5, 2007, and the lead manager is Daewoo Securities. Jeonju-si, Jeollabuk-do, Korea-based Jeonbuk Bank -- http://www.jbbank.co.kr-- provides commercial and retail banking services mainly to the Jeonbuk province in South Korea. The Bank's services include deposits, loans, credit cards, foreign exchange, trust accounts, corporate loans, telebanking, and Internet banking. Moody's Investors Service gave Jeonbuk Bank a D- bank financial strength rating effective on Dec. 8, 2003. =============== M A L A Y S I A =============== COMSA FARMS: Bursa Decides to Delist Securities on March 8 ---------------------------------------------------------- The securities of Comsa Farms Bhd will be delisted from the official list of the Bursa Malaysia Securities Bhd on March 8, 2007, at 9:00 a.m. According to the bourse, the decision to delist the company's securities from the official list came after Comsa Farms failed to make a requisite announcement of its regularization plan on Feb. 16, as required by the extended plan submission deadline set by the Bursa Malaysia. Meanwhile, the bourse clarifies that securities of the company may remain deposited with Bursa, notwithstanding the delisting of the securities. However, shareholders who intend to hold their securities in the form of physical certificates, can withdraw these securities with the Bursa at anytime after the securities of the company have been delisted. Accordingly, shareholders are required to submit an application form for withdrawal of the securities. Shareholders can contact Bursa Securities' General Line at 03- 2034 7000 for further information on the withdrawal procedures. * * * 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. HONG LEONG: 2006 2nd Half Pre-Tax Profit Increases by 23% YOY ------------------------------------------------------------- Hong Leong Bank Bhd announced a pre-tax profit of MYR411 million for the second half ended Dec. 31, 2006, an increase of 23% year-on-year, Business Times says. According to the bank's statement, total net income for the 2006 2nd half grew 16% from the figure recorded in the same period in 2005, driven by a 25% rise in net interest income and a 10% rise in other operating income. Net profit attributable to shareholders rose by 25% to MYR299 million, Business Times notes. Its 2006 2nd half earnings per share improved by 30% to 20.4 sen from 15.7 sen for the corresponding period in 2005, the paper relates. In addition, the bank's loan growth stood at 10% year-on-year, better than the industry growth of 6.3%. Hong Leong said that the increase was spurred by its retail segment, with mortgages growth up at 25% and credit cards up 51% on an annualized basis. Hong Leong's gross non-performing loan ratio declined to 4.4% and net non-performing loan ratio to 2.6%. An interim dividend of 9 sen per share has been recommended, Business Times says. * * * Headquartered in Kuala Lumpur, Malaysia, Hong Leong Bank Berhad -- http://www.hlb.com.my/-- is principally engaged in all aspects of commercial banking business and in the provision of related services, including Islamic Banking services, via its incorporated subsidiary, Hong Leong Islamic Bank Berhad. Through its subsidiaries, the Bank is also engaged in leasing activities, real property investment, nominee services and trade finance activities. HLB has over 185 branches in Malaysia, Singapore and Hong Kong. Hong Leong Credit Berhad is the Bank's holding company, and its ultimate holding company is Hong Leong Company (Malaysia) Berhad. On August 25, 2005, HLB disposed of its 100% equity interest in Credit Corporation (Malaysia) Sdn Bhd. On June 19, 2006, the Company formed a joint venture company with Hong Leong Assurance Berhad (HLA) and Tokio Marine & Nichido Fire Insurance Co., Ltd (Tokio Marine), known as Hong Leong Tokio Marine Takaful Berhad (HLTM). Fitch Ratings gave Hong Leong Bank a C individual rating on July 18, 2005. MEGASTEEL BERHAD: To Issue Shares to Raise MYR200 Million --------------------------------------------------------- Megasteel Sdn Bhd plans to issue shares to raise MYR200 million in cash, which will used to pay debts, Business Times reports. According to the report, the proceeds of the shares sale will be used to repay Megasteel's borrowings of about MYR112.3 million, with the rest used for working capital. * * * Megasteel Sdn Bhd, a member of The Lion Group, is the first steel mill in Malaysia to produce flat steel products in the form of hot rolled coils. It has a total investment of MYR3.2 billion and is located on a 500-acre site in Banting, Selangor. The mill is approximately 1.3 km long with a built-up area of 1.3 million square feet. Standard and Poors gave the company a B+ long-term issuer rating. SILVERSTONE CORP: Fails to File Plan; Bursa to Delist Securities ---------------------------------------------------------------- Silverstone Corporation Bhd failed to submit its regularization plan to the Securities Commission and other relevant authorities for approval by the extended deadline set by the Bursa Malaysia Securities Bhd. In this regard, the bourse decided to delist the company's securities from its official list starting on March 8, 2007, at 9:00 a.m. Bursa Malaysia, however, said that the securities of the company may remain deposited with the bourse, notwithstanding the delisting of the securities. Meanwhile, shareholders of the company who intend to hold their securities in the form of physical certificates can withdraw these securities with the Bursa at anytime after the securities of the company have been delisted. Accordingly, shareholders are required to submit an application form for withdrawal of the securities. Shareholders can contact Bursa Securities' General Line at 03- 2034 7000 for further information on the withdrawal procedures. * * * Headquartered in Kuala Lumpur, Silverstone Corporation Berhad is an investment holding company. The Company operates through business segments. SCB's business segments consist of tyre and motor segments. The tyre segment is engaged in the manufacture sale and distribution of tyres, retreading tyres, rubber compounds and other related rubber products. SCB's tyres, the Kruizer 1 and Evol 8 series are developed by using MicroBeta Silica Technology. The motor segment is engaged in the manufacturing of motorcycle parts and accessories, electroplating of motorcycle absorbers, sales, and distribution of motor vehicles. The company's other business segments include investment holding, treasury business and provision of training services. SCB has its operations in Malaysia and China. Some of the company's subsidiaries include AMB Aerovest Limited, AMB Harta (L) Limited, AMB Harta (M) Sdn Bhd and AMB Venture Sdn Bhd. The company is an affected listed issuer under Bursa Malaysia Securities Berhad's amended Practice Note No. 17 as its auditors have expressed a modified opinion with emphasis on the company's going concern in the company's audited financial statement for the financial year ended June 30, 2005. Moreover, Silverstone's shareholders' equity on a consolidated basis as at June 30, 2005, represented 47.2% of the issued and paid-up capital of the company. STAR CRUISES: New Fleet Member to Debut in Hong Kong in June ------------------------------------------------------------ Star Cruises' newest addition to the Asian fleet, SuperStar Aquarius is set to make her debut in Hong Kong on June 22, 2007, the luxury cruise firm said in a statement. The ship's itineraries in Asia begin with a series of one-night cruises out of Singapore between June 11-16, prior to departing for Hong Kong on June 17. The relocation cruise will call at Ho Chi Minh City, Vietnam, and Sanya, China, on June 19-21, respectively, before arriving in Hong Kong the next day where the ship will commence daily international waters cruises. SuperStar Aquarius' arrival coincides with the 10th anniversary of the establishment of the Hong Kong Special Administrative Region. The daily departures provide an excellent opportunity to capture the skyline of Hong Kong. The cruises offer a spectacular array of onboard dining, recreation and entertainment options. According to Star Cruises, the 2007 season will also see SuperStar Aquarius offer a series of destination cruises to China. These include eight 2-night cruises to Xiamen and four 2-night cruises to Haikou. Currently sailing as the Norwegian Wind, the 50,760 gross tonne luxury ship with her stylish design will appeal to a wide spectrum of cruisers in Hong Kong and other Asian markets. Cruisers on Hong Kong 's newest star will definitely enjoy a greater choice of outlets and facilities, bigger cabins and suites and a host of exciting onboard features customized to suit Asian tastes, Star Cruises said. SuperStar Aquarius has 765 cabins ranging from suites to balcony cabins. Guests can enjoy an exciting array of recreation, entertainment and dining options that include 8 restaurants and bars offering an excellent choice of international and Asian cuisine. One can enjoy Chinese family style dining at the Dynasty expertly prepared by its team of chefs or savor a variety of Asian specialties at the Spices restaurant and international buffet spreads at the Mariners Buffet. There is also the 24 hour Blue Lagoon which serves a variety of local and international delicacies. Other onboard facilities include swimming pool, sauna, retail outlets, show lounge, karaoke as well as business and meeting facilities to name a few. The introduction of SuperStar Aquarius, will bring the total to three ships positioned in Hong Kong, including Star Pisces and Wasa Queen operating under the Star Cruises and Cruise Ferries brands respectively. * * * Star Cruises Limited -- http://www.starcruises.com/-- is a Company publicly listed in Hong Kong and is a core member of the Genting Group and 36.1% owned by Resorts World, which is, in turn, 57.7% owned by Genting Berhad. Star Cruises operates 22 ships with 35,000 lower berths under five main brands: Star Cruises and Cruise Ferries, which service Asia Pacific, and three brands under NCL. The company also has operations in Malaysia. Moody's Investors Service has placed the B1 corporate family rating of Star Cruises Limited on review for possible downgrade on Jan. 25, 2007. The review has been prompted by SCL's announcement that it and Genting International Plc, a subsidiary of Genting Berhad, will acquire a 75% interest in Macau Land Investment Corporation, which will develop a hotel and casino project on the foreshore of downtown Macau. In addition, on December 11, 2006, Standard & Poor's Ratings Services placed its BB- long-term corporate credit ratings on Malaysia-based cruise operator Star Cruises Ltd. on CreditWatch with negative implications. S&P also placed its BB- long-term corporate credit ratings on U.S. based cruise operator NCL Corp. Ltd. (NCL) and its B foreign currency ratings on NCL's senior unsecured debt of US$250 million due 2014 on CreditWatch with negative implications. STAR CRUISES: Unit Inks Agreement to Buy 75% in Macau Land ---------------------------------------------------------- Star Cruises Limited's 75% owned subsidiary, New Orisol Investments Limited, has entered into sale and purchase agreements to acquire a 75% interest in Macau Land Investment Corporation, which owns a parcel of land known as No.1 Lago Nam Van, Macau, located on the shores of Nam Van Lake in downtown Macau. Genting International P.L.C. owns the balance of the 25% stake in New Orisol. The company has also entered into a services agreement with Sociedade de Jogos de Macau, S.A., a holder of a gaming concession granted by the Government of Macau whereby the Company will cause its subsidiary, the Service Provider, to provide certain areas for a casino in the hotel to be built at the Premises and provide services to the casino which will be operated by SJM, conditional upon approval by the Government of Macau. SJM will pay the Service Provider a monthly fee for usage of the location for the casino and the provision of the services, Macau Land intends to develop "Resorts World at Macau", a boutique hotel which includes the Casino on the Premises. These arrangements are subject to the approval of relevant authorities. On 17 January 2007, the Star Cruises entered into a share placement agreement with these parties: -- Profit Boom Investment Limited: 120 million shares -- Win Ever Investment Limited: 40 million shares -- Leong Angela On Kei: 40 million shares -- Ideal Collection Assets Limited: 12.5 million shares -- Chua Ma Yu: 42.5 million shares. The shares were priced at HK$2.29 each. In addition, the Subscribers also entered into an option agreement respectively to purchase their respective numbers of shares in the company at a premium of HK$0.28 per option share. The exercise price of the option shares is HK$3.00 per option share. The initial share placement will raise HK$655,350,000. Upon conversion of the option shares, the company will raise an additional HK$765,000,000. Commenting on the transactions, the Company's Chairman, President and CEO, Tan Sri Lim Kok Thay, said, "Macau is the fastest-growing leisure, entertainment and hospitality market in the world. With the presence of so many leading industry players in Macau, it is a further testimony of the need for us to build our strong presence in Macau." "Star Cruises in leading this development is confident of leveraging Genting Group's proven experience, expertise and track record, in creating a world-class hospitality project in Macau," Mr. Tan added. Mr. William Ng, Executive Director of the company, said "There is increasing affluence in Asia, and Macau will be a prime beneficiary in this large and growing market. We believe the project when completed in 2009 will further contribute to Macau's development as a world-class tourist destination." Meanwhile, commenting on his investment in Star Cruises Dr. Stanley Ho said, "This is a personal investment and has nothing to do with any of my publicly listed companies." The estimated project cost is HK$4.7 billion, and it will be funded via a combination of debt, equity capital and bank borrowings. * * * Star Cruises Limited -- http://www.starcruises.com/-- is a Company publicly listed in Hong Kong and is a core member of the Genting Group and 36.1% owned by Resorts World, which is, in turn, 57.7% owned by Genting Berhad. Star Cruises operates 22 ships with 35,000 lower berths under five main brands: Star Cruises and Cruise Ferries, which service Asia Pacific, and three brands under NCL. The company also has operations in Malaysia. Moody's Investors Service has placed the B1 corporate family rating of Star Cruises Limited on review for possible downgrade on Jan. 25, 2007. The review has been prompted by SCL's announcement that it and Genting International Plc, a subsidiary of Genting Berhad, will acquire a 75% interest in Macau Land Investment Corporation, which will develop a hotel and casino project on the foreshore of downtown Macau. In addition, on December 11, 2006, Standard & Poor's Ratings Services placed its BB- long-term corporate credit ratings on Malaysia-based cruise operator Star Cruises Ltd. on CreditWatch with negative implications. S&P also placed its BB- long-term corporate credit ratings on U.S. based cruise operator NCL Corp. Ltd. (NCL) and its B foreign currency ratings on NCL's senior unsecured debt of US$250 million due 2014 on CreditWatch with negative implications. TAP RESOURCES: Units Set Creditors' Meeting for Planned Wind-Up --------------------------------------------------------------- Two of Tap Resources Bhd's subsidiary companies, Tap Builders Sdn Bhd and Mech-E Engineering & Trading Sdn Bhd, called for a creditors' meeting on March 5, 2007. According to the company, the meeting was called to discuss the operational and financial impact of the two subsidiaries to the group. As reported by the Troubled Company Reporter - Asia Pacific on Feb. 12, 2007, Tap Resources made its requisite announcement regarding the various proposals it plans to undertake in order to regularize its financial and operational position. Part of the company's regularization plan was to liquidate the operations of Tap Builders and Mech-E Engineering along with other subsidiaries. According to the company, these units are facing liquidation as they have either ceased or wound down their respective businesses. Financial Impact on the Group As at April 30, 2006, the accumulated losses of TAP Builders and Mech-E aggregated to MYR41.79 million and MYR3.44 million, respectively. The total cost of TAP's investment in TAP Builders and Mech-E are MYR13,196,942 and MYR59,256, respectively. As at to date, full impairment losses have been provided for, the company said. Operational Impact on the Group TAP Builders has completed all its construction works and does not have any job in hand while Mech-E had only minor M&E works which has been shelved due to non-payment from the contractor. * * * TAP Resources Berhad is principally engaged in property development. Its other activities include general contracting; manufacturing and general trading of building materials, construction chemicals, ready mixed concrete and non-baked bricks; installing air-conditioners, process control and switch gear automation; selling of electrical goods; and investment holding. The Group operates wholly in Malaysia. The company is classified under the PN17 category because, for the nine months ended January 31, 2006, its shareholders' equity on a consolidated basis is equal to or less than 25% of the issued and paid up capital of the Company and such shareholders equity is less than the minimum issued and paid up capital as required under paragraph 8.16A (1) of the Listing Requirements of Bursa Malaysia Securities Berhad, plus it has a default in payments and is unable to provide a solvency declaration. TENAGA NASIONAL: Mulls Selling Shares in Indonesian Firm -------------------------------------------------------- Malaysia's Tenaga Nasional Bhd is planning to sell its investment in Indonesia PT Dasa Eka Jasatama, Reuters reports, citing a statement by the company. According to Tenaga, the terms of the sale are still being finalized by Tenaga subsidiary, TNB Coal International Ltd. Tenaga did not give an indication of the sale price, Reuters relates. * * * 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: 6-Months to Dec. 2006 Net Profit Up 61% -------------------------------------------------------- Air New Zealand posted a profit before unusuals and tax of NZ$109 million for the six-month period ending Dec. 31, 2006, an increase of 35% (NZ$28 million) on the poor performance in the same period in 2005. Net profit was NZ$74 million, up 61% (NZ$28 million), and higher yields contributed to a 12% increase in operating revenue. Based on the airline's improved profitability and outlook, the Board has increased the interim dividend to 3 cents per share, or NZ$32 million. Air New Zealand Chairman John Palmer said the airline's progress in the first six months of the year was pleasing in the face of significant challenges like high fuel prices, a weaker New Zealand dollar, and intense competition from other destinations. "All our key metrics - including yield, passenger numbers, revenue, profitability and share price are up, despite significant external pressures," Mr. Palmer said. Jet fuel continued to be the company's most significant cost. The average price of fuel was up 13% over the last year, and 55% over the same period two years ago. Mr. Palmer said that in 2003 the airline embarked on a substantial NZ$2.6 billion capital investment program. Subsequent to this, it sought to strengthen its balance sheet through a capital raising to shareholders. To Declare Special Dividend With this current cycle of fleet investment coming to an end, no jet aircraft arriving until 2010, and strong gearing position of 46.7%, the airline is now in a position to return some cash to shareholders. "Although the operating environment is still very challenging, we feel confident now about the ability to release some of the cash holdings from the balance sheet," he said. "With that in mind, a review of our current medium-term financial and cash projections has prompted the Board to declare a special dividend of NZ$105 million, or 10 cents per share," said Mr. Palmer. The record date for the interim and special dividends is on March 13, 2007. Returns Still Low Mr. Palmer said that despite the encouraging performance, the airline's returns are still below their potential. "The Board's view is that we are not yet achieving the levels of performance we consider appropriate to properly reward shareholders for the capital employed and associated investment risk," Mr. Palmer said. Chief Executive Rob Fyfe said it is important to consider Air New Zealand's performance over the past six months within a wider context. "We are confident in our strategic direction and will continue to drive the changes we need to ensure the airline is world class in everything it does," Mr. Fyfe said. "As a niche player, we will only achieve these standards by transforming our airline into one that is nimble, flexible and innovative, able to successfully compete in a demanding operating environment." Mr. Fyfe said priorities for the business over the next six months included clarifying the future operating model for Airport Services, growing the domestic business, consolidating Air New Zealand's position on the Tasman and stimulating demand for the new Vancouver service, which will launch in November. "We will also continue to simplify and reduce costs." Over the past six months Air New Zealand has achieved additional cost savings of NZ$63 million and is on track to achieve targeted cost savings of NZ$130 million for the full year. "This is the final year of our four-year cost saving program, which originally targeted savings of NZ$245 million per annum once fully implemented. By the end of this program we will have posted over NZ$326 million in annualized savings, well up on our original target." Mr. Fyfe said it is critical for both New Zealand and Air New Zealand to have a cohesive national tourism strategy in place. The airline was working collaboratively with the tourism industry but acknowledged there is still much work to be done. "Air New Zealand carries more than 4.5 million passengers internationally each year. We must be world-class in all aspects of our business - online, on board and onshore - if we are to assist New Zealand to achieve its full potential." Outlook Air New Zealand has continued to improve its market disclosures with the addition of monthly passenger yield movements and have carried on publishing its hedge book and other relevant information. "This has given the market an up-to-date view of how the company is performing. Analysts active in covering the company currently expect profit before unusuals and tax of between NZ$204 and NZ$232 million for the 2007 year. We note that the level of disclosure has allowed analysts to form a realistic expectation of the company's performance for the current year," Mr. Palmer said. Key highlights: * Operating revenue rose 12% to NZ$2,135 million with group passenger yields up 10.7%; * Short-haul passenger revenue has increased 11% to NZ$1,019 million with yields also up 8.9%; * Long-haul passenger revenue increased 13% to NZ$695 million, with yields up 12.7%; * Cargo revenue up 20% due to the increased capacity offered by the new 777 and higher cargo yields; * Additional cost savings of NZ$63 million achieved, on track to achieve targeted cost savings of NZ$130 million; * Gearing as at Dec. 31, 2006, is 46.7% at the lower end of our target range of 45 to 55%; * Cash holdings remain above NZ$1 billion despite repaying NZ$140 million of debt early. 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. AN YING: Court Appoints Joint Liquidators ----------------------------------------- The High Court of Auckland appointed Stephen Mark Lawrence and Anthony John McCullagh as joint and several liquidators of An Ying Group Ltd on Feb. 1, 2007. In this regard, the company's creditors are required to prove their claims on March 5, 2007. The Joint Several Liquidators can be reached at: Stephen Mark Lawrence Anthony John Mccullagh Horwath Corporate (Auckland) Limited PO Box 3678 Shortland Street, Auckland 1015 New Zealand Telephone:(09) 306 3440 Facsimile:(09) 302 0536 CLEAR CHANNEL: 4th Quarter 2006 Revenues Rose to US$1.94 Billion ---------------------------------------------------------------- Clear Channel Communications Inc.'s revenues for the fourth quarter ended Dec. 31, 2006, increased 11% to US$1.94 billion, from US$1.75 billion for the fourth quarter of 2005. Included in the company's revenue is a US$32.4 million increase due to movements in foreign exchange; strictly excluding the effects of the movements in foreign exchange, revenue growth would have been 9%. Clear Channel's expenses increased 8% to US$1.2 billion during the fourth quarter of 2006 compared to 2005. Included in the company's 2006 expenses is approximately US$8.7 million of non- cash compensation expense, a US$27.7 million increase due to movements in foreign exchange and a US$9.8 million reduction as a result of a favorable settlement of a legal proceeding. Clear Channel's income before discontinued operations increased 15% to US$210.1 million, as compared to US$182.7 million for the same period in 2005. Full Year 2006 Results For the full year, the company reported revenues of US$7.07 billion, an increase of 7% when compared to revenues of US$6.58 billion for the same period in 2005. Included in the company's revenue is a US$17.4 million increase due to movements in foreign exchange. The company's expenses increased 6% to US$4.6 billion during the year compared to 2005. Included in the company's expenses is approximately US$35.2 million of non-cash compensation expense and a US$14.6 million increase due to movements in foreign exchange. During 2005, the company restructured its business in France and recorded approximately US$26.6 million in restructuring charges. The company's income before discontinued operations was US$688.8 million. This compares to income before discontinued operations of US$633.6 million in 2005. The company's full year 2006 net income included approximately US$35.7 million of pre-tax gains primarily on the divestitures of radio assets and the swap of certain outdoor assets. Excluding these gains, Clear Channel's 2006 income before discontinued operations would have been US$667.7 million. Fourth Quarter Events On Nov. 16, 2006, the company agreed to be acquired by a group of private equity funds led by Bain Capital Partners LLC and Thomas H. Lee Partners L.P. The transaction is subject to shareholder approval, antitrust clearances, FCC approval and other customary closing conditions. The company filed its definitive proxy statement with the Securities and Exchange Commission on Jan. 29, 2007, and the shareholder meeting will be held March 21, 2007. Also on Nov. 16, 2006, the company announced plans to sell 448 of its 1,176 radio stations, all located outside the top 100 U.S. media markets, as well as all of its television stations. The sale of these assets is not contingent on the closing of the Bain Capital deal. Definitive asset purchase agreements were signed for the sale of 39 radio stations as of Dec. 31, 2006. The stations, along with 5 stations sold in the fourth quarter of 2006, were classified as assets held for sale in the consolidated balance sheet and as discontinued operations in the consolidated statements of operations. The company's 2006 revenue increased from foreign exchange movements of approximately US$32.4 million for the fourth quarter and US$17.4 million for the full year as compared to the same period of 2005. Return of Capital to Shareholders During 2006, the company repurchased 46.7 million shares of its common stock for approximately US$1.4 billion. The company has repurchased a total of 130.9 million shares for approximately US$4.3 billion under its share repurchase programs since March 2004. As a result of the company's proposed merger transaction announced on Nov. 16, 2006, the company will not be hosting a teleconference or webcast to discuss results. Liquidity and Financial Position For the year ended Dec. 31, 2006, cash flow from operating activities was US$1.8 billion, cash flow used by investing activities was US$641.4 million, cash flow used by financing activities was US$1.2 billion, and net cash provided by discontinued operations was US$9.7 million for a net increase in cash of US$31.2 million. As of Dec. 31, 2006, 69% of the company's debt bears interest at fixed rates while 31% of the company's debt bears interest at floating rates based upon LIBOR. The company's weighted average cost of debt at Dec. 31, 2006, was 6.1%. On Feb. 1, 2007, the company redeemed its 3.125% Senior Notes at their maturity for US$250.0 million plus accrued interest with proceeds from its bank credit facility. As of Feb. 22, 2007, the company had approximately US$571.8 million available on its bank credit facility. The company may utilize existing capacity under its bank facility and other available funds for general working capital purposes including funding capital expenditures, acquisitions, stock repurchases and the refinancing of certain public debt securities. Capacity under the facility can also be used to support commercial paper programs. Redemptions or repurchases of securities will occur through open market purchases, privately negotiated transactions, or other means. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. - - http://www.clearchannel.com/-- (NYSE:CCU) is a global leader in the out-of-home advertising industry with radio and television stations and outdoor displays. Aside from the U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * Clear Channel's long-term local and foreign issuer credits carry Standard & Poor's BB+ rating. In addition, the company's senior unsecured debt and long-term issuer default ratings were placed by Fitch at BB- on Nov. 16, 2006. GENESIS RESEARCH: Records NZ$3.3-Million Net Surplus for 2006 ------------------------------------------------------------- Genesis Research and Development Corporation Ltd reported a cash balance at Dec. 31, 2006, of NZ$9.0 million (Dec. 31, 2005: NZ$5.1 million). Revenue from collaborations, grants, sale of technology and interest for the 12 months to Dec. 31, 2006, was NZ$10.8 million (2005: NZ$2.6 million) including the sale of forestry technology to ArborGen, LLC. The net recurring cash burn of NZ$4.6 million (excluding one- time costs) was held below budget but includes expansion of the oncology program. The resulting net surplus for the year was NZ$3.3 million (2005 deficit: NZ$7.1 million). Genesis Chief Executive, Stephen Hall, said, "The internal therapeutic development programmes are making good progress. The team developing Zyrogen (which has potential as a therapeutic target for osteoporosis and autoimmune disorders such as systemic lupus erythematosis) has recently achieved several development milestones. A number of external groups have shown interest in collaboration opportunities for this project." "The cancer therapeutic programme has identified some very promising targets which are being validated in further models," Mr. Hall added. The revenue from one-off activities includes revenue from the sale of technology to ArborGen (NZ$8.719 million). At balance date, Genesis wrote-off an inter-company loan to AgriGenesis for the amount of NZ$3.143 million (2005, nil) and wrote-down its investment in AgriGenesis of NZ$2.492 million in accordance with the Group's accounting policy for the recognition of investments and receivables. "In addition, the company is actively exploring in-licensing opportunities to broaden the Genesis pipeline of projects," Mr. Hall noted. "The biofuels program which has demonstrated the viability of producing ethanol, unsulphonated lignin and xylose from shrubby willow was transferred to BioJoule Ltd, a joint venture with Lake Taupo Development Company. There continues to be interest from outside investors who are keen to participate in the development of a domestic ethanol industry based on BioJoule technology," Mr. Hall further said. Parnell, New Zealand-based Genesis Research & Development Corp. -- http://www.genesis.co.nz/-- is a discovery-based biotechnology company. The company uses its ribonucleic acid interference (RNA i) technology to develop therapeutics for allergic diseases, especially asthma and atopic dermatitis. The company's subsidiaries include AgriGenesis BioSciences Limited, AgriGenesis Limited, ArborGen, LLC, BioStore NZ Limited and Genesis Employee Fund Limited. The research in the fields of agriculture, horticulture and forestry is carried out in AgriGenesis BioSciences Limited. The group recorded a net deficit after taxation of NZ$7,134,000 and NZ$13,695,000, as of December 31, 2005, and 2004, respectively. The parent company recorded a net deficit after taxation of NZ$5,937,000 and NZ$6,758,000, as of December 31, 2005, and 2004, respectively. GLASS EARTH: Inks Hauraki Region JV Agreement with Newmont ---------------------------------------------------------- On Feb. 26, 2007, Glass Earth Limited disclosed that it has entered into an agreement with Waihi Gold Company Limited (a subsidiary of Newmont Mining Corporation) whereby Newmont will explore Glass Earth's extensive permit area in the Hauraki Region, North Island, New Zealand. Glass Earth's Hauraki Region permit area lies immediately to the west and north of the Waihi/Martha Hill Mine, located at Waihi, North Island, New Zealand which is owned and operated by Newmont. According to Glass Earth, 15 advanced gold prospects lie in the Glass Earth/Newmont Joint Venture area within trucking distance of Newmont's Waihi gold plant. Several of the targets have significant gold intercepts, like: (a) At Wharekiriponga, DDH4 17.7m @ 4.0g/t Au (in 150m @ 0.93g/t Au) lies just two kms along-strike from the Golden Cross mine (produced 634,000 oz gold 1991 - 1997); and (b) At Owharoa (historic production 63,334 oz), a 500m wide alteration zone is interspersed with innumerable quartz veins. The 10 million ounce Martha Hill Mine, owned by Newmont, is considered to be the "type" epithermal gold deposit and the kind of large epithermal gold deposit targeted by Glass Earth in its exploration program. Hauraki Region JV Agreement The Agreement terms provide that Newmont may earn an equity interest in each of the 3 sectors of the Hauraki Region (named Northern, Central and Southern) by undertaking exploration programs (including drilling) as follows: (a) To earn an initial 65% equity in a venture area, by expending over a 4 year period: -- NZ$1.65 million (circa C$1.37 million) on the Northern Hauraki Venture Area; -- NZ$1.75 million (circa C$1.45 million) on the Central Hauraki Venture Area; and -- NZ$2.8 million (circa C$2.3 million) on the Southern Hauraki Venture Area. (b) Newmont may elect to prepare a feasibility study to earn a further 10% in a venture area; (c) Glass Earth may request that Newmont arrange Glass Earth's share of financing in return for a further 5% equity in a venture area; (d) Glass Earth and Newmont will be liable (in proportion to their equity interests) for the Geoinformatics Exploration Inc. 2% royalty on any production from identified and acknowledged targets in the Hauraki Region permit area. (e) Newmont will be the operator Newmont will commence exploration activities immediately. Qualified Persons Glass Earth's exploration programs are carried out under the supervision of Glass Earth's VP Exploration and Chief Operating Officer, Simon Henderson, M.Sc, M.AUSIMM. Mr. Henderson meets the qualified person requirements (as defined by National Instrument 43-101) with more than 30 years of experience in the gold mining and exploration industry. About Glass Earth Glass Earth Ltd -- http://www.glassearthlimited.com/-- and its subsidiaries principal activity are the exploration for and mining of gold deposits in New Zealand. Glass Earth has established a large portfolio of gold prospecting and exploration permits in New Zealand, including advanced gold prospects in the Hauraki-Waihi area; advanced and greenfields gold prospects at the Mamaku-Muirs Reef area between Rotorua and Tauranga; Greenfield gold prospects in the Central Volcanic Region between Rotorua and Taupo, and advanced and greenfields gold prospects in the Otago mesothermal gold fields, including priority over a 20,550km2 prospecting permit area which it believes is prospective for Macraesstyle gold mineralisation. All Glass Earth's business operations are owned and managed by its New Zealand subsidiaries Glass Earth (New Zealand) Limited and HPD New Zealand Limited. As of December 27, 2006, St Andrew Goldfields Ltd. held approximately 50.2% interest in the company. Going Concern Doubt The company is in the development stage, and has not earned revenues to date. For the nine-month period ended November 30, 2006, the company had a net loss of CDN$629,000 and accumulated deficit of CDN$2,579,000. The company's ability to meet its obligations and continue as a going concern, according to its auditors, is dependent upon its ability to obtain additional financing, the discovery, development or sale of mining reserves and achievement of profitable operations. GOURMET CHICKEN: Wind-Up Hearing Slated for May 10 -------------------------------------------------- On Jan. 22, 2007, Sam's Chicken Ltd filed a wind-up petition against Gourmet Chicken Co. Ltd before the High Court of Auckland. The petition will be heard on May 10, 2007, at 10:00 a.m. Sam's Chicken solicitor can be reached at: Kevin Patrick McDonald 11th Floor, Global House 19-21 Como Street (PO Box 331065 or DX BP 66086) Takapuna, Auckland New Zealand Telephone:(09) 486 6827 Facsimile:(09) 486 5082 HOWARD ELECTRICAL: Creditors' Proofs of Claim Due on April 5 ------------------------------------------------------------ The creditors of Howard Electrical Ltd are required to submit their proofs of claim by April 5, 2007, or they will be excluded from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific previously reported that the company faced liquidation proceedings on Feb. 5, 2007. The Commissioner of Inland Revenue filed the petition. The joint liquidators can be reached at: John Howard Ross Fisk Craig Alexander Sanson c/o PricewaterhouseCoopers 113-119 The Terrace (PO Box 243) Wellington New Zealand Telephone:(04) 462 7188 Facsimile:(04) 462 7492 MAINTENANCE SPECIALISTS: Faces Liquidation Proceedings ------------------------------------------------------ An application to liquidate Maintenance Specialists Ltd will be heard before the High Court of Auckland on March 1, 2007, at 10:45 a.m. Accident Compensation Corp. filed the petition on Dec. 5, 2006. Accident Compensation'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 MOVIT 2000: Court to Hear Liquidation Petition on March 5 --------------------------------------------------------- The High Court of Wellington will hear a liquidation petition against Movit 2000 Ltd on March 5, 2007, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition on Nov. 27, 2006. The CIR's solicitor can be reached at: Kerri Ann Doherty Technical and Legal Support Group Wellington Service Centre 1st Floor, New Zealand Post House 7-27 Waterloo Quay (PO Box 1462) Wellington New Zealand Telephone:(04) 890 1045 Facsimile:(04) 890 0009 MULTI BUILDING: Commences Liquidation Proceedings ------------------------------------------------- On Feb. 1, 2007, the shareholders of Multi Building Services (2003) Ltd resolved by special resolution to liquidate the company's business. Accordingly, Grant Bruce Reynolds was appointed as liquidator. The Liquidator can be reached at: Grant Bruce Reynolds Reynolds & Associates Limited PO Box 259059, Greenmount East Tamaki, Auckland New Zealand Telephone:(09) 577 0162 Facsimile:(09) 577 0243 NELSON ADMINISTRATION: CIR Files Liquidation Petition ----------------------------------------------------- On Dec. 1, 2006, the Commissioner of Inland Revenue filed before the High Court of Nelson a liquidation petition against Nelson Administration Services Ltd. The petition is scheduled for hearing 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 PETER FLOWER: Creditors to Prove Debts by March 5 ------------------------------------------------- The creditors of Peter Flower & Associates Ltd are required to prove their debts by March 5, 2007, or they will be excluded from sharing in any distribution the company will make. According to the Troubled Company Reporter - Asia Pacific, the liquidation petition against the company was heard on Feb. 7, 2007. The Commissioner of Inland Revenue filed the petition. The joint liquidators can be reached at: Rory Iain Grieve Peter Reginald Jollands Jollands Callander Accountants and Insolvency Practitioners Level 4, 3-13 Shortland Street Auckland New Zealand Web site: http://www.jollandscallander.co.nz ROSKILL METAL: Shareholders Opt to Liquidate Business ----------------------------------------------------- On Feb. 5, 2007, the shareholders of Roskill Metal Polishers Ltd resolved by special resolution to liquidate the company's business. In this regard, John Albert Price and Christopher Robert Ross Horton were appointed as joint and several liquidators. The company's creditors are required to prove their debts on March 16, 2007. The Joint Liquidators can be reached at: John Albert Price Christopher Robert Ross Horton c/o Horton Price Limited PO Box 9125 Newmarket, Auckland New Zealand Telephone:(09) 366 3700 Facsimile:(09) 366 7276 TECHNOLOGY FINANCE: Liquidation Hearing Set for March 5 ------------------------------------------------------- The Commissioner of Inland Revenue filed a petition to liquidate Technology Finance Ltd on Nov. 27, 2006. Accordingly, the petition will be heard before the High Court of Wellington on March 5, 2007, at 10:00 a.m. The CIR's solicitor can be reached at: John Frederick Parnell Technical and Legal Support Group Wellington Service Centre 1st Floor, New Zealand Post House 7-27 Waterloo Quay (PO Box 1462) Wellington New Zealand Telephone:(04) 890 4673 Facsimile:(04) 890 0009 TURNERS DEVELOPMENTS: Creditors to Lodge Claims by March 8 ---------------------------------------------------------- The creditors of Turners Developments Ltd are required to lodge their claims by March 8, 2007, and to establish any priority claims they may have. 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. The Commissioner of Inland Revenue filed the petition. 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 ULSTER CORP: Court Hears Liquidation Petition --------------------------------------------- The High Court of Christchurch heard a liquidation petition against Ulster Corp. Ltd on Feb. 26, 2007. The Commissioner of Inland Revenue filed the petition on Dec. 22, 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 ===================== P H I L I P P I N E S ===================== CENTRAL AZUCARERA: FY2005-06 Net Loss Narrows 84% to PHP87.48MM --------------------------------------------------------------- Central Azucarera de Tarlac filed with the Philippine Stock Exchange its annual report for crop year ended June 30, 2006. Central Azucarera's net loss narrowed by 84% to PHP87.48 million in the fiscal year ended June 30, 2006, from the PHP548.98-million incurred during the year ended June 30, 2005. For fiscal 2005-2006, Central Azucarera's revenues grew 238% to PHP450.85 million from the PHP133.44 million booked in the crop year ended June 30, 2005. The company attributed the rise in revenues to "increment in production and improved market prices." Central Azucarera believes that the increased productivity and improved market conditions also worked against the lingering effects of labor strike that brought considerable hardships to the company. In November 2004, the company's milling operations were halted due to a labor strike as a result of a collective bargaining deadlock. On Dec. 8, 2005, the labor dispute was finally concluded and operations resumed. With Central Azucarera restarting milling operations only in December 2005, its operating expenses fell 26% to PHP103.61 million. The company's interest charges also dipped from PHP139.45 million in FY2004-2005 to PHP98.74 million in FY2005-2006. The successful negotiations for the settlement of some of the outstanding bank obligations resulted in the reduction in interest, the company explains. Bank loans aggregating PHP145.3 million in 2006 were settled through "dacion en pago" of properties owned by related parties. The company was in the process of settling the remaining matured loans of PHP804.7 million as of June 30, 2006, with creditor banks also under the same arrangements. Of that amount, PHP306.9 million was settled in September 2006. "The effects of the dead season, the resignation of a vast number of officers and employees and the conscious efforts on the part of everybody to minimize expenditures contributed to an improved financial performance for the year," the company states. As of June 30, 2006, the company had total assets of PHP1.741 billion, total liabilities of PHP1.681 million and shareholders' equity of PHP60.76 million. Belinda B. Fernando, CPA, partner at auditing firm Sycip Gorres Velayo & Co., points out in an independent auditors report that the company's ability to continue as a going concern depends on the successful implementation of its planned initiatives to increase revenue and reduce costs, the finalization of the ongoing settlement with creditor banks and the settlement of intercompany accounts with related parties. A full-text copy of the company's annual financial results is available for free at the Philippine Stock Exchange's Web site at http://www.pse.com.ph/ As previously reported in the Troubled Company Reporter - Asia Pacific, Central Azucarera will hold its Annual Meeting of Stockholders on Mar. 27, 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 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. The company incurred net losses for two consecutive fiscal years -- PHP87.48 million in the fiscal year ended June 30, 2006, and PHP548.98 million in the year ended June 30, 2005. RIZAL COMMERCIAL: To List 250 Million Shares on March 29 -------------------------------------------------------- Rizal Commercial Banking Corp. will list 250,000,000 additional common shares on March 29, the Manila Standard Today reports. As reported in the Troubled Company Reporter - Asia Pacific on Jan. 12, the bank's board of directors approved the bank's issuance of 250 million shares of new common stock through an additional public offering. In this regard, the bank will hold an international roadshow and bookbuilding from March 5 to 15. The bank tapped global financial brokerage firm CLSA Limited as the bookrunner and international underwriter for the listing, the Manila Standard relates. RCBC Capital Corp. is the domestic lead underwriter. The additional public offering would consist of up to about 217 million new common shares to international investors and PSE trading participants, the newspaper says citing the company's regulatory filing as source. An additional 32.6 million shares have been earmarked for overallotment, the paper adds. The new shares, the paper says, will have a par value of PHP10 each with the offer price to be based on the weighted average from 10 to 30 days ending on March 15. Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking, and provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the Bank's foreign exchange exposure. The TCR-AP reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook for the bank's foreign currency senior debt rating of Ba3, foreign currency Hybrid Tier 1 of B3, and foreign currency long-term deposit rating of B1 to stable from negative. The outlook for the foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E+ remains stable. In October 2006 Standard & Poor's Ratings Services assigned its 'CCC' rating to RCBC's US$100 million non-cumulative step-up callable perpetual capital securities. LAND BANK: Net Income Up 17% to PHP3.53 Billion in 2006 ------------------------------------------------------- The Land Bank of the Philippines attained a net income of PHP3.53 billion in 2006, up by 17% from the PHP3.02 billion recorded in 2005. The bank was able to surpass its PHP3.3 billion year-end net income target by 7%. "LANDBANK's stronger financial position in 2006 was due to a combination of factors -- better asset and liability mix, a healthier loan portfolio quality and effective management of operating expenses," LANDBANK president and CEO Gilda E. Pico said. The record profits were achieved amid the sustained trajectory of the Philippine economy, the drastic turnaround in the fiscal position and the significant improvement of the Philippine peso and interest rates. The improvement in net income was triggered by the 7% growth in revenues, from PHP22.6 billion to PHP24.3 billion on the back of higher earnings from loans and investments. Earnings from foreign exchange trading amounted to PHP813 million. The bank's net income translates to a 12.6% return-on-equity for the Philippine government, the bank's sole stockholder. ROE is higher than the industry average of 10.1%D. Pico added that LANDBANK was able to achieve a stronger balance sheet compared to the previous year. Total assets improved by 16% to PHP360.8 billion from PHP310.5 billion in 2005. Deposits recorded a 10% increase from PHP242.8 billion to PHP267.8 billion. Capital grew by 6% from PHP24.7 billion to PHP33.7 billion. The Land Bank of the Philippines -- http://www.landbank.com/-- is a government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable. This dual function makes Land Bank unique. The profits derived from its commercial banking operations are used to finance the bank's developmental programs and initiatives. From its initial role as the financing arm of the agrarian reform, Land Bank has evolved into a full-service commercial bank. Over the years, Land Bank continued to expand its loan portfolio in favor of its priority sectors: the farmers and fisherfolk, small and medium enterprises and microenterprises, livelihood loans and agribusiness, agri-infrastructure and other agri- and environment-related projects. Land Bank ranks among the top five commercial banks in the country in terms of deposits, assets, loans and capital. * * * The Troubled Company Reporter - Asia Pacific reported that Land Bank carries Fitch's 'D' Individual Rating and Moody's 'E+' bank financial strength rating. LAND BANK: Loans to Priority Sectors Reach PHP82.6 Bil. in 2006 --------------------------------------------------------------- The Land Bank of the Philippines has extended a total of PHP82.6 billion in loans as of December 2006 to its priority sectors, representing 68% of the bank's total loan portfolio of PHP120.8 billion. This is the highest amount of loans extended so far by the bank in line with its strategic thrust to transform its loan portfolio in favor of its priority sectors the small farmers and fisherfolk, SMEs and microenteprises, agri-business, livelihood, agri-infrastructure and environment-related projects. The PHP82.6 billion represents a PHP2.4 billion increase from the December 2005 level of PHP80.2 billion. The bank has also exceeded its 2006 target share of 65% loans to priority sectors, reflecting the bank's intensified support for key sectors that spur countryside economic growth. "As a development oriented financial institution, we consider this as one of our biggest accomplishments for the year. The continued expansion of our agri-agra loan portfolio is a crucial factor in our goal of achieving greater countryside development impact," LANDBANK President and CEO Gilda E. Pico said. Loans to microenterprises and SMEs garnered the largest share at 16% or PHP19 billion, followed by loans to small farmers and fisherfolk at PHP17.4 billion. Total loans for agribusiness, agri-infrastructure and agri-related projects amounted to PHP41.5 billion while loans for environment and other livelihood projects reached PHP4.1 billion. The Land Bank of the Philippines -- http://www.landbank.com/-- is a government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable. This dual function makes Land Bank unique. The profits derived from its commercial banking operations are used to finance the bank's developmental programs and initiatives. From its initial role as the financing arm of the agrarian reform, Land Bank has evolved into a full-service commercial bank. Over the years, Land Bank continued to expand its loan portfolio in favor of its priority sectors: the farmers and fisherfolk, small and medium enterprises and microenterprises, livelihood loans and agribusiness, agri-infrastructure and other agri- and environment-related projects. Land Bank ranks among the top five commercial banks in the country in terms of deposits, assets, loans and capital. * * * The Troubled Company Reporter - Asia Pacific reported that Land Bank carries Fitch's 'D' Individual Rating and Moody's 'E+' bank financial strength rating. LAND O'LAKES: Saputo Agreement Prompts S&P's Positive Outlook ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Arden Hill, Minnesota-based Land O'Lakes Inc. to positive from stable, and affirmed its 'BB-' corporate credit rating and other ratings on the company. "The outlook revision follows the company's recent announcement that it had entered into an agreement with Saputo Cheese USA Inc. to sell its Cheese & Protein International operations for about US$216 million," said Standard & Poor's credit analyst Jayne Ross. Standard & Poor's expects the proceeds of the transaction will be used to reduce debt in the near term. "The outlook revision also reflects the continued improved operating performance of Land O'Lakes and the related improvement in its financial performance," added Ms. Ross. The 'BB-' rating on Land O'Lakes reflects the inherent cyclical nature and seasonality of many of the cooperative's agricultural-based businesses, low margins, and a somewhat leveraged financial profile. These factors are somewhat mitigated by the strength of many of the cooperative's brands, its moderate discretionary cash flow, and an experienced management team. Land O'Lakes Inc. -- http://www.landolakesinc.com/-- is a national farmer-owned food and agricultural cooperative, marketing dairy-based consumer, foodservice and food ingredient products. Land O' Lakes does business in all 50 states, as well as more than 50 countries, including the Philippines. LAND O'LAKES: Appoints Myron Voth & James Netto as Directors ------------------------------------------------------------ Land O'Lakes Inc. elected Myron Voth of Walton, Kansas, and James Netto of Hanford, California, to its Board of Directors. Mr. Voth was elected to represent Ag Region 3. Mr. Voth. He is also the Chair of Mid-Kansas Cooperative. Mr. Voth, whose term runs until February 2011, replaced former Director Richard Epard. Mr. Netto was elected to represent Dairy Region 80. Mr. Netto is the President of Netto Ag Inc. He also oversees the operations of Double "N" Dairy, a subsidiary of Netto Ag. Mr. Netto, whose term runs until February 2011, replaced former Director Manuel Maciel. Land O'Lakes Inc. -- http://www.landolakesinc.com/-- is a national farmer-owned food and agricultural cooperative, marketing dairy-based consumer, foodservice and food ingredient products. Land O' Lakes does business in all 50 states, as well as more than 50 countries, including the Philippines. * * * Standard & Poor's Ratings Services has affirmed Land O'Lakes' BB- corporate credit rating. The rating outlook is stable. On Sept. 21, 2006, Moody's Investors Service assigned a Ba2 rating to Land O'Lakes' Senior Secured Debt and a Ba3 rating to its Senior Unsecured Debt. Standard & Poor's Ratings Services raised its corporate credit rating on Land O'Lakes Inc. to 'BB-' from 'B+'. The rating outlook is stable. MAGNUM HOLDINGS: Prepares MOA for Advances-Equity Conversion ------------------------------------------------------------ In reply to the Philippine Stock Exchange's request for additional information regarding Magnum Holdings, Inc.'s plan to convert advances of HDI Securities, Inc., and Jerry C. Angping to equity shares, the company informs the PSE that no definitive agreements have been executed with regards to the proposed conversion. A memorandum of agreement, however, is currently being prepared, the company says. As reported in the Troubled Company Reporter - Asia Pacific on Feb. 27, the company's board of directors has approved, among others, the conversion of the advances of HDI Securities and Mr. Angping totaling PHP4,699,465 into equity. In that regard, the board also approved the issuance of 4,699,465 shares from the unissued portion of the company's authorized capital stock. The purpose of the transaction is to fully settle Magnum Holdings' debt obligations with HDI Securities and Mr. Angping, the company explains. The company plans to seek shareholders' approval of the conversion on April 25. Upon their approval, the company will file with the Securities and Exchange Commission an application to list the 4,699,465 common shares with the PSE. The new shares, which will have a par value of PHP1.00, will be divided into 2,349,732 common shares to HDI and 2,349,733 shares to Mr. Angping in exchange for the advances. After the conversion, HDI and Mr. Angping will each have a 3% stake in the company. 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. After auditing Magnum Holdings' financial report for the year ended Dec. 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 Dec. 31, 2005, 2004 and 2003. As of Dec. 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 Dec. 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. * Philippine Gov't. Confident of Exceeding 2007 Growth Targets -------------------------------------------------------------- The Philippine Administration has expressed confidence that the country would exceed its growth targets for this year because of the continued strong performance of the economy. Presidential Spokesperson and Press Secretary Ignacio Bunye said the Government has already set in motion the country's stability and investments scheme with the implementation of unpopular fiscal reforms of the President that was supported by the international financial and investor communities. "We have seen the strong performance of the economy and we are more than confident of achieving our goals beyond target because of the market's agility and resiliency on the back of good governance and strong popular enterprise," said Secretary Bunye. The fruits of fiscal reforms, which included the imposition of the 12% value-added tax, are now being felt by the public through an increased spending on health, education, and other social services and more jobs and infrastructure projects. The Government's massive pump-priming program has jumpstart the economy, he said. The President's "super mega region program" or dividing the Philippines into Northern Luzon, Metro Luzon, Central Philippines, Mindanao and Cyber Corridor, would be the vehicle to pump-up the economy, Secretary Bunye stressed. The Budget department would release funds of PHP83.8-billion worth of infrastructure projects including 3,251 kilometers of roads and PHP12.4-billion worth of infrastructure geared to jumpstart the economy. The budget would also fund the hiring of 10,000 teachers and 3,000 policemen, establishment of 2,200 Botika sa Barangays or small village drugstores and other pro-poor initiatives, Bunye said. * * * On January 10, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to the Republic of Philippines' (foreign currency BB-/Stable/B, local currency BB+/Stable/B) proposed US$1.0 billion global bond issue maturing in 2032. On January 10, 2007, Fitch Ratings assigned a Long-term foreign currency rating of 'BB' to the Republic of the Philippines' (rated foreign currency Issuer Default 'BB') US$1 billion global bond maturing in 2032 and priced to yield 6.55%. On November 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= ADVANCED SYSTEMS: Director Takes Deemed Shares ---------------------------------------------- Michael Loh Soon Gnee, a director of Advanced Systems Automation has acquired deemed shares in the company. Mr. Gnee previously did not held any shares of the company. After the change, Mr. Gnee holds 634,100,000 deemed shares with 51.37% issued share capital. About Advanced Systems Automation Advanced Systems Automation Limited -- http://www.asa.com.sg/-- is a Singapore-based company that is engaged in the design and manufacture of automatic molding machines and other back-ended assembly equipment for the semiconductor industry. The company's subsidiaries include Avalon Technology Pte. Ltd.; Microfits Pte. Ltd.; Beijing Microfits Precision Electronics Engineering Co., Ltd. and Beijing Advanced Precision Electronics Engineering Co., Ltd., both of which are engaged in the manufacture of precision tools, dies and moulds; Acetech Solutions Ltd.; Advanced Systems Automation, Inc., and Advanced Systems Automation (Europe) Limited, which is engaged in the sale and provision of services to the European semiconductor manufacturing market. * * * As reported in the Troubled Company Reporter - Asia Pacific on Aug. 8, 2006, auditors Ernst & Young reported in the company's Annual Report that, "The group has incurred significant losses and has been experiencing severe cash shortage in the past four financial years. The group incurred a net loss of SGD3.4 million for the financial year ended March 31, 2006, and the group's and the company's current liabilities exceeded current assets by SGD20.9 million and SGD22.9 million respectively. As of March 31, 2006, the group and the company were in net shareholders' deficit positions of SGD13.8 million and SGD11.2 million respectively. These matters described above indicate the existence of a material uncertainty, which may cast significant doubt about the group and company's ability to continue as going concerns." Ernst and Young adds that the ability of the group and the company to continue as going concern is dependent on the company's completion of the proposed renounceable rights issue, disposal of non-core assets and business restructuring. DAEWOO SINGAPORE: Pays First and Final Dividend ----------------------------------------------- Daewoo Singapore Pte Ltd paid the first and final dividend to its creditors on Feb. 21, 2007. The company paid 0.58 cent in a dollar to all received claims. The company's liquidator can be reached at: Tam Chee Chong c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 GERMAN DISTRICENTRE: Wind-Up Petition Hearing Slated on March 2 --------------------------------------------------------------- German Districentre Pte Ltd's judicial managers filed a petition to wind up the company's operations on Feb. 2, 2007. The petition will be heard before the High Court on March 2, 2007, at 10:00 a.m. The judicial managers' solicitor can be reached at: Ng Lip Chih & Co 8 Robinson Road #10-00 ASO Building Singapore 048544 OVERSEAS SHIPHOLDING: To Acquire Heidmar Lightering Business ------------------------------------------------------------ Overseas Shipholding Group, Inc. has entered into an agreement in principle to acquire the Heidmar Lightering business from Heidmar Inc., a subsidiary of Morgan Stanley Capital Group Inc. The operation, a fleet of four International Flag Aframax tankers and two U.S. Flag workboats, provides crude oil lightering services to refiners, oil companies and trading companies primarily in the U.S. Gulf. The business manages a portfolio of one-to-three year fixed rate cargo contracts. Under the agreement, OSG will acquire the lightering fleet, which is time chartered-in to one of Heidmar Inc.'s subsidiaries, including a 50% residual interest in two specialized lightering Aframax tankers. The agreement is subject to certain conditions, including entering into definitive documentation. The lightering operation will add synergies and expand OSG's already significant Aframax cargo and logistical system in the Atlantic basin. In addition, it provides opportunities to serve U.S. West Coast customers with lightering service using OSG's Panamax tankers. Based in Houston, Texas, Heidmar Lightering has performed over 900 lighterings since beginning operations in November 2002. Jim Enright, 45, who has nearly 20 years of oil trading and shipping industry experience, will continue to lead the team of office staff and mooring masters out of Houston. Mr. Enright will report to Mats Berglund, Senior Vice President and Head of OSG's Crude Tanker unit. "Adding lightering to the OSG Aframax, Panamax and VLCC business creates a very strong combination by enhancing service and on time performance to our customers and bringing logistical benefits to our fleet," stated Mats Berglund. "After closing this transaction, OSG will add West Coast and U.S. Gulf Coast lightering operations to our already strong position in Delaware Bay on the East Coast." Berglund continued, "In line with OSG's balanced growth strategy, lightering services provides stable revenue from established contracts and customers." Lightering is the transfer of crude oil and petroleum products at sea, typically between 40 and 60 miles offshore, from larger vessels such as VLCCs or Suezmaxes, to smaller vessels known as service vessels that are capable of entering shallow-draft ports. The lightering process consists of maneuvering a service vessel alongside a larger ship to be lightered, generally with both vessels underway. For cargo and large ship owners and operators, lightering cargo onto separate shallow draft vessels enables the cargo owner About Overseas Shipholding Headquartered in New York, U.S.A., Overseas Shipholding Group, Inc. (NYSE:OSG) -- http://www.osg.com/-- is one of the largest publicly traded tanker companies in the world with an owned, operated and newbuild fleet of 117 vessels, aggregating 13.0 million dwt and 865,000 cbm, as of June 30, 2006. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, the company is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world's most customer-focused marine transportation companies, with offices in New York, Athens, London, Newcastle and Singapore. * * * As reported in the Troubled Company Reporter - Asia Pacific on August 14, 2006, Moody's Investors Service affirmed the debt ratings of Overseas Shipholding Group, Inc.'s Senior Unsecured at Ba1. The outlook has been changed to stable from negative. PETROLEO BRASILEIRO: Ceara Plant Construction Starts in March ------------------------------------------------------------- Brazilian state oil firm Petroleo Brasileiro SA expects that the construction of a BRL76-million biodiesel plant in Ceara will start in March, news daily Gazetta Mercantil reports. Business News Americas relates that Petroleo Brasileiro hired engineering firm Intecnial in 2006 to construct the plant and two other plants: -- Candeias in Bahia, and -- Montes Claros in Minas Gerais. According to BNamericas, Candeias and Montes Claros are already being constructed. BNamericas underscores that the Ceara plant will be situated in Juatama in Quixada. Petroleo Brasileiro project official Joa Augusto Araujo Paiva told Business News Americas that the plant will start running in January 2008. It will have the capacity to produce almost 56 million liters per year of biodiesel. Petroleo Brasileiro is preparing to meet the compulsory 2% admixture of biodiesel into diesel from January 2008, BNamericas states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Inks Oil & Gas Pact with Gazprom ----------------------------------------------------- Petroleo Brasileiro SA aka Petrobras and gas-company Russian corporation Gazprom OAO signed a memorandum of understanding seeking to identify cooperation opportunities for oil & gas project deployment, on Feb. 23, 2006, at the Brazilian company's main office building. With the agreement, three initiatives that may include cooperation possibilities have already been identified in the LNG, natural gas storage, and natural gas transportation system operation optimization areas. Although the activity schedule will extend through next year, Petrobras and Gazprom expect to materialize actual partnerships, particularly in the LNG area, in 2007. Potential improvements to the Brazilian gas pipeline implementation processes, incorporating Gazprom's experience in this field, were also discussed during the meeting. Petrobras' Gas & Energy Director, Ildo Sauer, and Gazprom's International Business Director, Stanislav Tsygankov, signed the agreement. Petrobras' acting president and also Exploration & Production Director, Guilherme Estrella, and the Russian Federation's General Consul in Rio de Janeiro, Alexey Labetskiy also attended the meeting. This is the third meeting held between the companies who, exactly a year ago, commenced conversations to ripen a future agreement. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Mulls Biodiesel Plant Works in Bolivia ----------------------------------------------------------- Petroleo Brasileiro SA is reportedly negotiating with Bolivian authorities for a new investment in the Andean nation. Biodiesel Plant With a gas price agreement in place, state-owned oil firm Petroleo Brasileiro is in talks to open a biodiesel plant in Bolivia, the Associated Press reports. The state oil firm's investments in Bolivia were put on hold pending a resolution to the price dispute. Bolivian authorities did not provide AP details of the upcoming project, which is still in its early planning stage. Gas Price Accord Brazil agreed to pay a higher price for the natural gas it buys from Bolivia, as well as the derivatives extracted from the fuel. Their old agreement allowed Brazil to pay for the gas and its derivative a fixed price. On Feb. 15, the two nations inked a deal that puts an 11% price hike on natural gas that Brazil buys from Bolivia. According to the Wall Street Journal, Bolivia will get an additional US$144 million per year from Brazil. Brazil bought Bolivian fuel for approximately US$1.3 billion in 2006. 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. READER'S DIGEST: Extends Tender Offer of Senior Notes to March 1 ---------------------------------------------------------------- The Reader's Digest Association disclosed that it has extended its previously announced tender offer for any and all of its outstanding 6-1/2% senior notes due 2011. The tender offer, previously set to expire at 8:00 a.m., New York City time, on February 23, 2007, will now expire at 8:00 a.m., New York City time, on March 1, 2007, unless otherwise extended or earlier terminated. The tender offer is being extended to coordinate the closing of the tender offer with the acquisition of RDA by an investor group led by Ripplewood Holdings L.L.C. described in the Offer to Purchase and Consent Solicitation Statement dated January 25, 2007. Except for the above change, all terms and conditions of the tender offer are unchanged and remain in full force and effect. The company received the requisite consents to adopt the proposed amendments pursuant to the consent solicitation. RDA also announced the determination of the consideration payable in accordance with the terms of the offer to purchase and consent solicitation statement for the Notes. Holders who validly tendered and did not withdraw their Notes and related consents before 5:00 p.m., New York City time, on February 7, 2007, will receive, for each US$1,000 principal amount of Notes tendered, total consideration equal to US$1,039.95, which includes a US$30 consent payment. Holders who tender their Notes and deliver their consents after the Consent Date, but before 8:00 a.m., New York City time, on March 1, 2007, will receive, for each US$1,000 principal amount of Notes tendered, tender offer consideration equal to US$1,009.95, which is the total consideration less the Consent Payment. Accrued and unpaid interest will be paid on all Notes tendered and accepted for purchase. In addition, RDA has been advised by the depositary of the tender offer that, as of February 22, 2007, US$299,950,000 aggregate principal amount of the Notes, representing approximately 99.98% of the aggregate principal amount of the Notes outstanding, have been validly tendered. Rights to withdraw Notes tendered prior to the Consent Date have expired. J.P. Morgan Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the dealer managers for the tender offer and the consent solicitation. Questions or requests for assistance may be directed to J.P. Morgan Securities Inc. at: Tel:(212) 270-3994 (call collect); or Merrill Lynch, Pierce, Fenner & Smith Incorporated at: Tel:(888) 654-8637 (toll-free); or (212) 449-4914 (call collect) Requests for documentation may be directed to the information agent, Global Bondholder Services Corporation, at: Tel:(866) 470-4300 (toll-free) or: (212) 430-3774 (banks and brokerage firms) About Reader's Digest Headquartered in Pleasantville, New York, The Reader's Digest Association, Inc, -- http://www.rda.com-- is a global publisher and direct marketer of products including magazines, books, recorded music collections and home videos. Products include Readers Digest magazine, which is published in 50 editions and 21 languages. Annual revenues approximate US$2.4 billion. Reader's Digest has offices in Singapore, Korea, Malaysia, Philippines, Thailand and India. * * * As reported by the Troubled Company Reporter - Asia Pacific on Feb. 14, 2007, Standard & Poor's Ratings Services lowered its ratings on the company, including lowering the corporate credit rating to 'B' from 'BB', reflecting the increase in financial risk resulting from the leveraged acquisition, and removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 15, 2006. The outlook is negative The TCR-AP also noted that Moody's Investors Service downgraded the company's family rating to B2 from Ba1, concluding the review for downgrade initiated on Sept. 6, 2006 and continued on Nov. 16, 2006 in connection with the proposed US$2.4 billion acquisition by a consortium of investors led by Ripplewood Holdings LLC. The downgrade reflects the significant increase in leverage that will occur as a result of the debt - financed buyout and RDA's concurrent combination with Ripplewood portfolio companies WRC Media Inc. and Direct Holdings U.S. Corp. SEA CONTAINERS: Posts US$7.3 Million Net Loss in December 2006 -------------------------------------------------------------- Sea Containers, Ltd. Unaudited Balance Sheet As of December 31, 2006 Assets Current Assets Cash and cash equivalents US$54,196,789 Trade receivables, less allowances for doubtful accounts 508,115 Due from related parties 385,028 Prepaid expenses and other current assets 4,465,332 ------------ Total current assets 59,555,264 Fixed assets, net - Long-term equipment sales receivable, net - Investment in group companies - Intercompany receivables - Investment in equity ownership interests 204,331,424 Other assets 3,302,285 ------------ Total assets US$267,188,973 ============ Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$2,123,898 Accrued expenses 30,796,263 Current portion of long-term debt 26,946,083 Current portion of senior notes 385,097,380 ------------ Total current liabilities 444,963,624 Total shareholders' equity (177,774,651) ------------ Total liabilities and shareholders' equity US$267,188,973 ============ Sea Containers, Ltd. Unaudited Statement of Operations For the Month Ended December 31, 2006 Revenue US$499,123 Costs and expenses: Operating costs 351,937 Selling, general and administrative expenses (4,449,737) Reorganization Costs (7,480) Charges to provide against intercompany accounts 8,583,920 Depreciation and amortization (58,677) ------------ Total costs and expenses 4,419,963 ------------ Loss on sale of assets (29,747) ------------ Operating income (loss) [(3,950,587)] Other income (expense) Interest income 248,766 Foreign exchange gains (losses) (92,909) Interest expense, net (3,408,685) ------------ Income (Loss) before taxes [(7,203,415)] Income tax expense (100,000) ------------ Net Income (Loss) [(US$7,303,415)] ============= The Debtors disclose that their financial statements represent the internal accounting of Sea Containers, Ltd., and its affiliates and subsidiaries, on an unaudited and uncertified basis. The certification and audit process may result in adjustments to the stated entries. As of Dec. 31, 2006, SCL has not filed its form 10-K report for fiscal year ended Dec. 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006, and Sept. 30, 2006. After discussions with the Office of the United States Trustee, the Debtors are undergoing a reconciliation process of, among other things, their inter-company claims, to ensure that their financial reporting is as of their bankruptcy filing rather than as of Sept. 30, 2006. The reconciliation process will require extensive efforts from the Debtors and will take time to complete. However, in the interest of maximum disclosure to all parties in their Chapter 11 cases, the Debtors have decided to file their December Monthly Operating Report using information as of Sept. 30, 2006. The Debtors will amend their monthly operating reports upon completion of the reconciliation. A full-text copy of the Debtors' schedules of cash receipts and disbursements is available for free at: http://researcharchives.com/t/s?1a37 Based in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB)-- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On October 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006, (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. The Debtors' exclusive period to file a plan expires on June 12, 2007. Their exclusive period to solicit acceptances expires on Aug. 11, 2007. (Sea Containers Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000) SCOTTISH RE: Facing Bankruptcy Absent MassMutual/Cerberus Deal -------------------------------------------------------------- Scottish Re Group Ltd. has postponed until March 2 a shareholders' meeting to vote on a US$600 million takeover bid proposed by U.S. companies MassMutual Capital Partners LLC and Cerberus Capital Management, L.P. The meeting has been delayed to allow shareholders an opportunity to consider an amendment that would indemnify MassMutual/Cerberus by US$68.5 million should they be approved the majority owners, the company's chief executive officer said in a statement. Institutional Shareholder Services and Glass Lewis & Co., both independent proxy advisory firms, recommended to Scottish Re's shareholders to accept the offer. Company executives warned of a possible bankruptcy filing once shareholders reject the proposal, Scott Neil writes for the Royal Gazette. The company's fourth quarter release doesn't bode well for its future. Its US$231.6 million quarter loss prompted a ratings downgrade from Fitch. The rating agency said in its release that should the Cerberus/MassMutual deal goes down the drain, the company's Insurer Financial Strength could suffer a further downgrade to junk level from its BB+ rating. In last week's conference call, Chief Executive Officer Paul Goldean was quoted by the Royal Gazette as saying: "Without a transaction such as MassMutual/Cerberus, further rating downgrades are certain. The rating agencies have also indicated that simply raising additional capital will not result in an increase in our ratings. This was a significant consideration in evaluating a potential rights offering. "An increase in our ratings is critical not only in order to write new business but more importantly for us to be able to successfully to complete financing facilities in order to meet our significant collateral. "If the MassMutual/Cerebrus transaction or a similar transaction is not completed in the very near term the company will have no alternative but to seek protection under applicable bankruptcy and insolvency laws almost immediately. "2006 was a difficult year for all the stakeholders of ScottishRe. With the closing the MassMutual/Cerebrus transaction we look forward to returning our full attention of the company to our reinsurance business to regain our former status as one of the industries leading participants." About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities * * * Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt which is rated at Ba3 and preferred stock rated at B2. Standard & Poor's Ratings Services has also revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies, and dependent unwrapped securitized deals to positive from negative. Scottish Re has a 'CCC' counterparty credit rating, and Scottish Re's operating companies have 'B+' counterparty credit and financial strength ratings. These ratings were placed on CreditWatch negative on July 31, when Scottish Re announced poor second-quarter results and that liquidity was tight. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement, which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% USUS$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. =============== T H A I L A N D =============== DAIMLERCHRYSLER: Chrysler's Bidding Process May Start This Week --------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group's bidding process is likely to start this week, The Detroit News reports. J.P. Morgan Chase & Co. will hand out a detailed prospectus to a limited number of potential buyers, which includes Cerberus Capital, Apollo Management, the Carlyle Group, and the Blackstone Group, The Detroit News adds. OAO Gaz Group One potential bidder is OAO Gaz Group, Russia's second largest auto company, German weekly Focus magazine notes. Chrysler supplies four-cylinder engines for cars and mini-vans to Gaz. General Motors According to the Financial Times, if a deal between DaimlerChrysler and General Motors Corp. for Chrysler will push through, the German-based automaker will consider buying a minority stake in the U.S.-based company. Other Automakers In a TCR story on Feb. 23, 2007, Volkswagen AG, Renault SA, and Nissan Motor Co. say they are not currently interested in buying Chrysler, various news agencies report. 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. DAIMLERCHRYSLER AG: Hyundai Denies Interest in Chrysler Purchase ---------------------------------------------------------------- Hyundai Motor squashed rumors about a possible Chrysler acquisition from DaimlerChrysler AG, denying a report posted on Feb. 19 by U.K.-based The Times on its Web site, the Associated Press states. The Times report claimed that Hyundai intends to join would-be bidders because it was interested in Chrysler's dealerships network in the U.S., the Associated Press relates. "We are not considering to buy Chrysler because our hands are full," Hyundai spokesman Jake Jang told AP. According to AP, Mr. Jang went on to say that Hyundai has an engine deal with Chrysler and Japan's Mitsubishi Motors Corp., which lets them produce engines based on the South Korean automaker's design. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company reestablished itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since reduced to about 45%. The Company also manufactures machine tools for factory automation and material- handling equipment. 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. DAIMLERCHRYSLER AG: Predicts Drop in 2007 Sales for Truck Arm ------------------------------------------------------------- DaimlerChrysler AG projects a drop in sales for its truck division in 2007, although it is expected to stay profitable as the company anticipates a steady demand for trucks in Western Europe and North America, the Wall Street Journal reports. Truck division head Andreas Renschler revealed that Freightliner LLC, part of the unit, would continue to be lucrative this year, despite soaring fuel prices that could lead to a slump for the industry, the Associated Press states. According to published reports, Mr. Renschler said that the market for middle to heavy trucks could decline by 25% to 27%, with the Japanese market possibly shrinking 40% in 2007, but he sees an increase in demand during the last quarter. TCR-Europe reported on Feb. 15 that in 2006, the Truck Group built on the very successful developments of the prior year, increasing unit sales by 1% to a new record of 537,000 vehicles. The Truck Group achieved an operating profit of EUR2.020 billion in 2006, a significant increase from the previous year's result of EUR1.606 billion. 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. ITV PLC: SET Posts "SP" & "NP" Signs on Financial Issues -------------------------------------------------------- The Stock Exchange of Thailand stated on Feb. 26, 2007, that iTV Plc has submitted its audited financial statements for the year ending Dec. 31, 2006, but that a disclaimer issued by the company's auditor showed that the company's financial status and operating income presented in the financial statements fail to adequately or properly reflect the company's actual position. Due to these discrepancies, the Securities and Exchange Commission is requiring the company to amend its financial statements based on the issues raised by its auditor. As a result, The SET has posted an "SP" (Suspension) sign to suspend trading on the securities of iTV effective on the second trading session of Feb. 26, 2007, to enable shareholders and general investors to have sufficient time to scrutinize an auditor's report on the review of its financial statements. However, the SET will post an "NP" (Notice Pending) sign, allowing the trading of iTV's security effective on the first trading session of Feb. 27, 2007, until the company submits its amended financial statements or if the SEC will conclude that it will not be necessary to amend its financial statements. About iTV iTV PLC's principal activity is producing and broadcasting television programs and channels, including the promotion of related rights and assets. Shin Corp Plc is iTV's major shareholder, with a 53% stake. Singapore's state investment arm Temasek Holdings controls more than 96% of Shin, which was previously owned by caretaker Prime Minister Thaksin Shinawatra's family. Earlier this year, it sold its majority stake in iTV to Temasek. ITV PLC: SET Orders Halt on Securities Trading ---------------------------------------------- Due to a significant amount of information concerning the possibility of a concession withdrawal if iTV Plc fails to pay the concession fees and fines that might affect the trading of the company's securities, the Stock Exchange of Thailand has ordered the trading halt of iTV Plc, effective on the afternoon trading session of Feb. 27, 2007, until such time the company has clarified or disclosed material information regarding the payment of the concession fees and fines with the SET. About iTV iTV PLC's principal activity is producing and broadcasting television programs and channels, including the promotion of related rights and assets. Shin Corp Plc is iTV's major shareholder, with a 53% stake. Singapore's state investment arm Temasek Holdings controls more than 96% of Shin, which was previously owned by caretaker Prime Minister Thaksin Shinawatra's family. Earlier this year, it sold its majority stake in iTV to Temasek. The Troubled Company Reporter - Asia Pacific reported on June 23, 2006, that the Prime Minister's Office demanded a concession fee payment and fines to the government from the television network. The demand, TCR-AP recounted, was a result of the Arbitration Court's consent given to the company to pay an annual concession fee to the Prime Minister's Office amounting to THB230 million. The original rate before the consent amounted to THB1 billion per year. On Dec. 15, 2006, the TCR-AP reported that the Supreme Administrative Court upheld the Central Administrative Court's verdict by voiding the arbitration ruling on concession fee payments won by iTV in 2004. The overdue concession payment and fines that the broadcaster must pay reached THB100 billion. The TCR-AP reported on Feb. 22, 2007 that the Central Administrative Court denied iTV Plc's request for an urgent hearing pertaining to its petition to temporarily block the Prime Minister's Office from revoking its broadcast concession if it fails to pay the THB100 billion fee and fine by March 6, 2007. KASIKORNBANK: Cuts Deposit Rates By 25 To 50 Basis Points --------------------------------------------------------- Kasikornbank said that it was cutting deposit rates by 25 to 50 basis points for its three-, 12- and 36-month fixed-term accounts, but that it is leaving its lending rates unchanged, The Nation reports. The report says that the reductions took effect last week. The Nation notes that only TMB Bank and Bank of Ayudhya had reduced rates on their three-month and longer-term deposit accounts. Kasikornbank's three-month rates are now 3.25% to 4.25% from 3.50% to 4.25%, respectively, and the deposit rate on its THB3 million to THB5 million accounts is now set at the same rate with THB1 million to THB3 million accounts, The Nation relates. The report adds that the bank's 6-month and 12-month rates are now 3.5% and 4%, respectively, from 3.75% and 4.5%, while the deposit rates of up to THB1 million is now the same as with THB10-million accounts. The rate on 24-month and 36-month accounts is now 4%, from 4.25%, The Nation adds. About Kasikornbank PCL Kasikorn Bank Public Company Limited -- http://www.kasikornbank.com/-- otherwise known as the Thai Farmers Bank, was established in 1945 with registered capital of THB5 million and has been listed on the Stock Exchange of Thailand since 1976. It is Thailand's fourth largest bank, with total assets of THB844 billion (US$22 billion) as at end June 2006. The Troubled Company Reporter - Asia Pacific reported on Aug. 30, 2006, that Moody's Investors Service has upgraded Kasikornbank Public Company Limited's bank financial strength rating to D+ from D. On October 24, 2006, the TCR-AP reported that Fitch Ratings affirmed the ratings of Kasikornbank 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. After the rating action, Kasikorn's ratings are as follows: * Individual C; * Support 2; SIAM CITY: Cuts Fixed Deposit Rates to 3.5% From 3.75% ------------------------------------------------------ Siam City Bank said that it was cutting deposit rates by 25 to 50 basis points for its three-, 12- and 36-month fixed-term accounts, The Nation reports. The Nation states that Siam City Bank is also revising its fixed-deposit rates, cutting its six-month deposit rate from 3.75% to 3.5%, while the 12-month deposit rate is to fall from 4% to 3.75%. The 24- and 36-month rate is to be reduced to 4.25% from 4.5%, The Nation adds. About Siam City Bank PCL Siam City Bank Public Company Limited -- http://www.scib.co.th/ -- principal activity is the provision of commercial banking services, which includes deposits, payments, credit cards, consumer loans and e banking. Other activities include real estate development, computer consultancy and provision of capital market services. Operations are carried out primarily in Thailand. On October 19, 2006, Fitch assigned these ratings to Siam City Bank: * Long-term foreign currency Issuer Default rating of 'BB'; * Short-term foreign currency rating of 'B'; * National long-term rating of 'A-(tha)'; and * National Short-term rating of 'F1(tha)'. The Outlook on the ratings is Stable. Fitch has also upgraded the bank's Individual rating to 'D' from 'D/E' and affirmed its Support rating at '4'. The bank currently carries Moody's Bank financial strength rating of D and foreign currency long-term/short-term deposit ratings of Baa3/P-3. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- February 2007 American Bankruptcy Institute International Insolvency Symposium San Juan, Puerto Rico Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ March 9, 2007 Fitch Training Asian Regional Insurance Roadshow 2007 Kuala Lumpur, Malaysia Telephone: +65 6336 6801 e-mail: zuraidah.ramli@fitchratings.com March 12-15, 2007 Fitch Training Corporate Credit Fundamentals Hong Kong Telephone: +44-(0)20-7201-2770 Web site: http://www.FitchTraining.com/ e-mail: enquiry@fitchtraining.com March 14, 2007 Turnaround Management Association The Great Debate Sydney, Australia Web site: http://www.turnaround.org/ March 16, 2007 Fitch Training Asian Regional Insurance Roadshow 2007 Taipei, Taiwan Telephone: +8862 2514 0580 e-mail: kathy.chang@fitchratings.com March 21, 2007 Fitch Training Asian Regional Insurance Roadshow 2007 Seoul, South Korea Telephone: +822 2076 8364 e-mail: young.ha@fitchratings.com March 21-22, 2007 Euromoney 2nd Annual Vietnam Investment Forum Melia, Hanoi, Vietnam Web site: http://www.euromoneyplc.com/ March 21-22, 2007 Euromoney Euromoney Indian Financial Market Congress Grand Hyatt, Mumbai, India Web site: http://www.euromoneyplc.com/ March 22-23, 2007 Euromoney Institutional Investor Euromoney Indonesian Financial Markets Congress Bali, Indonesia Web site: http://www.euromoneyplc.com/ March 26, 2007 Fitch Training Asian Regional Insurance Roadshow 2007 Hong Kong Telephone: +852 2263 9977 e-mail: carey.kwan@fitchratings.com March 27-31, 2007 Turnaround Management Association - Australia 2007 TMA Spring Conference Four Seasons Las Colinas, Dallas, TX, USA e-mail: livaldi@turnaround.org April 2-3, 2007 Fitch Training Leveraged Finance Workshop Hong Kong Telephone: +44-(0)20-7201-2770 Web site: http://www.FitchTraining.com/ e-mail: enquiry@fitchtraining.com April 11-15, 2007 American Bankruptcy Institute ABI Annual Spring Meeting J.W. Marriott, Washington, DC, USA Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ May 28-31, 2007 Fitch Training Corporate Credit Fundamentals Hong Kong Telephone: +44-(0)20-7201-2770 Web site: http://www.FitchTraining.com/ e-mail: enquiry@fitchtraining.com June 13-15, 2007 Fitch Training Intensive Bank Analysis Hong Kong Telephone: +44-(0)20-7201-2770 Web site: http://www.FitchTraining.com/ e-mail: enquiry@fitchtraining.com June 18-20, 2007 Fitch Training Insurance Company Analysis Singapore Telephone: +44-(0)20-7201-2770 Web site: http://www.FitchTraining.com/ e-mail: enquiry@fitchtraining.com October 16-19, 2007 Turnaround Management Association - Australia TMA 2007 Annual Convention Boston Marriott Copley Place, Boston, MA, USA e-mail: livaldi@turnaround.org March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org TBA 2008 INSOL Annual Pan Pacific Rim Conference Shanghai, China Web site: http://www.insol.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Web site: http://www.insol.org/ October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Distressed Market Opportunities Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Homestead Exemptions under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences KERPs and Bonuses under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Diagnosing Problems in Troubled Companies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Equitable Subordination and Recharacterization Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ ********* 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 ***